NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 2016 and 2015
(Unaudited)
1.
ORGANIZATION
Powerdyne,
Inc., was incorporated on February 2, 2010 in Nevada, and is registered to do business in Rhode Island and Massachusetts. On February
7, 2011, Powerdyne, Inc. merged with Powerdyne International, Inc., formerly Greenmark Acquisition Corporation, a publicly held
Delaware corporation.
On December 13, 2010, Powerdyne International,
Inc., formerly Greenmark Acquisition Corporation, filed Amended and Restated Articles of Incorporation in order to, among other
things, increase the authorized capital stock to 300,000,000 common shares, par value $0.0001 per share. Unless the context specifies
otherwise, as discussed in Note 2, references to the “Company” refers to Powerdyne International, Inc. and Powerdyne,
Inc. after the merger.
At the closing of the merger, each share of
Powerdyne, Inc.’s common stock issued and outstanding immediately prior to the closing of the Merger was exchanged for the
right to receive 7,520 shares of common stock of Powerdyne International, Inc. Accordingly, an aggregate of 188,000,000 shares
of common stock of Powerdyne International, Inc. were issued to the holders of Powerdyne, Inc.’s common stock.
On January 26, 2015, Powerdyne International,
Inc. filed a current report on a Definitive Information Statement on Schedule 14C in order to increase the authorized capital stock
to 2,020,000,000 shares consisting of 2,000,000,000 common shares, par value $0.0001 per share and 20,000,000 shares which may
be designated as common or preferred stock, par value $0.0001 per share.
After the merger the Company begun production
and distribution of completely packaged independent electrical generator units that run on environmentally-friendly fuel sources,
such as natural gas and propane.
2. REVERSE MERGER ACCOUNTING
On February 7, 2011, Greenmark Acquisition Corporation,
which was a publicly held Delaware corporation, merged with Powerdyne, Inc. Upon closing of the transaction, Greenmark Acquisition
Corporation, the surviving corporation in the merger, changed its name to Powerdyne International, Inc.
The merger was accounted for as a reverse-merger,
and recapitalization in accordance with generally accepted accounting principles in the United States (“GAAP”). Powerdyne
International, Inc. was the acquirer for financial reporting purposes and the Company was the acquired company. Consequently, the
assets and liabilities and the operations that are reflected in the historical financial statements prior to the merger are those
of Powerdyne International, Inc. and have been recorded at the historical cost basis of Powerdyne International, Inc., and the
financial statements after completion of the merger include the assets and liabilities of the Company and Powerdyne, Inc., historical
operations of Powerdyne International, Inc. and operations of the Company from the closing date of the merger. Common stock and
the corresponding capital amounts of the Company pre-merger were retroactively restated as capital stock shares reflecting the
exchange ratio in the merger. In conjunction with the merger, the Company received no cash and assumed no liabilities from Greenmark
Acquisition Corporation.
3.
BASIS OF PRESENTATION
The
accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (“GAAP”) and include all the notes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered
necessary for fair presentation of the financial statements have been included.
POWERDYNE INTERNATIONAL, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 2016 and 2015
(Unaudited)
3.
BASIS OF PRESENTATION (Continued)
Certain
information and footnote disclosure normally included in financial statements in accordance with generally accepted accounting
principles have been omitted pursuant to the rules of the United States Securities and Exchange Commission (“SEC”).
These unaudited financial statements should be read in conjunction with our audited financial statements and accompanying notes
included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016.
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The
summary of significant accounting policies presented below is designed to assist in understanding the Company’s financial
statements. Such financial statements and accompanying notes are the representations of the Company’s management, who are
responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted
in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing
the accompanying financial statements.
Going
Concern
Since
its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting
management and technical staff, acquiring operating assets and raising capital. The Company has not generated significant revenues
from its principal operations, and there is no assurance of future revenues. As of March 31, 2016, the Company had an accumulated
deficit of $3,275,672. The Company’s continuation as a going concern is dependent on its ability to generate sufficient
cash flows from operations to meet its obligations and/or obtaining additional financing from its members or other sources, as
may be required.
