0001493152-17-009469.txt : 20170816 0001493152-17-009469.hdr.sgml : 20170816 20170815190910 ACCESSION NUMBER: 0001493152-17-009469 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 30 CONFORMED PERIOD OF REPORT: 20170630 FILED AS OF DATE: 20170816 DATE AS OF CHANGE: 20170815 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Digital Donations Technologies, Inc. CENTRAL INDEX KEY: 0001644825 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 474485832 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-55483 FILM NUMBER: 171034989 BUSINESS ADDRESS: STREET 1: 68 SOUTH SERVICE ROAD STREET 2: SUITE 100 CITY: MELVILLE STATE: NY ZIP: 11747 BUSINESS PHONE: 631-465-2163 MAIL ADDRESS: STREET 1: 68 SOUTH SERVICE ROAD STREET 2: SUITE 100 CITY: MELVILLE STATE: NY ZIP: 11747 FORMER COMPANY: FORMER CONFORMED NAME: Fishing Ridge Acquisition Corp DATE OF NAME CHANGE: 20150611 10-Q/A 1 form10-qa.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q/A

Amendment No. 1

 

(Mark One)

 

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2017

 

or

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ___________ to ___________

 

Commission File No. 000-55483

 

DIGITAL DONATIONS TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   47-4485832
(State or other jurisdiction of   (I.R.S. Employer
 incorporation or organization)   Identification No.)

 

68 South Service Road, Suite 100

Melville, New York 11747

(Address of principal executive offices) (zip code)

 

631-465-2163
(Registrant’s telephone number, including area code)

 

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

 

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

 

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

 

Large accelerated filer [  ] Accelerated filer [  ]
Non-accelerated filer [  ] (Do not check if a smaller reporting company) Smaller Reporting Company [X]
Emerging growth company [X]    

 

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

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(1) of the Exchange Act [X]

 

As of August 14, 2017, the Company had 89,447,712 shares of its common stock, par value $.0001 per share, issued and outstanding.

 

 

 

   
 

 

EXPLANATORY NOTE

 

The sole purpose of this Amendment No. 1 to the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 of DIGITAL DONATIONS TECHNOLOGIES, INC. (the “Company”) filed with the Securities and Exchange Commission (the “Form 10-Q”) is to furnish Exhibits 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.

 

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, which was originally filed on August 14, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

 

 2 
   

 

DIGITAL DONATIONS TECHNOLOGIES, INC.

TABLE OF CONTENTS

 

    Page
   
PART I. FINANCIAL INFORMATION  
     
Item 1. Condensed Financial Statements  
  Condensed Consolidated Balance Sheets, June 30, 2017 (unaudited) and December 31, 2016 4
  Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2017 and 2016 (unaudited) 5
  Condensed Consolidated Statements of Cash Flows, Six Months Ended June 30, 2017 and 2016 (unaudited) 7
  Notes to Condensed Financial Statements (unaudited) 8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 11
Item 3. Quantitative and Qualitative Disclosures About Market Risk 14
Item 4. Controls and Procedures 14
   
PART II. OTHER INFORMATION 14
   
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 14
Item 6. Exhibits 15

 

 3 
   

 

DIGITAL DONATIONS TECHNOLOGIES, INC. & SUBSIDIARY

Condensed Consolidated Balance Sheets

 

   June 30,   December 31, 
   2017   2016 
   (Unaudited)   * 
ASSETS          
           
CURRENT ASSETS          
Cash and cash equivalents  $12,994   $23,620 
Accounts receivable - Trade   10,360    11,336 
           
Total Current Assets   23,354    34,956 
           
FIXED ASSETS          
Equipment   13,228    13,228 
Accumulated depreciation   (4,583)   (2,378)
Fixed Assets, net   8,645    10,850 
           
TOTAL ASSETS  $31,999   $45,806 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
           
CURRENT LIABILITIES          
Accounts payable  $11,924   $15,147 
Accrued liabilities   80,839    75,432 
Note payable   30,000    30,000 
           
Total Current Liabilities   122,763    120,579 
           
Commitments and Contingencies          
           
STOCKHOLDERS’ DEFICIT          
Preferred Stock, $0.001 par value; 100,000,000 shares authorized at June 30, 2017 and December 31, 2016; 0 shares issued and outstanding as of June 30, 2017 and December 31, 2016.        - 
Common stock - $0.0001 par value; 300,000,000 shares authorized at June 30, 2017 and December 31, 2016; 89,097,717 and 86,614,766 shares issued, issuable and outstanding at June 30, 2017 and December 31, 2016, respectively.   8,910    8,662 
           
Additional paid-in capital   1,092,920    898,668 
Accumulated deficit   (1,192,594)   (982,103)
           
Total Stockholders’ Deficit   (90,764)   (74,773)
           
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $31,999   $45,806 

 

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

 

* Derived from audited information

 

 4 
   

 

DIGITAL DONATIONS TECHNOLOGIES, INC. & SUBSIDIARY

Condensed Consolidated Statements of Operations

(Unaudited)

 

   For the Six Months Ended 
   June 30, 
   2017   2016 
         
REVENUES          
Payment processing income  $66,162   $70,124 
Service fee income   1,565    0 
Total Gross Revenues   67,726    70,124 
           
Residuals and commissions   16,823    11,341 
           
Net Revenues   50,903    58,783 
           
OPERATING EXPENSES          
Payroll expenses   85,735    81,045 
Stock based compensation   -    4,430 
Sales and marketing   74,847    47,071 
Professional fees   42,959    16,339 
Software development fees   -    13,892 
IT and software   19,681    27,109 
Depreciation expense   2,204    349 
Corporate and office   32,348    25,687 
           
Total Operating Expenses   257,774    215,921 
           
OPERATING LOSS   (206,871)   (157,138)
           
OTHER INCOME AND EXPENSES          
Other income   -    67 
Interest expense   (3,620)   - 
           
Total Other Income and Expense   (3,620)   67 
           
LOSS BEFORE INCOME TAXES          
Provision for income taxes   -    - 
           
NET LOSS  $(210,491)  $(157,071)
           
Basic and Diluted          
Loss per share  $(0.00)  $(0.00)
Weighted average shares outstanding   87,847,958    75,355,914 
           
Pro forma information (Unaudited)          
Net loss from operations       $(157,071)
Pro forma income tax benefit        53,400 
Pro forma net loss       $(103,671)
           
PRO FORMA BASIC AND DILUTED LOSS PER SHARE       $(0.00)

 

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

 

 5 
   

 

DIGITAL DONATIONS TECHNOLOGIES, INC. & SUBSIDIARY

Condensed Consolidated Statements of Operations

(Unaudited)

 

   For the Three Months Ended 
   June 30, 
   2017   2016 
         
REVENUES          
Payment processing income  $35,442   $38,679 
Service fee income   372    0 
Total Gross Revenues   35,814    38,679 
           
Residuals and commissions   9,021    5,803 
           
Net Revenues   26,794    32,876 
           
OPERATING EXPENSES          
Payroll expenses   44,064    41,239 
Stock based compensation   -    - 
Sales and marketing   39,391    32,408 
Professional fees   22,879    6,925 
Software development fees   -    6,397 
IT and software   11,084    13,975 
Depreciation expense   1,102    289 
Corporate and office   16,075    16,622 
           
