Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 07, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Data Call Technologies | |
Entity Central Index Key | 0001321828 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 156,998,515 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 14,938 | $ 28,107 |
Accounts receivable | 72,594 | 65,304 |
Total current assets | 87,532 | 93,411 |
Property and equipment | 151,723 | 151,723 |
Less accumulated depreciation and amortization | 146,494 | 145,687 |
Net property and equipment | 5,229 | 6,036 |
Other assets | 800 | 800 |
Total assets | 93,561 | 100,247 |
Current liabilities: | ||
Accounts payable | 19,560 | 21,218 |
Accounts payable - related party | 4,285 | 8,348 |
Accrued salaries - related party | 379 | 337 |
Accrued interest - related party | 22,591 | 23,791 |
Convertible short-term note payable to related party | 5,400 | 7,200 |
Total current liabilities | 52,215 | 60,894 |
Total liabilities | 52,215 | 60,894 |
Stockholders' equity: | ||
Common stock, $0.001 par value. Authorized 490,000,000 shares: 156,998,515 shares issued and outstanding at March 31, 2021 and December 31, 2020 | 156,998 | 156,998 |
Additional paid-in capital | 9,869,935 | 9,869,048 |
Accumulated deficit | (9,986,397) | (9,987,503) |
Total stockholders' equity | 41,346 | 39,353 |
Total liabilities and stockholders' equity | 93,561 | 100,247 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock value | 800 | 800 |
Series B Convertible Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock value | $ 10 | $ 10 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Common stock, shares issued | 156,998,515 | 156,998,515 |
Common stock, shares outstanding | 156,998,515 | 156,998,515 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock ,shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, convertible percentage | 12.00% | 12.00% |
Preferred stock, shares issued | 800,000 | 800,000 |
Preferred stock, shares outstanding | 800,000 | 800,000 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock ,shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 10,000 | 10,000 |
Preferred stock, shares outstanding | 10,000 | 10,000 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||
Sales | $ 154,912 | $ 158,608 |
Cost of sales | 53,015 | 49,545 |
Gross margin | 101,897 | 109,063 |
Selling, general and administrative expenses | 99,984 | 103,499 |
Depreciation and amortization expense | 807 | 673 |
Total operating expenses | 100,791 | 104,172 |
Other (income) expense | ||
Interest income | (1) | |
Interest expense | 1,366 | |
Total expenses | 100,791 | 105,537 |
Net income before income taxes | 1,106 | 3,526 |
Provision for income taxes | ||
Net income | $ 1,106 | $ 3,526 |
Net loss per common share - basic and diluted: | ||
Net loss applicable to common shareholders | $ 0 | $ 0 |
Weighted average common shares: | ||
Basic | 156,998,515 | 156,498,515 |
Diluted | 178,256,444 |
Condensed Statement of Stockhol
Condensed Statement of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock A [Member] | Preferred Stock B [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2019 | $ 800 | $ 10 | $ 156,498 | $ 9,864,000 | $ (9,965,049) | $ 56,259 |
Balance, shares at Dec. 31, 2019 | 800,000 | 10,000 | 156,498,515 | |||
Shares issued for services | $ 500 | 5,048 | 5,548 | |||
Shares issued for services , shares | 500,000 | |||||
Net Income (loss) | (22,454) | (22,454) | ||||
Balance at Dec. 31, 2020 | $ 800 | $ 10 | $ 156,998 | 9,869,048 | (9,987,503) | 39,353 |
Balance, shares at Dec. 31, 2020 | 800,000 | 10,000 | 156,998,515 | |||
Shares issued for services | 887 | 887 | ||||
Net Income (loss) | 1,106 | 1,106 | ||||
Balance at Mar. 31, 2021 | $ 800 | $ 10 | $ 156,998 | $ 9,869,935 | $ (9,986,397) | $ 41,346 |
Balance, shares at Mar. 31, 2021 | 800,000 | 10,000 | 156,998,515 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net Income | $ 1,106 | $ 3,526 | $ (22,454) |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation | 807 | 673 | |
Stock based compensation | 887 | 887 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (7,290) | (9,247) | |
Prepaid expenses | 5,960 | ||
Accounts payable | (1,658) | 8,202 | |
Accounts payable - related party | (4,063) | 1,963 | |
Accrued expenses - related party | 42 | 125 | |
Accrued interest - related party | (1,200) | 27 | |
Other assets | (150) | ||
Net cash (used in) provided by operating activities | (11,369) | 46 | |
Cash flows from investing activities | |||
Purchase of property and equipment | (2,662) | ||
Net cash used in investing activities | (2,662) | ||
Cash flows from financing activities: | |||
Principal payment on borrowing from related party | (1,800) | (1,759) | |
Net cash used in financing activities | (1,800) | (1,759) | |
Net increase (decrease) in cash | (13,169) | (4,375) | |
Cash at beginning of year | 28,107 | 27,529 | 27,529 |
