Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | NORTHSTAR ELECTRONICS INC | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 1,082,027 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 79,396,847 | |
Entity Public Float | $ 630,000 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | neik |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 23,752 | $ 17,288 |
Total current assets | 23,752 | 17,288 |
Total assets | 23,752 | 17,288 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 315,816 | 409,098 |
Loans payable | 424,276 | 421,631 |
Due to Directors | 499,734 | 454,956 |
Total current liabilities | 1,239,826 | 1,285,685 |
Long-term liabilities: | ||
Total liabilities | $ 1,239,826 | $ 1,285,685 |
Commitments and contingencies | ||
Stockholders' equity (deficit): | ||
Preferred stock value | $ 456,209 | $ 456,209 |
Common stock value | 7,940 | 7,078 |
Additional paid-in capital | 8,105,572 | 8,051,434 |
Accumulated other comprehensive income (loss) | 28,256 | 28,256 |
Gain (loss) on discontinued operations | (3,966,579) | (4,072,358) |
Contingency reserve | 7,500,000 | 7,500,000 |
Accumulated deficit | (13,347,472) | (13,239,016) |
Total stockholders' equity (deficit) | (1,216,074) | (1,268,397) |
Total liabilities and stockholders' equity (deficit) | $ 23,752 | $ 17,288 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheets | ||
Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Issued | 535,496 | 535,496 |
Common Stock, Par Value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Issued | 79,396,847 | 70,771,847 |
Common Stock, Outstanding | 79,396,847 | 70,771,847 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement | |||
Revenues | $ 10,526 | $ 7,410 | |
Gross profit | 10,526 | 7,410 | |
Expenses: | |||
Travel, marketing and business development | $ 4,926 | ||
Management fees | 50,000 | 50,000 | 50,000 |
Administration | 27,050 | 25,000 | 25,000 |
Consulting fees | 2,460 | 25,200 | |
Professional fees | 6,250 | ||
Office and miscellaneous | 20,634 | 11,113 | 9,496 |
Foreign exchange gain (loss) | 2,864 | ||
Total expenses | 108,456 | 86,113 | 109,696 |
Net income (loss) | (108,456) | (75,587) | (102,286) |
Other comprehensive income: | |||
Gain on settlement of accounts payable | 105,779 | ||
Net comprehensive gain (loss) | $ (2,677) | $ (75,587) | $ (102,286) |
Net income (loss) per share - basic and diluted | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 75,084,347 | 60,035,600 | 59,720,600 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders' Equity |
Beginning Balance, shares at Dec. 31, 2011 | 488,586 | 53,377,824 | ||||
Beginning Balance, amount at Dec. 31, 2011 | $ 409,299 | $ 5,338 | $ 7,058,546 | $ 4,038,898 | $ (12,780,130) | $ (1,268,049) |
Stock issued for cash, shares | 1,805,554 | |||||
Stock issued for cash, value | $ 181 | 39,819 | 40,000 | |||
Stock issued for services, shares | 6,784,400 | |||||
Stock issued for services, value | $ 678 | 164,660 | 165,338 | |||
Stock issued to settle debt, shares | 4,000,000 | |||||
Stock issued to settle debt, value | $ 400 | 199,600 | 200,000 | |||
Stock issued for discontinued business, shares | 5,000,000 | |||||
Stock issued to discontinued business, value | $ 500 | 582,500 | 583,000 | |||
Stock issued for correction, shares | 407,401 | |||||
Stock issued for correction, value | $ 41 | (41) | ||||
Net loss for the period | (583,000) | (281,013) | (864,013) | |||
Ending Balance, shares at Dec. 31, 2012 | 488,586 | 71,375,179 | ||||
Ending Balance, amount at Dec. 31, 2012 | $ 409,299 | $ 7,138 | 8,045,084 | 3,455,898 | (13,061,143) | (1,143,724) |
Stock issued to settle debt, shares | 1,330,000 | |||||
Stock issued to settle debt, value | $ 133 | 53,067 | 53,200 | |||
Series A Preferred Stock issued, shares | 46,910 | (1,933,332) | ||||
Series A Preferred Stock issued, value | $ 46,910 | $ (193) | (46,717) | |||
Net loss for the period | (102,286) | (102,286) | ||||
Ending Balance, shares at Dec. 31, 2013 | 535,496 | 70,771,847 | ||||
Ending Balance, amount at Dec. 31, 2013 | $ 456,209 | $ 7,078 | 8,051,434 | 3,455,898 | (13,163,429) | (1,192,810) |
Net loss for the period | (75,587) | (75,587) | ||||
Ending Balance, shares at Dec. 31, 2014 | 535,496 | 70,771,847 | ||||
Ending Balance, amount at Dec. 31, 2014 | $ 456,209 | $ 7,078 | 8,051,434 | 3,455,898 | (13,239,016) | (1,268,397) |
Stock issued for cash, shares | 8,625,000 | |||||
Stock issued for cash, value | $ 862 | 54,138 | 55,000 | |||
Net loss for the period | 105,779 | (108,456) | (2,677) | |||
Ending Balance, shares at Dec. 31, 2015 | 535,496 | 70,771,847 | ||||
Ending Balance, amount at Dec. 31, 2015 | $ 456,209 | $ 7,940 | $ 8,105,572 | $ 3,561,677 | $ (13,347,472) | $ (1,216,074) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net comprehensive gain (loss) | $ (2,677) | $ (75,587) | $ (102,286) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Gain on settlement of accounts payable | 105,779 | ||
Services paid with common stock | 25,200 | ||
Changes in operating assets and liabilities | |||
Increase (decrease) in accounts payable and accrued liabilities | 12,500 | 25,000 | 25,000 |
Cash used in operating activities | (95,956) | (50,587) | (52,086) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of shares, net | 55,000 | ||
Proceeds from loan advances | 2,642 | 20,000 | |
Proceeds from advances from directors | 44,778 | 47,389 | 52,566 |
Cash provided by (used in) financing activities | 102,420 | 67,389 | 52,566 |
Increase (decrease) in cash and cash equivalents | 6,464 | 16,802 | 480 |
Cash and cash equivalents, beginning of period | 17,288 | 486 | 6 |
Cash and cash equivalents, end of period | $ 23,752 | $ 17,288 | $ 486 |
SUPPLEMENTAL INFORMATION | |||
Income taxes paid | |||
Interest paid |
Nature of Operations and Going
Nature of Operations and Going Concern | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Nature of Operations and Going Concern | 1. NATURE OF OPERATIONS AND GOING CONCERN Northstar Electronics Inc (the Company) was incorporated on May 11, 1998 in the state of Delaware. These financial statements are consolidated with the Companys wholly owned subsidiary, National Five Holding Ltd. Any intercompany transactions have been eliminated on consolidation. The accounts of Northstar Technical Inc. ("NTI") and Northstar Network Ltd. ("NNL"), formerly wholly owned subsidiaries of the Company, have been written off in prior years as the operations of these subsidiaries have been discontinued. The Company's business activities are conducted in Canada. However, the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America with all figures translated into United States dollars for financial reporting purposes. The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will be able to continue as a going-concern and contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As at December 31, 2015 the Company incurred a net loss from operations of $108,456 (2014: $75,587 and 2013: $102,286) and had a working capital deficiency of $1,216,074 (2014: $1,268,397 and 2013: $1,192,810). Management has undertaken initiatives for the Company to continue as a going-concern. For example, the Company is negotiating to secure an equity financing in the short-term and is in discussions with several investors. These initiatives are in recognition that for the Company to continue as a going-concern it must generate sufficient cash flows to meet its obligations and expenses. Management is unable to predict the results of its initiatives at this time. Should management be unsuccessful in its initiative to finance its operations, the Companys ability to continue as a going-concern will remain in doubt. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES a. Revenue recognition For sales under certain long-term contracts, the Company uses the out-put percentage of completion method to recognize revenue. Actual sales and cost values for units being delivered are used as the basis for recording revenue and its associated margin. Under this method, revenue is recognized when title to products is transferred to the customer. For sales under other certain long-term contracts, the Company uses the input-basis percentage of completion method to recognize revenue. Under this method, revenue is recognized based on the ratio of cost incurred to date to the total estimated costs at the completion of the contract. b. Cash and Cash Equivalents Cash and cash equivalents consist of commercial accounts, trust accounts and interest-bearing bank deposit. Items are considered to be cash equivalents if the original maturity is three months or less. c. