10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(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, 2016
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: 000-54898
BLACKCRAFT CULT, INC.
(Exact name of registrant as specified in its charter)
Nevada		30-0686483
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
2830 E. Via Martens, Anaheim, CA		92806
(Address of principal executive offices)		(Zip Code)
(949) 547-5916
(Registrant's telephone number, including area code)

Indicate by check mark whether the issuer (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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [  ]  No [X]

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    [  ]  (Do not check if a smaller reporting company)	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]

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

Common Stock, $0.001 par value	199,160,014 shares
(Class)	(Outstanding as at November 21, 2016)

BLACKCRAFT CULT, INC.

FORM 10-Q

For the quarter ended September 30, 2016

Table of Contents

	Page
PART I - FINANCIAL INFORMATION	3
Item 1. Financial Statements	3
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3. Quantitative and Qualitative Disclosure About Market Risks	16
Item 4. Controls and Procedures	16
PART II - OTHER INFORMATION	18
Item 1. Legal Proceedings	18
Item 1A. Risk Factors	18
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3. Defaults Upon Senior Securities	18
Item 4. Mine Safety Disclosures	18
Item 5. Other Information	18
Item 6. Exhibits	18
SIGNATURES	19

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission ("Commission").  While these statements reflect all normal recurring adjustments which are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto, which are included in the Company's December 31, 2015, Annual Report on Form 10-K previously filed with the Commission on April 14, 2016.

3

BLACKCRAFT CULT, INC.

BALANCE SHEETS

(UNAUDITED)

	September  30,		December 31,
	2016		2015
ASSETS
Current assets:
Cash and equivalents	$	493,980	$	283,174
Accounts receivable		2,077		305
Prepaid expenses		7,500		938
Inventory		239,954		118,625
Current portion of deferred tax asset		10,292		10,292
Total current assets		753,803		413,334
Fixed assets, net		117,248		134,308
Deposits		16,500		16,500
Deferred tax asset, net of current portion		69,307		72,626
Total assets	$	956,858	$	636,768
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	45,540	$	33,279
Accrued liabilities		4,777		77,152
Income tax payable		289,966		154,623
Note payable - short term		76,377		12,268
Total current liabilities		378,152		277,322
Long-term liabilities:
Accrued interest payable - related party		197		197
Notes payable - related party		15,453		15,453
Note payable - long term		43,536		53,253
Deferred tax liability		5,121		3,070
Total long-term liabilities		64,307		71,973
Total liabilities		480,967		349,295
Stockholders' equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively		-		-
Common stock, $0.001 par value, 6,666,600,000 shares authorized, 199,160,014 and 199,160,014, shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively		199,160		199,160
Additional paid-in capital		(52,333)		(52,333)
Retained earnings (deficit)		329,064		143,646
Total stockholders' equity		475,891		287,473
Total liabilities and stockholders' equity	$	956,858	$	636,768

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

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BLACKCRAFT CULT, INC.

STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2016		2015		2016		2015
Revenue
Product sales	$	491,605	$	423,653	$	1,480,696	$	1,185,932
Tour income		105,896		-		105,896		-
Shipping income		53,482		42,886		184,604		145,233
Total revenue		650,983		466,539		1,771,196		1,331,165
Cost of sales
Product cost of goods sold		190,887		173,276		567,474		343,370
Shipping costs		50,423		50,630		185,567		154,032
Total cost of sales		241,310		223,906		753,041		497,402
Gross profit		409,673		242,633		1,018,155		833,763
Operating expenses:
General and administrative		166,597		181,403		498,851		533,210
Executive compensation		92,884		21,465		166,577		80,990
Depreciation		5,686		2,403		17,060		3,252
Total operating expenses		265,167		205,271		682,488		617,452
Other expenses:
Interest expense		4,387		250		6,536		394
Currency conversion		-		-		-		-
Total other expenses		4,387		250		6,536		394
Net income (loss) before provision for income taxes		140,119		37,112		329,131		215,917
Income tax expense (Benefit for income taxes)		58,160		20,649		140,713		97,290
Net income	$	81,959	$	16,463	$	188,418	$	118,627
Weighted average number of common
shares outstanding - basic		199,160,014		199,160,014		199,160,014		199,160,014
Net loss per common share - basic		$0.00		$0.00		$0.00		$0.00

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

5

BLACKCRAFT CULT, INC.

STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the nine months		For the nine months
	ended		ended
	September 30,		September 30,
	2016		2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	230,885	$	118,627
Adjustment to reconcile to net loss to net cash used in operating activities:
Depreciation		17,060		3,252
Changes in operating assets and liabilities:
(Increase) Decrease in accounts receivable		(1,772)		(117)
(Increase) Decrease in inventory		(121,327)		(29,169)
(Increase) in prepaid expenses		(6,563)		(1,875)
(Increase) in income tax payable		140,713		97,290
Increase (Decrease) in accounts payable		12,260		(24,757)
Increase (Decrease) in accrued liabilities		(72,375)		(52,826)
Net cash used in operating activities		156,414		110,425
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of furniture and fixtures		-		(138,448)
Net cash used in investing activities		-		(138,448)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable - related party		-		-
Proceeds from notes payable - short term		97,000		16,016
Repayments to notes payable - short term		(33,479)		-
Proceeds from notes payable - long term		-		52,454
Repayments to notes payable - long term		(9,129)		-
Net cash provided by financing activities		54,392		68,470
NET CHANGE IN CASH		210,806		40,447
CASH AT BEGINNING OF PERIOD		283,174		222,836
CASH AT END OF PERIOD	$	493,980	$	263,283
SUPPLEMENTAL INFORMATION:
Interest paid	$	6,536	$	394
Income taxes paid	$	-	$	-

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

6

BLACKCRAFT CULT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, 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 generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the years ended December 31, 2015 and 2014 and notes thereto included in the Company’s 8-K current report. The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim period are not indicative of annual results.

Organization

The sole proprietorship was formed and a doing business as was filed on January 11, 2013 (Date of Inception) under the laws of the State of California, as DBA Blackcraft Cult.

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to exploration stage enterprises, and are expressed in U.S. dollars. The Company’s fiscal year end is December 31.

On January 15, 2014, the Company entered into Contribution Agreement with Blackcraft Emoji Incorporated, a California corporation (“BEI”), whereby they contributed 100% of the assets, liabilities and operations of the Company in exchange for 148,349,497 shares of BEI.  Prior to the Contribution Agreement, BEI had 1,000 shares issued and outstanding.