Cash at end of period | 14,938 | 23,154 | $ 28,107 |
Supplemental Cash Flow Information: | |||
Cash paid for interest | 1,200 | 1,241 | |
Cash paid for taxes |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Organization, Ownership and Business Data Call Technologies, Inc. (the “Company”) was incorporated under the laws of the State of Nevada in 2002. The Company’s mission is to integrate cutting-edge information delivery solutions that are currently deployed by the media, and put them within the control of retail and commercial enterprises. The Company’s software and services put its clients in control of real-time advertising, news, and other content, including emergency alerts. The accompanying unaudited financial statements have been prepared in accordance with U. S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2021 are not indicative of the results that may be expected for the year ending December 31, 2021. As contemplated by the Securities and Exchange Commission (SEC) under Rules of Regulation S-X, the accompanying financial statements and related footnotes have been condensed and do not contain certain information that will be included in the Company’s annual financial statements and footnotes thereto. For further information, refer to the Company’s audited financial statements and related footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investment instruments purchased with original maturities of three months or less to be cash equivalents. There were no cash equivalents as of March 31, 2021 and December 31, 2020. Revenue Recognition January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, we satisfy a performance obligation. Company recognizes revenues based on monthly fees for services provided to customers. Some customers prepay for annual services and the Company defers such amounts and amortizes them into revenues as the service is provided. Accounts Receivable Accounts receivable consist primarily of trade receivables. The Company provides an allowance for doubtful trade receivables equal to the estimated uncollectible amounts. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer’s trade accounts receivable. The allowance for doubtful trade receivables was $0 as of March 31, 2021 and December 31, 2020 as we believe all of our receivables are fully collectable. Property, Equipment and Depreciation Property and equipment are recorded at cost less accumulated depreciation. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, with any resultant gain or loss being recognized as a component of other income or expense. Depreciation is computed over the estimated useful lives of the assets (3-5 years) using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes. Maintenance and repairs are charged to operations as incurred. Advertising Costs The cost of advertising is expensed as incurred. Research and Development Research and development costs are expensed as incurred. Product Development Costs Product development costs consist of cost incurred to develop the Company’s website and software for internal and external use. All product development costs are expensed as incurred. Income Taxes The Company is a taxable entity and recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect when the temporary differences reverse. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the enactment date of the rate change. A valuation allowance is used to reduce deferred tax assets to the amount that is more likely than not to be realized. Use of Estimates The preparation of financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from those estimates. Beneficial Conversion Feature Convertible debt includes conversion terms that are considered in the money compared to the market price of the stock on the date of the related agreement. The Company calculates the beneficial conversion feature and records a debt discount with the amount being amortized to interest expense over the term of the note. Management’s Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses. Actual results could differ from these estimates. Stock-based Compensation We account for stock-based compensation in accordance with “FASB ASC 718-10.” Stock-based compensation expense recognized during the period is based on the value of the portion of share-based awards that are ultimately expected to vest during the period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The fair value of restricted stock is determined based on the number of shares granted and the closing price of the Company’s common stock on the date of grant. Compensation expense for all share-based payment awards is recognized using the straight-line amortization method over the vesting period. Fair Value of Financial Instruments The Company estimates the fair value of its financial instruments using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the