0001391609-15-000120.txt : 20150514 0001391609-15-000120.hdr.sgml : 20150514 20150514164700 ACCESSION NUMBER: 0001391609-15-000120 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20150331 FILED AS OF DATE: 20150514 DATE AS OF CHANGE: 20150514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Start Scientific, Inc. CENTRAL INDEX KEY: 0001368761 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 204910418 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-52227 FILM NUMBER: 15863591 BUSINESS ADDRESS: STREET 1: 515 CONGRESS AVENUE, SUITE 2060 CITY: AUSTIN STATE: TX ZIP: 78701 BUSINESS PHONE: 801-816-2570 MAIL ADDRESS: STREET 1: 515 CONGRESS AVENUE, SUITE 2060 CITY: AUSTIN STATE: TX ZIP: 78701 FORMER COMPANY: FORMER CONFORMED NAME: Secure Netwerks, Inc. DATE OF NAME CHANGE: 20060712 10-Q 1 f10q_stsc33115.htm FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

______________________

 

FORM 10-Q

 

[ X ] Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarter ended March 31, 2015

 

OR

 

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from __________ to ___________

 

Commission file number: 000-52227

 

START SCIENTIFIC, INC.

(Name of Small Business Issuer in Its Charter)

 

Delaware   20-4910418

(State or Other Jurisdiction

of Incorporation or Organization)

 

(IRS Employer

Identification No.)

     
2003 My Anns Hill    
San Antonio, TX   78258
(Address of Principal Executive Offices)   (Zip Code)

 

 

 

  (210) 758-5898  
  Issuer’s Telephone Number, Including Area Code  
     

 

(Former name or former address and former fiscal year, if changed since last report.)

 

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

 

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

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):

 

Large Accelerated Filer [  ] Non-Accelerated Filer [  ]
Accelerated Filer [  ] Smaller reporting company [X]

 

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

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

 

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Exchange Act of 1934 after the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ]

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date. As of May 8, 2015, the Company had outstanding 131,665,000 shares of common stock.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART I

 

FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS REQUIRED BY FORM 10-Q

 

The Financial Statements of the Company are prepared as of March 31, 2015.

 

 

 

CONTENTS

 

Balance Sheets (Unaudited)

 

4
Statements of Operations (Unaudited)

 

5
Statements of Cash Flows (Unaudited)

 

6
Notes to the Financial Statements (Unaudited)

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

START SCIENTIFIC, INC.
(An Exploration Stage Company)
Balance Sheets
       
ASSETS
   March 31,  December 31,
   2015  2014
   (Unaudited)   
       
CURRENT ASSETS          
           
Cash and cash equivalents  $5,431   $452 
           
Total Current Assets   5,431    452 
           
TOTAL ASSETS  $5,431   $452 
           
LIABILITIES AND STOCKHOLDERS' DEFICIT          
           
CURRENT LIABILITIES          
           
Accounts payable  $28,997   $12,120 
Accrued expenses   621,069    652,986 
Accounts payable and accrued liabilities - related parties   603,563    604,829 
Convertible debenture/notes payable (net of discount of $125,973 and $-0-, respectively)   14,527    —   
Notes payable   547,860    547,860 
Notes payable - related parties   109,330    131,830 
Derivative liability   269,930    —   
           
Total Current Liabilities   2,195,276    1,949,625 
           
TOTAL LIABILITIES   2,195,276    1,949,625 
           
STOCKHOLDERS' DEFICIT          
           
Preferred stock, $0.0001 par value; 100 shares authorized,          
 100 and -0- issued and outstanding, respectively   —      —   
Common stock, $0.0001 par value; 500,000,000 shares authorized,          
 131,665,000 and 125,665,000 shares issued and outstanding, respectively   13,167    12,567 
Additional paid-in-capital   13,669,297    12,619,897 
Accumulated deficit   (15,872,309)   (14,581,637)
           
Total Stockholders' Deficit   (2,189,845)   (1,949,173)
           
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT  $5,431   $452 
           
The accompanying notes are an integral part of these financial statements

 

 

 

 

 

 

 

 

START SCIENTIFIC, INC.
Statements of Operations
(Unaudited)
       
   For the Three Months Ended
   March 31,
   2015  2014
       
NET REVENUES  $—     $—   
           
OPERATING EXPENSES          
           
Salaries and consulting   1,050,000    977,500 
Professional fees   76,557    47,588 
Other selling, general and administrative   824    70 
           
Total Operating Expenses   1,127,381    1,025,158 
           
LOSS FROM OPERATIONS   (1,127,381)   (1,025,158)
           
OTHER INCOME (EXPENSES)          
           
Loss on change in fair value of derivative liability   (44,456)   —   
Interest expense (including amortization of debt discount of $14,527 and $-0-, respectively)   (118,835)   (18,241)
           
Total Other Income (Expenses)   (163,291)   (18,241)
           
LOSS BEFORE INCOME TAXES   (1,290,672)   (1,043,399)
           
INCOME TAX EXPENSE   —      —   
           
NET LOSS  $(1,290,672)  $(1,043,399)
           
BASIC AND DILUTED:          
Net loss per common share  $(0.01)  $(0.01)
           
Weighted average shares outstanding   128,787,222    109,876,111 
           
The accompanying notes are an integral part of these financial statements

 

 

 

 

 

 

 

 

 

 

 

START SCIENTIFIC, INC.
Statements of Cash Flows
(Unaudited)
       
   For the Three Months Ended
   March 31,
   2015  2014
       
CASH FLOWS FROM OPERATING ACTIVITIES:          
           
Net loss  $(1,290,672)  $(1,043,399)
Adjustments to reconcile net loss to net          
 cash used by operating activities:          
Stock based compensation   1,050,000    965,000 
Expenses paid by related party   —      2,694 
Non-cash interest expenses   84,974      
Change in fair value of derivative liability   44,456    —   
Amortization of debt discounts   14,527    —   
Changes in operating assets and liabilities:          
Accounts payable and accrued liabilities - related parties   (1,266)   76,418 
Accounts payable and accrued expenses   (15,040)   (9,780)
           