Total Operating Expenses   134,596    117,855 
           
OPERATING LOSS   (107,802)   (84,979)
           
OTHER INCOME AND EXPENSES          
Other income   -    67 
Interest expense   (1,820)   - 
           
Total Other Income and Expense   (1,820)   67 
           
LOSS BEFORE INCOME TAXES          
Provision for income taxes   -    - 
           
NET LOSS  $(109,622)  $(84,912)
           
Basic and Diluted          
Loss per share  $(0.00)  $(0.00)
Weighted average shares outstanding   84,868,648    64,966,284 
           
Pro forma information (Unaudited)          
Net loss from operations    $(84,912)
Pro forma income tax benefit      28,900 
Pro forma net loss    $(56,012)
           
PRO FORMA BASIC AND DILUTED LOSS PER SHARE    $(0.00)

 

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

 

 6 
   

 

DIGITAL DONATIONS TECHNOLOGIES, INC. & SUBSIDIARY

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

   For the Six Months Ended 
   June 30, 
   2017   2016 
OPERATING ACTIVITIES          
Net loss  $(210,491)  $(157,071)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities:          
Depreciation   2,204    349 
Stock based compensation   -    4,430 
Changes in operating assets and liabilities:          
Accounts receivable   976    (9,828)
Other current assets   -    (1,133)
Accounts payable and accrued expenses   2,184    21,101 
           
Net Cash Used in Operating Activities   (205,127)   (142,151)
           
INVESTING ACTIVITIES          
Purchases of equipment   -    (6,076)
(Advances to)/Repayments from Related Parties, net   -    (5,900)
           
Net Cash Used in Investing Activities   -    (11,976)
           
FINANCING ACTIVITIES          
Common stock issued for cash   194,500    110,000 
           
Net Cash Provided by Financing Activities   194,500    110,000 
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  $(10,626)  $(44,128)
CASH AND CASH EQUIVALENTS, beginning of period   23,620    48,080 
           
CASH AND CASH EQUIVALENTS, end of period  $12,994   $3,952 
Cash paid for interest  $500   $- 
Cash paid for income taxes  $-   $- 
           
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION          

 

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

 

 7 
   

 

DIGITAL DONATIONS TECHNOLOGIES, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2017

 

Note 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

NATURE OF OPERATIONS

 

Digital Donations Technologies, Inc. (formerly Fishing Ridge Acquisition Corporation) (“DDTI”) was incorporated on May 21, 2015 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 intends to develop and distribute creative and innovative fund raising technology and provide payment processing solutions connecting charities and foundations with the consumer and corporate America. The Company anticipates developing fund raising solutions that will expand and enhance the way charities and foundations reach donors. The Company perceives that through the process of integrating a donation request as part of a financial transaction, retailers, e-tailers, ATM owners and service providers will have the ability to create new, or enhance existing, cause marketing programs.

 

RECAPITALIZATION

 

On October 17, 2016, DDTI entered into a merger with Digital Donations, Inc. (the “Company” and post-merger, the “Company” represents the combined entity), which has resulted in the combination of the Company with DDTI through the issuance of 79,084,807 shares of DDTI common stock to the shareholders of the Company on a one-for-one basis in exchange for 100% of the then issued and outstanding shares of the Company’s common stock, and at which time the Company became a wholly owned subsidiary of DDTI. The Company has accounted for this merger as a recapitalization, as DDTI at the time of the merger was a public shell company, with only nominal assets and no operations of its own. The financial statements presented herein are that of Digital Donations, Inc. from its inception through the date of the merger, at which point the net assets of DDTI were included and the equity section restated to that of the DDTI. From the date of the merger and thereafter, these financial statements represent the financial position and results of operations of the consolidated entity.

 

BASIS OF PRESENTATION AND CONSOLIDATION

 

The condensed consolidated balance sheet as of June 30, 2017 and the condensed consolidated statements of operations and cash flows for the six month periods ended June 30, 2017 and 2016 have been prepared by the Company without audit. The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date, but does not include all required year-end disclosures. In the opinion of management, such statements include all adjustments considered necessary to present fairly the Company’s financial position as of June 30, 2017 and December 31, 2016, and its results of operations and cash flows for all periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2016.

 

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017.

 

GOING CONCERN

 

The Company has incurred operating losses since inception as it has sought to develop alternative payments and fundraising solutions to its target market. As of June 30, 2017, the Company had an accumulated deficit of $1,192,594 and a cash balance of $12,994. During the six months ended June 30, 2017 and the year ended December 31, 2016, respectively, the Company incurred net losses of $210,491 and $551,299, negative cash flows from operating activities of $205,127 and $360,332 and had shareholders’ deficits of $(90,764) and $(74,773). These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to fund future operations through additional financing from investors and/or lenders until such time as the Company can reach profitability. In 2017 through the date of this filing, the Company had raised $249,500 in private placement subscriptions. However, there can be no assurance that the Company will be successful in raising the additional funds needed. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

USE OF ESTIMATES

 

The preparation of financial statements in conformity with U.S. GAAP 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 revenues and expenses during the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions that the Company may undertake in the future, actual results could differ from those estimates.

 

 8 
   

 

CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less.

 

INCOME TAXES

 

From its inception through the date of the merger, Digital Donations, Inc. was taxed as an S Corporation under the Internal Revenue Code of the United States. As such, its income or losses were passed through to its shareholders and therefore the benefits of losses or the liability for any taxes due from income was the responsibility of the Company’s shareholders and not the Company. Upon completion of the merger, the status of the Company automatically changed to that of a C Corporation and thus from that day forward, the Company is responsible for all tax liabilities incurred or benefits obtained.

 

Under ASC 740, “Income Taxes,” deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2017 and December 31, 2016, 100% of the net deferred tax assets recorded were fully allowed for due to the uncertainty of the realization of net operating loss or carry forward prior to expiration.

 

RECLASSIFICATIONS

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net income (loss).

 

LOSS PER COMMON SHARE

 

Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of June 30, 2017 and 2016, respectively, there were no outstanding dilutive securities.

 

Note 2. NOTES PAYABLE

 

In August, 2016, the Company entered into a note agreement with an investor and received gross proceeds of $25,000. The note bears interest at the rate of 24% per annum, matures 180 days after issuance and is unsecured.

 

In October, 2016, the Company entered into a second note agreement with the same investor and received gross proceeds of $5,000. The note bears interest at the rate of 24% per annum, matures 180 days after issuance and is unsecured.

 

In February 2017, the Company and the holder entered into a verbal agreement such that maturity was extended until such time as the Company files an S-1 registration statement that is declared effective.

 

In August, 2017, the Company and the holder entered into a verbal agreement such that maturity for both notes was extended 180 days after this oral agreement, or until February, 2018. The notes will continue to bear interest at a rate of 24% per annum.

