Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Apr. 16, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | NORTHSTAR ELECTRONICS INC | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,082,027 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 98,579,815 | ||
Entity Public Float | $ 1,130,675 | ||
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 | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | neik |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 16,438 | $ 6,078 |
Prepaid expenses | 7,292 | |
Total current assets | 16,438 | 13,370 |
Total assets | 16,438 | 13,370 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 941,115 | 806,445 |
Loans payable | 434,291 | 434,291 |
Due to Directors | 424,538 | 314,550 |
Legal liability | 3,001,471 | 2,706,869 |
Total current liabilities | 4,801,415 | 4,262,155 |
Long-term liabilities: | ||
Total liabilities | 4,801,415 | 4,262,155 |
Commitments and contingencies | ||
Stockholders' equity (deficit): | ||
Preferred stock value | 404,299 | 436,209 |
Common stock value | 9,858 | 8,639 |
Additional paid-in capital | 8,333,396 | 8,194,737 |
Subscriptions receivable | (5,035) | |
Accumulated deficit | (13,527,495) | (12,888,370) |
Total stockholders' equity (deficit) | (4,784,977) | (4,248,785) |
Total liabilities and stockholders' equity (deficit) | $ 16,438 | $ 13,370 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheets | ||
Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Issued | 597,716 | 629,626 |
Common Stock, Par Value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Issued | 98,579,815 | 86,887,609 |
Common Stock, Outstanding | 98,579,815 | 86,887,609 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses: | ||
Research and development | $ 50,280 | $ 120,000 |
Travel, marketing and business development | 17,000 | 60,000 |
Management fees | 105,000 | 85,000 |
Administration | 60,000 | 42,500 |
Consulting | 2,000 | |
Rent and storage | 9,421 | 6,223 |
Professional fees | 36,260 | 25,530 |
Investor relations | 46,622 | 5,390 |
Office and administration | 3,566 | 6,568 |
Filing and transfer agent fees | 15,342 | 12,239 |
Foreign exchange | 192,865 | 68,564 |
Total expenses | 538,356 | 432,014 |
Net loss before other items | (538,356) | (432,014) |
Other items: | ||
Interest expense | 100,769 | 103,274 |
Net income (loss) | $ (639,125) | $ (535,288) |
Net income (loss) per share - basic | $ (0.01) | $ (0.01) |
Net income (loss) per share - diluted | ||
Weighted average number of common shares outstanding - basic and diluted | 92,704,124 | 82,593,602 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Subsciptions | Accumulated Deficit | Total Stockholders' Equity |
Beginning Balance, shares at Dec. 31, 2015 | 79,396,847 | |||||
Beginning Balance, amount at Dec. 31, 2015 | $ 456,209 | $ 7,940 | $ 8,105,572 | $ (12,325,082) | $ (3,755,361) | |
Stock issued for cash, shares | 4,161,494 | |||||
Stock issued for cash, value | $ 416 | 37,084 | 37,500 | |||
Stock issued for conversion of preferred, shares | 1,747,435 | |||||
Stock issued for conversion of preferred, value | (20,000) | $ 125 | 19,875 | |||
Stock issued for debt, shares | 181,833 | |||||
Stock issued for debt, value | $ 18 | 4,346 | 4,364 | |||
Stock issued for goodwill, shares | 1,400,000 | |||||
Stock issued for goodwill, value | $ 140 | 27,860 | (28,000) | |||
Net loss for the period | (535,288) | (535,288) | ||||
Ending Balance, shares at Dec. 31, 2016 | 86,887,609 | |||||
Ending Balance, amount at Dec. 31, 2016 | 436,209 | $ 8,639 | 8,194,737 | (12,888,370) | (4,248,785) | |
Stock issued for cash, shares | 6,905,000 | |||||
Stock issued for cash, value | $ 690 | 61,845 | $ (5,035) | 57,500 | ||
Stock issued for conversion of preferred, shares | 2,037,206 | |||||
Stock issued for conversion of preferred, value | (31,910) | $ 204 | 31,706 | |||
Stock issued for services, shares | 2,750,000 | |||||
Stock issued for services, value | $ 275 | 29,225 | 29,500 | |||
Fair value of warrants issued for services | 15,933 | 15,933 | ||||
Adjustment | $ 50 | (50) | ||||
Net loss for the period | (639,125) | (639,125) | ||||
Ending Balance, shares at Dec. 31, 2017 | 98,579,815 | |||||
Ending Balance, amount at Dec. 31, 2017 | $ 404,299 | $ 9,858 | $ 8,333,396 | $ (5,035) | $ (13,527,495) | $ (4,784,977) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (639,125) | $ (535,288) |
Items not involving cash: | ||
Equity based compensation for consultants and investor relations | 45,433 | |
Equity issued for interest | 77,615 | 4,364 |
