DCLT Data Call Technologies Inc (PK)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

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

 

For the quarterly period ended March 31, 2024

 

OR

 

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

 

Commission file number 000-54696

 

DATA CALL TECHNOLOGIES, INC.

(Exact Name Of Registrant As Specified In Its Charter)

 

Nevada		30-0062823
(State of Incorporation)		(I.R.S. Employer Identification No.)
700 South Friendswood Drive, Suite E, Friendswood, TX		77546
(Address of Principal Executive Offices)		(ZIP Code)

 

Registrant’s Telephone Number, Including Area Code: (866) 219-2025

 

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 ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

 

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

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.

 

Large accelerated filer ☐	Accelerated filer ☐	Non-Accelerated filer ☐	Smaller reporting company ☒
Emerging growth company ☐

 

On May 17, 2024 the Registrant had 157,498,515 shares of common stock outstanding.

 

 

 

TABLE OF CONTENTS

 

Item		Description		Page
		PART I - FINANCIAL INFORMATION
ITEM 1.		FINANCIAL STATEMENTS.		3
ITEM 2.		MANAGEMENT’S DISCUSSION AND ANALYSIS AND RESULTS OF OPERATION.		13
ITEM 3.		QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		17
ITEM 4.		CONTROLS AND PROCEDURES.		18
		PART II - OTHER INFORMATION
ITEM 1.		LEGAL PROCEEDINGS.		19
ITEM 1A.		RISK FACTORS		19
ITEM 2.		UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		19
ITEM 3.		DEFAULT UPON SENIOR SECURITIES.		19
ITEM 4.		MINE SAFETY DISCLOSURE		19
ITEM 5.		OTHER INFORMATION.		19
ITEM 6.		EXHIBITS.		19

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS Back to Table of Contents

 

Condensed Balance Sheets - March 31, 2024 (Unaudited) and December 31, 2023	4
Condensed Statements of Operations - Three Months Ended March 31, 2024, and 2023 (Unaudited)	5
Condensed Statement of Stockholders Equity – Three Months Ended March 31, 2024, and the year ended December 31, 2023 (Unaudited)	6
Condensed Statements of Cash Flows - Three Months Ended March 31, 2024, and 2023 (Unaudited)	7
Notes to Financial Statements	8

 

 

Data Call Technologies, Inc.

Condensed Balance Sheets

March 31, 2024 (Unaudited) and December 31, 2023

Back to Table of Contents

 

		March 31, 2024				December 31, 2023
		(Unaudited)
Assets
Current assets:
Cash		$	6,432			$	36,309
Accounts receivable			54,093				25,358
Total current assets			60,525				61,667
Property and equipment			151,723				151,723
Less accumulated depreciation and amortization			(148,714	)			(148,469	)
Net property and equipment			3,009				3,254
Other asset in house system			100,000				100,000
Other assets			800				800
Total assets		$	164,334			$	165,721
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	49,906			$	43,454
Accounts payable - related party			31,170				2,651
Accounts payable			31,170				2,651
Accrued expenses			21,720				20,356
Deferred revenue			-				42,335
Total current liabilities			102,796				108,796
Total liabilities			102,796				108,796
Stockholders’ equity:
Preferred stock, $0.001 par value. Authorized 10,000,000 shares: Series A 12% Convertible - 800,000 shares issued and outstanding at March 31, 2024 and December 31, 2023			800				800
Preferred stock, $0.001 par value. Authorized 1,000,000 shares: Series B - 10,000 shares issued and outstanding at March 31, 2024 and December 31, 2023			10				10
Preferred stock, value			10				10
Common stock, $0.001 par value. Authorized 490,000,000 shares: 157,498,515 shares issued and outstanding at March 31, 2024 and December 31, 2023			157,498				157,498
Additional paid-in capital			9,883,085				9,883,085
Accumulated deficit			(9,979,855	)			(9,984,468	)
Total stockholders’ equity			61,538				56,925
Total liabilities and stockholders’ equity		$	164,334			$	165,721

 

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

 

 

Data Call Technologies, Inc.

Condensed Statements of Operations

Three Months Ended March 31, 2024 and 2023 (Unaudited)

Back to Table of Contents

 

		Three Months				Three Months
		ended				ended
		March 31, 2024				March 31, 2023
Revenues
Sales		$	138,536			$	139,067
Cost of sales			52,726				50,087
Gross margin			85,810				88,980
Selling, general and administrative expenses			80,953				98,510
Depreciation and amortization expense			245				245
Total operating expenses			81,198				98,755
Other (income) expense
Interest income			(1	)			(4	)
Total expenses			81,197				98,751
Net income (loss) before income taxes			4,613				(9,771	)
Provision for income taxes			-				-
Net income (loss)		$	4,613			$	(9,771	)
Net loss per common share - basic and diluted:
Net loss applicable to common shareholders		$	0.00			$	0.00
Weighted average common shares:
Basic			157,498,515				157,498,515
Diluted			579,710,145				157,498,515

 

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

 

 

Data Call Technologies, Inc.

Condensed Statement of Shareholders’ Equity

(Unaudited)

Back to Table of Contents

 

For The Three Months Ended March 31, 2024, and For The Three Months Ended March 31, 2023

 

		shares				amount				shares				amount				shares				amount				capital				deficit				(deficit)
																										Additional								Shareholders’
		Preferred Stock A								Preferred Stock B								Common Stock								paid-in				Accumulated				equity
		shares				amount				shares				amount				shares				amount				capital				deficit				(deficit)
Balance year ended December 31, 2022			800,000			$	800				10,000			$	10				157,498,515			$	157,498			$	9,881,902			$	(9,966,935	)		$	73,275
Sharea issued for services			-																								877
Net Income (loss)			-				-				-				-				-				-				-				(9,771	)			(9,771	)
Balance year ended March 31, 2023			800,000			$	800				10,000			$	10				157,498,515			$	157,498			$	9,882,789			$	(9,976,706	)		$	64,391
Balance year ended December 31, 2023			800,000			$	800				10,000			$	10				157,498,515			$	157,498			$	9,883,085			$	(9,984,468	)		$	56,925
Balance			800,000			$	800				10,000			$	10				157,498,515			$	157,498			$	9,883,085			$	(9,984,468	)		$	56,925
Net Income (loss)			-				-				-				-				-				-				-				4,613				4,613
Balance period ended March 31, 2024			800,000			$	800				10,000			$	10				157,498,515			$	157,498			$	9,883,085			$	(9,979,855	)		$	61,538
Balance			800,000			$	800				10,000			$	10				157,498,515			$	157,498			$	9,883,085			$	(9,979,855	)		$	61,538

 

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

 

 

Data Call Technologies, Inc.

Condensed Statements of Cash Flows

Three Months Ended March 31, 2024 and 2023 (Unaudited)

Back to Table of Contents

 

		Three Months				Three Months
		Ended				Ended
		March 31, 2024				March 31, 2023
Cash flows from operating activities:
Net income (loss)		$	4,613			$	(9,771	)
Adjustments to reconcile net income to net cash (used in) provided be operating activities:
Depreciation			245				245
Stock based compensation			-				887
Changes in operating assets and liabilities:
Accounts receivable			(28,735	)			13,514
Prepaid expenses			-				1,400
Accounts payable			6,452				11,034
Accrued payable - related party			28,519				-
Accrued expenses - related party			1,364				23
Deferred revenue			(42,335	)			232,842
Net cash used in operating activities			(29,877	)			250,174
Cash flows from investing activities
Purchase of property and equipment			-				-
Net cash used in investing activities			-				-
Cash flows from financing activities:
Advance from related party			-				2,123
Net cash provided by financing activities			-				2,123
Net increase (decrease) in cash			(29,877	)			252,297
Cash at beginning of year			36,309				20,727
Cash at end of period		$	6,432			$	273,024
Supplemental Cash Flow Information:
Cash paid for interest		$	-			$	-
Cash paid for taxes		$	-			$	-

 

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

 

 

Data Call Technologies, Inc.

Notes to Condensed Financial Statements

March 31, 2024

(Unaudited)

Back to Table of Contents

 

(1) Summary of Significant Accounting Policies

 

Organization, Ownership and Business

 

Data Call Technologies, Inc. (the “Company”) was incorporated under the laws of the State of Nevada in 2002. The Company’s mission is to integrate cutting-edge information delivery solutions that are currently deployed by the media, and put them within the control of retail and commercial enterprises. The Company’s software and services put its clients in control of real-time advertising, news, and other content, including emergency alerts.

