10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED: June 30, 2017

COMMISSION FILE NUMBER: 000-26731

PACIFIC WEBWORKS, INC.

(Exact name of registrant as specified in its charter)

            Nevada                                                                                                            87-0627910

_______________________________                                                                ___________________

(State or other jurisdiction of                                                                                    (I.R.S. Employer

 incorporation or organization)                                                                                  Identification No.)

3136 Mission Gorge Road, Suite 111

San Diego, California 92120

Tel: (858) 459-1133

Fax: (858) 459-1103

(Address and telephone number of principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                         Yes  / /        No  /x/

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).      Yes  /X/       No  / /

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.

Large accelerated filer [ ]                                    Accelerated Filer [ ]

Non-accelerated filer [ ]                              Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).            

Yes  /X/        No  / /

The number of Registrant’s shares of common stock, $0.001 par value, outstanding as of December 8, 2017 was 149,713,895.

ITEM 1.  FINANCIAL STATEMENTS

The un-audited quarterly financial statements for the period ended June 30, 2017, prepared by the Company, immediately follow.

PACIFIC WEBWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
	June 30, 2017	December 31, 2016
	(Unaudited)
ASSETS
Assets	$ -	$ -
LIABILITIES AND STOCKHOLDERS' DEFICIT
Liabilities	$ -	$ -
Commitments and contingencies	-	-
Stockholders' Deficit
Common stock, $0.001 par value, 150,000,000 shares authorized;
149,713,895 and 49,713,895 shares issued and outstanding
as of June 30, 2017 and December 31, 2016, respectively	149,714	49,714
Additional paid-in capital	17,969,715	18,069,715
Accumulated deficit	(18,119,429)	(18,119,429)
Total stockholders' deficit	-	-
Total liabilities and stockholders' deficit	$ -	$ -
The accompanying notes are an integral part of these financial statements

PACIFIC WEBWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2017	2016	2017	2016
Revenue	$ -	$ -	$ -	$ -
Operating expenses	-	-	-	-
Loss from continuing operations	-	-	-	-
Income (loss) from discontinued operations	-	54,148	-	(143,369)
Income (loss) before income taxes	-	54,148	-	(143,369)
Income tax expense	-	-	-	-
Net Income (Loss)	$ -	$ 54,148	$ -	$ (143,369)
Net income (loss) per share - basic and diluted	$ 0.00	$ 0.00	$ 0.00	$ (0.00)
Weighted average shares - basic and diluted	60,702,906	49,713,894	55,238,757	49,713,894

        The accompanying notes are an integral part of these financial statements

PACIFIC WEBWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	For the Six Months Ended June 30,
	2017	2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash from (used for) operating activities -  discontinued operations	$ -	$ (114,747)
Net cash from (used for) operating activities	-	(114,747)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash from (used for) investing activities -  discontinued operations	-	158,099
Net cash from (used for) investing activities	-	158,099
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash from (used for) financing activities -  discontinued operations	-	(29,564)
Net cash from (used for) financing activities	-	(29,564)
NET DECREASE IN CASH AND CASH EQUIVALENTS	-	13,788
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	-	178,187
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ -	$ 191,975
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during period for :
Interest	$ -	$ 1,011
Income Taxes	$ -	$ -
The accompanying notes are an integral part of these financial statements

 PACIFIC WEBWORKS, INC.

Notes to Condensed Consolidated Financial Statements

June 30, 2017

(Unaudited)

NOTE 1 – THE COMPANY

Pacific WebWorks, Inc. (the “Company”) was incorporated in the state of Nevada on May 18, 1987, as Asphalt Associates, Inc. and changed its name to Pacific WebWorks, Inc. in January 1999.   From 1999 to 2016 the Company engaged in the development and distribution of web tools software, electronic business storefront hosting, and Internet payment systems for individuals and small to mid-sized businesses.  On February 23, 2016 the Company filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the District of Utah, and soon afterwards ceased its business activities. On August 19, 2016 the Company proposed a Plan of Liquidation and on November 28, 2016 the Court entered an order confirming the Plan of Liquidation and establishing a Liquidating Trust. On December 28, 2016 all assets and liabilities of the Company were transferred to the Liquidating Trust. All assets, liabilities, and operations have been presented as discontinued operations prior to the December 28, 2016 transfer (see Note 4). The Company currently has no business operations.