Company estimates of fair value are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumption and/or estimation methodologies may have a material effect on the estimated fair value amounts. The interest rates payable by the Company on its notes payable approximate market rates. The Company believes that the fair value of its financial instruments comprising accounts receivable, notes receivable, accounts payable, and notes payable approximate their carrying amounts. On January 1, 2009, the Company adopted an accounting standard for applying fair value measurements to certain assets, liabilities and transactions that are periodically measured at fair value. The adoption did not have a material effect on the Company’s financial position, results of operations or cash flows. In August 2009, the FASB issued an amendment to the accounting standards related to the measurement of liabilities that are routinely recognized or disclosed at fair value. This standard clarifies how a company should measure the fair value of liabilities, and that restrictions preventing the transfer of a liability should not be considered as a factor in the measurement of liabilities within the scope of this standard. This standard became effective for the Company on October 1, 2009. The adoption of this standard did not have a material impact on the Company’s financial statements. The fair value accounting standard creates a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest. Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable. The following table presents the Company’s Assets & Liabilities within the fair value hierarchy utilized to measure fair value on a recurring basis as of March 31, 2021 and December 31, 2020: (Level 1) (Level 2) (Level 3) March 31, 2021 $ 0 $ 0 $ 0 December 31, 2020 $ 0 $ 0 $ 0 Recent Accounting Pronouncements In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. The amendments in ASU 2018-10 provide additional clarification and implementation guidance on certain aspects of the previously issued ASU 2016-02, Leases (Topic 842) (“ASU2016-2”) and have the same effective and transition requirements as ASU 2016-02. Upon the effective date, ASU 2018-10 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, leases will be required to recognize for all leases, lease except for short-term leases, a lease liability, which is a lessee’s obligation to make payments arising from a a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU2018-10 is effective for private companies and emerging growth public companies for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. During the year ended December 31, 2019 the Company assessed the impact of this guidance had on its financial statements and concluded that at present ASU No 2018-10 has no impact on its financial statements due to not having any commitment to stay in our property longer than a year. In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02), which allows companies to reclassify stranded tax effects resulting from the Tax Act, from accumulated other comprehensive income to retained earnings. The new standard is effective beginning January 1, 2019, with early adoption permitted. Tax effects are not anticipated because of this standard. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (2) Related Party Transactions During the second quarter of 2018, the Company issued unregistered shares as follows: (i) 3,500,000 restricted shares to Tim Vance, the Company’s CEO, in connection with the execution of a new 5-year employment agreement; and 2,000,000 restricted shares to Gary Woerz, the Company’s CFO, in connection with the execution of a new 5-year employment agreement. The restricted shares were valued at $0.0034 per share using the closing price of the stock on the date of grant. Total expense associated with the issuances is calculated at $18,700 to be recognized over the 5-year term of the agreements. During the three months ended March 31, 2021 and 2020, the Company recorded $887 and $887, respectively, in stock-based compensation expense, in relation to those shares for the quarter ended March 31, 2021. The April 30, 2018 employment agreements calls for a 5-year term ending April 30, 2023, annual compensation of $98,000 per year for services as CEO, annual compensation of $57,200 per year for services as CFO. As of March 31, 2021 and December 31, 2020, convertible notes payable to related party had a balance of $5,400 and $7,200. The note in September 2020 was renegotiated for principal and interest, therefore due to the terms of the agreement the note is no longer considered past due or in default. The interest for the note payable will no longer be calculated annually and will no longer be accrued. During the three months ended March 31, 2021 and 2020, the Company repaid a total of $1,800 and $1,759, respectively, to related parties on various convertible note payables. As of March 31, 2021 and December 31, 2020, accrued interest on the convertible notes payable to related party were $22,591 and $23,791, respectively. During the three months ended March 31, 2021 and 2020, the Company made interest payments of $1,200 and $1,241, respectively. As of March 31, 2021 and December 31, 2020 the total due to management for past accrued salaries is $379 and $337, respectively. As of March 31, 2021 and December 31, 2020 the total due to management included in accounts payable is $4,285 and $8,348, respectively. |
