Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 08, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | GREENESTONE HEALTHCARE CORP | |
Entity Central Index Key | 792,935 | |
Document Type | 10-Q/A | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | true | |
Amendment Description | This amendment is being filed to comply with regulations. | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 48,738,855 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash | $ 49,037 | $ 174 |
Accounts receivable, net | 237,409 | 183,582 |
Prepaid expenses | 101,302 | 15,489 |
Deposit on real estate | 207,158 | |
Related party Receivables | 15,863 | |
Total current assets | 610,769 | 199,245 |
Non-current assets | ||
Cash - Restricted | 76,870 | 72,250 |
Deposits | 8,217 | |
Fixed assets, net | 163,437 | 193,131 |
Total non-current assets | 240,307 | 273,598 |
Total assets | 851,076 | 472,843 |
Current liabilities | ||
Bank overdraft | 31,635 | 15,801 |
Accounts payable and accrued liabilities | 306,530 | 606,274 |
Taxes payable | 2,722,094 | 2,490,506 |
Deferred revenue | 179,193 | 181,075 |
Current portion of loan payable | 7,273 | 6,684 |
Short Term loan | 167,121 | 21,675 |
Related party payables | 443,631 | 274,496 |
Total current liabilities | 3,857,477 | 3,596,511 |
Non-current liabilities | ||
Loan payable | 5,673 | 8,788 |
Total liabilities | 3,863,150 | 3,605,299 |
Stockholders' deficit | ||
Preferred stock - Series A; $0.01 par value, 3,000,000 authorized, nil outstanding as of June 30, 201t6 and December 31, 2015. | ||
Preferred Stock - Series B; $0.01 par value, 10,000,000 authorized, nil outstanding as of June 30, 2016 and December 31 2015. | ||
Common stock; $0.01 par value, 500,000,000 shares authorized; 48,738,855 and 47,738,855 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively. | 487,389 | 477,389 |
Additional paid-in capital | 16,290,778 | 16,177,534 |
Accumulated other comprehensive income | 718,550 | 933,826 |
Accumulated deficit | (20,508,791) | (20,721,205) |
Total stockholders' deficit | (3,012,074) | (3,132,456) |
Total liabilities and stockholders' deficit | $ 851,076 | $ 472,843 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common Stock Par Value | $ 0.01 | $ 0.01 |
Common Stock Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock Shares Issued | 48,738,855 | 47,738,855 |
Common Stock Shares Outstanding | 48,738,855 | 47,738,855 |
Preferred Stock, Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Series A Shares Authorized | 3,000,000 | 3,000,000 |
Preferred Stock, Series A Shares Issued | 0 | 0 |
Preferred Stock, Series A Shares Outstanding | 0 | 0 |
Preferred Stock, Series B Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Series B Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Series B Shares Issued | 0 | 0 |
Preferred Stock, Series B Shares Outstanding | 0 | 0 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,024,384 | $ 947,934 | $ 1,847,222 | $ 1,628,646 |
Operating expenses | ||||
Depreciation | 15,412 | 26,446 | 30,746 | 47,440 |
General and administrative | 243,981 | 120,702 | 407,100 | 418,903 |
Management fees | 46,577 | 48,337 | 46,577 | 96,705 |
Professional fees | 53,545 | 73,983 | 81,189 | 157,994 |
Rent | 105,721 | 90,637 | 180,112 | 179,392 |
Salaries and wages | 438,464 | 469,234 | 832,981 | 913,705 |
Total operating expenses | 903,700 | 829,339 | 1,578,705 | 1,814,139 |
Operating income (loss) | 120,684 | 118,595 | 268,517 | (185,493) |
Other income (loss) | ||||
Other income | 33,549 | 33,549 | ||
Interest expense | (45,658) | (39,401) | (83,846) | (90,942) |
Debt discount | (33,262) | (33,262) | ||
Foreign exchange movements | (6,394) | (72,419) | 27,455 | (72,419) |
Net income (loss) before taxation | 68,920 | 6,775 | 212,414 | (348,854) |
Taxation | ||||
Net income (loss) | 68,920 | 6,775 | 212,414 | (348,854) |
Accumulated other comprehensive (loss) income | ||||
Foreign currency translation adjustment | 7,789 | 15,709 | (215,276) | 330,887 |
Total comprehensive income (loss) | $ 76,709 | $ 22,484 | $ (2,862) | $ (17,967) |
Basic Income (loss) per common share | $ 0 | $ 0 | $ 0 | $ (0.01) |
Diluted Income (loss) per common share | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted average common shares outstanding - Basic | 47,991,602 | 47,389,404 | 47,865,229 | 46,938,730 |
Weighted average common shares outstanding - Diluted | 49,192,552 | 47,389,404 | 49,066,179 | 46,938,730 |
Shareholders Equity
Shareholders Equity - 6 months ended Jun. 30, 2016 - USD ($) | Common Stock | Additional Paid-In Capital | Comprehensive Income / Loss | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2015 | 47,738,855 | ||||
Beginning Balance, Amount at Dec. 31, 2015 | $ 477,389 | $ 16,177,534 | $ 933,826 | $ (20,721,205) | $ (3,132,456) |
Foreign currency translation | (215,276) | (215,276) | |||
Stock issued for services, Shares | 1,000,000 | ||||
Stock issued for services Amount | $ 10,000 | 40,000 | 50,000 | ||
Fair value of warrants issued | 73,244 | 73,244 | |||
Net income (loss) | 212,414 | 212,414 | |||
Ending Balance, Shares at Jun. 30, 2016 | 48,738,855 | ||||
Ending Balance, Amount at Jun. 30, 2016 | $ 487,389 | $ 16,290,778 | $ 718,550 | $ (20,508,791) | $ (3,012,074) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Net Income (loss) | $ 212,414 | $ (348,854) |
Adjustment to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation | 30,746 | 47,440 |
Non cash debt discount movements | 33,262 | |
Stock issued for services | 50,000 | 56,906 |
Other foreign currency movements | (979) | 10,803 |
Non cash movement in deposits | 8,217 | |
Amortization of beneficial conversion feature | 12,709 | |
Changes in operating assets and liabilities | ||
Accounts receivable | (53,827) | 88,050 |
Prepaid expenses | (85,813) | 12,184 |
Accounts payable and accrued liabilities | (292,787) | (269,867) |
Taxes payable | 231,588 | (12,093) |
Deferred revenue | (1,882) | 17,719 |
Net cash (used in) provided by operating activities | 130,939 | (385,003) |
Investing activities | ||
Purchase of fixed assets | (1,053) | (13,406) |