On March 21, 2014, BEI entered into an Acquisiton Agreement and Plan of Merger (the “Merger Agreement”) by and among Merculite Sub Co (“Sub Co”), a Nevada corporation and wholly owned subsidiary of BCC, and Blackcraft Cult, Inc. (“BCC”), a Nevada corporation; Sub Co and BEI being the constituent entities in the Merger.  Pursuant to the Merger Agreement BCC intends to issue 2,234,580 shares of its Rule 144 restricted common stock in exchange for 100% of BEI’s issued and outstanding common stock.  Pursuant to the terms of the Merger, Sub co will be merged with BEI and Sub Co will cease to exist and BEI will become a wholly owned-subsidiary of BCC. Subject to the terms and conditions set forth in the Merger Agreement, the Merger closed on March 27, 2014 (the “Closing Date”).  The Merger, upon closing will provide BCC with the ownership of 100% of BEI.

The Merger Agreement contains conditions to closing which include: (i) BCC issuing 2,234,580 shares of restricted common stock in exchange for 100% of the issued and outstanding common stock of BEI, and (ii) auditable financial statements of BEI, prepared pursuant to Regulation S-X. The audited financial statements of BEI shall be completed and presented to the Company for filing with a Form 8-K, as required by Item 2.01 and Item 9.01 of Form 8-K, within 4 days of the Closing Date of the Merger.

For accounting purposes, the acquisition of the BEI by BCC has been accounted for as a recapitalization, similar to a reverse acquisition except no goodwill is recorded, whereby the private company, BEI, in substance acquired a non-operational public company (BCC) with nominal assets and liabilities for the purpose of becoming a public company. Accordingly, BEI is considered the acquirer for accounting purposes and thus, the historical financials are primarily that of BEI.  As a result of this transaction, BCC, Inc. changed its business direction and is now a beverage business.  Additionally, the Company changed its name from Merculite Distributing, Inc. to Blackcraft Cult, Inc.

7

BLACKCRAFT CULT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Nature of operations

Currently, the Company’s operations are retail and wholesale sales of merchandise including clothing, hats, etc.

Inventory

Inventories are stated at the lower of cost (average cost) or market (net realizable value).  As of September 30, 2016, the Company had raw materials, work in process inventory, and finished goods inventory of $6,333, $10,316 and $223,305, respectively.

Revenue recognition

The Company’s records revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable.  The Company records revenue from the sale of merchandise upon shipment or delivery of the products to the customer.  The Company also records the shipping income when the products are sent to the customer.

Sales returns and allowances

The Company has a 14 day return/exchange policy and is accepted for items that are in a like new condition.  The return postage is the responsibility of the customer except for those items which are the result of the Company’s improper filling of the order.

Income taxes

For financial reporting purposes, the Company has elected to use the taxes payable method.  Under this method, income tax expense represents the amount of income tax the Company expects to pay based on the Company’s current year taxable income.  Income tax for the period is provided at the applicable tax rate on taxable income.

Use of estimates

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

Fair value of financial instruments

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2016. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.

Level 1: The preferred inputs to valuation efforts are “quoted prices in active markets for identical assets or liabilities,” with the caveat that the reporting entity must have access to that market.  Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.

Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three , situations.

Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as “unobservable,” and limits their use by saying they “shall be used to measure fair value to the extent that observable inputs are not available.” This category allows “for situations in which there is little, if any, market activity for the asset or liability at the measurement date”. Earlier in the standard, FASB explains that “observable inputs” are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.

8

BLACKCRAFT CULT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Stock-based compensation

The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards.  This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.

Recent pronouncements

The Company has evaluated recent accounting pronouncements through the filing date and believes that none of them will have a material effect on the Company’s financial statements.

NOTE 2 - FIXED ASSETS

The following is a summary of fixed assets:

	September 30,		December 31,
	2016		2015
Computer equipment	$	2,638	$	2,638
Machinery and equipment		3,127		3,127
Leasehold improvements		7,252		7,252
Vehicles		131,775		131,775
Fixed assets, total		144,792		144,792
Less: accumulated depreciation		(27,544)		(10,484)
Fixed assets, net	$	117,248	$	134,308

Depreciation expense for the nine months ended September 30, 2016 and 2015 was $17,060 and $3,252 respectively.

NOTE 3 - INCOME TAXES

For financial reporting purposes, income before taxes include the following components:

	September 30, 2016		September 30, 2015
United States	$	329,131	$	215,917
Total	$	329,131	$	215,917

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BLACKCRAFT CULT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 3 - INCOME TAXES (CONTINUED)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the Company’s deferred tax assets and liabilities as of September 30, 2016 and December 31, 2015 are as follows:

	September 30, 2016		December 31, 2015
Property and equipment bases and depreciation differences	$	5,121	$	3,070
Total deferred tax liabilities	$	5,121	$	3,070
Net operating loss carryforwards	$	79,599	$	82,918
Total deferred tax assets	$	79,599	$	82,918
Net deferred income taxes	$	74,478	$	79,848

The expense for income taxes consists of:

	September 30, 2016		September 30, 2015
Current:
Federal	$	111,611	$	67,458
State		23,732		28,781
	$	135,343	$	96,239
Deferred and other:
Federal	$	4,404	$	2,958
State		966		1,262
Total	$	140,713	$	100,459

The reconciliation of statutory tax rate to effective tax rate is:

	September 30, 2016	September 30, 2015
Statutory tax rate	42.84%	42.84%
Effect of lower tax brackets	-0.09%	-2.76%
Meals and entertainment	1.59%	1.39%
Change in valuation allowance	0.00%	0.00%
Federal benefit of state tax	-2.79%	-2.79%
Other	12.45%	12.45%
Effective tax rate	54.00%	51.13%

10

BLACKCRAFT CULT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 4 - NOTES PAYABLE AND NOTES PAYABLE - RELATED PARTY

As of September 30, 2016, the Company received a loan totaling $97,000 from a third party.  The Company was charged a one-time fee of $2,972 and is due upon demand.

As of September 30, 2016, the Company received a loan totaling $15,453 from an officer, director and shareholder.  The loan bears no interest and is due upon demand.

Interest expense for the nine months ended September 30, 2016 was $6,536.

NOTE 5 - NOTES PAYABLE FOR VEHICLE FINANCING OBLIGATION

On September 6, 2015, the Company acquired a new company vehicle on credit.  The cost basis is $131,775.  The Company paid $63,305 as a down payment.  The amount financed by the seller is $68,470, and the Company makes monthly payments of $1,335.  This note bears interest at the annual percentage rate of 6.25%, and the term is 60 months.