NOTE 2 – BASIS OF FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the U. S. Securities and Exchange Commission.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations.  The information furnished in the interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements.  Although management believes the disclosures and information presented adequately ensure that the information is not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s December 31, 2016 audited financial statements and notes thereto.  

NOTE 3 – GOING CONCERN

The Company’s consolidated financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.  The Company filed bankruptcy in February 2016 and in December of 2016 all assets and liabilities of the Company were transferred to the Liquidating Trust.  Furthermore, the Company has an accumulated deficit of $18,119,429 as of June 30, 2017.  These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.    

Management’s plans to continue as a going concern include seeking a merger or an acquisition with a larger, better capitalized entity that will benefit current shareholders, however, as of the date hereof, we have not identified any potential merger or acquisition partner.  Because the Company has no capital with which to pay current expenses the Company’s sole officer and director has agreed to pay these charges with his personal funds, as interest free loans to the Company or as capital contributions.

Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

NOTE 4 – DISCONTINUED OPERATIONS

On February 23, 2016 the Company filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the District of Utah, and soon afterwards ceased its business activities. On August 19, 2016 the Company proposed a Plan of Liquidation and on November 28, 2016 the Court entered an order confirming the Plan of Liquidation and establishing a Liquidating Trust. On December 28, 2016 all assets and liabilities of the Company were transferred to the Liquidating Trust. The Company has recognized the cessation of its business operations in accordance with Accounting Standards Codification (ASC) 205-20, Discontinued Operations. As such, the historical results of the Company have been classified as discontinued operations.

Results of the discontinued operations for the three and six months ended June 30, 2016 are as follows:

			For the Three Months Ended June 30, 2016		For the Six Months Ended June 30, 2016
Revenues
	Hosting, gateway and maintenance fees	$	35,790	$	159,475
	Product sales		5,889		28,737
			41,679		188,212
Cost of sales			17,504		69,821
	Gross profit		24,175		118,390
Selling expenses			8,804		32,966
Research and development			15,182		51,659
General and administrative			103,744		326,852
	Total operating expenses		127,729		411,477
	Loss from operations		(103,554)		(293,087)
Other income (expense)
	Interest income (expense), net		(397)		(1,011)
	Gain on sale of assets		158,099		150,728
	Total other income (expense)		157,702		149,717
	Net income (loss) from discontinued operations	$	54,148	$	(143,369)

Cash flow from discontinued operations for the six months ended June 30, 2016 are as follows:

Cash Flows From Operating Activities
	Net loss	$	(143,369)
	Adjustments to reconcile net loss to net
	cash used for operating activities:
	Gain on sale of assets		(150,728)
	Changes in assets and liabilities:
	Deposits		4,825
	Receivables		77,196
	Restricted cash		62,840
	Prepaid expenses and other assets		61,952
	Inventory		18,942
	Accounts payable and accrued liabilities		(12,094)
	Deferred revenue		(34,311)
	Net cash used for discontinued operating activities	$	(114,747)
Cash Flows From Investing Activities
	Proceeds from sale of property and equipment	$	158,099
Net cash provided by discontinued investing activities		$	158,099
Cash Flows From Financing Activities
	Cash paid on notes payable	$	(29,564)
	Net cash used for discontinued financing activities	$	(29,564)

NOTE 5 – EQUITY

On June 19, 2017 the Company amended its Articles of Incorporation to increase its authorized common shares from 50,000,000 to 150,000,000.  

On June 20, 2017 control was purchased from the bankruptcy trustee for $25,000 and the Company issued 100,000,000 shares of its common stock to its President.  No proceeds were received by the Company for the issuance of shares, therefore the shares were valued at par value.

NOTE 6 – SUBSEQUENT EVENTS

On November 1, 2017 the Bankruptcy Court for the District of Utah issued a final decree ending the bankruptcy case filed by the Company in February 2016. The Company had been separated from this case on December 28, 2016 when all assets and liabilities were transferred to a liquidating trust.

The Company has evaluated subsequent events in accordance with the provisions of ASC 855 and has identified that there are no additional subsequent events that require disclosure.

ITEM 2.   