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist primarily of amounts due to the Company resulting from normal business activities. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible. d. Inventory Inventories consist of raw material stated at the lower of cost and net realizable value, with cost being determined on a first-in, first-out (FIFO) basis, and unbilled work in progress stated at cost. e. Research and development Research and development costs are expensed to operations as incurred. f. Deferred contract costs The Company accounts for contract costs incurred prior to commencement of production under long term contracts in accordance with FASB Accounting Standards Codification Topic ASC 340, Other Assets and Deferred Costs. Costs on long-term contracts and programs in progress represent recoverable costs incurred for production or contract-specific facilities and equipment, allocable operating overhead, advances to suppliers and general and administrative expenses, whose recovery from future contract revenue is probable. Deferred contract costs are recognized into income on a pro-rata basis in accordance with the sales incurred to date as a percentage of expected sales. g. Investment tax credits Investment tax credit refunds arising from the incurrence of qualifying research and development expenditures are not recognized until the applicable project is approved as a qualifying research and development project by Canada Revenue Agency. The refunds are recorded as a reduction of the applicable expense. h. Equipment Equipment is recorded at cost less any government assistance received, and is amortized over the estimated useful lives of the equipment using the following annual rates: Computer equipment 30% declining-balance Computer software 30% declining-balance Furniture and equipment 20% declining-balance Manufacturing equipment 20% declining-balance Leasehold improvements 20% straight-line i. Long-lived assets The Company accounts for long-lived assets in accordance with the provisions of ASC 350 (formerly SFAS No.144, Accounting for the Impairment or Disposal of Long-Lived Assets). The statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. j. Government assistance The Companys subsidiaries have been awarded research and development assistance under certain Government of Canada assistance programs. Amounts received or receivable under these programs are recorded as other income at the time the amounts are approved for payment by the government agency. Advances for expenses which the Company has yet to incur are also included in deferred revenue (2014 - $0: 2013 - $0: 2012 - $0). k. Foreign currency translation The Company's operations and activities are conducted principally in Canada. Hence the Canadian dollar is the functional currency. Amounts incurred in U.S. dollars are translated into the functional currency as follows: (i) Monetary assets and liabilities at the rate of exchange in effect as at the balance sheet date; (ii) Non-monetary assets and liabilities at the exchange rates prevailing at the time of the acquisition of the assets or assumption of the liabilities; and (iii) Revenues and expenditures at rates approximating the average rate of exchange for the year. For reporting purposes, assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment are translated to U.S. dollars at year end exchange rates. Profit and loss accounts are translated at the average rates for the year. Translation adjustments are recorded as other comprehensive income (loss) and accumulated other comprehensive loss within stockholders equity. l. Other comprehensive income (loss) The Company has other comprehensive income (loss) arising from foreign currency translations and from the write off of the subsidiary company liabilities which are in excess of their assets. Accordingly, pursuant to ASC 220, Reporting Comprehensive Income, other comprehensive income (loss) is shown as a separate non cash component of stockholders' equity (deficit). m. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates relate to deferred contract costs, revenue recognition, the determination of the impairment of long-lived assets, the estimation of useful lives, rates and methods for amortization, inventory valuation and realization, recognition of bad debt allowances, the calculation of stock based compensation, valuation of deferred tax assets and liabilities, accounts payable and accrued liabilities and deferred revenue. Management believes the estimates are reasonable however actual results could differ from those estimates and would impact future results of operations and cash flows. n. Income taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740 whereby the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured that it is more likely than not that it will utilize the net operating losses carried forward in future years. Accordingly any potential benefits of income tax losses are offset by a valuation allowance. The Company will periodically assess its tax filing exposures related to periods that are open to examination. Based on the latest available information, we evaluate tax positions to determine whether the position will more likely than not be sustained upon examination by the Internal Revenue Service. If it is determined that the tax position is more likely than not to be sustained, the Company records the largest amount of benefit that is more likely than not to be realized when the tax position is settled. If the Company cannot reach that determination, no benefit is recorded. Interest and penalties related to income taxes are recorded as a component of income tax expense in the financial statements. On January 1, 2007, the Company adopted the provisions of FIN 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109, Accounting for Income Taxes. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in the entitys financial statements in accordance with SFAS No. 109. As of the date of adoption, the Company had no unrecognized income tax benefits, and accordingly, the adoption of FIN 48 did not result in a cumulative effect adjustment to the Companys retained earnings and the annual effective tax rate was not affected. Should the Company incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of interest expense and operating expense, respectively. o. Net loss per share before comprehensive income Net loss per share calculations are based on the weighted average number of common shares outstanding during the year. Diluted loss per share is not shown as the effects of the outstanding stock options and warrants are anti-dilutive. p. Shipping and handling costs Shipping and handling costs are recognized as incurred and included in Cost of Sales in the consolidated statement of operations and comprehensive loss. q. Warranties Provisions for estimated expenses related to product warranties are made at the time products are sold. These estimates are established using historical information on the nature, frequency, and average cost of warranty claims. r. Equity-based compensation Equity-based compensation is calculated in accordance with ASC 505 and ASC 718 (formerly SFAS 123(R), Share-based Payments). ASC 505 and ASC 718 requires the cost of all share-based payment transactions to be recognized in an entitys financial statements, establishes fair value as the measurement objective and requires entities to apply a fair-value-based measurement method in accounting for share-based payment transactions. ASC 505 and ASC 718 applies to all awards granted, modified, repurchased or cancelled after July 1, 2005 and unvested portions of previously issued and outstanding awards. The Company adopted this statement for its first quarter starting January 1, 2006. Prior to 2006, the Company adopted the