 

The accompanying unaudited financial statements have been prepared in accordance with U. S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month period ending March 31, 2024 are not indicative of the results that may be expected for the year ending December 31, 2024.

 

As contemplated by the Securities and Exchange Commission (SEC) under Rules of Regulation S-X, the accompanying financial statements and related footnotes have been condensed and do not contain certain information that will be included in the Company’s annual financial statements and footnotes thereto. For further information, refer to the Company’s audited financial statements and related footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2023.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers all highly liquid investment instruments purchased with original maturities of three months or less to be cash equivalents. There were no cash equivalents as of March 31, 2024, and December 31, 2023.

 

Revenue Recognition

 

January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification (ASC), Revenue Recognition. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606. The impact of adopting the new revenue standard was not material to our financial statements and there was no adjustment to beginning retained earnings on January 1, 2018.

 

Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

 

We determine revenue recognition through the following steps:

 

●	identification of the contract, or contracts, with a customer;
●	identification of the performance obligations in the contract;
●	determination of the transaction price;
●	allocation of the transaction price to the performance obligations in the contract; and
●	recognition of revenue when, or as, we satisfy a performance obligation.

 

Company recognizes revenues based on monthly fees for services provided to customers. Some customers prepay for annual services and the Company defers such amounts and amortizes them into revenues as the service is provided.

 

Accounts Receivable

 

Accounts receivable consist primarily of trade receivables. The Company provides an allowance for doubtful trade receivables equal to the estimated uncollectible amounts. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer’s trade accounts receivable. The allowance for doubtful trade receivables was $0 as of March 31, 2024, and December 31, 2023, as we believe all of our receivables are fully collectable.

 

Property, Equipment and Depreciation

 

Property and equipment are recorded at cost less accumulated depreciation. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, with any resultant gain or loss being recognized as a component of other income or expense. Depreciation is computed over the estimated useful lives of the assets (3-5 years) using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes. Maintenance and repairs are charged to operations as incurred.

 

8

 

Advertising Costs

 

The cost of advertising was $0.

 

Research and Development

 

Research and development costs were $0.

 

Product Development Costs

 

Product development costs consist of cost incurred to develop the Company’s website and software for internal and external use. All system enhancement costs were accumulated and on the balance sheet for a total of $100,000.

 

Income Taxes

 

The Company is a taxable entity and recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect when the temporary differences reverse. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the enactment date of the rate change. A valuation allowance is used to reduce deferred tax assets to the amount that is more likely than not to be realized.

 

Use of Estimates

 

The preparation of financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from those estimates.

 

Management’s Estimates and Assumptions

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses.

 

Stock-based Compensation.

 

We account for stock-based compensation in accordance with “FASB ASC 718-10.” Stock-based compensation expense recognized during the period is based on the value of the portion of share-based awards that are ultimately expected to vest during the period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The fair value of restricted stock is determined based on the number of shares granted and the closing price of the Company’s common stock on the date of grant. Compensation expense for all share-based payment awards is recognized using the straight-line amortization method over the vesting period.

 

Basic and Diluted Net Income (Loss) per Share Calculations

 

Income (Loss) per Share dictates the calculation of basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The share for convertible preferred shares were used in the calculation of the income per share.

 

For the three months ended March 31, 2024, the Company has excluded 800,000 series A preferred shares convertible into 579,710,145 shares of common stock.

 

For the three months ended March 31, 2023, the Company has excluded 800,000 series A preferred shares convertible into 579,710,145 shares of common stock, During the three months ended Marh 31, 2023, the above-mentioned shares are not included in the calculation for diluted earnings per share due to the Company’s net loss because their impact on the loss per share is anti-dilutive.

 

Dilutive per share amounts are computed using the weighted-average number of common shares outstanding and potentially dilutive securities, using the treasury stock method if their effect would be dilutive.

 

9

 

Fair Value of Financial Instruments

 

The Company estimates the fair value of its financial instruments using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the Company estimates of fair value are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumption and/or estimation methodologies may have a material effect on the estimated fair value amounts. The interest rates payable by the Company on its notes payable approximate market rates. The Company believes that the fair value of its financial instruments comprising accounts receivable, notes receivable, accounts payable, and notes payable approximate their carrying amounts.

 

Level 1: Quoted prices in active markets for identical assets or liabilities.

 

Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.

 

Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

 

The following table presents the Company’s Assets & Liabilities within the fair value hierarchy utilized to measure fair value on a recurring basis as of March 31, 2024, and December 31, 2023:

 Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

		(Level 1)				(Level 2)				(Level 3)
March 31, 2024		$	0			$	0			$	0
December 31, 2023		$	0			$	0			$	0

 

Recent Accounting Pronouncements

 

The Company has reviewed all other recently issued, but not yet effective, accounting pronouncements, and does not believe the future adoption of any such pronouncements will have a material impact on its financial condition or the results of its operations.

 

The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations,

 

(2) Going Concern

 

Although our audited financial statements for the years ended December 31, 2023 and December 31, 2022 were prepared under the assumption that we would continue our operations as a going concern, the report of our independent registered public accounting firm that accompanies our financial statements for the years ended December 31, 2023 and December 31, 2022 contains a going concern qualification in which such firm expressed substantial doubt in our ability to continue as a going concern without additional capital from becoming available, based on the financial statements at that time. Specifically, as noted above, we have incurred an operating loss this year and have negative working capital. There are no assurances that such financing, if necessary, will be available to us at all or will be available in sufficient amounts or on reasonable terms. Our financial statements do not include any adjustments that may result from the outcome of this uncertainty.

 

10

 

(3) Related Party Transactions

 

During the second quarter of 2018, the Company issued unregistered shares as follows: (i) 3,500,000 restricted shares to Tim Vance, the Company’s CEO, in connection with the execution of a new 5-year employment agreement; and 2,000,000 restricted shares to Gary Woerz, the Company’s CFO, in connection with the execution of a new 5-year employment agreement. The restricted shares were valued at $0.0034 per share using the closing price of the stock on the date of grant. The total expense associated with the issuances is calculated at $18,700 to be recognized over the 5-year term of the agreements. The Company recorded $0 (March 31, 2023: $887) in stock-based compensation expense, in relation to those shares for the quarter ended March 31, 2024. The April 30, 2018 employment agreement calls for a 5-year term ending April 30, 2024, annual compensation of $98,000 per year for services as CEO, annual compensation of $57,200 per year for services as CFO. For the period ending March 31, 2023 and March 31, 2024 the CEO was paid $24,500 and $24,500 and the CFO was paid $15,187 and $14,300 respectively.

 

As of March 31, 2024, and December 31, 2023, the total due to management for past accrued salaries is $20,000 and 20,000 respectively.

 

As of March 31, 2024, and December 31, 2023, the total due to management included in accounts payable is $31,170 and $2,651.

 

(4) Capital Stock, Warrants and Options

 

Series A Preferred Stock

 

The Company is authorized to issue up to 10,000,000 shares of Series A Preferred Stock, $0.001 par value per share, of which 800,000 shares are outstanding at March 31, 2024 and December 31, 2023. The Preferred Stock may be issued in one or more series, the terms of which may be determined at the time of issuance by the Board of Directors, without further action by stockholders, and may include voting rights (including the right to vote as a series on matters), preferences as to dividends and liquidation, conversion, redemption rights and sinking fund provisions.

 

Each share of Series A Preferred Stock shall bear a preferential dividend of twelve percent (12%) per year and is convertible into a number shares of the Company’s common stock, par value $0.001 per share (“Common Stock”) based upon Fifty (50%) percent of the average closing bid price of the Common Stock During the ten (10) day period prior to the conversion. The Company has not declared or accrued any dividends and as of March 31, 2024, and 2023 un accrued and undeclared dividends were $1,200.

 

Series B Preferred Stock

 

During the quarter ended September 30, 2014, the Company amended its Articles of incorporation to authorize 1,000,000 shares of Series B Preferred Stock at a par value of $0.001 and issued 10,000 shares. The Series B shares were valued at $76,000 and were expensed during 2014. The Series B Preferred Stock may be issued to one or series by the terms of which may be and may include preferences as to dividends and liquidation, conversion, redemption rights and sinking fund provisions. The Series B Preferred Shares have the right to vote in the aggregate, on all shareholder matters votes equal to 51% of the total shareholder vote on any and all shareholder matters. The Series B Preferred Stock will be entitled to this 51% voting right no matter how many shares of common stock or other voting stock of Data Call Technology stock is issued and outstanding in the future.

