Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Apr. 14, 2017 | Jun. 30, 2016 | |
Document and Entity Information: | |||
Entity Registrant Name | GROTE MOLEN INC | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Trading Symbol | grote | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,456,212 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 24,899,330 | ||
Entity Public Float | $ 420,000 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State Country Name | Nevada | ||
Entity Incorporation, Date of Incorporation | Mar. 15, 2004 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash | $ 111,565 | $ 9,251 |
Accounts receivable | 26,005 | 27,565 |
Accounts receivable - related parties | 11,905 | 11,365 |
Inventories | 1,061,558 | 708,893 |
Deposits | 50,000 | 64,685 |
Prepaid expenses | 565 | 356 |
Total current assets | 1,261,598 | 822,115 |
Property and equipment, net | 121,217 | 139,688 |
Intangible assets, net | 62,820 | 63,068 |
Total assets | 1,445,635 | 1,024,871 |
Current liabilities: | ||
Accounts payable and accrued expenses | 411,841 | 74,970 |
Accounts payable - related parties | 14,250 | |
Accrued interest payable - related parties | 42,240 | 53,507 |
Accrued interest payable | 19,502 | 22,686 |
Current portion of long-term debt - related party | 2,943 | |
Notes Payable - Related Parties | 179,879 | 130,127 |
Notes payable | 118,000 | 136,100 |
Total current liabilities | 785,712 | 420,333 |
Long-term debt: | ||
Note payable, less current portion | 139,603 | 145,139 |
Total liabilities | 925,315 | 565,472 |
Stockholders' equity: | ||
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $.001 par value, 100,000,000 shares authorized, 24,899,330 and 22,200,000 shares issued and outstanding at December 31, 2016 and 2015, respectively | 24,899 | 22,200 |
Additional paid-in capital | 465,469 | 147,800 |
Retained earnings | 29,952 | 289,399 |
Total stockholders' equity | 520,320 | 459,399 |
Total liabilities and stockholders' equity | $ 1,445,635 | $ 1,024,871 |
CONSOLIDATED BALANCE SHEETS PAR
CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS PARENTHETICAL | ||
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | ||
Preferred stock shares outstanding | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 24,899,330 | 22,200,000 |
Common stock shares outstanding | 24,899,330 | 22,200,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | ||
Sales | $ 962,782 | $ 1,446,128 |
Sales to related parties | 43,664 | 81,062 |
Total revenues | 1,006,446 | 1,527,190 |
Cost of revenues: | ||
Cost of sales | 712,517 | 1,052,429 |
Cost of related party sales | 32,314 | 58,993 |
Total cost of revenues | 744,831 | 1,111,422 |
Gross profit | 261,615 | 415,768 |
Operating costs and expenses: | ||
Selling, general and administrative | 319,973 | 304,095 |
Management fees to related parties | 151,800 | 151,800 |
Depreciation and amortization | 17,081 | 18,016 |
Total operating costs and expenses | 488,854 | 473,911 |
Loss from operations | (227,239) | (58,143) |
Other income (expense): | ||
Interest expense - related parties | (18,051) | (10,628) |
Interest expense | (16,197) | (15,009) |
Gain on sale of property and equipment | 2,072 | |
Total other expense | (32,176) | (25,637) |
Loss before income taxes | (259,415) | (83,780) |
Income tax (provision) benefit | (32) | 31,660 |
Net loss | $ (259,447) | $ (52,120) |
Net loss per common share - Basic and diluted | $ (0.01) | $ 0 |
Weighted average common shares outstanding - Basic and diluted | 22,746,068 | 22,200,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings | Total |
Balance at Dec. 31, 2014 | $ 22,200 | $ 147,800 | $ 341,519 | $ 511,519 |
Balance - Shares at Dec. 31, 2014 | 22,200,000 | |||
Net loss | (52,120) | (52,120) | ||
Balance at Dec. 31, 2015 | $ 22,200 | 147,800 | 289,399 | 459,399 |
Balance - Shares at Dec. 31, 2015 | 22,200,000 | |||
Issuance of common shares for cash | $ 2,699 | 267,233 | 269,932 | |
Issuance of common shares for cash (Shares) | 2,699,330 | |||
Warrants issued in conversion of debt | 50,436 | 50,436 | ||
Net loss | (259,447) | (259,447) | ||
Balance at Dec. 31, 2016 | $ 24,899 | $ 465,469 | $ 29,952 | $ 520,320 |
Balance - Shares at Dec. 31, 2016 | 24,899,330 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net loss | $ (259,447) | $ (52,120) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 17,081 | 18,016 |
Gain on sale of property and equipment | (2,072) | |
Fees added to loan principal | 156 | |
(Increase) Decrease in Accounts receivable | 1,560 | 17,652 |
(Increase) Decrease in Accounts receivable - related parties | (540) | 1,776 |
(Increase) Decrease in Inventories | (352,665) | (380,733) |
(Increase) Decrease in Deposits | 14,685 | 317,610 |
(Increase) Decrease in Prepaid Expenses | (209) | 6,579 |
Increase (Decrease) in Accounts Payable and Accrued Expenses | 336,871 | 23,949 |
Increase (Decrease) in Accounts Payable - Related Parties | 14,250 | |
Increase (Decrease) in Accrued Interest Payable - Related Parties | (11,267) | 8,571 |
Increase (Decrease) in Accrued Interest Payable | (2,748) | 8,491 |
Net cash used in operating activities | (244,345) | (30,209) |
Cash flows from investing activities: | ||
Proceeds from the sale of property and equipment | 3,710 | |
Net cash provided by investing activities | 3,710 | |
Cash flows from financing activities: | ||
Proceeds from long-term note payable | 5,300 | 28,700 |
Proceeds from issuance of notes payable - related parties | 300,000 | |
Proceeds from issuance of notes payable | 91,500 | 44,500 |
Proceeds from issuance of common stock | 269,932 | |
Repayment of notes payable - related parties | (250,248) | (24,500) |
Repayment of notes payable | (59,600) | |
Repayment of long-term note payable | (10,992) | (20,314) |
Repayment of long-term debt - related party | (2,943) | (49,734) |
Net cash provided by (used in) financing activities | 342,949 | (21,348) |
Net decrease in cash | 102,314 | (51,557) |
Cash, beginning of year | 9,251 | 60,808 |
Cash, end of year | 111,565 | 9,251 |
Non-Cash Investing and Financing Activities | ||
Conversion of note payable and accrued interest to warrants | 50,436 | |
Supplemental Cash Flow Information | ||
Cash paid during the year for interest | 48,023 | 7,709 |
Cash paid during the year for income taxes | $ 32 | $ 34 |
Note 1 - Organization and Summa
