UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
|
|
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
|
LEO MOTORS, INC.
|
||
(Exact name of registrant as specified in its charter)
|
||
Nevada
|
3711
|
95-3909667
|
(State or other jurisdiction of
incorporation or organization)
|
(Primary Standard Industrial
Classification Code Number)
|
(I.R.S. Employer Identification Number)
|
3F Bokwang Bldg., Seowunro 6 Gil 14,
Seocho Gu, Seoul
Republic of Korea
(949) 419-0288
|
||
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)
|
||
Shi Chul Kang, Co-Chief Executive Officer
Jun Heng Park, Co-Chief Executive Officer
Leo Motors, Inc.
3F Bokwang Bldg., Seowunro 6 Gil 14, Seocho Gu, Seoul
Republic of Korea 137-863
|
||
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
|
||
Copies of all communications, including communications sent to agent for service, should be sent to:
|
||
Darrin M. Ocasio, Esq.
Sichenzia Ross Friedman Ference LLP
61 Broadway, 32nd Floor
New York, NY 10006
Phone (212) 930-9700
Fax (212) 930-9725
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☒
|
(Do not check if a smaller reporting company)
|
|
|
|
TITLE OF EACH CLASS OF
SECURITIES TO BE REGISTERED
|
AMOUNT TO BE
REGISTERED (1)
|
PROPOSED MAXIMUM OFFERING PRICE
PER SHARE (2)
|
PROPOSED MAXIMUM
AGGREGATE OFFERING PRICE (1)
|
AMOUNT OF REGISTRATION FEE
|
||||||||||||
Shares of common stock, $0. 001 par value
|
39,321,444(3)
|
$
|
0.25
|
$
|
9,830,361
|
$
|
989.92
|
|||||||||
Shares of common stock, $0. 001 par value, underlying convertible debenture
|
3,134,921(4)
|
$
|
0.25
|
$
|
783,730.25
|
$
|
78.92
|
|||||||||
Total
|
42,456,365
|
$
|
10,614,091.20
|
$
|
1,068.84
|
(1)
|
Pursuant to Rule 416 under the Securities Act, the shares of common stock offered hereby also include an indeterminate number of additional shares of common stock as may from time to time become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions.
|
(2)
|
Estimated at $0.25 per share, the average of the high and low prices as reported on the OTCQB on June 6, 2016, for the purpose of calculating the registration fee in accordance with Rule 457(c) under the Securities Act.
|
(3)
|
Represents (i) shares of the Company's common stock underlying an equity line of credit agreement ("ELOC"), which are the subject of a registration rights agreement by and between the Company and a selling stockholder listed herein; and (ii) shares issued to an individual selling shareholder listed herein.
|
(4) | Represents shares of the Company's common stock underlying a series of convertible debentures issued to a selling stockholder listed herein. |
PRELIMINARY PROSPECTUS
|
SUBJECT TO COMPLETION
|
DATED JUNE [●], 2016
|
|
Page
|
Prospectus Summary
|
2 |
Risk Factors
|
3 |
Special Note Regarding Forward Looking Statements
|
8 |
Use of Proceeds
|
8 |
Market for Our Common stock and Related Stockholder Matters
|
8 |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
10 |
Business
|
15 |
Management
|
18 |
Executive Compensation
|
20 |
Certain Relationships and Related Transactions
|
21 |
Security Ownership of Certain Beneficial Owners and Management
|
22 |
Selling Stockholders
|
22 |
Description of Securities
|
24 |
Plan of Distribution
|
24 |
Legal Matters
|
25 |
Experts
|
25 |
Where You Can Find Additional Information
|
26 |
Index to Financial Statements
|
27 |
The Offering
|
|
Common stock offered by the selling stockholders:
|
42,456,365 shares of the Company's $0.001 par value common stock.
|
|
|
Common stock outstanding before and after this offering:
|
163,713,902(1) and 206,170,267(2)
|
|
|
Use of proceeds:
|
We will not receive any proceeds from the sale of shares in this offering by the selling stockholders.
|
|
|
OTC Market symbol:
|
"LEOM"
|
|
|
Risk factors:
|
You should carefully consider the information set forth in this prospectus and, in particular, the specific factors set forth in the "Risk Factors" within this prospectus before deciding whether or not to invest in shares of our common stock.
|
· we may be required to replace product or otherwise compensate customers for costs incurred or damages caused by defective or incompatible product, and
|
· we may encounter adverse publicity, which could cause a decrease in sales of our products.
|
•
|
develop and market products that are less expensive or more effective than our future products;
|
|
|
•
|
commercialize competing products before we or our partners can launch any products developed from our product candidates;
|
|
|
•
|
operate larger research and development programs or have substantially greater financial resources than we do;
|
|
|
•
|
initiate or withstand substantial price competition more successfully than we can;
|
|
|
•
|
have greater success in recruiting skilled technical and scientific workers from the limited pool of available talent;
|
|
|
•
|
more effectively negotiate third-party licenses and strategic relationships; and
|
|
|
•
|
take advantage of acquisition or other opportunities more readily than we can.
|
•
|
failure or discontinuation of any of our research;
|
|
|
•
|
delays in establishing new strategic relationships;
|
|
|
•
|
delays in the development or commercialization of our potential products;
|
|
|
•
|
market conditions and issuance of new or changed securities analysts' reports or recommendations;
|
|
|
•
|
actual and anticipated fluctuations in our financial and operating results;
|
|
|
•
|
developments or disputes concerning our intellectual property or other proprietary rights;
|
|
|
•
|
introduction of technological innovations or new commercial products by us or our competitors;
|
|
|
•
|
issues in manufacturing our potential products;
|
|
|
•
|
third-party healthcare reimbursement policies;
|
|
|
•
|
litigation or public concern about the safety of our product candidates; and
|
|
|
•
|
additions or departures of key personnel.
|
|
High
|
Low
|
||||||
2013:
|
||||||||
Fourth quarter
|
$
|
0.078
|
$
|
0.078
|
||||
Third quarter
|
0.0385
|
0.0385
|
||||||
Second quarter
|
0.10
|
0.072
|
||||||
First quarter
|
0.099
|
0.085
|
|
High
|
Low
|
||||||
2014:
|
||||||||
Fourth quarter
|
$
|
0.081
|
$
|
0.053
|
||||
Third quarter
|
0.0705
|
0.067
|
||||||
Second quarter
|
0.045
|
0.0375
|
||||||
First quarter
|
0.08
|
0.07
|
||||||
|
2015:
|
High
|
Low
|
||||||
Fourth quarter
|
$
|
0.311
|
$
|
0.289
|
||||
Third quarter
|
0.39
|
0.37
|
||||||
Second quarter
|
0.43
|
0.41
|
||||||
First quarter
|
0.071
|
0.07
|
·
|
Focus on the capitalization of the Company;
|
·
|
Focus on the sale of the E-Boats and E-Box;
|
·
|
Business development in China by establishing joint venture company in China, and in Japan;
|
·
|
Continue with R&D of our EV's, electric boats, and related products as capital permits.
|
|
For the Three Months Ended
|
|||||||
|
March 31,
|
March 31,
|
||||||
Total General and Administrative Expenses:
|
2016
|
2015
|
||||||
|
||||||||
Salaries and Benefits
|
$
|
366,121
|
$
|
126,456
|
||||
Consulting and Service Fees
|
155,938
|
54,324
|
||||||
Selling, General and Administrative
|
386,801
|
177,631
|
||||||
Total
|
$
|
908,860
|
$
|
358,411
|
|
Year Ended
|
|||||||
Expenses:
|
December 31,
2015
|
December 31,
2014
|
||||||
|
||||||||
Salaries and Benefits
|
$
|
1,706,968
|
$
|
1,476,145
|
||||
Consulting and Service Fees
|
$
|
758,702
|
$
|
0
|
||||
Research and Development
|
$
|
1,278,402
|
$
|
1,027,676
|
||||
Selling, General and Administrative
|
$
|
1,677,436
|
$
|
964,788
|
||||
Total
|
$
|
5,421,508
|
$
|
3,468,609
|
·
|
Focus on the capitalization of the Company;
|
·
|
Focus on the sale of the E-Boats, E-Bus, and E-Box;
|
·
|
Business development in China by establishing a joint venture company in China;
|
·
|
Continue with R&D of our EV's, electric boats, and related products as capital permits.
|
•
|
Focus on the capitalization of the Company;
|
•
|
Focus on the sale of the E-Boats, E-Buses, and E-Box;
|
•
|
Business development in China by establishing a joint venture company in China;
|
•
|
Continue with R&D of our EV's, electric boats, and related products as capital permits.
|
•
|
develop and market products that are less expensive or more effective than our future products;
|
•
|
commercialize competing products before we, or our partners, can launch any products developed from our product candidates;
|
•
|
operate larger research and development programs or have substantially greater financial resources than we do;
|
•
|
have greater success in recruiting skilled technical and scientific workers from the limited pool of available talent;
|
•
|
more effectively negotiate third-party licenses and strategic relationships; and
|
•
|
take advantage of acquisition or other opportunities more readily than we can.
|
Registration date
|
Registration number
|
Name
|
Country
|
2015.08.31
|
1550568
|
Motor control system of boat
|
Rep. of Korea
|
2015.04.27
|
1517017
|
Battery cooling system and boat using it
|
Rep. of Korea
|
2015.02.11
|
1494524
|
Battery connection system
|
Rep. of Korea
|
2014.11.11
|
1462575
|
Refrigerating apparatus for referigerating vehicle
|
Rep. of Korea
|
2014.11.11
|
1462576
|
Refrigerating apparatus for referigerating vehicle
|
Rep. of Korea
|
2013.01.25
|
1228434
|
Zinc-air fuel cell assembly for ocean
|
Rep. of Korea
|
2013.01.25
|
1228435
|
Zinc-air fuel cell assembly for ocean
|
Rep. of Korea
|
2012.4.17
|
1140345
|
Electric vehicle power development apparatus
|
Rep. of Korea
|
2012.11.26
|
1206784
|
Zinc-air fuel cell system, and control method for the same
|
Rep. of Korea
|
2012.10.05
|
1187829
|
Zinc-air fuel cell assembly having zinc oxide secession means
|
Rep. of Korea
|
2012.10.05
|
1187866
|
Zinc-air fuel cell reaction cell structure
|
Rep. of Korea
|
2012.10.05
|
1187870
|
Zinc-air fuel cell reaction cell unit enabling simultaneous supply and emission of zinc-ball
|
Rep. of Korea
|
2012.09.26
|
662002
|
Scooter
|
Rep. of Korea
|
2012.09.26
|
662003
|
Scooter
|
Rep. of Korea
|
2012.09.26
|
662004
|
Scooter
|
Rep. of Korea
|
2012.09.13
|
1184335
|
Motor
|
Rep. of Korea
|
2012.09.06
|
1182336
|
Cell voltage balancing control method of battery management system
|
Rep. of Korea
|
2012.07.25
|
1170001
|
Motor
|
Rep. of Korea
|
2012.07.25
|
1170002
|
Battery stack assembly
|
Rep. of Korea
|
2012.07.19
|
1168597
|
Zinc-ball supplying apparatus
|
Rep. of Korea
|
2012.07.19
|
1168598
|
Zinc-air fuel cell assembly of radial shape stack structure
|
Rep. of Korea
|
2012.07.02
|
1163537
|
Electric vehicle fuel cell duality system
|
Rep. of Korea
|
2012.06.27
|
1161613
|
Electric automobile driving mode control method
|
Rep. of Korea
|
2012.06.07
|
1155993
|
Electric vehicle battery housing
|
Rep. of Korea
|
2012.05.29
|
1152790
|
Zinc-ball supplying apparatus
|
Rep. of Korea
|
2012.05.29
|
1152793
|
Zinc-ball supplying apparatus
|
Rep. of Korea
|
2012.05.24
|
1151779
|
Electric vehicle motor cooling apparatus
|
Rep. of Korea
|
2012.05.24
|
1151783
|
Zinc-ball supplying apparatus
|
Rep. of Korea
|
2012.05.16
|
1148980
|
Electric vehicle battery charging apparatus
|
Rep. of Korea
|
2012.04.30
|
1143406
|
Electric truck battery mounting structure
|
Rep. of Korea
|
2011.04.05
|
1028773
|
Electric vehicle powertrain gear apparatus
|
Rep. of Korea
|
2011.04.05
|
1028758
|
Electric automobile driving mode automatic control method
|
Rep. of Korea
|
2011.04.05
|
1028755
|
Electric vehicle motor cooling apparatus
|
Rep. of Korea
|
2011.04.05
|
1028756
|
Power input control circuit for battery management system
|
Rep. of Korea
|
2011.03.18
|
1024663
|
Zinc-Air fuel cell stack assembly
|
Rep. of Korea
|
2011.02.09
|
1015138
|
Battery stack assembly
|
Rep. of Korea
|
2011.01.17
|
1010235
|
Zinc-air fuel cell assembly
|
Rep. of Korea
|
2011.01.17
|
1010236
|
Zinc-air fuel cell assembly
|
Rep. of Korea
|
2011.01.05
|
1007554
|
Zinc-Air fuel cell stack assembly
|
Rep. of Korea
|
2011.01.05
|
1007593
|
Car velocity control method to electric vehicle battery charging state
|
Rep. of Korea
|
2010.12.22
|
1004621
|
Motor magnetic position fixing apparatus
|
Rep. of Korea
|
2010.12.15
|
1002963
|
Zinc-air fuel cell assembly
|
Rep. of Korea
|
2010.12.15
|
1002965
|
Zinc-ball supplying apparatus
|
Rep. of Korea
|
2010.12.10
|
1001982
|
Battery stack assembly
|
Rep. of Korea
|
2010.11.09
|
994438
|
Zinc-air fuel cell electrolyte emission system
|
Rep. of Korea
|
2010.09.29
|
985521
|
Battery stack assembly
|
Rep. of Korea
|
2010.08.11
|
977018
|
Zinc-air fuel cell reaction cell structure
|
Rep. of Korea
|
2010.08.11
|
976504
|
Zinc-air fuel cell assembly
|
Rep. of Korea
|
2010.07.30
|
831435
|
Hilless
|
Rep. of Korea
|
2008.05.06
|
490413
|
Vehicle
|
Rep. of Korea
|
2007.07.24
|
0744057
|
Embedded system and a graphic user interface displaying method thereof
|
Rep. of Korea
|
2007.05.30
|
0725405
|
Wireless receiving device without pll frequency synthesizer and wireless receiving method using the same
|
Rep. of Korea
|
2007.02.07
|
682489
|
A Multi Motor Device for Electric Vehicle
|
Rep. of Korea
|
2006.07.05
|
0599667
|
Separator for fuel cell using the metal coated with tin, method to prepare there it, and polymer electrolyte membrane fuel cell comprising the same
|
Rep. of Korea
|
NAME OF DIRECTOR OR OFFICER
|
AGE
|
POSITION
|
|
|
|
Jun Heng Park
|
45
|
Co-Chief Chief Executive Officer, President, and Co-Chairman
|
Shi Chul (Robert) Kang
|
55
|
Co-Chief Executive Officer and Co-Chairman
|
Jeong Youl Choi
|
46
|
Chief Financial Officer and Director
|
Jun Hee Won | 36 | Director |
Seok Hoe | 47 | Director |
|
(1)
|
any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;
|
|
(2)
|
any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
|
|
(3)
|
being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities;
|
|
(4)
|
being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated;
|
|
(5)
|
being the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:
|
|
(i)
|
any federal or state securities or commodities law or regulation;
|
|
(ii)
|
any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or
|
|
(iii)
|
any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
|
|
(6)
|
being the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member (covering stock, commodities or derivatives exchanges, or other SROs).
