NOTES TO UNAUDITED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2019 and 2018
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization - Bioethics, Ltd. (
“
the Company
”
) was organized under the laws of the State of Nevada on July 26, 1990. The Company was organized to provide a vehicle for participating in potentially profitable business ventures which may become available through the personal contacts, and at the complete discretion, of the Company
’
s officers and directors. The Company has, at the present time, not paid any dividends and any dividends that may be paid in the future will depend upon the financial requirements of the Company and other relevant factors.
The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the three months ended March 31, 2019 and 2018 have been made.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company
’
s December 31, 2018 audited financial statements. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the operating results for the full year.
NOTE 2 RELATED PARTY TRANSACTIONS
Management Compensation - During the three months ended March 31, 2019 and 2018, the Company did not pay any compensation to its officers and directors.
Beginning August 2017, the Company entered into an oral agreement to pay the Company
’
s sole director $500 per month as payment for use of his personal residence as the Company
’
s office and mailing address. The Company has recorded rent expense of $1,500 during each of the three months ended March 31, 2019 and 2018, which is included in the general and administrative expenses on the statements of operations. The amount payable at December 31, 2018 was $1,500. During the three months ended March 31, 2019, the Company paid $3,000, resulting in $-0- payable at March 31, 2019.
In December 2014, the Company borrowed $25,000 from the majority shareholder pursuant to an unsecured promissory note, which was due on demand and accrued interest at 12% per annum, or $750 per quarter. On March 9, 2018 the Company paid the outstanding principal amount of $25,000 and accrued interest of $8,250.
On March 8, 2018 the Company entered into a promissory note with a newly-affiliated party in the amount of $43,250. The note is payable on demand and carries interest at 10% per annum. Interest expense for the three months ended March 31, 2019 and 2018 was $853 and $218, respectively, resulting in accrued interest of $3,678 and $2,825 at March 31, 2019 and December 31, 2018, respectively.
On December 12, 2017, the Company entered into a promissory note with its sole officer and director in the amount of $107,000. On various dates during 2018, the officer advanced the Company an additional $5,670, resulting in total note principal balances of $112,670 at March 31, 2019 and December 31, 2018. The cumulative note balance is uncollateralized, due on demand, and carries interest at 12% per annum. Interest expense on the note for the three months ended March 31, 2019 and 2018 was $3,334 and $3,167, respectively, of which the Company repaid $1,000 during the three months ended March 31, 2019, resulting in accrued interest totaling $11,179 and $8,845 at March 31, 2019 and December 31, 2018, respectively.
NOTE 3
–
EQUITY TRANSACTIONS
On March 9, 2018, the Company repurchased 105,000,000 shares of its outstanding common stock (the
“
Control Shares
”
) held by Bradly Petersen (
“
Mr. Petersen
”
), for cash of $10,000. As a result of this transaction, Mr. Petersen no longer holds any interest in the Company, and the Control shares have been cancelled so that there were 11,000,000 issued and outstanding shares of Common Stock at March 31, 2019 and December 31, 2018.