0001393905-18-000173.txt : 20180514 0001393905-18-000173.hdr.sgml : 20180514 20180514172040 ACCESSION NUMBER: 0001393905-18-000173 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 40 CONFORMED PERIOD OF REPORT: 20180331 FILED AS OF DATE: 20180514 DATE AS OF CHANGE: 20180514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PwrCor, Inc. CENTRAL INDEX KEY: 0000733337 STANDARD INDUSTRIAL CLASSIFICATION: SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153] IRS NUMBER: 133186327 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09370 FILM NUMBER: 18831922 BUSINESS ADDRESS: STREET 1: 60 EAST 42ND STREET STREET 2: 46TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10165 BUSINESS PHONE: 212-796-4097 MAIL ADDRESS: STREET 1: 60 EAST 42ND STREET STREET 2: 46TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10165 FORMER COMPANY: FORMER CONFORMED NAME: RECEIVABLE ACQUISITION & MANAGEMENT CORP DATE OF NAME CHANGE: 20040824 FORMER COMPANY: FORMER CONFORMED NAME: FEMINIQUE CORP DATE OF NAME CHANGE: 19990730 FORMER COMPANY: FORMER CONFORMED NAME: BIOPHARMACEUTICS INC// DATE OF NAME CHANGE: 19990730 10-Q 1 pwco_10q.htm QUARTERLY REPORT 10Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 10-Q


(Mark One)

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

For the quarterly period ended March 31, 2018

or


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

For the transition period from ______________ to ______________


Commission File Number: 001-09370


PWRCOR, INC.

(Exact Name of Registrant as Specified in the Charter)


Delaware

 

13-3186327

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer Identification No.)

 

 

 

60 E. 42nd Street, Suite 4600

 

 

New York, NY

 

10165

(Address of Principal Executive Offices)

 

(Zip Code)


(212) 796-4097

(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 [X]  No [  ]


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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

[  ]

Smaller reporting company

[X]

(Do not check if smaller reporting company)

 

Emerging growth company

[  ]


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


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


As of May 14, 2018, there were 207,662,722 shares of the registrant’s common stock outstanding.





TABLE OF CONTENTS



PART I. FINANCIAL INFORMATION

3

Item 1. Financial Statements

3

Balance Sheets As Of March 31, 2018 (Unaudited) And December 31, 2017

4

Statement of Operations for the Three Months ended March 31, 2018 and 2017 (Unaudited)

5

Statement of Stockholders’ Equity for the Three Months Ended March 31, 2018 (Unaudited)

6

Statement of Cash Flows for the Three Months Ended March 31, 2018 and 2017 (Unaudited)

7

Notes to Financial Statements (Unaudited)

8

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

13

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

15

Item 4. Controls and Procedures.

15

PART II. OTHER INFORMATION

16

Item 1. Legal Proceedings

16

Item 1A. Risk Factors.

16

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

16

Item 3. Defaults Upon Senior Securities

16

Item 4. Mine Safety Disclosure

16

Item 5. Other Information

16

Item 6. Exhibits

17

SIGNATURES

18
























2




PART I. FINANCIAL INFORMATION


Item 1. Financial Statements



PwrCor, Inc.


Financial Statements

For the Three Months Ended

March 31, 2018










































3




PwrCor, Inc.


Balance Sheet



 

March 31,

2018

 

December 31,

2017

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

Cash

$

82,995

 

$

114,217

Accounts receivable, net of allowance for doubtful accounts

 

304,190

 

 

215,993

Prepaid expenses and deposits

 

55,450

 

 

54,667

Total Current Assets

 

442,635

 

 

384,877

 

 

 

 

 

 

Intangible asset - license agreement

 

91,125

 

 

94,500

 

 

 

 

 

 

Fixed asset - engines, net of accumulated depreciation

 

24,690

 

 

22,154

 

 

 

 

 

 

Total Assets

$

558,450

 

$

501,531

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Accounts payable and accrued expenses

$

549,515

 

$

441,950

Total Current Liabilities

 

549,515

 

 

441,950

 

 

 

 

 

 

Common stock, $0.001 par value: 325,000,000 shares

  authorized; 207,662,722 shares issued and outstanding

  at both March 31, 2018 and December 31, 2017

 

207,662

 

 

207,662

Additional paid-in capital

 

960,224

 

 

960,224

Retained earnings (deficit)

 

(1,158,951)

 

 

(1,108,305)

Total Stockholders’ Equity

 

8,935

 

 

59,581

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

$

558,450

 

$

501,531















See notes to financial statements



4




PwrCor, Inc.


Statement of Operations

(Unaudited)



 

Three Months Ended

March 31

 

2018

 

2017

 

 

 

 

 

 

REVENUE

 

 

 

 

 

Project Management

$

276,761

 

$

231,602

Heat Conversion Technology

 

47,852

 

 

30,442

 

 

 

 

 

 

Total Revenue

 

324,613

 

 

262,044

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

Consulting fees

 

208,820

 

 

167,717

Engine Production

 

41,247

 

 

42,193

General and Administrative

 

59,740

 

 

44,576

Legal and other professional  fees

 

65,452

 

 

77,050

 

 

 

 

 

 

Total Expenses

 

375,259

 

 

331,536

 

 

 

 

 

 

Net (Loss)

$

(50,646)

 

$

(69,492)

 

 

 

 

 

 

Net (Loss) per Common Share

$

(0.00)

 

$

(0.00)

 

 

 

 

 

 

Weighted Average Common

Shares Outstanding

 

207,662,722

 

 

200,739,432


















See notes to financial statements



5




PwrCor, Inc.


Statement of Stockholders’ Equity

For the Three Months Ended March 31, 2018

 (Unaudited)



 

 

Common Stock

 

Additional

 

Retained

 

Total

 

 

Number of

Shares

 

Amount

 

Paid-in

Capital

 

Earnings

(Deficit)

 

Stockholders’

Equity

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2017

 

207,662,722

$

207,662

$

960,224

$

(1,108,305)

$

59,581

Net (Loss)

 

-

 

-

 

-

 

(50,646)

 

(50,646)

Balance, March 31, 2018

 

207,662,722

$

207,662

$

960,224

$

(1,158,951)

$

8,935



































See notes to financial statements



6




PwrCor, Inc.


Statement of Cash Flows

(Unaudited)




 

Three Months Ended

March 31

 

2018

 

2017

 

 

 

 

 

 

NET (LOSS)

$

(50,646)

 

$

(69,492)

Adjustments to reconcile net (loss) to net cash

  provided (used) by operating activities

 

 

 

 

 

Depreciation and amortization

 

5,322

 

 

1,710

Bad debt expense

 

58,704

 

 

-

Changes in Assets and Liabilities

 

 

 

 

 

    Decrease (increase) in accounts receivable

 

(146,901)

 

 

25,436

    Increase (decrease) in accounts payable and accrued expenses

 

118,350

 

 

44,508

    Decrease (increase) in prepaid expenses and deposits

 

(783)

 

 

(966)

    Decrease (increase) in contract liabilities

 

-

 

 

(30,442)

    Decrease (increase) in accrued engine development costs

 

(10,786)

 

 

-

      Total Adjustments

 

23,907

 

 

40,246

 

 

 

 

 

 

      Net Cash (Used) by Operating Activities

 

(26,739)

 

 

(29,246)

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Purchase of fixed assets

 

(4,483)

 

 

-

      Net Cash (Used) in Investing Activities

 

(4,483)

 

 

-

 

 

 

 

 

 

Net increase (decrease) in cash

 

(31,222)

 

 

(29,246)

 

 

 

 

 

 

Cash, beginning of period

 

114,217

 

 

90,764

 

 

 

 

 

 

Cash, end of period

$

82,995

 

$

61,518













See notes to financial statements



7



PwrCor, Inc.


