0001543637
--12-31
Nu-Med Plus, Inc.
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10-Q
2020-03-31
000-54808
UT
45-3672530
455 East 500 South, Suite 203
Salt Lake City
UT
84111
801
746-3570
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<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>a. Basis of Presentation</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The accompanying unaudited condensed consolidated financial statements include the accounts of Nu-Med Plus, Inc. (the “Company”). These financial statements are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these statements should be read in conjunction with the most recent annual consolidated financial statements of Nu-Med Plus, Inc. for the year ended December 31, 2019 included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 30, 2020. In particular, the Company’s significant accounting principles were presented as Note 1 to the Consolidated Financial Statements in that report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>b. Revenue Recognition</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Financial Accounting Standards Board (“FSB”) issued new guidance for the recognizing and reporting of revenue in contracts with customers.  The effective date for implementation for public companies is January 1, 2018.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The new guidance established a five-step analysis to be followed when determining the recognition of revenue.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>1. </font><font style='line-height:115%'> Identify the contract with a customer.</font></p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>2. </font><font style='line-height:115%'>Identify the performance obligations in the contract.</font></p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>3. </font><font style='line-height:115%'>Determine the transaction price.</font></p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>4. </font><font style='line-height:115%'>Allocate the transaction price to the performance obligations in the contract.</font></p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>5. </font><font style='line-height:115%'>Recognize revenue when, or as, the reporting organization satisfied a performance obligation.</font></p> <p style='margin-left:0in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin-left:0in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>While the Company is an early-stage company with no revenue, at the time we begin to generate revenue the Company will recognize such revenue in conformity with the guidelines set forth by ASC 606.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-left:0in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>c. Estimates</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>d. Cash and Cash Equivalents</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company considers all deposit accounts and investment accounts with an original maturity of 90 days or less to be cash equivalents. The cash balance we currently have on deposit is within the limits for which the FDIC insures.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>e. Property and Equipment</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Property and equipment is stated at cost. Expenditure for minor repairs, maintenance, and replacement parts which do not increase the useful lives of the assets are charged to expense as incurred. Expenditures, exceeding $500, for new assets or that increase the useful life of existing assets are capitalized. Depreciation is computed using the straight-line method. The lives over which the fixed assets are depreciated are five to seven years.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'><font style='display:none'> </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>f. Fair Value</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB Accounting Standards Codification (“ASC”) Topic 820 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements), as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 1 - Quoted market prices in active markets for identical assets or liabilities;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 2 - Inputs other than level one inputs that are either directly or indirectly observable; and</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Level 3 - Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>All cash, accounts payable and accrued liabilities are carried at cost, which approximates fair value due to the short-term nature of these financial instruments. Additionally, we measure certain financial instruments at fair value on a recurring basis.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><font style='display:none'> </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>g. Earnings per Share</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The computation of earnings per share of common stock is based on the weighted average number of shares outstanding during the period of the financial statement.  The company included 2,287,920 and 3,572,950 shares subscribed but unissued in its calculation of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="499" style='width:374.5pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;line-height:115%'> </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Three months ended March 31, 2020</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Three months ended March 31, 2019</p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;line-height:115%'> </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;line-height:115%'> </p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net (loss) earnings (numerator)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(153,334)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(428,195)</p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Shares (denominator)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>46,553,585 </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>41,473,042 </p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net earnings per share amount - basic</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.00)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.01)</p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Shares (denominator)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>46,553,585 </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>41,473,042 </p> </td> </tr> <tr style='height:15.75pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net earnings per share amount - diluted </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.00)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.01)</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Diluted earnings per share is computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. As of March 31, 2020 and 2019 there were 34,835,200 and 36,581,072, respectively, potential dilutive shares that needed to be considered as common share equivalents.