10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

Amendment No. 1

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

or

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

Commission File Number: 333-170132

Advanced Credit Technologies, Inc.

(Exact name of registrant as specified in its charter)

Nevada	26-2118480
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
871 Venetia Bay Boulevard, #202 Venice, Florida	34285
(Address of principal executive offices)	(Zip Code)

(612)961-4536

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X] No [  ]

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

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [X]	Smaller reporting company [X]
Emerging Growth Company [  ]

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

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

Yes [  ] No [X]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes [  ] No [  ]

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common	ACRT	OTC Pink

APPLICABLE ONLY TO CORPORATE ISSUERS:

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

As of the date of this filing, there were 68,130,515 shares of the Issuer’s common stock issued and outstanding and held by approximately 115 shareholders, six of which are deemed affiliates within the meaning of Rule 12b-2 under the Exchange Act.

As of the date of this filing, there were 30,000 shares of the Issuer’s preferred stock issued and outstanding.

EXPLANATORY NOTE

The sole purpose of this Amendment No. 1 to the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 of Advanced Credit Technologies, Inc. (the “Company”) filed with the Securities and Exchange Commission on November 19, 2019 (the “Form 10-Q”) is to furnish Exhibits 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

ITEM 5. EXHIBITS

Exhibits have been filed separately with the United States Securities and Exchange Commission in connection with the quarterly report on Form 10-Q or have been incorporated into the report by reference.

Exhibit	Description
31.1	Rule 13a-14(a) / 15d-14(a) Certification of Principal Executive Officer & Principal Financial Officer.*****
32.1	Section 1350 Certification of the Principal Executive Officer & Principal Financial Officer.*****
101.1	Interactive data files pursuant to Rule 405 of Regulation S-T.******

*****	Filed herewith. In addition, in accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not filed.
******	Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ADVANCED CREDIT TECHNOLOGIES, INC.
	By:	/s/ Christopher Jackson
		Christopher Jackson
Date: November 20, 2019		President, Secretary, Treasurer and Director
		Principal Executive Officer
		Principal Financial Officer

Pursuant to the requirements of the Securities Act of 1933, this report has been signed by the following persons in the capacities and on the dates indicated.

	ADVANCED CREDIT TECHNOLOGIES, INC.
	By:	/s/ Mark Carten
Date: November 20, 2019		Mark Carten, Director
	By:	/s/ Frederick Andreini
Date: November 20, 2019		Frederick Andreini, Director
	By:	/s/ Enrico Giordano
Date: November 20, 2019		Enrico Giordano, Director
	By:	/s/ Christopher Jackson
Date: November 20, 2019		Christopher Jackson, Director
	By:	/s/ Rex Schuette
Date: November 20, 2019		Rex Schuette, Director

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES OXLEY ACT OF

2002 AND RULE 13A-14 OF THE EXCHANGE ACT OF 1934

I, Christopher Jackson, certify that:

1.	I have reviewed this 3rd quarterly report on Form 10-Q/A of Advanced Credit Technologies, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statement made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	As certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d015f)) for the registrant and have:

(a)	designed such disclosure controls and procedures, or caused such internal control over financial reporting to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

(a)	all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely; and
(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

	ADVANCED CREDIT TECHNOLOGIES, INC.
	By:	/s/ Christopher Jackson
		Christopher Jackson
Date: November 20, 2019		President, Treasurer, Secretary, Principal Executive Officer And Principal Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S. C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Advanced Credit Technologies, Inc., (the “Company”) on Form 10-Q/A for the period ended September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher Jackson, President, Treasurer, Secretary and Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.	The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	ADVANCED CREDIT TECHNOLOGIES, INC.
	By:	/s/ Christopher Jackson
		Christopher Jackson
Date: November 20, 2019		President, Treasurer, Secretary, Principal Executive Officer And Principal Financial Officer

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Related Party Transactions - Summary of Warrants Issued (Details) - $ / shares	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Warrants			1,250,000	1,250,000
Exercise price		$ 0.15
Weighted average life, Unexpired 12/31/18	3 years 1 month 9 days
Weighted average life, Unexpired 9/31/19	4 years 6 months
Weighted average price, Unexpired 12/31/18	$ 0.1889
Weighted average price, Unexpired 9/31/19	$ 0.1750
11/30/15 One [Member]
Warrants	250,000
Exercise price	$ 0.15
Expected life	4 years
Unexpired 12/31/18	250,000
Unexpired 9/31/19	250,000
11/30/15 Two [Member]
Warrants	250,000
Exercise price	$ 0.20
Expected life	5 years
Unexpired 12/31/18	250,000
Unexpired 9/31/19	250,000
6/28/16 [Member]
Warrants	625,000
Exercise price	$ 0.20
Expected life	3 years
Unexpired 12/31/18	625,000
Unexpired 9/31/19

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Summary of Significant Accounting Policies - Schedule of Contract Asset and Contract Liability (Details)	9 Months Ended
	Sep. 30, 2019 USD ($)
Accounting Policies [Abstract]
Beginning Balance, Contract Asset	$ 0
Less revenue earned and recognized
Ending Balance, Contract Asset	0
Beginning Balance, Contract Liability	39,585
Less revenue earned and recognized	(18,747)
Ending Balance, Contract Liability	$ 20,838

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Deposits (Details Narrative)	9 Months Ended
	Sep. 30, 2019 USD ($)
Deposits [Abstract]
Down payment from customer to secure future services	$ 10,000

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Related Party Transactions - Summary of Options Issued (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2019
Options			1,200,000
Options [Member]
Options	1,100,000	100,000
Exercise price	$ 0.15	$ 0.15
Expected life	5 years	5 years
Unexpired 12/31/18	1,100,000	100,000
Unexpired 9/31/19	1,100,000	100,000
Options weighted average, Unexpired 12/31/18	5 years	5 years
Options weighted average, Unexpired 9/30/19	2 years 2 months 30 days	2 years 2 months 30 days
Options weighted average, Unexpired 12/31/18	$ 0.15	$ 0.15
Options weighted average, Unexpired 9/30/19	$ 0.15	$ 0.15

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Commitments

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments

NOTE 6 – COMMITMENTS

The Company rents office space on a month to month basis for its main office at 871 Venetia Bay Blvd Suite #202 Venice, FL 34285. Monthly rent for this space is $50. All conditions have been met and paid by the Company.

In 2015, in conjunction with a proposed TurnScor Card platform, the Company signed Investor Royalty and Warrant Agreements with four parties. In exchange for the funds contributed by the four parties, the Company agreed to:

1.	Pay the investors monthly residuals of 2.0% to 5% per month on the gross revenue after expenses generated by the Company’s primary platform in conjunction with the Company’s TurnScor Card;
2.	Pay the investors a residual in perpetuity on 2% to 5% of all TurnScor Card sub-platform revenue generated; and
3.	Issue warrants to investors all of which have either been exercised or expired.

The Company does not plan to proceed with the TurnScor Card at this time.