NOTE 6 - STOCKHOLDERS’ EQUITY

The Company is authorized to issue 6,666,600,000 shares of its $0.001 par value common stock and 10,000,000 shares of its $0.001 par value preferred stock.

During the nine months ended September 30, 2016, there have been no other issuances of common stock.

NOTE 7 - EFFECT OF PRIOR YEAR MISSTATEMENT

The Company has reviewed its deferred tax assets, deferred tax liabilities and income tax for the nine months ended September 30, 2015 and has determined that there was an immaterial error.  The Company believes that this prior year error is immaterial and has determined a restatement is not necessary.  The effect of the restatement is below:

	As Originally Filed		Adjustment		As Currently Filed
Deferred tax asset	$	-	$	84,025	$	84,025
Income tax payable		138,761		15,871		154,632
Deferred tax liability		-		1,569		1,569
Income tax expense	$	76,641	$	19,598	$	96,239

NOTE 8 - SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date the financial statements are issued and there are no material subsequent events to disclose.

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

Forward-Looking Statements

This document contains “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objections of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements may include the words “may,” “could,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made.  Except for our ongoing securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement. You should, however, consult further disclosures we make in future filings of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Although we believe the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements.  Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties.

Throughout this Quarterly Report references to “we”, “our”, “us”, “Blackcraft”, “BLCK”, “the Company”, and similar terms refer to Blackcraft Cult, Inc.

Available Information

We file annual, quarterly and other reports and other information with the SEC. You can read these SEC filings and reports over the Internet at the SEC's website at www.sec.gov or on our website at www.merculitedistributing.com. You can also obtain copies of the documents at prescribed rates by writing to the Public Reference Section of the SEC at 100 F Street, NE, Washington, DC 20549 on official business days between the hours of 10:00 am and 3:00 pm. Please call the SEC at (800) SEC-0330 for further information on the operations of the public reference facilities. We will provide a copy of our annual report to security holders, including audited financial statements, at no charge upon receipt to of a written request to us at Blackcraft Cult, Inc., 2830 E. Via Martens, Anaheim, CA 92806.

Background

On March 26, 2014, Blackcraft Cult, Inc., formerly Merculite Distribution, Inc., entered into a reverse triangular merger for the acquisition of 100% of ownership of Blackcraft Emoji Incorporated, a California corporation (“BEI”). Effective March 27, 2014, we completed the acquisition of BEI. As a result of acquiring BEI, our entire operations are currently based upon the operations of the assets acquired.

Overview of Operations

Blackcraft Cult, Inc. is a specialty online retailer of apparel, accessories, and gift items for men and women. Blackcraft is a lifestyle brand rooted in the ideal of self-realization being superior to religious indoctrination and other society enforced norms. The brand is darker in nature but positive in message. Our product line consists of a variety of clothing and accessories including T-shirts, sweatshirts, tank-top shirts, crewneck pullovers, women's leggings and crop tops, beanies, hats, patches, cell phone cases, candles, and coffee. We sell these products through our Internet website located at www.blackcraftcult.com (“Website”).  Consumers are able to access and purchase our products 24 hours a day from the convenience of a computer, Internet-enabled mobile telephone or other Internet-enabled devices. A significant portion of our sales are to customers located in the United States. During the nine months ended September 30, 2016 and 2015, no single customer accounted for more than 1% of our total net revenue.

12

Our business includes sales made to individual consumers, which are fulfilled from our warehouse in Orange, California. During the nine months ended September 30, 2016 and 2015, we fulfilled approximately 95% of our order volume through our warehouse, which generally ships between 80 and 100 packages per day.

We require verification of receipt of payment, or authorization from credit card or other payment vendors whose services we offer to our customers (such as PayPal and BillMeLater), before we ship products to consumers.

Results of Operation

Revenues and Costs of Goods Sold

During the three month periods ended September 30, 2016 and 2015, our revenues were distributed, as follows:

					Change
Revenue Source	2016		2015		$		%
Product sales	$	491,605	$	423,653	$	67,952	16 %
Tour income		105,896		-		105,896	-   %
Shipping income		53,482		42,886		10,596	25 %
Total Revenues	$	650,983	$	466,539	$	184,444	40 %

After taking into account cost of sales of $241,310 during the three months ended September 30, 2016, gross profit during the period totaled $409,673.  In comparison, cost of sales during the quarter ended September 30, 2015 was $223,906, leading to a gross profit of $242,633.  

During the nine month periods ended September 30, 2016 and 2015, our revenues were distributed, as follows:

					Change
Revenue Source	2016		2015		$		%
Product sales	$	1,480,696	$	1,185,932	$	294,764	25 %
Shipping income		105,896		-		105,896	-   %
Shipping income		184,604		145,233		39,371	27 %
Total Revenues	$	1,771,196	$	1,331,165	$	440,031	33 %

Cost of sales in the nine month period ended September 30, 2016 was $753,041, which was $255,639 higher than cost of sales of $497,402 in the comparable period ended September 30, 2015.  Resultant gross profit during the nine months ended September 30, 2016 and 2015 was $1,018,155 and $833,763, respectively.

There can be no assurance that we will continue to experience similar revenue growth in future periods, sustain current revenue levels or that we will be able to replace revenues from our current advertisers with revenues from others.

Operating Expenses

In the course of our operations, we incur operating expenses composed primarily of payroll and general and administrative costs.  General and administrative expenses are essentially the cost of doing business, and encompass, without limitation, the following: licenses; taxes; general office expenses, such as postage, supplies and printing; utilities; bank charges; website costs; and other miscellaneous expenditures not otherwise classified.  For the three months ended September 30, 2016 and 2015, the components of our operating expenses were, as follows:

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						Change
Expense	2016		2015			$	%
General and administrative	$	166,597	$	181,403	$	(14,806)	(8)  %
Executive compensation		92,884		21,465		71,419	333 %
Depreciation		5,686		2,403		3,283	137 %
Total Operating Expenses	$	265,167	$	205,271	$	59,896	29 %

In the three months ended September 30, 2016, operating expenses were $265,167, as compared to $205,271 in the three months ended September 30, 2015. The $59,896, or 29%, increase in operating expenses for the three months ended September 30, 2016 was primarily attributable to an increase in executive compensation paid to our officers and directors compared to the comparable period ended September 30, 2015.

For the nine months ended September 30, 2016 and 2015, the components of our operating expenses were, as follows:

						Change
Expense	2016		2015			$	%
General and administrative	$	498,851	$	533,210	$	(34,359)	(6)%
Executive compensation		166,577		80,990		85,587	106%
Depreciation		17,060		3,252		13,808	425%
Total Operating Expenses	$	682,488	$	617,452	$	65,036	11 %

In the nine months ended September 30, 2016, operating expenses were $682,488, as compared to $617,452 in the nine months ended September 30, 2015. The $65,036, or 11%, increase in operating expenses for the nine months ended September 30, 2016 was primarily attributable to an increase in executive compensation paid to our officers and directors.