Net Cash Used by Operating Activities   (113,021)   (9,067)
           
CASH FLOWS FROM INVESTING ACTIVITIES:   —      —   
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
           
Proceeds from convertible debentures   140,500    —   
Proceeds from notes payable - related parties   —      550 
Payments on notes payable - related parties   (22,500)   —   
           
Net Cash Provided by Financing Activities   118,000    550 
           
NET INCREASE (DECREASE) IN CASH          
AND CASH EQUIVALENTS  $4,979   $(8,517)
           
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   452    8,799 
           
CASH AND CASH EQUIVALENTS, END OF PERIOD  $5,431   $282 
           
SUPPLEMENTAL CASH FLOW INFORMATION          
           
Cash Payments For:          
Interest  $614   $2,390 
Income taxes  $—     $—   
           
Non-cash financing activity:          
Common stock issued for services  $1,050,000   $965,000 
           
The accompanying notes are an integral part of these financial statements

 

 

START SCIENTIFIC, INC.

Notes to the Financial Statements

March 31, 2015

(Unaudited)

 

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

 

The accompanying unaudited financial statements have been prepared by Start Scientific, Inc. (the "Company") pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim financial statements be read in conjunction with the Company’s audited financial statements and notes thereto included in its Form 10-K for the year ended December 31, 2014. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015.

 

NOTE 2 - GOING CONCERN CONSIDERATIONS

 

The accompanying condensed financial statements have been prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As reported in its Annual Report on Form 10-K for the year ended December 31, 2014, the Company has incurred operating losses of $14,581,637 from inception of the Company through December 31, 2014. The Company’s accumulated deficit at March 31, 2015 was $15,872,309 and had a working capital deficit, continued losses, and negative cash flows from operations. These factors combined, raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to address and alleviate these concerns are as follows:

 

The Company’s management continues to develop a strategy of exploring all options available to it so that it can develop successful operations and have sufficient funds, therefore, as to be able to operate over the next twelve months. The Company is attempting to improve these conditions by way of financial assistance through issuances of additional equity and by generating revenues through sales of products and services. No assurance can be given that funds will be available, or, if available, that it will be on terms deemed satisfactory to management. 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 attain profitable operations. The accompanying condensed financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of these uncertainties.

 

NOTE 3 - STOCK BASED COMPENSATION

 

During the three months ended March 31, 2015, the Company issued a total of 6,000,000 shares of common stock for consulting services rendered to the Company. The stock was valued at the market price on the date of issuance which totaled $1,050,000. This amount is included in salaries and consulting expenses on the statement of operations.

 

 

START SCIENTIFIC, INC.

Notes to the Financial Statements

March 31, 2015

(Unaudited)

 

NOTE 4 - RELATED PARTY TRANSACTIONS

 

During the three months ended March 31, 2015, the Company made payments on notes payable to related parties in the amount of $22,500. Also, accounts payable and accrued liabilities to related parties decreased by $1,266.

 

NOTE 5 - CONVERTIBLE NOTES PAYABLE

 

On February 10, 2015, the Company issued a promissory note in the original principal amount of $33,000 to a lender. The Note matures on November 12, 2015 and carries an interest rate of 8% per annum. The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 45% discount to the average of the three lowest daily trading prices as reported on the OTCQB for the twelve trading days previous to the conversion date.

 

On February 25, 2015, the Company issued a promissory note in the original principal amount of $52,500 to a lender. The Note matures on February 25, 2016 and carries an interest rate of 8% per annum. The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 40% discount to the lowest trading price as reported on the OTCQB for the fifteen trading days previous to the conversion date.

 

On March 6, 2015, the Company entered into a Note Purchase Agreement in respect of a credit line and associated convertible debenture in the original principal amount up to $220,000. As of March 6, 2015, the Company recorded a $55,000 draw down and consideration in respect of the credit line. The Debenture matures on March 6, 2016 and bears interest at the rate of 10% per annum. The Debenture, together with all interest as accrued, is convertible into shares of the Company’s common stock at a price equal to the lower of $.10 or 58% of the lowest trading price of the Company’s common stock during the 20 previous consecutive trading days. The Note Purchase and the Debenture contain representations, warranties, conditions, restrictions, and covenants of the Company that are customary in such transactions with smaller companies.

 

NOTE 6 - DERIVATIVE LIABILITY

 

Due to the convertible notes described in Note 5 above, it was determined at March 31, 2015 that there was a derivative liability associated with these notes. The amount of the derivative liability at March 31, 2015 was $269,930, which is reported on the balance sheet. The Company also recorded a loss on the change in the fair value of the derivative liability of $44,456 on the statement of operations for the three months ended March 31, 2015.

 

NOTE 7 - SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events for the period of March 31, 2015 through the date the financial statements were issued, and concluded there were no events or transactions occurring during this period that required recognition or disclosure in its financial statements.

 

 

 

 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

You should read the following discussion of the company's financial condition and results of operations in conjunction with the audited financial statements and related notes included in the filing of the company’s latest annual 10-K. This discussion may contain forward-looking statements, including, without limitation, statements regarding our expectations, beliefs, intentions, or future strategies that are signified by the words "expects," "anticipates," "intends," "believes," or similar language. Actual results could differ materially from those projected in the forward looking statements. We caution you that Start Scientific’ business and financial performance is subject to substantial risks and uncertainties.

 

Overview

 

Prior to April 2012, we were a reseller of technology-related hardware and software, including laptops, desktops, networking devices, telecommunication systems and networks, servers and software. In April, 2012 in connection with the acquisition of two separate one-fourth (1/4) working interests in certain oil and gas leases located in Yazoo County, Mississippi, our principal business became the exploration, development, and production of oil and gas interests.