 

Note 3. STOCKHOLDER’S DEFICIT

 

COMMON STOCK

 

During the first six months of 2017 the Company raised $194,500 in cash proceeds through private placement subscriptions to 2,482,951 shares of the Company’s common stock by two different individuals. Of the total, 2,442,951 shares were sold for $0.07143 a share to one investor and 40,000 shares were sold for $0.50 a share to a separate investor.

 

During the six months ended June 30, 2016, the Company raised $110,000 in cash proceeds through private placement subscriptions at $0.07143 per share and agreed to issue 1,539,969 shares of the Company’s common stock to one individual.

 

Note 4. RELATED PARTY TRANSACTIONS

 

In the six months ended June 30, 2016, the entity was further advanced funds from a related party, but the related party was able to repay all of the 2016 advances plus an additional $9,245 which the Company has shown as a reduction of its general and administrative expense, and at December 31, 2016, the Company had fully reserved all previous advances by the related party.

 

 9 
   

 

Prior to the incorporation of the Company, the founders created and purchased the logo, trade name and trade mark that the Company now uses from the related entity noted above. However, because of serious financial issues suffered by the related entity, the only other product developed outside of the creation and purchase of the logo, trade name and trade mark, was the development of a Point of Sale technology and product that ultimately was discontinued in 2014 since the standard that it was based on became obsolete, and this technology and product will not be used by the Company nor will it be acquired by the Company. In 2017 the Company expects to enter into a transaction with the related entity to acquire the logo, trade name and trade mark and expects to issue its equity in consideration for those items due to the current liquidity situation of the Company. Because the intangible items will be purchased from a related entity, the Company will record the intangible assets purchased at the historical cost incurred by the related entity to acquire those intangibles as the purchase price.

 

Note 5. SUBSEQUENT EVENTS

 

From July 1 through August 12, 2017, the Company sold to two different shareholders an aggregate of 349,995 of its common shares for a total of $55,000. Of the total, 279,995 shares were sold for $0.07143 a share and 70,000 shares were sold for $0.50 a share. As of the date of this filing, 279,995 shares of that aggregate amount were issuable.

 

 10 
   

 

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

 

The following discussion should be read in conjunction with our audited consolidated financial statements and notes to our financial statements included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors discussed elsewhere in this report.

 

Certain information included herein contains statements that may be considered forward-looking statements, such as statements relating to our anticipated revenues, gross margin and operating results, future performance and operations, plans for future expansion, capital spending, sources of liquidity, and financing sources. This forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include those relating to our liquidity requirements, the continued growth of the software industry, the success of our product development, marketing and sales activities, vigorous competition in the software industry, dependence on existing management, leverage and debt service (including sensitivity to fluctuations in interest rates), domestic or global economic conditions, the inherent uncertainty and costs of prolonged arbitration or litigation, and changes in federal or state tax laws or the administration of such laws.

 

Overview

 

The Company is a development stage company and was incorporated in the State of Delaware in May 2015. As of the periods from inception, through the date of this quarterly report, the Company has generated minimal revenue and incurred minimal expenses and operating losses, as part of its development stage activities. For the six month periods ended June 30, 2017 and 2016, respectively, the Company had gross revenues of $67,726 and $70,124, and total operating expenses of $257,774 and $215,921. For the six month periods ended June 30, 2017 and 2016, the Company experienced a net loss of $(210,491) and $(157,071), respectively. As of June 30, 2017, the Company has an accumulated deficit of $(1,192,594) and total liabilities of $122,763.

 

As the result of the acquisition of Digital Donations, Inc. and the change in business and operations of the Company, from an non-operating reporting company, to the business of becoming a provider of alternative fundraising solutions to the nonprofit industry, a discussion of the past, pre-Share Exchange financial results of Digital Donations Technologies, Inc., is not pertinent, and under applicable accounting principles the historical financial results of Digital Donations, Inc. the wholly owned operating subsidiary of Digital Donations Technologies, Inc., the accounting acquirer, prior to the Acquisition Agreement are considered the historical financial results of the Company.

 

The Company anticipates that it would need a minimum of approximately $1,150,000 over the next 12 months to continue as a going concern and bring the company’s products to market within that time frame. Specifically, in order for the Company to fully implement it plans it expects that it will need: (1) $250,000 for the ongoing design and development of new and existing Digital Donations technology, (2) $150,000 for marketing and consulting expenses, (3) $500,000 to hire key personnel and (4) $250,000 for operating expenses. The Company’s executive officers and several of its current shareholders have expressed a willingness and plan to continue to fund the Company’s operations during the next 12 months or until the Company can generate an ongoing source of capital sufficient to independently continue its operations, however, the Company cannot guarantee that it will receive the minimum needed to fund its operations and development for the remainder of 2017.

 

The Company’s independent auditors have expressed substantial doubt as to the ability of the Company to continue as a going concern. Unless the Company is able to generate sufficient cash flow from operations and/or obtain additional financing, there is a substantial doubt as to the ability of the company to continue as a going concern.

 

The following discussion highlights Digital Donations, Inc.’s results of operations and the principal factors that have affected its financial condition as well as its liquidity and capital resources for the periods described, and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on Digital Donations, Inc.’s audited financial statements contained in this registration statement, which have been prepared in accordance with United States generally accepted accounting principles. This discussion and analysis together with such financial statements and the related notes thereto.

 

Equipment Financing

 

The Company has no existing equipment financing arrangements.

 

Alternative Financial Planning

 

The Company has no alternative financial plans at the moment. If the Company is not able to successfully raise monies as needed through a private placement or other securities offering (including, but not limited to, a primary public offering of securities), the Company’s ability to survive as a going concern and implement any part of its business plan or strategy will be severely jeopardized.

 

 11 
   

 

Critical Accounting Policies

 

The preparation of our condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There have been no material changes to the Critical Accounting Policies outlined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

 

Estimates

 

The Company regularly evaluate the accounting estimates that used to prepare the financial statements. A complete summary of these policies is included in the Notes to the audited financial statements. In general, management’s estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

 

Revenue Recognition

 

The Company generates its revenue from administration and service fees of transactions on the Digital Donations fundraising platform, and from residual fees and commissions from the processing of payments made by customers to client merchants via debit or credit cards, or by electronic checks. Revenue from these transactions is accounted for in the monthly period a donation is made or a payment processed.

 

For the brokering of credit card processing fees, the Company recognizes revenues at the time the credit card process transaction is approved, when its fee becomes fixed and determinable. For electronic check processing, the Company recognizes revenue in the same manner, when the check is processed, as at that time its fee becomes fixed and determinable. In addition, because the Company only brokers these services, the revenue recognized is net of the fee charged by the actual process provider.

 

Early Stage of Company and Capital Resources

 

Since its inception, the Company has devoted most of its efforts to business planning, research and development, recruiting management and staff and raising capital. Accordingly, the Company was considered to be in the development stage until it recently began formal operations. The Company has not generated any revenues from its operations, and there is no assurance of future revenues.

 

The Company’s proposed activities will necessitate significant uses of capital beyond 2017.