Investment in deposits | (207,158) | |
Net cash used in Investing activities | (208,211) | (13,406) |
Financing activities | ||
Increase in bank overdraft | 15,834 | 10,282 |
Repayment of loan payable | (3,443) | (5,358) |
Proceeds from short-term notes | 283,386 | |
Repayment of short-term notes | (107,639) | (34,350) |
Proceeds from related party notes | 153,273 | 9,488 |
Net cash provided by (used in) financing activities | 341,411 | (19,938) |
Effect of exchange rate on cash | (215,276) | 330,887 |
Net change in cash | 48,863 | (87,460) |
Beginning cash balance | 174 | 88,152 |
Ending cash balance | 49,037 | 692 |
Supplemental cash flow information | ||
Cash paid for interest | 7,548 | 7,511 |
Cash paid for income taxes | ||
Non-cash Investing and Financing activities | ||
Common stock issued on conversion of convertible notes | $ 8,117 |
1. Nature of Business
1. Nature of Business | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. Nature of Business | 1. Nature of Business GreeneStone Healthcare Corporation (the Company) was incorporated under the laws of the state of Colorado, USA, on April 1, 1993. Effective May 2012, the Company changed its corporate name to GreeneStone Healthcare Corporation from Nova Natural Resources Corporation. As at June 30, 2016, the Company owns 100% of the outstanding shares of Greenstone Clinic Muskoka Inc., which was incorporated in 2010 under the laws of the Province of Ontario, Canada. Greenstone Clinic Muskoka Inc. provides medical services to various patients in clinics located in the regional municipality of Muskoka, Ontario, Canada. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim consolidated financial information and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. All adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included in these unaudited condensed consolidated financial statements. Operating results for the three and six month period presented are not necessarily indicative of the results that may be expected for any other interim period or for the full year. The balance sheet at December 31, 2015 has been derived from audited consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto for the year ended December 31, 2015. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
2. Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies a) Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. b) Principals of consolidation and foreign currency translation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiary. All inter company transactions and balances have been eliminated on consolidation. The Companys subsidiarys functional currency is the Canadian dollar, while the Companys reporting currency is the U.S. dollar. All transactions initiated in Canadian dollars are translated into US dollars in accordance with ASC 830, Foreign Currency Translation" as follows: Monetary assets and liabilities at the rate of exchange in effect at the balance sheet date. Equity at historical rates. Revenue and expense items at the average rate of exchange prevailing during the period. Adjustments arising from such translations are deferred until realization and are included as a separate component of stockholders deficit as a component of accumulated other comprehensive income or loss. Therefore, translation adjustments are not included in determining net income (loss) but reported as other comprehensive income (loss). For foreign currency transactions, the Company translates these amounts to the Companys functional currency at the exchange rate effective on the invoice date. If the exchange rate changes between the time of purchase and the time actual payment is made, a foreign exchange transaction gain or loss results which is included in determining net income for the period. The relevant translation rates are as follows: For the six months ended June 30, 2016; a closing rate of CAD$1.0000 equals US$0.7687 and an average exchange rate of CAD$1.0000 equals US$0.7530. c) Revenue Recognition The Company recognizes revenue from the rendering of services when they are earned; specifically, when all of the following conditions are met: the significant risks and rewards of ownership are transferred to customers and the Company retains neither continuing involvement nor effective control; there is clear evidence that an arrangement exists; the amount of revenue and related costs can be measured reliably; and it is probable that the economic benefits associated with the transaction will flow to the Company. In particular, the Company recognizes: Fees for outpatient counselling, coaching, intervention, psychological assessments and other related services when patients receive the service; and Fees for inpatient addiction treatments proportionately over the term of the patients treatment. Deferred revenue represents monies deposited by the patients for future services to be provided by the Company. Such monies will be recognized into revenue as the patient progresses through their treatment term. d) Cash and cash equivalents The Company's policy is to disclose bank balances under cash, including bank overdrafts with balances that fluctuate frequently from being positive to overdrawn and term deposits with a maturity period of three months or less from the date of acquisition. The Company has $76,870 (CAD$100,000) in restricted cash held by their bank to cover against the possibility of credit card charge backs, for services not performed. e) Recent accounting pronouncements In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, which amends the guidance in U.S. GAAP on accounting for operating leases, a lessee will be required to recognize assets and liabilities for operating leases with lease terms of more than 12 months on the balance sheet. The new standard is effective for fiscal years and interim periods beginning after December 15, 2018., and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) ASU 2016 09 Improvements to Employee Share-Based Payment Accounting which is intended to improve the accounting for employee share-based