During fiscal year 2018, the Company wrote off $17,646 in advanced commissions paid to a sales person who dissolved their contractor agreement with the Company.

The Company has commission agreements as follows:

An agreement with a shareholder and director of the Company stating that the executive will be entitled to a two-and-a half-percent (2.5%) commission of the gross revenue recorded by the Company for any customer contracts that are closed by the Company at the time of and during the duration of the agreement. These commissions are payable quarterly upon receipt of customer revenues.

An agreement with an independent company granting that company a non-exclusive, non-transferable license to provide the CyberloQ Vault Services to its customers and the revenues derived will be divided 50/50 between that independent company and Advanced Credit Technologies Inc.

An agreement with two sales managers granting each manager a 1% commission on the gross revenue of the Company. These commissions are payable quarterly upon receipt of customer revenues.

A one year renewable agreement with an independent company granting that company a non-exclusive, non-transferable license to provide the CyberloQ Vault Services to a certain territory and for a defined term.

The independent company will pay Advanced Credit Technologies, Inc. a monthly fee of $100. Advanced Credit Technologies will pay a commission of 90% less transaction fees.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Schedule of Contract Asset and Contract Liability

	Contract Asset		Contract Liability
December 31, 2018	$	0	$	39,585
Less: revenue earned and recognized		-		(18,747	)
September 30, 2019	$	0	$	20,838

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Consolidated Condensed Balance Sheets - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash	$ 22,837	$ 21,009
Accounts Receivable	50,000
Commitment Receivable		9,000
Total Current Assets	72,837	30,009
Fixed Assets
Software and Computer Equipment, Net	475,079	550,679
Total Fixed Assets	475,079	550,679
Total Assets	547,917	580,688
Current Liabilities
Accounts Payable and Accrued Expenses	27,371	9,851
Deposits	10,000
Customer Prepayments	20,838	39,585
Loans Payable - Stockholders	35,000	45,000
Total Current Liabilities	93,209	94,436
Total Liabilities	93,209	94,436
Commitments and Contingencies
Stockholders' Equity
Common stock: $0.001 par value,100,000,000 shares authorized; 68,130,515 and 65,830,515 shares issued and outstanding as of September 30, 2019 and December 31, 2018 respectively	68,131	65,831
Preferred Stock $0.001 per value - 30,000 shares authorized; issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	30	30
Shares to be Issued: 3,333,333 and 3,483,333 common shares as of September 30, 2019 and December 31, 2018, respectively	300,000	348,000
Stock Subscription Receivable	(35,000)	(150,000)
Additional Paid in Capital	4,148,372	3,884,102
Accumulated Deficit	(4,026,826)	(3,661,711)
Total Stockholders' Equity	454,707	486,252
Total Liabilities and Stockholders' Equity	$ 547,917	$ 580,688

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Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended					9 Months Ended		12 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
OPERATING ACTIVITIES
Net loss	$ (115,220)	$ (142,984)	$ (205,111)	$ (473,623)	$ (204,348)	$ (365,115)	$ (835,623)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain (Loss) of Settlement of Debt							12,000		$ (151,324)
Depreciation	30,669			30,012		91,350	90,037
Stock Compensation	0			296,120		18,570	355,623
Change in Operating Assets and Liabilities:
Accounts Receivable						(41,000)	16,000
Accounts Payable and Accrued Expenses						17,520	11,705
Deposits						10,000	10,833
Customer Prepayments						(18,747)	204
Net Cash Used in Operating Activities						(287,422)	(339,221)
INVESTING ACTIVITIES
Software						(15,750)
Net cash provided by (used) in investing activities						(15,750)
FINANCING ACTIVITIES
Proceeds from Common Stock Issuance						200,000	322,000
Proceeds from Common Stock to be Issued						115,000	100,000
Repayment of Note Principal						(10,000)	(150,000)
Net Cash Provided by Financing Activities						305,000	272,000
Net Increase (Decrease) in Cash and Equivalents						1,828	(67,221)
Cash and Equivalents at Beginning of the Period		$ 21,009	45,578		$ 112,799	21,009	112,799	$ 112,799
Cash and Equivalents at End of the Period	$ 22,837		$ 21,009	$ 45,578		22,837	45,578	$ 21,009	$ 112,799
SUPPLEMENTAL CASH FLOW INFORMATION
Interest Paid						(200)	550
Income Taxes Paid
NON-CASH DISCLOSURES
Company issued 60,000 shares of Stock for payment of $6,000 accrued expenses							6,000
Company issued 150,000 shares of stock for payment of $12,000							$ 12,000

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Related Party Transactions - Schedule of Related Party Loans Payable (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Related Party Transactions [Abstract]
Loans payable - stockholders	$ 35,000	$ 45,000
Loans from related parties	$ 0	$ 0

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Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stockholders' Equity

NOTE 5 – STOCKHOLDERS’ EQUITY

Common Stock

The Company has 100,000,000 shares of $.001 par value common stock authorized as of September 30, 2019 and December 31, 2018.

The Company has an agreement to issue 3,333,333 common shares for $300,000 by June 30, 2019. Currently, the Company has collected $265,000 towards that agreement, and is disclosing the full amount and the related 3,333,333 common shares as “To be Issued”. Once the remaining stock subscription of $35.000 is collected, the Company will issue the entire 3,333,333 common shares.

During 2018, the Company received $322,000 in payment for 3,203,334 shares of common stock; received $83,300 in services for 435,000 shares of common stock. Also during 2018: the Company issued 60,000 shares of common stock in payment of $6,000 of accrued legal fees, recognizing a loss on settlement of debt of $12,000; and the Company converted $12,000 of debt into 150,000 shares, these shares were previously recorded as “Shares to be Issued” in the Balance Sheet. There were 65,830,515 shares of common stock issued and outstanding as of December 31, 2018.

During 2019, the Company received $200,000 in payment for 2,000,000 shares of common stock and issued 300,000 shares to officers in conjunction with their 2018 service agreement, which were previously recorded as “Shares to be Issued” in the balance sheet. There were 68,130,515 shares of common stock issued and outstanding as of September 30, 2019.

Preferred Stock

The Company did not have any preferred stock prior to 2017. In April of 2017, the Company amended its articles of incorporation to create a new class of stock designated Series A Super Voting Preferred Stock consisting of thirty-thousand (30,000) shares at par value of $0.001 per share. Certain rights, preferences, privileges and restrictions were established for the Series A Preferred Stock as follows: (a) the amount to be represented in stated capital at all times for each share of Series A Preferred Stock shall be its par value of $0.001 per share; (b) except as otherwise required by law, holders of shares of Series A Preferred Stock shall vote together with the common stock as a single class and the holders of Series A Preferred Stock shall be entitled to five-thousand (5,000) votes per share of Series A Preferred Stock; and (c) in the event of any liquidation, dissolution or winding-up of the Company, either voluntary or involuntary, the holders of the Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of assets of the Corporation to the holders of the common stock, the original purchase price paid for the Series A Preferred Stock. All 30,000 shares of the Series A Super Voting Preferred Stock were issued in 2017.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Organization and Nature of Business

Organization and Nature of Business

ACRT (“the Company’s TurnScor® and CyberloQ® products”, “We” or the “Company”) is a development-stage technology company focused on fraud prevention and credit management. The Company was incorporated in the State of Nevada on February 25, 2008.