|
Position
|
Year
|
Salary
|
Awards
|
Awards
|
Comp
|
Total
|
|||||||||
Jun Heng Park (1)
|
2015
|
$
|
400,000
|
$ Nil
|
$ Nil
|
$
|
$
|
400,000
|
|||||||
|
2014
|
$ |
400,000
|
$ Nil
|
$ Nil
|
$ | $ | 400,000 | |||||||
|
|
|
|
||||||||||||
Shi Chul Kang (2)
|
2015
|
$
|
400,000
|
$ Nil
|
$ Nil
|
$
|
$
|
400,000
|
|||||||
|
2014
|
$ | 400,000 |
$ Nil
|
$ Nil
|
$ | $ | 400,000 | |||||||
Jeong Yoel Choi (3)
|
2015
|
$
|
300,000
|
$ Nil
|
$ Nil
|
$
|
$
|
300,000
|
|||||||
|
2014
|
$ | 300,000 |
$ Nil
|
$ Nil
|
$ | $ | 300,000 |
|
Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights
|
Weighted-average
exercise price of
outstanding options,
warrants and rights
|
Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in column
(a))
|
|||||||||
Plan category:
|
(a)
|
(b)
|
(c)
|
|||||||||
Equity compensation plans approved by security holders
|
-
|
$
|
-
|
$Nil
|
||||||||
Equity compensation plans not approved by security holders
|
-
|
-
|
-
|
|||||||||
Total
|
-
|
-
|
Nil
|
Name
|
Fees Earned
or Paid in
Cash ($)
|
Stock
Awards
($)
|
Option
Awards
($)
|
Non-Equity
Incentive Plan
Compensation
($)
|
Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
|
All Other
Compensation
($)
|
Total ($)
|
Jun Heng Park
|
|
|
|
|
|
|
Nil
|
Jeong Youl Choi
|
|
|
|
|
|
|
Nil
|
Shi Chul Kang
|
|
|
|
|
|
|
Nil
|
·
|
Each person serving as a director, a nominee for director, or executive officer of the Company;
|
·
|
All executive officers and directors of the Company as a group; and
|
·
|
All persons who, to our knowledge, beneficially own more than five percent of our common stock.
|
PERSON OR GROUP |
AMOUNT OF
SHARES
BENEFICIALLY
OWNED
|
PERCENT OF
SHARES
BENEFICIALLY
OWNED(1,2)
|
CLASS
|
||||||
|
|
||||||||
Jun Heng Park(2)
|
|
||||||||
Co-CEO and President
|
7,600,000
|
4.64
|
%
|
Common
|
|||||
|
|
||||||||
Jun Hee Won
|
|
||||||||
Director
|
20,396,223
|
12.46
|
%
|
Common
|
|||||
|
|
||||||||
Shi Chul Kang (2)
|
|
||||||||
Co-CEO and Chairman
|
2,185,000
|
1.33
|
%
|
Common
|
|||||
|
|
||||||||
Jeon Youl Choi (3)
|
|
||||||||
CFO
|
3,600,000
|
2.20
|
%
|
Common
|
|||||
Officers and Directors as a group (4 persons)
|
33,781,223
|
20.63
|
%
|
Common
|
· 38,986,355 shares of the Company's common stock issuable under an equity line of credit, pursuant to a securities purchase agreement by and between the Company and an accredited investor, dated May 17, 2016.
|
· 3,134,921 shares of the Company's common stock underlying a convertible debenture issued in to an accredited investor, dated May 18, 2016.
· 335,089 shares of the Company's common stock previously issued to various individuals and consultants.
|
Name of Selling Stockholder
|
Common Stock
Beneficially
Owned Prior to the
Offering(1)
|
Common Stock
Covered
by this
Prospectus
|
Common Stock
Owned Upon
Completion of
this Offering(1)(2)
|
Percentage of
Common
Stock Owned Upon
Completion of this
Offering(1)(3)
|
||||||||||||
BOU Trust(4)
|
-
|
38,986,355
|
38,986,355
|
18.9
|
%
|
|||||||||||
RDM Capital LLC(5)
|
-
|
3,314,921
|
3,314,921
|
1.52
|
%
|
|||||||||||
Darrin M. Ocasio
|
335,089
|
335,089
|
335,089
|
0.16
|
%
|
|||||||||||
TOTAL
|
335,089
|
42,456,365
|
42,456,365
|
20.31
|
%
|
|
(1)
|
Under applicable SEC rules, a person is deemed to beneficially own securities which the person as the right to acquire within 60 days through the exercise of any option or warrant or through the conversion of a convertible security. Also under applicable SEC rules, a person is deemed to be the "beneficial owner" of a security with regard to which the person directly or indirectly, has or shares (a) voting power, which includes the power to vote or direct the voting of the security, or (b) investment power, which includes the power to dispose, or direct the disposition, of the security, in each case, irrespective of the person's economic interest in the security. Each listed selling stockholder has the sole investment and voting power with respect to all shares of common stock shown as beneficially owned by such selling stockholder, except as otherwise indicated in the footnotes to the table.
|
|
(2)
|
Represents the amount of shares that will be held by the selling stockholders after completion of this offering based on the assumptions that (a) all shares registered for sale by the registration statement of which this prospectus is part will be sold and (b) that no other shares of our common stock beneficially owned by the selling stockholders are acquired or are sold prior to completion of this offering by the selling stockholders.
|
|
(3)
|
In determining the percent of common stock beneficially owned by a selling stockholder following the offering, (a) the numerator is the number of shares of common stock beneficially owned by such selling stockholder (including shares that he has the right to acquire within 60 days of June 6, 2016, and (b) the denominator is the sum of (i) the shares outstanding after offering based upon 163,713,902 shares of common stock outstanding on June 6, 2016 and (ii) the number of shares of common stock which such selling stockholders has the right to acquire within 60 days of June 6, 2016 after the offering.
|
(4)
|
Alan Uryniak is the Trustee of the BOU Trust, and as such has voting and investment power over the securities owned by the Selling Shareholder
|
|
(5)
|
John Denobile is the Managing Member of RDW Capital LLC, and as such has voting and investment power over the securities owned by the Selling Shareholder.
|
|
· ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
|
· block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
|
· purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
|
· an exchange distribution in accordance with the rules of the applicable exchange;
|
· privately negotiated transactions;
|
· settlement of short sales entered into after the effective date of the registration statement of which this prospectus is a part;
|
· broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;
|
· through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; a combination of any such methods of sale; or
|
· any other method permitted pursuant to applicable law.
|
|
Page
|
|
|
Report of Independent Registered Public Accounting Firm
|
F-1
|
Consolidated Balance Sheets – December 31, 2015 and 2014
|
F-2 |
Consolidated Statements of Operations – December 31, 2015 and 2014
|
F-3 |
Changes in Stockholders' Equity
|
F-4 |
Consolidated Statements of Cash Flows – December 31, 2015 and 2014
|
F-5 |
Notes to the Consolidated Financial Statements
|
F-6 |
|
|
Condensed Consolidated Balance Sheets – March 31, 2016 (unaudited) and March 31, 2015
|
F-14 |
Condensed Consolidated Statements of Operations – for the three months ended March 31, 2016 (unaudited) and 2015 (unaudited)
|
F-15 |
Condensed Consolidated Statements of Cash Flows – for the three months ended March 31, 2016 (unaudited) and 2015 (unaudited)
|
F-16 |
Notes to Condensed Consolidated Financial Statements
|
F-17 |
LEO MOTORS, INC.
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(AMOUNTS EXPRESSED IN US DOLLAR)
|
||||||||
|
||||||||
|
Balance at
|
|||||||
|
12/31/2015
|
12/31/2014
|
||||||
|
(Audited)
|
(Audited)
|
||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
243,809
|
$
|
217,178
|
||||
Accounts receivable
|
1,565,114
|
542,210
|
||||||
Inventories
|
496,971
|
279,783
|
||||||
Prepayment to suppliers
|
279,229
|
306,969
|
||||||
Other current assets
|
32,107
|
49,705
|
||||||
Total Current Assets
|
2,617,230
|
1,395,845
|
||||||
Fixed assets, net
|
163,001
|
38,620
|
||||||
Deposit
|
346,659
|
51,601
|
||||||
Intangible assets
|
63,831
|
63,831
|
||||||
Goodwill
|
3,057,003
|
2,444,558
|
||||||
Total Assets
|
$
|
6,247,724
|
$
|
3,994,455
|
||||
Liabilities and Equity(Deficit)
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$
|
4,082,198
|
$
|
2,152,951
|
||||
Short term borrowings
|
7,661
|
448,801
|
||||||
Advance from customers
|
795,431
|
40,951
|
||||||
Due to related parties
|
140,396
|
150,637
|
||||||
Taxes payable
|
99,584
|
159,478
|
||||||
Notes Payable current portion
|
49,397
|
526,257
|
||||||
Derivative liability
|
0
|
819,922
|
||||||
Total Current Liabilities
|
5,174,667
|
4,298,997
|
||||||
Accrued retirement benefits
|
92,948
|
2,150
|
||||||
Notes payable long term
|
273,646
|
145,316
|
||||||
Other long term liabilities
|
129,748
|
0
|
||||||
Total Liabilities
|
5,671,009
|
4,446,463
|
||||||
Commitments (Note 8)
|
-
|
-
|
||||||
Leo Motors, Inc.("LEOM") Equity(Deficit):
|
||||||||
Common stock ($0.001 par value; 300,000,000 shares authorized); 158,948,604 and 138,624,206 shares issued and outstanding at December 31, 2015 and December 31, 2014
|
158,949
|
138,624
|
||||||
Additional paid-in capital
|
20,367,272
|
17,723,248
|
||||||
Accumulated other comprehensive income
|
1,251,120
|
511,229
|
||||||
Accumulated loss
|
(25,404,609
|
)
|
(21,357,211
|
)
|
||||
Total Equity(Deficit) Leo Motors, Inc.
|
(3,627,268
|
)
|
(2,984,110
|
)
|
||||
Non-controlling interest
|
4,203,983
|
2,532,102
|
||||||
Total Equity(Deficit)
|
576,715
|
(452,008
|
)
|
|||||
Total Liabilities and Equity(Deficit)
|
$
|
6,247,724
|
$
|
3,994,455
|
||||
|
||||||||
"See accompanying notes to consolidated financial statements"
|
LEO MOTORS, INC.