Notes to Financial Statements

March 31, 2018

(Unaudited)


1. Organization and Nature of Business


PwrCor, Inc. (the “Company” or “PwrCor”) was until the first quarter of 2017 named Receivable Acquisition & Management Corporation (“RAMCO”) and doing business as Cornerstone Sustainable Energy. RAMCO, a public reporting entity, was in the business to purchase, manage and collect defaulted consumer receivables.


Cornerstone Program Advisors LLC (“Cornerstone”), a Delaware limited liability company, is an energy infrastructure project management company focused on healthcare and higher learning institutions. Sustainable Energy Industries, Inc. (“Sustainable”) is a New York corporation involved in developing and improving the efficiency of energy infrastructure using advanced proprietary technologies.  As a result of a reverse merger acquisition (the “Merger”) between RAMCO, Cornerstone, and Sustainable during 2013, the Company adopted a business plan to build on the business of Cornerstone and Sustainable in energy infrastructure and alternative energy.


In January 2017, the Company’s shareholders approved a name change to PwrCor, Inc., which became effective on March 3, 2017.


Note 2. Significant Accounting Policies


Basis of Presentation and Use of Estimates


The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include recognition of revenue for work completed and unbilled to customers, the allowance for doubtful accounts. Actual results could differ from those estimates.


The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth.  The Company raised $665,000 in gross capital during the second half of 2017 and, over time, expects to seek additional capital to cover any working capital needs, and to fund growth initiatives in its identified markets.  However, there can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all.  The continued operations of the Company are dependent on its ability to raise funds, collect accounts receivable, and generate revenue.


Unaudited Financial Statements


The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. The unaudited financial statements should be read in conjunction with those financial statements included in the Company’s Form 10-K for the year ended December 31, 2017.  In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended March 31, 2018, are not necessarily indicative of the results that may be expected for the year ending December 31, 2018.


Cash


The Company continually monitors its positions with, and the credit quality of, the financial institutions it invests with. From time to time, however briefly, the Company maintains balances in operating accounts in excess of federally insured limits.



8



PwrCor, Inc.


Notes to Financial Statements

March 31, 2018

(Unaudited)


2. Significant Accounting Policies (continued)


Accounts Receivable


Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. At March 31, 2018, and December 31, 2017, an allowance for doubtful accounts was made totaling $58,704 and $63,270, respectively, to provide for the possibility of a revenue shortfall from the project in Modoc County, and is reflected in the accounts receivable balance on the balance sheet in the accompanying financial statements.  


Revenue Recognition


The Company’s revenue is recognized when the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct.


Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis.


The Company’s performance obligations under its engine business are generally satisfied as over time. Revenue from products or services transferred to its customer over time accounted for approximately 14.7% and 11.6% of revenue for the three months ended March 31, 2018 and 2017, respectively. Revenue under this contract is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company’s performance to date under the terms of the contract.


Accounting for over time contracts involves the use of various techniques to estimate total revenue and costs. The Company estimates profit on such contracts as the difference between total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, costs and availability of materials. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards and incentive fees. These amounts of variable consideration are not expected to be significant. Additionally, contract estimates may include additional revenue for submitted contract modifications if there exists and enforceable right to the modification, the amount can be reasonably estimated and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company’s best judgment at the time. These amounts are generally included in the contract’s transaction price and are allocated over the remaining performance obligations. Changes in judgments on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated income.


The Company may receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Statement of Operations.



9



PwrCor, Inc.


Notes to Financial Statements

March 31, 2018

(Unaudited)


2. Significant Accounting Policies (continued)


The majority of the Company’s revenue is from products and services transferred to customers at a point in time and was approximately 85.3% and 88.4% of revenue for the three months ended March 31, 2018 and 2017, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment.  


The timing of revenue recognition, billings and cash collections results in billed receivables, costs in excess of billings (contract assets), and billings in excess of costs (contract liabilities, previously deferred revenue) on the Balance Sheet. Contract liabilities additionally include customer advances or prepayments. Costs in excess of billings and billings in excess of costs associated with over time contracts were not significant at March 31, 2018 or 2017. Revenue recognized during the three months ended March 31, 2018 and 2017 that was included in contract liabilities at the beginning of the period was $0 and $34,587, respectively.   


On March 31, 2018, the Company had no remaining performance obligations.


Fixed Assets


Fixed assets are being depreciated on the straight line basis over a period of five years.


Income Taxes


The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by the tax authorities. Management has analyzed the Company’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2013 - 2016).


Basic and Diluted Net Income (Loss) per Share


The Company computes income (loss) per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted income (loss) per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive.


The Company’s outstanding warrants are anti-dilutive, and accordingly basic (loss) and diluted (loss) per share are the same.


Recent Accounting Pronouncements


In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of 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 or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period.




10



PwrCor, Inc.


Notes to Financial Statements

March 31, 2018

(Unaudited)


2. Significant Accounting Policies (continued)


The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company’s sale of services are generally recognized either when services are performed (i.e. point in time) or under engine sales contracts, as the Company transfers control of the product or service to its customers (i.e. over time), which approximates the previously used percentage-of-completion method of accounting. As such, the adoption of ASU 2014-09 had no material impact to the Company’s financial position or results of operations; however, the Company has now presented the disclosures required by this new standard herein.


All other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.


3. Related Party Transactions


Consulting Fees


Certain stockholders of the Company and entities affiliated with management perform services to customers and were compensated at various rates. Total consulting expenses incurred by these entities for the three months ended March 31, 2018 and 2017 amounted to $143,454 and $132,795, respectively. Amounts payable to these stockholders and entities at March 31, 2018 and 2017 totaled $144,875 and $133,548, respectively.


4. License Agreement


At the time of the Merger, Sustainable had a series of agreements including an exclusive, renewable 20-year engine technology license agreement (the “Agreement”) with a third party licensor that had developed engines capable of converting heat into other forms of energy. The agreements were assigned to the Company.  Under the terms of the Agreement, it could be cancelled by the Company during the term once the patents upon which it was based expired. The newer of two patents expired in August of 2017, and the Company elected at that time to exercise its right to cancel the Agreement.


The third party licensor had been classified in 2010 as dissolved by the Delaware Division of Corporations, and similarly by the Arizona Corporation Commission, and has not reinstated its charters. Despite this status, during July, 2017, the Company received a demand letter from the principal of that firm claiming that an aggregate total of $1,104,367 was due the firm under the Agreement, and to the principal for consulting work. The Company and its counsel believe that the claims are without merit and would vigorously defend any potential lawsuit. The Company believes it has no outstanding obligation to either party, and took the remaining unamortized asset value of the Agreement, $20,307, as a charge against earnings in the third quarter of 2017.


Subsequently, in December, 2017, the Company entered into an intellectual property license agreement with Thermal Tech Holdings, LLC, a Delaware limited liability company (“TTH”). TTH is an entity owned equally by two entities affiliated, respectively, with two directors of the Company, who also serve in management positions with TTH.


TTH is the owner of certain patent applications as well as the inventions relating to the Company’s proprietary engine technology (the “Licensed Patents and Technical Information”). The Licensed Patents and Technical Information were developed by an independent non-profit research institute (the “Contractor”). All work done by the Contractor was paid for by TTH in order that TTH, rather than the Company, would be at risk if the research, development, engineering and design work were of little or no value. Furthermore, the work performed by the Contractor for TTH was confidential for competitive business reasons.



11



PwrCor, Inc.


Notes to Financial Statements

March 31, 2018

(Unaudited)


4. License Agreement (continued)


The Patent License grants the Company a worldwide non-exclusive license to use the Technical Information to make, use or sell any products and/or services which would be covered by these specific Licensed Patents.  However, TTH may not license any Licensed Patents and Technical Information to any competitive entity, or to any other entity without the prior written consent of the Company.


