10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q/A

(Amendment No. 2)

(Mark One)

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

For the quarterly period ended June 30, 2017

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

For the transition period from _______________ to _______________.

Commission file number: 000-55053

Blow & Drive Interlock Corporation

(Exact name of registrant as specified in its charter)

Delaware	46-3590850
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5503 Cahuenga Blvd, #203 Los Angeles, CA	91601
(Address of principal executive offices)	(Zip Code)

(877) 238-4492

Registrant’s telephone number, including area code

(Former address, if changed since last report)

(Former fiscal year, if changed since last report)

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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ].

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer [  ]	Accelerated filer [  ]
	Non-accelerated filer [  ]	Smaller reporting company [X]
(Do not check if a smaller reporting company)
		Emerging growth company [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

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

Applicable only to issuers involved in bankruptcy proceedings during the preceding five years:

Indicate by check mark whether the registrant filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [  ] No [  ]

Applicable only to corporate issuers:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of August 17, 2017, there were 22,770,628 shares of common stock, $0.0001 par value, issued and outstanding.

BLOW & DRIVE INTERLOCK CORPORATION

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION		4
ITEM 1	Financial Statements	5
ITEM 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
ITEM 3	Quantitative and Qualitative Disclosures About Market Risk	33
ITEM 4	Controls and Procedures	33
PART II – OTHER INFORMATION		35
ITEM 1	Legal Proceedings	35
ITEM 1A	Risk Factors	35
ITEM 2	Unregistered Sales of Equity Securities and Use of Proceeds	35
ITEM 3	Defaults Upon Senior Securities	36
ITEM 4	Mine Safety Disclosures	36
ITEM 5	Other Information	36
ITEM 6	Exhibits	38

2

EXPLANATORY NOTE

We are filing this Amendment No. 2 on Form 10-Q/A (the “Amendment”) to our Quarterly Report on Form 10-Q for the period ended June 30, 2017 (the “Form 10-Q”), filed with the United States Securities and Exchange Commission on August 21, 2017 (the “Original Filing Date”), and as amended by Amendment No. 1 to the Form 10-Q filed August 31, 2017, solely to correct an error in our financial statements for this period. In our filings in 2016 we had mistakenly recognized the entire upfront fees from two of our independent distributors ($10,000 in Q2 2016 and $50,000 in Q3 2016) as revenue at the time we delivered the exclusive license to the distributor rather than over the term of the agreement (5 years including any automatic extension). To correct this error, in the financial statements included with this Amendment we show the portion of the upfront fees attributable to this period. In order to correct these errors we have included restated financial statements, notes to financial statements, and amended management disclosure and analysis related to the restated financial statements with this Amendment. The adjustments to the financial statements are indicated in our restated financial statements filed herewith.

No other changes have been made to the Form 10-Q. All other portions of this Amendment speaks as of the Original Filing Date and do not reflect events that may have occurred subsequent to the Original Filing Date, and does not modify or update in any way the disclosures made in the Form 10-Q.

3

PART I – FINANCIAL INFORMATION

This Quarterly Report includes forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are based on management’s beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning our possible or assumed future results of operations set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements also include statements in which words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “consider,” or similar expressions are used.

Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions. Our future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.

4

ITEM 1 Financial Statements

The consolidated balance sheets as of June 30, 2017 (unaudited) and December 31, 2016, the consolidated statements of operations for the three and six months ended June 30, 2017 and 2016, the consolidated statement of stockholders equity (deficit) for the six months ended June 30, 2017, and the consolidated statements of cash flows for the six months ending June 30, 2017 and 2016, follow. The unaudited interim condensed financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All such adjustments are of a normal and recurring nature.

5

Blow & Drive Interlock Corporation

Consolidated Balance Sheet

	June 30, 2017 as filed			Restatement adjustment			Restated June 30, 2017			Restated December 31, 2016
	(unaudited)			(unaudited)			(unaudited)
Assets
Current Assets
Cash	$	58,448					$	58,448		$	116,309
Accounts receivable, net		66,561						66,561			51,241
Prepaid Expenses		3,000						3,000			2,361
Inventories		10,650						10,650			10,650
Total Current Assets		138,659			-			138,659			180,561
Other Assets
Deposits		52,404						52,404			256,254
Furniture and equipment		873,449						873,449			356,346
Total Assets	$	1,064,512		$	-		$	1,064,512		$	793,161
Liabilities and Stockholders’ Deficit
Current Liabilities
Accounts payable	$	80,253					$	80,253		$	28,250
Accrued expenses		105,301						105,301			68,795
Accrued interest		39,350						39,350			10,110
Income taxes payable		7,300						7,300			5,700
Deferred revenue		155,524			50,000			205,524			162,331
Derivative liability		56,064						56,064			73,556
Notes payable, net of debt discount of $36,638 and $15,018 at June 30, 2017 and December 31, 2016, respectively		114,902						114,902			125,351
Notes payable - related party, current portion		-						-			49,396
Convertible notes payable, net of debt discount of $9,394 and $23,724 at June 30, 2017 and December 31, 2016, respectively		48,106						48,106			33,775
Royalty notes payable, net of debt discount of $48,608 and $87,036 at June 30, 2017 and December 31, 2016, respectively		1,376						1,376			29,742
Total Current Liabilities		608,176			50,000			658,176			587,006
Long term liabilities
Notes payable, net of debt discount of $51,583 and $32,292 at June 30, 2017 and December 31, 2016, respectively		168,377						168,377			17,708
Notes payable - related party		-						-			48,353
Royalty notes payable, net of debt discount of $398,348 and $574,294 at June 30, 2017 and December 31, 2016, respectively		118,652						118,652			8,778
Accrued royalties payable		122,982						122,982			121,967
Total Liabilities		1,018,187			50,000			1,068,187			783,812
Stockholders’ Equity (Deficit)
Preferred stock, $0.001 par value, 20,000,000 shares authorized, 1,000,000 and 0 shares issued or issuable at June 30, 2017 and December 31, 2016, respectively		1,000						1,000			-
Common stock, $0.0001 par value, 100,000,000 shares authorized, 22,474,052 and 19,575,605 shares issued or issuable at June 30, 2017 and December 31, 2016, respectively.		2,247						2,247			1,958
Additional paid-in capital		2,459,174						2,459,174			1,594,721
Accumulated deficit		(2,416,096	)		(50,000	)		(2,466,096	)		(1,587,330	)
Total Stockholder’s Equity (Deficit)		46,325			(50,000	)		(3,675	)		9,349
Total Liabilities and Stockholders’ Equity (Deficit)	$	1,064,512		$	-		$	1,064,512		$	793,161

The accompanying notes are an integral part of the financial statements.

6

Blow & Drive Interlock Corporation

Consolidated Statements of Operations

(unaudited)

	Three Months Ended June 30,											Six Months Ended June 30,
	2017 as filed			Restatement adjustment		Restated 2017			Restated 2016			2017 as filed			Restatement adjustment		Restated 2017			Restated 2016
Monitoring revenue	$	204,738				$	204,738		$	79,726		$	280,058				$	280,058		$	119,205
Distributorship revenue		106,719			3,000		109,719			5,950			195,453			6,000		201,453			5,950
Total revenue		311,457			3,000		314,457			85,676			475,511			6,000		481,511			125,155
Monitoring cost of revenue		46,085					46,085			11,163			54,067					54,067			17,718
Distributorship cost of revenue		2,500					2,500			-			6,739					6,739			-
Total cost of revenue		48,585			-		48,585			11,163			60,806			-		60,806			17,718
Gross profit		262,872			3,000		265,872			74,513			414,705			6,000		420,705			107,437
Operating expenses
Payroll		98,462					98,462			31,518			168,776					168,776			65,247
Professional fees		35,771					35,771			36,985			76,902					76,902			61,621
General and administrative expenses		(388,747	)				(388,747	)		125,402			327,345					327,345			191,959
Depreciation		88,726					88,726			6,675			144,142					144,142			16,930
Common stock issued for services		-					-			17,000			-					-			34,000
Total operating expenses		(165,788	)		-		(165,788	)		217,580			717,165			-		717,165			369,757
Loss from operations		428,660			3,000		431,660			(143,067	)		(302,460	)		6,000		(296,460	)		(262,320	)
Other income (expense)
Interest expense		(150,489	)				(150,489	)		(42,507	)		(294,798	)				(294,798	)		(69,925	)
Change in fair value of derivative liability		1,464					1,464			15,122			17,492					17,492			(19,612	)
Loss on extinguishment of debt		(305,000	)				(305,000	)		-			(305,000	)				(305,000	)		-
Total other income (expense)		(454,025	)		-		(454,025	)		(27,385	)		(582,306	)		-		(582,306	)		(89,537	)
Loss before provision for income taxes		(25,365	)		3,000		(22,365	)		(170,452	)		(884,766	)		6,000		(878,766	)		(351,857	)
Provision for income taxes		-					-			-								-			-
Net loss	$	(25,365	)	$	3,000	$	(22,365	)	$	(170,452	)	$	(884,766	)	$	6,000	$	(878,766	)	$	(351,857	)
Basic and diluted loss per common share	$	-				$	-		$	(0.01	)	$	(0.04	)			$	(0.04	)	$	(0.02	)
Weighted average number of common shares outstanding - basic and diluted		22,260,585					22,260,585			15,407,687			21,525,449					21,525,449			15,407,687

The accompanying notes are an integral part of the financial statements.

7

Blow & Drive Interlock Corporation

Consolidated Statement of Shareholders’ Equity (Deficit)

(unaudited)

	Preferred Stock				Common Stock				Additional Paid-in			Accumulated			Restatement			Restated Accumulated			Total Stockholders’ Equity
	Shares		Amount		Shares		Amount		Capital			Deficit			adjustment			Deficit			(Deficit)
Balance December 31, 2016		-	$	-		19,575,605	$	1,958	$	1,594,721		$	(1,531,330	)	$	(56,000	)	$	(1,587,330	)	$	9,349
Shares issued for services		-		-		27,180		3		13,910												13,913
Shares issued related to debt		1,000,000		1,000		195,400		19		434,700												435,719
Shares issued for cash		-		-		2,311,218		231		415,879												416,110
Shares issued related to anti-dilution		-		-		364,649		36		(36	)											-
Net loss		-		-		-		-		-			(884,766	)		6,000			(878,766	)		(878,766	)
Balance June 30, 2017		1,000,000	$	1,000		22,474,052	$	2,247	$	2,459,174		$	(2,416,096	)	$	(50,000	)	$	(2,466,096	)	$	(3,675	)

The accompanying notes are an integral part of the financial statements.

8

Blow & Drive Interlock Corporation

Consolidated Statement of Cash Flows

(unaudited)

	Six Months Ended June 30,
	2017 as filed			Restatement adjustment			Restated 2017			Restated 2016
Cash flows from operating activities:
Net loss	$	(884,766	)	$	6,000		$	(878,766	)	$	(351,857	)
Adjustments to reconcile from net loss to net cash used in operating activities:
Depreciation and amortization		144,142						144,142			16,930
Shares issued for services		13,913						13,913			117,362
Loss on extinguishmentof debt		305,000						305,000			-
Amortization of debt discount		186,477						186,477			52,963
Change in fair value of derivative liability		(17,492	)					(17,492	)		19,612
Changes in operating assets and liabilities
Accounts receivable		(15,320	)					(15,320	)		(29,484	)
Prepaid expenses		(639	)					(639	)		2,087
Deposits		53,850						53,850			(14,600	)
Accounts payable		52,003						52,003			23,456
Accrued expenses		37,944						37,944			(2,662	)
Accrued interest		29,240						29,240			(240	)
Income taxes payable		1,600						1,600			-
Deferred revenue		49,193			(6,000	)		43,193			48,499
Accrued royalties payable		1,015						1,015			-
Net cash used in operating activities		(43,840	)		-			(43,840	)		(117,934	)
Cash flows from investing activities:
Purchase of property and equipment		(661,245	)					(661,245	)		(138,932	)
Deposits on units		150,000						150,000			-
Net cash used in investing activities		(511,245	)		-			(511,245	)		(138,932	)
Cash flows from financing activities:
Proceeds from notes payable		195,400						195,400			209,099
Repayments of notes payable		(114,286	)					(114,286	)		(78,761	)
Proceeds from issuance of common stock		416,110						416,110			157,500
Net cash provided by financing activities		497,224			-			497,224			287,838
Net increase (decrease) in cash		(57,861	)		-			(57,861	)		30,972
Cash, beginning of period		116,309						116,309			9,103
Cash, end of period	$	58,448		$	-		$	58,448		$	40,075
Supplemental disclosure of cash information:
Cash paid during the period for:
Interest	$	79,371					$	79,371		$	15,351
Income taxes	$	-					$	-		$	-
Supplemental disclosure of non-cash investing and financing activities
Common stock issued for services	$	13,913					$	13,913		$	117,362
Establishment of debt discount for royalty notes	$	-					$	-		$	120,000
Preferred stock issued for debt reduction and services	$	350,000					$	350,000		$	-

The accompanying notes are an integral part of the financial statements.

9

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Note 1 - Organization and Nature of Business

Blow & Drive Interlock (“the Company”) was incorporated on July 2, 2013 under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company markets and rents alcohol ignition interlock devices to DUI/DWI offenders as part of their mandatory court or motor vehicle department programs. The Company has approval for its device in the following states: California, Colorado, Kansas, New York, Tennessee, Arizona, Oregon, Kentucky, Oklahoma, Pennsylvania, and Texas.

In 2015, The Company formed BDI Manufacturing, Inc., an Arizona corporation, which is a 100% wholly owned subsidiary of Blow & Drive Interlock Corporation.

The Company markets, installs and monitors a breath alcohol ignition interlock device (BAIID) called the BDI-747/1, which is a mechanism that is installed on the steering column of an automobile and into which a driver exhales. The device in turn provides a blood-alcohol concentration analysis. If the driver’s blood-alcohol content is higher than a certain pre-programmed limit, the device prevents the ignition from engaging and the automobile from starting. These devices are often required for use by DUI or DWI (“driving under the influence” or “driving while intoxicated”) offenders as part of a mandatory court or motor vehicle department program.

The Company licenses the rights to third party distributors to promote the BDI-747/1 and provide services related to the device. The distributorships are for specific geographical areas (either entire states or certain counties within states). The Company currently has entered into six distributorship agreements. Under the distribution agreements the Company typically receives a onetime fee, and then is entitled to receive a per unit registration fee and a per unit monthly fee for each BDI-747/1 unit the distributor has in inventory or on the road beginning thirty (30) days after the distributor receives the unit.

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company.

Going Concern

The Company’s unaudited condensed consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2017, the Company had an accumulated deficit of $2,466,096. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease or reduce its operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company will continue to raise funds through the sale of its equity securities or issuance of notes payable to obtain additional operating capital. The Company is dependent upon its ability, and will continue to attempt to secure additional equity and/or debt financing until the Company can earn revenue and realize positive cash flow from its operations. There are no assurances that the Company will be successful in earning revenue and realizing positive cash flow from its operations. Without sufficient financing it would be unlikely that the Company will continue as a going concern.

Based on the Company’s current rate of cash outflows, cash on hand and proceeds from the prior sale of equity securities and issuance of notes payable, management believes that its current cash will not be sufficient to meet the anticipated cash needs for working capital for the next 12 months. The Company’s plans with respect to its liquidity issues include, but are not limited to, the following:

1) Continue to issue restricted stock for compensation due to consultants and for its legacy accounts payable in lieu of cash payments; and

10

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

2) Seek additional capital to continue its operations as it rolls out its current products. The Company is currently evaluating additional debt or equity financing opportunities and may execute them when appropriate. However, there can be no assurances that the Company can consummate such a transaction, or consummate a transaction at favorable pricing.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and achieve profitable operations. These condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

Reclassifications

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 revenue and expenses during the reporting periods. Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenue when earned and related costs of sales and expenses when incurred. The Company recognizes revenue in accordance with FASB ASC Topic 605-10-S99, Revenue Recognition, Overall, SEC Materials (“Section 605-10-S74”). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of revenue consists of the cost of the purchased goods and labor related to the corresponding sales transaction. When a right of return exists, the Company defers revenues until the right of return expires. The Company recognizes revenue from services at the time the services are completed. Monthly per unit fee revenue is earned and recognized over the term of the contract as support services are provided. Revenues from territory exclusivity are earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price has been determined and collectability has been reasonably assured.

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of June 30, 2017 and December 31, 2016 is adequate, but actual write-offs could exceed the recorded allowance.

Inventories

Inventories are valued at the first-in first-out method and at June 30, 2017 and December 31, 2016 consists of spare parts for the BDI 747 monitoring units.

Convertible Debt and Warrants Issued with Convertible Debt

Convertible debt is accounted for under the guidelines established by ASC 470, Debt with Conversion and Other Options and ASC 740, Beneficial Conversion Features. The Company records a beneficial conversion feature (“BCF”) when convertible debt is issued with conversion features at fixed or adjustable rates that are below market value when issued. If, however, the conversion feature is dependent upon a condition being met or the occurrence of a specific event, the BCF will be recorded when the related contingency is met or occurs. The BCF for the convertible instrument is recorded as a reduction, or discount, to the carrying amount of the convertible instrument equal to the fair value of the conversion feature. The discount is then amortized to interest over the life of the underlying debt using the effective interest method.

11

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718, Compensation – Stock Compensation, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense.

For modifications of convertible debt, the Company records a modification that changes the fair value of an embedded conversion feature, including a BCF, as a debt discount which is then amortized to interest expense over the remaining life of the debt. If modification is considered substantial (i.e. greater than 10% of the carrying value of the debt), an extinguishment of debt is deemed to have occurred, resulting in the recognition of an extinguishment gain or loss.

Fair Value of Financial Instruments

The Company utilizes ASC 820-10, Fair Value Measurement and Disclosure, for valuing financial assets and liabilities measured on a recurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10:

	Fair Value Measurments Using:
	Level 1		Level 2			Level 3
Balance December 31, 2016	$	-	$	73,556		$	-
Valuation of preferred shares issuance		-		-			350,000
Change in fair value of derivative liability		-		(17,492	)		-
Balance June 30, 2017 (unaudited)	$	-	$	56,064		$	350,000

Net Income (Loss) Per Share

Basic earnings per share is calculated by dividing income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common and dilutive common share equivalents outstanding during the period.

Stock Based Compensation

The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718 Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an employee stock purchase plan based on the estimated fair values.

For non-employee stock-based compensation, the Company applies FASB ASC Topic 505 Equity-Based Payments to Non-Employees, which requires stock-based compensation related to non-employees to be accounted for based on the fair value of the related stock or options or the fair value of the services on the grant date, whichever is more readily determinable.

12

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Concentrations

All of the Company’s ignition interlock devices are purchased from one supplier in China. The loss of this supplier could have a material impact on the Company’s ability to timely obtain additional units.

The Company has multiple distributors as of June 30, 2017, and is actively engaging more in new markets. However, for the three and six months ended June 30, 2017, one distributor, licensed in four states, makes up approximately 90% percent of all revenues from distributors, and 67% of accounts receivable at June 30, 2017. The loss of this distributer would have a material impact on the Company’s revenues

Income Taxes

The Company accounts for its income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.

The Company also follows ASC 740-10-25, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements in accordance with ASC Topic 740, “Accounting for Income Taxes”. ASC 740-10-25 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Derivative Liabilities

The Company assessed the classification of its derivative financial instruments as of June 30, 2017, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815.

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as defined.

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”.

ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control or could require net cash settlement, then the contract shall be classified as an asset or a liability.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued a new accounting standard on leasing. The new standard will require companies to record most leased assets and liabilities on the balance sheet, and also proposes a dual model for recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on consolidated financial statements.

13

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Note 3 – Segment Reporting

The Company has two reportable segments: (1) Monitoring and (2) Distributorships.

Monitoring fees on Company installed units

The Company rents units directly to customers and installs the units in the customer’s vehicles. The rental periods range from a few months to 2 years and include a combination of down payments made by the customer and monthly payments paid under the agreements with the Company. Revenue is recognized from these companies on the straight line basis over the term of the agreement. Amounts collected in excess of those earned are classified as deferred revenue in the balance sheet, and amounts earned in excess of amounts collected are reflected in accounts receivable in the balance sheet at June 30, 2017 and December 31, 2016.

Distributorships

The Company enters into arrangements that include multiple deliverables, which typically consist of the sale of exclusive distributorship territory rights, startup supplies package, promotional material, three weeks of onsite training and ongoing monthly support services. The Company accounts for each material element within an arrangement with multiple deliverables as separate units of accounting. Revenue is allocated to each unit of accounting under the guidance of ASC Topic 605-25, Multiple-Element Revenue Arrangements, which provides criteria for separating consideration in multiple-deliverable arrangements by establishing a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable is based on vendor-specific objective evidence (“VSOE”) if available, third-party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third-party evidence is available. The Company is required to determine the best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis. The Company generally does not separately sell distributorships or training on a standalone basis. Therefore, the Company does not have VSOE for the selling price of these units nor is third party evidence available and thus management uses its best estimate of selling prices in their allocation of revenue to each deliverable in the multiple element arrangement.