 

11

 

During the second quarter of 2018, the Company issued unregistered shares as follows: (i) 3,500,000 restricted shares to Tim Vance, the Company’s CEO, in connection with the execution of a new 5-year employment agreement; and 2,000,000 restricted shares to Gary Woerz, the Company’s CFO, in connection with the execution of a new 5-year employment agreement. The restricted shares were valued at $0.0034 per share using the closing price of the stock on the date of grant. Total expense associated with the issuances is calculated at $18,700 to be recognized over the 5-year term of the agreements. The Company recorded $0 (March 31, 2023: $887) in stock-based compensation expense, in relation to those shares for the quarter ended March 31, 2019. The April 30, 2018 employment agreements calls for a 5-year term ending April 30, 2024, annual compensation of $98,000 per year for services as CEO, annual compensation of $57,200 per year for services as CFO.

 

The Company is authorized to issue up to 490,000,000 shares of Common Stock, of which 157,498,515 shares were issued and outstanding as of March 31, 2024, and December 31, 2023.

 

(5) Property and Equipment

 

Major classes of property and equipment together with their estimated useful lives, consisted of the following:

 Schedule of Property and Equipment

		Years		March 31, 2024				December 31, 2023
Equipment		3-5		$	119,386			$	119,386
Office furniture		7			21,681				21,681
Leasehold improvements		3			10,656				10,656
Property and equipment, gross					151,723				151,723
Less accumulated depreciation and amortization					(148,714	)			(148,469	)
Net property and equipment				$	3,009			$	3,254

 

The amount of Depreciation Expense recorded for the period ending March 31,2023 and March 31, 2024 was $245 and $245.

 

(6) Deferred Revenue

 

Prepaid subscriptions for services are deferred and are amortized as services are provided.

 

Summary of Deferred Revenue

		March 31, 2024				December 31, 2023
Beginning Balance		$	42,335				0
Prepayment Received		$	0			$	254,010
Less Recognized Revenue		$	(42,335	)		$	(211,675	)
Deferred Revenue		$	0			$	42,335

 

(7) Subsequent Events and Contingencies

 

The Company has evaluated subsequent events from the date on the balance sheet through the date these financial statements are being filed with the Securities and Exchange Commission. No additional material events or transactions have occurred during this subsequent event reporting period which required recognition or disclosure in the financial statements.

 

(8) System Integration

 

In June of 2023 the company started the arduous task of reconstructing our back-end systems architecture. This task was initialized to exploit the latest technological advances within our space, utilizing our data center efficiencies to further streamline our processes. The process has not been completed as of March 31, 2024. Since it has not been completed, the Company has been accumulating its cost in other assets and when completed will be capitalized and depreciated over time. The company has accumulated at this time $100,000 in costs on the balance sheet.

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND RESULTS OF OPERATION Back to Table of Contents

 

Some of the statements contained in this quarterly report of Data Call Technologies, Inc., Nevada corporation (hereinafter referred to as “we”, “us”, “our”, “Company” and the “Registrant”) discuss future expectations, contain projections of our plan of operation or financial condition or state other forward-looking information. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use of words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. From time to time, we also may provide forward-looking statements in other materials we release to the public.

 

Data Call Technologies, Inc. (“Data Call,” or the “Company”) was incorporated under the laws of the State of Nevada as Data Call Wireless on April 4, 2002. On March 1, 2006, we changed our name to Data Call Technologies, Inc.

 

Our mission is to continue to exponentially grow our offering of our proprietary subscription services by integrating cutting-edge information/content delivery solutions to and within the control of retail and commercial resellers CMS manufacturers and end-users. Our Company’s services put its clients in control of real-time news, sports, weather and other dynamic content, displayed within one or multiple locations, spanning from local, regional to global end points, through Digital Signage and Kiosk networks.

 

Our business plan continues to focus on growing our client base by effectively offering this real-time and licensed information/content displayed through Digital Signage and Kiosk networks, seeking to improve the delivery, security, and variety of information/content services to the growing Digital Signage and Kiosk community.

 

Overview - What Is Digital Signage?

 

You’ve seen Digital Signage, it’s everywhere. Whether you’re shopping, trying to find your way through the airport, in a taxi, or even along the highway on your way home, it’s there. LED and LCD displays are continually replacing printed marketing materials such as signs and placards, as well as the old-school whiteboard, for product and corporate branding, marketing and assisted selling. The appeal of instantly updating product videos and promotional messages on one or thousands of remotely located displays is driving the adoption of this growing marketing platform. Digital Signage presentations are typically comprised of repeating loops (playlists) of information used to brand, market or sell the owner’s products and services or corporate messaging. But once viewed, this information becomes repetitive and the viewer tunes it out, resulting in low retention of the client’s message. As digital signage has matured, the characteristics of the digital signage presentations have taken center-stage requiring fresh, relevant and dynamic content mixed within the marketing messages. Dynamic Content is key.

 

Digital Signage Matures

 

We are experiencing the Digital Signage Industry (back then called connected signage) steadily maturing and Data Call, through its multiple industry specific relationships, continues its engagement and influence in the direction of the Digital Signage industry. Data Call has been performing in this space for well over a decade. Our company has staked claim in assisting the industry’s birth and maintains its prime position to enjoy and benefit from this industry’s growth.

 

Early on, a business desiring to achieve commercial benefits from the use of digital signage was often confronted by a plethora of hardware and software solutions, all offering their own “standard” of what digital signage should be. Typical customers for digital signage were most-often offered expensive hardware to present digital signage with a very minimalistic content management solution (CMS), lacking the full package of content with which to build and tailor their systems for their target customer base.

 

Those early adopters of digital signage, often had to realize that their digital signage hardware vendors lacked the acumen to fully provide best practice of content strategy. The tools to manage content were provided, but not the content. From our inception, Data Call recognized that early signage providers and their typical customers lacked that key component - the offering of a comprehensive content package.

 

As the cost of platforms supporting infrastructure and digital displays have fallen significantly, digital signage has become more accessible to a wider range of potential users. Companies in our industry have come to understand, as we have preached since our inception, that the cost of Data Call’s integrated, content-flexible subscription service is extremely cost effective - and licensed for redistribution over their networks. The benefit that Data Call continues to provide our client base, in the form of ongoing content development, is expected to continue to provide our customers with desirable user-friendly content and content services.

 

The Need for Speed - Active Content

 

Active and dynamic content is an integral part of digital signage presentations that must be constantly updated with timely and relevant information to attract and retain target viewers to the products, services, or messaging offered by typical Digital Signage clients. For instance, a typical presentation may contain ten 15-second loops that provide the primary message of the presentation, but the active dynamic content, such as that provided by Data Call, is updated with new information constantly throughout the day. Those seeking to add active and dynamic content to their digital signage presentations are educated and advised to subscribe to Data Call’s dynamic content rather than attempting to illegally “cut and paste” or “scrape” broadcast content or RSS Feeds “not for commercial use” of others into their digital signage presentation.

 

 

By integrating Data Call’s content as a meaningful component of digital signage presentations, our clients can legally provide the entertainment and information content necessary to enhance the target customer’s information retention without disrupting the core message of the presentation. Some of the Infotainment categories provided by Data Call include news, sports, weather, financial data, the latest traffic alerts, among many others. With such a broad range of offerings, our clients have access to this active and dynamic content they need, regardless of the target customers and market they are addressing.

 

Our Business Opportunities

 

Our many opportunities for client development in the digital signage industry are growing exponentially. While many companies in our industry have traditionally outsourced all or part of their content creation, Data Call serves as a provider of dynamic active content to clients on a tailored basis. Whether a client desires general entertainment information for customers, such as news, sports, stock market quotes, etc. or location-specific content, such as local weather, traffic, etc., our research and experience has validated our long-held mantra that dynamic content draws and retains our clients’ target viewers to their digital signage and keeps viewers engaged throughout the client presentation.

 

Since our inception, management has developed and maintains strong relationships working with the leaders and associations of the digital signage industry. Collaborative efforts have successfully created, now industry standard, data formats and methods to facilitate the delivery of our dynamic content more easily and efficiently for integration into most hardware and software products.

 

Partners, Not Customers

 

Data Call’s enduring approach to our clients is to build long-lasting partnerships by creating client relationships that we believe are unique in the digital signage industry. We understand that each client has their own content requirements. In developing dynamic content for individual digital signage clients, we have identified three content-related factors: (i) reliability; (ii) objectivity; and (iii) ease of implementation. To address the reliability requirement, we are engaged in multiple license arrangements with the leading providers of news, weather, sports and financial information, among other client-desired content rather than either: (i) downloading and repackaging content sourced from the Internet (which may be illegal); or (ii) Scraping RSS feeds from news organizations (which may come and go at the provider’s whim - not to mention this practice is also illegal).