The agreement calls for the Company to pay TTH a royalty equal to five percent (5%) of the Net Revenue (as defined) of all Licensed Products covered by a Licensed Patent sold by the Company and its affiliates, as well as an initial license fee of $135,000.  The Patent License will terminate upon the expiration of all Licensed Patents. The Company may terminate the agreement on ninety (90) days’ prior written notice. TTH may terminate the agreement on ninety (90) days’ prior written notice for uncured defaults (as defined).


The accompanying March 31, 2018 balance sheet presents the carrying value of the license fee at $91,125, which is net of an unpaid balance of $40,500 and $3,375 in accumulated amortization.  The cost of the license agreement is being amortized over ten years.


5. Concentrations


The Company grants credit in the normal course of business to its customers.  The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk.


Two customers accounted for 92.9% and 7.1%, respectively, of total project management revenue during the three months ended March 31, 2018, and two customers accounted for 90.1% and 9.9%, respectively, during the three months ended March 31, 2017.


Two project management customers accounted for 93.1% and 6.9%, respectively, of total project management accounts receivable at March 31, 2018, and for 90.1% and 9.9%, respectively, at March 31, 2017.  Project management accounts receivable constituted 94.2% of receivables at March 31, 2018, but all of receivables as of March 31, 2017.


All of the revenue from the Company’s heat conversion technology was from the same customer in the quarters ended March 31, 2018 and March 31, 2017.


6. Stock Issuance


In September and October 2017, the Company issued 6,650,000 shares of common stock at a per share price of $0.10 to thirteen individual investors in return for a capital infusion of $665,000.  Each share issued was accompanied by a warrant for one-half share of common stock; the warrants are exercisable at a price of $0.30 per share.  The Company claims an exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder.  No commissions were paid and no underwriter or placement agent was involved in this transaction. The proceeds of this transaction were used for the Company’s working capital and general corporate purposes.


7. Subsequent Events


Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued.




12




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


The following management’s discussion and analysis should be read in conjunction with the Company’s historical consolidated financial statements and the related notes thereto included in our audited financial statements for the year ended December 31, 2017, and the notes thereto.  The management’s discussion and analysis contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect” and the like, and/or future tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this quarterly report. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this quarterly report.


Overview


On May 15, 2013, Receivable Acquisition & Management Corporation, a Delaware corporation completed the acquisition of Cornerstone Program Advisors LLC, a Delaware limited liability company (“Cornerstone”) and Sustainable Energy Industries, Inc., a Delaware corporation (“Sustainable”), and the Company assumed the operations of each of these entities (the “Merger”).  Receivable Acquisition & Management Corporation had operated as a business purchasing and collecting upon defaulted consumer receivables; those operations were ceased and collections on any remaining receivables are being run off.  Cornerstone has been in the business of managing energy infrastructure projects, specializing in the non-profit marketplace.  Sustainable is in the business of developing, marketing, and implementing clean tech technologies.  The Company has refocused on managing energy infrastructure projects and developing applications for an environmentally benign heat conversion technology with particular focus on the geothermal and waste-heat-to-energy production markets.


Shareholders approved a name change to PwrCor, Inc. at the shareholder meeting in January, 2017, by a large majority of shareholder votes.  The corporate name change in Delaware to “PwrCor, Inc.” was effective on March 3, 2017.


Results of Operations


During the three month period ended March 31, 2018, the Company had a net (loss) of ($50,646) on revenues of $324,613, versus a net (loss) of ($69,492) on revenues of $262,044 in the three month period ended March 31, 2017.  The results in the first fiscal quarter of 2018 reflected the winding down of expenses on the engine project in California and reduced shareholder-related expenses, as well as an improvement in project management revenues.


Revenue


Revenues from the Company’s major customer showed an increase of approximately 24%, largely attributable to some increased activity with the customer. The margin of project management revenue over the corresponding cost of subcontracted consultants for such projects has remained approximately steady from 2017 to 2018. This gross profit for the three month period ended March 31, 2018, was 17% of revenues, versus 18% for the corresponding period in 2017.


In the three month period ended March 31, 2018, revenues showed a 23.9% increase as compared to the corresponding period in 2017.  The revenue increase for the period is a consequence of engine revenue from the previously announced engine project in California as well as higher project management billings.






13



Operating Expenses


Total operating expenses for the three month period ended March 31, 2018 were $375,259, versus $331,536 during the three month period ended March 31, 2017. The 13.2% increase in operating expenses in the three month period in 2018 against the corresponding period in 2017 was almost entirely due to higher consulting fees associated with the higher project management activity.


Consulting Expenses


The Company outsources a significant portion of its project management, oversight and advisory activities to a carefully selected group of small firms, individuals and subcontractors with expertise specific to the projects underway. As of the quarter ended March 31, 2018, the Company was using six such consulting resources. Consulting expenses consistently constitute the bulk of operating costs for the project advisory and management business activities of the Company, and accordingly generally track revenue.


Liquidity and Capital Resources


As of March 31, 2018, the Company had a working capital deficit (that is, total current assets minus total current liabilities) of ($106,880) versus ($57,073) as of year ended December 31, 2017. This deficit increase was due primarily to a growth in accrued expenses that exceeded the growth in accrued receivables.


As of March 31, 2018, the Company had net cash of $82,995 versus $114,217 at December 31, 2017. For the three months ended March 31, 2018, net cash (used) by operating activities was ($26,739) versus ($29,246) for the three months ended March 31, 2017. The change in net cash used by operating activities for the three month period in 2017 to net cash used by operating activities in the recent three month period resulted largely from changes in working capital accounts related to the conclusion of the project in California.


For the three month periods ended March 31, 2018 and March 31, 2017, no cash was expended or provided by financing activities.  Cash was used in the quarter ended March 31, 2018 in investing activities for the purchase of capital equipment in the amount of $4,483, while none was used in the comparable 2017 period.


The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth. The Company has been exploring options and alternatives to fund growth initiatives in its identified markets. However, there can be no assurance that the Company will be able to raise sufficient capital on acceptable terms. The continued operations of the Company are dependent on its ability to collect its receivables and increase revenues.


Income Taxes


The Company did not record any income tax provision for the three month period ended March 31, 2018, and does not expect any material income tax liability for the period.


Critical Accounting Policy & Estimates


Our Management’s Discussion and Analysis of Financial Condition and Results of Operations section discusses our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period.


On an ongoing basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.



14



Actual results may differ from these estimates under different assumptions and conditions. The most significant accounting estimates inherent in the preparation of our financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources. These accounting policies are described at relevant sections in this discussion and analysis and in the condensed consolidated financial statements included in this quarterly report.


Off-Balance Sheet Arrangements


The Company has no off-balance sheet arrangements.


Item 3. Quantitative and Qualitative Disclosures about Market Risk.


The Issuer is not required to provide the information called for in this item due to its status as a Smaller Reporting Company.


Item 4. Controls and Procedures.


Evaluation of disclosure controls and procedures


The term “disclosure controls and procedures” is defined in Rules 13(a)-15e and 15(d) - 15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s principal executive officer and principal financial officer has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2018. He has concluded that, as of March 31, 2018, our disclosures, controls and procedures were effective to ensure that:


(1)

Information required to be disclosed by the Company in reports that it files or submits under the act is recorded, processed, summarized and reported, within the time periods specified in the Commissions’ rules and forms; and


(2)

Controls and procedures are designed by the Company to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management including the principal executive and principal financial officers or persons performing similar functions, as appropriate to allow timely decisions regarding financial disclosure.


This term refers to the controls and procedures of a Company that are designed to ensure that information required to be disclosed by a Company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within the required time periods. Management continues to take steps to improve its controls and procedures, and expects, further, that the growing scale of the business will enable the Company to obtain additional resources to assist in that effort.


Changes in Internal Control over Financial Reporting


There were no changes in the Company’s internal control over financial reporting or in any other factors that could significantly affect these controls during the quarter ended March 31, 2018, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.