payments. The ASU simplifies several aspects of the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The new standard is effective for fiscal years and interim periods beginning after December 15, 2016., and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. In April 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) ASU 2016 10 Revenue from Contract with Customers: identifying Performance Obligations and Licensing. The amendments in this Update clarify the two following aspects (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entitys promise to grant a license provides a customer with either a right to use the entitys intellectual property (which is satisfied at a point in time) or a right to access the entitys intellectual property (which is satisfied over time). The amendments in this Update are intended to reduce the degree of judgement necessary to comply with Topic 606. This guidance has no effective date as yet. The Company is currently evaluating the impact of adopting this guidance. Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. f) Financial instruments The Company is exposed to various risks through its financial instruments. The following analysis provides a measure of the Companys risk exposure and concentrations at the balance sheet date, June 30, 2016 and December 31, 2015. i. Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Financial instruments that subject the Company to credit risk consist primarily of accounts receivable. Credit risk associated with accounts receivable of Greenestone Clinic Muskoka Inc. is mitigated due to balances from many customers, as well as through credit checks and frequent reviews of receivables to ensure timely collection. In addition, there is no concentration risk with the Greenestone Clinic Muskoka Inc. accounts receivable balance since balances are due from many customers. In the opinion of management, credit risk with respect to accounts receivable is assessed as low, not material and remains unchanged from the prior year. ii. Liquidity risk Liquidity risk is the risk the Company will not be able to meet its financial obligations as they fall due. The Company is exposed to liquidity risk through its working capital deficiency of $(3,246,708) and accumulated deficit of $(20,508,791). As disclosed in note 3, the Company will be dependent upon the raising of additional capital in order to implement its business plan. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Companys financial condition. In the opinion of management, liquidity risk is assessed as high, material and remains unchanged from the prior year. iii. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risk: interest rate risk, currency risk, and other price risk. The Company is exposed to interest rate risk and currency risk. iv. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to minimal interest rate risk on its bank indebtedness as there is a balance of $31,635 at June 30, 2016. This liability is based on floating rates of interest that have been stable during the current reporting period. In the opinion of management, interest rate risk is assessed as low, not material and remains unchanged from the prior year. v. Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is subject to currency risk as its subsidiaries operate in Canada and are subject to fluctuations in the Canadian dollar. Most of the Companys financial assets and liabilities are denominated in Canadian dollars. Based on the net exposures at June 30, 2016, a 5% depreciation or appreciation of the Canadian dollar against the U.S. dollar would result in an approximate $15,754 increase or decrease in the Companys after-tax net income from continuing operation. The Company has not entered into any hedging agreements to mediate this risk. In the opinion of management, currency risk is assessed as low, material and remains unchanged from the prior year. vi. Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. In the opinion of management, the Company is not exposed to this risk and remains unchanged from the prior year. |
3. Going concern
3. Going concern | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
3. Going concern | 3. Going Concern The Companys unaudited condensed consolidated financial statements have been prepared in accordance with US GAAP applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations in the normal course of business. As at June 30, 2016 the Company has a working capital deficiency of $(3,246,708) and accumulated deficit of $(20,508,791). Management believes that current available resources will not be sufficient to fund the Companys planned expenditures, including past due payroll and sales tax payments, as well as estimated penalties and interest, over the next 12 months. Accordingly, the Company will be dependent upon the raising of additional capital through placement of common shares, and, or debt financing in order to implement its business plan, and, or generating sufficient revenue in excess of costs. If the Company raises additional capital through the issuance of equity securities or securities convertible into equity, stockholders will experience dilution, and such securities may have rights, preferences or privileges senior to those of the holders of common stock or convertible senior notes. If the Company raises additional funds by issuing debt, the Company may be subject to limitations on its operations, through debt covenants or other restrictions. If the Company obtains additional funds through arrangements with collaborators or strategic partners, the Company may be required to relinquish its rights to certain geographical areas, or techniques that it might otherwise seek to retain. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Companys financial condition. These unaudited condensed consolidated financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue operations. The ability of the Company to continue as a going concern is dependent on the Company generating cash from the sale of its common stock or obtaining debt financing and attaining future profitable operations. Management's plans include selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts. |