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>As of March 31, 2020 and 2019 the dilutive shares were excluded from the calculation for diluted earnings per share as there was a net loss and their inclusion in the calculation would be anti-dilutive.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>h. Concentrations and Credit Risk<b><i> - </i></b>The Company has relied on a small group of investors to fund its operations.  If this group becomes unable or unwilling to provide additional funding, the Company may be unable to remain in business or to execute on its business plan.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>i. Income Taxes</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Deferred taxes are provided on an asset and liability approach whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>j. Stock-based Compensation</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company, in accordance with ASC 718, <i>Compensation – Stock Compensation</i>, records all share-based payments to employees at the grant-date fair value of the equity instruments issued. In accordance with ASC 718-10-30-9, <i>Measurement Objective – Fair Value at Grant Date</i>, the Company uses the closing price of the stock, as quoted by NASDAQ, on the date of the grant.  The Company believes this pricing method provides the best estimate of fair the fair value of the consideration given.  Compensation cost is recognized over the requisite service period.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company, in accordance with ASC 505, <i>Compensation – Stock Compensation</i>, establishes the value of equity instruments issued to non-employees for goods and services by using the closing price of the stock, as quoted by NASDAQ, on the date of the grant.  The Company believes this method fairly establishes the value of the goods and/or services received.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>k.  Leases</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company accounts for all leases in accordance with ASC 842, <i>Leases</i>, recognizing both assets and liabilities on the balance sheet for the right to use those assets for the lease term and obligations to make the lease payments created by those leases that have terms of greater than twelve months. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt'>l. Recent Accounting Pronouncements</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:11.4pt'><font style='quot,serif'>In June 2018, the FASB issued ASU No. 2018-07, “Compensation — Stock Compensation (Topic 718),” (“ASU 2018-07”). ASU 2018-07 is intended to reduce cost and complexity of financial reporting for non-employee share-based payments. Currently, the accounting requirements for non-employee and employee share-based payments are significantly different. ASU 2018-07 expands the scope of Topic 718, which currently only includes share-based payments to employees, to include share-based payments to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, “Equity — Equity-Based Payments to Nonemployees”. The amendments to ASU 2018 - 07 are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, but no earlier than a company’s adoption date of ASU No. 2014-09, (Topic 606), “Revenue from Contracts with Customers”. The Company adopted ASU 2018-07 effective January 1, 2020.  The adoption of ASU 2018-07 will not have a material effect on its condensed financial statements. </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In December 2019, the FASB issued ASU 2019-12, “Income Taxes Topic 740-Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which intended to simplify various aspects related to accounting for income taxes/.  ASU 2019-12 removes certain exceptions to the general principles of Topic 740 and also clarifies and amends existing guidance to improve consistent application of Topic 740.  The effective date will be the first quarter of fiscal year 2021 and early adoption is permitted.  Adoption of Topic 740 is not expected to have a material effect on its condensed financial statements. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>a. Basis of Presentation</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The accompanying unaudited condensed consolidated financial statements include the accounts of Nu-Med Plus, Inc. (the “Company”). These financial statements are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these statements should be read in conjunction with the most recent annual consolidated financial statements of Nu-Med Plus, Inc. for the year ended December 31, 2019 included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 30, 2020. In particular, the Company’s significant accounting principles were presented as Note 1 to the Consolidated Financial Statements in that report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>b. Revenue Recognition</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Financial Accounting Standards Board (“FSB”) issued new guidance for the recognizing and reporting of revenue in contracts with customers.  The effective date for implementation for public companies is January 1, 2018.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>The new guidance established a five-step analysis to be followed when determining the recognition of revenue.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>1. </font><font style='line-height:115%'> Identify the contract with a customer.</font></p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>2. </font><font style='line-height:115%'>Identify the performance obligations in the contract.</font></p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>3. </font><font style='line-height:115%'>Determine the transaction price.</font></p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>4. </font><font style='line-height:115%'>Allocate the transaction price to the performance obligations in the contract.