Note 1 - Organization and Summary of Signicant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 1 - Organization and Summary of Signicant Accounting Policies | NOTE 1 ORGANIZATION AND SUMMARY OF SIGNICANT ACCOUNTING POLICIES Organization Grote Molen, Inc. ("Grote Molen") was incorporated under the laws of the State of Nevada on March 15, 2004. BrownWick, LLC ("BrownWick"), a wholly owned subsidiary, was formed in the State of Idaho on June 5, 2005. The principal business of Grote Molen and BrownWick (collectively the "Company") is to distribute grain mills and related accessories for home use. Principles of Consolidation The consolidated financial statements include the accounts of Grote Molen and BrownWick. All significant inter-company balances and transactions have been eliminated. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, we consider all highly liquid investments with an original maturity date of three months or less to be cash equivalents. Since inception, the Company has not held any short-term investments considered to be cash equivalents. Fair Value of Financial Instruments Our financial instruments consist of cash, accounts receivable, accounts payable and notes payable. The carrying amount of cash, accounts receivable and accounts payable approximates fair value because of the short-term nature of these items. The carrying amount of the notes payable approximates fair value because the interest rates on the notes approximate market rates of interest. Accounts Receivable Trade accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts. We determine the allowance for doubtful accounts by identifying potential troubled accounts and by using historical experience and future expectations applied to an aging of accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded as income when received. We determined that no allowance for doubtful accounts was required at December 31, 2016 and 2015. Inventories Inventories, consisting primarily of grain mills, kitchen mixers, parts and accessories, are stated at the lower of cost or market, with cost determined using primarily the first-in-first-out (FIFO) method. We purchase substantially all inventories from two foreign suppliers, and have been dependent on those suppliers for substantially all inventory purchases since we commenced operations. When market value is determined to be less than cost, the Company records an allowance for obsolescence. At December 31, 2016 and 2015, the Company did not believe there to be any obsolescence, and has therefore not recorded an allowance. Deposits Generally, we are required to pay advanced deposits toward the purchase of inventories from our principal suppliers. Such advanced payments are recorded as deposits, a current asset in the accompanying consolidated financial statements. Property and Equipment Property and equipment are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets as follows: office equipment 3 to 5 years; warehouse equipment 5 to 10 years; website development 3 years; and molds 10 years. Depreciation expense was $16,833 and $16,964 for the years ended December 31, 2016 and 2015, respectively. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed and any resulting gain or loss is recognized in operations for the period. The cost of maintenance and repairs is charged to operations as incurred. Significant renewals and betterments are capitalized. Intangible Assets Intangible assets are recorded at cost, less accumulated amortization. Amortization of definite lived intangible assets is computed using the straight-line method based on the estimated useful lives or contractual lives of the assets, which range from 10 to 30 years. Amortization expense was $ 248 and $1,052 for the years ended December 31, 2016 and 2014, respectively. Our indefinite lived intangible asset includes the cost to acquire from a German manufacturer in 2012 the license to produce a 110-volt mixer. The license agreement stipulates that as long as the Company meets the terms of the agreement, the Company will have an exclusive license to the mixer indefinitely. No specific legal life or term to the license is otherwise stated in the agreement. We have concluded that no legal, regulatory, contractual, competitive, economic, or other factors limit the useful life of this intangible asset. We therefore have classified the license as indefinite, and are not amortizing its carrying value. Impairment of Long-Lived Assets We periodically review our long-lived assets, including intangible assets, for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. No events or changes in circumstances have occurred to indicate that the carrying amount of our long-lived assets may not be recoverable. Therefore, no impairment loss was recognized during the years ended December 31, 2016 and 2015. Revenue Recognition We record revenue from the sales of grain mills and accessories in accordance with the underlying sales agreements when the products are shipped, the selling price is fixed and determinable, and collection is reasonably assured. Warranties We provide limited warranties to our customers for certain of our products sold. We perform warranty work at our service center in Pocatello, Idaho or at other authorized service locations. Warranty expenses have not been material to our consolidated financial statements. Research and Development Costs Research and development costs are expensed as incurred in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 730, Research and Development Advertising Advertising costs are non-direct in nature, and are expensed over the periods in which the advertising takes place. Advertising expense totaled $68,431 and $58,894 for the years ended December 31, 2016 and 2015, respectively. Shipping and Handling The Company recognizes shipping and handling fees in accordance with ASC 605, Shipping and Handling Fees and Costs. Foreign Currency Transactions All transactions with our foreign suppliers and customers are delineated in United States Dollars. Therefore, there are no effects of foreign currency transactions and translations in our consolidated financial statements. Concentration of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash and trade receivables. In the normal course of business, we provide credit terms to our customers. Accordingly, we perform ongoing credit evaluations of our customers and maintain allowances for possible losses as appropriate. We maintain our cash in bank deposit accounts, which, at times, may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash. Income Taxes We account for income taxes in accordance with FASB ASC Topic 740, Income Taxes Earnings Per Share The computation of basic earnings per common share is based on the weighted average number of shares outstanding during the period. The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the period plus the common stock equivalents which would arise from the exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the period. Common stock equivalents are not included in the diluted earnings per share calculation when their effect is anti-dilutive. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Comprehensive Income (Loss) Comprehensive income (loss) is the same as net income (loss). Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect as of the date of the issuance of these financial statements. The following pronouncements will significantly impact future reporting of financial positon and results of operations. Management is currently assessing implementation. The FASB has issued Accounting Standards Update (ASU) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, clarifying the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. For public companies, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The FASB has issued its new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: · A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and · 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. · Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. · The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). The FASB has issued Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public companies, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For private companies, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any organization in any interim or annual period. The FASB has issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The effective date for nonpublic entities is deferred by one year. |