Foreign exchange gain (loss) | (208,267) | |
Changes in non-cash working capital: | ||
Changes in prepaid expenses | 7,292 | (7,292) |
Changes in accounts payable and accrued liabilities | 134,670 | 229,829 |
Changes in due to directors | 109,988 | 75,614 |
Changes in interest accrual | 100,769 | 98,910 |
Cash used in operating activities | (36,975) | (45,635) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock | 57,500 | 37,500 |
Proceeds from loans payable | 10,015 | |
Cash provided by (used in) financing activities | 57,500 | 47,515 |
Increase (decrease) in cash and cash equivalents | 10,360 | (17,674) |
Cash and cash equivalents, beginning of period | 6,078 | 23,752 |
Cash and cash equivalents, end of period | 16,438 | 6,078 |
NON-CASH TRANSACTION | ||
Common shares issued | $ 29,500 | $ 32,364 |
Cash Flows (Parenthetical)
Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Common shares issued | $ 29,500 | $ 32,364 |
Issued for interest | ||
Common shares issued | 4,364 | |
Issued for goodwill | ||
Common shares issued | $ 28,000 | |
Issued for consulting | ||
Common shares issued | 2,000 | |
Issued for investor relations | ||
Common shares issued | $ 27,500 |
Nature of Operations and Going
Nature of Operations and Going Concern | 12 Months Ended |
Dec. 31, 2017 | |
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. The Company is doing research and development on single engine aircrafts for business use. The Company's business activities are conducted principally in Canada. However, the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) 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. For the year ended December 31, 2017 the Company incurred a net loss of $639,125 (2016: $535,288) and had a working capital deficiency of $4,784,977 (2016: $4,248,785). Continuation as a going concern is dependent upon the ability of the Company to obtain the necessary financing to meet its obligations and pay its liabilities arising from normal business operations when they come due and ultimately upon its ability to achieve profitable operations. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. Management intends to obtain additional funding by issuing debt and equity financing. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES a. Basis of consolidation The consolidated financial statements include the accounts of the Company and its controlled subsidiary, National Five Holding Ltd, which was inactive during the years ended December 31, 2017 and 2016. 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. Research and development Research and development costs are expensed to operations as incurred. d. Foreign currency translation The functional currencies of the Company and its subsidiary were determined as the US dollar, which is the currency of their primary economic environment. Amounts incurred in Canadian 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. e. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates. f. Income taxes Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, Income Taxes, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not. g. Basic and diluted net loss per share The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive. h. Segments of an enterprise and related information ASC 280, Segment Reporting establishes guidance for the way that public companies report information about operating segments in annual consolidated financial statements and requires reporting of selected information about operating segments in interim consolidated financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. i. Fair value measurements 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 j. Comparative figures Certain comparative figures have been adjusted to conform to the current years presentation. k. Recently adopted accounting pronouncements Recent accounting pronouncements issued by the Financial Accounting Standards Board or other authoritative standards groups with future effective dates are either not applicable or are not expected to be significant to the financial statements of the Company. |
Financial Instruments Disclosur
