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024 Pharma (EEIG)

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2017Apr. 07, 2017
Document And Entity Information
Entity Registrant Name024 Pharma, Inc.
Entity Central Index Key1307969
Document Type10-Q
Document Period End DateMar. 31,
2017
Amendment Flagfalse
Current Fiscal Year End Date--12-31
Is Entity a Well-known Seasoned Issuer?No
Is Entity a Voluntary Filer?Yes
Is Entity's Reporting Status Current?Yes
Entity Filer CategorySmaller Reporting Company
Entity Common Stock, Shares Outstanding336,354,321
Document Fiscal Period FocusQ1
Document Fiscal Year Focus2017

Condensed Balance Sheet (Unaudi

Condensed Balance Sheet (Unaudited)Mar. 31, 2017USD ($)
Current
Cash $ 6,025
Harmonized sale tax recoverable11,372
Due from related companies1,874
Total Current Assets19,271
Fixed assets4,290
Total Assets23,561
Current
Accounts payable and accrued charges3,412
Accrued management salaries1,984
Income taxes payable3,083
Advances from shareholder1,261
Total Current Liabilities9,740
SHAREHOLDERS' EQUITY
Share Capital1
Retained Earnings36,507
Additional paid in capital(22,687)
Total Shareholders' Equity13,821
Total Liabilities and Shareholders' Equity $ 23,561

Condensed Statement of Earnings

Condensed Statement of Earnings (Unaudited)3 Months Ended
Mar. 31, 2017USD ($)
Income Statement [Abstract]
Sales $ 118,545
Cost of Sales75,222
Gross Profit43,323
Expenses
Shipping costs10,278
Web design2,890
Advertising and promotion4,082
Wages and salaries1,466
Occupancy costs908
Subcontracts885
Repairs and maintenance644
Travel159
Meals and entertainment148
Office and general561
Professional fees129
Printing fee17
Vehicle expense16
Telephone and telecommunications7
Interest and bank charges148
Insurance21,917
Total operating expenses44,255
Earnings Before Income Taxes(932)
Provision for income taxes0
Net Earnings $ (932)

Condensed Statement of Retained

Condensed Statement of Retained Earnings (Unaudited) - Retained Earnings / Accumulated Deficit3 Months Ended
Mar. 31, 2017USD ($)
Beginning balance $ 37,439
Net earnings(932)
Ending balance $ 36,507

1. Background

1. Background3 Months Ended
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. BackgroundB Green Innovations,
Inc., a Matawan, New Jersey-based corporation, (OTC Pink® marketplace: BGNN), formerly iVoice Technology, Inc., (“B
Green Innovations” or the “Company”) was incorporated under the laws of New Jersey on November 10, 2004 as a
wholly owned subsidiary of iVoice, Inc. (“iVoice”). In May 2008, the Company formed B Green Innovations, Inc. (“B
Green”), a wholly-owned subsidiary to commercialize its “green” technology platforms. On November
17, 2009, pursuant to an Agreement and Plan of Merger (the “Merger Agreement”), B Green Innovations, Inc., a wholly
owned subsidiary of iVoice Technology, Inc., merged into iVoice Technology, Inc. On July 28,
2009, the Board of Directors and shareholders through written consent representing a majority of the total voting Class A and
Class B Common stock voted to change the name of the Company to B Green Innovations, Inc. On November 20, 2009, the Company filed
an Amendment to the Certificate of Incorporation with the State of New Jersey to officially change the name of the Company. On October
8, 2016, the Registrant’s Board of Directors, acting pursuant to its Amended Articles of Incorporation, unanimously approved
to change the name of the Registrant from B Green Innovations, Inc. to 024 Pharma, Inc. by amending Article One of the Registrant’s
Articles of Incorporation. The purpose of the name change is to more fully encapsulate the Registrant’s current operations
and business direction. The New Jersey Secretary of State, effective October 12, 2016, processed the name change and the Registrant
has filed for a symbol change with the Financial Industry Regulatory Authority (“FINRA”). The Company will also obtain
a new CUSIP number in connection with the name change. On March
30, 2017 the Board of Directors and shareholders through written consent representing a majority of the total voting Class A and
Class B Common stock voted to purchase the assets of a UK co 024 Pharma and Belize SPC Corp The Buddy Joe Company. The assets
were amalgamated in the SPC Belize company On May 5
2017 the Company sold off its Canadian operations of pharma business in a numbered Ontario Company and became a holding parent
company of all 024 Pharma Divisions . The Company
reports its revenues on a global consolidated basis.

