10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ending June 30, 2022

or

☐  TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number:  000-52390

Advanced Voice Recognition Systems, Inc.

(Exact name of registrant as specified in its charter)  

Nevada	98-0511932
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

7659 E. Wood Drive, Scottsdale, Arizona 85260

(Address of principal executive offices)

(480) 704-4183

(Registrant's telephone number, including area code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock par value $0.001 per share	AVOI	NONE

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 [X] No [_]

Indicate by check mark whether the registrant has submitted electronically 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.

Yes [X] No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” non-accelerated filer “smaller reporting company” or “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[_]	Accelerated filer	[_]
Non-accelerated filer	[X]	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No [X]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of  July 27, 2022, 284,920,269 shares of common stock are issued and outstanding.

1

Advanced Voice Recognition Systems, Inc.

Table of Contents

PART I - FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements
	Unaudited Condensed Balance Sheets as of June 30, 2022 and December 31, 2021.	3
	Unaudited Condensed Statements of Operations for the three and six months ended June 20, 2022 and 2021.	4
	Unaudited Condensed Statement of Stockholders’ Deficit for the three and six months ended June 30, 2022 and 2021	5
	Unaudited Condensed Statements of Cash Flows for the six months ended June 30, 2022 and 2021.	6
	Notes to Unaudited Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3	Quantitative and Qualitative Disclosures About Market Risk	13
Item 4T.	Controls and Procedures	13
PART II - OTHER INFORMATION
Item 5.	Legal Proceedings	15
Item 6.	Exhibits	15
SIGNATURES		17

2

Part I. Financial Information

Item 1. Financial Statements

Advanced Voice Recognition Systems, Inc.

Condensed Balance Sheets

(Unaudited)

		June 30, 2022		December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents	$	618	$	12,148
Total Current Assets		618		12,148
Non-Current Assets
Patent, net		-		-
Total Non-Current Assets		-		-
Total Assets	$	618	$	12,148
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable	$	103,513	$	101,182
Payroll		162,381		162,380
Note Payable AIP		19,935		19,935
Advance Related Party		24,803		14,700
Accrued Interest		14,951		13,955
Total Current Liabilities		325,583		312,152
Total Liabilities	$	325,583	$	312,152
Commitments and Contingencies
Stockholders' Deficit
Common stock, $0.001 par value; 547,500,000 shares authorized
284,920,269 and 284,586,935 issued and outstanding respectively	$	284,920	$	284,587
Additional paid-in capital		8,003,500		7,998,833
Accumulated Deficit		(8,613,385)		(8,583,424)
Total Stockholders' Deficit		(324,965)		(300,004)
Total Liabilities and Stockholders' Deficit	$	618	$	12,148

The accompanying notes are an integral part of these financial statements.

3

Advanced Voice Recognition Systems, Inc.

Condensed Statements of Operations

(Unaudited)

		Three Months Ended		Three Months Ended	Six Months Ended	Six Months Ended
		June 30,		June 30,	June 30 30,	June 30,
		2022		2021	2022	2021
Sales	$	-	$	-	-	-
Cost of goods sold		-		-	-	-
Gross profit		-		-	-	-
Operating expenses:
General and administrative:
Compensation		24		23	4,047	92
Professional fees		6,600		11,869	19,670	23,694
Office		2,057		5,490	4,016	11,426
Other		357		432	989	989
Total operating expenses		9,038		17,814	28,722	36,201
Loss from operations		(9,038)		(17,814)	(28,722)	(36,201)
Other income and (expense):
Interest expense		(740)		(634)	(1,239)	(1,147)
Net other expense		(740)		(634)	(1,239)	(1,147)
Loss before income taxes		(9,778)		(18,448)	(29,961)	(37,348)
Provision for income taxes		-		-	-	-
Net Loss	$	(9,778)	$	(18,448)	(29,961)	(37,348)
Basic and diluted loss per common share	$	-	$	-	-)	-)
Weighted average number of common shares		284,920,269		280,506,935	284,920,269	280,446,935

*less than $0.01 per share

The accompanying notes are an integral part of these financial statements

4

Advanced Voice Recognition Systems, Inc.

Condensed Statement of Stockholders’ Deficit

(Unaudited)

For the period ending June 20, 2021

	Common Stock		Additional	Accumulated
	Shares	Par Value	Paid In Capital	Deficit	Total
Balance at December 31, 2020	280,386,935	280,387	7,957,033	(8,500,043)	(262,623)
Sales of Common Stock	-	-	-	-	-
Net Loss	-	-	-	(18,900)	(18,900)
Balance at March 31, 2021	280,386,935	280,387	7,957,033	(8,518,943)	(281,523)
Sales of Common Stock	200,000	200	1,800	-	2,000
Net Loss	-	-	-	(18,448)	(18,448)
Balance at June 30, 2021	280,586,935	280,587	7,958,833	(8,537,391)	(297,971)

For the period ending June 30, 2022

	Common Stock		Additional	Accumulated
	Shares	Par Value	Paid In Capital	Deficit	Total
Balance at December 31, 2021	284,586,935	284,587	7,998,833	(8,583,424)	(300,004)
Sales of Common Stock	333,334	333	4,667	-	5,000
Net Loss	-	-	-	(20,183)	(20,183)
Balance at March 31, 2022	284,920,269	284,920	8,003,500	(8,603,607)	(315,187)
Sales of Common Stock	-	-	-	-	-
Net Loss	-	-	-	(9,778)	(9,778)
Balance at June 30, 2022	284,920,269	284,920	8,003,500	(8,613,385)	(324,965)

The accompanying notes are an integral part of these financial statements

5

Advanced Voice Recognition Systems, Inc.

Condensed Statements of Cash Flows

(Unaudited)

		Six Months Ended June 30,
		2022		2021
Cash Flows from Operating Activities:
Net loss	$	(29,961)	$	(37,348)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization and depreciation		-		7,352
Changes in operating assets:
Changes in operating liabilities:
Accounts payable and accrued liabilities		3,328		14,135
Net cash used in operating activities		(26,633)		(15,861)
Cash Flows from Investing Activities:
Payments for deferred costs		-		-
Net cash used in investing activities		-		-
Cash Flows from Financing Activities:
Proceeds from sale of common stock		5,000		2,000
Advance from related party		10,103		13,695
Net cash provided by financing activities		15,103		15,695
Net change in cash		(11,530)		(166)
Cash at Beginning of Period		12,148		348
Cash at End of Period	$	618	$	182
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest	$	997	$	997
Income taxes	$	-	$	-

The accompanying notes are an integral part of these financial statements.

6

Advanced Voice Recognition Systems, Inc.

Notes to Unaudited Condensed Financial Statements

Note 1.     Nature of Operations

Company Overview

The operations of Advanced Voice Recognition Systems, Inc. (“AVRS” or the “Company”), http://www.avrsys.com, commenced in 1994 with a predecessor entity called NCC, Inc. NCC, Inc. was incorporated on March 15, 1994 in the State of Ohio. NCC, Inc. operated as a software and hardware development company that marketed voice recognition and transcription products for commercial applications.

In May 2000, WG Investments, LLC acquired the assets of NCC, Inc. and subsequently changed its name to NCC, LLC. NCC, LLC (also a predecessor to AVRS) continued the operations of NCC, Inc. until approximately December 31, 2001, when shifts in the industry’s markets caused NCC, LLC to suspend its operations.

AVRS was incorporated in the State of Colorado on July 7, 2005. In September 2005, the members of NCC, LLC transferred all of their membership interests in NCC, LLC to AVRS in exchange for 93,333,333 shares (post-recapitalization) of AVRS common stock. In December 2005, the Board of Directors approved a 1.5-to-1 stock split issuing 46,666,667 common shares (post-recapitalization), which increased the number of common shares outstanding to 140 million shares (post-capitalization). Following the incorporation of AVRS, the Company initiated a new business plan and intends to continue its operations in the voice recognition and transcription industry.

AVRS is a software development company specializing in speech recognition technologies. AVRS has successfully obtained patent protection of its proprietary technology (refer to Note 3, Intangible Assets).   The Company continues to explore all options to monetize and enforce our patent portfolio through patent enforcement and licensing of the six patents issued.

