Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2022 | Oct. 24, 2022 | |
Details | ||
Registrant CIK | 0000925661 | |
Fiscal Year End | --03-31 | |
Registrant Name | SECTOR 10 INC | |
SEC Form | 10-Q | |
Period End date | Sep. 30, 2022 | |
Tax Identification Number (TIN) | 33-0565710 | |
Number of common stock shares outstanding | 305,778 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 000-24370 | |
Entity Address, Address Line One | 10900 NE 4th Street | |
Entity Address, Address Line Two | Suite 2300 | |
Entity Address, City or Town | Bellevue | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98004 | |
City Area Code | 425 | |
Local Phone Number | 331-9620 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Current assets | ||
Cash | $ 0 | $ 0 |
Inventory, net | 0 | 0 |
Total current assets | 0 | 0 |
Fixed assets -cost | 0 | 0 |
Less: accumulated depreciation | 0 | 0 |
Net fixed assets | 0 | 0 |
Total assets | 0 | 0 |
Current liabilities | ||
Accounts payable and accrued liabilities | 9,698,677 | 9,687,464 |
Note payable - short term | 164,000 | 164,000 |
Total current liabilities | 9,862,677 | 9,851,464 |
Long term liabilities | ||
Note payable | 0 | 0 |
Total long term liabilities | 0 | 0 |
Total liabilities | 9,862,677 | 9,851,464 |
Shareholders' equity (deficit) | ||
Preferred shares | 0 | 0 |
Common shares | 306 | 306 |
Additional paid-in-capital | 6,148,229 | 6,148,229 |
Deficit accumulated during development stage | (16,011,212) | (15,999,999) |
Total shareholders' equity (deficit) | (9,862,677) | (9,851,464) |
Total liabilities and shareholders' equity (deficit) | $ 0 | $ 0 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets - Parenthetical - $ / shares | Sep. 30, 2022 | Mar. 31, 2022 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 199,000,000 | 199,000,000 |
Common Stock, Shares, Issued | 305,778 | 305,778 |
Common Stock, Shares, Outstanding | 305,778 | 305,778 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | 241 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | |
Details | |||||
Sales | $ 0 | $ 0 | $ 0 | $ 0 | $ 18,500 |
Cost of Sales | 0 | 0 | 0 | 0 | (18,032) |
Gross Profit | 0 | 0 | 0 | 0 | 468 |
Expenses | |||||
General and administrative | 3,008 | 8,498 | 4,653 | 19,682 | 14,498,081 |
Depreciation | 0 | 0 | 24,106 | ||
Research and development | 226,108 | ||||
Total expenses | 3,008 | 8,498 | 4,653 | 19,682 | 14,748,295 |
Income (loss) from operations | (3,008) | (8,498) | (4,653) | (19,682) | (14,747,827) |
Interest expense | (3,280) | (3,280) | (6,560) | (10,558) | (3,324,548) |
Other income (expense) | 0 | 576,426 | 0 | 576,426 | 2,061,163 |
Net income (loss) before income taxes | (6,288) | 564,648 | (11,213) | 546,186 | (16,011,212) |
Provision for income taxes | 0 | 0 | 0 | 0 | 0 |
Net income (loss) after income taxes | $ (6,288) | $ 564,648 | $ (11,213) | $ 546,186 | $ (16,011,212) |
Weighted Average Shares Outstanding - basic and diluted* | 305,778 | 305,778 | 305,778 | 305,778 | |
Basic and diluted income (loss) per share | |||||
Income Loss From Continuing Operations Per Basic And Diluted Share | $ (0.02) | $ 1.85 | $ (0.04) | $ 1.79 | |
Basic and diluted income (loss) per share | $ (0.02) | $ 1.85 | $ (0.04) | $ 1.79 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 241 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | |||
Net income (loss) after income taxes | $ (11,213) | $ 546,186 | $ (16,011,212) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Stock for services | 0 | 0 | 5,114,493 |
Depreciation | 0 | 0 | 24,106 |
Net discount on convertible debt | 0 | 0 | 206,324 |
Loss due to Impairment / Gain on restructuring | 0 | 0 | 630,795 |
Changes in | |||
Inventory and other current assets | 0 | 0 | (4,869) |
Accounts payable and accrued liabilities | 11,213 | (546,186) | 9,572,765 |
Net cash used in operating activities | 0 | 0 | (467,598) |
Cash Flows from Investing Activities | |||
Fixed asset / Other asset purchases | 0 | 0 | (189,541) |
Net cash used in investing activities | 0 | 0 | (189,541) |
Cash Flows from Financing Activities | |||
Net Proceeds from general financing | 0 | 0 | 737,500 |
Net Proceeds (payments) from shareholder / officers | 0 | 0 | (113,947) |
Proceeds from issuance of common stock | 0 | 0 | 33,586 |
Net cash provided by financing activities | 0 | 0 | 657,139 |
Net increase (decrease) in cash | 0 | 0 | 0 |
Beginning of period - continuing operations | 0 | 0 | 0 |
End of period - continuing operations | 0 | 0 | 0 |
Cash paid for interest | 0 | 0 | 24,295 |
Cash paid for income taxes | $ 0 | $ 0 | $ 0 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Sep. 30, 2022 | |
Notes | |