disclosure provisions of ASC 505 and ASC 718 for stock options granted to employees and directors. The Company disclosed on a supplemental basis, the pro-forma effect of accounting for stock options awarded to employees and directors, as if the fair value based method had been applied, using the Black-Scholes option-pricing model. s. Fair value measurements Effective January 1, 2008 the Company adopted ASC 820, Fair Value Measurements. ASC 820 provides a definition of fair value, establishes a hierarchy for measuring fair value under generally accepted accounting principles and requires certain disclosures about fair values used in the financial statements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the primary or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: Level 1 Level 2 Level 3 t. Recently adopted accounting pronouncements In March 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-11(ASU 2010-11), Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives. The amendments in this Update are effective for each reporting entity at the beginning of its first fiscal quarter beginning after June 15, 2010. Early adoption is permitted at the beginning of each entitys first fiscal quarter beginning after issuance of this Update. Adoption of this standard did not have a material effect on the financial position, results of operations or cash flows of the Company. In February 2010, the FASB Accounting Standards Update 2010-10 (ASU 2010-10), Consolidation (Topic 810): Amendments for Certain Investment Funds. The amendments in this Update are effective as of the beginning of a reporting entitys first annual period that begins after November 15, 2009 and for interim periods within that first reporting period. Early application is not permitted. The Companys adoption of provisions of ASU 2010-10 did not have a material effect on the financial position, results of operations or cash flows. In February 2010, the FASB issued ASU No. 2010-09 Subsequent Events (ASC Topic 855) Amendments to Certain Recognition and Disclosure Requirements (ASU No. 2010-09). ASU No. 2010-09 requires an entity that is an SEC filer to evaluate subsequent events through the date that the financial statements are issued and removes the requirement for an SEC filer to disclose a date, in both issued and revised financial statements, through which the filer had evaluated subsequent events. The adoption did not have an impact on the Companys financial position and results of operations. In January 2010, the FASB issued Accounting Standards Update (ASU) No. 2010-06, Improving Disclosures about Fair Value Measurements. ASU No. 2010-06 amends (ASC) 820 and clarifies and provides additional disclosure requirements related to recurring and non-recurring fair value measurements and employers disclosures about postretirement benefit plan assets. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009. The adoption of ASU 2010-06 did not have a material impact on the Companys financial statements. In January 2010, the FASB issued an amendment to ASC 505, Equity, where entities that declare dividends to shareholders that may be paid in cash or shares at the election of the shareholders are considered to be a share issuance that is reflected prospectively in EPS, and is not accounted for as a stock dividend. This standard is effective for interim and annual periods ending on or after December 15, 2009 and is to be applied on a retrospective basis. The adoption of this standard did not have a significant impact on the Companys consolidated financial statements. In January 2010, the FASB issued an amendment to ASC 820, Fair Value Measurements and Disclosure, to require reporting entities to separately disclose the amounts and business rationale for significant transfers in and out of Level 1 and Level 2 fair value measurements and separately present information regarding purchase, sale, issuance, and settlement of Level 3 fair value measures on a gross basis. This standard, for which the Company is currently assessing the impact, is effective for interim and annual reporting periods beginning after December 15, 2009 with the exception of disclosures regarding the purchase, sale, issuance, and settlement of Level 3 fair value measures which are effective for fiscal years beginning after December 15, 2010. The adoption of this standard is not expected to have a significant impact on the Companys consolidated financial statements. In October 2009, the FASB issued an amendment to the accounting standards related to certain revenue arrangements that include software elements. This standard clarifies the existing accounting guidance such that tangible products that contain both software and non-software components that function together to deliver the products essential functionality, shall be excluded from the scope of the software revenue recognition accounting standards. Accordingly, sales of these products may fall within the scope of other revenue recognition standards or may now be within the scope of this standard and may require an allocation of the arrangement consideration for each element of the arrangement. In October 2009, FASB issued an amendment to the accounting standards related to the accounting for revenue in arrangements with multiple deliverables including how the arrangement consideration is allocated among delivered and undelivered items of the arrangement. Among the amendments, this standard eliminated the use of the residual method for allocating arrangement considerations and requires an entity to allocate the overall consideration to each deliverable based on an estimated selling price of each individual deliverable in the absence of having vendor-specific objective evidence or other third party evidence of fair value of the undelivered items. This standard also provides further guidance on how to determine a separate unit of accounting in a multiple-deliverable revenue arrangement and expands the disclosure requirements about the judgments made in applying the estimated selling price method and how those judgments affect the timing or amount of revenue recognition. This standard became effective on January 1, 2011 and had no material impact on the Company. In April 2011, the FASB issued new accounting guidance for purposes of measuring the impairment of receivables and evaluating whether a troubled debt restructuring has occurred. An entity should disclose the total amount of receivables and the allowance for credit losses as of the end of the period of adoption related to those receivables that are newly considered impaired under Section 310-10-35 for which impairment was previously measured under Subtopic 450-20, Contingencies-Loss Contingencies. Currently, this guidance is anticipated to be effective for interim and annual periods ending after June 15, 2011. The adoption of this guidance is not expected to have an impact on our consolidated financial position, results of operations, cash flows, or disclosures. In December 2010, the FASB issued ASU 2010-28, Intangibles - Goodwill and Other (Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts. The ASU does not prescribe a specific method of calculating the carrying value of a reporting unit in the performance of step 1 of the goodwill impairment test (i.e. equity-value-based method or enterprise-value-based method). However, it requires entities with a zero or negative carrying value to assess, considering qualitative factors such as those used to determine whether a triggering event would require an interim goodwill impairment test (listed in ASC 350-20-35-30, Intangibles - Goodwill and Other - Subsequent Measurement, whether it is more likely than not that a goodwill impairment exists and perform step 2 of the goodwill impairment test if so concluded. ASU 2010-28 is effective for the Company beginning January 1, 2011 and early adoption is not permitted. The Company does not expect the adoption of ASU 2010-28 to have a material impact on its consolidated financial position or results of operations. The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Financial Instruments Disclosur
