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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE

  SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE

  SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

 

Commission File No. 000-50274

 

Spectral Capital Corporation

(Exact name of Registrant as specified in its charter)

 

Nevada

51-0520296

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification Number)

4500 9th Avenue NE, Seattle, WA

98105

(Address of principal executive offices)

(Zip/Postal Code)

(206) 385-6490

(Telephone Number)

___________

(Former name or former address if changed since last report)

 

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[X] Yes  [  ] NO

 

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

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

 

Emerging growth company

 

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


 

Indicate by check mark whether the registrant has filed a report to its management’s assessment of the effectiveness of its internal control over financial reporting under section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.  

 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

 

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

 

As of November 13, 2023, there are issued and outstanding only common equity shares in the amount of 42,017,948 shares, par value $0.0001, of which there is only a single class.  There are 5,000,000 preferred shares authorized and none issued and outstanding. 


SPECTRAL CAPITAL CORPORATION

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 

 

 

Item 1.

Financial Statements

F-1

 

 

 

Item 2.

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

12

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

13

 

 

 

Item 4.

Controls and Procedures

14

 

 

 

PART II - OTHER INFORMATION

 

 

 

Item 1.

Legal Proceedings

15

 

 

 

Item 1A.

Risk Factors

15

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

15

 

 

 

Item 3.

Defaults Upon Senior Securities

15

 

 

 

Item 4.

Mine Safety Disclosures

15

 

 

 

Item 5.

Other Information

15

 

 

 

Item 6.

Exhibits

15

 

 

 

SIGNATURES

16



 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Form 10-K, press releases and certain information provided periodically in writing or verbally by our officers or our agents contain statements which constitute forward-looking statements. The words “may”, “would”, “could”, “will”, “expect”, “estimate”, “anticipate”, “believe”, “intend”, “plan”, “goal”, and similar expressions and variations thereof are intended to specifically identify forward-looking statements. These statements appear in a number of places in this Form 10-K and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of us, our directors or our officers, with respect to, among other things: (i) our liquidity and capital resources; (ii) our financing opportunities and plans; (iii) our ability to generate revenues; (iv) competition in our business segments; (v) market and other trends affecting our future financial condition or results of operations; (vi) our growth strategy and operating strategy; (vii) the declaration and/or payment of dividends; and (viii) any statements regarding any reserves, potential reserves, potential mineral yield or extraction costs with respect to our mining properties.

 

Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. The factors that might cause such differences include, among others, those set forth in Part II, Item 7 of this annual report on Form 10-K, entitled Management’s Discussion and Analysis or Plan of Operation, including without limitation the risk factors contained therein. Except as required by law, we undertake no obligation to update any of the forward-looking statements in this Form 10-K after the date of this report.

 



Item 1: Financial Statements

Our unaudited interim financial statements for the three and nine months ended September 30, 2023 and 2022 are part of this quarterly report. They are stated in United States Dollars (US$) and are prepared in accordance with United States generally accepted accounting principles.

INDEX TO UNAUDITED FINANCIAL STATEMENTS

 

 

 

Condensed Consolidated Financial Statements of Spectral Capital Corporation, Inc.

 

 

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2023

 and December 31, 2022 (unaudited)

F-2

 

 

 

 

Condensed Consolidated Statements of Operations for the Three

 and Nine Months Ended September 30, 2023 and 2022 (unaudited)

F-3

 

 

 

 

Condensed Consolidated Statements of Stockholders' Deficit for the Three

 and Nine Months Ended September 30, 2023 and 2022 (unaudited)

F-4

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Nine

 Months Ended September 30, 2023 and 2022 (unaudited)

F-6

 

 

 

 

Notes to the Condensed Consolidated Financial Statements (unaudited)

F-7


F-1


SPECTRAL CAPITAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2023 AND DECEMBER 31, 2022

(UNAUDITED)


 

 

September 30,
2023

 

December 31,
2022

Assets:

 

 

 

 

Cash and cash equivalents

 

$1,116  

 

$10,672  

Accounts receivable

 

-  

 

25,000  

Current assets

 

1,116  

 

35,672  

 

 

 

 

 

Total assets

 

$1,116  

 

$35,672  

 

 

 

 

 

Liabilities and Stockholders' Deficit:

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable and accrued liabilities

 

$330,174  

 

$222,174  

Related party advances and accruals

 

5,877  

 

5,500  

Short-term advances

 

30,200  

 

-  

Current liabilities

 

366,251  

 

227,674  

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders' Deficit:

 

 

 

 

Preferred stock, par value $0.0001, 5,000,000 shares authorized, no shares issued and outstanding

 

-  

 

-  

Common stock, par value $0.0001, 1,000,000,000 and 500,000,000 shares authorized, 42,017,948 and 42,017,948 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively

 

4,202  

 

4,202  

Additional paid-in capital

 

29,106,804  

 

29,106,804  

Accumulated deficit

 

(29,254,291) 

 

(29,081,212) 

Total stockholders' equity (deficit)

 

(143,285) 

 

29,794  

Non-controlling interest

 

(221,850) 

 

(221,796) 

Total stockholders' deficit - Spectral Capital Corp.

 

(365,135) 

 

(192,002) 

Total liabilities and stockholders' deficit

 

$1,116  

 

$35,672  


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

 

F-2


SPECTRAL CAPITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)


 

 

 

Three Months Ended
September 30, 2023

 

Three Months Ended
September 30, 2022

 

Nine Months Ended
September 30, 2023

 

Nine Months Ended
September 30, 2022

 

 

 

 

 

 

 

 

 

Revenues

 

$-  

 

$-  

 

$-  

 

$176,220  

 

 

 

 

 

 

 

 

 

Costs of sales

 

-  

 

(234,060) 

 

-  

 

-  

 

 

 

 

 

 

 

 

 

Gross loss

 

-  

 

234,060  

 

-  

 

176,220  

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative

 

9,722  

 

112,447  

 

65,133  

 

251,151  

Wages and benefits

 

36,000  

 

36,000  

 

108,000  

 

108,000  

Total operating expenses

 

45,722  

 

148,447  

 

173,133  

 

359,151  

 

 

 

 

 

 

 

 

 

Net loss before non-controlling interest

 

(45,722) 

 

85,613  

 

(173,133) 

 

(182,931) 

 

 

 

 

 

 

 

 

 

Loss attributable to non-controlling interest

 

18  

 

22  

 

54  

 

54  

 

 

 

 

 

 

 

 

 

Net loss attributable to Spectral Capital Corporation

 

$(45,704) 

 

$85,635  

 

$(173,079) 

 

$(182,877) 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per common share

 