14

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

The following table summarizes net sales and identifiable operating income by segment:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Segment gross profit (a):
Monitoring	$	158,653		$	68,563		$	225,991		$	101,487
Distributorships		107,219			5,950			194,714			5,950
Gross Profit		265,872			74,513			420,705			107,437
Identifiable segment operating expenses (b):
Monitoring		51,580			6,356			57,412			15,557
Distributorships		37,560			-			86,090			-
		89,140			6,356			143,502			15,557
Identifiable segment operating income (c):
Monitoring		107,073			62,207			168,579			85,930
Distributorships		69,659			5,950			108,624			5,950
		176,732			68,157			277,203			91,880
Reconcilliation of identifiable segment income to corporate income (d):
Payroll		98,462			31,518			168,776			65,247
Professional fees		35,771			36,985			76,902			61,621
General and administrative expenses		(388,747	)		125,402			327,345			191,959
Depreciation		(414	)		319			640			1,373
Interest expense		150,489			42,507			294,798			69,925
Change in fair value of derivative liability		(1,464	)		(15,122	)		(17,492	)		19,612
Loss on extinguishment of debt		305,000			-			305,000			-
Common stock issued for services		-			17,000			-			34,000
Income (loss) before provision for income taxes		(22,365	)		(170,452	)		(878,766	)		(351,857	)
Provision for income taxes		-			-			-			-
Net Income (loss)	$	(22,365	)	$	(170,452	)	$	(878,766	)	$	(351,857	)
Total net property, plant, and equipment assets
Monitoring								348,792			164,445
Distributorships								523,018			-
Corporate								1,639			2,919
								873,449			167,364

(a) Segment gross profit includes segment net sales less segment cost of sales

(b) Identifiable segment operating expenses consists of identifiable depreciation expense

(c) Identifiable segment operating income consists of segment gross profit, less identifiable operating expense

(d) General corporate expense consists of all other non-identifiable expenses

15

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Note 4 – Furniture and Equipment

Furniture and equipment consist of the following:

	June 30, 2017			December 31, 2016
Monitoring Units	$	1,081,143		$	419,898
Furniture, Fixtures, and Equipment		4,798			4,798
Total Assets		1,085,941			424,696
Less: accumulated depreciation		(212,492	)		(68,350	)
Furniture and Equipment, net		873,449			356,346

Depreciation expense for the three and six months ended June 30, 2017 and 2016 were $88,725 and $144,142, and $6,676 and $16,930, respectively.

Note 5 – Deposits

Deposits consist of the following:

	June 30, 2017		December 31, 2016
Deposit for BDI-747 units	$	50,000	$	250,000
Other		2,404		6,254
Total	$	52,404	$	256,254

Note 6 – Accrued Expenses

Accrued Expense consist of the following:

	June 30, 2017		December 31, 2016
Accrued expenses	$	5,233	$	3,503
Accrued wages		32,371		32,700
Accrued payroll taxes		67,697		32,592
Total	$	105,301	$	68,795

Note 7 - Deferred revenue

The Company classifies income as deferred until the terms of the contract or time frame have been met within the Company’s revenue recognition policy. As of June 30, 2017 and December 31, 2016 deferred revenue consist of the following:

	June 30, 2017		December 31, 2016
Monitoring deferred revenues	$	150,524	$	103,831
Distributorship deferred revenues		55,000		58,500
Total	$	205,524	$	162,331

16

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Note 8 – Notes Payable

Notes payable consist of the following:

	June 30, 2017					December 31, 2016
	Principal			Accrued Interest		Principal			Accrued Interest
Convertible notes
Convertible note #1		7,500			117		7,500			31
Debt Discount		(444	)		-		(3,104	)		-
Convertible note #2		50,000			2,033		50,000			1,617
Debt Discount		(8,950	)		-		(20,620	)		-
Subtotal convertible notes net		48,106			2,150		33,776			1,648
Promissory notes
Promissory note #1		-			-		990			-
Promissory note #2		-			-		13,278			-
Debt Discount		-			-		(3,510	)		-
Promissory note #3		50,000			750		50,000			-
Debt Discount		(19,792	)		-		(32,292	)		-
Promissory note #4		10,000			1,600		10,000			400
Debt Discount		(2,692	)		-		(7,308	)		-
Promissory note #5		36,100			1,504		36,100			3,581
Promissory note #6		5,040			-		5,040			106
Debt Discount		(1,680	)		-		(4,200	)		-
Promissory note #7		24,960			2,629		24,960			-
Promissory note #8		50,000			2,083		50,000			-
Promissory note #9		50,400			1,050		-			-
Debt Discount		(12,474	)		-		-			-
Promissory note #10		70,000			2,917		-			-
Debt Discount		(24,500	)		-		-			-
Promissory note #11		75,000			3,125		-			-
Debt Discount		(27,083	)		-		-			-
Subtotal promissory notes		283,279			15,658		143,058			4,087
Royalty notes
Royalty note #1		25,731			-		46,876			-
Debt Discount		(25,209	)		-		(45,903	)		-
Royalty note #2		24,253			-		48,938			-
Debt Discount		(23,399	)		-		(41,133	)		-
Royalty note #3		192,000			8,000		192,000			-
Debt Discount		(144,000	)		-		(176,000	)		-
Royalty note #4		325,000			13,542		325,000			4,375
Debt Discount		(254,348	)		-		(311,258	)		-
Subtotal royalty notes		120,028			21,542		38,520			4,375
Related party promissory note
Related party promissory note		-			-		97,749			-
Total		451,413			39,350		313,103			10,110
Current portion		164,387			39,350		238,264			10,110
Long-term portion	$	287,029		$	-	$	74,839		$	-

17

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Convertible note #1:

On August 7, 2015, the Company entered into an agreement with a third party non-affiliate and issued a 7.5% interest bearing convertible debenture for $15,000 due on August 7, 2017, with conversion features commencing after 180 days following the date of the note. Payments of interest only were due monthly beginning September 2015. The loan is convertible at 70% of the average of the closing prices for the common stock during the five trading days prior to the conversion date. In connection with this Convertible note payable, the Company recorded a $5,770 discount on debt, related to the beneficial conversion feature of the note to be amortized over the life of the note or until the note is converted or repaid. This note was bifurcated with the embedded conversion option recorded as a derivative liability at fair value (See Note 8). On May 6, 2016 the note holder elected to convert $7,500 in principal into 30,000 shares of common stock.

In connection with the issuance of the August Convertible Note Payable, the Company issued a warrant on August 7, 2015 to purchase 30,000 shares of the Company’s common stock at a purchase price of $0.50 per share. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrants issued in connection with the convertible note payable using the following inputs: Expected Term – 3 years, Expected Dividend Rate – 0%, Volatility – 100%, Risk Free Interest Rate -1.08%. The Company recorded an additional $4,873 discount on debt, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

Convertible note #2

On November 24, 2015, the Company entered into an agreement with an existing non-affiliated shareholder, and issued a 10% interest bearing convertible debenture for $50,000 due on November 19, 2017. Payments of interest only are due monthly beginning December 2015. The loan is convertible at 70% of the average of the closing prices for the common stock during the five trading days prior to the conversion date, but may not be converted if such conversion would cause the holder to own more than 9.9% of outstanding common stock after giving effect to the conversion (which limitation may be removed by the holder upon 61 days advanced notice to the company). In connection with this Convertible Note Payable, the Company recorded a $32,897 discount on debt, related to the beneficial conversion feature of the note to be amortized over the life of the note or until the note is converted or repaid. This note was bifurcated with the embedded conversion option recorded as a derivative liability at fair value. As of December 30, 2016 this note has not been converted.

In connection with the issuance of the November convertible note payable, the Company issued a warrant to purchase 80,000 shares of common stock at an exercise price of $0.80 per share. The warrant has an exercise period of two years from the date of issuance. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrants issued in connection with the convertible note payable using the following inputs: Expected Term – 2 years, Expected Dividend Rate – 0%, Volatility – 100%, Risk Free Interest Rate -.61%. The Company recorded an additional $13,783 discount on debt, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

Promissory note #1:

On December 18, 2015, the Company entered into a borrowing facility with a third party. The initial note value was for a principal balance of $10,200. The Company is allowed to draw limited additional funds at any time. During 2016 the Company drew an additional $13,100 in connection with this borrowing facility. The interest due is dependent on a cost schedule that is tied to the date of repayment of the principle. This borrowing facility was paid back in January 2017.

Promissory note #2:

On January 29, 2016, the Company entered into a note payable agreement with a third party. The note was for a principal balance of $44,850 in exchange for $29,505 in cash. The initial borrowing was paid back in August 2016. Subsequent to this initial repayment, the Company borrowed an additional $28,600 in September of 2016. The subsequent borrowing was paid back in April 2017.

Promissory note #3:

On March 30, 2016, the Company provided an agreement to a third party to obtain a $50,000 promissory note in exchange for 50,000 restricted common shares and $50,000 in cash. The promissory note has a maturity date of June 30, 2018, and bears interest at 18% per annum. The purchaser did not sign the agreement nor deliver the proper consideration prior to March 31, 2016. The exchange of the $50,000 in cash consideration by the purchaser and the issuance of the 50,000 restricted common shares by the Company was made in conjunction with delivery of the signed purchase agreement and promissory note on April 5, 2016. The Company recorded a debt discount of $50,000 related to the relative fair value of the issued shares associated with the note to be amortized over the life of the note.

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BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Promissory note #4:

On September 23, 2016, the Company provided an agreement to a third party to obtain a $10,000 promissory note in exchange for 100,000 restricted common shares and $10,000 in cash. The promissory note has a maturity date of October 31, 2017 and bears interest at 24% per annum. The Company recorded a debt discount of $10,000 related to the relative fair value of the issued shares associated with the note to be amortized over the life of the note.

Promissory note #5:

On September 30, 2016, the Company provided an agreement to a third party to obtain a $36,100 promissory note in exchange for $36,100 in cash. The promissory note has a maturity date of October 1, 2017 and bears interest at 25% per annum. The note requires interest only payments of $752 per month and a balloon payment of $36,100 for principle upon maturity.

Promissory note #6:

On November 1, 2016, the Company provided an agreement to a third party to obtain a $5,040 promissory note in exchange for $5,040 in cash. The promissory note has a maturity date of November 1, 2017 and bears interest at 25% per annum. The note requires interest only payments of $105 per month. In connection with the issuance of the note payable, the Company issued a warrant to purchase 50,000 shares of common stock at an exercise price of $0.10 per share. The warrant has an exercise period of four years from the date of issuance. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrant using the following inputs: Expected Term – 4 years, Expected Dividend Rate – 0%, Volatility – 329%, Risk Free Interest Rate -1.56%. The Company recorded a discount of $5,040, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

Promissory note #7:

On November 1, 2016, the Company provided an agreement to a third party to obtain a $24,960 promissory note in exchange for $24,960 in cash. The promissory note has a maturity date of November 1, 2017 and bears interest at 25% per annum. The note requires total payments of $520 per month and a balloon payment of $24,960 for principle upon maturity.

Promissory note #8:

On November 1, 2016, the Company provided an agreement to a third party to obtain a $50,000 promissory note in exchange for $50,000 in cash. The promissory note has a maturity date of November 1, 2019 and bears interest at 25% per annum. The note requires total payments of $1,042 per month and a balloon payment of $50,000 for principle upon maturity.

Promissory note #9:

On January 15, 2017, the Company provided an agreement to a third party to obtain a $50,400 promissory note in exchange for $50,400 in cash. The promissory note has a maturity date of January 15, 2018 and bears interest at 25% per annum. The note requires total payments of $1,042 per month and a balloon payment of $50,000 for principle upon maturity. The Company recorded a debt discount of $27,720 related to the value of the issued shares associated with the process of obtaining the note to be amortized over the life of the note.

Promissory note #10:

On February 27, 2017, the Company provided an agreement to a third party to obtain a $70,000 promissory note in exchange for $70,000 in cash. The promissory note has a maturity date of February 27, 2020 and bears interest at 25% per annum. The note requires total payments of $1,458 per month and a balloon payment of $70,000 for principle upon maturity. The Company recorded a debt discount of $28,000 related to the value of the issued shares associated with the process of obtaining the note to be amortized over the life of the note.

Promissory note #11:

On March 16, 2017, the Company provided an agreement to a third party to obtain a $75,000 promissory note in exchange for $75,000 in cash. The promissory note has a maturity date of March 16, 2020 and bears interest at 25% per annum. The note requires total payments of $1,563 per month and a balloon payment of $75,000 for principle upon maturity. The Company recorded a debt discount of $30,000 related to the value of the issued shares associated with the process of obtaining the note to be amortized over the life of the note.

Royalty note #1:

On January 20, 2016, the company entered into a non-interest bearing note payable and royalty agreement with a third party. Under the note, the Company borrowed $65,000 and began to repay the principal amount at a rate of approximately $937 per month with escalations to approximately $3,531 per month as of February 2017 until the note is paid in full. In addition, starting in February 2018, the Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity. In connection with this note, the Company recorded a debt discount of $65,000 relating to the future royalty payments, to be amortized over the life of the note.

19

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

On September 30, 2016, the Company entered into Amendment No. 1 to Royalty note #1 in order to remove a security interest in the Company’s assets to secure repayment of the original note and amend the royalty provisions of the original note to be $1 for each Device on the road beginning in the 25^th month after the date of the original note. In connection with this amendment, the Company issued 425,000 shares of restricted common stock. Pursuant to ASC 470 this amendment is a deemed extinguishment of the debt and the resulting revised debt is set up as a new note. In connection therewith, the Company recorded a loss on extinguishment of $116,541 during the year ended December 31, 2016.

Royalty note #2:

On March 29, 2016, the company consummated a non-interest bearing note payable and royalty agreement with a relative of the CEO with terms almost identical to the note referenced above. Under the note, the Company borrowed $55,000 and began to repay the principal amount at a rate of approximately $937 per month with escalations to approximately $3,531 per month as of April 2017 until the note is paid in full. In addition, starting in February 2018, the Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity. In connection with this note, the Company recorded a debt discount of $55,000 relating to the future royalty payments, to be amortized over the life of the note.

On September 30, 2016, the Company entered into Amendment No. 1 to Royalty note #2 to amend the royalty provisions of the original note to be $1 for each Device on the road beginning in the 25^th month after the date of the Royalty note #2. In connection with this amendment, the Company issued 50,000 shares of restricted common stock and recorded an additional debt discount of $8,959. This amendment was accounted for as a debt modification pursuant to ASC 470.

Royalty note #3:

On September 30, 2016, the Company entered into a Loan and Security Agreement (the “LSA”) with Doheny Group, LLC, a Delaware limited liability company (“Doheny”), under which Doheny agreed to loan up to $542,400 in two phases, to be used to acquire additional parts and supplies to manufacture the Company’s proprietary breath alcohol ignition interlock devices. Under the terms of the LSA, the first phase will be a loan of up to $192,000 to acquire parts and supplies to manufacture 600 Devices; and the second phase will be a loan of up to $350,400 to acquire parts and supplies to manufacture 1,000 Devices.

The Phase 1 Loan was funded in the amount of $192,000 by Doheny on September 30, 2016, upon which the Company forwarded the funds to its supplier on or about October 5, 2016, in order to acquire parts and supplies to manufacture 600 Devices. Both the Phase 1 Loan and the Phase 2 Loan mature three years from the date of funding, and are at an interest rate of 25% per annum. The note requires interest only payments of $4,000 per month. The Company can prepay the Phase 1 Loan and the Phase 2 Loan (if applicable) at any time without penalty. In exchange for Doheny funding the Phase 1 Loan, the Company issued Doheny a promissory note for $192,000 and also issued Doheny shares of common stock equal to 4.99% of the then-outstanding common stock, pursuant to the terms of a stock purchase agreement. As a result, on or about October 7, 2016, the Company issued Doheny 845,913 shares of common stock. In addition, upon funding of any portion of the Phase 2 loan (Royalty Note #4 below) then the Company is obligated to issue Doheny that number of additional shares of common stock that equals 5% of the then-outstanding common stock. Until the Company repays the Phase 1 Loan and the Phase 2 Loan, as applicable, Doheny has anti-dilution rights for the percentage of stock Doheny owns in the event the Company issues additional shares of common stock during that period. The Company also entered into a Royalty Agreement with Doheny, under which Doheny was granted perpetual royalty rights on all Devices when the Company has 500 or more Devices in service whether leased to end users or distributors. The royalty amounts vary between $1 and $2 per Device depending on a variety of factors. The Company recorded a debt discount of $192,000 related to the relative fair value of the issued shares associated with the Phase 1 note to be amortized over the life of the note.

Royalty note #4:

On November 4, 2016, the Company agreed to fund an initial portion of the Phase 2 loan as described in “Royalty note #3” above. In connection with this funding the common stock ownership percentage of Doheny Group was increased to 9.95%. As also described in “Royalty note #3” above Doheny has anti-dilution privileges to maintain 9.95% of common stock ownership at no additional cost until both Royalty note #3 and Royalty note #4 are paid in full. As of June 30, 2017 the Company has drawn $325,000 out of the maximum allowance of $350,400 in connection with Royalty note #4.

20

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Related party promissory note

On February 16, 2014, the Company entered into a note payable agreement with Laurence Wainer, the director, President and sole officer of the Company. The note was for a principal balance of $160,000 and bears interest at 7.75% per annum. Principal and interest payments are due in 60 equal monthly installments beginning in March 2014 of $3,205. The Company and Laurence Wainer entered into an additional agreement effective April 2014 suspending loan repayments until January 2015. As of January 2015, the payments have resumed. On March 31, 2017 the Company entered into an agreement with Mr. Wainer to issue to him 1,000,000 Series A Preferred Shares in exchange $25,537 in accrued salary. On May 19^, 2017, the Company amended the March 31, 2017 agreement to forgive $45,000 in debt owed by Company to Mr. Wainer instead of the forgiveness of $25,537 in accrued salary. The Company paid back the remaining amounts due under this note in June 2017.

Note 9 – Derivative Financial Instruments

The Company applies the provisions of ASC Topic 815-40, Contracts in Entity’s Own Equity (“ASC Topic 815-40”), under which convertible instruments, which contain terms that protect holders from declines in the stock price, may not be exempt from derivative accounting treatment. As a result, embedded conversion options (whose exercise price is not fixed and determinable) in convertible debt (which is not conventionally convertible due to the exercise price not being fixed and determinable) are initially recorded as a liability and are revalued at fair value at each reporting date using the Black Sholes Model.

The Company has a $7,500 and a $50,000 convertible note with variable conversion pricing outstanding at June 30, 2017. The following inputs were used in within the Black Sholes Model to determine the initial relative fair value: Expected Term – .85 and 1.11 years, Expected Dividend Rate – 0%, Volatility – 312%, Risk Free Interest Rate - 0.55%.

The Company revalues these derivatives each quarter using the Black Sholes Model. The change in valuation is accounted for as a gain or loss in derivative liability. The following table describes the Derivative liability as of June 30, 2017 and December 31, 2016.

Balance December 31, 2016	$	73,556
Change in fair market value of derivative		17,492
Balance June 30, 2017 (unaudited)	$	56,064

Note 10 – Accrued Royalties Payable

In connection with the Royalty Notes number 1-4 as discussed in Note 8 above the Company has estimated the royalties to be paid out in perpetuity. These estimates were performed at the inception for the notes to reflect the associated debt discount. Payments on such royalty notes became due in October 2016 upon the Company hitting certain sales milestones as set forth in the royalty agreements.

Note 11 – Stockholders’ Equity

Preferred Stock

The Company’s articles of incorporation authorize the Company to issue up to 20,000,000 preferred shares of $0.001 par value.

Series A Preferred Stock

The Company has been authorized to issue 1,000,000 shares of Series A Preferred Stock. The Series A shares have the following preferences: no dividend rights; no liquidation preference over the Company’s common stock; no conversion rights; no redemption rights; no call rights by the Company; each share of Series A Preferred stock will have one hundred (100) votes on all matters validly brought to the Company’s common stockholders.

During the three months ended March 31, 2017, the Company entered into a material definitive agreement to issue 1,000,000 shares of series A preferred stock to an officer and director of the Company with a preliminary estimated value of $350,000. As of June 30, 2017 the total number of preferred shares issued or issuable was 1,000,000.

Common Stock

The Company has authorized 100,000,000 shares of $.0001. Holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company’s ability to pay dividends on its common stock, subject to the requirements of the Delaware Revised Statutes. The Company has not declared any dividends since incorporation.