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

The following discussion and analysis is intended to help you understand our financial condition and results of operations for the quarter ended June 30, 2017. You should read the following discussion and analysis together with our audited financial statements for the year ended December 31, 2016 and the notes to the financial statements included in this report on Form 10-Q. You should understand that we are no longer in the internet business, the software business, or any business. Thus our future financial condition and results of operations will have no relationship to our historical financial condition and results of operations described below.  

Forward-Looking Statements

The discussion contained herein contains "forward-looking statements" that involve risk and uncertainties. These statements may be identified by the use of terminology such as "believes," "expects," "may," "should" or anticipates" or expressing this terminology negatively or similar expressions or by discussions of strategy. The cautionary statements made in this Form 10-Q should be read as being applicable to all related forward-looking statements wherever they appear in this Form 10-Q. Our actual results could differ materially from those discussed in this report.

Executive Overview

The Company was incorporated in the state of Nevada on May 18, 1987, as Asphalt Associates, Inc. and changed its name to Pacific WebWorks, Inc. in January 1999.   During the years from 1999 to 2016 Pacific WebWorks, Inc. was an application service provider and software development firm that developed business software technologies and services for business merchants and organizations using Internet and other technologies.

On February 23, 2016 the Company filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the District of Utah, and soon afterwards ceased its business activities. On August 19, 2016 the Company proposed a Plan of Liquidation and on November 28, 2016 the Court entered an order confirming the Plan of Liquidation and establishing a Liquidating Trust. On December 28, 2016 all remaining assets and liabilities of the Company were transferred to the Liquidating Trust. As a result of these transfers the Company became, and remains as of the date of this filing, an empty shell company, with no assets and no liabilities, except for advances from our sole officer and director.

The information presented below with regard to the quarter ended June 30, 2016 should be read as historic information on the Company. As a result of its bankruptcy, the Company as of the date of this filing is an empty shell with no liquidity, no capital resources, and no operations other than the search for a merger candidate.

Liquidity And Capital Resources

As of June 30, 2017 we had no assets and we had no liabilities; we had an accumulated deficit of $18,119,429. As of December 31, 2016 we also had no assets and no liabilities; we had an accumulated deficit of $18,119,429. As of June 30, 2016 we had assets of $207,195 and liabilities of $192,058 and an accumulated deficit of $18,104,292. All assets held at June 30, 2016 were subsequently liquidated per order of the bankruptcy court and all liabilities were paid through a liquidating trust, also per order of the bankruptcy court.

Results of Operations

We had no revenues and no expenses in the three and six months ended June 30, 2017. Our only activity during the period was the filing of an amendment to our Articles of Incorporation increasing the number of authorized common shares from 50,000,000 to 150,000,000 and the issuance of 100,000,000 shares of

our common stock. No proceeds were received by the Company for the issuance of shares, therefore the shares were valued at par value.

In the three months ended June 30, 2016 we had gross revenues of $41,679, cost of sales of $17,504, operating expenses of $127,729, a net loss from operations of $103,554, and total other income of $157,702. In the six months ended June 30, 2016 we had gross revenues of $188,212, cost of sales of $69,821, operating expenses of $411,477, a net loss from operations of $293,087, and total other income of $149,717. The Company had filed a voluntary petition for bankruptcy in February of 2016 and these revenues and expenses reflect the Company’s wind down to liquidation. Our decrease in revenues and liabilities to $0 at June 30, 2017 reflects the liquidation of all assets and payment of all liabilities per the court ordered Plan of Liquidation. All remaining assets and liabilities were transferred from the Company to a liquidating trust on December 28, 2016. We will, in all likelihood, sustain operating expenses without corresponding revenues, as we return the Company to current in its reporting obligations and as we commence the search for a business combination with a company with ongoing business activities. We will depend upon our sole officer and director to make loans to the Company to meet any costs that may occur. All such advances will be interest-free loans or equity contributions.

Going Concern

The accompanying financial statements are presented on a going concern basis. The company's financial condition raises substantial doubt about the Company's ability to continue as a going concern. The Company has no cash and no other material assets and it has no operations or revenues from operations. It is relying on advances from its officer and director to meet its limited operating expenses.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

ITEM 4.     CONTROLS AND PROCEDURES

Evaluation Of Disclosure Controls And Procedures

Our sole officer and director has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934), as of the end of the period covered by this Quarterly Report on Form 10-Q.  Based on such evaluation, our Chief Executive Officer / Chief Financial Officer has concluded that, as of such date, our disclosure controls and procedures were not effective for the same reasons that our internal controls over financial reporting were not adequate.