</font></p> <p style='margin-left:.75in;text-indent:-.25in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>5. </font><font style='line-height:115%'>Recognize revenue when, or as, the reporting organization satisfied a performance obligation.</font></p> <p style='margin-left:0in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin-left:0in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'><font style='line-height:115%'>While the Company is an early-stage company with no revenue, at the time we begin to generate revenue the Company will recognize such revenue in conformity with the guidelines set forth by ASC 606.</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-left:0in;line-height:115%;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>c. Estimates</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>d. Cash and Cash Equivalents</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company considers all deposit accounts and investment accounts with an original maturity of 90 days or less to be cash equivalents. The cash balance we currently have on deposit is within the limits for which the FDIC insures.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>e. Property and Equipment</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Property and equipment is stated at cost. Expenditure for minor repairs, maintenance, and replacement parts which do not increase the useful lives of the assets are charged to expense as incurred. Expenditures, exceeding $500, for new assets or that increase the useful life of existing assets are capitalized. Depreciation is computed using the straight-line method. The lives over which the fixed assets are depreciated are five to seven years.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>f. Fair Value</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB Accounting Standards Codification (“ASC”) Topic 820 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements), as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 1 - Quoted market prices in active markets for identical assets or liabilities;</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Level 2 - Inputs other than level one inputs that are either directly or indirectly observable; and</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Level 3 - Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>All cash, accounts payable and accrued liabilities are carried at cost, which approximates fair value due to the short-term nature of these financial instruments. Additionally, we measure certain financial instruments at fair value on a recurring basis.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>g. Earnings per Share</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The computation of earnings per share of common stock is based on the weighted average number of shares outstanding during the period of the financial statement.  The company included 2,287,920 and 3,572,950 shares subscribed but unissued in its calculation of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="499" style='width:374.5pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;line-height:115%'> </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Three months ended March 31, 2020</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Three months ended March 31, 2019</p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;line-height:115%'> </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;line-height:115%'> </p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net (loss) earnings (numerator)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(153,334)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(428,195)</p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Shares (denominator)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>46,553,585 </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>41,473,042 </p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net earnings per share amount - basic</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.00)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.01)</p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Shares (denominator)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>46,553,585 </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>41,473,042 </p> </td> </tr> <tr style='height:15.75pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net earnings per share amount - diluted </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.00)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.01)</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Diluted earnings per share is computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. As of March 31, 2020 and 2019 there were 34,835,200 and 36,581,072, respectively, potential dilutive shares that needed to be considered as common share equivalents.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>As of March 31, 2020 and 2019 the dilutive shares were excluded from the calculation for diluted earnings per share as there was a net loss and their inclusion in the calculation would be anti-dilutive.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p>
3572950
<div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="499" style='width:374.5pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;line-height:115%'> </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Three months ended March 31, 2020</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>Three months ended March 31, 2019</p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;line-height:115%'> </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;line-height:115%'> </p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net (loss) earnings (numerator)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(153,334)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(428,195)</p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Shares (denominator)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>46,553,585 </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>41,473,042 </p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net earnings per share amount - basic</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.00)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.01)</p> </td> </tr> <tr style='height:15.0pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Shares (denominator)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>46,553,585 </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>41,473,042 </p> </td> </tr> <tr style='height:15.75pt'> <td width="223" valign="bottom" style='width:167.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Net earnings per share amount - diluted </p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.00)</p> </td> <td width="138" valign="bottom" style='width:103.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$(0.01)</p> </td> </tr> </table> </div>
