Annual report pursuant to Section 13 and 15(d)

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.10.0.1
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The calculation of basic and diluted net loss per share for the years ended December 31, 2018 and 2017 are as follows:

   

2018

   

2017

 

Basic Net Loss Per Share:

               

Numerator:

               

Net loss

  $ (5,559,700

)

  $ (1,813,752

)

Denominator:

               

Weighted-average common shares outstanding

    156,878,353       130,511,894  
                 

Basic net loss per share

  $ (0.04

)

  $ (0.01 )
                 

Diluted Net Loss Per Share:

               

Numerator:

               

Net loss

  $ (5,559,700

)

  $ (1,813,752 )

Gains on fair value and interest expense on convertible debt

    -       (2,133,640

)

Diluted net loss

  $ (5,559,700

)

  $ (3,947,392

)

Denominator:

               

Weighted-average common shares outstanding

    156,878,353       130,511,894  

Common stock warrants

    -       -  

Convertible debt

    -       104,925,648  

Weighted average shares used in computing diluted net loss per share

    156,878,353       235,437,542  
                 

Diluted net loss per share

  $ (0.04

)

  $ (0.02

)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
The following table summarizes the potential shares of common stock that were excluded from the computation of diluted net loss per share for the years ended December 31, 2018 and 2017 as such shares would have had an anti-dilutive effect:

   

2018

   

2017

 

Common stock warrants

    7,146,616       7,871,555  

Convertible notes payable

    120,187,899       -  

Total

    127,334,515       7,781,555  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Net deferred tax assets consist of the following components as of December 31, 2018 and 2017:

   

2018

   

2017

 

Deferred tax assets:

               

Net operating loss carryforward

  $ 7,485,004     $ 6,692,117  

Valuation allowance

    (7,485,004

)

    (6,692,117

)

    $ -     $ -  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The federal income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate of 21% to pretax income from continuing operations for the years ended December 31, 2018 and 2017 due to the following:

   

2018

   

2017

 

Pre-tax book loss

  $ (1,167,537

)

  $ (380,888

)

Meals

    830       1,576  

Common stock, options and warrants issued for services and debt discount

    116,805       250,887  

Debt discount amortization

    324,662       278,145  

Gain on debt settlement

    (67,647

)

    -  

Loss on derivative liability

    -       (970,382

)

Valuation allowance

    792,887       820,662  
    $ -     $ -