The Company expects that its activities will
necessitate significant uses of working capital beyond March 31, 2016. Additionally, the Company’s capital requirements
will depend on many factors, including the success of the Company’s continued marketing and sales efforts and the status
of competitive products. The Company plans to continue financing its operations with cash received from financing activities.
While
the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s
activities will generate sufficient revenues to sustain its operations without additional capital or, if additional capital is
needed, that such funds, if available, will be obtainable on terms satisfactory to the Company.
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern; however, the
above condition raises substantial doubt about the Company’s ability to do so. The financial statements do not include any
adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications
of liabilities that may result should the Company be unable to continue as a going concern.
Use
of Estimates
In
preparing these audited financial statements, management is required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements
and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
POWERDYNE INTERNATIONAL, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 2016 and 2015
(Unaudited)
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Cash
The
Company considers all highly-liquid investments with maturities of three months or less when purchased to be cash equivalents.
The Company did not have any cash equivalents as of March 31, 2016 and December 31, 2015, respectively.
Concentration
of Credit Risk
Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents.
The Company places its cash with high quality banking institutions. From time to time, the Company may maintain cash balances
at certain institutions in excess of the Federal Deposit Insurance Corporation limit. The Company has not incurred any loss from
this risk.
Property
and Equipment
Property
and equipment is stated at cost. Capital expenditures for improvements and upgrades to existing equipment are also capitalized.
Maintenance and repairs are expensed as incurred. The equipment is depreciated over 10 years on a straight-line basis. Depreciation
expense for the periods ended March 31, 2016 and 2015 was $3,314 and $2,315, respectively.
This
pronouncement was effective for financial statements issued for fiscal years beginning after December 15, 2008. The adoption of
these requirements can affect the accounting for many convertible instruments with provisions that protect holders from a decline
in the stock price. Each reporting period, the Company evaluates whether convertible debt to acquire stock of the Company contain
provisions that protect holders from declines in the stock price or otherwise could result in modification of the exercise price
under the respective convertible debt agreements. The Company determined that the conversion features in the convertible notes
issued during the second, third, and fourth quarters of 2014, contained such provisions and recorded such instruments as derivative
liabilities. See Note 8, Convertible Debt.
Long-Lived
Assets
In
accordance with ASC 350-30 (formerly SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets
), the
Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their then carrying
values may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future
cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying
amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available,
or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. The Company’s
management currently believes there is no impairment of its long-lived assets. There can be no assurance however, that market
conditions will not change or demand for the Company’s products under development will continue. Either of these could result
in future impairment of long-lived assets.
Income
Taxes
As
a result of the implementation of certain provisions of ASC 740,
Income Taxes
, (formerly FIN 48,
Accounting for Uncertainty
in Income Taxes – An Interpretation of FASB Statement No. 109),
(“ASC 740”), which clarifies the accounting
and disclosure for uncertainty in tax positions, as defined. ASC 740 seeks to reduce the diversity in practice associated with
certain aspects of the recognition and measurement related to accounting for income taxes.
In
2010, the Company adopted Accounting for Uncertain Income Taxes under the provisions of ASC 740. ASC 740 clarifies the accounting
for income taxes by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in
the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting
in interim periods, disclosure and transition. The Company did not recognize any additional liability for unrecognized tax benefits
as a result of the adoption of ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will
not be realized.
The Company believes that its income tax filing
positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change
to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In
addition, the Company did not record a cumulative effect adjustment related to the adoption of ASC 740. The Company’s policy
for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes.
The Company’s tax provision was determined
using an estimate of its annual effective tax rate using enacted tax rates expected to apply to taxable income in the years in
which they are earned, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the
Company updates our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.
Income taxes payable as of March 31, 2016 and December 31, 2015 were $500 and $500, respectively.
