0001493152-19-000093.txt : 20190103 0001493152-19-000093.hdr.sgml : 20190103 20190103125001 ACCESSION NUMBER: 0001493152-19-000093 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 40 CONFORMED PERIOD OF REPORT: 20180930 FILED AS OF DATE: 20190103 DATE AS OF CHANGE: 20190103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: E-Qure Corp. CENTRAL INDEX KEY: 0001563536 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MISC DURABLE GOODS [5090] IRS NUMBER: 471691054 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-54862 FILM NUMBER: 19504394 BUSINESS ADDRESS: STREET 1: 20 WEST 64TH STREET STREET 2: SUITE 39G CITY: NEW YORK STATE: NY ZIP: 10023 BUSINESS PHONE: 97254427777 MAIL ADDRESS: STREET 1: 20 WEST 64TH STREET STREET 2: SUITE 39G CITY: NEW YORK STATE: NY ZIP: 10023 FORMER COMPANY: FORMER CONFORMED NAME: ADB International Group, Inc. DATE OF NAME CHANGE: 20121203 10-Q/A 1 form10-qa.htm

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

 

FORM 10-Q/A

 (Amendment No. 1)

 

 

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2018

 

Commission file number 0-54862

 

E-QURE CORP.
(Exact Name Of Registrant As Specified In Its Charter)

 

Delaware   47-1691054
(State of Incorporation)   (I.R.S. Employer Identification No.)
      
20 West 64th Street, Suite 39G, New York, NY   10023
(Address of Principal Executive Offices)   (ZIP Code)

 

Registrant's Telephone Number, Including Area Code: +(972) 54 427777

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes[X] No [  ]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes[  ] No [X]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act) or a smaller reporting company .

 

Large accelerated filer [  ] Accelerated filer [  ] Non-Accelerated filer [  ] Smaller reporting company[X]

 

On January 2, 2019, the Registrant had 34,546,243 shares of common stock issued and outstanding.

 

 

 

 

 

 

Explanatory Note

 

The sole purpose of this Amendment No. 1 to the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018 of E-QURE CORP (the “Company”) filed with the Securities and Exchange Commission on January 2, 2019 (the “Form 10-Q”) is to furnish Exhibits 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.

 

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

 

   

 

 

ITEM 6. EXHIBITS.

 

(a) The following documents are filed as exhibits to this report on Form 10-Q/A or incorporated by reference herein. Any document incorporated by reference is identified by a parenthetical reference to the SEC filing that included such document.

 

Exhibit No.   Description
31.1   Section 302 Certification of the Sarbanes-Oxley Act of 2002 of Ohad Goren, filed herewith.
31.2   Section 302 Certification of the Sarbanes-Oxley Act of 2002 of Gal Peleg, filed herewith.
32.1   Section 906 of the Sarbanes-Oxley Act of 2002 of Ohad Goren, filed herewith
32.2   Section 906 of the Sarbanes-Oxley Act of 2002 of Gal Peleg, filed herewith

 

   

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned.

 

E-QURE COR.

 

By: /s/ Ohad Goren  
  Ohad Goren  
  Chief Executive Officer  
  (Principal Executive Officer)  
Date: January 3, 2019  
     
By: /s/ Gal Peleg  
  Gal Peleg  
  Chief Financial Officer  
  (Principal Financial and Principal Accounting Officer)  
Date: January 3, 2019  

 

   

 

 

 

EX-31.1 2 ex31-1.htm

 

Exhibit 31.1

CERTIFICATION

 

I, Ohad Goren, certify that:

 

1. I have reviewed this amended quarterly report of E-Qure Corp.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

 

4. As the issuer’s certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as 4efined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer’s most recent fiscal quarter (the issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

 

5. As the issuer’s certifying officer, I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions if applicable):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether r not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

 

Date: January 3, 2019

 

/s/ Ohad Goren  
CEO  

 

 

 

 

EX-31.2 3 ex31-2.htm

 

Exhibit 31.2

 

CERTIFICATION

 

I, Gal Peleg , certify that:

 

1. I have reviewed this amended quarterly report of E-Qure Corp.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

 

4. As the issuer’s certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as 4efined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer’s most recent fiscal quarter (the issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

 

5. As the issuer’s certifying officer, I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions if applicable):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether r not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

 

Date: January 3, 2019

 

/s/ Gal Peleg  
CFO  

 

 

 

 

EX-32.1 4 ex32-1.htm

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of E-Qure Corp. (the “Company”) on Form 10-Q/A for the period ended September 30, 2018 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Ohad Goren , CEO of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 


2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Ohad Goren  
Ohad Goren  
CEO  

 

Dated: January 3, 2019

 

A signed original of this written statement required by Section 906 has been provided to E-Qure Corp. and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

EX-32.2 5 ex32-2.htm

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of E-Qure Corp. (the “Company”) on Form 10-Q/A for the period ended September 30, 2018 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Gal Peleg , CFO of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Gal Peleg  
Gal Peleg  
CFO  

 

Dated: January 3, 2019

 

A signed original of this written statement required by Section 906 has been provided to E-Qure Corp. and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

 

