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 June 30, 2016

[  ] 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: 000-55053

Blow & Drive Interlock Corporation

(Exact name of registrant as specified in its charter)

Delaware	46-3590850
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1080 La Cienega Boulevard Suite 304 Los Angeles, California	90035
(Address of principal executive offices)	(Zip Code)

(877) 238-4492

Registrant’s telephone number, including area code

(Former address, if changed since last report)

(Former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the 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 [  ] 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 [  ]	Smaller reporting company [X]
(Do not check if a smaller reporting company)

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

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 August 22, 2016, there were 16,327,167 shares of common stock, $0.0001 par value, issued and outstanding.

BLOW & DRIVE INTERLOCK CORPORATION

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION		4
ITEM 1	Financial Statements	5
ITEM 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
ITEM 3	Quantitative and Qualitative Disclosures About Market Risk	29
ITEM 4	Controls and Procedures	29
PART II – OTHER INFORMATION		30
ITEM 1	Legal Proceedings	30
ITEM 1A	Risk Factors	30
ITEM 2	Unregistered Sales of Equity Securities and Use of Proceeds	31
ITEM 3	Defaults Upon Senior Securities	31
ITEM 4	Mine Safety Disclosures	31
ITEM 5	Other Information	31
ITEM 6	Exhibits	32

2

EXPLANATORY NOTE

We are filing this Amendment No. 1 on Form 10-Q/A (the “Amendment”) to our Quarterly Report on Form 10-Q for the period ended June 30, 2016 (the “Form 10-Q”), filed with the United States Securities and Exchange Commission on August 22, 2016 (the “Original Filing Date”), solely to correct errors in our financial statements for this period. On our original Form 10-Q, we mistakenly recognized the entire upfront fees from one of our independent distributors ($10,000 in Q2 2016) as revenue at the time we delivered the exclusive license to the distributor rather than over the term of the agreement (5 years including any automatic extension). To correct this error, in the financial statements included with this Amendment we show the portion of the upfront fees attributable to this period only and not the entire upfront fees. The second error corrected herein has to do with the statement of cash flows and is to correct the amortization of debt discount by $1,042. In order to correct these errors we have included restated financial statements, notes to financial statements, and amended management disclosure and analysis related to the restated financial statements with this Amendment. The adjustments to the financial statements are indicated in our restated financial statements filed herewith. In order to make this filing consistent with our current reports, we clarified in our notes to financial statements that we receive device parts from our supplier in China and not devices.

No other changes have been made to the Form 10-Q. All other portions of this Amendment speaks as of the Original Filing Date and do not reflect events that may have occurred subsequent to the Original Filing Date, and does not modify or update in any way the disclosures made in the Form 10-Q.

3

PART I – FINANCIAL INFORMATION

This Quarterly Report includes forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are based on management’s beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning our possible or assumed future results of operations set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements also include statements in which words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “consider,” or similar expressions are used.

Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions. Our future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.

4

ITEM 1 Financial Statements

The balance sheets as of June 30, 2016 (unaudited) and December 31, 2015, the statements of operations for the three and six months ended June 30, 2016 and 2015, and the statements of cash flows for the six months ending June 30, 2016 and 2015, follow. The unaudited interim condensed financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All such adjustments are of a normal and recurring nature.

5

Blow & Drive Interlock Corporation

Consolidated Balance Sheet

	June 30, 2016 as filed			Restatement adjustment			Restated June 30, 2016			December 31, 2015
	(unaudited)			(unaudited)			(unaudited)
Assets
Current Assets
Cash	$	40,075					$	40,075		$	9,103
Accounts receivable, net		31,075						31,075			1,591
Prepaid Expenses		486						486			2,573
Inventories		10,650						10,650			10,365
Total Current Assets		82,286			-			82,286			23,632
Other Assets
Deposits		20,825						20,825			6,225
Furniture and equipment		167,364						167,364			45,647
Total Assets	$	270,475		$	-		$	270,475		$	75,504
Liabilities and Stockholders’ Deficit
Current Liabilities
Accounts payable	$	33,823					$	33,823		$	10,367
Accrued expenses		49,619						49,619			53,881
Accrued interest		1,760						1,760			2,000
Income taxes payable		5,700						5,700			4,100
Deferred revenue		120,673			9,500			130,173			81,674
Derivative liability		70,937						70,937			51,325
Notes payable, current portion		12,844						12,844			10,200
Notes payable - related party, current portion		47,431						47,431			54,341
Total Current Liabilities		342,787			9,500			352,287			267,888
Long term liabilities
Notes payable, net of current portion and discount		3,819						3,819			-
Notes payable - related party, net of current portion and discount		78,740						78,740			86,066
Convertible notes payable, net of current portion and discount		19,445						19,445			12,614
Royalty notes payable, net of current portion and discount		14,793						14,793			-
Accrued royalties payable		120,000						120,000			-
Total Liabilities		579,584			9,500			589,084			366,568
Stockholders’ Deficit
Preferred stock, $0.001 par value, 20,000,000 shares authorized, none outstanding		-									-
Common stock, $0.001 par value, 100,000,000 shares authorized, 16,260,500 and
15,006,750 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively		1,626						1,626			1,500
Additional paid-in capital		762,733						762,733			438,547
Accumulated deficit		(1,073,468	)		(9,500	)		(1,082,968	)		(731,111	)
Total Stockholder’s Deficit		(309,109	)		(9,500	)		(318,609	)		(291,064	)
Total Liabilities and Stockholders’ Deficit	$	270,475		$	-		$	270,475		$	75,504

6

Blow & Drive Interlock Corporation

Consolidated Statements of Operations

(unaudited)

	Three Months Ended June 30,												Six Months Ended June 30,
	2016 as filed			Restatement adjustment			Restated 2016			2015			2016 as filed			Restatement adjustment			Restated 2016			2015
Total revenue	$	95,176		$	(9,500	)	$	85,676		$	-		$	134,655		$	(9,500	)	$	125,155		$	-
Cost of revenue		11,163						11,163			-			17,718						17,718			-
Gross profit		84,013			(9,500	)		74,513			-			116,937			(9,500	)		107,437			-
Operating expenses
Payroll		31,518						31,518			40,318			65,247						65,247			92,494
Professional fees		36,985						36,985			22,138			61,621						61,621			47,000
General and administrative expenses		125,402						125,402			30,438			191,959						191,959			50,662
Research and development		-						-			45,130			-						-			57,630
Depreciation		6,675						6,675			-			16,930						16,930			-
Common stock issued for services		17,000						17,000			-			34,000						34,000			-
Total operating expenses		217,580			-			217,580			138,024			369,757			-			369,757			247,786
Loss from operations		(133,567	)		(9,500	)		(143,067	)		(138,024	)		(252,820	)		(9,500	)		(262,320	)		(247,786	)
Other income (expense)
Interest expense		(42,507	)					(42,507	)		(3,001	)		(69,925	)					(69,925	)		(6,044	)
Change in fair value of derivative liability		15,122						15,122			-			(19,612	)					(19,612	)		-
Total other income (expense)		(27,385	)		-			(27,385	)		(3,001	)		(89,537	)		-			(89,537	)		(6,044	)
Loss before provision for income taxes		(160,952	)		(9,500	)		(170,452	)		(141,025	)		(342,357	)		(9,500	)		(351,857	)		(253,830	)
Provision for income taxes		-						-			-									-			-
Net loss	$	(160,952	)	$	(9,500	)	$	(170,452	)	$	(141,025	)	$	(342,357	)	$	(9,500	)	$	(351,857	)	$	(253,830	)
Basic and diluted loss per common share	$	(0.01	)				$	(0.01	)	$	-		$	(0.02	)				$	(0.02	)	$	-
Weighted average number of common shares outstanding - basic and diluted		15,407,687						15,407,687			14,978,198			15,407,687						15,407,687			14,932,453

7

Blow & Drive Interlock Corporation

Consolidated Statement of Shareholders’ Deficit

(unaudited)

	Common Stock				Additional Paid-in		2016 as filed Accumulated			Restatement			Restated Accumulated			Total Stockholders’
	Shares		Amount		Capital		Deficit			adjustment			Deficit			Deficit
Balance December 31, 2015		15,006,750	$	1,500	$	438,547	$	(731,111	)				$	(731,111	)	$	(291,064	)
Shares issued for services		147,750		15		117,347		-						-			117,362
Shares issued for cash		1,026,000		103		157,397		-						-			157,500
Shares issued related to debt		80,000		8		49,442		-						-			49,450
Net loss				-		-		(342,357	)		(9,500	)		(351,857	)		(351,857	)
Balance June 30, 2016		16,260,500	$	1,626	$	762,733	$	(1,073,468	)	$	(9,500	)	$	(1,082,968	)	$	(318,609	)

8

Blow & Drive Interlock Corporation

Consolidated Statement of Cash Flows

(unaudited)

	Six Months Ended June 30,
	2016 as filed			Restatement adjustment			Restated 2016			2015
Cash flows from operating activities:
Net loss	$	(342,357	)	$	(9,500	)	$	(351,857	)	$	(253,830	)
Adjustments to reconcile from net loss to net cash used in operating activities:
Depreciation and amortization		16,930						16,930			240
Shares issued for services		117,362						117,362			-
Amortization of debt discount		54,005			(1,042	)		52,963			-
Change in fair value of derivative liability		19,612						19,612			-
Changes in operating assets and liabilities
Accounts receivable		(29,484	)					(29,484	)		-
Prepaid expenses		2,087						2,087			(924	)
Deposits		(14,600	)					(14,600	)		(6,225	)
Accounts payable		23,456						23,456			-
Accrued expenses		(2,662	)					(2,662	)		(5,115	)
Accrued interest		(240	)					(240	)		(9,412	)
Deferred revenue		38,999			9,500			48,499			-
Net cash used in operating activities		(116,892	)		(1,042	)		(117,934	)		(275,266	)
Cash flows from investing activities:
Purchase of property and equipment		(138,932	)					(138,932	)		(2,398	)
Net cash used in investing activities		(138,932	)		-			(138,932	)		(2,398	)
Cash flows from financing activities:
Proceeds from notes payable		209,099						209,099			-
Repayments of notes payable		(78,761	)					(78,761	)		(3,719	)
Proceeds from issuance of common stock		157,500						157,500			85,000
Net cash provided by financing activities		287,838			-			287,838			81,281
Net increase (decrease) in cash		32,014			(1,042	)		30,972			(196,383	)
Cash, beginning of period		9,103						9,103			272,692
Cash, end of period	$	41,117		$	(1,042	)	$	40,075		$	76,309
Supplemental disclosure of cash information:
Cash paid during the period for:
Interest	$	15,351					$	15,351		$	153,098
Income taxes	$	-					$	-		$	-
Supplemental disclosure of non-cash investing and financing activities
Common stock issued for services	$	117,362					$	117,362		$	-
Establishment of debt discount for royalty notes	$	120,000					$	120,000		$	-

9

Note 1 - Organization and Nature of Business

Blow & Drive Interlock (“the Company”) was incorporated on July 2, 2013 under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company makes, markets and rents alcohol ignition interlock devices to DUI/DWI offenders as part of their mandatory court or motor vehicle department programs. The Company has approval for its device in the following states: California, Arizona, Oregon, Kentucky, Tennessee and Texas.

In 2015, The Company formed BDI Manufacturing, Inc., an Arizona corporation, which is a 100% wholly owned subsidiary of Blow & Drive Interlock Corporation.

The Company markets, installs and monitors a breath alcohol ignition interlock device (BAIID) called the BDI-747/1, which is a mechanism that is installed on the steering column of an automobile and into which a driver exhales. The device in turn provides a blood-alcohol concentration analysis. If the driver’s blood-alcohol content is higher than a certain pre-programmed limit, the device prevents the ignition from engaging and the automobile from starting. These devices are often required for use by DUI or DWI (“driving under the influence” or “driving while intoxicated”) offenders as part of a mandatory court or motor vehicle department program.

During the year ended December 31, 2015, the Company began to license others to distribute the BDI-747/1 and provide services related to the device. The distributorships are for specific geographical areas (either entire states or certain counties within states). The Company currently has entered into four distributorship agreements. Under the distribution agreements the Company typically receives a onetime fee, and then is entitled to receive a per unit registration fee and a per unit monthly fee for each BDI-747/1 unit the distributor has in inventory or on the road beginning thirty (30) days after the distributor receives the unit.

Since December 31, 2015, the Company has received the monthly fees related to one distributor. In addition, the company has begun recognizing monthly fee income from units the Company has installed into customer’s vehicles

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company.

Going Concern

The Company’s unaudited condensed consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2016, the Company had an accumulated deficit of $1,082,968 (restated). The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease or reduce its operations.

10

In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company will continue to raise funds through the sale of its equity securities or issuance of notes payable to obtain additional operating capital. The Company is dependent upon its ability, and will continue to attempt to secure additional equity and/or debt financing until the Company can earn revenue and realize positive cash flow from its operations. There are no assurances that the Company will be successful in earning revenue and realizing positive cash flow from its operations. Without sufficient financing it would be unlikely that the Company will continue as a going concern.

Based on the Company’s current rate of cash outflows, cash on hand and proceeds from the prior sale of equity securities and issuance of convertible notes, management believes that its current cash will not be sufficient to meet the anticipated cash needs for working capital for the next 12 months. The Company’s plans with respect to its liquidity issues include, but are not limited to, the following:

1)	Continue to issue restricted stock for compensation due to consultants and for its legacy accounts payable in lieu of cash payments; and
2)	Seek additional capital to continue its operations as it rolls out its current products. The Company is currently evaluating additional debt or equity financing opportunities and may execute them when appropriate. However, there can be no assurances that the Company can consummate such a transaction, or consummate a transaction at favorable pricing.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and achieve profitable operations. These condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

Reclassifications

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

Use of Estimates

The preparation of financial statements in conformity with U.S. 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 periods. Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenue when earned and related costs of sales and expenses when incurred. The Company recognizes revenue in accordance with FASB ASC Topic 605-10-S99, Revenue Recognition, Overall, SEC Materials (“Section 605-10-S99”). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of revenue consists of the cost of the purchased goods and labor related to the corresponding sales transaction. When a right of return exists, the Company defers revenues until the right of return expires. The Company recognizes revenue from services at the time the services are completed.

Distributorships

Revenue is recognized pursuant to ASC Topic 605, “Revenue Recognition” (ASC 605). Monthly per unit fee revenue is earned and recognized over the term of the contract as support services are provided. Revenues from territory exclusivity are earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price has been determined and collectability has been reasonably assured.

