Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | May 26, 2020 | Sep. 30, 2019 | |
Details | |||
Registrant CIK | 0000925661 | ||
Fiscal Year End | --03-31 | ||
Registrant Name | SECTOR 10 INC | ||
SEC Form | 10-K | ||
Period End date | Mar. 31, 2020 | ||
Tax Identification Number (TIN) | 33-0565710 | ||
Number of common stock shares outstanding | 305,778 | ||
Public Float | $ 3,057,780 | ||
Filer Category | Non-accelerated Filer | ||
Current with reporting | Yes | ||
Interactive Data Current | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Shell Company | false | ||
Small Business | true | ||
Emerging Growth Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-24370 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 222 South Main Street | ||
Entity Address, Address Line Two | 5th Floor | ||
Entity Address, City or Town | Salt Lake City | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84101 | ||
City Area Code | (206) | ||
Local Phone Number | 853-4866 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Current Assets | ||
Cash | $ 0 | $ 0 |
Inventory, net | 0 | 0 |
Total current assets | 0 | 0 |
Fixed assets - cost | 22,250 | 22,250 |
Less: accumulated depreciation | (22,250) | (22,250) |
Net fixed assets | 0 | 0 |
Other assets - Network acquisition/development costs | 0 | 0 |
Total assets | 0 | 0 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 11,592,288 | 10,234,025 |
Note payable - short term | 803,615 | 803,615 |
Total current liabilities | 12,395,903 | 11,037,640 |
Long term liabilities: | ||
Note payable - long term | 0 | 0 |
Total long term liabilities | 0 | 0 |
Total liabilities | 12,395,903 | 11,037,640 |
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 | (18,544,438) | (17,186,175) |
Total shareholders' equity (deficit) | (12,395,903) | (11,037,640) |
Total liabilities and shareholders' equity (deficit) | $ 0 | $ 0 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets - Parenthetical - $ / shares | Mar. 31, 2020 | Mar. 31, 2019 |
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 ($) | 12 Months Ended | 211 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | |
Details | |||
Sales | $ 0 | $ 0 | $ 18,500 |
Cost of Sales | 0 | 0 | (18,032) |
Gross Profit | 0 | 0 | 468 |
Expenses | |||
General and administrative | 832,106 | 832,025 | 14,410,254 |
Depreciation | 0 | 0 | 24,106 |
Research and development | 0 | 226,108 | |
Total expenses | 832,106 | 832,025 | 14,660,468 |
Income (loss) from operations | (832,106) | (832,025) | (14,660,000) |
Interest expense | (526,157) | (473,358) | (3,253,643) |
Other income (expense) | 0 | 0 | (630,795) |
Net income (loss) before income taxes | (1,358,263) | (1,305,383) | (18,544,438) |
Provision for income taxes | 0 | 0 | 0 |
Net income (loss) after income taxes | $ (1,358,263) | $ (1,305,383) | $ (18,544,438) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 305,778 | 305,778 | |
Basic and diluted income (loss) per share | |||
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $ (4.44) | $ (4.27) | |
Earnings Per Share, Basic and Diluted | $ (4.44) | $ (4.27) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
Stockholders' Equity Attributable to Parent, Beginning Balance at Sep. 17, 2002 | $ 0 | $ 0 | $ 0 | |
Issued Shares 12/31/2002 | $ 10 | (1,414) | 0 | |
Issued Shares 12/31/2002, shares | 10,000 | |||
Net loss for the period 12/31/2002 | $ 0 | 0 | (3,586) | |
Net loss for the period 1/1/2003 to 3/31/2007 | 0 | 0 | 0 | |
Net loss for the period 3/31/2008 | 0 | 0 | (123,946) | |
Issued Shares 3/31/2009 | $ 20 | 1,702,738 | 0 | |
Issued Shares 3/31/2009, shares | 20,256 | |||
Net loss for the period 3/31/2009 | $ 0 | 0 | (532,775) | |
Issued Shares 3/31/2010 | $ 65 | 3,265,424 | 0 | |
Issued Shares 3/31/2010, shares | 65,099 | |||
Net loss for the period 3/31/2010 | $ 0 | 0 | (4,587,632) | |
Recapitalization, Amount | $ 6 | (703,166) | 0 | |
Recapitalization, Shares | 5,464 | |||
Gain (Loss) on Extinguishment of Debt | $ 0 | 10,850 | 0 | |
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2010 | $ 101 | 4,274,432 | (5,247,939) | |
Shares, Outstanding, Ending Balance at Mar. 31, 2010 | 100,819 | |||
Issued Shares (unaudited) 3/31/2011 | $ 243 | 1,199,745 | 0 | |
Issued Shares (unaudited) 3/31/2011, shares | 243,443 | |||
Adjustment to value of stock options at 3/31/ 2011 (unaudited) | $ 0 | 116,455 | 0 | |
Net loss for the period 3/31/2011 (unaudited) | 0 | 0 | (2,572,447) | |
Issued Shares, Unaudited 03-31-2012 | $ (23) | 76,988 | 0 | |
Issued Shares, Unaudited 03-31-2012, Shares | (23,315) | |||
Adjustment To Value Of Stock Options At 03-31-2012, Unaudited | $ 0 | 97,048 | 0 | |