Our management cautions that the variations in all expense categories are not accurate indications of long-term trends and ongoing expenses will continue to vary drastically from period to period.  

Income Taxes and Net Income

During the three months ended September 30, 2016, we realized income before provision for income taxes of $140,119 compared to income of $37,112 in the comparable period ended September 30, 2015.  After deducting income tax expense of $58,160, net income in quarter ended September 30, 2016 was $81,959.  During the three months ended September 30, 2015, we had net income of $16,463, after accounting for income taxes during the period of $20,649.

In the nine months ended September 30, 2016, our net income totaled $188,418 after deducting provision for income taxes of $140,713.  In comparison, we realized net income of $118,627 during the nine month period ended September 30, 2015, after income tax expense of $97,290.

Seasonality of Business and Quarterly Results

Our business varies with general seasonal trends that are characteristic of the retail and apparel industries. As a result, we generate a higher percentage of our annual net sales and profitability in the fourth quarter of our fiscal year, which includes the holiday selling season, compared to other quarters of our fiscal year. If for any reason our sales were below seasonal norms during the fourth quarter of our fiscal year, our annual operating results would be negatively impacted. Because of the seasonality of our business, results for any quarter are not necessarily indicative of results that may be achieved for a full fiscal year.

14

Liquidity and Capital Resources

As of September 30, 2016, we had $493,980 of cash on hand compared to cash on hand of $263,283 as of September 30, 2015.  This increase in cash was primarily generated organically through operating activities, as well as a proceeds from short term notes payable in the amount of $97,000.  During the nine months ended September 30, 2016, we generated cash from operating activities of $156,414, compared to generating cash from operating activities of $110,425 in the comparable period ended September 30, 2015.  The increase in cash generated from operations is primarily attributable to acquisition of inventory offset by an increase of income tax payable.

Cash utilized in investing activities was $0 and $138,448 during the periods ended September 30, 2016 and 2015, respectively.  Cash used was due primarily to purchase a company vehicle during 2015.

Cash provided by financing activities was $54,392 and $68,470 for the nine months periods ended September 30, 2016 and 2015, respectively.  Cash provided by financing activities was due primarily to the issuance of notes payable in the amount of $97,000.

Current and Future Sources of Liquidity

Our principal sources of liquidity are cash flows generated from operations, and our existing cash and cash equivalents.  We believe that the cash and cash equivalents currently on hand and expected cash flows from future operations will be sufficient to continue operations for at least the next twelve months. We expect that continued focus on acquiring new customers will enable us to increase profitable revenues and continue to generate cash flows from operating activities.

If we do not generate sufficient cash from operations, face unanticipated cash needs or do not otherwise have sufficient cash, we have the ability to reduce certain expenses depending on the level of business operation.

Based on current expectations, we believe that our existing cash and our net cash provided by operating activities and other potential sources of cash will be sufficient to meet our cash requirements. Our ability to meet these requirements will depend on our ability to generate cash in the future, which is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.

We expect to use our cash to invest in our core business, including new product innovations, advertising and marketing. Other than normal operating expenses, cash requirements for fiscal 2016 are expected to consist primarily of capital expenditures and additional investments in advertising and marketing efforts.

If our own financial resources and current cash-flows from operations are insufficient to satisfy our capital requirements, we anticipate obtaining additional financing to fund operations through common stock offerings, to the extent available, to augment our working capital. In the future we need to generate sufficient revenues in order to eliminate or reduce the need to sell additional stock. Our failure to generate sufficient revenues or profits or to obtain additional financing or raise additional capital could have a material adverse effect on our operations and on our ability to achieve our intended business objectives. Any projections of future cash needs and cash flows are subject to substantial uncertainty.

Our management does not expect to incur research and development costs.

We do not have any off-balance sheet arrangements.

We currently do not own any significant plant or equipment that we would seek to sell in the near future.  

We have not paid for expenses on behalf of any of our directors.  Additionally, we believe that this fact shall not materially change.

15

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The Securities and Exchange Commission ("SEC") has defined a company's critical accounting policies as the ones that are most important to the portrayal of the company's financial condition and results of operations, and which require the company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, we have identified the critical accounting policies, estimates and judgments addressed below. We also have other key accounting policies, which involve the use of estimates, judgments, and assumptions that are significant to understanding our results. For additional information, see Note 1 Summary of Significant Accounting Policies in our Notes to Financial Statements. Although we believe that our estimates, assumptions, and judgments are reasonable, they are based upon information presently available. Actual results may differ significantly from these estimates. Our critical accounting policies are as follows:

Revenue Recognition

We derive our revenue from merchandise sales. Revenue is recognized when the following revenue recognition criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price or fee revenue earned is fixed or determinable; and (4) collection of the resulting receivable is reasonably assured. We record revenue from the sale of merchandise upon shipment or delivery of the products to the customer.  We also record the shipping income when the products are sent to the customer.

Recent pronouncements

The Company has evaluated recent accounting pronouncements through the filing date and believes that none of them will have a material effect on the Company’s financial statements.

Off-Balance Sheet Arrangements

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

Item 3. Quantitative and Qualitative Disclosure About Market Risks

This item is not required for smaller reporting companies.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures

As required by Rule 13a-15 under the Exchange Act, as of the end of the Company’s last fiscal quarter, the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures.  This evaluation was carried out under the supervision and with the participation of the Company’s current management, including the Company’s Chief Executive Officer and Principal Financial Officer (Principal Financial and Accounting Officer), who concluded that the Company’s disclosure controls and procedures are effective.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in the Company reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Company reports filed under the Exchange Act is accumulated and communicated to management, including the Company’s Chief Executive Officer and Principal Financial Officer (Principal Financial and Accounting Officer), as appropriate, to allow timely decisions regarding required disclosure.

16

Changes in internal control over financial reporting.

Management reviews the Company’s system of internal control over financial reporting and makes changes to the Company’s processes and systems to improve controls and increase efficiency, while ensuring that the Company maintains an effective internal control environment.  Changes may include such activities as implementing new, more efficient systems, consolidating activities and migrating processes.

During the Company’s last fiscal quarter, there was no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

17

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are not a party to any material legal proceedings.

