Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2019shares | |
Details | |
Registrant CIK | 0001492091 |
Fiscal Year End | --12-31 |
Registrant Name | AUSCRETE CORPORATION |
SEC Form | 10-Q |
Period End date | Sep. 30, 2019 |
Tax Identification Number (TIN) | 27-1692457 |
Number of common stock shares outstanding | 962,597 |
Filer Category | Non-accelerated Filer |
Current with reporting | Yes |
Interactive Data Current | Yes |
Shell Company | false |
Small Business | true |
Emerging Growth Company | true |
Ex Transition Period | false |
Amendment Description | n |
Entity File Number | 001-35923 |
Entity Incorporation, State or Country Code | WY |
Entity Address, Address Line One | 49 John Day Dam Rd |
Entity Address, City or Town | Goldendale |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 98620 |
City Area Code | 509 |
Local Phone Number | 2612 |
Amendment Flag | true |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Document Quarterly Report | true |
Document Transition Report | false |
Statement of Financial Position
Statement of Financial Position - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Details | ||
Cash | $ 32,129 | $ 15,948 |
Prepaid Expenses | 5,661 | 1,217 |
Inventory | 47,000 | 47,000 |
TOTAL CURRENT ASSETS | 84,790 | 64,165 |
Property, Plant and Equipment (net) | 37,767 | 122,035 |
Deposits | 0 | 0 |
TOTAL ASSETS | 122,557 | 186,200 |
CURRENT LIABILITIES: | ||
Accounts Payable | 50,176 | 21,229 |
Accrued Interest Payable | 102,151 | 102,815 |
Notes Payable (net of discount) | 331,497 | 411,071 |
Derivative Liability | 331,252 | 372,151 |
Related Party Advances | 5,953 | 1,079 |
TOTAL CURRENT LIABILITIES | 821,029 | 908,345 |
TOTAL LIABILITIES | 821,029 | 908,345 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
4,779,723 and 286,137 shares issued and outstanding as of September 30, 2019 and December 31, 2018 respectively, restated to APIC below for the 200 for 1 reverse stock Split | 478 | 29 |
Additional Paid In Capital | 6,871,190 | 5,985,986 |
Shares to be issued | 0 | 0 |
Accumulated deficit | (7,570,140) | (6,708,160) |
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | (698,472) | (722,145) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ 122,557 | $ 186,200 |
Income Statement
Income Statement - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Details | ||||
REVENUE | $ 0 | $ 0 | $ 0 | $ 0 |
EXPENSES | ||||
Accounting and Legal | 18,100 | 1,600 | 37,800 | 19,809 |
Salaries and wages | 33,142 | 31,017 | 74,480 | 40,279 |
Share based expense | 0 | 2,540,000 | 0 | 2,540,000 |
G&A Expenses | 38,966 | 28,013 | 85,299 | 107,484 |
Depreciation expense | 1,307 | 1,307 | 3,921 | 3,921 |
TOTAL EXPENSES | 91,515 | 2,601,937 | 201,500 | 2,711,493 |
Gain / (Loss) on Derivative | (172,784) | (290,991) | (21,634) | (389,132) |
Financing cost | (302,722) | (283,884) | (447,361) | (739,562) |
Interest Expense | (70,793) | (14,642) | (181,486) | (40,282) |
TOTAL OTHER INCOME (EXPENSES) | (556,299) | (589,517) | (660,481) | (1,168,976) |
LOSS BEFORE TAXES | (647,814) | (3,191,454) | (861,979) | (3,880,469) |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
NET LOSS | $ (647,814) | $ (3,191,454) | $ (861,979) | $ (3,880,469) |
NET LOSS PER COMMON SHARE - BASIC & DILUTED | $ (0.40) | $ (22.33) | $ (1.13) | $ (6,802) |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net Income (Loss) | $ (861,981) | $ (3,880,496) |
Finance Costs | 447,361 | 695,159 |
Depreciation | 3,921 | 3,921 |
Share Based expense | 0 | 2,540,000 |
Change in Accounts Payable and Accrued Expenses | 116,632 | 54,400 |
Change in Related Party Advances | 4,874 | 22,607 |
Change in Derivative and Note Discount | 110,209 | 420,485 |
Net Cash Used by Operating Activities | (173,428) | (149,200) |
INVESTING ACTIVITIES: | ||
Purchase of Equipment | (18,891) | (5,364) |
Purchase of Land | 0 | (100,000) |
Sale of land | 90,000 | |
Net cash used by investing activities | 71,109 | (105,364) |
Payments on notes payable | (45,000) | |
Proceeds from notes payable | 118,500 | 340,000 |
Net cash provided by financing activities | 118,500 | 295,000 |
NET INCREASE (DECREASE) IN CASH | 16,181 | 40,436 |
Cash and Cash Equivalents at Beginning of Period | 15,948 | 14,975 |
Cash and Cash Equivalents at End of Period | $ 32,129 | $ 55,411 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Notes | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES HISTORY Auscrete Corporation ("the Company") was formed as an enterprise to take advantage of technologies developed for the construction of affordable, thermally efficient and structurally superior housing. This "GREEN" product is the culmination of design and development since the early 1980's. The company's Registration Statement outlines the result of the amalgamation of various material development stages, taking an idea to a product and further developing that product to address an ongoing problem in the world's largest marketplace, the quest for affordable, efficient and enduring housing. Auscrete's structures are monetarily highly competitive. A turnkey house, ready to move in sells for around $100-110 per square foot. That is very low in today's market but is brought about by Auscrete's ability to manufacture large panels in mass production format. The house is virtually "fastened" together on site to produce an attractive site-built home, a home that will stay where it is put through all kinds of adverse weather and age conditions. It will not burn, is