 

There is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital, or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company. Accordingly, given the Company’s limited cash and cash equivalents on hand, the Company will be unable to implement its business plans and proposed operations unless it obtains additional financing or otherwise is able to generate revenues and profits. The Company may raise additional capital through sales of debt or equity, obtain loan financing or develop and consummate other alternative financial plans.

 

Three Month Period Ended June 30, 2017 Compared to the Three Month Period Ended June 30, 2016

 

Gross Revenues. During the three months ended June 30, 2017, the Company generated gross revenues totaling $35,814, compared to $38,679 in gross revenue for the comparable three month period of 2016. The revenue for both periods was generated primarily through agreements to process customer’s credit card and electronic check payments received.

 

Commissions and Residuals. During the three months ended June 30, 2017, the Company paid $9,021 to third parties in sales related commissions and residuals, compared to $5,803 for the same period of 2016. These costs represent, primarily, the fees the Company incurs to third party providers to perform the electronic processing of the payments and distribution of the funds to all appropriate parties.

 

Operating Expenses. Operating expenses increased $16,741, or 14%, to $134,596 for the quarter ended June 30, 2017 from $117,855 during last year’s second quarter due primarily to an increase in sales and marketing expense of $6,983, an increase of 22% over the same period of 2016. In addition, our professional fees increased 230% in the three month period ended June 30, 2017 compared to the three month period ended June 30, 2016, to $22,879 compared to $6,925. This was the result of the Company becoming a public reporting entity upon the recapitalization and merger with Digital Donations Technologies, Inc. in the fourth quarter of 2016. We expect our professional fees to grow as our Company grows in future periods. These increases were offset by a decrease of $2,890, or 21%, in our IT and software development costs. Also, our corporate and office decreased by 3% in the three month period ended June 30, 2017 compared to the same period ended June 30, 2016. Along with professional fees, we expect our corporate overhead costs to increase we strive to grow our Company in future period. Offsetting these increases, in the quarter ended June 30, 2017, we held off production of certain of our software platform development platforms due to a lack of working capital and as a result our costs in this area decreased $6,397, or 100%, in the three month period ended June 30, 2017, compared to the same three month period of 2016.

 

Net Loss. During the three month period ended June 30, 2017, the Company posted a net loss of $(109,622), compared to a net loss of $(84,912) for the three month period ended June 30, 2016. The $24,710 increase in the loss is primarily the result of the increase in sales and marketing expense noted above.

 

 12 
   

 

Six Month Period Ended June 30, 2017 Compared to the Six Month Period Ended June 30, 2016

 

Gross Revenues. During the six months ended June 30, 2017, the Company generated gross revenues totaling $67,726, compared to $70,124 in gross revenue for the comparable six month period of 2016. The revenue for both periods was generated primarily through agreements to process customer’s credit card and electronic check payments received.

 

Commissions and Residuals. During the six months ended June 30, 2017, the Company paid $16,823 to third parties in sales related commissions and residuals, compared to $11,341 for the same period of 2016. These costs represent, primarily, the fees the Company incurs to third party providers to perform the electronic processing of the payments and distribution of the funds to all appropriate parties.

 

Operating Expenses. Operating expenses increased $41,853, or 19%, to $257,774 through the second quarter of 2017 from $215,921 through last year’s second quarter due primarily to an increase in sales and marketing expense of $27,776, an increase of 59% over the same period of 2016. In addition, our professional fees increased 163% in the six month period ended June 30, 2017 compared to the six month period ended June 30, 2016, to $42,959 compared to $16,339. This was the result of the Company becoming a public reporting entity upon the recapitalization and merger with Digital Donations Technologies, Inc. in the fourth quarter of 2016. We expect our professional fees to grow as our Company grows in future periods. These increases were offset by a decrease of $7,427, or 27%, in our IT and software development costs. Also, our corporate and office increased by 26% in the six month period ended June 30, 2017 compared to the same period ended June 30, 2016. Along with professional fees, we expect our corporate overhead costs to increase we strive to grow our Company in future period. Offsetting these increases, in the quarter ended June 30, 2017, we held off production of certain of our software platform development platforms due to a lack of working capital and as a result our costs in this area decreased $13,892, or 100%, in the six month period ended June 30, 2017, compared to the same six month period of 2016.

 

Net Loss. During the six month period ended June 30, 2017, the Company posted a net loss of $(210,491), compared to a net loss of $(157,071) for the six month period ended June 30, 2016. The $53,420 increase in the loss is primarily the result of the increase in sales and marketing expense noted above.

 

Financial Condition, Liquidity and Capital Resources

 

Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in this Quarterly Report and in the notes to the financial statements, the Company has incurred operating losses, and at June 30, 2017, has a working capital deficiency of approximately $99,409. These factors raise substantial doubt about the ability of the Company to continue as a going concern. Additionally, the Company’s independent registered public accounting firm included an explanatory paragraph in their report for the years ended December 31, 2016 and 2015 regarding concerns about the Company’s ability to continue as a going concern.

 

In order to be able to achieve its strategic goals, the Company needs to further expand its business and financing activities. The Company’s aim to accomplish these goals by further developing its technology platform and correlated services. Expanding the technology platform and payment processing solutions will require future capital and liquidity expansion. Since inception in March 2014, the Company’s shareholders have contributed a significant amount of capital making it possible for it to develop our technology platform, services and activities. To continue to develop its product offerings and to expand services, a significant capital increase has been and will continue to be required. The Company believes it needs to raise additional capital from current shareholders and new investors. If the Company cannot continue as a going concern, its stockholders may lose their entire investment.

 

Cash Flows From Operating Activities. Net cash used by operating activities was $205,127 in the six months ended June 30, 2017 compared to $142,151 in the same period of 2016. Uses of cash during the second quarter of 2017 included a net loss of $(210,491) adjusted for noncash depreciation expense of $2,204. The net loss in the second quarter of 2016 was $(157,071) and was adjusted for a noncash depreciation charge of $349 during the period. Other sources and uses of cash involved changes in operating assets and liabilities, including a decrease in trade accounts receivable in 2017 of $976, compared to an increase of $9,828 during the same period of 2016, and a increase in accounts payable and accrued expenses of $2,184 in 2017, compared to an increase $21,101 during the same period of 2016.

 

Cash Flows From Investing Activities. No cash was provided or used by investing activities during the first six months of 2017. For the six months ended June 30, 2016, cash was used to purchase equipment totaling $6,076, and $5,900 of cash was used to repay an advance from a related party.

 

Cash Flows From Financing Activities. Cash provided from financing activities was $194,500 and $110,000 in the six months ended June 30 of 2017 and 2016, respectively.

 

 13 
   

 

Current Financial Condition. As of June 30, 2017 the Company had a cash balance of $12,994, compared to $23,620 as of December 31, 2016. The Company continues to raise funds under its $5 million private placement offering. For the period from July 1, 2017 through August 12, 2017, the Company raised a further $35,000 under the private placement at $0.50 per share and an additional $20,000 under the private placement at approximately $0.07143 per share. While the Company believes it will be able to raise funds in order to meet the operating cash flow needs of the Company in 2017, there are no firm commitments as of the date of this filing. The Company expects to be able to raise significantly more funds in order to implement its development plan discussed earlier under Item 2 under its private placements upon having its current Registration Statement on Form S-1 declared effective, as the Company believes that will result in investors having significantly more confidence in the Company.