2. Business Operations

2. Business Operations3 Months Ended
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2. Business Operations024 Pharma,
Inc. provides the best nutrition in every area that matters. From vitamin and mineral supplements, stress release, joint and heart
health, and weight-loss products, skin care, healthy hair and anti-aging. 024 Pharma,
Inc. gives you what you need to create healthier lives for you and your family. 024 Pharma,
Inc. is known in the international market for its unique global shareholders system. Company promotes the concept of "People-oriented,
Just and Equitable" which received high appraisal from the majority of the personage from the industry. Everyone can join
and become a shareholder. Everyone can share the return on 024's Pharma, Inc's investment. 024 Pharma, Inc. is destined to become
the most influential and competitive shareholders group. 024 Pharma’s
premium quality products do more than improve people’s health—they transform their lives. Sourced, manufactured and
tested against the most rigorous quality standards, our unique product portfolio delivers more than over 220 personalized solutions
to optimize your health. Company’s
staff science team formulates products with a relentless commitment to ingredient purity and potency. That’s why customers
trust their products to deliver proven, repeatable results. 024 Pharma
make and package products in their own facility, under conditions and guidelines that meet the most stringent global regulations. Outfitted
with state-of-the-art instrumentation and combining the skills of accomplished scientists, researchers and medical professionals,
our research lab creates a unique environment in which to pursue scientific discovery and advancement, and it is the hub of our
product development and testing.

3. Going Concern

3. Going Concern3 Months Ended
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
3. Going ConcernThe accompanying
condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States
of America, which contemplates continuation of the Company as a going concern. Management
plans to increase the development, manufacture, and distribution of products to generate a positive cash flow.