not affected by bugs, termites or rot, it saves extensively on energy costs and has very low maintenance needs. The summary of significant accounting policies of Auscrete Corporation is presented to assist in the understanding of the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. The Company follows the accounting guidance outlined in the Financial Accounting Standards Board Codification guidelines. The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted principles for interim financial information and with the instruction to Form 10-Q of Regulation S-K. They may not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2018 included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission. The interim unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, which unless otherwise disclosed herein, consisting primarily of normal recurring adjustments, have been made. Operating results for the nine Months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 INCOME TAXES Federal Income taxes are not currently due since we have had losses since inception. On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the Tax Act) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (Federal Tax Rate) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the nine Months ended September 30, 2019 using a Federal Tax Rate of 21%. Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes Recognition. Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. The Company has no uncertain tax positions or related interest or penalties requiring Accrual at September 30, 2019 and 2018. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist primarily of cash in banks and highly liquid investments with original maturities of 90 days or less. There were $32,129 cash equivalents as of September 30, 2019 and $15,948 as of December 31, 2018. Fair Value Measurements The Company adopted guidance which defines fair value, establishes a framework for using fair value to measure financial assets and liabilities on a recurring basis, and expands disclosures about fair value measurements. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent sources. Unobservable inputs are inputs that reflect the Companys assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1 - Valuation is based upon unadjusted quoted market prices for identical assets or liabilities in accessible active markets. Level 2 - Valuation is based upon quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable in the market. Level 3 - Valuation is based on models where significant inputs are not observable. The unobservable inputs reflect a companys own assumptions about the inputs that market participants would use. The Companys financial instruments consist of cash, prepaid expenses, inventory, accounts payable, convertible notes payable, advances from related parties, and derivative liabilities. The estimated fair value of cash, prepaid expenses, investments, accounts payable, convertible notes payable and advances from related parties approximate their carrying amounts due to the short-term nature of these instruments. The Companys derivative liabilities have been valued as Level 3 instruments. Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability December 31, 2018 $ $ $ 372,151 $ 372,151 Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability September 30, 2019 $ $ $ 331,252 $ 331,252 The following table provides a summary of changes in fair value of the Companys Level 3 financial liabilities as of September 30, 2019 Derivative Liability Balance, December 31, 2018 $ 372,151 Additions recognized at note inception $ 515,514 Conversion $ (578447) Mark-to-market at September 30, 2019 $ 21,634 Balance, September 30, 2019 $ 331,252 REVENUE RECOGNITION POLICY The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), · · · · · COST OF SALES Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our products. Such costs are recorded as incurred. Our cost of sales will consist primarily of the cost of product; labor, selling costs and the cost of G&A expenses. PROPERTY AND EQUIPMENT Property and Equipment was stated at historical cost less Accumulated depreciation and amortization. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Depreciation is provided on a straight-line basis over the assets' estimated useful lives. The useful lives of the assets are as follows: equipment 7-years, vehicles 7-years, and buildings 30-years. Additions and improvements are capitalized while routine repairs and maintenance are charged to expense as incurred. Upon sale or disposition, the historically recorded asset cost and Accumulated depreciation are removed from the Accounts and the net amount less proceeds from disposal is charged or credited to other income or expense. IMPAIRMENT OF LONG-LIVED ASSETS We evaluate long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate their net book value may not be recoverable. When these events occur, we compare the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. There can be no assurance, however, that market conditions will not change or demand for the Company's products will continue. Either of these could result in the future impairment of long-lived assets. Estimates of fair value are determined through various techniques, including discounted cash flow models and market approaches, as considered necessary. LOSS PER COMMON SHARE Basic loss per common share is computed based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share