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Altavoz Entertainment, Inc. – IPO: ‘S-1’ on 1/17/17 – ‘EX-101.INS’

On:  Tuesday, 1/17/17, at 5:30pm ET   ·   Accession #:  721748-17-33   ·   File #:  333-215589

Previous ‘S-1’:  None   ·   Next:  ‘S-1/A’ on 12/19/17   ·   Latest:  ‘S-1/A’ on 1/25/18

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 1/17/17  Altavoz Entertainment, Inc.       S-1                   36:61M                                    Pacific Stock Tra… Co/TA

Initial Public Offering (IPO):  Registration Statement (General Form)   —   Form S-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: S-1         Registration Statement (General Form)               HTML    524K 
 2: EX-3.1      Articles of Incorporation/Organization or Bylaws    HTML     14K 
 3: EX-3.2      Articles of Incorporation/Organization or Bylaws    HTML     11K 
 4: EX-3.3      Articles of Incorporation/Organization or Bylaws    HTML     24K 
 5: EX-3.4      Articles of Incorporation/Organization or Bylaws    HTML     18K 
 6: EX-10.1     Material Contract                                   HTML     13K 
14: EX-21.1     List of Subsidiaries                                HTML     11K 
 7: EX-23.2     Consent of Experts or Counsel                       HTML     10K 
15: R1          Document and Entity Information                     HTML     33K 
16: R2          Balance Sheets                                      HTML     68K 
17: R3          Balance Sheets (Parenthetical)                      HTML     31K 
18: R4          Statements of Operations                            HTML     69K 
19: R5          Shareholders Equity                                 HTML     33K 
20: R6          Statements of Cash Flows                            HTML     62K 
21: R7          1. Summary of Significant Accounting Policies       HTML    105K 
22: R8          2. Related Party Transactions                       HTML     30K 
23: R9          3. Income Taxes                                     HTML     58K 
24: R10         1. Summary of Significant Accounting Policies       HTML    145K 
                (Policies)                                                       
25: R11         1. Summary of Significant Accounting Policies       HTML     28K 
                (Tables)                                                         
26: R12         2. Related Party Transactions (Tables)              HTML     21K 
27: R13         3. Income Taxes (Tables)                            HTML     48K 
28: R14         1. Summary of Significant Accounting Policies       HTML     31K 
                (Details 1)                                                      
29: R15         1. Summary of Significant Accounting Policies       HTML     18K 
                (Details 2)                                                      
30: R16         2. Related Party Transactions (Details)             HTML     17K 
31: R17         3. Income Taxes (Details 1)                         HTML     23K 
32: R18         3. Income Taxes (Details 2)                         HTML     25K 
33: R19         3. Income Taxes (Details 3)                         HTML     22K 
35: XML         IDEA XML File -- Filing Summary                      XML     49K 
34: EXCEL       IDEA Workbook of Financial Reports                  XLSX     32K 
 8: EX-101.INS  XBRL Instance -- altavozcom-20160930                 XML    553K 
 9: EX-101.CAL  XBRL Calculations -- altavozcom-20160930_cal         XML     86K 
10: EX-101.DEF  XBRL Definitions -- altavozcom-20160930_def          XML     43K 
11: EX-101.LAB  XBRL Labels -- altavozcom-20160930_lab               XML    311K 
12: EX-101.PRE  XBRL Presentations -- altavozcom-20160930_pre        XML    207K 
13: EX-101.SCH  XBRL Schema -- altavozcom-20160930                   XSD     56K 
36: ZIP         XBRL Zipped Folder -- 0000721748-17-000033-xbrl      Zip     57K 


‘EX-101.INS’   —   XBRL Instance — altavozcom-20160930


This Exhibit is an XBRL XML File.


                                                                                                                                                                                
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<dei:DocumentType contextRef="From2016-01-01to2016-09-30"> S-1 </dei:DocumentType>
<dei:DocumentPeriodEndDate contextRef="From2016-01-01to2016-09-30"> 2016-09-30 </dei:DocumentPeriodEndDate>
<dei:AmendmentFlag contextRef="From2016-01-01to2016-09-30"> false </dei:AmendmentFlag>
<dei:CurrentFiscalYearEndDate contextRef="From2016-01-01to2016-09-30"> --12-31 </dei:CurrentFiscalYearEndDate>
<dei:EntityWellKnownSeasonedIssuer contextRef="From2016-01-01to2016-09-30"> No </dei:EntityWellKnownSeasonedIssuer>
<dei:EntityVoluntaryFilers contextRef="From2016-01-01to2016-09-30"> No </dei:EntityVoluntaryFilers>
<dei:DocumentFiscalYearFocus contextRef="From2016-01-01to2016-09-30"> 2016 </dei:DocumentFiscalYearFocus>
<dei:EntityCurrentReportingStatus contextRef="From2016-01-01to2016-09-30"> Yes </dei:EntityCurrentReportingStatus>
<dei:EntityFilerCategory contextRef="From2016-01-01to2016-09-30"> Smaller Reporting Company </dei:EntityFilerCategory>
<us-gaap:RelatedPartyTransactionsDisclosureTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="margin: 0pt"></p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 8px"> </td> <td style="width: 18px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif"><b>2.</b></font></td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>RELATED PARTY<font style="letter-spacing: -0.95pt"> </font>TRANSACTIONS</b></font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Related Party Borrowings</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Related party transactions can arise with the Company’s officers and directors and their family members and affiliates. Except as disclosed below, no related party transactions have been entered into during the year which might reasonably affect any decisions made by the users of these consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Transactions with directors other than compensation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine month period ended September 30, 2016 and the year ended December 31, 2015, the Company has received advances from related parties and directors as<font style="letter-spacing: -0.5pt"> </font>follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; padding-left: 1.75pt"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; padding-left: 1.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Stockholder Advances</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">139,200</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">167,500</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Advances from Affiliate</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">141,200</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">169,500</font></td> <td style="line-height: 107%"> </td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The use of the proceeds from these borrowings has been to maintain the operations of the Company while seeking additional funding to grow marketing and operations of the Company. These advances have not yet been documented, but will be documented and will carry with them market rates of interest and terms.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the two nine month periods ending September 30, 2016 and September 30, 2015, the Company has not been a party to any other material transaction, or proposed transactions, in which any member of the key management personnel (including directors, any other executive officer, senior manager, any spouse or relative of any of the foregoing, or any relative of such spouse), had or was to have a direct or indirect material interest.</p> <p style="margin: 0pt"> </p>
</us-gaap:RelatedPartyTransactionsDisclosureTextBlock>
<us-gaap:RelatedPartyTransactionsDisclosureTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 12pt/normal Times New Roman, Times, Serif; margin: 0.05pt 0 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 8px"> </td> <td style="width: 18px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif"><b>2.</b></font></td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>RELATED PARTY TRANSACTIONS</b></font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Related Party Borrowings</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Related party transactions can arise with the Company’s officers and directors and their family members and affiliates. Except as disclosed below, no related party transactions have been entered into during the year which might reasonably affect any decisions made by the users of these consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Transactions with directors other than compensation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the two years ended December 31, 2015 and December 31, 2014, the Company has received advances from related parties and directors as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-left: 1.75pt; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; padding-left: 1.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Stockholder Advances</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">167,500</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">110,000</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Advances from Affiliate</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">169,500</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">110,000</font></td> <td style="line-height: 107%"> </td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>  </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The use of the proceeds from these borrowings has been to maintain the operations of the Company while seeking additional funding to grow marketing and operations of the Company. These advances have not yet been documented, but will be documented and will carry with them market rates of interest and terms.</p> <p style="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the two years ending December 31, 2015 and December 31, 2014, the Company has not been a party to any other material transaction, or proposed transactions, in which any member of the key management personnel (including directors, any other executive officer, senior manager, any spouse or relative of any of the foregoing, or any relative of such spouse), had or was to have a direct or indirect material interest.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p>
</us-gaap:RelatedPartyTransactionsDisclosureTextBlock>
<us-gaap:IncomeTaxDisclosureTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="margin: 0pt"></p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 8px"> </td> <td style="width: 15px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif"><b>3.</b></font></td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>INCOME TAXES</b></font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Income taxes are accounted for based upon an asset and liability approach. Accordingly, deferred tax assets and liabilities arise from the difference between the tax basis of an asset or liability and its reported amount in the financial statements. Deferred tax amounts are determined using the tax rates expected to be in effect when the taxes will actually be paid or refunds received, as provided under currently enacted tax law. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable, respectively, for the period plus or minus the change in deferred tax assets and liabilities during the<font style="letter-spacing: -1pt"> </font>period.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounting guidance requires the recognition of a financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company believes its income tax filing positions and deductions will be sustained upon examination and accordingly, no reserves, or related accruals for interest and penalties have been recorded at September 30, 2016 and 2015. The Company recognizes interest and penalties on unrecognized tax benefits as well as interest received from favorable tax settlements within income tax<font style="letter-spacing: -0.35pt"> </font>expense.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The components of income tax expense for the nine months ended September 30, 2016 and 2015 consist of the following:</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Current tax provision</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,197</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax provision</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(66,821</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(30,447</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">66,821</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">30,447</font></td> <td style="line-height: 107%"> </td></tr> <tr style="background-color: white"> <td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total income tax provision</font></td> <td style="vertical-align: bottom; line-height: 107%"> </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500   </font></td> <td style="vertical-align: bottom; padding-bottom: 1pt"> </td> <td style="vertical-align: bottom; padding-bottom: 1pt"> </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,197</font></td> <td> </td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Reconciliations between the statutory rate and the effective tax rate for the nine months ended September 30, 2016 and 2015 consist as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><b> </b></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Federal statutory tax rate</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34.0%)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34.0%)</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">State taxes, net of federal benefit</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.3%)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2.9%)</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Permanent differences</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expiration of Stock Options</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 62%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 13%; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34.00</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 13%; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34.00</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Effective tax rate</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.3</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2.9</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Significant components of the Company's estimated deferred tax assets and liabilities as of September 30, 2016 and December 31, 2015 are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax assets:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net operating loss carryforwards</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">($</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">144,715</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">($</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 60.75pt; text-indent: -60pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax asset</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">144,715</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 60.75pt; text-indent: -60pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(</font></td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">144,715</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(</font></td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="line-height: 107%"> </td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">  </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2016, we had approximately $425,633 of federal net operating loss carry forwards. These carry forwards, if not used, will begin to expire in 2034. Future utilization of our net operating loss carry forwards is subject to certain limitations under Section 382 of the Internal Revenue Code. The Company is not current in filing both federal and state tax returns. These net operating amounts are estimates.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">We provide for a valuation allowance when it is more likely than not that we will not realize a portion of the deferred tax assets. We have established a valuation allowance against our net deferred tax asset due to the uncertainty that enough taxable income will be generated in those taxing jurisdictions to utilize the assets. Therefore, we have not reflected any benefit of such deferred tax assets in the accompanying financial<font style="letter-spacing: -0.2pt"> </font>statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">We reviewed all income tax positions taken or that we expect to be taken for all open years and determined that our income tax positions are appropriately stated and supported for all open years. The Company is subject to U.S. federal income tax examinations by tax authorities for years after 2014 due to unexpired net operating loss carryforwards originating in and subsequent to that year. The Company may be subject to income tax examinations for the various taxing authorities which vary by jurisdiction.</p> <p style="margin: 0pt"> </p>
