v3.19.3.a.u2
Summary of Significant Accounting Policies (Policies)
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9 Months Ended |
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| Accounting Policies [Abstract] |
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| Revenue Recognition |
Revenue Recognition
The Company recognizes revenue from sales of
consumer products to wholesalers, mass merchandisers and retail stores . In May 2014, the FASB issued Accounting Standards Update
No. 2014-09 (Topic 606) “Revenue from Contracts with Customers.” Topic 606 supersedes the revenue recognition requirements
in Topic 605 “Revenue Recognition” (Topic 605). The new standard’s core principal is that an entity will recognize
revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring good
or services to a customer. The principals in the standard are applied in five steps: 1) Identify the contract(s) with a customer;
2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price
to the performance obligations in the contract; and 5) Recognize revenue when (or as) the entity satisfies a performance obligation.
ASU No. 2014-09, Revenue from Contracts with Customers ("Topic
606"), became effective for us on January 1, 2018. We applied the "modified retrospective" transition method for
open contracts for the implementation of Topic 606. As sales are and have been primarily through distributors, and we have no significant
post delivery obligations, this did not result in a material recognition of revenue on our accompanying consolidated financial
statements for the
cumulative impact of applying this new standard.
We made no adjustments to our previously-reported total revenues, as those periods continue to be presented in accordance with
our historical accounting practices under Topic 605, Revenue Recognition.
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| Stock-Based Compensation |
Stock-Based Compensation
The Company records stock-based compensation
in accordance with FASB ASC Topic 718, Compensation – Stock Compensation . FASB ASC Topic 718 requires companies to
measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over
the employee's requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock
options and other equity-based compensation issued to employees and non-employees. There were 8,193,750 and 8,193,750 options outstanding
as of September 30, 2019 and December 31, 2018, respectively.
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| Basic and Diluted Earnings (loss) Per Share |
Basic and Diluted Earnings (Loss) Per Share
Earnings per share is calculated in accordance
with ASC Topic 260, Earnings Per Share . Basic earnings per share ("EPS") is based on the weighted average number
of common shares outstanding. Diluted EPS is based on the assumption that all dilutive convertible shares and stock warrants were
converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are
assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby
were used to purchase common stock at the average market price during the period. The following potentially-dilutive shares were
excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.
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September 30, | |
September 30, |
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2019 | |
2018 |
| Options | |
| 8,193,750 | | |
| 8,193,750 | |
| Warrants | |
| 5,000,000 | | |
| - | |
| Convertible notes | |
| 1,599,176,689 | | |
| 154,137,853 | |
| Total | |
| 1,612,370,439 | | |
| 162,331,603 | |
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| Reclassification |
Reclassification
Certain amounts in the prior period financial
statements were reclassified to conform to the current period presentation. These reclassifications had no effect on reported losses.
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| Recent Accounting Pronouncements |
Recent Accounting Pronouncements
In June 2018, the FASB issued Accounting Standards
Update (“ASU”) ASU 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,
which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the
guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective
on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Company’s
consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02,
Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet
and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December
15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The adoption
of this ASU did not have a material impact on the Company’s consolidated financial statements as the Company did not have
any leases covered by this new ASU.
Management does not believe that any recently
issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new
accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.
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| X |
- References
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- DefinitionDisclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.
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- DefinitionDisclosure of accounting policy pertaining to new accounting pronouncements that may impact the entity's financial reporting. Includes, but is not limited to, quantification of the expected or actual impact.
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- DefinitionDisclosure of accounting policy for reclassifications that affects the comparability of the financial statements.
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- DefinitionDisclosure of accounting policy for revenue. Includes revenue from contract with customer and from other sources.
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- DefinitionDisclosure of accounting policy for award granted to director under share-based payment arrangement. Includes, but is not limited to, methodology and assumption used in measuring cost.
| Name: |
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