Note 2 - Going Concern
Note 2 - Going Concern | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 2 - Going Concern | NOTE 2 - GOING CONCERN The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. However, during the year ended December 31, 2016 the Company incurred a net loss of $259,447 and had negative cash from operations of $244,345. These factors raise substantial doubt about the ability of the Company to continue as a going concern. In this regard, management is proposing to raise any necessary additional funds not provided by operations through investment capital. There is no assurance that the Company will be successful in raising this additional capital or in achieving profitable operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. |
Note 3 - Detail of Certain Bala
Note 3 - Detail of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 3 - Detail of Certain Balance Sheet Accounts | NOTE 3 DETAIL OF CERTAIN BALANCE SHEET ACCOUNTS Accounts receivable consist of the following at December 31: 2016 2015 Trade accounts receivable related parties $ 6,905 $ 6,365 Employee advances 5,000 5,000 Total accounts receivable related parties 11,905 11,365 Trade accounts receivable 26,005 27,565 $ 37,910 $ 38,930 Property and equipment consist of the following at December 31: 2016 2015 Office equipment $ 4,335 $ 4,335 Warehouse equipment 7,122 16,927 Website development 2,000 2,000 Molds 150,615 150,615 164,072 173,877 Accumulated depreciation (42,855 ) (34,189 ) $ 121,217 $ 139,688 Intangible assets consist of the following at December 31: 2016 2015 License definite lived $ 10,500 $ 10,500 License indefinite lived 62,720 62,720 Patent 100 100 73,320 73,320 Accumulated amortization (10,500 ) (10,252 ) $ 62,820 $ 63,068 |
Note 4 - Related Party Debt
Note 4 - Related Party Debt | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 4 - Related Party Debt | NOTE 4 RELATED PARTY DEBT Notes payable related parties are unsecured and are comprised of the following at December 31: 2016 2015 Note payable to a stockholder, due on demand, interest at 6% per annum $ - $ 30,000 Note payable to a stockholder, due on demand, interest at 6% per annum 3,500 3,500 Note payable to a stockholder, due on demand, interest at 6% per annum 38,000 38,000 Note payable to a stockholder, due on demand, interest at 6% per annum 10,000 10,000 Note payable to a stockholder, due on demand, interest at 6% per annum 5,000 5,000 Note payable to a stockholder, due on demand, interest at 8% per annum 9,000 9,000 Note payable to a stockholder, due on demand, interest at 8% per annum - 15,000 Note payable to a stockholder, due on demand, interest at 8% per annum - 10,500 Note payable to a stockholder, due on demand, interest at 18% per annum 105,252 - Non-interest bearing advances from stockholders, no formal repayment terms 9,127 9,127 Total $ 179,879 $ 130,127 Long-term debt related party is comprised of the following at December 31: 2016 2015 Note payable to a stockholder, due in monthly installments of $4,000 through February 2016, with interest at 6.97 % per annum $ - $ 2,943 Less current portion - (2,943) Long-term portion $ - $ - Interest expense on this related party debt was $18,051 and $10,628 for the years ended December 31, 2016 and 2015, respectively. Accrued interest payable to related parties was $42,240 and $53,507 at December 31, 2016 and 2015, respectively. |
Note 5 - Notes Payable
Note 5 - Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 5 - Notes Payable | NOTE 5 NOTES PAYABLE Notes payable to non-related parties are unsecured and are comprised of the following at December 31: 2016 2015 Note payable, due on demand, interest at 8% per annum $ - $ 15,000 Note payable, due on demand, interest at 8% per annum - 20,000 Note payable, due on demand, interest at 8% per annum - 5,000 Note payable, due on demand, interest at 8% per annum 7,000 7,000 Note payable, due on demand, interest at 6% per annum 15,000 15,000 Note payable, due on demand, interest at 6% per annum 10,000 10,000 Note payable, due on demand, interest at 6% per annum - 4,000 Note payable, due on demand, interest at 6% per annum - 5,600 Note payable, due on demand, interest at 6% per annum 10,000 10,000 Note payable, due on demand, interest at 6% per annum 10,000 10,000 Note payable, due on demand, interest at 6% per annum - 10,000 Note payable, due on demand, interest at 6% per annum 10,000 10,000 Note payable, due on demand, interest at 6% per annum 2,500 2,500 Note payable, due on demand, interest at 6% per annum 9,000 9,000 Note payable, due on demand, interest at 6% per annum 3,000 3,000 Note payable, due on demand, interest at 6% per annum 20,000 3,000 Note payable, due on demand, interest at 6% per annum 5,000 3,000 Note payable, due on demand, interest at 6% per annum 6,500 3,000 Note payable, due on demand, interest at 6% per annum 10,000 3,000 Total $ 118,000 $ 136,100 We had a long-term note payable to a bank with a principal balance of 139,603 and $145,139 at December 31, 2016 and 2015, respectively. The long-term note payable is a line of credit promissory note bearing interest at an indexed rate plus 2% (4.75% at December 31, 2016), requiring monthly interest payments only, and maturing on May 16, 2021. The note payable has an available line of credit of $150,000, and is secured by a deed of trust on certain real estate owned by one of the principal stockholders of the Company and by the Company's inventories, property and equipment, and intangible assets. Accrued interest payable on the notes payable was $19,502 and $22,686 at December 31, 2016 and December 31, 2015, respectively. |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 6 - Income Taxes | NOTE 6 INCOME TAXES The Company had an income tax provision for the year ended December 31, 2015 of $32. The reconciliation of the income tax (provision) benefit computed at the U.S. federal statutory tax rate to the Company's effective tax rate is as follows for the years ended December 31: 2016 2015 Federal benefit at statutory rate $ 88,201 $ 28,485 State income tax, net of federal benefit 17,353 4,655 Other (322 ) 8,410 Redetermination of prior year taxes - - Change in valuation allowance (105,264 ) (9,890 ) Income tax (provision) benefit $ (32 ) $ 31,660 Deferred tax assets (liabilities) are comprised of the following at December 31: 2016 2015 Current assets: Related party interest expense $ 17,572 $ 22,259 Charitable contributions 3,817 3,817 Net operating loss carryforward 130,948 27,695 Long-term liability depreciation and amortization (20,105 ) (26,782 ) 132,253 26,989 Valuation allowance (132,253 ) (26,989 ) $ - $ - In recording the valuation allowances, we were unable to conclude that it is more likely than not that all or a portion of a net deferred tax asset will be realized. As of December 31, 2016, we had net operating loss carryforwards of approximately $315,000 available to offset future taxable income through 2025. FASB ASC Topic 740, Income Taxes, We include interest and penalties arising from the underpayment of income taxes, if any, in our consolidated statements of operations in general and administrative expenses. As of December 31, 2016 and 2015, we had no accrued interest or penalties related to uncertain tax positions. We file income tax returns in the U.S. federal jurisdiction and in the state of Idaho. All U.S. federal and Idaho state income tax returns from 2009 through the year ended December 31, 2016 are subject to examination. |