4. Summary of Significant Accou

4. Summary of Significant Accounting Policies3 Months Ended12 Months Ended
Mar. 31, 2017Dec. 31, 2016
Accounting Policies [Abstract]
4. Summary of Significant Accounting Policiesa) Basis
of Presentation The accompanying
condensed unaudited interim financial statements included herein have been prepared, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC"). The condensed financial statements and notes are presented
as permitted on Form 10-Q and do not contain information included in the Company's annual statements and notes. Certain information
and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company
believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed
financial statements be read in conjunction with the December 31, 2015 financial statements and the accompanying notes thereto.
While management believes the procedures followed in preparing these condensed financial statements are reasonable, the accuracy
of the amounts are in some respects dependent upon the facts that will exist, and procedures that will be accomplished by the
Company later in the year. These results are not necessarily indicative of the results to be expected for the full year. These condensed
unaudited financial statements reflect all adjustments, including normal recurring adjustments, which, in the opinion of management,
are necessary to present fairly the operations and cash flows for the periods presented. b) 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 and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates. c) Revenue
Recognition In
addition to cash flow generated from sale of natural supplements such as:
· Diabetes
· Lung cleanse
· Seal oil
· Prostate
· Stress less Company intends
to produce the “health phone” that will significantly increase demand in their product and enlarge the product purchase.
Clients will be able to purchase products through this smartphone and it contains application that measure heartbeat, calories,
fat, excises schedule etc. The most important thing is that clients will have this option to talk to health specialists. d) Product
Warranties The Company
estimates its warranty costs based on historical warranty claims experience in estimating potential warranty claims. Management
has determined that warranty costs are immaterial and has not included an accrual for potential warranty claims. Presently, costs
related to warranty coverage are expensed as incurred. Warranty claims are reviewed quarterly to verify that warranty liabilities
properly reflect any remaining obligation based on the anticipated expenditures over the balance of the obligation period. e) Research
and Development Costs Research
and development costs are charged to expense when incurred. The Company has not incurred any research and development costs for
the three months ended March, 31, 2017. f) Advertising
Costs Advertising
costs are expensed as incurred and are included in selling expenses. The Company has incurred advertising costs for the three
months ended March, 31, 2017 and it counts $19,210.46 USD. g) Cash
and Cash Equivalents The Company
considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. There
were no cash equivalents at March, 31, 2017 and December 31, 2015. The Company maintains cash balances at financial institutions
that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to federally insured limits. At times balances
may exceed FDIC insured limits. The Company has not experienced any losses in such accounts. h) Concentration
of Credit Risk Financial
instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable
and cash. As of March, 31, 2017 the Company believes it has no significant risk related to its concentration within its accounts
receivable. j) Accounts
Receivable Accounts
receivable are non-interest bearing obligations due under normal trade terms. Senior management reviews accounts receivable on
a monthly basis to determine if any receivables will be potentially uncollectible. Historical bad debts and current economic trends
are used in evaluating the allowance for doubtful accounts. The Company includes any accounts receivable balances that are determined
to be uncollectible, along with a general reserve, in its overall allowance for doubtful accounts. After all attempts to collect
a receivable have failed, the receivable is written off against the allowance. Based on the information available, the Company
believes its allowance for doubtful accounts as of March, 31, 2017 and December 31, 2015 is adequate. j) Property
and Equipment Property
and equipment is stated at cost. Depreciation is computed using the straight-line method based upon the estimated useful lives
of the assets, generally five to seven years. Maintenance and repairs are charged to expense as incurred. k)
Intangible Assets Registration
and maintenance costs associated with the filing and registration of patents are prepaid and amortized over the remaining life
of the patent, not to exceed 20 years. Costs associated with such patents are not approved or abandoned. l) Income
Taxes The Company
accounts for income taxes using the asset and liability method described in FASB ASC 740. Deferred tax assets arise from a variety
of sources, the most significant being: a) tax losses that can be carried forward to be utilized against profits in future years;
b) expenses recognized in the books but disallowed in the tax return until the associated cash flow occurs; and c) valuation changes
of assets which need to be tax effected for book purposes but are deductible only when the valuation change is realized. Deferred
tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities
and are measured using enacted tax rates and laws that are expected to be in effect when such differences are expected to reverse.
The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefit, which is not more
likely than not to be realized. In assessing the need for a valuation allowance, future taxable income is estimated, considering
the realization of tax loss carryforwards. Valuation allowances related to deferred tax assets can also be affected by changes
to tax laws, changes to statutory tax rates and future taxable income levels. In the event it was determined, that the Company