Stock Purchase Agreements

During the six months ended June 30, 2022, the Company entered into a Stock Purchase Agreement for the private sale to one person or entity of an aggregate of 333,334 shares of the common stock for aggregate proceeds of $5,000. Full payment was received in the period. During the year ended December 31, 2021 the Company entered into Stock Purchase Agreements for the private sale to five persons or entities of an aggregate of 4,200,000 shares of the common stock for aggregate proceeds of $46,000, full payment of which was received in the period.

Commitments and Contingencies

On April 20, 2015 Advanced Voice Recognition Systems, Inc. (“AVRS”) entered into a Material Letter Agreement with an unrelated third party (“AIP”) in which they promise to pay to patent legal counsel funds to continue prosecuting Patents on behalf of AVRS.  AVRS promises to pay AIP, or to such other holder of this promissory note (Note) as designate, the principal, together with a premium of ten percent (10%) of Principle and two percent (2%) of proceeds received by Company from a Monetization Event initiated by AIP.  Interest was accrued and reported at June 30, 2022.

On November 1, 2016, Advanced Voice Recognition Systems, Inc. (“AVRS”) entered into a Contingent Fee Agreement (the “Agreement”) with Legal Representation pursuant to which they will represent AVRS in connection with investigating and asserting claims relating to certain patents, including the negotiation of license agreements and the filing and prosecution of lawsuits, against any potential infringers of rights associated with such patents (the “Patent Rights”).  Legal representation will handle licensing and litigation activities under the Agreement on a contingent fee basis.  The fee will depend upon whether AVRS recovers any sums by way of licensing, settlement, trial or otherwise with respect to the Patent Rights.  On June 6, 2017 AVRS and Legal Representation revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Letter Agreement which was to provide advisory services, court filing fees, discovery and other litigation costs.  The revised Contingent Fee Agreement assumed the responsibility for the costs and expenses in the Terminated August 20, 2015 Letter Agreement and provides for the payment of twenty percent (20%) of all gross Licensing Agreement Proceeds and thirty percent (30%) of all Litigation Proceeds received by AVRS.  In addition, if the Litigation Proceeds agreed to or received by AVRS at any time are $100,000 or less then Legal Representative shall receive forty percent (40%) of the Litigation Proceeds.

On June 21, 2018, Advanced Voice Recognition Systems, Inc. (“AVRS”) and Buether Joe & Carpenter, LLC (“BJC) entered into a Letter of Engagement for Legal Services Limited Scope Agreement (“Agreement”) with Schmeiser, Olsen & Watts LLP (“the Firm”) pursuant to which the Firm will serve as local counsel in the United States District Court, District of Arizona.  The Firm has been hired to represent AVRS as local counsel in connection with forthcoming litigation in the U.S. District Court, District of Arizona.    AVRS may terminate the Agreement at any time.

7

On July 22, 2019 Apple, Inc. submitted a petition for Inter Partes Review (IPR) of the AVRS patent.  It was ordered in the case of AVRS, Inc. v. Apple Inc (Case No. 2-18-cv-2083) that the parties’ stipulation was granted and the case is stayed pending the resolution of the IPR proceeding.  Buether Joe and Carpenter, LLC (BJC), our representation in the AVRS v. Apple litigation represents AVRS in the IPR. The IPR response to the Patent Trial and Appeal Board (PTAB) was done November 8, 2019.  On January 13, 2021, the United States Patent and Trademark Office Patent Trial and Appeal Board (PTAB) issued a Final Written Decision under 35 U.S.C. § 318(a) in Inter Partes Review petitioned by Apple Inc.  The decision found that claims 15 and 17 of AVRS’s U.S. Patent No. 7,558,730 B2 were invalid under 35 U.S.C. § 103(a).   On March 17, 2021, AVRS filed an appeal to the United States Court of Appeals for the Federal Circuit Docket Number 2021-1745. AVRS appeals the Patent Trial and Appeal Boards (“PTAB”) Final Written Decision on January 13, 2021 in the Inter Partes Review (IPR 2019-01352) petitioned by Apple, Inc of U. S. Patent No. 7,558,730.  The Federal Docket was argued in the Court of Appeals in December 2021.   Oral arguments were held on March 10, 2022.  On March 15, 2022, the United States Court of Appeals for the Federal Circuit issued a Judgement Affirming the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2019-01352.  The decision found that claims 15 and 17, the only claims challenged by Apple out of a total of 18 claims of Advanced Voice Recognition Systems, Inc. (AVRS) U.S. Patent No. 7,558,730 B2 were invalid under 35 U.S.C. § 103(a). AVRS is exploring all options to enforce and monetize our patent portfolio by way of patent enforcement litigation and licensing agreements.

Note 2.     Significant Accounting Policies

Unaudited Financial Information

The accompanying financial information at June 30, 2022 and for the six months ended June 30, 2022 and 2021 is unaudited.  In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company’s financial position at June 30, 2022 and its operating results for the six months ended June 30, 2022 and 2021 have been made.  Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2021.  The results of operations for the six months ended June 30, 2022 are not necessarily an indication of operating results to be expected for the year ending December 31, 2022.

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities exceed assets and there is a capital deficiency of $324,965 and no significant revenues.  The Company may be unable to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.   During the twelve months ended December 31, 2021 the Company received an aggregate of $46,000 from the sale of shares in private offerings of its common stock.  During the six months ended June 30, 2022, the Company received an aggregate of $5,000 from the sale of shares in private offerings of its common stock.

The Company’s current operations are related to patent monetization and filing of additional patents.  The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS.  Dominion has agreed to advanced costs up to an aggregate of $10,000,000. On June 28, 2017 the Company and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  The Company did not incur any material early termination penalties.  In addition, the Company has revised the Contingent Fee Agreement with Buether Joe & Carpenter, LLC which will represent AVRS in connection with investigating and asserting claims to the AVRS patents including licensing and litigation activities. Any and all advanced costs will only become liabilities if successful.  On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.  There is no guarantee that AVRS will be able to provide the capital required for the Company to continue as a going concern.

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

8

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. The Company had cash at June 30, 2022 of $618, and $12,148 at December 31, 2021.  No amounts resulted from cash equivalents.

Note 3.     Intangible and Fixed Assets

Intangible Assets

The Company monitors the anticipated outcome of legal actions, and if it determines that the success of the defense of a patent is probable, and so long as the Company believes that the future economic benefit of the patent will be increased, the Company capitalizes external legal costs incurred in the defense of the patent. Upon successful defense of litigation, the amounts previously capitalized are amortized over the remaining life of the patent.

On July 7, 2009, U.S. Patent # 7,558,730, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 7, 2009 and ending 20 years from the application date of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2009 and the Company began amortization.  AVRS filed a Complaint in the United States District Court Northern District for Arizona (Case No. 2-18-cv-2083) on July 3, 2018, and alleges that Apple products infringe U.S. Patent No. 7,558,730 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” (the “‘730 Patent”). The patent was fully amortized in the fourth quarter 2021.

On May 24, 2011, U.S. Patent #7,949,534, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning May 24, 2011 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended June 30, 2011 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

On March 6, 2012, U.S. Patent #8,131,557, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning March 6, 2012 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended March 31, 2012 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

On July 30, 2013, U.S. Patent #8,498,871, entitled “Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 30, 2013 and ending 20 years from the application date of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2013 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

On September 22, 2015, U.S. Patent #9,142,217, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning September 22, 2015 and ending 20 years from the application date of the parent application (US Patent No. 7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2015 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

On April 3, 2018, U.S. Patent #9,934,786, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning April 3, 2018 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001 or November 27, 2021.  The deferred costs were capitalized during the quarter ended June 30, 2018 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

9

Amortization at December 31, 2021 is as follows:

SCHEDULE OF INTANGIBLE ASSETS

Ended December 31, 2021
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277		58,277		-
7,949,534		3,365		3,365		-
8,131,557		5,092		5,092		-
8,498,871		21,114		21,114		-
9,142,217		35,068		35,068		-
9,934,786		4,575		4,575		-
	$	127,491	$	127,491	$	-

Amortization at June 30, 2022 is as follows:

Ended June 30, 2022
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277		58,277		-
7,949,534		3,365		3,365		-
8,131,557		5,092		5,092		-
8,498,871		21,114		21,114		-
9,142,217		35,068		35,068		-
9,934,786		4,575		4,575		-
	$	127,491	$	127,491	$	-

The Patents were fully amortized in the fourth quarter 2021.