</us-gaap:IncomeTaxDisclosureTextBlock>
<us-gaap:IncomeTaxDisclosureTextBlock contextRef="From2015-01-01to2015-12-31">
<table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 8px"> </td> <td style="width: 15px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif"><b>3.</b></font></td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>INCOME TAXES</b></font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Income taxes are accounted for based upon an asset and liability approach. Accordingly, deferred tax assets and liabilities arise from the difference between the tax basis of an asset or liability and its reported amount in the financial statements. Deferred tax amounts are determined using the tax rates expected to be in effect when the taxes will actually be paid or refunds received, as provided under currently enacted tax law. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable, respectively, for the period plus or minus the change in deferred tax assets and liabilities during the period.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounting guidance requires the recognition of a financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company believes its income tax filing positions and deductions will be sustained upon examination and accordingly, no reserves, or related accruals for interest and penalties have been recorded at December 31, 2015 and 2014. The Company recognizes interest and penalties on unrecognized tax benefits as well as interest received from favorable tax settlements within income tax expense.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The components of income tax expense for the years ended December 31, 2015 and 2014 consist of the following:</p> <p style="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr> <td style="text-align: center; line-height: 107%"> </td> <td style="text-align: center; line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="text-align: center; line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Current tax provision</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,197</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,528</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax provision</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(30,447</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(47,447</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance </font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">30,447</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,447</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total income tax provision</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,197</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$1,528</font></td> <td> </td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Reconciliations between the statutory rate and the effective tax rate for the years ended December 31, 2015 and 2014 consist as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Federal statutory tax rate</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34.0</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%)</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34.0</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">State taxes, net of federal benefit</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1.4</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1.1</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%)</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr> <td style="width: 100%; text-align: center; line-height: 107%"> </td></tr> <tr> <td style="text-align: center; line-height: 107%"> </td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><b> </b></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Permanent differences</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expiration of Stock Options</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 62%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 13%; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34.00</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 13%; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34.00</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Effective tax rate</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1.40</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1.10</font></td> <td style="line-height: 107%"><font style="font-family: Times New Roman, Times, Serif">)%</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Significant components of the Company's estimated deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows:</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax assets:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net operating loss carryforwards</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">($</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">($</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,447</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 60.75pt; text-indent: -60pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax asset</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,447</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 60.75pt; text-indent: -60pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(</font></td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(</font></td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,447</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font><font style="font-family: Times New Roman, Times, Serif"> </font></td> <td style="line-height: 107%"> </td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">  </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2015, we had approximately $229,100 of federal net operating loss carry forwards. These carry forwards, if not used, will begin to expire in 2034. Future utilization of our net operating loss carry forwards is subject to certain limitations under Section 382 of the Internal Revenue Code. The Company is not current in filing both federal and state tax returns. These net operating amounts are estimates.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">We provide for a valuation allowance when it is more likely than not that we will not realize a portion of the deferred tax assets. We have established a valuation allowance against our net deferred tax asset due to the uncertainty that enough taxable income will be generated in those taxing jurisdictions to utilize the assets. Therefore, we have not reflected any benefit of such deferred tax assets in the accompanying financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">We reviewed all income tax positions taken or that we expect to be taken for all open years and determined that our income tax positions are appropriately stated and supported for all open years. The Company is subject to U.S. federal income tax examinations by tax authorities for years after 2014 due to unexpired net operating loss carryforwards originating in and subsequent to that year. The Company may be subject to income tax examinations for the various taxing authorities which vary by jurisdiction.</p>
</us-gaap:IncomeTaxDisclosureTextBlock>
<us-gaap:SignificantAccountingPoliciesTextBlock contextRef="From2016-01-01to2016-09-30">
<table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 7px"> </td> <td style="width: 18px; padding-top: 0.05in; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif"><b>1.</b></font></td> <td style="padding-top: 0.05in; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>SUMMARY OF SIGNIFICANT ACCOUNTING<font style="letter-spacing: -0.35pt"> </font>POLICIES</b></font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Nature of operations and basis of presentation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.45pt 0 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Altavoz Entertainment, Inc. and its subsidiaries (the Company), is a Nevada corporation principally engaged in the operation of both physical and digital distribution of music. Distribution services are provided both online and through distribution as a service (“DaaS”). Customers include both music retailers and other music distribution companies.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 3, 2000, the Company was originally formed as Saveyoutime.com, Inc. under the laws of Nevada. Subsequently, on April 10, 2003, the Company filed a certificate of Merger with the Nevada Secretary of State reporting our merger with Hesperia Holding Corp. The Company then changed its name to Hesperia Holding, Inc. During 2005, the Company discontinued the operations of two subsidiaries and began pursuing acquisitions related to the film and media<font style="letter-spacing: -1.05pt"> </font>industries.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2009, the Company entered into an agreement (the “HWP Acquisition”) to acquire one hundred percent (100%) ownership of Hot Web Properties, Inc. (“HWP”). Under the terms of the HWP Acquisition the Company agreed to issue the HWP shareholders 60,000,000 post-split common shares and the preferred shareholders seven million five hundred thousand (7,500,000) preferred shares. The preferred shares entitled the holders to ten (10) for one (1) voting rights in the<font style="letter-spacing: -1.15pt"> </font>Company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 5, 2009, the Board of Directors executed a resolution to reverse split the Company’s common stock by a ratio of one (1) share for each two hundred (200) shares issued and outstanding.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2009, the Company amended its Articles of Incorporation to change its name to Max Media Group, Inc. and the Company was listed with the National Quotation Bureau under the trading symbol “MXMI.” In July 2009 the Company also amended its Articles of Incorporation to put the reverse split of the Company’s common stock, by a ration of one (1) share for each two hundred (200) shares issued and outstanding, into<font style="letter-spacing: -0.2pt"> </font>effect.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 12, 2012, a stock purchase agreement was executed by and between James E. Grady, the Company and BB2 Labs, Inc. During April 2012, Mr. Manocchio was appointed as a Director, President, Principal Executive Officer and Principal Accounting Officer of the Company. Subsequently, the Company was revoked in the State of Nevada due to a failure to pay taxes and fees and for failing to adhere to filing requirements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 1, 2012 the Company acquired two hundred and fifty thousand (250,000) shares of common stock and five million five hundred (5,500,000) shares of Class “B” Convertible Preferred Stock from James E. Grady. The Class “B” Convertible Preferred Stock included, one hundred (100) votes per share and may be convertible into ten (10) shares of common stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 9, 2012 the Board of Directors executed a resolution to reverse split the Company’s common stock by a ratio of one (1) share for each four hundred (400) shares issued and outstanding.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.5pt 0 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the Company was reinstated in the state of Nevada by the new principal shareholder of the Company, Avoz, LLC, through its General Manager Nelson Jacobsen.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 18, 2016, the Company entered into a Share Exchange Agreement ("Exchange Agreement"), by and among the Company, Altavoz, Inc. ("Altavoz"), a Maryland corporation and the Stockholders of Altavoz. Altavoz had a total of 1 stockholder as of the date of the Exchange Agreement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms and conditions of the Exchange Agreement, the Company offered and sold One Million (1,000,000) newly issued shares of Company Common in consideration for all the issued and outstanding shares of Altavoz capital stock. The effect of the issuance was that, upon closing of the Exchange Agreement transaction, former Altavoz stockholders held approximately 25.1% of the issued and outstanding shares of Company Common Stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the Exchange Agreement transactions described above, the Altavoz stockholders acquired as of the date the transaction closed, in the aggregate, approximately 25.1% of the issued and outstanding capital stock of the Company on a fully-diluted basis, and Altavoz became a wholly owned subsidiary of the Company. The transaction was treated as a reverse acquisition, with the Company as the accounting acquirer and as the legal acquirer for financial reporting purposes. Under the Exchange Agreement,</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Nelson Jacobsen was appointed as the President, Chief Executive Officer, Chief Financial Officer and Nancy Jacobsen was appointed as Secretary of the Company, and<font style="letter-spacing: -0.15pt"> </font>Mr.<font style="letter-spacing: -0.15pt"> </font>Jacobsen,<font style="letter-spacing: -0.1pt"> </font>Ms.<font style="letter-spacing: -0.1pt"> </font>Jacobsen,<font style="letter-spacing: -0.1pt"> </font>and<font style="letter-spacing: -0.1pt"> </font>Mr.<font style="letter-spacing: -0.15pt"> </font>Ken<font style="letter-spacing: -0.1pt"> </font>Balog<font style="letter-spacing: -0.15pt"> </font>were<font style="letter-spacing: -0.25pt"> </font>appointed<font style="letter-spacing: -0.05pt"> </font>to<font style="letter-spacing: -0.15pt"> </font>serve<font style="letter-spacing: -0.15pt"> </font>as<font style="letter-spacing: -0.15pt"> </font>a<font style="letter-spacing: -0.2pt"> </font>directors<font style="letter-spacing: -0.15pt"> </font>of<font style="letter-spacing: -0.1pt"> </font>the<font style="letter-spacing: -0.1pt"> </font>Company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Principles of consolidation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include the accounts of Altavoz Entertainment, Inc.<font style="background-color: yellow"> </font>and its wholly owned subsidiaries, Altavoz, Inc. and Financed Entertainment Services Co. All significant intercompany transactions, accounts and balances have been eliminated in consolidation.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Going Concern</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has incurred net losses since inception and has relied on its ability to fund its operations through borrowings from its shareholders. Management expects operating losses and negative cash flows to continue at more significant levels in the future. As the Company continues to incur losses, transition to profitability is dependent upon the successful acquisition of new music content and existing music catalog to add to the distribution networks, adequate new funding, and the achievement of levels of revenues to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through private or public equity offerings, and through arrangements with strategic partners. Based on the Company’s operating plan, existing working capital at December 31, 2015 was not sufficient to meet the cash requirements to fund planned operations through December 31, 2016 without additional sources of cash. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.<br clear="all" />  </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Management estimates</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.4pt 0 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those<font style="letter-spacing: -0.3pt"> </font>estimates.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Earnings (Loss) Per Share (EPS)</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings (loss) per common share are calculated by dividing net loss by the weighted average number of shares outstanding during the period. Diluted loss per common share are calculated by adjusting outstanding shares, assuming conversion of all potentially dilutive stock options and warrants. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an anti-dilutive effect on earnings per common share. Anti-dilution results from an increase in earnings per share or reduction in loss per share from the inclusion of potentially dilutive shares in EPS calculations. Currently there are no potential diluters which have been excluded from EPS that could potentially have a dilutive effect on EPS in the future.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.3pt 0 0; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><u> </u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For purposes of the consolidated statements of cash flows, cash includes demand, time deposits with original maturities of three months or less at the date of purchase, and money market accounts. The Company maintains deposits in one financial institution. At September 30, 2016 and December 31, 2015, the Federal Deposit Insurance Corporation (FDIC) provided insurance coverage of up to $250,000, per depositor, per institution. None of the Company’s cash was in excess of the insured limits.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fixed Assets</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s fixed assets are stated at cost. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. Depreciation is computed using the straight line method over estimated useful lives as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.45pt 0 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 45%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Equipment</font></td> <td style="width: 10%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 43%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10 years</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Computers & Equipment</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">6 years</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Software</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3 years</font></td> <td style="line-height: 107%"> </td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates revenue primarily from on-demand fees for music and revenues generated from company hosted software subscriptions over the Internet.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue when all of the following conditions are satisfied:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">There is persuasive evidence of an arrangement;</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Services have been rendered and there are no remaining performance obligations</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">The collection of fees is reasonably assured;</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Amount of fees to be paid by the customer are fixed or determinable.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Subscription Services and Usage-Based Fee Arrangements. </i>Subscription services and usage-based fee arrangements generally include a combination of the Company’s products delivered as distribution-as-a- service and support services. These arrangements are non-cancelable and do not contain refund-type provisions.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cost of Revenues</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s cost of revenues consists primarily of allocated facilities costs, customer support, data centers, expenses for document preparation, and compliance services, depreciation on computer equipment used in supporting the Company’s DaaS (“Desk-Top-As-A-Service”) offerings, amortization of acquired intangible assets directly involved in revenue producing activities and professional services associated with implementation of software.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Advertising Expenses</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses advertising costs as incurred. Advertising expenses for the nine months ended September 30, 2016, and 2015 were Fifteen Thousand Four Dollars ($15,004) and No Dollars ($0), respectively.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income taxes</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred tax assets and <font style="letter-spacing: -0.15pt">liabilities </font>are <font style="letter-spacing: -0.15pt">recognized </font>for the <font style="letter-spacing: -0.15pt">future </font>tax consequences attributable to differences <font style="letter-spacing: -0.15pt">between </font>the <font style="letter-spacing: -0.15pt">financial statement carrying </font>amounts of existing assets and liabilities and <font style="letter-spacing: -0.15pt">their respective tax </font>bases. Deferred tax assets and liabilities are measured using enacted tax <font style="letter-spacing: -0.15pt">rates expected </font>to apply to taxable <font style="letter-spacing: -0.15pt">income </font>in the years in which <font style="letter-spacing: -0.15pt">those temporary differences </font>are expected to be <font style="letter-spacing: -0.15pt">recovered </font>or <font style="letter-spacing: -0.15pt">settled. </font>The effect on <font style="letter-spacing: -0.15pt">deferred </font>tax <font style="letter-spacing: -0.15pt">assets </font>and <font style="letter-spacing: -0.15pt">liabilities </font>of a <font style="letter-spacing: -0.15pt">change </font>in tax rates is recognized in the period that includes <font style="letter-spacing: -0.1pt">the </font>enactment<font style="letter-spacing: -0.55pt"> </font>date.<font style="letter-spacing: -0.55pt"> </font>In<font style="letter-spacing: -0.55pt"> </font>addition,<font style="letter-spacing: -0.55pt"> </font>a<font style="letter-spacing: -0.55pt"> </font><font style="letter-spacing: -0.1pt">valuation</font><font style="letter-spacing: -0.5pt"> </font>allowance<font style="letter-spacing: -0.55pt"> </font>is<font style="letter-spacing: -0.55pt"> </font><font style="letter-spacing: -0.15pt">established </font>to<font style="letter-spacing: -0.55pt"> </font>reduce<font style="letter-spacing: -0.5pt"> </font>any<font style="letter-spacing: -0.5pt"> </font>deferred<font style="letter-spacing: -0.55pt"> </font>tax<font style="letter-spacing: -0.55pt"> </font>asset<font style="letter-spacing: -0.55pt"> </font>for<font style="letter-spacing: -0.55pt"> </font>which<font style="letter-spacing: -0.55pt"> </font>it is<font style="letter-spacing: -0.3pt"> </font><font style="letter-spacing: -0.15pt">determined</font><font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">that </font>it<font style="letter-spacing: -0.3pt"> </font>is<font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">more likely</font><font style="letter-spacing: -0.2pt"> </font><font style="letter-spacing: -0.15pt">than</font><font style="letter-spacing: -0.3pt"> </font>not<font style="letter-spacing: -0.3pt"> </font><font style="letter-spacing: -0.15pt">that</font><font style="letter-spacing: -0.3pt"> </font>some<font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">portion</font><font style="letter-spacing: -0.3pt"> </font>of<font style="letter-spacing: -0.3pt"> </font>the<font style="letter-spacing: -0.3pt"> </font><font style="letter-spacing: -0.15pt">deferred </font>tax<font style="letter-spacing: -0.2pt"> </font><font style="letter-spacing: -0.15pt">asset</font><font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">will</font><font style="letter-spacing: -0.3pt"> </font>not<font style="letter-spacing: -0.3pt"> </font>be<font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">realized.</font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt">The </font><font style="letter-spacing: -0.15pt">Company </font><font style="letter-spacing: -0.2pt">recognizes </font><font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">benefits </font>of <font style="letter-spacing: -0.15pt">tax </font><font style="letter-spacing: -0.2pt">positions </font>in <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.2pt">consolidated financial statements </font>if <font style="letter-spacing: -0.2pt">such positions </font><font style="letter-spacing: -0.15pt">are more likely than </font><font style="letter-spacing: -0.1pt">not </font>to be <font style="letter-spacing: -0.2pt">sustained </font><font style="letter-spacing: -0.15pt">upon </font><font style="letter-spacing: -0.2pt">examination </font>by <font style="letter-spacing: -0.15pt">the taxing </font><font style="letter-spacing: -0.2pt">authority </font><font style="letter-spacing: -0.15pt">and </font><font style="letter-spacing: -0.2pt">satisfy the </font><font style="letter-spacing: -0.15pt">appropriate measurement criteria. </font>If <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.2pt">recognition threshold </font>is <font style="letter-spacing: -0.15pt">met, </font><font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">tax benefit </font>is <font style="letter-spacing: -0.15pt">generally </font><font style="letter-spacing: -0.2pt">measured </font><font style="letter-spacing: -0.15pt">and </font><font style="letter-spacing: -0.2pt">recognized </font>as <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">tax benefit having the </font><font style="letter-spacing: -0.2pt">highest likelihood, </font>in <font style="letter-spacing: -0.15pt">management's </font><font style="letter-spacing: -0.2pt">judgment, </font>of <font style="letter-spacing: -0.15pt">being </font><font style="letter-spacing: -0.2pt">realized </font><font style="letter-spacing: -0.15pt">upon ultimate settlement with </font>the <font style="letter-spacing: -0.15pt">taxing </font><font style="letter-spacing: -0.2pt">authority, assuming </font><font style="letter-spacing: -0.15pt">full </font><font style="letter-spacing: -0.2pt">knowledge </font>of <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">position </font><font style="letter-spacing: -0.1pt">and </font><font style="letter-spacing: -0.15pt">all </font>relevant facts. The <font style="letter-spacing: -0.15pt">Company also recognizes interest </font>and <font style="letter-spacing: -0.15pt">penalties accrued related </font>to <font style="letter-spacing: -0.15pt">unrecognized </font>tax <font style="letter-spacing: -0.15pt">benefits </font>in <font style="letter-spacing: -0.15pt">the </font><font style="letter-spacing: -0.2pt">provision </font><font style="letter-spacing: -0.1pt">for </font><font style="letter-spacing: -0.15pt">income taxes. </font>The <font style="letter-spacing: -0.15pt">Company believes </font><font style="letter-spacing: -0.2pt">appropriate </font><font style="letter-spacing: -0.15pt">provisions </font><font style="letter-spacing: -0.1pt">for </font><font style="letter-spacing: -0.15pt">all </font><font style="letter-spacing: -0.2pt">outstanding </font><font style="letter-spacing: -0.15pt">tax related issues have been made </font><font style="letter-spacing: -0.1pt">for </font>all<font style="letter-spacing: -1.8pt"> </font><font style="letter-spacing: -0.15pt">jurisdictions and all open tax </font><font style="letter-spacing: -0.2pt">years.</font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><font style="letter-spacing: -0.2pt"> </font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.2pt"><u>Licensing Fees</u></font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><font style="letter-spacing: -0.2pt"> </font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.2pt">The Company licenses from artists and other distributors music rights. All expenses associated with this activity have be reflected in the company’s operating results.</font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Capital Stock</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company has no outstanding Series B Preferred Shares at September 30, 2016 or 2015 (100,000,000 authorized). Series B Preferred shares convert to common stock on a 10 for-1 basis and carry 100-for-1 super voting rights.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company has 4,688,798 outstanding shares of Common Stock at September 30, 2016 (750,000,000 authorized)</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair value measurements</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Accounting Standards Codification (“ASC”) Topic 820, <i>Fair Value Measurement</i>, defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and requires certain disclosures about fair value measurements. In general, the fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the counterparty’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over<font style="letter-spacing: -0.65pt"> </font>time.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair value of financial instruments</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with the reporting requirements of ASC Topic 825, <i>Financial Instruments</i>, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of those financial instruments. The <font style="letter-spacing: -0.15pt">Company does </font>not <font style="letter-spacing: -0.15pt">have </font>any <font style="letter-spacing: -0.15pt">assets </font>or <font style="letter-spacing: -0.2pt">liabilities </font><font style="letter-spacing: -0.15pt">measured </font>at <font style="letter-spacing: -0.15pt">fair value </font>on a <font style="letter-spacing: -0.15pt">recurring </font>or a <font style="letter-spacing: -0.15pt">non-recurring basis, consequently, </font>the <font style="letter-spacing: -0.15pt">Company did </font>not <font style="letter-spacing: -0.15pt">have any fair value adjustments for assets and </font><font style="letter-spacing: -0.2pt">liabilities measured </font>at <font style="letter-spacing: -0.15pt">fair value </font>as of <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">dates </font>of <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.2pt">consolidated </font><font style="letter-spacing: -0.15pt">balance sheets.</font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent accounting pronouncements</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the period ended September 30, 2016 and through December 15, 2016, there were several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”). Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Subsequent events</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In preparing the consolidated financial statements, the Company has reviewed, as determined necessary by the Company’s management, events that have occurred after September 30, 2016, up until the issuance of the consolidated financial statements, which occurred on December 15,<font style="letter-spacing: -0.75pt"> </font>2016.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In October 2016, the Company issued 15,840,000 restricted common shares to various service providers. These shares were valued at fair value of $0.04 per share and have been charged as stock compensation ($633,600) to general and administrative expense.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 5, 2016 the company entered into a convertible promissory note with a shareholder in the amount of $100,000. The note bears interest at 5% and was subsequently converted into 20,000,000 shares of restricted common stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 27, 2016, the Company issued 264,410,000 restricted common shares to founders, debtholders and affiliates in exchange for cash advances provided of $286,700. On October 27, 2016 the Company issued 1,085,000 shares to certain non-profit entities recording the related expense as donations. These shares are valued at fair value of $0.04 per share.</p>