The Company offers a proprietary software platform branded as CyberloQ® . While previously the Company licensed CyberloQ, in the third quarter of 2017, the Company acquired the CyberloQ technology and is now the exclusive owner of CyberloQ.

The CyberloQ Vault is a “cloud based’ security protocol that allows clients the ability to send/receive secure DATA without having to use traditional e-mail which is prone to a breach. This CyberloQ service uses cloud based encryption and a secure web portal to send/receive confidential data, the sender and receiver both must have authenticated their position within the prescribed geo coordinates as well as authenticate their mobile devices prior to sending/receiving any data. Thus rendering a hack or breach utterly useless for the encrypted data is unusable without the CyberloQ authentication component.

In addition to CyberloQ, the Company offers a web-based proprietary software platform under the brand name Turnscor® which allows customers to monitor and manage their credit from the privacy of their own homes. Although individuals can sign-up for Turnscor on their own, the Company also intends to market Turnscor to certain institutional clients, where appropriate, in conjunction with CyberloQ as a value-added benefit to offer their customers.

On June 15, 2017, the Company created a private limited company in the United Kingdom named CyberloQ Technologies LTD. CyberloQ Technologies LTD is a wholly-owned subsidiary of the Company, and any business that the Company has in the United Kingdom will be transacted through CyberloQ Technologies LTD. However, to date CyberloQ Technologies LTD has not had any operating activity or generated any revenue for the Company.

Basis of Presentation

Basis of Presentation

The financial statements of the Company have been prepared using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America and the rules of the Securities and Exchange Commission. All amounts are presented in U.S. dollars. The Company has adopted a December 31 fiscal year end.

Certain information and note disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with a reading of the financial statements and notes thereto included in our Annual Report on From 10-K for the fiscal year ended December 31, 2018, as filed with the U.S. Securities and Exchange Commission.

Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All intercompany accounts and transactions have been eliminated.

Use of Estimates

Use of Estimates

In preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the year reported. Actual results may differ from these estimates. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents are comprised of certain highly liquid investments with maturities of three months or less when purchased. The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. As of September 30, 2019 and December 31, 2018, the Company had no deposits in excess of federally-insured limits.

Research and Development, Software Development Costs, and Internal Use Software Development Costs

Research and Development, Software Development Costs, and Internal Use Software Development Costs

Software development costs are accounted for in accordance with ASC Topic No. 985. Software development costs are capitalized once technological feasibility of a product is established and such costs are determined to be recoverable. For products where proven technology exists, this may occur very early in the development cycle. Factors we consider in determining when technological feasibility has been established include (i) whether a proven technology exists; (ii) the quality and experience levels of the individuals developing the software; (iii) whether the software is similar to previously developed software which has used the same or similar technology; and (iv) whether the software is being developed with a proven underlying engine. Technological feasibility is evaluated on a product-by-product basis. Capitalized costs for those products that are canceled or abandoned are charged immediately to cost of sales. The recoverability of capitalized software development costs is evaluated on the expected performance of the specific products for which the costs relate.

Internal use software development costs are accounted for in accordance with ASC Topic No. 350 which requires the capitalization of certain external and internal computer software costs incurred during the application development stage. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality.

In accounting for website software development costs, we have adopted the provisions of ASC Topic No. 350. ASC Topic No. 350 provides that certain planning and training costs incurred in the development of website software be expensed as incurred, while application development stage costs are to be capitalized. During the quarters ended September 30, 2019 and 2018, we expensed $6,193 and $27,092, respectively, for expenditures on research and development. None was paid to related parties.

Fixed Assets, Intangibles and Long-Lived Assets

Fixed Assets, Intangibles and Long-Lived Assets

The Company records its fixed assets at historical cost. The Company expenses maintenance and repairs as incurred. Upon disposition of fixed assets, the gross cost and accumulated depreciation are written off and the difference between the proceeds and the net book value is recorded as a gain or loss on sale of assets. The Company depreciates its fixed assets over their respective estimated useful lives ranging from three to fifteen years.

The Company follows FASB 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. As of September 30, 2019 and December 31, 2018, the Company had not experienced impairment losses on its long-lived assets.

Revenue Recognition

Revenue Recognition

Effective January 1, 2018, the Company adopted the requirements of ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09 or ASC 606). The adoption of ASC 606 resulted in changes to the Company’s accounting policies for revenue recognition previously recognized under ASC 605 (Legacy GAAP), as detailed below. However, since the Company had not earned any revenue prior to adopting ASC 606, this policy change had no effect on any financial statements from prior periods, thus no adjustments have been made to any prior periods related to the adoption of ASC 606.

Revenue Recognition Policy

Under ASC 606, the Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. To achieve the core principle of ASC 606, the Company performs the following steps:

1) Identify the contract(s) with a customer;

2) Identify the performance obligations in the contract;

3) Determine the transaction price;

4) Allocate the transaction price to the performance obligations in the contract; and

5) Recognize revenue when (or as) we satisfy a performance obligation.

The Company derives its revenue from two sources: (1) subscription revenues, which are comprised of subscription fees from customers utilizing the Company’s TurnScor®, CyberloQ™ and CyberloQ Vault products and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of certain performance obligations related to set-up, ingestion, consulting and training fees. The Company’s subscription arrangements provide customers the right to access the Company’s hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement.

As of September 30, 2019, the Company had $0 in contract assets, as well as a contract liability of $20,838 to perform on contracts. As of December 31, 2018, the Company has $0 in contract assets, however there was a commitment receivable of $9,000 from a customer’s non-refundable two year (beginning August 28, 2018) service contract, as well as a contract liability of $39,585 to perform on that contract as of December 31, 2018. The contract liability will be reduced by $2,083 per month as the Company provides a non-exclusive, non-transferable license to use the CyberloQ Vault Services for the customer’s internal purposes and earns and recognizes related revenue.

	Contract Asset		Contract Liability
December 31, 2018	$	0	$	39,585
Less: revenue earned and recognized		-		(18,747	)
September 30, 2019	$	0	$	20,838

Fair Value Measurements

Fair Value Measurements

For certain financial instruments, including accounts receivable, accounts payable, accrued expenses, interest payable, advances payable and notes payable, the carrying amounts approximate fair value due to their relatively short maturities.

The Company has adopted FASB ASC 820-10, “Fair Value Measurements and Disclosures.” FASB ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with FASB ASC 815.

In February 2007, the FASB issued FAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities,” now known as ASC Topic 825-10 “Financial Instruments.” ASC Topic 825-10 permits entities to choose to measure many financial assets and financial liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. FASB ASC 825-10 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. The Company has adopted FASB ASC 825-10. The Company chose not to elect the option to measure the fair value of eligible financial assets and liabilities.