Financial Instruments Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Financial Instruments Disclosure | 3. FINANCIAL INSTRUMENTS Fair values The carrying values of accounts payable, loans payable, due to directors and legal liability approximate their fair values because of the short maturity of these financial instruments. 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 cash. The Company deposits cash with a high credit quality financial institution as determined by rating agencies. Currency risk The Company is subject to currency risk as certain of the assets and liabilities are denominated in Canadian dollars. The exchange rate conversion to US dollars may vary from time to time. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with its financial liabilities. The Company is reliant upon related parties and share issuance as its sources of cash. The Company has received financing from related parties and share issuances in the past; however, there is no assurance that it will be able to do so in the future. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Accounts Payable and Accrued Liabilities Disclosure | 4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2017 2016 Accounts payable $ 500,115 $ 483,945 Accrued liabilities 441,000 322,500 $ 941,115 $ 806,445 |
Loans Payable Disclosure
Loans Payable Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Loans Payable Disclosure | 5. LOANS PAYABLE 2017 2016 Demand loans $ 417,364 $ 417,364 Interest payable 16,927 16,927 $ 434,291 $ 434,291 The demand loans are non-interest bearing, unsecured with no fixed terms of repayment. |
Related Party Transactions Disc
Related Party Transactions Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Related Party Transactions Disclosure | 6. RELATED PARTY TRANSACTIONS a. The amount of $424,538 (December 31, 2016: $314,550) due to a director of the Company has no specific terms of repayment, is non-interest bearing and unsecured. b. The Company accrued management fees payable of $105,000 in total to a director of the Company for his services as an officer of the Company during the year ended December 31, 2017 (2016: $85,000). c. The Company accrued engineering fees payable of $15,000 in total to a director of the Company for his services during the year ended December 31, 2017 (2016: $Nil), which are included in research and development expense. |
Legal Liability Disclosure
Legal Liability Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Legal Liability Disclosure | 7. LEGAL LIABILITY During 2000 to 2008, the Companys former subsidiaries Northstar Technical Inc. (NTI) and Northstar Network Ltd. (NNL) received funding from Atlantic Canada Opportunities Agency (ACOA) to fund their projects. In 2013, ACOA filed claims against NTI, NNL and the Company for repayments of advances due to events of default. The advances and interests ACOA claimed totaled CAD $3,079,475 ($2,454,649). In accordance with the agreements signed between NTI, NNL and the Company, the Company was jointly and severally liable for the obligations. Further, the claim amount bears a daily interest of CAD $358 from February 15, 2013 to settlement. During the year ended December 31, 2017, the Company accrued interest in the amount of $100,769 (2016: $98,910). 2017 2016 Legal liability $ 2,454,649 $ 2,293,592 Interest payable 546,822 413,277 $ 3,001,471 $ 2,706,869 |
Warrants Disclosure
Warrants Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Warrants Disclosure | 8. WARRANTS Warrant activity for the years ended December 31, 2017 and 2016 is as follows: Number of Warrants Exercise Price per Share Weighted Average Exercise Price Balance December 31, 2015 and 2016 829,940 $0.15 - $0.75 $0.64 Issued 2,500,000 $0.04 0.04 Issued 1,827,500 $0.05 0.05 Balance December 31, 2017 5,157,440 $0.13 As at December 31, 2017 the outstanding warrants are as follows: Exercise Number of Warrants Expiry Date Price 2017 2016 Open (1) $ 0.50 389,170 389,170 Open (1) $ 0.75 389,170 389,170 Open (2) $ 0.25 51,600 51,600 April 20, 2019 $ 0.04 2,500,000 -- November 7, 2018 $ 0.05 1,562,500 -- December 25, 2018 $ 0.05 265,000 -- Total outstanding and exercisable 5,157,440 829,940 Weighted average outstanding life of warrants (years) 0.94 - Open Open (1) These warrants were issued in 2005. The expiry date of the warrants are 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. (2) These warrants were issued in 2008 and they do not have an expiry date. |
Income Taxes Disclosure