Note 7 - Related Party Transact
Note 7 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 7 - Related Party Transactions | NOTE 7 RELATED PARTY TRANSACTIONS Pursuant to an agreement effective in February 2011, we pay a monthly management fee to a company owned by one of the major stockholders of the Company to manage our day-to-day business activities and to provide business space. Historically we have paid monthly management fees in varying amounts to this related party pursuant to prior agreements approved by the stockholders of the Company. The agreement is on a month-to-month basis and can be cancelled at any time by the vote of management. The agreement was amended and restated on October 31, 2014 to increase the fee to $12,500 effective November 1, 2014. Also included in management fees are monthly payments of $150 to another major stockholder of the Company for expense reimbursement. Management fees to related parties totaled $151,800 for both of the years ended December 31, 2016 and 2015. Each of the two principal stockholders of the Company own companies that are our customers. Sales to these related parties totaled $43,664 and $81,062 for the years ended December 31, 2016 and 2015, respectively, or approximately 5% for each year. Accounts receivable from these related parties totaled $6,905 and $6,365 at December 31, 2016 and 2015, respectively. See Note 4 for discussion of related party debt and interest expense. |
Note 8 - Capital Stock
Note 8 - Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 8 - Capital Stock | NOTE 8 CAPITAL STOCK The Company's preferred stock may have such rights, preferences and designations and may be issued in such series as determined by our Board of Directors. No preferred shares were issued and outstanding at December 31, 2016 and 2015. During the year ended December 31, 2016, Grote Molen sold 2,699,330 Units, each consisting of one share of common stock and one five-year common stock purchase warrant exercisable at $0.70 per share, in a private offering to accredited investors, at an offering price of $0.10 per Unit, for total proceeds of $269,932. The Company estimated the grant date value of the five-year common stock purchase warrants included in the Units sold in the private placement at $0.01 per warrant, or a total of $26,993, using the Black-Scholes option pricing model, which value was recorded to additional paid-in capital. The remaining $242,940 of the proceeds from the sale of the Units was allocated to the common stock included in the Units sold. On September 7, 2016, Grote Molen issued warrants to purchase 5,000,000 shares of its common stock to an accredited investor in consideration for the conversion/cancellation of its $50,000 promissory note plus $436 of accrued interest payable to such investor. The warrants are exercisable at $0.70 per share during the five-year period commencing September 1, 2018 and grant the holder "piggy back" registration rights. The Company estimated the grant date value of the five-year common stock purchase warrants issued in consideration for the conversion/cancellation of the debt at $0.01 per warrant, or a total of $50,436, using the Black-Scholes option pricing model, which value was recorded to additional paid-in capital. The significant assumptions used in the Black Scholes valuation of the warrants are as follows: Stock price on the valuation date $ 0.09 Warrant exercise price $ 0.70 Dividend yield 0.00 % Years to maturity 5.0 Risk free rate 1.12 % Expected volatility 63.85 % |
Note 9 - Agreement and Plan of
Note 9 - Agreement and Plan of Reorganization | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 9 - Agreement and Plan of Reorganization | NOTE 9 AGREEMENT AND PLAN OF REORGANIZATION On September 6, 2016, Grote Molen, Merger Corp. and Blackridge Technology Holdings, Inc., ("Blackridge"), entered into an Agreement and Plan of Reorganization (the "Reorganization Agreement"), which generally provides for Grote Molen's acquisition of Blackridge in a reorganization in exchange for a controlling number of shares of Grote Molen's preferred and common stock pursuant to the merger of Merger Corp. with and into Blackridge, with Blackridge continuing as the surviving corporation. The Reorganization Agreement provides that the closing of the transactions contemplated thereby is subject to several significant conditions precedent. The Reorganization was completed on February 22, 2017 (see Note 12 subsequent events), and resulted in a change of control of Grote Molen with the Blackridge stockholders being able to elect the directors and control the policies and practices of the Grote Molen. It is anticipated that the transaction will be accounted for as a reverse acquisition for accounting purposes. |
Note 10 - Supplemental Statemen
Note 10 - Supplemental Statement of Cash Flows Information | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 10 - Supplemental Statement of Cash Flows Information | NOTE 10 SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION During the years ended December 31, 2016 and 2015, the Company had non-cash financing and investing activities of $50,436 related to the conversion of a note and accrued interest into warrants. We paid cash for income taxes of $32 and $34 for the years ended December 31, 2016 and 2015, respectively. We paid cash for interest of $48,023 and $7,709 for the years ended December 31, 2016 and 2015, respectively. |
Note 10 - Significant Concentra