would not be able to realize all or a portion of our deferred tax assets in the future, we would reduce such amounts through a
charge to income in the period in which that determination is made. Conversely, if we were to determine that we would be able
to realize our deferred tax assets in the future in excess of the net carrying amounts, we would decrease the recorded valuation
allowance through an increase to income in the period in which that determination is made. In its evaluation of a valuation allowance,
the Company takes into account existing contracts and backlog, and the probability that options under these contract awards will
be exercised as well as sales of existing products. The Company prepares profit projections based on the revenue and expenses
forecast to determine that such revenues will produce sufficient taxable income to realize the deferred tax assets. The Company
adopted FASB ASC 740-10-50, Accounting for Uncertainty in Income Taxes. ASC 740-10-50 prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
ASC 740-10 requires that the Company determine whether the benefits of its tax positions are more-likely-than-not of being sustained
upon audit based on the technical merits of the tax position. The Company recognizes the impact of an uncertain income tax position
taken on its income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing
authority. Despite the
Company’s belief that its tax return positions are consistent with applicable tax laws, one or more positions may be challenged
by taxing authorities. Settlement of any challenge can result in no change, a complete disallowance, or some partial adjustment
reached through negotiations or litigation. Interest
and penalties related to income tax matters, if applicable, will be recognized as income tax expense. During the three and three
months ended March, 31, 2017 and 2015, the Company did not incur any expense related to interest or penalties for income tax matters,
and no such amounts were accrued as of March, 31, 2017 and December 31, 2015. m) Fair
Value of Financial Instruments The carrying
amounts reported in the balance sheets as of March, 31, 2017 and December 31, 2015 for cash and cash equivalents, marketable securities,
accounts receivable, inventories, prepaid expenses and other current assets, accounts payable and accrued expenses other current
liabilities approximate the fair value because of the immediate or short-term maturity of these financial instruments. The
fair value of the debt approximates its carrying value at the stated discount rate of the debt to reflect recent market conditions. n) Long-Lived
Assets The Company
assesses the recoverability of the carrying value of its long-lived assets 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 future, undiscounted cash flows expected to be generated by an 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 the carrying amount or fair value
less costs to sell. No impairment losses were recognized for the three and three months ended March, 31, 2017 and 2015. o)
Recent Accounting Pronouncements There were
various other updates recently issued, most of which represented technical corrections to the accounting literature or application
to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations
or cash flows.
a) Basis
of Presentation The accompanying
condensed unaudited interim financial statements included herein have been prepared, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC"). The condensed financial statements and notes are presented
as permitted on Form 10-Q and do not contain information included in the Company's annual statements and notes. Certain information
and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company
believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed
financial statements be read in conjunction with the December 31, 2015 financial statements and the accompanying notes thereto.
While management believes the procedures followed in preparing these condensed financial statements are reasonable, the accuracy
of the amounts are in some respects dependent upon the facts that will exist, and procedures that will be accomplished by the
Company later in the year. These results are not necessarily indicative of the results to be expected for the full year. These condensed
unaudited financial statements reflect all adjustments, including normal recurring adjustments, which, in the opinion of management,
are necessary to present fairly the operations and cash flows for the periods presented. b) 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 and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates. c) Revenue
Recognition In
addition to cash flow generated from sale of natural supplements such as:
· Diabetes
· Lung cleanse
· Seal oil
· Prostate
· Stress less Company intends
to produce the “health phone” that will significantly increase demand in their product and enlarge the product purchase.
Clients will be able to purchase products through this smartphone and it contains application that measure heartbeat, calories,
fat, excises schedule etc. The most important thing is that clients will have this option to talk to health specialists. d) Product
Warranties The Company
estimates its warranty costs based on historical warranty claims experience in estimating potential warranty claims. Management
has determined that warranty costs are immaterial and has not included an accrual for potential warranty claims. Presently, costs
related to warranty coverage are expensed as incurred. Warranty claims are reviewed quarterly to verify that warranty liabilities
properly reflect any remaining obligation based on the anticipated expenditures over the balance of the obligation period. e) Research
and Development Costs Research
and development costs are charged to expense when incurred. The Company has not incurred any research and development costs for
the year ended December 31, 2016. f) Advertising
Costs Advertising
costs are expensed as incurred and are included in selling expenses. The Company has incurred advertising costs for the year ended
December 31, 2016 and it counts $42,431 USD. g) Cash
and Cash Equivalents The Company
considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. There