$(0.00) 

 

$0.00  

 

$(0.00) 

 

$(0.01) 

Weighted average shares - basic and diluted

 

42,017,948  

 

42,017,948  

 

42,017,948  

 

32,159,154  


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

 

F-3


SPECTRAL CAPITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)


 

Three Months Ended September 30, 2022

 

 

Common Stock

 

 

 

 

 

 

 

Total

 

Shares

 

Amount

 

Additional Paid-in
Capital

 

Non-Controlling
Interest

 

Accumulated
Deficit

 

Stockholders'
Deficit

June 30, 2022

42,017,948 

 

$4,202 

 

$29,106,804 

 

$(221,756) 

 

$(29,108,736) 

 

$(219,486) 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interest

- 

 

- 

 

- 

 

(22) 

 

-  

 

(22) 

Net income

- 

 

- 

 

- 

 

-  

 

85,635  

 

85,635  

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

42,017,948 

 

$4,202 

 

$29,106,804 

 

$(221,778) 

 

$(29,023,101) 

 

$(133,873) 

 

Nine Months Ended September 30, 2022

 

 

Common Stock

 

 

 

 

 

 

 

Total

 

Shares

 

Amount

 

Additional Paid-in
Capital

 

Non-Controlling
Interest

 

Accumulated
Deficit

 

Stockholders'
Deficit

December 31, 2021

11,785,762 

 

$1,179 

 

$27,798,288 

 

$(221,724) 

 

$(28,840,224) 

 

$(1,262,481) 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of common stock

5,000,000 

 

500 

 

49,430 

 

-  

 

-  

 

49,930  

Conversion of convertible note

25,232,186 

 

2,523 

 

1,259,086 

 

-  

 

-  

 

1,261,609  

Non-controlling interest

- 

 

- 

 

- 

 

(54) 

 

-  

 

(54) 

Net loss

- 

 

- 

 

- 

 

-  

 

(182,877) 

 

(182,877) 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

42,017,948 

 

$4,202 

 

$29,106,804 

 

$(221,778) 

 

$(29,023,101) 

 

$(133,873) 


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

 

F-4


SPECTRAL CAPITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)


Three Months Ended September 30, 2023

 

 

Common Stock

 

 

 

 

 

 

 

Total

 

Shares

 

Amount

 

Additional Paid-in
Capital

 

Non-Controlling
Interest

 

Accumulated
Deficit

 

Stockholders'
Deficit

June 30, 2023

42,017,948 

 

$4,202 

 

$29,106,804 

 

$(221,832) 

 

$(29,208,587) 

 

$(319,413) 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interest

- 

 

- 

 

- 

 

(18) 

 

-  

 

(18) 

Net loss

- 

 

- 

 

- 

 

-  

 

(45,704) 

 

(45,704) 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2023

42,017,948 

 

$4,202 

 

$29,106,804 

 

$(221,850) 

 

$(29,254,291) 

 

$(365,135) 

 

Six Months Ended September 30, 2023

 

 

Common Stock

 

 

 

 

 

 

 

Total

 

Shares

 

Amount

 

Additional Paid-in
Capital

 

Non-Controlling
Interest

 

Accumulated
Deficit

 

Stockholders'
Deficit

December 31, 2022

42,017,948 

 

$4,202 

 

$29,106,804 

 

$(221,796) 

 

$(29,081,212) 

 

$(192,002) 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interest

- 

 

- 

 

- 

 

(54) 

 

-  

 

(54) 

Net loss

- 

 

- 

 

- 

 

-  

 

(173,079) 

 

(173,079) 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2023

42,017,948 

 

$4,202 

 

$29,106,804 

 

$(221,850) 

 

$(29,254,291) 

 

$(365,135) 


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

 

F-5


 

SPECTRAL CAPITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBR 30, 2023 AND 2022

(UNAUDITED)


 

 

 

Nine Months Ended
September 30, 2023

 

Nine Months Ended
September 30, 2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net loss attributable to Spectral Capital Corporation

 

$(173,079) 

 

$(182,877) 

Adjustments to reconcile net loss to net cash
 provided by (used in) by operating activities:

 

 

 

 

Non-controlling interest

 

(54) 

 

(54) 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

25,000  

 

(74,407) 

Due to related parties - accrued salary

 

108,000  

 

108,000  

Accounts payable and accrued expenses

 

-  

 

100,218  

Net cash provided by (used in) operating activities

 

(40,133) 

 

(49,120) 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Net cash used in investing activities

 

-  

 

-  

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Intercompany

 

 

 

 

Short-term advances

 

30,200  

 

-  

Proceeds from related party advances

 

377  

 

-  

Proceeds from sale of common stock

 

-  

 

49,930  

Net cash provided by financing activities

 

30,577  

 

49,930  

 

 

 

 

 

Change in cash and cash equivalents

 

(9,556) 

 

810  

Cash and cash equivalents, beginning of period

 

10,672  

 

264  

Cash and cash equivalents, end of period

 

$1,116  

 

$1,074  

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

Cash paid for interest

 

$-  

 

$-  

Cash paid for income taxes

 

$-  

 

$-  

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

Exchange of related party advances and accruals for a convertible
note payable and subsequent conversion into common stock

 

$-  

 

$1,261,609  


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

 

F-6


SPECTRAL CAPITAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(UNAUDITED)


NOTE 1 – BUSINESS AND NATURE OF OPERATIONS

 

Spectral Capital Corporation (the "Company" or "Spectral") was incorporated on September 13, 2000 under the laws of the State of Nevada. Spectral is focused on the identification, acquisition, development, financing of technology that has the potential to transform existing industries. The Company looks for technology that can be protected through patents or laws regarding trade secrets.  

 

In January 2022, the Company commenced a new line of business which is providing data and telecommunications reselling services on a global basis.  On February 15, 2022, the Company entered into a telecommunications services agreement with Sky Data PLL OU (Estonia) to provide long distance switching services. The contract does not contain a fixed term or value and is on an as needed basis via invoice for Sky Data PLL OU.

 

Spectral intends to expand its reach within the telecommunications reselling services market and has identified the following steps in order to resume this line of business: ownership of infrastructure, control of data flow and the elimination of third parties. This progression will provide significant cost savings and allow the company direct access to the data in real time to optimize service and to gain the most traffic in high demand areas. These steps will also enable Spectral to provide better service with the hope to gain better contracts over time. In conjunction with its partner Sky, ownership of infrastructure is underway, and the companies are currently in talks to secure contracts with providers.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has recently discontinued revenue generating activities and has sustained substantial losses since inception. As of September 30, 2023, the Company has cash on hand of $1,116 and negative working capital of $365,135. The Company expects current cash on hand will not be able to fund operations for a period in excess of 12 months. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.