During the six months ended June 30, 2017, the Company issued 27,180 shares of $0.001 par value common stock for services with a value of $13,910. The Company also issued 195,400 shares, valued at $85,720, to a related party in connection with obtaining debt financing. Additionally, the Company issued and sold 2,311,218 shares of its common stock to several investors for an aggregate purchase price of $360,879. In addition the Company issued 364,649 common shares in accordance with the anti-dilution provisions of Royalty notes #3 and #4 (see Note 8). The total number of shares issued or issuable as of June 30, 2017 was 22,474,052.

21

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Note 12 – Warrants

The Company also sold warrants to purchase 750,000 common shares for an aggregate purchase price of $55,000.

The following table reflects warrant activity:

			Weighted Average
	Warrants for		Weighted Average		Remaining		Aggregate
	Common Shares		Exercise Price		Contractual Term		Intrinsic Value
Outstanding and exercisable as of December 31, 2014		-	$	-	$	-	$	-
Granted		110,000		0.72		2.27		-
Exercised		-		-		-		-
Forfeited, cancelled, expired		-		-		-		-
Outstanding as of December 31, 2015		110,000	$	0.72	$	2.10		-
Granted		50,000		0.10		4.00
Exercised		-		-		-		-
Forfeited, cancelled, expired		-		-		-		-
Outstanding as of December 31, 2016		160,000	$	0.53	$	1.97		5,250
Granted		1,944,426		0.21		4.00		195,700
Exercised		-		-		-
Forfeited, cancelled, expired		-		-		-
Outstanding as of June 30, 2017		2,104,426	$	0.23	$	3.15		200,950

Note 13 – Income (Loss) Per Share

Net income (loss) per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic net income (loss) per common share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average shares outstanding, assuming all dilutive potential common shares were issued, unless doing so is anti-dilutive.

The following shares are not included in the computation of diluted income (loss) per share, because their inclusion would be anti-dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Preferred shares		-		-		-
Convertible notes		409,159		19,038		409,159		19,751
Warrants		2,104,426		110,000		2,104,426		110,000
Options		-		-		-		-
Total anti-dilutive weighted average shares		2,513,585		129,038		2,513,585		129,751

If all dilutive securities had been exercised at June 30, 2017 the total number of common shares outstanding would be as follows:

	June 30, 2017
Common Shares		22,474,052
Preferred Shares		-
Convertible notes		409,159
Warrants		2,104,426
Options		-
Total potential shares		24,987,637

22

BLOW & DRIVE INTERLOCK CORPORATION

Notes to the Consolidated Financial Statements

Note 14 – Commitments and Contingencies

On December 1, 2016, the Company entered into a four-year lease with Cahuenga Management LLC for a storefront location at 15503 Cahuenga Blvd., North Hollywood, California 91601. Base rent under the lease is $2,200 per month, with an escalating provision up to $2,404 throughout the lease term. The rental agreement includes operating expenses such as common area maintenance, property taxes and insurance.

Legal Proceedings

In the ordinary course of business, the Company from time to time is involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon the Company’s financial condition and/or results of operations. However, in the opinion of management, other than as set forth herein, matters currently pending or threatened against the Company are not expected to have a material adverse effect on the Company’s financial position or results of operations.

Note 15 – Subsequent Events

The Company follows the guidance in FASB ASC Topic 855, Subsequent Events (“ASC 855”), which provides guidance to establish general standards of accounting for and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are available to be issued. ASC 855 sets forth (i) the period after the balance sheet date during which management of a reporting entity evaluates events or transactions that may occur for potential recognition or disclosure in the consolidated financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its consolidated financial statements, and (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date.

Subsequent to June 30, 2017, and through the date of this filing, the Company has issued a total of 296,576 common shares for an aggregate cash purchase price of $51,500.21. In connection with these sales of common shares the Company has also issued warrants for 547,338 common shares.

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ITEM 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations

Disclaimer Regarding Forward Looking Statements

Our Management’s Discussion and Analysis or Plan of Operations contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national and local general economic and market conditions; demographic changes; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; raw material costs and availability; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission.

Although the forward-looking statements in this Quarterly Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

Overview

We are a previous development stage company that was incorporated in the State of Delaware in July 2013. In the year ending December 31, 2016, we generated total revenues of $303,765 (restated), compared to $30,569 in the year ending December 31, 2015. From July 2, 2013 (inception) to December 31, 2016, we experienced a net loss and accumulated deficit of $1,587,330 (restated) and total liabilities of $783,812 (restated) including $97,749 in notes payable to our president, Laurence Wainer. For the three months ended June 30, 2017, we had total revenues of $314,457 (restated) and a net loss of $22,365 (restated).

We are in the business of renting a breath alcohol ignition interlock device called the BDI-747/1, which is a mechanism that is installed on the steering column of an automobile and into which a driver exhales. The device in turn provides a blood-alcohol concentration analysis. If the driver’s blood-alcohol content is higher than a certain pre-programmed limit, the device prevents the ignition from engaging and the automobile from starting. We also have the option of in-car camera technology, which some states require for state approval. The in-car camera feature is just one of several anti-circumvention features found on the BDI-747. These devices are often required for use by DUI or DWI (“driving under the influence” or “driving while intoxicated”) offenders as part of a mandatory court or motor vehicle department program.

On June 17, 2015, our BDI-747 Breath Alcohol Ignition Interlock Device, together with our patent pending BDI Model #1 power line filter, were certified by the National Highway Traffic Safety Administration (NHTSA) as meeting or exceeding the 2013 NHSTA guidelines. As a result, on July 27, 2015 we began production of our BDI-747 Breath Alcohol Ignition Interlock Device with the attached BDI Model #1 power line filter.

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Since receiving our NHSTA Certification we have submitted applications to a number of states to be considered as a state-certified breath alcohol ignition interlock manufacturer and provider for all Ignition Interlock Mandated DUI/DWI offenders throughout each state. The process to get the device approved varies greatly state-to-state. As of June 30, 2017, the BDI-747/1 was approved for use in eleven states, namely California, Colorado, Oregon, Texas, Arizona, Kentucky, Oklahoma, Tennessee, Pennsylvania, New York, and Kansas. Our plan for the remainder of 2017 is to build our infrastructure in the states where we have approval to ensure we can service all areas of those states, as well as to gain approval in an additional 3-5 states.

In states where the BDI-747/1 is approved as a BAIID, we rent the BDI-747/1 devices to offenders, typically for twelve months, but the time could differ on a case-by-case basis depending on the sentence received by the offender. In some states we market, lease, install and support the devices directly and in other states we sell distributorships to authorized distributors allowing them to lease, install, service, remove and support the BDI-747/1 devices. Currently, we lease the devices directly in eight states and areas – California, Oregon, Colorado, Oklahoma, Tennessee, New York, Kansas and parts of Texas - and license the device to distributors in four different areas – two counties in Texas and in the states of Arizona, Kentucky and Pennsylvania.

In states where we rent the devices directly to consumers, we typically charge between $159-$198 in upfront fees for the user (which covers two months of the lease payment), and then between $59-$99/month for the remainder of the lease, which differs depending on the state and the individual consumer. After the upfront payments the leases and payments are month-to-month. The payments cover the installation of the device in the consumer’s vehicle, the rental of the device, recalibration of the device as required by each state (typically every 30 to 60 days) and the monitoring services for the device, which are then reported to the state in accordance with each state’s requirements. In states and areas where we do not have a direct presence, which we only have in Los Angeles, California, we contract with independent service centers, such as car alarm installation companies or other auto services companies, to perform the installations of our BDI-747/1 device, which centers must be approved by the states in which the perform the installations. Because our devices are installed in consumers’ vehicles are part of a judicially-mandated program, and since the use of the device controls the individual’s driving privileges, collection rates of the monthly leasing fees is close to 100%. The failure to make the payment could be a violation of the consumer’s sentence or probation and could cause them to lose the device and their driving privileges.

In areas where we have a distributor, in our typical distributorship arrangement, we charge the distributor a flat fee distributorship territory fee up front (which fee varies based on the size and location of the distributorship), a $150 per unit registration fee, and then a $35 monthly fee for each device the distributor has in its inventory. These fees may vary on a case-by-case basis. The relationship with our distributors may either be on an exclusive or non-exclusive basis depending upon the location of the distributorship and the fees charged.

As of June 30, 2017, we had approximately 2,500 units on the road, with approximately 1,000 devices being rented directly from us and approximately 1,500 devices rented through our distributors. As of August 15, 2017, we had approximately 2,700 units on the road, with approximately 1,325 devices being rented directly from us and approximately 1,375 devices rented through our distributors. We plan to refine our manufacturing processes and increase our marketing of the device, and more aggressively pursue sales and distributors once we have funds to manufacture additional units.

Our website is www.blowanddrive.com.

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Results of Operations for Three Months Ended June 30, 2017 Compared to Three Months Ended June 30, 2016

Summary of Results of Operations

	Three Months Ended June 30,
	2017 (restated)			2016 (restated)
Revenue:	$			$	-
Monitoring revenue		204,738			79,726
Distributorship revenue		109,719			5,950
Total revenues		314,457			85,676
Cost of revenue:
Monitoring cost of revenue		46,085			11,163
Distributorship cost of revenue		2,500			-
Total cost of revenue		48,585			11,163
Gross profit		265,872			74,513
Operating expenses:
Payroll		98,462			31,518
Professional fees		35,771			36,985
General and administrative expenses		(388,747	)		125,402
Depreciation		88,726			6,675
Common stock issued for services		-			17,000
Total operating expenses		(165,788	)		(217,580	)
Income (loss) from operations		431,660			(143,067	)
Other income (expense):
Interest expense		(150,780	)		(42,507	)
Change in fair value of derivative liability		1,464			15,122
Loss on extinguishment of debt		(305,000	)		-
Total other income (expense)		(454,025	)		(27,385	)
Net income (loss)	$	(22,365	)	$	(170,452	)

Operating Loss; Net Income (Loss)

Our net loss decreased by $148,087, from ($170,452) (restated) to ($22,365) (restated), from the three months ended June 30, 2016 compared to June 30, 2017. Our operating income (loss) increased by $574,727, from ($143,067) (restated) to $431,660 (restated) for the same periods. The decrease in our net loss for the three months ended June 30, 2017, compared to the prior year period, is primarily a result of a significant decrease in our general and administrative expenses and an increase in our gross profit of $191,359 for the period, offset by increases in our payroll and depreciation. These changes are detailed below.

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Revenue

During the three months ended June 30, 2017 we had $314,457 (restated) in revenues, with $204,738 coming from revenue from the monthly recurring payments we received from our customers that rent our BDI-747/1 breathalyzer device for the ongoing monitoring services related to the devices, and $109,719 (restated) coming from revenues received from our distributors, compared to $79,726 (restated) and $5,950 (restated) from these revenue sources for the same period one year ago. We expect the revenue we receive from monitoring our devices on the road will continue to increase as we have more units on the road.

Cost of Revenue

Our cost of revenue for the three months ended June 30, 2017 was $48,585, compared to $11,163 for the three months ended June 30, 2016. Our cost of revenue for the three months ended June 30, 2017 was attributed as $46,085 to monitoring cost of revenue and $2,500 to distributorship cost of revenue. For the three months ended June 30, 2016, our cost of revenue was completely related to our monthly monitoring services we provide to our customers.

Payroll

Our payroll increased by $66,944, from $31,518 to $98,462, from the three months ended June 30, 2016 compared to June 30, 2017. This increase was largely related to hiring additional personnel as we put more units on the road. We expect our payroll in future quarterly periods will be approximately $50,000 to $55,000 per quarter until we are able to expand our operations. If we expand our operations, especially by renting units to individuals directly from us (as opposed to through distributors), we expect our payroll will continue to increase as we put additional units on the road.

Professional Fees

Our professional fees increased during the three months ended June 30, 2017 compared to the three months ended June 30, 2016. Our professional fees were $35,771 for the three months ended June 30, 2017 and $36,985 for the three months ended June 30, 2016. These fees are largely related to fees paid for legal, accounting and audit services. We expect these fees to continue grow steadily as our business expands. In the event we undertake an unusual transaction, such as an acquisition, securities offering, or file a registration statement, we would expect these fees to substantially increase during that period.

General and Administrative Expenses

General and administrative expenses decreased significantly for the periods presented, from $142,402 for the three months ended June 30, 2016 to ($388,747) for the three months ended June 30, 2017. This significant decrease was related to the fact we paid a settlement of $50,000 to an ex-employee and removed the higher amount we had accrued for that employee, and we amended our preferred stock purchase agreement with Mr. Laurence Wainer such that his payment for the shares was full satisfaction of approximately $45,000 of debt owed to him rather than $25,500 of accrued salary, which was the original payment. In quarters that we do not have similar one-time transactions we expect our general and administrative expenses to be around $125,000 to $150,000 per quarter for the foreseeable future.

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Depreciation

We had depreciation of $88,726 for the three months ended June 30, 2017, compared to $6,675 for the same period one year ago. Our depreciation and amortization expenses in 2016 were primarily related to the depreciation of the BDI-747/1 device. We anticipate our depreciation expense will continue to increase as we manufacture more devices.

Interest Expense

Interest expense increased by $108,273 from $42,507 for the three months ended June 30, 2016 to $150,780 for the three months ended June 30, 2017. For both periods these amounts are largely due to the interest we owe on outstanding debt including amortization of debt discount costs. The interest expense significantly increased for the period ended June 30, 2017, compared to the same period one year ago, due to our increase in outstanding debt compared to one year ago, primarily related to the loans we received from Doheny Group, LLC.

Change in Fair Value of Derivative Liability

During the three months ended June 30, 2017, we had a change in fair value of derivative liability of $1,464 compared to $15,122 for the same period in 2016. The change in fair value of derivative liability in the three months ended June 30, 2017, relates to the conversion feature of a promissory note we had outstanding during this period. Since the conversion price on the promissory note is calculated based on a discount to the closing price of our common stock, as our closing price fluctuates it changes the fair value of the derivative liability.

Loss on Extinguishment of Debt

During the three months ended June 30, 2017, we had loss on extinguishment of ($305,000) compared to ($19,612) for the same period in 2016. The loss on extinguishment of debt in the three months ended June 30, 2017, relates to debt we retired through the issuance of preferred stock to Laurence Wainer.

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Results of Operations for Six Months Ended June 30, 2017 Compared to Six Months Ended June 30, 2016

Summary of Results of Operations

	Six Months Ended June 30,
	2017 (restated)			2016 (restated)
Revenue:	$			$	-
Monitoring revenue		280,058			119,205
Distributorship revenue		201,453			5,950
Total revenues		481,511			125,155
Cost of revenue:
Monitoring cost of revenue		54,067			17,718
Distributorship cost of revenue		6,739			-
Total cost of revenue		60,806			17,718
Gross profit		420,705			107,437
Operating expenses:
Payroll		168,776			65,247
Professional fees		76,902			61,621
General and administrative expenses		327,345			191,959
Depreciation		144,142			16,930
Common stock issued for services		-			34,000
Total operating expenses		717,165			369,757
Loss from operations		(296,460	)		(262,320	)
Other income (expense):
Interest expense		(295,089	)		(69,925	)
Change in fair value of derivative liability		17,492			(19,612	)
Loss on extinguishment of debt		(305,000	)		-
Total other income (expense)		(582,306	)		(89,537	)
Net income (loss)	$	(878,766	)	$	351,857	)

Operating Loss; Net Income (Loss)

Our net loss increased by $526,909, from ($351,857) (restated) to ($878,766) (restated), from the six months ended June 30, 2016 compared to June 30, 2017. Our operating loss increased by $34,140, from ($262,320) (restated) to ($296,460) (restated) for the same periods. The increase in our net loss for the six months ended June 30, 2017, compared to the prior year period, is primarily a result of a increase in our general and administrative expenses, as well as increases in our payroll, professional fees and depreciation, partially offset by an increase in our gross profit of $313,268 for the period. These changes are detailed below.

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Revenue

During the six months ended June 30, 2017 we had $481,511 (restated) in revenues, with $280,058 coming from revenue from the monthly recurring payments we received from our customers that rent our BDI-747/1 breathalyzer device for the ongoing monitoring services related to the devices, and $201,453 (restated) coming from revenues paid to us from our distributors, compared to $119,205 (restated) and $5,950 (restated) from these revenue sources for the same period one year ago. We expect the revenue we receive from monitoring our devices on the road will continue to increase as we have more units on the road.

Cost of Revenue

Our cost of revenue for the six months ended June 30, 2017 was $60,806, compared to $17,718 for the six months ended June 30, 2016. Our cost of revenue for the six months ended June 30, 2017 was attributed as $54,067 to monitoring cost of revenue and $6,739 to distributorship cost of revenue. For the six months ended June 30, 2016, our cost of revenue was completely related to our monthly monitoring services we provide to our customers.

Payroll

Our payroll increased by $103,529, from $65,247 to $168,776, from the six months ended June 30, 2016 compared to June 30, 2017. This increase was largely related to hiring additional personnel as we put more units on the road. We expect our payroll in future quarterly periods will be approximately $50,000 to $55,000 per quarter until we are able to expand our operations. If we expand our operations, especially by renting units to individuals directly from us (as opposed to through distributors), we expect our payroll will continue to increase as we put additional units on the road.

Professional Fees

Our professional fees increased during the six months ended June 30, 2017 compared to the six months ended June 30, 2016. Our professional fees were $76,902 for the six months ended June 30, 2017 and $61,621 for the six months ended June 30, 2016. These fees are largely related to fees paid for legal, accounting and audit services. We expect these fees to continue grow steadily as our business expands. In the event we undertake an unusual transaction, such as an acquisition, securities offering, or file a registration statement, we would expect these fees to substantially increase during that period.

General and Administrative Expenses

General and administrative expenses increased for the periods presented, from $191,959 (restated) for the six months ended June 30, 2016 to $327,345 for the six months ended June 30, 2017. This increase would have been larger except for we paid a settlement of $50,000 to an ex-employee and removed the higher amount we had accrued for that employee, and we amended our preferred stock purchase agreement with Mr. Laurence Wainer such that his payment for the shares was full satisfaction of approximately $45,000 of debt owed to him rather than $25,500 of accrued salary, which was the original payment. In quarters that we do not have similar one-time transactions we expect our general and administrative expenses to be around $125,000 to $150,000 per quarter for the foreseeable future.

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Depreciation

We had depreciation of $144,142 for the six months ended June 30, 2017, compared to $16,930 for the same period one year ago. Our depreciation and amortization expenses in 2016 were primarily related to the depreciation of the BDI-747/1 device. We anticipate our depreciation expense will continue to increase as we manufacture more devices.

Interest Expense

Interest expense increased by $225,164 from $69,925 for the six months ended June 30, 2016 to $295,089 for the six months ended June 30, 2017. For both periods these amounts are largely due to the interest we owe on outstanding debt including amortization of debt discount costs. The interest expense significantly increased for the period ended June 30, 2017, compared to the same period one year ago, due to our increase in outstanding debt compared to one year ago, primarily related to the loans we received from Doheny Group, LLC.

Change in Fair Value of Derivative Liability

During the six months ended June 30, 2017, we had a change in fair value of derivative liability of $17,492 compared to ($19,612) for the same period in 2016. The change in fair value of derivative liability in the six months ended June 30, 2017, relates to the conversion feature of a promissory note we had outstanding during this period. Since the conversion price on the promissory note is calculated based on a discount to the closing price of our common stock, as our closing price fluctuates it changes the fair value of the derivative liability.

Loss on Extinguishment of Debt

During the six months ended June 30, 2017, we had loss on extinguishment of ($305,000) compared to ($19,612) for the same period in 2016. The loss on extinguishment of debt in the six months ended June 30, 2017, relates to debt we retired through the issuance of preferred stock to Laurence Wainer.

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Liquidity and Capital Resources for Six Months Ended June 30, 2017 Compared to Six Months Ended June 30, 2016

Introduction

During the six months ended June 30, 2017 and 2016, because of our operating losses, we did not generate positive operating cash flows. Our cash on hand as of June 30, 2017 was $58,448 and our cash used in operations is approximately $13,000 per month. As a result, we have short term cash needs. These needs are being satisfied through proceeds from the sales of our securities and loans from both related parties and third parties. We currently do not believe we will be able to satisfy our cash needs from our revenues for some time.

Our cash, current assets, total assets, current liabilities, and total liabilities as of June 30, 2017 and as of December 31, 2016, respectively, are as follows:

	June 30, 2017 (restated)		December 31, 2016 (restated)		Change
Cash	$	58,448	$	116,309	$	57,861
Total Current Assets		138,659		180,561		(41,902	)
Total Assets		1,064,512		793,161		271,351
Total Current Liabilities		658,176		587,006		71,170
Total Liabilities	$	1,068,187	$	783,812	$	284,375

Our current assets decreased as of June 30, 2017 as compared to December 31, 2016, primarily due to us having less cash on hand, offset slightly by higher accounts receivable, net as of June 30, 2017. The increase in our total assets between the two periods was primarily related to the increase accounts receivable, net, as well as an increase in furniture and equipment as of June 30, 2017.