Income Taxes Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 Income (Loss) before income taxes $ (639,125) $ (535,288) Income tax rate 34% 34% Expected income tax recovery (217,302) (181,998) Increase (decrease) due to: Change in valuation allowance 217,302 181,998 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. 2017 2016 Deferred tax asset attributable to: Non-capital loss $ 2,999,482 $ 2,782,180 Less: change in valuation allowance (2,999,482) (2,782,180) $ -- $ -- The Company's carried losses for income tax purposes are $8,822,006 which may be carried forward to apply against future income tax, expiring between 2026 and 2037. 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 2032 335,829 2036 535,288 2037 639,125 $ 8,822,006 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 2017. 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 potentially subject to civil penalties up to $10,000 for each of its foreign bank accounts. 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, 2017. 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, 2017 | |
Notes | |
Common Stock Disclosure | 10. COMMON STOCK During the year ended December 31, 2017, the Company issued 2,037,206 common shares on the conversion of 31,910 preferred Class B shares for $31,910. During the year ended December 31, 2017, the Company issued, 6,905,000 common shares for cash of $62,535. Included in subscriptions receivable is $5,035, which was received subsequent to December 31, 2017. During the year ended December 31, 2017, the Company issued 2,750,000 common shares for services with a fair value of $29,500. Included in these issuances were 1,750,000 attached warrants with an exercise price of $0.04 per common stock for a period of two years. The fair value of warrants was determined to be $15,933 using the Black-Scholes Option Pricing Model with the following assumptions: dividend yield - 0%, volatility - 282%, risk-free rate - 1%, and expected life - 2 years. During the year ended December 31, 2016, the Company issued 4,164,494 common shares for $37,500. During the year ended December 31, 2016, the Company issued 1,400,000 common shares with a fair value of $28,000 to a shareholder for goodwill. The shareholder has been actively supporting the Company by subscribing to its preferred and common shares. As this was a benefit to a specific shareholder, the fair value of this issuance was recorded to accumulated deficit. During the year ended December 31, 2016, a preferred Class C shareholder converted 19,975 shares with a value of $20,000 to 1,747,435 common shares. The Company issued 181,833 common shares with a fair value of $4,364 for interest accrued on the 19,875 preferred Class C shares. Preferred Shares Issued for cash: All classes of 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, 2017, the outstanding number of preferred Classes A, B and C shares are 582,716 (December 31, 2016: 614,626), 15,000 (December 31, 2016: 15,000) and nil (December 31, 2016: nil), respectively. |
Loss Per Share Disclosure
Loss Per Share Disclosure | 12 Months Ended |
Dec. 31, 2017 | |
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 5,157,440 warrants (2016: 829,940). The warrants and any preferred share conversions would be antidilutive and therefore excluded. |
Significant Accounting Polici19
Significant Accounting Policies: Basis of Consolidation Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Basis of Consolidation Policy | a. Basis of consolidation The consolidated financial statements include the accounts of the Company and its controlled subsidiary, National Five Holding Ltd, which was inactive during the years ended December 31, 2017 and 2016. |
Significant Accounting Polici20
Significant Accounting Policies: Cash and Cash Equivalents Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 Polici21
Significant Accounting Policies: Research and Development Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Research and Development Policy | c. Research and development Research and development costs are expensed to operations as incurred. |
Significant Accounting Polici22
Significant Accounting Policies: Foreign Currency Translation Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Foreign Currency Translation Policy | d. Foreign currency translation The functional currencies of the Company and its subsidiary were determined as the US dollar, which is the currency of their primary economic environment. Amounts incurred in Canadian 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. |
Significant Accounting Polici23
Significant Accounting Policies: Use of Estimates Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Use of Estimates Policy | e. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates. |
Significant Accounting Polici24
Significant Accounting Policies: Income Taxes Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Income Taxes Policy | f. Income taxes Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, Income Taxes, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not. |