11

The Company enters into arrangements that include multiple deliverables, which typically consist of the sale of exclusive distributorship territory rights, startup supplies package, promotional material, three weeks of onsite training and an ongoing monthly support services. The Company accounts for each material element within an arrangement with multiple deliverables as separate units of accounting. Revenue is allocated to each unit of accounting under the guidance of ASC Topic 605-25, Multiple-Element Revenue Arrangements, which provides criteria for separating consideration in multiple-deliverable arrangements by establishing a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable is based on vendor-specific objective evidence (“VSOE”) if available, third-party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third-party evidence is available. The Company is required to determine the best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis. The Company generally does not separately sell distributorships or training on a standalone basis. Therefore, the Company does not have VSOE for the selling price of these units nor is third party evidence available and thus management uses its best estimate of selling prices in our allocation of revenue to each deliverable in the multiple element arrangement.

Monitoring fees on Company installed units

The Company rents units directly to customers and installs the units in the customer’s vehicles. The rental periods range from a few months to 2 years and include a combination of down payments made by the customer and monthly payments paid under the agreements with the Company. Revenue is recognized from these companies on the straight line basis over the term of the agreement. Amounts collected in excess of those earned are classified as deferred revenue in the balance sheet, and amounts earned in excess of amounts collected are reflected in accounts receivable in the balance sheet at June 30, 2016.

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of June 30, 2016 and December 31, 2015 is adequate, but actual write-offs could exceed the recorded allowance.

Convertible Debt and Warrants Issued with Convertible Debt

Convertible debt is accounted for under the guidelines established by ASC 470, Debt with Conversion and Other Options and ASC 740, Beneficial Conversion Features. We record a beneficial conversion feature (“BCF”) when convertible debt is issued with conversion features at fixed or adjustable rates that are below market value when issued. If, however, the conversion feature is dependent upon a condition being met or the occurrence of a specific event, the BCF will be recorded when the related contingency is met or occurs. The BCF for the convertible instrument is recorded as a reduction, or discount, to the carrying amount of the convertible instrument equal to the fair value of the conversion feature. The discount is then amortized to interest over the life of the underlying debt using the effective interest method.

The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718, Compensation – Stock Compensation, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense.

12

For modifications of convertible debt, the Company records the modification that changes the fair value of an embedded conversion feature, including a BCF, as a debt discount which we amortize to interest expense over the remaining life of the debt. If modification is considered substantial (i.e. greater than 10% of the carrying value of the debt), an extinguishment of debt is deemed to have occurred, resulting in the recognition of an extinguishment gain or loss.

Fair Value of Financial Instruments

We utilize ASC 820-10, Fair Value Measurement and Disclosure, for valuing financial assets and liabilities measured on a recurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

As of June 30, 2016 and December 31, 2015, we did not have any level 3 assets or liabilities. As of June 30, 2016 and December 31, 2015, the derivative liabilities are considered level 2 items.

Net Income (Loss) Per Share

Basic earnings per share is calculated by dividing income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common and dilutive common share equivalents outstanding during the period.

Stock Based Compensation

The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718 Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an employee stock purchase plan based on the estimated fair values.

For non-employee stock-based compensation, the Company applies FASB ASC Topic 505 Equity-Based Payments to Non-Employees, which requires stock-based compensation related to non-employees to be accounted for based on the fair value of the related stock or options or the fair value of the services on the grant date, whichever is more readily determinable in accordance with FASB ASC Topic 718.

Concentrations

All of the Company’s ignition interlock device parts are purchased from one supplier in China. The loss of this supplier could have a material impact on the Company’s ability to timely obtain additional units.

Income Taxes

The Company accounts for its income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.

13

The Company also follows ASC 740-10-25, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements in accordance with ASC Topic 740, “Accounting for Income Taxes”. ASC 740-10-25 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Recently Issued Accounting Pronouncements

In May 2014, the FASB and the International Accounting Standards Board jointly issued ASU No. 2014-9, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU, as amended, is effective for public entities for annual and interim periods beginning after December 15, 2017. Early adoption is not permitted under U.S. GAAP and retrospective application is permitted, but not required. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial position and results of operations.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statement-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance under U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The ASU is effective for all entities and for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The adoption of ASU No. 2014-15 is not expected to have a significant impact on the Company’s consolidated financial statements and related disclosures.

In November 2015, the FASB issued guidance related to the presentation of deferred income taxes. The guidance requires that deferred tax assets and liabilities are classified as non-current in a consolidated balance sheet. This guidance is effective in the first quarter of 2017 and is not expected to materially impact financial position or net earnings.

In February 2016, the FASB issued a new accounting standard on leasing. The new standard will require companies to record most leased assets and liabilities on the balance sheet, and also proposes a dual model for recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on consolidated financial statements.

Note 3 – Property and Equipment

Property and equipment consist of the following:

	June 30, 2016			December 31, 2015
Monitoring Units	$	182,398		$	46,150
Furniture, Fixtures, and Equipment		4,798			2,398
Total Assets		187,196			48,548
Less: accumulated depreciation		(19,832	)		(2,901	)
Furniture and Equipment, net		167,364			45,647

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Depreciation expense for the three and six months ended June 30, 2016 and 2015 amounted to $6,675 and $120, and $16,930 and $240, respectively.

Note 4 – Accrued Expense

Other current liabilities consist of the following:

	June 30, 2016		December 31, 2015
Accrued professional fees	$	750	$	27,013
Accrued wages		8,840		1,949
Accrued payroll taxes		22,529		7,419
Refundable distributorship deposit		17,500		17,500
Total	$	49,619	$	53,881

Note 5 – Deferred revenue

The Company classifies income as deferred until the terms of the contract or time frame have been met within the Company’s revenue recognition policy. As of June 30, 2016 and December 31, 2015 deferred revenue totaled $130,173 (restated) and $81,674, with $59,500 (restated), and $50,000, respectively, related to distributorship agreements. The remaining deferred revenue relates to Company serviced ignition interlock monitoring customers.

Note 6 – Notes Payable

Notes payable consist of the following:

	June 30, 2016					December 31, 2015
	Principal			Accrued Interest		Principal			Accrued Interest
Convertible notes
Convertible note #1		7,500			93		15,000			-
Debt Discount		(5,765	)		-		(8,426	)
Convertible note #2		50,000			1,667		50,000			1,667
Debt Discount		(32,290	)		-		(43,960	)
Subtotal convertible notes net		19,445			1,760		12,614			1,667
Promissory notes
Promissory note #1		6,509			-		10,200			333
Promissory note #2		9,290			-		-			-
Debt Discount		(2,955	)		-		-
Promissory note #3		50,000			-		-			-
Debt Discount		(46,181	)		-		-
Subtotal promissory notes		16,663			-		10,200			333
Royalty notes
Royalty note #1		60,938			-		-			-
Debt Discount		(46,979	)		-		-
Royalty note #2		50,938			-		-			-
Debt Discount		(50,104	)		-		-
Subtotal royalty notes		14,793			-		-			-
Related party promissory note
Related party promissory note		126,171			-		140,407			-
Total		177,072			1,760		163,221			2,000
Current portion		60,275			1,760		66,541			2,000
Long-term portion	$	116,797		$	-	$	96,680		$	-

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Convertible notes

On August 7, 2015, the Company entered into an agreement with a third party non-affiliate and issued a 7.5% interest bearing convertible debenture for $15,000 due on August 7, 2017, with conversion features commencing after 180 days following the date of the note. Payments of interest only are due monthly beginning September 2015. The loan is convertible at 70% of the average of the closing prices for the common stock during the five trading days prior to the conversion date. In connection with this Convertible note payable, the Company recorded a $5,770 discount on debt, related to the beneficial conversion feature of the note to be amortized over the life of the note or until the note is converted or repaid. This note was bifurcated with the embedded conversion option recorded as a derivative liability at fair value (See Note 8). On May 6, 2016 the note holder elected to convert $7,500 in principal into 30,000 shares of common stock.

In connection with the issuance of the August Convertible Note Payable, the Company issued a warrant on August 7, 2015 to purchase 30,000 shares of the Company’s common stock at a purchase price of $0.50 per share. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrants issued in connection with the convertible note payable using the following inputs: Expected Term – 3 years, Expected Dividend Rate – 0%, Volatility – 100%, Risk Free Interest Rate -1.08%. The Company recorded an additional $4,873 discount on debt, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

On November 24, 2015, the Company entered into an agreement with an existing non-affiliated shareholder, and issued a 10% interest bearing convertible debenture for $50,000 due on November 19, 2017. Payments of interest only are due monthly beginning December 2015. The loan is convertible at 70% of the average of the closing prices for the common stock during the five trading days prior to the conversion date, but may not be converted if such conversion would cause the holder to own more than 9.9% of outstanding common stock after giving effect to the conversion (which limitation may be removed by the holder upon 61 days advanced notice to the company). In connection with this Convertible Note Payable, the Company recorded a $32,897 discount on debt, related to the beneficial conversion feature of the note to be amortized over the life of the note or until the note is converted or repaid. This note was bifurcated with the embedded conversion option recorded as a derivative liability at fair value (See Note 7). As of June 30, 2016 this note has not been converted.

In connection with the issuance of the November convertible note payable, the Company issued a warrant to purchase 80,000 shares of our common stock at an exercise price of $0.80 per share. The warrant has an exercise period of two years from the date of issuance. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrants issued in connection with the convertible note payable using the following inputs: Expected Term – 2 years, Expected Dividend Rate – 0%, Volatility – 100%, Risk Free Interest Rate -.61%. The Company recorded an additional $13,783 discount on debt, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

Promissory notes

On December 18, 2015, the Company entered into a note payable agreement with a third party. The note was for a principal balance of $10,200. The interest due is dependent on a cost schedule that is tied to the date of repayment of the principle. The note is due by June 16, 2016.

On January 29, 2016, the Company entered into a note payable agreement with a third party. The note was for a principal balance of $44,850 in exchange for $29,505 in cash. The note will be paid back via daily ACH debits for $320 per business day with an estimated payback date of August 2016.

On March 30, 2016, the Company provided an agreement to a third party under which the Company would issue a $50,000 promissory note and 50,000 restricted common shares in exchange for $50,000 in cash. The promissory note has a maturity date of June 30, 2018, and bears interest at 18% per annum. The purchaser did not sign the agreement nor deliver the proper consideration prior to March 31, 2016. The exchange of the $50,000 in cash consideration by the purchaser and the issuance of the 50,000 restricted common shares by the Company was made in conjunction with delivery of the signed purchase agreement and promissory note on April 5, 2016. The Company recorded a debt discount of $50,000 related to the relative fair value of the issued shares and services provided associated with the note to be amortized over the life of the note.

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Royalty notes

On January 20, 2016 the company entered into a non-interest bearing note payable and royalty agreement with a third party. Under the note, the Company borrowed $65,000 and begin to repay the principal amount at a rate of approximately $937 per month with escalations to approximately $3,531 per month as of February 2017 until the note is paid in full. In addition, starting in February 2018, the Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity.

On March 29, 2016 the Company consummated a non-interest bearing note payable and royalty agreement with a relative of our CEO with terms almost identical to the note referenced above. Under the note, the Company borrowed $55,000 and begin to repay the principal amount at a rate of approximately $937 per month with escalations to approximately $3,531 per month as of April 2017 until the note is paid in full. In addition, starting in February 2018, the Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity.

In connection with these two notes, the Company recorded a debt discount of $120,000 relating to the future royalty payments

Related party promissory notes

On February 16, 2014, the Company entered into a note payable agreement with Laurence Wainer, the director, President and sole officer of the Company. The note was for a principal balance of $160,000 and bears interest at 7.75% per annum. Principal and interest payments are due in 60 equal monthly installments beginning in March 2014 of $3,205. The Company and Laurence Wainer entered into an additional agreement effective April 2014 suspending loan repayments until January 2015. As of January 2015, the payments have resumed.

Note 7 – Derivative Financial Instruments

The Company applies the provisions of ASC Topic 815-40, Contracts in Entity’s Own Equity (“ASC Topic 815-40”), under which convertible instruments, which contain terms that protect holders from declines in the stock price, may not be exempt from derivative accounting treatment. As a result, embedded conversion options (whose exercise price is not fixed and determinable) in convertible debt (which is not conventionally convertible due to the exercise price not being fixed and determinable) are initially recorded as a liability and are revalued at fair value at each reporting date using the Black Sholes Model.

The Company has a $7,500 and a $50,000 convertible note with variable conversion pricing outstanding at June 30, 2016.

The Company calculates the estimated fair values of the liabilities for derivative instruments using the Black Scholes option pricing model and revalues them each quarter. The change in valuation is accounted for as a gain or loss in derivative liability. For the period ending June 30, 2016 the Company expensed $19,612 in connection with the revaluation. The Black Scholes model was used in determining the relative fair value of the notes using the following inputs: Expected Term – 1.35 and 1.58 years, Expected Dividend Rate – 0%, Volatility – 281%, Risk Free Interest Rate - 0.77%.

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The following table describes the Derivative liability as of June 30, 2016 and December 31, 2015.

Balance December 31, 2015	51,325
Change in fair market value of derivative	19,612
Balance June 30, 2016	70,937

Note 8 – Accrued Royalties Payable

In connection with the Royalty Notes as discussed in Note 6 above the company has estimated that a value equal to the face value of the notes should be booked as a debt discount with the corresponding entry to estimated royalties to be paid out in perpetuity. No payments are due for royalties until February 2018 unless the Company hits certain sales milestones as set forth in the royalty agreements earlier.

Note 9 – Stockholders’ Equity

Preferred Stock

The Company’s articles of incorporation authorize the Company to issue up to 50,000,000 preferred shares of $0.001 par value, having preferences to be determined by the Board of Directors for dividends, and liquidation of the Company’s assets. As of June 30, 2016 and December 31, 2015, the Company had no preferred shares outstanding.

Common Stock

Holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company’s ability to pay dividends on its common stock, subject to the requirements of the Delaware Revised Statutes. The Company has not declared any dividends since incorporation. During the six months ended June 30, 2016, the Company issued the 147,750 shares of $0.001 par value common stock for services with a value of $107,362. The Company also issued shares in connection with debt of 80,000 for an aggregate fair value of $59,450. Additionally, the Company issued and sold 1,026,000 shares of its common stock to several investors for an aggregate purchase price of $157,500. The total number of shares outstanding as of June 30, 2016 was 16,260,500.