15




PART II. OTHER INFORMATION


Item 1. Legal Proceedings


The Company is not a party to any material pending legal proceedings or a proceeding being contemplated by a governmental authority nor is any of the Company’s property the subject of any pending legal proceedings or a proceeding being contemplated by a governmental authority except as set forth in our Annual Report on Form 10-K for December 31, 2017 from which there have been no material changes.


Item 1A. Risk Factors.


None.



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


None.


Item 3. Defaults Upon Senior Securities


None.



Item 4. Mine Safety Disclosure


Not Applicable.



Item 5. Other Information


None.



















16




Item 6. Exhibits


Exhibit Number

 

Exhibit Title

31

 

Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32

 

Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS *

 

XBRL Instance Document

101.SCH *

 

XBRL Taxonomy Schema

101.CAL *

 

XBRL Taxonomy Calculation Linkbase

101.DEF *

 

XBRL Taxonomy Definition Linkbase

101.LAB *

 

XBRL Taxonomy Label Linkbase

101.PRE *

 

XBRL Taxonomy Presentation Linkbase


In accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not filed.


* Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed 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.


































17




SIGNATURES


In accordance with the requirements of the Exchange Act, the Company has caused this report to be signed by the undersigned, thereunto duly authorized.


 

 

PWRCOR, INC.

 

 

 

Date:  May 14, 2018

By:

/s/ Thomas Telegades

 

Name:

Thomas Telegades

 

Title:

Chief Executive Officer

 

 

Interim Chief Financial Officer

 

 

(Principal Executive Officer, Interim Principal Financial Officer

and Principal Accounting Officer)








































18


EX-31 2 pwco_ex31.htm CERTIFICATION ex-31

EXHIBIT 31

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

AND INTERIM PRINCIPAL FINANCIAL OFFICER

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


I, Thomas Telegades, the Chief Executive Officer and Interim Chief Financial Officer of PwrCor, Inc., certify that:


1.

I have reviewed this quarterly report on Form 10-Q of PwrCor, Inc., for the quarter ended March 31, 2018;


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.

I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the 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.

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


(a)

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


(b)

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


Date: May 14, 2018

By:  /s/ Thomas Telegades

 

Name: Thomas Telegades

 

Title: Chief Executive Officer, Interim Chief Financial Officer

 

(Principal Executive Officer, Interim Principal Financial Officer and Principal Accounting Officer)




EX-32 3 pwco_ex32.htm CERTIFICATION ex-32

EXHIBIT 32


CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

AND INTERIM PRINCIPAL FINANCIAL OFFICER

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



In connection with the quarterly report of PwrCor, Inc., (the “Company”) on Form 10Q for the quarter ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas Telegades, the Chief Executive Officer and Interim Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:


1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and


2.

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



Date: May 14, 2018

By:  /s/ Thomas Telegades

 

Name: Thomas Telegades

 

Title: Chief Executive Officer, Interim Chief Financial Officer

 

(Principal Executive Officer, Interim Principal Financial Officer and Principal Accounting Officer)