Our current liabilities increased by $71,170 (restated), as of June 30, 2017 as compared to December 31, 2016. This decrease was primarily due to increases in our accrued expenses and accrued interest, offset by slight decreases in our accounts payable, derivative liability, and royalty notes payable, net of debt discount.

In order to repay our obligations in full or in part when due, we will be required to raise significant capital from other sources. There is no assurance, however, that we will be successful in these efforts.

Sources and Uses of Cash

Operations

We had net cash used in operating activities of $43,480 for the six months ended June 30, 2017, as compared to ($116,892) for the six months ended June 30, 2016. For the period in 2017, the net cash used in operating activities consisted primarily of our net income (loss) of ($878,766) (restated), adjusted primarily by change in fair value of derivative liability of ($17,492), shares issued for services of $13,913, amortization of debt discount of $186,477, and depreciation of $144,142, as well as changes in, accrued expenses of $37,944, accounts receivable, net of ($15,320), prepaid expenses of ($639), deposits of $53,850, deferred revenue of $43,193 (restated), accounts payable of $52,003, income taxes payable of $1,600, accrued royalties payable of $1,015, and accrued interest of $29,240. For the period in 2016, the net cash used in operating activities consisted primarily of our net income (loss) of ($351,357) (restated), adjusted primarily by change in fair value of derivative liability of $19,612, shares issued for services of $117,362, amortization of debt discount of $54,005, and depreciation and amortization of $16,930, as well as changes in, accrued expenses of ($2,662), deferred revenue of $48,499 (restated), deposits of ($14,600), accounts payable of $23,456, and accounts receivable of ($29,484).

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Investments

We had cash used in investing activities in the six months ended June 30, 2017 of $511,245, compared to $138,932 for June 30, 2016. For the period ended June 30, 2017, the cash used in investing activities related to purchases of furniture and equipment of ($661,245) partially offset by deposits on units of $150,000. For the period ended June 30, 2016, the cash used in investing activities related to purchases of furniture and equipment.

Financing

Our net cash provided by financing activities for the six months ended June 30, 2017 was $497,224, compared to $287,838 for the six months ended June 30, 2016. For the six months ended June 30, 2017, our net cash from financing activities consisted of proceeds from notes payable of $195,400 and proceeds from issuance of common stock of $416,110, partially offset by repayments of notes payable of ($114,286). For the six months ended June 30, 2016, our net cash from financing activities consisted of proceeds from notes payable of $209,099 and proceeds from issuance of common stock of $157,500, partially offset by repayments of notes payable of ($78,761).

Off Balance Sheet Arrangements

We have no off balance sheet arrangements.

Commitments and Contingent Liabilities

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. As of June 30, 2017, we have no contingent liability that is required to be recorded nor disclosed.

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk

As a smaller reporting company, we are not required to provide the information required by this Item.

ITEM 4 Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Pursuant to rules adopted by the Securities and Exchange Commission we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to rules promulgated under the Securities Exchange Act of 1934. This evaluation was done as of the end of June 30, 2017 under the supervision and with the participation of our principal executive officer and our principal financial officer.

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Based upon our evaluation, our principal executive and financial officer concluded that, as of June 30, 2017, our existing disclosure controls and procedures were not effective. Disclosure controls and procedures means controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to management, including the principal executive and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. With only two officers in charge of such reporting controls, there is no backup to the oversight of such individual and thus such disclosure controls and procedures may not be considered effective.

We have engaged outside accounting and finance advisors to assist us in better implementing effective disclosure controls and procedures.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Internal Control over Financial Reporting

We are responsible for establishing and maintaining adequate internal control over financial reporting in accordance with Rule 13a-15 of the Securities Exchange Act of 1934. Our president conducted an evaluation of the effectiveness of our internal control over financial reporting as of June 30, 2017, based on the criteria establish in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that our internal control over financial reporting was ineffective as of June 30, 2017, based on those criteria. A control system can provide only reasonably, not absolute, assurance that the objectives of the control system are met and no evaluation of controls can provide absolute assurance that all control issues have been detected.

Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2017 and identified the following material weaknesses, which are outlined further in our Annual Report on Form 10-K for the year ended December 31, 2016:

Inadequate segregation of duties: We have an inadequate number of personnel to properly implement control procedures.

We have not documented our internal controls: We have limited policies and procedures that cover the recording and reporting of financial transactions and accounting provisions. As a result we may be delayed in our ability to calculate certain accounting provisions.

We do not have effective controls over the control environment. A formally adopted written code of business conduct and ethics that governs our employees, officers, and directors was not in place. Additionally, management has not developed and effectively communicated to our employees its accounting policies and procedures. This has resulted in inconsistent practices. We also do not have independent members on our Board of Directors.

34

We have not been able to timely and accurately record convertible debt transactions, deferred revenue, and derivative liabilities in the financial statements. As a result, we have needed additional time, beyond the filing deadlines, to file our periodic reports.

PART II – OTHER INFORMATION

ITEM 1 Legal Proceedings

In the ordinary course of business, we are from time to time involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. However, in the opinion of our management, other than as set forth herein, matters currently pending or threatened against us are not expected to have a material adverse effect on our financial position or results of operations.

ITEM 1A Risk Factors

As a smaller reporting company, we are not required to provide the information required by this Item.

ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended June 30, 2017, we issued the following unregistered securities:

During the quarter ended June 30, 2017, we issued an aggregate of 450,500 shares of our common stock to five non-affiliated investors in exchange for $102,825. These shares were issued pursuant to stock purchase agreements and were issued with a standard restrictive legend. The issuances were exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, due to the fact the investors are sophisticated investors, known to our management and familiar with our operations.

During the three months ended June 30, 2017, we issued a warrant to purchase 750,000 shares of our common stock to a non-affiliated investor in exchange for $55,000. The warrant is exercisable at $0.10 per share and expires on June 19, 2021. The issuance was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, due to the fact the investor is a sophisticated investor, known to our management and familiar with our operations.

During the three months ended June 30, 2017, we issued two warrants to purchase an aggregate of 261,000 shares of our common stock to two non-affiliated investors as part of the investors purchase of our common stock.. The warrant is exercisable at $0.23 per share and expire four years after date of issuance. The issuance was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, due to the fact the investor is a sophisticated investor, known to our management and familiar with our operations.

During the three months ended June 30, 2017, we issued an aggregate of 799,801 shares of our common stock to Doheny Group, LLC and to Gnosiis International, LLC, pursuant to the anti-dilution rights they have under separate agreements with us. These shares will be issued with a standard restrictive legend. The issuances will be exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, due to the fact the purchasers are sophisticated investors, known to our management and familiar with our operations. Pursuant to a Termination of Services Agreement we entered into with Mr. Abraham Summers and Gnosiis International, LLC, an entity controlled by Mr. Summers on June 19, 2017, Gnosiis International no longer has anti-dilution rights for future stock issuances.

35

As of June 30, 2017, we were obligated to issue an aggregate of 45,050 shares of our common stock to Doheny Group, LLC, pursuant to the anti-dilution rights they have under separate agreements with us, but have not yet issued the shares. These shares will be issued with a standard restrictive legend. The issuances will be exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, due to the fact the purchasers are sophisticated investors, known to our management and familiar with our operations.

ITEM 3 Defaults Upon Senior Securities

There have been no events which are required to be reported under this Item.

ITEM 4 Mine Safety Disclosures

There have been no events which are required to be reported under this Item.

ITEM 5 Other Information

Series A Preferred Stock

On March 7, 2017, we entered into an Debt Conversion and Series A Preferred Stock Purchase Agreement (the “SPA”) with Laurence Wainer, one of our officers and directors, under which we agreed to create a new series of non-convertible preferred stock entitled “Series A Preferred Stock,” with One Million (1,000,000) shares authorized and the following rights: (i) no dividend rights; (ii) no liquidation preference over the Company’s common stock; (iii) no conversion rights; (iv) no redemption rights; (v) no call rights by the Company; (vi) each share of Series A Convertible Preferred stock will have one hundred (100) votes on all matters validly brought to the Company’s common stockholders; and Mr. Wainer agreed to acquire 1,000,000 shares of our Series A Preferred Stock, once created, in exchange for Mr. Wainer forgiving $25,537 in accrued salary we owed to him as of December 31, 2016. When issued, the issuance will be exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, due to the fact Wainer is one of our officers and directors, is a sophisticated investor and familiar with our operations. On May 19^th, 2017, we entered into an amendment No. 1 to the SPA under which we agreed to accept $45,000 in extinguished debt owed to Mr. Wainer as the purchase price for the Series A Preferred shares rather than the $25,527 in accrued salary.

Abraham Summers

On May 10, 2017, Abraham Summers informed our Chief Executive Officer that he would no longer be performing his job responsibilities as our Chief Financial Officer. On May 18, 2017, our Board of Directors appointed Laurence Wainer, our current Chief Executive Officer, to the position of Interim Chief Financial Officer (our Principal Accounting Officer). Mr. Wainer will serve in this capacity until a replacement Chief Financial Officer can be hired.

36

On June 19, 2017, we entered into a Termination of Services Agreement with Mr. Summers and Gnosiis International, LLC, an entity controlled by Mr. Summers. Under the terms of the agreement: (i) we agreed with Mr. Summers that his Employment Agreement dated November 15, 2016, his employment with us, and Gnosiis’ independent contractor relationship with us, were all terminated effective May 10, 2017, (ii) we agreed to pay Mr. Summers $50,000 and issue him 294,321 shares of our common stock, restricted in accordance with Rule 144, (iii) Mr. Summers relinquished any rights he had to serve on our Board of Directors, (iv) Mr. Summers and Gnosiis agreed to relinquish any anti-dilution rights that would entitle Mr. Summers or Gnosiis additional shares of our common stock, including under the Employment Agreement or otherwise, (v) we agreed to reimburse Mr. Summers $5,000 for his attorney’s fees related to the agreement, and (vi) we entered into a mutual general release with Mr. Summers and Gnosiis with all parties releasing any and all claims they may have against another party, whether those claims are currently known or not.

Doheny Group Transaction

As previously reported, on September 30, 2016, we entered into an Loan and Security Agreement (the “LSA”) with Doheny Group, LLC, a Delaware limited liability company (“Doheny”), under which Doheny agreed to loan us up to $542,400 in two phases, to be used by us to acquire additional parts and supplies to allow us to manufacture our proprietary breath alcohol ignition interlock devices (the “Devices”). At that time we also entered into a Royalty Agreement with Doheny, under which we granted Doheny perpetual royalty rights on all Devices that we receive money from customers or distributors after we have 500 Devices leased to end users or distributors. The royalty amounts vary between $1 and $2 per Device depending on a variety of factors.

On June 3, 2017, we entered into Amendment No. 1s to the LSA and the Royalty Agreement with Doheny, under we amended the LSA and the Royalty Agreement to change the royalty amounts from variable amount between $1 and $2 per Device per month, to a flat royalty rate of $1.30 per Unit per month without regard as to whether the Device is a retail Device or a Wholesale Device with such rate being paid on all Devices that we collect money from the client for that month.

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ITEM 6 Exhibits

Item No.	Description
3.1 (1)	Certificate of Incorporation of Jam Run Acquisition Corporation dated June 28, 2013
3.2	Articles of Amendment to Articles of Incorporation to Jam Run Acquisition Corporation dated February 6, 2014 (changing corporate name to Blow & Drive Interlock Corporation)
3.3 (1)	Bylaws of Jam Run Acquisition Corporation (now Blow & Drive Interlock Corporation) dated June 2013
10.1 (2)	Agreement between Tiber Creek Corporation and Laurence Wainer dated January 25, 2014
10.2 (2)	Promissory Note between the Company and Laurence Wainer dated February 16, 2014
10.3 (3)	Lease Agreement by and between Marsel Plaza LLC and Laurence Wainer and Blow and Drive Interlock Corporation dated January 21, 2015
10.4 (4)	Exclusive Distributorship Agreement with Theenk Inc. dated August 21, 2015
10.5 (4)	Exclusive Distributorship Agreement with Jay Lopez dated July 24, 2015
10.6 (4)	Independent Contractor Agreement with Laurence Wainer dated September 11, 2015
10.7 (5)	Exclusive Distributorship Agreement with Stephen Ferraro dated November 9, 2015
10.4 (6)	Supply Agreement by and between BDI Manufacturing, Inc., an Arizona corporation, and C4 Development Ltd. dated June 29, 2015
10.5 (7)	Securities Purchase Agreement with David Stuart Petlak entered into on November 19, 2015
10.6 (7)	Convertible Promissory Note issued to David Stuart Petlak dated November 19, 2015
10.7 (7)	Common Stock Warrant issued to David Stuart Petlak dated November 19, 2015
10.8 (8)	Exclusive Distributorship Agreement with dba Blow & Drive Houston dated January 11, 2016
10.9 (9)	Secured Promissory Note and Agreement with Ira Silver dated January 20, 2016
10.10 (9)	Secured Promissory Note and Agreement with Chaim K. Wainer dated October 29, 2015
10.11 (10)	Securities Purchase Agreement with Dr. Oren Azulay dated March 30, 2016
10.12 (10)	Common Stock Purchase Agreement with Gustavo Arceo dated April 2016
10.13 (10)	Common Stock Purchase Agreement with LGL LLC dated May 6, 2016
10.14 (11)	Loan and Security Agreement with Doheny Group, LLC dated June 30, 2017
10.15 (11)	Phase 1 Loan Agreement with Doheny Group, LLC dated June 30, 2017
10.16 (11)	Royalty Agreement with Doheny Group, LLC dated June 30, 2017
10.17 (11)	Common Stock Purchase Agreement with Doheny Group, LLC dated June 30, 2017

38

10.18 (11)	Agreement with Abraham Summers and Gnossis International, LLC
10.19 (12)	Termination of Services Agreement by and between Blow & Drive Interlock Corporation, Abraham Summers and Gnosiis International, LLC dated June 19, 2017
10.20 (13)	Amendment No. 1 to Debt Conversion and Series A Preferred Stock Purchase Agreement dated May 17, 2017
10.21 (13)	Amendment No. 1 to Loan and Security Agreement with Doheny Group, LLC dated June 3, 2017
10.22 (13)	Amendment No. 1 to Royalty Agreement with Doheny Group, LLC dated June 3, 2017
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer (filed herewith).
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Accounting Officer (filed herewith).
32.1	Section 1350 Certification of Chief Executive Officer (filed herewith).
32.2	Section 1350 Certification of Chief Accounting Officer (filed herewith).

101.INS **	XBRL Instance Document
101.SCH **	XBRL Taxonomy Extension Schema Document
101.CAL **	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF **	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB **	XBRL Taxonomy Extension Label Linkbase Document
101.PRE **	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

(1)	Incorporated by reference from our Registration Statement on Form 10, filed with the Commission on September 30, 2013.
(2)	Incorporated by reference from our Registration Statement on Form S-1, filed with the Commission on July 24, 2014.
(3)	Incorporated by reference from our Annual Report on Form 10-K, filed with the Commission on March 30, 2015.
(4)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on September 11, 2015.
(5)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on November 12, 2015.

39

(6)	Incorporated by reference from our Quarterly Report on Form 10-Q, filed with the Commission on August 13, 2015.
(7)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on September 11, 2015.
(8)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on February 22, 2016.
(9)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on March 17, 2016.
(10)	Incorporated by reference from our Quarterly Report on Form 10-Q filed with the Commission on August 22, 2016.
(11)	Incorporated by reference from our Quarterly Report on Form 10-Q filed with the Commission on August 21, 2017.
(12)	Incorporated by reference from our Current Report on Form 10-Q filed with the Commission on July 3, 2017.
(13)	Incorporated by reference from our Quarterly Report on Form 10-Q filed with the Commission on August 21, 2017.

40

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Blow & Drive Interlock Corporation
Dated: May 30, 2018	By:	/s/ Laurence Wainer
		Laurence Wainer
		Chief Executive Officer

41

EX-31.1

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

I, Laurence Wainer, certify that:

1.	I have reviewed this Amendment No. 2 to Quarterly Report on Form 10-Q/A of Blow & Drive Interlock Corporation;
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 registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exhibit 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 registrant 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 registrant, 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 registrant’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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

(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 registrant’s ability to record, process, summarize, and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 30, 2018
	By:	/s/ Laurence Wainer
		Laurence Wainer
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

I, Laurence Wainer, certify that:

1.	I have reviewed this Amendment No. 2 to Quarterly Report on Form 10-Q/A of Blow & Drive Interlock Corporation;
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 registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exhibit 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 registrant 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 registrant, 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 registrant’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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

(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 registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 30, 2018
	By:	/s/ Laurence Wainer
		Laurence Wainer
		Interim Chief Financial Officer and Chief Accounting Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Amendment No. 2 to Quarterly Report of Blow & Drive Interlock Corporation (the “Company”) on Form 10-Q/A for the quarter ended June 30, 2017, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Laurence Wainer, President of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 30, 2018
	By:	/s/ Laurence Wainer
		Laurence Wainer
		Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Blow & Drive Interlock Corporation and will be retained by Blow & Drive Interlock Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Amendment No. 2 to Quarterly Report of Blow & Drive Interlock Corporation (the “Company”) on Form 10-Q/A for the quarter ended June 30, 2017, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Laurence Wainer, Interim Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 30, 2018
	By:	/s/ Laurence Wainer
		Laurence Wainer
		Interim Chief Financial Officer and Chief Accounting Officer

A signed original of this written statement required by Section 906 has been provided to Blow & Drive Interlock Corporation and will be retained by Blow & Drive Interlock Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 17, 2017
Document And Entity Information
Entity Registrant Name	Blow & Drive Interlock Corp
Entity Central Index Key	0001586495
Document Type	10-Q/A
Document Period End Date	Jun. 30, 2017
Amendment Flag	true
Amendment Description	We are filing this Amendment No. 2 on Form 10-Q/A (the “Amendment”) to our Quarterly Report on Form 10-Q for the period ended June 30, 2017 (the “Form 10-Q”), filed with the United States Securities and Exchange Commission on August 21, 2017 (the “Original Filing Date”), and as amended by Amendment No. 1 to the Form 10-Q filed August 31, 2017, solely to correct an error in our financial statements for this period. In our filings in 2016 we had mistakenly recognized the entire upfront fees from two of our independent distributors ($10,000 in Q2 2016 and $50,000 in Q3 2016) as revenue at the time we delivered the exclusive license to the distributor rather than over the term of the agreement (5 years including any automatic extension). To correct this error, in the financial statements included with this Amendment we show the portion of the upfront fees attributable to this period. In order to correct these errors we have included restated financial statements, notes to financial statements, and amended management disclosure and analysis related to the restated financial statements with this Amendment. The adjustments to the financial statements are indicated in our restated financial statements filed herewith. No other changes have been made to the Form 10-Q. All other portions of this Amendment speaks as of the Original Filing Date and do not reflect events that may have occurred subsequent to the Original Filing Date, and does not modify or update in any way the disclosures made in the Form 10-Q.
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		22,770,628
Trading Symbol	BDIC
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2017