4. Due from sale of Subsidiary
4. Due from sale of Subsidiary | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
4. Due from sale of Subsidiary | 4. Due from sale of subsidiary A net amount of CAD$617,960 is due to the Company on the sale of the Endoscopy Clinic in December 2014. This debt is in the form of an interest bearing note with a coupon of 5% per annum. The note was originally due on June 30, 2015 which was recently extended to December 31, 2015. The amount outstanding of CAD$617,960 was revalued at US$475,026 as of June 30, 2016 and US$446,476 as of December 31, 2015. Management evaluated this receivable as of December 31, 2015 and a provision for the full value of the note was raised as of June 30, 2016 and December 31, 2015. |
5. Plant and equipment
5. Plant and equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
5. Plant and equipment | 5. Plant and equipment Plant and equipment consists of the following: Cost Accumulated depreciation Net book value June 30, 2016 Net book value December 31, 2015 Unaudited Computer equipment $ 21,278 $ 16,225 $ 5,053 $ 5,945 Computer software 9,848 7,386 2,462 4,924 Furniture and equipment 353,431 272,005 81,426 94,651 Leasehold improvement 142,793 87,219 55,574 65,382 Medical equipment 4,491 3,574 917 1,047 Vehicles 64,175 46,170 18,005 21,182 $ 596,016 $ 432,579 $ 163,437 $ 193,131 Depreciation expense for the three months ended June 30, 2016 and 2015 was $15,412 and $26,446 and for the six months ended June 30, 2016 and 2015 was $30,746 and $47,440, respectively. |
6. Loans payable
6. Loans payable | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
6. Loans payable | 6. Loans payable The Company has an automobile loan payable bearing interest at 4.49% with blended monthly payments of $835 that matures in March 2018. The loan is secured by the vehicle with a net book value as at June 30, 2016 of $13,715. June 30, 2016 December 31, 2015 Unaudited Automobile loan Current portion $ 7,273 $ 6,684 Long-term portion 5,673 8,788 $ 12,946 $ 15,472 Estimated principal payments are as follows: Amount Within 1 year 7,273 1 to 2 years $ 5,673 $ 12,946 |
7. Short term notes
7. Short term notes | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
7. Short term notes | 7. Short term notes The Company entered into a Securities Purchase Agreement with JMJ Financial on April 13, 2016, in terms of the agreement the Company borrowed $200,000 in terms of an unsecured convertible promissory note with a maturity date of seven months from the closing date. The principal amount due under the promissory note is $220,000, inclusive of an Original Issue discount and a further 10% once-off interest charge of $20,000 is due in terms of this note. The note is only convertible upon a repayment default, at the lower of $0.03 per share of 60% of the lowest traded price over the preceding 25 day trading period. The Company also issued 3,703,700 warrants exercisable over common shares at $0.03 per share, which warrants contain a cashless exercise option, in terms of the financing arrangement. Short term notes consist of the following at June 30, 2016: Description Interest Maturity June 30, 2016 JMJ Financial Principal 10 % November 13, 2016 220,000 Accrued interest 7,103 Unamortized debt discount (59,982 ) 167,121 |
8. Related party Transactions
8. Related party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
8. Related party Transactions | 8. Related Party Transactions Greenstone Clinic Inc. As of December 31, 2015, the Company had a payable of $5,284. Greenstone Clinic Inc., is controlled by one of the Companys directors. The balance payable is noninterest bearing, not secured and has no specific repayment terms. The balance owing from Greenstone Clinic, Inc., on June 30, 2016 was offset against the amount owing to Shawn E. Leon. The Company incurred management fees from Greenstone Clinic, Inc., totaling $46,577 and $48,337 and $46,577 and $96,705 for the three months and six months ended June 30, 2016 and 2015, respectively. 1816191 Ontario As of June 30, 2016 and December 31, 2015, the Company had a receivable of $15,863 and a payable of $(22,305), respectively, to 1816191 Ontario, the Endoscopy Clinic, which was sold at the end of the prior year. The receivable and payable is noninterest bearing, and has no specific repayment terms. Shawn E. Leon As of June 30, 2016 and December 31, 2015 the Company had a payable of $135,006 and $159,551, respectively to Shawn E. Leon, a director and CEO of the Company. The balance payable is noninterest bearing and have no fixed repayment terms. The balance owing from Greenstone Clinic, Inc., on June 30, 2016 was offset against the amount owing to Shawn E. Leon. Cranberry Cove Holdings Ltd. The Company entered into an agreement to lease premises from Cranberry Cove Holdings Ltd. at market related terms. The Company had rental expense amounting to $105,721 and $168,469 and $180,112 and $179,392 for the three months and six months ended June 30, 2016 and 2015, respectively. Cranberry Cove Holdings Ltd. is related to the Company by virtue of its shareholder owning 1816191 Ontario. As of June 30, 2016 and December 31, 2015, the Company owed Cranberry Cove Holdings $308,625 (CAD $401,490) and $87,356 (CAD$120,908) in accrued rent and utility charges. All related party transactions occur in the normal course of operations and in terms of agreements entered into between the parties. |
9. Stockholders' deficit
9. Stockholders' deficit | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