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Additional paid in capital Stock payable Accumulated deficit Total stockholders' deficit Total Liabilities and Stockholders' Equity (Deficit) Preferred stock, par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Common stock, par value Common stock, shares authorized Common stock, shares outstanding Income Statement [Abstract] Revenues Expenses General and administrative Research and development Total (Loss) from operations Income tax Other expenses: Interest expense Total other expenses Net loss Basic and diluted per share amount: Basic and diluted net loss Weighted average shares outstanding (basic and diluted) Statement of Cash Flows [Abstract] Cash flows from operating activities: Net loss Adjustments to reconcile net loss to cash used in operating activities: Stock-based compensation Shares for services Donated capital from related party Imputed interest Changes in assets and liabilities: (Increase) decrease in prepaid expenses (Increase) decrease in other assets (Increase) decrease in accounts receivable Increase (decrease) in accounts payable and accrued expenses Cash used in operating activities Cash flow from financing activities: Related party borrowings Proceeds from issuance of common stock Cash provided by financing activities Change in cash Cash - beginning of period Cash - end of period Non-cash transaction: Debt and accrued wages converted into common stock Organization, Consolidation and Presentation of Financial Statements [Abstract] The Company and Significant Accounting Policies Equity [Abstract] Stockholders' Equity Debt Disclosure [Abstract] Notes Payable Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] Other Assets Related Party Transactions [Abstract] Related Party Transactions not Disclosed Elsewhere Going Concern Subsequent Events [Abstract] Subsequent Events Use of Estimates Cash and Cash Equivalents Property and Equipment Valuation of Long-Lived Assets Stock Based Compensation Accounting for Obligations and Instruments Potentially to be Settled in the Company's Own Stock Fair Value of Financial Instruments Fair Value Measurements Earnings Per Common Share Income Taxes Uncertain Tax Positions Recent Accounting Pronouncements Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis Schedule of Options Outstanding and Exercisable with Exercise Price and Range of Remaining Term Schedule of Notes Payable Cash equivalents Estimated useful lives of assets Unrecognized Tax Benefits Statement [Table] Statement [Line Items] Fair Value Hierarchy and NAV [Axis] Total assets and liabilities at fair value Common stock, voting rights Proceeds from rights offering Number of shares issued Shares issued price per share Warrant description Warrant exercisable term Warrant exercise price Fair value of warrants Debt converted accrued wages Debt conversion related party Debt conversion shares issued Debt conversion warrants issued Number of shares issued for services Values of shares issued for services Number of options granted during the period Stock options granted price per share Share-based compensation arrangement by share-based payment award, options, expected to vested in period Stock option expense Number of option outstanding and exercisable Weighted average exercise price, option outstanding and exercisable Weighted average remaining contractual term, option outstanding and exercisable Debt instrument face amount Imputed interest Notes payable Face amount of converted debt and accrued wages Warrant exercisable Accrued salaries Avi Ohry [Member] Callable Class B Warrant [Member] Class A Warrant [Member] Class A Warrants and Class B Warrants [Member] Class C Warrants [Member] Common Stock Subscription Receivable [Member] Confidential Settlement Agreement [Member] Imputed interest. Dr. Ben Zion Weiner [Member] Executive Officers and Chairman [Member] Four Short-Term Notes [Member] Imputed interest. Itsik Ben Yesha [Member] Michael Cohen [Member] Mr. Weissberg [Member] Ohry SAB Agreement [Member] Per Quarter [Member] Roni Weisberg [Member] Sessler Agreement [Member] Stock payable. Stock Payable [Member] Three Notes [Member] 3 Officers [Member] Two Consultants [Member] 2015 Employee Incentive Plan [Member] Warrant description. Number of warrant exercisable for period. Weiner Agreement [Member] Donated capital from related party. Warrant exercisable term. Class B Warrant [Member] Restricted Shares [Member] Warrants [Member] Michael Sessler [Member] Debt converted accrued wages. Assets, Current Assets [Default Label] Liabilities, Current Stockholders' Equity Attributable to Parent Liabilities and Equity Operating Expenses Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest Interest Expense, Other Nonoperating Income (Expense) Increase (Decrease) in Prepaid Expense Increase (Decrease) in Other Operating Assets Increase (Decrease) in Accounts Receivable Net Cash Provided by (Used in) Operating Activities Net Cash Provided by (Used in) Financing Activities Cash and Cash Equivalents, Period Increase (Decrease) DebtInstrumentImputedInterest EX-101.PRE 11 equr-20180930_pre.xml XBRL PRESENTATION FILE XML 12 R1.htm IDEA: XBRL DOCUMENT v3.10.0.1
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2018
Jan. 02, 2019
Document And Entity Information    
Entity Registrant Name E-Qure Corp.  
Entity Central Index Key 0001563536  
Document Type 10-Q  
Document Period End Date Sep. 30, 2018  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Small Business Flag true  
Entity Emerging Growth Company false  
Entity Ex Transition Period false  
Entity Common Stock, Shares Outstanding   34,546,243
Trading Symbol EQUR  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2018  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.10.0.1
Balance Sheets - USD ($)
Sep. 30, 2018
Dec. 31, 2017
Current assets:    
Cash $ 538,258 $ 10,962
Prepaid expenses 21,000
Total current assets 538,258 31,962
Other assets 18,632 63,382
Total Assets 556,890 95,344
Current liabilities:    
Accounts payable - trade 1,564 1,564
Accrued expenses 174,425 228,150
Short-term notes payable - related party 95,196 138,051
Total current liabilities 271,185 367,765
Stockholders' equity (deficit):    
Preferred stock, $0.00001 par value; 20,000,000 shares authorized; no shares issued and outstanding  
Common stock, $0.00001 par value; 500,000,000 shares authorized; and 34,546,243 and 22,237,562 outstanding at September 30, 2018 and December 31, 2017. 345 222
Additional paid in capital 33,604,992 31,325,044
Stock payable 21,000 21,000
Accumulated deficit (33,340,632) (31,618,687)
Total stockholders' deficit 285,705 (272,421)
Total Liabilities and Stockholders' Equity (Deficit) $ 556,890 $ 95,344
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.10.0.1
Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, shares authorized 20,000,000 20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value $ 0.00001 $ 0.00001
Common stock, shares authorized 500,000,000 500,000,000
Common stock, shares outstanding 34,546,243 22,237,562
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.10.0.1
Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Income Statement [Abstract]        
Revenues
Expenses        
General and administrative 1,514,327 141,155 1,688,995 539,984
Research and development 7,418 26,207 22,200 198,339
Total 1,521,745 167,362 1,711,195 738,323
(Loss) from operations (1,521,745) (167,362) (1,711,195) (738,323)
Income tax
Other expenses:        
Interest expense (1,294) (2,987) (10,750) (2,987)
Total other expenses (1,294) (2,987) (10,750) (2,987)
Net loss $ (1,523,039) $ (170,349) $ (1,725,945) $ (741,310)
Basic and diluted per share amount:        
Basic and diluted net loss $ (0.06) $ (0.01) $ (0.07) $ (0.03)
Weighted average shares outstanding (basic and diluted) 24,911,947 22,411,263 24,030,282 22,146,903
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.10.0.1
Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net loss $ (1,725,945) $ (741,310)
Adjustments to reconcile net loss to cash used in operating activities:    
Stock-based compensation 129,219 107,176
Shares for services 60,127
Donated capital from related party 69,652
Imputed interest 10,750 2,987
Changes in assets and liabilities:    
(Increase) decrease in prepaid expenses 21,000 20,750
(Increase) decrease in other assets 44,750
(Increase) decrease in accounts receivable 5,000
Increase (decrease) in accounts payable and accrued expenses 114,075 159,705
Cash used in operating activities (1,332,499) (385,565)
Cash flow from financing activities:    
Related party borrowings 64,648 108,242
Proceeds from issuance of common stock 1,795,147
Cash provided by financing activities 1,859,795 108,242
Change in cash 527,296 (277,323)
Cash - beginning of period 10,962 292,976
Cash - end of period 538,258 15,653
Non-cash transaction:    
Debt and accrued wages converted into common stock $ 275,303
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.10.0.1
The Company and Significant Accounting Policies
9 Months Ended
Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company and Significant Accounting Policies