Financial Instruments Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Financial Instruments Disclosure | 3. FINANCIAL INSTRUMENTS Fair values The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and loans payable approximate their fair values because of the short maturity of these financial instruments. The carrying value of the Companys long-term debt approximates fair value as the loans bear market rates of interest. No interest has been imputed on non-interest bearing loans from government entities. Interest rate risk The Company is not exposed to significant interest rate risk due to the fixed rates of interest on its monetary assets and liabilities. Credit risk The Company is exposed to credit risk with respect to its accounts receivable. The Company follows a program of credit evaluations of customers and limits the amount of credit extended when deemed necessary. The Company maintains provisions for potential credit losses and any such losses to date have been within managements expectations. Currency risk The Company is subject to currency risk as certain of the assets and liabilities are denominated in Canadian currencies. The exchange rate conversion to US dollars may vary from time to time. |
Concentrations and Economic Dep
Concentrations and Economic Dependence Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Concentrations and Economic Dependence Disclosure | 4. CONCENTRATIONS AND ECONOMIC DEPENDENCE For the years ended December 31, 2015 and 2014 the Company has discontinued its operations and had no accounts receivable. All of the Companys assets and liabilities are located in Canada. |
Loans Payable Disclosure
Loans Payable Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Loans Payable Disclosure | 5. LOANS PAYABLE 2015 2014 2013 Demand loans $ 407,349 $ 404,704 $ 384,704 Repayable government assistance - - - Interest payable 16,927 16,927 16,927 $ 424,276 $ 421,631 $ 401,631 The demand loans are unsecured with no fixed terms of repayment. |
Related Party Transactions Disc
Related Party Transactions Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Related Party Transactions Disclosure | 6. RELATED PARTY TRANSACTIONS a. The amounts due to directors have no specific terms of repayment and are subordinated to amounts due to ACOA (note 7). b. The Company accrued management fees payable of $50,000 in total to a director of the Company for his services as an officer of the Company (2014: $50,000 and 2013: $50,000). The above transactions were in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. |
Contingent Liabilities Disclosu
Contingent Liabilities Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Contingent Liabilities Disclosure | 7. CONTINGENT LIABILITIES The Company is contingently liable to repay $2,294,755 in assistance received under the Atlantic Innovation Fund, repayable annually at the rate of 5% of gross revenues from sales of products resulting from the Companys research and development project. The Company became in default of this conditional loan, was unable to represent itself in Newfoundland court and ACOA was awarded a $7,500,000 judgment against the Company. The Company generated negligible revenues from the program and is in absolute disagreement with this outcome. See note 12. |
Stock Options Disclosure
Stock Options Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Stock Options Disclosure | 8. STOCK OPTIONS For purposes of calculating the compensation cost consistent with ASC 505 and ASC 718, the fair value is estimated on the date of grant using the binomial method. Volatility is based on an average of the implied volatility in the open market and the annualized volatility of the Companys stock history. The following table shows the weighted-average assumptions used for grants of stock options as well as the fair value of the grants based on those assumptions: 2015 2014 Expected dividend yield - - Forfeiture rate - - Volatility 30.00% 30.00% Risk free interest rate 2.70% 2.70% Expected average life 2.5 year 2.5 year Fair Value of options granted n/a n/a The forfeiture rate is based on the historical annualized forfeiture rate, which is consistent with prior years. This rate includes only pre-vesting forfeitures. Volatility is based on an average of the implied volatility in the open market and the annualized volatility of the Companys stock price over the entire stock history. The risk free interest rate used is the implied yield currently available from the Canadian Treasury zero-coupon yield curve over the contractual term of the options. The expected weighted-average life is based on historical exercise behaviour, which compares the average life of the options that have already been exercised or cancelled with the exercise life of all unexercised options. The exercise life of unexercised options assumes that the option will be exercised at the midpoint of the vesting date and the full contractual term. These assumptions are consistent with the assumptions used in prior years. Stock option activity for the years ended December 31, 2011 and 2010 are as follows: Number of Shares Exercise Price per Share Weighted Average Exercise Price Balance December 31, 2013 50,000 $0.50 $0.50 Granted during the year - - - Cancelled/Expired - - - Balance December 31, 2014 50,000 $0.50 $0.50 Granted during the year - - - Cancelled/Expired (50,000) $0.50 $0.50 Balance December 31, 2015 - - - As at December 31, 2015 the outstanding stock options granted to directors, employees and others are as follows: Exercise Number of Shares Expiry Date Price 2015 2014 March 31, 2015 $0.50 - 50,000 Total outstanding and exercisable - - 50,000 Weighted average outstanding life of options (years) - - 1.16 Warrants Number of Shares Exercise Price per Share Weighted Average Exercise Price Balance December 31, 2013 1,015,526 $0.15 - $0.75 $0.64 Granted during the year - - - Exercised during the year - - - Balance December 31, 2014 1,015,526 $0.15 - $0.75 $0.64 Granted during the year - - - Exercised during the year - - - Balance December 31, 2015 1,015,526 $0.15 - $0.75 $0.64 As at December 31, 2015 the outstanding warrants are as follows: Exercise Number of Shares Expiry Date Price 2015 2014 Open $ 0.50 389,170 389,170 Open $0.75 389,170 389,170 Open $0.15 185,586 185,586 Open $ 0.25 51,600 51,600 Total outstanding and exercisable 1,015,526 1,015,526 Weighted average outstanding life of options (years) Open Open In 2005, the Company issued 389,170 Class A warrants exercisable at $0.50 per share and 389,170 Class B warrants exercisable at $0.75 per share. The Class A and Class B warrants expire six months after the closing bid price for the common stock of the Company has been over $0.65 and $1.00 per share respectively for five consecutive trading days. In 2008, the Company issued 51,600 warrants exercisable at $0.25 per share. |
Income Taxes Disclosure
Income Taxes Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Income Taxes Disclosure | 9. INCOME TAXES Income taxes vary from the amount that would be computed by applying the estimated combined statutory income tax rate (34%) for the following reasons: 2015 2014 (Loss) earnings before income taxes $ (677) $ (1,807,955) Income tax rate 34% 34% Expected income tax expense (recovery) based on above rates (230) (614,704) Increase (decrease) due to: Impact of lower statutory tax rates on foreign subsidiaries -- 73,000 Non-deductible expenses -- 100,000 Other permanent differences -- (50,000) Effect of expiry of losses -- 400,000 Change in valuation allowance 230 91,704 Provision for income taxes $ -- $ -- Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company's carried losses for income tax purposes are $7,311,774, which may be carried forward to apply against future income tax, expiring between 2026 and 2030. The future tax benefit of these loss carry-forwards has been offset with a full valuation allowance. These losses expire as follows: 2026 681,591 2027 718,441 2028 1,791,899 2029 1,039,431 2030 1,272,447 2031 1,807,955 $ 7,311,774 The Company has adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of SFAS 109. (FIN 48), as codified in ASC 740. ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. The Company did not file its U.S. federal income tax returns, including, without limitation, information returns on Internal Revenue Service (IRS) Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations for the years ended December 31, 2007 through 2015. Failure to furnish any information with respect to any foreign business entity required, within the time prescribed by the IRS, subjects the Company to certain civil penalties. The Company did not file the information reports for the years ended December 31, 2007 through 2011 concerning its interest in foreign bank accounts on TDF 90-22.1, Report of Foreign Bank and Financial Accounts (FBARs). For not complying with the FBAR reporting and recordkeeping requirements, the Company is subject to civil penalties up to $10,000 for each of its foreign bank. The Company does not believe that the failure to file the FBAR was willful and intends to seek a waiver of any penalties. The Company is unable to determine the amount of any penalties that may be assessed at this time and believes that penalties, if any, that may be assessed would not be material to the consolidated financial statements. In addition, because the Company did not generate any income in the United States or otherwise have any U.S. taxable income, the Company does not believe that it owes U.S. federal income taxes in respect to any transactions that the Company or any of its subsidiaries may have engaged in through December 31, 2015. However, there can be no assurance that the IRS will agree with the position, and therefore the Company ultimately could be held liable for U.S. federal income taxes, interest and penalties. |
Common Stock Disclosure
Common Stock Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Common Stock Disclosure | 10. COMMON STOCK During the year ended December 31, 2015, the Company issued 8,625,000 common shares for cash of $55,000 pursuant to a private placement. No shares were issued during the comparative year ended December 31, 2014. Preferred Shares Issued for cash: The preferred shares bear interest at 10% per annum paid semiannually not in advance and are convertible to shares of common stock of the Company after two years from receipt of funds at a 20% discount to the then current market price of the Companys common stock. The preferred shares may be converted after six months and before two years under similar terms but with a 15% discount to market. At December 31, 2015 the Company had received $456,209 for 535,496 preferred shares. |
Loss Per Share Disclosure
Loss Per Share Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Loss Per Share Disclosure | 11. LOSS PER SHARE The potentially dilutive securities that were excluded from the earnings (loss) per share calculation consist of stock options with an exercise price greater than the average market price of the Common Shares. 1,015,526 shares were potentially dilutive in 2015 (2014: 1,065,526). |
Net Benefit From Abandonment of
Net Benefit From Abandonment of Operations Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Net Benefit From Abandonment of Operations Disclosure | 12. NET BENEFIT FROM ABANDONMENT OF OPERATIONS The Company became unable to provide sufficient cash to successfully operate its business and fulfill its contract obligations to its customer - due to its inability to perform, the Company lost its contracts and discontinued its subsidiaries. Accounts of abandoned subsidiary companies written off: Cash $ 36 Accounts receivable (175,361) Prepaid expense (22,537) Inventories (318,219) Fixed assets (30,791) Accounts payable 2,096,577 Loans payable 646,437 Long term debt 1,721,841 Due to Directors 633,094 Deferred revenue 112,054 Other comprehensive debits (652,489) Net benefit from abandonment of operations 4,010,642 ACOA contingent liability loss reserve (7,500,000) Net loss on abandonment of operations (3,489,358) Additional loss incurred December 31, 2012 (583,000) Total loss $ (4,072,358) |
Reporting Issuer Requirements
Reporting Issuer Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Reporting Issuer Requirements | NOTE 13. REPORTING ISSUER REQUIREMENTS The Company became delinquent in filing its quarterly and annual reports required by a reporting issuer and thereby gave up its reporting issuer status in the United States. |
Significant Accounting Polici20
Significant Accounting Policies: Revenue Recognition Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Revenue Recognition Policy | a. Revenue recognition For sales under certain long-term contracts, the Company uses the out-put percentage of completion method to recognize revenue. Actual sales and cost values for units being delivered are used as the basis for recording revenue and its associated margin. Under this method, revenue is recognized when title to products is transferred to the customer. For sales under other certain long-term contracts, the Company uses the input-basis percentage of completion method to recognize revenue. Under this method, revenue is recognized based on the ratio of cost incurred to date to the total estimated costs at the completion of the contract. |
Significant Accounting Polici21
Significant Accounting Policies: Cash and Cash Equivalents Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Cash and Cash Equivalents Policy | b. Cash and Cash Equivalents Cash and cash equivalents consist of commercial accounts, trust accounts and interest-bearing bank deposit. Items are considered to be cash equivalents if the original maturity is three months or less. |
Significant Accounting Polici22
Significant Accounting Policies: Accounts Receivable and Allowance For Doubtful Accounts Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Accounts Receivable and Allowance For Doubtful Accounts Policy | c. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist primarily of amounts due to the Company resulting from normal business activities. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible. |
Significant Accounting Polici23
Significant Accounting Policies: Inventory Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Inventory Policy | d. Inventory Inventories consist of raw material stated at the lower of cost and net realizable value, with cost being determined on a first-in, first-out (FIFO) basis, and unbilled work in progress stated at cost. |
Significant Accounting Polici24
Significant Accounting Policies: Research and Development Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Research and Development Policy | e. Research and development Research and development costs are expensed to operations as incurred. |
Significant Accounting Polici25
Significant Accounting Policies: Deferred Contract Costs Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Deferred Contract Costs Policy | f. Deferred contract costs The Company accounts for contract costs incurred prior to commencement of production under long term contracts in accordance with FASB Accounting Standards Codification Topic ASC 340, Other Assets and Deferred Costs. Costs on long-term contracts and programs in progress represent recoverable costs incurred for production or contract-specific facilities and equipment, allocable operating overhead, advances to suppliers and general and administrative expenses, whose recovery from future contract revenue is probable. Deferred contract costs are recognized into income on a pro-rata basis in accordance with the sales incurred to date as a percentage of expected sales. |
Significant Accounting Polici26
Significant Accounting Policies: Investment Tax Credits Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Investment Tax Credits Policy | g. Investment tax credits Investment tax credit refunds arising from the incurrence of qualifying research and development expenditures are not recognized until the applicable project is approved as a qualifying research and development project by Canada Revenue Agency. The refunds are recorded as a reduction of the applicable expense. |
Significant Accounting Polici27
Significant Accounting Policies: Equipment Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Equipment Policy | h. Equipment Equipment is recorded at cost less any government assistance received, and is amortized over the estimated useful lives of the equipment using the following annual rates: Computer equipment 30% declining-balance Computer software 30% declining-balance Furniture and equipment 20% declining-balance Manufacturing equipment 20% declining-balance Leasehold improvements 20% straight-line |