 

On May 16, 2012, the Company entered into an agreement to acquire all of the outstanding shares of Carpathian Energy SRL (“Carpathian”), in exchange for 90,000,000 shares of restricted common stock of the Company. Carpathian is a Romanian limited liability company engaged in oil and gas exploration and development. Pursuant to the terms of agreement, the current owners of Carpathian may rescind the Acquisition and reclaim the shares of Carpathian in the event that the Company does not invest at least $5 million toward development of Carpathian’s oil and gas assets within 60 days from the date of the agreement. In addition, since the acquisition is being acquired with shares issued to an entity under common control, the assets were recorded at a nominal historical cost in accordance with ASC Topic 805-50-05-4. As of March 31, 2014, the Company has issued 90,000,000 shares to the current owners of Carpathian but the acquisition has not closed and the ownership of Carpathian has not yet been transferred to the Company. Thus the issued shares are considered to be a prepaid deposit with a zero value.

 

Results of Operations

 

Following is our discussion of the relevant items affecting results of operations for the periods ended March 31, 2015 and 2014.

 

Revenues. The Company generated net revenues of $-0- for the three month periods ended March 31, 2015 and 2014. The lack of revenues is mainly the result of the change in our business model from a reseller of computer hardware and software to an oil and gas exploration and development company.

 

Salaries and Consulting Expenses. Salaries and consulting expenses consist of salaries and benefits, company paid payroll taxes and outside consulting expenses. Salaries and consulting expenses for the three months ended March 31, 2015 were $1,050,000 compared to $977,500 during the three months ended March 31, 2014. For the three months ended March 31, 2015, stock valued at $1,050,000 was issued for consulting services compared to stock valued at $965,000 during the three months ended March 31, 2014. The stock was valued at the market price on the date of issuance. We anticipate salaries expenses to increase in the future as our activity increases.

 

Professional Fees. Professional fees consist of legal and accounting fees associated with the preparation, audits and reviews of the Company’s financial statements. Professional fees for the three months ended March 31, 2015 were $76,557 compared to $47,588 during the three months ended March 31, 2014. We anticipate that professional fees will increase in the future as we more fully develop our oil and gas business.

 

 

Selling, General and Administrative Expenses. Selling, general and administrative expenses have been comprised of advertising; occupancy and office expenses; travel and other miscellaneous administrative expenses. Selling, general and administrative expenses for the three months ended March 31, 2015 were $824 compared to $70 during the three months ended March 31, 2014. We expect selling, general and administrative expenses to increase in the future.

 

Other Income (Expense). Other income and expenses for the three months ended March 31, 2015 resulted in net other expense of $163,291 compared to $18,241 during the three months ended March 31, 2014. Other expenses incurred were comprised primarily of interest expenses related to the promissory notes and other liabilities of the Company in the amount of $118,835 which includes the amortization of debt discount of $14,527 during the three months ended March 31, 2015. Also included in this category is the loss on the change in fair value of derivative liability in the amount of $44,456 during the three months ended March 31, 2015. We do not anticipate any major changes in other income and expenses in the near future.

 

Off-Balance Sheet Arrangements

 

The Company has no off-balance sheet arrangements.

 

Personnel

 

Start Scientific has two full-time employees, and other project-based contract personnel that we utilize to carry out our business. We utilize contract personnel on a continuous basis, primarily in connection with service contracts which require a high level of specialization for one or more of the service components offered. We expect to hire full-time employees in the future.

 

Liquidity and Capital Resources

 

Since inception, the Company has financed its operations through a series of loans, credit accounts with hardware vendors, and the use of Company credit to procure goods and services. As of March 31, 2015, our primary source of liquidity consisted of $5,431 in cash and cash equivalents. We may seek to secure additional debt or equity capital to finance substantial business development initiatives or acquire additional oil and gas resources.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a smaller reporting company we are not required to provide this information.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Management’s Report on Disclosure Controls and Procedures

 

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a Company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely

 

decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.

 

As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, the chief executive officer and chief financial officer concluded that the disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in the Company’s periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified. The Company’s chief executive officer and chief financial officer also concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.

 

Changes in Internal Control over Financial Reporting

 

There have been no significant changes in our internal controls over financial reporting that occurred during the first quarter ended March 31, 2015 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART II

 

OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None

 

ITEM 1A. RISK FACTORS

 

As a smaller reporting company, we are not required to provide the information required by this item.

 

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

 

On February 29, 2012, in exchange for $100,000, the Company issued 200,000 shares of restricted common stock and a promissory note in the original principal amount of $100,000 (“Note”) to an investor. The Note matures on August 27, 2012 and carries a fixed interest payment at maturity of $25,000.

 

On March 1, 2012, the Company accepted the subscription of an investor for $300,000 in exchange for 1,200,000 shares of restricted common stock.

 

On April 2, 2012, the Company entered into an agreement to acquire two separate one-fourth (1/4) working interests (collectively, the “Working Interests”) in certain oil and gas leases covering the Board of Education No. 6 Well located in Yazoo County, Mississippi. The consideration granted by the Company in exchange for the Working Interests consisted of 10,000,000 shares of restricted common stock.

 

On May 4, 2012, pursuant to the Company’s 2012 Equity Incentive Plan (the "Plan") which Plan is attached as an exhibit to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 9, 2012, the Board approved the grant of 10,500,000 common stock purchase options to five individuals at a weighted average exercise price of $0.65 per share.

 

On May 16, 2012, the Company entered into an agreement to acquire all of the outstanding shares of Carpathian Energy SRL in exchange for 90,000,000 shares of restricted common stock of the Company. Carpathian is a Romanian limited liability company engaged in oil & gas exploration and development. Pursuant to the terms of the agreement, the former owners of Carpathian may rescind the Acquisition and reclaim the shares of Carpathian in the event that the Company does not invest at least $5 million toward development of Carpathian’s oil and gas assets. As of March 31, 2013, the conditions of the agreement had not been met; therefore, due to the potential rescinding of the agreement, the acquisition has not been recorded on the financial statements herein.

 

On June 12, 2012, the Company entered into a consulting agreement. Pursuant to the terms of the Agreement the Company issued 500,000 restricted shares of its common stock.

 

On June 27, 2012, the Company entered into a consulting agreement. Pursuant to the terms of the Agreement the Company issued 65,000 restricted shares of its common stock.

 

On July 13, 2012, in exchange for $100,000, the Company issued a promissory note in the original principal amount of $100,000 (“Note”) to a lender. The Note matures and is due and payable in full on July 13, 2013 and carries an interest rate of 6% per annum. 