Segment Reporting

Segment Reporting

FASB ASC 280, “Segment Reporting” 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. The Company determined it has one operating segment.

Advertising

Advertising

Advertising costs are expensed as incurred. Advertising expense for the periods ended September 30, 2019 and 2018 were $4,769 and $11,418, respectively.

Income Taxes

Income Taxes

Deferred income taxes are provided using the liability method (in accordance with ASC 740) whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all-of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations. The Company is not aware of uncertain tax positions.

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Earnings per share is calculated in accordance with the FASB ASC 260-10, “Earnings Per Share.” Basic earnings (loss) per share is based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

At September 30, 2019 and December 31, 2018 the Company has 500,000 and 1,125,000 warrants as well as 1,200,000 and 1,200,000 options issued (respectively) that can be exercised and could be dilutive to the existing number of shares issued and outstanding. However, due to the Company’s periods of losses, the basic weighted average is equal to the diluted weighted average shares outstanding.

The computation of earnings per share of common stock is based on the weighted average number of shares outstanding at the date of the financial statements.

Stock Based Compensation

Stock Based Compensation

The Company adopted FASB ASC Topic 718 – Compensation – Stock Compensation (formerly SFAS 123R), which establishes 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 FASB ASC Topic 718 and values the equity securities based on the fair value of the security on the date of grant. Stock option and warrant awards are valued using the Black-Scholes option-pricing model, which according to ASC 820-10 is a level 3 value on the hierarchy. Black Scholes assumptions were calculated using stock price at grant date between $0.29 to $0.149; exercise prices between $0.15 to $0.20: life expectancy between ½ year to 5 years; and volatility ranging from 163% to 68%.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In July 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of ASC 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees and to supersede the guidance in ASC 505-50, Equity-Based Payments to Non-Employees. The accounting for nonemployee awards will now be substantially the same as current guidance for employee awards. ASU 2018-07 impacts all entities that issue awards to nonemployees in exchange for goods or services to be used or consumed in the grantor’s own operations, as well as to nonemployees of an equity method investee that provide goods or services to the investee that are used or consumed in the investee’s operations. ASU 2018-07 aligns the measurement-date guidance for employee and nonemployee awards using the current employee model, meaning that the measurement date for nonemployee equity-classified awards generally will be the grant date, while liability-classified awards generally will be the settlement date. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has determined that there is no retroactive effect on its financial reports from the adoption of this standard. The Company adopted ASU 2018-07 on January 1, 2019.

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Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	68,130,515	65,830,515
Common stock, shares outstanding	68,130,515	65,830,515
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	30,000	30,000
Preferred stock, shares issued	30,000	30,000
Preferred stock, shares outstanding	30,000	30,000
Common shares to be issued	3,333,333	3,483,333

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Consolidated Condensed Statements of Cash Flows (Unaudited) (Parenthetical)	9 Months Ended
	Sep. 30, 2018 USD ($) shares
Stock issued for payment | shares	60,000
Payment for accrued expenses | $	$ 6,000
Issuance [Member]
Stock issued for payment | shares	150,000
Payment | $	$ 12,000

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Summary of Significant Accounting Policies (Details Narrative)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019 USD ($) $ / shares	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) Segment $ / shares shares	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) shares
Cash FDIC insured amount
Research and development expense	0	$ 25,592	6,193	$ 27,092
Impairment losses on long-lived assets
Contract asset	0		0		0
Contract liability	20,838		20,838		39,585
Commitment receivable					$ 9,000
Contract with customer liability reduced	$ 2,083		$ 2,083
Operating segment | Segment			1
Advertising expenses			$ 4,769	$ 11,418
Income tax examination, likelihood percentage			Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.
Warrants [Member]
Computation of earnings per share, amount | shares			500,000		1,125,000
Options [Member]
Computation of earnings per share, amount | shares			1,200,000		1,200,000
Stock Option and Warrant Awards [Member]
Volatility, minimum			163.00%
Volatility, maximum			68.00%
Minimum [Member]
Estimated useful lives of fixed assets			3 years
Minimum [Member] | Stock Option and Warrant Awards [Member]
Stock price | $ / shares	$ 0.29		$ 0.29
Exercise prices | $ / shares	0.15		$ 0.15
Life expectancy			6 months
Maximum [Member]
Estimated useful lives of fixed assets			15 years
Maximum [Member] | Stock Option and Warrant Awards [Member]
Stock price | $ / shares	0.149		$ 0.149
Exercise prices | $ / shares	$ 0.20		$ 0.20
Life expectancy			5 years

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Going Concern (Details Narrative) - USD ($)	3 Months Ended							9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ (4,026,826)			$ (3,661,711)				$ (4,026,826)
Net loss	$ (115,220)	$ (106,910)	$ (142,984)	$ (205,111)	$ (473,623)	$ (157,377)	$ (204,348)	$ (365,115)	$ (835,623)

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Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2018	Jul. 28, 2017	Dec. 31, 2016	Dec. 29, 2014
Related Party Transaction [Line Items]
Acquisition value								$ 720,000
Payment for acquisition						$ 50,000
Note payable issued for acquisition						$ 150,000
Shares issued for software, shares						4,000,000
Warrants to acquire shares						1,250,000			1,250,000
Price per share							$ 0.15
Warrants	$ 51,592		$ 51,592	$ 51,592
Warrants revalued	96,643		96,643	96,643
Non-qualified stock option awards							1,200,000
Warrant term							5 years
Non expired warrant amount	0		0	0
Warrant expense	$ 27,855		$ 27,855	27,855
Options expense				$ 0
Warrants outstanding	500,000		500,000	500,000
Options outstanding	1,200,000		1,200,000	1,200,000
Convertible promissory notes	$ 35,000		$ 35,000	$ 35,000						$ 35,000
Settlement of notes payable						$ 50,000
Gain of Settlement of Debt					$ (12,000)	$ 151,324
Debt interest percentage	0.00%		0.00%	0.00%
Debt instrument, extended due date				Sep. 15, 2019
June 10, 2019 [Member]
Related Party Transaction [Line Items]
Repayments of debt				$ 5,000	$ 5,000
Warrant 1 [Member]
Related Party Transaction [Line Items]
Warrants to acquire shares	625,000		625,000	625,000
Warrants, maturity date	Jun. 19, 2018		Jun. 19, 2018	Jun. 19, 2018
Price per share	$ 0.20		$ 0.20	$ 0.20
Other Warrant [Member]
Related Party Transaction [Line Items]
Warrants to acquire shares	625,000		625,000	625,000
Warrants, maturity date	Jun. 28, 2018		Jun. 28, 2018	Jun. 28, 2018
Price per share	$ 0.20		$ 0.20	$ 0.20

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Fixed Assets (Tables)

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Software and computer equipment, recorded at cost, consisted of the following:

	September 30, 2019			December 31, 2018
Software and computer equipment	$	736,500		$	720,750
Less: accumulated depreciation		(261,421	)		(170,071	)
Property and equipment, net	$	475,079		$	550,679

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Going Concern

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

NOTE 3 – GOING CONCERN

The Company has incurred losses since Inception resulting in an accumulated deficit of $4,026,826 as of September 30, 2019 that includes a loss of $115,205 for the quarter ended September 30, 2019. Further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued.