</us-gaap:SignificantAccountingPoliciesTextBlock>
<us-gaap:SignificantAccountingPoliciesTextBlock contextRef="From2015-01-01to2015-12-31">
<table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 7px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"> </td> <td style="width: 18px; padding-top: 0.05in; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/106% Times New Roman, Times, Serif"><b>1.</b></font></td> <td style="padding-top: 0.05in; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/106% Times New Roman, Times, Serif"><b>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Nature of operations and basis of presentation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Altavoz Entertainment, Inc. and its subsidiaries (the Company), is a Nevada corporation principally engaged in the operation of both physical and digital distribution of music. Distribution services are provided both online and through distribution as a service (“DaaS”). Customers include both music retailers and other music distribution companies.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 3, 2000, the Company was originally formed as Saveyoutime.com, Inc. under the laws of Nevada. Subsequently, on April 10, 2003, the Company filed a certificate of Merger with the Nevada Secretary of State reporting our merger with Hesperia Holding Corp. The Company then changed its name to Hesperia Holding, Inc. During 2005, the Company discontinued the operations of two subsidiaries and began pursuing acquisitions related to the film and media industries.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2009, the Company entered into an agreement (the “HWP Acquisition”) to acquire one hundred percent (100%) ownership of Hot Web Properties, Inc. (“HWP”). Under the terms of the HWP Acquisition the Company agreed to issue the HWP shareholders 60,000,000 post-split common shares and the preferred shareholders seven million five hundred thousand (7,500,000) preferred shares. The preferred shares entitled the holders to ten (10) for one (1) voting rights in the Company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 5, 2009, the Board of Directors executed a resolution to reverse split the Company’s common stock by a ratio of one (1) share for each two hundred (200) shares issued and outstanding.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2009, the Company amended its Articles of Incorporation to change its name to Max Media Group, Inc. and the Company was listed with the National Quotation Bureau under the trading symbol “MXMI.” In July 2009 the Company also amended its Articles of Incorporation to put the reverse split of the Company’s common stock, by a ration of one (1) share for each two hundred (200) shares issued and outstanding, into effect.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 12, 2012, a stock purchase agreement was executed by and between James E. Grady, the Company and BB2 Labs, Inc. During April 2012, Mr. Manocchio was appointed as a Director, President, Principal Executive Officer and Principal Accounting Officer of the Company. Subsequently, the Company was revoked in the State of Nevada due to a failure to pay taxes and fees and for failing to adhere to filing requirements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 1, 2012 the Company acquired two hundred and fifty thousand (250,000) shares of common stock and five million five hundred (5,500,000) shares of Class “B” Convertible Preferred Stock from James E. Grady. The Class “B” Convertible Preferred Stock included, one hundred (100) votes per share and may be convertible into ten (10) shares of common stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 9, 2012 the Board of Directors executed a resolution to reverse split the Company’s common stock by a ratio of one (1) share for each four hundred (400) shares issued and outstanding.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the Company was reinstated in the state of Nevada by the new principal shareholder of the Company, Avoz, LLC, through its General Manager Nelson Jacobsen.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b>  </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Principles of consolidation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include the accounts of Altavoz Entertainment, Inc. and its wholly owned subsidiaries, Altavoz, Inc. and Financed Entertainment Services Co.<font style="background-color: yellow"> </font>All significant intercompany transactions, accounts and balances have been eliminated in consolidation.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Going Concern</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><br clear="all" /> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has incurred net losses since inception and has relied on its ability to fund its operations through borrowings from its shareholders. Management expects operating losses and negative cash flows to continue at more significant levels in the future. As the Company continues to incur losses, transition to profitability is dependent upon the successful acquisition of new music content and existing music catalog to add to the distribution networks, adequate new funding, and the achievement of levels of revenues to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through private or public equity offerings, and through arrangements with strategic partners. Based on the Company’s operating plan, existing working capital at December 31, 2015 was not sufficient to meet the cash requirements to fund planned operations through December 31, 2016 without additional sources of cash. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.<br clear="all" /> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Management estimates</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Earnings (Loss) Per Share (EPS)</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings (loss) per common share are calculated by dividing net loss by the weighted average number of shares outstanding during the period. Diluted loss per common share are calculated by adjusting outstanding shares, assuming conversion of all potentially dilutive stock options and warrants. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an anti-dilutive effect on earnings per common share. Anti-dilution results from an increase in earnings per share or reduction in loss per share from the inclusion of potentially dilutive shares in EPS calculations. Currently there are no potential diluters which have been excluded from EPS that could potentially have a dilutive effect on EPS in the future.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share for the years ended December 31:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">Basic earnings (loss) per share calculation:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 60%; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">Net (loss) to common shareholders</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">$</font></td> <td style="width: 10%; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">(89,459</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">)</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">$</font></td> <td style="width: 10%; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">(140,686</font></td> <td style="width: 1%; line-height: 107%"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted average common shares outstanding</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,611,653</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">717,132</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Basic net (loss) per share</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.20</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted (loss) per share calculation:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net (loss) per common shareholders</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(89,459</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(140,686</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Basic weighted average common shares outstanding</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,611,653</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">717,132</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted weighted average common shares outstanding</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,611,653</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">717,132</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted net (loss) per share</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.20</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.3pt 0 0; text-indent: 0in"><b> </b></p> <p style="font: 3.5pt/normal Times New Roman, Times, Serif; margin: 0.3pt 0 0; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For purposes of the consolidated statements of cash flows, cash includes demand, time deposits with original maturities of three months or less at the date of purchase, and money market accounts. The Company maintains deposits in one financial institution. At December 31, 2015, the Federal Deposit Insurance Corporation (FDIC) provided insurance coverage of up to $250,000, per depositor, per institution. None of the Company’s cash was in excess of the insured limits.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fixed Assets</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s fixed assets are stated at cost. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. Depreciation is computed using the straight line method over estimated useful lives as follows:</p> <p style="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0.45pt 0 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 45%; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">Equipment</font></td> <td style="width: 10%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 43%; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">10 years</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">Office Computers & Equipment</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">6 years</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">Office Software</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">3 years</font></td> <td style="line-height: 107%"> </td></tr> </table> <p style="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue recognition</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates revenue primarily from on-demand fees for music and revenues generated from company-hosted software subscriptions over the</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Internet.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue when all of the following conditions are satisfied:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif"></font></td> <td style="width: 7px; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">There is persuasive evidence of an arrangement;</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif"></font></td> <td style="width: 7px; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">Services have been rendered and there are no remaining performance obligations</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif"></font></td> <td style="width: 7px; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">The collection of fees is reasonably assured;</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif"></font></td> <td style="width: 7px; line-height: 107%"> </td> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">Amount of fees to be paid by the customer are fixed or determinable.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Subscription Services and Usage-Based Fee Arrangements. </i>Subscription services and usage-based fee arrangements generally include a combination of the Company’s products delivered as distribution-as-a- service and support services. These arrangements are non-cancelable and do not contain refund-type provisions.<b> </b></p> <p style="font: 9.5pt/normal Times New Roman, Times, Serif; margin: 0.35pt 0 0; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cost of Revenues</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s cost of revenues consists primarily of allocated facilities costs, customer support, data centers, expenses for document preparation, income verification and compliance services, depreciation on computer equipment used in supporting the Company’s DaaS (“Desk-Top-As-A-Service”) offerings, amortization of acquired intangible assets directly involved in revenue producing activities and professional services associated with implementation of software.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Advertising Expenses</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses advertising costs as incurred. Advertising expenses for the years ended December 31, 2015, and 2014 were Two Thousand Nine Hundred Dollars ($2,900) and Three Thousand Three Hundred Dollars ($3,300), respectively.</p> <p style="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income taxes</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes the benefits of tax positions in the consolidated financial statements if such positions are more likely than not to be sustained upon examination by the taxing authority and satisfy the appropriate measurement criteria. If the recognition threshold is met, the tax benefit is generally measured and recognized as the tax benefit having the highest likelihood, in management's judgment, of being realized upon ultimate settlement with the taxing authority, assuming full knowledge of the position and all relevant facts. The Company also recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. The Company believes appropriate provisions for all outstanding tax related issues have been made for all jurisdictions and all open tax years.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Licensing Fees</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company licenses from artists and other distributors music rights. All expenses associated with this activity have be reflected in the company’s operating results.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Capital Stock</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company has no outstanding Series B Preferred Shares at December 31, 2015 or 2014 (100,000,000 authorized). Series B Preferred shares convert to common stock on a 10 for-1 basis and carry 100-for-1 super voting rights.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company has 2,217,132 outstanding shares of Common Stock at December 31, 2015 (750,000,000 authorized).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair value measurements</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Accounting Standards Codification (“ASC”) Topic 820, <i>Fair Value Measurement</i>, defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and requires certain disclosures about fair value measurements. In general, the fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the counterparty’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair value of financial instruments</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with the reporting requirements of ASC Topic 825, <i>Financial Instruments</i>, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of those financial instruments. The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value as of the dates of the consolidated balance sheets.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent accounting pronouncements</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2015 and through December 15, 2016, there were several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”). Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Subsequent events</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In preparing the consolidated financial statements, the Company has reviewed, as determined necessary by the Company’s management, events that have occurred after December 31, 2015, up until the issuance of the consolidated financial statements, which occurred on December 15, 2016.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 18, 2016, the Company entered into a Share Exchange Agreement ("Exchange Agreement"), by and among the Company, Altavoz, Inc. ("Altavoz"), a Maryland corporation and the Stockholders of Altavoz. Altavoz had a total of 1 stockholder as of the date of the Exchange Agreement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms and conditions of the Exchange Agreement, the Company offered and sold One Million (1,000,000) newly issued shares of Company Common in consideration for all the issued and outstanding shares of Altavoz capital stock. The effect of the issuance was that, upon closing of the Exchange Agreement transaction, former Altavoz stockholders held approximately 25.1% of the issued and outstanding shares of Company Common Stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the Exchange Agreement transactions described above, the Altavoz stockholders acquired as of the date the transaction closed, in the aggregate, approximately 25.1% of the issued and outstanding capital stock of the Company on a fully-diluted basis, and Altavoz became a wholly owned subsidiary of the Company. The transaction was treated as a reverse acquisition, with the Company as the accounting acquirer and as the legal acquirer for financial reporting purposes. Under the Exchange Agreement,</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Nelson Jacobsen was appointed as the President, Chief Executive Officer, Chief Financial Officer and Nancy Jacobsen was appointed as Secretary of the Company, and Mr. Jacobsen, Ms. Jacobsen, and Mr. Ken Balog were appointed to serve as directors of the Company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2016 the company issued an additional 2,471,666 restricted shares of common stock for total proceeds of $142,900.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2016, the Company issued 15,840,000 restricted common shares to various service providers. These shares were valued at fair value of $0.04 per share and have been charged as stock compensation ($633,600) to general and administrative expense.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 5, 2016 the company entered into a convertible promissory note with a shareholder in the amount of $100,000. The note bears interest at 5% and was subsequently converted into 20,000,000 shares of restricted common stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 27, 2016, the Company issued 264,410,000 restricted common shares to founders, debtholders and affiliates in exchange for cash advances provided of $286,700. On October 27, 2016, the Company issued 1,085,000 shares to certain non-profit entities recording the related expense as donations. These shares are valued at fair value of $0.04 per share.</p> <p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
</us-gaap:SignificantAccountingPoliciesTextBlock>
<us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">Basic earnings (loss) per share calculation:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 60%; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">Net (loss) to common shareholders</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">$</font></td> <td style="width: 10%; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">(89,459</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">)</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">$</font></td> <td style="width: 10%; text-align: right; line-height: 107%"><font style="font: 10pt/106% Times New Roman, Times, Serif">(140,686</font></td> <td style="width: 1%; line-height: 107%"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted average common shares outstanding</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,611,653</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">717,132</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Basic net (loss) per share</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.20</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted (loss) per share calculation:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net (loss) per common shareholders</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(89,459</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(140,686</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Basic weighted average common shares outstanding</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,611,653</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">717,132</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted weighted average common shares outstanding</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,611,653</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">717,132</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted net (loss) per share</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.20</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"> </p>
</us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock>
<us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; padding-left: 1.75pt"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; padding-left: 1.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Stockholder Advances</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">139,200</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">167,500</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Advances from Affiliate</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">141,200</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">169,500</font></td> <td style="line-height: 107%"> </td></tr></table>
</us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock>
<us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock contextRef="From2015-01-01to2015-12-31">
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-left: 1.75pt; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; padding-left: 1.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Stockholder Advances</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">167,500</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">110,000</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.75pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Advances from Affiliate</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,000</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">169,500</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">110,000</font></td> <td style="line-height: 107%"> </td></tr> </table>
</us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock>
<us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock contextRef="From2016-01-01to2016-09-30">
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: bottom"><td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Current tax provision</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,197</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax provision</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(66,821</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(30,447</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">66,821</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">30,447</font></td> <td style="line-height: 107%"> </td></tr> <tr style="background-color: white"> <td style="vertical-align: bottom; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total income tax provision</font></td> <td style="vertical-align: bottom; line-height: 107%"> </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">500   </font></td> <td style="vertical-align: bottom; padding-bottom: 1pt"> </td> <td style="vertical-align: bottom; padding-bottom: 1pt"> </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid"> </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,197</font></td> <td> </td></tr></table>
</us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock>
<us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock contextRef="From2015-01-01to2015-12-31">
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr> <td style="text-align: center; line-height: 107%"> </td> <td style="text-align: center; line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="text-align: center; line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Current tax provision</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,197</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,528</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax provision</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(30,447</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(47,447</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance </font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">30,447</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,447</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total income tax provision</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,197</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$1,528</font></td> <td> </td></tr> </table>
</us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock>
<us-gaap:ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock contextRef="From2016-01-01to2016-09-30">
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Federal statutory tax rate</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34.0%)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34.0%)</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">State taxes, net of federal benefit</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.3%)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2.9%)</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Permanent differences</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expiration of Stock Options</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 62%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 13%; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34.00</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 13%; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34.00</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Effective tax rate</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.3</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(2.9</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td></tr> </table>
</us-gaap:ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock>
<us-gaap:ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock contextRef="From2015-01-01to2015-12-31">
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Federal statutory tax rate</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34.0</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%)</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(34.0</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">State taxes, net of federal benefit</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1.4</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1.1</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%)</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><b> </b></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Permanent differences</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Expiration of Stock Options</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Other</font></td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 62%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 13%; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34.00</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 13%; border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34.00</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Effective tax rate</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1.40</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)%</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(1.10</font></td> <td style="line-height: 107%"><font style="font-family: Times New Roman, Times, Serif">)%</font></td></tr> </table>
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<us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax assets:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net operating loss carryforwards</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">($</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">144,715</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">($</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 60.75pt; text-indent: -60pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax asset</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">144,715</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 60.75pt; text-indent: -60pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(</font></td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">144,715</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(</font></td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td></tr></table>
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<us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Deferred tax assets:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net operating loss carryforwards</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">($</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">($</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,447</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 60.75pt; text-indent: -60pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total deferred tax asset</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,447</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 60.75pt; text-indent: -60pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(</font></td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">77,894</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(</font></td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">47,447</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif"></font><font style="font-family: Times New Roman, Times, Serif"> </font></td> <td style="line-height: 107%"> </td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">  </p>
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<us-gaap:PreferredStockSharesIssued contextRef="AsOf2014-12-31" unitRef="Shares" decimals="INF"> 0 </us-gaap:PreferredStockSharesIssued>
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<us-gaap:PreferredStockSharesOutstanding contextRef="AsOf2014-12-31" unitRef="Shares" decimals="INF"> 0 </us-gaap:PreferredStockSharesOutstanding>
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<us-gaap:CommonStockSharesAuthorized contextRef="AsOf2015-12-31" unitRef="Shares" decimals="INF"> 750000000 </us-gaap:CommonStockSharesAuthorized>
<us-gaap:CommonStockSharesAuthorized contextRef="AsOf2014-12-31" unitRef="Shares" decimals="INF"> 750000000 </us-gaap:CommonStockSharesAuthorized>
<us-gaap:CommonStockSharesAuthorized contextRef="AsOf2016-09-30" unitRef="Shares" decimals="INF"> 750000000 </us-gaap:CommonStockSharesAuthorized>
<us-gaap:CommonStockParOrStatedValuePerShare contextRef="AsOf2015-12-31" unitRef="USDPShares" decimals="INF"> 0.001 </us-gaap:CommonStockParOrStatedValuePerShare>
<us-gaap:CommonStockParOrStatedValuePerShare contextRef="AsOf2014-12-31" unitRef="USDPShares" decimals="INF"> 0.001 </us-gaap:CommonStockParOrStatedValuePerShare>
<us-gaap:CommonStockParOrStatedValuePerShare contextRef="AsOf2016-09-30" unitRef="USDPShares" decimals="INF"> 0.001 </us-gaap:CommonStockParOrStatedValuePerShare>
<us-gaap:CommonStockSharesIssued contextRef="AsOf2015-12-31" unitRef="Shares" decimals="INF"> 2217132 </us-gaap:CommonStockSharesIssued>
<us-gaap:CommonStockSharesIssued contextRef="AsOf2014-12-31" unitRef="Shares" decimals="INF"> 717132 </us-gaap:CommonStockSharesIssued>