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
(AMOUNTS EXPRESSED IN US DOLLAR)
|
||||||||
|
||||||||
|
For the Years Ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
(Audited)
|
(Audited)
|
||||||
Revenues
|
$
|
4,299,187
|
$
|
693,096
|
||||
|
||||||||
Cost of Revenues
|
3,275,587
|
379,066
|
||||||
Gross Profit
|
1,023,600
|
314,030
|
||||||
|
||||||||
Operating Expenses
|
5,421,508
|
3,468,599
|
||||||
Income(loss) from Continuing Operations
|
(4,397,908
|
)
|
(3,154,569
|
)
|
||||
|
||||||||
Other Income (Expenses)
|
||||||||
Interest expense
|
(319,054
|
)
|
(1,325,975
|
)
|
||||
Non-Operating (expense) income
|
225,990
|
0
|
||||||
Total Other Income (Expenses)
|
(93,064
|
)
|
(1,325,975
|
)
|
||||
|
||||||||
Income(loss) from Continuing Operations Before Income Taxes
|
(4,490,972
|
)
|
(4,480,544
|
)
|
||||
|
||||||||
Income Tax Expense
|
0
|
0
|
||||||
Net Income(Loss)
|
$
|
(4,490,972
|
)
|
$
|
(4,480,544
|
)
|
||
|
||||||||
Income(loss) attributable to non-controlling interest
|
$
|
(443,574
|
)
|
$
|
(4,817
|
)
|
||
|
||||||||
Net Income(Loss) Attributable To Leo Motors, Inc.
|
(4,047,398
|
)
|
(4,485,361
|
)
|
||||
|
||||||||
Other Comprehensive Income:
|
||||||||
Net Income(loss)
|
$
|
(4,490,972
|
)
|
$
|
(4,480,544
|
)
|
||
Unrealized foreign currency translation gain
|
739,891
|
(42,899
|
)
|
|||||
|
||||||||
Comprehensive Income(loss) Attributable to Leo Motors, Inc.
|
$
|
(3,751,081
|
)
|
$
|
(4,523,443
|
)
|
||
Net Loss per Common Share:
|
||||||||
Basic
|
$
|
(0.03
|
)
|
$
|
(0.05
|
)
|
||
Diluted
|
$
|
(0.03
|
)
|
$
|
(0.05
|
)
|
||
Weighted Average Common Shares Outstanding:
|
||||||||
Basic
|
$
|
155,866,313
|
$
|
97,393,209
|
||||
Diluted
|
$
|
155,866,313
|
$
|
98,056,098
|
||||
|
||||||||
"See accompanying notes to consolidated financial statements"
|
LEO MOTORS, INC.
|
||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||||||||||||||
(AMOUNTS EXPRESSED IN US DOLLAR)
|
||||||||||||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (AUDITED)
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
Common Stock
|
Additional
|
Accumulated Other
|
Non-
|
Total
|
|||||||||||||||||||||||
|
Number of
|
Paid-in
|
Accumulated
|
Comprehensive
|
Controlling
|
Stockholders'
|
||||||||||||||||||||||
|
Stocks
|
Amount
|
Capital
|
Loss
|
Income
|
Interest
|
Equity
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance, December 31, 2013
|
67,833,662
|
67,834
|
13,290,081
|
(16,871,850
|
)
|
468,330
|
2,527,285
|
(518,320
|
)
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Stock-based compensation
|
16,610,000
|
16,610
|
1,395,854
|
-
|
-
|
-
|
1,412,464
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Stock Issued in payment of debt
|
5,965,990
|
5,965
|
278,678
|
-
|
-
|
-
|
284,643
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Stock Issued for investment
|
45,977,264
|
45,978
|
2,758,635
|
-
|
-
|
-
|
2,804,613
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Minority interest contributions
|
2,237,290
|
2,237
|
-
|
-
|
-
|
0
|
2,237
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net loss for the year 2014
|
-
|
-
|
-
|
(4,485,361
|
)
|
-
|
4,817
|
(4,480,544
|
)
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
42,899
|
42,899
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance, December 31, 2014
|
138,624,206
|
$
|
138,624
|
$
|
17,723,248
|
$
|
(21,357,211
|
)
|
$
|
511,229
|
$
|
2,532,102
|
$
|
(452,008
|
)
|
|||||||||||||
|
||||||||||||||||||||||||||||
Stock-based compensation
|
20,324,398
|
20,325
|
1,795,065
|
-
|
-
|
-
|
1,815,390
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Retirement of derivatives
|
-
|
-
|
819,922
|
-
|
-
|
-
|
819,922
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Warrants issued for investment
|
-
|
-
|
29,037
|
-
|
-
|
-
|
29,037
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Minority interest contributions
|
-
|
-
|
-
|
-
|
-
|
2,115,455
|
2,115,455
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net loss for the year 2014
|
-
|
-
|
-
|
(4,047,398
|
)
|
-
|
(443,574
|
)
|
(4,490,972
|
)
|
||||||||||||||||||
|
||||||||||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
739,891
|
739,891
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance, December 31, 2015
|
158,948,604
|
$
|
158,949
|
$
|
20,367,272
|
$
|
(25,404,609
|
)
|
$
|
1,251,120
|
$
|
4,203,983
|
$
|
576,715
|
LEO MOTORS, INC.
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(AMOUNTS EXPRESSED IN US DOLLAR)
|
||||||||
|
For the Years Ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
(Audited)
|
(Audited)
|
||||||
Cash flows from Operating Activities:
|
||||||||
Net loss
|
$
|
(4,490,972
|
)
|
$
|
(4,480,544
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
207,837
|
19,470
|
||||||
Loss on conversion of debt
|
0
|
24,376
|
||||||
Amortization debt discount
|
275,176
|
340,568
|
||||||
Foreign currency translation
|
739,891
|
42,899
|
||||||
Stock-based compensation
|
903,704
|
284,643
|
||||||
Gain on derivative liabilites
|
0
|
(5,607
|
)
|
|||||
Impairment of investment
|
0
|
762,000
|
||||||
Changes in assets and liabilities:
|
||||||||
Accounts Receivable
|
(1,022,904
|
)
|
(542,210
|
)
|
||||
Inventories
|
(217,188
|
)
|
(279,783
|
)
|
||||
Prepayment to suppliers
|
27,740
|
(108,996
|
)
|
|||||
Other assets
|
17,598
|
(19,522
|
)
|
|||||
Accounts payable, other payables and accrued expenses
|
1,929,247
|
1,033,656
|
||||||
Accrued retirement benefits
|
90,798
|
(59,886
|
)
|
|||||
Advances from customers
|
883,658
|
(394,488
|
)
|
|||||
Taxes payable
|
(59,894
|
)
|
12,628
|
|||||
Net cash used in operating activities:
|
(715,309
|
)
|
(3,370,796
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Investment in equipment
|
(332,218
|
)
|
(16,846
|
)
|
||||
Payments on deposits
|
(295,058
|
)
|
0
|
|||||
Net cash provided(used) in investing activities:
|
(627,276
|
)
|
(16,846
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from notes payable
|
427,208
|
801,433
|
||||||
Payments on related party debt net
|
(10,241
|
)
|
0
|
|||||
Payments on notes payable
|
(441,140
|
)
|
0
|
|||||
Proceeds from issuance of stock & warrants
|
1,393,389
|
2,801,613
|
||||||
Net cash provided(used) by financing activities:
|
1,369,216
|
3,603,046
|
||||||
Net Increase in cash and cash equivalents:
|
26,631
|
215,404
|
||||||
|
||||||||
Cash and cash equivalents - beginning of year
|
217,178
|
1,774
|
||||||
|
||||||||
Cash and cash equivalents - end of year
|
$
|
243,809
|
$
|
217,178
|
||||
Supplemental disclosure of cash flow activities:
|
||||||||
Interest
|
$
|
43,878
|
$
|
0
|
||||
Income taxes
|
$
|
0
|
$
|
4,817
|
||||
Supplemental disclosures of non cash activities:
|
||||||||
Conversion of derivative liability
|
$
|
819,922
|
$
|
569,584
|
||||
Goodwill on acquisition
|
$
|
612,445
|
$
|
0
|
||||
Conversion of debt for common stock
|
$
|
1,901,433
|
$
|
98,496
|
||||
Common stock issued for services
|
$
|
903,704
|
$
|
284,643
|
||||
|
||||||||
"See accompanying notes to consolidated financial statements"
|
|
For the periods ended
|
|||||||
|
12/31/2015
|
12/31/2014
|
||||||
|
||||||||
Net Income (Loss)
|
$
|
(4,490,972
|
)
|
$
|
(4,480,544
|
)
|
||
|
||||||||
|
||||||||
Weighted-average common stock Outstanding - basic
|
155,866,313
|
97,393,209
|
||||||
Equivalents
|
||||||||
Stock options
|
-
|
0
|
||||||
Warrants
|
-
|
0
|
||||||
Convertible Notes
|
0
|
662,889
|
||||||
Weighted-average common shares
|
||||||||
outstanding- Diluted
|
155,866,313
|
98,056,098
|
For the Year Ending
|
Amount
|
|||
|
||||
2016
|
$
|
220,827
|
||
2017
|
101,249
|
|||
2018 and beyond
|
0
|
|||
|
||||
Total Commitment
|
$
|
322,076
|
|
31-Dec-15
|
31-Dec-14
|
||||||
|
US$
|
US$
|
||||||
Raw material
|
$
|
0
|
$
|
0
|
||||
Work in process
|
496,971
|
279,783
|
||||||
Finished goods
|
0
|
0
|
||||||
|
$
|
496,971
|
$
|
279,783
|
|
31-Dec-15
|
31-Dec-14
|
||||||
|
||||||||
Vehicles
|
$
|
146,268
|
$
|
7,581
|
||||
Tools
|
95,771
|
12,906
|
||||||
Office
|
109,447
|
79,963
|
||||||
Facility equipment
|
210,502
|
157,966
|
||||||
|
||||||||
Total property and equipment
|
561,988
|
258,416
|
||||||
|
||||||||
Accumulated depreciation
|
(398,987
|
)
|
(219,796
|
)
|
||||
Property and equipment, net
|
$
|
163,001
|
$
|
38,620
|
|
12/31/15
|
|||
Hana Bank six month note extended with 12 month term
|
||||
renewable periods with a variable interest rate currently at 3.65%
|
||||
interest only payable monthly and securred by the company.
|
$
|
45,505
|
||
|
||||
Hana Bank six month note extended with 12 month term
|
||||
renewable periods with a variable interest rate currently at 6.24%
|
||||
interest only payable monthly.
|
75,775
|
|||
|
||||
Hana Bank six month note extended with 12 month term
|
||||
renewable periods with a variable interest rate currently at 3.64%
|
||||
interest only payable monthly and securred by the company.
|
46,800
|
|||
|
||||
KookMin Bank six month note extended with 12 month term
|
||||
renewable periods with a variable interest rate currently at 3.28%
|
||||
interest only payable monthly and securred by the company
|
85,245
|
|||
|
||||
Industrial Bank of Korea Bank four year note extended with 12 month
|
||||
extension fully amortizing with a variable interest rate currently at 3.83%
|
||||
payable monthly.
|
35,718
|
|||
|
||||
NH Bank six month note extended with 12 month term
|
||||
renewable periods with a variable interest rate currently at 7.25%
|
||||
interest only payable monthly.
|
34,000
|
|||
|
||||
Total Liabilities
|
323,043
|
|||
|
||||
Less current portion
|
49,397
|
|||
|
||||
Long tem debt
|
$
|
273,646
|
|
Total
|
|||
Deferred Tax Assets
|
8,637,567
|
|||
Realization Allowance
|
(8,637,567
|
)
|
||
Balance Recognized
|
$
|
-
|
Statutory Federal Rate
|
34
|
%
|
||
Effect of Valuation Allowance
|
(34
|
%)
|
||
Effective Rate
|
0
|
%
|
|
31-Dec-15
|
31-Dec-14
|
||||||
Patents
|
$
|
63,554
|
$
|
63,554
|
||||
Trademarks
|
277
|
277
|
||||||
Goodwill
|
3,057,003
|
2,444,558
|
||||||
Intangible assets
|
3,120,834
|
2,508,389
|
||||||
Less impairments
|
0
|
0
|
||||||
Intangible assets, net
|
$
|
3,120,834
|
$
|
2,508,389
|
Fair Value Measurement Using
|
|||||||||||||||||||
Carrying Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||
-0-
|
-
|
-
|
-0-
|
-0-
|
|||||||||||||||
$
|
-0-
|
$
|
-
|
$
|
-
|
$
|
-0-
|
$
|
-0-
|
|
Derivative Liability
|
|||
Fair value, December 31, 2014
|
$
|
819,922
|
||
Additions
|
-0-
|
|||
Change in fair value
|
-0-
|
|||
Transfers in and/or out of Level 3
|
(819,922
|
)
|
||
Fair value, December 31, 2015
|
$
|
-0-
|
Leo Motors consolidation
|
LEO Motors
|
LEO Motors
|
LGM
|
LEO Motors
|
LEO Motors
|
LEO Trade
|
ELIM
|
Consolidated
|
||||||||||||||||||||||||
March 31, 2015
|
US
|
Korea
|
Factory 1
|
Factory 2
|
(f/k/a/ Erum)
|
ENTRIES
|
Statements
|
|||||||||||||||||||||||||
All numbers shown in US Dollars
|
DR(CR)
|
3/31/2015
|
||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
374
|
67853
|
211,957
|
91,187
|
2914
|
92173
|
0
|
466,458
|
|||||||||||||||||||||||
Accounts receivable
|
0
|
0
|
476,777
|
8,754
|
48,425
|
418,422
|
0
|
952,378
|
||||||||||||||||||||||||
Inventories
|
0
|
0
|
295,159
|
0
|
0
|
0
|
0
|
295,159
|
||||||||||||||||||||||||
Prepayment to suppliers
|
0
|
137,236
|
160,484
|
0
|
0
|
0
|
0
|
297,720
|
||||||||||||||||||||||||
Other current assets
|
0
|
7,297
|
57,403
|
1,595
|
125,212
|
36,685
|
0
|
228,192
|
||||||||||||||||||||||||
Total Current Assets
|
374
|
212,386
|
1,201,780
|
101,536
|
176,551
|
547,280
|
2,239,907
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Fixed assets, net
|
6,744
|
10,530
|
16,846
|
63,683
|
88,181
|
0
|
0
|
185,984
|
||||||||||||||||||||||||
Deposit
|
0
|
46,234
|
22,637
|
4,804
|
145,196
|
9,025
|
0
|
227,896
|
||||||||||||||||||||||||
Intangible assets
|
0
|
63,831
|
0
|
0
|
0
|
0
|
0
|
63,831
|
||||||||||||||||||||||||
Goodwill
|
0
|
0
|
0
|
0
|
0
|
0
|
3,057,003
|
3,057,003
|
||||||||||||||||||||||||
Investment in subsidiaries
|
8,089,368
|
0
|
0
|
0
|
0
|
0
|
-8,089,368
|
0
|
||||||||||||||||||||||||
Total Non-Current Assets
|
8,096,112
|
120,595
|
39,483
|
68,487
|
233,377
|
9,025
|
3,534,714
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total Assets
|
$
|
8,096,486
|
332,981
|
1,241,263
|
170,023
|
409,928
|
556,305
|
-5,032,365
|
5,774,621
|
|||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||||||||||
Current Liabilities:
|
||||||||||||||||||||||||||||||||
Accounts payable and accrued expenses
|
$
|
1,139,889
|
1,060,342
|
291,900
|
97,840
|
307,112
|
416,183
|
0
|
3,313,266
|
|||||||||||||||||||||||
Short term borrowings
|
0
|
256,392
|
183,245
|
32,052
|
0
|
0
|
0
|
471,689
|
||||||||||||||||||||||||
Advance from customers
|
0
|
30,381
|
9,141
|
0
|
4,513
|
0
|
0
|
44,035
|
||||||||||||||||||||||||
Due to related parties
|
0
|
116,617
|
0
|
0
|
0
|
0
|
0
|
116,617
|
||||||||||||||||||||||||
Taxes payable
|
0
|
137,780
|
10,673
|
13,559
|
78,783
|
226
|
0
|
241,021
|
||||||||||||||||||||||||
Notes Payable current portion
|
0
|
0
|
0
|
0
|
0
|
353,747
|
0
|
353,747
|
||||||||||||||||||||||||
Total Current Liabilities
|
1,139,889
|
1,601,512
|
494,959
|
143,451
|
390,408
|
770,156
|
4,540,375
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Long Term Notes
|
0
|
36,698
|
117,075
|
0
|
173,928
|
0
|
0
|
327,701
|
||||||||||||||||||||||||
Accrued severance benefits
|
0
|
2,075
|
0
|
0
|
0
|
0
|
0
|
2,075
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total Liabilities
|
1,139,889
|
1,640,285
|
612,034
|
143,451
|
564,336
|
770,156
|
4,870,151
|
|||||||||||||||||||||||||
Stockholders' Equity:
|
||||||||||||||||||||||||||||||||
Common stock
|
154,144
|
2,831,276
|
284,870
|
90,253
|
135,379
|
180,505
|
(3,522,283
|
)
|
154,144
|
|||||||||||||||||||||||
Additional paid-in capital
|
21,253,084
|
1,831,184
|
1,285,902
|
0
|
0
|
0
|
(4,973,230
|
)
|
19,396,940
|
|||||||||||||||||||||||
Accumulated other comprehensive income
|
277,678
|
225,403
|
4,893
|
0
|
0
|
0
|
0
|
507,974
|
||||||||||||||||||||||||
Accumulated loss
|
(14,728,309
|
)
|
(6,195,167
|
)
|
(946,436
|
)
|
(63,681
|
)
|
(289,787
|
)
|
(394,356
|
)
|
733,773
|
(21,883,963
|
)
|
|||||||||||||||||
Total Stockholders' Deficit attributable to LEO MOTORS, INC.