Note 1 - Basis of Presentation | Note 1 - BASIS OF PRESENTATION The accompanying unaudited consolidated condensed financial statements of Sector 10, Inc. (“Sector 10” or the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and required by Rule 10-01 of Regulation S-X. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. Impact of Recent Accounting Pronouncements Sector 10 does not expect the adoption of any recently issued accounting pronouncements to have a material impact on its financial condition or results of operations. |
Note 2 - Inventory
Note 2 - Inventory | 6 Months Ended |
Sep. 30, 2022 | |
Notes | |
Note 2 - Inventory | Note 2 – INVENTORY There were no sales in the six months ended September 30, 2022. The inventory reflected on the books was $0 for the six months ended September 30, 2022. |
Note 3 - Notes Payable
Note 3 - Notes Payable | 6 Months Ended |
Sep. 30, 2022 | |
Notes | |
Note 3 - Notes Payable | Note 3 – NOTES PAYABLE Various Individuals Total interest accrued as of September 30, 2022 was $84,753 of which $3,960 was accrued during the six months ended September 30, 2022. Other Notes . Total interest accrued (without discount amortization) as of September 30, 2022 was $65,502 of which $2,600 was accrued during the six months ended September 30, 2022. The current period interest is included as part of other interest. Summary of Interest and Notes Payable Interest expense September 30, 2022 March 31, 2022 Various Individuals 3,960 2,598 Other Notes 2,600 14,601 Total interest expense $ 6,560 $ 17,119 Note Payable Balance September 30, 2022 March 31, 2022 Various Individuals $ 99,000 $ 99,000 Other Notes 65,000 65,000 Total Note Payable – short term $ 164,000 $ 164,000 Total Note Payable – long term $ - $ - Total Notes Payable $ 164,000 $ 164,000 Debt Maturity Schedule As of December 31, 2021, the annual maturities for notes payable are scheduled as follows: Fiscal Year Amount March 31, 2023 $ 164,000 March 31, 2024 $ - Total $ 164,000 All interest is due under the terms of the various agreements. However future interest payments will not be made until the restructuring plan has been implemented and a satisfactory revised payment arrangement is completed by all parties. |
Note 4 - Equity
Note 4 - Equity | 6 Months Ended |
Sep. 30, 2022 | |
Notes | |
Note 4 - Equity | Note 4 – EQUITY During the Quarter ended: June 30, 2022 No equity transactions occurred in the period ended June 30, 2022 During the Quarter ended: September 30, 2022 No equity transactions occurred in the period ended September 30, 2022 |
Note 5 - Going Concern
Note 5 - Going Concern | 6 Months Ended |
Sep. 30, 2022 | |
Notes | |
Note 5 - Going Concern | Note 5 – GOING CONCERN The Company generated minimal revenues prior to the current fiscal year. No revenues were generated for the six month period ended September 30, 2022. This level of revenues is not sufficient for the Company to meet its future obligations. This factor raises substantial doubt about the Company’s ability to continue as a going concern. |
Note 6 - Income Tax
Note 6 - Income Tax | 6 Months Ended |
Sep. 30, 2022 | |
Notes | |
Note 6 - Income Tax | Note 6 - INCOME TAX Income taxes are accounted for using the asset and liability method. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company’s financial statements for the six month period ended September 30, 2022 and 2021 do not include any provision for income taxes. No income tax accrual has been recorded based on the expectation that the Company will be in a net loss position for the overall applicable fiscal year. Accordingly, deferred tax assets have been entirely offset by valuation allowances. The difference between the amounts of income tax benefit that would result from applying domestic federal statutory income tax rates to the net loss and the net deferred tax assets is related to certain nondeductible expenses, state income taxes, and the change in the valuation allowance. The Financial Accounting Standards Board ("FASB") has issued ASC 740 for Accounting for Income Taxes that clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. ASC 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of ASC 740, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by ASC 740. The Company had no unrecognized tax benefit which would affect the effective tax rate if recognized. The Company includes interest and penalties arising from the underpayment of income taxes in the consolidated statements of operations in the provision for income taxes. As of September 30, 2022 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and in the states of Delaware, Utah and any other jurisdiction where required. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2017. |
Note 7 - Subsequent Events
Note 7 - Subsequent Events | 6 Months Ended |
Sep. 30, 2022 | |
Notes | |