Internal Control Over Financial Reporting

As indicated in our Form 10-K for the year ended December 31, 2016 our Chief Executive Officer / Chief Financial Officer concluded that our internal control over financial reporting was not effective during the 2016 fiscal year at the reasonable assurance level, as a result of a material weakness primarily related to a lack of a sufficient number of personnel with appropriate training and experience in accounting principles generally accepted in the United States of America, or GAAP. We are currently in the process of evaluating the steps necessary to remediate this material weakness.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the quarterly period ended June 30, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

We believe that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within any company have been detected.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

There have been no material changes to the risks to our business from those described in our Form 10-K as filed with the SEC on December 7, 2017.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On June 20, 2017 the Company issued 100,000,000 shares of its common stock to its President.  No proceeds were received by the Company for the issuance of shares, therefore the shares were valued at par value.  There were no other unregistered sales of equity securities during the period covered by this report on Form 10-Q.  

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. REMOVED AND RESERVED

ITEM 5. OTHER INFORMATION

None.

ITEM 6. - EXHIBITS

No.

Description

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31

Certification of Chief Executive Officer and Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32

Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101

The following materials from the Company’s Quarterly Report on Form 10-Q for

the quarter ended June 30, 2017, formatted in XBRL (eXtensible Business Reporting Language); (i) Balance Sheets at June 30, 2017 and December 31, 2016, (ii) Statement of Operations for the three months and six months ended June 30, 2017 and 2016, (iii) Statement of Cash Flows for the six months ended June 30, 2017 and 2016, and (iv) Notes to Financial Statements.

SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: December 26, 2017               

PACIFIC WEBWORKS, INC.

                                   By: /s/ Daniel Masters

                                       _________________________________

                                       Daniel Masters

                                       President, CEO, CFO, and Director

EX-31.1

EXHIBIT 31

CERTIFICATION OF CHIEF EXECUTIVE OFFICER & CHIEF FINANCIAL OFFICER

I, Daniel Masters, certify that:

1. I have reviewed this report on Form 10-Q of Pacific WebWorks, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. As the registrant's sole certifying officer I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries if any, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. As the registrant's sole certifying officer I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 26, 2017

/s/ Daniel Masters

--------------------------------

Daniel Masters

President, Chief Executive Officer & Chief Financial Officer

EX-32.1

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Pacific WebWorks, Inc. (the “Company”), for the quarter ended June 30, 2017, as filed with the Securities and Exchange Commission (the “Report”), the undersigned, Daniel Masters, chief executive officer of the Company and chief financial officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

(1)   The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

By:

/s/ Daniel Masters

Daniel Masters

Chief Executive Officer and Chief Financial Officer

Dated: December26, 2017

XML

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 26, 2017	Jun. 30, 2016
Document and Entity Information:
Entity Registrant Name	Pacific Webworks Inc
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Trading Symbol	pacw
Amendment Flag	false
Entity Central Index Key	0001086303
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		149,713,895
Entity Public Float			$ 490,713
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2

XML

Statement of Financial Position - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Assets, Current
Cash and Cash Equivalents, at Carrying Value	$ 0
Assets, Current	0
Assets, Noncurrent
Assets	0
Liabilities, Current
AccountsPayableAndAccruedLiabilities	0
Common Stock, Value, Issued	49,714	$ 49,714
AdditionalPaidInCapital	18,069,715	18,069,715
Accumulated Other Comprehensive Income (Loss), Net of Tax	(18,119,429)	$ (18,119,429)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	0
Liabilities and Equity	$ 0

XML

Statement of Financial Position - Parenthetical - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Balance Sheets
Common Stock, Par Value	$ 0.0010	$ 0.0010
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Shares Issued	149,713,895	49,713,895
Common Stock, Shares Outstanding	149,713,895	49,713,895