 

 

On August 1, 2012, pursuant to the Company’s 2012 Equity Incentive Plan, the Company issued 5,000,000 shares of common stock of the Company to an officer of the Company for services pertaining to business development.

 

On August 15, 2012, the Company amended that certain consulting agreement. Pursuant to the terms of the Addendum Agreement the Company issued an additional 500,000 restricted shares of its common stock.

 

On August 31, 2012, in exchange for $100,000, the Company issued a promissory note in the original principal amount of $100,000 (“Note”) to a lender. The Note matures on August 30, 2013 and carries an interest rate of 8% per annum payable on a quarterly basis.  The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of Common Stock of the Company at a conversion price equal to $0.25 per share of Common Stock.

 

On September 7, 2012, in exchange for $200,000, the Company issued a promissory note in the original principal amount of $200,000 (“Note”) to a lender. The Note matures on September 6, 2013 and carries an interest rate of 8% per annum payable on a quarterly basis.  The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of Common Stock of the Company at a conversion price equal to $0.25 per share of Common Stock.

 

On September 25, 2012, the Company entered into a consulting agreement. Pursuant to the terms of the Agreement the Company issued 1,200,000 restricted shares of its common stock.

 

On January 29, 2014, pursuant to a consulting agreement entered into on July 23, 2013, the Company issued 1,000,000 restricted shares of its common stock.

 

On April 7, 2014, pursuant to a consulting agreement entered into on July 23, 2013, the Company issued 500,000 restricted shares of its common stock.

 

On July 28, 2014, pursuant to the Company’s 2012 Equity Incentive Plan, the Board approved the issuance of an aggregate of 15,000,000 shares of the Company’s common stock to certain directors and consultants of the Company.

 

On February 10, 2015, the Company issued a promissory note in the original principal amount of $33,000 (“Note”) to a lender. The Note matures on November 12, 2015 and carries an interest rate of 8% per annum. The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 45% discount to the average of the three lowest daily trading prices as reported on the OTCQB for the twelve trading days previous to the conversion date.

 

On February 25, 2015, the Company issued a promissory note in the original principal amount of $52,500 (“Note”) to a lender. The Note matures on February 25, 2016 and carries an interest rate of 8% per annum. The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 40% discount to the lowest trading price as reported on the OTCQB for the fifteen trading days previous to the conversion date.

 

 

On March 6, 2015, the Company entered into a Note Purchase Agreement (the “Note Purchase”) in respect of a credit line and associated convertible debenture (“Debenture”) in the original principal amount up to $220,000. As of March 6, 2015, the Company recorded a $55,000 draw down and consideration in respect of the credit line. The Debenture matures on March 6, 2016 (the “Maturity Date”), and bears interest at the rate of 10% per annum. The Debenture, together with all interest as accrued, is convertible into shares of the Company’s common stock at a price equal to the lower of $.10 or 58% of the lowest trading price of the Company’s common stock during the 20 previous consecutive trading days. The Note Purchase and the Debenture contain representations, warranties, conditions, restrictions, and covenants of the Company that are customary in such transactions with smaller companies.

 

On April 29, 2015, the Company issued a promissory note in the original principal amount of $53,500 (“Note”) to a lender. The Note matures on April 29, 2016 and carries an interest rate of 10% per annum. The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 45% discount to the lowest trading price as reported on the OTCQB for the fifteen trading days previous to the conversion date.

 

With respect to the securities issuances described above, No solicitations were made and no underwriting discounts were given or paid in connection with these transactions. The Company believes that the issuance of these securities as described above were exempt from registration with the Securities and Exchange Commission pursuant to Section 4(2) of the Securities Act of 1933.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. OTHER INFORMATION

 

Not applicable.

 

 

ITEM 5. EXHIBITS:

 

The following documents are filed as exhibits to this Form 10-Q:

 

INDEX TO EXHIBITS

 

 

Exhibit

Number

 

 

Title of Document

3.1  

Certificate of Incorporation of Start Scientific, Inc., a Delaware corporation.(1)

 

3.2  

Bylaws of Start Scientific, Inc., a Delaware corporation.(2)

 

31.1   Certification by Chief Financial Officer, Norris R. Harris, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2   Certification by Chief Executive Officer, Norris R. Harris, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1   Certification by Chief Financial Officer, Norris R. Harris, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2   Certification by Chief Executive Officer, Norris R. Harris, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

(1)Filed as an Exhibit to the Company’s Current Report on Form 8-k filed on November 23, 2011.
(2)Filed as an Exhibit to the Company’s Registration Statement on Form 10 SB12G, deemed effective by the Commission on January 17, 2007.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIGNATURES

 

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

 

 

    START SCIENTIFIC, INC.
     
Date:  May 14, 2015   BY: /s/ Norris R. Harris
    Norris R. Harris
    Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EX-31.1 2 ex31_1302certification.htm 302 CERTIFICATION

Exhibit 31.1

 

CERTIFICATION

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Norris R. Harris of Start Scientific, Inc. (the “Company”), certify that:

 

1. I have reviewed this 10-Q of the Company;

 

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

 

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

 

4. Together with the Company’s principal executive officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

 

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

 

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

 

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

 

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

 

5. The Company’s other certifying officers and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):

 

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

 

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

 

Date: May 14, 2015

 

/s/ Norris R. Harris

Norris R. Harris

Chief Financial Officer

EX-31.2 3 ex31_2302certification.htm 302 CERTIFICATION

Exhibit 31.2

 

CERTIFICATION

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Norris R. Harris of Start Scientific, Inc. (the “Company”), certify that:

 

1. I have reviewed this 10-Q of the Company;

 

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

 

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

 

4. Together with the Company’s principal accounting and financial officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

 

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

 

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

 

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

 

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

 

5. The Company’s other certifying officers and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):

 

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

 

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

 

Date: May 14, 2015

 

/s/ Norris R. Harris

Norris R. Harris

Chief Executive Officer

EX-32.1 4 ex32_1906certification.htm 906 CERTIFICATION

Exhibit 32.1

 