Note 10 – Warrants

The following table reflects warrant activity during the six months ended June 30, 2016:

	Warrants for		Weighted
	Common		Average
	Shares		Exercise Price
Outstanding as of December 31, 2015		110,000	$	0.72
Granted		-		-
Exercised		-		-
Forfeited, cancelled, expired		-		-
Outstanding as of June 30, 2016		110,000	$	0.72

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Note 11 – Income (Loss) Per Share

Net income (loss) per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic net income (loss) per common share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average shares outstanding, assuming all dilutive potential common shares were issued, unless doing so is anti-dilutive. The numerators and denominators used to calculate basic and diluted income (loss) per share are as follows for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Numerator for income (loss) per share:
Net income (loss attributable to common shareholders	$	(160,952	)	$	(141,025	)	$	(342,357	)	$	(253,830	)
Interest savings on convertible notes		-			-			-			-
Numerator for diluted income (loss) per share	$	3,183,983		$	531,780		$	(342,357	)	$	(253,830	)
Denominator for income (loss) per share:
Weighted average common shares		15,407,687			14,978,198			15,407,687			14,932,453
Weighted average preferred shares								-			-
Convertible notes		-			-						-
Warrants		-			-			-			-
Denominator for diluted income (loss) per share		15,407,687			14,978,198			15,407,687			14,932,453

The following shares are not included in the computation of diluted income (loss) per share, because their inclusion would be anti-dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Preferred shares						-		-
Convertible notes		19,038		-		19,751		-
Warrants		110,000		-		110,000		-
Options		-		-		-		-
Total anti-dilutive weighted average shares		129,038		-		129,751		-

If all dilutive securities had been exercised at June 30, 2016 the total number of common shares outstanding would be as follows:

	June 30, 2016
Common Shares	16,260,500
Preferred Shares	-
Convertible notes	18,104
Warrants	110,000
Options	-
Total potential shares	16,388,604

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Note 12 – Commitments and Contingencies

On January 21, 2015, the Company and Mr. Wainer entered into a two-year lease with Marsel Plaza LLC for a storefront location at 1080 South La Cienega Boulevard, Suite 304, Los Angeles, California 90035. Base rent under the lease is $1,450 per month. The lease began on February 1, 2015.

Legal Proceedings

In the ordinary course of business, the Company is, from time to time, involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon the Company’s financial condition and/or results of operations. However, in the opinion of the Company’s management, other than as set forth herein, matters currently pending or threatened against the Company are not expected to have a material adverse effect on the Company’s financial position or results of operations.

In April 2016, the Company was sued in the District Court of Sedgwick County, State of Kansas (Case No. 16CV0822) by Theenk, Inc., a company it sold an independent distributorship. According to the Complaint, Theenk, Inc. alleges the Company failed to perform under the Exclusive Distribution Agreement the Company entered into with them on September 4, 2015 by failing to obtain approval for the Company’s BDI-747 breathalyzer interlock device from the State of Kansas within 60 days from the execution of the Agreement, and further, that the Company failed to compensate Theenk, Inc. for certain engineering hours and manufacturing and testing costs related to a potential add-on component to the BDI-747 device. The Complaint seeks damages of $64,726.06. The Company originally received an extension of time to file its Answer from Theenk, Inc. On June 2, 2016, prior to the time an Answer was due by the Company, it entered into a Settlement Agreement with Theenk, Inc., whereby the Company agreed to pay Theenk, Inc. $17,500 in full settlement of the lawsuit, including a dismissal of the lawsuit. The Company has tendered the check for $17,500 and Theenk, Inc. states it will deposit the funds around August 30, 2016, after which it is obligated to dismiss the lawsuit.

Note 13 – Subsequent Events

The Company follows the guidance in FASB ASC Topic 855, Subsequent Events (“ASC 855”), which provides guidance to establish general standards of accounting for and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are available to be issued. ASC 855 sets forth (i) the period after the balance sheet date during which management of a reporting entity evaluates events or transactions that may occur for potential recognition or disclosure in the consolidated financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its consolidated financial statements, and (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date.

None

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ITEM 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations

Disclaimer Regarding Forward Looking Statements

Our Management’s Discussion and Analysis or Plan of Operations contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national and local general economic and market conditions; demographic changes; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; raw material costs and availability; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission.

Although the forward-looking statements in this Quarterly Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

Overview

We are a previous development stage company that was incorporated in the State of Delaware in July 2013. In the year ending December 31, 2015, we generated our first revenues of $30,569 as well as deferred revenues of $81,674. From July 2, 2013 (inception) to December 31, 2015, we experienced a net loss and accumulated deficit of $731,111 and total liabilities of $366,568 including $140,407 in notes payable to our president, Laurence Wainer. For the six months ended June 30, 2016, we had revenues of $125,155 (restated) and a net loss of $351,857 (restated).

We are in the business of renting a breath alcohol ignition interlock device called the BDI-747/1, which is a mechanism that is installed on the steering column of an automobile and into which a driver exhales. The device in turn provides a blood-alcohol concentration analysis. If the driver’s blood-alcohol content is higher than a certain pre-programmed limit, the device prevents the ignition from engaging and the automobile from starting. We also have the option of in-car camera technology, which some states require for state approval. The in-car camera feature is just one of several anti-circumvention features found on the BDI-747. These devices are often required for use by DUI or DWI (“driving under the influence” or “driving while intoxicated”) offenders as part of a mandatory court or motor vehicle department program.

On June 17, 2015, our BDI-747 Breath Alcohol Ignition Interlock Device, together with our patent pending BDI Model #1 power line filter, were certified by the National Highway Traffic Safety Administration (NHTSA) as meeting or exceeding the 2013 NHSTA guidelines. As a result, on July 27, 2015 we began production of our BDI-747 Breath Alcohol Ignition Interlock Device with the attached BDI Model #1 power line filter.

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Since receiving our NHSTA Certification and as of August 15, 2016 we have submitted applications to 13 states to be considered as a state-certified breath alcohol ignition interlock manufacturer and provider for all Ignition Interlock Mandated DUI/DWI offenders throughout each state. As of August 15, 2016, 11 of these applications have been approved, specifically California, Colorado, Oregon, Texas, Arizona, Kentucky, Kansas, Pennsylvania, New York and Tennessee. Our plan for the remainder of 2016 is gain approval in an additional 2-4 states.

In some states we market, rent, install and support the devices directly and in other states we sell distributorships to authorized distributors allowing them to lease, install, service, remove and support the BDI-747/1 devices. As of August 15, 2016, we lease the devices directly in six states – California, Kentucky, Oregon, Pennsylvania, New York and Tennessee - and license the device to distributors in three different areas – two counties in Texas and in the state of Arizona. In several of the states where we lease directly we may eventually work with distributors in those states as well and lease both directly and through distributors.

In states where we rent the devices directly to consumers, we currently typically charge $198 in upfront fees for the user (which covers two months of the lease payment), and then $99/month for the other ten months of the lease for the typical one year lease. The lease payment covers the installation of the device in the consumer’s vehicle, the rental of the device, recalibration of the device as required by each state (typically every 30 to 60 days) and the monitoring services for the device, which are then reported to the state in accordance with each state’s requirements. In states and areas where we do not have a direct presence, which we only have in Los Angeles, California, we contract with independent service centers, such as car alarm installation companies or other auto services companies, to perform the installations of our BDI-747/1 device, which centers must be approved by the states in which the perform the installations. Because our devices are installed in consumers’ vehicles are part of a judicially-mandated program, and since the use of the device controls the individual’s driving privileges, collection rates of the monthly leasing fees is close to 100%. The failure to make the payment could be a violation of the consumer’s sentence or probation and could cause them to lose the device and their driving privileges.

In areas where we have a distributor, in our typical distributorship arrangement, we charge the distributor a flat fee distributorship territory fee up front (which fee varies based on the size and location of the distributorship), a $150 per unit registration fee, and then a $35 monthly fee for each device the distributor has in its inventory. These fees may vary on a case-by-case basis. The relationship with our distributors may either be on an exclusive or non-exclusive basis depending upon the location of the distributorship and the fees charged.

As of August 15, 2016, between the devices we rent directly and those devices leased through our distributors, we have approximately 515 units on the road. We plan to increase our marketing of the device, and more aggressively pursue sales and distributors once we have funds to manufacture additional units.

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Results of Operations for Three Months Ended June 30, 2016 Compared to Three Months Ended June 30, 2015

Summary of Results of Operations

	Three Months Ended June 30,
	2016 (restated)			2015
Revenue:				$	-
Revenue		85,676			-
Total revenues		85,676			-
Cost of revenue:
Monitoring cost of revenue		11,163			-
Total cost of revenue		11,163			-
Gross profit		74,513			-
Operating expenses:
Payroll		31,518			40,318
Professional fees		36,985			22,138
General and administrative expenses		125,402			30,438
Research and development		-			45,130
Depreciation		6,675			-
Common stock issued for services		17,000			-
Total operating expenses		217,580			138,024
Loss from operations		(143,067	)		(138,024	)
Other income (expense):
Interest expense		(42,507	)		(3,001	)
Change in fair value of derivative liability		15,122			-
Total other income (expense)		(27,385	)		(3,001	)
Net income (loss)	$	(170,452	)	$	(141,025	)

Operating Loss; Net Income (Loss)

Our net income/(loss) changed by $29,427 (restated), from ($141,025) to ($170,452) (restated), from the three months ended June 30, 2015 compared to June 30, 2016. Our operating loss increased by $5,043 (restated), from ($138,024) to ($143,067) (restated) for the same periods. The change in our net income/(loss) for the three months ended June 30, 2016, compared to the prior year period, is primarily a result of a significant increase in our general and administrative expenses, an increase in depreciation expense, and an increase in our common stock issued for services, partially offset by our revenues for the period, as well as decreases in our payroll and research and development expenses. These changes are detailed below.

Revenue

We had our first revenue during the latter part of 2015. During the three months ended June 30, 2016 we had $85,676 (restated) in revenues, primarily from the monthly recurring payments we received from our customers that rent our BDI-747/1 breathalyzer device for the ongoing monitoring services related to the devices, compared to $0 for the same period one year ago. We expect the revenue we receive from monitoring our devices on the road will continue to increase as we have more units on the road.

23

Cost of Revenue

Our cost of revenue for the three months ended June 30, 2016 was $11,163, compared to $0 for the three months ended June 30, 2015. Our cost of revenue for the three months ended June 30, 2016, was completely related to our monthly monitoring services we provide to our customers. During the three months ended June 30, 2015, we did not incur any cost of revenue since we did not have any revenues during that period.

Payroll

Our payroll decreased by $8,800, from $40,318 to $31,518, from the three months ended June 30, 2015 compared to June 30, 2016. We expect our payroll in future quarterly periods will be approximately $30,000 per quarter until we are able to expand our operations.

Professional Fees

Our professional fees increased during the three months ended June 30, 2016 compared to the three months ended June 30, 2015. Our professional fees were $36,985 for the three months ended June 30, 2016 and $22,138 for the three months ended June 30, 2015. These fees are largely related to fees paid for legal, accounting and audit services. We expect these fees to continue grow steadily as our business expands. In the event we undertake an unusual transaction, such as an acquisition or file a registration statement, we would expect these fees to substantially increase during that period.

General and Administrative Expenses

General and administrative expenses increased by $94,964, from $30,438 for the three months ended June 30, 2015 to $125,402 for the three months ended June 30, 2016, primarily due to an increases in advertising, telephone, internet, utilities, bank charges and travel. We expect our general and administrative expenses we be around $50,000 to $75,000 per quarter for the foreseeable future.

Research and Development

We did not incur any research and development expenses in the three months ended June 30, 2016, compared to $45,130 for the three months ended June 30, 2015. Our research and development expenses in 2015 were related to our design and development of the BDI-747/1 device. Since the device is now developed we did not incur any such expenses in the three months ended June 30, 2016.

Depreciation

We had depreciation of $6,675 for the three months ended June 30, 2016, compared to $0 for the same period one year ago. Our depreciation and amortization expenses in 2016 were primarily related to the depreciation of the BDI-747/1 device.

Common Stock Issued for Services

We had common stock issued for services of $17,000 for the three months ended June 30, 2016, compared to $0 for the same period one year ago. The common stock issued for services in 2016 was issued for public relations services.

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Interest Expense

Interest expense increased by $39,506 from $3,001 for the three months ended June 30, 2015 to $42,507 for the three months ended June 30, 2016. For both periods these amounts are largely due to the interest we owe on outstanding debt including amortization of debt discount costs. The interest expense significantly increased for the period ended June 30, 2016, compared to the same period one year ago, due to our increase in outstanding debt compared to one year ago.

Change in Fair Value of Derivative Liability

During the three months ended June 30, 2016, we had a change in fair value of derivative liability of $15,122 compared to $0 for the same period in 2015. The change in fair value of derivative liability in the three months ended June 30, 2016, relates to the conversion feature of a promissory note we had outstanding during this period. Since the conversion price on the promissory note is calculated based on a discount to the closing price of our common stock, as our closing price fluctuates it changes the fair value of the derivative liability.

Results of Operations for Six Months Ended June 30, 2016 Compared to Six Months Ended June 30, 2015

Summary of Results of Operations

	Six Months Ended June 30,
	2016 (restated)			2015
Revenue:	$			$	-
Revenue		125,155			-
Total revenues		125,155			-
Cost of revenue:
Monitoring cost of revenue		17,718			-
Total cost of revenue		17,718			-
Gross profit		107,437			-
Operating expenses:
Payroll		65,247			92,494
Professional fees		61,621			47,000
General and administrative expenses		191,959			50,662
Research and development		-			57,630
Depreciation		16,930			-
Common stock issued for services		34,000			-
Total operating expenses		369,757			247,786
Loss from operations		(262,320	)		(247,786	)
Other income (expense):
Interest expense		(69,925	)		(6,044	)
Change in fair value of derivative liability		(19,612	)		-
Total other income (expense)		(89,537	)		(6,044	)
Net income (loss)	$	(351,857	)	$	(253,830	)

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Operating Loss; Net Income (Loss)

Our net income/(loss) changed by $98,027 (restated), from ($253,830) to ($351,857) (restated), from the six months ended June 30, 2015 compared to June 30, 2016. Our operating loss increased by $14,534 (restated), from ($247,786) to ($262,320) (restated) for the same periods. The change in our net income/(loss) for the six months ended June 30, 2016, compared to the prior year period, is primarily a result of a significant increase in our general and administrative expenses, an increase in depreciation expense, and an increase in our common stock issued for services, partially offset by our revenues for the period, as well as decreases in our payroll and research and development expenses. These changes are detailed below.

Revenue

We had our first revenue during the latter part of 2015. During the six months ended June 30, 2016 we had $125,155 (restated) in revenues, primarily from the monthly recurring payments we received from our customers that rent our BDI-747/1 breathalyzer device for the ongoing monitoring services related to the devices, compared to $0 for the same period one year ago. We expect the revenue we receive from monitoring our devices on the road will continue to increase as we have more units on the road.

Cost of Revenue

Our cost of revenue for the six months ended June 30, 2016 was $17,718, compared to $0 for the six months ended June 30, 2015. Our cost of revenue for the six months ended June 30, 2016, was completely related to our monthly monitoring services we provide to our customers. During the six months ended June 30, 2015, we did not incur any cost of revenue since we did not have any revenues during that period.