9. Stockholders' deficit | 9. Stockholders deficit a) Common shares The Company issued 1,000,000 common shares valued at $50,000 to a third party in terms of an investor relations consulting agreement entered into on June 17, 2016. b) Warrants In terms of the short term loan entered into, as disclosed under note7 above, on April 13, 2016, the Company issued 3,703,700 five year warrants exercisable at $0.03 per share, these warrants have a cashless exercise option. The movement in warrants outstanding is summarized below: The movement in warrants outstanding is summarized below: Number of warrants outstanding Weighted average exercise price per share Outstanding at January 1, 2015 6,300,000 $ 0.143 Granted Cancelled/forfeited Exercised Outstanding at December 31, 2015 6,300,000 0.143 Granted 3,703,700 0.030 Cancelled/forfeited (4,500,000 ) 0.150 Exercised Outstanding at June 30, 2016 $ 5,503,700 $ 0.041 The following table summarizes information about warrants outstanding at June 30, 2016 Exercise Price Number of warrants Weighted average remaining life Weighted average exercise price $ 0.003 300,000 * $ 0.003 $ 0.030 3,703,700 4,79 0.030 $ 0.150 1,500,000 0.47 0.150 5,503,700 3.35 $ 0.041 * In terms of an agreement entered into with an investor relations company, 300,000 warrants were to be issued as part of the Investor Relations Agreement. These warrants have not been issued as yet, therefore the warrant terms are uncertain. As of June 30, 2016 the 5,503,700 warrants were all vested, there were no unrecognized compensation costs related to these warrants and the intrinsic value of the warrants as of June 30, 2016 is $48,038. c) Stock options Our board of directors adopted the GreeneStone Healthcare Corporation 2013 Stock Option Plan (the Plan) to promote our long-term growth and profitability by (i) providing our key directors, officers and employees with incentives to improve stockholder value and contribute to our growth and financial success and (ii) enable us to attract, retain and reward the best available persons for positions of substantial responsibility. A total of 10,000,000 shares of our common stock have been reserved for issuance upon exercise of options granted pursuant to the Plan. The Plan allows us to grant options to our employees, officers and directors and those of our subsidiaries; provided that only our employees and those of our subsidiaries may receive incentive stock options under the Plan. We have granted a total of 480,000 options as of June 30, 2016 under the Plan. No options were issued, exercised or cancelled for the period under review. The following table summarizes information about options outstanding at June 30, 2016. Exercise Price Number of options outstanding Number of options exercisable Weighted average remaining life Weighted average exercise price $0.12 480,000 400,000 3.34 $ 0.12 As of June 30, 2016 there was no unrecognized compensation costs related to these options and the intrinsic value of the options is $0. |
10. Net income (loss) per commo
10. Net income (loss) per common share | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
10. Net income (loss) per common share | 10. Net income (loss) per common share For the three months ended June 30, 2016 the computation of basic and diluted earnings per share is as follows: Income Number of shares Per share amount Net income $ 68,920 Basic earnings per share 68,920 47,991,602 $ 0.00 Effect of dilutive securities Warrants - 1,200,950 Options - - Diluted earnings per share $ 68,920 49,192,552 $ 0.00 For the six months ended June 30, 2016 the computation of basic and diluted earnings per share is as follows: Income Number of shares Per share amount Net income $ 212,414 Basic earnings per share 212,414 47,865,229 $ 0.00 Effect of dilutive securities Warrants - 1,200,950 Options - - Diluted earnings per share $ 212,414 49,066,179 $ 0.00 For the three months and six months ended June 30, 2016, options to purchase 480,000 shares of common stock and warrants to purchase 1,500,000 shares of common stock were excluded from the calculation of diluted earnings per share as the option and warrant exercise prices were greater than the average market price of the common shares. For the three months and six months ended June 30, 2015, the following options and warrants and convertible preferred stock were excluded from the computation of diluted net loss per shares as the result of the computation was anti-dilutive: Three months and six months ended June 30, 2015 Options to purchase shares of common stock $ 480,000 Warrants to purchase shares of common stock 6,300,000 Outstanding at June 30, 2015 $ 6,780,000 |
11. Commitments and contingenci
11. Commitments and contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
11. Commitments and contingencies | 11. Commitments and contingencies a) Operating leases The future minimum annual rental payments under the operating lease are estimated as follows, using the quarter end exchange rate of CAD $1 equals US $0.7687: Amount 2016 $ 200,052 2017 419,443 2018 465,882 2019 119,434 $ 1,204,811 b) Contingency related to outstanding tax liabilities The Company is delinquent in paying harmonized sales tax, filing and paying payroll taxes and may also be subject to US taxation and penalties. As of June 30, 2016, the Company had estimated Canadian tax liabilities outstanding of $2,522,094, which may result in the Canadian tax authorities placing liens on the Company bank accounts which would impact on the Companys ability to operate. The Company has also provided for US penalties of $200,000 due to noncompliance with the filing of certain required returns. The actual liability may be higher due to interest and penalties assessed by these taxing authorities. c) Other From time to time, the Company and its subsidiaries enter into legal disputes in the ordinary course of business. The Company believes there are no material legal or administrative matters pending that are likely to have, individually or in the aggregate, a material adverse effect on its business or results of operations. |
12. Income taxes
12. Income taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
12. Income taxes | 12. Income taxes The Company is not current in its tax filings as of June 30, 2016. |
13. Subsequent events
13. Subsequent events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