Note 4.     Related Party Transactions

Related Parties Transactions and Indebtedness

The Company owed the officers aggregate of $162,381 at June 30, 2022 and $ 162,380 December 31, 2021 for accrued payroll.  During the period of six months ending June 30, 2022, June 30, 2021 the Company paid gross payroll of $4,047 and $92 for payroll expenses. At June 30, 2022 the Secretary Treasurer advanced the Company $24,803 for operating expenses. At June 30, 2021 our Secretary Treasurer advanced the Company $14,700 for operating expenses.

Note 5.Note Payable & Accounts Payable 

On April 20, 2015, the Company entered into a Material Letter Agreement with an unrelated third-party AIP” in which they promise to pay to patent legal counsel funds to continue prosecuting Patents on behalf of AVRS.  AVRS promises to pay AIP, or to such other holder of this promissory note (Note) as designate, the principal, together with a premium of ten percent (10%) of Principle and two percent (2%) of proceeds received by Company from a Monetization Event initiated by AIP. Interest was accrued and reported at June 30, 2022.

On September 24, 2018, the Company, entered into Promissory Note with Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors.  The Promissory Note is effective as of September 24, 2018 in the principal amount of $9,000 with a maturity date of the Promissory Note September 24, 2019.  Interest at 4% per annum was charged and accrued at December 31, 2018.  The Company repaid $2,500 of the note on December 10, 2018.  During 2019 the Company repaid $6,500, paying the note in full on December 27, 2019.  Interest at 4% per annum was charged and accrued at December 31, 2019.  Accrued interest of $254 was paid on February 28, 2020.

Note 6.Stockholder Equity / (Deficit) 

The Company has issued shares of its common stock pursuant to certain agreements as described in Note 1.

Note 7.    Subsequent Events

None

10

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The statements contained in this Quarterly Report that are not historical are “forward-looking statements”, which can be identified by use of terms such as “may”, “could”, “should”, “expect”, “plan”, “project”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “pursue”, “target” or “continue”, the negative of such terms or other comparable terminology, although some forward-looking statements may be expressed differently.

The forward-looking statements contained in this 10-Q are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management’s assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this 10-Q are not guarantees of future performance, and we cannot assure any reader that such statements will be realized or the forward-looking events and circumstances will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to various factors listed in this Quarterly Report. All forward-looking statements speak only as of the date of this 10-Q. We do not intend to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

Overview

We are a software development company headquartered in Scottsdale, Arizona. We specialize in creating interface and application solutions for speech recognition technologies. Our speech recognition software and related firmware was first introduced in 1994 at an industry trade show.  We currently have limited capital resources.  We are not currently engaged in marketing any products.  Our principal assets are our patents.  Our business strategy will be to attempt to interest other companies in entering into license agreements or other strategic relationships and to support and defend our patents through infringement and interference proceedings, as appropriate. We are currently engaged in discussions with firms that could assist us in commercialization of our intellectual assets.

Results of Operations

We completed a stock exchange on May 19, 2008 and changed our business model. We have not generated any revenue since the stock exchange and do not have any cash generating product or licensing sales.

At June 30, 2022, we had current assets of $618 and current liabilities of $325,583, as compared to $12,148 current assets and $312,152 in current liabilities at December 31, 2021. Our decrease in current assets is attributed increased professional fees. Our increase in current liabilities is due to an increase in Accounts Payable.

We had a net loss of $29,961 and $37,348 for the six months ended June 30, 2022 and 2021 respectively. The decrease in net loss is attributable to decreased compensation.

Liquidity and Capital Resources

For the six months ended June 30, 2022, we used $26,633 of cash in operating activities and -0- in investing activities, and we received a $5,000 cash from the sale of our common stock and $10,103 advance from related party. As a result, for the six months ended June 30, 2022 we recognized a $11,530 decrease in cash on hand. For the six months ended June 30, 2021, $15,861 cash was used in operating activities, $-0- cash in investing activities, and we received $ 2,000 cash from the sale of our common stock, and $13,695 advance from related party resulting in a $166 decrease in cash on hand for the period.

Historically, our President has loaned or advanced to us funds for working capital on an “as needed” basis. There is no assurance that these loans or advances will continue in the future. At June 30, 2022 and December 31, 2021, we owed our officers an aggregate of $162,381 for accrued payroll.  On September 24, 2018, the Company entered into Promissory Note with Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors.  The Promissory Note is effective as of September 24, 2018 in the principal amount of $9,000 with a maturity date of the Promissory Note September 24, 2019.  Interest at 4% per annum was charged and accrued at December 31, 2018.  The Company repaid $2,500 of the note on December 10, 2018.  During 2019 the Company repaid $6,500, paying the note in full on December 27, 2019.  Interest at 4% per annum was charged and accrued at December 31, 2019.  Accrued interest of $254 was paid on February 28, 2020.  On January 31, 2020 the Company advanced Walter Geldenhuys $1,000.  Mr. Geldenhuys repaid the advance on February 28, 2020. On June 21, 2021 Mr. Geldenhuys advanced the Company $4200.  The advance was paid in full on January 7, 2022.  In the six months ending June 30, 2022 our Secretary Treasurer advanced the Company a total of $10,103.

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On March 16, 2015 we entered into a letter agreement with Adapt IP Ventures, LLC (Adapt IP) confirming the retention of Adapt IP to assist us in identifying companies that might be interested in acquiring and / or licensing our patents, to attempt to negotiate financial terms and conditions for acquisition and / or licensing and to assist with collection of compensation from such entities.  Adapt IP will receive a success fee of 15% of net compensation received from such entities based upon Adapt IP’s efforts.  We or Adapt IP may terminate the agreement upon 30 days’ notice to the other party.

On April 20, 2015 we made a Promissory Note to Adapt IP for up to $20,000, and Adapt IP agreed to pay to our patent counsel $19,935 for patent work on our behalf.  The Note matures one year from the date of the Note.  We are obligated to repay the funds advanced by Adapt IP plus a premium of 10% of the principal amount and a percentage of proceeds received by us from any monetization event involving the patents.  If we repay the Note within the six months of the date of the Note, the percentage will be 1%, and it will be 2% after six months.  As of June 30, 2022, $14,951 interest has accrued.

On August 20, 2015, AVRS entered into a letter agreement with Dominion Harbor Group, LLC pursuant to which Dominion will provide strategic advisory services to AVRS to support the common goal of the acquisition, sale, licensing, prosecution, enforcement, and settlement with respect to AVRS’s intellectual property, including patents held by AVRS. On June 28, 2017 AVRS and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  AVRS did not incur any material early termination penalties in connection of the early termination of the agreement.

On November 1, 2016, AVRS entered into a Contingent Fee Agreement with Buether Joe and Carpenter, LLC to represent AVRS in connection with investigating and asserting claims including negotiating license agreements and the filing and prosecution of lawsuits against any potential infringers of the Patent rights. On June 6, 2017 AVRS and Buether Joe and Carpenter, LLC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.

On June 21, 2018, Advanced Voice Recognition Systems, Inc. (“AVRS”) and Buether Joe & Carpenter, LLC (“BJC) entered into a Letter of Engagement for Legal Services Limited Scope Agreement (“Agreement”) with Schmeiser, Olsen & Watts LLP (“the Firm”) pursuant to which the Firm will serve as local counsel in the United States District Court, District of Arizona.   AVRS may terminate the Agreement at any time.