Net Loss For The Period 03-31-2012, Unaudited | 0 | 0 | (1,447,492) | |
Adjustment To Value Of Stock Options At 03-31-2013, Unaudited | 0 | 24,786 | 0 | |
Net Loss For The Period 03-31-2013, Unaudited | 0 | 0 | (963,191) | |
Net Loss For The Period 03-31-2014, Unaudited | 0 | 0 | (997,806) | |
Net Loss For The Period 03-31-2015, Unaudited | 0 | 0 | (1,074,487) | |
Net Loss For The Period 03-31-2016, Unaudited | 0 | 0 | (1,137,218) | |
Net Loss For The Period 03-31-2017, Unaudited | 0 | 0 | (1,219,080) | |
Net Loss For The Period 03-31-2018, Unaudited | 0 | 0 | (1,221,132) | |
Net Loss For The Period 03-31-2019, Unaudited | 0 | 0 | (1,305,383) | |
Net discount on convertible debt | 0 | 206,324 | 0 | |
Adjust for reverse split | $ (15) | 152,451 | 0 | |
Stock Issued During Period, Shares, Reverse Stock Splits | (15,169) | |||
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2019 | $ (11,037,640) | $ 306 | 6,148,229 | (17,186,175) |
Shares, Outstanding, Ending Balance at Mar. 31, 2019 | 305,778 | |||
Net discount on convertible debt | 0 | |||
Net Income (Loss) | (1,358,263) | $ 0 | 0 | (1,358,263) |
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2020 | $ (12,395,903) | $ 306 | $ 6,148,229 | $ (18,544,438) |
Shares, Outstanding, Ending Balance at Mar. 31, 2020 | 305,778 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | 211 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net Income (Loss) | $ (1,358,263) | $ (1,305,383) | $ (18,544,438) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | |||
Share-based Payment Arrangement, Noncash Expense | 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: | |||
Changes in Inventory and other current aseets | 0 | 0 | (4,869) |
Changes in accounts payable and accrued liabilities | 1,358,263 | 1,305,383 | 12,105,991 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 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 |
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 | 0 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 0 | 0 | 0 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 0 | 0 | 0 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 0 | 0 | 24,295 |
Income Taxes Paid, Net | $ 0 | $ 0 | $ 0 |
Note 1 - Organization and Busin
Note 1 - Organization and Business Operations | 12 Months Ended |
Mar. 31, 2020 | |
Notes | |
Note 1 - Organization and Business Operations | Note 1 - ORGANIZATION AND BUSINESS OPERATIONS The Company markets the MRU and SRU products and the PLX-3D technology. In 2009, the Company was planning to release the technology and its MRU and SRU products in San Francisco and other cities in the US with the help of the Gage Group and other parties. In 2009, the outside Manufacturer breached the manufacturing contract. In 2009 and in subsequent years, it was also discovered that the manufacturer and its affiliates had been conducting a technology transfer to other parties. Litigation is pending regarding these matters in Utah state court. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2020 | |
Notes | |
Note 2 - Summary of Significant Accounting Policies | Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation 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. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents It is the Companys policy to invest cash with financial institutions judged to be highly secure. For purposes of the statement of cash flow, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Accounts Receivable The Company extends credit to its customers in the normal course of business. The Company reviews outstanding receivables, and provides for estimated losses through an allowance for doubtful accounts. In evaluating the level of established loss reserves, the Company makes judgments regarding its customers ability to make required payments, economic events and other factors. As the financial condition of these parties change, circumstances develop or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. The Company has no sales and no receivables outstanding for the fiscal year ended March 31, 2020. Inventory Inventories are valued at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. Due to pending litigation, there was no sales activity and no inventory on hand at the fiscal year ended March 31, 2020. Due to the impact of the extended litigation, the inventory has been recorded at no value as of March 31, 2020. Therefore, for the fiscal year ended March 31, 2020, all inventory and the related reserve was $0. Property and Equipment and Depreciation Property and equipment are carried at historical cost less accumulated depreciation. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. The cost and the related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The Company provides for depreciation of property and equipment principally by use of the straight-line method for financial reporting purposes. Depreciation begins in the month that depreciable assets are placed in service. The only assets currently placed in service are computers and furniture and equipment. Computers and depreciable equipment are estimated to have a useful life of 5 years. Depreciation is computed based on a straight line basis over the estimated useful life. All property and equipment is fully depreciated at the end of the fiscal year end. Notes Payable The Company received funding from outside investors. The Company is currently in litigation and any additional funding (if any) will be used for legal fees. No additional operational funding is expected until at least during the fiscal year ended March 31, 2021. Contingencies We account for loss contingencies in accordance with ASC 450, "Accounting for Contingencies." Accordingly, when management determines that it is probable that an asset has been impaired or a liability has been incurred, we accrue our best estimate of the loss if it can be reasonably estimated. Our legal costs related to litigation are expensed as incurred. Income Tax Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss, 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 basis. 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 the tax laws and rates on the date of enactment. Loss Per Share In accordance with ASC 280, "Earnings Per Share," we report basic loss per common share, which excludes the effect of potentially dilutive securities, and diluted loss per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. Share-Based Compensation We may, from time to time, issue common stock, stock options or common stock warrants to acquire services or goods from non-employees. Common stock, stock options and common stock warrants issued to persons other than employees or directors are recorded on the basis of their fair value. Long Lived Assets The Company maintains a Long Lived Asset which is reviewed regularly for impairment. In its review for impairment, the Company prepares estimates of future cash flows to assist in the determination of the assets recoverability. If there is an issue regarding recoverability, an independent valuation will be obtained to determine any required adjustment for impairment The estimates used in determining for recoverability are updated by the Company on a regular basis to provide guidance for managements quarterly and annual reporting. Revenue Recognition The Company had no sales activity during the current fiscal year ended March 31, 2020. The Company records sales of its products based upon the terms of the contract; when title passes to its customers; and, when collectability is reasonably assured. 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 3 - Inventory
Note 3 - Inventory | 12 Months Ended |
Mar. 31, 2020 | |
Notes | |
Note 3 - Inventory | Note 3 INVENTORY There were no sales in the year ended March 31, 2020. The inventory reflected on the books was $0 for the fiscal year ended March 31. 2020. |
Note 4 - Notes Payable
Note 4 - Notes Payable | 12 Months Ended |
Mar. 31, 2020 | |
Notes | |
Note 4 - Notes Payable | Note 4 NOTES PAYABLE Johnson Financing Total interest accrued as of March 31, 2020 was $96,473 of which $10,394 was accrued during the fiscal year ended March 31, 2020. Dutro Financing: The contingent reserve - interest includes all interest accrued on the Dutro Company note and all interest accrued after July 1, 2010 for the Vicki Davis and William Dutro note. Interest accrued during the fiscal year ended March 31, 2020 was $36,225 comprised of Dutro Company - $18,750, Vick Davis - $12,600 and William Dutro - $4,875. Total contingent reserve - interest for the period ended March 31, 2020 is $370,079 comprised of Dutro Company - $199,698, Vick Davis - $122,850 and William Dutro - $47,531. Employee Agreement: The financial statements reflect an accrual of interest on unpaid wages and other compensation in the amount of $2,357,414 of which $460,818 is accrued during the fiscal year ended March 31, 2020. Other Notes Individuals short term Total interest accrued as of March 31, 2020 was $80,250 of which $13,520 was accrued during the fiscal year ended March 31, 2020. The current period interest is included as part of other notes interest. Asher Enterprises, Inc. The Company entered into multiple financing transactions with Asher Enterprises, Inc. to raise capital for Company operations. Each transaction was structured as a