EX-101.INS 4 pwco-20180331.xml 82995 114217 304190 215993 55450 54667 442635 384877 94500 24690 22154 558450 501531 549515 441950 549515 441950 549515 441950 207662 207662 960224 960224 -1158951 -1108305 8935 59581 558450 501531 0.001 0.001 325000000 325000000 207662722 207662722 207662722 207662722 276761 231602 47852 30442 324613 262044 208820 167717 41247 42193 59740 44576 65452 77050 375259 331536 0.00 0.00 207662722 200739432 207662722 207662 960224 -1108305 59581 -50646 -50646 207662722 207662 960224 -1158951 8935 <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>1. Organization and Nature of Business</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>PwrCor, Inc. (the &#147;Company&#148; or &#147;PwrCor&#148;) was until the first quarter of 2017 named Receivable Acquisition &amp; Management Corporation (&#147;RAMCO&#148;) and doing business as Cornerstone Sustainable Energy. RAMCO, a public reporting entity, was in the business to purchase, manage and collect defaulted consumer receivables. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Cornerstone Program Advisors LLC (&#147;Cornerstone&#148;), a Delaware limited liability company, is an energy infrastructure project management company focused on healthcare and higher learning institutions. Sustainable Energy Industries, Inc. (&#147;Sustainable&#148;) is a New York corporation involved in developing and improving the efficiency of energy infrastructure using advanced proprietary technologies. As a result of a reverse merger acquisition (the &#147;Merger&#148;) between RAMCO, Cornerstone, and Sustainable during 2013, the Company adopted a business plan to build on the business of Cornerstone and Sustainable in energy infrastructure and alternative energy.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In January 2017, the Company&#146;s shareholders approved a name change to PwrCor, Inc., which became effective on March 3, 2017.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>Note 2. Significant Accounting Policies</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Basis of Presentation and Use of Estimates</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include recognition of revenue for work completed and unbilled to customers, the allowance for doubtful accounts. Actual results could differ from those estimates.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth. The Company raised $665,000 in gross capital during the second half of 2017 and, over time, expects to seek additional capital to cover any working capital needs, and to fund growth initiatives in its identified markets. However, there can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all. The continued operations of the Company are dependent on its ability to raise funds, collect accounts receivable, and generate revenue.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Unaudited Financial Statements</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. The unaudited financial statements should be read in conjunction with those financial statements included in the Company&#146;s Form 10-K for the year ended December 31, 2017. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended March 31, 2018, are not necessarily indicative of the results that may be expected for the year ending December 31, 2018.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Cash</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company continually monitors its positions with, and the credit quality of, the financial institutions it invests with. From time to time, however briefly, the Company maintains balances in operating accounts in excess of federally insured limits.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Accounts Receivable</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. At March 31, 2018, and December 31, 2017, an allowance for doubtful accounts was made totaling $58,704 and $63,270, respectively, to provide for the possibility of a revenue shortfall from the project in Modoc County, and is reflected in the accounts receivable balance on the balance sheet in the accompanying financial statements.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><i>Revenue Recognition</i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company&#146;s revenue is recognized when the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract&#146;s transaction price is allocated to each distinct performance obligation. The majority of the Company&#146;s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company&#146;s performance obligations under its engine business are generally satisfied as over time. Revenue from products or services transferred to its customer over time accounted for approximately 14.7% and 11.6% of revenue for the three months ended March 31, 2018 and 2017, respectively. Revenue under this contract is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company&#146;s performance to date under the terms of the contract.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Accounting for over time contracts involves the use of various techniques to estimate total revenue and costs. The Company estimates profit on such contracts as the difference between total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, costs and availability of materials. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards and incentive fees. These amounts of variable consideration are not expected to be significant. Additionally, contract estimates may include additional revenue for submitted contract modifications if there exists and enforceable right to the modification, the amount can be reasonably estimated and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company&#146;s best judgment at the time. These amounts are generally included in the contract&#146;s transaction price and are allocated over the remaining performance obligations. Changes in judgments on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated income.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company may receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Statement of Operations.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The majority of the Company&#146;s revenue is from products and services transferred to customers at a point in time and was approximately 85.3% and 88.4% of revenue for the three months ended March 31, 2018 and 2017, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The timing of revenue recognition, billings and cash collections results in billed receivables, costs in excess of billings (contract assets), and billings in excess of costs (contract liabilities, previously deferred revenue) on the Balance Sheet. Contract liabilities additionally include customer advances or prepayments. Costs in excess of billings and billings in excess of costs associated with over time contracts were not significant at March 31, 2018 or 2017. Revenue recognized during the three months ended March 31, 2018 and 2017 that was included in contract liabilities at the beginning of the period was $0 and $34,587, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>On March 31, 2018, the Company had no remaining performance obligations.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Fixed Assets</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Fixed assets are being depreciated on the straight line basis over a period of five years.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Income Taxes</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company recognizes the tax benefits of uncertain tax positions only where the position is &#147;more likely than not&#148; to be sustained assuming examination by the tax authorities. Management has analyzed the Company&#146;s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2013 - 2016).</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Basic and Diluted Net Income (Loss) per Share</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company computes income (loss) per share in accordance with &#147;ASC-260&#148;, &#147;Earnings per Share&#148; which requires presentation of both basic and diluted income (loss) per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company&#146;s outstanding warrants are anti-dilutive, and accordingly basic (loss) and diluted (loss) per share are the same.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Recent Accounting Pronouncements</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In May 2014, the FASB issued Accounting Standards Update (&#147;ASU&#148;) 2014-09, &#147;Revenue from Contracts with Customers (Topic 606)&#148; (&#147;ASU 2014-09&#148;), which supersedes the revenue recognition requirements in ASC 605, &#147;Revenue Recognition.&#148; ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of 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 or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company&#146;s sale of services are generally recognized either when services are performed (i.e. point in time) or under engine sales contracts, as the Company transfers control of the product or service to its customers (i.e. over time), which approximates the previously used percentage-of-completion method of accounting. As such, the adoption of ASU 2014-09 had no material impact to the Company&#146;s financial position or results of operations; however, the Company has now presented the disclosures required by this new standard herein.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>All other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>3. Related Party Transactions</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Consulting Fees</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Certain stockholders of the Company and entities affiliated with management perform services to customers and were compensated at various rates. Total consulting expenses incurred by these entities for the three months ended March 31, 2018 and 2017 amounted to $143,454 and $132,795, respectively. Amounts payable to these stockholders and entities at March 31, 2018 and 2017 totaled $144,875 and $133,548, respectively.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>4. License Agreement</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>At the time of the Merger, Sustainable had a series of agreements including an exclusive, renewable 20-year engine technology license agreement (the &#147;Agreement&#148;) with a third party licensor that had developed engines capable of converting heat into other forms of energy. The agreements were assigned to the Company.&#160; Under the terms of the Agreement, it could be cancelled by the Company during the term once the patents upon which it was based expired. The newer of two patents expired in August of 2017, and the Company elected at that time to exercise its right to cancel the Agreement.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The third party licensor had been classified in 2010 as dissolved by the Delaware Division of Corporations, and similarly by the Arizona Corporation Commission, and has not reinstated its charters. Despite this status, during July, 2017, the Company received a demand letter from the principal of that firm claiming that an aggregate total of $1,104,367 was due the firm under the Agreement, and to the principal for consulting work. The Company and its counsel believe that the claims are without merit and would vigorously defend any potential lawsuit. The Company believes it has no outstanding obligation to either party, and took the remaining unamortized asset value of the Agreement, $20,307, as a charge against earnings in the third quarter of 2017.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Subsequently, in December, 2017, the Company entered into an intellectual property license agreement with Thermal Tech Holdings, LLC, a Delaware limited liability company (&#147;TTH&#148;). TTH is an entity owned equally by two entities affiliated, respectively, with two directors of the Company, who also serve in management positions with TTH.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>TTH is the owner of certain patent applications as well as the inventions relating to the Company&#146;s proprietary engine technology (the &#147;Licensed Patents and Technical Information&#148;). The Licensed Patents and Technical Information were developed by an independent non-profit research institute (the &#147;Contractor&#148;). All work done by the Contractor was paid for by TTH in order that TTH, rather than the Company, would be at risk if the research, development, engineering and design work were of little or no value. Furthermore, the work performed by the Contractor for TTH was confidential for competitive business reasons.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Patent License grants the Company a worldwide non-exclusive license to use the Technical Information to make, use or sell any products and/or services which would be covered by these specific Licensed Patents.&#160; However, TTH may not license any Licensed Patents and Technical Information to any competitive entity, or to any other entity without the prior written consent of the Company.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The agreement calls for the Company to pay TTH a royalty equal to five percent (5%) of the Net Revenue (as defined) of all Licensed Products covered by a Licensed Patent sold by the Company and its affiliates, as well as an initial license fee of $135,000. The Patent License will terminate upon the expiration of all Licensed Patents. The Company may terminate the agreement on ninety (90) days&#146; prior written notice. TTH may terminate the agreement on ninety (90) days&#146; prior written notice for uncured defaults (as defined).</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The accompanying March 31, 2018 balance sheet presents the carrying value of the license fee at $91,125, which is net of an unpaid balance of $40,500 and $3,375 in accumulated amortization.&#160; The cost of the license agreement is being amortized over ten years.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>5. Concentrations</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company grants credit in the normal course of business to its customers. The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Two customers accounted for 92.9% and 7.1%, respectively, of total project management revenue during the three months ended March 31, 2018, and two customers accounted for 90.1% and 9.9%, respectively, during the three months ended March 31, 2017.