-153334
-428195
46553585
41473042
-0.00
-0.01
-0.00
-0.01
34835200
36581072
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>h. Concentrations and Credit Risk<b><i> - </i></b>The Company has relied on a small group of investors to fund its operations.  If this group becomes unable or unwilling to provide additional funding, the Company may be unable to remain in business or to execute on its business plan.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>i. Income Taxes</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Deferred taxes are provided on an asset and liability approach whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>j. Stock-based Compensation</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company, in accordance with ASC 718, <i>Compensation – Stock Compensation</i>, records all share-based payments to employees at the grant-date fair value of the equity instruments issued. In accordance with ASC 718-10-30-9, <i>Measurement Objective – Fair Value at Grant Date</i>, the Company uses the closing price of the stock, as quoted by NASDAQ, on the date of the grant.  The Company believes this pricing method provides the best estimate of fair the fair value of the consideration given.  Compensation cost is recognized over the requisite service period.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company, in accordance with ASC 505, <i>Compensation – Stock Compensation</i>, establishes the value of equity instruments issued to non-employees for goods and services by using the closing price of the stock, as quoted by NASDAQ, on the date of the grant.  The Company believes this method fairly establishes the value of the goods and/or services received.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>k.  Leases</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company accounts for all leases in accordance with ASC 842, <i>Leases</i>, recognizing both assets and liabilities on the balance sheet for the right to use those assets for the lease term and obligations to make the lease payments created by those leases that have terms of greater than twelve months. </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt'>l. Recent Accounting Pronouncements</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;line-height:11.4pt'><font style='quot,serif'>In June 2018, the FASB issued ASU No. 2018-07, “Compensation — Stock Compensation (Topic 718),” (“ASU 2018-07”). ASU 2018-07 is intended to reduce cost and complexity of financial reporting for non-employee share-based payments. Currently, the accounting requirements for non-employee and employee share-based payments are significantly different. ASU 2018-07 expands the scope of Topic 718, which currently only includes share-based payments to employees, to include share-based payments to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, “Equity — Equity-Based Payments to Nonemployees”. The amendments to ASU 2018 - 07 are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, but no earlier than a company’s adoption date of ASU No. 2014-09, (Topic 606), “Revenue from Contracts with Customers”. The Company adopted ASU 2018-07 effective January 1, 2020.  The adoption of ASU 2018-07 will not have a material effect on its condensed financial statements. </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In December 2019, the FASB issued ASU 2019-12, “Income Taxes Topic 740-Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which intended to simplify various aspects related to accounting for income taxes/.  ASU 2019-12 removes certain exceptions to the general principles of Topic 740 and also clarifies and amends existing guidance to improve consistent application of Topic 740.  The effective date will be the first quarter of fiscal year 2021 and early adoption is permitted.  Adoption of Topic 740 is not expected to have a material effect on its condensed financial statements. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. </p>
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>NOTE 2 - GOING CONCERN</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company acknowledges that the funds on hand as of March 31, 2020, will not be sufficient to enable it to execute its business plan and funding through the sale of equity capital and short term related party and other shareholder loans in order to meet the planned expenditures for development, operations, and administrative cost over the next 12 months will be required. Planned expenditures are approximately $1,200,000 for the next twelve months. The Company is currently funded through May 31, 2020. If plans to obtain further financing prove to be insufficient to fund operations, continued viability could be at risk. These factors raise substantial doubt about the Company's ability to continue as a going concern. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p>
1200000
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>NOTE 3 – PROPERTY AND EQUIPMENT</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Property and equipment and related accumulated depreciation consisted of the following at March 31, 2020, and December 31, 2019:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="428" style='border-collapse:collapse'> <tr style='height:38.25pt'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:38.25pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="115" valign="bottom" style='width:86.05pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:38.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>March 31, 2020</p> </td> <td width="26" valign="bottom" style='width:19.85pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:38.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:38.