In carrying out our business strategy, we will likely continue to incur expenses in defending our patents and pursuing license agreements.  We plan to raise additional funds through future sales of our securities or other means, until such time as our revenues are sufficient to meet our cost structure, and ultimately achieve profitable operations. There is no assurance we will be successful in raising additional capital or achieving profitable operations. Our board of directors may attempt to use non-cash consideration to satisfy obligations that may consist of restricted shares of our common stock. These actions would result in dilution of the ownership interests of existing shareholders and may further dilute our common stock book value.

To obtain sufficient funds to meet our future needs for capital, we will from time to time, evaluate opportunities to raise financing through sales of our securities. However, future equity or debt financing may not be available to us at all, or if available, may not be on terms acceptable to us. We do not intend to pay dividends to shareholders in the foreseeable future.

U.S. Patent #7,558,730 expands an extremely broad base of features in speech recognition and transcription across heterogeneous protocols.  Costs totaling $58,277 have been capitalized and amortization began in the third quarter 2009.  The patent was fully amortized in the fourth quarter 2021.

U.S. Patent #7,949,534 is an expansion of the coverage of our second patent and incorporates speech recognition and transcription among transcription engines employing incompatible protocols.  Costs totaling $3,365 have been capitalized and amortization began in the second quarter 2011. The patent was fully amortized in the fourth quarter 2021.

U.S. Patent #8,131,557 is an expansion of our second and third patent.  Costs totaling $5,092 have been capitalized and amortization began in the first quarter 2012. The patent was fully amortized in the fourth quarter 2021.

U.S. Patent #8,498,871 titled “Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued July 30, 2013 by the U.S. Patent and Trademark Office. Costs totaling $21,114 have been capitalized and amortization began in the third quarter 2013.  The patent was fully amortized in the fourth quarter 2021.

On September 22, 2015, Patent #9,142,217 titled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” (an expansion of our fourth patent) was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning September 22, 2015 and ending 20 years from the application date of the parent application (U.S. Patent No 7,558,730) of November 27, 2001, or November 27, 2021.  Costs totaling $35,068 have been capitalized and amortization began in the third quarter 2015. The patent was fully amortized in the fourth quarter 2021.

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On April 3, 2018, U.S. Patent #9,934,786 titled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning April 3, 2018 and ending 20 years from the application date of the parent application (U.S. Patent No 7,558,730) of November 27, 2001, or November 27, 2021.  Costs totaling $4575 have been capitalized and amortization began in the second quarter 2018. The patent was fully amortized in the fourth quarter 2021.

In order for our operations to continue, we will need to generate revenues from our intended operations sufficient to meet our anticipated cost structure.

Off-Balance Sheet Arrangements

On March 16, 2015 Advanced Voice Recognition Systems, Inc. (AVRS) entered into a material Letter Agreement with Adapt IP Ventures, LLC (Adapt IP) in which it retained Adapt IP on an exclusive basis.  Adapt IP will assist AVRS in identifying companies that might be interested in acquiring and / or licensing the Patents, attempt to negotiate financial terms and conditions for the acquisition and /or licensing of the Patents with such Entity(ies) and assist with collection of compensation from such entities.  In connection with services provided under this Agreement, AVRS shall pay Adapt IP a success fee.

On August 20, 2015, Advanced Voice Recognition Systems, Inc. (AVRS) entered into a letter agreement with Dominion Harbor Group, LLC (Dominion) pursuant to which Dominion will provide strategic advisory services to AVRS to support the common goal of the acquisition, sale, licensing, prosecution, enforcement, and settlement with respect to AVRS’s intellectual property, including patents held by AVRS. Dominion has agreed to advance costs recommended by it, including court filing fees, discovery and other litigation costs, and patent prosecution costs, up to an aggregate of $10,000,000.   AVRS will be responsible for costs not recommended by Dominion, as well as travel and ordinary business expenses incurred by AVRS.  Except for the advanced costs by Dominion, AVRS will be responsible for any contingency payments to law firms.  On June 28, 2017 AVRS and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  AVRS did not incur any material early termination penalties in connection of the early termination of the agreement.

On November 1, 2016, Advanced Voice Recognition Systems, Inc. (“AVRS”) entered into a Contingent Fee Agreement (the “Agreement”) with Buether Joe & Carpenter, LLC (“BJC”) pursuant to which BJC will represent AVRS in connection with investigating and asserting claims relating to certain patents, including the negotiation of license agreements and the filing and prosecution of lawsuits, against any potential infringers of rights associated with such patents (the “Patent Rights”)  BJC will handle licensing and litigation activities under the Agreement on a contingent fee basis.  BJC’s fee will depend upon whether AVRS recovers any sums by way of licensing, settlement, trial or otherwise with respect to the Patent Rights.  On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

Item 4.   Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer, who also is our chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) and pursuant to Rules 13a-15(b) and 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of December 31, 2021. Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act, such as this Form 10-Q, is recorded, processed, summarized and reported, within the time period specified in the SEC’s rules and forms, and that such information is accumulated and is communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

We have identified, as of December 31, 2021 and 2020, a lack of segregation of duties in accounting and financial reporting activities, which we do not believe is a material weakness.  The size of our business necessarily imposes practical limitations on the effectiveness of those internal control practices and procedures that rely on the segregation of duties.  Our chief executive officer and chief financial

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officer work closely and review all day-to-day transactional activities with the secretary Treasurer.  The volume of the transactions of the Company is limited.

Management believes this lack of segregation of duties in accounting and financial reporting did not result in material inaccuracies or omissions of material fact and, to the best of its knowledge, believes that the financial statements for the years ended December 31, 2021 and 2020 fairly present in all material respects the financial condition and results of operations for the Company in conformity with GAAP.  There is, however, a reasonable possibility that a material misstatement of the annual or interim financial statements would not have been prevented or detected as a result of this weakness.

Based on our evaluation, our chief executive officer, who also is our chief financial officer, concluded that our disclosure controls and procedures are designed at a reasonable assurance level and were fully effective as of June 30, 2022 in providing reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated  to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in internal control over financial reporting.

We regularly review our system of internal control over financial reporting and make changes to our processes and systems to improve controls and increase efficiency, while ensuring that we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient systems, consolidating activities, and migrating processes.

There were no changes in our internal controls over financial reporting that occurred during the period covered by this Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 5. Legal Proceedings

On November 6, 2017 Advanced Voice Recognition Systems, Inc (AVRS) received notice that Meyers & Associates, LLC (M&A) filed Complaint number 2017CV32482 in Arapahoe County District Court on October 30, 2017. The Complaint relates to purported legal fees owed by AVRS.  On January 31, 2018 AVRS entered into a Settlement Agreement and Promissory Note with Meyers & Associates, LLC (M&A).  AVRS promises to pay the principal sum of Fifty-Two Thousand Three Hundred Eighty-Five Dollars and Forty-Six Cents ($52,385.46) as well as accrued interest. AVRS shall pay $1,000 per month on the first day of each month beginning February 1, 2018 and continuing through July 1, 2018 and pay all remaining unpaid principal and accrued interest on August 1, 2018.  All payments have been paid.

On August 1, 2018 AVRS and M&A entered into an Agreement to Amend Promissory Note. AVRS shall pay $6,000 on or before August 1, 2018, shall pay $1,500 on the first day of each month beginning September 1, 2018 and continuing through November 1, 2018 and shall pay all remaining unpaid principal and accrued interest on December 1, 2018.  All payments have been paid.

On November 21, 2018 AVRS and Meyers & Associates entered into a Second Agreement to Amend Promissory Note.  AVRS shall pay $20,000 on or before November 21, 2018, shall pay $1,500 on the first day of each month beginning January 1, 2019 and continuing through June 1, 2019 and shall pay all remaining principal and interest on July 1, 2019.  On June 7, 2019 a balloon payment of $11,046.74 was paid and the note is paid in full.

AVRS filed a Complaint in the United States District Court Northern District for Arizona (Case No. 2-18-cv-2083) on July 3, 2018, and alleges that Apple products infringe U.S. Patent No. 7,558,730 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” (the “‘730 Patent”).  AVRS is seeking, among other things, a Judgement of infringement, past damages no less than a reasonable royalty, attorneys’ fees, pre and post Judgement interest and costs including expenses and disbursements and any other relief deemed proper by the Court.