 

Licensing data from these premier providers has also served us by satisfying the second criteria, objectivity. Because it is commonly recognized that Internet content may often be unreliable, unverifiable and biased, early on, we determined that we could not simply use unfiltered Internet content for delivery to our clients. Our proper licensing of data facilitates the standard of delivery and implementation by our client/partners. Data Call does the heavy lifting by taking care of not just the licensing, but the proper formatting of that data for consumption by the industry utilizing our multiple formats offered. Data Call has understood that it’s Digital Signage and Kiosk clients needed a more complete service than to endeavor the sourcing of active content from multiple vendors. As a result, our flexible content plans permit our clients to do “one stop shopping” for all dynamic content requirements by licensing subscriptions through us.

 

We empower our clients to receive customized dynamic content subscriptions to be displayed in a multitude of ways (banners, tickers, scrolls or visualizations integrated with the overall presentations). We have created “Playlist Ready” offerings and produced and distribute multiple sets of common data layouts in the industry-standard formats such as XML (extensible markup language), JSON (JavaScript Object Notation), JPEG (Joint Photographic Experts Group), RSS (Rich Site Summary, often called Really Simple Syndication), MRSS (Media RSS) and MPEG (Moving Pictures Expert Group). With the advent of HTML5 (5th version of Hypertext Markup Language), even more delivery methods have been made available to our clients, many of whom have found any one or a combination of these formats to be easily integrated into their products. Nevertheless, we have also produced customized data formats and visualizations to the exact and specific requirements of our clients/partners, which, we believe ensures a higher level of reliability and ease of implementation.

 

 

Market demand, opportunity and technology converge at a single point in time, and Data Call continues hold its position. Our integrity persistently builds our business. Digital signage platforms steadily evolve to meet mass market requirements, costs for hardware and software are falling to the point of becoming commodities and the markets for digital signage are clarifying through historical trial and error.

 

Business Operations

 

In March of 2017, we released our Direct Lynk Manager (DLManager) customer portal at the Digital Signage Expo in Las Vegas. The DLManager incorporates the Direct Lynk Media platform with major enhancements and options that enable the client to self-serve in a webstore environment. This is a moderated space that allows proper “white glove” treatment by our staff that our clients have come to expect and appreciate. Once the client is comfortable with navigation of the portal, they may then set up multiple groups and displays within their account for testing results in a demo fashion free of charge. Upon completion of their content selections and distribution points, the client may purchase the proper number of licenses needed to support their sections through various plans offered within the portal.

 

Some of the current types of data and information, for which a client may subscribe to through the Direct Lynk System, in multiple formats include:

 

-	Headline News top world and national news headlines;
-	Business News top business headlines;
-	Financial Highlights world-based financial indicators;
-	Entertainment News top entertainment headlines;
-	Health/Science News top science/health headlines;
-	Strange News - latest off-beat news headlines;
-	Sports Headlines top sports headlines

 

	-	AP News Minute Video
	-	AP This Day In History Videos
	-	AP Entertainment Minute Videos

 

-	Latest Sports Lines - latest sports odds for NFL, NBA, NHL, NCAA Football and NCAA Basketball;
-	National Football League latest game schedule and in-game updates;
-	National Basketball Association - latest game schedule and in-game updates;
-	Major League Baseball - latest game schedule and in-game updates;
-	National Hockey League - latest game schedule and in-game updates;
-	NCAA Football - latest game schedule and in-game updates;
-	NCAA Men’s Basketball - latest game schedule and in-game updates;
-	Professional Golf Association top 10 leaders continuously updated throughout the four-day tournament:
-	NASCAR top 10 race positions updated every 20 laps throughout the race:
-	Traffic Mapping;
-	Animated Doppler Radar and Forecast Maps;
-	Listings of the day’s horoscopes;
-	Listings of the birthdays of famous persons born on each day;
-	Health and Wellness
-	Listings of historical events which occurred on each day in history; and
-	Localized Traffic and Weather Forecasts.

 

 

We continually add different types of content per client requests. We provide our DLM services to our clients and other potential customers through the Internet. All DLM Services are real-time information services providing a wide range of up-to-date information for display. These services are designed to work concurrently with customers’ existing digital signage systems. The Direct Lynk Messenger product is scheduled to be sunset within the next 12 months, as DLMedia gradually moves into a legacy status with the DLManager portal taking the forefront.

 

Since our inception in 2002, we have come to deeply understand that this industry provides an exciting platform for advertisers, including our clients, to promote, inform, educate, and entertain their customers and employees regarding their business products, services, and corporate communications. Through Digital Signage, and Digital Out of Home (DOOH) businesses can use a single display or a complex, networked series of displays and video walls to market their products and services directly at their facilities and elsewhere to their customers and employees in real time. Additionally, because the core of Digital Signage advertising takes place in real time, businesses can change their marketing and messaging efforts literally from moment to moment and over the course of a day or such other period as they may determine.

 

We believe that the ability of our clients to display in real-time, the information and content we deliver, better allows our clients to tailor their products, services, advertising and messaging to individual and target-group customers, thereby advertising and offering, for example, inventory and sales discounts that may be designed to appeal to those individual customers and target customer groups, increasing sales and revenues. We believe that the benefits of on-site, real-time Digital Signage displays compared to regular print or video advertising are substantial and include, among other advantages, being able to immediately change digitally displayed images/advertisements depending on our client’s customers own situation, not simply being restricted by in-store print circulars produced days, weeks or even months in advance, which may become stale or obsolete prior to or shortly after publication and dissemination.

 

We specialize in enabling our clients to create their own Digital Signage content feeds which are delivered online directly to their chosen, electronic digital display devices at their various facilities. The only requirements our clients must have are: (i) a supported, third-party Digital Signage or Kiosk equipment solution - through a CMS or a standalone player, or similar device, which receives the data from our servers online; and (ii) an Internet connection. Our DLM System is supported by various, readily available third-party systems, varying in costs from inexpensive monthly cloud-based licenses to much more extensive and expensive content management/playback systems. Our Systems allow customers to select from their pre-determined data and information subscriptions offered. We enable our clients to also select location specific content they wish to receive based on how and where their Digital Signage network is configured.

 

In December of 2017 the company completed the arduous task of reconstructing our back-end systems architecture. This task was initialized to exploit the latest technology advances within our space, utilizing our data center efficiencies to further streamline our processes. One of the greater culminations of this effort yielded the Data Call API (Application Programming Interface) allowing our enterprise channel partners to embed our products within their offerings to further widen our reach.

 

Data Call continues to grow its client base through relationships that are gained through industry events such as seminars and trade shows. Our company has become a leader in syndicated content and custom content development for Digital Signage. Our licensed content is utilized on thousands of screens in hundreds of deployments. We are truly excited of our continued growth through our resellers, CMS manufacturers and end users.

 

Results of Operations

 

The following discussion should be read in conjunction with our financial statements.

 

During the last twelve months, the Company has implemented cost management measurements to review monthly expenditures. We will continue these efforts to streamline operations, as we focus on increasing sales and gross revenues over the next twelve months. We do not currently have any plans to increase our monthly expenditures or number of employees. We currently offer our Direct Lynk Messenger and DLMedia services to our clients and other potential customers through the Internet. Both DLM Services are Digital Signage products and real-time information services which provides a wide range of up-to-date information for display. Both DLM services are able to work concurrently with customers’ existing digital signage systems. The Direct Lynk Messenger product is slowly becoming a legacy product with the DLMedia product in the forefront.

 

 

We continually add subscribers for our technology throughout and intend to build and increase such subscribers moving forward.

 

Three Months Ended March 31, 2024, Compared to Three Months Ended March 31, 2023

 

Our revenues for the three months ended March 31, 2024, were $138,536 compared to $139,067 for the three-month period ended March 31, 2023, representing a decrease of $531 or .382% during the same period in the prior year. The decrease was mainly due to not all of the renewals being completed during the first quarter of the new year.

 

Costs of sales for the three months ended March 31, 2024, were $52,726 compared to $50,087 for the three-month period ended March 31, 2023, which represents an increase of $2,639. Costs of sales increased due to the amount of bandwidth required to provide the subscription services.

 

Gross margins for the three months ended March 31, 2024, were $85,810 compared to $88,980, or 61.9% for the three-month period ended March 31, 2024, as compared to 64.0% for the three-month period ending March 31, 2023.