1. The Company and Significant Accounting Policies

 

Organizational Background

 

E-Qure Corp. (“EQURE” or the “Company”) is a Delaware corporation with offices in Israel. The Company owns IP of innovate technology of wound healing device (BST).

 

Basis of Presentation:

 

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has not established any source of revenue to cover its operating costs, and as such, has incurred an operating loss since inception.

 

Significant Accounting Policies

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

 

Cash and Cash Equivalents

 

For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. There were no cash equivalents as of September 30, 2018 and December 31, 2017.

 

Property and Equipment

 

New property and equipment are recorded at cost. Property and equipment included in the bankruptcy proceedings and transferred to the Trustee had been valued at liquidation value. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 5 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs and maintenance are charged to operations as incurred. Gain or loss upon sale or retirement due to obsolescence is reflected in the operating results in the period the event takes place.

 

Valuation of Long-Lived Assets

 

We review the recoverability of our long-lived assets including equipment, goodwill and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations.

  

Stock Based Compensation

 

Stock-based awards are accounted for using the fair value method in accordance with ASC 718, Share-Based Payments . Our primary type of share-based compensation consists of stock options. We use the Black-Scholes option pricing model in valuing options. The inputs for the valuation analysis of the options include the market value of the Company’s common stock, the estimated volatility of the Company’s common stock, the exercise price of the warrants and the risk free interest rate.

 

Accounting For Obligations And Instruments Potentially To Be Settled In The Company’s Own Stock

 

We account for obligations and instruments potentially to be settled in the Company’s stock in accordance with FASB ASC 815, Accounting for Derivative Financial Instruments. This issue addresses the initial balance sheet classification and measurement of contracts that are indexed to, and potentially settled in, the Company’s own stock.

 

Fair Value of Financial Instruments

 

FASB ASC 825, “Financial Instruments,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. FASB ASC 825 defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. At September 30, 2018 and December 31, 2017, the carrying value of certain financial instruments (cash and cash equivalents, accounts payable and accrued expenses.) approximates fair value due to the short-term nature of the instruments or interest rates, which are comparable with current rates.

 

Fair Value Measurements

 

The Company measures fair value under a framework that utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure 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). The three levels of inputs which prioritize the inputs used in measuring fair value are:

 

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

 

Level 2: Other inputs that are observable, directly or indirectly, such as quoted prices for similar assets and liabilities or market corroborated inputs.

 

Level 3: Unobservable inputs are used when little or no market data is available, which requires the Company to develop its own assumptions about how market participants would value the assets or liabilities. The fair value hierarchy gives the lowest priority to Level 3 inputs.

 

In determining fair value, the Company utilizes valuation techniques in its assessment that maximize the use of observable inputs and minimize the use of unobservable inputs. The following table presents the Company’s financial assets and liabilities that are carried at fair value, classified according to the three categories described above:

 

Fair Value Measurements at September 30, 2018

 

              Quoted Prices
in Active
      Significant          
              Markets for
Identical
Assets
     

Other

Observable

Inputs

      Significant Unobservable Inputs  
      Total       (Level 1)       (Level 2)       (Level 3)  
None   $ -     $ -     $ -     $ -  
Total assets and liabilities at fair value   $ -     $ -     $ -     $ -  

 

Fair Value Measurements at December 31, 2017

 

              Quoted Prices
in Active
      Significant          
              Markets for
Identical
Assets
     

Other

Observable

Inputs

      Significant Unobservable Inputs  
      Total       (Level 1)       (Level 2)       (Level 3)  
None   $ -     $ -     $ -     $ -  
Total assets and liabilities at fair value   $ -     $ -     $ -     $ -  

 

When the Company changes its valuation inputs for measuring financial assets and liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the fiscal periods ended September 30, 2018 and December 31, 2017, there were no significant transfers of financial assets or financial liabilities between the hierarchy levels.

 

Earnings per Common Share

 

We compute net income (loss) per share in accordance with ASC 260, Earning per Share . ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

 

Income Taxes

 

We have adopted ASC 740, Accounting for Income Taxes. Pursuant to ASC 740, we are required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

 

We must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes.