POWERDYNE INTERNATIONAL, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 2016 and 2015
(Unaudited)
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Loss
per Common Share
Basic
loss per common share excludes dilutive securities and is computed by dividing net loss by the weighted average number of common
shares outstanding during the period. Diluted earnings per common share reflect the potential dilution that could occur if securities
or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock
that then shared in the earnings of the entity. Since the Company has only incurred losses, basic and diluted loss per share is
the same. As of March 31, 2016 and December 31, 2015, there were no outstanding dilutive securities.
The
following table represents the computation of basic and diluted losses per share:
|
|
|
Three Months ended
March 31,
|
|
|
Three Months ended
March 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
(Income) Loss available for common shareholder
|
|
$
|
(85,955
|
)
|
|
$
|
38,285
|
|
|
Basic and fully diluted loss per share
|
|
$
|
(0.00
|
)
|
|
$
|
0.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic and diluted
|
|
|
1,487,403,111
|
|
|
|
404,035,080
|
|
Net
loss per share is based upon the weighted average shares of common stock outstanding.
Recent
Accounting Pronouncements
“In
June 2014, the FASB issued ASU 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements.
ASU 2014-10 eliminates the distinction of a development stage entity and certain related disclosure requirements, including the
elimination of inception-to-date information on the statements of operations, cash flows and stockholders’ equity. The amendments
in ASU 2014-10 will be effective prospectively for annual reporting periods beginning after December 15, 2014, and interim periods
within those annual periods, however early adoption is permitted. The Company adopted ASU 2014-10 since the quarter ended June
30, 2014, thereby no longer presenting or disclosing any information required by Topic 915.”
5.
PROPERTY AND EQUIPMENT - NET
Equipment
consists of the following as of March 31, 2016 and December 31, 2015:
|
|
|
March 31,
2016
|
|
|
December 31,
2015
|
|
|
Machinery and equipment
|
|
$
|
171,043
|
|
|
$
|
171,043
|
|
|
Less impairment of equipment
|
|
|
(38,484
|
)
|
|
|
(38,484
|
)
|
|
|
|
|
132,559
|
|
|
|
132,559
|
|
|
Less accumulated depreciation
|
|
|
(56,842
|
)
|
|
|
(53,528
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Property and Equipment
|
|
$
|
75,717
|
|
|
$
|
79,031
|
|
Equipment
is stated at cost and depreciated on a straight-line basis over the assets’ estimated useful lives: machinery and equipment
10 years. Total depreciation expense for the periods ended March 31, 2016 and 2015 was $3,314 and $2,315, respectively.
POWERDYNE INTERNATIONAL, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 2016 and 2015
(Unaudited)
6.
LEASE
On
March 11, 2015 Powerdyne International, Inc. (the “Company”) finalized its negotiations with Farmacia Brisas del Mar,
a corporation organized under the laws of Puerto Rico (the “Lessee”), and the Company and the Lessee have entered
into a five-year contract to lease power generating equipment to Lessee based upon power consumption. In addition, the custom
designed system will also provide cogeneration capabilities with the addition of chillers to support the air conditioning demands. The
agreement provides for a payment to the Company of a monthly fee equal to the greater of a set monthly base rate or a monthly
base rate plus an additional amount based on kilowatt wattage. The agreement provides for termination by the Company only in the
event of nonperformance by the Lessee unless Lessee pays all payments due for the remainder of the term. The agreement contains
representation and warranties, default provisions and indemnification provisions typical for agreements of this type.
7.
COMMON STOCK
Stock
issued for services
On
January 19, 2016 the Company issued 3,000,000 shares to a consultant as compensation for services rendered. The Company valued
the stock at $0.0003, for a total of $900.
On
January 19, 2016 the Company issued 500,000 shares to a consultant as compensation for services rendered. The Company valued the
stock at $0.0003, for a total of $150.
On
January 25, 2016 the Company issued 30,000,000 shares to stockholder as compensation for services rendered. The Company valued
the stock at $0.0002, for a total of 6,000.