 

Promissory Notes

 

On August 15, 2016, the Company’s wholly-owned subsidiary executed a promissory note in the amount of $25,000 payable in full 180 days from date of execution at an annual interest rate of 24% payable in two quarterly installments commencing on date of execution. This note has been extended by the lender to mature in February, 2018.

 

On October 12, 2016, the Company’s wholly-owned subsidiary executed a promissory note in the amount of $5,000 payable in full 180 days from date of execution at an annual interest rate of 24% payable in two quarterly installments commencing on date of execution. This note has been extended by the lender to mature in February, 2018.

 

Off-Balance Sheet Arrangements

 

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Information not required to be filed by a smaller reporting company.

 

ITEM 4. Controls and Procedures.

 

Disclosure Controls and Procedures

 

Pursuant to Rules adopted by the Securities and Exchange Commission, the Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rules. This evaluation was done as of the end of the period covered by this report by the Company’s principal executive officer (who is also the principal financial officer) in consultation with an outside accounting advisor.

 

Based upon that evaluation, the Company’s principal executive officer has concluded that the Company’s disclosure controls and procedures are not effective in gathering, analyzing and disclosing information needed to ensure that the information required to be disclosed by the Company in its periodic reports is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

The Company intends to engage outside accounting advisors to assist the Company in implementing effective disclosure controls and procedures.

 

Changes in Internal Controls

 

There was no change in the Company’s internal control over financial reporting that was identified in connection with such evaluation that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

PART II — OTHER INFORMATION

 

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

 

The Company has issued the following securities in the last three (3) years. All such securities were issued pursuant to an exemption from registration of the Securities Act of 1933, as amended, as a transaction by an issuer not involving any public offering, as noted below. Each of these transactions was issued as part of a private placement of securities by the Company in which (i) no general advertising or solicitation was used, and (ii) the investors purchasing securities were acquiring the same for investment purposes only, without a view to resale. Furthermore, no underwriters participated or effectuated any of the transactions specified below. Also, no underwriting discounts or commissions applied to any of the transactions set forth below. All potential investors were contacted personally and possessed at the time of their investment bona fide substantive, pre-existing business relationships with the Company and/or its officers, directors and affiliates. No potential investors were contacted through other means, and no general advertising or general solicitation was used to solicit any investors.

 

 14 
   

 

In the past three years, the Company has sold securities which were not registered as follows:

 

The Company issued 10,000,000 shares on its formation in May 2015 to each of James Cassidy and James McKillop of which all but 500,000 shares were redeemed pro rata.

 

As part of a change in control of the Company, on January 8, 2016 the Company issued 5,000,000 shares of its common stock to

 

Keith Orlean     2,500,000 shares  
Jeffrey Marder     2,500,000 shares  

 

In October, 2016, the Company issued 79,084,807 shares of its common stock to 38 shareholders of Digital Donations, Inc. as part of a one-for-one stock exchange in exchange for the shares Digital Donations, Inc. held by each of them.

 

From October 2016 to December 2016, the Company issued to one shareholder an aggregate of 1,819,963 common shares for a total of $130,000 pursuant to a private placement offering.

 

From January 2017 to May 2017, the Company sold to two shareholders an aggregate of 2,342,954 of its common shares for a total of $229,500 pursuant to a private placement offering. As of the date of this filing, 349,993 shares of that aggregate amount were issuable.

 

From April 1 through August 12, 2017, the Company sold to three shareholders an aggregate of 1,189,978 of its common shares for a total of $115,000. As of the date of this filing, 419,992 shares of that aggregate amount were issuable.

 

ITEM 6. EXHIBITS

 

Exhibit No.   Description
     
3.1   Certificate of Incorporation (filed as exhibit to the Form 10-12G)
3.2   By-laws (filed as exhibit to the Form 10-12G)
3.3   Sample stock certificate (filed as exhibit to the Form 10-12G)
10.1   Form of Services Agreement by and between DDI and United Charitable dated June 2014 (filed as exhibit to the Form S-1)
10.2   Form of Strategic Partnership Agreement by and between DDI and Triton Manufacturing dated November 2015 (filed as exhibit to the Form S-1)
10.3   Form of Customer Referral Agreement by and between DDI and WorldPay US, Inc. dated July 2015 (filed as exhibit to the Form S-1)
10.4   Form of License and Intellectual Property Agreement by and between DDI and Nautilus Hyosung America, Inc. dated February 2015 (filed as exhibit to the Form S-1)
10.5   Form of Engagement Agreement by and between DDI and Tiber Creek Corporation dated December 2015 (filed as exhibit to the Form S-1)
10.6   Form of Promissory Note by and between DDI and M. Kimberly Rupert dated August 2016 (filed as exhibit to the Form S-1)
10.7   Form of Promissory Note by and between DDI and M. Kimberly Rupert dated October 2016 (filed as exhibit to the Form S-1)
10.8   Form of Term Sheet by and between Digital Donations Technologies, Inc. and Digital Processing Solutions, Inc. (filed as an exhibit to the Form S-1/A, filed March 24, 2017)
10.9   Form of Joint Marketing Agreement by and between Digital Donations Technologies, Inc. and GEOCommerce, Inc. dated March 2017 (filed as an exhibit to the Form S-1/A, filed June 9, 2017)
31.1*   Rule 15d-14(a) Certification by Principal Executive Officer and Principal Financial Officer
32.1*   Section 1350 Certification of Principal Executive Officer and Principal Financial Officer
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

 

 15 
   

 

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.

 

Dated: August 15, 2017

 

  DIGITAL DONATIONS TECHNOLOGIES, INC.
     
  By: /s/ Keith Orlean
  Name: Keith Orlean
  Title: Chief Executive Officer, Chief Financial Officer

 

 16 
   

EX-31.1 2 ex31-1.htm

 

EXHIBIT 31.1

 

CERTIFICATION PURSUANT TO SECTION 302

 

I, Keith Orlean, certify that:

 

  1. I have reviewed this Form 10-Q of Digital Donations Technologies, Inc. for the period ended June 30, 2017.
     
  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
     
  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
     
  4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  a) Designed such disclosure controls and procedures, or caused 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 evaluations; 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, to the registrant’s auditors and the audit committee of 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: August 15, 2017 /s/ Keith Orlean
  Chief Executive Officer and
  Chief Financial Officer

 

   
 

 

EX-32.1 3 ex32-1.htm

 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Digital Donations Technologies, Inc. (the “Company”) for the quarter ending June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Keith Orlean, Chief Executive Officer and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

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

 

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

 

Dated: August 15, 2017 By: /s/ Keith Orlean
    Keith Orlean
    Chief Executive Officer, Chief Financial Officer

 

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

 

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

 

   
 

 