 

To date management has funded its operations through selling equity securities and advances from related parties. The ability of the Company to continue as a going concern is dependent on the Company generating cash from its recently established operations, the sale of its common stock and/or obtaining debt financing and attaining future profitable operations, however, there can be no assurance the Company will be successful in these efforts. As of the date of these consolidated financial statements the Company does not have any firm commitments for capital. Without the required capital, the Company has had to reduce their development expenditures which will delay the completion of products which are expected to generate future revenues.

 

Risks and Uncertainties

The Company has a limited operating history and has not generated revenues from our planned principal operations.

 

The Company's business and operations are sensitive to general business and economic conditions in the U.S. and worldwide. These conditions include short-term and long-term interest rates, inflation, fluctuations in debt and equity capital markets and the general condition of the U.S. and world economy. A host of factors beyond the Company's control could cause fluctuations in these conditions, including the political environment and acts or threats of war or terrorism. Adverse developments in these general business and economic conditions, including through recession, downturn or otherwise, could have a material adverse effect on the Company's consolidated financial condition and the results of its operations.

 

The Company currently has generated limited revenues and limited marketing and/or distribution capabilities. The Company has limited experience in developing, training or managing a sales force and will incur substantial additional expenses if we decide to market any of our current and future products. Developing a marketing and sales force is also time consuming and could delay launch of our future products. In addition, the Company will compete with many companies that currently have extensive and well-funded marketing and sales operations. Our marketing and sales efforts may be unable to compete successfully against these companies. In addition, the Company has limited capital to devote sales and marketing.

 


F-7


SPECTRAL CAPITAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(UNAUDITED)


The Company's industry is characterized by rapid changes in technology and customer demands. As a result, the Company's products may quickly become obsolete and unmarketable. The Company's future success will depend on its ability to adapt to technological advances, anticipate customer demands, develop new products and enhance our current products on a timely and cost-effective basis. Further, the Company's products must remain competitive with those of other companies with substantially greater resources. The Company may experience technical or other difficulties that could delay or prevent the development, introduction or marketing of new products or enhanced versions of existing products. Also, the Company may not be able to adapt new or enhanced products to emerging industry standards, and the Company's new products may not be favourably received. Nor may we have the capital resources to further the development of existing and/or new ones.

 

Interim Consolidated Financial Statements

The accompanying unaudited interim consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission.  Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these consolidated financial statements have been included.  Such adjustments consist of normal recurring adjustments.  These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2022. The results of operations for the nine months ended September 30, 2023 are not indicative of the results that may be expected for the full year.

 

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, Spectral Holdings, Inc, and its 60% owned subsidiaries, Noot Holdings, Inc. from its date of incorporation of February 28, 2013, and Monitr Holdings, Inc. from its date of incorporation of December 1, 2013.  All material intercompany accounts and transactions have been eliminated in consolidation.

 

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

 

Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

 

Level 1

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

 

Level 2

Include other inputs that are directly or indirectly observable in the marketplace.

 

 

Level 3

Unobservable inputs which are supported by little or no market activity.

  

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As of September 30, 2023 and December 31, 2022, the Company does not have any assets or liabilities which would be considered Level 2 or 3.

 

The Company’s financial instruments consist of cash and cash equivalents, investments in technologies and related party advances. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements.

 


F-8


SPECTRAL CAPITAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(UNAUDITED)


The Company measures certain assets at fair value on a nonrecurring basis. These assets include cost method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. Excluding these items, the Company did not have any significant assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition.

 

Use of Estimates

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 and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

 

Revenue Recognition

The Company revenues in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from contracts with customers”. Revenues are 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. Revenues during the nine months ended September 30, 2023, were provided primarily to three customers. The loss of these customers would have a significant impact on the Company’s financial statements. At September 30, 2022, the Company paused their operations to improve their internal processes and are working towards resuming operations by April of 2024.

 

Basic Income (Loss) Per Share

Basic loss per share is calculated by dividing the Company’s net income (loss) applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. During the three and nine months ended September 30, 2023 and 2022, the Company did not have not dilutive shares.

 

Non-Controlling Interests

Non-controlling interest disclosed within the consolidated statement of operations represents the minority ownership 40% share of net income (losses) of Noot Holdings, Inc. and Monitr Holdings, Inc. incurred during the nine months ended September 30, 2023. The following table sets forth the changes in non-controlling interest for the nine months ended September 30, 2023:

 

   

 

Non-Controlling

   

 

Interest

Balance at December 31, 2022

 

$(221,796) 

   

 

 

Net loss attributable to non-controlling interest

 

(54) 

Balance at March 31, 2023

 

$(221,850) 

 

Foreign Currency

 

The Company's functional currency is the United States Dollar. Transaction gains or losses related to balances denominated in a currency other than the functional currency are recognized in the consolidated statements of operations. As a result of these foreign currency transactions in which require payment in a currency other than the United States Dollar, the Company has recorded foreign currency (income) losses within the accompanying condensed consolidated statement of operations.


F-9


SPECTRAL CAPITAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(UNAUDITED)


 

Recent Accounting Pronouncements

 

The FASB issues ASUs to amend the authoritative literature in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). There have been a number of ASUs to date, including those above, that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company’s financial statement.

 

NOTE 3– RELATED PARTY TRANSACTIONS

 

Jenifer Osterwalder, the Company's Chief Executive Officer

 

Jenifer Osterwalder charges the Company $12,000 per month beginning January 1, 2021 for services rendered. Total amounts expended in the Company's condensed consolidated financial statements in connection with the CEO's services was $108,000 and $108,000 for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023 and December 31, 2022, amounts due to the CEO related to accrued salaries were $252,000 and $144,000, respectively.

 

From time to time due to the limited cash flow available, the Company's CEO pays certain operating expenditures on behalf of the Company. These advances bear no interest and are due on demand. As of September 30, 2023 and December 31, 2022, the Company's CEO was due $5,877 and $5,500 in connection with these advances, respectively.

 

As noted above, all amounts due to the Chief Executive Officer as December 31, 2021 were converted into a convertible note payable. The note is due and demand and convertible at $0.05 per share. During the three months ended March 31, 2022, the Chief Executive Officer sold the $1,054,653 and $206,956 convertible notes to a third party which was then converted into approximately 25.2 million shares in April 2022.

 

NOTE 4 – STOCKHOLDERS’ DEFICIT

 

Changes in Stockholders' Deficit

 

During the nine months ended September 30, 2022, the Company sold 5 million shares of common stock resulting in proceeds of $49,930.