Significant Accounting Polici28
Significant Accounting Policies: Long-lived Assets Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Long-lived Assets Policy | i. Long-lived assets The Company accounts for long-lived assets in accordance with the provisions of ASC 350 (formerly SFAS No.144, Accounting for the Impairment or Disposal of Long-Lived Assets). The statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. |
Significant Accounting Polici29
Significant Accounting Policies: Government Assistance (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Government Assistance | j. Government assistance The Companys subsidiaries have been awarded research and development assistance under certain Government of Canada assistance programs. Amounts received or receivable under these programs are recorded as other income at the time the amounts are approved for payment by the government agency. Advances for expenses which the Company has yet to incur are also included in deferred revenue (2014 - $0: 2013 - $0: 2012 - $0). |
Significant Accounting Polici30
Significant Accounting Policies: Foreign Currency Translation Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Foreign Currency Translation Policy | k. Foreign currency translation The Company's operations and activities are conducted principally in Canada. Hence the Canadian dollar is the functional currency. Amounts incurred in U.S. dollars are translated into the functional currency as follows: (i) Monetary assets and liabilities at the rate of exchange in effect as at the balance sheet date; (ii) Non-monetary assets and liabilities at the exchange rates prevailing at the time of the acquisition of the assets or assumption of the liabilities; and (iii) Revenues and expenditures at rates approximating the average rate of exchange for the year. For reporting purposes, assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment are translated to U.S. dollars at year end exchange rates. Profit and loss accounts are translated at the average rates for the year. Translation adjustments are recorded as other comprehensive income (loss) and accumulated other comprehensive loss within stockholders equity. |
Significant Accounting Polici31
Significant Accounting Policies: Other Comprehensive Income (loss) Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Other Comprehensive Income (loss) Policy | l. Other comprehensive income (loss) The Company has other comprehensive income (loss) arising from foreign currency translations and from the write off of the subsidiary company liabilities which are in excess of their assets. Accordingly, pursuant to ASC 220, Reporting Comprehensive Income, other comprehensive income (loss) is shown as a separate non cash component of stockholders' equity (deficit). |
Significant Accounting Polici32
Significant Accounting Policies: Use of Estimates Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Use of Estimates Policy | m. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates relate to deferred contract costs, revenue recognition, the determination of the impairment of long-lived assets, the estimation of useful lives, rates and methods for amortization, inventory valuation and realization, recognition of bad debt allowances, the calculation of stock based compensation, valuation of deferred tax assets and liabilities, accounts payable and accrued liabilities and deferred revenue. Management believes the estimates are reasonable however actual results could differ from those estimates and would impact future results of operations and cash flows. |
Significant Accounting Polici33
Significant Accounting Policies: Income Taxes Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Income Taxes Policy | n. Income taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740 whereby the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured that it is more likely than not that it will utilize the net operating losses carried forward in future years. Accordingly any potential benefits of income tax losses are offset by a valuation allowance. The Company will periodically assess its tax filing exposures related to periods that are open to examination. Based on the latest available information, we evaluate tax positions to determine whether the position will more likely than not be sustained upon examination by the Internal Revenue Service. If it is determined that the tax position is more likely than not to be sustained, the Company records the largest amount of benefit that is more likely than not to be realized when the tax position is settled. If the Company cannot reach that determination, no benefit is recorded. Interest and penalties related to income taxes are recorded as a component of income tax expense in the financial statements. On January 1, 2007, the Company adopted the provisions of FIN 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109, Accounting for Income Taxes. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in the entitys financial statements in accordance with SFAS No. 109. As of the date of adoption, the Company had no unrecognized income tax benefits, and accordingly, the adoption of FIN 48 did not result in a cumulative effect adjustment to the Companys retained earnings and the annual effective tax rate was not affected. Should the Company incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of interest expense and operating expense, respectively. |
Significant Accounting Polici34
Significant Accounting Policies: Net Loss Per Share Before Comprehensive Income Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Net Loss Per Share Before Comprehensive Income Policy | o. Net loss per share before comprehensive income Net loss per share calculations are based on the weighted average number of common shares outstanding during the year. Diluted loss per share is not shown as the effects of the outstanding stock options and warrants are anti-dilutive. |
Significant Accounting Polici35
Significant Accounting Policies: Shipping and Handling Costs Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Shipping and Handling Costs Policy | p. Shipping and handling costs Shipping and handling costs are recognized as incurred and included in Cost of Sales in the consolidated statement of operations and comprehensive loss. |
Significant Accounting Polici36
Significant Accounting Policies: Warranties Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Warranties Policy | q. Warranties Provisions for estimated expenses related to product warranties are made at the time products are sold. These estimates are established using historical information on the nature, frequency, and average cost of warranty claims. |
Significant Accounting Polici37
Significant Accounting Policies: Equity-based Compensation Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Equity-based Compensation Policy | r. Equity-based compensation Equity-based compensation is calculated in accordance with ASC 505 and ASC 718 (formerly SFAS 123(R), Share-based Payments). ASC 505 and ASC 718 requires the cost of all share-based payment transactions to be recognized in an entitys financial statements, establishes fair value as the measurement objective and requires entities to apply a fair-value-based measurement method in accounting for share-based payment transactions. ASC 505 and ASC 718 applies to all awards granted, modified, repurchased or cancelled after July 1, 2005 and unvested portions of previously issued and outstanding awards. The Company adopted this statement for its first quarter starting January 1, 2006. Prior to 2006, the Company adopted the disclosure provisions of ASC 505 and ASC 718 for stock options granted to employees and directors. The Company disclosed on a supplemental basis, the pro-forma effect of accounting for stock options awarded to employees and directors, as if the fair value based method had been applied, using the Black-Scholes option-pricing model. |
Significant Accounting Polici38