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that could result from the outcome of this uncertainty.

The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

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Related Party Transactions

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 7 – RELATED PARTY TRANSACTIONS

Acquisition of Cyberloq™

During 2017, the Company acquired the CyberloQ™ banking fraud prevention technology. (the “Technology”) Pursuant to the asset purchase agreement, the prior license agreement between the Company and CartenTech LLC was terminated, and the Company is now the exclusive owner of the CyberloQ™ banking fraud prevention technology along with all intellectual property rights associated with the Technology which is copyrighted with the United States Copyright Office. The owner of CartenTech LLC is Mark Carten, who is also a director of ACRT and its Chief Technology Officer. On July 28, 2017, the Company purchased the Technology with a value of $720,000. As consideration for the acquisition of and all rights to the Technology, CartenTech LLC received: (a) payment of $50,000, (b) a note for $150,000, and (c) 4,000,000 shares of the Company’s common stock. The software is being depreciated over its useful life of six-years in conjunction with the Company’s depreciation policy.

Issuance of Warrants/Options

All warrants and options are fully vested and exercisable.

The following is a summary of the warrants issued in connection with common stock:

Date	11/30/15		11/30/15		6/28/16		Wtd. Avg. Life	Wtd. Avg.Price
Warrants		250,000		250,000		625,000			-
Exercise price	$	0.15	$	0.20	$	0.20			-
Expected life		4 year		5 year		3 year			-
Unexpired 12/31/18		250,000		250,000		625,000	3.11 years	$	0.1889
Unexpired 9/30/19		250,000		250,000		-	4.5 years	$	0.1750

The following is a summary of the options issued in connection with common stock:

Date	FY 2017		FY2018		Wtd. Avg. Life		Wtd. Avg. Price
Options		100,000		1,100,000		-
Exercise price	$	0.15	$	0.15		-
Expected life		5 year		5 year		-
Unexpired 12/31/18		100,000		1,100,000		5 years	$	0.15
Unexpired 9/30/19		100,000		1,100,000		2.25 years	$	0.15

In 2016 and 2017, Rex Schuette, one of the Company’s directors, was issued two warrants to potentially acquire a total of 1,250,000 additional shares of common stock. One warrant to potentially acquire an additional 625,000 shares of common stock expired on June 19, 2018, and the other warrant to potentially acquire an additional 625,000 shares of common stock expired on June 28, 2019. Both warrants are exercisable at $0.20 per share. The Company revalued the warrants based on information that has come forward that caused a recalculation of the 1,250,000 warrants value from the $51,592 (as disclosed in the December 31, 2017 footnote) to the corrected amount $96,643. This re-valuation had no material impact on 2017, given that the majority of expense was recorded in 2018 and 2019. The Company has issued non-qualified options to an independent contractor, during 2018 there have been 1,200,000 options issued to this contractor. All options are exercisable at $0.15 per share and have a 5 year life. All non-expired warrants are being expensed ratably through expiration; all non-expired options are expensed as stock compensation is vested. As of September 30, 2019, the remaining non-expired warrant amount to be expensed is $0; the amount expensed during the first, second, and third Quarter of 2019 for these warrants is $27,855 and for options is $0. The total number of warrants and options outstanding as of September 30, 2019 is 500,000 and 1,200,000 respectively.

Related Party Loans Payable

The following is a summary of related party loans payable:

	For the Periods Ended
	September 30, 2019		December 31, 2018
Loans payable – stockholders	$	35,000	$	45,000
Loans from related parties	$	0	$	0

Loans Payable - Stockholders

On December 29, 2014, the Company entered into a partially-convertible promissory note with a shareholder in the amount of $35,000. In January of 2015, the shareholder partially-exercised its conversion option, and in May of 2016 the shareholder exercised the remainder of its conversion option. In December 2017, the remaining unpaid principal and interest due on the note was settled in full for a $50,000 note and the Company recognized $151,324 in gain on settlement of debt. The $50,000 note has a current principle balance of $35,000, a stated interest rate of 0%, required payments of $5,000 on or before June 10, 2019, $5,000 on or before August 10, 2019 and the remainder due by the extended due date of September 15, 2019. As of September 30, 2019 the payments due have not been extended, the Company is in default of its obligation.

Loans from Related Parties

There are no loans from related parties at this time.

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Fixed Assets

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Fixed Assets

NOTE 2 – FIXED ASSETS

Software and computer equipment, recorded at cost, consisted of the following:

	September 30, 2019			December 31, 2018
Software and computer equipment	$	736,500		$	720,750
Less: accumulated depreciation		(261,421	)		(170,071	)
Property and equipment, net	$	475,079		$	550,679

Depreciation expense was $30,669 and $91,350; $30,012 and $90,037 for the three and nine month periods ended September 30, 2019 and 2018, respectively.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 20, 2019
Document And Entity Information
Entity Registrant Name	ADVANCED CREDIT TECHNOLOGIES INC
Entity Central Index Key	0001437517
Document Type	10-Q/A
Document Period End Date	Sep. 30, 2019
Amendment Flag	true
Amendment Description	Amendment No.1
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		68,130,515
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