 

See Note 3 for discussion of convertible note converted into common stock.

 

Employee Options

 

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.

 

The Company has adopted a stock option and award plan to attract, retain and motivate its directors, officers, employees, consultants and advisors. Options provide the opportunity to acquire a proprietary interest in the Company and to benefit from its growth. Vesting terms and conditions are determined by the Board of Directors at the time of the grant. The Plan provides for the issuance of up to 15,000,000 common shares for employees, consultants, directors, and advisors. As of September 30, 2023, all options were expired.

 

NOTE 5 – ADVANCES

 

During the nine months ended September 30, 2023, the Company received advances of $30,200 from a third party. The advances are due on demand and do not incur interest.


F-10


SPECTRAL CAPITAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

(UNAUDITED)


NOTE 6 – COMMITMENTS AND CONTINGENCIES

 

The Company leases office space on a three-month basis in Seattle, Washington.

 

NOTE 7– SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to September 30, 2023 to the date these condensed consolidated financial statements were issued and has determined that it does not have any material subsequent events to disclose in these consolidated financial statements, other than disclosed above.


F-11



Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion and analysis of our financial condition and results of our operations should be read in conjunction with our financial statements and related notes appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. The actual results may differ materially from those anticipated in these forward-looking statements. The following discussion and analysis should be read in conjunction with the condensed consolidated financial statements and related notes included in this report and those in our Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission on March 27, 2023 and all subsequent filings.

 

OVERVIEW

 

Spectral Capital Corporation (the "Company" or "Spectral") was incorporated on September 13, 2000 under the laws of the State of Nevada. Spectral is focused on the identification, acquisition, development, financing of technology that has the potential to transform existing industries. The Company looks for technology that can be protected through patents or laws regarding trade secrets.  

 

In January 2022, the Company commenced a new line of business which is providing data and telecommunications reselling services on a global basis.  On February 15, 2022, the Company entered into a telecommunications services agreement with Sky Data PLL OU (Estonia) to provide long distance switching services. The contract does not contain a fixed term or value and is on an as needed basis via invoice for Sky Data PLL OU.

 

Spectral intends to expand its reach within the telecommunications reselling services market and has identified the following steps in order to resume this line of business: ownership of infrastructure, control of data flow and the elimination of third parties. This progression will provide significant cost savings and allow the company direct access to the data in real time to optimize service and to gain the most traffic in high demand areas. These steps will also enable Spectral to provide better service with the hope to gain better contracts over time. In conjunction with its partner Sky, ownership of infrastructure is underway, and the companies are currently in talks to secure contracts with providers.

 

RESULTS OF OPERATIONS

 

Comparison of the nine months ended September 30, 2023 and 2022

 

Revenues

 

We are currently engaged in a technology development business and recently commenced operations within the telecom industry. Revenues decreased from $176,200 for the nine months ended September 30, 2022 to $0 for the nine months ended September 30, 2023. The decrease is due to the pause of our new business venture.

 

Cost of Revenues

 

We are currently engaged in a technology development business and recently commenced operations within the telecom industry. Cost of revenues decreased from ($234,060) for the nine months ended September 30, 2022 to $0 for the nine months ended September 30, 2023. The decrease is due to the pause of our new business venture.


12



Operating Expenses

 

Operating expenses decreased $186,018, from $359,151 for the nine months ended September 30, 2022 to $173,133 for the nine months ended September 30, 2023. The significant decrease was due to the pause of our operations due to the forthcoming structural changes within our new line of business.

 

Liquidity and Capital Resources

 

As of September 30, 2023, we had $1,116 cash on hand. We intend to fund operations through the use of cash on hand, cash flows from operations and through debt and equity financings until sufficient cash flows from operations can be achieved.

 

Net cash used in operating, activities decreased $8,987, from $49,120 in cash used during the nine months ended September 30, 2022 to $40,133 cash used in the nine months ended September 30, 2023. This decrease was primarily related to the Company having temporary ceased operations.

 

Net cash provided by financing activities decreased by $19,353 from $49,930 for the nine months ended September 30, 2022 to $30,577 for the nine months ended September 30, 2023. Net cash provided by financing activities during the nine months ended September 30, 2023 and 2022 related to proceeds short-term advances and proceeds from the sale of common stock, respectively.

 

We believe that our current financial resources are not sufficient to meet our working capital requirements over the next year. Additional funding will be necessary in order to expand portfolio operations and to reach our goals. Currently, the Company does not have any commitments or assurances for additional capital nor can the Company provide assurance that such financing will be available to it on favourable terms, or at all. If, after utilizing the existing sources of capital available to the Company, further capital needs are identified and the Company is not successful in obtaining the financing, it may be forced to curtail its existing or planned future operations. In addition, if necessary, we will decrease expenses and redirect our efforts towards a sale of one of more of our assets should funding become inadequate.

 

Our short-term prospects are promising given our success to date in securing the two portfolio companies, Noot and Monitr as well as our entry into the telecommunications reselling business.  However, we need significant capital to implement our plan.

 

Off Balance Sheet Arrangements

 

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not required for a smaller reporting company.


13



ITEM 4. CONTROLS AND PROCEDURES

 

(a) Evaluation of disclosure controls and procedures.

 

As required by Rule 13a-15 or Rule 15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our management, including our principal executive officer and principal accounting officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing evaluation, we have concluded that our disclosure controls and procedures were not effective as of September 30, 2023 and that they do not allow for information required to be disclosed by the 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 Securities and Exchange Commission (“SEC”) rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the us in the reports that we file or submit under the Exchange Act is accumulated and communicated to the Company’s management, including its Chief Executive and Principal Accounting & Financial Officers as appropriate to allow timely decisions regarding required disclosure.

 

The material weaknesses were first identified in our annual report on Form 10-K for the year ended December 31, 2012 in which related to a lack of an accounting staff resulting in a lack of segregation of duties necessary for an effective system of internal control. The weakness in segregation of duties will continue to exist until such time as management can retain internal staff to properly segregate duties.  

 

(b) Changes in internal control over financial reporting.

 

There were no changes in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


14



PART II OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None.

 

Item 2. Unregistered Sales of Securities and Use of Proceeds

 

None.

 

Item 3. Defaults Upon Senior Securities

 

Not Applicable.

 

Item 4. Mine Safety Disclosures.

 

None.

 

Item 5. Other Information

 

None.

 

Item 6. Exhibits

 

EXHIBITS

 

List of Exhibits

 

3(i)(1)

Articles of Incorporation of Spectral Capital Corporation, dated September 13, 2000, incorporated by reference to Exhibit 3(a) on Form 10-SB filed May 1, 2003.