 

Deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax basis of assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse. ASC 740 provides for the recognition of deferred tax assets if realization of such assets is more likely than not to occur. Realization of our net deferred tax assets is dependent upon our generating sufficient taxable income in future years in appropriate tax jurisdictions to realize benefit from the reversal of temporary differences and from net operating loss, or NOL, carryforwards. We have determined it more likely than not that these timing differences will not materialize and have provided a valuation allowance against substantially all of our net deferred tax asset. Management will continue to evaluate the realizability of the deferred tax asset and its related valuation allowance. If our assessment of the deferred tax assets or the corresponding valuation allowance were to change, we would record the related adjustment to income during the period in which we make the determination. Our tax rate may also vary based on our results and the mix of income or loss in domestic and foreign tax jurisdictions in which we operate.

 

In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and to the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we will reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We will record an additional charge in our provision for taxes in the period in which we determine that the recorded tax liability is less than we expect the ultimate assessment to be.

 

ASC 740 which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

 

Uncertain Tax Positions

 

The Financial Accounting Standards Board issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109, Accounting for Income Taxes” (“FIN No. 48”) which was effective for the Company on January 1, 2007. FIN No. 48 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under FIN No. 48, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. FIN No. 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure requirements.

 

Our federal and state income tax returns are open for fiscal years ending on or after December 31, 2008. We are not under examination by any jurisdiction for any tax year. At September 30, 2018, we had no material unrecognized tax benefits and no adjustments to liabilities or operations were required under FIN 48.

 

Recent Accounting Pronouncements

 

In May 2017, the FASB issued Update 2017-09 - Compensation - Stock Compensation (Topic 718): Effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. Early adoption is permitted. This adoption is not expected to have a material impact on our financial position or results of operations.

 

In February 2017, FASB issued Update 2017-06 - Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting (a consensus of the Emerging Issues Task Force). Under Topic 960, investments in master trusts are presented in a single line item in the statement of net assets available for benefits. Similar guidance is not provided in Topic 962 or 965, which has resulted in diversity in practice. For each master trust in which a plan holds an interest, the amendments in this Update require a plan’s interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. Topics 960 and 962 require plans to disclose their percentage interest in the master trust and a list of the investments held by the master trust, presented by general type, within the plan’s financial statements. Stakeholders said that the disclosure can be misleading when the plan has a divided interest in the individual investments of the master trust (that is, when the plan has a specific, rather than a proportionate, interest in the master trust). The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trust’s balances in each general type of investments. Early adoption is permitted. This adoption is not expected to have a material impact on our financial position or results of operations.

 

In the opinion of management, the information furnished in these interim financial statements reflects all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the three month-periods ended June 30, 2018 and 2017 and for the twelve-month period ended December 31, 2017. All such adjustments are of a normal recurring nature.

  

Management does not anticipate that the adoption of these standards will have a material impact on the financial statements.

XML 18 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stockholders' Equity
9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Stockholders' Equity

2. Stockholders’ Equity

 

Common Stock

 

We are currently authorized to issue up to 500,000,000 shares of $0.00001 par value common stock. All issued shares of common stock are entitled to vote on a 1 share/1 vote basis.

 

Issuances of Common Stock During the Period ended September 30, 2018:

 

During the three months ended September 30, 2018, the Company raised $1,795,147 from a rights offering of a total of 9,555,468 Units at $0.10 per Unit, each consisting of: (i) one share of Common Stock; (ii) one Class A Warrant exercisable for a period of 24 months to purchase ½ share of Common Stock at the equivalent of $0.50 per share; and (iii) one Callable Class B Warrant exercisable for a period of 36 months to purchase ½ share of Common Stock at the equivalent of $1.25 per share. The Company intends to use the proceeds of the rights offering for general corporate purposes, including working capital, capital expenditures, as well as acquisitions and other strategic purposes. The warrants fair value is $156,722, and were valued using a Black- Scholes valuation model.

 

During the three-months ended September30, 2018, the Company converted $167,800 in accrued wages and $107,503 in related party debt owed to management into 2,753,030 shares of Common Stock. In connection with this conversion, the Company issued 1,376,515 Class A Warrants; 1,376,515 Class B Warrants and 2,750,000 Class C Warrants. The warrants were valued at $129,219 and were included as stock-based compensation and recorded under additional paid in capital.

 

Issuances of Common Stock During the Period ended September 30, 2017:

 

On April 20, 2017, we issued 225,000 shares valued at $39,128 to two consultants for services provided. During the three months ended June 30, 2017, we authorized the issuance of 75,000 additional shares to the same two consultants valued at $0.14 or $21,000, which was recorded as stock payable.

 

Preferred Stock

 

We are currently authorized to issue up to 20,000,000 shares of $0.00001 par value preferred stock. There are no preferred shares outstanding as of September 30, 2018 and December 31, 2017.

 

Stock Options

 

On January 1, 2015, the Company authorized the adoption of the 2015 Employee Incentive Plan.

 

Stock Option Grants

 