Note 10 - Significant Concentrations | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 10 - Significant Concentrations | NOTE 11 SIGNIFICANT CONCENTRATIONS In addition to the sales to related parties discussed in Note 7, we had sales to one customer that accounted for approximately 10% and 7% of total sales for each of the years ended December 31, 2016 and 2015, respectively. We purchase substantially all inventories from two foreign suppliers, and have been dependent on those suppliers for substantially all inventory purchases since we commenced operations. |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 12 - Subsequent Events | NOTE 12 SUBSEQUENT EVENTS We have evaluated events occurring after the date of our accompanying balance sheets through the date the financial statements were issued. We have identified the following subsequent event that we believe requires disclosure. Debt Issuances On February 2,2017, the Company issued a $100,000 convertible note bearing interest at 10% per annum. The note matures on March 31, 2018 and convertible at a price of $0.66 per share at the holder's request. The note was repaid in full on April 4, 2017 along with $1,785 in accrued interest. Unregistered Sales of Equity Between January 1, 2017 and February 22, 2017, we received proceeds of $35,000 from the sale of 350,000 Units, each consisting of one share of common stock and one five-year common stock purchase warrant exercisable at $0.70 per share On February 22, 2017, we completed the actions contemplated by the Reorganization Agreement and merged with and into BlackRidge with BlackRidge continuing as the surviving corporation. Upon completion of the Agreement, we issued 3,783,791 shares of our newly designated Series A Preferred Stock and 12,825,683 shares of Common Stock to the stockholders of BlackRidge in exchange for all the issued and outstanding shares of Series A Preferred Stock and Common Stock of BlackRidge. Between February 27, 2017 and March 31, 2017, the Company sold an aggregate 6,214,606 shares of Common Stock with 4,660,955 detachable 5 year warrants to purchase additional shares of the Company's Common Stock at the price of $0.60 per share to several investors for gross proceeds of $2,796,573 or $0.45 per share. Between February 2, 2017 and March 6, 2017, the Company issued warrants to purchase 316,667 shares of the Company's Common Stock at an exercise price per share of $0.60 to several parties in conjunction with short term Financing. Reorganization Agreement On September 6, 2016, the Company and BlackRidge Technology Holdings, Inc., a Delaware corporation ("BlackRidge") entered into an Agreement and Plan of Reorganization (the "Reorganization Agreement") originally dated as of September 6, 2016, and amended on February 22, 2017 to update the number of common shares, warrants, and options granted and outstanding as of the closing date. On February 22, 2017 (the "Closing Date"), we completed the actions contemplated by the Reorganization Agreement and merged with and into BlackRidge with BlackRidge continuing as the surviving corporation. Upon completion of the Agreement, we issued 3,783,791 shares of our newly designated Series A Preferred Stock and 12,825,683 shares of Common Stock to the stockholders of BlackRidge in exchange for all the issued and outstanding shares of Series A Preferred Stock and Common Stock of BlackRidge. Additionally, certain stockholders of the Company returned for cancellation a total of 16,284,330 shares of our Common Stock. Upon the completion of the Reorganization, BlackRidge became a wholly-owned subsidiary of the Company and the Company had a total of 3,783,791 shares of Series A Preferred Stock and 21,790,683 shares of Common Stock outstanding, with the former BlackRidge stockholders owning 3,783,791 shares or 100% of Series A Preferred Stock and 12,825,683 shares or approximately 58.9% of Common Stock. Upon completion of the Reorganization, we also had outstanding warrants entitling the holders to acquire a total of 18,541,579 shares of the Company's Common Stock at an average exercise price of $0.46 per share. The Reorganization resulted in a change of control of the Company. For accounting purposes, BlackRidge will be treated as the acquirer and the historical financial statements of BlackRidge will become the Company's historical financial statements. The acquisition is intended to constitute a tax-free reorganization pursuant to the applicable provisions of the Internal Revenue Code of 1986, as amended. At the closing of the Reorganization, Robert Graham was appointed as President, and John Bluher was appointed Chief Financial Officer, Treasurer and Secretary. In addition, Bruce Crane resigned from his position as a director and Robert Graham was appointed as a director of the Company to fill the vacancy created by such resignation. John Hofman, our remaining director, resigned from such position effective following our compliance with rule 14f-1 promulgated under the Exchange Act, and John Hayes and Robert Lentz were appointed as directors of the Company effective at such time as Mr. Hofman's resignation became effective. Asset divestiture On March 31, 2017, the Company completed the sale of substantially all the assets, other than cash, used in or connection with the Company's home grain mill and kitchen mixer business to John Hofman and Bruce Crane, former officers and directors of the Company, in consideration for the assumption by such persons of substantially all the liabilities incurred by the Company in connection with such business. The assets divested consisted of the non-cybersecurity assets of the Company and included accounts receivable, inventory, deposits, property and equipment and intangible assets. The liabilities divested included the non-cybersecurity liabilities of the Company and included accounts payable and accrued expenses and long and short-term notes payable and accrued interest thereon. |
Note 1 - Organization and Sum19
Note 1 - Organization and Summary of Signicant Accounting Policies: Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Grote Molen and BrownWick. All significant inter-company balances and transactions have been eliminated. |
Note 1 - Organization and Sum20
Note 1 - Organization and Summary of Signicant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, we consider all highly liquid investments with an original maturity date of three months or less to be cash equivalents. Since inception, the Company has not held any short-term investments considered to be cash equivalents. |
Note 1 - Organization and Sum21
Note 1 - Organization and Summary of Signicant Accounting Policies: Fair Value of Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial instruments consist of cash, accounts receivable, accounts payable and notes payable. The carrying amount of cash, accounts receivable and accounts payable approximates fair value because of the short-term nature of these items. The carrying amount of the notes payable approximates fair value because the interest rates on the notes approximate market rates of interest. |
Note 1 - Organization and Sum22
Note 1 - Organization and Summary of Signicant Accounting Policies: Accounts Receivable (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Accounts Receivable | Accounts Receivable Trade accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts. We determine the allowance for doubtful accounts by identifying potential troubled accounts and by using historical experience and future expectations applied to an aging of accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded as income when received. We determined that no allowance for doubtful accounts was required at December 31, 2016 and 2015. |