Payroll

Our payroll decreased by $27,247, from $92,494 to $65,247, from the six months ended June 30, 2015 compared to June 30, 2016. We expect our payroll in future quarterly periods will be approximately $30,000 per quarter until we are able to expand our operations.

Professional Fees

Our professional fees increased by $14,621 during the six months ended June 30, 2016 compared to the six months ended June 30, 2015. Our professional fees were $61,621 for the six months ended June 30, 2016 and $47,000 for the six months ended June 30, 2015. These fees are largely related to fees paid for legal, accounting and audit services. We expect these fees to continue grow steadily as our business expands. In the event we undertake an unusual transaction, such as an acquisition or file a registration statement, we would expect these fees to substantially increase during that period.

General and Administrative Expenses

General and administrative expenses increased by $141,297, from $50,662 for the six months ended June 30, 2015 to $191,959 for the six months ended June 30, 2016, primarily due to an increases in advertising, telephone, internet, utilities, bank charges and travel. We expect our general and administrative expenses we be around $50,000 to $75,000 per quarter for the foreseeable future.

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Research and Development

We did not incur any research and development expenses in the six months ended June 30, 2016, compared to $57,630 for the six months ended June 30, 2015. Our research and development expenses in 2015 were related to our design and development of the BDI-747/1 device. Since the device is now developed we did not incur any such expenses in the six months ended June 30, 2016.

Depreciation

We had depreciation of $16,930 for the six months ended June 30, 2016, compared to $0 for the same period one year ago. Our depreciation and amortization expenses in 2016 were primarily related to the depreciation of the BDI-747/1 device.

Common Stock Issued for Services

We had common stock issued for services of $34,000 for the six months ended June 30, 2016, compared to $0 for the same period one year ago. The common stock issued for services in 2016 was issued for public relations services.

Interest Expense

Interest expense increased by $63,881 from $6,044 for the six months ended June 30, 2015 to $69,925 for the six months ended June 30, 2016. For both periods these amounts are largely due to the interest we owe on outstanding debt including amortization of debt discount costs. The interest expense significantly increased for the period ended June 30, 2016, compared to the same period one year ago, due to our increase in outstanding debt compared to one year ago.

Change in Fair Value of Derivative Liability

During the six months ended June 30, 2016, we had a change in fair value of derivative liability of ($19,612) compared to $0 for the same period in 2015. The change in fair value of derivative liability in the six months ended June 30, 2016, relates to the conversion feature of a promissory note we had outstanding during this period. Since the conversion price on the promissory note is calculated based on a discount to the closing price of our common stock, as our closing price fluctuates it changes the fair value of the derivative liability.

Liquidity and Capital Resources for Six Months Ended June 30, 2016 Compared to Six Months Ended June 30, 2015

Introduction

During the six months ended June 30, 2016 and 2015, because of our operating losses, we did not generate positive operating cash flows. Our cash on hand as of June 30, 2016 was $40,075 and our cash used in operations is approximately $20,000 per month. As a result, we have significant short term cash needs. These needs are being satisfied through proceeds from the sales of our securities and loans from both related parties and third parties. We currently do not believe we will be able to satisfy our cash needs from our revenues for some time.

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Our cash, current assets, total assets, current liabilities, and total liabilities as of June 30, 2016 and as of December 31, 2015, respectively, are as follows:

	June 30, 2016 (restated)		December 31, 2015		Change (restated)
Cash	$	40,075	$	9,103	$	30,972
Total Current Assets		82,286		23,632		49,654
Total Assets		270,475		75,504		194,971
Total Current Liabilities		352,287		267,888		84,399
Total Liabilities	$	589,084	$	366,568	$	222,516

Our current assets increased as of June 30, 2016 as compared to December 31, 2015, due to us having more cash on hand and higher accounts receivable, net as of June 30, 2016. The increase in our total assets between the two periods was also related to the increase in our cash on hand, accounts receivable, net, as well as an increase in furniture and equipment as of June 30, 2016.

Our current liabilities increased by $84,399 (restated), as of June 30, 2016 as compared to December 31, 2015. This increase was primarily due to an increase in our accounts payable of $23,456, an increase in our deferred revenue of $48,499 (restated), an increase in our derivative liability of $19,612.

In order to repay our obligations in full or in part when due, we will be required to raise significant capital from other sources. There is no assurance, however, that we will be successful in these efforts.

Sources and Uses of Cash

Operations

We had net cash used in operating activities of $117,934 (restated) for the six months ended June 30, 2016, as compared to $275,266 for the six months ended June 30, 2015. For the period in 2016, the net cash used in operating activities consisted primarily of our net income (loss) of ($351,857) (restated), adjusted primarily by change in fair value of derivative liability of $19,612, shares issued for services of $117,362, amortization of debt discount of $52,963 (restated), and depreciation and amortization of $16,930, as well as changes in, accrued expenses of ($2,662), deferred revenue of $48,499 (restated), deposits of ($14,600), accounts payable of $23,456, and accounts receivable of ($29,484). For the period in 2015, the net cash used in operating activities consisted primarily of our net income (loss) of ($253,830), adjusted primarily by changes in accrued expenses of ($5,115), deposits of ($6,225), and accrued interest of ($9,412).

Investments

We had cash used in investing activities in the six months ended June 30, 2016 of $138,932, compared to $2,398 for June 30, 2015. For both periods the cash used in investing activities related to purchases of property and equipment.

Financing

Our net cash provided by financing activities for the six months ended June 30, 2016 was $287,838, compared to $81,281 for the six months ended June 30, 2015. For the six months ended June 30, 2016, our net cash from financing activities consisted of proceeds from notes payable of $209,099 and proceeds from issuance of common stock of $157,500, partially offset by repayments of notes payable of ($78,761). For the six months ended June 30, 2015, our net cash from financing activities consisted of proceeds from the issuance of common stock of $85,000, partially offset by repayments of notes payable of ($3,719).

Off Balance Sheet Arrangements

We have no off balance sheet arrangements.

Commitments and Contingent Liabilities

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. As of June 30, 2016, we have no contingent liability that is required to be recorded nor disclosed.

On January 21, 2015, we and Mr. Wainer entered into a two-year lease with Marsel Plaza LLC for a storefront location at 1080 South La Cienega Boulevard, Suite 304, Los Angeles, California 90035. Our base rent under the lease is $1,450 per month. The lease began on February 1, 2015.

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ITEM 3 Quantitative and Qualitative Disclosures About Market Risk

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

ITEM 4 Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Pursuant to rules adopted by the Securities and Exchange Commission we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to rules promulgated under the Securities Exchange Act of 1934. This evaluation was done as of the end of June 30, 2016 under the supervision and with the participation of our principal executive officer (who is also the principal financial officer).

Based upon our evaluation, our principal executive and financial officer (Mr. Wainer performs both roles) concluded that, as of June 30, 2016, our existing disclosure controls and procedures were not effective. Disclosure controls and procedures means controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to management, including the principal executive and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. With only one officer in charge of such reporting controls, there is no backup to the oversight of such individual and thus such disclosure controls and procedures may not be considered effective.

We have engaged outside accounting and finance advisors to assist us in better implementing effective disclosure controls and procedures.

Changes in Internal Control over Financial Reporting

Except as noted above, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Internal Control over Financial Reporting

We are responsible for establishing and maintaining adequate internal control over financial reporting in accordance with Rule 13a-15 of the Securities Exchange Act of 1934. Our president conducted an evaluation of the effectiveness of our internal control over financial reporting as of June 30, 2016, based on the criteria establish in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that our internal control over financial reporting was ineffective as of June 30, 2016, based on those criteria. A control system can provide only reasonably, not absolute, assurance that the objectives of the control system are met and no evaluation of controls can provide absolute assurance that all control issues have been detected.

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Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2016 and identified the following material weaknesses, which are outlined further in our Annual Report on Form 10-K for the year ended December 31, 2015:

Inadequate segregation of duties: We have an inadequate number of personnel to properly implement control procedures.

We have not documented our internal controls: We have limited policies and procedures that cover the recording and reporting of financial transactions and accounting provisions. As a result we may be delayed in our ability to calculate certain accounting provisions.

We do not have effective controls over the control environment. A formally adopted written code of business conduct and ethics that governs our employees, officers, and directors was not in place. Additionally, management has not developed and effectively communicated to our employees its accounting policies and procedures. This has resulted in inconsistent practices. We also do not have independent members on our Board of Directors.

We have not been able to timely and accurately record convertible debt transactions, deferred revenue, and derivative liabilities in the financial statements. As a result, we have needed additional time, beyond the filing deadlines, to file our periodic reports.

PART II – OTHER INFORMATION

ITEM 1 Legal Proceedings

On April 5, 2016, we were sued in the District Court of Sedgwick County, State of Kansas (Case No. 16CV0822) by Theenk, Inc., a company we sold an independent distributorship. According to the Complaint, Theenk, Inc. we failed to perform under the Exclusive Distribution Agreement we entered into with them on September 4, 2015 by failing to obtain approval for our BDI-747 breathalyzer interlock device from the State of Kansas within 60 days from the execution of the Agreement, and further, that we failed to compensate Theenk, Inc. for certain engineering hours and manufacturing and testing costs related to a potential add-on component to the BDI-747 device. The Complaint seeks damages of $64,726.06. We were served with the Complaint on or about April 19, 2016. We originally received an extension of time to file our Answer from Theenk, Inc. On June 2, 2016, prior to the time an Answer was due by us, we entered into a Settlement Agreement with Theenk, Inc., whereby we agreed to pay Theenk, Inc. $17,500 in full settlement of the lawsuit, including a dismissal of the lawsuit. We tendered the check for $17,500 and Theenk, Inc. states it will deposit the funds around August 30, 2016, after which it is obligated to dismiss the lawsuit.

In the ordinary course of business, we are from time to time involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. However, in the opinion of our management, other than as set forth herein, matters currently pending or threatened against us are not expected to have a material adverse effect on our financial position or results of operations.

ITEM 1A Risk Factors

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

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ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended June 30, 2016, we issued the following unregistered securities:

On June 14, 2016, we received $17,500 from LGL, LLC, a Colorado limited liability company (“LGL”) and a non-affiliate of the company, under a Common Stock Purchase Agreement entered into between us and LGL. Under the terms of the Common Stock Purchase Agreement, LGL acquired 70,000 shares of our common stock, restricted in accordance with Rule 144, in exchange for the $17,500. LGL received an additional 30,000 shares of our common stock, restricted in accordance with Rule 144, under a Notice of Conversion whereby LGL converted $7,500 due and owing to it under a Convertible Promissory Note dated August 7, 2015. The 100,000 shares of common stock were issued to LGL on or about June 15, 2016. The issuance of the shares was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933. LGL is sophisticated, familiar with our operations, and there was no solicitation.

On June 13, 2016 and June 14, 2016, we received an aggregate of $81,000 from three non-affiliate investors, under separate stock purchase agreements with those investors. Under the terms of the stock purchase agreements, we agreed to issue the investors an aggregate of 620,000 shares of our common stock at a per share price of $0.09 to $0.15 per share. These shares were issued with a restrictive legend in accordance with Rule 144. The issuance of the shares was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933. The investors were sophisticated, familiar with our operations, and there was no solicitation.

On March 30, 2016, we provided an agreement to a third party to issue the third party a $50,000 promissory note in exchange for 50,000 restricted common shares and $50,000 in cash. The promissory note has a maturity date of June 30, 2018, and bears interest at 18% per annum. The exchange of the $50,000 in cash consideration by the purchaser and the issuance of the promissory note and the 50,000 restricted common shares was made in conjunction with delivery of the signed purchase agreement on April 5, 2016. The issuance of the promissory note and the shares was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933. The investor was sophisticated, familiar with our operations, and there was no solicitation.

No underwriters were involved in any of the issuances provided in this Item 2. The shares were issued pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”) because the individuals either represented that they were “accredited investors” as such term is defined in the rules and regulations promulgated under the Securities Act, were our employees and/or were known to our management and in possession of the information that registration of the securities would provide them. The sale of the securities did not involve any form of general solicitation or general advertising.

ITEM 3 Defaults Upon Senior Securities

There have been no events which are required to be reported under this Item.

ITEM 4 Mine Safety Disclosures

There have been no events which are required to be reported under this Item.

ITEM 5 Other Information

There have been no events which are required to be reported under this Item.

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ITEM 6 Exhibits

Item No.	Description
3.1 (1)	Certificate of Incorporation of Jam Run Acquisition Corporation dated June 28, 2013
3.2	Articles of Amendment to Articles of Incorporation to Jam Run Acquisition Corporation dated February 6, 2014 (changing corporate name to Blow & Drive Interlock Corporation)
3.3 (1)	Bylaws of Jam Run Acquisition Corporation (now Blow & Drive Interlock Corporation) dated June 2013
10.1 (2)	Agreement between Tiber Creek Corporation and Laurence Wainer dated January 25, 2014
10.2 (2)	Promissory Note between the Company and Laurence Wainer dated February 16, 2014
10.3 (3)	Lease Agreement by and between Marsel Plaza LLC and Laurence Wainer and Blow and Drive Interlock Corporation dated January 21, 2015
10.4 (4)	Exclusive Distributorship Agreement with Theenk Inc. dated August 21, 2015
10.5 (4)	Exclusive Distributorship Agreement with Jay Lopez dated July 24, 2015
10.6 (4)	Independent Contractor Agreement with Laurence Wainer dated September 11, 2015
10.7 (5)	Exclusive Distributorship Agreement with Stephen Ferraro dated November 9, 2015
10.4 (6)	Supply Agreement by and between BDI Manufacturing, Inc., an Arizona corporation, and C4 Development Ltd. dated June 29, 2015
10.5 (7)	Securities Purchase Agreement with David Stuart Petlak entered into on November 19, 2015
10.6 (7)	Convertible Promissory Note issued to David Stuart Petlak dated November 19, 2015
10.7 (7)	Common Stock Warrant issued to David Stuart Petlak dated November 19, 2015
10.8 (8)	Exclusive Distributorship Agreement with dba Blow & Drive Houston dated January 11, 2016
10.9 (9)	Secured Promissory Note and Agreement with Ira Silver dated January 20, 2016
10.10 (9)	Secured Promissory Note and Agreement with Chaim K. Wainer dated October 29, 2015
10.11 (10)	Securities Purchase Agreement with Dr. Oren Azulay dated March 30, 2016
10.12 (10)	Common Stock Purchase Agreement with Gustavo Arceo dated April 2016
10.13 (10)	Common Stock Purchase Agreement with LGL LLC dated May 6, 2016
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer (filed herewith).
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Accounting Officer (filed herewith).
32.1	Section 1350 Certification of Chief Executive Officer (filed herewith).
32.2	Section 1350 Certification of Chief Accounting Officer (filed herewith).