On
January 25, 2016 the Company issued 75,000,000 shares to stockholder as compensation for services rendered. The Company valued
the stock at $0.0002, for a total of $15,000.
On
January 25, 2016 the Company issued 40,000,000 shares to a consultant as compensation for services rendered. The Company valued
the stock at $0.0002, for a total of $8,000.
8.
RELATED PARTY – Promissory Note
The Company obtained short-term cash flow from
a related party in the form of three demand Notes Payable in the aggregate amount of $10,000 which have been outstanding since
the year ended December 31, 2012. Two notes were amended and extended during 2014, and one note was amended and extended during
the quarter ended September 30, 2015, changing the maturity date to one year later than what was on original notes. The Notes
bear an interest rate of 7% per annum and are unsecured. The Company as of March 31, 2016 has outstanding notes in the amount
of $383,085.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
3/31/16
|
|
12/31/15
|
|
|
|
|
|
Promissory note 1
|
|
$
|
6,000
|
|
|
|
7
|
%
|
$
|
1,499
|
|
$
|
1,395
|
|
|
|
9/4/2016
|
|
|
Promissory note 2
|
|
$
|
2,000
|
|
|
|
7
|
%
|
$
|
489
|
|
$
|
454
|
|
|
|
10/1/2017
|
|
|
Promissory note 3
|
|
$
|
2,000
|
|
|
|
7
|
%
|
$
|
465
|
|
$
|
430
|
|
|
|
12/3/2017
|
|
|
Total
|
|
$
|
10,000
|
|
|
|
|
|
$
|
2,453
|
|
$
|
2,279
|
|
|
|
|
|
The
Company obtained short-term cash flow from a related party in the form of nine demand Notes Payable in the aggregate amount of
$70,953 during the period from 2012 through December 31, 2014. During the quarters ended September 30, 2015, June 30, 2015 and
March 31, 2015 the Company borrowed $53,000, $115,000 and $60,000, respectively, in the form of eight demand notes. The Company
repaid the principal amount of $453 during the year ended December 31, 2014, and $1,199 during the quarter ended March 31, 2015,
and $700 during the quarter ended June 30, 2015. Notes 1 through 6 were amended and extended during 2014, changing the maturity
date to one year later than what was on original notes. Notes 1 and 6 were amended again during the quarter ended September 30,
2015, changing the maturity date to one year later than what was on original notes. The Notes bear an interest rate of 7% per
annum and are unsecured.
POWERDYNE INTERNATIONAL, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 2016 and 2015
(Unaudited)
8.
RELATED PARTY – Promissory Note (Continued)
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
|
3/31/16
|
|
12/31/15
|
|
|
|
|
|
Promissory note 1
|
|
$
|
5,000
|
|
|
|
7
|
%
|
|
$
|
1,258
|
|
$
|
1,171
|
|
|
|
7/25/2016
|
|
|
Promissory note 2
|
|
$
|
11,000
|
|
|
|
7
|
%
|
|
$
|
2,648
|
|
$
|
2,456
|
|
|
|
10/22/2017
|
|
|