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>December 31, 2019</p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:38.25pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'><font style='line-height:115%'> </font></p> </td> </tr> <tr style='height:.2in'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="115" valign="bottom" style='width:86.05pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="26" valign="bottom" style='width:19.85pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'> </p> </td> </tr> <tr style='height:52.2pt'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:52.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Computer and office equipment</p> </td> <td width="115" valign="bottom" style='width:86.05pt;padding:0;height:52.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                   90,368</p> </td> <td width="26" valign="bottom" style='width:19.85pt;padding:0;height:52.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;padding:0;height:52.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                      90,368</p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:52.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'> </p> </td> </tr> <tr style='height:63.0pt'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:63.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accumulated depreciation</p> </td> <td width="115" valign="bottom" style='width:86.05pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:63.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (69,991)</p> </td> <td width="26" valign="bottom" style='width:19.85pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:63.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-4.5pt;text-align:right;text-indent:4.5pt'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:63.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-4.5pt;text-align:right;text-indent:4.5pt'> (66,943)</p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:63.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'> </p> </td> </tr> <tr style='height:.2in'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="115" valign="bottom" style='width:86.05pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="26" valign="bottom" style='width:19.85pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'><font style='line-height:115%'> </font></p> </td> </tr> <tr style='height:48.6pt'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:48.6pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total Fixed Assets</p> </td> <td width="115" valign="bottom" style='width:86.05pt;border:none;border-bottom:double black 2.25pt;padding:0;height:48.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                    20,377</p> </td> <td width="26" valign="bottom" style='width:19.85pt;border:none;border-bottom:double black 2.25pt;padding:0;height:48.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;border:none;border-bottom:double black 2.25pt;padding:0;height:48.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                      23,425</p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:48.6pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'> </p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Depreciation expense for the three months ended March 31, 2020 and 2019 was $3,048 and $3,775, respectively.</p>
<div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="428" style='border-collapse:collapse'> <tr style='height:38.25pt'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:38.25pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="115" valign="bottom" style='width:86.05pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:38.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>March 31, 2020</p> </td> <td width="26" valign="bottom" style='width:19.85pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:38.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:38.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center'>December 31, 2019</p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:38.25pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'><font style='line-height:115%'> </font></p> </td> </tr> <tr style='height:.2in'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="115" valign="bottom" style='width:86.05pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="26" valign="bottom" style='width:19.85pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'> </p> </td> </tr> <tr style='height:52.2pt'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:52.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Computer and office equipment</p> </td> <td width="115" valign="bottom" style='width:86.05pt;padding:0;height:52.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                   90,368</p> </td> <td width="26" valign="bottom" style='width:19.85pt;padding:0;height:52.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;padding:0;height:52.2pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                      90,368</p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:52.2pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'> </p> </td> </tr> <tr style='height:63.0pt'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:63.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Accumulated depreciation</p> </td> <td width="115" valign="bottom" style='width:86.05pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:63.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> (69,991)</p> </td> <td width="26" valign="bottom" style='width:19.85pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:63.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-4.5pt;text-align:right;text-indent:4.5pt'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;border:none;border-bottom:solid black 1.0pt;padding:0;height:63.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-left:-4.5pt;text-align:right;text-indent:4.5pt'> (66,943)</p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:63.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'> </p> </td> </tr> <tr style='height:.2in'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> </td> <td width="115" valign="bottom" style='width:86.05pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="26" valign="bottom" style='width:19.85pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;padding:0;height:.2in'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'><font style='line-height:115%'> </font></p> </td> </tr> <tr style='height:48.6pt'> <td width="163" valign="bottom" style='width:122.1pt;padding:0;height:48.6pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Total Fixed Assets</p> </td> <td width="115" valign="bottom" style='width:86.05pt;border:none;border-bottom:double black 2.25pt;padding:0;height:48.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                    20,377</p> </td> <td width="26" valign="bottom" style='width:19.85pt;border:none;border-bottom:double black 2.25pt;padding:0;height:48.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'> </p> </td> <td width="123" valign="bottom" style='width:92.0pt;border:none;border-bottom:double black 2.25pt;padding:0;height:48.6pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right'>$                      23,425</p> </td> <td width="1" valign="bottom" style='width:1.0pt;padding:0;height:48.6pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;margin-bottom:10.0pt;line-height:115%'> </p> </td> </tr> </table> </div>