 

3(i)(2)

Certificate of Amendment to Articles of Incorporation of Spectral Capital Corporation, dated June 17, 2007, incorporated by reference to Exhibit 2.1 on Form 8-K filed July 7, 2004.

 

3(ii)

By-laws of Spectral Capital Corporation, dated September 14, 2000, incorporated by reference to Exhibit 3(b) on Form 10-SB filed May 1, 2003.

 

31.1

Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002

 

31.2

Certification of Chief Financial and Principal Accounting Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002

 

32.1

Certification of the Company’s Chief Executive Officer 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 the Company’s Chief Financial and Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 


15



SIGNATURE

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Spectral Capital Corporation

 

 

 

/s/ Jenifer Osterwalder

 

Jenifer Osterwalder

 

President and Chief Executive Officer

 

 

 

Dated: November 13, 2023


16

Exhibit 31.1

 

CERTIFICATE OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Jenifer Osterwalder certify that:

 

1.I have reviewed this 10-Q for the quarter ended September 30, 2023, of Spectral Capital Corporation; 

 

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

 

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

 

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined 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 registrant and have: 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

/s/ Jenifer Osterwalder

Date: November 13, 2023

 

Jenifer Osterwalder President and
Chief Executive Officer

 

Exhibit 31.2

 

CERTIFICATE OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF
THE SARBANES-OXLEY ACT OF 2002

 

I, Stephen Spalding, certify that:

 

1.I have reviewed this 10-Q for the quarter ended September 30, 2023, of Spectral Capital Corporation 

 

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

 

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

 

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined 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 registrant and have: 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

/s/ Stephen Spalding

Date: November 13, 2023

 

Stephen Spalding Chief Financial and
Accounting Officer

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Spectral Capital Corporation (the "Company") on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jenifer Osterwalder, in my capacity as President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

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

 

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

 

 

/s/ Jenifer Osterwalder

Date: November 13, 2023

 

Jenifer Osterwalder President and Chief Executive Officer

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Spectral Capital Corporation (the "Company") on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Stephen Spalding, in my capacity as Chief Financial Officer and Accounting Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

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

 

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

 

 

/s/ Stephen Spalding

Date: November 13, 2023

 

Stephen Spalding Chief Financial and
Accounting Officer

 

v3.23.3
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2023
Nov. 13, 2023
Details    
Registrant CIK 0001131903  
Fiscal Year End --12-31  
Registrant Name Spectral Capital Corporation  
SEC Form 10-Q  
Period End date Sep. 30, 2023  
Tax Identification Number (TIN) 51-0520296  
Number of common stock shares outstanding   42,017,948
Filer Category Non-accelerated Filer  
Current with reporting Yes  
Interactive Data Current Yes  
Shell Company false  
Small Business true  
Emerging Growth Company false  
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 000-50274  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 4500 9th Avenue NE  
Entity Address, City or Town Seattle  
Entity Address, State or Province WA  
Entity Address, Postal Zip Code 98105  
City Area Code 206  
Local Phone Number 385-6490  
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
v3.23.3
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Assets    
Cash and cash equivalents $ 1,116 $ 10,672
Accounts receivable 0 25,000
Current assets 1,116 35,672
Total assets 1,116 35,672
Current liabilities    
Accounts payable and accrued liabilities 330,174 222,174
Related party advances and accruals 5,877 5,500
Short-term advances 30,200 0
Current liabilities 366,251 227,674
Stockholders' deficit:    
Preferred shares 0 0
Common shares 4,202 4,202
Additional paid-in capital 29,106,804 29,106,804
Accumulated deficit (29,254,291) (29,081,212)
Total stockholders' equity (deficit) (143,285) 29,794
Non-controlling interest (221,850) (221,796)
Total stockholders' deficit - Spectral Capital Corp (365,135) (192,002)
Total liabilities and stockholders' deficit $ 1,116 $ 35,672
v3.23.3
Condensed Consolidated Balance Sheets - Parenthetical - $ / shares
Sep. 30, 2023
Dec. 31, 2022
Condensed Consolidated Balance Sheets    
Preferred Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized 5,000,000 5,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 1,000,000,000 500,000,000
Common Stock, Shares, Issued 42,017,948 42,017,948
v3.23.3
Condensed Consolidated Statements of Operations - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Condensed Consolidated Statements of Operations        
Revenues $ 0 $ 0 $ 0 $ 176,220
Costs of sales 0 (234,060) 0 0
Gross loss 0 234,060 0 176,220
Operating expenses:        
Selling, general and administrative 9,722 112,447 65,133 251,151
Wages and benefits 36,000 36,000 108,000 108,000
Total operating expenses 45,722 148,447 173,133 359,151
Net loss before non-controlling interest (45,722) 85,613 (173,133) (182,931)
Income (loss) attributable to noncontrolling interest 18 22 54 54
Net loss before non-controlling interest $ (45,704) $ 85,635 $ (173,079) $ (182,877)
Basic income (loss) per common share $ (0.00) $ 0.00 $ (0.00) $ (0.01)
Weighted average shares - basic and diluted 42,017,948 42,017,948 42,017,948 32,159,154
v3.23.3
Condensed Consolidated Statements of Stockholders' Deficit - USD ($)
Common Stock
Additional Paid-in Capital
Noncontrolling Interest
Retained Earnings
Total
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2021 $ 1,179 $ 27,798,288 $ (221,724) $ (28,840,224) $ (1,262,481)
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 11,785,762        
Conversion of convertible note $ 2,523 1,259,086 0 0 1,261,609
Conversion of convertible note - Shares 25,232,186        
Net loss attributable to Spectral Capital Corporation $ 0 0 0 (182,877) (182,877)
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2022 $ 4,202 29,106,804 (221,778) (29,023,101) (133,873)
Shares, Outstanding, Ending Balance at Sep. 30, 2022 42,017,948        
Non-controlling interest $ 0 0 (54) 0 (54)
Proceeds from sale of common stock $ 500 49,430 0 0 49,930
Proceeds from sale of common stock - shares 5,000,000        
Conversion of convertible note - Shares 25,232,186        
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Jun. 30, 2022 $ 4,202 29,106,804 (221,756) (29,108,736) (219,486)
Shares, Outstanding, Beginning Balance at Jun. 30, 2022 42,017,948        
Net loss attributable to Spectral Capital Corporation $ 0 0 0 85,635 85,635
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2022 $ 4,202 29,106,804 (221,778) (29,023,101) (133,873)
Shares, Outstanding, Ending Balance at Sep. 30, 2022 42,017,948        
Non-controlling interest $ 0 0 (22) 0 (22)
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2022 $ 4,202 29,106,804 (221,796) (29,081,212) (192,002)
Shares, Outstanding, Beginning Balance at Dec. 31, 2022 42,017,948        
Conversion of convertible note         0
Net loss attributable to Spectral Capital Corporation $ 0 0 0 (173,079) (173,079)
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2023 $ 4,202 29,106,804 (221,850) (29,254,291) (365,135)
Shares, Outstanding, Ending Balance at Sep. 30, 2023 42,017,948        
Non-controlling interest $ 0 0 (54) 0 (54)
Proceeds from sale of common stock         0
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Jun. 30, 2023 $ 4,202 29,106,804 (221,832) (29,208,587) (319,413)
Shares, Outstanding, Beginning Balance at Jun. 30, 2023 42,017,948        
Net loss attributable to Spectral Capital Corporation $ 0 0 0 (45,704) (45,704)
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Sep. 30, 2023 $ 4,202 29,106,804 (221,850) (29,254,291) (365,135)
Shares, Outstanding, Ending Balance at Sep. 30, 2023 42,017,948        
Non-controlling interest $ 0 $ 0 $ (18) $ 0 $ (18)
v3.23.3
Condensed Consolidated Statements of Cash Flows - USD ($)
9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss attributable to Spectral Capital Corporation $ (173,079) $ (182,877)
Adjustments to reconcile net loss to net cash used in by operating activities:    
Non-controlling interest (54) (54)
Changes in operating assets and liabilities    
Accounts receivable 25,000 (74,407)
Due to related parties - accrued salary 108,000 108,000
Accounts payable and accrued expenses 0 100,218
Net cash provided by (used in) operating activities (40,133) (49,120)
CASH FLOWS FROM INVESTING ACTIVITIES    
Net cash used in investing activities 0 0
CASH FLOWS FROM FINANCING ACTIVITIES    
Short-term advances 30,200 0
Proceeds from related party advances 377 0
Proceeds from sale of common stock 0 49,930
Net cash provided by financing activities 30,577 49,930
Change in cash and cash equivalents (9,556) 810
Cash and cash equivalents, beginning of period 10,672 264
Cash and cash equivalents, end of period 1,116 1,074
Supplemental disclosure of cash flow information    
Cash paid for interest 0 0
Cash paid for income taxes 0 0
Non-cash investing and financing activities    
Exchange of related party advances and accruals for a convertible note payable and subsequent conversion into common stock $ 0 $ 1,261,609
v3.23.3
Note 1 - Business and Nature of Operations
9 Months Ended
Sep. 30, 2023
Notes  
Note 1 - Business and Nature of Operations