 

Selling, General and Administrative expenses for the three months ended March 31, 2024, were $80,953 compared to $98,510 for the three-month period ended March 31, 2023, representing a decrease of $17,557 from the same period in the prior year. The decrease in SG&A expenses is mainly due to a decrease in expenses and a reduction in the costs of stock. Net income for the three months ended March 31, 2024, was $4,613 compared to a net loss of $9,771 for the three-month period ended March 31, 2023. The Company’s increase in net income was due to the reduction of expenses.

 

Liquidity and Capital Resources

 

We had total current assets of $60,525 consisting of $6,432 of cash and $54,093 in accounts receivable. As of March 31, 2024, we had total current liabilities of $102,796, which represented $49,906 in accounts payable, and accrued payables related party of $52,890.

 

We had negative working capital of $42,271 and an accumulated deficit of $9,979,855 on March 31, 2024.

 

The Company had net cash provided by (used in) $(29,877) of cash for our operating activities during the three-month period ended March 31, 2024, which was mainly due to a net income of $4,613, accounts payable related party of $28,519, other current liabilities of $23,106, accounts receivables of $(28,735), accrued expenses of $1,364, depreciation of $245 and deferred revenue of $(42,335).

 

Due to our declining financial position, we do see a need to raise additional funds. We will continue to generate revenues and generate new revenues to try support our operations.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Back to Table of Contents

 

We have not entered into, and do not expect to enter into, financial instruments for trading or hedging purposes.

 

 

ITEM 4. CONTROLS AND PROCEDURES Back to Table of Contents

 

(a) Evaluation of disclosure controls and procedures.

 

Our management, with the participation of our Principal Executive Officer and our Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2024 (the “Evaluation Date”). The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of March 31, 2024, our Principal Executive Officer and Principal Financial Officer concluded that, as of such date, our disclosure controls and procedures were not effective at the reasonable assurance level as described in our Annual Report on Internal Control Over Financial Reporting filed in our Annual Report on Form 10-K.

 

Our principal executive officers do not expect that our disclosure controls or internal controls will prevent all errors and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives and our principal executive officers have determined that our disclosure controls and procedures are effective at doing so, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

(b) Changes in Internal Control over Financial Reporting

 

There have been no significant changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) or in other factors that occurred during the three-month period ended March 31, 2024, that have significantly affected, or are reasonably likely to significantly affect, our internal control over financial reporting.

 

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS Back to Table of Contents

 

None.

 

ITEM 1A. RISK FACTORS Back to Table of Contents

 

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1. Description of Business, subheading Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K is not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS Back to Table of Contents

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES Back to Table of Contents

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURE Back to Table of Contents

 

None.

 

ITEM 5. OTHER INFORMATION Back to Table of Contents

 

None.

 

ITEM 6. EXHIBITS Back to Table of Contents

 

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

 

Exhibit No.		Description
31.1		Certification of CEO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of CFO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of CEO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of CFO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURES

 

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

 

DATA CALL TECHNOLOGIES, INC.

 

By:	/s/ Timothy E. Vance
	Timothy E. Vance
	Chief Executive Officer
	(Principal Executive Officer)

 

Date: May 17, 2024

 

By:	/s/ Gary Woerz
	Gary Woerz
	Chief Financial Officer
	(Principal Financial and Principal Accounting Officer)

 

Date: May 17, 2024

 

 

 

Exhibit 31.1

 

CERTIFICATION

 

I, Timothy E. Vance, certify that:

 

1. I have reviewed this quarterly report of Data Call Technologies, Inc.;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Date: May 17, 2024

 

/s/ Timothy E. Vance
CEO

 

 

 

Exhibit 31.2

 

CERTIFICATION

 

I, Gary D. Woerz, certify that:

 

1. I have reviewed this quarterly report of Data Call Technologies, Inc.;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Date: May 17, 2024

 

/s/ Gary D. Woerz
CFO

 

 

 

Exhibit 32.1

 

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

 

In connection with the quarterly report of Data Call Technologies, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2024 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Timothy E. Vance, CEO of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

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

 

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

 

/s/ Timothy E. Vance
Timothy E. Vance
CEO

 

Dated: May 17, 2024

 

A signed original of this written statement required by Section 906 has been provided to Data Call Technologies, Inc. and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of Data Call Technologies, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2024 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Gary Woerz, CFO and Director of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

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

 

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

 

/s/ Gary D. Woerz
Gary D. Woerz
CFO

 

Dated: May 17, 2024

 

A signed original of this written statement required by Section 906 has been provided to Data Call Technologies, Inc. and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

v3.24.1.1.u2

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 17, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	000-54696
Entity Registrant Name	DATA CALL TECHNOLOGIES, INC.
Entity Central Index Key	0001321828
Entity Tax Identification Number	30-0062823
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	700 South Friendswood Drive
Entity Address, Address Line Two	Suite E
Entity Address, City or Town	Friendswood
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77546
City Area Code	(866)
Local Phone Number	219-2025
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		157,498,515

v3.24.1.1.u2

Condensed Balance Sheets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash	$ 6,432	$ 36,309
Accounts receivable	54,093	25,358
Total current assets	60,525	61,667
Property and equipment	151,723	151,723
Less accumulated depreciation and amortization	(148,714)	(148,469)
Net property and equipment	3,009	3,254
Other asset in house system	100,000	100,000
Other assets	800	800
Total assets	164,334	165,721
Current liabilities:
Accrued expenses	21,720	20,356
Deferred revenue		42,335
Total current liabilities	102,796	108,796
Total liabilities	102,796	108,796
Stockholders’ equity:
Common stock, $0.001 par value. Authorized 490,000,000 shares: 157,498,515 shares issued and outstanding at March 31, 2024 and December 31, 2023	157,498	157,498
Additional paid-in capital	9,883,085	9,883,085
Accumulated deficit	(9,979,855)	(9,984,468)
Total stockholders’ equity	61,538	56,925
Total liabilities and stockholders’ equity	164,334	165,721
Series A Convertible Preferred Stock [Member]
Stockholders’ equity:
Preferred stock, value	800	800
Series B Convertible Preferred Stock [Member]
Stockholders’ equity:
Preferred stock, value	10	10
Nonrelated Party [Member]
Current liabilities:
Accounts payable	49,906	43,454
Related Party [Member]
Current liabilities:
Accounts payable	$ 31,170	$ 2,651

v3.24.1.1.u2

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	490,000,000	490,000,000
Common stock, shares issued	157,498,515	157,498,515
Common stock, shares outstanding	157,498,515	157,498,515
Series A Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, convertible percentage	12.00%	12.00%
Preferred stock, shares issued	800,000	800,000
Preferred stock, shares outstanding	800,000	800,000
Series B Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	10,000	10,000
Preferred stock, shares outstanding	10,000	10,000

v3.24.1.1.u2

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues
Sales	$ 138,536	$ 139,067
Cost of sales	52,726	50,087
Gross margin	85,810	88,980
Selling, general and administrative expenses	80,953	98,510
Depreciation and amortization expense	245	245
Total operating expenses	81,198	98,755
Other (income) expense
Interest income	(1)	(4)
Total expenses	81,197	98,751
Net income (loss) before income taxes	4,613	(9,771)
Provision for income taxes
Net income (loss)	$ 4,613	$ (9,771)
Net loss applicable to common shareholders - basic	$ 0.00	$ 0.00
Net loss applicable to common shareholders - diluted	$ 0.00	$ 0.00
Weighted average common shares:
Basic	157,498,515	157,498,515
Diluted	579,710,145	157,498,515

v3.24.1.1.u2

Condensed Statement of Shareholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member] Series A Preferred Stock [Member]	Preferred Stock [Member] Series B Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 800	$ 10	$ 157,498	$ 9,881,902	$ (9,966,935)	$ 73,275
Balance, shares at Dec. 31, 2022	800,000	10,000	157,498,515
Sharea issued for services				877
Net Income (loss)					(9,771)	(9,771)
Balance at Mar. 31, 2023	$ 800	$ 10	$ 157,498	9,882,789	(9,976,706)	64,391
Balance, shares at Mar. 31, 2023	800,000	10,000	157,498,515
Balance at Dec. 31, 2023	$ 800	$ 10	$ 157,498	9,883,085	(9,984,468)	56,925
Balance, shares at Dec. 31, 2023	800,000	10,000	157,498,515
Net Income (loss)					4,613	4,613
Balance at Mar. 31, 2024	$ 800	$ 10	$ 157,498	$ 9,883,085	$ (9,979,855)	$ 61,538
Balance, shares at Mar. 31, 2024	800,000	10,000	157,498,515