Significant Accounting Polici25
Significant Accounting Policies: Basic and Diluted Net Loss Per Share Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Basic and Diluted Net Loss Per Share Policy | g. Basic and diluted net loss per share The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive. |
Significant Accounting Polici26
Significant Accounting Policies: Segments of An Enterprise and Related Information Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Segments of An Enterprise and Related Information Policy | h. Segments of an enterprise and related information ASC 280, Segment Reporting establishes guidance for the way that public companies report information about operating segments in annual consolidated financial statements and requires reporting of selected information about operating segments in interim consolidated financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. |
Significant Accounting Polici27
Significant Accounting Policies: Fair Value Measurements Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Fair Value Measurements Policy | i. Fair value measurements 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 Polici28
Significant Accounting Policies: Comparative Figures Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Comparative Figures Policy | j. Comparative figures Certain comparative figures have been adjusted to conform to the current years presentation. |
Significant Accounting Polici29
Significant Accounting Policies: Recently Adopted Accounting Pronouncements Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Recently Adopted Accounting Pronouncements Policy | k. Recently adopted accounting pronouncements Recent accounting pronouncements issued by the Financial Accounting Standards Board or other authoritative standards groups with future effective dates are either not applicable or are not expected to be significant to the financial statements of the Company. |
Accounts Payable and Accrued 30
Accounts Payable and Accrued Liabilities Disclosure: Schedule of Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Accounts Payable and Accrued Liabilities | 2017 2016 Accounts payable $ 500,115 $ 483,945 Accrued liabilities 441,000 322,500 $ 941,115 $ 806,445 |
Loans Payable Disclosure_ Sched
Loans Payable Disclosure: Schedule of Loans Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Loans Payable | 2017 2016 Demand loans $ 417,364 $ 417,364 Interest payable 16,927 16,927 $ 434,291 $ 434,291 |
Legal Liability Disclosure_ Sch
Legal Liability Disclosure: Schedule of Legal Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Legal Liabilities | 2017 2016 Legal liability $ 2,454,649 $ 2,293,592 Interest payable 546,822 413,277 $ 3,001,471 $ 2,706,869 |
Warrants Disclosure_ Schedule o
Warrants Disclosure: Schedule of Warrants, Activity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Warrants, Activity | Number of Warrants Exercise Price per Share Weighted Average Exercise Price Balance December 31, 2015 and 2016 829,940 $0.15 - $0.75 $0.64 Issued 2,500,000 $0.04 0.04 Issued 1,827,500 $0.05 0.05 Balance December 31, 2017 5,157,440 $0.13 |
Warrants Disclosure_ Schedule34
Warrants Disclosure: Schedule of Warrants Outstanding (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Warrants Outstanding | Exercise Number of Warrants Expiry Date Price 2017 2016 Open (1) $ 0.50 389,170 389,170 Open (1) $ 0.75 389,170 389,170 Open (2) $ 0.25 51,600 51,600 April 20, 2019 $ 0.04 2,500,000 -- November 7, 2018 $ 0.05 1,562,500 -- December 25, 2018 $ 0.05 265,000 -- Total outstanding and exercisable 5,157,440 829,940 Weighted average outstanding life of warrants (years) 0.94 - Open Open (1) These warrants were issued in 2005. The expiry date of the warrants are 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. (2) These warrants were issued in 2008 and they do not have an expiry date. |
Income Taxes Disclosure_ Schedu
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | 2017 2016 Income (Loss) before income taxes $ (639,125) $ (535,288) Income tax rate 34% 34% Expected income tax recovery (217,302) (181,998) Increase (decrease) due to: Change in valuation allowance 217,302 181,998 Provision for income taxes $ -- $ -- |
Income Taxes Disclosure_ Sche36
Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 2017 2016 Deferred tax asset attributable to: Non-capital loss $ 2,999,482 $ 2,782,180 Less: change in valuation allowance (2,999,482) (2,782,180) $ -- $ -- |
Income Taxes Disclosure_ Summar