|
6,956,597
|
(1,307,304
|
)
|
629,229
|
26,572
|
(154,408
|
)
|
(213,851
|
)
|
(1,824,905
|
)
|
|||||||||||||||||||||
Non-controlling interest
|
0
|
0
|
0
|
0
|
0
|
0
|
2,729,375
|
2,729,375
|
||||||||||||||||||||||||
Total Stockholders' Deficit
|
6,956,597
|
(1,307,304
|
)
|
629,229
|
26,572
|
(154,408
|
)
|
(213,851
|
)
|
904,470
|
||||||||||||||||||||||
Total Liabilities and Stockholders' Deficit
|
$
|
8,096,486
|
332,981
|
1,241,263
|
170,023
|
409,928
|
556,305
|
(5,032,365
|
)
|
5,774,621
|
LEO MOTORS, INC.
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(AMOUNTS EXPRESSED IN US DOLLAR)
|
||||||||
|
||||||||
|
Balance at
|
|||||||
|
3/31/2016
|
12/31/2015
|
||||||
|
||||||||
Assets
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
130,874
|
$
|
243,809
|
||||
Accounts receivable
|
1,015,447
|
1,565,114
|
||||||
Inventories
|
838,785
|
496,971
|
||||||
Prepayment to suppliers
|
382,545
|
279,229
|
||||||
Other current assets
|
199,073
|
32,107
|
||||||
Total Current Assets
|
2,566,724
|
2,617,230
|
||||||
Fixed assets, net
|
142,137
|
163,001
|
||||||
Deposit
|
346,255
|
346,659
|
||||||
Intangible assets
|
87,275
|
63,831
|
||||||
Goodwill
|
3,057,003
|
3,057,003
|
||||||
Total Assets
|
$
|
6,199,394
|
$
|
6,247,724
|
||||
Liabilities and Equity(Deficit)
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$
|
3,748,487
|
$
|
4,082,198
|
||||
Short term borrowings
|
0
|
7,661
|
||||||
Advance from customers
|
496,385
|
795,431
|
||||||
Due to related parties
|
136,887
|
140,396
|
||||||
Taxes payable
|
155,151
|
99,584
|
||||||
Notes Payable current portion
|
264,158
|
49,397
|
||||||
Total Current Liabilities
|
4,801,068
|
5,174,667
|
||||||
Accrued retirement benefits
|
96,518
|
92,948
|
||||||
Notes payable long term
|
95,599
|
273,646
|
||||||
Other long term liabilities
|
196,579
|
129,748
|
||||||
Total Liabilities
|
5,189,764
|
5,671,009
|
||||||
Commitments (Note 8)
|
-
|
-
|
||||||
Leo Motors, Inc.("LEOM") Equity(Deficit):
|
||||||||
Common stock ($0.001 par value; 300,000,000 shares authorized); 163,198,512 and 158,948,604 shares issued and outstanding at March 31, 2016 and December 31, 2015
|
163,199
|
158,949
|
||||||
Additional paid-in capital
|
20,990,286
|
20,367,272
|
||||||
Accumulated other comprehensive income
|
1,329,240
|
1,251,120
|
||||||
Accumulated loss
|
(25,827,119
|
)
|
(25,404,609
|
)
|
||||
Total Equity(Deficit) Leo Motors, Inc.
|
(3,344,394
|
)
|
(3,627,268
|
)
|
||||
Non-controlling interest
|
4,354,024
|
4,203,983
|
||||||
Total Equity(Deficit)
|
1,009,630
|
576,715
|
||||||
Total Liabilities and Equity(Deficit)
|
$
|
6,199,394
|
$
|
6,247,724
|
||||
|
||||||||
"See accompanying notes to consolidated financial statements"
|
LEO MOTORS, INC.
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
(AMOUNTS EXPRESSED IN US DOLLAR)
|
||||||||
|
||||||||
|
For the Three Months Ended March 31,
|
|||||||
|
2016
|
2015
|
||||||
|
||||||||
Revenues
|
$
|
745,706
|
$
|
42,771
|
||||
|
||||||||
Cost of Revenues
|
291,014
|
0
|
||||||
Gross Profit
|
454,692
|
42,771
|
||||||
|
||||||||
Operating Expenses
|
908,860
|
358,411
|
||||||
Income(loss) from Continuing Operations
|
(454,168
|
)
|
(315,640
|
)
|
||||
|
||||||||
Other Income (Expenses)
|
||||||||
Interest expense
|
(9,328
|
)
|
(280,975
|
)
|
||||
Non-Operating (expense) income
|
5,330
|
1,197
|
||||||
Total Other Income (Expenses)
|
(3,998
|
)
|
(279,778
|
)
|
||||
|
||||||||
Income(loss) from Continuing Operations Before Income Taxes
|
(458,166
|
)
|
(595,418
|
)
|
||||
|
||||||||
Income Tax Expense
|
0
|
0
|
||||||
Net Income(Loss)
|
$
|
(458,166
|
)
|
$
|
(595,418
|
)
|
||
|
||||||||
Income(loss) attributable to non-controlling interest
|
$
|
(35,655
|
)
|
$
|
(68,666
|
)
|
||
|
||||||||
Net Income(Loss) Attributable To Leo Motors, Inc.
|
(422,511
|
)
|
(526,752
|
)
|
||||
|
||||||||
Other Comprehensive Income:
|
||||||||
Net Income(loss)
|
$
|
(422,511
|
)
|
$
|
(526,752
|
)
|
||
Unrealized foreign currency translation gain
|
78,120
|
(3,255
|
)
|
|||||
|
||||||||
Comprehensive Income(loss) Attributable to Leo Motors, Inc.
|
$
|
(344,391
|
)
|
$
|
(530,007
|
)
|
||
Net Loss per Common Share:
|
||||||||
Basic
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||
Diluted
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||
Weighted Average Common Shares Outstanding:
|
||||||||
Basic
|
$
|
161,878,686
|
$
|
149,069,490
|
||||
Diluted
|
$
|
161,878,686
|
$
|
149,972,010
|
||||
|
||||||||
"See accompanying notes to consolidated financial statements"
|
LEO MOTORS, INC.
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(AMOUNTS EXPRESSED IN US DOLLAR)
|
||||||||
|
For the Three Months Ended March 31,
|
|||||||
|
2016
|
2015
|
||||||
|
||||||||
Cash flows from Operating Activities:
|
||||||||
Net loss
|
$
|
(458,166
|
)
|
$
|
(595,418
|
)
|
||
Adjustments to reconcile net loss to net cash
|
||||||||
used in operating activities:
|
||||||||
Depreciation and amortization
|
20,864
|
4,500
|
||||||
Amortization debt discount
|
0
|
275,176
|
||||||
Foreign currency translation
|
78,120
|
(3,255
|
)
|
|||||
Stock-based compensation
|
115,938
|
38,820
|
||||||
Changes in assets and liabilities:
|
||||||||
Accounts Receivable
|
549,667
|
(410,168
|
)
|
|||||
Inventories
|
(341,814
|
)
|
(15,376
|
)
|
||||
Prepayment to suppliers
|
(103,316
|
)
|
9,249
|
|||||
Other assets
|
(166,966
|
)
|
(178,487
|
)
|
||||
Accounts payable, other payables and accrued expenses
|
(266,880
|
)
|
1,160,315
|
|||||
Accrued retirement benefits
|
3,570
|
(75
|
)
|
|||||
Advances from customers
|
(299,046
|
)
|
3,084
|
|||||
Taxes payable
|
55,567
|
81,543
|
||||||
Net cash used in operating activities:
|
(812,462
|
)
|
369,908
|
|||||
Cash flows from investing activities:
|
||||||||
Investment in assets
|
(23,444
|
)
|
(151,864
|
)
|
||||
Payments on deposits
|
(404
|
)
|
(176,295
|
)
|
||||
Net cash provided(used) in investing activities:
|
(23,848
|
)
|
(328,159
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from notes payable
|
32,373
|
201,380
|
||||||
Payments on related party debt net
|
(3,509
|
)
|
0
|
|||||
Payments on notes payable
|
(7,661
|
)
|
(22,886
|
)
|
||||
Capital contributions
|
186,973
|
0
|
||||||
Proceeds from issuance of stock & warrants
|
515,199
|
29,037
|
||||||
Net cash provided(used) by financing activities:
|
723,375
|
207,531
|
||||||
Net Increase in cash and cash equivalents:
|
(112,935
|
)
|
249,280
|
|||||
|
||||||||
Cash and cash equivalents - beginning of year
|
243,809
|
217,178
|
||||||
|
||||||||
Cash and cash equivalents - end of year
|
$
|
130,874
|
$
|
466,458
|
||||
Supplemental disclosure of cash flow activities:
|
||||||||
Interest
|
$
|
9,328
|
$
|
4,817
|
||||
Income taxes
|
$
|
0
|
$
|
0
|
||||
Supplemental disclosures of non cash activities:
|
||||||||
Conversion of derivative liability
|
$
|
0
|
$
|
819,922
|
||||
Goodwill on acquisition
|
$
|
0
|
$
|
641,687
|
||||
Conversion of debt for common stock
|
$
|
0
|
$
|
801,433
|
||||
Common stock issued for services
|
$
|
115,938
|
$
|
38,820
|
||||
|
||||||||
"See accompanying notes to consolidated financial statements"
|
|
For the periods ended
|
|||||||
|
3/31/2016
|
3/31/2015
|
||||||
|
||||||||
Net Income (Loss)
|
$
|
(458,166
|
)
|
$
|
(595,418
|
)
|
||
|
||||||||
Weighted-average common stock Outstanding - basic
|
161,878,686
|
149,069,490
|
||||||
Equivalents
|
||||||||
Stock options
|
-
|
0
|
||||||
Warrants
|
-
|
0
|
||||||
Convertible Notes
|
0
|
902,520
|
||||||
Weighted-average common shares
|
||||||||
outstanding- Diluted
|
161,878,686
|
149,972,010
|
For the Year Ending
|
Amount
|
|||
2016
|
$
|
165,620
|
||
2017
|
101,249
|
|||
2018 and beyond
|
0
|
|||
Total Commitment
|
$
|
266,869
|
|
31-Mar-16
|
31-Dec-15
|
||||||
|
US$
|
US$
|
||||||
Raw material
|
$
|
0
|
$
|
0
|
||||
Work in process
|
838,785
|
496,971
|
||||||
Finished goods
|
0
|
0
|
||||||
|
$
|
838,785
|
$
|
496,971
|
|
31-Mar-16
|
31-Dec-15
|
||||||
|
||||||||
Vehicles
|
$
|
146,268
|
$
|
146,268
|
||||
Tools
|
95,771
|
95,771
|
||||||
Office
|
109,447
|
109,447
|
||||||
Facility equipment
|
210,502
|
210,502
|
||||||
|
||||||||
Total property and equipment
|
561,988
|
561,988
|
||||||
|
||||||||
Accumulated depreciation
|
(419,851
|
)
|
(398,987
|
)
|
||||
Property and equipment, net
|
$
|
142,137
|
$
|
163,001
|
|
3/31/16
|
|||
Hana Bank six month note extended with 12 month term
|
||||
renewable periods with a variable interest rate currently at 3.65%
|
||||
interest only payable monthly and securred by the company.