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101.INS **	XBRL Instance Document
101.SCH **	XBRL Taxonomy Extension Schema Document
101.CAL **	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF **	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB **	XBRL Taxonomy Extension Label Linkbase Document
101.PRE **	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus 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.

(1)	Incorporated by reference from our Registration Statement on Form 10, filed with the Commission on September 30, 2013.
(2)	Incorporated by reference from our Registration Statement on Form S-1, filed with the Commission on July 24, 2014.
(3)	Incorporated by reference from our Annual Report on Form 10-K, filed with the Commission on March 30, 2015.
(4)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on September 11, 2015.
(5)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on November 12, 2015.
(6)	Incorporated by reference from our Quarterly Report on Form 10-Q, filed with the Commission on August 13, 2015.
(7)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on September 11, 2015.
(8)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on February 22, 2016.
(9)	Incorporated by reference from our Current Report on Form 8-K filed with the Commission on March 17, 2016.
(10)	Incorporated by reference from our Quarterly Report on Form 10-Q, filed with the Commission on August 22, 2016.

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SIGNATURES

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

	Blow & Drive Interlock Corporation
Dated: April 27, 2018		/s/ Laurence Wainer
	By:	Laurence Wainer
		Chief Executive Officer and Chief Financial Officer

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EX-31.1

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

I, Laurence Wainer, certify that:

1.	I have reviewed this Amendment No. 1 to the Quarterly Report on Form 10-Q/A of Blow & Drive Interlock Corporation;
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 Exhibit Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

5. The registrant’s other certifying officer(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.

Dated: April 27, 2018
		/s/ Laurence Wainer
	By:	Laurence Wainer
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

I, Laurence Wainer, certify that:

1.	I have reviewed this Amendment No. 1 to the Quarterly Report on Form 10-Q/A of Blow & Drive Interlock Corporation;
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 Exhibit Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

5. The registrant’s other certifying officer(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.

Dated: April 27, 2018
		/s/ Laurence Wainer
	By:	Laurence Wainer
		Chief Financial Officer and Chief Accounting Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Amendment No. 1 to the Quarterly Report of Blow & Drive Interlock Corporation (the “Company”) on Form 10-Q/A for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Laurence Wainer, President of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Dated: April 27, 2018
		/s/ Laurence Wainer
	By:	Laurence Wainer
		Chief Executive Officer

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

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Amendment No. 1 to the Quarterly Report of Blow & Drive Interlock Corporation (the “Company”) on Form 10-Q/A for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Laurence Wainer, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Dated: April 27, 2018
		/s/ Laurence Wainer
	By:	Laurence Wainer
		Chief Financial Officer and Chief Accounting Officer

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

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 22, 2016
Document And Entity Information
Entity Registrant Name	Blow & Drive Interlock Corp
Entity Central Index Key	0001586495
Document Type	10-Q/A
Document Period End Date	Jun. 30, 2016
Amendment Flag	true
Amendment Description	We are filing this Amendment No. 1 on Form 10-Q/A (the Amendment) to our Quarterly Report on Form 10-Q for the period ended June 30, 2016 (the Form 10-Q), filed with the United States Securities and Exchange Commission on August 22, 2016 (the Original Filing Date), solely to correct errors in our financial statements for this period. On our original Form 10-Q, we mistakenly recognized the entire upfront fees from one of our independent distributors ($10,000 in Q2 2016) as revenue at the time we delivered the exclusive license to the distributor rather than over the term of the agreement (5 years including any automatic extension). To correct this error, in the financial statements included with this Amendment we show the portion of the upfront fees attributable to this period only and not the entire upfront fees. The second error corrected herein has to do with the statement of cash flows and is to correct the amortization of debt discount by $1,042. In order to correct these errors we have included restated financial statements, notes to financial statements, and amended management disclosure and analysis related to the restated financial statements with this Amendment. The adjustments to the financial statements are indicated in our restated financial statements filed herewith. In order to make this filing consistent with our current reports, we clarified in our notes to financial statements that we receive device parts from our supplier in China and not devices. No other changes have been made to the Form 10-Q. All other portions of this Amendment speaks as of the Original Filing Date and do not reflect events that may have occurred subsequent to the Original Filing Date, and does not modify or update in any way the disclosures made in the Form 10-Q.
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		16,327,167
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2016

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Consolidated Balance Sheet - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 40,075	$ 9,103
Accounts receivable, net	31,075	1,591
Prepaid Expenses	486	2,573
Inventories	10,650	10,365
Total Current Assets	82,286	23,632
Other Assets
Deposits	20,825	6,225
Furniture and equipment	167,364	45,647
Total Assets	270,475	75,504
Current Liabilities
Accounts payable	33,823	10,367
Accrued expenses	49,619	53,881
Accrued interest	1,760	2,000
Income taxes payable	5,700	4,100
Deferred revenue	130,173	81,674
Derivative liability	70,937	51,325
Notes payable, current portion	12,844	10,200
Notes payable - related party, current portion	47,431	54,341
Total Current Liabilities	352,287	267,888
Long term liabilities
Notes payable, net of current portion and discount	3,819
Notes payable - related party, net of current portion and discount	78,740	86,066
Convertible notes payable, net of current portion and discount	19,445	12,614
Royalty notes payable, net of current portion and discount	14,793
Accrued royalties payable	120,000
Total Liabilities	589,084	366,568
Stockholders' Deficit
Preferred stock, $0.001 par value, 20,000,000 shares authorized, none outstanding
Common stock, $0.001 par value, 100,000,000 shares authorized, 16,260,500 and 15,006,750 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	1,626	1,500
Additional paid-in capital	762,733	438,547
Accumulated deficit	(1,082,968)	(731,111)
Total Stockholder's Deficit	(318,609)	(291,064)
Total Liabilities and Stockholders' Deficit	270,475	$ 75,504
As Filed [Member]
Current Assets
Cash	40,075
Accounts receivable, net	31,075
Prepaid Expenses	486
Inventories	10,650
Total Current Assets	82,286
Other Assets
Deposits	20,825
Furniture and equipment	167,364
Total Assets	270,475
Current Liabilities
Accounts payable	33,823
Accrued expenses	49,619
Accrued interest	1,760
Income taxes payable	5,700
Deferred revenue	120,673
Derivative liability	70,937
Notes payable, current portion	12,844
Notes payable - related party, current portion	47,431
Total Current Liabilities	342,787
Long term liabilities
Notes payable, net of current portion and discount	3,819
Notes payable - related party, net of current portion and discount	78,740
Convertible notes payable, net of current portion and discount	19,445
Royalty notes payable, net of current portion and discount	14,793
Accrued royalties payable	120,000
Total Liabilities	579,584
Stockholders' Deficit
Preferred stock, $0.001 par value, 20,000,000 shares authorized, none outstanding
Common stock, $0.001 par value, 100,000,000 shares authorized, 16,260,500 and 15,006,750 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	1,626
Additional paid-in capital	762,733
Accumulated deficit	(1,073,468)
Total Stockholder's Deficit	(309,109)
Total Liabilities and Stockholders' Deficit	270,475
Restatement Adjustment [Member]
Current Assets
Total Current Assets
Other Assets
Total Assets	0
Current Liabilities
Deferred revenue	9,500
Total Current Liabilities	9,500
Long term liabilities
Total Liabilities	9,500
Stockholders' Deficit
Accumulated deficit	(9,500)
Total Stockholder's Deficit	(9,500)
Total Liabilities and Stockholders' Deficit	$ 0

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Consolidated Balance Sheet (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	16,260,500	15,006,750
Common stock, shares outstanding	16,260,500	15,006,750

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Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Total revenue	$ 85,676		$ 125,155
Cost of revenue	11,163		17,718
Gross profit	74,513		107,437
Operating expenses
Payroll	31,518	40,318	65,247	92,494
Professional fees	36,985	22,138	61,621	47,000
General and administrative expenses	125,402	30,438	191,959	50,662
Research and development		45,130		57,630
Depreciation	6,675		16,930
Common stock issued for services	17,000		34,000
Total operating expenses	217,580	138,024	369,757	247,786
Loss from operations	(143,067)	(138,024)	(262,320)	(247,786)
Other income (expense)
Interest expense	(42,507)	(3,001)	(69,925)	(6,044)
Change in fair value of derivative liability	15,122		(19,612)
Total other income (expense)	(27,385)	(3,001)	(89,537)	(6,044)
Loss before provision for income taxes	(170,452)	(141,025)	(351,857)	(253,830)
Provision for income taxes
Net loss	$ (170,452)	$ (141,025)	$ (351,857)	$ (253,830)
Basic and diluted loss per common share	$ (0.01)		$ (0.02)
Weighted average number of common shares outstanding - basic and diluted	15,407,687	14,978,198	15,407,687	14,932,453
As Filed [Member]
Total revenue	$ 95,176		$ 134,655
Cost of revenue	11,163		17,718
Gross profit	84,013		116,937
Operating expenses
Payroll	31,518		65,247
Professional fees	36,985		61,621
General and administrative expenses	125,402		191,959
Research and development
Depreciation	6,675		16,930
Common stock issued for services	17,000		34,000
Total operating expenses	217,580		369,757
Loss from operations	(133,567)		(252,820)
Other income (expense)
Interest expense	(42,507)		(69,925)
Change in fair value of derivative liability	15,122		(19,612)
Total other income (expense)	(27,385)		(89,537)
Loss before provision for income taxes	(160,952)		(342,357)
Provision for income taxes
Net loss	$ (160,952)		$ (342,357)
Basic and diluted loss per common share	$ (0.01)		$ (0.02)
Weighted average number of common shares outstanding - basic and diluted	15,407,687		15,407,687
Restatement Adjustment [Member]
Total revenue	$ (9,500)		$ (9,500)
Gross profit	(9,500)		(9,500)
Operating expenses
Total operating expenses
Loss from operations	(9,500)		(9,500)
Other income (expense)
Total other income (expense)
Loss before provision for income taxes	(9,500)		(9,500)
Net loss	$ (9,500)		$ (9,500)

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Consolidated Statement of Shareholders' Deficit (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	2016 As Filed Accumulated Deficit [Member]	Restatement Adjustment [Member]	Restated Accumulated Deficit [Member]	Total
Beginning Balance at Dec. 31, 2015	$ 1,500	$ 438,547	$ (731,111)		$ (731,111)	$ (291,064)
Beginning Balance , shares at Dec. 31, 2015	15,006,750
Shares issued for services	$ 15	117,347				(117,362)
Shares issued for services, shares	147,750
Shares issued for cash	$ 103	157,397				157,500
Shares issued for cash, shares	1,026,000
Shares issued related to debt	$ 8	49,442				49,450
Shares issued related to debt, shares	80,000
Net loss			(342,357)	$ (9,500)	(351,857)	(351,857)
Ending Balance at Jun. 30, 2016	$ 1,626	$ 762,733	$ (1,073,468)	$ (9,500)	$ (1,082,968)	$ (318,609)
Ending Balance , shares at Jun. 30, 2016	16,260,500

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Consolidated Statement of Cash Flows (Unaudited) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (170,452)	$ (351,857)	$ (253,830)
Adjustments to reconcile from net loss to net cash used in operating activities:
Depreciation and amortization		16,930	240
Shares issued for services		117,362
Amortization of debt discount		52,963
Change in fair value of derivative liability	(15,122)	19,612
Changes in operating assets and liabilities
Accounts receivable		(29,484)
Prepaid expenses		2,087	(924)
Deposits		(14,600)	(6,225)
Accounts payable		23,456
Accrued expenses		(2,662)	(5,115)
Accrued interest		(240)	(9,412)
Deferred revenue		48,499
Net cash used in operating activities		(117,934)	(275,266)
Cash flows from investing activities:
Purchase of property and equipment		(138,932)	(2,398)
Net cash used in investing activities		(138,932)	(2,398)
Cash flows from financing activities:
Proceeds from notes payable		209,099
Repayments of notes payable		(78,761)	(3,719)
Proceeds from issuance of common stock		157,500	85,000
Net cash provided by financing activities		287,838	81,281
Net increase (decrease) in cash		30,972	(196,383)
Cash, beginning of period		9,103	272,692
Cash, end of period	40,075	40,075	76,309
Supplemental disclosure of cash information:
Interest		15,351	153,098
Income taxes
Supplemental disclosure of non-cash investing and financing activities
Common stock issued for services		117,362
Establishment of debt discount for royalty notes		120,000
As Filed [Member]
Cash flows from operating activities:
Net loss	(160,952)	(342,357)
Adjustments to reconcile from net loss to net cash used in operating activities:
Depreciation and amortization		16,930
Shares issued for services		117,362
Amortization of debt discount		54,005
Change in fair value of derivative liability	(15,122)	19,612
Changes in operating assets and liabilities
Accounts receivable		(29,484)
Prepaid expenses		2,087
Deposits		(14,600)
Accounts payable		23,456
Accrued expenses		(2,662)
Accrued interest		(240)
Deferred revenue		38,999
Net cash used in operating activities		(116,892)
Cash flows from investing activities:
Purchase of property and equipment		(138,932)
Net cash used in investing activities		(138,932)
Cash flows from financing activities:
Proceeds from notes payable		209,099
Repayments of notes payable		(78,761)
Proceeds from issuance of common stock		157,500
Net cash provided by financing activities		287,838
Net increase (decrease) in cash		32,014
Cash, beginning of period		9,103
Cash, end of period	41,117	41,117
Supplemental disclosure of cash information:
Interest		15,351
Income taxes
Supplemental disclosure of non-cash investing and financing activities
Common stock issued for services		117,362
Establishment of debt discount for royalty notes		120,000
Restatement Adjustment [Member]
Cash flows from operating activities:
Net loss	(9,500)	(9,500)
Adjustments to reconcile from net loss to net cash used in operating activities:
Amortization of debt discount		(1,042)
Changes in operating assets and liabilities
Deferred revenue		9,500
Net cash used in operating activities		(1,042)
Cash flows from investing activities:
Net cash used in investing activities
Cash flows from financing activities:
Net cash provided by financing activities
Net increase (decrease) in cash		(1,042)
Cash, end of period	$ (1,042)	$ (1,042)

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Organization and Nature of Business

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Organization and Nature of Business

Note 1 - Organization and Nature of Business

Blow & Drive Interlock (“the Company”) was incorporated on July 2, 2013 under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company makes, markets and rents alcohol ignition interlock devices to DUI/DWI offenders as part of their mandatory court or motor vehicle department programs. The Company has approval for its device in the following states: California, Arizona, Oregon, Kentucky, Tennessee and Texas.