13. Subsequent events | 13. Subsequent events On May 17, 2016 the Company entered into an Asset Purchase Agreement (the Purchase Agreement), a Management Services Agreement (the Management Agreement and a Commercial Real Estate Contract to acquire the business and substantially all of the assets of Seastone of Delray, LLC (Seastone). Seastones business is primarily the practice of providing addiction treatment health care services. Pursuant to the terms of the Management Agreement, the Company began operating Seastones Business for a 90 day period commencing on July 1, 2016. During the Management Period, the Company is entitled to the revenues from the Business and will pay Seastone $20,000 per month to cover certain costs related to the Business, which shall increase to $28,000 per month if the Management Agreement is extended beyond 90 days. The Management Agreement may be terminated by either party if the Purchase Agreement does not close by September 15, 2016. The Company entered into a commercial real estate contract with Seastone Condominiums of Delray, LLC and 810 Andrews, LLC, both Florida limited liability companies to acquire certain real property. The purchase price for the Transaction is $6,150,000, which is being funded by a purchase money first mortgage in the amount of $3,000,000 at 5% per annum payable at $15,000 per month for three years; and $3,150,000 in cash. The Company has deposited $60,000 in escrow. The closing of the Transaction is anticipated to be September 15, 2016 and is contingent upon (i) the Company obtaining the requisite licenses from the appropriate governmental agencies for the operation of Seastones Business. Other than disclosed above, the Company has evaluated subsequent events through the date of the consolidated financial statements were available to be issued and has concluded that no such events or transactions took place that would require disclosure herein. |
2. Summary of Significant Acc20
2. Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
a) Use of Estimates | a) Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
b) Principals of consolidation and foreign currency translation | b) Principals of consolidation and foreign currency translation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiary. All inter company transactions and balances have been eliminated on consolidation. The Companys subsidiarys functional currency is the Canadian dollar, while the Companys reporting currency is the U.S. dollar. All transactions initiated in Canadian dollars are translated into US dollars in accordance with ASC 830, Foreign Currency Translation" as follows: Monetary assets and liabilities at the rate of exchange in effect at the balance sheet date. Equity at historical rates. Revenue and expense items at the average rate of exchange prevailing during the period. Adjustments arising from such translations are deferred until realization and are included as a separate component of stockholders deficit as a component of accumulated other comprehensive income or loss. Therefore, translation adjustments are not included in determining net income (loss) but reported as other comprehensive income (loss). For foreign currency transactions, the Company translates these amounts to the Companys functional currency at the exchange rate effective on the invoice date. If the exchange rate changes between the time of purchase and the time actual payment is made, a foreign exchange transaction gain or loss results which is included in determining net income for the period. The relevant translation rates are as follows: For the six months ended June 30, 2016; a closing rate of CAD$1.0000 equals US$0.7687 and an average exchange rate of CAD$1.0000 equals US$0.7530. |
c) Revenue Recognition | c) Revenue Recognition The Company recognizes revenue from the rendering of services when they are earned; specifically, when all of the following conditions are met: the significant risks and rewards of ownership are transferred to customers and the Company retains neither continuing involvement nor effective control; there is clear evidence that an arrangement exists; the amount of revenue and related costs can be measured reliably; and it is probable that the economic benefits associated with the transaction will flow to the Company. In particular, the Company recognizes: Fees for outpatient counselling, coaching, intervention, psychological assessments and other related services when patients receive the service; and Fees for inpatient addiction treatments proportionately over the term of the patients treatment. Deferred revenue represents monies deposited by the patients for future services to be provided by the Company. Such monies will be recognized into revenue as the patient progresses through their treatment term. |
d) Cash and cash equivalents | d) Cash and cash equivalents The Company's policy is to disclose bank balances under cash, including bank overdrafts with balances that fluctuate frequently from being positive to overdrawn and term deposits with a maturity period of three months or less from the date of acquisition. The Company has $76,870 (CAD$100,000) in restricted cash held by their bank to cover against the possibility of credit card charge backs, for services not performed. |
e) Recent accounting pronouncements | e) Recent accounting pronouncements In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, which amends the guidance in U.S. GAAP on accounting for operating leases, a lessee will be required to recognize assets and liabilities for operating leases with lease terms of more than 12 months on the balance sheet. The new standard is effective for fiscal years and interim periods beginning after December 15, 2018., and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) ASU 2016 09 Improvements to Employee Share-Based Payment Accounting which is intended to improve the accounting for employee share-based payments. The ASU simplifies several aspects of the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The new standard is effective for fiscal years and interim periods beginning after December 15, 2016., and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. In April 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) ASU 2016 10 Revenue from Contract with Customers: identifying Performance Obligations and Licensing. The amendments in this Update clarify the two following aspects (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entitys promise to grant a license provides a customer with either a right to use the entitys intellectual property (which is satisfied at a point in time) or a right to access the entitys intellectual property (which is satisfied over time). The amendments in this Update are intended to reduce the degree of judgement necessary to comply with Topic 606. This guidance has no effective date as yet. The Company is currently evaluating the impact of adopting this guidance. Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