Significant Accounting Policies: Fair Value Measurements Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Fair Value Measurements Policy | s. Fair value measurements Effective January 1, 2008 the Company adopted ASC 820, Fair Value Measurements. ASC 820 provides a definition of fair value, establishes a hierarchy for measuring fair value under generally accepted accounting principles and requires certain disclosures about fair values used in the financial statements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the primary or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: Level 1 Level 2 Level 3 |
Significant Accounting Polici39
Significant Accounting Policies: Recently Adopted Accounting Pronouncements Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Recently Adopted Accounting Pronouncements Policy | t. Recently adopted accounting pronouncements In March 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-11(ASU 2010-11), Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives. The amendments in this Update are effective for each reporting entity at the beginning of its first fiscal quarter beginning after June 15, 2010. Early adoption is permitted at the beginning of each entitys first fiscal quarter beginning after issuance of this Update. Adoption of this standard did not have a material effect on the financial position, results of operations or cash flows of the Company. In February 2010, the FASB Accounting Standards Update 2010-10 (ASU 2010-10), Consolidation (Topic 810): Amendments for Certain Investment Funds. The amendments in this Update are effective as of the beginning of a reporting entitys first annual period that begins after November 15, 2009 and for interim periods within that first reporting period. Early application is not permitted. The Companys adoption of provisions of ASU 2010-10 did not have a material effect on the financial position, results of operations or cash flows. In February 2010, the FASB issued ASU No. 2010-09 Subsequent Events (ASC Topic 855) Amendments to Certain Recognition and Disclosure Requirements (ASU No. 2010-09). ASU No. 2010-09 requires an entity that is an SEC filer to evaluate subsequent events through the date that the financial statements are issued and removes the requirement for an SEC filer to disclose a date, in both issued and revised financial statements, through which the filer had evaluated subsequent events. The adoption did not have an impact on the Companys financial position and results of operations. In January 2010, the FASB issued Accounting Standards Update (ASU) No. 2010-06, Improving Disclosures about Fair Value Measurements. ASU No. 2010-06 amends (ASC) 820 and clarifies and provides additional disclosure requirements related to recurring and non-recurring fair value measurements and employers disclosures about postretirement benefit plan assets. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009. The adoption of ASU 2010-06 did not have a material impact on the Companys financial statements. In January 2010, the FASB issued an amendment to ASC 505, Equity, where entities that declare dividends to shareholders that may be paid in cash or shares at the election of the shareholders are considered to be a share issuance that is reflected prospectively in EPS, and is not accounted for as a stock dividend. This standard is effective for interim and annual periods ending on or after December 15, 2009 and is to be applied on a retrospective basis. The adoption of this standard did not have a significant impact on the Companys consolidated financial statements. In January 2010, the FASB issued an amendment to ASC 820, Fair Value Measurements and Disclosure, to require reporting entities to separately disclose the amounts and business rationale for significant transfers in and out of Level 1 and Level 2 fair value measurements and separately present information regarding purchase, sale, issuance, and settlement of Level 3 fair value measures on a gross basis. This standard, for which the Company is currently assessing the impact, is effective for interim and annual reporting periods beginning after December 15, 2009 with the exception of disclosures regarding the purchase, sale, issuance, and settlement of Level 3 fair value measures which are effective for fiscal years beginning after December 15, 2010. The adoption of this standard is not expected to have a significant impact on the Companys consolidated financial statements. In October 2009, the FASB issued an amendment to the accounting standards related to certain revenue arrangements that include software elements. This standard clarifies the existing accounting guidance such that tangible products that contain both software and non-software components that function together to deliver the products essential functionality, shall be excluded from the scope of the software revenue recognition accounting standards. Accordingly, sales of these products may fall within the scope of other revenue recognition standards or may now be within the scope of this standard and may require an allocation of the arrangement consideration for each element of the arrangement. In October 2009, FASB issued an amendment to the accounting standards related to the accounting for revenue in arrangements with multiple deliverables including how the arrangement consideration is allocated among delivered and undelivered items of the arrangement. Among the amendments, this standard eliminated the use of the residual method for allocating arrangement considerations and requires an entity to allocate the overall consideration to each deliverable based on an estimated selling price of each individual deliverable in the absence of having vendor-specific objective evidence or other third party evidence of fair value of the undelivered items. This standard also provides further guidance on how to determine a separate unit of accounting in a multiple-deliverable revenue arrangement and expands the disclosure requirements about the judgments made in applying the estimated selling price method and how those judgments affect the timing or amount of revenue recognition. This standard became effective on January 1, 2011 and had no material impact on the Company. In April 2011, the FASB issued new accounting guidance for purposes of measuring the impairment of receivables and evaluating whether a troubled debt restructuring has occurred. An entity should disclose the total amount of receivables and the allowance for credit losses as of the end of the period of adoption related to those receivables that are newly considered impaired under Section 310-10-35 for which impairment was previously measured under Subtopic 450-20, Contingencies-Loss Contingencies. Currently, this guidance is anticipated to be effective for interim and annual periods ending after June 15, 2011. The adoption of this guidance is not expected to have an impact on our consolidated financial position, results of operations, cash flows, or disclosures. In December 2010, the FASB issued ASU 2010-28, Intangibles - Goodwill and Other (Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts. The ASU does not prescribe a specific method of calculating the carrying value of a reporting unit in the performance of step 1 of the goodwill impairment test (i.e. equity-value-based method or enterprise-value-based method). However, it requires entities with a zero or negative carrying value to assess, considering qualitative factors such as those used to determine whether a triggering event would require an interim goodwill impairment test (listed in ASC 350-20-35-30, Intangibles - Goodwill and Other - Subsequent Measurement, whether it is more likely than not that a goodwill impairment exists and perform step 2 of the goodwill impairment test if so concluded. ASU 2010-28 is effective for the Company beginning January 1, 2011 and early adoption is not permitted. The Company does not expect the adoption of ASU 2010-28 to have a material impact on its consolidated financial position or results of operations. The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Significant Accounting Polici40