Convertible Debenture due 9 months after the issue accruing interest at an annual rate of 8% Total interest accrued (without discount amortization) as of March 31, 2020 was $47,302 of which $5,200 was accrued during the fiscal year ended March 31, 2020. The current period interest is included as part of other notes interest. Summary of Interest and Notes Payable Interest expense March 31, 2020 March 31, 2019 Interest Johnson 10,394 10,394 Interest Dutro Group 36,225 36,225 Interest - Employee Group 460,818 408,019 Interest Other Notes 18,720 18,720 Total interest expense $ 526,157 $ 473,358 Note Payable Balance March 31, 2020 March 31, 2019 Edward Johnson Johnson Financing $ 86,615 $ 86,615 Various Individuals Other Notes 169,000 169,000 Asher Enterprises, Inc. Other Notes 65,000 65,000 Vicki Davis - Dutro Group 168,000 168,000 William Dutro Dutro Group 65,000 65,000 Dutro Company Dutro Group 250,000 250,000 Total Note Payable short term $ 803,615 $ 803,615 Total Note Payable long term - $ - Total Notes Payable $ 803,615 $ 803,615 Debt Maturity Schedule As of March 31, 2020 the annual maturities for notes payable are scheduled as follows: Fiscal Year Amount March 31, 2020 803,615 March 31, 2021 - March 31, 2022 - Total $ 803,615 All interest is due under the terms of the various agreements. However future interest payments will not be made until all pending litigation is resolved and a satisfactory revised payment arrangement is completed by all parties. |
Note 5 - Equity
Note 5 - Equity | 12 Months Ended |
Mar. 31, 2020 | |
Notes | |
Note 5 - Equity | Note 5 EQUITY During the Fiscal Year ended: March 31, 2019: No equity transactions occurred in the period ended March 31, 2019 During the Fiscal Year ended: March 31, 2020: No equity transactions occurred in the period ended March 31, 2020 |
Note 6 - Going Concern
Note 6 - Going Concern | 12 Months Ended |
Mar. 31, 2020 | |
Notes | |
Note 6 - Going Concern | Note 6 GOING CONCERN The Company generated minimal revenues prior to the current fiscal year. No revenues were generated for the fiscal year ended March 31, 2020. This level of revenues is not sufficient for the Company to meet its future obligations. This factor raises substantial doubt about the Companys ability to continue as a going concern. The Company is in the midst of the Dutro litigation and other litigation. The litigation has hindered the operation of the Company and have set back the ability to raise capital and develop ongoing business in order to continue forward as a going concern. It is expected that litigation will continue to hinder the ability to continue as a going concern through the end of the fiscal year ended March 31, 2021. |
Note 7 - Income Tax
Note 7 - Income Tax | 12 Months Ended |
Mar. 31, 2020 | |
Notes | |
Note 7 - Income Tax | Note 7 - 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. Net deferred tax assets /liabilities consist of the following components as of March 31, 2020 and 2019: March 31, 2020 March 31, 2019 Deferred tax assets: NOL Carryover $ 433,762 $ 433,761 Related Party Accruals 3,341,471 2,878,532 Accrued Expenses 1,179,521 1,112,738 Deferred tax liabilities Depreciation - - Valuation allowance (4,954,754) (4,425,031) Net deferred tax asset $ - $ - The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rate to pretax income from continuing operations for the years ended March 31, 2020 and 2019 due to the following: March 31, 2020 March 31, 2019 Book Income $ (529,723) $ (509,099) Depreciation - - Meals & Entertainment - - Stock for Services & Finance 0 - - Related Party Accruals 462,940 424,228 Accrued Expenses 66,783 84,872 Impairment Loss - - Valuation Allowance - (1) $ - $ - At March 31, 2020, the Company had net operating loss carryforwards of approximately $1,792,392 that may be offset against future taxable income from the year 2020 through 2039. No tax benefit has been reported in the March 31, 2020 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. 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 March 31, 2020 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 2016. |
Note 8 - Fair Value Disclosures
Note 8 - Fair Value Disclosures | 12 Months Ended |
Mar. 31, 2020 | |
Notes | |
Note 8 - Fair Value Disclosures | Note 8 FAIR VALUE OF FINANCIAL INSTRUMENTS The Companys financial instruments consist of cash and cash equivalents, payables, and notes payable. The carrying amount of cash and cash equivalents and payables approximates fair value because of the short-term nature of these items. The carrying amount of the notes payable approximates fair value as the individual borrowings bear interest at rates that approximate market interest rates for similar debt instruments. |