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Norris R. Harris, Chief Financial Officer of Start Scientific, Inc. (the “Company”) certify that:

 

1. I have reviewed the quarterly report on Form 10-Q of the Company;

 

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

 

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

 

Date: May 14, 2015

 

/s/ Norris R. Harris

Norris R. Harris

Chief Financial Officer

EX-32.2 5 ex32_2906certification.htm 906 CERTIFICATION

Exhibit 32.2

 

CERTIFICATION

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Norris R. Harris, Chief Executive Officer of Start Scientific, Inc. (the “Company”) certify that:

 

1. I have reviewed the quarterly report on Form 10-Q of the Company;

 

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

 

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

 

Date: May 14, 2015

 

/s/ Norris R. Harris

Norris R. Harris

Chief Executive Officer

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net of discount Preferred stock, par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Common stock, par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Income Statement [Abstract] NET REVENUES OPERATING EXPENSES Salaries and consulting Professional fees Other selling, general and administrative Total Operating Expenses LOSS FROM OPERATIONS OTHER INCOME (EXPENSES) Loss on change in fair value of derivative liability Interest expense (including amortization of debt discount of $14,527 and $-0-, respectively) Total Other Income (Expenses) LOSS BEFORE INCOME TAXES INCOME TAX EXPENSE NET LOSS BASIC AND DILUTED: Net loss per common share Weighted average shares outstanding Amortization of debt discount Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES: Net loss Adjustments to reconcile net loss to net cash used by operating activities: Stock based compensation Expenses paid by related party Non-cash interest expenses Change in fair value of derivative liability Amortization of debt discounts Changes in operating assets and liabilities: Accounts payable and accrued liabilities - related parties Accounts payable and accrued expenses Net Cash Used by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES: CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from convertible debentures Proceeds from notes payable - related parties Payments on notes payable - related parties Net Cash Provided by Financing Activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION Cash Payments For: Interest Income taxes Non-cash financing activity: Common stock issued for services Organization, Consolidation and Presentation of Financial Statements [Abstract] NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION NOTE 2 - GOING CONCERN CONSIDERATIONS Equity [Abstract] NOTE 3 - STOCK BASED COMPENSATION Related Party Transactions [Abstract] NOTE 4 - RELATED PARTY TRANSACTIONS Debt Disclosure [Abstract] NOTE 5 - CONVERTIBLE NOTES PAYABLE Notes to Financial Statements NOTE 6 - DERIVATIVE LIABILITY Subsequent Events [Abstract] NOTE 7 - SUBSEQUENT EVENTS Operating losses Accumulated deficit Common stock issued for services, shares Common stock issued for services, value Payments on notes payable, related parties Accounts payable and accried liabilities, related parties Statement [Table] Statement [Line Items] Convertible promissory note Interest rate Terms of conversion Convertible debenture Draw down and consideration Maturity date Derivative liability Assets, Current Assets Liabilities, Current Liabilities AccumulatedDeficitPriorToExplorationStage Stockholders' Equity Attributable to Parent Liabilities and Equity Operating Expenses Operating Income (Loss) Interest Expense Other Nonoperating Income (Expense) Earnings Per Share, Basic and Diluted Increase (Decrease) in Due to Related Parties Net Cash Provided by (Used in) Financing Activities Derivative Liability EX-101.PRE 11 stsc-20150331_pre.xml XBRL PRESENTATION FILE EXCEL 12 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0`!@`(````(0!UB'/FL0$``"$.```3``@"6T-O;G1E;G1?5'EP97-= M+GAM;""B!`(HH``"```````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M``````````````````````````````````````#,E\MNPC`01?>5^@^1MQ4Q MIB]:$5C0=MDBE7Z`:P\DPK$MVU#X^T["0Q5*0:A(]2968L^])UY3*:,C("CP9]"\O>N.5!9]@M?89 MR4.PCY1ZD4/)?6HL:-R9&%?R@*]N2BT7,SX%VFFW[Z@P.H`.K5!ID'[O"29\ MKD+RO,3/:Q('RI-DN#Y8>66$6ZL*P0.2TH66>RZMC4.*E?49GQ?67R$&H8T. 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NOTE 3 - STOCK BASED COMPENSATION
3 Months Ended
Mar. 31, 2015
Equity [Abstract]  
NOTE 3 - STOCK BASED COMPENSATION

NOTE 3 - STOCK BASED COMPENSATION

 

During the three months ended March 31, 2015, the Company issued a total of 6,000,000 shares of common stock for consulting services rendered to the Company. The stock was valued at the market price on the date of issuance which totaled $1,050,000. This amount is included in salaries and consulting expenses on the statement of operations.

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NOTE 2 - GOING CONCERN CONSIDERATIONS
3 Months Ended
Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NOTE 2 - GOING CONCERN CONSIDERATIONS

NOTE 2 - GOING CONCERN CONSIDERATIONS

 

The accompanying condensed financial statements have been prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As reported in its Annual Report on Form 10-K for the year ended December 31, 2014, the Company has incurred operating losses of $14,581,637 from inception of the Company through December 31, 2014. The Company’s accumulated deficit at March 31, 2015 was $15,872,309 and had a working capital deficit, continued losses, and negative cash flows from operations. These factors combined, raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to address and alleviate these concerns are as follows:

 

The Company’s management continues to develop a strategy of exploring all options available to it so that it can develop successful operations and have sufficient funds, therefore, as to be able to operate over the next twelve months. The Company is attempting to improve these conditions by way of financial assistance through issuances of additional equity and by generating revenues through sales of products and services. No assurance can be given that funds will be available, or, if available, that it will be on terms deemed satisfactory to management. 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 attain profitable operations. The accompanying condensed financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of these uncertainties.