XML

Statement of Income - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest and Debt Expense
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest		$ 54,148		$ (143,369)
Net Income (Loss) Attributable to Parent		$ 54,148		$ (143,369)
Earnings Per Share
Earnings Per Share, Basic		$ 0.00		$ (0.00)
Weighted Average Number of Shares Outstanding, Basic	60,702,906	49,713,895	55,238,757	60,702,906
Earnings Per Share, Diluted		$ 0.00		$ (0.00)
Weighted Average Number of Shares Outstanding, Diluted	60,702,906	49,713,895	55,238,757

XML

Statement of Cash Flows	6 Months Ended
	Jun. 30, 2016 USD ($)
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Net Cash Provided by (Used in) Operating Activities	$ (114,747)
Net Cash Provided by (Used in) Investing Activities
Net Cash Provided by (Used in) Investing Activities	158,099
Net Cash Provided by (Used in) Financing Activities
Net Cash Provided by (Used in) Financing Activities	(29,564)
Cash and Cash Equivalents, Period Increase (Decrease)	13,788
Cash and Cash Equivalents, at Carrying Value	178,187
Cash and Cash Equivalents, at Carrying Value	$ 191,975

XML

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Notes

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies

NOTE 1 – THE COMPANY

Pacific WebWorks, Inc. (the “Company”) was incorporated in the state of Nevada on May 18, 1987, as Asphalt Associates, Inc. and changed its name to Pacific WebWorks, Inc. in January 1999.   From 1999 to 2016 the Company engaged in the development and distribution of web tools software, electronic business storefront hosting, and Internet payment systems for individuals and small to mid-sized businesses.  On February 23, 2016 the Company filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the District of Utah, and soon afterwards ceased its business activities. On August 19, 2016 the Company proposed a Plan of Liquidation and on November 28, 2016 the Court entered an order confirming the Plan of Liquidation and establishing a Liquidating Trust. On December 28, 2016 all assets and liabilities of the Company were transferred to the Liquidating Trust. All assets, liabilities, and operations have been presented as discontinued operations prior to the December 28, 2016 transfer (see Note 4). The Company currently has no business operations.

NOTE 2 – BASIS OF FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the U. S. Securities and Exchange Commission.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations.  The information furnished in the interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements.  Although management believes the disclosures and information presented adequately ensure that the information is not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s December 31, 2016 audited financial statements and notes thereto. 

XML

Substantial Doubt about Going Concern

6 Months Ended

Jun. 30, 2017

Notes

Substantial Doubt about Going Concern

NOTE 3 – GOING CONCERN

The Company’s consolidated financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.  The Company filed bankruptcy in February 2016 and in December of 2016 all assets and liabilities of the Company were transferred to the Liquidating Trust.  Furthermore, the Company has an accumulated deficit of $18,119,429 as of June 30, 2017.  These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.   

Management’s plans to continue as a going concern include seeking a merger or an acquisition with a larger, better capitalized entity that will benefit current shareholders, however, as of the date hereof, we have not identified any potential merger or acquisition partner.  Because the Company has no capital with which to pay current expenses the Company’s sole officer and director has agreed to pay these charges with his personal funds, as interest free loans to the Company or as capital contributions.

Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

XML

Disposal Groups, Including Discontinued Operations, Disclosure

6 Months Ended

Jun. 30, 2017

Notes

Disposal Groups, Including Discontinued Operations, Disclosure

NOTE 4 – DISCONTINUED OPERATIONS

On February 23, 2016 the Company filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the District of Utah, and soon afterwards ceased its business activities. On August 19, 2016 the Company proposed a Plan of Liquidation and on November 28, 2016 the Court entered an order confirming the Plan of Liquidation and establishing a Liquidating Trust. On December 28, 2016 all assets and liabilities of the Company were transferred to the Liquidating Trust. The Company has recognized the cessation of its business operations in accordance with Accounting Standards Codification (ASC) 205-20, Discontinued Operations. As such, the historical results of the Company have been classified as discontinued operations.