Promissory note 3
|
|
$
|
15,000
|
|
|
|
7
|
%
|
|
$
|
3,515
|
|
$
|
3,254
|
|
|
|
11/24/2017
|
|
|
Promissory note 4
|
|
$
|
102
|
|
|
|
7
|
%
|
|
$
|
25
|
|
$
|
23
|
|
|
|
10/22/2017
|
|
|
Promissory note 5
|
|
$
|
879
|
|
|
|
7
|
%
|
|
$
|
206
|
|
$
|
191
|
|
|
|
11/24/2017
|
|
|
Promissory note 6
|
|
$
|
973
|
|
|
|
7
|
%
|
|
$
|
245
|
|
$
|
228
|
|
|
|
7/25/2016
|
|
|
Promissory note 7
|
|
$
|
22,147
|
|
|
|
7
|
%
|
|
$
|
3,137
|
|
$
|
2,750
|
|
|
|
5/4/2016
|
|
|
Promissory note 8
|
|
$
|
7,000
|
|
|
|
7
|
%
|
|
$
|
640
|
|
$
|
518
|
|
|
|
12/11/2016
|
|
|
Promissory note 9
|
|
$
|
6,000
|
|
|
|
7
|
%
|
|
$
|
536
|
|
$
|
432
|
|
|
|
12/22/2016
|
|
|
Promissory note 10
|
|
$
|
25,000
|
|
|
|
7
|
%
|
|
$
|
2,153
|
|
$
|
1,716
|
|
|
|
1/8/2017
|
|
|
Promissory note 11
|
|
$
|
35,000
|
|
|
|
7
|
%
|
|
$
|
2,826
|
|
$
|
2,215
|
|
|
|
2/5/2017
|
|
|
Promissory note 12
|
|
$
|
40,000
|
|
|
|
7
|
%
|
|
$
|
2,754
|
|
$
|
2,056
|
|
|
|
4/8/2017
|
|
|
Promissory note 13
|
|
$
|
30,000
|
|
|
|
7
|
%
|
|
$
|
1,910
|
|
$
|
1,387
|
|
|
|
5/5/2017
|
|
|
Promissory note 14
|
|
$
|
45,000
|
|
|
|
7
|
%
|
|
$
|
2,435
|
|
$
|
1,648
|
|
|
|
6/24/2017
|
|
|
Promissory note 15
|
|
$
|
25,000
|
|
|
|
7
|
%
|
|
$
|
1,189
|
|
$
|
753
|
|
|
|
7/28/2017
|
|
|
Promissory note 16
|
|
$
|
15,000
|
|
|
|
7
|
%
|
|
$
|
647
|
|
$
|
385
|
|
|
|
8/20/2017
|
|
|
Promissory note 17
|
|
$
|
13,000
|
|
|
|
7
|
%
|
|
$
|
481
|
|
$
|
254
|
|
|
|
9/21/2017
|
|
|
Promissory note 18
|
|
$
|
5,000
|
|
|
|
7
|
%
|
|
$
|
175
|
|
$
|
88
|
|
|
|
10/13/2017
|
|
|
Promissory note 19
|
|
$
|
10,000
|
|
|
|
7
|
%
|
|
$
|
295
|
|
$
|
121
|
|
|
|
10/30/2017
|
|
|
Promissory note 20
|
|
$
|
3,000
|
|
|
|
7
|
%
|
|
$
|
62
|
|
$
|
10
|
|
|
|
12/15/2017
|
|
|
Promissory note 21
|
|
$
|
17,000
|
|
|
|
7
|
%
|
|
$
|
352
|
|
$
|
55
|
|
|
|
12/15/2017
|
|
|
Total
|
|
$
|
331,101
|
|
|
|
|
|
|
$
|
27,489
|
|
$
|
21,711
|
|
|
|
|
|
The
Company obtained short-term cash flow from a related party in the form of five demand Notes Payable in the aggregate amount of
$6,504 during the period from 2012 through March 31, 2013, and $1,780 during the quarter ended March 31, 2016. Notes 1 and 2 were
amended and extended during 2014, changing the maturity date to one year later than what was on original notes. Notes 3 and 4
were amended and extended during the quarter ended March 31, 2015, changing the maturity date to one year later than what was
on original notes, and then amended and extended during the quarter ended March 31, 2016 changing the maturity date to two years
later than what was on amended notes. The Notes bear an interest rate of 7% per annum and are unsecured.
POWERDYNE INTERNATIONAL, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 2016 and 2015
(Unaudited)
8.