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Two project management customers accounted for 93.1% and 6.9%, respectively, of total project management accounts receivable at March 31, 2018, and for 90.1% and 9.9%, respectively, at March 31, 2017. Project management accounts receivable constituted 94.2% of receivables at March 31, 2018, but all of receivables as of March 31, 2017.</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>All of the revenue from the Company&#146;s heat conversion technology was from the same customer in the quarters ended March 31, 2018 and March 31, 2017. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>6. Stock Issuance</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In September and October 2017, the Company issued 6,650,000 shares of common stock at a per share price of $0.10 to thirteen individual investors in return for a capital infusion of $665,000. Each share issued was accompanied by a warrant for one-half share of common stock; the warrants are exercisable at a price of $0.30 per share. The Company claims an exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder. No commissions were paid and no underwriter or placement agent was involved in this transaction. The proceeds of this transaction were used for the Company&#146;s working capital and general corporate purposes.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>7. Subsequent Events</b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><i>Basis of Presentation and Use of Estimates</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include recognition of revenue for work completed and unbilled to customers, the allowance for doubtful accounts. Actual results could differ from those estimates.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth. The Company raised $665,000 in gross capital during the second half of 2017 and, over time, expects to seek additional capital to cover any working capital needs, and to fund growth initiatives in its identified markets. However, there can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all. The continued operations of the Company are dependent on its ability to raise funds, collect accounts receivable, and generate revenue.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><i>Cash</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company continually monitors its positions with, and the credit quality of, the financial institutions it invests with. From time to time, however briefly, the Company maintains balances in operating accounts in excess of federally insured limits.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><i>Accounts Receivable</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. At March 31, 2018, and December 31, 2017, an allowance for doubtful accounts was made totaling $58,704 and $63,270, respectively, to provide for the possibility of a revenue shortfall from the project in Modoc County, and is reflected in the accounts receivable balance on the balance sheet in the accompanying financial statements.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b><i>Revenue Recognition</i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company&#146;s revenue is recognized when the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract&#146;s transaction price is allocated to each distinct performance obligation. The majority of the Company&#146;s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company&#146;s performance obligations under its engine business are generally satisfied as over time. Revenue from products or services transferred to its customer over time accounted for approximately 14.7% and 11.6% of revenue for the three months ended March 31, 2018 and 2017, respectively. Revenue under this contract is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company&#146;s performance to date under the terms of the contract.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Accounting for over time contracts involves the use of various techniques to estimate total revenue and costs. The Company estimates profit on such contracts as the difference between total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, costs and availability of materials. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards and incentive fees. These amounts of variable consideration are not expected to be significant. Additionally, contract estimates may include additional revenue for submitted contract modifications if there exists and enforceable right to the modification, the amount can be reasonably estimated and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company&#146;s best judgment at the time. These amounts are generally included in the contract&#146;s transaction price and are allocated over the remaining performance obligations. Changes in judgments on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated income.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company may receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Statement of Operations.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The majority of the Company&#146;s revenue is from products and services transferred to customers at a point in time and was approximately 85.3% and 88.4% of revenue for the three months ended March 31, 2018 and 2017, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The timing of revenue recognition, billings and cash collections results in billed receivables, costs in excess of billings (contract assets), and billings in excess of costs (contract liabilities, previously deferred revenue) on the Balance Sheet. Contract liabilities additionally include customer advances or prepayments. Costs in excess of billings and billings in excess of costs associated with over time contracts were not significant at March 31, 2018 or 2017. Revenue recognized during the three months ended March 31, 2018 and 2017 that was included in contract liabilities at the beginning of the period was $0 and $34,587, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>On March 31, 2018, the Company had no remaining performance obligations.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><i>Fixed Assets</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Fixed assets are being depreciated on the straight line basis over a period of five years.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><i>Income Taxes</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company recognizes the tax benefits of uncertain tax positions only where the position is &#147;more likely than not&#148; to be sustained assuming examination by the tax authorities. Management has analyzed the Company&#146;s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2013 - 2016).</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><i>Basic and Diluted Net Income (Loss) per Share</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company computes income (loss) per share in accordance with &#147;ASC-260&#148;, &#147;Earnings per Share&#148; which requires presentation of both basic and diluted income (loss) per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company&#146;s outstanding warrants are anti-dilutive, and accordingly basic (loss) and diluted (loss) per share are the same.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b><i>Recent Accounting Pronouncements</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>In May 2014, the FASB issued Accounting Standards Update (&#147;ASU&#148;) 2014-09, &#147;Revenue from Contracts with Customers (Topic 606)&#148; (&#147;ASU 2014-09&#148;), which supersedes the revenue recognition requirements in ASC 605, &#147;Revenue Recognition.&#148; ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of 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 or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company&#146;s sale of services are generally recognized either when services are performed (i.e. point in time) or under engine sales contracts, as the Company transfers control of the product or service to its customers (i.e. over time), which approximates the previously used percentage-of-completion method of accounting. As such, the adoption of ASU 2014-09 had no material impact to the Company&#146;s financial position or results of operations; however, the Company has now presented the disclosures required by this new standard herein.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>All other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.</p> 58704 63270 143454 132795 144875 133548 91125 92.9% and 7.1% 90.1% and 9.9% 93.1% and 6.9% 90.1% and 9.9% 94.2% 6650000 0.10 665000 10-Q 2018-03-31 false PwrCor, Inc. 0000733337 pwco --12-31 207662722 Smaller Reporting Company Yes No No 2018 Q1 -50646 -69492 5322 1710 58704 -146901 25436 118350 44508 -783 -966 -30442 -10786 23907 40246 -26739 -29246 4483 -4483 -31222 -29246 114217 90764 82995 61518 0000733337 2018-01-01 2018-03-31 0000733337 2018-05-14 0000733337 2018-03-31 0000733337 2017-12-31 0000733337 2017-01-01 2017-03-31 0000733337 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0000733337 us-gaap:StockholdersEquityTotalMember 2018-01-01 2018-03-31 0000733337 us-gaap:CommonStockMember 2017-12-31 0000733337 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000733337 us-gaap:RetainedEarningsMember 2017-12-31 0000733337 us-gaap:StockholdersEquityTotalMember 2017-12-31 0000733337 us-gaap:CommonStockMember 2018-03-31 0000733337 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000733337 us-gaap:RetainedEarningsMember 2018-03-31 0000733337 us-gaap:StockholdersEquityTotalMember 2018-03-31 0000733337 2016-12-31 0000733337 2017-03-31 0000733337 fil:TwoCustomersMember 2018-01-01 2018-03-31 0000733337 fil:TwoCustomersMember 2017-01-01 2017-03-31 0000733337 fil:TwoProjectManagementCustomersMember 2018-01-01 2018-03-31 0000733337 fil:TwoProjectManagementCustomersMember 2017-01-01 2017-03-31 0000733337 fil:TotalProjectManagementCustomersMember 2018-01-01 2018-03-31 0000733337 2017-01-01 2017-12-31 xbrli:shares iso4217:USD iso4217:USD shares EX-101.SCH 5 pwco-20180331.xsd 000220 - 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Document and Entity Information - shares
3 Months Ended
Mar. 31, 2018
May 14, 2018
Document and Entity Information    
Entity Registrant Name PwrCor, Inc.  
Document Type 10-Q  
Document Period End Date Mar. 31, 2018  
Amendment Flag false  
Entity Central Index Key 0000733337  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   207,662,722
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q1  
Trading Symbol pwco  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.8.0.1
BALANCE SHEET - USD ($)
Mar. 31, 2018
Dec. 31, 2017
CURRENT ASSETS    
Cash $ 82,995 $ 114,217
Accounts receivable 304,190 215,993
Prepaid expenses and deposits 55,450 54,667
Total current assets 442,635 384,877
Intangible asset - license agreement 91,125 94,500
Fixed asset - engines 24,690 22,154
TOTAL ASSETS 558,450 501,531
CURRENT LIABILITIES    
Accounts payable and accrued expenses 549,515 441,950
Total current liabilities 549,515 441,950
TOTAL LIABILITIES 549,515 441,950
STOCKHOLDERS' EQUITY    
Common stock value 207,662 207,662
Additional paid-in capital 960,224 960,224
Retained earnings (deficit) and adjustments (1,158,951) (1,108,305)
Total stockholders' equity 8,935 59,581
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 558,450 $ 501,531
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Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2018
Dec. 31, 2017
Balance Sheet    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 325,000,000 325,000,000
Common stock, shares issued 207,662,722 207,662,722
Common stock, shares outstanding 207,662,722 207,662,722
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STATEMENT OF OPERATIONS - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
INCOME    
Project management $ 276,761 $ 231,602
Heat conversion technology 47,852 30,442
Total income 324,613 262,044
EXPENSES    
Consulting fees 208,820 167,717
Engine production 41,247 42,193
General and administrative 59,740 44,576
Legal and other professional fees 65,452 77,050
Total expenses 375,259 331,536
NET INCOME (LOSS) $ (50,646) $ (69,492)
NET INCOME (LOSS) PER COMMON SHARE $ 0.00 $ 0.00
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 207,662,722 200,739,432
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STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2018 - USD ($)
Common Stock
Additional Paid-in Capital
Retained Earnings (Deficit)
Total Stockholders' Equity
Beginning Balance, shares at Dec. 31, 2017 207,662,722      
Beginning Balance, amount at Dec. 31, 2017 $ 207,662 $ 960,224 $ (1,108,305) $ 59,581
Net income (loss) for the period     (50,646) (50,646)
Ending Balance, shares at Mar. 31, 2018 207,662,722      
Ending Balance, amount at Mar. 31, 2018 $ 207,662 $ 960,224 $ (1,158,951) $ 8,935
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
STATEMENT OF CASH FLOWS - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
NET INCOME (LOSS) $ (50,646) $ (69,492)
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 5,322 1,710
Provision for uncollectable receivables 58,704  
Changes in assets and liabilities:    
Decrease (increase) in accounts receivable (146,901) 25,436
Increase (decrease) in accounts payable and accrued expenses 118,350 44,508
Decrease (increase) in prepaid expenses and deposits (783) (966)
Decrease (increase) in contract liabilities   (30,442)
Increase (decrease) in accrued engine development expense (10,786)  
Total adjustments 23,907 40,246
Net cash provided (used) by operating activities (26,739) (29,246)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of fixed assets 4,483  
Net cash provided (used) by investing activities (4,483)  
CASH FLOWS FROM FINANCING ACTIVITIES    
NET INCREASE (DECREASE) IN CASH (31,222) (29,246)
CASH, BEGINNING OF PERIOD 114,217 90,764
CASH, END OF PERIOD $ 82,995 $ 61,518
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.8.0.1
Organization and Nature of Business
3 Months Ended
Mar. 31, 2018
Notes  
Organization and Nature of Business