NOTE 1 – BUSINESS AND NATURE OF OPERATIONS

 

Spectral Capital Corporation (the "Company" or "Spectral") was incorporated on September 13, 2000 under the laws of the State of Nevada. Spectral is focused on the identification, acquisition, development, financing of technology that has the potential to transform existing industries. The Company looks for technology that can be protected through patents or laws regarding trade secrets.  

 

In January 2022, the Company commenced a new line of business which is providing data and telecommunications reselling services on a global basis.  On February 15, 2022, the Company entered into a telecommunications services agreement with Sky Data PLL OU (Estonia) to provide long distance switching services. The contract does not contain a fixed term or value and is on an as needed basis via invoice for Sky Data PLL OU.

 

Spectral intends to expand its reach within the telecommunications reselling services market and has identified the following steps in order to resume this line of business: ownership of infrastructure, control of data flow and the elimination of third parties. This progression will provide significant cost savings and allow the company direct access to the data in real time to optimize service and to gain the most traffic in high demand areas. These steps will also enable Spectral to provide better service with the hope to gain better contracts over time. In conjunction with its partner Sky, ownership of infrastructure is underway, and the companies are currently in talks to secure contracts with providers.

 

v3.23.3
Note 2 - Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2023
Notes  
Note 2 - Summary of Significant Accounting Policies

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has recently discontinued revenue generating activities and has sustained substantial losses since inception. As of September 30, 2023, the Company has cash on hand of $1,116 and negative working capital of $365,135. The Company expects current cash on hand will not be able to fund operations for a period in excess of 12 months. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.

 

To date management has funded its operations through selling equity securities and advances from related parties. The ability of the Company to continue as a going concern is dependent on the Company generating cash from its recently established operations, the sale of its common stock and/or obtaining debt financing and attaining future profitable operations, however, there can be no assurance the Company will be successful in these efforts. As of the date of these consolidated financial statements the Company does not have any firm commitments for capital. Without the required capital, the Company has had to reduce their development expenditures which will delay the completion of products which are expected to generate future revenues.

 

Risks and Uncertainties

The Company has a limited operating history and has not generated revenues from our planned principal operations.

 

The Company's business and operations are sensitive to general business and economic conditions in the U.S. and worldwide. These conditions include short-term and long-term interest rates, inflation, fluctuations in debt and equity capital markets and the general condition of the U.S. and world economy. A host of factors beyond the Company's control could cause fluctuations in these conditions, including the political environment and acts or threats of war or terrorism. Adverse developments in these general business and economic conditions, including through recession, downturn or otherwise, could have a material adverse effect on the Company's consolidated financial condition and the results of its operations.

 

The Company currently has generated limited revenues and limited marketing and/or distribution capabilities. The Company has limited experience in developing, training or managing a sales force and will incur substantial additional expenses if we decide to market any of our current and future products. Developing a marketing and sales force is also time consuming and could delay launch of our future products. In addition, the Company will compete with many companies that currently have extensive and well-funded marketing and sales operations. Our marketing and sales efforts may be unable to compete successfully against these companies. In addition, the Company has limited capital to devote sales and marketing.

 

The Company's industry is characterized by rapid changes in technology and customer demands. As a result, the Company's products may quickly become obsolete and unmarketable. The Company's future success will depend on its ability to adapt to technological advances, anticipate customer demands, develop new products and enhance our current products on a timely and cost-effective basis. Further, the Company's products must remain competitive with those of other companies with substantially greater resources. The Company may experience technical or other difficulties that could delay or prevent the development, introduction or marketing of new products or enhanced versions of existing products. Also, the Company may not be able to adapt new or enhanced products to emerging industry standards, and the Company's new products may not be favourably received. Nor may we have the capital resources to further the development of existing and/or new ones.

 

Interim Consolidated Financial Statements

The accompanying unaudited interim consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission.  Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these consolidated financial statements have been included.  Such adjustments consist of normal recurring adjustments.  These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2022. The results of operations for the nine months ended September 30, 2023 are not indicative of the results that may be expected for the full year.

