Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Summary of Significant Accounting Policies: Implementation of ASU 2015-03 (Policies)

Note 2 - Summary of Significant Accounting Policies: Implementation of ASU 2015-03 (Policies)

9 Months Ended

Sep. 30, 2018

Implementation of ASU 2015-03

Implementation of ASU 2015-03

The FASB has issued Accounting Standards Update (ASU) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” as part of its simplification initiative. The ASU changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense.

For public business entities, the guidance in the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Although the Company adopted ASU-2015-03 in the first quarter of 2016, the Company discovered during the quarter ended June 30, 2018 that ASU-2015-03 was improperly implemented as it pertains to the classification of deferred finance costs (debt issuance costs) on its balance sheet.

The balance sheet below illustrates the presentation of the December 31, 2017 balance sheet as if ASU 2015-03 had been implemented properly:

CONSOLIDATED BALANCE SHEET
		As Originally Reported		Effect of Change			As Revised
		December 31, 2017		December 31, 2017			December 31, 2017
ASSETS

CURRENT ASSETS:
Cash	$	317,135	$	-		$	317,135
Prepaid Expenses		15,143		-			15,143
Total Current Assets		332,278		-			332,278

PROPERTY AND EQUIPMENT, NET		-

OTHER ASSETS
Deferred Finance Costs, net		3,877,801		(3,877,801)	(A)		-
TOTAL ASSETS	$	4,210,079	$	(3,877,801)		$	332,278

		December 31, 2017		December 31, 2017			December 31, 2017
LIABILITIES AND STOCKHOLDERS’ DEFICIT

CURRENT LIABILITIES:
Accounts Payable	$	541,710	$	-		$	541,710
Due to Related Party		475,834		-			475,834
Loans Payable, Related Parties		394,019		-			394,019
Convertible Debentures Payable, less unamortized discounts and debt issuance costs of $0 and $0 at December 31, 2017- Originally, and December 31, 2017 - As Revised, respectively		1,490,000		-			1,490,000
Accrued Interest		1,649,240		-			1,649,240
Accrued Liabilities – Other		10,000		-			10,000
Total Current Liabilities		4,560,803		-			4,560,803
LONG TERM LIABILITIES:
Convertible Debentures Payable, less unamortized discounts and debt issuance costs of $458,072 and $4,335,873 at December 31, 2017- Originally, and December 31, 2017 - As Revised, respectively		15,953,768		(3,877,801)	(B)		12,075,967
Total Long Term Liabilities		15,953,768		(3,877,801)			12,075,967

TOTAL LIABILITIES		20,514,571		(3,877,801)			16,636,770

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ DEFICIT:
Common stock, $.001 par value, 700,000,000 shares authorized; 168,500,743 and 141,106,061 issued and outstanding at September 30, 2018 and December 31, 2017		141,107		-			141,107
Additional Paid-In Capital		47,366,814		-			47,366,814
Accumulated deficit		(63,812,413)		-			(63,812,413)
Total Stockholders’ Deficit		(16,304,492)		-			(16,304,492)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	4,210,079	$	(3,877,801)		$	332,278

(A) Total Assets decreased in the amount of $3,877,801 as a result of the reclassification of net deferred finance costs (debt issuance costs).

(B) Long Term and Total Liabilities decreased in the amount of $3,877,801 as a result of the reclassification of net deferred finance costs (debt issuance costs) as a direct deduction of the amount of the related convertible debt. The revisions related to the implementation of ASU 2015-03 did not have an effect on any previously reported net losses, working capital or stockholders’ deficit.