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The notes will continue to bear interest at a rate of 24% per annum.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Note 3. STOCKHOLDER&#8217;S DEFICIT</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">COMMON STOCK</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During the first six months of 2017 the Company raised $194,500 in cash proceeds through private placement subscriptions to 2,482,951 shares of the Company&#8217;s common stock by two different individuals. 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Additional paid-in capital Accumulated deficit Total Stockholders' Deficit TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT Preferred stock, par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Common stock, par value Common stock, shares authorized Common stock, shares, issued Common stock, shares, outstanding Statement [Table] Statement [Line Items] REVENUES Payment processing income Service fee income Total Gross Revenues Residuals and commissions Net Revenues OPERATING EXPENSES Payroll expenses Stock based compensation Sales and marketing Professional fees Software development fees IT and software Depreciation expense Corporate and office Total Operating Expenses OPERATING LOSS OTHER INCOME AND EXPENSES Other income Interest expense Total Other Income and Expense LOSS BEFORE INCOME TAXES Provision for income taxes NET LOSS Basic and Diluted Loss per share Weighted average shares outstanding Statement of Cash Flows [Abstract] OPERATING ACTIVITIES Net loss Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities: Depreciation Changes in operating assets and liabilities: Accounts receivable Other current assets Accounts payable and accrued expenses Net Cash Used in Operating Activities INVESTING ACTIVITIES Purchases of equipment (Advances to)/Repayments from Related Parties, net Net Cash Used in Investing Activities FINANCING ACTIVITIES Common stock issued for cash Net Cash Provided by Financing Activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, beginning of period CASH AND CASH EQUIVALENTS, end of period Cash paid for interest Cash paid for income taxes SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Accounting Policies [Abstract] Nature of Operations and Summary of Significant Accounting Policies Debt Disclosure [Abstract] Notes Payable Equity [Abstract] Stockholders' Deficit Related Party Transactions [Abstract] Related Party Transactions Subsequent Events [Abstract] Subsequent Events Nature of Operations Recapitalization Basis of Presentation and Consolidation Going Concern Use of Estimates Cash and Cash Equivalents Income Taxes Reclassifications Loss Per Common Share Number of common stock shares issued Ownership percentage Accumulated deficit Cash Net loss Cash flows from operating activities Shareholders' equity (deficit) Proceeds from private placement subscriptions Deferred tax percentage Antidilutive securities excluded from computation of earnings per share amount Gross proceeds Interest rate Maturity date Proceeds from issuance of private placement Shares issued, price per share Advanced amount on a net basis Aggregate number of common shares sold Aggregate number of common shares sold, value Shares issued price per share Going Concern [Policy Text Block] Keith Orlean [Member] Jeffrey Marder [Member] May 12, 2017 [Member] Note Agreement [Member] Second Note Agreement [Member] Two Founders [Member] Investor 2 [Member] Non-Employees [Member] Advanced amount on a net basis. 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Document and Entity Information - shares
6 Months Ended
Jun. 30, 2017
Aug. 14, 2017
Document And Entity Information    
Entity Registrant Name Digital Donations Technologies, Inc.  
Entity Central Index Key 0001644825  
Document Type 10-Q  
Document Period End Date Jun. 30, 2017  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   89,447,712
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2017  
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Condensed Consolidated Balance Sheets - USD ($)
Jun. 30, 2017
Dec. 31, 2016
CURRENT ASSETS    
Cash and cash equivalents $ 12,994 $ 23,620
Accounts receivable - Trade 10,360 11,336
Total Current Assets 23,354 34,956
FIXED ASSETS    
Equipment 13,228 13,228
Accumulated depreciation (4,583) (2,378)
Fixed Assets, net 8,645 10,850
TOTAL ASSETS 31,999 45,806
CURRENT LIABILITIES    
Accounts payable 11,924 15,147
Accrued liabilities 80,839 75,432
Note payable 30,000 30,000
Total Current Liabilities 122,763 120,579
Commitments and Contingencies
STOCKHOLDERS' DEFICIT    
Preferred Stock, $0.001 par value; 100,000,000 shares authorized at June 30, 2017 and December 31, 2016; 0 shares issued and outstanding as of June 30, 2017 and December 31, 2016.
Common stock - $0.0001 par value; 300,000,000 shares authorized at June 30, 2017 and December 31, 2016; 89,097,717 and 86,614,766 shares issued, issuable and outstanding at June 30, 2017 and December 31, 2016, respectively. 8,910 8,662
Additional paid-in capital 1,092,920 898,668
Accumulated deficit (1,192,594) (982,103)
Total Stockholders' Deficit (90,764) (74,773)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 31,999 $ 45,806
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.7.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 300,000,000 300,000,000
Common stock, shares, issued 89,097,717 86,614,766
Common stock, shares, outstanding 89,097,717 86,614,766
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.7.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
REVENUES        
Payment processing income $ 35,442 $ 38,679 $ 66,162 $ 70,124
Service fee income 372 0 1,565 0
Total Gross Revenues 35,814 38,679 67,726 70,124
Residuals and commissions 9,021 5,803 16,823 11,341
Net Revenues 26,794 32,876 50,903 58,783
OPERATING EXPENSES        
Payroll expenses 44,064 41,239 85,735 81,045
Stock based compensation 4,430
Sales and marketing 39,391 32,408 74,847 47,071
Professional fees 22,879 6,925 42,959 16,339
Software development fees 6,397 13,892
IT and software 11,084 13,975 19,681 27,109
Depreciation expense 1,102 289 2,204 349
Corporate and office 16,075 16,622 32,348 25,687
Total Operating Expenses 134,596 117,855 257,774 215,921
OPERATING LOSS (107,802) (84,979) (206,871) (157,138)
OTHER INCOME AND EXPENSES        
Other income 67 67
Interest expense (1,820) (3,620)
Total Other Income and Expense (1,820) 67 (3,620) 67
LOSS BEFORE INCOME TAXES        
Provision for income taxes
NET LOSS $ (109,622) $ (84,912) $ (210,491) $ (157,071)
Basic and Diluted        
Loss per share $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average shares outstanding 84,868,648 64,966,284 87,847,958 75,355,914
Pro Forma [Member]        
OPERATING EXPENSES        
OPERATING LOSS $ (84,912) $ (157,071)
LOSS BEFORE INCOME TAXES        
Provision for income taxes 28,900 53,400
NET LOSS $ (56,012) $ (103,671)
Basic and Diluted        
Loss per share $ (0.00) $ (0.00)
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Condensed Consolidated Statements of Cash Flows (Unaudied) - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
OPERATING ACTIVITIES    
Net loss $ (210,491) $ (157,071)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities:    
Depreciation 2,204 349
Stock based compensation 4,430
Changes in operating assets and liabilities:    
Accounts receivable 976 (9,828)
Other current assets (1,133)
Accounts payable and accrued expenses 2,184 21,101
Net Cash Used in Operating Activities (205,127) (142,151)
INVESTING ACTIVITIES    
Purchases of equipment (6,076)
(Advances to)/Repayments from Related Parties, net (5,900)
Net Cash Used in Investing Activities (11,976)
FINANCING ACTIVITIES    
Common stock issued for cash 194,500 110,000
Net Cash Provided by Financing Activities 194,500 110,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (10,626) (44,128)
CASH AND CASH EQUIVALENTS, beginning of period 23,620 48,080
CASH AND CASH EQUIVALENTS, end of period 12,994 3,952
Cash paid for interest 500
Cash paid for income taxes
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.7.0.1
Nature of Operations and Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Nature of Operations and Summary of Significant Accounting Policies

Note 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

NATURE OF OPERATIONS

 

Digital Donations Technologies, Inc. (formerly Fishing Ridge Acquisition Corporation) (“DDTI”) was incorporated on May 21, 2015 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 intends to develop and distribute creative and innovative fund raising technology and provide payment processing solutions connecting charities and foundations with the consumer and corporate America. The Company anticipates developing fund raising solutions that will expand and enhance the way charities and foundations reach donors. The Company perceives that through the process of integrating a donation request as part of a financial transaction, retailers, e-tailers, ATM owners and service providers will have the ability to create new, or enhance existing, cause marketing programs.