<us-gaap:CommonStockSharesIssued contextRef="AsOf2016-09-30" unitRef="Shares" decimals="INF"> 4688798 </us-gaap:CommonStockSharesIssued>
<us-gaap:CommonStockSharesOutstanding contextRef="AsOf2015-12-31" unitRef="Shares" decimals="INF"> 2217132 </us-gaap:CommonStockSharesOutstanding>
<us-gaap:CommonStockSharesOutstanding contextRef="AsOf2014-12-31" unitRef="Shares" decimals="INF"> 717132 </us-gaap:CommonStockSharesOutstanding>
<us-gaap:CommonStockSharesOutstanding contextRef="AsOf2016-09-30" unitRef="Shares" decimals="INF"> 4688798 </us-gaap:CommonStockSharesOutstanding>
<us-gaap:BasisOfPresentationAndSignificantAccountingPoliciesTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Nature of operations and basis of presentation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.45pt 0 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Altavoz Entertainment, Inc. and its subsidiaries (the Company), is a Nevada corporation principally engaged in the operation of both physical and digital distribution of music. Distribution services are provided both online and through distribution as a service (“DaaS”). Customers include both music retailers and other music distribution companies.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 3, 2000, the Company was originally formed as Saveyoutime.com, Inc. under the laws of Nevada. Subsequently, on April 10, 2003, the Company filed a certificate of Merger with the Nevada Secretary of State reporting our merger with Hesperia Holding Corp. The Company then changed its name to Hesperia Holding, Inc. During 2005, the Company discontinued the operations of two subsidiaries and began pursuing acquisitions related to the film and media<font style="letter-spacing: -1.05pt"> </font>industries.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2009, the Company entered into an agreement (the “HWP Acquisition”) to acquire one hundred percent (100%) ownership of Hot Web Properties, Inc. (“HWP”). Under the terms of the HWP Acquisition the Company agreed to issue the HWP shareholders 60,000,000 post-split common shares and the preferred shareholders seven million five hundred thousand (7,500,000) preferred shares. The preferred shares entitled the holders to ten (10) for one (1) voting rights in the<font style="letter-spacing: -1.15pt"> </font>Company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 5, 2009, the Board of Directors executed a resolution to reverse split the Company’s common stock by a ratio of one (1) share for each two hundred (200) shares issued and outstanding.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2009, the Company amended its Articles of Incorporation to change its name to Max Media Group, Inc. and the Company was listed with the National Quotation Bureau under the trading symbol “MXMI.” In July 2009 the Company also amended its Articles of Incorporation to put the reverse split of the Company’s common stock, by a ration of one (1) share for each two hundred (200) shares issued and outstanding, into<font style="letter-spacing: -0.2pt"> </font>effect.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 12, 2012, a stock purchase agreement was executed by and between James E. Grady, the Company and BB2 Labs, Inc. During April 2012, Mr. Manocchio was appointed as a Director, President, Principal Executive Officer and Principal Accounting Officer of the Company. Subsequently, the Company was revoked in the State of Nevada due to a failure to pay taxes and fees and for failing to adhere to filing requirements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 1, 2012 the Company acquired two hundred and fifty thousand (250,000) shares of common stock and five million five hundred (5,500,000) shares of Class “B” Convertible Preferred Stock from James E. Grady. The Class “B” Convertible Preferred Stock included, one hundred (100) votes per share and may be convertible into ten (10) shares of common stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 9, 2012 the Board of Directors executed a resolution to reverse split the Company’s common stock by a ratio of one (1) share for each four hundred (400) shares issued and outstanding.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.5pt 0 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the Company was reinstated in the state of Nevada by the new principal shareholder of the Company, Avoz, LLC, through its General Manager Nelson Jacobsen.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 18, 2016, the Company entered into a Share Exchange Agreement ("Exchange Agreement"), by and among the Company, Altavoz, Inc. ("Altavoz"), a Maryland corporation and the Stockholders of Altavoz. Altavoz had a total of 1 stockholder as of the date of the Exchange Agreement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms and conditions of the Exchange Agreement, the Company offered and sold One Million (1,000,000) newly issued shares of Company Common in consideration for all the issued and outstanding shares of Altavoz capital stock. The effect of the issuance was that, upon closing of the Exchange Agreement transaction, former Altavoz stockholders held approximately 25.1% of the issued and outstanding shares of Company Common Stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the Exchange Agreement transactions described above, the Altavoz stockholders acquired as of the date the transaction closed, in the aggregate, approximately 25.1% of the issued and outstanding capital stock of the Company on a fully-diluted basis, and Altavoz became a wholly owned subsidiary of the Company. The transaction was treated as a reverse acquisition, with the Company as the accounting acquirer and as the legal acquirer for financial reporting purposes. Under the Exchange Agreement,</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Nelson Jacobsen was appointed as the President, Chief Executive Officer, Chief Financial Officer and Nancy Jacobsen was appointed as Secretary of the Company, and<font style="letter-spacing: -0.15pt"> </font>Mr.<font style="letter-spacing: -0.15pt"> </font>Jacobsen,<font style="letter-spacing: -0.1pt"> </font>Ms.<font style="letter-spacing: -0.1pt"> </font>Jacobsen,<font style="letter-spacing: -0.1pt"> </font>and<font style="letter-spacing: -0.1pt"> </font>Mr.<font style="letter-spacing: -0.15pt"> </font>Ken<font style="letter-spacing: -0.1pt"> </font>Balog<font style="letter-spacing: -0.15pt"> </font>were<font style="letter-spacing: -0.25pt"> </font>appointed<font style="letter-spacing: -0.05pt"> </font>to<font style="letter-spacing: -0.15pt"> </font>serve<font style="letter-spacing: -0.15pt"> </font>as<font style="letter-spacing: -0.15pt"> </font>a<font style="letter-spacing: -0.2pt"> </font>directors<font style="letter-spacing: -0.15pt"> </font>of<font style="letter-spacing: -0.1pt"> </font>the<font style="letter-spacing: -0.1pt"> </font>Company.</p>
</us-gaap:BasisOfPresentationAndSignificantAccountingPoliciesTextBlock>
<us-gaap:BasisOfPresentationAndSignificantAccountingPoliciesTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Nature of operations and basis of presentation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Altavoz Entertainment, Inc. and its subsidiaries (the Company), is a Nevada corporation principally engaged in the operation of both physical and digital distribution of music. Distribution services are provided both online and through distribution as a service (“DaaS”). Customers include both music retailers and other music distribution companies.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 3, 2000, the Company was originally formed as Saveyoutime.com, Inc. under the laws of Nevada. Subsequently, on April 10, 2003, the Company filed a certificate of Merger with the Nevada Secretary of State reporting our merger with Hesperia Holding Corp. The Company then changed its name to Hesperia Holding, Inc. During 2005, the Company discontinued the operations of two subsidiaries and began pursuing acquisitions related to the film and media industries.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2009, the Company entered into an agreement (the “HWP Acquisition”) to acquire one hundred percent (100%) ownership of Hot Web Properties, Inc. (“HWP”). Under the terms of the HWP Acquisition the Company agreed to issue the HWP shareholders 60,000,000 post-split common shares and the preferred shareholders seven million five hundred thousand (7,500,000) preferred shares. The preferred shares entitled the holders to ten (10) for one (1) voting rights in the Company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 5, 2009, the Board of Directors executed a resolution to reverse split the Company’s common stock by a ratio of one (1) share for each two hundred (200) shares issued and outstanding.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2009, the Company amended its Articles of Incorporation to change its name to Max Media Group, Inc. and the Company was listed with the National Quotation Bureau under the trading symbol “MXMI.” In July 2009 the Company also amended its Articles of Incorporation to put the reverse split of the Company’s common stock, by a ration of one (1) share for each two hundred (200) shares issued and outstanding, into effect.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 12, 2012, a stock purchase agreement was executed by and between James E. Grady, the Company and BB2 Labs, Inc. During April 2012, Mr. Manocchio was appointed as a Director, President, Principal Executive Officer and Principal Accounting Officer of the Company. Subsequently, the Company was revoked in the State of Nevada due to a failure to pay taxes and fees and for failing to adhere to filing requirements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 1, 2012 the Company acquired two hundred and fifty thousand (250,000) shares of common stock and five million five hundred (5,500,000) shares of Class “B” Convertible Preferred Stock from James E. Grady. The Class “B” Convertible Preferred Stock included, one hundred (100) votes per share and may be convertible into ten (10) shares of common stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 9, 2012 the Board of Directors executed a resolution to reverse split the Company’s common stock by a ratio of one (1) share for each four hundred (400) shares issued and outstanding.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the Company was reinstated in the state of Nevada by the new principal shareholder of the Company, Avoz, LLC, through its General Manager Nelson Jacobsen.</p>
</us-gaap:BasisOfPresentationAndSignificantAccountingPoliciesTextBlock>
<us-gaap:ConsolidationPolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Principles of consolidation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include the accounts of Altavoz Entertainment, Inc.<font style="background-color: yellow"> </font>and its wholly owned subsidiaries, Altavoz, Inc. and Financed Entertainment Services Co. All significant intercompany transactions, accounts and balances have been eliminated in consolidation.</p>
</us-gaap:ConsolidationPolicyTextBlock>
<us-gaap:ConsolidationPolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Principles of consolidation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include the accounts of Altavoz Entertainment, Inc. and its wholly owned subsidiaries, Altavoz, Inc. and Financed Entertainment Services Co.<font style="background-color: yellow"> </font>All significant intercompany transactions, accounts and balances have been eliminated in consolidation.</p>
</us-gaap:ConsolidationPolicyTextBlock>
<us-gaap:SubstantialDoubtAboutGoingConcernTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Going Concern</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has incurred net losses since inception and has relied on its ability to fund its operations through borrowings from its shareholders. Management expects operating losses and negative cash flows to continue at more significant levels in the future. As the Company continues to incur losses, transition to profitability is dependent upon the successful acquisition of new music content and existing music catalog to add to the distribution networks, adequate new funding, and the achievement of levels of revenues to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through private or public equity offerings, and through arrangements with strategic partners. Based on the Company’s operating plan, existing working capital at December 31, 2015 was not sufficient to meet the cash requirements to fund planned operations through December 31, 2016 without additional sources of cash. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.</p>
</us-gaap:SubstantialDoubtAboutGoingConcernTextBlock>
<us-gaap:SubstantialDoubtAboutGoingConcernTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Going Concern</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><br clear="all" /> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has incurred net losses since inception and has relied on its ability to fund its operations through borrowings from its shareholders. Management expects operating losses and negative cash flows to continue at more significant levels in the future. As the Company continues to incur losses, transition to profitability is dependent upon the successful acquisition of new music content and existing music catalog to add to the distribution networks, adequate new funding, and the achievement of levels of revenues to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through private or public equity offerings, and through arrangements with strategic partners. Based on the Company’s operating plan, existing working capital at December 31, 2015 was not sufficient to meet the cash requirements to fund planned operations through December 31, 2016 without additional sources of cash. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.</p>
</us-gaap:SubstantialDoubtAboutGoingConcernTextBlock>
<altavozcom:ManagementEstimates contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Management estimates</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.4pt 0 0; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those<font style="letter-spacing: -0.3pt"> </font>estimates.</p>
</altavozcom:ManagementEstimates>
<altavozcom:ManagementEstimates contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Management estimates</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.</p>
</altavozcom:ManagementEstimates>
<us-gaap:EarningsPerSharePolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Earnings (Loss) Per Share (EPS)</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings (loss) per common share are calculated by dividing net loss by the weighted average number of shares outstanding during the period. Diluted loss per common share are calculated by adjusting outstanding shares, assuming conversion of all potentially dilutive stock options and warrants. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an anti-dilutive effect on earnings per common share. Anti-dilution results from an increase in earnings per share or reduction in loss per share from the inclusion of potentially dilutive shares in EPS calculations. Currently there are no potential diluters which have been excluded from EPS that could potentially have a dilutive effect on EPS in the future.</p>
</us-gaap:EarningsPerSharePolicyTextBlock>