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Balance Sheets (Unaudited) (USD $)
Mar. 31, 2015
Dec. 31, 2014
CURRENT ASSETS    
Cash and cash equivalents $ 5,431us-gaap_CashAndCashEquivalentsAtCarryingValue $ 452us-gaap_CashAndCashEquivalentsAtCarryingValue
Total Current Assets 5,431us-gaap_AssetsCurrent 452us-gaap_AssetsCurrent
TOTAL ASSETS 5,431us-gaap_Assets 452us-gaap_Assets
CURRENT LIABILITIES    
Accounts payable 28,997us-gaap_AccountsPayableCurrent 12,120us-gaap_AccountsPayableCurrent
Accrued expenses 621,069us-gaap_AccruedLiabilitiesCurrent 652,986us-gaap_AccruedLiabilitiesCurrent
Accounts payable and accrued liabilities - related parties 603,563us-gaap_AccountsPayableAndAccruedLiabilitiesCurrent 604,829us-gaap_AccountsPayableAndAccruedLiabilitiesCurrent
Convertible debenture/notes payable (net of discount of $125,973 and $-0-, respectively) 14,527us-gaap_ConvertibleDebt 0us-gaap_ConvertibleDebt
Notes payable 547,860us-gaap_NotesPayableCurrent 547,860us-gaap_NotesPayableCurrent
Notes payable - related parties 109,330us-gaap_NotesPayableRelatedPartiesClassifiedCurrent 131,830us-gaap_NotesPayableRelatedPartiesClassifiedCurrent
Derivative liability 269,930us-gaap_DerivativeLiabilitiesCurrent 0us-gaap_DerivativeLiabilitiesCurrent
Total Current Liabilities 2,195,276us-gaap_LiabilitiesCurrent 1,949,625us-gaap_LiabilitiesCurrent
TOTAL LIABILITIES 2,195,276us-gaap_Liabilities 1,949,625us-gaap_Liabilities
STOCKHOLDERS' DEFICIT    
Preferred stock, $0.0001 par value; 100 shares authorized, 100 and -0- issued and outstanding, respectively 0us-gaap_PreferredStockValueOutstanding 0us-gaap_PreferredStockValueOutstanding
Common stock, $0.0001 par value; 500,000,000 shares authorized, 131,665,000 and 125,665,000 shares issued and outstanding, respectively 13,167us-gaap_CommonStockValue 12,567us-gaap_CommonStockValue
Additional paid-in-capital 13,669,297us-gaap_AdditionalPaidInCapital 12,619,897us-gaap_AdditionalPaidInCapital
Accumulated deficit (15,872,309)STSC_AccumulatedDeficitPriorToExplorationStage (14,581,637)STSC_AccumulatedDeficitPriorToExplorationStage
Total Stockholders' Deficit (2,189,845)us-gaap_StockholdersEquity (1,949,173)us-gaap_StockholdersEquity
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 5,431us-gaap_LiabilitiesAndStockholdersEquity $ 452us-gaap_LiabilitiesAndStockholdersEquity
XML 19 R6.htm IDEA: XBRL DOCUMENT v2.4.1.9
Statements of Cash Flows (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,290,672)us-gaap_ProfitLoss $ (1,043,399)us-gaap_ProfitLoss
Adjustments to reconcile net loss to net cash used by operating activities:    
Stock based compensation 1,050,000us-gaap_ShareBasedCompensation 965,000us-gaap_ShareBasedCompensation
Expenses paid by related party 0STSC_ExpensesPaidByRelatedParty 2,694STSC_ExpensesPaidByRelatedParty
Non-cash interest expenses 84,974us-gaap_OtherNoncashExpense 0us-gaap_OtherNoncashExpense
Change in fair value of derivative liability 44,456us-gaap_IncreaseDecreaseInDerivativeLiabilities 0us-gaap_IncreaseDecreaseInDerivativeLiabilities
Amortization of debt discounts 14,527us-gaap_AmortizationOfDebtDiscountPremium 0us-gaap_AmortizationOfDebtDiscountPremium
Changes in operating assets and liabilities:    
Accounts payable and accrued liabilities - related parties (1,266)us-gaap_IncreaseDecreaseInDueToRelatedParties 76,418us-gaap_IncreaseDecreaseInDueToRelatedParties
Accounts payable and accrued expenses (15,040)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities (9,780)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
Net Cash Used by Operating Activities (113,021)us-gaap_NetCashProvidedByUsedInContinuingOperations (9,067)us-gaap_NetCashProvidedByUsedInContinuingOperations
CASH FLOWS FROM INVESTING ACTIVITIES: 0us-gaap_NetCashProvidedByUsedInInvestingActivities 0us-gaap_NetCashProvidedByUsedInInvestingActivities
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from convertible debentures 140,500us-gaap_ProceedsFromConvertibleDebt 0us-gaap_ProceedsFromConvertibleDebt
Proceeds from notes payable - related parties 0us-gaap_IncreaseDecreaseInNotesPayableRelatedPartiesCurrent 550us-gaap_IncreaseDecreaseInNotesPayableRelatedPartiesCurrent
Payments on notes payable - related parties (22,500)us-gaap_IncreaseDecreaseInNotesPayableRelatedParties 0us-gaap_IncreaseDecreaseInNotesPayableRelatedParties
Net Cash Provided by Financing Activities 118,000us-gaap_NetCashProvidedByUsedInFinancingActivities 550us-gaap_NetCashProvidedByUsedInFinancingActivities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,979us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease (8,517)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 452us-gaap_CashAndCashEquivalentsAtCarryingValue 8,799us-gaap_CashAndCashEquivalentsAtCarryingValue
CASH AND CASH EQUIVALENTS, END OF PERIOD 5,431us-gaap_CashAndCashEquivalentsAtCarryingValue 282us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash Payments For:    
Interest 614us-gaap_InterestPaid 2,390us-gaap_InterestPaid
Income taxes 0us-gaap_IncomeTaxesPaid 0us-gaap_IncomeTaxesPaid
Non-cash financing activity:    
Common stock issued for services $ 1,050,000us-gaap_StockIssuedDuringPeriodValueIssuedForServices $ 965,000us-gaap_StockIssuedDuringPeriodValueIssuedForServices
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NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION
3 Months Ended
Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

 

The accompanying unaudited financial statements have been prepared by Start Scientific, Inc. (the "Company") pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim financial statements be read in conjunction with the Company’s audited financial statements and notes thereto included in its Form 10-K for the year ended December 31, 2014. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015.