On January 1, 2015, the board of director approved the 2015 Employee Incentive Plan. The total number of shares of Common Stock reserved for issuance by the Company either directly as Stock Awards or underlying Options granted under this Plan is 5,000,000 shares of Common Stock. On January 1, 2015, the Company granted options as follows under its 2015 Employee Incentive Plan: (i) Professor Ohry was granted options to purchase 250,000 shares of the Registrant’s common stock (“Option Shares”) at an exercise price equal to one dollar ($1.00) per Option Share. The Option Shares shall vest pursuant to the terms of a Scientific Advisory Board Agreement dated January 1, 2015 (the “Ohry SAB Agreement”). Provided the Ohry SAB Agreement remains in effect, 75,000 shares shall vest July 1, 2015, and the remaining 175,000 Option Shares shall vest at the rate of 25,000 Option Shares per quarter on the first day of each consecutive quarter; (ii) Dr. Ben Zion Weiner was granted options to purchase 350,000 Option Shares at an exercise price equal to one dollar ($1.00) per Option Share. The Option Shares shall vest pursuant to the terms of a Scientific Advisory Board Agreement dated January 1, 2015 (the “Weiner SAB Agreement”). Provided the Weiner SAB Agreement remains in effect, 105,000 Option Shares shall vest July 1, 2015 and the remaining 245,000 Option Shares shall vest at the rate of 35,000 Option Shares per quarter on the first day of each consecutive quarter; and (iii) Michel Sessler was granted options to purchase 150,000 Option Shares at an exercise price equal to one dollar ($1.00) per Option Share. The Option Shares shall vest pursuant to the terms of a Scientific Advisory Board Agreement dated January 1, 2015 (the “Sessler SAB Agreement”). Provided the Sessler SAB Agreement remains in effect, 45,000 Option Shares shall vest July 1, 2015 and the remaining 105,000 Option Shares shall vest at the rate of 15,000 Option Shares per quarter on the first day of each consecutive quarter.

 

Following is a table summarizing options still outstanding and exercisable along with exercise price and range of remaining term.

 

Type   Quantity     Exercise Price     Term  
AviOhry     250,000     $ 1.00       24 Months  
Dr. Ben Zion Weiner     350,000     $ 1.00       24 Months  
Michael Sessler     150,000     $ 1.00       24 Months  
Total     750,000                  

 

During the nine months ended September 30, 2018 and the year ended December 31, 2017, we expensed $0 and $107,176, respectively, in relation the options granted above.

XML 19 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
Notes Payable
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Notes Payable

3. Notes Payable

 

As of September 30, 2018, the Company had no short-term notes outstanding.

 

During the year ended December 31, 2017, the Company issued three notes for a total of $138,051, two of which were issued to related parties. The notes are due on demand and bear no interest rate. As such, the imputed interest is calculated and included under additional paid-in capital. As of September 30, 2018 and December 31, 2017, the Company has recorded $10,750 and $6,900, respectively, in imputed interest.

 

    September 30, 2018     December 31, 2017  
Roni Weisberg, Chairman   $ -     $ 57,172  
Itsik Ben Yesha, CTO   $ 57,460     $ 49,745  
Michael Cohen     37,736       31,134  

 

The reduction in notes due to related party as of September 30, 2018 was due to a partial conversion of debt into equity. See also Note 2. Stockholders’ Equity.

XML 20 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Other Assets
9 Months Ended
Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets

4. Other Assets

 

As of September 30, 2018 and December 31, 2017, the Company recorded $18,632 and $63,382, respectively, as other assets representing securities compliance services to be repaid in cash or securities compliance services pursuant to an arrangement with the Company’s securities compliance consultant.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions not Disclosed Elsewhere
9 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions not Disclosed Elsewhere

5. Related Party Transactions not Disclosed Elsewhere

 

During the three months ended September 30, 2018, the In Company’s chief executive officers and chairman converted debt and accrued wages in the aggregate amount of $275,303 into Units consisting of a total of: (i) 2,753,030 restricted shares, 1,376,515 Class A Warrants and Class B Warrants, having the same terms as the Class A and Class B Warrants set forth in the Reg S Unit Offering, and 2,750,000 Class C Warrants exercisable to purchase one share of Common Stock at a price of $1.00 per Share.The warrants were valued $129,219and were valued using a Black- Scholes valuation model.

 

As of September 30, 2018 and December 31, 2017, we had accrued salaries of $174,425 and $228,150, respectively, due to three of our officers.

 

On January 1, 2015, the board of director approved the 2015 Employee Incentive Plan. The total number of shares of Common Stock reserved for issuance by the Company either directly as Stock Awards or underlying Options granted under this Plan is 5,000,000 shares of Common Stock. On January 1, 2015, the Company granted options as follows under its 2015 Employee Incentive Plan: (i) Professor Ohry was granted options to purchase 250,000 shares of the Registrant’s common stock (“Option Shares”) at an exercise price equal to one dollar ($1.00) per Option Share. The Option Shares shall vest pursuant to the terms of a Scientific Advisory Board Agreement dated January 1, 2015 (the “Ohry SAB Agreement”). Provided the Ohry SAB Agreement remains in effect, 75,000 shares shall vest July 1, 2015, and the remaining 175,000 Option Shares shall vest at the rate of 25,000 Option Shares per quarter on the first day of each consecutive quarter; (ii) Dr. Ben Zion Weiner was granted options to purchase 350,000 Option Shares at an exercise price equal to one dollar ($1.00) per Option Share. The Option Shares shall vest pursuant to the terms of a Scientific Advisory Board Agreement dated January 1, 2015 (the “Weiner SAB Agreement”). Provided the Weiner SAB Agreement remains in effect, 105,000 Option Shares shall vest July 1, 2015 and the remaining 245,000 Option Shares shall vest at the rate of 35,000 Option Shares per quarter on the first day of each consecutive quarter; and (iii) Michel Sessler was granted options to purchase 150,000 Option Shares at an exercise price equal to one dollar ($1.00) per Option Share. The Option Shares shall vest pursuant to the terms of a Scientific Advisory Board Agreement dated January 1, 2015 (the “Sessler SAB Agreement”). Provided the Sessler SAB Agreement remains in effect, 45,000 Option Shares shall vest July 1, 2015 and the remaining 105,000 Option Shares shall vest at the rate of 15,000 Option Shares per quarter on the first day of each consecutive quarter. We expensed $0 and $107,176, respectively, in relation to the option granted.

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Going Concern
9 Months Ended
Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

6. Going Concern

 

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has not established any source of revenue to cover its operating costs, and as such, has incurred an operating loss since inception. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Subsequent Events
9 Months Ended
Sep. 30, 2018
Subsequent Events [Abstract]  
Subsequent Events

7. Subsequent Events

 

There were no other subsequent events following the period ended September 30, 2018 through the date the financial statements were issued that would materially affect the financial statements.