consists of the weighted average number of common shares outstanding plus the dilutive effects of options and warrants calculated using the treasury stock method. In loss periods, dilutive common equivalent shares are excluded as the effect would be anti-dilutive. The Company issued 4,387,625 as a result of conversion of notes as of September 30, 2019. Fully diluted weighted average common shares and equivalents were withheld from the calculation as they were considered anti-dilutive. RECLASSIFICATION Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported income, total assets, or stockholders equity as previously reported. USE OF ESTIMATES The preparation of the 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. EMERGING GROWTH COMPANY The Company qualifies as an Emerging Growth Company, thus takes advantage of the 1-year deferral period for the adoption of all new accounting standards updates. NOTE 2 - GOING CONCERN AND PLAN OF OPERATION The Company's financial statements have been presented on the basis that it will continue as a going concern. The Company has not generated revenues from construction related operations to date. The Company has an Accumulated deficit of $7,570,140 as of September 30, 2019 which raises substantial doubt about the Companys ability to continue as a going concern. The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements. No assurance can be given that additional financing will be available when needed or that such financing will be available on terms Acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty. Recent Accounting Pronouncements In December 2018, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities - FASB ASU 2016-01 Summary - The amendments in ASU 2016-01, among other things. The Company has no expectation that any of these items will have a material effect upon the financial statements. · Update 2019-04 Codification Improvements to Topic 326, Financial InstrumentsCredit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Update 2019-01Leases (Topic 842): Codification Improvements Update 2018-17Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities Update 2018-13 Update 2018-08 Update 2018-05 Update 2018-04 Update 2018-03 Update 2018-01 Update 2018-07 CompensationStock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
Related Party Transactions Disc
Related Party Transactions Disclosure | 9 Months Ended |
Sep. 30, 2019 | |
Notes | |
Related Party Transactions Disclosure | NOTE 4 -RELATED PARTY TRANSACTIONS As of, September 30, 2019 and December 31, 2018, the balance owed to Company CEO, John Sprovieri was $5,953 and $1,079 respectively. |
Property, Plant and Equipment D
Property, Plant and Equipment Disclosure | 9 Months Ended |
Sep. 30, 2019 | |
Notes | |
Property, Plant and Equipment Disclosure | NOTE 5 - PROPERTY, INVENTORY AND EQUIPMENT During July, the Company sold their Industrial Property they had bought from the city of Goldendale in February 2018. The original purchase price was $100,000 for the 5 acre lot. The Company sold the land back to the City under the original contract for a discounted price of $90,000. Notes to Inventory Type and Value: Inventory consists of Finished Product and Raw Materials that are valued at the lower of cost or market. Finished product of $44,900 is a full set of insulated ACH cast panels for wall and roof of an approx. 1,600 sq. ft house. Panel cost is actual size of all panels in sq. ft. of just under 7,000 sq. ft. calculated as follows. Material Cost per sq. ft. Cement 2.42 XPS Insulation 0.98 Surfactant 0.32 Rebar Steel 1.02 Labor 1.78 TOTAL COST PER SQ. FT. $ 6.52 |
Inventory Disclosure
Inventory Disclosure | 9 Months Ended |
Sep. 30, 2019 | |
Notes | |
Inventory Disclosure | Raw Materials: Raw materials consist of rebar, insulation, surfactant, powdered cement, threaded inserts and sundry items. The cost of $2,100 is based on the cost of purchase from a non-related supplier. Property and Equipment at September 30, 2019 were comprised of the following at: September 30, 2019 December 31, 2018 Property Plant and Equipment (Gross) $ 63,336 $ 139,881 Accumulated Depreciation (25,569) (17,846) Property, Plant and Equipment (net) $ 37,767 $ 122,035 During the quarter, the Company purchased $18,891 in manufacturing equipment so there was an increase to $63,336 in Gross equipment. The Depreciation expense was $1,307 for the three months ended September 30, 2019. And $3,921 for the nine months ended September 30, 2019 and 2018.The increase in property plant and equipment was offset by the sale of land for $100,000. |
Stockholders' Equity Note Discl
Stockholders' Equity Note Disclosure | 9 Months Ended |
Sep. 30, 2019 | |
Notes | |
Stockholders' Equity Note Disclosure | NOTE 6 - COMMON STOCK Common Stock: On July 6, 2017 the Company increased its Authorized Capital to 20,000,000,000 common shares at $0.0001 par value. During July 2018 the company performed a reverse split in the ratio of 1 for 1,000. There were 286,387 shares issued and outstanding as of December 31, 2018. During the June 30, 2019 Qtr. the Company issued 77,667 shares for note conversions for a reduction of principle of $35,265. During the Period July 1, 2019 to September 30, 2019, the company issued 4,387,625 shares for note conversions. Total shares issue for the period January 1, 2019 to September 30, 2019 was 4,493,585. Subsequently in November of 2019, Auscretes Board approved a one for two hundred for one (200 to 1) reverse split during third quarter. The adjustment only affects the number of shares per shareholder, equity per shareholder remains the same. This modification should make for a quicker move back to the OTCQB opening the Company up to a larger audience and enhance shareholder values. All share references herein have been adjusted to reflect the reverse split. As a result, $95,116 was reclassified from common stock to additional paid in capital. |