Item 1A. Risk Factors

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter ended September 30, 2016, we did not have any sales of unregistered securities.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number	Name and/or Identification of Exhibit
31	Rule 13a-14(a)/15d-14(a) Certifications
32	Certification under Section 906 of the Sarbanes-Oxley Act (18 U.S.C. Section 1350)
101	Interactive Data File
	(INS) XBRL Instance Document
	(SCH) XBRL Taxonomy Extension Schema Document
	(CAL) XBRL Taxonomy Extension Calculation Linkbase Document
	(DEF) XBRL Taxonomy Extension Definition Linkbase Document
	(LAB) XBRL Taxonomy Extension Label Linkbase Document
	(PRE) XBRL Taxonomy Extension Presenation Linkbase Document

18

SIGNATURES

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

BLACKCRAFT CULT, INC.
(Registrant)
Signature	Title	Date
/s/ James Somers	President	November 21, 2016
James Somers

19

EX-31.1

Exhibit No. 31.1

EX-31.2

Exhibit No. 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

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

I, Robert Schubenski, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Blackcraft Cult, Inc.;

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

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

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

a.

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

b.

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

c.

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

d.

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

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

a.

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

b.

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

Date:  November 21, 2016	/s/ Robert Schubenski
	Robert Schubenski Principal Financial Officer

EX-32.1

Exhibit No. 32.1

CERTIFICATION OF PRINCIPAL 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 Blackcraft Cult, Inc., a Delaware corporation (the “Company”), on Form 10Q for the period ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the Principal Executive Officer, hereby certifies pursuant to 18 U.S.C. Sec. 1350 as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 that, to the undersigned’s knowledge:

(1)   the Report of the Company filed today containing the financial statements fully complies with the requirements of Section 13(a) or (15(d) of the Securities Exchange Act of 1934, as amended; and

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

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Date:  November 21, 2016	/s/ Robert Schubenski
	Chief Executive Officer

EX-32.2

Exhibit No. 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL 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 Blackcraft Cult, Inc., a Delaware corporation (the “Company”), on Form 10Q for the year ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the Principal Financial Officer, hereby certifies pursuant to 18 U.S.C. Sec. 1350 as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 that, to the undersigned’s knowledge:

(1)   the Report of the Company filed today containing the financial statements fully complies with the requirements of Section 13(a) or (15(d) of the Securities Exchange Act of 1934, as amended; and

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

 A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Date: November 21, 2016	/s/ Robert Schubenski
	Robert Schubenski Principal Financial Officer

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2016 shares
Document and Entity Information:
Entity Registrant Name	BLACKCRAFT CULT, INC.
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Entity Central Index Key	0001521549
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	199,160,014
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Trading Symbol	blck

XML

Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalent	$ 493,980	$ 283,174
Accounts receivable	2,077	305
Prepaid expenses	7,500	938
Inventory	239,954	118,625
Deferred tax asset, current	10,292	10,292
Total current assets	753,803	413,334
Other assets:
Fixed assets, net	117,248	134,308
Deposits	16,500	16,500
Deferred tax asset, net of current	69,307	72,626
Total other assets	203,055	223,434
Total assets	956,858	636,768
Current liabilities:
Accounts payable	45,540	33,279
Accrued liabilities	4,777	77,152
Income tax payable	289,966	154,623
Note payable - short term	76,377	12,268
Total current liabilities	416,660	277,322
Non-current liabilities:
Accrued interest payable - related party	197	197
Note payable - related party	15,453	15,453
Note payable - long term	43,536	53,253
Deferred tax liabilities	5,121	3,070
Total non-current liabilities	64,307	71,973
Total liabilities	480,967	349,295
Stockholders' equity (deficit)
Preferred stock value
Common stock value	199,160	199,160
Additional paid-in capital	(52,333)	(52,333)
Retained earnings (deficit)	329,064	140,646
Total stockholders' equity (deficit)	475,891	287,473
Total liabilities and stockholders' equity (deficit)	$ 956,858	$ 636,768

XML

Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Balance Sheet
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	6,666,600,000	6,666,600,000
Common stock, shares issued	199,160,014	199,160,014
Common stock, shares outstanding	199,160,014	199,160,014

XML

Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue
Product sales	$ 491,605	$ 423,653	$ 1,480,696	$ 1,185,932
Tour income	105,896		105,896
Shipping income	53,482	42,886	184,604	145,233
Total revenue	650,983	466,539	1,771,196	1,331,165
Cost of sales
Product cost of goods sold	190,887	173,276	567,474	343,370
Shipping costs	50,423	50,630	185,567	154,032
Total cost of sales	241,310	223,906	753,041	497,402
Gross profit	409,673	242,633	1,018,155	833,763
Operating expenses:
General and administrative	166,597	181,403	498,851	533,210
Executive compensation	92,884	21,465	166,577	80,990
Depreciation	5,686	2,403	17,060	3,252
Total operating expenses	265,167	205,271	682,488	617,452
Other expenses:
Interest expense	4,387	250	6,536	394
Total other expenses	4,387	250	6,536	394
Net income (loss) before provision for income taxes	140,119	37,112	329,131	215,917
Income tax expense	58,160	20,649	140,713	97,290
Net income (loss)	$ 81,959	$ 16,463	$ 188,418	$ 118,627
Net income (loss) per share - basic	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average number of common shares outstanding - basic	199,160,014	199,160,014	199,160,014	199,160,014

XML

Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net income (loss)	$ 188,418	$ 118,627
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation	17,060	3,252
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(1,772)	(117)
(Increase) decrease in inventory	(121,327)	(29,169)
(Increase) decrease in prepaid expenses	(6,563)	(1,875)
Increase (decrease) in income tax payable	140,713	97,290
Increase (decrease) in accounts payable	12,260	(24,757)
Increase (decrease) in accrued liabilities	(72,375)	(52,826)
Net cash provided (used) by operating activities	156,414	110,425
Cash flows from financing activities
Proceeds from notes payable - short term	97,000	16,016
Repayment of notes payable - short term	33,479
Proceeds from notes payable - long term		52,454
Repayment of notes payable - long term	9,129
Net cash provided (used) by financing activities	54,392	68,470
Net increase (decrease) in cash	210,806	40,447
Cash - beginning of the period	283,174	222,836
Cash - ending of the period	493,980	263,283
Supplemental disclosures
Interest paid	6,536	394
Income taxes paid

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Notes

Summary of Significant Accounting Policies

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, 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 generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the years ended December 31, 2015 and 2014 and notes thereto included in the Company’s 8-K current report. The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim period are not indicative of annual results.

Organization

The sole proprietorship was formed and a doing business as was filed on January 11, 2013 (Date of Inception) under the laws of the State of California, as DBA Blackcraft Cult.