 

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, Spectral Holdings, Inc, and its 60% owned subsidiaries, Noot Holdings, Inc. from its date of incorporation of February 28, 2013, and Monitr Holdings, Inc. from its date of incorporation of December 1, 2013.  All material intercompany accounts and transactions have been eliminated in consolidation.

 

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

 

Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

 

Level 1

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

 

Level 2

Include other inputs that are directly or indirectly observable in the marketplace.

 

 

Level 3

Unobservable inputs which are supported by little or no market activity.

  

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As of September 30, 2023 and December 31, 2022, the Company does not have any assets or liabilities which would be considered Level 2 or 3.

 

The Company’s financial instruments consist of cash and cash equivalents, investments in technologies and related party advances. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements.

 

The Company measures certain assets at fair value on a nonrecurring basis. These assets include cost method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. Excluding these items, the Company did not have any significant assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition.

 

Use of Estimates

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 and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

 

Revenue Recognition

The Company revenues in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from contracts with customers”. Revenues are 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. Revenues during the nine months ended September 30, 2023, were provided primarily to three customers. The loss of these customers would have a significant impact on the Company’s financial statements. At September 30, 2022, the Company paused their operations to improve their internal processes and are working towards resuming operations by April of 2024.

 

Basic Income (Loss) Per Share

Basic loss per share is calculated by dividing the Company’s net income (loss) applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. During the three and nine months ended September 30, 2023 and 2022, the Company did not have not dilutive shares.

 

Non-Controlling Interests

Non-controlling interest disclosed within the consolidated statement of operations represents the minority ownership 40% share of net income (losses) of Noot Holdings, Inc. and Monitr Holdings, Inc. incurred during the nine months ended September 30, 2023. The following table sets forth the changes in non-controlling interest for the nine months ended September 30, 2023:

 

   

 

Non-Controlling

   

 

Interest

Balance at December 31, 2022

 

$(221,796) 

   

 

 

Net loss attributable to non-controlling interest

 

(54) 

Balance at March 31, 2023

 

$(221,850) 

 

Foreign Currency

 

The Company's functional currency is the United States Dollar. Transaction gains or losses related to balances denominated in a currency other than the functional currency are recognized in the consolidated statements of operations. As a result of these foreign currency transactions in which require payment in a currency other than the United States Dollar, the Company has recorded foreign currency (income) losses within the accompanying condensed consolidated statement of operations.

 

Recent Accounting Pronouncements

 

The FASB issues ASUs to amend the authoritative literature in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). There have been a number of ASUs to date, including those above, that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company’s financial statement.

v3.23.3
Note 3 - Related Party Transactions
9 Months Ended
Sep. 30, 2023
Notes  
Note 3 - Related Party Transactions

NOTE 3– RELATED PARTY TRANSACTIONS

 

Jenifer Osterwalder, the Company's Chief Executive Officer

 

Jenifer Osterwalder charges the Company $12,000 per month beginning January 1, 2021 for services rendered. Total amounts expended in the Company's condensed consolidated financial statements in connection with the CEO's services was $108,000 and $108,000 for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023 and December 31, 2022, amounts due to the CEO related to accrued salaries were $252,000 and $144,000, respectively.

 

From time to time due to the limited cash flow available, the Company's CEO pays certain operating expenditures on behalf of the Company. These advances bear no interest and are due on demand. As of September 30, 2023 and December 31, 2022, the Company's CEO was due $5,877 and $5,500 in connection with these advances, respectively.

 

As noted above, all amounts due to the Chief Executive Officer as December 31, 2021 were converted into a convertible note payable. The note is due and demand and convertible at $0.05 per share. During the three months ended March 31, 2022, the Chief Executive Officer sold the $1,054,653 and $206,956 convertible notes to a third party which was then converted into approximately 25.2 million shares in April 2022.

v3.23.3
Note 4 - Stockholders' Deficit
9 Months Ended
Sep. 30, 2023
Notes  
Note 4 - Stockholders' Deficit

NOTE 4 – STOCKHOLDERS’ DEFICIT

 

Changes in Stockholders' Deficit

 

During the nine months ended September 30, 2022, the Company sold 5 million shares of common stock resulting in proceeds of $49,930.

 

See Note 3 for discussion of convertible note converted into common stock.

 

Employee Options

 

The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.

 

The Company has adopted a stock option and award plan to attract, retain and motivate its directors, officers, employees, consultants and advisors. Options provide the opportunity to acquire a proprietary interest in the Company and to benefit from its growth. Vesting terms and conditions are determined by the Board of Directors at the time of the grant. The Plan provides for the issuance of up to 15,000,000 common shares for employees, consultants, directors, and advisors. As of September 30, 2023, all options were expired.

v3.23.3
Note 5 - Advances
9 Months Ended
Sep. 30, 2023
Notes  
Note 5 - Advances

NOTE 5 – ADVANCES

 

During the nine months ended September 30, 2023, the Company received advances of $30,200 from a third party. The advances are due on demand and do not incur interest.

v3.23.3
Note 6 - Commitments and Contingencies
9 Months Ended
Sep. 30, 2023
Notes  
Note 6 - Commitments and Contingencies

NOTE 6 – COMMITMENTS AND CONTINGENCIES

 

The Company leases office space on a three-month basis in Seattle, Washington.

v3.23.3
Note 7 - Subsequent Events
9 Months Ended
Sep. 30, 2023
Notes  
Note 7 - Subsequent Events

NOTE 7– SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to September 30, 2023 to the date these condensed consolidated financial statements were issued and has determined that it does not have any material subsequent events to disclose in these consolidated financial statements, other than disclosed above.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Going Concern (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Going Concern

Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has recently discontinued revenue generating activities and has sustained substantial losses since inception. As of September 30, 2023, the Company has cash on hand of $1,116 and negative working capital of $365,135. The Company expects current cash on hand will not be able to fund operations for a period in excess of 12 months. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.

 

To date management has funded its operations through selling equity securities and advances from related parties. The ability of the Company to continue as a going concern is dependent on the Company generating cash from its recently established operations, the sale of its common stock and/or obtaining debt financing and attaining future profitable operations, however, there can be no assurance the Company will be successful in these efforts. As of the date of these consolidated financial statements the Company does not have any firm commitments for capital. Without the required capital, the Company has had to reduce their development expenditures which will delay the completion of products which are expected to generate future revenues.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Risks and Uncertainties (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Risks and Uncertainties

Risks and Uncertainties

The Company has a limited operating history and has not generated revenues from our planned principal operations.