In 2015, The Company formed BDI Manufacturing, Inc., an Arizona corporation, which is a 100% wholly owned subsidiary of Blow & Drive Interlock Corporation.

The Company markets, installs and monitors a breath alcohol ignition interlock device (BAIID) called the BDI-747/1, which is a mechanism that is installed on the steering column of an automobile and into which a driver exhales. The device in turn provides a blood-alcohol concentration analysis. If the driver’s blood-alcohol content is higher than a certain pre-programmed limit, the device prevents the ignition from engaging and the automobile from starting. These devices are often required for use by DUI or DWI (“driving under the influence” or “driving while intoxicated”) offenders as part of a mandatory court or motor vehicle department program.

During the year ended December 31, 2015, the Company began to license others to distribute the BDI-747/1 and provide services related to the device. The distributorships are for specific geographical areas (either entire states or certain counties within states). The Company currently has entered into four distributorship agreements. Under the distribution agreements the Company typically receives a onetime fee, and then is entitled to receive a per unit registration fee and a per unit monthly fee for each BDI-747/1 unit the distributor has in inventory or on the road beginning thirty (30) days after the distributor receives the unit.

Since December 31, 2015, the Company has received the monthly fees related to one distributor. In addition, the company has begun recognizing monthly fee income from units the Company has installed into customer’s vehicles

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company.

Going Concern

The Company’s unaudited condensed consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2016, the Company had an accumulated deficit of $1,082,968 (restated). The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease or reduce its operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company will continue to raise funds through the sale of its equity securities or issuance of notes payable to obtain additional operating capital. The Company is dependent upon its ability, and will continue to attempt to secure additional equity and/or debt financing until the Company can earn revenue and realize positive cash flow from its operations. There are no assurances that the Company will be successful in earning revenue and realizing positive cash flow from its operations. Without sufficient financing it would be unlikely that the Company will continue as a going concern.

Based on the Company’s current rate of cash outflows, cash on hand and proceeds from the prior sale of equity securities and issuance of convertible notes, management believes that its current cash will not be sufficient to meet the anticipated cash needs for working capital for the next 12 months. The Company’s plans with respect to its liquidity issues include, but are not limited to, the following:

1)	Continue to issue restricted stock for compensation due to consultants and for its legacy accounts payable in lieu of cash payments; and
2)	Seek additional capital to continue its operations as it rolls out its current products. The Company is currently evaluating additional debt or equity financing opportunities and may execute them when appropriate. However, there can be no assurances that the Company can consummate such a transaction, or consummate a transaction at favorable pricing.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and achieve profitable operations. These condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

Reclassifications

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

Use of Estimates

The preparation of financial statements in conformity with U.S. 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 periods. Actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenue when earned and related costs of sales and expenses when incurred. The Company recognizes revenue in accordance with FASB ASC Topic 605-10-S99, Revenue Recognition, Overall, SEC Materials (“Section 605-10-S99”). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of revenue consists of the cost of the purchased goods and labor related to the corresponding sales transaction. When a right of return exists, the Company defers revenues until the right of return expires. The Company recognizes revenue from services at the time the services are completed.

Distributorships

Revenue is recognized pursuant to ASC Topic 605, “Revenue Recognition” (ASC 605). Monthly per unit fee revenue is earned and recognized over the term of the contract as support services are provided. Revenues from territory exclusivity are earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price has been determined and collectability has been reasonably assured.

The Company enters into arrangements that include multiple deliverables, which typically consist of the sale of exclusive distributorship territory rights, startup supplies package, promotional material, three weeks of onsite training and an ongoing monthly support services. The Company accounts for each material element within an arrangement with multiple deliverables as separate units of accounting. Revenue is allocated to each unit of accounting under the guidance of ASC Topic 605-25, Multiple-Element Revenue Arrangements, which provides criteria for separating consideration in multiple-deliverable arrangements by establishing a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable is based on vendor-specific objective evidence (“VSOE”) if available, third-party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third-party evidence is available. The Company is required to determine the best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis. The Company generally does not separately sell distributorships or training on a standalone basis. Therefore, the Company does not have VSOE for the selling price of these units nor is third party evidence available and thus management uses its best estimate of selling prices in our allocation of revenue to each deliverable in the multiple element arrangement.

Monitoring fees on Company installed units

The Company rents units directly to customers and installs the units in the customer’s vehicles. The rental periods range from a few months to 2 years and include a combination of down payments made by the customer and monthly payments paid under the agreements with the Company. Revenue is recognized from these companies on the straight line basis over the term of the agreement. Amounts collected in excess of those earned are classified as deferred revenue in the balance sheet, and amounts earned in excess of amounts collected are reflected in accounts receivable in the balance sheet at June 30, 2016.

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of June 30, 2016 and December 31, 2015 is adequate, but actual write-offs could exceed the recorded allowance.

Convertible Debt and Warrants Issued with Convertible Debt

Convertible debt is accounted for under the guidelines established by ASC 470, Debt with Conversion and Other Options and ASC 740, Beneficial Conversion Features. We record a beneficial conversion feature (“BCF”) when convertible debt is issued with conversion features at fixed or adjustable rates that are below market value when issued. If, however, the conversion feature is dependent upon a condition being met or the occurrence of a specific event, the BCF will be recorded when the related contingency is met or occurs. The BCF for the convertible instrument is recorded as a reduction, or discount, to the carrying amount of the convertible instrument equal to the fair value of the conversion feature. The discount is then amortized to interest over the life of the underlying debt using the effective interest method.

The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718, Compensation – Stock Compensation, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense.

For modifications of convertible debt, the Company records the modification that changes the fair value of an embedded conversion feature, including a BCF, as a debt discount which we amortize to interest expense over the remaining life of the debt. If modification is considered substantial (i.e. greater than 10% of the carrying value of the debt), an extinguishment of debt is deemed to have occurred, resulting in the recognition of an extinguishment gain or loss.

Fair Value of Financial Instruments

We utilize ASC 820-10, Fair Value Measurement and Disclosure, for valuing financial assets and liabilities measured on a recurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

As of June 30, 2016 and December 31, 2015, we did not have any level 3 assets or liabilities. As of June 30, 2016 and December 31, 2015, the derivative liabilities are considered level 2 items.

Net Income (Loss) Per Share

Basic earnings per share is calculated by dividing income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common and dilutive common share equivalents outstanding during the period.

Stock Based Compensation

The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718 Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an employee stock purchase plan based on the estimated fair values.

For non-employee stock-based compensation, the Company applies FASB ASC Topic 505 Equity-Based Payments to Non-Employees, which requires stock-based compensation related to non-employees to be accounted for based on the fair value of the related stock or options or the fair value of the services on the grant date, whichever is more readily determinable in accordance with FASB ASC Topic 718.

Concentrations

All of the Company’s ignition interlock device parts are purchased from one supplier in China. The loss of this supplier could have a material impact on the Company’s ability to timely obtain additional units.

Income Taxes

The Company accounts for its income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.

The Company also follows ASC 740-10-25, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements in accordance with ASC Topic 740, “Accounting for Income Taxes”. ASC 740-10-25 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Recently Issued Accounting Pronouncements

In May 2014, the FASB and the International Accounting Standards Board jointly issued ASU No. 2014-9, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU, as amended, is effective for public entities for annual and interim periods beginning after December 15, 2017. Early adoption is not permitted under U.S. GAAP and retrospective application is permitted, but not required. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial position and results of operations.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statement-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance under U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The ASU is effective for all entities and for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The adoption of ASU No. 2014-15 is not expected to have a significant impact on the Company’s consolidated financial statements and related disclosures.

In November 2015, the FASB issued guidance related to the presentation of deferred income taxes. The guidance requires that deferred tax assets and liabilities are classified as non-current in a consolidated balance sheet. This guidance is effective in the first quarter of 2017 and is not expected to materially impact financial position or net earnings.

In February 2016, the FASB issued a new accounting standard on leasing. The new standard will require companies to record most leased assets and liabilities on the balance sheet, and also proposes a dual model for recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on consolidated financial statements.

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Property and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 3 – Property and Equipment

Property and equipment consist of the following:

	June 30, 2016			December 31, 2015
Monitoring Units	$	182,398		$	46,150
Furniture, Fixtures, and Equipment		4,798			2,398
Total Assets		187,196			48,548
Less: accumulated depreciation		(19,832	)		(2,901	)
Furniture and Equipment, net		167,364			45,647

Depreciation expense for the three and six months ended June 30, 2016 and 2015 amounted to $6,675 and $120, and $16,930 and $240, respectively.

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Accrued Expense

6 Months Ended

Jun. 30, 2016

Payables and Accruals [Abstract]

Accrued Expense

Note 4 – Accrued Expense

Other current liabilities consist of the following:

	June 30, 2016		December 31, 2015
Accrued professional fees	$	750	$	27,013
Accrued wages		8,840		1,949
Accrued payroll taxes		22,529		7,419
Refundable distributorship deposit		17,500		17,500
Total	$	49,619	$	53,881

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Deferred Revenue

6 Months Ended

Jun. 30, 2016

Deferred Revenue Disclosure [Abstract]

Deferred Revenue

Note 5 – Deferred revenue

The Company classifies income as deferred until the terms of the contract or time frame have been met within the Company’s revenue recognition policy. As of June 30, 2016 and December 31, 2015 deferred revenue totaled $130,173 (restated) and $81,674, with $59,500 (restated), and $50,000, respectively, related to distributorship agreements. The remaining deferred revenue relates to Company serviced ignition interlock monitoring customers.

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Notes Payable

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Notes Payable

Note 6 – Notes Payable

Notes payable consist of the following:

	June 30, 2016					December 31, 2015
	Principal			Accrued Interest		Principal			Accrued Interest
Convertible notes
Convertible note #1		7,500			93		15,000			-
Debt Discount		(5,765	)		-		(8,426	)
Convertible note #2		50,000			1,667		50,000			1,667
Debt Discount		(32,290	)		-		(43,960	)
Subtotal convertible notes net		19,445			1,760		12,614			1,667
Promissory notes
Promissory note #1		6,509			-		10,200			333
Promissory note #2		9,290			-		-			-
Debt Discount		(2,955	)		-		-
Promissory note #3		50,000			-		-			-
Debt Discount		(46,181	)		-		-
Subtotal promissory notes		16,663			-		10,200			333
Royalty notes
Royalty note #1		60,938			-		-			-
Debt Discount		(46,979	)		-		-
Royalty note #2		50,938			-		-			-
Debt Discount		(50,104	)		-		-
Subtotal royalty notes		14,793			-		-			-
Related party promissory note
Related party promissory note		126,171			-		140,407			-
Total		177,072			1,760		163,221			2,000
Current portion		60,275			1,760		66,541			2,000
Long-term portion	$	116,797		$	-	$	96,680		$	-

Convertible notes

On August 7, 2015, the Company entered into an agreement with a third party non-affiliate and issued a 7.5% interest bearing convertible debenture for $15,000 due on August 7, 2017, with conversion features commencing after 180 days following the date of the note. Payments of interest only are due monthly beginning September 2015. The loan is convertible at 70% of the average of the closing prices for the common stock during the five trading days prior to the conversion date. In connection with this Convertible note payable, the Company recorded a $5,770 discount on debt, related to the beneficial conversion feature of the note to be amortized over the life of the note or until the note is converted or repaid. This note was bifurcated with the embedded conversion option recorded as a derivative liability at fair value (See Note 8). On May 6, 2016 the note holder elected to convert $7,500 in principal into 30,000 shares of common stock.

In connection with the issuance of the August Convertible Note Payable, the Company issued a warrant on August 7, 2015 to purchase 30,000 shares of the Company’s common stock at a purchase price of $0.50 per share. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrants issued in connection with the convertible note payable using the following inputs: Expected Term – 3 years, Expected Dividend Rate – 0%, Volatility – 100%, Risk Free Interest Rate -1.08%. The Company recorded an additional $4,873 discount on debt, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

On November 24, 2015, the Company entered into an agreement with an existing non-affiliated shareholder, and issued a 10% interest bearing convertible debenture for $50,000 due on November 19, 2017. Payments of interest only are due monthly beginning December 2015. The loan is convertible at 70% of the average of the closing prices for the common stock during the five trading days prior to the conversion date, but may not be converted if such conversion would cause the holder to own more than 9.9% of outstanding common stock after giving effect to the conversion (which limitation may be removed by the holder upon 61 days advanced notice to the company). In connection with this Convertible Note Payable, the Company recorded a $32,897 discount on debt, related to the beneficial conversion feature of the note to be amortized over the life of the note or until the note is converted or repaid. This note was bifurcated with the embedded conversion option recorded as a derivative liability at fair value (See Note 7). As of June 30, 2016 this note has not been converted.

In connection with the issuance of the November convertible note payable, the Company issued a warrant to purchase 80,000 shares of our common stock at an exercise price of $0.80 per share. The warrant has an exercise period of two years from the date of issuance. The Black Scholes model was used in valuing the warrants in determining the relative fair value of the warrants issued in connection with the convertible note payable using the following inputs: Expected Term – 2 years, Expected Dividend Rate – 0%, Volatility – 100%, Risk Free Interest Rate -.61%. The Company recorded an additional $13,783 discount on debt, related to the relative fair value of the warrants issued associated with the note to be amortized over the life of the note.

Promissory notes

On December 18, 2015, the Company entered into a note payable agreement with a third party. The note was for a principal balance of $10,200. The interest due is dependent on a cost schedule that is tied to the date of repayment of the principle. The note is due by June 16, 2016.

On January 29, 2016, the Company entered into a note payable agreement with a third party. The note was for a principal balance of $44,850 in exchange for $29,505 in cash. The note will be paid back via daily ACH debits for $320 per business day with an estimated payback date of August 2016.

On March 30, 2016, the Company provided an agreement to a third party under which the Company would issue a $50,000 promissory note and 50,000 restricted common shares in exchange for $50,000 in cash. The promissory note has a maturity date of June 30, 2018, and bears interest at 18% per annum. The purchaser did not sign the agreement nor deliver the proper consideration prior to March 31, 2016. The exchange of the $50,000 in cash consideration by the purchaser and the issuance of the 50,000 restricted common shares by the Company was made in conjunction with delivery of the signed purchase agreement and promissory note on April 5, 2016. The Company recorded a debt discount of $50,000 related to the relative fair value of the issued shares and services provided associated with the note to be amortized over the life of the note.

Royalty notes

On January 20, 2016 the company entered into a non-interest bearing note payable and royalty agreement with a third party. Under the note, the Company borrowed $65,000 and begin to repay the principal amount at a rate of approximately $937 per month with escalations to approximately $3,531 per month as of February 2017 until the note is paid in full. In addition, starting in February 2018, the Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity.