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
The Company and Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

 

For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. There were no cash equivalents as of September 30, 2018 and December 31, 2017.

Property and Equipment

Property and Equipment

 

New property and equipment are recorded at cost. Property and equipment included in the bankruptcy proceedings and transferred to the Trustee had been valued at liquidation value. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 5 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs and maintenance are charged to operations as incurred. Gain or loss upon sale or retirement due to obsolescence is reflected in the operating results in the period the event takes place.

Valuation of Long-Lived Assets

Valuation of Long-Lived Assets

 

We review the recoverability of our long-lived assets including equipment, goodwill and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations.

Stock Based Compensation

Stock Based Compensation

 

Stock-based awards are accounted for using the fair value method in accordance with ASC 718, Share-Based Payments . Our primary type of share-based compensation consists of stock options. We use the Black-Scholes option pricing model in valuing options. The inputs for the valuation analysis of the options include the market value of the Company’s common stock, the estimated volatility of the Company’s common stock, the exercise price of the warrants and the risk free interest rate.

Accounting for Obligations and Instruments Potentially to be Settled in the Company's Own Stock

Accounting For Obligations And Instruments Potentially To Be Settled In The Company’s Own Stock

 

We account for obligations and instruments potentially to be settled in the Company’s stock in accordance with FASB ASC 815, Accounting for Derivative Financial Instruments. This issue addresses the initial balance sheet classification and measurement of contracts that are indexed to, and potentially settled in, the Company’s own stock.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

FASB ASC 825, “Financial Instruments,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. FASB ASC 825 defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. At September 30, 2018 and December 31, 2017, the carrying value of certain financial instruments (cash and cash equivalents, accounts payable and accrued expenses.) approximates fair value due to the short-term nature of the instruments or interest rates, which are comparable with current rates.

Fair Value Measurements

Fair Value Measurements

 

The Company measures fair value under a framework that utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure 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). The three levels of inputs which prioritize the inputs used in measuring fair value are:

 

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

 

Level 2: Other inputs that are observable, directly or indirectly, such as quoted prices for similar assets and liabilities or market corroborated inputs.

 

Level 3: Unobservable inputs are used when little or no market data is available, which requires the Company to develop its own assumptions about how market participants would value the assets or liabilities. The fair value hierarchy gives the lowest priority to Level 3 inputs.

 

In determining fair value, the Company utilizes valuation techniques in its assessment that maximize the use of observable inputs and minimize the use of unobservable inputs. The following table presents the Company’s financial assets and liabilities that are carried at fair value, classified according to the three categories described above:

 

Fair Value Measurements at September 30, 2018

 

              Quoted Prices
in Active
      Significant          
              Markets for
Identical
Assets
     

Other

Observable

Inputs

      Significant Unobservable Inputs  
      Total       (Level 1)       (Level 2)       (Level 3)  
None   $ -     $ -     $ -     $ -  
Total assets and liabilities at fair value   $ -     $ -     $ -     $ -  

 

Fair Value Measurements at December 31, 2017

 

              Quoted Prices
in Active
      Significant          
              Markets for
Identical
Assets
     

Other

Observable

Inputs

      Significant Unobservable Inputs  
      Total       (Level 1)       (Level 2)       (Level 3)  
None   $ -     $ -     $ -     $ -  
Total assets and liabilities at fair value   $ -     $ -     $ -     $ -  

 

When the Company changes its valuation inputs for measuring financial assets and liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the fiscal periods ended September 30, 2018 and December 31, 2017, there were no significant transfers of financial assets or financial liabilities between the hierarchy levels.

Earnings Per Common Share

Earnings per Common Share

 

We compute net income (loss) per share in accordance with ASC 260, Earning per Share . ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

Income Taxes

Income Taxes

 

We have adopted ASC 740, Accounting for Income Taxes. Pursuant to ASC 740, we are required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

 

We must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes.

 

Deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax basis of assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse. ASC 740 provides for the recognition of deferred tax assets if realization of such assets is more likely than not to occur. Realization of our net deferred tax assets is dependent upon our generating sufficient taxable income in future years in appropriate tax jurisdictions to realize benefit from the reversal of temporary differences and from net operating loss, or NOL, carryforwards. We have determined it more likely than not that these timing differences will not materialize and have provided a valuation allowance against substantially all of our net deferred tax asset. Management will continue to evaluate the realizability of the deferred tax asset and its related valuation allowance. If our assessment of the deferred tax assets or the corresponding valuation allowance were to change, we would record the related adjustment to income during the period in which we make the determination. Our tax rate may also vary based on our results and the mix of income or loss in domestic and foreign tax jurisdictions in which we operate.

 

In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and to the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we will reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We will record an additional charge in our provision for taxes in the period in which we determine that the recorded tax liability is less than we expect the ultimate assessment to be.

 

ASC 740 which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

Uncertain Tax Positions

Uncertain Tax Positions

 

The Financial Accounting Standards Board issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109, Accounting for Income Taxes” (“FIN No. 48”) which was effective for the Company on January 1, 2007. FIN No. 48 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under FIN No. 48, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. FIN No. 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure requirements.

 

Our federal and state income tax returns are open for fiscal years ending on or after December 31, 2008. We are not under examination by any jurisdiction for any tax year. At September 30, 2018, we had no material unrecognized tax benefits and no adjustments to liabilities or operations were required under FIN 48.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

In May 2017, the FASB issued Update 2017-09 - Compensation - Stock Compensation (Topic 718): Effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. Early adoption is permitted. This adoption is not expected to have a material impact on our financial position or results of operations.