On July 22, 2019 Apple, Inc. submitted a petition for Inter Partes Review (“IPR”) of the AVRS patent.  It was ordered in the case of AVRS, Inc. v. Apple Inc (Case No. 2-18-cv-2083) that the parties’ stipulation was granted and the case is stayed pending the resolution of the IPR proceeding.  Buether Joe and Carpenter, LLC (“BJC”), our representation in the AVRS v. Apple litigation will represent AVRS in the IPR. The IPR response to the Patent Trial and Appeal Board (“PTAB”) was made on November 8, 2019.  The PTAB has instituted the IPR on some of the grounds asserted by Apple and denied institution on other grounds asserted by Apple.  This means that the IPR will proceed but only on the grounds instituted by the PTAB.  Due to the interruption from COVID-19 the Company responded to the PTAB on September 18, 2020.  Oral arguments were presented remotely on October 26, 2020.  On January 13, 2021 the PTAB Final Written Decision under 35 U.S.C. § 318(a) in Inter Partes Review petitioned by Apple Inc.  The decision found that claims 15 and 17 of AVRS’s U.S. Patent No. 7,558,730 B2 were invalid under 35 U.S.C. § 103(a).  On March 17, 2021 AVRS filed an appeal to the United States Court of Appeals for the Federal Circuit Docket Number 2021-1745. On July 26, 2021 the Opening Brief was filed in the Advanced Voice Recognition Systems, Inc v. Apple, Inc. case.  Apple filed a response on October 22, 2021.  The Federal Docket was argued in the Court of Appeals in December 2021. Oral arguments were held on March 10, 2022.  On March 15, 2022, the United States Court of Appeals for the Federal Circuit issued a Judgement Affirming the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2019-01352.  The decision found that claims 15 and 17, the only claims challenged by Apple out of a total  of 18 claims of Advanced Voice Recognition Systems, Inc. (AVRS) U.S. Patent No. 7,558,730 B2 were invalid under 35 U.S.C. § 103(a). AVRS is exploring all options to enforce and monetize our patent portfolio by way of patent enforcement litigation and licensing agreements.

Item 6. Exhibits

ITEM 6. EXHIBITS

2.1	Stock Exchange Agreement dated April 14, 2008 between Samoyed Energy Corp. and Certain Shareholders of Advanced Voice Recognition Systems, Inc. (1)
2.2	Agreement and Plan of Merger between Samoyed Energy Corp. and Advanced Voice Recognition Systems, Inc. (2)
2.3	Agreement and Plan of Merger between Advanced Voice Recognition Systems, Inc. and NCC, LLC (7)
3.1	Articles of Incorporation (3)
3.2	Certificate of Change to Articles of Incorporation (4)
3.3	Bylaws (3)
10.1	Termination Agreement dated January 22, 2008 between Samoyed Energy Corp. and 313866 Alberta Ltd. (5)
10.2	Purchase and Sale Agreement dated May 15, 2008 between Samoyed Energy Corp. and Stone Canyon Resources, Inc. (6)
10.3	Purchase Agreement dated March 27, 2019 between Advanced Voice Recognition Systems, Inc. and an Investor (9)
10.4	Purchase Agreement dated March 27, 2019 between Advanced Voice Recognition Systems, Inc. and an Investor (10)
10.5	Purchase Agreement dated March 27, 2019 between Advanced Voice Recognition Systems, Inc. and an Investor (11)

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10.6	Purchase Agreement dated April 5, 2019 between Advanced Voice Recognition Systems, Inc. and an Investor (12)
10.7	Purchase Agreement dated May 1, 2019 between Advanced Voice Recognition Systems, Inc. and an Investor (13)
10.8	Purchase Agreement dated May 1, 2019 between Advanced Voice Recognition Systems, Inc. and an Investor (14)
10.9	Other Event dated July 22, 2019 (15)
10.10	Purchase Agreement dated August 29, 2019 between Advanced Voice Recognition Systems, Inc. and an Investor (16)
10.11	Purchase Agreement dated December 4, 2019 between Advanced Voice Recognition Systems, Inc. and an Investor (17)
10.12	Purchase Agreement dated December 4, 2019 between Advanced Voice Recognition Systems, Inc. and an Investor (18)
10.13	Purchase Agreement dated January 2, 2020 between Advanced Voice Recognition Systems, Inc. and an Investor (19)
10.14	Purchase Agreement dated January 3, 2020 between Advanced Voice Recognition Systems, Inc. and an Investor (20)
10.15	Purchase Agreement dated June 5, 2020 between Advanced Voice Recognition Systems, Inc. and an Investor (21)
10.16	Purchase Agreement dated November 17, 2020 between Advanced Voice Recognition Systems, Inc and an Investor (22)
10.17	Other Event dated January 13, 2021 (23)
10.18	Other Event dated March 23, 2021 (24)
10.19	Purchase Agreement dated May 7, 2021 between Advanced Voice Recognition Systems, Inc and an Investor (25)
10.20	Purchase Agreement dated July 22, 2021 between Advanced Voice Recognition Systems, Inc and an Investor (26)
10.21	Purchase Agreement dated September 24, 2021 between Advanced Voice Recognition Systems, Inc and an Investor (27)
10.22	Purchase Agreement dated September 24, 2021 between Advanced Voice Recognition Systems, Inc and an Investor (28)
10.23	Purchase Agreement dated November 5, 2021 between Advanced Voice Recognition Systems, Inc and an Investor (29)
10.24	Purchase Agreement dated November 12, 2021 between Advanced Voice Recognition Systems, Inc and an Investor (30)
10.25	Purchase Agreement dated January 28, 2022 between Advanced Voice Recognition Systems, Inc and an Investor (31)
10.26	Other Event dated March 15, 2022 (32)
14.1	Code of Ethics (7)
21.1	Subsidiaries of the Registrant (7)
31.1	Section 302 Certification – Principal Executive Officer (8)
31.2	Section 302 Certification – Principal Financial Officer (8)
32.1	Section 906 Certification (8)

(1)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 1, 2008.

(2)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 10, 2008.

(3)     Incorporated by reference from the Company’s Registration Statement on Form SB-2 filed on October 31, 2005.

(4)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 18, 2007.

(5)     Incorporated by reference from the Company’s Quarterly Report on Form 10-Q filed on February 14, 2008.

(6)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 21, 2008.

(7)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 30, 2009 

(8)     Certifications 

(9)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 2, 2019

(10)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 2, 2019

(11)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 2, 2019

(12)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 16, 2019

(13)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 7, 2019

(14)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 7, 2019

(15)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 29, 2019

(16)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 30, 2019

(17)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 10, 2019

(18)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 10, 2019

(19)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 7, 2020

(20)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 7, 2020

(21)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 10, 2020

(22)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 18, 2020

(23)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 21, 2021

(24)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 24, 2021

(25)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 13, 2021

(26)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 28, 2021

(27)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on September 30, 2021

(28)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on September 30, 2021

(29)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 5, 2021

(30)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 12, 2021

(31)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 28, 2022

(32)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 15, 2022

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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.