On March 29, 2016 the Company consummated a non-interest bearing note payable and royalty agreement with a relative of our CEO with terms almost identical to the note referenced above. Under the note, the Company borrowed $55,000 and begin to repay the principal amount at a rate of approximately $937 per month with escalations to approximately $3,531 per month as of April 2017 until the note is paid in full. In addition, starting in February 2018, the Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity.

In connection with these two notes, the Company recorded a debt discount of $120,000 relating to the future royalty payments

Related party promissory notes

On February 16, 2014, the Company entered into a note payable agreement with Laurence Wainer, the director, President and sole officer of the Company. The note was for a principal balance of $160,000 and bears interest at 7.75% per annum. Principal and interest payments are due in 60 equal monthly installments beginning in March 2014 of $3,205. The Company and Laurence Wainer entered into an additional agreement effective April 2014 suspending loan repayments until January 2015. As of January 2015, the payments have resumed.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 7 – Derivative Financial Instruments

The Company applies the provisions of ASC Topic 815-40, Contracts in Entity’s Own Equity (“ASC Topic 815-40”), under which convertible instruments, which contain terms that protect holders from declines in the stock price, may not be exempt from derivative accounting treatment. As a result, embedded conversion options (whose exercise price is not fixed and determinable) in convertible debt (which is not conventionally convertible due to the exercise price not being fixed and determinable) are initially recorded as a liability and are revalued at fair value at each reporting date using the Black Sholes Model.

The Company has a $7,500 and a $50,000 convertible note with variable conversion pricing outstanding at June 30, 2016.

The Company calculates the estimated fair values of the liabilities for derivative instruments using the Black Scholes option pricing model and revalues them each quarter. The change in valuation is accounted for as a gain or loss in derivative liability. For the period ending June 30, 2016 the Company expensed $19,612 in connection with the revaluation. The Black Scholes model was used in determining the relative fair value of the notes using the following inputs: Expected Term – 1.35 and 1.58 years, Expected Dividend Rate – 0%, Volatility – 281%, Risk Free Interest Rate - 0.77%.

The following table describes the Derivative liability as of June 30, 2016 and December 31, 2015.

Balance December 31, 2015	51,325
Change in fair market value of derivative	19,612
Balance June 30, 2016	70,937

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Accrued Royalties Payable

6 Months Ended

Jun. 30, 2016

Accrued Royalties Payable

Accrued Royalties Payable

Note 8 – Accrued Royalties Payable

In connection with the Royalty Notes as discussed in Note 6 above the company has estimated that a value equal to the face value of the notes should be booked as a debt discount with the corresponding entry to estimated royalties to be paid out in perpetuity. No payments are due for royalties until February 2018 unless the Company hits certain sales milestones as set forth in the royalty agreements earlier.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stockholders' Equity

Note 9 – Stockholders’ Equity

Preferred Stock

The Company’s articles of incorporation authorize the Company to issue up to 50,000,000 preferred shares of $0.001 par value, having preferences to be determined by the Board of Directors for dividends, and liquidation of the Company’s assets. As of June 30, 2016 and December 31, 2015, the Company had no preferred shares outstanding.

Common Stock

Holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company’s ability to pay dividends on its common stock, subject to the requirements of the Delaware Revised Statutes. The Company has not declared any dividends since incorporation. During the six months ended June 30, 2016, the Company issued the 147,750 shares of $0.001 par value common stock for services with a value of $107,362. The Company also issued shares in connection with debt of 80,000 for an aggregate fair value of $59,450. Additionally, the Company issued and sold 1,026,000 shares of its common stock to several investors for an aggregate purchase price of $157,500. The total number of shares outstanding as of June 30, 2016 was 16,260,500.

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Warrants

6 Months Ended

Jun. 30, 2016

Warrants

Warrants

Note 10 – Warrants

The following table reflects warrant activity during the six months ended June 30, 2016:

	Warrants for		Weighted
	Common		Average
	Shares		Exercise Price
Outstanding as of December 31, 2015		110,000	$	0.72
Granted		-		-
Exercised		-		-
Forfeited, cancelled, expired		-		-
Outstanding as of June 30, 2016		110,000	$	0.72

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Income (Loss) Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Income (Loss) Per Share

Note 11 – Income (Loss) Per Share

Net income (loss) per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic net income (loss) per common share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average shares outstanding, assuming all dilutive potential common shares were issued, unless doing so is anti-dilutive. The numerators and denominators used to calculate basic and diluted income (loss) per share are as follows for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Numerator for income (loss) per share:
Net income (loss attributable to common shareholders	$	(160,952	)	$	(141,025	)	$	(342,357	)	$	(253,830	)
Interest savings on convertible notes		-			-			-			-
Numerator for diluted income (loss) per share	$	3,183,983		$	531,780		$	(342,357	)	$	(253,830	)
Denominator for income (loss) per share:
Weighted average common shares		15,407,687			14,978,198			15,407,687			14,932,453
Weighted average preferred shares								-			-
Convertible notes		-			-						-
Warrants		-			-			-			-
Denominator for diluted income (loss) per share		15,407,687			14,978,198			15,407,687			14,932,453

The following shares are not included in the computation of diluted income (loss) per share, because their inclusion would be anti-dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Preferred shares						-		-
Convertible notes		19,038		-		19,751		-
Warrants		110,000		-		110,000		-
Options		-		-		-		-
Total anti-dilutive weighted average shares		129,038		-		129,751		-

If all dilutive securities had been exercised at June 30, 2016 the total number of common shares outstanding would be as follows:

	June 30, 2016
Common Shares	16,260,500
Preferred Shares	-
Convertible notes	18,104
Warrants	110,000
Options	-
Total potential shares	16,388,604

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 12 – Commitments and Contingencies

On January 21, 2015, the Company and Mr. Wainer entered into a two-year lease with Marsel Plaza LLC for a storefront location at 1080 South La Cienega Boulevard, Suite 304, Los Angeles, California 90035. Base rent under the lease is $1,450 per month. The lease began on February 1, 2015.

Legal Proceedings

In the ordinary course of business, the Company is, from time to time, involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon the Company’s financial condition and/or results of operations. However, in the opinion of the Company’s management, other than as set forth herein, matters currently pending or threatened against the Company are not expected to have a material adverse effect on the Company’s financial position or results of operations.

In April 2016, the Company was sued in the District Court of Sedgwick County, State of Kansas (Case No. 16CV0822) by Theenk, Inc., a company it sold an independent distributorship. According to the Complaint, Theenk, Inc. alleges the Company failed to perform under the Exclusive Distribution Agreement the Company entered into with them on September 4, 2015 by failing to obtain approval for the Company’s BDI-747 breathalyzer interlock device from the State of Kansas within 60 days from the execution of the Agreement, and further, that the Company failed to compensate Theenk, Inc. for certain engineering hours and manufacturing and testing costs related to a potential add-on component to the BDI-747 device. The Complaint seeks damages of $64,726.06. The Company originally received an extension of time to file its Answer from Theenk, Inc. On June 2, 2016, prior to the time an Answer was due by the Company, it entered into a Settlement Agreement with Theenk, Inc., whereby the Company agreed to pay Theenk, Inc. $17,500 in full settlement of the lawsuit, including a dismissal of the lawsuit. The Company has tendered the check for $17,500 and Theenk, Inc. states it will deposit the funds around August 30, 2016, after which it is obligated to dismiss the lawsuit.

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Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Note 13 – Subsequent Events

The Company follows the guidance in FASB ASC Topic 855, Subsequent Events (“ASC 855”), which provides guidance to establish general standards of accounting for and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are available to be issued. ASC 855 sets forth (i) the period after the balance sheet date during which management of a reporting entity evaluates events or transactions that may occur for potential recognition or disclosure in the consolidated financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its consolidated financial statements, and (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date.

None

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

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company.

Going Concern

Going Concern

The Company’s unaudited condensed consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. As of June 30, 2016, the Company had an accumulated deficit of $1,082,968 (restated). The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease or reduce its operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company will continue to raise funds through the sale of its equity securities or issuance of notes payable to obtain additional operating capital. The Company is dependent upon its ability, and will continue to attempt to secure additional equity and/or debt financing until the Company can earn revenue and realize positive cash flow from its operations. There are no assurances that the Company will be successful in earning revenue and realizing positive cash flow from its operations. Without sufficient financing it would be unlikely that the Company will continue as a going concern.

Based on the Company’s current rate of cash outflows, cash on hand and proceeds from the prior sale of equity securities and issuance of convertible notes, management believes that its current cash will not be sufficient to meet the anticipated cash needs for working capital for the next 12 months. The Company’s plans with respect to its liquidity issues include, but are not limited to, the following:

1)	Continue to issue restricted stock for compensation due to consultants and for its legacy accounts payable in lieu of cash payments; and
2)	Seek additional capital to continue its operations as it rolls out its current products. The Company is currently evaluating additional debt or equity financing opportunities and may execute them when appropriate. However, there can be no assurances that the Company can consummate such a transaction, or consummate a transaction at favorable pricing.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and achieve profitable operations. These condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

Reclassifications

Reclassifications

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. 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 periods. Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue when earned and related costs of sales and expenses when incurred. The Company recognizes revenue in accordance with FASB ASC Topic 605-10-S99, Revenue Recognition, Overall, SEC Materials (“Section 605-10-S99”). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Cost of revenue consists of the cost of the purchased goods and labor related to the corresponding sales transaction. When a right of return exists, the Company defers revenues until the right of return expires. The Company recognizes revenue from services at the time the services are completed.

Distributorships

Revenue is recognized pursuant to ASC Topic 605, “Revenue Recognition” (ASC 605). Monthly per unit fee revenue is earned and recognized over the term of the contract as support services are provided. Revenues from territory exclusivity are earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price has been determined and collectability has been reasonably assured.

The Company enters into arrangements that include multiple deliverables, which typically consist of the sale of exclusive distributorship territory rights, startup supplies package, promotional material, three weeks of onsite training and an ongoing monthly support services. The Company accounts for each material element within an arrangement with multiple deliverables as separate units of accounting. Revenue is allocated to each unit of accounting under the guidance of ASC Topic 605-25, Multiple-Element Revenue Arrangements, which provides criteria for separating consideration in multiple-deliverable arrangements by establishing a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable is based on vendor-specific objective evidence (“VSOE”) if available, third-party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third-party evidence is available. The Company is required to determine the best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis. The Company generally does not separately sell distributorships or training on a standalone basis. Therefore, the Company does not have VSOE for the selling price of these units nor is third party evidence available and thus management uses its best estimate of selling prices in our allocation of revenue to each deliverable in the multiple element arrangement.

Monitoring fees on Company installed units

The Company rents units directly to customers and installs the units in the customer’s vehicles. The rental periods range from a few months to 2 years and include a combination of down payments made by the customer and monthly payments paid under the agreements with the Company. Revenue is recognized from these companies on the straight line basis over the term of the agreement. Amounts collected in excess of those earned are classified as deferred revenue in the balance sheet, and amounts earned in excess of amounts collected are reflected in accounts receivable in the balance sheet at June 30, 2016.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of June 30, 2016 and December 31, 2015 is adequate, but actual write-offs could exceed the recorded allowance.

Convertible Debt and Warrants Issued with Convertible Debt

Convertible Debt and Warrants Issued with Convertible Debt

Convertible debt is accounted for under the guidelines established by ASC 470, Debt with Conversion and Other Options and ASC 740, Beneficial Conversion Features. We record a beneficial conversion feature (“BCF”) when convertible debt is issued with conversion features at fixed or adjustable rates that are below market value when issued. If, however, the conversion feature is dependent upon a condition being met or the occurrence of a specific event, the BCF will be recorded when the related contingency is met or occurs. The BCF for the convertible instrument is recorded as a reduction, or discount, to the carrying amount of the convertible instrument equal to the fair value of the conversion feature. The discount is then amortized to interest over the life of the underlying debt using the effective interest method.

The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718, Compensation – Stock Compensation, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense.

For modifications of convertible debt, the Company records the modification that changes the fair value of an embedded conversion feature, including a BCF, as a debt discount which we amortize to interest expense over the remaining life of the debt. If modification is considered substantial (i.e. greater than 10% of the carrying value of the debt), an extinguishment of debt is deemed to have occurred, resulting in the recognition of an extinguishment gain or loss.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

We utilize ASC 820-10, Fair Value Measurement and Disclosure, for valuing financial assets and liabilities measured on a recurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

As of June 30, 2016 and December 31, 2015, we did not have any level 3 assets or liabilities. As of June 30, 2016 and December 31, 2015, the derivative liabilities are considered level 2 items.

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Basic earnings per share is calculated by dividing income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common and dilutive common share equivalents outstanding during the period.

Stock Based Compensation

Stock Based Compensation

The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718 Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an employee stock purchase plan based on the estimated fair values.

For non-employee stock-based compensation, the Company applies FASB ASC Topic 505 Equity-Based Payments to Non-Employees, which requires stock-based compensation related to non-employees to be accounted for based on the fair value of the related stock or options or the fair value of the services on the grant date, whichever is more readily determinable in accordance with FASB ASC Topic 718.

Concentrations

Concentrations

All of the Company’s ignition interlock device parts are purchased from one supplier in China. The loss of this supplier could have a material impact on the Company’s ability to timely obtain additional units.

Income Taxes

Income Taxes

The Company accounts for its income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.

The Company also follows ASC 740-10-25, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements in accordance with ASC Topic 740, “Accounting for Income Taxes”. ASC 740-10-25 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, the FASB and the International Accounting Standards Board jointly issued ASU No. 2014-9, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU, as amended, is effective for public entities for annual and interim periods beginning after December 15, 2017. Early adoption is not permitted under U.S. GAAP and retrospective application is permitted, but not required. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial position and results of operations.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statement-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance under U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The ASU is effective for all entities and for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The adoption of ASU No. 2014-15 is not expected to have a significant impact on the Company’s consolidated financial statements and related disclosures.

In November 2015, the FASB issued guidance related to the presentation of deferred income taxes. The guidance requires that deferred tax assets and liabilities are classified as non-current in a consolidated balance sheet. This guidance is effective in the first quarter of 2017 and is not expected to materially impact financial position or net earnings.

In February 2016, the FASB issued a new accounting standard on leasing. The new standard will require companies to record most leased assets and liabilities on the balance sheet, and also proposes a dual model for recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on consolidated financial statements.