Income Tax Disclosure
Income Tax Disclosure | 9 Months Ended |
Sep. 30, 2019 | |
Notes | |
Income Tax Disclosure | NOTE 7 - INCOME TAXES Federal Income taxes are not currently due since we have had losses since inception. On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the Tax Act) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (Federal Tax Rate) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the nine months ended September 30, 2018 using a Federal Tax Rate of 21%. Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes Recognition. Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. As of September 30, 2019, we had a net operating loss carry-forward of approximately $(7,570,140) and a deferred tax asset of approximately $1,589,729 using the statutory rate of 21%. The deferred tax asset may be recognized in future periods, not to exceed 20 years. However, due to the uncertainty of future events we have booked valuation allowance of $(1,589,729). FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At September 30, 2019, the Company had not taken any tax positions that would require disclosure under FASB ASC 740. September 30, 2019 December 31, 2018 Deferred Tax Asset $1,589,729 $ 1,408,714 Valuation Allowance (1,589,729) (1,408,714) Deferred Tax Asset (Net) $ - $ - . The Company is subject to tax in the U.S. federal and Washington jurisdictions. These filings are subject to a three-year statute of limitations unless the returns have not been filed at which point the statute of limitations becomes indefinite. No filings are currently under examination. No adjustments have been made to reduce the estimated income tax benefit at year end. Any valuations relating to these income tax provisions will comply with U.S. generally Accepted Accounting principles. |
Debt Disclosure
Debt Disclosure | 9 Months Ended |
Sep. 30, 2019 | |
Notes | |
Debt Disclosure | Note 8 Notes Payable and Derivative Liabilities On January 28, 2019 we entered into a one year convertible promissory note in the amount of $38,000 with and interest rate of 12% and a conversion rate of 55% of the lowest prior 20 days trading period. On May 28, 2019 we entered into a one year convertible promissory note in the amount of $27,500 with and interest rate of 12% and a conversion rate of 55% of the lowest prior 25 days trading period. On May 1, 2019 we entered into a one year convertible promissory note in the amount of $13,000 with and interest rate of 12% and a conversion rate of 55% of the lowest prior 25 days trading period. During the Period July 1, 2019 to September 30, 2019, the company issued 1 12 month Convertible Note for the sum of $40,000 to LG Capital on 8/28/19 for $40,000 at 8%. Convertible at 60% of lowest of the prior 20 days trading period As a result of the convertible notes we recognized the embedded derivative liability on the date that the note was convertible. We also revalued the remaining derivative liability on the outstanding note balance on the date of the balance sheet. The inputs used were a weighted volatility of 290% and a risk free discount rate of 2.44% The remaining derivative liabilities valued using the level 3 inputs in the fair value hierarchy were: September 30, 2019 December 31, 2018 Derivative Liabilities on Convertible Loans: Outstanding Balance $ 331,252 $ 372,151 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Notes | |
Subsequent Events | NOTE 9 SUBSEQUENT EVENTS Subsequent to September 30, 2019 through the date of this filing we issued 6,968,083 shares of common stock for note conversions. November 2019 the company performed a reverse split in the ratio of 1 for 200. All stock references are stated to reflect the reverse split. All share references herein have been adjusted to reflect the reverse split. As a result, $95,116 was reclassified from common stock to additional paid in capital. In accordance with ASC 855, the Company has analyzed its operations subsequent to September 30, 2019 through the date these financial statements were issued, and has determined that it does not have any other material subsequent events to disclose in these financial statements. Page 26 of 42 |
Organization, Consolidation a_2
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Basis of Accounting, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Basis of Accounting, Policy | Auscrete Corporation ("the Company") was formed as an enterprise to take advantage of technologies developed for the construction of affordable, thermally efficient and structurally superior housing. This "GREEN" product is the culmination of design and development since the early 1980's. The company's Registration Statement outlines the result of the amalgamation of various material development stages, taking an idea to a product and further developing that product to address an ongoing problem in the world's largest marketplace, the quest for affordable, efficient and enduring housing. Auscrete's structures are monetarily highly competitive. A turnkey house, ready to move in sells for