Income Taxes Disclosure: Summary of Operating Loss Carryforwards (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2032 335,829 2036 535,288 2037 639,125 $ 8,822,006 |
Nature of Operations and Goin38
Nature of Operations and Going Concern (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Details | ||
Net income (loss) | $ 639,125 | $ 535,288 |
working capital deficiency | $ 4,784,977 | $ 4,248,785 |
Accounts Payable and Accrued 39
Accounts Payable and Accrued Liabilities Disclosure: Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Accounts payable | $ 500,115 | $ 483,945 |
Accrued liabilities | 441,000 | 322,500 |
Accounts payable and accrued liabilities | $ 941,115 | $ 806,445 |
Loans Payable Disclosure_ Sch40
Loans Payable Disclosure: Schedule of Loans Payable (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Demand loans | $ 417,364 | $ 417,364 |
Loans payable | 434,291 | 434,291 |
Demand Loan | ||
Interest payable | $ 16,927 | $ 16,927 |
Related Party Transactions Di41
Related Party Transactions Disclosure (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Due to Directors | $ 424,538 | $ 314,550 |
Accrued management fees payable due to a director | ||
Fees accrued from related parties | 105,000 | $ 85,000 |
Accrued engineering fees payable due to a director | ||
Fees accrued from related parties | $ 15,000 |
Legal Liability Disclosure_ S42
Legal Liability Disclosure: Schedule of Legal Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Legal liability | $ 3,001,471 | $ 2,706,869 |
Warrants Disclosure_ Schedule43
Warrants Disclosure: Schedule of Warrants, Activity (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Warrant shares outstanding | 5,157,440 | 829,940 |
Income Taxes Disclosure_ Sche44
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Details | ||
Income (Loss) before income taxes | $ (639,125) | $ (535,288) |
Income tax rate | 34.00% | 34.00% |
Expected income tax expense (recovery) | $ (217,302) | $ (181,998) |
Change in valuation allowance | $ 217,302 | $ 181,998 |
Income Taxes Disclosure_ Sche45
Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Non-capital loss, deferred tax assets | $ 2,999,482 | $ 2,782,180 |
Change in valuation allowance, deferred tax assets | $ (2,999,482) | $ (2,782,180) |
Income Taxes Disclosure_ Summ46
Income Taxes Disclosure: Summary of Operating Loss Carryforwards (Details) | Dec. 31, 2017USD ($) |
Losses expire 2026 | |
Operating losses carried forward | $ 681,591 |
Losses expire 2027 | |
Operating losses carried forward | 718,441 |
Losses expire 2028 | |
Operating losses carried forward | 1,791,899 |
Losses expire 2029 | |
Operating losses carried forward | 1,039,431 |
Losses expire 2030 | |
Operating losses carried forward | 1,272,447 |
Losses expire 2031 | |
Operating losses carried forward | 1,807,955 |
Losses expire 2032 | |
Operating losses carried forward | 335,829 |
Losses expire 2036 | |
Operating losses carried forward | 535,288 |
Losses expire 2037 | |
Operating losses carried forward | $ 639,125 |
Common Stock Disclosure (Detail
Common Stock Disclosure (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Subscriptions receivable | $ 5,035 | |
Common stock issued for goodwill | 1,400,000 | |
Fair value of shares issued for goodwill | $ 28,000 | |
Conversion of preferred Class B shares | ||
Common stock issued for the conversion of preferred stock | 2,037,206 | |
Number of preferred shares converted | 31,910 | |
Common stock issued for cash | ||
Common stock issued for cash | 6,905,000 | 4,164,494 |
Proceeds from sale of common stock | $ 62,535 | $ 37,500 |
Subscriptions receivable | $ 5,035 | |
Common stock issued for consulting services | ||
Common stock issued for services | 2,750,000 | |
Common shares issued for services | $ 29,500 | |
Fair value of warrants issued for services | $ 15,933 | |
Conversion of preferred Class C shares | ||
Common stock issued for the conversion of preferred stock | 1,747,435 | |
Number of preferred shares converted | 19,975 | |
Value of common stock issued for conversion of preferred | $ 20,000 | |
Common stock issued for interest | 181,833 | |
Fair value of shares issued for interest accrued | $ 4,364 | |
Preferred Class A | ||
Preferred shares outstanding | 582,716 | 614,626 |
Preferred Class B | ||
Preferred shares outstanding | 15,000 | 15,000 |
Loss Per Share Disclosure (Deta
Loss Per Share Disclosure (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Details | ||
Potentially dilutive securities that were excluded from the earnings (loss) per share (Warrants) | 5,157,440 | 829,940 |