 

RECAPITALIZATION

 

On October 17, 2016, DDTI entered into a merger with Digital Donations, Inc. (the “Company” and post-merger, the “Company” represents the combined entity), which has resulted in the combination of the Company with DDTI through the issuance of 79,084,807 shares of DDTI common stock to the shareholders of the Company on a one-for-one basis in exchange for 100% of the then issued and outstanding shares of the Company’s common stock, and at which time the Company became a wholly owned subsidiary of DDTI. The Company has accounted for this merger as a recapitalization, as DDTI at the time of the merger was a public shell company, with only nominal assets and no operations of its own. The financial statements presented herein are that of Digital Donations, Inc. from its inception through the date of the merger, at which point the net assets of DDTI were included and the equity section restated to that of the DDTI. From the date of the merger and thereafter, these financial statements represent the financial position and results of operations of the consolidated entity.

 

BASIS OF PRESENTATION AND CONSOLIDATION

 

The condensed consolidated balance sheet as of June 30, 2017 and the condensed consolidated statements of operations and cash flows for the six month periods ended June 30, 2017 and 2016 have been prepared by the Company without audit. The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date, but does not include all required year-end disclosures. In the opinion of management, such statements include all adjustments considered necessary to present fairly the Company’s financial position as of June 30, 2017 and December 31, 2016, and its results of operations and cash flows for all periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2016.

 

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017.

 

GOING CONCERN

 

The Company has incurred operating losses since inception as it has sought to develop alternative payments and fundraising solutions to its target market. As of June 30, 2017, the Company had an accumulated deficit of $1,192,594 and a cash balance of $12,994. During the six months ended June 30, 2017 and the year ended December 31, 2016, respectively, the Company incurred net losses of $210,491 and $551,299, negative cash flows from operating activities of $205,127 and $360,332 and had shareholders’ deficits of $(90,764) and $(74,773). These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to fund future operations through additional financing from investors and/or lenders until such time as the Company can reach profitability. In 2017 through the date of this filing, the Company had raised $249,500 in private placement subscriptions. However, there can be no assurance that the Company will be successful in raising the additional funds needed. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

USE OF ESTIMATES

 

The preparation of financial statements in conformity with U.S. GAAP 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 revenues and expenses during the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions that the Company may undertake in the future, actual results could differ from those estimates.

 

CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less.

 

INCOME TAXES

 

From its inception through the date of the merger, Digital Donations, Inc. was taxed as an S Corporation under the Internal Revenue Code of the United States. As such, its income or losses were passed through to its shareholders and therefore the benefits of losses or the liability for any taxes due from income was the responsibility of the Company’s shareholders and not the Company. Upon completion of the merger, the status of the Company automatically changed to that of a C Corporation and thus from that day forward, the Company is responsible for all tax liabilities incurred or benefits obtained.

 

Under ASC 740, “Income Taxes,” deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2017 and December 31, 2016, 100% of the net deferred tax assets recorded were fully allowed for due to the uncertainty of the realization of net operating loss or carry forward prior to expiration.

 

RECLASSIFICATIONS

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net income (loss).

 

LOSS PER COMMON SHARE

 

Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of June 30, 2017 and 2016, respectively, there were no outstanding dilutive securities.

XML 16 R7.htm IDEA: XBRL DOCUMENT v3.7.0.1
Notes Payable
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Notes Payable

Note 2. NOTES PAYABLE

 

In August, 2016, the Company entered into a note agreement with an investor and received gross proceeds of $25,000. The note bears interest at the rate of 24% per annum, matures 180 days after issuance and is unsecured.

 

In October, 2016, the Company entered into a second note agreement with the same investor and received gross proceeds of $5,000. The note bears interest at the rate of 24% per annum, matures 180 days after issuance and is unsecured.

 

In February 2017, the Company and the holder entered into a verbal agreement such that maturity was extended until such time as the Company files an S-1 registration statement that is declared effective.

 

In August, 2017, the Company and the holder entered into a verbal agreement such that maturity for both notes was extended 180 days after this oral agreement, or until February, 2018. The notes will continue to bear interest at a rate of 24% per annum.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.7.0.1
Stockholders' Deficit
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
Stockholders' Deficit

Note 3. STOCKHOLDER’S DEFICIT

 

COMMON STOCK

 

During the first six months of 2017 the Company raised $194,500 in cash proceeds through private placement subscriptions to 2,482,951 shares of the Company’s common stock by two different individuals. Of the total, 2,442,951 shares were sold for $0.07143 a share to one investor and 40,000 shares were sold for $0.50 a share to a separate investor.

 

During the six months ended June 30, 2016, the Company raised $110,000 in cash proceeds through private placement subscriptions at $0.07143 per share and agreed to issue 1,539,969 shares of the Company’s common stock to one individual.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.7.0.1
Related Party Transactions
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

Note 4. RELATED PARTY TRANSACTIONS

 

In the six months ended June 30, 2016, the entity was further advanced funds from a related party, but the related party was able to repay all of the 2016 advances plus an additional $9,245 which the Company has shown as a reduction of its general and administrative expense, and at December 31, 2016, the Company had fully reserved all previous advances by the related party.

 

Prior to the incorporation of the Company, the founders created and purchased the logo, trade name and trade mark that the Company now uses from the related entity noted above. However, because of serious financial issues suffered by the related entity, the only other product developed outside of the creation and purchase of the logo, trade name and trade mark, was the development of a Point of Sale technology and product that ultimately was discontinued in 2014 since the standard that it was based on became obsolete, and this technology and product will not be used by the Company nor will it be acquired by the Company. In 2017 the Company expects to enter into a transaction with the related entity to acquire the logo, trade name and trade mark and expects to issue its equity in consideration for those items due to the current liquidity situation of the Company. Because the intangible items will be purchased from a related entity, the Company will record the intangible assets purchased at the historical cost incurred by the related entity to acquire those intangibles as the purchase price.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events

Note 5. SUBSEQUENT EVENTS

 

From July 1 through August 12, 2017, the Company sold to two different shareholders an aggregate of 349,995 of its common shares for a total of $55,000. Of the total, 279,995 shares were sold for $0.07143 a share and 70,000 shares were sold for $0.50 a share. As of the date of this filing, 279,995 shares of that aggregate amount were issuable.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
Nature of Operations and Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Nature of Operations

NATURE OF OPERATIONS

 

Digital Donations Technologies, Inc. (formerly Fishing Ridge Acquisition Corporation) (“DDTI”) was incorporated on May 21, 2015 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 intends to develop and distribute creative and innovative fund raising technology and provide payment processing solutions connecting charities and foundations with the consumer and corporate America. The Company anticipates developing fund raising solutions that will expand and enhance the way charities and foundations reach donors. The Company perceives that through the process of integrating a donation request as part of a financial transaction, retailers, e-tailers, ATM owners and service providers will have the ability to create new, or enhance existing, cause marketing programs.