|
$
|
62,883
|
||
|
||||
Hana Bank six month note extended with 12 month term
|
||||
renewable periods with a variable interest rate currently at 6.24%
|
||||
interest only payable monthly.
|
76,479
|
|||
|
||||
KookMin Bank six month note extended with 12 month term
|
||||
renewable periods with a variable interest rate currently at 3.28%
|
||||
interest only payable monthly and securred by the company
|
84,977
|
|||
|
||||
Industrial Bank of Korea Bank four year note extended with 12 month
|
||||
extension fully amortizing with a variable interest rate currently at 3.83%
|
||||
payable monthly.
|
127,465
|
|||
|
||||
NH Bank six month note extended with 12 month term
|
||||
renewable periods with a variable interest rate currently at 7.25%
|
||||
interest only payable monthly.
|
7,954
|
|||
|
||||
Total Liabilities
|
359,757
|
|||
|
||||
Less current portion
|
264,158
|
|||
|
||||
Long tem debt
|
$
|
95,599
|
|
Total
|
|||
Deferred Tax Assets
|
8,781,220
|
|||
Realization Allowance
|
(8,781,220
|
)
|
||
Balance Recognized
|
$
|
-
|
Statutory Federal Rate
|
34
|
%
|
||
Effect of Valuation Allowance
|
(34
|
%)
|
||
Effective Rate
|
0
|
%
|
|
31-Mar-16
|
31-Dec-15
|
||||||
Patents
|
$
|
86,998
|
$
|
63,554
|
||||
Trademarks
|
277
|
277
|
||||||
Goodwill
|
3,057,003
|
3,057,003
|
||||||
Intangible assets
|
3,144,278
|
3,120,834
|
||||||
Less impairments
|
0
|
0
|
||||||
Intangible assets, net
|
$
|
3,144,278
|
$
|
3,120,834
|
Leo Motors consolidation
|
LEO Motors
|
LEO Motors
|
LGM
|
LEO Motors
|
LEO Motors
|
LEO Trade
|
ELIM
|
Consolidated
|
||||||||||||||||||||||||
March 31, 2015
|
US
|
Korea
|
Factory 1
|
Factory 2
|
(f/k/a/ Erum)
|
ENTRIES
|
Statements
|
|||||||||||||||||||||||||
All numbers shown in US Dollars
|
DR(CR)
|
3/31/2015
|
||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
374
|
67853
|
211,957
|
91,187
|
2914
|
92173
|
0
|
466,458
|
|||||||||||||||||||||||
Accounts receivable
|
0
|
0
|
476,777
|
8,754
|
48,425
|
418,422
|
0
|
952,378
|
||||||||||||||||||||||||
Inventories
|
0
|
0
|
295,159
|
0
|
0
|
0
|
0
|
295,159
|
||||||||||||||||||||||||
Prepayment to suppliers
|
0
|
137,236
|
160,484
|
0
|
0
|
0
|
0
|
297,720
|
||||||||||||||||||||||||
Other current assets
|
0
|
7,297
|
57,403
|
1,595
|
125,212
|
36,685
|
0
|
228,192
|
||||||||||||||||||||||||
Total Current Assets
|
374
|
212,386
|
1,201,780
|
101,536
|
176,551
|
547,280
|
2,239,907
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Fixed assets, net
|
6,744
|
10,530
|
16,846
|
63,683
|
88,181
|
0
|
0
|
185,984
|
||||||||||||||||||||||||
Deposit
|
0
|
46,234
|
22,637
|
4,804
|
145,196
|
9,025
|
0
|
227,896
|
||||||||||||||||||||||||
Intangible assets
|
0
|
63,831
|
0
|
0
|
0
|
0
|
0
|
63,831
|
||||||||||||||||||||||||
Goodwill
|
0
|
0
|
0
|
0
|
0
|
0
|
3,057,003
|
3,057,003
|
||||||||||||||||||||||||
Investment in subsidiaries
|
8,089,368
|
0
|
0
|
0
|
0
|
0
|
-8,089,368
|
0
|
||||||||||||||||||||||||
Total Non-Current Assets
|
8,096,112
|
120,595
|
39,483
|
68,487
|
233,377
|
9,025
|
3,534,714
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total Assets
|
$
|
8,096,486
|
332,981
|
1,241,263
|
170,023
|
409,928
|
556,305
|
-5,032,365
|
5,774,621
|
|||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||||||||||
Current Liabilities:
|
||||||||||||||||||||||||||||||||
Accounts payable and accrued expenses
|
$
|
1,139,889
|
1,060,342
|
291,900
|
97,840
|
307,112
|
416,183
|
0
|
3,313,266
|
|||||||||||||||||||||||
Short term borrowings
|
0
|
256,392
|
183,245
|
32,052
|
0
|
0
|
0
|
471,689
|
||||||||||||||||||||||||
Advance from customers
|
0
|
30,381
|
9,141
|
0
|
4,513
|
0
|
0
|
44,035
|
||||||||||||||||||||||||
Due to related parties
|
0
|
116,617
|
0
|
0
|
0
|
0
|
0
|
116,617
|
||||||||||||||||||||||||
Taxes payable
|
0
|
137,780
|
10,673
|
13,559
|
78,783
|
226
|
0
|
241,021
|
||||||||||||||||||||||||
Notes Payable current portion
|
0
|
0
|
0
|
0
|
0
|
353,747
|
0
|
353,747
|
||||||||||||||||||||||||
Total Current Liabilities
|
1,139,889
|
1,601,512
|
494,959
|
143,451
|
390,408
|
770,156
|
4,540,375
|
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Long Term Notes
|
0
|
36,698
|
117,075
|
0
|
173,928
|
0
|
0
|
327,701
|
||||||||||||||||||||||||
Accrued severance benefits
|
0
|
2,075
|
0
|
0
|
0
|
0
|
0
|
2,075
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total Liabilities
|
1,139,889
|
1,640,285
|
612,034
|
143,451
|
564,336
|
770,156
|
4,870,151
|
|||||||||||||||||||||||||
Stockholders' Equity:
|
||||||||||||||||||||||||||||||||
Common stock
|
154,144
|
2,831,276
|
284,870
|
90,253
|
135,379
|
180,505
|
(3,522,283
|
)
|
154,144
|
|||||||||||||||||||||||
Additional paid-in capital
|
21,253,084
|
1,831,184
|
1,285,902
|
0
|
0
|
0
|
(4,973,230
|
)
|
19,396,940
|
|||||||||||||||||||||||
Accumulated other comprehensive income
|
277,678
|
225,403
|
4,893
|
0
|
0
|
0
|
0
|
507,974
|
||||||||||||||||||||||||
Accumulated loss
|
(14,728,309
|
)
|
(6,195,167
|
)
|
(946,436
|
)
|
(63,681
|
)
|
(289,787
|
)
|
(394,356
|
)
|
733,773
|
(21,883,963
|
)
|
|||||||||||||||||
Total Stockholders' Deficit attributable to LEO MOTORS, INC.
|
6,956,597
|
(1,307,304
|
)
|
629,229
|
26,572
|
(154,408
|
)
|
(213,851
|
)
|
(1,824,905
|
)
|
|||||||||||||||||||||
Non-controlling interest
|
0
|
0
|
0
|
0
|
0
|
0
|
2,729,375
|
2,729,375
|
||||||||||||||||||||||||
Total Stockholders' Deficit
|
6,956,597
|
(1,307,304
|
)
|
629,229
|
26,572
|
(154,408
|
)
|
(213,851
|
)
|
904,470
|
||||||||||||||||||||||
Total Liabilities and Stockholders' Deficit
|
$
|
8,096,486
|
332,981
|
1,241,263
|
170,023
|
409,928
|
556,305
|
(5,032,365
|
)
|
5,774,621
|
Description
|
Amount to be Paid
|
|||
|
||||
Filing Fee - Securities and Exchange Commission
|
$
|
1,068.84
|
||
Attorney's fees and expenses
|
$
|
*
|
||
Accountant's fees and expenses
|
$
|
*
|
||
Other
|
$
|
*
|
||
|
$
|
|||
Total
|
$
|
*
|
Exhibit No.
|
Description
|
|
3.1
|
Amended Articles of Incorporation (Incorporated by reference to the Company's Registration Statement on Form 10 filed on December 10, 2008)
|
|
3.2
|
Restates Bylaws (Incorporated by reference to the Company's Registration Statement on Form 10 filed on December 10, 2008)
|
|
5.1
|
Opinion of Sichenzia Ross Friedman Ference LLP**
|
|
10.1
|
Purchase Agreement between Leo Motors, Inc. and PDI C&D/RDC SPRL, dated August 10, 2012 (incorporated by reference from the Company's Quarterly Report on From 10-Q filed November 23, 2012)
|
|
10.2
|
Amendment to Purchase Agreement between Leo Motors, Inc. and PDI C&D/RDC SPRL, dated October 13, 2012 (incorporated by reference from the Company's Quarterly Report on From 10-Q filed November 23, 2012)
|
|
10.3
|
2010 Employee Stock Option Plan (incorporated by reference from the Company's Current Report on Form 8-K filed February 3, 2010)
|
|
10.4
|
Purchase Agreement between Leo Motors, Inc. and Leo B&T Co. Ltd. (incorporated by reference from the Company Current Report on Form 8-K filed on February 16, 2010)
|
|
10.5
|
Agreement between Leo Motors, Inc. and M&M Corp. dated March 26, 2010 (incorporated by reference from the Company's Current Report on Form 8-K filed March 26, 2010)
|
|
10.6
|
Employment Agreement between Leo Motors, Inc. and Jung Yong Lee dated January 1, 2012 (incorporated by reference from the Company Annual Report on Form 10-K filed on April 16, 2013)
|
|
10.7
|
Investor Relations Program Agreement between Leo Motors, Inc. and JSR Partners Limited, dated April 15, 2014 (incorporated by reference from the Company's Current Report on Form 8-K filed on July 8, 2015)
|
|
10.8
|
Share Swap Agreement by and between Leo Motors, Inc. and LGM Co. Ltd., dated as of July 1, 2014(incorporated by reference from the Company's Current Report on Form 8-K filed on April 25, 2014)
|
|
10.9
|
Form of Securities Purchase Agreement(incorporated by reference from the Company's Current Report on Form 8-K filed on August 6, 2015)
|
|
10.10
|
Non-exclusive Execution Rights on Patent Technology Settlment& Registration Contract, dated September 19, 2014, by and between Leo Motors, Inc. and TPT, Co., Ltd. (incorporated by reference from the Company's Current Report on Form 8-K filed on September 25, 2014)
|
|
10.11
|
Securities Purchase Agreement by and between the Company and the BOU Trust, dated May 17, 2016 (incorporated by reference from the Company's Current Report on Form 8-K filed on May 17, 2016)
|
|
10.12
|
Registration Rights Agreement by and between the Company and the BOU Trust, dated May 17, 2016 (incorporated by reference from the Company's Current Report on Form 8-K filed on May 17, 2016)
|
|
10.13
|
Form of Convertible Debenture, dated May 18, 2016 (incorporated by reference from the Company's Current Report on Form 8-K filed on May 18, 2016)
|
|
10.14
|
Form of Securities Purchase Agreement, dated May 18, 2016 (incorporated by reference from the Company's Current Report on Form 8-K filed on May 18, 2016)
|
|
21
|
List of Subsidiaries (incorporated by reference from the Company's Annual Report on Form 10-K filed on March 30, 2016)
|
|
23.1
|
Consent of Scrudato & Co., PA, Independent Registered Public Accounting Firm
|
|
23.2
|
Consent of Sichenzia Ross Friedman Ference LLP (included in Exhibit 5.1)**
|
* Filed herewith
|
|
(i)
|
To include any prospectus required by Section 10(a)(3) of the Securities Act;
|
|
|
|
|
(ii)
|
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and
|
|
|
|
|
(iii)
|
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
|
|
(i)
|
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (§ 230.424 of this chapter);
|
|
(ii)
|
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
|
|
(iii)
|
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
|
|
|
|
|
(iv)
|
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
|
LEO MOTORS, INC.
|
|
||
|
|
|
|
June 10, 2016
|
By:
|
/s/ Jun Heng Park
|
|
|
|
Jun Heng Park
|
|
|
|
Chief Executive Officer (Principal Executive Officer) and Director
|
|
|
|
|
|
June 10, 2016
|
By:
|
/s/ Jeong Youl Choi
|
|
|
|
JeongYoul Choi
|
|
|
|
Chief Financial Officer (Principal Financial and Accounting Officer) and Director
|
|
/s/ Jun Heng Park
|
|
|
|
|
Jun Heng Park
|
|
Co-Chief Executive Officer (Principal Executive Officer) and Director
|
|
June 10, 2016
|
|
|
|
|
|
/s/ Jeong Youl Choi
|
|
|
|
|
JeongYoul Choi
|
|
Chief Financial Officer (Principal Financial and Accounting Officer) and Director
|
|
June 10, 2016
|
|
|
|
|
|
/s/ Shi Chul Kang
|
|
|
|
June 10, 2016
|
Shi Chul Kang
|
|
Co-Chief Executive Officer
|
|
|
|
Re:
|
Leo Motors, Inc.