1. Organization and Nature of Business

 

PwrCor, Inc. (the “Company” or “PwrCor”) was until the first quarter of 2017 named Receivable Acquisition & Management Corporation (“RAMCO”) and doing business as Cornerstone Sustainable Energy. RAMCO, a public reporting entity, was in the business to purchase, manage and collect defaulted consumer receivables.

 

Cornerstone Program Advisors LLC (“Cornerstone”), a Delaware limited liability company, is an energy infrastructure project management company focused on healthcare and higher learning institutions. Sustainable Energy Industries, Inc. (“Sustainable”) is a New York corporation involved in developing and improving the efficiency of energy infrastructure using advanced proprietary technologies. As a result of a reverse merger acquisition (the “Merger”) between RAMCO, Cornerstone, and Sustainable during 2013, the Company adopted a business plan to build on the business of Cornerstone and Sustainable in energy infrastructure and alternative energy.

 

In January 2017, the Company’s shareholders approved a name change to PwrCor, Inc., which became effective on March 3, 2017.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies
3 Months Ended
Mar. 31, 2018
Notes  
Significant Accounting Policies

Note 2. Significant Accounting Policies

 

Basis of Presentation and Use of Estimates

 

The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include recognition of revenue for work completed and unbilled to customers, the allowance for doubtful accounts. Actual results could differ from those estimates.

 

The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth. The Company raised $665,000 in gross capital during the second half of 2017 and, over time, expects to seek additional capital to cover any working capital needs, and to fund growth initiatives in its identified markets. However, there can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all. The continued operations of the Company are dependent on its ability to raise funds, collect accounts receivable, and generate revenue.

 

Unaudited Financial Statements

 

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. The unaudited financial statements should be read in conjunction with those financial statements included in the Company’s Form 10-K for the year ended December 31, 2017. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended March 31, 2018, are not necessarily indicative of the results that may be expected for the year ending December 31, 2018.

 

Cash

 

The Company continually monitors its positions with, and the credit quality of, the financial institutions it invests with. From time to time, however briefly, the Company maintains balances in operating accounts in excess of federally insured limits.

 

Accounts Receivable

 

Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. At March 31, 2018, and December 31, 2017, an allowance for doubtful accounts was made totaling $58,704 and $63,270, respectively, to provide for the possibility of a revenue shortfall from the project in Modoc County, and is reflected in the accounts receivable balance on the balance sheet in the accompanying financial statements.

 

Revenue Recognition

 

The Company’s revenue is recognized when the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct.

 

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis.

 

The Company’s performance obligations under its engine business are generally satisfied as over time. Revenue from products or services transferred to its customer over time accounted for approximately 14.7% and 11.6% of revenue for the three months ended March 31, 2018 and 2017, respectively. Revenue under this contract is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company’s performance to date under the terms of the contract.

 

Accounting for over time contracts involves the use of various techniques to estimate total revenue and costs. The Company estimates profit on such contracts as the difference between total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, costs and availability of materials. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards and incentive fees. These amounts of variable consideration are not expected to be significant. Additionally, contract estimates may include additional revenue for submitted contract modifications if there exists and enforceable right to the modification, the amount can be reasonably estimated and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company’s best judgment at the time. These amounts are generally included in the contract’s transaction price and are allocated over the remaining performance obligations. Changes in judgments on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated income.

 

The Company may receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Statement of Operations.

 

The majority of the Company’s revenue is from products and services transferred to customers at a point in time and was approximately 85.3% and 88.4% of revenue for the three months ended March 31, 2018 and 2017, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment.

 

The timing of revenue recognition, billings and cash collections results in billed receivables, costs in excess of billings (contract assets), and billings in excess of costs (contract liabilities, previously deferred revenue) on the Balance Sheet. Contract liabilities additionally include customer advances or prepayments. Costs in excess of billings and billings in excess of costs associated with over time contracts were not significant at March 31, 2018 or 2017. Revenue recognized during the three months ended March 31, 2018 and 2017 that was included in contract liabilities at the beginning of the period was $0 and $34,587, respectively.

 

On March 31, 2018, the Company had no remaining performance obligations.

 

Fixed Assets

 

Fixed assets are being depreciated on the straight line basis over a period of five years.

 

Income Taxes

 

The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by the tax authorities. Management has analyzed the Company’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2013 - 2016).

 

Basic and Diluted Net Income (Loss) per Share

 

The Company computes income (loss) per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted income (loss) per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive.

 

The Company’s outstanding warrants are anti-dilutive, and accordingly basic (loss) and diluted (loss) per share are the same.

 

Recent Accounting Pronouncements

 

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of 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 or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period.

 

The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company’s sale of services are generally recognized either when services are performed (i.e. point in time) or under engine sales contracts, as the Company transfers control of the product or service to its customers (i.e. over time), which approximates the previously used percentage-of-completion method of accounting. As such, the adoption of ASU 2014-09 had no material impact to the Company’s financial position or results of operations; however, the Company has now presented the disclosures required by this new standard herein.

 

All other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Related Party Transactions
3 Months Ended
Mar. 31, 2018
Notes  
Related Party Transactions

3. Related Party Transactions

 

Consulting Fees

 

Certain stockholders of the Company and entities affiliated with management perform services to customers and were compensated at various rates. Total consulting expenses incurred by these entities for the three months ended March 31, 2018 and 2017 amounted to $143,454 and $132,795, respectively. Amounts payable to these stockholders and entities at March 31, 2018 and 2017 totaled $144,875 and $133,548, respectively.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
License Agreement Disclosure
3 Months Ended
Mar. 31, 2018
Notes  
License Agreement Disclosure

4. License Agreement

 

At the time of the Merger, Sustainable had a series of agreements including an exclusive, renewable 20-year engine technology license agreement (the “Agreement”) with a third party licensor that had developed engines capable of converting heat into other forms of energy. The agreements were assigned to the Company.  Under the terms of the Agreement, it could be cancelled by the Company during the term once the patents upon which it was based expired. The newer of two patents expired in August of 2017, and the Company elected at that time to exercise its right to cancel the Agreement.

 

The third party licensor had been classified in 2010 as dissolved by the Delaware Division of Corporations, and similarly by the Arizona Corporation Commission, and has not reinstated its charters. Despite this status, during July, 2017, the Company received a demand letter from the principal of that firm claiming that an aggregate total of $1,104,367 was due the firm under the Agreement, and to the principal for consulting work. The Company and its counsel believe that the claims are without merit and would vigorously defend any potential lawsuit. The Company believes it has no outstanding obligation to either party, and took the remaining unamortized asset value of the Agreement, $20,307, as a charge against earnings in the third quarter of 2017.

 

Subsequently, in December, 2017, the Company entered into an intellectual property license agreement with Thermal Tech Holdings, LLC, a Delaware limited liability company (“TTH”). TTH is an entity owned equally by two entities affiliated, respectively, with two directors of the Company, who also serve in management positions with TTH.

 

TTH is the owner of certain patent applications as well as the inventions relating to the Company’s proprietary engine technology (the “Licensed Patents and Technical Information”). The Licensed Patents and Technical Information were developed by an independent non-profit research institute (the “Contractor”). All work done by the Contractor was paid for by TTH in order that TTH, rather than the Company, would be at risk if the research, development, engineering and design work were of little or no value. Furthermore, the work performed by the Contractor for TTH was confidential for competitive business reasons.

 

The Patent License grants the Company a worldwide non-exclusive license to use the Technical Information to make, use or sell any products and/or services which would be covered by these specific Licensed Patents.  However, TTH may not license any Licensed Patents and Technical Information to any competitive entity, or to any other entity without the prior written consent of the Company.

 

The agreement calls for the Company to pay TTH a royalty equal to five percent (5%) of the Net Revenue (as defined) of all Licensed Products covered by a Licensed Patent sold by the Company and its affiliates, as well as an initial license fee of $135,000. The Patent License will terminate upon the expiration of all Licensed Patents. The Company may terminate the agreement on ninety (90) days’ prior written notice. TTH may terminate the agreement on ninety (90) days’ prior written notice for uncured defaults (as defined).