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Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Common Stock (Issued) [Member]	Common Stock (Unissued) [Member]	Preferred Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	$ 61,982	$ 12,000	$ 30	$ 3,141,639	$ (2,621,252)	$ 594,399
Balance, shares at Dec. 31, 2017	61,982,181	150,000	30,000
Proceeds from Issuance of Common Stock	$ 1,000			99,000		100,000
Proceeds from Issuance of Common Stock, shares	1,000,000
Warrants Issued for Services				29,753		29,753
Shares issued for conversion of debt	$ 61			17,939		18,000
Shares issued for conversion of debt, shares	60,000
Net loss					(204,348)	(204,348)
Balance at Mar. 31, 2018	$ 63,043	$ 12,000	$ 30	3,288,331	(2,825,600)	537,804
Balance, shares at Mar. 31, 2018	63,042,181	150,000	30,000
Balance at Dec. 31, 2017	$ 61,982	$ 12,000	$ 30	3,141,639	(2,621,252)	594,399
Balance, shares at Dec. 31, 2017	61,982,181	150,000	30,000
Net loss						(835,623)
Balance at Sep. 30, 2018	$ 65,831	$ 100,000	$ 30	3,845,414	(3,456,600)	554,675
Balance, shares at Sep. 30, 2018	65,830,515		30,000
Balance at Dec. 31, 2017	$ 61,982	$ 12,000	$ 30	3,141,639	(2,621,252)	594,399
Balance, shares at Dec. 31, 2017	61,982,181	150,000	30,000
Balance at Dec. 31, 2018	$ 65,831	$ 198,000	$ 30	3,884,102	(3,661,711)	486,252
Balance, shares at Dec. 31, 2018	65,830,515		30,000
Balance at Mar. 31, 2018	$ 63,043	$ 12,000	$ 30	3,288,331	(2,825,600)	537,804
Balance, shares at Mar. 31, 2018	63,042,181	150,000	30,000
Proceeds from Issuance of Common Stock	$ 182			19,817		19,999
Proceeds from Issuance of Common Stock, shares	183,334
Warrants Issued for Services				29,751		29,751
Shares issued for conversion of debt	$ 150	$ (12,000)		11,850
Shares issued for conversion of debt, shares	150,000	(150,000)
Net loss					(157,377)	(157,377)
Balance at Jun. 30, 2018	$ 63,375		$ 30	3,349,749	(2,982,977)	430,177
Balance, shares at Jun. 30, 2018	63,375,515		30,000
Proceeds from Issuance of Common Stock	$ 2,020			199,980		202,000
Proceeds from Issuance of Common Stock, shares	2,020,000
Warrants Issued for Services				9,285		9,285
Unissued Common Stock		$ 100,000				100,000
Unissued Common Stock, shares
Shares issued for services	$ 436			82,864		83,300
Shares issued for services, shares	435,000
Options Issued for Services				203,536		203,536
Net loss					(473,623)	(473,623)
Balance at Sep. 30, 2018	$ 65,831	$ 100,000	$ 30	3,845,414	(3,456,600)	554,675
Balance, shares at Sep. 30, 2018	65,830,515		30,000
Warrants Issued for Services				9,285		9,285
Shares issued for conversion of debt
Shares issued for conversion of debt, shares
Unissued Common Stock		$ (150,000)				(150,000)
Unissued Common Stock, shares
Shares issued for services		$ 48,000				48,000
Shares issued for services, shares
Options Issued for Services				29,403		29,403
Stock subscriptions		200,000				200,000
Net loss					(205,111)	(205,111)
Balance at Dec. 31, 2018	$ 65,831	$ 198,000	$ 30	3,884,102	(3,661,711)	486,252
Balance, shares at Dec. 31, 2018	65,830,515		30,000
Proceeds from Issuance of Common Stock	$ 200			19,800		20,000
Proceeds from Issuance of Common Stock, shares	200,000
Warrants Issued for Services				9,285		9,285
Stock subscriptions		$ 75,000				75,000
Net loss					(142,984)	(142,984)
Balance at Mar. 31, 2019	$ 66,031	$ 273,000	$ 30	3,913,187	(3,804,695)	447,553
Balance, shares at Mar. 31, 2019	66,030,515		30,000
Balance at Dec. 31, 2018	$ 65,831	$ 198,000	$ 30	3,884,102	(3,661,711)	486,252
Balance, shares at Dec. 31, 2018	65,830,515		30,000
Net loss						(365,115)
Balance at Sep. 30, 2019	$ 68,131	$ 265,000	$ 30	4,148,372	(4,026,826)	454,707
Balance, shares at Sep. 30, 2019	68,130,515		30,000
Balance at Mar. 31, 2019	$ 66,031	$ 273,000	$ 30	3,913,187	(3,804,695)	447,553
Balance, shares at Mar. 31, 2019	66,030,515		30,000
Proceeds from Issuance of Common Stock	$ 1,250			123,750		125,000
Proceeds from Issuance of Common Stock, shares	1,250,000
Warrants Issued for Services				9,285		9,285
Shares issued for services	$ 300	$ (48,000)		47,700
Shares issued for services, shares	300,000
Stock subscriptions		25,000				25,000
Net loss					(106,910)	(106,910)
Balance at Jun. 30, 2019	$ 67,581	$ 250,000	$ 30	4,093,922	(3,911,605)	499,928
Balance, shares at Jun. 30, 2019	67,580,515		30,000
Proceeds from Issuance of Common Stock	$ 150			14,850		15,000
Proceeds from Issuance of Common Stock, shares	150,000
Warrants Issued for Services
Shares issued for services	$ 400			39,600		40,000
Shares issued for services, shares	400,000
Stock subscriptions		$ 15,000				15,000
Net loss					(115,221)	(115,220)
Balance at Sep. 30, 2019	$ 68,131	$ 265,000	$ 30	$ 4,148,372	$ (4,026,826)	$ 454,707
Balance, shares at Sep. 30, 2019	68,130,515		30,000

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Fixed Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 30,669	$ 30,012	$ 91,350	$ 90,037

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Stockholders' Equity (Details Narrative) - USD ($)		3 Months Ended							9 Months Ended		12 Months Ended
	Jun. 30, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Apr. 30, 2017
Class of Stock [Line Items]
Common stock - shares authorized		100,000,000			100,000,000				100,000,000		100,000,000
Common stock - par value		$ 0.001			$ 0.001				$ 0.001		$ 0.001
Number of common shares issued during period, value		$ 15,000	$ 125,000	$ 20,000		$ 202,000	$ 19,999	$ 100,000
Proceeds from issuance of common stock									$ 200,000	$ 322,000
Number of shares sold									2,000,000
Stock issued for services, amount		40,000			$ 48,000	83,300
Loss on settlement of debt										$ 12,000		$ (151,324)
Shares issued for conversion of debt, amount											$ 12,000
Shares issued for conversion of debt, shares											150,000
Common stock, shares issued		68,130,515			65,830,515				68,130,515		65,830,515
Common stock, shares outstanding		68,130,515			65,830,515				68,130,515		65,830,515
Preferred stock, shares authorized		30,000			30,000				30,000		30,000
Preferred stock, par value		$ 0.001			$ 0.001				$ 0.001		$ 0.001
Preferred stock , description									Certain rights, preferences, privileges and restrictions were established for the Series A Preferred Stock as follows: (a) the amount to be represented in stated capital at all times for each share of Series A Preferred Stock shall be its par value of $0.001 per share; (b) except as otherwise required by law, holders of shares of Series A Preferred Stock shall vote together with the common stock as a single class and the holders of Series A Preferred Stock shall be entitled to five-thousand (5,000) votes per share of Series A Preferred Stock; and (c) in the event of any liquidation, dissolution or winding-up of the Company, either voluntary or involuntary, the holders of the Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of assets of the Corporation to the holders of the common stock, the original purchase price paid for the Series A Preferred Stock. All 30,000 shares of the Series A Super Voting Preferred Stock were issued in 2017.
Preferred stock, shares issued		30,000			30,000				30,000		30,000
Officers [Member] | 2018 Service Agreement [Member]
Class of Stock [Line Items]
Stock issued for services, shares									300,000
Common Stock [Member]
Class of Stock [Line Items]
Proceeds from issuance of common stock											$ 322,000
Number of shares sold											3,203,334
Stock issued for services, amount											$ 83,330
Stock issued for services, shares											435,000
Loss on settlement of debt											$ 12,000
Common Stock for Legal Fees [Member]
Class of Stock [Line Items]
Number of common shares issued during period											60,000
Number of common shares issued during period, value											$ 6,000
Stock Subscription [Member]
Class of Stock [Line Items]
Number of common shares issued during period									3,333,333
Number of common shares issued during period, value									$ 35,000
Common Stock (Issued) [Member]
Class of Stock [Line Items]
Number of common shares issued during period	3,333,333
Number of common shares issued during period, value	$ 300,000
Collected amount towards that agreement									$ 265,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized													30,000
Preferred stock, par value													$ 0.001
Preferred stock, shares issued												30,000