Note 1 - Organization and Sum23
Note 1 - Organization and Summary of Signicant Accounting Policies: Inventories (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Inventories | Inventories Inventories, consisting primarily of grain mills, kitchen mixers, parts and accessories, are stated at the lower of cost or market, with cost determined using primarily the first-in-first-out (FIFO) method. We purchase substantially all inventories from two foreign suppliers, and have been dependent on those suppliers for substantially all inventory purchases since we commenced operations. When market value is determined to be less than cost, the Company records an allowance for obsolescence. At December 31, 2016 and 2015, the Company did not believe there to be any obsolescence, and has therefore not recorded an allowance. |
Note 1 - Organization and Sum24
Note 1 - Organization and Summary of Signicant Accounting Policies: Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Property and Equipment | Property and Equipment Property and equipment are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets as follows: office equipment 3 to 5 years; warehouse equipment 5 to 10 years; website development 3 years; and molds 10 years. Depreciation expense was $16,833 and $16,964 for the years ended December 31, 2016 and 2015, respectively. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed and any resulting gain or loss is recognized in operations for the period. The cost of maintenance and repairs is charged to operations as incurred. Significant renewals and betterments are capitalized. |
Note 1 - Organization and Sum25
Note 1 - Organization and Summary of Signicant Accounting Policies: Intangible Assets (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Intangible Assets | Intangible Assets Intangible assets are recorded at cost, less accumulated amortization. Amortization of definite lived intangible assets is computed using the straight-line method based on the estimated useful lives or contractual lives of the assets, which range from 10 to 30 years. Amortization expense was $ 248 and $1,052 for the years ended December 31, 2016 and 2014, respectively. Our indefinite lived intangible asset includes the cost to acquire from a German manufacturer in 2012 the license to produce a 110-volt mixer. The license agreement stipulates that as long as the Company meets the terms of the agreement, the Company will have an exclusive license to the mixer indefinitely. No specific legal life or term to the license is otherwise stated in the agreement. We have concluded that no legal, regulatory, contractual, competitive, economic, or other factors limit the useful life of this intangible asset. We therefore have classified the license as indefinite, and are not amortizing its carrying value. |
Note 1 - Organization and Sum26
Note 1 - Organization and Summary of Signicant Accounting Policies: Impairment of Long-lived Assets (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets We periodically review our long-lived assets, including intangible assets, for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. No events or changes in circumstances have occurred to indicate that the carrying amount of our long-lived assets may not be recoverable. Therefore, no impairment loss was recognized during the years ended December 31, 2016 and 2015. |
Note 1 - Organization and Sum27
Note 1 - Organization and Summary of Signicant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Revenue Recognition | Revenue Recognition We record revenue from the sales of grain mills and accessories in accordance with the underlying sales agreements when the products are shipped, the selling price is fixed and determinable, and collection is reasonably assured. |
Note 1 - Organization and Sum28
Note 1 - Organization and Summary of Signicant Accounting Policies: Warranties (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Warranties | Warranties We provide limited warranties to our customers for certain of our products sold. We perform warranty work at our service center in Pocatello, Idaho or at other authorized service locations. Warranty expenses have not been material to our consolidated financial statements. |
Note 1 - Organization and Sum29
Note 1 - Organization and Summary of Signicant Accounting Policies: Research and Development Costs (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 730, Research and Development |
Note 1 - Organization and Sum30
Note 1 - Organization and Summary of Signicant Accounting Policies: Advertising (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Advertising | Advertising Advertising costs are non-direct in nature, and are expensed over the periods in which the advertising takes place. Advertising expense totaled $68,431 and $58,894 for the years ended December 31, 2016 and 2015, respectively. |
Note 1 - Organization and Sum31
Note 1 - Organization and Summary of Signicant Accounting Policies: Shipping and Handling (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Shipping and Handling | Shipping and Handling The Company recognizes shipping and handling fees in accordance with ASC 605, Shipping and Handling Fees and Costs. |
Note 1 - Organization and Sum32
Note 1 - Organization and Summary of Signicant Accounting Policies: Foreign Currency Transactions (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Foreign Currency Transactions | Foreign Currency Transactions All transactions with our foreign suppliers and customers are delineated in United States Dollars. Therefore, there are no effects of foreign currency transactions and translations in our consolidated financial statements. |
Note 1 - Organization and Sum33
Note 1 - Organization and Summary of Signicant Accounting Policies: Concentration of Credit Risk (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash and trade receivables. In the normal course of business, we provide credit terms to our customers. Accordingly, we perform ongoing credit evaluations of our customers and maintain allowances for possible losses as appropriate. We maintain our cash in bank deposit accounts, which, at times, may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash. |
Note 1 - Organization and Sum34
Note 1 - Organization and Summary of Signicant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Income Taxes | Income Taxes We account for income taxes in accordance with FASB ASC Topic 740, Income Taxes |
Note 1 - Organization and Sum35
Note 1 - Organization and Summary of Signicant Accounting Policies: Earnings Per Share (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Earnings Per Share | Earnings Per Share The computation of basic earnings per common share is based on the weighted average number of shares outstanding during the period. The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the period plus the common stock equivalents which would arise from the exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the period. Common stock equivalents are not included in the diluted earnings per share calculation when their effect is anti-dilutive. |