Form S-1 Registration Statement
|
|
Very truly yours,
|
|
|
|
/s/ Sichenzia Ross Friedman Ference LLP
|
|
Sichenzia Ross Friedman Ference LLP
|
\D!/_H.:Z'3O$FBZLP6PU.VF<]$#@-_W
MR>:^9: 2#D=:I5Y=3*ID=%KW)-?B?5U%?/\ X?\ B+KFANDPI?RK[D;?_"8^)/^@W??]_C1_P )CXD_Z#=]_P!_C6)11S/N
M'L*7\J^Y&W_PF/B3_H-WW_?XTU_%WB*1"C:W?[3UQ.P_K6-11S/N'L*7\J^X
M5W:1R[L69CDLQR32444C4****!EW2=/DU;5[2PC!W7$JQY'8$\G\!DU]/HBQ
M1K&@VJH"J!V KRKX2^&/XAND(':@]^S/_0?C7J]==&-HW/D\YQ"J5E3C
MM'\PHHHK8\<**** "L+Q3X7L_%.F&VN/DF3+03@?]=(O_0Q47PI_P"1(C_Z[R?SK._[SY'I*$?[/
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
May. 12, 2016 |
|
Document and Entity Information | ||
Entity Registrant Name | Leo Motors, Inc. | |
Document Type | S-1 | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 0001356564 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 162,299,074 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | leom |
CONSOLIDATED BALANCE SHEETS - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Current Assets | |||
Cash and cash equivalents | $ 130,874 | $ 243,809 | $ 217,178 |
Accounts receivable | 1,015,447 | 1,565,114 | 542,210 |
Inventories | 838,785 | 496,971 | 279,783 |
Prepayment to suppliers | 382,545 | 279,229 | 306,969 |
Other current assets | 199,073 | 32,107 | 49,705 |
Total Current Assets | 2,566,724 | 2,617,230 | 1,395,845 |
Fixed assets, net | 142,137 | 163,001 | 38,620 |
Deposit | 346,255 | 346,659 | 51,601 |
Intangible assets | 87,275 | 63,831 | 63,831 |
Goodwill | 3,057,003 | 3,057,003 | 2,444,558 |
Total Assets | 6,199,394 | 6,247,724 | 3,994,455 |
Current Liabilities: | |||
Accounts payable and accrued expenses | 3,748,487 | 4,082,198 | 2,152,951 |
Short term borrowings | 0 | 7,661 | 448,801 |
Advance from customers | 496,385 | 795,431 | 40,951 |
Due to related parties | 136,887 | 140,396 | 150,637 |
Taxes payable | $ 155,151 | $ 99,584 | 159,478 |
Derivative liability | 819,922 | ||
Notes Payable current portion | $ 264,158 | $ 49,397 | 526,257 |
Total Current Liabilities | 4,801,068 | 5,174,667 | 4,298,997 |
Accrued retirement benefits | 96,518 | 92,948 | 2,150 |
Notes payable long term | 95,599 | 273,646 | 145,316 |
Other long term liabilities | 196,579 | 129,748 | 0 |
Total Liabilities | $ 5,189,764 | $ 5,671,009 | $ 4,446,463 |
Commitments (Note 8) | |||
Leo Motors, Inc.("LEOM") Equity(Deficit): | |||
Common stock ($0.001 par value; 300,000,000 shares authorized); 163,198,512 and 158,948,604 shares issued and outstanding at March 31, 2016 and December 31, 2015 | $ 163,199 | $ 158,949 | $ 138,624 |
Additional paid-in capital | 20,990,286 | 20,367,272 | 17,723,248 |
Accumulated other comprehensive income | 1,329,240 | 1,251,120 | 511,229 |
Accumulated loss | (25,827,119) | (25,404,609) | (21,357,211) |
Total Equity(Deficit) Leo Motors, Inc. | (3,344,394) | (3,627,268) | (2,984,110) |
Non-controlling interest | 4,354,024 | 4,203,983 | 2,532,102 |
Total Equity(Deficit) | 1,009,630 | 576,715 | (452,008) |
Total Liabilities and Equity(Deficit) | $ 6,199,394 | $ 6,247,724 | $ 3,994,455 |
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares |
Mar. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Statement of Financial Position | |||
Common Stock, par or stated value | $ 0.001 | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 300,000,000 | 220,000,000 | 220,000,000 |
Common Stock, shares issued | 163,198,512 | 158,948,604 | 138,624,206 |
Common Stock, shares outstanding | 163,198,512 | 158,948,604 | 138,624,206 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement | ||||
Revenues | $ 745,706 | $ 42,771 | $ 4,299,187 | $ 693,096 |
Cost of Revenues | 291,014 | 0 | 3,275,587 | 379,066 |
Gross Profit | 454,692 | 42,771 | 1,023,600 | 314,030 |
Operating Expenses | 908,860 | 358,411 | 5,421,508 | 3,468,599 |
Income(loss) from Continuing Operations | (454,168) | (315,640) | (4,397,908) | (3,154,569) |
Other Income (Expenses) | ||||
Interest expense | (9,328) | (280,975) | (319,054) | (1,325,975) |
Non-Operating (expense) income | 5,330 | 1,197 | 225,990 | 0 |
Total Other Income (Expenses) | (3,998) | (279,778) | (93,064) | (1,325,975) |
Income(loss) from Continuing Operations Before Income Taxes | (458,166) | (595,418) | (4,490,972) | (4,480,544) |
Income Tax Expense | 0 | 0 | 0 | 0 |
Net Income(Loss) | (458,166) | (595,418) | (4,490,972) | (4,480,544) |
Income(loss) attributable to non-controlling interest | (35,655) | (68,666) | (443,574) | (4,817) |
Net Income(Loss) Attributable To Leo Motors, Inc. | (422,511) | (526,752) | (4,047,398) | (4,485,361) |
Other Comprehensive Income: | ||||
Net Income(Loss) | (458,166) | (595,418) | (4,490,972) | (4,480,544) |
Unrealized foreign currency translation gain | 78,120 | (3,255) | 739,891 | (42,899) |
Comprehensive Income(loss) Attributable to Leo Motors, Inc. | $ (344,391) | $ (530,007) | $ (3,751,081) | $ (4,523,443) |
Net Loss per Common Share: | ||||
Basic | $ (0.00) | $ (0.00) | $ (0.03) | $ (0.05) |
Diluted | $ (0.00) | $ (0.00) | $ (0.03) | $ (0.05) |
Weighted Average Common Shares Outstanding: | ||||
Basic | 161,878,686 | 149,069,490 | 155,866,313 | 97,393,209 |
Diluted | 161,878,686 | 149,972,010 | 155,866,313 | 98,056,098 |
Note 1 - Company Background |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Notes | ||
Note 1 - Company Background | NOTE 1 - COMPANY BACKGROUND
Leo Motors, Inc. (the "Company," or "we") is currently in development, assembly and sales of the energy storage devices and electric vehicle components.
The Company was originally incorporated in California as N. Org., Inc. on December 12, 1983. The Company then underwent several name changes from Natural Organics Corporation to Classic Auto Accessories of North America and then to FCR Automotive Group, Inc. On September 20, 2004, the Company reincorporated in Delaware by merging into FCR Group, Inc., a Delaware Automotive corporation, which was organized on September 8, 2004. On July 26, 2005, the Company acquired Shinil Precision Co., Ltd., a Korean Company, as its operating business and on July 18, 2005, changed its name to Shinil Precision Machinery, Inc. to reflect its anticipated new business. Upon failure of certain terms and conditions of the acquisition agreement, the Company returned the shares of Shinil and recovered and cancelled the Company's shares issued in the acquisition. In 2012, the Company changed its domicile to Nevada.
The Company had been dormant since 1989, and consummated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary Leo Motors Co. Ltd. of Korea since that time.
On February 11, 2010, the Company acquired 50% of Leo B&T Corp., a South Korean corporation ("B&T"), from two shareholders of B&T in exchange for 7,000,000 shares of the Company's common stock. Our ownership in B&T was reduced to 30% in 2011. Additionally, this investment was written down as impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock.
On November 10, 2012, the Company signed an agreement withPDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company will have a 10% interest in the overall project. This project has incurred an impairment charge as details in these footnotes.
On July 1, 2014, the Company acquired all of the outstanding common stock of LGM Co. Ltd., a corporation incorporated in the Republic of Korea ("LGM"), from LGM's shareholders, which represents 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Upon closing of the Share Swap Agreement, LGM became a wholly-owned subsidiary of the Company.
On March 31, 2015, the Company acquired 50% interest in each of Leo Motors Factory, Inc. ("Leo Factory 1") and Leo Motors Factory 2, Inc. ("Leo Factory 2")which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired 50% interest in Leo Trading Inc.(formerly Erum Motors, Inc.) ("Leo Trade") specializing in the trading of luxury cars. These acquired entities will be presented on a consolidated basis as the parent company has significant control of the business through the Board of Directors which can decide decisions split on strictly on common share ownership percentages. |
NOTE 1 - COMPANY BACKGROUND
Leo Motors, Inc. (the "Company," or "we") is currently in development, assembly and sales of the energy storage devices and electric vehicle components.
The Company was originally incorporated in California as N. Org., Inc. on December 12, 1983. The Company then underwent several name changes from Natural Organics Corporation to Classic Auto Accessories of North America and then to FCR Automotive Group, Inc. On September 20, 2004, the Company reincorporatedinDelaware by merging into FCR Group, Inc.,aDelaware Automotive corporation,whichwasorganizedonSeptember8, 2004. On July26,2005,theCompany acquired Shinil Precision Co., Ltd., a Korean Company,asitsoperatingbusinessand on July 18, 2005, changed its name to ShinilPrecision Machinery, Inc. to reflect its anticipated new business. Upon failure of certain termsandconditionsofthe acquisition agreement, the Companyreturned the shares of Shinil and recovered and cancelled the Company's sharesissuedintheacquisition. In 2012, the Company changed its domicile to Nevada.
The Company had been dormant since 1989, and consummated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary Leo Motors Co. Ltd. of Korea since that time.
On February 11, 2010, the Company acquired 50% of Leo B&T Corp., a South Korean corporation ("B&T"), from two shareholders of B&T in exchange for 7,000,000 shares of the Company's common stock. Our ownership in B&T was reduced to 30% in 2011. Additionally, this investment was written down as impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock.
On November 10, 2012, the Company signed an agreement withPDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company will have a 10% interest in the overall project. This project has incurred an impairment charge as details in these footnotes.
On July 1, 2014, the Company acquired all of the outstanding common stock of LGM Co. Ltd., a corporation incorporated in the Republic of Korea ("LGM"), from LGM's shareholders, which represents 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Upon closing of the Share Swap Agreement, LGM became a wholly-owned subsidiary of the Company.
On March 31, 2015, the Company acquired 50% interest in each ofLeo Motors Factory, Inc. ("Leo Factory 1") and Leo Motors Factory 2, Inc. ("Leo Factory 2")which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired 50% interest in Leo Trading Inc.(formerly Erum Motors, Inc.) ("Leo Trade") specializing in the trading of luxury cars. These acquired entities will be presented on a consolidated basis as the parent company has significant control of the business through the Board of Directors which can decide decisions split on strictly on common share ownership percentages. |
Note 2 - Policies |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Notes | ||
Note 2 - Policies | POLICIES
This summary of significant account policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and the notes are the representation of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles ("USGAAP") and have been consistently applied in the preparation of the financial statements.
Basis of Presentation and Consolidation
These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, 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.
Fair Value of Financial Instruments
For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.
Revenue Recognition
The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements". In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.
The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.
Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.
Accounts Receivables
Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired. The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.
Receivables are not collateralized and do not bear interest.
Cash Equivalents
For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.
Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).
The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.
Intangible and Long Lived Assets
The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through March 31, 2016, the Company had not experienced impairment losses on its long-lived assets.
Income Taxes
The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year; and, (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.
Loss per Share
Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.
Stock-Based Compensation
SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.
Foreign Currency Translation And Comprehensive Income
The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company.
Recent Accounting Pronouncements
The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable. |
POLICIES
This summary of significant account policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and the notes are the representation of the
Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles ("USGAAP") and have been consistently applied in the preparation of the financial statements.
Basis of Presentation and Consolidation
These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, 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.
Fair Value of Financial Instruments
For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities.
Revenue Recognition
The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements". In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.
The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.
Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists.
Accounts Receivables
Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired. The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.
Receivables are not collateralized and do not bear interest.
Cash Equivalents
For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent.
Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).
The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.
Intangible and Long Lived Assets
The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2015, the Company had not experienced impairment losses on its long-lived assets.
Income Taxes
The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year; and, (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.
Loss per Share
Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period.
Stock-Based Compensation
SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model.
Foreign Currency Translation And Comprehensive Income
The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company .