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Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consist of the following:

	June 30, 2016			December 31, 2015
Monitoring Units	$	182,398		$	46,150
Furniture, Fixtures, and Equipment		4,798			2,398
Total Assets		187,196			48,548
Less: accumulated depreciation		(19,832	)		(2,901	)
Furniture and Equipment, net		167,364			45,647

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Accrued Expense (Tables)

6 Months Ended

Jun. 30, 2016

Payables and Accruals [Abstract]

Schedule of Other Current Liabilities

Other current liabilities consist of the following:

	June 30, 2016		December 31, 2015
Accrued professional fees	$	750	$	27,013
Accrued wages		8,840		1,949
Accrued payroll taxes		22,529		7,419
Refundable distributorship deposit		17,500		17,500
Total	$	49,619	$	53,881

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Notes Payable (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable consist of the following:

	June 30, 2016					December 31, 2015
	Principal			Accrued Interest		Principal			Accrued Interest
Convertible notes
Convertible note #1		7,500			93		15,000			-
Debt Discount		(5,765	)		-		(8,426	)
Convertible note #2		50,000			1,667		50,000			1,667
Debt Discount		(32,290	)		-		(43,960	)
Subtotal convertible notes net		19,445			1,760		12,614			1,667
Promissory notes
Promissory note #1		6,509			-		10,200			333
Promissory note #2		9,290			-		-			-
Debt Discount		(2,955	)		-		-
Promissory note #3		50,000			-		-			-
Debt Discount		(46,181	)		-		-
Subtotal promissory notes		16,663			-		10,200			333
Royalty notes
Royalty note #1		60,938			-		-			-
Debt Discount		(46,979	)		-		-
Royalty note #2		50,938			-		-			-
Debt Discount		(50,104	)		-		-
Subtotal royalty notes		14,793			-		-			-
Related party promissory note
Related party promissory note		126,171			-		140,407			-
Total		177,072			1,760		163,221			2,000
Current portion		60,275			1,760		66,541			2,000
Long-term portion	$	116,797		$	-	$	96,680		$	-

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Liability

The following table describes the Derivative liability as of June 30, 2016 and December 31, 2015.

Balance December 31, 2015	51,325
Change in fair market value of derivative	19,612
Balance June 30, 2016	70,937

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Warrants (Tables)

6 Months Ended

Jun. 30, 2016

Warrants

Schedule of Warrant Activity

The following table reflects warrant activity during the six months ended June 30, 2016:

	Warrants for		Weighted
	Common		Average
	Shares		Exercise Price
Outstanding as of December 31, 2015		110,000	$	0.72
Granted		-		-
Exercised		-		-
Forfeited, cancelled, expired		-		-
Outstanding as of June 30, 2016		110,000	$	0.72

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Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Income (loss) Per Share

The numerators and denominators used to calculate basic and diluted income (loss) per share are as follows for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Numerator for income (loss) per share:
Net income (loss attributable to common shareholders	$	(160,952	)	$	(141,025	)	$	(342,357	)	$	(253,830	)
Interest savings on convertible notes		-			-			-			-
Numerator for diluted income (loss) per share	$	3,183,983		$	531,780		$	(342,357	)	$	(253,830	)
Denominator for income (loss) per share:
Weighted average common shares		15,407,687			14,978,198			15,407,687			14,932,453
Weighted average preferred shares								-			-
Convertible notes		-			-						-
Warrants		-			-			-			-
Denominator for diluted income (loss) per share		15,407,687			14,978,198			15,407,687			14,932,453

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following shares are not included in the computation of diluted income (loss) per share, because their inclusion would be anti-dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Preferred shares						-		-
Convertible notes		19,038		-		19,751		-
Warrants		110,000		-		110,000		-
Options		-		-		-		-
Total anti-dilutive weighted average shares		129,038		-		129,751		-

Schedule of Dilutive Securities of Common Shares Outstanding

If all dilutive securities had been exercised at June 30, 2016 the total number of common shares outstanding would be as follows:

	June 30, 2016
Common Shares	16,260,500
Preferred Shares	-
Convertible notes	18,104
Warrants	110,000
Options	-
Total potential shares	16,388,604

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Organization and Nature of Business (Details Narrative)	Dec. 31, 2015
Arizona corporation [Member]
Ownership percent	100.00%

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Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Accumulated deficit	$ 1,082,968	$ 731,111
Maximum percentage of carrying value of debt	10.00%

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Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 6,675	$ 120	$ 16,930	$ 240

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Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Total assets	$ 187,196	$ 48,548
Less: accumulated depreciation	(19,832)	(2,901)
Furniture and equipment, net	167,364	45,647
Monitoring Units [Member]
Total assets	182,398	46,150
Furniture, Fixtures, And Equipment [Member]
Total assets	$ 4,798	$ 2,398

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Accrued Expense - Schedule of Other Current Liabilities (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued professional fees	$ 750	$ 27,013
Accrued wages	8,840	1,949
Accrued payroll taxes	22,529	7,419
Refundable distributorship deposit	17,500	17,500
Total	$ 49,619	$ 53,881

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Deferred Revenue (Details Narrative) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Deferred revenue	$ 130,173	$ 81,674
Distributorship Agreements [Member]
Deferred revenue		$ 50,000
Restated [Member] | Distributorship Agreements [Member]
Deferred revenue	$ 59,000

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Notes Payable (Details Narrative)										6 Months Ended
	May 06, 2016 USD ($) shares	Apr. 05, 2016 USD ($) shares	Mar. 30, 2016 USD ($) shares	Mar. 29, 2016 USD ($)	Jan. 29, 2016 USD ($)	Jan. 20, 2016 USD ($)	Dec. 18, 2015 USD ($)	Nov. 24, 2015 USD ($) $ / shares shares	Aug. 07, 2015 USD ($) $ / shares shares	Jun. 30, 2016 USD ($) Installments	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Convertible debenture										$ 7,500		$ 50,000
Conversion of debt value										$ 49,450
Expected dividend rate										0.00%
Volatility										281.00%
Risk free interest rate										0.77%
Amortization of debt discount										$ 52,963
Exchange in cash										157,500
Convertible Notes [Member]
Interest bearing percentage								10.00%	7.50%
Convertible debenture								$ 50,000	$ 15,000
Convertible debt due date								Nov. 19, 2017	Aug. 07, 2017
Percent of loan convertible on trading days								70.00%	70.00%
Debt conversion of convertible percentage								9.90%
Discount on convertible debenture								$ 32,897	$ 5,770
Conversion of debt value	$ 7,500
Conversion of debt into shares | shares	30,000
Warrants outstanding | shares								80,000	30,000
Warrants exercise price | $ / shares								$ 0.80	$ 0.50
Expected term								2 years	3 years
Expected dividend rate								0.00%	0.00%
Volatility								100.00%	100.00%
Risk free interest rate								0.61%	1.08%
Amortization of debt discount								$ 13,783	$ 4,873
Promissory Notes [Member]
Interest bearing percentage			18.00%
Convertible debt due date			Jun. 30, 2018				Jun. 16, 2016
Amortization of debt discount		$ 50,000
Note for principal balance					$ 44,850		$ 10,200
Exchange in cash					29,505
Note paid back via daily each debits					$ 320
Notes payable			$ 50,000
Number of restricted shares issued for exchange | shares		50,000	50,000
Number of restricted shares issued for exchange for cash		$ 50,000	$ 50,000
Royalty Notes [Member]
Net discount										$ 120,000
Royalty Notes [Member] | Royalty Agreement [Member] | CEO [Member]
Company borrowed				$ 55,000
Royalty Notes [Member] | Royalty Agreement [Member] | April 2017 [Member] | CEO [Member]
Repay the principal amount				3,531
Per month amount				937
Pay to lender royalty fee per month				$ 5
Royalty note, description				The Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity.
Royalty Notes [Member] | Royalty Agreement [Member] | Third Party [Member]
Company borrowed						$ 65,000
Royalty Notes [Member] | Royalty Agreement [Member] | Third Party [Member] | February 2017 [Member]
Repay the principal amount						3,531
Per month amount						937
Pay to lender royalty fee per month						$ 5
Royalty note, description						The Company will pay the lender a royalty fee of five ($5) dollars per month for every ignition interlock devise that the Company has on the road in customers’ vehicles up to eight hundred (800) in perpetuity, and for every unit over 800, the Company will owe the lender $1 per month per device in perpetuity.
Related Party Promissory Notes [Member] | Laurence Wainer [Member]
Interest bearing percentage										7.75%
Note for principal balance										$ 160,000
Per month amount										$ 3,205
Interest payable monthly installments | Installments										60

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Notes Payable - Schedule of Notes Payable (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current portion	$ 12,844	$ 10,200
Long-term portion	3,819
Principal [Member]
Total	177,072	163,221
Current portion	60,275	66,541
Long-term portion	116,797	96,680
Accrued Interest [Member]
Total	1,760	2,000
Current portion	1,760	2,000
Long-term portion
Convertible Notes [Member] | Principal [Member]
Total	19,445	12,614
Convertible Notes [Member] | Accrued Interest [Member]
Total	1,760	1,667
Convertible Notes [Member] | Convertible note #1 [Member] | Principal [Member]
Debt discount	(5,765)	(8,426)
Total	7,500	15,000
Convertible Notes [Member] | Convertible note #1 [Member] | Accrued Interest [Member]
Debt discount
Total	93
Convertible Notes [Member] | Convertible note #2 [Member] | Principal [Member]
Debt discount	(32,290)	(43,960)
Total	50,000	50,000
Convertible Notes [Member] | Convertible note #2 [Member] | Accrued Interest [Member]
Debt discount
Total	1,667	1,667
Promissory Notes [Member] | Principal [Member]
Total	16,663	10,200
Promissory Notes [Member] | Accrued Interest [Member]
Total		333
Promissory Notes [Member] | Promissory note #1 [Member] | Principal [Member]
Total	6,509	10,200
Promissory Notes [Member] | Promissory note #1 [Member] | Accrued Interest [Member]
Total		333
Promissory Notes [Member] | Promissory note #2 [Member] | Principal [Member]
Debt discount	(2,955)
Total	9,290
Promissory Notes [Member] | Promissory note #2 [Member] | Accrued Interest [Member]
Debt discount
Total
Promissory Notes [Member] | Promissory note #3 [Member] | Principal [Member]
Debt discount	(46,181)
Total	50,000
Promissory Notes [Member] | Promissory note #3 [Member] | Accrued Interest [Member]
Debt discount
Total
Royalty Notes [Member]
Debt discount	120,000
Royalty Notes [Member] | Principal [Member]
Total	14,793
Royalty Notes [Member] | Accrued Interest [Member]
Total
Royalty Notes [Member] | Royalty Note #1 [Member] | Principal [Member]
Debt discount	(46,979)
Total	60,938
Royalty Notes [Member] | Royalty Note #1 [Member] | Accrued Interest [Member]
Debt discount
Total
Royalty Notes [Member] | Royalty note #2 [Member] | Principal [Member]
Debt discount	(50,104)
Total	50,938
Royalty Notes [Member] | Royalty note #2 [Member] | Accrued Interest [Member]
Debt discount
Total
Related Party Promissory Notes [Member] | Principal [Member]
Total	126,171	140,407
Related Party Promissory Notes [Member] | Accrued Interest [Member]
Total

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Derivative Financial Instruments (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Convertible debt outstanding	$ 7,500	$ 50,000
Gain/loss in derivative liability	$ 19,612
Expected dividend rate	0.00%
Volatility	281.00%
Risk free interest rate	0.77%
Minimum [Member]
Expected term	1 year 4 months 6 days
Maximum [Member]
Expected term	1 year 6 months 29 days

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Derivative Financial Instruments - Schedule of Derivative Liability (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative financial instruments			$ 51,325
Change in fair market value of derivative	$ (15,122)		19,612
Derivative financial instruments	$ 70,937		$ 70,937

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Stockholders' Equity (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Preferred stock, shares authorized	20,000,000		20,000,000
Preferred stock, par value	$ 0.001		$ 0.001
Preferred stock, shares outstanding
Shares issued for services	$ (117,362)
Conversion of debt value	$ 49,450
Common stock, shares outstanding	16,260,500		15,006,750
Common StockHolders [Member]
Common stock voting rights	Holders of common stock are entitled to one vote for each share held
Shares issued for services, shares	147,750
Shares issued for services	$ 107,362
Per share price	$ 0.001
Conversion of debt into shares	80,000
Conversion of debt value	$ 59,450
Investors [Member]
Number of stock sold during period	1,026,000
Number of stock sold during period, value	$ 157,500
Maximum [Member]
Preferred stock, shares authorized	50,000,000

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Warrants - Schedule of Warrant Activity (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2016 $ / shares shares
Warrants for common shares, outstanding, beginning balance | shares	110,000
Warrants for common shares, granted | shares
Warrants for common shares, exercised | shares
Warrants for common shares, forfeited, cancelled, expired | shares
Warrants for common shares, outstanding, ending balance | shares	110,000
Weighted average exercise price, beginning balance | $ / shares	$ 0.72
Weighted average exercise price, granted | $ / shares
Weighted average exercise price, exercised | $ / shares
Weighted average exercise price, forfeited, cancelled, expired | $ / shares
Weighted average exercise price, ending balance | $ / shares	$ 0.72

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Income (Loss) Per Share - Schedule of Basic and Diluted Income (loss) Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Numerator for income (loss) per share: net income (loss) attributable to common shareholders	$ (170,452)	$ (141,025)	$ (351,857)	$ (253,830)
Numerator for income (loss) per share: interest savings on convertible notes
Numerator for income (loss) per share: numerator for diluted income (loss) per share	$ 3,183,983	$ 531,780	$ (342,357)	$ (253,830)
Denominator for income (loss) per share: weighted average common shares	15,407,687	14,978,198	15,407,687	14,932,453
Denominator for income (loss) per share: weighted average preferred shares
Convertible notes
Warrants
Denominator for diluted income (loss) per share	15,407,687	14,978,198	15,407,687	14,932,453

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Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Total anti-dilutive weighted average shares	129,038		129,751
Preferred Shares [Member]
Total anti-dilutive weighted average shares
Convertible Notes [Member]
Total anti-dilutive weighted average shares	19,038		19,751
Warrant [Member]
Total anti-dilutive weighted average shares	110,000		110,000
Options [Member]
Total anti-dilutive weighted average shares

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Income (Loss) Per Share - Schedule of Dilutive Securities of Common Shares Outstanding (Details)	6 Months Ended
	Jun. 30, 2016 shares
Total potential shares	16,388,604
Common Shares [Member]
Total potential shares	16,260,500
Preferred Shares [Member]
Total potential shares
Convertible Notes [Member]
Total potential shares	18,404
Warrants [Member]
Total potential shares	110,000
Options [Member]
Total potential shares

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Commitments and Contingencies (Details Narrative) - USD ($)			1 Months Ended
	Jun. 02, 2016	Jan. 21, 2015	Apr. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Lese term		2 years
Lease amount for per month		$ 1,450
Complaint seeks damages			$ 64,726
Settlement amount	$ 17,500
Refundable distributor deposit	$ 17,500