 

The accompanying March 31, 2018 balance sheet presents the carrying value of the license fee at $91,125, which is net of an unpaid balance of $40,500 and $3,375 in accumulated amortization.  The cost of the license agreement is being amortized over ten years.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Concentrations Disclosure
3 Months Ended
Mar. 31, 2018
Notes  
Concentrations Disclosure

5. Concentrations

 

The Company grants credit in the normal course of business to its customers. The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk.

 

Two customers accounted for 92.9% and 7.1%, respectively, of total project management revenue during the three months ended March 31, 2018, and two customers accounted for 90.1% and 9.9%, respectively, during the three months ended March 31, 2017.

 

Two project management customers accounted for 93.1% and 6.9%, respectively, of total project management accounts receivable at March 31, 2018, and for 90.1% and 9.9%, respectively, at March 31, 2017. Project management accounts receivable constituted 94.2% of receivables at March 31, 2018, but all of receivables as of March 31, 2017.

 

All of the revenue from the Company’s heat conversion technology was from the same customer in the quarters ended March 31, 2018 and March 31, 2017.

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock Issuance, Disclosure
3 Months Ended
Mar. 31, 2018
Notes  
Stock Issuance, Disclosure

6. Stock Issuance

 

In September and October 2017, the Company issued 6,650,000 shares of common stock at a per share price of $0.10 to thirteen individual investors in return for a capital infusion of $665,000. Each share issued was accompanied by a warrant for one-half share of common stock; the warrants are exercisable at a price of $0.30 per share. The Company claims an exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder. No commissions were paid and no underwriter or placement agent was involved in this transaction. The proceeds of this transaction were used for the Company’s working capital and general corporate purposes.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Subsequent Events
3 Months Ended
Mar. 31, 2018
Notes  
Subsequent Events

7. Subsequent Events

 

Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued.

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies: Basis of Presentation and Use of Estimates (Policies)
3 Months Ended
Mar. 31, 2018
Policies  
Basis of Presentation and Use of Estimates

Basis of Presentation and Use of Estimates

 

The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include recognition of revenue for work completed and unbilled to customers, the allowance for doubtful accounts. Actual results could differ from those estimates.

 

The Company believes that funds generated from operations, together with existing cash and cash infusions by major stockholders will be sufficient to finance its operations for the next twelve months, but are likely to be insufficient to fund significant growth. The Company raised $665,000 in gross capital during the second half of 2017 and, over time, expects to seek additional capital to cover any working capital needs, and to fund growth initiatives in its identified markets. However, there can be no assurance that any new debt or equity financing arrangement will be available to the Company when needed on acceptable terms, if at all. The continued operations of the Company are dependent on its ability to raise funds, collect accounts receivable, and generate revenue.

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies: Cash Policy (Policies)
3 Months Ended
Mar. 31, 2018
Policies  
Cash Policy

Cash

 

The Company continually monitors its positions with, and the credit quality of, the financial institutions it invests with. From time to time, however briefly, the Company maintains balances in operating accounts in excess of federally insured limits.

XML 25 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies: Accounts Receivable Policy (Policies)
3 Months Ended
Mar. 31, 2018
Policies  
Accounts Receivable Policy

Accounts Receivable

 

Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. At March 31, 2018, and December 31, 2017, an allowance for doubtful accounts was made totaling $58,704 and $63,270, respectively, to provide for the possibility of a revenue shortfall from the project in Modoc County, and is reflected in the accounts receivable balance on the balance sheet in the accompanying financial statements.

XML 26 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies: Revenue Recognition Policy (Policies)
3 Months Ended
Mar. 31, 2018
Policies  
Revenue Recognition Policy

Revenue Recognition

 

The Company’s revenue is recognized when the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct.

 

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis.

 

The Company’s performance obligations under its engine business are generally satisfied as over time. Revenue from products or services transferred to its customer over time accounted for approximately 14.7% and 11.6% of revenue for the three months ended March 31, 2018 and 2017, respectively. Revenue under this contract is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company’s performance to date under the terms of the contract.

 

Accounting for over time contracts involves the use of various techniques to estimate total revenue and costs. The Company estimates profit on such contracts as the difference between total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, costs and availability of materials. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards and incentive fees. These amounts of variable consideration are not expected to be significant. Additionally, contract estimates may include additional revenue for submitted contract modifications if there exists and enforceable right to the modification, the amount can be reasonably estimated and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company’s best judgment at the time. These amounts are generally included in the contract’s transaction price and are allocated over the remaining performance obligations. Changes in judgments on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated income.

 

The Company may receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Statement of Operations.

 

The majority of the Company’s revenue is from products and services transferred to customers at a point in time and was approximately 85.3% and 88.4% of revenue for the three months ended March 31, 2018 and 2017, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment.

 

The timing of revenue recognition, billings and cash collections results in billed receivables, costs in excess of billings (contract assets), and billings in excess of costs (contract liabilities, previously deferred revenue) on the Balance Sheet. Contract liabilities additionally include customer advances or prepayments. Costs in excess of billings and billings in excess of costs associated with over time contracts were not significant at March 31, 2018 or 2017. Revenue recognized during the three months ended March 31, 2018 and 2017 that was included in contract liabilities at the beginning of the period was $0 and $34,587, respectively.

 

On March 31, 2018, the Company had no remaining performance obligations.

XML 27 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies: Fixed Assets Policy (Policies)
3 Months Ended
Mar. 31, 2018
Policies  
Fixed Assets Policy

Fixed Assets

 

Fixed assets are being depreciated on the straight line basis over a period of five years.

XML 28 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies: Income Taxes Policy (Policies)
3 Months Ended
Mar. 31, 2018
Policies  
Income Taxes Policy

Income Taxes

 

The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by the tax authorities. Management has analyzed the Company’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2013 - 2016).

XML 29 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies: Basic and Diluted Net Income (loss) Per Share Policy (Policies)
3 Months Ended
Mar. 31, 2018
Policies  
Basic and Diluted Net Income (loss) Per Share Policy

Basic and Diluted Net Income (Loss) per Share

 

The Company computes income (loss) per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted income (loss) per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive.

 

The Company’s outstanding warrants are anti-dilutive, and accordingly basic (loss) and diluted (loss) per share are the same.

XML 30 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies: Recent Accounting Pronouncements (Policies)
3 Months Ended
Mar. 31, 2018
Policies  
Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of 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 or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period.

 

The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company’s sale of services are generally recognized either when services are performed (i.e. point in time) or under engine sales contracts, as the Company transfers control of the product or service to its customers (i.e. over time), which approximates the previously used percentage-of-completion method of accounting. As such, the adoption of ASU 2014-09 had no material impact to the Company’s financial position or results of operations; however, the Company has now presented the disclosures required by this new standard herein.

 

All other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

XML 31 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies: Accounts Receivable Policy (Details) - USD ($)
Mar. 31, 2018
Dec. 31, 2017
Details    
Allowance for doubtful accounts $ 58,704 $ 63,270
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Related Party Transactions (Details) - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Details    
Consulting expenses with related parties $ 143,454 $ 132,795
Amounts payable to related parties $ 144,875 $ 133,548
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
License Agreement Disclosure (Details) - USD ($)
Mar. 31, 2018
Dec. 31, 2017
Details    
Intangible asset - license agreement $ 91,125 $ 94,500
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
Concentrations Disclosure (Details)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Two customers    
Project management revenue concentrations 92.9% and 7.1% 90.1% and 9.9%
Two project management customers    
Project management accounts receivable 93.1% and 6.9% 90.1% and 9.9%
Total project management accounts    
Project management accounts receivable 94.2%  
XML 35 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock Issuance, Disclosure (Details)
12 Months Ended
Dec. 31, 2017
USD ($)
$ / shares
shares
Details  
Common stock issued for cash | shares 6,650,000
Price per share sold | $ / shares $ 0.10
Proceeds from common stock issued for cash | $ $ 665,000
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