XML 22 R3.htm IDEA: XBRL DOCUMENT v2.4.1.9
Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2015
Mar. 31, 2014
Statement of Financial Position [Abstract]    
Convertible debenture/notes payable - net of discount $ 125,973us-gaap_LongTermDebt $ 0us-gaap_LongTermDebt
Preferred stock, par value $ 0.0001us-gaap_PreferredStockParOrStatedValuePerShare $ 0.0001us-gaap_PreferredStockParOrStatedValuePerShare
Preferred stock, shares authorized 100us-gaap_PreferredStockSharesAuthorized 100us-gaap_PreferredStockSharesAuthorized
Preferred stock, shares issued 100us-gaap_PreferredStockSharesIssued 0us-gaap_PreferredStockSharesIssued
Preferred stock, shares outstanding 100us-gaap_PreferredStockSharesOutstanding 0us-gaap_PreferredStockSharesOutstanding
Common stock, par value $ 0.0001us-gaap_CommonStockParOrStatedValuePerShare $ 0.0001us-gaap_CommonStockParOrStatedValuePerShare
Common stock, shares authorized 500,000,000us-gaap_CommonStockSharesAuthorized 500,000,000us-gaap_CommonStockSharesAuthorized
Common stock, shares issued 131,665,000us-gaap_CommonStockSharesIssued 125,665,000us-gaap_CommonStockSharesIssued
Common stock, shares outstanding 131,665,000us-gaap_CommonStockSharesOutstanding 125,665,000us-gaap_CommonStockSharesOutstanding
XML 23 R17.htm IDEA: XBRL DOCUMENT v2.4.1.9
NOTE 5 - CONVERTIBLE NOTES PAYABLE (Details Narrative) (USD $)
3 Months Ended
Mar. 15, 2015
Mar. 31, 2015
Dec. 31, 2014
Convertible debenture   $ 14,527us-gaap_ConvertibleDebt $ 0us-gaap_ConvertibleDebt
Promissory Note issued February 10, 2015      
Convertible promissory note   33,000us-gaap_AccountsPayableRelatedPartiesCurrent
/ us-gaap_ShortTermDebtTypeAxis
= STSC_PromissoryNoteIssuedFeb102015Member
 
Interest rate   8.00%us-gaap_DebtInstrumentInterestRateStatedPercentage
/ us-gaap_ShortTermDebtTypeAxis
= STSC_PromissoryNoteIssuedFeb102015Member
 
Terms of conversion

The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 45% discount to the average of the three lowest daily trading prices as reported on the OTCQB for the twelve trading days previous to the conversion date.

   
Maturity date Nov. 15, 2012    
Promissory Note issued February 25, 2015      
Convertible promissory note   52,500us-gaap_AccountsPayableRelatedPartiesCurrent
/ us-gaap_ShortTermDebtTypeAxis
= STSC_PromissoryNoteIssuedFeb252015Member
 
Interest rate   8.00%us-gaap_DebtInstrumentInterestRateStatedPercentage
/ us-gaap_ShortTermDebtTypeAxis
= STSC_PromissoryNoteIssuedFeb252015Member
 
Terms of conversion

The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 40% discount to the lowest trading price as reported on the OTCQB for the fifteen trading days previous to the conversion date.

   
Maturity date Feb. 16, 2025    
Note Purchase Agreement March 6, 2015      
Interest rate   10.00%us-gaap_DebtInstrumentInterestRateStatedPercentage
/ us-gaap_ShortTermDebtTypeAxis
= STSC_NotePurchaseAgreementMarch62015Member
 
Terms of conversion

The Debenture, together with all interest as accrued, is convertible into shares of the Company’s common stock at a price equal to the lower of $.10 or 58% of the lowest trading price of the Company’s common stock during the 20 previous consecutive trading days. The Note Purchase and the Debenture contain representations, warranties, conditions, restrictions, and covenants of the Company that are customary in such transactions with smaller companies.

   
Convertible debenture   220,000us-gaap_ConvertibleDebt
/ us-gaap_ShortTermDebtTypeAxis
= STSC_NotePurchaseAgreementMarch62015Member
 
Draw down and consideration   $ 55,000us-gaap_LineOfCredit
/ us-gaap_ShortTermDebtTypeAxis
= STSC_NotePurchaseAgreementMarch62015Member
 
Maturity date Mar. 16, 2006    
XML 24 R1.htm IDEA: XBRL DOCUMENT v2.4.1.9
Document and Entity Information
3 Months Ended
Mar. 31, 2015
May 08, 2015
Document And Entity Information    
Entity Registrant Name Start Scientific, Inc.  
Entity Central Index Key 0001368761  
Document Type 10-Q  
Document Period End Date Mar. 31, 2015  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   131,665,000dei_EntityCommonStockSharesOutstanding
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2015  
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NOTE 6 - DERIVATIVE LIABILITY (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Notes to Financial Statements    
Derivative liability $ 269,930us-gaap_DerivativeLiabilities  
Loss on change in fair value of derivative liability $ (44,456)us-gaap_DerivativeGainLossOnDerivativeNet $ 0us-gaap_DerivativeGainLossOnDerivativeNet
XML 26 R4.htm IDEA: XBRL DOCUMENT v2.4.1.9
Statements of Operations (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Income Statement [Abstract]    
NET REVENUES $ 0us-gaap_RevenuesNetOfInterestExpense $ 0us-gaap_RevenuesNetOfInterestExpense
OPERATING EXPENSES    
Salaries and consulting 1,050,000us-gaap_SalariesWagesAndOfficersCompensation 977,500us-gaap_SalariesWagesAndOfficersCompensation
Professional fees 76,557us-gaap_ProfessionalFees 47,588us-gaap_ProfessionalFees
Other selling, general and administrative 824us-gaap_OtherSellingGeneralAndAdministrativeExpense 70us-gaap_OtherSellingGeneralAndAdministrativeExpense
Total Operating Expenses 1,127,381us-gaap_OperatingExpenses 1,025,158us-gaap_OperatingExpenses
LOSS FROM OPERATIONS (1,127,381)us-gaap_OperatingIncomeLoss (1,025,158)us-gaap_OperatingIncomeLoss
OTHER INCOME (EXPENSES)    
Loss on change in fair value of derivative liability (44,456)us-gaap_DerivativeGainLossOnDerivativeNet 0us-gaap_DerivativeGainLossOnDerivativeNet
Interest expense (including amortization of debt discount of $14,527 and $-0-, respectively) (118,835)us-gaap_InterestExpense 18,241us-gaap_InterestExpense
Total Other Income (Expenses) (163,291)us-gaap_OtherNonoperatingIncomeExpense 18,241us-gaap_OtherNonoperatingIncomeExpense
LOSS BEFORE INCOME TAXES (1,290,672)us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic (1,043,399)us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
INCOME TAX EXPENSE 0us-gaap_CurrentFederalTaxExpenseBenefit 0us-gaap_CurrentFederalTaxExpenseBenefit
NET LOSS $ (1,290,672)us-gaap_ProfitLoss $ (1,043,399)us-gaap_ProfitLoss
BASIC AND DILUTED:    
Net loss per common share $ (0.01)us-gaap_EarningsPerShareBasicAndDiluted $ (0.01)us-gaap_EarningsPerShareBasicAndDiluted
Weighted average shares outstanding 128,787,222STSC_WeightedAverageSharesOurstandingBasicAndDiluted 109,876,111STSC_WeightedAverageSharesOurstandingBasicAndDiluted
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NOTE 6 - DERIVATIVE LIABILITY
3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
NOTE 6 - DERIVATIVE LIABILITY