 

The Company's business and operations are sensitive to general business and economic conditions in the U.S. and worldwide. These conditions include short-term and long-term interest rates, inflation, fluctuations in debt and equity capital markets and the general condition of the U.S. and world economy. A host of factors beyond the Company's control could cause fluctuations in these conditions, including the political environment and acts or threats of war or terrorism. Adverse developments in these general business and economic conditions, including through recession, downturn or otherwise, could have a material adverse effect on the Company's consolidated financial condition and the results of its operations.

 

The Company currently has generated limited revenues and limited marketing and/or distribution capabilities. The Company has limited experience in developing, training or managing a sales force and will incur substantial additional expenses if we decide to market any of our current and future products. Developing a marketing and sales force is also time consuming and could delay launch of our future products. In addition, the Company will compete with many companies that currently have extensive and well-funded marketing and sales operations. Our marketing and sales efforts may be unable to compete successfully against these companies. In addition, the Company has limited capital to devote sales and marketing.

 

The Company's industry is characterized by rapid changes in technology and customer demands. As a result, the Company's products may quickly become obsolete and unmarketable. The Company's future success will depend on its ability to adapt to technological advances, anticipate customer demands, develop new products and enhance our current products on a timely and cost-effective basis. Further, the Company's products must remain competitive with those of other companies with substantially greater resources. The Company may experience technical or other difficulties that could delay or prevent the development, introduction or marketing of new products or enhanced versions of existing products. Also, the Company may not be able to adapt new or enhanced products to emerging industry standards, and the Company's new products may not be favourably received. Nor may we have the capital resources to further the development of existing and/or new ones.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Interim Consolidated Financial Statements (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Interim Consolidated Financial Statements

Interim Consolidated Financial Statements

The accompanying unaudited interim consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission.  Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these consolidated financial statements have been included.  Such adjustments consist of normal recurring adjustments.  These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2022. The results of operations for the nine months ended September 30, 2023 are not indicative of the results that may be expected for the full year.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Principles of Consolidation (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, Spectral Holdings, Inc, and its 60% owned subsidiaries, Noot Holdings, Inc. from its date of incorporation of February 28, 2013, and Monitr Holdings, Inc. from its date of incorporation of December 1, 2013.  All material intercompany accounts and transactions have been eliminated in consolidation.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Basis of Presentation (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Basis of Presentation

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

 

Level 1

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

 

Level 2

Include other inputs that are directly or indirectly observable in the marketplace.

 

 

Level 3

Unobservable inputs which are supported by little or no market activity.

  

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As of September 30, 2023 and December 31, 2022, the Company does not have any assets or liabilities which would be considered Level 2 or 3.

 

The Company’s financial instruments consist of cash and cash equivalents, investments in technologies and related party advances. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements.

 

The Company measures certain assets at fair value on a nonrecurring basis. These assets include cost method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. Excluding these items, the Company did not have any significant assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Use of Estimates (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Use of Estimates

Use of Estimates

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 and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Revenue Recognition

Revenue Recognition

The Company revenues in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from contracts with customers”. Revenues are 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. Revenues during the nine months ended September 30, 2023, were provided primarily to three customers. The loss of these customers would have a significant impact on the Company’s financial statements. At September 30, 2022, the Company paused their operations to improve their internal processes and are working towards resuming operations by April of 2024.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Basic (Loss) Per Share (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Basic (Loss) Per Share

Basic Income (Loss) Per Share

Basic loss per share is calculated by dividing the Company’s net income (loss) applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. During the three and nine months ended September 30, 2023 and 2022, the Company did not have not dilutive shares.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Non-Controlling Interests (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Non-Controlling Interests

Non-Controlling Interests

Non-controlling interest disclosed within the consolidated statement of operations represents the minority ownership 40% share of net income (losses) of Noot Holdings, Inc. and Monitr Holdings, Inc. incurred during the nine months ended September 30, 2023. The following table sets forth the changes in non-controlling interest for the nine months ended September 30, 2023:

 

   

 

Non-Controlling

   

 

Interest

Balance at December 31, 2022

 

$(221,796) 

   

 

 

Net loss attributable to non-controlling interest

 

(54) 

Balance at March 31, 2023

 

$(221,850) 

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Foreign Currency (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Foreign Currency

Foreign Currency

 

The Company's functional currency is the United States Dollar. Transaction gains or losses related to balances denominated in a currency other than the functional currency are recognized in the consolidated statements of operations. As a result of these foreign currency transactions in which require payment in a currency other than the United States Dollar, the Company has recorded foreign currency (income) losses within the accompanying condensed consolidated statement of operations.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)
9 Months Ended
Sep. 30, 2023
Policies  
Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

The FASB issues ASUs to amend the authoritative literature in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). There have been a number of ASUs to date, including those above, that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company’s financial statement.

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Non-Controlling Interests: Redeemable Noncontrolling Interest (Tables)
9 Months Ended
Sep. 30, 2023
Tables/Schedules  
Redeemable Noncontrolling Interest

 

   

 

Non-Controlling

   

 

Interest

Balance at December 31, 2022

 

$(221,796) 

   

 

 

Net loss attributable to non-controlling interest

 

(54) 

Balance at March 31, 2023

 

$(221,850) 

v3.23.3
Note 2 - Summary of Significant Accounting Policies: Going Concern (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Details    
Cash and cash equivalents $ 1,116 $ 10,672
Working Capital $ 365,135  
v3.23.3
Note 2 - Summary of Significant Accounting Policies: Principles of Consolidation (Details)
Sep. 30, 2023
Details  
Subsidiary, Ownership Percentage, Parent 60.00%
v3.23.3
Note 2 - Summary of Significant Accounting Policies: Non-Controlling Interests: Redeemable Noncontrolling Interest (Details) - USD ($)
9 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Details    
Noncontrolling Interest in Variable Interest Entity $ (221,850) $ (221,796)
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest $ (54)  
v3.23.3
Note 3 - Related Party Transactions (Details) - USD ($)
9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Related party advances and accruals $ 5,877   $ 5,500
Chief Executive Officer      
Salary and Wage, Excluding Cost of Good and Service Sold 108,000 $ 108,000  
Chief Executive Officer - Accrued Salaries      
Related party advances and accruals 252,000   144,000
Chief Executive Officer - Operating Expenditures      
Related party advances and accruals $ 5,877   $ 5,500
v3.23.3
Note 4 - Stockholders' Deficit (Details) - USD ($)
9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Details    
Proceeds from sale of common stock $ 0 $ 49,930
v3.23.3
Note 5 - Advances (Details) - USD ($)
9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Details    
Short-term advances $ 30,200 $ 0

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