f) Financial instrument | f) Financial instruments The Company is exposed to various risks through its financial instruments. The following analysis provides a measure of the Companys risk exposure and concentrations at the balance sheet date, June 30, 2016 and December 31, 2015. i. Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Financial instruments that subject the Company to credit risk consist primarily of accounts receivable. Credit risk associated with accounts receivable of Greenestone Clinic Muskoka Inc. is mitigated due to balances from many customers, as well as through credit checks and frequent reviews of receivables to ensure timely collection. In addition, there is no concentration risk with the Greenestone Clinic Muskoka Inc. accounts receivable balance since balances are due from many customers. In the opinion of management, credit risk with respect to accounts receivable is assessed as low, not material and remains unchanged from the prior year. ii. Liquidity risk Liquidity risk is the risk the Company will not be able to meet its financial obligations as they fall due. The Company is exposed to liquidity risk through its working capital deficiency of $(3,246,708) and accumulated deficit of $(20,508,791). As disclosed in note 3, the Company will be dependent upon the raising of additional capital in order to implement its business plan. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Companys financial condition. In the opinion of management, liquidity risk is assessed as high, material and remains unchanged from the prior year. iii. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risk: interest rate risk, currency risk, and other price risk. The Company is exposed to interest rate risk and currency risk. iv. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to minimal interest rate risk on its bank indebtedness as there is a balance of $31,635 at June 30, 2016. This liability is based on floating rates of interest that have been stable during the current reporting period. In the opinion of management, interest rate risk is assessed as low, not material and remains unchanged from the prior year. v. Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is subject to currency risk as its subsidiaries operate in Canada and are subject to fluctuations in the Canadian dollar. Most of the Companys financial assets and liabilities are denominated in Canadian dollars. Based on the net exposures at June 30, 2016, a 5% depreciation or appreciation of the Canadian dollar against the U.S. dollar would result in an approximate $15,754 increase or decrease in the Companys after-tax net income from continuing operation. The Company has not entered into any hedging agreements to mediate this risk. In the opinion of management, currency risk is assessed as low, material and remains unchanged from the prior year. vi. Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. In the opinion of management, the Company is not exposed to this risk and remains unchanged from the prior year. |
5. Plant and equipment (Tables)
5. Plant and equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Plant and equipment | Cost Accumulated depreciation Net book value June 30, 2016 Net book value December 31, 2015 Unaudited Computer equipment $ 21,278 $ 16,225 $ 5,053 $ 5,945 Computer software 9,848 7,386 2,462 4,924 Furniture and equipment 353,431 272,005 81,426 94,651 Leasehold improvement 142,793 87,219 55,574 65,382 Medical equipment 4,491 3,574 917 1,047 Vehicles 64,175 46,170 18,005 21,182 $ 596,016 $ 432,579 $ 163,437 $ 193,131 |
6. Loans payable (Tables)
6. Loans payable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Loans Payable | June 30, 2016 December 31, 2015 Unaudited Automobile loan Current portion $ 7,273 $ 6,684 Long-term portion 5,673 8,788 $ 12,946 $ 15,472 |
Estimated Principal Repayments | Estimated principal payments are as follows: Amount Within 1 year 7,273 1 to 2 years $ 5,673 $ 12,946 |
7. Short term notes (Tables)
7. Short term notes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Short Term Notes Tables | |
Short term notes | Description Interest Maturity June 30, 2016 JMJ Financial Principal 10 % November 13, 2016 220,000 Accrued interest 7,103 Unamortized debt discount (59,982 ) 167,121 |
9. Stockholders' deficit (Table
9. Stockholders' deficit (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Warrants outstanding | Number of warrants outstanding Weighted average exercise price per share Outstanding at January 1, 2015 6,300,000 $ 0.143 Granted Cancelled/forfeited Exercised Outstanding at December 31, 2015 6,300,000 0.143 Granted 3,703,700 0.030 Cancelled/forfeited (4,500,000 ) 0.150 Exercised Outstanding at June 30, 2016 $ 5,503,700 $ 0.041 E xercise Price Number of warrants Weighted average remaining life Weighted average exercise price $ 0.003 300,000 * $ 0.003 $ 0.030 3,703,700 4,79 0.030 $ 0.150 1,500,000 0.47 0.150 5,503,700 3.35 $ 0.041 |
Options Outstanding | Exercise Price Number of options outstanding Number of options exercisable Weighted average remaining life Weighted average exercise price $0.12 480,000 400,000 3.34 $ 0.12 |
10. Net income (loss) per com25
10. Net income (loss) per common share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Net Income Loss Per Common Share Tables | |