RELATED PARTY – Promissory Note (Continued)
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued
interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
3/31/16
|
|
|
12/31/15
|
|
|
|
|
|
Promissory
note 1
|
|
$
|
234
|
|
|
|
7
|
%
|
|
$
|
54
|
|
|
$
|
50
|
|
|
|
12/5/2017
|
|
|
Promissory note 2
|
|
$
|
170
|
|
|
|
7
|
%
|
|
$
|
40
|
|
|
$
|
37
|
|
|
|
11/18/2017
|
|
|
Promissory note 3
|
|
$
|
4,100
|
|
|
|
7
|
%
|
|
$
|
904
|
|
|
$
|
833
|
|
|
|
2/5/2018
|
|
|
Promissory note 4
|
|
$
|
2,000
|
|
|
|
7
|
%
|
|
$
|
440
|
|
|
$
|
405
|
|
|
|
2/7/2018
|
|
|
Promissory
note 5
|
|
$
|
1,780
|
|
|
|
7
|
%
|
|
$
|
1
|
|
|
$
|
-
|
|
|
|
3/29/2018
|
|
|
Total
|
|
$
|
8,284
|
|
|
|
|
|
|
$
|
1,439
|
|
|
$
|
1,325
|
|
|
|
|
|
The
Company obtained short-term cash flow from a related party in the form of two demand Notes Payable in the aggregate amount of
$18,000 during the year of 2013. Both notes were amended and extended during the quarter ended March 31, 2015, changing the maturity
date to one year later than what was on original notes, and amended and extended during the quarter ended March 31, 2016 changing
the maturity date to two years later than what was on amended notes. The Notes bear an interest rate of 7% per annum and are unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued
interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
3/31/16
|
|
|
12/31/15
|
|
|
|
|
|
Promissory
note 1
|
|
$
|
10,000
|
|
|
|
7
|
%
|
|
$
|
2,175
|
|
|
$
|
2,000
|
|
|
|
2/21/2018
|
|
|
Promissory
note 2
|
|
$
|
8,000
|
|
|
|
7
|
%
|
|
$
|
1,702
|
|
|
$
|
1,562
|
|
|
|
3/18/2018
|
|
|
Total
|
|
$
|
18,000
|
|
|
|
|
|
|
$
|
3,877
|
|
|
$
|
3,562
|
|
|
|
|
|
The
Company obtained short-term cash flow from a related party in the form of one demand Note Payable in the aggregate amount of $6,000
during the year of 2014, and three demand Notes Payable in the aggregate amount of $9,700 during the quarter ended March 31, 2016.
The Note bears an interest rate of 7% per annum and is unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued
interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
|
3/31/16
|
|
|
12/31/15
|
|
|
|
|
|
Promissory
note 1
|
|
$
|
6,000
|
|
|
|
7
|
%
|
|
$
|
695
|
|
|
$
|
590
|
|
|
|
8/6/2016
|
|
|
Promissory note 2
|
|
$
|
2,500
|
|
|
|
7
|
%
|
|
$
|
42
|
|
|
$
|
-
|
|
|
|
1/4/2018
|
|
|
Promissory note 3
|
|
$
|
4,200
|
|
|
|
7
|
%
|
|
$
|
20
|
|
|
$
|
-
|
|
|
|
2/5/2018
|
|
|
Promissory
note 4
|
|
$
|
3,000
|
|
|
|
7
|
%
|
|
$
|
7
|
|
|
$
|
-
|
|
|
|
3/20/2018
|
|
|
Total
|
|
$
|
15,700
|
|
|
|
|
|
|
$
|
764
|
|
|
$
|
590
|
|
|
|
|
|
During
the three months ended March 31, 2016 the total amount of related party loan proceeds was $11,480. The total interest accrued
on related party loans at March 31, 2016 and December 31, 2014 was $36,022 and $29,467, respectively.
From
time to time, the Company advances amounts to stockholders, as well as receives payments from stockholders in the form of cash
and/or out-of-pocket expenditures for the benefit of the Company, which are business in nature. The balance of advances to stockholder
as of March 31, 2016 and December 31, 2015 was $-0- and $11,321, respectively. Amounts accrued, but not yet paid as due to related
party at March 31, 2016 and December 31, 2015 was $25,000 and $25,000, respectively.
9.
COMMITMENTS AND CONTINGENCIES
Litigation
There
are no pending, threatened or actual legal proceedings in which the Company or any subsidiary is a party.