		ADVANCED VOICE RECOGNITION SYSTEMS, INC.
Dated August 1, 2022	By:	/s/ Walter Geldenhuys
		Walter Geldenhuys
		President, Chief Executive Officer, and Chief Financial Officer (Principal Executive Officer)
Dated August 1, 2022	By:	/s/ Diane Jakowchuk
		Diane Jakowchuk
		Secretary, Treasurer and Principal Accounting Officer (Principal Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Walter Geldenhuys, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Advanced Voice Recognition Systems, 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. The registrant’s other certifying officer and I are 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, 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. The registrant’s other certifying officer and 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:	August 2, 2022
Signature:	/s/ Walter Geldenhuys
	Walter Geldenhuys
Title:	President, Chief Executive Officer

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EX-31.2

Exhibit 31.2

CERTIFICATION

I, Walter Geldenhuys, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Advanced Voice Recognition Systems, 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. The registrant’s other certifying officer and I are 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, 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. The registrant’s other certifying officer and 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:	August 2, 2022
Signature:	/s/ Walter Geldenhuys
	Walter Geldenhuys
Title:	Chief Financial Officer

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EX-32.1

Exhibit 32.1

SECTION 1350 CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Walter Geldenhuys, President, Chief Executive Officer and Chief Financial Officer of Advanced Voice Recognition Systems, Inc. (the Company), certify, that pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code:

(1)	The Company’s Quarterly Report on Form 10-Q for quarterly period June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2)	Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/s/ Walter Geldenhuys

Walter Geldenhuys

President, Chief Executive Officer and Chief Financial Officer

August 2, 2022

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Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	000-52390
Entity Registrant Name	Advanced Voice Recognition Systems, Inc.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	98-0511932
Entity Address, Address Line One	7659 E. Wood Drive
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85260
City Area Code	(480)
Local Phone Number	704-4183
Title of 12(b) Security	Common Stock par value $0.001 per share
Trading Symbol	AVOI
Security Exchange Name	NONE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		284,920,269
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2

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Condensed Balance Sheets (Unaudited)) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 618	$ 12,148
Total Current Assets	618	12,148
Non-Current Assets
Patent, net	0	0
Total Non-Current Assets	0	0
Total Assets	618	12,148
Current Liabilities
Accounts payable	103,513	101,182
Payroll	162,381	162,380
Note Payable AIP	19,935	19,935
Advance Related Party	24,803	14,700
Accrued Interest	14,951	13,955
Total Current Liabilities	325,583	312,152
Total Liabilities	325,583	312,152
Stockholders' Deficit
Common stock	284,920	284,587
Additional paid-in capital	8,003,500	7,998,833
Accumulated Deficit	(8,613,385)	(8,583,424)
Total Stockholders' Deficit	(324,965)	(300,004)
Total Liabilities and Stockholders' Deficit	$ 618	$ 12,148

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Condensed Balance Sheets (Unaudited)) - Parenthetical - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Details
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	547,500,000	547,500,000
Common Stock, Shares, Issued	284,920,269	284,920,269
Common Stock, Shares, Outstanding	284,586,935	284,586,935

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Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Details
Sales	$ 0	$ 0	$ 0	$ 0
Cost of goods sold	0	0	0	0
Gross profit	0	0	0	0
Operating expenses
Compensation	24	23	4,047	92
Professional fees	6,600	11,869	19,670	23,694
Office	2,057	5,490	4,016	11,426
Other	357	432	989	989
Total operating expenses	9,038	17,814	28,722	36,201
Loss from operations	(9,038)	(17,814)	(28,722)	(36,201)
Other income and (expense)
Interest expense	(740)	(634)	(1,239)	(1,147)
Net other expense	(740)	(634)	(1,239)	(1,147)
Loss before income taxes	(9,778)	(18,448)	(29,961)	(37,348)
Provision for income taxes	0	0	0	0
Net Loss	$ (9,778)	$ (18,448)	$ (29,961)	$ (37,348)
Basic and diluted loss per common share	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares	284,920,269	280,506,935	284,920,269	280,446,935

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Condensed Statement of Stockholders' Deficit (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2020	$ 280,387	$ 7,957,033	$ (8,500,043)	$ (262,623)
Shares, Outstanding, Beginning Balance at Dec. 31, 2020	280,386,935
Stock Issued During Period, Value, Purchase of Assets	$ 0	0	0	0
Stock Issued During Period, Shares, Purchase of Assets	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 0	0	(18,900)	(18,900)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2021	$ 280,387	7,957,033	(8,518,943)	(281,523)
Shares, Outstanding, Ending Balance at Mar. 31, 2021	280,386,935
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2020	$ 280,387	7,957,033	(8,500,043)	(262,623)
Shares, Outstanding, Beginning Balance at Dec. 31, 2020	280,386,935
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest				(37,348)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jun. 30, 2021	$ 280,587	7,958,833	(8,537,391)	(297,971)
Shares, Outstanding, Ending Balance at Jun. 30, 2021	280,586,935
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Mar. 31, 2021	$ 280,387	7,957,033	(8,518,943)	(281,523)
Shares, Outstanding, Beginning Balance at Mar. 31, 2021	280,386,935
Stock Issued During Period, Value, Purchase of Assets	$ 200	1,800	0	2,000
Stock Issued During Period, Shares, Purchase of Assets	200,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 0	0	(18,448)	(18,448)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jun. 30, 2021	$ 280,587	7,958,833	(8,537,391)	(297,971)
Shares, Outstanding, Ending Balance at Jun. 30, 2021	280,586,935
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2021	$ 284,587	7,998,833	(8,583,424)	(300,004)
Shares, Outstanding, Beginning Balance at Dec. 31, 2021	284,586,935
Stock Issued During Period, Value, Purchase of Assets	$ 333	4,667	0	5,000
Stock Issued During Period, Shares, Purchase of Assets	333,334
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 0	0	(20,183)	(20,183)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Mar. 31, 2022	$ 284,920	8,003,500	(8,603,607)	(315,187)
Shares, Outstanding, Ending Balance at Mar. 31, 2022	284,920,269
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2021	$ 284,587	7,998,833	(8,583,424)	(300,004)
Shares, Outstanding, Beginning Balance at Dec. 31, 2021	284,586,935
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest				(29,961)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jun. 30, 2022	$ 284,920	8,003,500	(8,613,385)	(324,965)
Shares, Outstanding, Ending Balance at Jun. 30, 2022	284,920,269
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Mar. 31, 2022	$ 284,920	8,003,500	(8,603,607)	(315,187)
Shares, Outstanding, Beginning Balance at Mar. 31, 2022	284,920,269
Stock Issued During Period, Value, Purchase of Assets	$ 0	0	0	0
Stock Issued During Period, Shares, Purchase of Assets	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 0	0	(9,778)	(9,778)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jun. 30, 2022	$ 284,920	$ 8,003,500	$ (8,613,385)	$ (324,965)
Shares, Outstanding, Ending Balance at Jun. 30, 2022	284,920,269

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Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows from Operating Activities
Net loss	$ (29,961)	$ (37,348)
Adjustments to reconcile net loss to net cash used in operating activities
Amortization and depreciation	0	7,352
Changes in operating liabilities
Accounts payable and accrued liabilities	3,328	14,135
Net cash used in operating activities	(26,633)	(15,861)
Cash Flows from Investing Activities
Payments for deferred costs	0	0
Net cash used in investing activities	0	0
Cash Flows from Financing Activities
Proceeds from sale of common stock	5,000	2,000
Advance from related party	10,103	13,695
Net cash provided by financing activities	15,103	15,695
Net change in cash	(11,530)	(166)
Cash and cash equivalents	12,148	348
Cash and cash equivalents	618	182
Supplemental Disclosure of Cash Flow Information
Interest	997	997
Income taxes	$ 0	$ 0

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Note 1. Nature of Operations

6 Months Ended

Jun. 30, 2022

Notes

Note 1. Nature of Operations

Note 1.     Nature of Operations

Company Overview

The operations of Advanced Voice Recognition Systems, Inc. (“AVRS” or the “Company”), http://www.avrsys.com, commenced in 1994 with a predecessor entity called NCC, Inc. NCC, Inc. was incorporated on March 15, 1994 in the State of Ohio. NCC, Inc. operated as a software and hardware development company that marketed voice recognition and transcription products for commercial applications.

In May 2000, WG Investments, LLC acquired the assets of NCC, Inc. and subsequently changed its name to NCC, LLC. NCC, LLC (also a predecessor to AVRS) continued the operations of NCC, Inc. until approximately December 31, 2001, when shifts in the industry’s markets caused NCC, LLC to suspend its operations.

AVRS was incorporated in the State of Colorado on July 7, 2005. In September 2005, the members of NCC, LLC transferred all of their membership interests in NCC, LLC to AVRS in exchange for 93,333,333 shares (post-recapitalization) of AVRS common stock. In December 2005, the Board of Directors approved a 1.5-to-1 stock split issuing 46,666,667 common shares (post-recapitalization), which increased the number of common shares outstanding to 140 million shares (post-capitalization). Following the incorporation of AVRS, the Company initiated a new business plan and intends to continue its operations in the voice recognition and transcription industry.