Capital Stock, Warrants and Opt
Capital Stock, Warrants and Options | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Capital Stock, Warrants and Options | (3) Capital Stock, Warrants and Options The Company is authorized to issue up to 10,000,000 shares of Series A Preferred Stock, $0.001 par value per share, of which 800,000 shares are outstanding at March 31, 2021 and December 31, 2020. The Preferred Stock may be issued in one or more series, the terms of which may be determined at the time of issuance by the Board of Directors, without further action by stockholders, and may include voting rights (including the right to vote as a series on matters), preferences as to dividends and liquidation, conversion, redemption rights and sinking fund provisions. Each share of Series A Preferred Stock shall bear a preferential dividend of twelve percent (12%) per year and is convertible into a number shares of the Company’s common stock, par value $0.001 per share (“Common Stock”) based upon Fifty (50%) percent of the average closing bid price of the Common Stock During the ten (10) day period prior to the conversion. The Company has not declared or accrued any dividends and as of March 31, 2021 and 2020 and accrued and undeclared dividends were $1,200. During the quarter ended September 30, 2014, the Company amended its Articles of incorporation to authorize 1,000,000 shares of Series B Preferred Stock at a par value of $0.001 and issued 10,000 shares. The Series B shares were valued at $76,000 and were expensed during 2014. The Series B Preferred Stock may be issued to one or series by the terms of which may be and may include preferences as to dividends and liquidation, conversion, redemption rights and sinking fund provisions. The Series B Preferred Shares have the right to vote in the aggregate, on all shareholder matters votes equal to 51% of the total shareholder vote on any and all shareholder matters. The Series B Preferred Stock will be entitled to this 51% voting right no matter how many shares of common stock or other voting stock of Data Call Technology stock is issued and outstanding in the future. During the second quarter of 2018, the Company issued unregistered shares as follows: (i) 3,500,000 restricted shares to Tim Vance, the Company’s CEO, in connection with the execution of a new 5-year employment agreement; and 2,000,000 restricted shares to Gary Woerz, the Company’s CFO, in connection with the execution of a new 5-year employment agreement. The restricted shares were valued at $0.0034 per share using the closing price of the stock on the date of grant. Total expense associated with the issuances is calculated at $18,700 to be recognized over the 5-year term of the agreements. During the three months ended March 31, 2021 and 2020, the Company recorded $887 and $887, respectively, in stock-based compensation expense, in relation to those shares for the quarter ended March 31, 2021. The April 30, 2018 employment agreements calls for a 5-year term ending April 30, 2023, annual compensation of $98,000 per year for services as CEO, annual compensation of $57,200 per year for services as CFO. The Company is authorized to issue up to 490,000,000 shares of Common Stock, of which 156,998,515 shares were issued and outstanding as of March 31, 2021 and December 31, 2020. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | (4) Property and Equipment Major classes of property and equipment together with their estimated useful lives, consisted of the following: Years March 31, 2021 December 31, 2020 Equipment 3-5 $ 119,386 $ 119,386 Office furniture 7 21,681 21,681 Leasehold improvements 3 10,656 10,656 151,723 151,723 Less accumulated depreciation and amortization (146,494 ) (145,687 ) Net property and equipment $ 5,229 $ 6,036 |
Shareholder Notes Payable
Shareholder Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Shareholder Notes Payable | (5) Shareholder Notes Payable Repayments on shareholder notes payable during the quarter ended March 31, 2021 totaled $1,800 (2020: $1,759). As of March 31, 2021 and 2020, accrued interest on the convertible notes payable to related party were $22,591 and $23,741, respectively. During the three months ended March 31, 2021 and 2020, the Company made interest payments of $1,200 and $1,241, respectively.). |