v3.24.1.1.u2

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income (loss)	$ 4,613	$ (9,771)
Adjustments to reconcile net income to net cash (used in) provided be operating activities:
Depreciation	245	245
Stock based compensation		887
Changes in operating assets and liabilities:
Accounts receivable	(28,735)	13,514
Prepaid expenses		1,400
Accounts payable	6,452	11,034
Accrued payable - related party	28,519
Accrued expenses - related party	1,364	23
Deferred revenue	(42,335)	232,842
Net cash used in operating activities	(29,877)	250,174
Cash flows from investing activities
Purchase of property and equipment
Net cash used in investing activities
Cash flows from financing activities:
Advance from related party		2,123
Net cash provided by financing activities		2,123
Net increase (decrease) in cash	(29,877)	252,297
Cash at beginning of year	36,309	20,727
Cash at end of period	6,432	273,024
Supplemental Cash Flow Information:
Cash paid for interest
Cash paid for taxes

v3.24.1.1.u2

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies   Organization, Ownership and Business   Data Call Technologies, Inc. (the “Company”) was incorporated under the laws of the State of Nevada in 2002. The Company’s mission is to integrate cutting-edge information delivery solutions that are currently deployed by the media, and put them within the control of retail and commercial enterprises. The Company’s software and services put its clients in control of real-time advertising, news, and other content, including emergency alerts.   The accompanying unaudited financial statements have been prepared in accordance with U. S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month period ending March 31, 2024 are not indicative of the results that may be expected for the year ending December 31, 2024.   As contemplated by the Securities and Exchange Commission (SEC) under Rules of Regulation S-X, the accompanying financial statements and related footnotes have been condensed and do not contain certain information that will be included in the Company’s annual financial statements and footnotes thereto. For further information, refer to the Company’s audited financial statements and related footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2023.   Cash and Cash Equivalents   For purposes of the statement of cash flows, the Company considers all highly liquid investment instruments purchased with original maturities of three months or less to be cash equivalents. There were no cash equivalents as of March 31, 2024, and December 31, 2023.   Revenue Recognition   January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification (ASC), Revenue Recognition. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606. The impact of adopting the new revenue standard was not material to our financial statements and there was no adjustment to beginning retained earnings on January 1, 2018.   Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.   We determine revenue recognition through the following steps:   ● identification of the contract, or contracts, with a customer;     ● identification of the performance obligations in the contract;     ● determination of the transaction price;     ● allocation of the transaction price to the performance obligations in the contract; and     ● recognition of revenue when, or as, we satisfy a performance obligation.   Company recognizes revenues based on monthly fees for services provided to customers. Some customers prepay for annual services and the Company defers such amounts and amortizes them into revenues as the service is provided.   Accounts Receivable   Accounts receivable consist primarily of trade receivables. The Company provides an allowance for doubtful trade receivables equal to the estimated uncollectible amounts. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer’s trade accounts receivable. The allowance for doubtful trade receivables was $0 as of March 31, 2024, and December 31, 2023, as we believe all of our receivables are fully collectable.   Property, Equipment and Depreciation   Property and equipment are recorded at cost less accumulated depreciation. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, with any resultant gain or loss being recognized as a component of other income or expense. Depreciation is computed over the estimated useful lives of the assets (3-5 years) using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes. Maintenance and repairs are charged to operations as incurred.     Advertising Costs   The cost of advertising was $0.   Research and Development   Research and development costs were $0.   Product Development Costs   Product development costs consist of cost incurred to develop the Company’s website and software for internal and external use. All system enhancement costs were accumulated and on the balance sheet for a total of $100,000.   Income Taxes   The Company is a taxable entity and recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect when the temporary differences reverse. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the enactment date of the rate change. A valuation allowance is used to reduce deferred tax assets to the amount that is more likely than not to be realized.   Use of Estimates   The preparation of financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from those estimates.   Management’s Estimates and Assumptions   The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses.   Stock-based Compensation.   We account for stock-based compensation in accordance with “FASB ASC 718-10.” Stock-based compensation expense recognized during the period is based on the value of the portion of share-based awards that are ultimately expected to vest during the period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The fair value of restricted stock is determined based on the number of shares granted and the closing price of the Company’s common stock on the date of grant. Compensation expense for all share-based payment awards is recognized using the straight-line amortization method over the vesting period.   Basic and Diluted Net Income (Loss) per Share Calculations   Income (Loss) per Share dictates the calculation of basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The share for convertible preferred shares were used in the calculation of the income per share.   For the three months ended March 31, 2024, the Company has excluded 800,000 series A preferred shares convertible into 579,710,145 shares of common stock.   For the three months ended March 31, 2023, the Company has excluded 800,000 series A preferred shares convertible into 579,710,145 shares of common stock, During the three months ended Marh 31, 2023, the above-mentioned shares are not included in the calculation for diluted earnings per share due to the Company’s net loss because their impact on the loss per share is anti-dilutive.   Dilutive per share amounts are computed using the weighted-average number of common shares outstanding and potentially dilutive securities, using the treasury stock method if their effect would be dilutive.     Fair Value of Financial Instruments   The Company estimates the fair value of its financial instruments using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the Company estimates of fair value are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumption and/or estimation methodologies may have a material effect on the estimated fair value amounts. The interest rates payable by the Company on its notes payable approximate market rates. The Company believes that the fair value of its financial instruments comprising accounts receivable, notes receivable, accounts payable, and notes payable approximate their carrying amounts.   Level 1: Quoted prices in active markets for identical assets or liabilities.   Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.   Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable.   The following table presents the Company’s Assets & Liabilities within the fair value hierarchy utilized to measure fair value on a recurring basis as of March 31, 2024, and December 31, 2023:  Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis     (Level 1)     (Level 2)     (Level 3)   March 31, 2024   $       0     $      0     $       0   December 31, 2023   $ 0     $ 0     $ 0     Recent Accounting Pronouncements   The Company has reviewed all other recently issued, but not yet effective, accounting pronouncements, and does not believe the future adoption of any such pronouncements will have a material impact on its financial condition or the results of its operations.   The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations,

v3.24.1.1.u2

Going Concern	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	(2) Going Concern   Although our audited financial statements for the years ended December 31, 2023 and December 31, 2022 were prepared under the assumption that we would continue our operations as a going concern, the report of our independent registered public accounting firm that accompanies our financial statements for the years ended December 31, 2023 and December 31, 2022 contains a going concern qualification in which such firm expressed substantial doubt in our ability to continue as a going concern without additional capital from becoming available, based on the financial statements at that time. Specifically, as noted above, we have incurred an operating loss this year and have negative working capital. There are no assurances that such financing, if necessary, will be available to us at all or will be available in sufficient amounts or on reasonable terms. Our financial statements do not include any adjustments that may result from the outcome of this uncertainty.

v3.24.1.1.u2

Related Party Transactions	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	(3) Related Party Transactions   During the second quarter of 2018, the Company issued unregistered shares as follows: (i) 3,500,000 restricted shares to Tim Vance, the Company’s CEO, in connection with the execution of a new 5-year employment agreement; and 2,000,000 restricted shares to Gary Woerz, the Company’s CFO, in connection with the execution of a new 5-year employment agreement. The restricted shares were valued at $0.0034 per share using the closing price of the stock on the date of grant. The total expense associated with the issuances is calculated at $18,700 to be recognized over the 5-year term of the agreements. The Company recorded $0 (March 31, 2023: $887) in stock-based compensation expense, in relation to those shares for the quarter ended March 31, 2024. The April 30, 2018 employment agreement calls for a 5-year term ending April 30, 2024, annual compensation of $98,000 per year for services as CEO, annual compensation of $57,200 per year for services as CFO. For the period ending March 31, 2023 and March 31, 2024 the CEO was paid $24,500 and $24,500 and the CFO was paid $15,187 and $14,300 respectively.   As of March 31, 2024, and December 31, 2023, the total due to management for past accrued salaries is $20,000 and 20,000 respectively.   As of March 31, 2024, and December 31, 2023, the total due to management included in accounts payable is $31,170 and $2,651.