AVRS is a software development company specializing in speech recognition technologies. AVRS has successfully obtained patent protection of its proprietary technology (refer to Note 3, Intangible Assets).   The Company continues to explore all options to monetize and enforce our patent portfolio through patent enforcement and licensing of the six patents issued.

Stock Purchase Agreements

During the six months ended June 30, 2022, the Company entered into a Stock Purchase Agreement for the private sale to one person or entity of an aggregate of 333,334 shares of the common stock for aggregate proceeds of $5,000. Full payment was received in the period. During the year ended December 31, 2021 the Company entered into Stock Purchase Agreements for the private sale to five persons or entities of an aggregate of 4,200,000 shares of the common stock for aggregate proceeds of $46,000, full payment of which was received in the period.

Commitments and Contingencies

On April 20, 2015 Advanced Voice Recognition Systems, Inc. (“AVRS”) entered into a Material Letter Agreement with an unrelated third party (“AIP”) in which they promise to pay to patent legal counsel funds to continue prosecuting Patents on behalf of AVRS.  AVRS promises to pay AIP, or to such other holder of this promissory note (Note) as designate, the principal, together with a premium of ten percent (10%) of Principle and two percent (2%) of proceeds received by Company from a Monetization Event initiated by AIP.  Interest was accrued and reported at June 30, 2022.

On November 1, 2016, Advanced Voice Recognition Systems, Inc. (“AVRS”) entered into a Contingent Fee Agreement (the “Agreement”) with Legal Representation pursuant to which they will represent AVRS in connection with investigating and asserting claims relating to certain patents, including the negotiation of license agreements and the filing and prosecution of lawsuits, against any potential infringers of rights associated with such patents (the “Patent Rights”).  Legal representation will handle licensing and litigation activities under the Agreement on a contingent fee basis.  The fee will depend upon whether AVRS recovers any sums by way of licensing, settlement, trial or otherwise with respect to the Patent Rights.  On June 6, 2017 AVRS and Legal Representation revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Letter Agreement which was to provide advisory services, court filing fees, discovery and other litigation costs.  The revised Contingent Fee Agreement assumed the responsibility for the costs and expenses in the Terminated August 20, 2015 Letter Agreement and provides for the payment of twenty percent (20%) of all gross Licensing Agreement Proceeds and thirty percent (30%) of all Litigation Proceeds received by AVRS.  In addition, if the Litigation Proceeds agreed to or received by AVRS at any time are $100,000 or less then Legal Representative shall receive forty percent (40%) of the Litigation Proceeds.

On June 21, 2018, Advanced Voice Recognition Systems, Inc. (“AVRS”) and Buether Joe & Carpenter, LLC (“BJC) entered into a Letter of Engagement for Legal Services Limited Scope Agreement (“Agreement”) with Schmeiser, Olsen & Watts LLP (“the Firm”) pursuant to which the Firm will serve as local counsel in the United States District Court, District of Arizona.  The Firm has been hired to represent AVRS as local counsel in connection with forthcoming litigation in the U.S. District Court, District of Arizona.    AVRS may terminate the Agreement at any time.

On July 22, 2019 Apple, Inc. submitted a petition for Inter Partes Review (IPR) of the AVRS patent.  It was ordered in the case of AVRS, Inc. v. Apple Inc (Case No. 2-18-cv-2083) that the parties’ stipulation was granted and the case is stayed pending the resolution of the IPR proceeding.  Buether Joe and Carpenter, LLC (BJC), our representation in the AVRS v. Apple litigation represents AVRS in the IPR. The IPR response to the Patent Trial and Appeal Board (PTAB) was done November 8, 2019.  On January 13, 2021, the United States Patent and Trademark Office Patent Trial and Appeal Board (PTAB) issued a Final Written Decision under 35 U.S.C. § 318(a) in Inter Partes Review petitioned by Apple Inc.  The decision found that claims 15 and 17 of AVRS’s U.S. Patent No. 7,558,730 B2 were invalid under 35 U.S.C. § 103(a).   On March 17, 2021, AVRS filed an appeal to the United States Court of Appeals for the Federal Circuit Docket Number 2021-1745. AVRS appeals the Patent Trial and Appeal Boards (“PTAB”) Final Written Decision on January 13, 2021 in the Inter Partes Review (IPR 2019-01352) petitioned by Apple, Inc of U. S. Patent No. 7,558,730.  The Federal Docket was argued in the Court of Appeals in December 2021.   Oral arguments were held on March 10, 2022.  On March 15, 2022, the United States Court of Appeals for the Federal Circuit issued a Judgement Affirming the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2019-01352.  The decision found that claims 15 and 17, the only claims challenged by Apple out of a total of 18 claims of Advanced Voice Recognition Systems, Inc. (AVRS) U.S. Patent No. 7,558,730 B2 were invalid under 35 U.S.C. § 103(a). AVRS is exploring all options to enforce and monetize our patent portfolio by way of patent enforcement litigation and licensing agreements.

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Note 2. Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Notes

Note 2. Significant Accounting Policies

Note 2.     Significant Accounting Policies

Unaudited Financial Information

The accompanying financial information at June 30, 2022 and for the six months ended June 30, 2022 and 2021 is unaudited.  In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company’s financial position at June 30, 2022 and its operating results for the six months ended June 30, 2022 and 2021 have been made.  Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2021.  The results of operations for the six months ended June 30, 2022 are not necessarily an indication of operating results to be expected for the year ending December 31, 2022.

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities exceed assets and there is a capital deficiency of $324,965 and no significant revenues.  The Company may be unable to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.   During the twelve months ended December 31, 2021 the Company received an aggregate of $46,000 from the sale of shares in private offerings of its common stock.  During the six months ended June 30, 2022, the Company received an aggregate of $5,000 from the sale of shares in private offerings of its common stock.

The Company’s current operations are related to patent monetization and filing of additional patents.  The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS.  Dominion has agreed to advanced costs up to an aggregate of $10,000,000. On June 28, 2017 the Company and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  The Company did not incur any material early termination penalties.  In addition, the Company has revised the Contingent Fee Agreement with Buether Joe & Carpenter, LLC which will represent AVRS in connection with investigating and asserting claims to the AVRS patents including licensing and litigation activities. Any and all advanced costs will only become liabilities if successful.  On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.  There is no guarantee that AVRS will be able to provide the capital required for the Company to continue as a going concern.

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. The Company had cash at June 30, 2022 of $618, and $12,148 at December 31, 2021.  No amounts resulted from cash equivalents.

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Note 3. Intangible and Fixed Assets

6 Months Ended

Jun. 30, 2022

Notes

Note 3. Intangible and Fixed Assets

Note 3.     Intangible and Fixed Assets

Intangible Assets

The Company monitors the anticipated outcome of legal actions, and if it determines that the success of the defense of a patent is probable, and so long as the Company believes that the future economic benefit of the patent will be increased, the Company capitalizes external legal costs incurred in the defense of the patent. Upon successful defense of litigation, the amounts previously capitalized are amortized over the remaining life of the patent.

On July 7, 2009, U.S. Patent # 7,558,730, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 7, 2009 and ending 20 years from the application date of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2009 and the Company began amortization.  AVRS filed a Complaint in the United States District Court Northern District for Arizona (Case No. 2-18-cv-2083) on July 3, 2018, and alleges that Apple products infringe U.S. Patent No. 7,558,730 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” (the “‘730 Patent”). The patent was fully amortized in the fourth quarter 2021.

On May 24, 2011, U.S. Patent #7,949,534, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning May 24, 2011 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended June 30, 2011 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

On March 6, 2012, U.S. Patent #8,131,557, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning March 6, 2012 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended March 31, 2012 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

On July 30, 2013, U.S. Patent #8,498,871, entitled “Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 30, 2013 and ending 20 years from the application date of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2013 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

On September 22, 2015, U.S. Patent #9,142,217, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning September 22, 2015 and ending 20 years from the application date of the parent application (US Patent No. 7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2015 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

On April 3, 2018, U.S. Patent #9,934,786, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning April 3, 2018 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001 or November 27, 2021.  The deferred costs were capitalized during the quarter ended June 30, 2018 and the Company began amortization. The patent was fully amortized in the fourth quarter 2021.