90368
90368
-69991
-66943
20377
23425
3048
3775
<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 4 - PREFERRED STOCK</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On October 19, 2011, the Company filed Articles of Incorporation with the State of Utah so as to authorize 10,000,000 shares of preferred stock having a par value of $0.001 per share. No preferred shares are issued or outstanding at March 31, 2020. </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 5 - COMMON STOCK</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'><u>Stock Subscription Payable</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>At March 31, 2020 and December 31, 2019, the Company had $571,980 and $465,541, respectively, in stock subscriptions payable for which it is obligated to issue 2,287,920 and 1,862,164 shares of restricted common stock, respectively, pursuant to two separate subscription agreements.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><i>July 2019 Subscription Agreement</i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In July 2019, the Company entered into a stock purchase agreement with a related party, significant shareholder and debt holder, under which the buyer may purchase up to $250,000 in shares of common stock at $0.25 per share.  The agreement expires on December 31, 2020.  The Company received $106,439 under this agreement during the three months ended March 31, 2020.  At the date of this report no stock has been issued against this agreement.  As of March 31, 2019, a total of 90,500 shares of common stock for $22,625 are available to be purchased under this agreement.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><i>2018 Subscription Agreements</i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In October and December 2018, the Company entered into four stock purchase agreements under which the buyer may purchase up to $10,000, $15,000, $20,000, and $50,000, respectively, in shares of common stock at $0.25 per share.  During the three months ended March 31, 2019, the Company issued 40,000 shares of restricted common stock for $10,000 received during the year ended December 31, 2018 under these agreements. This agreement has expired with no additional shares available for purchase.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><u>Common Stock Issued for Cash</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>During the three months ending March 31, 2019, the Company issued 200,000 shares of restricted common stock for $50,000 to an unrelated investor.  </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><u>Common Stock Issued to Officer</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On February 14, 2018 the Company announced that the consulting agreement with the Chief Financial Officer (Mr. Merrell) was terminated effective December 31, 2017, and that a new agreement was entered into effective January 1, 2018 under which Mr. Merrell would receive 2,000,000 shares of restricted common stock, vesting at 500,000 shares per year, for his service.  The term of the agreement is for one year, which term automatically renews for one year extensions up to four years unless terminated by either party with 30 days written notice.  The Company issued all 2,000,000 shares to Mr. Merrell on August 20, 2018.  Any common shares not earned during the four year period are to be returned or cancelled.  A charge will be made each quarter as the shares are earned under the provisions of the agreement until such time as all shares have been earned.  A charge of $50,000 and $50,000 were recorded for the three months ended March 31, 2020 and 2019, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><u>Common Stock Issued for Services</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In September 2018, the Company issued 650,000 shares of stock to two consultants.  Of these shares, 150,000 were issued under a consulting contract for services rendered and vested upon issue and 500,000 shares of restricted stock were issued to a consultant for services rendered and to be rendered through June 1, 2019.  The common stock was valued at $639,000, of which $432,750 was expensed during the year ended December 31, 2018.  The remaining balance of $206,250 was expensed during the year ended December 31, 2019.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p>
10000000
0.001
571980
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106439
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10000
15000
20000
50000
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40000
10000
200000
50000
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500000
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<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 6 – CONVERTIBLE POMISSORY NOTES – Related Party</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i>$100,000 Convertible Promissory Note</i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>On November 12, 2012, the Company issued a $100,000 convertible promissory note to SCS, a related party and significant shareholder, as compensation for services provided during the period April 1, 2012 through March 31, 2013.  The note is due on demand, had an annual interest of 5.5%, and is convertible into shares of common stock at a conversion price to be agreed upon immediately prior to conversion.  On September 27, 2013, the Company amended the note to include a conversion price which of $0.01 per share for all unpaid principal and interest.  As of March 31, 2020 and December 31, 2019 interest accrued, but unpaid, was $62,343 and $60,953, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'><i>$130,100 Convertible Promissory Note</i></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>Prior to 2015, the Company entered into a convertible promissory note with SCS, a related party and significant shareholder, due on demand, bearing interest at 8% per annum, unsecured and convertible at $0.01 per share, with a price protection provision to a lower convertsion price.  The balance of this note was $130,100 at March 31, 2020 and December 31, 2019 with the accrued interest balances of $55,188 and $52,557, respectively.</p>