Recapitalization

RECAPITALIZATION

 

On October 17, 2016, DDTI entered into a merger with Digital Donations, Inc. (the “Company” and post-merger, the “Company” represents the combined entity), which has resulted in the combination of the Company with DDTI through the issuance of 79,084,807 shares of DDTI common stock to the shareholders of the Company on a one-for-one basis in exchange for 100% of the then issued and outstanding shares of the Company’s common stock, and at which time the Company became a wholly owned subsidiary of DDTI. The Company has accounted for this merger as a recapitalization, as DDTI at the time of the merger was a public shell company, with only nominal assets and no operations of its own. The financial statements presented herein are that of Digital Donations, Inc. from its inception through the date of the merger, at which point the net assets of DDTI were included and the equity section restated to that of the DDTI. From the date of the merger and thereafter, these financial statements represent the financial position and results of operations of the consolidated entity.

Basis of Presentation and Consolidation

BASIS OF PRESENTATION AND CONSOLIDATION

 

The condensed consolidated balance sheet as of June 30, 2017 and the condensed consolidated statements of operations and cash flows for the six month periods ended June 30, 2017 and 2016 have been prepared by the Company without audit. The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements as of that date, but does not include all required year-end disclosures. In the opinion of management, such statements include all adjustments considered necessary to present fairly the Company’s financial position as of June 30, 2017 and December 31, 2016, and its results of operations and cash flows for all periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2016.

 

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017.

Going Concern

GOING CONCERN

 

The Company has incurred operating losses since inception as it has sought to develop alternative payments and fundraising solutions to its target market. As of June 30, 2017, the Company had an accumulated deficit of $1,192,594 and a cash balance of $12,994. During the six months ended June 30, 2017 and the year ended December 31, 2016, respectively, the Company incurred net losses of $210,491 and $551,299, negative cash flows from operating activities of $205,127 and $360,332 and had shareholders’ deficits of $(90,764) and $(74,773). These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to fund future operations through additional financing from investors and/or lenders until such time as the Company can reach profitability. In 2017 through the date of this filing, the Company had raised $249,500 in private placement subscriptions. However, there can be no assurance that the Company will be successful in raising the additional funds needed. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Use of Estimates

USE OF ESTIMATES

 

The preparation of financial statements in conformity with U.S. GAAP 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 revenues and expenses during the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions that the Company may undertake in the future, actual results could differ from those estimates.

Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less.

Income Taxes

INCOME TAXES

 

From its inception through the date of the merger, Digital Donations, Inc. was taxed as an S Corporation under the Internal Revenue Code of the United States. As such, its income or losses were passed through to its shareholders and therefore the benefits of losses or the liability for any taxes due from income was the responsibility of the Company’s shareholders and not the Company. Upon completion of the merger, the status of the Company automatically changed to that of a C Corporation and thus from that day forward, the Company is responsible for all tax liabilities incurred or benefits obtained.

 

Under ASC 740, “Income Taxes,” deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2017 and December 31, 2016, 100% of the net deferred tax assets recorded were fully allowed for due to the uncertainty of the realization of net operating loss or carry forward prior to expiration.

Reclassifications

RECLASSIFICATIONS

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net income (loss).

Loss Per Common Share

LOSS PER COMMON SHARE

 

Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of June 30, 2017 and 2016, respectively, there were no outstanding dilutive securities.

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Nature of Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Oct. 17, 2016
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Dec. 31, 2015
Accounting Policies [Abstract]              
Number of common stock shares issued 79,084,807            
Ownership percentage 100.00%            
Accumulated deficit   $ 1,192,594   $ 1,192,594   $ 982,103  
Cash   12,994 $ 3,952 12,994 $ 3,952 23,620 $ 48,080
Net loss   109,622 $ 84,912 210,491 157,071 551,299  
Cash flows from operating activities       205,127 $ 142,151 360,332  
Shareholders' equity (deficit)   $ (90,764)   (90,764)   $ (74,773)  
Proceeds from private placement subscriptions       $ 249,500      
Deferred tax percentage       100.00%   100.00%  
Antidilutive securities excluded from computation of earnings per share amount          
XML 22 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Notes Payable (Details Narrative) - USD ($)
1 Months Ended 6 Months Ended
Oct. 31, 2016
Aug. 31, 2016
Jun. 30, 2017
Verbal Agreement [Member] | August, 2017 [Member]      
Interest rate     24.00%
Maturity date     180 days
Investor [Member] | Note Agreement [Member]      
Gross proceeds   $ 25,000  
Interest rate   24.00%  
Maturity date   180 days  
Investor [Member] | Second Note Agreement [Member]      
Gross proceeds $ 5,000    
Interest rate 24.00%    
Maturity date 180 days    
XML 23 R14.htm IDEA: XBRL DOCUMENT v3.7.0.1
Stockholders’ Deficit (Details Narrative) - USD ($)
6 Months Ended
Oct. 17, 2016
Jun. 30, 2017
Jun. 30, 2016
Proceeds from issuance of private placement   $ 249,500  
Number of common stock shares issued 79,084,807    
Individual One [Member]      
Number of common stock shares issued   2,442,951 1,539,969
Shares issued, price per share   $ 0.07143  
Individual Two [Member]      
Number of common stock shares issued   40,000  
Shares issued, price per share   $ 0.50  
Private Placement [Member] | Common Stock [Member]      
Proceeds from issuance of private placement   $ 194,500 $ 110,000
Number of common stock shares issued   2,482,951  
Shares issued, price per share     $ 0.07143
XML 24 R15.htm IDEA: XBRL DOCUMENT v3.7.0.1
Related Party Transactions (Details Narrative)
6 Months Ended
Jun. 30, 2017
USD ($)
Related Party Transactions [Abstract]  
Advanced amount on a net basis $ 9,245
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events (Details Narrative) - USD ($)
1 Months Ended
Oct. 17, 2016
Aug. 12, 2017
Aggregate number of common shares sold 79,084,807  
Subsequent Event [Member] | Two Shareholders [Member]    
Aggregate number of common shares sold   349,995
Aggregate number of common shares sold, value   $ 55,000
Subsequent Event [Member] | Two Shareholders [Member] | Common Stock One [Member]    
Aggregate number of common shares sold   279,995
Shares issued price per share   $ 0.07143
Subsequent Event [Member] | Two Shareholders [Member] | Common Stock Two [Member]    
Aggregate number of common shares sold   70,000
Shares issued price per share   $ 0.50
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