Note 1. Organization and Basis of Presentation	9 Months Ended
Sep. 30, 2016
Notes
Note 1. Organization and Basis of Presentation	Note 1. Organization and Basis of Presentation The accompanying consolidated financial statements of N-Viro International Corporation (the “Company”) are unaudited but, in management's opinion, reflect all adjustments (including normal recurring accruals) necessary to present fairly such information for the period and at the dates indicated. The results of operations for the nine months and three months ended September 30, 2016 may not be indicative of the results of operations for the year ending December 31, 2016. Since the accompanying consolidated financial statements have been prepared in accordance with Article 8 of Regulation S-X, they do not contain all information and footnotes normally contained in annual consolidated financial statements; accordingly, they should be read in conjunction with the consolidated financial statements and notes thereto appearing in the Company's Form 10-K for the period ending December 31, 2015. The financial statements are consolidated as of September 30, 2016, December 31, 2015 and September 30, 2015 for the Company. All intercompany transactions were eliminated. In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There have been no changes in the selection and application of significant accounting policies and estimates disclosed in “Item 8 – Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has negative working capital of approximately $2,737,000 at September 30, 2016, and has incurred recurring losses and negative cash flow from operations for the nine months ended September 30, 2016 and years ended December 31, 2015 and 2014. Moreover, while the Company expects to arrange for financing with lending institutions, there can be no assurances that the Company will have the ability to do so. The Company has borrowed money from third parties and related parties and expects to be able to generate future cash from the exercises of common stock options and warrants, new debt and equity issuances. The Company has substantially slowed payments to trade vendors, and has renegotiated payment terms with several existing and prior vendors to lengthen the time and/or reduce the amount of cash to repay these trade payables. In 2014, 2015 and early 2016, the Company issued new equity for total cash realized of approximately $1.4 million. In 2013, 2014 and again in 2015, the Company modified all outstanding warrants to enhance their exercisability and realized a total of $246,000 in exercises in 2013 and 2014. In October 2015, the Company extended the expiration date of all outstanding warrants for exactly one year. Beginning in March 2014, the Company’s operations in Volusia County, Florida, which at the time represented substantially all of its revenue, were voluntarily delayed while the Company employed additional personnel and moved assets to its new site in Bradley, Florida. When operations resumed in Bradley in June 2014, this reduction in revenue materially reduced available cash to fund current or prior expenses incurred, and has remained at this lower level or decreased over subsequent periods to date. For the next twelve months the Company expects to have adequate cash to sufficiently fund operations from cash generated from equity and convertible debt issuances, exercises of outstanding warrants and options and by focusing on existing and expected new sources of revenue, though there can be no assurances the Company will do so. The Company continues to pursue opportunities with strategic partners for the development and commercialization of the N-Viro Fuel technology both domestically and internationally. In addition, the Company is focusing on the development of regional biosolids processing facilities, and currently is in negotiations with potential partners to permit and develop independent, regional facilities. First, the Company requires a funding source to enable the development of processing facilities, and expect this to happen by early 2017 at an estimated cost of $100,000. Within six months after financing, the Company expects sales of new equipment and other sources of up-front revenue to provide additional sources of revenue, with the start up of the facility in late 2017, then to increase capacity to planned levels and full production by the beginning of 2018. At that time the Company expects these new facilities to provide adequate levels of cash to fund operations without additional equity or debt issuances. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Certain amounts in the Condensed Consolidated Balance Sheets at December 31, 2015 have been reclassified to conform to the current period presentation.

Note 1. Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2016

Note 1. Organization and Basis of Presentation

Note 1. Organization and Basis of Presentation

The accompanying consolidated financial statements of N-Viro International Corporation (the “Company”) are unaudited but, in management's opinion, reflect all adjustments (including normal recurring accruals) necessary to present fairly such information for the period and at the dates indicated. The results of operations for the nine months and three months ended September 30, 2016 may not be indicative of the results of operations for the year ending December 31, 2016. Since the accompanying consolidated financial statements have been prepared in accordance with Article 8 of Regulation S-X, they do not contain all information and footnotes normally contained in annual consolidated financial statements; accordingly, they should be read in conjunction with the consolidated financial statements and notes thereto appearing in the Company's Form 10-K for the period ending December 31, 2015.

The financial statements are consolidated as of September 30, 2016, December 31, 2015 and September 30, 2015 for the Company. All intercompany transactions were eliminated.

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There have been no changes in the selection and application of significant accounting policies and estimates disclosed in “Item 8 – Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2015.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has negative working capital of approximately $2,737,000 at September 30, 2016, and has incurred recurring losses and negative cash flow from operations for the nine months ended September 30, 2016 and years ended December 31, 2015 and 2014. Moreover, while the Company expects to arrange for financing with lending institutions, there can be no assurances that the Company will have the ability to do so. The Company has borrowed money from third parties and related parties and expects to be able to generate future cash from the exercises of common stock options and warrants, new debt and equity issuances. The Company has substantially slowed payments to trade vendors, and has renegotiated payment terms with several existing and prior vendors to lengthen the time and/or reduce the amount of cash to repay these trade payables. In 2014, 2015 and early 2016, the Company issued new equity for total cash realized of approximately $1.4 million. In 2013, 2014 and again in 2015, the Company modified all outstanding warrants to enhance their exercisability and realized a total of $246,000 in exercises in 2013 and 2014. In October 2015, the Company extended the expiration date of all outstanding warrants for exactly one year. Beginning in March 2014, the Company’s operations in Volusia County, Florida, which at the time represented substantially all of its revenue, were voluntarily delayed while the Company employed additional personnel and moved assets to its new site in Bradley, Florida. When operations resumed in Bradley in June 2014, this reduction in revenue materially reduced available cash to fund current or prior expenses incurred, and has remained at this lower level or decreased over subsequent periods to date.

For the next twelve months the Company expects to have adequate cash to sufficiently fund operations from cash generated from equity and convertible debt issuances, exercises of outstanding warrants and options and by focusing on existing and expected new sources of revenue, though there can be no assurances the Company will do so. The Company continues to pursue opportunities with strategic partners for the development and commercialization of the N-Viro Fuel technology both domestically and internationally. In addition, the Company is focusing on the development of regional biosolids processing facilities, and currently is in negotiations with potential partners to permit and develop independent, regional facilities. First, the Company requires a funding source to enable the development of processing facilities, and expect this to happen by early 2017 at an estimated cost of $100,000. Within six months after financing, the Company expects sales of new equipment and other sources of up-front revenue to provide additional sources of revenue, with the start up of the facility in late 2017, then to increase capacity to planned levels and full production by the beginning of 2018. At that time the Company expects these new facilities to provide adequate levels of cash to fund operations without additional equity or debt issuances. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Certain amounts in the Condensed Consolidated Balance Sheets at December 31, 2015 have been reclassified to conform to the current period presentation.