XML

Consolidated Balance Sheet - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash	$ 58,448	$ 116,309
Accounts receivable, net	66,561	51,241
Prepaid Expenses	3,000	2,361
Inventories	10,650	10,650
Total Current Assets	138,659	180,561
Other Assets
Deposits	52,404	256,254
Furniture and equipment	873,449	356,346
Total Assets	1,064,512	793,161
Current Liabilities
Accounts payable	80,253	28,250
Accrued expenses	105,301	68,795
Accrued interest	39,350	10,110
Income taxes payable	7,300	5,700
Deferred revenue	205,524	162,331
Derivative liability	56,064	73,556
Notes payable, net of debt discount of $36,638 and $15,018 at June 30, 2017 and December 31, 2016, respectively	114,902	125,351
Notes payable - related party, current portion		49,396
Convertible notes payable, net of debt discount of $9,394 and $23,724 at June 30, 2017 and December 31, 2016, respectively	48,106	33,775
Royalty notes payable, net of debt discount of $48,608 and $87,036 at June 30, 2017 and December 31, 2016, respectively	1,376	29,742
Total Current Liabilities	658,176	587,006
Long term liabilities
Notes payable, net of debt discount of $51,583 and $32,292 at June 30, 2017 and December 31, 2016, respectively	168,377	17,708
Notes payable - related party		48,353
Royalty notes payable, net of debt discount of $398,348 and $574,294 at June 30, 2017 and December 31, 2016, respectively	118,652	8,778
Accrued royalties payable	122,982	121,967
Total Liabilities	1,068,187	783,812
Stockholders' Equity (Deficit)
Preferred stock, $0.001 par value, 20,000,000 shares authorized, 1,000,000 and 0 shares issued or issuable at June 30, 2017 and December 31, 2016, respectively	1,000
Common stock, $0.0001 par value, 100,000,000 shares authorized, 22,474,052 and 19,575,605 shares issued or issuable at June 30, 2017 and December 31, 2016, respectively.	2,247	1,958
Additional paid-in capital	2,459,174	1,594,721
Accumulated deficit	(2,466,096)	(1,587,330)
Total Stockholder's Equity (Deficit)	(3,675)	9,349
Total Liabilities and Stockholders' Equity (Deficit)	1,064,512	793,161
As Filed [Member]
Current Assets
Cash	58,448	$ 116,309
Accounts receivable, net	66,561
Prepaid Expenses	3,000
Inventories	10,650
Total Current Assets	138,659
Other Assets
Deposits	52,404
Furniture and equipment	873,449
Total Assets	1,064,512
Current Liabilities
Accounts payable	80,253
Accrued expenses	105,301
Accrued interest	39,350
Income taxes payable	7,300
Deferred revenue	155,524
Derivative liability	56,064
Notes payable, net of debt discount of $36,638 and $15,018 at June 30, 2017 and December 31, 2016, respectively	114,902
Notes payable - related party, current portion
Convertible notes payable, net of debt discount of $9,394 and $23,724 at June 30, 2017 and December 31, 2016, respectively	48,106
Royalty notes payable, net of debt discount of $48,608 and $87,036 at June 30, 2017 and December 31, 2016, respectively	1,376
Total Current Liabilities	608,176
Long term liabilities
Notes payable, net of debt discount of $51,583 and $32,292 at June 30, 2017 and December 31, 2016, respectively	168,377
Notes payable - related party
Royalty notes payable, net of debt discount of $398,348 and $574,294 at June 30, 2017 and December 31, 2016, respectively	118,652
Accrued royalties payable	122,982
Total Liabilities	1,018,187
Stockholders' Equity (Deficit)
Preferred stock, $0.001 par value, 20,000,000 shares authorized, 1,000,000 and 0 shares issued or issuable at June 30, 2017 and December 31, 2016, respectively	1,000
Common stock, $0.0001 par value, 100,000,000 shares authorized, 22,474,052 and 19,575,605 shares issued or issuable at June 30, 2017 and December 31, 2016, respectively.	2,247
Additional paid-in capital	2,459,174
Accumulated deficit	(2,416,096)
Total Stockholder's Equity (Deficit)	46,325
Total Liabilities and Stockholders' Equity (Deficit)	1,064,512
Restatement Adjustment [Member]
Current Assets
Cash
Total Current Assets
Other Assets
Total Assets	0
Current Liabilities
Deferred revenue	50,000
Total Current Liabilities	50,000
Long term liabilities
Total Liabilities	50,000
Stockholders' Equity (Deficit)
Accumulated deficit	(50,000)
Total Stockholder's Equity (Deficit)	(50,000)
Total Liabilities and Stockholders' Equity (Deficit)	$ 0

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Consolidated Balance Sheet (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Notes payable, debt discount current	$ 36,638	$ 15,018
Convertible notes payable, debt discount current	9,394	23,724
Royalty notes payable, debt discount current	48,608	87,036
Notes payable, debt discount noncurrent	51,583	32,292
Royalty notes payable, debt discount noncurrent	$ 398,348	$ 574,294
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	1,000,000	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	22,474,052	19,575,605

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Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Monitoring revenue	$ 204,738	$ 79,726	$ 280,058	$ 119,205
Distributorship revenue	109,719	5,950	201,453	5,950
Total revenue	314,457	85,676	481,511	125,155
Monitoring cost of revenue	46,085	11,163	54,067	17,718
Distributorship cost of revenue	2,500		6,739
Total cost of revenue	48,585	11,163	60,806	17,718
Gross profit	265,872	74,513	420,705	107,437
Operating expenses
Payroll	98,462	31,518	168,776	65,247
Professional fees	35,771	36,985	76,902	61,621
General and administrative expenses	(388,747)	125,402	327,345	191,959
Depreciation	88,726	6,675	144,142	16,930
Common stock issued for services		17,000		34,000
Total operating expenses	(165,788)	217,580	717,165	369,757
Loss from operations	431,660	(143,067)	(296,460)	(262,320)
Other income (expense)
Interest expense	(150,489)	(42,507)	(294,798)	(69,925)
Change in fair value of derivative liability	1,464	15,122	17,492	(19,612)
Loss on extinguishment of debt	(305,000)		(305,000)
Total other income (expense)	(454,025)	(27,385)	(582,306)	(89,537)
Loss before provision for income taxes	(22,365)	(170,452)	(878,766)	(351,857)
Provision for income taxes
Net loss	$ (22,365)	$ (170,452)	$ (878,766)	$ (351,857)
Basic and diluted loss per common share		$ (0.01)	$ (0.04)	$ (0.02)
Weighted average number of common shares outstanding - basic and diluted	22,260,585	15,407,687	21,525,449	15,407,687
As Filed [Member]
Monitoring revenue	$ 204,738		$ 280,058
Distributorship revenue	106,719		195,453
Total revenue	311,457		475,511
Monitoring cost of revenue	46,085		54,067
Distributorship cost of revenue	2,500		6,739
Total cost of revenue	48,585		60,806
Gross profit	262,872		414,705
Operating expenses
Payroll	98,462		168,776
Professional fees	35,771		76,902
General and administrative expenses	(388,747)		327,345
Depreciation	88,726		144,142
Common stock issued for services
Total operating expenses	(165,788)		717,165
Loss from operations	428,660		(302,460)
Other income (expense)
Interest expense	(150,489)		(294,798)
Change in fair value of derivative liability	1,464		17,492
Loss on extinguishment of debt	(305,000)		(305,000)
Total other income (expense)	(454,025)		(582,306)
Loss before provision for income taxes	(25,365)		(884,766)
Provision for income taxes
Net loss	$ (25,365)		$ (884,766)
Basic and diluted loss per common share			$ (0.04)
Weighted average number of common shares outstanding - basic and diluted	22,260,585		21,525,449
Restatement Adjustment [Member]
Distributorship revenue	$ 3,000		$ 6,000
Total revenue	3,000		6,000
Total cost of revenue
Gross profit	3,000		6,000
Operating expenses
Total operating expenses
Loss from operations	3,000		6,000
Other income (expense)
Total other income (expense)
Loss before provision for income taxes	3,000		6,000
Net loss	$ 3,000		$ 6,000

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Consolidated Statement of Shareholders' Equity (Deficit) (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Restatement Adjustment [Member]	Restated Accumulated Deficit [Member]	Total
Beginning Balance at Dec. 31, 2016		$ 1,958	$ 1,594,721	$ (1,531,330)	$ (56,000)	$ (1,587,330)	$ 9,349
Beginning Balance , shares at Dec. 31, 2016		19,575,605
Shares issued for services		$ 3	13,910				13,913
Shares issued for services, shares		27,180
Shares issued related to debt	$ 1,000	$ 19	434,700				435,719
Shares issued related to debt, shares	1,000,000	195,400
Shares issued for cash		$ 231	415,879				416,110
Shares issued for cash, shares		2,311,218
Shares issued related to anti-dilution		$ 36	(36)
Shares issued related to anti-dilution, shares		364,649
Net loss				(884,766)	6,000	(878,766)	(878,766)
Ending Balance at Jun. 30, 2017	$ 1,000	$ 2,247	$ 2,459,174	$ (2,416,096)	$ (50,000)	$ (2,466,096)	$ (3,675)
Ending Balance , shares at Jun. 30, 2017	1,000,000	22,474,052

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Consolidated Statement of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (878,766)	$ (351,857)
Adjustments to reconcile from net loss to net cash used in operating activities:
Depreciation and amortization	144,142	16,930
Shares issued for services	13,913	117,362
Loss on extinguishment of debt	305,000
Amortization of debt discount	186,477	52,963
Change in fair value of derivative liability	(17,492)	19,612
Changes in operating assets and liabilities
Accounts receivable	(15,320)	(29,484)
Prepaid expenses	(639)	2,087
Deposits	53,850	(14,600)
Accounts payable	52,003	23,456
Accrued expenses	37,944	(2,662)
Accrued interest	29,240	(240)
Income taxes payable	1,600
Deferred revenue	43,193	48,499
Accrued royalties payable	1,015
Net cash used in operating activities	(43,840)	(117,934)
Cash flows from investing activities:
Purchase of property and equipment	(661,245)	(138,932)
Deposits on units	150,000
Net cash used in investing activities	(511,245)	(138,932)
Cash flows from financing activities:
Proceeds from notes payable	195,400	209,099
Repayments of notes payable	(114,286)	(78,761)
Proceeds from issuance of common stock	416,110	157,500
Net cash provided by financing activities	497,224	287,838
Net increase (decrease) in cash	(57,861)	30,972
Cash, beginning of period	116,309	9,103
Cash, end of period	58,448	40,075
Cash paid during the period for:
Interest	79,371	15,351
Income taxes
Supplemental disclosure of non-cash investing and financing activities
Common stock issued for services	13,913	117,362
Establishment of debt discount for royalty notes		120,000
Preferred stock issued for debt reduction and services	350,000
As Filed [Member]
Cash flows from operating activities:
Net loss	(884,766)
Adjustments to reconcile from net loss to net cash used in operating activities:
Depreciation and amortization	144,142
Shares issued for services	13,913
Loss on extinguishment of debt	305,000
Amortization of debt discount	186,477
Change in fair value of derivative liability	(17,492)
Changes in operating assets and liabilities
Accounts receivable	(15,320)
Prepaid expenses	(639)
Deposits	53,850
Accounts payable	52,003
Accrued expenses	37,944
Accrued interest	29,240
Income taxes payable	1,600
Deferred revenue	49,193
Accrued royalties payable	1,015
Net cash used in operating activities	(43,840)
Cash flows from investing activities:
Purchase of property and equipment	(661,245)
Deposits on units	150,000
Net cash used in investing activities	(511,245)
Cash flows from financing activities:
Proceeds from notes payable	195,400
Repayments of notes payable	(114,286)
Proceeds from issuance of common stock	416,110
Net cash provided by financing activities	497,224
Net increase (decrease) in cash	(57,861)
Cash, beginning of period	116,309
Cash, end of period	58,448
Cash paid during the period for:
Interest	79,371
Income taxes
Supplemental disclosure of non-cash investing and financing activities
Common stock issued for services	13,913
Establishment of debt discount for royalty notes
Preferred stock issued for debt reduction and services	350,000
Restatement Adjustment [Member]
Cash flows from operating activities:
Net loss	6,000
Changes in operating assets and liabilities
Deferred revenue	(6,000)
Net cash used in operating activities
Cash flows from investing activities:
Net cash used in investing activities
Cash flows from financing activities:
Net cash provided by financing activities
Net increase (decrease) in cash
Cash, end of period

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Organization and Nature of Business

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Organization and Nature of Business

Note 1 - Organization and Nature of Business

Blow & Drive Interlock (“the Company”) was incorporated on July 2, 2013 under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company markets and rents alcohol ignition interlock devices to DUI/DWI offenders as part of their mandatory court or motor vehicle department programs. The Company has approval for its device in the following states: California, Colorado, Kansas, New York, Tennessee, Arizona, Oregon, Kentucky, Oklahoma, Pennsylvania, and Texas.

In 2015, The Company formed BDI Manufacturing, Inc., an Arizona corporation, which is a 100% wholly owned subsidiary of Blow & Drive Interlock Corporation.

The Company markets, installs and monitors a breath alcohol ignition interlock device (BAIID) called the BDI-747/1, which is a mechanism that is installed on the steering column of an automobile and into which a driver exhales. The device in turn provides a blood-alcohol concentration analysis. If the driver’s blood-alcohol content is higher than a certain pre-programmed limit, the device prevents the ignition from engaging and the automobile from starting. These devices are often required for use by DUI or DWI (“driving under the influence” or “driving while intoxicated”) offenders as part of a mandatory court or motor vehicle department program.

The Company licenses the rights to third party distributors to promote the BDI-747/1 and provide services related to the device. The distributorships are for specific geographical areas (either entire states or certain counties within states). The Company currently has entered into six distributorship agreements. Under the distribution agreements the Company typically receives a onetime fee, and then is entitled to receive a per unit registration fee and a per unit monthly fee for each BDI-747/1 unit the distributor has in inventory or on the road beginning thirty (30) days after the distributor receives the unit.

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company.

Going Concern

The Company’s unaudited condensed consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2017, the Company had an accumulated deficit of $2,466,096. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease or reduce its operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company will continue to raise funds through the sale of its equity securities or issuance of notes payable to obtain additional operating capital. The Company is dependent upon its ability, and will continue to attempt to secure additional equity and/or debt financing until the Company can earn revenue and realize positive cash flow from its operations. There are no assurances that the Company will be successful in earning revenue and realizing positive cash flow from its operations. Without sufficient financing it would be unlikely that the Company will continue as a going concern.

Based on the Company’s current rate of cash outflows, cash on hand and proceeds from the prior sale of equity securities and issuance of notes payable, management believes that its current cash will not be sufficient to meet the anticipated cash needs for working capital for the next 12 months. The Company’s plans with respect to its liquidity issues include, but are not limited to, the following:

1) Continue to issue restricted stock for compensation due to consultants and for its legacy accounts payable in lieu of cash payments; and

2) Seek additional capital to continue its operations as it rolls out its current products. The Company is currently evaluating additional debt or equity financing opportunities and may execute them when appropriate. However, there can be no assurances that the Company can consummate such a transaction, or consummate a transaction at favorable pricing.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and achieve profitable operations. These condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

Reclassifications

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 revenue and expenses during the reporting periods. Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenue when earned and related costs of sales and expenses when incurred. The Company recognizes revenue in accordance with FASB ASC Topic 605-10-S99, Revenue Recognition, Overall, SEC Materials (“Section 605-10-S74”). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of revenue consists of the cost of the purchased goods and labor related to the corresponding sales transaction. When a right of return exists, the Company defers revenues until the right of return expires. The Company recognizes revenue from services at the time the services are completed. Monthly per unit fee revenue is earned and recognized over the term of the contract as support services are provided. Revenues from territory exclusivity are earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price has been determined and collectability has been reasonably assured.

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of June 30, 2017 and December 31, 2016 is adequate, but actual write-offs could exceed the recorded allowance.

Inventories

Inventories are valued at the first-in first-out method and at June 30, 2017 and December 31, 2016 consists of spare parts for the BDI 747 monitoring units.

Convertible Debt and Warrants Issued with Convertible Debt

Convertible debt is accounted for under the guidelines established by ASC 470, Debt with Conversion and Other Options and ASC 740, Beneficial Conversion Features. The Company records a beneficial conversion feature (“BCF”) when convertible debt is issued with conversion features at fixed or adjustable rates that are below market value when issued. If, however, the conversion feature is dependent upon a condition being met or the occurrence of a specific event, the BCF will be recorded when the related contingency is met or occurs. The BCF for the convertible instrument is recorded as a reduction, or discount, to the carrying amount of the convertible instrument equal to the fair value of the conversion feature. The discount is then amortized to interest over the life of the underlying debt using the effective interest method.

The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718, Compensation – Stock Compensation, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense.

For modifications of convertible debt, the Company records a modification that changes the fair value of an embedded conversion feature, including a BCF, as a debt discount which is then amortized to interest expense over the remaining life of the debt. If modification is considered substantial (i.e. greater than 10% of the carrying value of the debt), an extinguishment of debt is deemed to have occurred, resulting in the recognition of an extinguishment gain or loss.

Fair Value of Financial Instruments

The Company utilizes ASC 820-10, Fair Value Measurement and Disclosure, for valuing financial assets and liabilities measured on a recurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10:

	Fair Value Measurments Using:
	Level 1		Level 2			Level 3
Balance December 31, 2016	$	-	$	73,556		$	-
Valuation of preferred shares issuance		-		-			350,000
Change in fair value of derivative liability		-		(17,492	)		-
Balance June 30, 2017 (unaudited)	$	-	$	56,064		$	350,000

Net Income (Loss) Per Share

Basic earnings per share is calculated by dividing income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common and dilutive common share equivalents outstanding during the period.

Stock Based Compensation

The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718 Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an employee stock purchase plan based on the estimated fair values.

For non-employee stock-based compensation, the Company applies FASB ASC Topic 505 Equity-Based Payments to Non-Employees, which requires stock-based compensation related to non-employees to be accounted for based on the fair value of the related stock or options or the fair value of the services on the grant date, whichever is more readily determinable.

Concentrations

All of the Company’s ignition interlock devices are purchased from one supplier in China. The loss of this supplier could have a material impact on the Company’s ability to timely obtain additional units.

The Company has multiple distributors as of June 30, 2017, and is actively engaging more in new markets. However, for the three and six months ended June 30, 2017, one distributor, licensed in four states, makes up approximately 90% percent of all revenues from distributors, and 67% of accounts receivable at June 30, 2017. The loss of this distributer would have a material impact on the Company’s revenues

Income Taxes

The Company accounts for its income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.

The Company also follows ASC 740-10-25, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements in accordance with ASC Topic 740, “Accounting for Income Taxes”. ASC 740-10-25 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Derivative Liabilities

The Company assessed the classification of its derivative financial instruments as of June 30, 2017, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815.

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as defined.

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”.

ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control or could require net cash settlement, then the contract shall be classified as an asset or a liability.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued a new accounting standard on leasing. The new standard will require companies to record most leased assets and liabilities on the balance sheet, and also proposes a dual model for recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on consolidated financial statements.

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Segment Reporting

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Reporting

Note 3 – Segment Reporting

The Company has two reportable segments: (1) Monitoring and (2) Distributorships.

Monitoring fees on Company installed units

The Company rents units directly to customers and installs the units in the customer’s vehicles. The rental periods range from a few months to 2 years and include a combination of down payments made by the customer and monthly payments paid under the agreements with the Company. Revenue is recognized from these companies on the straight line basis over the term of the agreement. Amounts collected in excess of those earned are classified as deferred revenue in the balance sheet, and amounts earned in excess of amounts collected are reflected in accounts receivable in the balance sheet at June 30, 2017 and December 31, 2016.

Distributorships

The Company enters into arrangements that include multiple deliverables, which typically consist of the sale of exclusive distributorship territory rights, startup supplies package, promotional material, three weeks of onsite training and ongoing monthly support services. The Company accounts for each material element within an arrangement with multiple deliverables as separate units of accounting. Revenue is allocated to each unit of accounting under the guidance of ASC Topic 605-25, Multiple-Element Revenue Arrangements, which provides criteria for separating consideration in multiple-deliverable arrangements by establishing a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable is based on vendor-specific objective evidence (“VSOE”) if available, third-party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third-party evidence is available. The Company is required to determine the best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis. The Company generally does not separately sell distributorships or training on a standalone basis. Therefore, the Company does not have VSOE for the selling price of these units nor is third party evidence available and thus management uses its best estimate of selling prices in their allocation of revenue to each deliverable in the multiple element arrangement.

The following table summarizes net sales and identifiable operating income by segment:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Segment gross profit (a):
Monitoring	$	158,653		$	68,563		$	225,991		$	101,487
Distributorships		107,219			5,950			194,714			5,950
Gross Profit		265,872			74,513			420,705			107,437
Identifiable segment operating expenses (b):
Monitoring		51,580			6,356			57,412			15,557
Distributorships		37,560			-			86,090			-
		89,140			6,356			143,502			15,557
Identifiable segment operating income (c):
Monitoring		107,073			62,207			168,579			85,930
Distributorships		69,659			5,950			108,624			5,950
		176,732			68,157			277,203			91,880
Reconcilliation of identifiable segment income to corporate income (d):
Payroll		98,462			31,518			168,776			65,247
Professional fees		35,771			36,985			76,902			61,621
General and administrative expenses		(388,747	)		125,402			327,345			191,959
Depreciation		(414	)		319			640			1,373
Interest expense		150,489			42,507			294,798			69,925
Change in fair value of derivative liability		(1,464	)		(15,122	)		(17,492	)		19,612
Loss on extinguishment of debt		305,000			-			305,000			-
Common stock issued for services		-			17,000			-			34,000
Income (loss) before provision for income taxes		(22,365	)		(170,452	)		(878,766	)		(351,857	)
Provision for income taxes		-			-			-			-
Net Income (loss)	$	(22,365	)	$	(170,452	)	$	(878,766	)	$	(351,857	)
Total net property, plant, and equipment assets
Monitoring								348,792			164,445
Distributorships								523,018			-
Corporate								1,639			2,919
								873,449			167,364

(a) Segment gross profit includes segment net sales less segment cost of sales

(b) Identifiable segment operating expenses consists of identifiable depreciation expense

(c) Identifiable segment operating income consists of segment gross profit, less identifiable operating expense

(d) General corporate expense consists of all other non-identifiable expenses

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Furniture and Equipment

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Furniture and Equipment

Note 4 – Furniture and Equipment

Furniture and equipment consist of the following:

	June 30, 2017			December 31, 2016
Monitoring Units	$	1,081,143		$	419,898
Furniture, Fixtures, and Equipment		4,798			4,798
Total Assets		1,085,941			424,696
Less: accumulated depreciation		(212,492	)		(68,350	)
Furniture and Equipment, net		873,449			356,346

Depreciation expense for the three and six months ended June 30, 2017 and 2016 were $88,725 and $144,142, and $6,676 and $16,930, respectively.