 

In February 2017, FASB issued Update 2017-06 - Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting (a consensus of the Emerging Issues Task Force). Under Topic 960, investments in master trusts are presented in a single line item in the statement of net assets available for benefits. Similar guidance is not provided in Topic 962 or 965, which has resulted in diversity in practice. For each master trust in which a plan holds an interest, the amendments in this Update require a plan’s interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. Topics 960 and 962 require plans to disclose their percentage interest in the master trust and a list of the investments held by the master trust, presented by general type, within the plan’s financial statements. Stakeholders said that the disclosure can be misleading when the plan has a divided interest in the individual investments of the master trust (that is, when the plan has a specific, rather than a proportionate, interest in the master trust). The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trust’s balances in each general type of investments. Early adoption is permitted. This adoption is not expected to have a material impact on our financial position or results of operations.

 

In the opinion of management, the information furnished in these interim financial statements reflects all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the three month-periods ended June 30, 2018 and 2017 and for the twelve-month period ended December 31, 2017. All such adjustments are of a normal recurring nature.

  

Management does not anticipate that the adoption of these standards will have a material impact on the financial statements.

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
The Company and Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the Company’s financial assets and liabilities that are carried at fair value, classified according to the three categories described above:

 

Fair Value Measurements at September 30, 2018

 

              Quoted Prices
in Active
      Significant          
              Markets for
Identical
Assets
     

Other

Observable

Inputs

      Significant Unobservable Inputs  
      Total       (Level 1)       (Level 2)       (Level 3)  
None   $ -     $ -     $ -     $ -  
Total assets and liabilities at fair value   $ -     $ -     $ -     $ -  

 

Fair Value Measurements at December 31, 2017

 

              Quoted Prices
in Active
      Significant          
              Markets for
Identical
Assets
     

Other

Observable

Inputs

      Significant Unobservable Inputs  
      Total       (Level 1)       (Level 2)       (Level 3)  
None   $ -     $ -     $ -     $ -  
Total assets and liabilities at fair value   $ -     $ -     $ -     $ -  

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stockholders' Equity (Tables)
9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Schedule of Options Outstanding and Exercisable with Exercise Price and Range of Remaining Term

Following is a table summarizing options still outstanding and exercisable along with exercise price and range of remaining term.

 

Type   Quantity     Exercise Price     Term  
AviOhry     250,000     $ 1.00       24 Months  
Dr. Ben Zion Weiner     350,000     $ 1.00       24 Months  
Michael Sessler     150,000     $ 1.00       24 Months  
Total     750,000                  

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Notes Payable (Tables)
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Schedule of Notes Payable

    September 30, 2018     December 31, 2017  
Roni Weisberg, Chairman   $ -     $ 57,172  
Itsik Ben Yesha, CTO   $ 57,460     $ 49,745  
Michael Cohen     37,736       31,134  