Note 9 - Subsequent Events
Note 9 - Subsequent Events | 12 Months Ended |
Mar. 31, 2020 | |
Notes | |
Note 9 - Subsequent Events | Note 9 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) for 5 days between November 6, 2020 through November 13, 2020. A jury trial was requested. The Court held a telephonic hearing on May 13, 2020 on a motion to strike the jury demand. The Court ruled that all claims and counterclaims between Sector 10 and Dutro Company will be heard by the judge in a bench trial and not by a jury. All claims, however, between Sector 10 and Lee Allen/Reality Engineering will be heard by a jury. 2) A position paper must be submitted counsel by June 1, 2020 to determine whether to seek one trial or two trials. The Companys Counsel is reviewing various pre-trial legal options and preparing for trial scheduled to begin in November 2020. 3) 4) |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies: Basis of Presentation and Consolidation (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation 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. |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies: Estimates (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Estimates | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents It is the Companys policy to invest cash with financial institutions judged to be highly secure. For purposes of the statement of cash flow, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies: Accounts Receivable (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Accounts Receivable | Accounts Receivable The Company extends credit to its customers in the normal course of business. The Company reviews outstanding receivables, and provides for estimated losses through an allowance for doubtful accounts. In evaluating the level of established loss reserves, the Company makes judgments regarding its customers ability to make required payments, economic events and other factors. As the financial condition of these parties change, circumstances develop or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. The Company has no sales and no receivables outstanding for the fiscal year ended March 31, 2020. |
Note 2 - Summary of Significa_6
Note 2 - Summary of Significant Accounting Policies: Inventory (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Inventory | Inventory Inventories are valued at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. Due to pending litigation, there was no sales activity and no inventory on hand at the fiscal year ended March 31, 2020. Due to the impact of the extended litigation, the inventory has been recorded at no value as of March 31, 2020. Therefore, for the fiscal year ended March 31, 2020, all inventory and the related reserve was $0. |
Note 2 - Summary of Significa_7
Note 2 - Summary of Significant Accounting Policies: Property and Equipment and Depreciation (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Property and Equipment and Depreciation | Property and Equipment and Depreciation Property and equipment are carried at historical cost less accumulated depreciation. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. The cost and the related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The Company provides for depreciation of property and equipment principally by use of the straight-line method for financial reporting purposes. Depreciation begins in the month that depreciable assets are placed in service. The only assets currently placed in service are computers and furniture and equipment. Computers and depreciable equipment are estimated to have a useful life of 5 years. Depreciation is computed based on a straight line basis over the estimated useful life. All property and equipment is fully depreciated at the end of the fiscal year end. |
Note 2 - Summary of Significa_8
Note 2 - Summary of Significant Accounting Policies: Debt, Policy (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Debt, Policy | Notes Payable The Company received funding from outside investors. The Company is currently in litigation and any additional funding (if any) will be used for legal fees. No additional operational funding is expected until at least during the fiscal year ended March 31, 2021. |
Note 2 - Summary of Significa_9
Note 2 - Summary of Significant Accounting Policies: Contingencies (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Contingencies | Contingencies We account for loss contingencies in accordance with ASC 450, "Accounting for Contingencies." Accordingly, when management determines that it is probable that an asset has been impaired or a liability has been incurred, we accrue our best estimate of the loss if it can be reasonably estimated. Our legal costs related to litigation are expensed as incurred. |