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Fixed Assets - Schedule of Property and Equipment (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Software and computer equipment	$ 736,500	$ 720,750
Less: accumulated depreciation	(261,421)	(170,071)
Property and equipment, net	$ 475,079	$ 550,679

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Commitments (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Rent expense, monthly	$ 50
Commission agreements description	An agreement with a shareholder and officer of the Company stating that the executive will be entitled to a two-and-a half-percent (2.5%) commission of the gross revenue recorded by the Company for any customer contracts that are closed by the Company at the time of and during the duration of the agreement. An agreement with two sales managers granting each manager a 1% commission on the gross revenue of the Company.
Monthly fee	$ 100
Sales Person [Member]
Commission paid		$ 17,646
Minimum [Member]
Investors monthly residuals	2.00%
Maximum [Member]
Investors monthly residuals	5.00%

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Deposits

9 Months Ended

Sep. 30, 2019

Deposits [Abstract]

Deposits

NOTE 4 – DEPOSITS

The Company holds $10,000 down payment from a customer to secure future services.

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Subsequent Events

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

NOTE 8 – SUBSEQUENT EVENTS

The Company is not aware of any subsequent events through the date of this filing that require disclosure or recognition in these financial statements. In addition, there exists no information required to be disclosed by the Company in a report on Form 8-K during the three-month period ended September 30, 2019, but not already reported.

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Summary of Warrants Issued

The following is a summary of the warrants issued in connection with common stock:

Date	11/30/15		11/30/15		6/28/16		Wtd. Avg. Life	Wtd. Avg.Price
Warrants		250,000		250,000		625,000			-
Exercise price	$	0.15	$	0.20	$	0.20			-
Expected life		4 year		5 year		3 year			-
Unexpired 12/31/18		250,000		250,000		625,000	3.11 years	$	0.1889
Unexpired 9/30/19		250,000		250,000		-	4.5 years	$	0.1750

Summary of Options Issued

The following is a summary of the options issued in connection with common stock:

Date	FY 2017		FY2018		Wtd. Avg. Life		Wtd. Avg. Price
Options		100,000		1,100,000		-
Exercise price	$	0.15	$	0.15		-
Expected life		5 year		5 year		-
Unexpired 12/31/18		100,000		1,100,000		5 years	$	0.15
Unexpired 9/30/19		100,000		1,100,000		2.25 years	$	0.15

Schedule of Related Party Loans Payable

The following is a summary of related party loans payable:

	For the Periods Ended
	September 30, 2019		December 31, 2018
Loans payable – stockholders	$	35,000	$	45,000
Loans from related parties	$	0	$	0

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Consolidated Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue
Total Revenue	$ 22,814	$ 4,166	$ 95,699	$ 4,166
Operational Expense
Sales Commissions	18,763		28,704
Professional Fees	9,711	9,173	53,393	53,996
Research	0	25,592	6,193	27,092
Stock Compensation	0	296,120	18,570	355,623
Officer's Compensation	68,796	83,000	203,796	250,489
Travel and Entertainment	2,480	8,169	27,535	32,080
Rent	150	150	450	525
Depreciation	30,669	30,012	91,350	90,037
Computer and Internet	5,096	2,101	14,870	5,758
Office Supplies and Expenses	1,119	21,137	4,489	24,456
Other Operating Expenses	1,235	2,099	11,349	17,183
Total Operating Expenses	138,019	477,553	460,699	827,239
Loss from Operations	(115,205)	(473,387)	(365,000)	(823,073)
Other Income (Expense)
Gain (Loss) of Settlement of Debt				(12,000)
Interest	(15)	(236)	(115)	(550)
Total Other Income (Interest Expenses)	(15)	(236)	(115)	(12,550)
Provision for Income Taxes
Net Loss	$ (115,220)	$ (473,623)	$ (365,115)	$ (835,623)
Loss per common share-Basic and diluted	$ (0.002)	$ (0.007)	$ (0.005)	$ (0.013)
Weighted Average Number of Common Shares Outstanding Basic and diluted	67,647,182	65,369,348	67,016,626	64,162,570
Service [Member]
Revenue
Total Revenue	$ 22,814	$ 4,166	$ 95,699	$ 4,166

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Business

ACRT (“the Company’s TurnScor® and CyberloQ® products”, “We” or the “Company”) is a development-stage technology company focused on fraud prevention and credit management. The Company was incorporated in the State of Nevada on February 25, 2008.

The Company offers a proprietary software platform branded as CyberloQ® . While previously the Company licensed CyberloQ, in the third quarter of 2017, the Company acquired the CyberloQ technology and is now the exclusive owner of CyberloQ.

The CyberloQ Vault is a “cloud based’ security protocol that allows clients the ability to send/receive secure DATA without having to use traditional e-mail which is prone to a breach. This CyberloQ service uses cloud based encryption and a secure web portal to send/receive confidential data, the sender and receiver both must have authenticated their position within the prescribed geo coordinates as well as authenticate their mobile devices prior to sending/receiving any data. Thus rendering a hack or breach utterly useless for the encrypted data is unusable without the CyberloQ authentication component.

In addition to CyberloQ, the Company offers a web-based proprietary software platform under the brand name Turnscor® which allows customers to monitor and manage their credit from the privacy of their own homes. Although individuals can sign-up for Turnscor on their own, the Company also intends to market Turnscor to certain institutional clients, where appropriate, in conjunction with CyberloQ as a value-added benefit to offer their customers.

On June 15, 2017, the Company created a private limited company in the United Kingdom named CyberloQ Technologies LTD. CyberloQ Technologies LTD is a wholly-owned subsidiary of the Company, and any business that the Company has in the United Kingdom will be transacted through CyberloQ Technologies LTD. However, to date CyberloQ Technologies LTD has not had any operating activity or generated any revenue for the Company.

Basis of Presentation

The financial statements of the Company have been prepared using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America and the rules of the Securities and Exchange Commission. All amounts are presented in U.S. dollars. The Company has adopted a December 31 fiscal year end.

Certain information and note disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with a reading of the financial statements and notes thereto included in our Annual Report on From 10-K for the fiscal year ended December 31, 2018, as filed with the U.S. Securities and Exchange Commission.

Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All intercompany accounts and transactions have been eliminated.