were no cash equivalents at December 31, 2016 and December 31, 2015. The Company maintains cash balances at financial institutions
that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to federally insured limits. At times balances
may exceed FDIC insured limits. The Company has not experienced any losses in such accounts. h) Concentration
of Credit Risk Financial
instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable
and cash. As of September 30, 2016 the Company believes it has no significant risk related to its concentration within its accounts
receivable. j) Accounts
Receivable Accounts
receivable are non-interest bearing obligations due under normal trade terms. Senior management reviews accounts receivable on
a monthly basis to determine if any receivables will be potentially uncollectible. Historical bad debts and current economic trends
are used in evaluating the allowance for doubtful accounts. The Company includes any accounts receivable balances that are determined
to be uncollectible, along with a general reserve, in its overall allowance for doubtful accounts. After all attempts to collect
a receivable have failed, the receivable is written off against the allowance. Based on the information available, the Company
believes its allowance for doubtful accounts as of December 31, 2016 and December 31, 2015 is adequate. j) Property
and Equipment Property
and equipment is stated at cost. Depreciation is computed using the straight-line method based upon the estimated useful lives
of the assets, generally five to seven years. Maintenance and repairs are charged to expense as incurred. k)
Intangible Assets Registration
and maintenance costs associated with the filing and registration of patents are prepaid and amortized over the remaining life
of the patent, not to exceed 20 years. Costs associated with such patents are not approved or abandoned. l) Income
Taxes The Company
accounts for income taxes using the asset and liability method described in FASB ASC 740. Deferred tax assets arise from a variety
of sources, the most significant being: a) tax losses that can be carried forward to be utilized against profits in future years;
b) expenses recognized in the books but disallowed in the tax return until the associated cash flow occurs; and c) valuation changes
of assets which need to be tax effected for book purposes but are deductible only when the valuation change is realized. Deferred
tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities
and are measured using enacted tax rates and laws that are expected to be in effect when such differences are expected to reverse.
The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefit, which is not more
likely than not to be realized. In assessing the need for a valuation allowance, future taxable income is estimated, considering
the realization of tax loss carryforwards. Valuation allowances related to deferred tax assets can also be affected by changes
to tax laws, changes to statutory tax rates and future taxable income levels. In the event it was determined, that the Company
would not be able to realize all or a portion of our deferred tax assets in the future, we would reduce such amounts through a
charge to income in the period in which that determination is made. Conversely, if we were to determine that we would be able
to realize our deferred tax assets in the future in excess of the net carrying amounts, we would decrease the recorded valuation
allowance through an increase to income in the period in which that determination is made. In its evaluation of a valuation allowance,
the Company takes into account existing contracts and backlog, and the probability that options under these contract awards will
be exercised as well as sales of existing products. The Company prepares profit projections based on the revenue and expenses
forecast to determine that such revenues will produce sufficient taxable income to realize the deferred tax assets. The Company
adopted FASB ASC 740-10-50, Accounting for Uncertainty in Income Taxes. ASC 740-10-50 prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
ASC 740-10 requires that the Company determine whether the benefits of its tax positions are more-likely-than-not of being sustained
upon audit based on the technical merits of the tax position. The Company recognizes the impact of an uncertain income tax position
taken on its income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing
authority. Despite the
Company’s belief that its tax return positions are consistent with applicable tax laws, one or more positions may be challenged
by taxing authorities. Settlement of any challenge can result in no change, a complete disallowance, or some partial adjustment
reached through negotiations or litigation. Interest
and penalties related to income tax matters, if applicable, will be recognized as income tax expense. During the years ended December
31, 2016 and 2015, the Company did not incur any expense related to interest or penalties for income tax matters, and no such
amounts were accrued as of December 31, 2016 and December 31, 2015. m) Fair
Value of Financial Instruments The carrying
amounts reported in the balance sheets as of December 31, 2016 and December 31, 2015 for cash and cash equivalents, marketable
securities, accounts receivable, inventories, prepaid expenses and other current assets, accounts payable and accrued expenses
other current liabilities approximate the fair value because of the immediate or short-term maturity of these financial instruments.
The fair value of the debt approximates its carrying value at the stated discount rate of the debt to reflect recent market conditions. n) Long-Lived
Assets The Company
assesses the recoverability of the carrying value of its long-lived assets 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 future, undiscounted cash flows expected to be generated by an 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 the carrying amount or fair value
less costs to sell. No impairment losses were recognized for the years ended December 31, 2016 and 2015. o) Recent
Accounting Pronouncements There were
various other updates recently issued, most of which represented technical corrections to the accounting literature or application
to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations
or cash flows.