v3.24.1.1.u2

Capital Stock, Warrants and Options	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Capital Stock, Warrants and Options	(4) Capital Stock, Warrants and Options   Series A Preferred Stock   The Company is authorized to issue up to 10,000,000 shares of Series A Preferred Stock, $0.001 par value per share, of which 800,000 shares are outstanding at March 31, 2024 and December 31, 2023. The Preferred Stock may be issued in one or more series, the terms of which may be determined at the time of issuance by the Board of Directors, without further action by stockholders, and may include voting rights (including the right to vote as a series on matters), preferences as to dividends and liquidation, conversion, redemption rights and sinking fund provisions.   Each share of Series A Preferred Stock shall bear a preferential dividend of twelve percent (12%) per year and is convertible into a number shares of the Company’s common stock, par value $0.001 per share (“Common Stock”) based upon Fifty (50%) percent of the average closing bid price of the Common Stock During the ten (10) day period prior to the conversion. The Company has not declared or accrued any dividends and as of March 31, 2024, and 2023 un accrued and undeclared dividends were $1,200.   Series B Preferred Stock   During the quarter ended September 30, 2014, the Company amended its Articles of incorporation to authorize 1,000,000 shares of Series B Preferred Stock at a par value of $0.001 and issued 10,000 shares. The Series B shares were valued at $76,000 and were expensed during 2014. The Series B Preferred Stock may be issued to one or series by the terms of which may be and may include preferences as to dividends and liquidation, conversion, redemption rights and sinking fund provisions. The Series B Preferred Shares have the right to vote in the aggregate, on all shareholder matters votes equal to 51% of the total shareholder vote on any and all shareholder matters. The Series B Preferred Stock will be entitled to this 51% voting right no matter how many shares of common stock or other voting stock of Data Call Technology stock is issued and outstanding in the future.     During the second quarter of 2018, the Company issued unregistered shares as follows: (i) 3,500,000 restricted shares to Tim Vance, the Company’s CEO, in connection with the execution of a new 5-year employment agreement; and 2,000,000 restricted shares to Gary Woerz, the Company’s CFO, in connection with the execution of a new 5-year employment agreement. The restricted shares were valued at $0.0034 per share using the closing price of the stock on the date of grant. Total expense associated with the issuances is calculated at $18,700 to be recognized over the 5-year term of the agreements. The Company recorded $0 (March 31, 2023: $887) in stock-based compensation expense, in relation to those shares for the quarter ended March 31, 2019. The April 30, 2018 employment agreements calls for a 5-year term ending April 30, 2024, annual compensation of $98,000 per year for services as CEO, annual compensation of $57,200 per year for services as CFO.   The Company is authorized to issue up to 490,000,000 shares of Common Stock, of which 157,498,515 shares were issued and outstanding as of March 31, 2024, and December 31, 2023.

v3.24.1.1.u2

Property and Equipment	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment	(5) Property and Equipment   Major classes of property and equipment together with their estimated useful lives, consisted of the following:  Schedule of Property and Equipment     Years   March 31, 2024     December 31, 2023   Equipment   3-5   $ 119,386     $ 119,386   Office furniture   7     21,681       21,681   Leasehold improvements   3     10,656       10,656   Property and equipment, gross         151,723       151,723   Less accumulated depreciation and amortization         (148,714 )     (148,469 ) Net property and equipment       $ 3,009     $ 3,254     The amount of Depreciation Expense recorded for the period ending March 31,2023 and March 31, 2024 was $245 and $245.

v3.24.1.1.u2

Deferred Revenue	3 Months Ended
	Mar. 31, 2024
Deferred Revenue
Deferred Revenue	(6) Deferred Revenue   Prepaid subscriptions for services are deferred and are amortized as services are provided.   Summary of Deferred Revenue     March 31, 2024     December 31, 2023   Beginning Balance   $ 42,335       0   Prepayment Received   $ 0     $ 254,010   Less Recognized Revenue   $ (42,335 )   $ (211,675 ) Deferred Revenue   $ 0     $ 42,335

v3.24.1.1.u2

Subsequent Events and Contingencies	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events and Contingencies	(7) Subsequent Events and Contingencies   The Company has evaluated subsequent events from the date on the balance sheet through the date these financial statements are being filed with the Securities and Exchange Commission. No additional material events or transactions have occurred during this subsequent event reporting period which required recognition or disclosure in the financial statements.

v3.24.1.1.u2

System Integration	3 Months Ended
	Mar. 31, 2024
System Integration
System Integration	(8) System Integration   In June of 2023 the company started the arduous task of reconstructing our back-end systems architecture. This task was initialized to exploit the latest technological advances within our space, utilizing our data center efficiencies to further streamline our processes. The process has not been completed as of March 31, 2024. Since it has not been completed, the Company has been accumulating its cost in other assets and when completed will be capitalized and depreciated over time. The company has accumulated at this time $100,000 in costs on the balance sheet.

v3.24.1.1.u2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Organization, Ownership and Business	Organization, Ownership and Business   Data Call Technologies, Inc. (the “Company”) was incorporated under the laws of the State of Nevada in 2002. The Company’s mission is to integrate cutting-edge information delivery solutions that are currently deployed by the media, and put them within the control of retail and commercial enterprises. The Company’s software and services put its clients in control of real-time advertising, news, and other content, including emergency alerts.   The accompanying unaudited financial statements have been prepared in accordance with U. S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month period ending March 31, 2024 are not indicative of the results that may be expected for the year ending December 31, 2024.   As contemplated by the Securities and Exchange Commission (SEC) under Rules of Regulation S-X, the accompanying financial statements and related footnotes have been condensed and do not contain certain information that will be included in the Company’s annual financial statements and footnotes thereto. For further information, refer to the Company’s audited financial statements and related footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2023.
Cash and Cash Equivalents	Cash and Cash Equivalents   For purposes of the statement of cash flows, the Company considers all highly liquid investment instruments purchased with original maturities of three months or less to be cash equivalents. There were no cash equivalents as of March 31, 2024, and December 31, 2023.
Revenue Recognition	Revenue Recognition   January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification (ASC), Revenue Recognition. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606. The impact of adopting the new revenue standard was not material to our financial statements and there was no adjustment to beginning retained earnings on January 1, 2018.   Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.   We determine revenue recognition through the following steps:   ● identification of the contract, or contracts, with a customer;     ● identification of the performance obligations in the contract;     ● determination of the transaction price;     ● allocation of the transaction price to the performance obligations in the contract; and     ● recognition of revenue when, or as, we satisfy a performance obligation.   Company recognizes revenues based on monthly fees for services provided to customers. Some customers prepay for annual services and the Company defers such amounts and amortizes them into revenues as the service is provided.
Accounts Receivable	Accounts Receivable   Accounts receivable consist primarily of trade receivables. The Company provides an allowance for doubtful trade receivables equal to the estimated uncollectible amounts. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer’s trade accounts receivable. The allowance for doubtful trade receivables was $0 as of March 31, 2024, and December 31, 2023, as we believe all of our receivables are fully collectable.
Property, Equipment and Depreciation	Property, Equipment and Depreciation   Property and equipment are recorded at cost less accumulated depreciation. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, with any resultant gain or loss being recognized as a component of other income or expense. Depreciation is computed over the estimated useful lives of the assets (3-5 years) using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes. Maintenance and repairs are charged to operations as incurred.
Advertising Costs	Advertising Costs   The cost of advertising was $0.
Research and Development	Research and Development   Research and development costs were $0.
Product Development Costs	Product Development Costs   Product development costs consist of cost incurred to develop the Company’s website and software for internal and external use. All system enhancement costs were accumulated and on the balance sheet for a total of $100,000.
Income Taxes	Income Taxes   The Company is a taxable entity and recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect when the temporary differences reverse. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the enactment date of the rate change. A valuation allowance is used to reduce deferred tax assets to the amount that is more likely than not to be realized.
Use of Estimates	Use of Estimates   The preparation of financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from those estimates.
Management’s Estimates and Assumptions	Management’s Estimates and Assumptions   The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses.
Stock-based Compensation	Stock-based Compensation.   We account for stock-based compensation in accordance with “FASB ASC 718-10.” Stock-based compensation expense recognized during the period is based on the value of the portion of share-based awards that are ultimately expected to vest during the period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The fair value of restricted stock is determined based on the number of shares granted and the closing price of the Company’s common stock on the date of grant. Compensation expense for all share-based payment awards is recognized using the straight-line amortization method over the vesting period.
Basic and Diluted Net Income (Loss) per Share Calculations	Basic and Diluted Net Income (Loss) per Share Calculations   Income (Loss) per Share dictates the calculation of basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The share for convertible preferred shares were used in the calculation of the income per share.   For the three months ended March 31, 2024, the Company has excluded 800,000 series A preferred shares convertible into 579,710,145 shares of common stock.   For the three months ended March 31, 2023, the Company has excluded 800,000 series A preferred shares convertible into 579,710,145 shares of common stock, During the three months ended Marh 31, 2023, the above-mentioned shares are not included in the calculation for diluted earnings per share due to the Company’s net loss because their impact on the loss per share is anti-dilutive.   Dilutive per share amounts are computed using the weighted-average number of common shares outstanding and potentially dilutive securities, using the treasury stock method if their effect would be dilutive.
Fair Value of Financial Instruments	Fair Value of Financial Instruments   The Company estimates the fair value of its financial instruments using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the Company estimates of fair value are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumption and/or estimation methodologies may have a material effect on the estimated fair value amounts. The interest rates payable by the Company on its notes payable approximate market rates. The Company believes that the fair value of its financial instruments comprising accounts receivable, notes receivable, accounts payable, and notes payable approximate their carrying amounts.   Level 1: Quoted prices in active markets for identical assets or liabilities.   Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.   Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable.   The following table presents the Company’s Assets & Liabilities within the fair value hierarchy utilized to measure fair value on a recurring basis as of March 31, 2024, and December 31, 2023:  Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis     (Level 1)     (Level 2)     (Level 3)   March 31, 2024   $       0     $      0     $       0   December 31, 2023   $ 0     $ 0     $ 0
Recent Accounting Pronouncements	Recent Accounting Pronouncements   The Company has reviewed all other recently issued, but not yet effective, accounting pronouncements, and does not believe the future adoption of any such pronouncements will have a material impact on its financial condition or the results of its operations.   The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations,