<us-gaap:EarningsPerSharePolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Earnings (Loss) Per Share (EPS)</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings (loss) per common share are calculated by dividing net loss by the weighted average number of shares outstanding during the period. Diluted loss per common share are calculated by adjusting outstanding shares, assuming conversion of all potentially dilutive stock options and warrants. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an anti-dilutive effect on earnings per common share. Anti-dilution results from an increase in earnings per share or reduction in loss per share from the inclusion of potentially dilutive shares in EPS calculations. Currently there are no potential diluters which have been excluded from EPS that could potentially have a dilutive effect on EPS in the future.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share for the years ended December 31:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; line-height: 107%"> </td> <td style="border-bottom: black 1pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Basic earnings (loss) per share calculation:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net (loss) to common shareholders</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(89,459</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(140,686</font></td> <td style="width: 1%; line-height: 107%"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt"> </p> <p style="font: 13pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b> </b></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted average common shares outstanding</font></td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">967,132</font></td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 8%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 11%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">967,132</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Basic net (loss) per share</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.20</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted (loss) per share calculation:</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"> </td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net (loss) per common shareholders</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(89,459</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(140,686</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Basic weighted average common shares outstanding</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">967,132</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">967,132</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted weighted average common shares outstanding</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">967,132</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">967,132</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted net (loss) per share</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.09</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(0.15</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 3.5pt/normal Times New Roman, Times, Serif; margin: 0.3pt 0 0; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For purposes of the consolidated statements of cash flows, cash includes demand, time deposits with original maturities of three months or less at the date of purchase, and money market accounts. The Company maintains deposits in one financial institution. At December 31, 2015, the Federal Deposit Insurance Corporation (FDIC) provided insurance coverage of up to $250,000, per depositor, per institution. None of the Company’s cash was in excess of the insured limits.</p>
</us-gaap:EarningsPerSharePolicyTextBlock>
<us-gaap:GoodwillAndIntangibleAssetsPolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fixed Assets</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s fixed assets are stated at cost. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. Depreciation is computed using the straight line method over estimated useful lives as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.45pt 0 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 45%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Equipment</font></td> <td style="width: 10%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 43%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10 years</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Computers & Equipment</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">6 years</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Software</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3 years</font></td> <td style="line-height: 107%"> </td></tr> </table>
</us-gaap:GoodwillAndIntangibleAssetsPolicyTextBlock>
<us-gaap:GoodwillAndIntangibleAssetsPolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fixed Assets</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s fixed assets are stated at cost. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. Depreciation is computed using the straight line method over estimated useful lives as follows:</p> <p style="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0.45pt 0 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 45%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Equipment</font></td> <td style="width: 10%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 43%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10 years</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Computers & Equipment</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">6 years</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Software</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3 years</font></td> <td style="line-height: 107%"> </td></tr> </table> <p style="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> </p>
</us-gaap:GoodwillAndIntangibleAssetsPolicyTextBlock>
<us-gaap:RevenueRecognitionPolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates revenue primarily from on-demand fees for music and revenues generated from company hosted software subscriptions over the Internet.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue when all of the following conditions are satisfied:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">There is persuasive evidence of an arrangement;</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Services have been rendered and there are no remaining performance obligations</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The collection of fees is reasonably assured;</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Amount of fees to be paid by the customer are fixed or determinable.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Subscription Services and Usage-Based Fee Arrangements. </i>Subscription services and usage-based fee arrangements generally include a combination of the Company’s products delivered as distribution-as-a- service and support services. These arrangements are non-cancelable and do not contain refund-type provisions.</p>
</us-gaap:RevenueRecognitionPolicyTextBlock>
<us-gaap:RevenueRecognitionPolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue recognition</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generates revenue primarily from on-demand fees for music and revenues generated from company-hosted software subscriptions over the</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Internet.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue when all of the following conditions are satisfied:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">There is persuasive evidence of an arrangement;</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Services have been rendered and there are no remaining performance obligations</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The collection of fees is reasonably assured;</font></td></tr> </table> <p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"> </p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 20px; padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td> <td style="width: 7px"> </td> <td style="padding-bottom: 6pt; font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Amount of fees to be paid by the customer are fixed or determinable.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Subscription Services and Usage-Based Fee Arrangements. </i>Subscription services and usage-based fee arrangements generally include a combination of the Company’s products delivered as distribution-as-a- service and support services. These arrangements are non-cancelable and do not contain refund-type provisions.<b> </b></p>
</us-gaap:RevenueRecognitionPolicyTextBlock>
<us-gaap:CostOfSalesPolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cost of Revenues</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s cost of revenues consists primarily of allocated facilities costs, customer support, data centers, expenses for document preparation, and compliance services, depreciation on computer equipment used in supporting the Company’s DaaS (“Desk-Top-As-A-Service”) offerings, amortization of acquired intangible assets directly involved in revenue producing activities and professional services associated with implementation of software.</p>
</us-gaap:CostOfSalesPolicyTextBlock>
<us-gaap:CostOfSalesPolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cost of Revenues</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s cost of revenues consists primarily of allocated facilities costs, customer support, data centers, expenses for document preparation, income verification and compliance services, depreciation on computer equipment used in supporting the Company’s DaaS (“Desk-Top-As-A-Service”) offerings, amortization of acquired intangible assets directly involved in revenue producing activities and professional services associated with implementation of software.</p>
</us-gaap:CostOfSalesPolicyTextBlock>
<us-gaap:AdvertisingCostsPolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Advertising Expenses</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses advertising costs as incurred. Advertising expenses for the nine months ended September 30, 2016, and 2015 were Fifteen Thousand Four Dollars ($15,004) and No Dollars ($0), respectively.</p>
</us-gaap:AdvertisingCostsPolicyTextBlock>
<us-gaap:AdvertisingCostsPolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Advertising Expenses</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses advertising costs as incurred. Advertising expenses for the years ended December 31, 2015, and 2014 were Two Thousand Nine Hundred Dollars ($2,900) and Three Thousand Three Hundred Dollars ($3,300), respectively.</p>
</us-gaap:AdvertisingCostsPolicyTextBlock>
<us-gaap:IncomeTaxPolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income taxes</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred tax assets and <font style="letter-spacing: -0.15pt">liabilities </font>are <font style="letter-spacing: -0.15pt">recognized </font>for the <font style="letter-spacing: -0.15pt">future </font>tax consequences attributable to differences <font style="letter-spacing: -0.15pt">between </font>the <font style="letter-spacing: -0.15pt">financial statement carrying </font>amounts of existing assets and liabilities and <font style="letter-spacing: -0.15pt">their respective tax </font>bases. Deferred tax assets and liabilities are measured using enacted tax <font style="letter-spacing: -0.15pt">rates expected </font>to apply to taxable <font style="letter-spacing: -0.15pt">income </font>in the years in which <font style="letter-spacing: -0.15pt">those temporary differences </font>are expected to be <font style="letter-spacing: -0.15pt">recovered </font>or <font style="letter-spacing: -0.15pt">settled. </font>The effect on <font style="letter-spacing: -0.15pt">deferred </font>tax <font style="letter-spacing: -0.15pt">assets </font>and <font style="letter-spacing: -0.15pt">liabilities </font>of a <font style="letter-spacing: -0.15pt">change </font>in tax rates is recognized in the period that includes <font style="letter-spacing: -0.1pt">the </font>enactment<font style="letter-spacing: -0.55pt"> </font>date.<font style="letter-spacing: -0.55pt"> </font>In<font style="letter-spacing: -0.55pt"> </font>addition,<font style="letter-spacing: -0.55pt"> </font>a<font style="letter-spacing: -0.55pt"> </font><font style="letter-spacing: -0.1pt">valuation</font><font style="letter-spacing: -0.5pt"> </font>allowance<font style="letter-spacing: -0.55pt"> </font>is<font style="letter-spacing: -0.55pt"> </font><font style="letter-spacing: -0.15pt">established </font>to<font style="letter-spacing: -0.55pt"> </font>reduce<font style="letter-spacing: -0.5pt"> </font>any<font style="letter-spacing: -0.5pt"> </font>deferred<font style="letter-spacing: -0.55pt"> </font>tax<font style="letter-spacing: -0.55pt"> </font>asset<font style="letter-spacing: -0.55pt"> </font>for<font style="letter-spacing: -0.55pt"> </font>which<font style="letter-spacing: -0.55pt"> </font>it is<font style="letter-spacing: -0.3pt"> </font><font style="letter-spacing: -0.15pt">determined</font><font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">that </font>it<font style="letter-spacing: -0.3pt"> </font>is<font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">more likely</font><font style="letter-spacing: -0.2pt"> </font><font style="letter-spacing: -0.15pt">than</font><font style="letter-spacing: -0.3pt"> </font>not<font style="letter-spacing: -0.3pt"> </font><font style="letter-spacing: -0.15pt">that</font><font style="letter-spacing: -0.3pt"> </font>some<font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">portion</font><font style="letter-spacing: -0.3pt"> </font>of<font style="letter-spacing: -0.3pt"> </font>the<font style="letter-spacing: -0.3pt"> </font><font style="letter-spacing: -0.15pt">deferred </font>tax<font style="letter-spacing: -0.2pt"> </font><font style="letter-spacing: -0.15pt">asset</font><font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">will</font><font style="letter-spacing: -0.3pt"> </font>not<font style="letter-spacing: -0.3pt"> </font>be<font style="letter-spacing: -0.25pt"> </font><font style="letter-spacing: -0.15pt">realized.</font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt">The </font><font style="letter-spacing: -0.15pt">Company </font><font style="letter-spacing: -0.2pt">recognizes </font><font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">benefits </font>of <font style="letter-spacing: -0.15pt">tax </font><font style="letter-spacing: -0.2pt">positions </font>in <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.2pt">consolidated financial statements </font>if <font style="letter-spacing: -0.2pt">such positions </font><font style="letter-spacing: -0.15pt">are more likely than </font><font style="letter-spacing: -0.1pt">not </font>to be <font style="letter-spacing: -0.2pt">sustained </font><font style="letter-spacing: -0.15pt">upon </font><font style="letter-spacing: -0.2pt">examination </font>by <font style="letter-spacing: -0.15pt">the taxing </font><font style="letter-spacing: -0.2pt">authority </font><font style="letter-spacing: -0.15pt">and </font><font style="letter-spacing: -0.2pt">satisfy the </font><font style="letter-spacing: -0.15pt">appropriate measurement criteria. </font>If <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.2pt">recognition threshold </font>is <font style="letter-spacing: -0.15pt">met, </font><font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">tax benefit </font>is <font style="letter-spacing: -0.15pt">generally </font><font style="letter-spacing: -0.2pt">measured </font><font style="letter-spacing: -0.15pt">and </font><font style="letter-spacing: -0.2pt">recognized </font>as <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">tax benefit having the </font><font style="letter-spacing: -0.2pt">highest likelihood, </font>in <font style="letter-spacing: -0.15pt">management's </font><font style="letter-spacing: -0.2pt">judgment, </font>of <font style="letter-spacing: -0.15pt">being </font><font style="letter-spacing: -0.2pt">realized </font><font style="letter-spacing: -0.15pt">upon ultimate settlement with </font>the <font style="letter-spacing: -0.15pt">taxing </font><font style="letter-spacing: -0.2pt">authority, assuming </font><font style="letter-spacing: -0.15pt">full </font><font style="letter-spacing: -0.2pt">knowledge </font>of <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">position </font><font style="letter-spacing: -0.1pt">and </font><font style="letter-spacing: -0.15pt">all </font>relevant facts. The <font style="letter-spacing: -0.15pt">Company also recognizes interest </font>and <font style="letter-spacing: -0.15pt">penalties accrued related </font>to <font style="letter-spacing: -0.15pt">unrecognized </font>tax <font style="letter-spacing: -0.15pt">benefits </font>in <font style="letter-spacing: -0.15pt">the </font><font style="letter-spacing: -0.2pt">provision </font><font style="letter-spacing: -0.1pt">for </font><font style="letter-spacing: -0.15pt">income taxes. </font>The <font style="letter-spacing: -0.15pt">Company believes </font><font style="letter-spacing: -0.2pt">appropriate </font><font style="letter-spacing: -0.15pt">provisions </font><font style="letter-spacing: -0.1pt">for </font><font style="letter-spacing: -0.15pt">all </font><font style="letter-spacing: -0.2pt">outstanding </font><font style="letter-spacing: -0.15pt">tax related issues have been made </font><font style="letter-spacing: -0.1pt">for </font>all<font style="letter-spacing: -1.8pt"> </font><font style="letter-spacing: -0.15pt">jurisdictions and all open tax </font><font style="letter-spacing: -0.2pt">years.</font></p>