Significant Accounting Policies: Equipment Policy: Schedule of Equipment Amortized over the Estimated Useful Lives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Equipment Amortized over the Estimated Useful Lives | Computer equipment 30% declining-balance Computer software 30% declining-balance Furniture and equipment 20% declining-balance Manufacturing equipment 20% declining-balance Leasehold improvements 20% straight-line |
Loans Payable Disclosure_ Sched
Loans Payable Disclosure: Schedule of Loans Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Loans Payable | 2015 2014 2013 Demand loans $ 407,349 $ 404,704 $ 384,704 Repayable government assistance - - - Interest payable 16,927 16,927 16,927 $ 424,276 $ 421,631 $ 401,631 |
Stock Options Disclosure_ Sched
Stock Options Disclosure: Schedule of Stock Options, Valuation Assumptions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Stock Options, Valuation Assumptions | 2015 2014 Expected dividend yield - - Forfeiture rate - - Volatility 30.00% 30.00% Risk free interest rate 2.70% 2.70% Expected average life 2.5 year 2.5 year Fair Value of options granted n/a n/a |
Stock Options Disclosure_ Sch43
Stock Options Disclosure: Schedule of Stock Options, Activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Stock Options, Activity | Number of Shares Exercise Price per Share Weighted Average Exercise Price Balance December 31, 2013 50,000 $0.50 $0.50 Granted during the year - - - Cancelled/Expired - - - Balance December 31, 2014 50,000 $0.50 $0.50 Granted during the year - - - Cancelled/Expired (50,000) $0.50 $0.50 Balance December 31, 2015 - - - |
Stock Options Disclosure_ Sch44
Stock Options Disclosure: Schedule of Options Vested and Outstanding (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Options Vested and Outstanding | Exercise Number of Shares Expiry Date Price 2015 2014 March 31, 2015 $0.50 - 50,000 Total outstanding and exercisable - - 50,000 Weighted average outstanding life of options (years) - - 1.16 |
Stock Options Disclosure_ Sch45
Stock Options Disclosure: Schedule of Warrants, Activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Warrants, Activity | Number of Shares Exercise Price per Share Weighted Average Exercise Price Balance December 31, 2013 1,015,526 $0.15 - $0.75 $0.64 Granted during the year - - - Exercised during the year - - - Balance December 31, 2014 1,015,526 $0.15 - $0.75 $0.64 Granted during the year - - - Exercised during the year - - - Balance December 31, 2015 1,015,526 $0.15 - $0.75 $0.64 |
Stock Options Disclosure_ Sch46
Stock Options Disclosure: Schedule of Warrants, Outstanding (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Warrants, Outstanding | Exercise Number of Shares Expiry Date Price 2015 2014 Open $ 0.50 389,170 389,170 Open $0.75 389,170 389,170 Open $0.15 185,586 185,586 Open $ 0.25 51,600 51,600 Total outstanding and exercisable 1,015,526 1,015,526 Weighted average outstanding life of options (years) Open Open |
Income Taxes Disclosure_ Schedu
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | 2015 2014 (Loss) earnings before income taxes $ (677) $ (1,807,955) Income tax rate 34% 34% Expected income tax expense (recovery) based on above rates (230) (614,704) Increase (decrease) due to: Impact of lower statutory tax rates on foreign subsidiaries -- 73,000 Non-deductible expenses -- 100,000 Other permanent differences -- (50,000) Effect of expiry of losses -- 400,000 Change in valuation allowance 230 91,704 Provision for income taxes $ -- $ -- |
Income Taxes Disclosure_ Summar
Income Taxes Disclosure: Summary of Operating Loss Carryforwards (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Summary of Operating Loss Carryforwards | 2026 681,591 2027 718,441 2028 1,791,899 2029 1,039,431 2030 1,272,447 2031 1,807,955 $ 7,311,774 |
Net Benefit From Abandonment 49
Net Benefit From Abandonment of Operations Disclosure: Accounts of abandoned subsidiary companies written off (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Accounts of abandoned subsidiary companies written off | Cash $ 36 Accounts receivable (175,361) Prepaid expense (22,537) Inventories (318,219) Fixed assets (30,791) Accounts payable 2,096,577 Loans payable 646,437 Long term debt 1,721,841 Due to Directors 633,094 Deferred revenue 112,054 Other comprehensive debits (652,489) Net benefit from abandonment of operations 4,010,642 ACOA contingent liability loss reserve (7,500,000) Net loss on abandonment of operations (3,489,358) Additional loss incurred December 31, 2012 (583,000) Total loss $ (4,072,358) |
Nature of Operations and Goin50
Nature of Operations and Going Concern (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Net income (loss) | $ 108,456 | $ 75,587 | $ 102,286 |
working capital deficiency | $ 1,216,074 | $ 1,268,397 | $ 1,192,810 |
Loans Payable Disclosure_ Sch51
Loans Payable Disclosure: Schedule of Loans Payable (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Details | |||
Demand loans | $ 407,349 | $ 404,704 | $ 384,704 |
Interest payable | 16,927 | 16,927 | 16,927 |
Loans payable | $ 424,276 | $ 421,631 | $ 401,631 |
Related Party Transactions Di52
Related Party Transactions Disclosure (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Management fees paid to related party | $ 50,000 | $ 50,000 | $ 50,000 |
Contingent Liabilities Disclo53
Contingent Liabilities Disclosure (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Details | |
Contingent liability | $ 2,294,755 |
Judgment contingently liable | $ 7,500,000 |
Stock Options Disclosure_ Sch54
Stock Options Disclosure: Schedule of Stock Options, Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Stock options outstanding | 50,000 | 50,000 | |
Exercise Price per share of options outstanding | $ 0.50 | $ 0.50 | |
Options cancelled/expired | (50,000) | ||
Exercise Price for options cancelled/expired | $ 0.50 |
Stock Options Disclosure_ Sch55
Stock Options Disclosure: Schedule of Warrants, Activity (Details) - shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Details | |||
Warrant shares outstanding | 1,015,526 | 1,015,526 | 1,015,526 |
Income Taxes Disclosure_ Sche56
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Income (loss) earnings before income taxes | $ (677) | $ (1,807,955) |
Income tax rate | 34.00% | 34.00% |
Expected income tax expense (recovery) | $ (230) | $ (614,704) |
Impact of lower statutory tax rates on foreign subsidiaries | 73,000 | |
Non-deductible expenses | 100,000 | |
Other permanent differences | (50,000) | |
Effect of expiry of losses | 400,000 | |
Change in valuation allowance | $ 230 | $ 91,704 |
Income Taxes Disclosure_ Summ57
Income Taxes Disclosure: Summary of Operating Loss Carryforwards (Details) | Dec. 31, 2015USD ($) |
Operating losses carried forward | $ 7,311,774 |
Losses that expire in 2026 | |
Operating losses carried forward | 681,591 |
Losses that expire in 2027 | |
Operating losses carried forward | 718,441 |
Losses that expire in 2028 | |
Operating losses carried forward | 1,791,899 |
Losses that expire in 2029 | |
Operating losses carried forward | 1,039,431 |
Losses that expire in 2030 | |
Operating losses carried forward | 1,272,447 |
Losses that expire in 2031 | |
Operating losses carried forward | $ 1,807,955 |
Common Stock Disclosure (Detail
Common Stock Disclosure (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Common stock issued for cash | 8,625,000 | |
Proceeds from issuance of common stock | $ 55,000 | |
Preferred shares, value recorded | $ 456,209 | $ 456,209 |
Preferred shares issued | 535,496 | 535,496 |
Loss Per Share Disclosure (Deta
Loss Per Share Disclosure (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Antidilutive securities excluded from the earnings per share calculation | 1,015,526 | 1,065,526 |
Net Benefit From Abandonment 60
Net Benefit From Abandonment of Operations Disclosure: Accounts of abandoned subsidiary companies written off (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Details | |||
Net benefit from abandonment of operations | $ 4,010,642 | ||
Contingency reserve | 7,500,000 | $ 7,500,000 | $ 7,500,000 |
Net profit (loss) on abandonment of operations | (3,489,358) | ||
Gain (loss) on discontinued business | (583,000) | ||
Total profit (loss) | $ (4,072,358) |