v3.24.1.1.u2

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table presents the Company’s Assets & Liabilities within the fair value hierarchy utilized to measure fair value on a recurring basis as of March 31, 2024, and December 31, 2023:  Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis     (Level 1)     (Level 2)     (Level 3)   March 31, 2024   $       0     $      0     $       0   December 31, 2023   $ 0     $ 0     $ 0

v3.24.1.1.u2

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Major classes of property and equipment together with their estimated useful lives, consisted of the following:  Schedule of Property and Equipment     Years   March 31, 2024     December 31, 2023   Equipment   3-5   $ 119,386     $ 119,386   Office furniture   7     21,681       21,681   Leasehold improvements   3     10,656       10,656   Property and equipment, gross         151,723       151,723   Less accumulated depreciation and amortization         (148,714 )     (148,469 ) Net property and equipment       $ 3,009     $ 3,254

v3.24.1.1.u2

Deferred Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Deferred Revenue
Summary of Deferred Revenue	Prepaid subscriptions for services are deferred and are amortized as services are provided.   Summary of Deferred Revenue     March 31, 2024     December 31, 2023   Beginning Balance   $ 42,335       0   Prepayment Received   $ 0     $ 254,010   Less Recognized Revenue   $ (42,335 )   $ (211,675 ) Deferred Revenue   $ 0     $ 42,335

v3.24.1.1.u2

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto Asset [Line Items]
Fair value assets and liabilities	$ 0	$ 0
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto Asset [Line Items]
Fair value assets and liabilities	0	0
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto Asset [Line Items]
Fair value assets and liabilities	$ 0	$ 0

v3.24.1.1.u2

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Cash equivalents	$ 0		$ 0
Allowance for doubtful trade receivables	0		$ 0
Advertising costs	0
Research and Development costs	0
Product development costs	$ 100,000
Common Stock [Member]
Property, Plant and Equipment [Line Items]
Antidilutive earnings excluded from common stock	579,710,145	579,710,145
Series A Preferred Stock [Member]
Property, Plant and Equipment [Line Items]
Antidilutive earnings excluded from common stock	800,000	800,000
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	5 years

v3.24.1.1.u2

Related Party Transactions (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended
	Apr. 30, 2018	Apr. 30, 2018	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2018	Dec. 31, 2023
Related Party Transaction [Line Items]
Accrued salaries			$ 20,000			$ 20,000
Related Party [Member]
Related Party Transaction [Line Items]
Accounts payable - related party			31,170			$ 2,651
Employment Agreement [Member]
Related Party Transaction [Line Items]
Agreement term					5 years
Share-based payment arrangement, nonvested award, cost not yet recognized, amount					$ 18,700
Stock-based compensation			0	$ 887
Restricted Stock [Member] | Employment Agreement [Member]
Related Party Transaction [Line Items]
Shares issued price per share					$ 0.0034
Tim Vance [Member] | Employment Agreement [Member]
Related Party Transaction [Line Items]
Annual compensation	$ 98,000		24,500	24,500
Tim Vance [Member] | Restricted Stock [Member] | Employment Agreement [Member]
Related Party Transaction [Line Items]
Number of restricted shares issued					3,500,000
Agreement term		5 years			5 years
Gary D. Woerz [Member] | Employment Agreement [Member]
Related Party Transaction [Line Items]
Annual compensation	$ 57,200		$ 14,300	$ 15,187
Gary D. Woerz [Member] | Restricted Stock [Member] | Employment Agreement [Member]
Related Party Transaction [Line Items]
Number of restricted shares issued					2,000,000
Agreement term					5 years

v3.24.1.1.u2

Capital Stock, Warrants and Options (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended
	Apr. 30, 2018	Apr. 30, 2018	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2018	Sep. 30, 2014	Dec. 31, 2023
Class of Stock [Line Items]
Common stock, par value			$ 0.001				$ 0.001
Common stock, shares authorized			490,000,000				490,000,000
Common stock, shares issued			157,498,515				157,498,515
Common stock, shares outstanding			157,498,515				157,498,515
Employment Agreement [Member]
Class of Stock [Line Items]
Agreement term					5 years
Expenses to be recognized					$ 18,700
Stock based compensation expense			$ 0	$ 887
Restricted Stock [Member] | Employment Agreement [Member]
Class of Stock [Line Items]
Shares issued price per share					$ 0.0034
Tim Vance [Member] | Employment Agreement [Member]
Class of Stock [Line Items]
Annual compensation	$ 98,000		24,500	24,500
Tim Vance [Member] | Restricted Stock [Member] | Employment Agreement [Member]
Class of Stock [Line Items]
Number of common stock shares issued as restricted shares					3,500,000
Agreement term		5 years			5 years
Gary D. Woerz [Member] | Employment Agreement [Member]
Class of Stock [Line Items]
Annual compensation	$ 57,200		$ 14,300	$ 15,187
Gary D. Woerz [Member] | Restricted Stock [Member] | Employment Agreement [Member]
Class of Stock [Line Items]
Number of common stock shares issued as restricted shares					2,000,000
Agreement term					5 years
Series A Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized			10,000,000				10,000,000
Preferred stock, par value			$ 0.001				$ 0.001
Preferred stock, shares outstanding			800,000				800,000
Preferred stock, dividend percentage			12.00%
Preferred stock, conversion description			convertible into a number shares of the Company’s common stock, par value $0.001 per share (“Common Stock”) based upon Fifty (50%) percent of the average closing bid price of the Common Stock During the ten (10) day period prior to the conversion.
Preferred stock unaccrued and undeclared dividends			$ 1,200				$ 1,200
Preferred stock, shares issued			800,000				800,000
Preferred stock value			$ 800				$ 800
Series B Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized			1,000,000			1,000,000	1,000,000
Preferred stock, par value			$ 0.001			$ 0.001	$ 0.001
Preferred stock, shares outstanding			10,000				10,000
Preferred stock, shares issued			10,000			10,000	10,000
Preferred stock value			$ 10			$ 76,000	$ 10
Preferred Stock voting percentage						51.00%

v3.24.1.1.u2

Schedule of Property and Equipment (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 151,723	$ 151,723
Less accumulated depreciation and amortization	(148,714)	(148,469)
Net property and equipment	$ 3,009	3,254
Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	5 years
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 119,386	119,386
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	3 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	5 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	7 years
Property and equipment, gross	$ 21,681	21,681
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives	3 years
Property and equipment, gross	$ 10,656	$ 10,656

v3.24.1.1.u2

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 245	$ 245

v3.24.1.1.u2

Summary of Deferred Revenue (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Deferred Revenue
Beginning Balance	$ 42,335	$ 0
Prepayment Received	0	254,010
Less Recognized Revenue	(42,335)	(211,675)
Deferred Revenue	$ 0	$ 42,335

v3.24.1.1.u2

System Integration (Details Narrative)	Mar. 31, 2024 USD ($)
System Integration
Accumulated costs in other assets	$ 100,000

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