Note 1 - Organization and Sum36
Note 1 - Organization and Summary of Signicant Accounting Policies: Use of Estimates in The Preparation of Financial Statements (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Use of Estimates in The Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note 1 - Organization and Sum37
Note 1 - Organization and Summary of Signicant Accounting Policies: Comprehensive Income (loss) (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Comprehensive Income (loss) | Comprehensive Income (Loss) Comprehensive income (loss) is the same as net income (loss). |
Note 1 - Organization and Sum38
Note 1 - Organization and Summary of Signicant Accounting Policies: Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect as of the date of the issuance of these financial statements. The following pronouncements will significantly impact future reporting of financial positon and results of operations. Management is currently assessing implementation. The FASB has issued Accounting Standards Update (ASU) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, clarifying the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. For public companies, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The FASB has issued its new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: · A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and · 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. · Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. · The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). The FASB has issued Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public companies, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For private companies, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any organization in any interim or annual period. The FASB has issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The effective date for nonpublic entities is deferred by one year. |
Note 3 - Detail of Certain Ba39
Note 3 - Detail of Certain Balance Sheet Accounts: Accounts Receivable Consist of The Following At December 31 (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Accounts Receivable Consist of The Following At December 31: | 2016 2015 Trade accounts receivable related parties $ 6,905 $ 6,365 Employee advances 5,000 5,000 Total accounts receivable related parties 11,905 11,365 Trade accounts receivable 26,005 27,565 $ 37,910 $ 38,930 |
Note 3 - Detail of Certain Ba40
Note 3 - Detail of Certain Balance Sheet Accounts: Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Property, Plant and Equipment | 2016 2015 Office equipment $ 4,335 $ 4,335 Warehouse equipment 7,122 16,927 Website development 2,000 2,000 Molds 150,615 150,615 164,072 173,877 Accumulated depreciation (42,855 ) (34,189 ) $ 121,217 $ 139,688 |
Note 3 - Detail of Certain Ba41
Note 3 - Detail of Certain Balance Sheet Accounts: Schedule of Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Intangible Assets and Goodwill | 2016 2015 License definite lived $ 10,500 $ 10,500 License indefinite lived 62,720 62,720 Patent 100 100 73,320 73,320 Accumulated amortization (10,500 ) (10,252 ) $ 62,820 $ 63,068 |
Note 4 - Related Party Debt_ Sc
Note 4 - Related Party Debt: Schedule Of Notes Payable To Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule Of Notes Payable To Related Parties | 2016 2015 Note payable to a stockholder, due on demand, interest at 6% per annum $ - $ 30,000 Note payable to a stockholder, due on demand, interest at 6% per annum 3,500 3,500 Note payable to a stockholder, due on demand, interest at 6% per annum 38,000 38,000 Note payable to a stockholder, due on demand, interest at 6% per annum 10,000 10,000 Note payable to a stockholder, due on demand, interest at 6% per annum 5,000 5,000 Note payable to a stockholder, due on demand, interest at 8% per annum 9,000 9,000 Note payable to a stockholder, due on demand, interest at 8% per annum - 15,000 Note payable to a stockholder, due on demand, interest at 8% per annum - 10,500 Note payable to a stockholder, due on demand, interest at 18% per annum 105,252 - Non-interest bearing advances from stockholders, no formal repayment terms 9,127 9,127 Total $ 179,879 $ 130,127 |
Note 4 - Related Party Debt_ 43
Note 4 - Related Party Debt: Schedule Of Long Term Debt Related Party (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule Of Long Term Debt Related Party | 2016 2015 Note payable to a stockholder, due in monthly installments of $4,000 through February 2016, with interest at 6.97 % per annum $ - $ 2,943 Less current portion - (2,943) Long-term portion $ - $ - |
Note 5 - Notes Payable_ Schedul
Note 5 - Notes Payable: Schedule of Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Debt | 2016 2015 Note payable, due on demand, interest at 8% per annum $ - $ 15,000 Note payable, due on demand, interest at 8% per annum - 20,000 Note payable, due on demand, interest at 8% per annum - 5,000 Note payable, due on demand, interest at 8% per annum 7,000 7,000 Note payable, due on demand, interest at 6% per annum 15,000 15,000 Note payable, due on demand, interest at 6% per annum 10,000 10,000 Note payable, due on demand, interest at 6% per annum - 4,000 Note payable, due on demand, interest at 6% per annum - 5,600 Note payable, due on demand, interest at 6% per annum 10,000 10,000 Note payable, due on demand, interest at 6% per annum 10,000 10,000 Note payable, due on demand, interest at 6% per annum - 10,000 Note payable, due on demand, interest at 6% per annum 10,000 10,000 Note payable, due on demand, interest at 6% per annum 2,500 2,500 Note payable, due on demand, interest at 6% per annum 9,000 9,000 Note payable, due on demand, interest at 6% per annum 3,000 3,000 Note payable, due on demand, interest at 6% per annum 20,000 3,000 Note payable, due on demand, interest at 6% per annum 5,000 3,000 Note payable, due on demand, interest at 6% per annum 6,500 3,000 Note payable, due on demand, interest at 6% per annum 10,000 3,000 Total $ 118,000 $ 136,100 |
Note 6 - Income Taxes_ Schedule
Note 6 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | 2016 2015 Federal benefit at statutory rate $ 88,201 $ 28,485 State income tax, net of federal benefit 17,353 4,655 Other (322 ) 8,410 Redetermination of prior year taxes - - Change in valuation allowance (105,264 ) (9,890 ) Income tax (provision) benefit $ (32 ) $ 31,660 |
Note 6 - Income Taxes_ Schedu46
Note 6 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 2016 2015 Current assets: Related party interest expense $ 17,572 $ 22,259 Charitable contributions 3,817 3,817 Net operating loss carryforward 130,948 27,695 Long-term liability depreciation and amortization (20,105 ) (26,782 ) 132,253 26,989 Valuation allowance (132,253 ) (26,989 ) $ - $ - |
Note 1 - Organization and Sum47
Note 1 - Organization and Summary of Signicant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Details | |
Entity Incorporation, State Country Name | Nevada |
Entity Incorporation, Date of Incorporation | Mar. 15, 2004 |
Note 1 - Organization and Sum48