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
The Company and Significant Accounting Policies (Details Narrative) - USD ($)
9 Months Ended
Sep. 30, 2018
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Cash equivalents
Estimated useful lives of assets 5 years  
Unrecognized Tax Benefits  
XML 29 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
The Company and Significant Accounting Policies - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
Sep. 30, 2018
Dec. 31, 2017
Total assets and liabilities at fair value
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Total assets and liabilities at fair value
Significant Other Observable Inputs (Level 2) [Member]    
Total assets and liabilities at fair value
Significant Unobservable Inputs (Level 3) [Member]    
Total assets and liabilities at fair value
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stockholders' Equity (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Apr. 20, 2017
Jan. 01, 2015
Sep. 30, 2018
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Jun. 30, 2017
Jul. 01, 2015
Common stock, shares authorized     500,000,000 500,000,000   500,000,000    
Common stock, par value     $ 0.00001 $ 0.00001   $ 0.00001    
Common stock, voting rights       All issued shares of common stock are entitled to vote on a 1 share/1 vote basis.        
Proceeds from rights offering     $ 1,795,147          
Number of shares issued     9,555,468          
Shares issued price per share     $ 0.10 $ 0.10        
Warrant description     (i) one share of Common Stock; (ii) one Class A Warrant exercisable for a period of 24 months to purchase ½ share of Common Stock at the equivalent of $0.50 per share; and (iii) one Callable Class B Warrant exercisable for a period of 36 months to purchase ½ share of Common Stock at the equivalent of $1.25 per share.          
Fair value of warrants     $ 156,722          
Debt converted accrued wages     167,800          
Debt conversion related party     $ 107,503 $ 275,303      
Debt conversion shares issued     2,753,030          
Stock-based compensation       $ 129,219 $ 107,176      
Preferred stock, shares authorized     20,000,000 20,000,000   20,000,000    
Preferred stock, par value     $ 0.00001 $ 0.00001   $ 0.00001    
Preferred stock, shares outstanding          
2015 Employee Incentive Plan [Member]                
Number of options granted during the period   5,000,000            
Stock option expense       $ 0   $ 107,176    
2015 Employee Incentive Plan [Member] | Ohry SAB Agreement [Member]                
Number of options granted during the period   250,000            
Stock options granted price per share   $ 1.00            
Share-based compensation arrangement by share-based payment award, options, expected to vested in period     175,000 175,000       75,000
2015 Employee Incentive Plan [Member] | Ohry SAB Agreement [Member] | Per Quarter [Member]                
Share-based compensation arrangement by share-based payment award, options, expected to vested in period     25,000 25,000        
2015 Employee Incentive Plan [Member] | Weiner SAB Agreement [Member]                
Number of options granted during the period   350,000            
Stock options granted price per share   $ 1.00            
Share-based compensation arrangement by share-based payment award, options, expected to vested in period     245,000 245,000       105,000
2015 Employee Incentive Plan [Member] | Weiner SAB Agreement [Member] | Per Quarter [Member]                
Share-based compensation arrangement by share-based payment award, options, expected to vested in period     35,000 35,000        
2015 Employee Incentive Plan [Member] | Sessler SAB Agreement [Member]                
Number of options granted during the period   150,000            
Stock options granted price per share   $ 1.00            
Share-based compensation arrangement by share-based payment award, options, expected to vested in period     105,000 105,000       45,000
2015 Employee Incentive Plan [Member] | Sessler SAB Agreement [Member] | Per Quarter [Member]                
Share-based compensation arrangement by share-based payment award, options, expected to vested in period     15,000 15,000        
Two Consultants [Member]                
Shares issued price per share             $ 0.14  
Number of shares issued for services 225,000              
Values of shares issued for services $ 39,128              
Class A Warrant [Member]                
Warrant exercisable term     24 months          
Warrant exercise price     $ 0.50 $ 0.50        
Debt conversion warrants issued     1,376,515          
Callable Class B Warrant [Member]                
Warrant exercisable term     36 months          
Warrant exercise price     $ 1.25 $ 1.25        
Class B Warrant [Member]                
Debt conversion warrants issued     1,376,515          
Class C Warrants [Member]                
Debt conversion warrants issued     2,750,000          
XML 31 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stockholders' Equity - Schedule of Options Outstanding and Exercisable with Exercise Price and Range of Remaining Term (Details)
9 Months Ended
Sep. 30, 2018
$ / shares
shares
Number of option outstanding and exercisable 750,000
AviOhry [Member]  
Number of option outstanding and exercisable 250,000
Weighted average exercise price, option outstanding and exercisable | $ / shares $ 1.00
Weighted average remaining contractual term, option outstanding and exercisable 24 months
Dr. Ben Zion Weiner [Member]  
Number of option outstanding and exercisable 350,000
Weighted average exercise price, option outstanding and exercisable | $ / shares $ 1.00
Weighted average remaining contractual term, option outstanding and exercisable 24 months
Michael Sessler [Member]  
Number of option outstanding and exercisable 150,000
Weighted average exercise price, option outstanding and exercisable | $ / shares $ 1.00
Weighted average remaining contractual term, option outstanding and exercisable 24 months
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
Notes Payable (Details Narrative) - USD ($)
Sep. 30, 2018
Dec. 31, 2017
Imputed interest $ 10,750 $ 6,900
Three Notes [Member]    
Debt instrument face amount   $ 138,051
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
Notes Payable - Schedule of Notes Payable (Details) - USD ($)
Sep. 30, 2018
Dec. 31, 2017
Roni Weisberg, Chairman [Member]    
Notes payable $ 57,172
Itsik Ben Yesha, CTO [Member]    
Notes payable 57,460 49,745
Michael Cohen [Member]    
Notes payable $ 37,736 $ 31,134
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Other Assets (Details Narrative) - USD ($)
Sep. 30, 2018
Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Other assets $ 18,632 $ 63,382
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions not Disclosed Elsewhere (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Jan. 01, 2015
Sep. 30, 2018
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Jul. 01, 2015
Face amount of converted debt and accrued wages   $ 107,503 $ 275,303    
Debt conversion shares issued   2,753,030        
Warrant description   (i) one share of Common Stock; (ii) one Class A Warrant exercisable for a period of 24 months to purchase ½ share of Common Stock at the equivalent of $0.50 per share; and (iii) one Callable Class B Warrant exercisable for a period of 36 months to purchase ½ share of Common Stock at the equivalent of $1.25 per share.        
Fair value of warrants   $ 156,722        
Accrued salaries   $ 174,425 174,425   $ 228,150  
2015 Employee Incentive Plan [Member]            
Number of options granted during the period 5,000,000          
Stock option expense     $ 0   $ 107,176  
2015 Employee Incentive Plan [Member] | Ohry SAB Agreement [Member]            
Number of options granted during the period 250,000          
Stock options granted price per share $ 1.00          
Share-based compensation arrangement by share-based payment award, options, expected to vested in period   175,000 175,000     75,000
2015 Employee Incentive Plan [Member] | Ohry SAB Agreement [Member] | Per Quarter [Member]            
Share-based compensation arrangement by share-based payment award, options, expected to vested in period   25,000 25,000      
2015 Employee Incentive Plan [Member] | Weiner SAB Agreement [Member]            
Number of options granted during the period 350,000          
Stock options granted price per share $ 1.00          
Share-based compensation arrangement by share-based payment award, options, expected to vested in period   245,000 245,000     105,000
2015 Employee Incentive Plan [Member] | Weiner SAB Agreement [Member] | Per Quarter [Member]            
Share-based compensation arrangement by share-based payment award, options, expected to vested in period   35,000 35,000      
2015 Employee Incentive Plan [Member] | Sessler SAB Agreement [Member]            
Number of options granted during the period 150,000          
Stock options granted price per share $ 1.00          
Share-based compensation arrangement by share-based payment award, options, expected to vested in period   105,000 105,000     45,000
2015 Employee Incentive Plan [Member] | Sessler SAB Agreement [Member] | Per Quarter [Member]            
Share-based compensation arrangement by share-based payment award, options, expected to vested in period   15,000 15,000      
Class C Warrants [Member]            
Debt conversion warrants issued   2,750,000        
Executive Officers and Chairman [Member]            
Face amount of converted debt and accrued wages   $ 275,303        
Executive Officers and Chairman [Member] | Restricted Shares [Member]            
Debt conversion shares issued   2,753,030        
Executive Officers and Chairman [Member] | Class A Warrants and Class B Warrants [Member]            
Debt conversion warrants issued   1,376,515        
Executive Officers and Chairman [Member] | Class C Warrants [Member]            
Warrant exercisable   2,750,000 2,750,000      
Warrant exercise price   $ 1.00 $ 1.00      
Warrant description     Class C Warrants exercisable to purchase one share of Common Stock at a price of $1.00 per Share.      
Executive Officers and Chairman [Member] | Warrants [Member]            
Fair value of warrants   $ 129,219        
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