Recent Accounting Pronouncements
The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable. |
Note 3 - Earnings Per Share |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 3 - Earnings Per Share | NOTE 3 - EARNINGS PER SHARE The Company reports basic and diluted earnings per share (EPS) according to the provisions of ASC Topic 260, which requires the presentation of basic EPS and, for companies with complex capital structures, diluted EPS. Basic EPS excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) available to common stockholders, adjusted by other changes in income or loss that would result from the assumed conversion of those potential common shares, by the weighted number of common shares and common share equivalents (unless their effect is antidilutive) outstanding. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be antidilutive. Thus, these equivalents are not included in the calculation of diluted loss per share, resulting in basic and diluted loss per share being equal. The following is a reconciliation of the computation for basic and diluted EPS for the three months ended March 31, 2016 and 2015:
|
NOTE 3 - EARNINGS PER SHARE
The Company reports basic and diluted earnings per share (EPS) according to the provisions of ASC Topic 260, which requires the presentation of basic EPS and, for companies with complex capital structures, diluted EPS. Basic EPS excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) available to common stockholders, adjusted by other changes in income or loss that would result from the assumed conversion of those potential common shares, by the weighted number of common shares and common share equivalents (unless their effect is antidilutive) outstanding. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be antidilutive. Thus, these equivalents are not included in the calculation of diluted loss per share, resulting in basic and diluted loss per share being equal. The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2015 and 2014:
|
Note 4 - Due To Related Party |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Notes | ||
Note 4 - Due To Related Party | NOTE 4 - DUE TO RELATED PARTY
The company is indebted to its officer for advances. Repayment is on demand without interest. The balance was $136,887 at March 31, 2016 and $140,396 at December 31, 2015. |
NOTE 4 - DUE TO RELATED PARTY
The company is indebted to its officer for advances. Repayment is on demand without interest. The balance was $140,396 at December 31, 2015 and $150,637 at December 31, 2014 |
Note 5 - Payments Received in Advance |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Notes | ||
Note 5 - Payments Received in Advance | NOTE 5 - PAYMENTS RECEIVED IN ADVANCE
The Company during the periods received payments from potential customers, or deposits, on future orders. The Company's policy is to record these payments as a liability until the product is completed and shipped to the customer at which the Company recognizes revenue. As of March 31, 2016 and December 31, 2015, the balance of payments received in advance was $382,545 and $ 279,229, respectively. |
NOTE 5 - PAYMENTS RECEIVED IN ADVANCE
The Company during the periods received payments from potential customers, or deposits, on future orders. The Company's policy is to record these payments as a liability until the product is completed and shipped to the customer at which the Company recognizes revenue. As of December 31, 2015 and December 31, 2014, the balance of payments received in advance was $279,229 and $ 306,969, respectively.
|
Note 6 - Going Concern |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Notes | ||
Note 6 - Going Concern | NOTE 6 - GOING CONCERN
As reported in the consolidated financial statements, the Company has accumulated deficits of and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales.
These factors create uncertainty about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot obtain adequate capital it could be forced to cease operations.
In order to continue as a going concern, develop and generate revenues and achieve a profitable level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the Company include (1) raising additional capital through sales of common stock, (2) converting promissory notes into common stock and (3) entering into acquisition agreements with profitable entities with significant operations. In addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management.
However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
NOTE 6 - GOING CONCERN
As reported in the consolidated financial statements, the Company has accumulated deficits of $25,404,609 as of December 31, 2015 and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales.
These factors create uncertainty about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot obtain adequate capital it could be forced to cease operations.
In order to continue as a going concern, develop and generate revenues and achieve a profitable level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the Company include (1) raising additional capital through sales of common stock, (2) converting promissory notes into common stock and (3) entering into acquisition agreements with profitable entities with significant operations. In addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management.
However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Note 7 - Commitments and Contingencies |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 7 - Commitments and Contingencies | NOTE 7 - COMMITMENTS AND CONTINGENCIES
(a) Lease Commitments
The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the period ending March 31, 2016 through December 31, 2018 are listed on the table below.
(b) Strategic Investment
On November 10, 2012, the Company and PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., signed a contract to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company had a commitment to raise $1,000,000 to fulfill its part of the contract for strategic investment. This investment was impaired in full as of December 31, 2014 as completion of the project looks doubtful. |
NOTE 7 - COMMITMENTS AND CONTINGENCIES
(a) Lease Commitments
The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the years ending December 31, 2015 through December 31, 2018 are listed on the table below.
(b) Strategic Investment
On November 10, 2012, the Company and PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., signed a contract to supply an independent solar power system grafted with the Company's E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company had a commitment to raise $1,000,000 to fulfill its part of the contract for strategic investment. This investment was impaired in full as of December 31, 2014 as completion of the project looks doubtful. |
Note 8 - Inventories |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||
Note 8 - Inventories | NOTE 8 - INVENTORIES
Inventories consist of the following:
279283
|
NOTE 8 - INVENTORIES
Inventories consist of the following:
|
Note 9 - Property and Equipment |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 9 - Property and Equipment | NOTE 9 - PROPERTY AND EQUIPMENT
Property and equipment consisted of the following:
Depreciation expense for the three months ended March 31, 2016 and 2015 amounted to $20,864 and $4,500, respectively. |
NOTE 9 - PROPERTY AND EQUIPMENT
Property and equipment consisted of the following:
Depreciation expense for the years ended December 31, 2015 and 2014 amounted to $207,837 and $19,470, respectively. |
Note 10 - Investments |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Notes | ||
Note 10 - Investments | NOTE 10 - INVESTMENTS
During 2012, the Company invested in a housing project in the Republic of the Congo which would use our E-Box power storage device. $270,000 had been invested. Their interest has been recorded using the cost investment of accounting for investments. During the year ended December 31, 2014, the completion of this project has come into question. Due to this and other factors the Company has impaired the investments in full with a charge off of $762,000. |
NOTE 10 - INVESTMENTS
During 2012, the Company invested in a housing project in the Republic of the Congo which would use our E-Box power storage device. $270,000 had been invested. Their interest has been recorded using the cost investment of accounting for investments. During the year ended December 31, 2014, the completion of this project has come into question. Due to this and other factors the Company has impaired the investments in full with a charge off of $762,000 . |
Note 11 - Short Term Borrowings and Notes Payable |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 11 - Short Term Borrowings and Notes Payable | NOTE 11 - SHORT TERM BORROWINGS AND NOTES PAYABLE
The Company continues to fund itself through borrowing and equity sales until sales return to historical levels.
At March 31, 2015, the Company had short term borrowings of $359,757. The notes are short term working capital advances that have been advanced to their Korean Subsidiary from various local parties. These advances are due on demand, interest free and unsecured.
As of March 31, 2016 the major components of our notes and borrowings consisted of the following:
|
NOTE 11 - SHORT TERM BORROWINGS AND NOTES PAYABLE
The Company continues to fund itself through borrowing and equity sales until sales return to historical levels.
At December 31, 2014, the Company had short term borrowings of $448,801. The notes are short term working capital advances that have been advanced to their Korean Subsidiary from various local parties. These advances are due on demand, interest free and unsecured.
Additionally the company borrowed $819,922 in short term convertible notes at a 4% interest rate. These funds were used to fund expansion of our LGM acquisition in 2014. The derivative components are detailed in footnote 15 and these loans were completely converted in February 2015 into 14,924,263 shares of our common stock.
As of December 31, 2015 the major components of our notes and borrowings consisted of the following:
|
Note 12 - Income Taxes |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||
Note 12 - Income Taxes | NOTE 12 - INCOME TAXES
The Company has experienced losses during most years since its inception. As a result, it has incurred no Federal income tax. The Internal Revenue Code allows net operating losses (NOL's) to be carried forward and applied against future profits for a period of twenty years; an NOL of $25,827,119 had accumulated at March 31, 2016 on U.S. operations and has been carried forward. The potential tax benefit of the NOL's has been recognized on the books of the Company, and is offset by a valuation allowance.
Under current accounting guidance, recognition of deferred tax assets is permitted unless it is more likely than not that the assets will not be realized. The Company has recorded deferred tax assets using statutory rates, as presented below. The valuation reserve increased by $155,766 during the quarter ended March 31, 2016.
The effective tax rate is as follows:
|
NOTE 12 - INCOME TAXES
The Company has experienced losses during most years since its inception. As a result, it has incurred no Federal income tax. The Internal Revenue Code allows net operating losses (NOL's) to be carried forward and applied against future profits for a period of twenty years; an NOL of $25,404,609 had accumulated at December 31, 2015 on U.S. operations and has been carried forward. The potential tax benefit of the NOL's has been recognized on the books of the Company, and is offset by a valuation allowance.
Under current accounting guidance, recognition of deferred tax assets is permitted unless it is more likely than not that the assets will not be realized. The Company has recorded deferred tax assets using statutory rates, as presented below. The valuation reserve increased by $1,376,115 during the year ended December 31, 2015.
The effective tax rate is as follows:
|
Note 13 - Intangible Assets |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||
Note 13 - Intangible Assets | NOTE 13 - INTANGIBLE ASSETS
The Company accounts for its long-lived assets in accordance with Accounting Standards Codification ("ASC") Topic 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value. The Company increased goodwill as a result of its first quarter acquisitions by $612,445 and also determined that none of its long-term assets at March 31, 2016 and December 31, 2015 were impaired.
|
NOTE 13 - INTANGIBLE ASSETS
The Company accounts for its long-lived assets in accordance with Accounting Standards Codification ("ASC") Topic 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value. The Company increased goodwill as a result of its first quarter acquisitions by $612,445 and also determined that none of its long-term assets at December 31, 2015 and December 31, 2014 were impaired.
|
Note 14 - Segment Information |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Notes | ||
Note 14 - Segment Information | NOTE 14 - SEGMENT INFORMATION ASC Topic 280 requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the three months ended March 31, 2016 and 2015, the Company operated in one reportable business segment: the sale and manufacture of specialized electric vehicle. The Company's reportable segment is a strategic business unit that offers its product. |
NOTE 14 - SEGMENT INFORMATION
ASC Topic 280 requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the years ended December 31, 2015 and 2014, the Company operated in one reportable business segment: the sale and manufacture of specialized electric vehicle. The Company's reportable segment is a strategic business unit that offers its product. |
Note 15 - Acquisitions |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 15 - Acquisitions | NOTE 15 - ACQUISITIONS
On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars. The consolidation of these acquisitions is presented below.
|
NOTE 16 - ACQUISITIONS
On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars. The consolidation of these acquisitions is presented below.
|
Note 15 - Derivative Liability |
12 Months Ended | |||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||
Note 15 - Derivative Liability | NOTE 15 DERIVATIVE LIABILITY
The Company accounts for derivative financial instruments in accordance with ASC 815, which requires that all derivative financial instruments be recorded in the balance sheets either as assets or liabilities at fair value.
The Company's derivative liability is an embedded derivative associated with one of the Company's convertible promissory notes. The convertible promissory note was issued on July 31, 2014, (the "Note"), is a hybrid instruments which contain an embedded derivative feature which would individually warrant separate accounting as a derivative instrument under Paragraph 815-10-05-4. The embedded derivative feature includes the conversion feature to the Note. Pursuant to Paragraph 815-10-05-4, the value of the embedded derivative liability have been bifurcated from the debt host contract and recorded as a derivative liability resulting in a reduction of the initial carrying amount (as unamortized discount) of the notes, which are amortized as debt discount to be presented in other (income) expenses in the statements of operations using the effective interest method over the life of the notes.
The embedded derivative within the note have been valued using the Black Scholes approach, recorded at fair value at the date of issuance; and marked-to-market at each reporting period end date with changes in fair value recorded in the Company's statements of operations as "change in the fair value of derivative instrument".
As of December 31, 2015 and December 31, 2014, the estimated fair value of derivative liability was determined to be $0 and $819,922, respectively. On July 31, 2014, the derivative liability was recognized with a debt discount of $825,529. During the year ended December 31, 2015, the loan was converted to common stock and the remaining unamortized debt discount of $275,176 was recorded against as a charge to interest expense.
Summary of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet:
Summary of the Changes in Fair Value of Level 3 Financial Liabilities
The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during year ended December 31, 2015.
|
Note 16 - Acquisitions |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 16 - Acquisitions | NOTE 15 - ACQUISITIONS
On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars. The consolidation of these acquisitions is presented below.
|
NOTE 16 - ACQUISITIONS
On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars. The consolidation of these acquisitions is presented below.
|
Earnings Per Share - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Earnings Per Share: | ||
Basic | 161,878,686 | 149,069,490 |
Note 2 - Policies (Policies) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Policies | ||
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation
These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation. |
Basis of Presentation and Consolidation
These financial statements and related notes are expressed in US dollars. The Company's fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, 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. |
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, 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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments
For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities. |
Fair Value of Financial Instruments
For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities. |
Revenue Recognition | Revenue Recognition
The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements". In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.
The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.
Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists. |
Revenue Recognition
The Company follows the guidance of the Securities and Exchange Commission's Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements". In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company.
The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers.
Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company's published brochures and price lists. |
Accounts Receivables | Accounts Receivables
Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired. The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.
Receivables are not collateralized and do not bear interest. |
Accounts Receivables
Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired. The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance.
Receivables are not collateralized and do not bear interest. |
Cash Equivalents | Cash Equivalents
For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent. |
Cash Equivalents
For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent. |
Fixed Assets | Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).
The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability. |
Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).