Subsequent Events and Contingen
Subsequent Events and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events and Contingencies | (6) Subsequent Events and Contingencies The Company has evaluated subsequent events from the date on the balance sheet through the date these financial statements are being filed with the Securities and Exchange Commission. No additional material events or transactions have occurred during this subsequent event reporting period which required recognition or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization, Ownership and Business | Organization, Ownership and Business Data Call Technologies, Inc. (the “Company”) was incorporated under the laws of the State of Nevada in 2002. The Company’s mission is to integrate cutting-edge information delivery solutions that are currently deployed by the media, and put them within the control of retail and commercial enterprises. The Company’s software and services put its clients in control of real-time advertising, news, and other content, including emergency alerts. The accompanying unaudited financial statements have been prepared in accordance with U. S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2021 are not indicative of the results that may be expected for the year ending December 31, 2021. As contemplated by the Securities and Exchange Commission (SEC) under Rules of Regulation S-X, the accompanying financial statements and related footnotes have been condensed and do not contain certain information that will be included in the Company’s annual financial statements and footnotes thereto. For further information, refer to the Company’s audited financial statements and related footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investment instruments purchased with original maturities of three months or less to be cash equivalents. There were no cash equivalents as of March 31, 2021 and December 31, 2020. |
Revenue Recognition | Revenue Recognition January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, we satisfy a performance obligation. Company recognizes revenues based on monthly fees for services provided to customers. Some customers prepay for annual services and the Company defers such amounts and amortizes them into revenues as the service is provided. |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of trade receivables. The Company provides an allowance for doubtful trade receivables equal to the estimated uncollectible amounts. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer’s trade accounts receivable. The allowance for doubtful trade receivables was $0 as of March 31, 2021 and December 31, 2020 as we believe all of our receivables are fully collectable. |
Property, Equipment and Depreciation | Property, Equipment and Depreciation Property and equipment are recorded at cost less accumulated depreciation. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, with any resultant gain or loss being recognized as a component of other income or expense. Depreciation is computed over the estimated useful lives of the assets (3-5 years) using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes. Maintenance and repairs are charged to operations as incurred. |
Advertising Costs | Advertising Costs The cost of advertising is expensed as incurred. |
Research and Development | Research and Development Research and development costs are expensed as incurred. |
Product Development Costs | Product Development Costs Product development costs consist of cost incurred to develop the Company’s website and software for internal and external use. All product development costs are expensed as incurred. |
Income Taxes | Income Taxes The Company is a taxable entity and recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect when the temporary differences reverse. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the enactment date of the rate change. A valuation allowance is used to reduce deferred tax assets to the amount that is more likely than not to be realized. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from those estimates. |
Beneficial Conversion Feature | Beneficial Conversion Feature Convertible debt includes conversion terms that are considered in the money compared to the market price of the stock on the date of the related agreement. The Company calculates the beneficial conversion feature and records a debt discount with the amount being amortized to interest expense over the term of the note. |
Management's Estimates and Assumptions | Management’s Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses. Actual results could differ from these estimates. |