Note 1 - Organization and Summary of Signicant Accounting Policies: Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Depreciation | $ 16,833 | $ 16,964 |
Note 1 - Organization and Sum49
Note 1 - Organization and Summary of Signicant Accounting Policies: Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Amortization of Intangible Assets | $ 248 | $ 1,052 |
Note 1 - Organization and Sum50
Note 1 - Organization and Summary of Signicant Accounting Policies: Advertising (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Advertising Expense | $ 68,431 | $ 58,894 |
Note 1 - Organization and Sum51
Note 1 - Organization and Summary of Signicant Accounting Policies: Shipping and Handling (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Shipping, Handling and Transportation Costs | $ 26,616 | $ 33,084 |
Note 3 - Detail of Certain Ba52
Note 3 - Detail of Certain Balance Sheet Accounts: Accounts Receivable Consist of The Following At December 31 (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Trade accounts receivable - related parties | $ 6,905 | $ 6,365 |
Employee advances | 5,000 | 5,000 |
Accounts receivable - related parties | 11,905 | 11,365 |
Accounts receivable | 26,005 | 27,565 |
Accounts Receivable, Net | $ 37,910 | $ 38,930 |
Note 3 - Detail of Certain Ba53
Note 3 - Detail of Certain Balance Sheet Accounts: Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment, Gross | $ 164,072 | $ 173,877 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (42,855) | (34,189) |
Property and equipment, net | 121,217 | 139,688 |
Office Equipment | ||
Property, Plant and Equipment, Gross | 4,335 | 4,335 |
Equipment | ||
Property, Plant and Equipment, Gross | 7,122 | 16,927 |
Software Development | ||
Property, Plant and Equipment, Gross | 2,000 | 2,000 |
Tools, Dies and Molds | ||
Property, Plant and Equipment, Gross | $ 150,615 | $ 150,615 |
Note 3 - Detail of Certain Ba54
Note 3 - Detail of Certain Balance Sheet Accounts: Schedule of Intangible Assets and Goodwill (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
License - definitive life | $ 10,500 | $ 10,500 |
License - indefinitive life | 62,720 | 62,720 |
Finite-Lived Patents, Gross | 100 | 100 |
Finite-Lived Intangible Assets, Gross | 73,320 | 73,320 |
Finite-Lived Intangible Assets, Accumulated Amortization | (10,500) | (10,252) |
Intangible assets, net | $ 62,820 | $ 63,068 |
Note 4 - Related Party Debt_ 55
Note 4 - Related Party Debt: Schedule Of Notes Payable To Related Parties (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Notes Payable - Related Parties | $ 179,879 | $ 130,127 |
Note 1 | ||
Notes Payable - Related Parties | 30,000 | |
Note 2 | ||
Notes Payable - Related Parties | 3,500 | 3,500 |
Note 3 | ||
Notes Payable - Related Parties | 38,000 | 38,000 |
Note 4 | ||
Notes Payable - Related Parties | 10,000 | 10,000 |
Note 5 | ||
Notes Payable - Related Parties | 5,000 | 5,000 |
Note 6 | ||
Notes Payable - Related Parties | 9,000 | 9,000 |
Note 7 | ||
Notes Payable - Related Parties | 15,000 | |
Note 8 | ||
Notes Payable - Related Parties | 10,500 | |
Note 9 | ||
Notes Payable - Related Parties | 105,252 | |
Note 10 | ||
Notes Payable - Related Parties | $ 9,127 | $ 9,127 |
Note 4 - Related Party Debt_ 56
Note 4 - Related Party Debt: Schedule Of Long Term Debt Related Party (Details) | Dec. 31, 2015USD ($) | |
Details | ||
Due to Other Related Parties | $ 2,943 | [1] |
Current Portion of Long-Term Debt - Related Party | $ (2,943) | |
[1] | Due in monthly installments of $4,000 through February 2016, with interest at 6.97 % per annum |
Note 4 - Related Party Debt (De
Note 4 - Related Party Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Interest Expense - Related Parties | $ 18,051 | $ 10,628 |
Accrued interest payable - related parties | $ 42,240 | $ 53,507 |
Note 5 - Notes Payable_ Sched58
Note 5 - Notes Payable: Schedule of Debt (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Notes payable | $ 118,000 | $ 136,100 |
Note 11 | ||
Notes payable | 15,000 | |
Note 12 | ||
Notes payable | 20,000 | |
Note 13 | ||
Notes payable | 5,000 | |
Note 14 | ||
Notes payable | 7,000 | 7,000 |
Note 15 | ||
Notes payable | 15,000 | 15,000 |
Note 16 | ||
Notes payable | 10,000 | 10,000 |
Note 17 | ||
Notes payable | 4,000 | |
Note 18 | ||
Notes payable | 5,600 | |
Note 19 | ||
Notes payable | 10,000 | 10,000 |
Note 20 | ||
Notes payable | 10,000 | 10,000 |
Note 21 | ||
Notes payable | 10,000 | |
Note 22 | ||
Notes payable | 10,000 | 10,000 |
Note 23 | ||
Notes payable | 2,500 | 2,500 |
Note 24 | ||
Notes payable | 9,000 | 9,000 |
Note25Member | ||
Notes payable | 3,000 | 3,000 |
Note26Member | ||
Notes payable | 20,000 | 3,000 |
Note27Member | ||
Notes payable | 5,000 | 3,000 |
Note28Member | ||
Notes payable | 6,500 | 3,000 |
Note29Member | ||
Notes payable | $ 10,000 | $ 3,000 |
Note 5 - Notes Payable (Details
Note 5 - Notes Payable (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Note payable | $ 139,603 | $ 145,139 |
Accrued interest payable | $ 19,502 | $ 22,686 |
Note 6 - Income Taxes_ Schedu60
Note 6 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $ 88,201 | $ 28,485 |
Income Tax Reconciliation, State and Local Income Taxes | 17,353 | 4,655 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (322) | 8,410 |
Income Tax Reconciliation, Change in Valuation Allowance | (105,264) | (9,890) |
Income tax (provision) benefit | $ (32) | $ 31,660 |
Note 6 - Income Taxes_ Schedu61
Note 6 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Deferred Tax Assets, Gross, Current | $ 17,572 | $ 22,259 |
Deferred Tax Assets, Charitable Contribution Carryforwards | 3,817 | 3,817 |
Deferred Tax Assets, Operating Loss Carryforwards | 130,948 | 27,695 |
Deferred Tax Liabilities, Gross, Noncurrent | (20,105) | (26,782) |
Deferred Tax Assets, Gross | 132,253 | 26,989 |
Deferred Tax Assets, Valuation Allowance | $ (132,253) | $ (26,989) |
Note 6 - Income Taxes (Details)
Note 6 - Income Taxes (Details) | Dec. 31, 2016USD ($) |
Details | |
Operating Loss Carryforwards | $ 315,000 |
Note 7 - Related Party Transa63
Note 7 - Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Nov. 01, 2014 | |
Details | |||
Monthly management fee related party | $ 12,500 | ||
Expense reimbursement to stockholder | $ 150 | ||
Management fees to related parties | $ 151,800 | $ 151,800 | |
Sales to related parties | $ 43,664 | $ 81,062 | |
Percent of sales to related parties | 5.00% | 5.00% | |
Trade accounts receivable - related parties | $ 6,905 | $ 6,365 |
Note 8 - Capital Stock (Details
Note 8 - Capital Stock (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Details | |
Issuance of common shares for cash | $ 269,932 |
Note 10 - Supplemental Statem65
Note 10 - Supplemental Statement of Cash Flows Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Conversion of note payable and accrued interest to warrants | $ 50,436 | $ 50,436 | |
Cash paid during the year for income taxes | 32 | $ 34 | |
Cash paid during the year for interest | $ 48,023 | $ 7,709 |
Note 10 - Significant Concent66
Note 10 - Significant Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Concentration Risk, Customer | 10% | 7% |