4. Summary of Significant Acco9

4. Summary of Significant Accounting Policies (Policies)3 Months Ended
Mar. 31, 2017
Accounting Policies [Abstract]
a) Basis of Presentationa) Basis
of Presentation The accompanying
condensed unaudited interim financial statements included herein have been prepared, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC"). The condensed financial statements and notes are presented
as permitted on Form 10-Q and do not contain information included in the Company's annual statements and notes. Certain information
and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company
believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed
financial statements be read in conjunction with the December 31, 2015 financial statements and the accompanying notes thereto.
While management believes the procedures followed in preparing these condensed financial statements are reasonable, the accuracy
of the amounts are in some respects dependent upon the facts that will exist, and procedures that will be accomplished by the
Company later in the year. These results are not necessarily indicative of the results to be expected for the full year. These condensed
unaudited financial statements reflect all adjustments, including normal recurring adjustments, which, in the opinion of management,
are necessary to present fairly the operations and cash flows for the periods presented.
b) Use of Estimatesb) 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 and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
c) Revenue Recognitionc) Revenue
Recognition In
addition to cash flow generated from sale of natural supplements such as:
· Diabetes
· Lung cleanse
· Seal oil
· Prostate
· Stress less Company intends
to produce the “health phone” that will significantly increase demand in their product and enlarge the product purchase.
Clients will be able to purchase products through this smartphone and it contains application that measure heartbeat, calories,
fat, excises schedule etc. The most important thing is that clients will have this option to talk to health specialists.
d) Product Warrantiesd) Product
Warranties The Company
estimates its warranty costs based on historical warranty claims experience in estimating potential warranty claims. Management
has determined that warranty costs are immaterial and has not included an accrual for potential warranty claims. Presently, costs
related to warranty coverage are expensed as incurred. Warranty claims are reviewed quarterly to verify that warranty liabilities
properly reflect any remaining obligation based on the anticipated expenditures over the balance of the obligation period.
e) Research and Development Costse) Research
and Development Costs Research
and development costs are charged to expense when incurred. The Company has not incurred any research and development costs for
the three months ended March, 31, 2017.
f) Advertising Costsf) Advertising
Costs Advertising
costs are expensed as incurred and are included in selling expenses. The Company has incurred advertising costs for the three
months ended March, 31, 2017 and it counts $19,210.46 USD.
g) Cash and Cash Equivalentsg) Cash
and Cash Equivalents The Company
considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. There
were no cash equivalents at March, 31, 2017 and December 31, 2015. The Company maintains cash balances at financial institutions
that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to federally insured limits. At times balances
may exceed FDIC insured limits. The Company has not experienced any losses in such accounts.
h) Concentration of Credit Riskh) Concentration
of Credit Risk Financial
instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable
and cash. As of March, 31, 2017 the Company believes it has no significant risk related to its concentration within its accounts
receivable.
j) Accounts Receivablej) Accounts
Receivable Accounts
receivable are non-interest bearing obligations due under normal trade terms. Senior management reviews accounts receivable on
a monthly basis to determine if any receivables will be potentially uncollectible. Historical bad debts and current economic trends
are used in evaluating the allowance for doubtful accounts. The Company includes any accounts receivable balances that are determined
to be uncollectible, along with a general reserve, in its overall allowance for doubtful accounts. After all attempts to collect
a receivable have failed, the receivable is written off against the allowance. Based on the information available, the Company
believes its allowance for doubtful accounts as of March, 31, 2017 and December 31, 2015 is adequate.
j) Property and Equipmentj) Property
and Equipment Property
and equipment is stated at cost. Depreciation is computed using the straight-line method based upon the estimated useful lives
of the assets, generally five to seven years. Maintenance and repairs are charged to expense as incurred.
k) Intangible Assetsk)
Intangible Assets Registration