Note 7 - Subsequent Events | Note 7 – SUBSEQUENT EVENTS The Company has evaluated subsequent events per the requirements of ASC Topic 855 and has determined that the following events should be disclosed. 1) The Company is reviewing various options to determine the future restructuring of the Company operations. No restructuring plan has been finalized as of the filing date of this report. |
Note 6 - Income Tax_ Income Tax
Note 6 - Income Tax: Income Tax, Policy (Policies) | 6 Months Ended |
Sep. 30, 2022 | |
Policies | |
Income Tax, Policy | Income taxes are accounted for using the asset and liability method. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company’s financial statements for the six month period ended September 30, 2022 and 2021 do not include any provision for income taxes. No income tax accrual has been recorded based on the expectation that the Company will be in a net loss position for the overall applicable fiscal year. Accordingly, deferred tax assets have been entirely offset by valuation allowances. The difference between the amounts of income tax benefit that would result from applying domestic federal statutory income tax rates to the net loss and the net deferred tax assets is related to certain nondeductible expenses, state income taxes, and the change in the valuation allowance. The Financial Accounting Standards Board ("FASB") has issued ASC 740 for Accounting for Income Taxes that clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. ASC 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of ASC 740, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by ASC 740. The Company had no unrecognized tax benefit which would affect the effective tax rate if recognized. The Company includes interest and penalties arising from the underpayment of income taxes in the consolidated statements of operations in the provision for income taxes. As of September 30, 2022 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and in the states of Delaware, Utah and any other jurisdiction where required. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2017. |
Note 3 - Notes Payable_ Interes
Note 3 - Notes Payable: Interest Expense Disclosure (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Tables/Schedules | |
Interest Expense Disclosure | Summary of Interest and Notes Payable Interest expense September 30, 2022 March 31, 2022 Various Individuals 3,960 2,598 Other Notes 2,600 14,601 Total interest expense $ 6,560 $ 17,119 |
Note 3 - Notes Payable_ Schedul
Note 3 - Notes Payable: Schedule Of Debt Table TextBlock (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Tables/Schedules | |
Schedule Of Debt Table TextBlock | Note Payable Balance September 30, 2022 March 31, 2022 Various Individuals $ 99,000 $ 99,000 Other Notes 65,000 65,000 Total Note Payable – short term $ 164,000 $ 164,000 Total Note Payable – long term $ - $ - Total Notes Payable $ 164,000 $ 164,000 |
Note 3 - Notes Payable_ Sched_2
Note 3 - Notes Payable: Schedule of maturities of notes payable (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Tables/Schedules | |
Schedule of maturities of notes payable | Fiscal Year Amount March 31, 2023 $ 164,000 March 31, 2024 $ - Total $ 164,000 |
Note 2 - Inventory (Details)
Note 2 - Inventory (Details) - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Details | ||
Inventory, net | $ 0 | $ 0 |
Note 3 - Notes Payable (Details
Note 3 - Notes Payable (Details) | 6 Months Ended |
Sep. 30, 2022 USD ($) | |
Various Individuals | |
Interest Accrued | $ 3,960 |
Other Notes | |
Interest Accrued | $ 2,600 |
Note 3 - Notes Payable_ Inter_2
Note 3 - Notes Payable: Interest Expense Disclosure (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 241 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | Sep. 30, 2022 | |
Interest Expense | $ 3,280 | $ 3,280 | $ 6,560 | $ 10,558 | $ 17,119 | $ 3,324,548 |
Various Individuals | ||||||
Interest Expense | 3,960 | 2,598 | ||||
Other Notes | ||||||
Interest Expense | $ 2,600 | $ 14,601 |
Note 3 - Notes Payable_ Sched_3
Note 3 - Notes Payable: Schedule Of Debt Table TextBlock (Details) - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Note payable - short term | $ 164,000 | $ 164,000 |
Note payable | 0 | 0 |
Notes Payable | 164,000 | 164,000 |
Various Individuals | ||
Note payable - short term | 99,000 | 99,000 |
Other Notes | ||
Note payable - short term | $ 65,000 | $ 65,000 |
Note 3 - Notes Payable_ Sched_4
Note 3 - Notes Payable: Schedule of maturities of notes payable (Details) - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Details | ||
Long-Term Debt, Maturity, Year Two | $ 164,000 | |
Long Term Debt Maturities Repayments Of Principal In Year Three | 0 | |
Notes Payable | $ 164,000 | $ 164,000 |