The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability. |
Intangible and Long Lived Assets | Intangible and Long Lived Assets
The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through March 31, 2016, the Company had not experienced impairment losses on its long-lived assets. |
Intangible and Long Lived Assets
The Company follows ASC 360-10, "Property, Plant, and Equipment," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2015, the Company had not experienced impairment losses on its long-lived assets. |
Income Taxes | Income Taxes
The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year; and, (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable. |
Income Taxes
The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, "Accounting for Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year; and, (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is "more likely than not" that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable. |
Loss Per Share | Loss per Share
Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period. |
Loss per Share
Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period. |
Stock-based Compensation | Stock-Based Compensation
SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model. |
Stock-Based Compensation
SFAS No. 123, "Accounting for Stock-Based Compensation," establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model. |
Foreign Currency Translation and Comprehensive Income | Foreign Currency Translation And Comprehensive Income
The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. |
Foreign Currency Translation And Comprehensive Income
The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company's operating subsidiary is Korean Won ("KRW"). The subsidiary's results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company |
Recent Accounting Pronouncements | Recent Accounting Pronouncements
The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable. |
Recent Accounting Pronouncements
The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable. |
Note 3 - Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of the computation for basic and diluted EPS for the three months ended March 31, 2016 and 2015:
|
The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2015 and 2014:
|
Note 7 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the period ending March 31, 2016 through December 31, 2018 are listed on the table below.
|
The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the years ending December 31, 2015 through December 31, 2018 are listed on the table below.
|
Note 8 - Inventories: Schedule of Inventories (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following:
|
Inventories consist of the following:
|
Note 9 - Property and Equipment: Property, Plant and Equipment (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property and equipment consisted of the following:
|
Property and equipment consisted of the following:
|
Note 11 - Short Term Borrowings and Notes Payable: Schedule of Short-term Debt (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt | As of March 31, 2016 the major components of our notes and borrowings consisted of the following:
|
|
Note 12 - Income Taxes: Schedule of Deferred Tax Assets (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||
Tables/Schedules | ||||||||||||||||||
Schedule of Deferred Tax Assets |
|
|
Note 12 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation |
The effective tax rate is as follows:
|
The effective tax rate is as follows:
|
Note 13 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) |
3 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | ||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets |
|
Note 15 - Acquisitions: Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities | The consolidation of these acquisitions is presented below.
|
The consolidation of these acquisitions is presented below.
|
Note 3 - Earnings Per Share (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of the computation for basic and diluted EPS for the three months ended March 31, 2016 and 2015:
|
The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2015 and 2014:
|
Note 7 - Commitments and Contingencies (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the period ending March 31, 2016 through December 31, 2018 are listed on the table below.
|
The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the years ending December 31, 2015 through December 31, 2018 are listed on the table below.
|
Note 8 - Inventories (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following:
|
Inventories consist of the following:
|
Note 9 - Property and Equipment (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property and equipment consisted of the following:
|
Property and equipment consisted of the following:
|
Note 11 - Short Term Borrowings and Notes Payable (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt | As of March 31, 2016 the major components of our notes and borrowings consisted of the following:
|
|
Note 12 - Income Taxes (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||
Schedule of Deferred Tax Assets |
|
|
||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation |
The effective tax rate is as follows:
|
The effective tax rate is as follows:
|
Note 13 - Intangible Assets (Tables) |
3 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | ||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets |
|
Note 15 - Acquisitions (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities | The consolidation of these acquisitions is presented below.
|
The consolidation of these acquisitions is presented below.
|
Note 15 - Derivative Liability (Tables) |
12 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet:
|
|||||||||||||||||||||||||
Assets and Liabilities, Changes in Fair Value, Recurring Basis | The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during year ended December 31, 2015.
|
Note 16 - Acquisitions (Tables) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities | The consolidation of these acquisitions is presented below.
|
The consolidation of these acquisitions is presented below.
|
Note 1 - Company Background (Details) - shares |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2010 |
Dec. 31, 2015 |
Dec. 31, 2011 |
|
Common Stock | ||||
Conversion of Stock, Shares Issued | 47,352,450 | 47,352,450 | ||
PDI | Housing Project In The Republic Of The Congo | ||||
Long Term Investment Percentage Of Investment Owned | 10.00% | 10.00% | ||
Leo BT Corp | ||||
Noncash or Part Noncash Acquisition, Interest Acquired | 50.00% | |||
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued | 7,000,000 | |||
Equity Method Investment, Ownership Percentage | 30.00% | |||
LGM Co. Ltd | ||||
Conversion of Stock, Shares Converted | 813,747 | 813,747 | ||
Leo Motors Factory 1 | ||||
Noncash or Part Noncash Acquisition, Interest Acquired | 50.00% | 50.00% | ||
Leo Trade | ||||
Noncash or Part Noncash Acquisition, Interest Acquired | 50.00% | 50.00% |
Note 3 - Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Details | ||||
Net Income (Loss) | $ (458,166) | $ (595,418) | $ (4,490,972) | $ (4,480,544) |
Weighted-average common stock Outstanding - basic | 161,878,686 | 149,069,490 | 155,866,313 | 97,393,209 |
Equivalents | ||||
Stock options | 0 | 0 | 0 | 0 |
Warrants | 0 | 0 | 0 | 0 |
Convertible Notes | 0 | 902,520 | 0 | 662,889 |
Weighted-average common shares outstanding - Diluted | 161,878,686 | 149,972,010 | 155,866,313 | 98,056,098 |
Note 4 - Due To Related Party (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Due to related parties | $ 136,887 | $ 140,396 | $ 116,617 | $ 150,637 |
Officer | ||||
Due to related parties | $ 136,887 | $ 140,396 | $ 150,637 |
Note 5 - Payments Received in Advance (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Details | ||||
Prepayment to suppliers | $ 382,545 | $ 279,229 | $ 297,720 | $ 306,969 |
Note 7 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Details | ||
2016 | $ 165,620 | $ 220,827 |
2017 | 101,249 | 101,249 |
2018 and beyond | 0 | 0 |
Total Commitment | $ 266,869 | $ 322,076 |
Note 7 - Commitments and Contingencies (Details) |
Nov. 10, 2012
USD ($)
|
---|---|
Housing Project In The Republic Of The Congo | PDI | |
Contractual Obligation | $ 1,000,000 |
Note 8 - Inventories: Schedule of Inventories (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Details | ||||
Raw material | $ 0 | $ 0 | $ 0 | |
Work in process | 838,785 | 496,971 | 279,783 | |
Finished goods | 0 | 0 | 0 | |
Inventories | $ 838,785 | $ 496,971 | $ 295,159 | $ 279,783 |
Note 9 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Total property and equipment | $ 561,988 | $ 561,988 | $ 258,416 | |
Accumulated depreciation | (419,851) | (398,987) | (219,796) | |
Property and equipment, net | 142,137 | 163,001 | $ 185,984 | 38,620 |
Tools | ||||
Total property and equipment | 95,771 | 95,771 | 12,906 | |
Office | ||||
Total property and equipment | 109,447 | 109,447 | 79,963 | |
Facility Equipment | ||||
Total property and equipment | 210,502 | 210,502 | 157,966 | |
Vehicles | ||||
Total property and equipment | $ 146,268 | $ 146,268 | $ 7,581 |
Note 9 - Property and Equipment (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Details | ||||
Depreciation | $ 20,864 | $ 4,500 | $ 207,837 | $ 19,470 |
Note 10 - Investments (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2012 |
|
Impairment of investment | $ 0 | $ 762,000 | |
Housing Project In The Republic Of The Congo | PDI | |||
Long-term Investments | $ 270,000 | $ 270,000 |
Note 11 - Short Term Borrowings and Notes Payable (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Short term borrowings | $ 0 | $ 471,689 | $ 7,661 | $ 448,801 |
Conversion of derivative liability | $ 0 | 819,922 | 819,922 | $ 569,584 |
Note 1 | ||||
Short term borrowings | $ 359,757 | 448,801 | ||
Note2Member | ||||
Conversion of derivative liability | $ 819,922 | |||
Note2Member | Common Stock | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||
Debt Conversion, Converted Instrument, Shares Issued | 14,924,263 |
Note 11 - Short Term Borrowings and Notes Payable: Schedule of Short-term Debt (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Notes Payable | $ 359,757 | $ 323,043 | ||
Notes Payable current portion | 264,158 | 49,397 | $ 353,747 | $ 526,257 |
Notes payable long term | $ 95,599 | $ 273,646 | $ 327,701 | $ 145,316 |
Note 3 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | 3.65% | ||
Notes Payable to Bank | $ 62,883 | $ 45,505 | ||
Note 4 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.24% | 6.24% | ||
Notes Payable to Bank | $ 76,479 | $ 75,775 | ||
Note 6 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.28% | 3.28% | ||
Notes Payable to Bank | $ 84,977 | $ 85,245 | ||
Note 7 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.83% | 3.83% | ||
Notes Payable to Bank | $ 127,465 | $ 35,718 | ||
Note 8 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | ||
Notes Payable to Bank | $ 7,954 | $ 34,000 | ||
Note5Member | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.64% | |||
Notes Payable to Bank | $ 46,800 |
Note 12 - Income Taxes (Details) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Details | ||
Operating Loss Carryforwards | $ 25,827,119 | $ 25,404,609 |
Valuation reserve increase | $ 155,766 | $ 1,376,115 |
Note 12 - Income Taxes: Schedule of Deferred Tax Assets (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Details | ||
Deferred Tax Assets | $ 8,781,220 | $ 8,637,567 |
Realization Allowance | (8,781,220) | (8,637,567) |
Balance Recognized | $ 0 | $ 0 |
Note 12 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Details | ||
Statutory Federal Rate | 34.00% | 34.00% |
Effect of Valuation Allowance | (34.00%) | (34.00%) |
Effective Rate | 0.00% | 0.00% |
Note 13 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Details | |||
Patents | $ 86,998 | $ 63,554 | $ 63,554 |
Trademarks | 277 | 277 | 277 |
Goodwill | 3,057,003 | 3,057,003 | 2,444,558 |
Intangible assets | 3,144,278 | 3,120,834 | 2,508,389 |
Less: impairments | 0 | 0 | 0 |
Intangible assets, net | $ 3,144,278 | $ 3,120,834 | $ 2,508,389 |
Note 15 - Acquisitions (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Leo Motors Factory 1 | ||
Noncash or Part Noncash Acquisition, Interest Acquired | 50.00% | 50.00% |
Leo Trade | ||
Noncash or Part Noncash Acquisition, Interest Acquired | 50.00% | 50.00% |
Note 6 - Going Concern (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Details | ||||
Accumulated loss | $ (25,827,119) | $ (25,404,609) | $ (21,883,963) | $ (21,357,211) |
Note 13 - Intangible Assets (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Details | |||
Patents | $ 86,998 | $ 63,554 | $ 63,554 |
Trademarks | 277 | 277 | 277 |
Goodwill | 3,057,003 | 3,057,003 | 2,444,558 |
Intangible assets | 3,144,278 | 3,120,834 | 2,508,389 |
Less: impairments | 0 | 0 | 0 |
Intangible assets, net | $ 3,144,278 | $ 3,120,834 | $ 2,508,389 |
Note 15 - Derivative Liability (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Jul. 31, 2014 |
|
Amortization debt discount | $ 0 | $ 275,176 | $ 275,176 | $ 340,568 | |
Derivative Financial Instruments, Liabilities | |||||
Liabilities, Fair Value Disclosure, Recurring | $ 0 | $ 819,922 | |||
Debt Discount | $ 825,529 |
Note 15 - Derivative Liability: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Derivative Financial Instruments, Liabilities - USD ($) |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Liabilities, Fair Value Disclosure, Recurring | $ 0 | $ 819,922 |
Fair Value, Inputs, Level 1 | ||
Liabilities, Fair Value Disclosure, Recurring | 0 | |
Fair Value, Inputs, Level 2 | ||
Liabilities, Fair Value Disclosure, Recurring | 0 | |
Fair Value, Inputs, Level 3 | ||
Liabilities, Fair Value Disclosure, Recurring | $ 0 |
Note 15 - Derivative Liability: Assets and Liabilities, Changes in Fair Value, Recurring Basis (Details) |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Details | |
Derivative Liability, Fair value, Beginning Balance | $ 819,922 |
Additions | 0 |
Change in fair value | 0 |
Transfers in and/or out of Level 3 | (819,922) |
Derivative Liability, Fair value, Ending Balance | $ 0 |
Note 16 - Acquisitions (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Leo Motors Factory 1 | ||
Noncash or Part Noncash Acquisition, Interest Acquired | 50.00% | 50.00% |
Leo Trade | ||
Noncash or Part Noncash Acquisition, Interest Acquired | 50.00% | 50.00% |
M(XE%&HO %83!;*U/4<7_J ?CR&D<+8UGL^0]@B>SA'#XS*R7)$).LGB&?+"/
MG?;QTG[VU.3Q8J8 A\$FB8/Y\^4@XV03)1A&,WL'&28810ABMSUVVN.E?3BS
MQT_;.\@/[!WD!_9@\GZWY$)_$'&I&ND=N-)'A7VASYPKJJO"E=Z44A_Y8X?1
MLS+-M6Z+_A3L.XJW]S-]_&/)_@)02P,$% @ #XK*2(N5,'?0! ,!<
M !@ !X;"]W;W)K \M4VS DJT]I@PP!54-.!F30$
M3$R3Q;O^F7,.37LG)WD*C#TTAD3AR#%G)&>='"I&7A:!DT5\F =&[IK(>2L&
MAE+@I02XLPV>+8!*290M'X_' R\I>"%1C) /L\J*B3Q#!ZLPHU_>O66[9B\
MI7\GY=O^4(U>B[HN\O:UVK8HZC0N*K[%C;9+D\WE(DNW=?/3Q=_E^?7H^:(N
MCI]O>R^OG.?_ U!+ P04 " /BLI(K]Y F]0& #%(P & 'AL+W=O
M+CL:3&4<>G
MNHFN[_.)Q:E\I%?EP#OXP4TGM"47='ZV<0(MH@,O);T[)*3W/VAU)+0NF _>
M-O.CFAV'P^V+K/^T^@M02P,$% @ #XK*2"!X#*NY 0 3 0 !D !X
M;"]W;W)K&PO=V]R
M:W-H965T
1]HZ 8\$/!'"^+^$:"1$GR7$(R'^+"$9
M"
K(CN)Q11KV,5A$<@JQD$\)Q5#@.A6,OZT\X
MF AB!/T5MH[ BAP S]XS#GXWI(11[+D+H^6T0"#NC42]D8BWB;581 ,4,]9B
M$>ADI"S]G,Y"52$*(@8F\EE&)9<1SR@>@$8#T!F>::@3,(S]!3$/5H6PDK$B
MCXMF4=$LXGHB@#UQ8B44S/ ]@FZE(@@(""KI/%P5P4%B-O!$QN%$]8<1]W@B
M1+SHPCE5%X:%$N("%7[9G8FK(KB24'^#9C>'X)'OQ7?>[^M.):]2F_/4G7H[
M*;4P$<V?$',GW!VT'HL4LNO*V>2FK)E=54,O=//R&'I\PMI 6\3N7
MYV9P'ECQKTJ]V8N?VWD86PVRD!MM2V3F\"Y7LBAL)3/SW[[HYYR6.#R_5/_>
MMFODOV:-7*GB3[[5!Z,V#H.MW&6G0K^H\P_9]\!LP8TJFO8WV)P:K