Stock-based Compensation | Stock-based Compensation We account for stock-based compensation in accordance with “FASB ASC 718-10.” Stock-based compensation expense recognized during the period is based on the value of the portion of share-based awards that are ultimately expected to vest during the period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The fair value of restricted stock is determined based on the number of shares granted and the closing price of the Company’s common stock on the date of grant. Compensation expense for all share-based payment awards is recognized using the straight-line amortization method over the vesting period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company estimates the fair value of its financial instruments using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the Company estimates of fair value are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumption and/or estimation methodologies may have a material effect on the estimated fair value amounts. The interest rates payable by the Company on its notes payable approximate market rates. The Company believes that the fair value of its financial instruments comprising accounts receivable, notes receivable, accounts payable, and notes payable approximate their carrying amounts. On January 1, 2009, the Company adopted an accounting standard for applying fair value measurements to certain assets, liabilities and transactions that are periodically measured at fair value. The adoption did not have a material effect on the Company’s financial position, results of operations or cash flows. In August 2009, the FASB issued an amendment to the accounting standards related to the measurement of liabilities that are routinely recognized or disclosed at fair value. This standard clarifies how a company should measure the fair value of liabilities, and that restrictions preventing the transfer of a liability should not be considered as a factor in the measurement of liabilities within the scope of this standard. This standard became effective for the Company on October 1, 2009. The adoption of this standard did not have a material impact on the Company’s financial statements. The fair value accounting standard creates a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest. Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable. The following table presents the Company’s Assets & Liabilities within the fair value hierarchy utilized to measure fair value on a recurring basis as of March 31, 2021 and December 31, 2020: (Level 1) (Level 2) (Level 3) March 31, 2021 $ 0 $ 0 $ 0 December 31, 2020 $ 0 $ 0 $ 0 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. The amendments in ASU 2018-10 provide additional clarification and implementation guidance on certain aspects of the previously issued ASU 2016-02, Leases (Topic 842) (“ASU2016-2”) and have the same effective and transition requirements as ASU 2016-02. Upon the effective date, ASU 2018-10 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, leases will be required to recognize for all leases, lease except for short-term leases, a lease liability, which is a lessee’s obligation to make payments arising from a a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU2018-10 is effective for private companies and emerging growth public companies for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. During the year ended December 31, 2019 the Company assessed the impact of this guidance had on its financial statements and concluded that at present ASU No 2018-10 has no impact on its financial statements due to not having any commitment to stay in our property longer than a year. In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02), which allows companies to reclassify stranded tax effects resulting from the Tax Act, from accumulated other comprehensive income to retained earnings. The new standard is effective beginning January 1, 2019, with early adoption permitted. Tax effects are not anticipated because of this standard. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company’s Assets & Liabilities within the fair value hierarchy utilized to measure fair value on a recurring basis as of March 31, 2021 and December 31, 2020: (Level 1) (Level 2) (Level 3) March 31, 2021 $ 0 $ 0 $ 0 December 31, 2020 $ 0 $ 0 $ 0 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Major classes of property and equipment together with their estimated useful lives, consisted of the following: Years March 31, 2021 December 31, 2020 Equipment 3-5 $ 119,386 $ 119,386 Office furniture 7 21,681 21,681 Leasehold improvements 3 10,656 10,656 151,723 151,723 Less accumulated depreciation and amortization (146,494 ) (145,687 ) Net property and equipment $ 5,229 $ 6,036 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Cash equivalents | ||
Allowance for doubtful trade receivables | $ 0 | $ 0 |
Minimum [Member] | ||
Estimated useful lives of property and equipment | P3Y | |
Maximum [Member] | ||