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Deposits

6 Months Ended

Jun. 30, 2017

Banking and Thrift [Abstract]

Deposits

Note 5 – Deposits

Deposits consist of the following:

	June 30, 2017		December 31, 2016
Deposit for BDI-747 units	$	50,000	$	250,000
Other		2,404		6,254
Total	$	52,404	$	256,254

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Accrued Expenses

6 Months Ended

Jun. 30, 2017

Payables and Accruals [Abstract]

Accrued Expenses

Note 6 – Accrued Expenses

Accrued Expense consist of the following:

	June 30, 2017		December 31, 2016
Accrued expenses	$	5,233	$	3,503
Accrued wages		32,371		32,700
Accrued payroll taxes		67,697		32,592
Total	$	105,301	$	68,795

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Deferred Revenue

6 Months Ended

Jun. 30, 2017

Deferred Revenue Disclosure [Abstract]

Deferred Revenue

Note 7 - Deferred revenue

The Company classifies income as deferred until the terms of the contract or time frame have been met within the Company’s revenue recognition policy. As of June 30, 2017 and December 31, 2016 deferred revenue consist of the following:

	June 30, 2017		December 31, 2016
Monitoring deferred revenues	$	150,524	$	103,831
Distributorship deferred revenues		55,000		58,500
Total	$	205,524	$	162,331

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Notes Payable

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Notes Payable

Note 8 – Notes Payable

Notes payable consist of the following:

	June 30, 2017					December 31, 2016
	Principal			Accrued Interest		Principal			Accrued Interest
Convertible notes
Convertible note #1		7,500			117		7,500			31
Debt Discount		(444	)		-		(3,104	)		-
Convertible note #2		50,000			2,033		50,000			1,617
Debt Discount		(8,950	)		-		(20,620	)		-
Subtotal convertible notes net		48,106			2,150		33,776			1,648
Promissory notes
Promissory note #1		-			-		990			-
Promissory note #2		-			-		13,278			-
Debt Discount		-			-		(3,510	)		-
Promissory note #3		50,000			750		50,000			-
Debt Discount		(19,792	)		-		(32,292	)		-
Promissory note #4		10,000			1,600		10,000			400
Debt Discount		(2,692	)		-		(7,308	)		-
Promissory note #5		36,100			1,504		36,100			3,581
Promissory note #6		5,040			-		5,040			106
Debt Discount		(1,680	)		-		(4,200	)		-
Promissory note #7		24,960			2,629		24,960			-
Promissory note #8		50,000			2,083		50,000			-
Promissory note #9		50,400			1,050		-			-
Debt Discount		(12,474	)		-		-			-
Promissory note #10		70,000			2,917		-			-
Debt Discount		(24,500	)		-		-			-
Promissory note #11		75,000			3,125		-			-
Debt Discount		(27,083	)		-		-			-
Subtotal promissory notes		283,279			15,658		143,058			4,087
Royalty notes
Royalty note #1		25,731			-		46,876			-
Debt Discount		(25,209	)		-		(45,903	)		-
Royalty note #2		24,253			-		48,938			-
Debt Discount		(23,399	)		-		(41,133	)		-
Royalty note #3		192,000			8,000		192,000			-
Debt Discount		(144,000	)		-		(176,000	)		-
Royalty note #4		325,000			13,542		325,000			4,375
Debt Discount		(254,348	)		-		(311,258	)		-
Subtotal royalty notes		120,028			21,542		38,520			4,375
Related party promissory note
Related party promissory note		-			-		97,749			-
Total		451,413			39,350		313,103			10,110
Current portion		164,387			39,350		238,264			10,110
Long-term portion	$	287,029		$	-	$	74,839		$	-

Convertible note #1:

On August 7, 2015, the Company entered into an agreement with a third party non-affiliate and issued a 7.5% interest bearing convertible debenture for $15,000 due on August 7, 2017, with conversion features commencing after 180 days following the date of the note. Payments of interest only were due monthly beginning September 2015. The loan is convertible at 70% of the average of the closing prices for the common stock during the five trading days prior to the conversion date. In connection with this Convertible note payable, the Company recorded a $5,770 discount on debt, related to the beneficial conversion feature of the note to be amortized over the life of the note or until the note is converted or repaid. This note was bifurcated with the embedded conversion option recorded as a derivative liability at fair value (See Note 8). On May 6, 2016 the note holder elected to convert $7,500 in principal into 30,000 shares of common stock.

In connection with the issuance of the August Convertible Note Payable, the Company issued a warrant on August 7, 2015 to purchase 30,000 shares of the Company’s common stock at a purchase price of $0.50 per share. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrants issued in connection with the convertible note payable using the following inputs: Expected Term – 3 years, Expected Dividend Rate – 0%, Volatility – 100%, Risk Free Interest Rate -1.08%. The Company recorded an additional $4,873 discount on debt, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

Convertible note #2

On November 24, 2015, the Company entered into an agreement with an existing non-affiliated shareholder, and issued a 10% interest bearing convertible debenture for $50,000 due on November 19, 2017. Payments of interest only are due monthly beginning December 2015. The loan is convertible at 70% of the average of the closing prices for the common stock during the five trading days prior to the conversion date, but may not be converted if such conversion would cause the holder to own more than 9.9% of outstanding common stock after giving effect to the conversion (which limitation may be removed by the holder upon 61 days advanced notice to the company). In connection with this Convertible Note Payable, the Company recorded a $32,897 discount on debt, related to the beneficial conversion feature of the note to be amortized over the life of the note or until the note is converted or repaid. This note was bifurcated with the embedded conversion option recorded as a derivative liability at fair value. As of December 30, 2016 this note has not been converted.

In connection with the issuance of the November convertible note payable, the Company issued a warrant to purchase 80,000 shares of common stock at an exercise price of $0.80 per share. The warrant has an exercise period of two years from the date of issuance. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrants issued in connection with the convertible note payable using the following inputs: Expected Term – 2 years, Expected Dividend Rate – 0%, Volatility – 100%, Risk Free Interest Rate -.61%. The Company recorded an additional $13,783 discount on debt, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

Promissory note #1:

On December 18, 2015, the Company entered into a borrowing facility with a third party. The initial note value was for a principal balance of $10,200. The Company is allowed to draw limited additional funds at any time. During 2016 the Company drew an additional $13,100 in connection with this borrowing facility. The interest due is dependent on a cost schedule that is tied to the date of repayment of the principle. This borrowing facility was paid back in January 2017.

Promissory note #2:

On January 29, 2016, the Company entered into a note payable agreement with a third party. The note was for a principal balance of $44,850 in exchange for $29,505 in cash. The initial borrowing was paid back in August 2016. Subsequent to this initial repayment, the Company borrowed an additional $28,600 in September of 2016. The subsequent borrowing was paid back in April 2017.

Promissory note #3:

On March 30, 2016, the Company provided an agreement to a third party to obtain a $50,000 promissory note in exchange for 50,000 restricted common shares and $50,000 in cash. The promissory note has a maturity date of June 30, 2018, and bears interest at 18% per annum. The purchaser did not sign the agreement nor deliver the proper consideration prior to March 31, 2016. The exchange of the $50,000 in cash consideration by the purchaser and the issuance of the 50,000 restricted common shares by the Company was made in conjunction with delivery of the signed purchase agreement and promissory note on April 5, 2016. The Company recorded a debt discount of $50,000 related to the relative fair value of the issued shares associated with the note to be amortized over the life of the note.

Promissory note #4:

On September 23, 2016, the Company provided an agreement to a third party to obtain a $10,000 promissory note in exchange for 100,000 restricted common shares and $10,000 in cash. The promissory note has a maturity date of October 31, 2017 and bears interest at 24% per annum. The Company recorded a debt discount of $10,000 related to the relative fair value of the issued shares associated with the note to be amortized over the life of the note.

Promissory note #5:

On September 30, 2016, the Company provided an agreement to a third party to obtain a $36,100 promissory note in exchange for $36,100 in cash. The promissory note has a maturity date of October 1, 2017 and bears interest at 25% per annum. The note requires interest only payments of $752 per month and a balloon payment of $36,100 for principle upon maturity.

Promissory note #6:

On November 1, 2016, the Company provided an agreement to a third party to obtain a $5,040 promissory note in exchange for $5,040 in cash. The promissory note has a maturity date of November 1, 2017 and bears interest at 25% per annum. The note requires interest only payments of $105 per month. In connection with the issuance of the note payable, the Company issued a warrant to purchase 50,000 shares of common stock at an exercise price of $0.10 per share. The warrant has an exercise period of four years from the date of issuance. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrant using the following inputs: Expected Term – 4 years, Expected Dividend Rate – 0%, Volatility – 329%, Risk Free Interest Rate -1.56%. The Company recorded a discount of $5,040, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

Promissory note #7:

On November 1, 2016, the Company provided an agreement to a third party to obtain a $24,960 promissory note in exchange for $24,960 in cash. The promissory note has a maturity date of November 1, 2017 and bears interest at 25% per annum. The note requires total payments of $520 per month and a balloon payment of $24,960 for principle upon maturity.

Promissory note #8:

On November 1, 2016, the Company provided an agreement to a third party to obtain a $50,000 promissory note in exchange for $50,000 in cash. The promissory note has a maturity date of November 1, 2019 and bears interest at 25% per annum. The note requires total payments of $1,042 per month and a balloon payment of $50,000 for principle upon maturity.

Promissory note #9:

On January 15, 2017, the Company provided an agreement to a third party to obtain a $50,400 promissory note in exchange for $50,400 in cash. The promissory note has a maturity date of January 15, 2018 and bears interest at 25% per annum. The note requires total payments of $1,042 per month and a balloon payment of $50,000 for principle upon maturity. The Company recorded a debt discount of $27,720 related to the value of the issued shares associated with the process of obtaining the note to be amortized over the life of the note.

Promissory note #10:

On February 27, 2017, the Company provided an agreement to a third party to obtain a $70,000 promissory note in exchange for $70,000 in cash. The promissory note has a maturity date of February 27, 2020 and bears interest at 25% per annum. The note requires total payments of $1,458 per month and a balloon payment of $70,000 for principle upon maturity. The Company recorded a debt discount of $28,000 related to the value of the issued shares associated with the process of obtaining the note to be amortized over the life of the note.

Promissory note #11:

On March 16, 2017, the Company provided an agreement to a third party to obtain a $75,000 promissory note in exchange for $75,000 in cash. The promissory note has a maturity date of March 16, 2020 and bears interest at 25% per annum. The note requires total payments of $1,563 per month and a balloon payment of $75,000 for principle upon maturity. The Company recorded a debt discount of $30,000 related to the value of the issued shares associated with the process of obtaining the note to be amortized over the life of the note.

Royalty note #1:

On January 20, 2016, the company entered into a non-interest bearing note payable and royalty agreement with a third party. Under the note, the Company borrowed $65,000 and began to repay the principal amount at a rate of approximately $937 per month with escalations to approximately $3,531 per month as of February 2017 until the note is paid in full. In addition, starting in February 2018, the Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity. In connection with this note, the Company recorded a debt discount of $65,000 relating to the future royalty payments, to be amortized over the life of the note.

On September 30, 2016, the Company entered into Amendment No. 1 to Royalty note #1 in order to remove a security interest in the Company’s assets to secure repayment of the original note and amend the royalty provisions of the original note to be $1 for each Device on the road beginning in the 25^th month after the date of the original note. In connection with this amendment, the Company issued 425,000 shares of restricted common stock. Pursuant to ASC 470 this amendment is a deemed extinguishment of the debt and the resulting revised debt is set up as a new note. In connection therewith, the Company recorded a loss on extinguishment of $116,541 during the year ended December 31, 2016.

Royalty note #2:

On March 29, 2016, the company consummated a non-interest bearing note payable and royalty agreement with a relative of the CEO with terms almost identical to the note referenced above. Under the note, the Company borrowed $55,000 and began to repay the principal amount at a rate of approximately $937 per month with escalations to approximately $3,531 per month as of April 2017 until the note is paid in full. In addition, starting in February 2018, the Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity. In connection with this note, the Company recorded a debt discount of $55,000 relating to the future royalty payments, to be amortized over the life of the note.

On September 30, 2016, the Company entered into Amendment No. 1 to Royalty note #2 to amend the royalty provisions of the original note to be $1 for each Device on the road beginning in the 25^th month after the date of the Royalty note #2. In connection with this amendment, the Company issued 50,000 shares of restricted common stock and recorded an additional debt discount of $8,959. This amendment was accounted for as a debt modification pursuant to ASC 470.

Royalty note #3:

On September 30, 2016, the Company entered into a Loan and Security Agreement (the “LSA”) with Doheny Group, LLC, a Delaware limited liability company (“Doheny”), under which Doheny agreed to loan up to $542,400 in two phases, to be used to acquire additional parts and supplies to manufacture the Company’s proprietary breath alcohol ignition interlock devices. Under the terms of the LSA, the first phase will be a loan of up to $192,000 to acquire parts and supplies to manufacture 600 Devices; and the second phase will be a loan of up to $350,400 to acquire parts and supplies to manufacture 1,000 Devices.

The Phase 1 Loan was funded in the amount of $192,000 by Doheny on September 30, 2016, upon which the Company forwarded the funds to its supplier on or about October 5, 2016, in order to acquire parts and supplies to manufacture 600 Devices. Both the Phase 1 Loan and the Phase 2 Loan mature three years from the date of funding, and are at an interest rate of 25% per annum. The note requires interest only payments of $4,000 per month. The Company can prepay the Phase 1 Loan and the Phase 2 Loan (if applicable) at any time without penalty. In exchange for Doheny funding the Phase 1 Loan, the Company issued Doheny a promissory note for $192,000 and also issued Doheny shares of common stock equal to 4.99% of the then-outstanding common stock, pursuant to the terms of a stock purchase agreement. As a result, on or about October 7, 2016, the Company issued Doheny 845,913 shares of common stock. In addition, upon funding of any portion of the Phase 2 loan (Royalty Note #4 below) then the Company is obligated to issue Doheny that number of additional shares of common stock that equals 5% of the then-outstanding common stock. Until the Company repays the Phase 1 Loan and the Phase 2 Loan, as applicable, Doheny has anti-dilution rights for the percentage of stock Doheny owns in the event the Company issues additional shares of common stock during that period. The Company also entered into a Royalty Agreement with Doheny, under which Doheny was granted perpetual royalty rights on all Devices when the Company has 500 or more Devices in service whether leased to end users or distributors. The royalty amounts vary between $1 and $2 per Device depending on a variety of factors. The Company recorded a debt discount of $192,000 related to the relative fair value of the issued shares associated with the Phase 1 note to be amortized over the life of the note.

Royalty note #4:

On November 4, 2016, the Company agreed to fund an initial portion of the Phase 2 loan as described in “Royalty note #3” above. In connection with this funding the common stock ownership percentage of Doheny Group was increased to 9.95%. As also described in “Royalty note #3” above Doheny has anti-dilution privileges to maintain 9.95% of common stock ownership at no additional cost until both Royalty note #3 and Royalty note #4 are paid in full. As of June 30, 2017 the Company has drawn $325,000 out of the maximum allowance of $350,400 in connection with Royalty note #4.

Related party promissory note

On February 16, 2014, the Company entered into a note payable agreement with Laurence Wainer, the director, President and sole officer of the Company. The note was for a principal balance of $160,000 and bears interest at 7.75% per annum. Principal and interest payments are due in 60 equal monthly installments beginning in March 2014 of $3,205. The Company and Laurence Wainer entered into an additional agreement effective April 2014 suspending loan repayments until January 2015. As of January 2015, the payments have resumed. On March 31, 2017 the Company entered into an agreement with Mr. Wainer to issue to him 1,000,000 Series A Preferred Shares in exchange $25,537 in accrued salary. On May 19^, 2017, the Company amended the March 31, 2017 agreement to forgive $45,000 in debt owed by Company to Mr. Wainer instead of the forgiveness of $25,537 in accrued salary. The Company paid back the remaining amounts due under this note in June 2017.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 9 – Derivative Financial Instruments

The Company applies the provisions of ASC Topic 815-40, Contracts in Entity’s Own Equity (“ASC Topic 815-40”), under which convertible instruments, which contain terms that protect holders from declines in the stock price, may not be exempt from derivative accounting treatment. As a result, embedded conversion options (whose exercise price is not fixed and determinable) in convertible debt (which is not conventionally convertible due to the exercise price not being fixed and determinable) are initially recorded as a liability and are revalued at fair value at each reporting date using the Black Sholes Model.

The Company has a $7,500 and a $50,000 convertible note with variable conversion pricing outstanding at June 30, 2017. The following inputs were used in within the Black Sholes Model to determine the initial relative fair value: Expected Term – .85 and 1.11 years, Expected Dividend Rate – 0%, Volatility – 312%, Risk Free Interest Rate - 0.55%.

The Company revalues these derivatives each quarter using the Black Sholes Model. The change in valuation is accounted for as a gain or loss in derivative liability. The following table describes the Derivative liability as of June 30, 2017 and December 31, 2016.

Balance December 31, 2016	$	73,556
Change in fair market value of derivative		17,492
Balance June 30, 2017 (unaudited)	$	56,064

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Accrued Royalties Payable

6 Months Ended

Jun. 30, 2017

Accrued Royalties Payable

Accrued Royalties Payable

Note 10 – Accrued Royalties Payable

In connection with the Royalty Notes number 1-4 as discussed in Note 8 above the Company has estimated the royalties to be paid out in perpetuity. These estimates were performed at the inception for the notes to reflect the associated debt discount. Payments on such royalty notes became due in October 2016 upon the Company hitting certain sales milestones as set forth in the royalty agreements.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Stockholders' Equity

Note 11 – Stockholders’ Equity

Preferred Stock

The Company’s articles of incorporation authorize the Company to issue up to 20,000,000 preferred shares of $0.001 par value.

Series A Preferred Stock

The Company has been authorized to issue 1,000,000 shares of Series A Preferred Stock. The Series A shares have the following preferences: no dividend rights; no liquidation preference over the Company’s common stock; no conversion rights; no redemption rights; no call rights by the Company; each share of Series A Preferred stock will have one hundred (100) votes on all matters validly brought to the Company’s common stockholders.

During the three months ended March 31, 2017, the Company entered into a material definitive agreement to issue 1,000,000 shares of series A preferred stock to an officer and director of the Company with a preliminary estimated value of $350,000. As of June 30, 2017 the total number of preferred shares issued or issuable was 1,000,000.

Common Stock

The Company has authorized 100,000,000 shares of $.0001. Holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company’s ability to pay dividends on its common stock, subject to the requirements of the Delaware Revised Statutes. The Company has not declared any dividends since incorporation.

During the six months ended June 30, 2017, the Company issued 27,180 shares of $0.001 par value common stock for services with a value of $13,910. The Company also issued 195,400 shares, valued at $85,720, to a related party in connection with obtaining debt financing. Additionally, the Company issued and sold 2,311,218 shares of its common stock to several investors for an aggregate purchase price of $360,879. In addition the Company issued 364,649 common shares in accordance with the anti-dilution provisions of Royalty notes #3 and #4 (see Note 8). The total number of shares issued or issuable as of June 30, 2017 was 22,474,052.

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Warrants

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Warrants

Note 12 – Warrants

The Company also sold warrants to purchase 750,000 common shares for an aggregate purchase price of $55,000.

The following table reflects warrant activity:

			Weighted Average
	Warrants for		Weighted Average		Remaining		Aggregate
	Common Shares		Exercise Price		Contractual Term		Intrinsic Value
Outstanding and exercisable as of December 31, 2014		-	$	-	$	-	$	-
Granted		110,000		0.72		2.27		-
Exercised		-		-		-		-
Forfeited, cancelled, expired		-		-		-		-
Outstanding as of December 31, 2015		110,000	$	0.72	$	2.10		-
Granted		50,000		0.10		4.00
Exercised		-		-		-		-
Forfeited, cancelled, expired		-		-		-		-
Outstanding as of December 31, 2016		160,000	$	0.53	$	1.97		5,250
Granted		1,944,426		0.21		4.00		195,700
Exercised		-		-		-
Forfeited, cancelled, expired		-		-		-
Outstanding as of June 30, 2017		2,104,426	$	0.23	$	3.15		200,950

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Income (Loss) Per Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Income (Loss) Per Share

Note 13 – Income (Loss) Per Share

Net income (loss) per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic net income (loss) per common share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average shares outstanding, assuming all dilutive potential common shares were issued, unless doing so is anti-dilutive.