NOTE 6 - DERIVATIVE LIABILITY

 

Due to the convertible notes described in Note 5 above, it was determined at March 31, 2015 that there was a derivative liability associated with these notes. The amount of the derivative liability at March 31, 2015 was $269,930, which is reported on the balance sheet. The Company also recorded a loss on the change in the fair value of the derivative liability of $44,456 on the statement of operations for the three months ended March 31, 2015.

XML 28 R11.htm IDEA: XBRL DOCUMENT v2.4.1.9
NOTE 5 - CONVERTIBLE NOTES PAYABLE
3 Months Ended
Mar. 31, 2015
Debt Disclosure [Abstract]  
NOTE 5 - CONVERTIBLE NOTES PAYABLE

NOTE 5 - CONVERTIBLE NOTES PAYABLE

 

On February 10, 2015, the Company issued a promissory note in the original principal amount of $33,000 to a lender. The Note matures on November 12, 2015 and carries an interest rate of 8% per annum. The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 45% discount to the average of the three lowest daily trading prices as reported on the OTCQB for the twelve trading days previous to the conversion date.

 

On February 25, 2015, the Company issued a promissory note in the original principal amount of $52,500 to a lender. The Note matures on February 25, 2016 and carries an interest rate of 8% per annum. The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 40% discount to the lowest trading price as reported on the OTCQB for the fifteen trading days previous to the conversion date.

 

On March 6, 2015, the Company entered into a Note Purchase Agreement in respect of a credit line and associated convertible debenture in the original principal amount up to $220,000. As of March 6, 2015, the Company recorded a $55,000 draw down and consideration in respect of the credit line. The Debenture matures on March 6, 2016 and bears interest at the rate of 10% per annum. The Debenture, together with all interest as accrued, is convertible into shares of the Company’s common stock at a price equal to the lower of $.10 or 58% of the lowest trading price of the Company’s common stock during the 20 previous consecutive trading days. The Note Purchase and the Debenture contain representations, warranties, conditions, restrictions, and covenants of the Company that are customary in such transactions with smaller companies.

XML 29 R15.htm IDEA: XBRL DOCUMENT v2.4.1.9
NOTE 3 - STOCK BASED COMPENSATION (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Equity [Abstract]    
Common stock issued for services, shares 6,000,000us-gaap_StockIssuedDuringPeriodSharesIssuedForServices  
Common stock issued for services, value $ 1,050,000us-gaap_StockIssuedDuringPeriodValueIssuedForServices $ 965,000us-gaap_StockIssuedDuringPeriodValueIssuedForServices
XML 30 R13.htm IDEA: XBRL DOCUMENT v2.4.1.9
NOTE 7 - SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2015
Subsequent Events [Abstract]  
NOTE 7 - SUBSEQUENT EVENTS

NOTE 7 - SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events for the period of March 31, 2015 through the date the financial statements were issued, and concluded there were no events or transactions occurring during this period that required recognition or disclosure in its financial statements.

XML 31 R14.htm IDEA: XBRL DOCUMENT v2.4.1.9
NOTE 2 - GOING CONCERN CONSIDERATIONS (Details Narrative) (USD $)
Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Operating losses $ 14,581,637us-gaap_OperatingLossCarryforwards
Accumulated deficit $ 15,872,309us-gaap_RetainedEarningsAccumulatedDeficit
XML 32 R16.htm IDEA: XBRL DOCUMENT v2.4.1.9
NOTE 4 - RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Related Party Transactions [Abstract]    
Payments on notes payable, related parties $ 22,500us-gaap_RepaymentsOfNotesPayable  
Accounts payable and accried liabilities, related parties $ 1,266us-gaap_IncreaseDecreaseInDueToRelatedParties $ (76,418)us-gaap_IncreaseDecreaseInDueToRelatedParties
XML 33 R5.htm IDEA: XBRL DOCUMENT v2.4.1.9
Statements of Operations (Parenthetical) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Income Statement [Abstract]    
Amortization of debt discount $ 14,527us-gaap_AmortizationOfDebtDiscountPremium $ 0us-gaap_AmortizationOfDebtDiscountPremium
XML 34 R10.htm IDEA: XBRL DOCUMENT v2.4.1.9
NOTE 4 - RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2015
Related Party Transactions [Abstract]  
NOTE 4 - RELATED PARTY TRANSACTIONS

NOTE 4 - RELATED PARTY TRANSACTIONS

 

During the three months ended March 31, 2015, the Company made payments on notes payable to related parties in the amount of $22,500. Also, accounts payable and accrued liabilities to related parties decreased by $1,266.

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