Note 2 - Summary of Signific_10
Note 2 - Summary of Significant Accounting Policies: Income Tax (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Income Tax | Income Tax Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss, 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 basis. 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 the tax laws and rates on the date of enactment. |
Note 2 - Summary of Signific_11
Note 2 - Summary of Significant Accounting Policies: Loss Per Share (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Loss Per Share | Loss Per Share In accordance with ASC 280, "Earnings Per Share," we report basic loss per common share, which excludes the effect of potentially dilutive securities, and diluted loss per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. |
Note 2 - Summary of Signific_12
Note 2 - Summary of Significant Accounting Policies: Share-based Compensation (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Share-based Compensation | Share-Based Compensation We may, from time to time, issue common stock, stock options or common stock warrants to acquire services or goods from non-employees. Common stock, stock options and common stock warrants issued to persons other than employees or directors are recorded on the basis of their fair value. |
Note 2 - Summary of Signific_13
Note 2 - Summary of Significant Accounting Policies: Long Lived Assets (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Long Lived Assets | Long Lived Assets The Company maintains a Long Lived Asset which is reviewed regularly for impairment. In its review for impairment, the Company prepares estimates of future cash flows to assist in the determination of the assets recoverability. If there is an issue regarding recoverability, an independent valuation will be obtained to determine any required adjustment for impairment The estimates used in determining for recoverability are updated by the Company on a regular basis to provide guidance for managements quarterly and annual reporting. |
Note 2 - Summary of Signific_14
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Revenue Recognition | Revenue Recognition The Company had no sales activity during the current fiscal year ended March 31, 2020. The Company records sales of its products based upon the terms of the contract; when title passes to its customers; and, when collectability is reasonably assured. |
Note 2 - Summary of Signific_15
Note 2 - Summary of Significant Accounting Policies: Impact of Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Policies | |
Impact of Recent Accounting Pronouncements | 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 4 - Notes Payable_ Interes
Note 4 - Notes Payable: Interest Expense Disclosure (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Tables/Schedules | |
Interest Expense Disclosure | Summary of Interest and Notes Payable Interest expense March 31, 2020 March 31, 2019 Interest Johnson 10,394 10,394 Interest Dutro Group 36,225 36,225 Interest - Employee Group 460,818 408,019 Interest Other Notes 18,720 18,720 Total interest expense $ 526,157 $ 473,358 |
Note 4 - Notes Payable_ Schedul
Note 4 - Notes Payable: Schedule Of Debt Table TextBlock (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Tables/Schedules | |
Schedule Of Debt Table TextBlock | Note Payable Balance March 31, 2020 March 31, 2019 Edward Johnson Johnson Financing $ 86,615 $ 86,615 Various Individuals Other Notes 169,000 169,000 Asher Enterprises, Inc. Other Notes 65,000 65,000 Vicki Davis - Dutro Group 168,000 168,000 William Dutro Dutro Group 65,000 65,000 Dutro Company Dutro Group 250,000 250,000 Total Note Payable short term $ 803,615 $ 803,615 Total Note Payable long term - $ - Total Notes Payable $ 803,615 $ 803,615 |
Note 4 - Notes Payable_ Sched_2
Note 4 - Notes Payable: Schedule of maturities of notes payable (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Tables/Schedules | |
Schedule of maturities of notes payable | Fiscal Year Amount March 31, 2020 803,615 March 31, 2021 - March 31, 2022 - Total $ 803,615 |
Note 7 - Income Tax_ Schedule o
Note 7 - Income Tax: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | March 31, 2020 March 31, 2019 Deferred tax assets: NOL Carryover $ 433,762 $ 433,761 Related Party Accruals 3,341,471 2,878,532 Accrued Expenses 1,179,521 1,112,738 Deferred tax liabilities Depreciation - - Valuation allowance (4,954,754) (4,425,031) Net deferred tax asset $ - $ - |