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to exploration stage enterprises, and are expressed in U.S. dollars. The Company’s fiscal year end is December 31.

On January 15, 2014, the Company entered into Contribution Agreement with Blackcraft Emoji Incorporated, a California corporation (“BEI”), whereby they contributed 100% of the assets, liabilities and operations of the Company in exchange for 148,349,497 shares of BEI.  Prior to the Contribution Agreement, BEI had 1,000 shares issued and outstanding.

On March 21, 2014, BEI entered into an Acquisiton Agreement and Plan of Merger (the “Merger Agreement”) by and among Merculite Sub Co (“Sub Co”), a Nevada corporation and wholly owned subsidiary of BCC, and Blackcraft Cult, Inc. (“BCC”), a Nevada corporation; Sub Co and BEI being the constituent entities in the Merger.  Pursuant to the Merger Agreement BCC intends to issue 2,234,580 shares of its Rule 144 restricted common stock in exchange for 100% of BEI’s issued and outstanding common stock.  Pursuant to the terms of the Merger, Sub co will be merged with BEI and Sub Co will cease to exist and BEI will become a wholly owned-subsidiary of BCC. Subject to the terms and conditions set forth in the Merger Agreement, the Merger closed on March 27, 2014 (the “Closing Date”).  The Merger, upon closing will provide BCC with the ownership of 100% of BEI.

The Merger Agreement contains conditions to closing which include: (i) BCC issuing 2,234,580 shares of restricted common stock in exchange for 100% of the issued and outstanding common stock of BEI, and (ii) auditable financial statements of BEI, prepared pursuant to Regulation S-X. The audited financial statements of BEI shall be completed and presented to the Company for filing with a Form 8-K, as required by Item 2.01 and Item 9.01 of Form 8-K, within 4 days of the Closing Date of the Merger.

For accounting purposes, the acquisition of the BEI by BCC has been accounted for as a recapitalization, similar to a reverse acquisition except no goodwill is recorded, whereby the private company, BEI, in substance acquired a non-operational public company (BCC) with nominal assets and liabilities for the purpose of becoming a public company. Accordingly, BEI is considered the acquirer for accounting purposes and thus, the historical financials are primarily that of BEI.  As a result of this transaction, BCC, Inc. changed its business direction and is now a beverage business.  Additionally, the Company changed its name from Merculite Distributing, Inc. to Blackcraft Cult, Inc.

Nature of operations

Currently, the Company’s operations are retail and wholesale sales of merchandise including clothing, hats, etc.

Inventory

Inventories are stated at the lower of cost (average cost) or market (net realizable value).  As of September 30, 2016, the Company had raw materials, work in process inventory, and finished goods inventory of $6,333, $10,316 and $223,305, respectively.

Revenue recognition

The Company’s records revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable.  The Company records revenue from the sale of merchandise upon shipment or delivery of the products to the customer.  The Company also records the shipping income when the products are sent to the customer.

Sales returns and allowances

The Company has a 14 day return/exchange policy and is accepted for items that are in a like new condition.  The return postage is the responsibility of the customer except for those items which are the result of the Company’s improper filling of the order.

Income taxes

For financial reporting purposes, the Company has elected to use the taxes payable method.  Under this method, income tax expense represents the amount of income tax the Company expects to pay based on the Company’s current year taxable income.  Income tax for the period is provided at the applicable tax rate on taxable income.

Use of estimates

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

Fair value of financial instruments

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2016. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.

Level 1: The preferred inputs to valuation efforts are “quoted prices in active markets for identical assets or liabilities,” with the caveat that the reporting entity must have access to that market.  Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.

Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three , situations.

Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as “unobservable,” and limits their use by saying they “shall be used to measure fair value to the extent that observable inputs are not available.” This category allows “for situations in which there is little, if any, market activity for the asset or liability at the measurement date”. Earlier in the standard, FASB explains that “observable inputs” are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.

Stock-based compensation

The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards.  This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.

Recent pronouncements

The Company has evaluated recent accounting pronouncements through the filing date and believes that none of them will have a material effect on the Company’s financial statements.

XML

Fixed Assets Disclosure

9 Months Ended

Sep. 30, 2016

Notes

Fixed Assets Disclosure

NOTE 2 - FIXED ASSETS

The following is a summary of fixed assets:

	September 30,		December 31,
	2016		2015
Computer equipment	$	2,638	$	2,638
Machinery and equipment		3,127		3,127
Leasehold improvements		7,252		7,252
Vehicles		131,775		131,775
Fixed assets, total		144,792		144,792
Less: accumulated depreciation		(27,544)		(10,484)
Fixed assets, net	$	117,248	$	134,308

Depreciation expense for the nine months ended September 30, 2016 and 2015 was $17,060 and $3,252 respectively.

XML

Income Taxes Disclosure

9 Months Ended

Sep. 30, 2016

Notes

Income Taxes Disclosure

NOTE 3 - INCOME TAXES

For financial reporting purposes, income before taxes include the following components:

	September 30, 2016		September 30, 2015
United States	$	329,131	$	215,917
Total	$	329,131	$	215,917

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the Company’s deferred tax assets and liabilities as of September 30, 2016 and December 31, 2015 are as follows:

	September 30, 2016		December 31, 2015
Property and equipment bases and depreciation differences	$	5,121	$	3,070
Total deferred tax liabilities	$	5,121	$	3,070
Net operating loss carryforwards	$	79,599	$	82,918
Total deferred tax assets	$	79,599	$	82,918
Net deferred income taxes	$	74,478	$	79,848

The expense for income taxes consists of:

	September 30, 2016		September 30, 2015
Current:
Federal	$	111,611	$	67,458
State		23,732		28,781
	$	135,343	$	96,239
Deferred and other:
Federal	$	4,404	$	2,958
State		966		1,262
Total	$	140,713	$	100,459

The reconciliation of statutory tax rate to effective tax rate is:

	September 30, 2016	September 30, 2015
Statutory tax rate	42.84%	42.84%
Effect of lower tax brackets	-0.09%	-2.76%
Meals and entertainment	1.59%	1.39%
Change in valuation allowance	0.00%	0.00%
Federal benefit of state tax	-2.79%	-2.79%
Other	12.45%	12.45%
Effective tax rate	54.00%	51.13%

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Notes Payable - Related Party, Disclosure

9 Months Ended

Sep. 30, 2016

Notes

Notes Payable - Related Party, Disclosure

NOTE 4 - NOTES PAYABLE AND NOTES PAYABLE - RELATED PARTY

As of September 30, 2016, the Company received a loan totaling $97,000 from a third party.  The Company was charged a one-time fee of $2,972 and is due upon demand.