Results of the discontinued operations for the three and six months ended June 30, 2016 are as follows:

			For the Three Months Ended June 30, 2016		For the Six Months Ended June 30, 2016
Revenues
	Hosting, gateway and maintenance fees	$	35,790	$	159,475
	Product sales		5,889		28,737
			41,679		188,212
Cost of sales			17,504		69,821
	Gross profit		24,175		118,390
Selling expenses			8,804		32,966
Research and development			15,182		51,659
General and administrative			103,744		326,852
	Total operating expenses		127,729		411,477
	Loss from operations		(103,554)		(293,087)
Other income (expense)
	Interest income (expense), net		(397)		(1,011)
	Gain on sale of assets		158,099		150,728
	Total other income (expense)		157,702		149,717
	Net income (loss) from discontinued operations	$	54,148	$	(143,369)

Revenues	three months	six months
Hosting, gateway and Maintenance fees	35,790	159,475
Product Sales	5,889	28,737
Total Revenues	41,679	188,212
Cost of Sales	17,504	69,821
Gross Profit	24,175	118,391
Selling Expenses	8,804	32,966
Research and development	15,182	51,659
General and administrative	103,744	326,852
Total operating expenses	127,730	411,477
loss from operations	(103,555)	(293,086)
Other Income (expenses)
Interest Income (expenses)	(397)	(1,011)
Gain on sale of assets	158,099	150,728
Total other Income (expense)	157,702	149,717
Net loss from discontinued operations	54,148	(143,369)

Cash flow from discontinued operations for the six months ended June 30, 2016 are as follows:

Cash Flows From Operating Activities
	Net loss	$	(143,369)
	Adjustments to reconcile net loss to net
	cash used for operating activities:
	Gain on sale of assets		(150,728)
	Changes in assets and liabilities:
	Deposits		4,825
	Receivables		77,196
	Restricted cash		62,840
	Prepaid expenses and other assets		61,952
	Inventory		18,942
	Accounts payable and accrued liabilities		(12,094)
	Deferred revenue		(34,311)
	Net cash used for discontinued operating activities	$	(114,747)
Cash Flows From Investing Activities
	Proceeds from sale of property and equipment	$	158,099
Net cash provided by discontinued investing activities		$	158,099
Cash Flows From Financing Activities
	Cash paid on notes payable	$	(29,564)
	Net cash used for discontinued financing activities	$	(29,564)

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Stockholders' Equity Note Disclosure

6 Months Ended

Jun. 30, 2017

Notes

Stockholders' Equity Note Disclosure

NOTE 5 – EQUITY

On June 19, 2017 the Company amended its Articles of Incorporation to increase its authorized common shares from 50,000,000 to 150,000,000.  

On June 20, 2017 control was purchased from the bankruptcy trustee for $25,000 and the Company issued 100,000,000 shares of its common stock to its President.  No proceeds were received by the Company for the issuance of shares, therefore the shares were valued at par value.

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Subsequent Events

6 Months Ended

Jun. 30, 2017

Notes

Subsequent Events

NOTE 6 – SUBSEQUENT EVENTS                                                  

On November 1, 2017 the Bankruptcy Court for the District of Utah issued a final decree ending the bankruptcy case filed by the Company in February 2016. The Company had been separated from this case on December 28, 2016 when all assets and liabilities were transferred to a liquidating trust.

The Company has evaluated subsequent events in accordance with the provisions of ASC 855 and has identified that there are no additional subsequent events that require disclosure. 

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Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Basis of Accounting, Policy (Policies)

6 Months Ended

Jun. 30, 2017

Policies

Basis of Accounting, Policy

NOTE 2 – BASIS OF FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the U. S. Securities and Exchange Commission.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations.  The information furnished in the interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements.  Although management believes the disclosures and information presented adequately ensure that the information is not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s December 31, 2016 audited financial statements and notes thereto. 

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Disposal Groups, Including Discontinued Operations, Disclosure: Disposal Groups, Including Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Disposal Groups, Including Discontinued Operations	Revenues

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Disposal Groups, Including Discontinued Operations, Disclosure: Disposal Groups, Including Discontinued Operations (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Revenues
Hosting	$ 35,790	$ 159,475
Product Sales	5,889	28,737
Revenues	41,679	188,212
Cost of Goods Sold	17,504	69,821
Gross Profit	24,175	118,391
Selling Expense	8,804	32,966
Research and Development Expense	15,182	51,659
General and Administrative Expense	103,744	326,852
Operating Expenses	127,730	411,477
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent	(103,555)	(293,086)
Other Noncash Income (Expense)
Interest Income (Expense), Net	(397)	(1,011)
Gain (Loss) on Disposition of Assets for Financial Service Operations	158,099	150,728
Other Noncash Income (Expense)	157,702	149,717
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	$ 54,148	$ (143,369)