</us-gaap:IncomeTaxPolicyTextBlock>
<us-gaap:IncomeTaxPolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income taxes</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes the benefits of tax positions in the consolidated financial statements if such positions are more likely than not to be sustained upon examination by the taxing authority and satisfy the appropriate measurement criteria. If the recognition threshold is met, the tax benefit is generally measured and recognized as the tax benefit having the highest likelihood, in management's judgment, of being realized upon ultimate settlement with the taxing authority, assuming full knowledge of the position and all relevant facts. The Company also recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. The Company believes appropriate provisions for all outstanding tax related issues have been made for all jurisdictions and all open tax years.</p>
</us-gaap:IncomeTaxPolicyTextBlock>
<altavozcom:LicensingFees contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.2pt"><u>Licensing Fees</u></font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><font style="letter-spacing: -0.2pt"> </font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.2pt">The Company licenses from artists and other distributors music rights. All expenses associated with this activity have be reflected in the company’s operating results.</font></p>
</altavozcom:LicensingFees>
<altavozcom:LicensingFees contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Licensing Fees</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company licenses from artists and other distributors music rights. All expenses associated with this activity have be reflected in the company’s operating results.</p>
</altavozcom:LicensingFees>
<altavozcom:CapitalStock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Capital Stock</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company has no outstanding Series B Preferred Shares at September 30, 2016 or 2015 (100,000,000 authorized). Series B Preferred shares convert to common stock on a 10 for-1 basis and carry 100-for-1 super voting rights.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company has 4,688,798 outstanding shares of Common Stock at September 30, 2016 (750,000,000 authorized)</p>
</altavozcom:CapitalStock>
<altavozcom:CapitalStock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Capital Stock</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company has no outstanding Series B Preferred Shares at December 31, 2015 or 2014 (100,000,000 authorized). Series B Preferred shares convert to common stock on a 10 for-1 basis and carry 100-for-1 super voting rights.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The company has 2,217,132 outstanding shares of Common Stock at December 31, 2015 (750,000,000 authorized)</p>
</altavozcom:CapitalStock>
<us-gaap:FairValueMeasurementPolicyPolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair value measurements</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Accounting Standards Codification (“ASC”) Topic 820, <i>Fair Value Measurement</i>, defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and requires certain disclosures about fair value measurements. In general, the fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the counterparty’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over<font style="letter-spacing: -0.65pt"> </font>time.</p>
</us-gaap:FairValueMeasurementPolicyPolicyTextBlock>
<us-gaap:FairValueMeasurementPolicyPolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair value measurements</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Accounting Standards Codification (“ASC”) Topic 820, <i>Fair Value Measurement</i>, defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and requires certain disclosures about fair value measurements. In general, the fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the counterparty’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time.</p>
</us-gaap:FairValueMeasurementPolicyPolicyTextBlock>
<us-gaap:FairValueOfFinancialInstrumentsPolicy contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair value of financial instruments</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with the reporting requirements of ASC Topic 825, <i>Financial Instruments</i>, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of those financial instruments. The <font style="letter-spacing: -0.15pt">Company does </font>not <font style="letter-spacing: -0.15pt">have </font>any <font style="letter-spacing: -0.15pt">assets </font>or <font style="letter-spacing: -0.2pt">liabilities </font><font style="letter-spacing: -0.15pt">measured </font>at <font style="letter-spacing: -0.15pt">fair value </font>on a <font style="letter-spacing: -0.15pt">recurring </font>or a <font style="letter-spacing: -0.15pt">non-recurring basis, consequently, </font>the <font style="letter-spacing: -0.15pt">Company did </font>not <font style="letter-spacing: -0.15pt">have any fair value adjustments for assets and </font><font style="letter-spacing: -0.2pt">liabilities measured </font>at <font style="letter-spacing: -0.15pt">fair value </font>as of <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.15pt">dates </font>of <font style="letter-spacing: -0.1pt">the </font><font style="letter-spacing: -0.2pt">consolidated </font><font style="letter-spacing: -0.15pt">balance sheets.</font></p>
</us-gaap:FairValueOfFinancialInstrumentsPolicy>
<us-gaap:FairValueOfFinancialInstrumentsPolicy contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Fair value of financial instruments</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with the reporting requirements of ASC Topic 825, <i>Financial Instruments</i>, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of those financial instruments. The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value as of the dates of the consolidated balance sheets.</p>
</us-gaap:FairValueOfFinancialInstrumentsPolicy>
<us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent accounting pronouncements</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the period ended September 30, 2016 and through December 15, 2016, there were several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”). Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.</p>
</us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock>
<us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent accounting pronouncements</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2015 and through December 15, 2016, there were several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”). Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.</p>
</us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock>
<us-gaap:SubsequentEventsPolicyPolicyTextBlock contextRef="From2016-01-01to2016-09-30">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Subsequent events</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In preparing the consolidated financial statements, the Company has reviewed, as determined necessary by the Company’s management, events that have occurred after September 30, 2016, up until the issuance of the consolidated financial statements, which occurred on December 15,<font style="letter-spacing: -0.75pt"> </font>2016.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In October 2016, the Company issued 15,840,000 restricted common shares to various service providers. These shares were valued at fair value of $0.04 per share and have been charged as stock compensation ($633,600) to general and administrative expense.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 5, 2016 the company entered into a convertible promissory note with a shareholder in the amount of $100,000. The note bears interest at 5% and was subsequently converted into 20,000,000 shares of restricted common stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 27, 2016, the Company issued 264,410,000 restricted common shares to founders, debtholders and affiliates in exchange for cash advances provided of $286,700. On October 27, 2016 the Company issued 1,085,000 shares to certain non-profit entities recording the related expense as donations. These shares are valued at fair value of $0.04 per share.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p>
</us-gaap:SubsequentEventsPolicyPolicyTextBlock>
<us-gaap:SubsequentEventsPolicyPolicyTextBlock contextRef="From2015-01-01to2015-12-31">
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Subsequent events</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In preparing the consolidated financial statements, the Company has reviewed, as determined necessary by the Company’s management, events that have occurred after December 31, 2015, up until the issuance of the consolidated financial statements, which occurred on December 15, 2016.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 18, 2016, the Company entered into a Share Exchange Agreement ("Exchange Agreement"), by and among the Company, Altavoz, Inc. ("Altavoz"), a Maryland corporation and the Stockholders of Altavoz. Altavoz had a total of 1 stockholder as of the date of the Exchange Agreement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms and conditions of the Exchange Agreement, the Company offered and sold One Million (1,000,000) newly issued shares of Company Common in consideration for all the issued and outstanding shares of Altavoz capital stock. The effect of the issuance was that, upon closing of the Exchange Agreement transaction, former Altavoz stockholders held approximately 25.1% of the issued and outstanding shares of Company Common Stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the Exchange Agreement transactions described above, the Altavoz stockholders acquired as of the date the transaction closed, in the aggregate, approximately 25.1% of the issued and outstanding capital stock of the Company on a fully-diluted basis, and Altavoz became a wholly owned subsidiary of the Company. The transaction was treated as a reverse acquisition, with the Company as the accounting acquirer and as the legal acquirer for financial reporting purposes. Under the Exchange Agreement,</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Nelson Jacobsen was appointed as the President, Chief Executive Officer, Chief Financial Officer and Nancy Jacobsen was appointed as Secretary of the Company, and Mr. Jacobsen, Ms. Jacobsen, and Mr. Ken Balog were appointed to serve as directors of the Company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><b> </b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2016 the company issued an additional 2,471,666 restricted shares of common stock for total proceeds of $142,900.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2016, the Company issued 15,840,000 restricted common shares to various service providers. These shares were valued at fair value of $0.04 per share and have been charged as stock compensation ($633,600) to general and administrative expense.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 5, 2016 the company entered into a convertible promissory note with a shareholder in the amount of $100,000. The note bears interest at 5% and was subsequently converted into 20,000,000 shares of restricted common stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 27, 2016, the Company issued 264,410,000 restricted common shares to founders, debtholders and affiliates in exchange for cash advances provided of $286,700. On October 27, 2016, the Company issued 1,085,000 shares to certain non-profit entities recording the related expense as donations. These shares are valued at fair value of $0.04 per share.</p>
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<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For purposes of the consolidated statements of cash flows, cash includes demand, time deposits with original maturities of three months or less at the date of purchase, and money market accounts. The Company maintains deposits in one financial institution. At September 30, 2016 and December 31, 2015, the Federal Deposit Insurance Corporation (FDIC) provided insurance coverage of up to $250,000, per depositor, per institution. None of the Company’s cash was in excess of the insured limits.</p>
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<us-gaap:NetCashProvidedByUsedInFinancingActivities contextRef="From2015-01-01to2015-09-30" unitRef="USD" decimals="0"> 52500 </us-gaap:NetCashProvidedByUsedInFinancingActivities>
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<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0.45pt 0 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 45%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Equipment</font></td> <td style="width: 10%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 43%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10 years</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Computers & Equipment</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">6 years</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Software</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3 years</font></td> <td style="line-height: 107%"> </td></tr> </table>
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<p style="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0.45pt 0 0; text-indent: 0in"> </p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 45%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Equipment</font></td> <td style="width: 10%; line-height: 107%"> </td> <td style="width: 1%; line-height: 107%"> </td> <td style="width: 43%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">10 years</font></td> <td style="width: 1%; line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Computers & Equipment</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">6 years</font></td> <td style="line-height: 107%"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Office Software</font></td> <td style="line-height: 107%"> </td> <td style="line-height: 107%"> </td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">3 years</font></td> <td style="line-height: 107%"> </td></tr> </table>
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<us-gaap:WeightedAverageNumberOfSharesIssuedBasic contextRef="From2014-01-01to2014-12-31" unitRef="Shares" decimals="INF"> 717132 </us-gaap:WeightedAverageNumberOfSharesIssuedBasic>
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<us-gaap:PropertyPlantAndEquipmentUsefulLife contextRef="From2016-01-01to2016-09-30"> P10Y </us-gaap:PropertyPlantAndEquipmentUsefulLife>
<us-gaap:PropertyPlantAndEquipmentUsefulLife contextRef="From2015-01-01to2015-12-31"> P10Y </us-gaap:PropertyPlantAndEquipmentUsefulLife>
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<us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance contextRef="From2016-01-01to2016-09-30" unitRef="Pure" decimals="INF"> .34 </us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance>
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</xbrli:xbrl>

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