Basic and diluted earnings per share | For the three months ended June 30, 2016 the computation of basic and diluted earnings per share is as follows: Income Number of shares Per share amount Net income $ 68,920 Basic earnings per share 68,920 47,991,602 $ 0.00 Effect of dilutive securities Warrants - 1,200,950 Options - - Diluted earnings per share $ 68,920 49,192,552 $ 0.00 For the six months ended June 30, 2016 the computation of basic and diluted earnings per share is as follows: Income Number of shares Per share amount Net income $ 212,414 Basic earnings per share 212,414 47,865,229 $ 0.00 Effect of dilutive securities Warrants - 1,200,950 Options - - Diluted earnings per share $ 212,414 49,066,179 $ 0.00 |
Anti dilutive net loss per share | Three months and six months ended June 30, 2015 Options to purchase shares of common stock $ 480,000 Warrants to purchase shares of common stock 6,300,000 Outstanding at June 30, 2015 $ 6,780,000 |
11. Commitments and contingen26
11. Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Tables | |
Commitments and contingencies | Amount 2016 $ 200,052 2017 419,443 2018 465,882 2019 119,434 $ 1,204,811 |
2. Significant accounting polic
2. Significant accounting policies (Details Narrative) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Restricted Cash | $ 76,870 | $ 72,250 |
3. Going concern (Details Narra
3. Going concern (Details Narrative) | Jun. 30, 2016USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Working Capital Deficiency | $ (3,246,708) |
Accumulated Deficit | $ (20,508,791) |
5. Plant and Equipment (Details
5. Plant and Equipment (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Cost | $ 596,016 | |
Accumulated Amortization | 432,579 | |
Net Book Value | 163,437 | $ 193,131 |
Computer Equipment | ||
Cost | 21,278 | |
Accumulated Amortization | 16,225 | |
Net Book Value | 5,053 | 5,945 |
Computer Software | ||
Cost | 9,848 | |
Accumulated Amortization | 7,386 | |
Net Book Value | 2,462 | 4,924 |
Furniture and Equipment | ||
Cost | 353,431 | |
Accumulated Amortization | 272,005 | |
Net Book Value | 81,426 | 94,651 |
Leasehold Improvements | ||
Cost | 142,793 | |
Accumulated Amortization | 87,219 | |
Net Book Value | 55,574 | 65,382 |
Medical Equipment | ||
Cost | 4,491 | |
Accumulated Amortization | 3,574 | |
Net Book Value | 917 | 1,047 |
Vehicles | ||
Cost | 64,175 | |
Accumulated Amortization | 46,170 | |
Net Book Value | $ 18,005 | $ 21,182 |
6. Loans payable - Loans Payabl
6. Loans payable - Loans Payable (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Current portion | $ 7,273 | $ 6,684 |
Long term portion | 5,673 | 8,788 |
Automobile Loan Payable | $ 12,946 | $ 15,472 |
6. Loans payable - Estimated Pr
6. Loans payable - Estimated Principal Repayments (Details) | Jun. 30, 2016USD ($) |
Payables and Accruals [Abstract] | |
Within 1 year | $ 7,273 |
1 to 2 years | 5,673 |
Total | $ 12,946 |
7. Short term notes (Details)
7. Short term notes (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Short Term Notes Details | |
Interest Rate | 10.00% |
Maturity | NOVEMBER 13, 2016 |
Principal | $ 220,000 |
Accrued interest | 7,103 |
Unamortized debt discount | (59,982) |
Total | $ 167,121 |
8. Related party transactions (
8. Related party transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transactions [Abstract] | ||||
Management Fees | $ 46,577 | $ 48,337 | $ 46,577 | $ 96,705 |
9. Stockholders' deficit - Warr
9. Stockholders' deficit - Warrants Outstanding (Details) - Warrants - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Beginning balance, warrants | 6,300,000 | 6,300,000 |
Beginning balance, warrants exercise price | $ 0.143 | $ 0.143 |
Warrants Granted, shares | 3,703,700 | |
Warrants granted, price | $ 0.030 | |
Warrants Cancelled, shares | (4,500,000) | |
Warrants cancelled, price | $ 0.150 | |
Warrant Exercised, shares | ||
Warrants Exercised, price | ||
Ending Balance, warrants | 5,503,700 | 6,300,000 |
Ending Balance, warrants exercise price | $ 0.041 | $ 0.143 |
Weighted Average Contractual Life, warrants | 3 years 4 months 6 days |
9. Stockholders' deficit - Opti
9. Stockholders' deficit - Options Outstanding (Details) - Options | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Options Exercisable, shares | shares | 400,000 |
Options Exercisable, price | $ / shares | $ .12 |
Ending Balance, options | shares | 480,000 |
Ending Balance, options exercise price | $ / shares | $ 0.12 |
Weighted Average Contractual Life, options | 3 years 4 months 2 days |
10. Net income (loss) per com36
10. Net income (loss) per common share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income (loss) | $ 212,414 | $ (348,854) | ||
Basic earnings per share, Per share amount | $ 0 | $ 0 | $ 0 | $ (0.01) |
Effect of dilutive securities | ||||
Diluted earnings per share, Per share amount | $ 0 | $ 0 | $ 0 | $ (0.01) |
Net Income | ||||
Net income (loss) | $ 68,920 | $ 212,414 | ||
Basic earnings per share, Amount | $ 68,920 | $ 212,414 | ||
Basic earnings per share, Shares | 47,991,602 | 47,865,229 | ||
Basic earnings per share, Per share amount | $ 0 | $ 0.01 | ||
Effect of dilutive securities | ||||
Warrants, Amount | $ 0 | $ 0 | ||
Warrants, Shares | 1,200,950 | 1,200,950 | ||
Options | 0 | 0 | ||
Diluted earnings per share, Amount | $ 68,920 | $ 212,414 | ||
Diluted earnings per share, Shares | 49,192,552 | 49,066,179 | ||
Diluted earnings per share, Per share amount | $ 0 | $ (0.01) |
10. Net income (loss) per com37
10. Net income (loss) per common share (Details 1) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Net Income Loss Per Common Share Details 1 | |
Options to purchase shares of common stock | $ 480,000 |
Warrants to purchase shares of common stock | 6,300,000 |
Outstanding at June 30, 2015 | $ 6,780,000 |
11. Commitments and contingen38
11. Commitments and contingencies (Details) | Jun. 30, 2016USD ($) |
Commitments And Contingencies Details | |
2,016 | $ 200,052 |
2,017 | 419,443 |
2,018 | 465,882 |
2,019 | 119,434 |
Total | $ 1,204,811 |