and maintenance costs associated with the filing and registration of patents are prepaid and amortized over the remaining life
of the patent, not to exceed 20 years. Costs associated with such patents are not approved or abandoned.
l) Income Taxesl) Income
Taxes The Company
accounts for income taxes using the asset and liability method described in FASB ASC 740. Deferred tax assets arise from a variety
of sources, the most significant being: a) tax losses that can be carried forward to be utilized against profits in future years;
b) expenses recognized in the books but disallowed in the tax return until the associated cash flow occurs; and c) valuation changes
of assets which need to be tax effected for book purposes but are deductible only when the valuation change is realized. Deferred
tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities
and are measured using enacted tax rates and laws that are expected to be in effect when such differences are expected to reverse.
The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefit, which is not more
likely than not to be realized. In assessing the need for a valuation allowance, future taxable income is estimated, considering
the realization of tax loss carryforwards. Valuation allowances related to deferred tax assets can also be affected by changes
to tax laws, changes to statutory tax rates and future taxable income levels. In the event it was determined, that the Company
would not be able to realize all or a portion of our deferred tax assets in the future, we would reduce such amounts through a
charge to income in the period in which that determination is made. Conversely, if we were to determine that we would be able
to realize our deferred tax assets in the future in excess of the net carrying amounts, we would decrease the recorded valuation
allowance through an increase to income in the period in which that determination is made. In its evaluation of a valuation allowance,
the Company takes into account existing contracts and backlog, and the probability that options under these contract awards will
be exercised as well as sales of existing products. The Company prepares profit projections based on the revenue and expenses
forecast to determine that such revenues will produce sufficient taxable income to realize the deferred tax assets. The Company
adopted FASB ASC 740-10-50, Accounting for Uncertainty in Income Taxes. ASC 740-10-50 prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
ASC 740-10 requires that the Company determine whether the benefits of its tax positions are more-likely-than-not of being sustained
upon audit based on the technical merits of the tax position. The Company recognizes the impact of an uncertain income tax position
taken on its income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing
authority. Despite the
Company’s belief that its tax return positions are consistent with applicable tax laws, one or more positions may be challenged
by taxing authorities. Settlement of any challenge can result in no change, a complete disallowance, or some partial adjustment
reached through negotiations or litigation. Interest
and penalties related to income tax matters, if applicable, will be recognized as income tax expense. During the three and three
months ended March, 31, 2017 and 2015, the Company did not incur any expense related to interest or penalties for income tax matters,
and no such amounts were accrued as of March, 31, 2017 and December 31, 2015.
m) Fair Value of Financial Instrumentsm) Fair
Value of Financial Instruments The carrying
amounts reported in the balance sheets as of March, 31, 2017 and December 31, 2015 for cash and cash equivalents, marketable securities,
accounts receivable, inventories, prepaid expenses and other current assets, accounts payable and accrued expenses other current
liabilities approximate the fair value because of the immediate or short-term maturity of these financial instruments. The
fair value of the debt approximates its carrying value at the stated discount rate of the debt to reflect recent market conditions.
n) Long-Lived Assetsn) Long-Lived
Assets The Company
assesses the recoverability of the carrying value of its long-lived assets 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 future, undiscounted cash flows expected to be generated by an 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 the carrying amount or fair value
less costs to sell. No impairment losses were recognized for the three and three months ended March, 31, 2017 and 2015.
o) Recent Accounting Pronouncementso)
Recent Accounting Pronouncements There were
various other updates recently issued, most of which represented technical corrections to the accounting literature or application
to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations
or cash flows.

4. Summary of Significant Acc10

4. Summary of Significant Accounting Policies (Details Narrative)3 Months Ended
Mar. 31, 2017USD ($)
Accounting Policies [Abstract]
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