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<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>NOTE 7 - COMMITMENTS AND CONTINGENCIES</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company has obligations under both a financing lease and operating lease, as detailed below.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><u>Operating Lease Obligations</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company entered into a lease for office space in February 2017 for $950 per month.  In November 2017 the Company signed a six-month extension of the lease with a lease payment of $978 per month. In March 2018 the Company extended the lease agreement through August 31, 2019 at a rate of $1,008<font style='display:none'> </font>per month.  In July 2019 the Company extended the lease agreement through August 31, 2020 at a rate of $1,038 per month.  </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Amortization of $3,024 was recorded as rent expense in the first quarter of 2020, leaving an operating right-of-use asset at March 31, 2020 of $5,372 and an operating lease liability of $5,372.  Amortization of $3,021 was recorded as rent expense for the quarter ended March 31, 2019.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Obligations under this lease are as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><font style='display:none'> </font></p> <table border="0" cellspacing="0" cellpadding="0" width="573" style='width:430.0pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="320" valign="bottom" style='width:240.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="80" valign="bottom" style='width:60.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>    2020</p> </td> <td width="83" valign="bottom" style='width:62.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>    2021</p> </td> <td width="91" valign="bottom" style='width:68.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>    2022</p> </td> </tr> <tr style='height:15.0pt'> <td width="320" valign="bottom" style='width:240.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Office lease</p> </td> <td width="80" valign="bottom" style='width:60.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>  $    5,372 </p> </td> <td width="83" valign="bottom" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$           -</p> </td> <td width="91" valign="bottom" style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>$                   -   </p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>Upon the adoption of ASC 842, the calculation of our lease obligation using a discount rate of 8% resulted in an immaterial difference and therefore, no interest will be imputed on the lease obligation.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>In 2018, the Company also entered into a 24-month lease for a nitric oxide analyzer, with a monthly payment of $1,014 per month.  The final payment under this agreement was made in December 2019.</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><u>Consulting Agreement</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'><font style='background:white'>On March 15, 2020 the Company entered into a service agreement with Hanover International, Inc. to provide advisory services to the Company. The contract is a one year contract, but may be cancelled with thirty days notice any time after the 91</font><sup><font style='quot,serif'>st</font></sup><font style='background:white'> day of the agreement. Hanover will receive a fee of $</font><font style='background:white'>3,500 </font><font style='background:white'>per month, from which fee it pays all of its expenses. In addition, Hanover will receive </font><font style='background:white'>750,000 </font><font style='background:white'>shares of restricted common stock, earned in quarterly tranches of </font><font style='background:white'>187,500 </font><font style='background:white'>shares, deemed earned and issuable after services are provided for each quarter. No shares of common stock have been issued under the terms of this agreement as of March 31, 2020.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p>
950
978
1008
1038
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5372
5372
3021
<table border="0" cellspacing="0" cellpadding="0" width="573" style='width:430.0pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="320" valign="bottom" style='width:240.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'> </p> </td> <td width="80" valign="bottom" style='width:60.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>    2020</p> </td> <td width="83" valign="bottom" style='width:62.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>    2021</p> </td> <td width="91" valign="bottom" style='width:68.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>    2022</p> </td> </tr> <tr style='height:15.0pt'> <td width="320" valign="bottom" style='width:240.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-autospace:ideograph-numeric ideograph-other'>Office lease</p> </td> <td width="80" valign="bottom" style='width:60.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>  $    5,372 </p> </td> <td width="83" valign="bottom" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:right;text-autospace:ideograph-numeric ideograph-other'>$           -</p> </td> <td width="91" valign="bottom" style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:center;text-autospace:ideograph-numeric ideograph-other'>$                   -   </p> </td> </tr> </table>
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<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;background:white'>NOTE 8 - SUBSEQUENT EVENTS</p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'> </p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify'>The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no other events that require disclosure as of the date of issuance.</p>
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