Note 7 - Income Tax_ Schedule_2
Note 7 - Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | March 31, 2020 March 31, 2019 Book Income $ (529,723) $ (509,099) Depreciation - - Meals & Entertainment - - Stock for Services & Finance 0 - - Related Party Accruals 462,940 424,228 Accrued Expenses 66,783 84,872 Impairment Loss - - Valuation Allowance - (1) $ - $ - |
Note 2 - Summary of Signific_16
Note 2 - Summary of Significant Accounting Policies: Inventory (Details) | Mar. 31, 2020USD ($) |
Details | |
Inventory Valuation Reserves | $ 0 |
Note 3 - Inventory (Details)
Note 3 - Inventory (Details) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Details | ||
Inventory, net | $ 0 | $ 0 |
Note 4 - Notes Payable_ Johnson
Note 4 - Notes Payable: Johnson Financing (Details) - Edward Johnson - Johnson Financing | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Accrued Interest | $ 96,473 |
Interest Accrued | $ 10,394 |
Note 4 - Notes Payable_ Dutro F
Note 4 - Notes Payable: Dutro Financing (Details) | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Contingent Reserve Interest Accrued | $ 36,225 |
Total Contingent Reserve -Interest | 370,079 |
Dutro Company - Dutro Group | |
Contingent Reserve Interest Accrued | 18,750 |
Total Contingent Reserve -Interest | 199,698 |
Vicki Davis - Dutro Group | |
Contingent Reserve Interest Accrued | 12,600 |
Total Contingent Reserve -Interest | 122,850 |
William Dutro - Dutro Group | |
Contingent Reserve Interest Accrued | 4,875 |
Total Contingent Reserve -Interest | $ 47,531 |
Note 4 - Notes Payable_ Employe
Note 4 - Notes Payable: Employee Agreement (Details) - Employee Group | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Accrued Interest | $ 2,357,414 |
Accrual of interest on unpaid wages and other compensation | $ 460,818 |
Note 4 - Notes Payable_ Other N
Note 4 - Notes Payable: Other Notes (Details) | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Individuals - Short Term | |
Accrued Interest | $ 80,250 |
Debt Instrument, Increase, Accrued Interest | 13,520 |
Asher Enterprises Inc - Other Notes | |
Interest Accrued | $ 5,200 |
Note 4 - Notes Payable_ Inter_2
Note 4 - Notes Payable: Interest Expense Disclosure (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest Expense | $ 526,157 | $ 473,358 |
Edward Johnson - Johnson Financing | ||
Interest Expense | 10,394 | 10,394 |
Dutro Company - Dutro Group | ||
Interest Expense | 36,225 | 36,225 |
Employee Group | ||
Interest Expense | 460,818 | 408,019 |
Other Notes | ||
Interest Expense | $ 18,720 | $ 18,720 |
Note 4 - Notes Payable_ Sched_3
Note 4 - Notes Payable: Schedule Of Debt Table TextBlock (Details) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Note payable - short term | $ 803,615 | $ 803,615 |
Note payable - long term | 0 | 0 |
Notes Payable | 803,615 | 803,615 |
Edward Johnson - Johnson Financing | ||
Note payable - short term | 86,615 | 86,615 |
Other | ||
Note payable - short term | 169,000 | 169,000 |
Asher Enterprises Inc - Other Notes | ||
Note payable - short term | 65,000 | 65,000 |
Vicki Davis - Dutro Group | ||
Note payable - long term | 168,000 | 168,000 |
William Dutro - Dutro Group | ||
Note payable - long term | 65,000 | 65,000 |
Dutro Company - Dutro Group | ||
Note payable - long term | $ 250,000 | $ 250,000 |
Note 4 - Notes Payable_ Sched_4
Note 4 - Notes Payable: Schedule of maturities of notes payable (Details) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Details | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | $ 803,615 | |
Long Term Debt Maturities Repayments Of Principal In Year Three | 0 | |
Long Term Debt Maturities Repayments Of Principal In Year Four | 0 | |
Notes Payable | $ 803,615 | $ 803,615 |
Note 7 - Income Tax_ Schedule_3
Note 7 - Income Tax: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Details | ||
NOL Carryover | $ 433,762 | $ 433,761 |
Related Party Accruals | 3,341,471 | 2,878,532 |
Accrued Expenses | 1,179,521 | 1,112,738 |
Deferred Tax Liabilities Depreciation | 0 | 0 |
Deferred Tax Assets, Valuation Allowance | (4,954,754) | (4,425,031) |
Deferred Tax Assets, Net | $ 0 | $ 0 |
Note 7 - Income Tax_ Schedule_4
Note 7 - Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Details | ||
Book Income | $ (529,723) | $ (509,099) |
Depreciation | 0 | 0 |
Meals and Entertainment | $ 0 | $ 0 |
Stock for Services and Finance | 0.00% | 0.00% |
Related Party Accruals | $ 462,940 | $ 424,228 |
Accrued Expenses | 66,783 | 84,872 |
Impairment Loss | 0 | 0 |
Valuation Allowance | $ 0 | $ (1) |
Note 7 - Income Tax (Details)
Note 7 - Income Tax (Details) | Mar. 31, 2020USD ($) |
Details | |
Operating Loss Carryforwards | $ 1,792,392 |