The following shares are not included in the computation of diluted income (loss) per share, because their inclusion would be anti-dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Preferred shares		-		-		-
Convertible notes		409,159		19,038		409,159		19,751
Warrants		2,104,426		110,000		2,104,426		110,000
Options		-		-		-		-
Total anti-dilutive weighted average shares		2,513,585		129,038		2,513,585		129,751

If all dilutive securities had been exercised at June 30, 2017 the total number of common shares outstanding would be as follows:

	June 30, 2017
Common Shares		22,474,052
Preferred Shares		-
Convertible notes		409,159
Warrants		2,104,426
Options		-
Total potential shares		24,987,637

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 14 – Commitments and Contingencies

On December 1, 2016, the Company entered into a four-year lease with Cahuenga Management LLC for a storefront location at 15503 Cahuenga Blvd., North Hollywood, California 91601. Base rent under the lease is $2,200 per month, with an escalating provision up to $2,404 throughout the lease term. The rental agreement includes operating expenses such as common area maintenance, property taxes and insurance.

Legal Proceedings

In the ordinary course of business, the Company from time to time is involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon the Company’s financial condition and/or results of operations. However, in the opinion of management, other than as set forth herein, matters currently pending or threatened against the Company are not expected to have a material adverse effect on the Company’s financial position or results of operations.

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Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

Note 15 – Subsequent Events

The Company follows the guidance in FASB ASC Topic 855, Subsequent Events (“ASC 855”), which provides guidance to establish general standards of accounting for and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are available to be issued. ASC 855 sets forth (i) the period after the balance sheet date during which management of a reporting entity evaluates events or transactions that may occur for potential recognition or disclosure in the consolidated financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its consolidated financial statements, and (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date.

Subsequent to June 30, 2017, and through the date of this filing, the Company has issued a total of 296,576 common shares for an aggregate cash purchase price of $51,500.21. In connection with these sales of common shares the Company has also issued warrants for 547,338 common shares.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company.

Going Concern

Going Concern

The Company’s unaudited condensed consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2017, the Company had an accumulated deficit of $2,466,096. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease or reduce its operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company will continue to raise funds through the sale of its equity securities or issuance of notes payable to obtain additional operating capital. The Company is dependent upon its ability, and will continue to attempt to secure additional equity and/or debt financing until the Company can earn revenue and realize positive cash flow from its operations. There are no assurances that the Company will be successful in earning revenue and realizing positive cash flow from its operations. Without sufficient financing it would be unlikely that the Company will continue as a going concern.

Based on the Company’s current rate of cash outflows, cash on hand and proceeds from the prior sale of equity securities and issuance of notes payable, management believes that its current cash will not be sufficient to meet the anticipated cash needs for working capital for the next 12 months. The Company’s plans with respect to its liquidity issues include, but are not limited to, the following:

1) Continue to issue restricted stock for compensation due to consultants and for its legacy accounts payable in lieu of cash payments; and

2) Seek additional capital to continue its operations as it rolls out its current products. The Company is currently evaluating additional debt or equity financing opportunities and may execute them when appropriate. However, there can be no assurances that the Company can consummate such a transaction, or consummate a transaction at favorable pricing.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and achieve profitable operations. These condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

Reclassifications

Reclassifications

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 revenue and expenses during the reporting periods. Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue when earned and related costs of sales and expenses when incurred. The Company recognizes revenue in accordance with FASB ASC Topic 605-10-S99, Revenue Recognition, Overall, SEC Materials (“Section 605-10-S74”). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of revenue consists of the cost of the purchased goods and labor related to the corresponding sales transaction. When a right of return exists, the Company defers revenues until the right of return expires. The Company recognizes revenue from services at the time the services are completed. Monthly per unit fee revenue is earned and recognized over the term of the contract as support services are provided. Revenues from territory exclusivity are earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price has been determined and collectability has been reasonably assured.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of June 30, 2017 and December 31, 2016 is adequate, but actual write-offs could exceed the recorded allowance.

Inventories

Inventories

Inventories are valued at the first-in first-out method and at June 30, 2017 and December 31, 2016 consists of spare parts for the BDI 747 monitoring units.

Convertible Debt and Warrants Issued with Convertible Debt

Convertible Debt and Warrants Issued with Convertible Debt

Convertible debt is accounted for under the guidelines established by ASC 470, Debt with Conversion and Other Options and ASC 740, Beneficial Conversion Features. The Company records a beneficial conversion feature (“BCF”) when convertible debt is issued with conversion features at fixed or adjustable rates that are below market value when issued. If, however, the conversion feature is dependent upon a condition being met or the occurrence of a specific event, the BCF will be recorded when the related contingency is met or occurs. The BCF for the convertible instrument is recorded as a reduction, or discount, to the carrying amount of the convertible instrument equal to the fair value of the conversion feature. The discount is then amortized to interest over the life of the underlying debt using the effective interest method.

The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718, Compensation – Stock Compensation, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense.

For modifications of convertible debt, the Company records a modification that changes the fair value of an embedded conversion feature, including a BCF, as a debt discount which is then amortized to interest expense over the remaining life of the debt. If modification is considered substantial (i.e. greater than 10% of the carrying value of the debt), an extinguishment of debt is deemed to have occurred, resulting in the recognition of an extinguishment gain or loss.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company utilizes ASC 820-10, Fair Value Measurement and Disclosure, for valuing financial assets and liabilities measured on a recurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10:

	Fair Value Measurments Using:
	Level 1		Level 2			Level 3
Balance December 31, 2016	$	-	$	73,556		$	-
Valuation of preferred shares issuance		-		-			350,000
Change in fair value of derivative liability		-		(17,492	)		-
Balance June 30, 2017 (unaudited)	$	-	$	56,064		$	350,000

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Basic earnings per share is calculated by dividing income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common and dilutive common share equivalents outstanding during the period.

Stock Based Compensation

Stock Based Compensation

The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718 Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an employee stock purchase plan based on the estimated fair values.

For non-employee stock-based compensation, the Company applies FASB ASC Topic 505 Equity-Based Payments to Non-Employees, which requires stock-based compensation related to non-employees to be accounted for based on the fair value of the related stock or options or the fair value of the services on the grant date, whichever is more readily determinable.

Concentrations

Concentrations

All of the Company’s ignition interlock devices are purchased from one supplier in China. The loss of this supplier could have a material impact on the Company’s ability to timely obtain additional units.

The Company has multiple distributors as of June 30, 2017, and is actively engaging more in new markets. However, for the three and six months ended June 30, 2017, one distributor, licensed in four states, makes up approximately 90% percent of all revenues from distributors, and 67% of accounts receivable at June 30, 2017. The loss of this distributer would have a material impact on the Company’s revenues

Income Taxes

Income Taxes

The Company accounts for its income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.

The Company also follows ASC 740-10-25, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements in accordance with ASC Topic 740, “Accounting for Income Taxes”. ASC 740-10-25 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Derivative Liabilities

Derivative Liabilities

The Company assessed the classification of its derivative financial instruments as of June 30, 2017, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815.

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as defined.

Convertible Instruments

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”.

ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control or could require net cash settlement, then the contract shall be classified as an asset or a liability.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued a new accounting standard on leasing. The new standard will require companies to record most leased assets and liabilities on the balance sheet, and also proposes a dual model for recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on consolidated financial statements.

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Basis of Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Schedule of Financial Instruments Measured at Fair Value On Recurring Basis

The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10:

	Fair Value Measurments Using:
	Level 1		Level 2			Level 3
Balance December 31, 2016	$	-	$	73,556		$	-
Valuation of preferred shares issuance		-		-			350,000
Change in fair value of derivative liability		-		(17,492	)		-
Balance June 30, 2017 (unaudited)	$	-	$	56,064		$	350,000

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Schedule of Net Sales and Identifiable Operating Income by Segment

The following table summarizes net sales and identifiable operating income by segment:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Segment gross profit (a):
Monitoring	$	158,653		$	68,563		$	225,991		$	101,487
Distributorships		107,219			5,950			194,714			5,950
Gross Profit		265,872			74,513			420,705			107,437
Identifiable segment operating expenses (b):
Monitoring		51,580			6,356			57,412			15,557
Distributorships		37,560			-			86,090			-
		89,140			6,356			143,502			15,557
Identifiable segment operating income (c):
Monitoring		107,073			62,207			168,579			85,930
Distributorships		69,659			5,950			108,624			5,950
		176,732			68,157			277,203			91,880
Reconcilliation of identifiable segment income to corporate income (d):
Payroll		98,462			31,518			168,776			65,247
Professional fees		35,771			36,985			76,902			61,621
General and administrative expenses		(388,747	)		125,402			327,345			191,959
Depreciation		(414	)		319			640			1,373
Interest expense		150,489			42,507			294,798			69,925
Change in fair value of derivative liability		(1,464	)		(15,122	)		(17,492	)		19,612
Loss on extinguishment of debt		305,000			-			305,000			-
Common stock issued for services		-			17,000			-			34,000
Income (loss) before provision for income taxes		(22,365	)		(170,452	)		(878,766	)		(351,857	)
Provision for income taxes		-			-			-			-
Net Income (loss)	$	(22,365	)	$	(170,452	)	$	(878,766	)	$	(351,857	)
Total net property, plant, and equipment assets
Monitoring								348,792			164,445
Distributorships								523,018			-
Corporate								1,639			2,919
								873,449			167,364

(a) Segment gross profit includes segment net sales less segment cost of sales

(b) Identifiable segment operating expenses consists of identifiable depreciation expense

(c) Identifiable segment operating income consists of segment gross profit, less identifiable operating expense

(d) General corporate expense consists of all other non-identifiable expenses

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Furniture and Equipment (Tables)

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Schedule of Furniture and Equipment

Furniture and equipment consist of the following:

	June 30, 2017			December 31, 2016
Monitoring Units	$	1,081,143		$	419,898
Furniture, Fixtures, and Equipment		4,798			4,798
Total Assets		1,085,941			424,696
Less: accumulated depreciation		(212,492	)		(68,350	)
Furniture and Equipment, net		873,449			356,346

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Deposits (Tables)

6 Months Ended

Jun. 30, 2017

Banking and Thrift [Abstract]

Schedule of Deposits

Deposits consist of the following:

	June 30, 2017		December 31, 2016
Deposit for BDI-747 units	$	50,000	$	250,000
Other		2,404		6,254
Total	$	52,404	$	256,254

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Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2017

Payables and Accruals [Abstract]

Schedule of Accrued Expense

Accrued Expense consist of the following:

	June 30, 2017		December 31, 2016
Accrued expenses	$	5,233	$	3,503
Accrued wages		32,371		32,700
Accrued payroll taxes		67,697		32,592
Total	$	105,301	$	68,795

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Deferred Revenue (Tables)

6 Months Ended

Jun. 30, 2017

Deferred Revenue Disclosure [Abstract]

Schedule of Deferred Revenue

As of June 30, 2017 and December 31, 2016 deferred revenue consist of the following:

	June 30, 2017		December 31, 2016
Monitoring deferred revenues	$	150,524	$	103,831
Distributorship deferred revenues		55,000		58,500
Total	$	205,524	$	162,331

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Notes Payable (Tables)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable consist of the following:

	June 30, 2017					December 31, 2016
	Principal			Accrued Interest		Principal			Accrued Interest
Convertible notes
Convertible note #1		7,500			117		7,500			31
Debt Discount		(444	)		-		(3,104	)		-
Convertible note #2		50,000			2,033		50,000			1,617
Debt Discount		(8,950	)		-		(20,620	)		-
Subtotal convertible notes net		48,106			2,150		33,776			1,648
Promissory notes
Promissory note #1		-			-		990			-
Promissory note #2		-			-		13,278			-
Debt Discount		-			-		(3,510	)		-
Promissory note #3		50,000			750		50,000			-
Debt Discount		(19,792	)		-		(32,292	)		-
Promissory note #4		10,000			1,600		10,000			400
Debt Discount		(2,692	)		-		(7,308	)		-
Promissory note #5		36,100			1,504		36,100			3,581
Promissory note #6		5,040			-		5,040			106
Debt Discount		(1,680	)		-		(4,200	)		-
Promissory note #7		24,960			2,629		24,960			-
Promissory note #8		50,000			2,083		50,000			-
Promissory note #9		50,400			1,050		-			-
Debt Discount		(12,474	)		-		-			-
Promissory note #10		70,000			2,917		-			-
Debt Discount		(24,500	)		-		-			-
Promissory note #11		75,000			3,125		-			-
Debt Discount		(27,083	)		-		-			-
Subtotal promissory notes		283,279			15,658		143,058			4,087
Royalty notes
Royalty note #1		25,731			-		46,876			-
Debt Discount		(25,209	)		-		(45,903	)		-
Royalty note #2		24,253			-		48,938			-
Debt Discount		(23,399	)		-		(41,133	)		-
Royalty note #3		192,000			8,000		192,000			-
Debt Discount		(144,000	)		-		(176,000	)		-
Royalty note #4		325,000			13,542		325,000			4,375
Debt Discount		(254,348	)		-		(311,258	)		-
Subtotal royalty notes		120,028			21,542		38,520			4,375
Related party promissory note
Related party promissory note		-			-		97,749			-
Total		451,413			39,350		313,103			10,110
Current portion		164,387			39,350		238,264			10,110
Long-term portion	$	287,029		$	-	$	74,839		$	-

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Liability

The following table describes the Derivative liability as of June 30, 2017 and December 31, 2016.

Balance December 31, 2016	$	73,556
Change in fair market value of derivative		17,492
Balance June 30, 2017 (unaudited)	$	56,064

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Warrants (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Warrant Activity

The following table reflects warrant activity:

			Weighted Average
	Warrants for		Weighted Average		Remaining		Aggregate
	Common Shares		Exercise Price		Contractual Term		Intrinsic Value
Outstanding and exercisable as of December 31, 2014		-	$	-	$	-	$	-
Granted		110,000		0.72		2.27		-
Exercised		-		-		-		-
Forfeited, cancelled, expired		-		-		-		-
Outstanding as of December 31, 2015		110,000	$	0.72	$	2.10		-
Granted		50,000		0.10		4.00
Exercised		-		-		-		-
Forfeited, cancelled, expired		-		-		-		-
Outstanding as of December 31, 2016		160,000	$	0.53	$	1.97		5,250
Granted		1,944,426		0.21		4.00		195,700
Exercised		-		-		-
Forfeited, cancelled, expired		-		-		-
Outstanding as of June 30, 2017		2,104,426	$	0.23	$	3.15		200,950

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Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following shares are not included in the computation of diluted income (loss) per share, because their inclusion would be anti-dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Preferred shares		-		-		-
Convertible notes		409,159		19,038		409,159		19,751
Warrants		2,104,426		110,000		2,104,426		110,000
Options		-		-		-		-
Total anti-dilutive weighted average shares		2,513,585		129,038		2,513,585		129,751

Schedule of Dilutive Securities of Common Shares Outstanding

If all dilutive securities had been exercised at June 30, 2017 the total number of common shares outstanding would be as follows:

	June 30, 2017
Common Shares		22,474,052
Preferred Shares		-
Convertible notes		409,159
Warrants		2,104,426
Options		-
Total potential shares		24,987,637

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Organization and Nature of Business (Details Narrative)	Dec. 31, 2015
Arizona Corporation [Member]
Ownership percent	100.00%

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Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Accumulated deficit	$ 2,466,096	$ 1,587,330
Maximum percentage of carrying value of debt	10.00%
One Distributer [Member] | Revenue [Member]
Concentration risk, percentage	90.00%
Distributer [Member] | Accounts Receivable [Member]
Concentration risk, percentage	67.00%

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Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Financial Instruments Measured at Fair Value On Recurring Basis (Details)	6 Months Ended
	Jun. 30, 2017 USD ($)
Fair Value, Inputs, Level 1 [Member]
Balance, beginning
Valuation of preferred shares issuance
Change in fair value of derivative liability
Balance, ending
Fair Value, Inputs, Level 2 [Member]
Balance, beginning	73,556
Valuation of preferred shares issuance
Change in fair value of derivative liability	(17,492)
Balance, ending	56,064
Fair Value, Inputs, Level 3 [Member]
Balance, beginning
Valuation of preferred shares issuance	350,000
Change in fair value of derivative liability
Balance, ending	$ 350,000

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Segment Reporting (Details Narrative)	6 Months Ended
	Jun. 30, 2017 Segments
Segment Reporting [Abstract]
Number of reportable segments	2
Rental period description	The rental periods range from a few months to 2 years and include a combination of down payments made by the customer and monthly payments paid under the agreements with the Company.

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Segment Reporting - Schedule of Net Sales and Identifiable Operating Income by Segment (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Gross Profit		$ 265,872	$ 74,513	$ 420,705	$ 107,437
Payroll		98,462	31,518	168,776	65,247
Professional fees		35,771	36,985	76,902	61,621
General and administrative expenses		(388,747)	125,402	327,345	191,959
Depreciation		88,726	6,675	144,142	16,930
Interest expense		150,489	42,507	294,798	69,925
Change in fair value of derivative liability		(1,464)	(15,122)	(17,492)	19,612
Loss on extinguishment of debt		(305,000)		(305,000)
Common stock issued for services			(17,000)		(34,000)
Income (loss) before provision for income taxes		(22,365)	(170,452)	(878,766)	(351,857)
Provision for income taxes
Net Income (loss)		(22,365)	(170,452)	(878,766)	(351,857)
Total net property, plant, and equipment assets		873,449		873,449		$ 356,346
Monitoring [Member]
Gross Profit	[1]	158,653	68,563	225,991	101,487
Identifiable segment operating expenses	[2]	51,580	6,356	57,412	15,557
Identifiable segment operating income	[3]	107,073	62,207	168,579	85,930
Total net property, plant, and equipment assets		348,792	164,445	348,792	164,445
Distributorships [Member]
Gross Profit	[1]	107,219	5,950	194,714	5,950
Identifiable segment operating expenses	[2]	37,560		86,090
Identifiable segment operating income	[3]	69,659	5,950	108,624	5,950
Total net property, plant, and equipment assets		523,018		523,018
Operating Segment [Member]
Gross Profit	[1]	265,872	74,513	420,705	107,437
Identifiable segment operating expenses	[2]	89,140	6,356	143,502	15,557
Identifiable segment operating income	[3]	176,732	68,157	277,203	91,800
Payroll	[4]	98,462	31,518	168,776	65,247
Professional fees	[4]	35,771	36,985	76,902	61,621
General and administrative expenses	[4]	(388,747)	125,402	327,345	191,959
Depreciation	[4]	(414)	319	640	1,373
Interest expense	[4]	150,489	42,507	294,798	69,925
Change in fair value of derivative liability	[4]	(1,464)	(15,122)	(17,492)	19,612
Loss on extinguishment of debt	[4]	305,000		305,000
Common stock issued for services	[4]		17,000		34,000
Income (loss) before provision for income taxes		(22,365)	(170,452)	(878,766)	(351,857)
Provision for income taxes
Net Income (loss)		(22,365)	(170,452)	(878,766)	(351,857)
Total net property, plant, and equipment assets		873,449	167,364	873,449	167,364
Corporate [Member]
Total net property, plant, and equipment assets		$ 1,639	$ 2,919	$ 1,639	$ 2,919

[1] Segment gross profit includes segment net sales less segment cost of sales

[2] Identifiable segment operating expenses consists of identifiable depreciation expense

[3] Identifiable segment operating income consists of segment gross profit, less identifiable depreciation expense

[4] General corporate expense consists of all other non-identifiable expenses

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Furniture and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 88,726	$ 6,675	$ 144,142	$ 16,930

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Furniture and Equipment - Schedule of Furniture and Equipment (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Total assets	$ 1,085,941	$ 424,696
Less: accumulated depreciation	(212,492)	(68,350)
Furniture and equipment, net	873,449	356,346
Monitoring Units [Member]
Total assets	1,081,143	419,898
Furniture, Fixtures, and Equipment [Member]
Total assets	$ 4,798	$ 4,798

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Deposits - Schedule of Deposits (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Banking and Thrift [Abstract]
Deposit for BDI-747 units	$ 50,000	$ 250,000
Other	2,404	6,254
Total	$ 52,404	$ 256,254

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Accrued Expenses - Schedule of Accrued Expense (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued expenses	$ 5,233	$ 3,503
Accrued wages	32,371	32,700
Accrued payroll taxes	67,697	32,592
Total	$ 105,301	$ 68,795

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Deferred Revenue - Schedule of Deferred Revenue (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Deferred revenue	$ 205,524	$ 162,331
Monitoring [Member]
Deferred revenue	150,524	103,831
Distributorships [Member]
Deferred revenue	$ 55,000	$ 58,500