As of September 30, 2016, the Company received a loan totaling $15,453 from an officer, director and shareholder.  The loan bears no interest and is due upon demand.

Interest expense for the nine months ended September 30, 2016 was $6,536.

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Notes Payable For Vehicle Financing Obligation

9 Months Ended

Sep. 30, 2016

Notes

Notes Payable For Vehicle Financing Obligation

NOTE 5 - NOTES PAYABLE FOR VEHICLE FINANCING OBLIGATION

On September 6, 2015, the Company acquired a new company vehicle on credit.  The cost basis is $131,775.  The Company paid $63,305 as a down payment.  The amount financed by the seller is $68,470, and the Company makes monthly payments of $1,335.  This note bears interest at the annual percentage rate of 6.25%, and the term is 60 months.

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Stockholders' Equity Disclosure

9 Months Ended

Sep. 30, 2016

Notes

Stockholders' Equity Disclosure

NOTE 6 - STOCKHOLDERS’ EQUITY

The Company is authorized to issue 6,666,600,000 shares of its $0.001 par value common stock and 10,000,000 shares of its $0.001 par value preferred stock.

During the nine months ended September 30, 2016, there have been no other issuances of common stock.

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Effect of Prior Year Misstatement

9 Months Ended

Sep. 30, 2016

Notes

Effect of Prior Year Misstatement

NOTE 7 - EFFECT OF PRIOR YEAR MISSTATEMENT

The Company has reviewed its deferred tax assets, deferred tax liabilities and income tax for the nine months ended September 30, 2015 and has determined that there was an immaterial error.  The Company believes that this prior year error is immaterial and has determined a restatement is not necessary.  The effect of the restatement is below:

	As Originally Filed		Adjustment		As Currently Filed
Deferred tax asset	$	-	$	84,025	$	84,025
Income tax payable		138,761		15,871		154,632
Deferred tax liability		-		1,569		1,569
Income tax expense	$	76,641	$	19,598	$	96,239

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Subsequent Events

9 Months Ended

Sep. 30, 2016

Notes

Subsequent Events

NOTE 8 - SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date the financial statements are issued and there are no material subsequent events to disclose.

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Summary of Significant Accounting Policies: Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Basis of Presentation

Basis of presentation

The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, 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 generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the years ended December 31, 2015 and 2014 and notes thereto included in the Company’s 8-K current report. The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim period are not indicative of annual results.

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Summary of Significant Accounting Policies: Organization (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Organization

Organization

The sole proprietorship was formed and a doing business as was filed on January 11, 2013 (Date of Inception) under the laws of the State of California, as DBA Blackcraft Cult.

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to exploration stage enterprises, and are expressed in U.S. dollars. The Company’s fiscal year end is December 31.

On January 15, 2014, the Company entered into Contribution Agreement with Blackcraft Emoji Incorporated, a California corporation (“BEI”), whereby they contributed 100% of the assets, liabilities and operations of the Company in exchange for 148,349,497 shares of BEI.  Prior to the Contribution Agreement, BEI had 1,000 shares issued and outstanding.

On March 21, 2014, BEI entered into an Acquisiton Agreement and Plan of Merger (the “Merger Agreement”) by and among Merculite Sub Co (“Sub Co”), a Nevada corporation and wholly owned subsidiary of BCC, and Blackcraft Cult, Inc. (“BCC”), a Nevada corporation; Sub Co and BEI being the constituent entities in the Merger.  Pursuant to the Merger Agreement BCC intends to issue 2,234,580 shares of its Rule 144 restricted common stock in exchange for 100% of BEI’s issued and outstanding common stock.  Pursuant to the terms of the Merger, Sub co will be merged with BEI and Sub Co will cease to exist and BEI will become a wholly owned-subsidiary of BCC. Subject to the terms and conditions set forth in the Merger Agreement, the Merger closed on March 27, 2014 (the “Closing Date”).  The Merger, upon closing will provide BCC with the ownership of 100% of BEI.

The Merger Agreement contains conditions to closing which include: (i) BCC issuing 2,234,580 shares of restricted common stock in exchange for 100% of the issued and outstanding common stock of BEI, and (ii) auditable financial statements of BEI, prepared pursuant to Regulation S-X. The audited financial statements of BEI shall be completed and presented to the Company for filing with a Form 8-K, as required by Item 2.01 and Item 9.01 of Form 8-K, within 4 days of the Closing Date of the Merger.

For accounting purposes, the acquisition of the BEI by BCC has been accounted for as a recapitalization, similar to a reverse acquisition except no goodwill is recorded, whereby the private company, BEI, in substance acquired a non-operational public company (BCC) with nominal assets and liabilities for the purpose of becoming a public company. Accordingly, BEI is considered the acquirer for accounting purposes and thus, the historical financials are primarily that of BEI.  As a result of this transaction, BCC, Inc. changed its business direction and is now a beverage business.  Additionally, the Company changed its name from Merculite Distributing, Inc. to Blackcraft Cult, Inc.

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Summary of Significant Accounting Policies: Inventory Policy (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Inventory Policy

Inventory

Inventories are stated at the lower of cost (average cost) or market (net realizable value).  As of September 30, 2016, the Company had raw materials, work in process inventory, and finished goods inventory of $6,333, $10,316 and $223,305, respectively.

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Summary of Significant Accounting Policies: Revenue Recognition Policy (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Revenue Recognition Policy

Revenue recognition

The Company’s records revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable.  The Company records revenue from the sale of merchandise upon shipment or delivery of the products to the customer.  The Company also records the shipping income when the products are sent to the customer.

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Summary of Significant Accounting Policies: Sales Returns and Allowances Policy (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Sales Returns and Allowances Policy

Sales returns and allowances

The Company has a 14 day return/exchange policy and is accepted for items that are in a like new condition.  The return postage is the responsibility of the customer except for those items which are the result of the Company’s improper filling of the order.

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Summary of Significant Accounting Policies: Income Taxes Policy (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Income Taxes Policy

Income taxes

For financial reporting purposes, the Company has elected to use the taxes payable method.  Under this method, income tax expense represents the amount of income tax the Company expects to pay based on the Company’s current year taxable income.  Income tax for the period is provided at the applicable tax rate on taxable income.

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Summary of Significant Accounting Policies: Use of Estimates (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Use of Estimates

Use of estimates

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

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Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Fair Value of Financial Instruments

Fair value of financial instruments

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2016. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.

Level 1: The preferred inputs to valuation efforts are “quoted prices in active markets for identical assets or liabilities,” with the caveat that the reporting entity must have access to that market.  Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.

Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three , situations.

Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as “unobservable,” and limits their use by saying they “shall be used to measure fair value to the extent that observable inputs are not available.” This category allows “for situations in which there is little, if any, market activity for the asset or liability at the measurement date”. Earlier in the standard, FASB explains that “observable inputs” are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.

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Summary of Significant Accounting Policies: Stock-based Compensation Policy (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Stock-based Compensation Policy

Stock-based compensation

The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards.  This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.

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Summary of Significant Accounting Policies: Recent Pronouncements (Policies)

9 Months Ended

Sep. 30, 2016

Policies

Recent Pronouncements

Recent pronouncements

The Company has evaluated recent accounting pronouncements through the filing date and believes that none of them will have a material effect on the Company’s financial statements.

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Fixed Assets Disclosure: Summary of fixed assets (Tables)

9 Months Ended

Sep. 30, 2016

Tables/Schedules

Summary of fixed assets

	September 30,		December 31,
	2016		2015
Computer equipment	$	2,638	$	2,638
Machinery and equipment		3,127		3,127
Leasehold improvements		7,252		7,252
Vehicles		131,775		131,775
Fixed assets, total		144,792		144,792
Less: accumulated depreciation		(27,544)		(10,484)
Fixed assets, net	$	117,248	$	134,308

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Income Taxes Disclosure: Schedule of Income before Income Tax (Tables)

9 Months Ended

Sep. 30, 2016

Tables/Schedules

Schedule of Income before Income Tax

	September 30, 2016		September 30, 2015
United States	$	329,131	$	215,917
Total	$	329,131	$	215,917

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Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

Tables/Schedules

Schedule of Deferred Tax Assets and Liabilities

	September 30, 2016		December 31, 2015
Property and equipment bases and depreciation differences	$	5,121	$	3,070
Total deferred tax liabilities	$	5,121	$	3,070
Net operating loss carryforwards	$	79,599	$	82,918
Total deferred tax assets	$	79,599	$	82,918
Net deferred income taxes	$	74,478	$	79,848

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Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Tables)

9 Months Ended

Sep. 30, 2016

Tables/Schedules

Schedule of Components of Income Tax Expense (Benefit)

	September 30, 2016		September 30, 2015
Current:
Federal	$	111,611	$	67,458
State		23,732		28,781
	$	135,343	$	96,239
Deferred and other:
Federal	$	4,404	$	2,958
State		966		1,262
Total	$	140,713	$	100,459

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Income Taxes Disclosure: Schedule of Effective Income Tax Rate Reconciliation (Tables)

9 Months Ended

Sep. 30, 2016

Tables/Schedules

Schedule of Effective Income Tax Rate Reconciliation

	September 30, 2016	September 30, 2015
Statutory tax rate	42.84%	42.84%
Effect of lower tax brackets	-0.09%	-2.76%
Meals and entertainment	1.59%	1.39%
Change in valuation allowance	0.00%	0.00%
Federal benefit of state tax	-2.79%	-2.79%
Other	12.45%	12.45%
Effective tax rate	54.00%	51.13%

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Effect of Prior Year Misstatement: Schedule of Restatements and Prior Period Adjustments (Tables)

9 Months Ended

Sep. 30, 2016

Tables/Schedules

Schedule of Restatements and Prior Period Adjustments

	As Originally Filed		Adjustment		As Currently Filed
Deferred tax asset	$	-	$	84,025	$	84,025
Income tax payable		138,761		15,871		154,632
Deferred tax liability		-		1,569		1,569
Income tax expense	$	76,641	$	19,598	$	96,239

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Summary of Significant Accounting Policies: Inventory Policy (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Inventory	$ 239,954	$ 118,625
Raw materials
Inventory	6,333
Work in process inventory
Inventory	10,316
Finished goods inventory
Inventory	$ 223,305

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Fixed Assets Disclosure: Summary of fixed assets (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Fixed assets, gross	$ 144,792	$ 144,792
Accumulated depreciation	(27,544)	(10,484)
Fixed assets, net	117,248	134,308
Computer Equipment
Fixed assets, gross	2,638	2,638
Other Machinery and Equipment
Fixed assets, gross	3,127	3,127
Leasehold Improvements
Fixed assets, gross	7,252	7,252
Vehicles
Fixed assets, gross	$ 131,775	$ 131,775

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Fixed Assets Disclosure (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Details
Depreciation	$ 5,686	$ 2,403	$ 17,060	$ 3,252

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Income Taxes Disclosure: Schedule of Income before Income Tax (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Details
Net income before income taxes	$ 140,119	$ 37,112	$ 329,131	$ 215,917

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Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Details
Deferred tax liability	$ 5,121	$ 3,070
Total deferred tax assets	79,599	82,918
Net deferred income taxes	$ 74,478	$ 79,848

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Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Details
Current federal tax expense (benefit)			$ 111,611	$ 67,458
Current state tax expense (benefit)			23,732	28,781
Deferred and other, Federal			4,404	2,958
Deferred and other, State			966	1,262
Total income tax expense (benefit)	$ 58,160	$ 20,649	$ 140,713	$ 97,290

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Income Taxes Disclosure: Schedule of Effective Income Tax Rate Reconciliation (Details)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Details
Statutory rate	42.84%	42.84%
Effect of lower tax brackets	(0.09%)	(2.76%)
Meals and entertainment	1.59%	1.39%
Change in valuation allowance	0.00%	0.00%
Federal benefit of state tax	(2.79%)	(2.79%)
Other adjustments	12.45%	12.45%
Effective Tax Rate	54.00%	51.13%

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Notes Payable - Related Party, Disclosure (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Details
Proceeds from notes payable - short term			$ 97,000	$ 16,016
Loan fee			2,972
Note payable - related party	$ 15,453		15,453		$ 15,453
Interest expense	$ 4,387	$ 250	$ 6,536	$ 394

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Notes Payable For Vehicle Financing Obligation (Details)	12 Months Ended
	Dec. 31, 2015 USD ($)
Purchase of vehicle, amount financed	$ 68,470
Purchase of vehicle, annual percentage rate	1335.00%
Purchase of vehicle, credit term	6.25%
VEHICLE FINANCING OBLIGATION
Purchase of vehicle, down payment	$ 63,305

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Stockholders' Equity Disclosure (Details) - $ / shares	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Details
Common shares authorized for issuance	6,666,600,000		6,666,600,000
Common stock par value	$ 0.001		$ 0.001
Preferred shares authorized for issuance	10,000,000		10,000,000
Preferred stock par value	$ 0.001	$ 0.001	$ 0.001