Amortization at December 31, 2021 is as follows:

SCHEDULE OF INTANGIBLE ASSETS

Ended December 31, 2021
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277		58,277		-
7,949,534		3,365		3,365		-
8,131,557		5,092		5,092		-
8,498,871		21,114		21,114		-
9,142,217		35,068		35,068		-
9,934,786		4,575		4,575		-
	$	127,491	$	127,491	$	-

Amortization at June 30, 2022 is as follows:

Ended June 30, 2022
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277		58,277		-
7,949,534		3,365		3,365		-
8,131,557		5,092		5,092		-
8,498,871		21,114		21,114		-
9,142,217		35,068		35,068		-
9,934,786		4,575		4,575		-
	$	127,491	$	127,491	$	-

The Patents were fully amortized in the fourth quarter 2021.

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Note 4. Related Party Transactions

6 Months Ended

Jun. 30, 2022

Notes

Note 4. Related Party Transactions

Note 4.     Related Party Transactions

Related Parties Transactions and Indebtedness

The Company owed the officers aggregate of $162,381 at June 30, 2022 and $ 162,380 December 31, 2021 for accrued payroll.  During the period of six months ending June 30, 2022, June 30, 2021 the Company paid gross payroll of $4,047 and $92 for payroll expenses. At June 30, 2022 the Secretary Treasurer advanced the Company $24,803 for operating expenses. At June 30, 2021 our Secretary Treasurer advanced the Company $14,700 for operating expenses.

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Note 5. Note Payable & Accounts Payable

6 Months Ended

Jun. 30, 2022

Notes

Note 5. Note Payable & Accounts Payable

Note 5.Note Payable & Accounts Payable 

On April 20, 2015, the Company entered into a Material Letter Agreement with an unrelated third-party AIP” in which they promise to pay to patent legal counsel funds to continue prosecuting Patents on behalf of AVRS.  AVRS promises to pay AIP, or to such other holder of this promissory note (Note) as designate, the principal, together with a premium of ten percent (10%) of Principle and two percent (2%) of proceeds received by Company from a Monetization Event initiated by AIP. Interest was accrued and reported at June 30, 2022.

On September 24, 2018, the Company, entered into Promissory Note with Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors.  The Promissory Note is effective as of September 24, 2018 in the principal amount of $9,000 with a maturity date of the Promissory Note September 24, 2019.  Interest at 4% per annum was charged and accrued at December 31, 2018.  The Company repaid $2,500 of the note on December 10, 2018.  During 2019 the Company repaid $6,500, paying the note in full on December 27, 2019.  Interest at 4% per annum was charged and accrued at December 31, 2019.  Accrued interest of $254 was paid on February 28, 2020.

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Note 6. Stockholder Equity / (Deficit)

6 Months Ended

Jun. 30, 2022

Notes

Note 6. Stockholder Equity / (Deficit)

Note 6.Stockholder Equity / (Deficit) 

The Company has issued shares of its common stock pursuant to certain agreements as described in Note 1.

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Note 7. Subsequent Events

6 Months Ended

Jun. 30, 2022

Notes

Note 7. Subsequent Events

Note 7.    Subsequent Events

None

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Note 2. Significant Accounting Policies: Unaudited Financial Information (Policies)

6 Months Ended

Jun. 30, 2022

Policies

Unaudited Financial Information

Unaudited Financial Information

The accompanying financial information at June 30, 2022 and for the six months ended June 30, 2022 and 2021 is unaudited.  In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company’s financial position at June 30, 2022 and its operating results for the six months ended June 30, 2022 and 2021 have been made.  Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2021.  The results of operations for the six months ended June 30, 2022 are not necessarily an indication of operating results to be expected for the year ending December 31, 2022.

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Note 2. Significant Accounting Policies: Going Concern (Policies)

6 Months Ended

Jun. 30, 2022

Policies

Going Concern

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities exceed assets and there is a capital deficiency of $324,965 and no significant revenues.  The Company may be unable to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.   During the twelve months ended December 31, 2021 the Company received an aggregate of $46,000 from the sale of shares in private offerings of its common stock.  During the six months ended June 30, 2022, the Company received an aggregate of $5,000 from the sale of shares in private offerings of its common stock.

The Company’s current operations are related to patent monetization and filing of additional patents.  The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS.  Dominion has agreed to advanced costs up to an aggregate of $10,000,000. On June 28, 2017 the Company and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  The Company did not incur any material early termination penalties.  In addition, the Company has revised the Contingent Fee Agreement with Buether Joe & Carpenter, LLC which will represent AVRS in connection with investigating and asserting claims to the AVRS patents including licensing and litigation activities. Any and all advanced costs will only become liabilities if successful.  On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.  There is no guarantee that AVRS will be able to provide the capital required for the Company to continue as a going concern.

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Note 2. Significant Accounting Policies: Use of Estimates (Policies)

6 Months Ended

Jun. 30, 2022

Policies

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Policies)

6 Months Ended

Jun. 30, 2022

Policies

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. The Company had cash at June 30, 2022 of $618, and $12,148 at December 31, 2021.  No amounts resulted from cash equivalents.

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Note 3. Intangible and Fixed Assets: Schedule of Amortization of Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Tables/Schedules

Schedule of Amortization of Intangible Assets

SCHEDULE OF INTANGIBLE ASSETS

Ended December 31, 2021
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277		58,277		-
7,949,534		3,365		3,365		-
8,131,557		5,092		5,092		-
8,498,871		21,114		21,114		-
9,142,217		35,068		35,068		-
9,934,786		4,575		4,575		-
	$	127,491	$	127,491	$	-

Amortization at June 30, 2022 is as follows:

Ended June 30, 2022
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277		58,277		-
7,949,534		3,365		3,365		-
8,131,557		5,092		5,092		-
8,498,871		21,114		21,114		-
9,142,217		35,068		35,068		-
9,934,786		4,575		4,575		-
	$	127,491	$	127,491	$	-

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Note 2. Significant Accounting Policies: Going Concern (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Details
Total Stockholders' Deficit	$ (324,965)		$ (300,004)
Proceeds from sale of common stock	$ 5,000	$ 2,000	$ 46,000

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Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Details
Cash and cash equivalents	$ 618	$ 12,148	$ 182	$ 348

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Note 3. Intangible and Fixed Assets: Schedule of Amortization of Intangible Assets (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Gross	$ 127,491	$ 127,491
Finite-Lived Intangible Assets, Accumulated Amortization	127,491	127,491
Patent, net	0	0
U.S. Patent # 7,558,730
Finite-Lived Intangible Assets, Gross	58,277	58,277
Finite-Lived Intangible Assets, Accumulated Amortization	58,277	58,277
Patent, net	0	0
U.S. Patent # 7,949,534
Finite-Lived Intangible Assets, Gross	3,365	3,365
Finite-Lived Intangible Assets, Accumulated Amortization	3,365	3,365
Patent, net	0	0
U.S. Patent # 8,131,557
Finite-Lived Intangible Assets, Gross	5,092	5,092
Finite-Lived Intangible Assets, Accumulated Amortization	5,092	5,092
Patent, net	0	0
U.S. Patent # 8,498,871
Finite-Lived Intangible Assets, Gross	21,114	21,114
Finite-Lived Intangible Assets, Accumulated Amortization	21,114	21,114
Patent, net	0	0
U.S. Patent # 9,142,217
Finite-Lived Intangible Assets, Gross	35,068	35,068
Finite-Lived Intangible Assets, Accumulated Amortization	35,068	35,068
Patent, net	0	0
U.S. Patent # 9,934,786
Finite-Lived Intangible Assets, Gross	4,575	4,575
Finite-Lived Intangible Assets, Accumulated Amortization	4,575	4,575
Patent, net	$ 0	$ 0

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Note 4. Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Details
Payroll	$ 162,381		$ 162,381		$ 162,380
Compensation	24	$ 23	4,047	$ 92
Advance Related Party	$ 24,803	$ 14,700	$ 24,803	$ 14,700	$ 14,700