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Notes Payable (Details Narrative)																			3 Months Ended		6 Months Ended
	May 19, 2017 USD ($)	Mar. 31, 2017 USD ($) shares	Mar. 16, 2017 USD ($)	Feb. 27, 2017 USD ($)	Jan. 15, 2017 USD ($)	Nov. 04, 2016 USD ($)	Nov. 02, 2016 USD ($) $ / shares shares	Sep. 30, 2016 USD ($) shares	Sep. 23, 2016 USD ($) shares	May 06, 2016 USD ($) shares	Apr. 05, 2016 USD ($) shares	Mar. 30, 2016 USD ($) shares	Mar. 29, 2016 USD ($)	Jan. 29, 2016 USD ($)	Jan. 20, 2016 USD ($)	Nov. 24, 2015 USD ($) $ / shares shares	Aug. 07, 2015 USD ($) $ / shares shares	Feb. 16, 2014 USD ($) Installments	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)	Dec. 18, 2015 USD ($)
Convertible debenture																			$ 7,500		$ 7,500
Conversion of debt value																					$ 435,719
Expected dividend rate																					0.00%
Volatility rate																					312.00%
Risk free interest rate																					0.55%
Amortization of debt discount																					$ 186,477	$ 52,963
Exchange in cash																					416,110
Loss on extinguishments of debt																			$ (305,000)		$ (305,000)
Maximum [Member]
Expected term																					1 year 1 month 9 days
Convertible Note 1 [Member]
Interest bearing percentage																	7.50%
Convertible debenture																	$ 15,000
Convertible debt due date																	Aug. 07, 2017
Percent of loan convertible on trading days																	70.00%
Discount on convertible debenture																	$ 5,770
Conversion of debt value										$ 7,500
Conversion of debt into shares | shares										30,000
Warrants outstanding | shares																	30,000
Warrants exercise price | $ / shares																	$ 0.50
Expected term																	3 years
Expected dividend rate																	0.00%
Volatility rate																	100.00%
Risk free interest rate																	1.08%
Amortization of debt discount																	$ 4,873
Convertible Note 2 [Member]
Interest bearing percentage																10.00%
Convertible debenture																$ 50,000
Convertible debt due date																Nov. 19, 2017
Percent of loan convertible on trading days																70.00%
Debt conversion of convertible percentage																9.90%
Discount on convertible debenture																$ 32,897
Warrants outstanding | shares																80,000
Warrants exercise price | $ / shares																$ 0.80
Expected term																2 years
Expected dividend rate																0.00%
Volatility rate																100.00%
Risk free interest rate																0.61%
Amortization of debt discount																$ 13,783
Promissory Note 1 [Member]
Note for principal balance																								$ 10,200
Company borrowed																							$ 13,100
Promissory Note 2 [Member]
Note for principal balance														$ 44,850
Company borrowed								$ 28,600
Exchange in cash														$ 29,505
Promissory Note 3 [Member]
Interest bearing percentage												18.00%
Convertible debt due date												Jun. 30, 2018
Amortization of debt discount											$ 50,000	$ 50,000
Notes payable												$ 50,000
Number of restricted shares issued for exchange | shares											50,000	50,000
Number of restricted shares issued for exchange for cash											$ 50,000	$ 50,000
Promissory Note 4 [Member]
Interest bearing percentage									24.00%
Convertible debt due date									Oct. 31, 2017
Amortization of debt discount									$ 10,000
Notes payable									$ 10,000
Number of restricted shares issued for exchange | shares									100,000
Number of restricted shares issued for exchange for cash									$ 10,000
Promissory Note 5 [Member]
Interest bearing percentage								25.00%
Convertible debt due date								Oct. 01, 2017
Notes payable								$ 36,100
Number of restricted shares issued for exchange for cash								36,100
Interest payments								752
Payment terms, balloon payment								$ 36,100
Promissory Note 6 [Member]
Interest bearing percentage							25.00%
Convertible debt due date							Nov. 01, 2017
Warrants outstanding | shares							50,000
Warrants exercise price | $ / shares							$ 0.10
Expected term							4 years
Expected dividend rate							0.00%
Volatility rate							329.00%
Risk free interest rate							1.56%
Amortization of debt discount							$ 5,040
Notes payable							5,040
Number of restricted shares issued for exchange for cash							5,040
Interest payments							$ 105
Promissory Note 7 [Member]
Interest bearing percentage							25.00%
Convertible debt due date							Nov. 01, 2017
Notes payable							$ 24,960
Number of restricted shares issued for exchange for cash							24,960
Interest payments							520
Payment terms, balloon payment							$ 24,960
Promissory Note 8 [Member]
Interest bearing percentage							25.00%
Convertible debt due date							Nov. 01, 2019
Notes payable							$ 50,000
Number of restricted shares issued for exchange for cash							50,000
Interest payments							1,042
Payment terms, balloon payment							$ 50,000
Promissory Note 9 [Member]
Interest bearing percentage					25.00%
Convertible debt due date					Jan. 15, 2018
Notes payable					$ 50,400
Interest payments					1,042
Payment terms, balloon payment					50,000
Debt discount					$ 27,720
Promissory Note 10 [Member]
Interest bearing percentage				25.00%
Convertible debt due date				Feb. 27, 2020
Notes payable				$ 70,000
Number of restricted shares issued for exchange for cash				70,000
Interest payments				1,458
Payment terms, balloon payment				70,000
Debt discount				$ 28,000
Promissory Note 11 [Member]
Interest bearing percentage			25.00%
Convertible debt due date			Mar. 16, 2020
Notes payable			$ 75,000
Number of restricted shares issued for exchange for cash			75,000
Interest payments			1,563
Payment terms, balloon payment			75,000
Debt discount			$ 30,000
Royalty Note 1 [Member] | Royalty Agreement [Member]
Royalty note, description								The Company entered into Amendment No. 1 to Royalty note #1 in order to remove a security interest in the Company’s assets to secure repayment of the original note and amend the royalty provisions of the original note to be $1 for each Device on the road beginning in the 25th month after the date of the original note.
Loss on extinguishments of debt								$ 116,541
Shares of restricted common stock | shares								425,000
Royalty Note 1 [Member] | Royalty Agreement [Member] | Third Party [Member]
Company borrowed															$ 65,000
Royalty Note 1 [Member] | Royalty Agreement [Member] | Third Party [Member] | February 2017 [Member]
Amortization of debt discount															65,000
Per month amount															937
Repay of principal amount															3,531
Pay to lender royalty fee per month															$ 5
Royalty note, description															The Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity.
Royalty Note 2 [Member] | Royalty Agreement [Member]
Amortization of debt discount								$ 8,959
Interest payments								$ 4,000
Royalty note, description								The Company entered into Amendment No. 1 to Royalty note #2 to amend the royalty provisions of the original note to be $1 for each Device on the road beginning in the 25th month after the date of the Royalty note #2.
Shares of restricted common stock | shares								50,000
Royalty Note 2 [Member] | Royalty Agreement [Member] | CEO [Member]
Company borrowed													$ 55,000
Royalty Note 2 [Member] | Royalty Agreement [Member] | April 2017 [Member] | CEO [Member]
Amortization of debt discount													55,000
Per month amount													937
Repay of principal amount													3,531
Pay to lender royalty fee per month													$ 5
Royalty note, description													The Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity.
Royalty Note 3 [Member]
Acquire parts and supplies to manufacture devices, description								Under the terms of the LSA, the first phase will be a loan of up to $192,000 to acquire parts and supplies to manufacture 600 Devices; and the second phase will be a loan of up to $350,400 to acquire parts and supplies to manufacture 1,000 Devices.
Royalty Note 3 [Member] | Doheny [Member] | October 7, 2016 [Member]
Stock issued during period, shares | shares								845,913
Royalty Note 3 [Member] | Loan and Security Agreement [Member] | First Phase [Member]
Interest bearing percentage								25.00%
Maximum loan amount								$ 192,000
Royalty Note 3 [Member] | Loan and Security Agreement [Member] | Second Phase [Member]
Interest bearing percentage								25.00%
Maximum loan amount								$ 350,400
Royalty Note 3 [Member] | Loan and Security Agreement [Member] | Doheny Group, LLC, Delaware Limited Liability [Member]
Royalty note, description								The Phase 1 Loan was funded in the amount of $192,000 by Doheny on September 30, 2016, upon which the Company forwarded the funds to its supplier on or about October 5, 2016, in order to acquire parts and supplies to manufacture 600 Devices. Both the Phase 1 Loan and the Phase 2 Loan mature three years from the date of funding, and are at an interest rate of 25% per annum. The note requires interest only payments of $4,000 per month. The Company can prepay the Phase 1 Loan and the Phase 2 Loan (if applicable) at any time without penalty. In exchange for Doheny funding the Phase 1 Loan, the Company issued Doheny a promissory note for $192,000 and also issued Doheny shares of common stock equal to 4.99% of the then-outstanding common stock, pursuant to the terms of a stock purchase agreement. As a result, on or about October 7, 2016, the Company issued Doheny 845,913 shares of common stock. In addition, upon funding of any portion of the Phase 2 loan (Royalty Note #4 below) then the Company is obligated to issue Doheny that number of additional shares of common stock that equals 5% of the then-outstanding common stock. Until the Company repays the Phase 1 Loan and the Phase 2 Loan, as applicable, Doheny has anti-dilution rights for the percentage of stock Doheny owns in the event the Company issues additional shares of common stock during that period. The Company also entered into a Royalty Agreement with Doheny, under which Doheny was granted perpetual royalty rights on all Devices when the Company has 500 or more Devices in service whether leased to end users or distributors. The royalty amounts vary between $1 and $2 per Device depending on a variety of factors. The Company recorded a debt discount of $192,000 related to the relative fair value of the issued shares associated with the Phase 1 note to be amortized over the life of the note.
Maximum loan amount								$ 542,400
Royalty Note 3 [Member] | Stock Purchase Agreement[Member] | First Phase [Member]
Amortization of debt discount								$ 192,000
Outstanding common stock, percentage								4.99%
Royalty Note 3 [Member] | Stock Purchase Agreement[Member] | Second Phase [Member]
Outstanding common stock, percentage								5.00%
Royalty Note 4 [Member] | Royalty Agreement [Member] | Doheny Group [Member]
Royalty note, description						The Company agreed to fund an initial portion of the Phase 2 loan as described in “Royalty note #3” above. In connection with this funding the common stock ownership percentage of Doheny Group was increased to 9.95%. As also described in “Royalty note #3” above Doheny has anti-dilution privileges to maintain 9.95% of common stock ownership at no additional cost until both Royalty note #3 and Royalty note #4 are paid in full. As of December 31, 2016 the Company has drawn $325,000 out of the maximum allowance of $350,400 in connection with Royalty note #4.
Loans payable						$ 325,000
Maximum allowance						$ 350,400
Royalty Note 4 [Member] | Royalty Agreement [Member] | Doheny Group [Member] | Maximum [Member]
Ownership percentage						9.95%
Related Party Promissory Note [Member] | Laurence Wainer [Member]
Interest bearing percentage																		7.75%
Note for principal balance																		$ 160,000
Per month amount																		$ 3,205
Interest payable monthly installments | Installments																		60
Debt instrument, forgiveness	$ 45,000
Forgiveness of accrued salary	$ 25,537
Related Party Promissory Note [Member] | Laurence Wainer [Member] | Series A Preferred Stock [Member]
Conversion of debt into shares | shares		1,000,000
Accrued salaries		$ 25,537

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Notes Payable - Schedule of Notes Payable (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current portion	$ 114,902	$ 125,351
Long-term portion	168,377	17,708
Principal [Member]
Total	451,413	313,103
Current portion	164,387	238,264
Long-term portion	287,029	74,839
Accrued Interest [Member]
Total	39,350	10,110
Current portion	39,350	10,110
Long-term portion
Convertible Notes [Member] | Principal [Member]
Total	48,106	33,776
Convertible Notes [Member] | Accrued Interest [Member]
Total	2,150	1,648
Convertible Notes [Member] | Convertible Note 1 [Member] | Principal [Member]
Debt discount	(444)	(3,104)
Total	7,500	7,500
Convertible Notes [Member] | Convertible Note 1 [Member] | Accrued Interest [Member]
Debt discount
Total	117	31
Convertible Notes [Member] | Convertible note 2 [Member] | Principal [Member]
Debt discount	(8,950)	(20,620)
Total	50,000	50,000
Convertible Notes [Member] | Convertible note 2 [Member] | Accrued Interest [Member]
Debt discount
Total	2,033	1,617
Promissory Notes [Member] | Principal [Member]
Total	283,279	143,058
Promissory Notes [Member] | Accrued Interest [Member]
Total	15,658	4,087
Promissory Notes [Member] | Promissory Note 1 [Member] | Principal [Member]
Total		990
Promissory Notes [Member] | Promissory Note 1 [Member] | Accrued Interest [Member]
Total
Promissory Notes [Member] | Promissory Note 2 [Member] | Principal [Member]
Debt discount		(3,510)
Total		13,278
Promissory Notes [Member] | Promissory Note 2 [Member] | Accrued Interest [Member]
Debt discount
Total
Promissory Notes [Member] | Promissory Note 3 [Member] | Principal [Member]
Debt discount	(19,792)	(32,292)
Total	50,000	50,000
Promissory Notes [Member] | Promissory Note 3 [Member] | Accrued Interest [Member]
Debt discount
Total	750
Promissory Notes [Member] | Promissory Note 4 [Member] | Principal [Member]
Debt discount	(2,692)	(7,308)
Total	10,000	10,000
Promissory Notes [Member] | Promissory Note 4 [Member] | Accrued Interest [Member]
Debt discount
Total	1,600	400
Promissory Notes [Member] | Promissory Note 5 [Member] | Principal [Member]
Total	36,100	36,100
Promissory Notes [Member] | Promissory Note 5 [Member] | Accrued Interest [Member]
Total	1,504	3,581
Promissory Notes [Member] | Promissory Note 6 [Member] | Principal [Member]
Debt discount	(1,680)	(4,200)
Total	5,040	5,040
Promissory Notes [Member] | Promissory Note 6 [Member] | Accrued Interest [Member]
Debt discount
Total		106
Promissory Notes [Member] | Promissory Note 7 [Member] | Principal [Member]
Total	24,960	24,960
Promissory Notes [Member] | Promissory Note 7 [Member] | Accrued Interest [Member]
Total	2,629
Promissory Notes [Member] | Promissory Note 8 [Member] | Principal [Member]
Total	50,000	50,000
Promissory Notes [Member] | Promissory Note 8 [Member] | Accrued Interest [Member]
Total	2,083
Promissory Notes [Member] | Promissory Note 9 [Member] | Principal [Member]
Debt discount	(12,474)
Total	50,400
Promissory Notes [Member] | Promissory Note 9 [Member] | Accrued Interest [Member]
Debt discount
Total	1,050
Promissory Notes [Member] | Promissory Note 10 [Member] | Principal [Member]
Debt discount	(24,500)
Total	70,000
Promissory Notes [Member] | Promissory Note 10 [Member] | Accrued Interest [Member]
Debt discount
Total	2,917
Promissory Notes [Member] | Promissory Note 11 [Member] | Principal [Member]
Debt discount	(27,083)
Total	75,000
Promissory Notes [Member] | Promissory Note 11 [Member] | Accrued Interest [Member]
Debt discount
Total	3,125
Royalty Notes [Member] | Principal [Member]
Total	120,028	38,520
Royalty Notes [Member] | Accrued Interest [Member]
Total	21,542	4,375
Royalty Notes [Member] | Royalty Note 1 [Member] | Principal [Member]
Debt discount	(25,209)	(45,903)
Total	25,731	46,876
Royalty Notes [Member] | Royalty Note 1 [Member] | Accrued Interest [Member]
Debt discount
Total
Royalty Notes [Member] | Royalty Note 2 [Member] | Principal [Member]
Debt discount	(23,399)	(41,133)
Total	24,253	48,938
Royalty Notes [Member] | Royalty Note 2 [Member] | Accrued Interest [Member]
Debt discount
Total
Royalty Notes [Member] | Royalty Note 3 [Member] | Principal [Member]
Debt discount	(144,000)	(176,000)
Total	192,000	192,000
Royalty Notes [Member] | Royalty Note 3 [Member] | Accrued Interest [Member]
Debt discount
Total	8,000
Royalty Notes [Member] | Royalty Note 4 [Member] | Principal [Member]
Debt discount	(254,348)	(311,258)
Total	325,000	325,000
Royalty Notes [Member] | Royalty Note 4 [Member] | Accrued Interest [Member]
Debt discount
Total	13,542	4,375
Related Party Promissory Notes [Member] | Principal [Member]
Total		97,749
Related Party Promissory Notes [Member] | Accrued Interest [Member]
Total

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Derivative Financial Instruments (Details Narrative)	6 Months Ended
	Jun. 30, 2017 USD ($)
Convertible debt outstanding	$ 7,500
Expected dividend rate	0.00%
Volatility	312.00%
Risk free interest rate	0.55%
Convertible Note [Member]
Convertible debt outstanding	$ 50,000
Minimum [Member]
Expected term	10 months 6 days
Maximum [Member]
Expected term	1 year 1 month 9 days

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Derivative Financial Instruments - Schedule of Derivative Liability (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative financial instruments, beginning balance			$ 73,556
Change in fair market value of derivative	$ 1,464	$ 15,122	17,492	$ (19,612)
Derivative financial instruments, ending balance	$ 56,064		$ 56,064

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Stockholders' Equity (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Number of preferred stock shares issued, value	$ 416,110
Preferred stock, shares issued	1,000,000	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Shares issued for services, value	$ 13,913
Conversion of debt value	$ 435,719
Number of stock sold during period	296,576
Number of stock sold during period, value	$ 51,500
Common stock, shares issued	22,474,052	19,575,605
Royalty Notes Three and Four [Member]
Number of stock sold during period	364,649
Common Stockholders [Member]
Common stock voting rights	Holders of common stock are entitled to one vote for each share held.
Shares issued for services, shares	27,180
Per share price	$ 0.001
Shares issued for services, value	$ 13,910
Conversion of debt into shares	195,400
Conversion of debt value	$ 85,720
Number of stock sold during period	2,311,218
Number of stock sold during period, value	$ 360,879
Common stock, shares issued	22,474,052
Series A Preferred Stock [Member]
Preferred stock, shares authorized	1,000,000
Preferred stock, voting rights	Series A Preferred stock will have one hundred (100) votes on all matters
Series A Preferred Stock [Member] | Material Definitive Agreement [Member] | Officer and Director [Member]
Number of preferred stock shares issued	1,000,000
Number of preferred stock shares issued, value	$ 350,000

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Warrants (Details Narrative)	6 Months Ended
	Jun. 30, 2017 USD ($) shares
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Number of warrants sold to purchase common shares | shares	750,000
Sale of warrants to purchase common shares, value | $	$ 55,000

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Warrants - Schedule of Warrant Activity (Details) - Warrant [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Warrants for common shares, outstanding, beginning balance	160,000	110,000
Warrants for common shares, granted	1,944,426	50,000	110,000
Warrants for common shares, exercised
Warrants for common shares, forfeited, cancelled, expired
Warrants for common shares, outstanding, ending balance	2,104,426	160,000	110,000
Weighted average exercise price, beginning balance	$ 0.53	$ 0.72
Weighted average exercise price, granted	0.21	0.10	0.72
Weighted average exercise price, exercised
Weighted average exercise price, forfeited, cancelled, expired
Weighted average exercise price, ending balance	$ 0.23	$ 0.53	$ 0.72
Weighted Average Remaining Contractual Term, Granted	4 years	4 years	2 years 3 months 8 days
Weighted Average Remaining Contractual Term	3 years 1 month 24 days	1 year 11 months 19 days	2 years 1 month 6 days
Weighted Average Aggregate Intrinsic Value	$ 5,250
Weighted Average Aggregate Intrinsic Value, Granted	195,700
Weighted Average Aggregate Intrinsic Value	$ 200,950	$ 5,250

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Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Total anti-dilutive weighted average shares	2,513,585	129,038	2,513,585	129,751
Preferred Shares [Member]
Total anti-dilutive weighted average shares
Convertible Notes [Member]
Total anti-dilutive weighted average shares	409,159	19,038	409,159	19,751
Warrant [Member]
Total anti-dilutive weighted average shares	2,104,426	110,000	2,104,426	110,000
Options [Member]
Total anti-dilutive weighted average shares

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Income (Loss) Per Share - Schedule of Dilutive Securities of Common Shares Outstanding (Details)	6 Months Ended
	Jun. 30, 2017 shares
Total potential shares	24,987,637
Common Shares [Member]
Total potential shares	22,474,052
Preferred Shares [Member]
Total potential shares
Convertible Notes [Member]
Total potential shares	409,159
Warrant [Member]
Total potential shares	2,104,426
Options [Member]
Total potential shares

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Commitments and Contingencies (Details Narrative)	Dec. 02, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Lese term	4 years
Lease amount for per month	$ 2,200
Maximum provision for escalating	$ 2,404

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Subsequent Events (Details Narrative)	6 Months Ended
	Jun. 30, 2017 USD ($) shares
Subsequent Events [Abstract]
Sale of stock, number of shares issued in transaction	296,576
Sale of stock, consideration | $	$ 51,500
Number of warrants issued to purchase shares of common stock	547,338