Estimated useful lives of property and equipment | P7Y |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair value assets and liabilities | $ 0 | $ 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair value assets and liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair value assets and liabilities | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2018 | Dec. 31, 2020 | |
Stock option compensation expense | $ 887 | $ 887 | ||
Convertible notes payable related party | 5,400 | $ 7,200 | ||
Repayments of related party debt | 1,800 | 1,759 | ||
Accrued interest, related party | 22,591 | 23,741 | 23,791 | |
Interest payments | 1,200 | $ 1,241 | ||
Accrued salaries due | 379 | 337 | ||
Accounts payable | $ 4,285 | $ 8,348 | ||
Employment Agreement [Member] | ||||
Agreement term | 5 years | |||
Expenses to be recognized | $ 18,700 | |||
Agreement term description | The April 30, 2018 employment agreements calls for a 5-year term ending April 30, 2023. | |||
April 30, 2018 Employment Agreement [Member] | Tim Vance [Member] | ||||
Annual compensation | $ 98,000 | |||
April 30, 2018 Employment Agreement [Member] | Gary D. Woerz [Member] | ||||
Annual compensation | $ 57,200 | |||
Restricted Stock [Member] | Employment Agreement [Member] | ||||
Shares issued price per share | $ 0.0034 | |||
Restricted Stock [Member] | Employment Agreement [Member] | Tim Vance [Member] | ||||
Number of restricted shares issued | 3,500,000 | |||
Agreement term | 5 years | |||
Restricted Stock [Member] | Employment Agreement [Member] | Gary D. Woerz [Member] | ||||
Number of restricted shares issued | 2,000,000 | |||
Agreement term | 5 years |
Capital Stock, Warrants and O_2
Capital Stock, Warrants and Options (Details Narrative) | 3 Months Ended | ||||
Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Jun. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||
Percentage of average closing bid price of the common stock conversion | 50.00% | ||||
Common stock declared or accrued any dividends | $ | |||||
Common stock accrued and undeclared dividends | $ | 1,200 | ||||
Stock-based compensation expense | $ | $ 887 | $ 887 | |||
Common stock, shares authorized | 490,000,000 | 490,000,000 | |||
Common stock, shares issued | 156,998,515 | 156,998,515 | |||
Common stock, shares outstanding | 156,998,515 | 156,998,515 | |||
Series A Preferred Stock [Member] | |||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||
Preferred stock, shares outstanding | 800,000 | 800,000 | |||
Preferred stock, dividend percentage | 12.00% | ||||
Series B Convertible Preferred Stock [Member] | |||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares outstanding | 10,000 | 10,000 | 10,000 | ||
Preferred stock value | $ | $ 10 | $ 76,000 | $ 10 | ||
Preferred Stock voting percentage | 0.51 | ||||
Employment Agreement [Member] | |||||
Agreement term | 5 years | ||||
Expenses to be recognized | $ | $ 18,700 | ||||
Agreement term description | The April 30, 2018 employment agreements calls for a 5-year term ending April 30, 2023. | ||||
April 30, 2018 Employment Agreement [Member] | Tim Vance [Member] | |||||
Annual compensation | $ | $ 98,000 | ||||
April 30, 2018 Employment Agreement [Member] | Gary D. Woerz [Member] | |||||
Annual compensation | $ | $ 57,200 | ||||
Restricted Stock [Member] | Employment Agreement [Member] | |||||
Shares issued price per share | $ / shares | $ 0.0034 | ||||
Restricted Stock [Member] | Employment Agreement [Member] | Tim Vance [Member] | |||||
Number of restricted shares issued | 3,500,000 | ||||
Agreement term | 5 years | ||||
Restricted Stock [Member] | Employment Agreement [Member] | Gary D. Woerz [Member] | |||||
Number of restricted shares issued | 2,000,000 | ||||
Agreement term | 5 years |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property and equipment | $ 151,723 | $ 151,723 |
Less accumulated depreciation and amortization | (146,494) | (145,687) |
Net property and equipment | $ 5,229 | 6,036 |
Minimum [Member] | ||
Property and equipment estimated useful lives | P3Y | |
Maximum [Member] | ||
Property and equipment estimated useful lives | P7Y | |
Equipment [Member] | ||
Property and equipment | $ 119,386 | 119,386 |
Equipment [Member] | Minimum [Member] | ||
Property and equipment estimated useful lives | P3Y | |
Equipment [Member] | Maximum [Member] | ||
Property and equipment estimated useful lives | P5Y | |
Office Furniture [Member] | ||
Property and equipment estimated useful lives | P7Y | |
Property and equipment | $ 21,681 | 21,681 |
Leasehold Improvements [Member] | ||
Property and equipment estimated useful lives | P3Y | |
Property and equipment | $ 10,656 | $ 10,656 |
Shareholder Notes Payable (Deta
Shareholder Notes Payable (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Principal payment on debt - related party | $ 1,800 | $ 1,759 | |
Accrued interest | 22,591 | 23,741 | $ 23,791 |
Interest payments | $ 1,200 | $ 1,241 |