around $100-110 per square foot. That is very low in today's market but is brought about by Auscrete's ability to manufacture large panels in mass production format. The house is virtually "fastened" together on site to produce an attractive site-built home, a home that will stay where it is put through all kinds of adverse weather and age conditions. It will not burn, is not affected by bugs, termites or rot, it saves extensively on energy costs and has very low maintenance needs. The summary of significant accounting policies of Auscrete Corporation is presented to assist in the understanding of the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. The Company follows the accounting guidance outlined in the Financial Accounting Standards Board Codification guidelines. The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted principles for interim financial information and with the instruction to Form 10-Q of Regulation S-K. They may not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2018 included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission. The interim unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, which unless otherwise disclosed herein, consisting primarily of normal recurring adjustments, have been made. Operating results for the nine Months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 |
Organization, Consolidation a_3
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Income Tax, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Income Tax, Policy | INCOME TAXES Federal Income taxes are not currently due since we have had losses since inception. On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the Tax Act) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (Federal Tax Rate) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the nine Months ended September 30, 2019 using a Federal Tax Rate of 21%. Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes Recognition. Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. The Company has no uncertain tax positions or related interest or penalties requiring Accrual at September 30, 2019 and 2018. |
Organization, Consolidation a_4
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Cash and Cash Equivalents, Policy | CASH AND CASH EQUIVALENTS Cash and cash equivalents consist primarily of cash in banks and highly liquid investments with original maturities of 90 days or less. There were $32,129 cash equivalents as of September 30, 2019 and $15,948 as of December 31, 2018. |
Organization, Consolidation a_5
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Fair Value Measurement, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Fair Value Measurement, Policy | Fair Value Measurements The Company adopted guidance which defines fair value, establishes a framework for using fair value to measure financial assets and liabilities on a recurring basis, and expands disclosures about fair value measurements. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent sources. Unobservable inputs are inputs that reflect the Companys assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1 - Valuation is based upon unadjusted quoted market prices for identical assets or liabilities in accessible active markets. Level 2 - Valuation is based upon quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable in the market. Level 3 - Valuation is based on models where significant inputs are not observable. The unobservable inputs reflect a companys own assumptions about the inputs that market participants would use. The Companys financial instruments consist of cash, prepaid expenses, inventory, accounts payable, convertible notes payable, advances from related parties, and derivative liabilities. The estimated fair value of cash, prepaid expenses, investments, accounts payable, convertible notes payable and advances from related parties approximate their carrying amounts due to the short-term nature of these instruments. The Companys derivative liabilities have been valued as Level 3 instruments. Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability December 31, 2018 $ $ $ 372,151 $ 372,151 Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability September 30, 2019 $ $ $ 331,252 $ 331,252 The following table provides a summary of changes in fair value of the Companys Level 3 financial liabilities as of September 30, 2019 Derivative Liability Balance, December 31, 2018 $ 372,151 Additions recognized at note inception $ 515,514 Conversion $ (578447) Mark-to-market at September 30, 2019 $ 21,634 Balance, September 30, 2019 $ 331,252 |
Organization, Consolidation a_6
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Revenue from Contract with Customer (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Revenue from Contract with Customer | REVENUE RECOGNITION POLICY The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), · · · · · COST OF SALES Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our products. Such costs are recorded as incurred. Our cost of sales will consist primarily of the cost of product; labor, selling costs and the cost of G&A expenses. |
Organization, Consolidation a_7