Use of Estimates

In preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the year reported. Actual results may differ from these estimates. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Cash and Cash Equivalents

Cash equivalents are comprised of certain highly liquid investments with maturities of three months or less when purchased. The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. As of September 30, 2019 and December 31, 2018, the Company had no deposits in excess of federally-insured limits.

Research and Development, Software Development Costs, and Internal Use Software Development Costs

Software development costs are accounted for in accordance with ASC Topic No. 985. Software development costs are capitalized once technological feasibility of a product is established and such costs are determined to be recoverable. For products where proven technology exists, this may occur very early in the development cycle. Factors we consider in determining when technological feasibility has been established include (i) whether a proven technology exists; (ii) the quality and experience levels of the individuals developing the software; (iii) whether the software is similar to previously developed software which has used the same or similar technology; and (iv) whether the software is being developed with a proven underlying engine. Technological feasibility is evaluated on a product-by-product basis. Capitalized costs for those products that are canceled or abandoned are charged immediately to cost of sales. The recoverability of capitalized software development costs is evaluated on the expected performance of the specific products for which the costs relate.

Internal use software development costs are accounted for in accordance with ASC Topic No. 350 which requires the capitalization of certain external and internal computer software costs incurred during the application development stage. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality.

In accounting for website software development costs, we have adopted the provisions of ASC Topic No. 350. ASC Topic No. 350 provides that certain planning and training costs incurred in the development of website software be expensed as incurred, while application development stage costs are to be capitalized. During the quarters ended September 30, 2019 and 2018, we expensed $6,193 and $27,092, respectively, for expenditures on research and development. None was paid to related parties.

Fixed Assets, Intangibles and Long-Lived Assets

The Company records its fixed assets at historical cost. The Company expenses maintenance and repairs as incurred. Upon disposition of fixed assets, the gross cost and accumulated depreciation are written off and the difference between the proceeds and the net book value is recorded as a gain or loss on sale of assets. The Company depreciates its fixed assets over their respective estimated useful lives ranging from three to fifteen years.

The Company follows FASB 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. As of September 30, 2019 and December 31, 2018, the Company had not experienced impairment losses on its long-lived assets.

Revenue Recognition

Effective January 1, 2018, the Company adopted the requirements of ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09 or ASC 606). The adoption of ASC 606 resulted in changes to the Company’s accounting policies for revenue recognition previously recognized under ASC 605 (Legacy GAAP), as detailed below. However, since the Company had not earned any revenue prior to adopting ASC 606, this policy change had no effect on any financial statements from prior periods, thus no adjustments have been made to any prior periods related to the adoption of ASC 606.

Revenue Recognition Policy

Under ASC 606, the Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. To achieve the core principle of ASC 606, the Company performs the following steps:

1) Identify the contract(s) with a customer;

2) Identify the performance obligations in the contract;

3) Determine the transaction price;

4) Allocate the transaction price to the performance obligations in the contract; and

5) Recognize revenue when (or as) we satisfy a performance obligation.

The Company derives its revenue from two sources: (1) subscription revenues, which are comprised of subscription fees from customers utilizing the Company’s TurnScor®, CyberloQ™ and CyberloQ Vault products and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of certain performance obligations related to set-up, ingestion, consulting and training fees. The Company’s subscription arrangements provide customers the right to access the Company’s hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement.

As of September 30, 2019, the Company had $0 in contract assets, as well as a contract liability of $20,838 to perform on contracts. As of December 31, 2018, the Company has $0 in contract assets, however there was a commitment receivable of $9,000 from a customer’s non-refundable two year (beginning August 28, 2018) service contract, as well as a contract liability of $39,585 to perform on that contract as of December 31, 2018. The contract liability will be reduced by $2,083 per month as the Company provides a non-exclusive, non-transferable license to use the CyberloQ Vault Services for the customer’s internal purposes and earns and recognizes related revenue.

	Contract Asset		Contract Liability
December 31, 2018	$	0	$	39,585
Less: revenue earned and recognized		-		(18,747	)
September 30, 2019	$	0	$	20,838

Fair Value Measurements

For certain financial instruments, including accounts receivable, accounts payable, accrued expenses, interest payable, advances payable and notes payable, the carrying amounts approximate fair value due to their relatively short maturities.

The Company has adopted FASB ASC 820-10, “Fair Value Measurements and Disclosures.” FASB ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with FASB ASC 815.

In February 2007, the FASB issued FAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities,” now known as ASC Topic 825-10 “Financial Instruments.” ASC Topic 825-10 permits entities to choose to measure many financial assets and financial liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. FASB ASC 825-10 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. The Company has adopted FASB ASC 825-10. The Company chose not to elect the option to measure the fair value of eligible financial assets and liabilities.

Segment Reporting

FASB ASC 280, “Segment Reporting” 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. The Company determined it has one operating segment.

Advertising

Advertising costs are expensed as incurred. Advertising expense for the periods ended September 30, 2019 and 2018 were $4,769 and $11,418, respectively.

Income Taxes

Deferred income taxes are provided using the liability method (in accordance with ASC 740) whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all-of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations. The Company is not aware of uncertain tax positions.

Earnings (Loss) Per Share

Earnings per share is calculated in accordance with the FASB ASC 260-10, “Earnings Per Share.” Basic earnings (loss) per share is based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

At September 30, 2019 and December 31, 2018 the Company has 500,000 and 1,125,000 warrants as well as 1,200,000 and 1,200,000 options issued (respectively) that can be exercised and could be dilutive to the existing number of shares issued and outstanding. However, due to the Company’s periods of losses, the basic weighted average is equal to the diluted weighted average shares outstanding.

The computation of earnings per share of common stock is based on the weighted average number of shares outstanding at the date of the financial statements.

Stock Based Compensation

The Company adopted FASB ASC Topic 718 – Compensation – Stock Compensation (formerly SFAS 123R), which establishes 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 FASB ASC Topic 718 and values the equity securities based on the fair value of the security on the date of grant. Stock option and warrant awards are valued using the Black-Scholes option-pricing model, which according to ASC 820-10 is a level 3 value on the hierarchy. Black Scholes assumptions were calculated using stock price at grant date between $0.29 to $0.149; exercise prices between $0.15 to $0.20: life expectancy between ½ year to 5 years; and volatility ranging from 163% to 68%.

Recent Accounting Pronouncements

In July 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of ASC 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees and to supersede the guidance in ASC 505-50, Equity-Based Payments to Non-Employees. The accounting for nonemployee awards will now be substantially the same as current guidance for employee awards. ASU 2018-07 impacts all entities that issue awards to nonemployees in exchange for goods or services to be used or consumed in the grantor’s own operations, as well as to nonemployees of an equity method investee that provide goods or services to the investee that are used or consumed in the investee’s operations. ASU 2018-07 aligns the measurement-date guidance for employee and nonemployee awards using the current employee model, meaning that the measurement date for nonemployee equity-classified awards generally will be the grant date, while liability-classified awards generally will be the settlement date. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has determined that there is no retroactive effect on its financial reports from the adoption of this standard. The Company adopted ASU 2018-07 on January 1, 2019.