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Property, Plant and Equipment, Policy | PROPERTY AND EQUIPMENT Property and Equipment was stated at historical cost less Accumulated depreciation and amortization. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Depreciation is provided on a straight-line basis over the assets' estimated useful lives. The useful lives of the assets are as follows: equipment 7-years, vehicles 7-years, and buildings 30-years. Additions and improvements are capitalized while routine repairs and maintenance are charged to expense as incurred. Upon sale or disposition, the historically recorded asset cost and Accumulated depreciation are removed from the Accounts and the net amount less proceeds from disposal is charged or credited to other income or expense. |
Organization, Consolidation a_8
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Impairment or Disposal of Long-Lived Assets, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Impairment or Disposal of Long-Lived Assets, Policy | IMPAIRMENT OF LONG-LIVED ASSETS We evaluate long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate their net book value may not be recoverable. When these events occur, we compare the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. There can be no assurance, however, that market conditions will not change or demand for the Company's products will continue. Either of these could result in the future impairment of long-lived assets. Estimates of fair value are determined through various techniques, including discounted cash flow models and market approaches, as considered necessary. |
Organization, Consolidation a_9
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Earnings Per Share, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Earnings Per Share, Policy | LOSS PER COMMON SHARE Basic loss per common share is computed based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share consists of the weighted average number of common shares outstanding plus the dilutive effects of options and warrants calculated using the treasury stock method. In loss periods, dilutive common equivalent shares are excluded as the effect would be anti-dilutive. The Company issued 4,387,625 as a result of conversion of notes as of September 30, 2019. Fully diluted weighted average common shares and equivalents were withheld from the calculation as they were considered anti-dilutive. |
Organization, Consolidation _10
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Reclassification, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Reclassification, Policy | RECLASSIFICATION Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported income, total assets, or stockholders equity as previously reported. |
Organization, Consolidation _11
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Use of Estimates, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Use of Estimates, Policy | USE OF ESTIMATES The preparation of the 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. |
Organization, Consolidation _12
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Substantial Doubt about Going Concern (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
Substantial Doubt about Going Concern | NOTE 2 - GOING CONCERN AND PLAN OF OPERATION The Company's financial statements have been presented on the basis that it will continue as a going concern. The Company has not generated revenues from construction related operations to date. The Company has an Accumulated deficit of $7,570,140 as of September 30, 2019 which raises substantial doubt about the Companys ability to continue as a going concern. The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements. No assurance can be given that additional financing will be available when needed or that such financing will be available on terms Acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty. |
Organization, Consolidation _13
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policies | |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements In December 2018, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities - FASB ASU 2016-01 Summary - The amendments in ASU 2016-01, among other things. The Company has no expectation that any of these items will have a material effect upon the financial statements. · Update 2019-04 Codification Improvements to Topic 326, Financial InstrumentsCredit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Update 2019-01Leases (Topic 842): Codification Improvements Update 2018-17Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities Update 2018-13 Update 2018-08 Update 2018-05 Update 2018-04 Update 2018-03 Update 2018-01 Update 2018-07 CompensationStock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
Income Tax Disclosure_ Schedule
Income Tax Disclosure: Schedule of Deferred Tax Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | September 30, 2019 December 31, 2018 Deferred Tax Asset $1,589,729 $ 1,408,714 Valuation Allowance (1,589,729) (1,408,714) Deferred Tax Asset (Net) $ - $ - . |
Debt Disclosure_ Derivative Lia
Debt Disclosure: Derivative Liability (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Derivative Liability | September 30, 2019 December 31, 2018 Derivative Liabilities on Convertible Loans: Outstanding Balance $ 331,252 $ 372,151 |
Income Tax Disclosure_ Schedu_2
Income Tax Disclosure: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Details | ||
Deferred Tax Asset | $ 1,589,729 | $ 1,408,714 |
Valuation Allowance | (1,589,729) | (1,408,714) |
Deferred Tax Asset (Net) | $ 0 | $ 0 |
Debt Disclosure_ Derivative L_2
Debt Disclosure: Derivative Liability (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Details | ||
Outstanding Balance | $ 331,252 | $ 372,151 |