2.	Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form

-Q and Item

of Regulation S-

Accordingly, they do

not

include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The

December 31, 2018

balance sheet was derived from audited financial statements, but does

not

include all the disclosures required by accounting principles generally accepted in the United States. However, we believe that the disclosures are adequate to make the information presented

not

misleading. In our opinion, all the adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. The results of operations for the

three

and

six

month periods ended

June 30, 2019

are

not

necessarily indicative of the results that

may

be achieved for the full fiscal year or for any future period. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form

-K for the year ended

December

31,

2018,

filed with the U.S. Securities and Exchange Commission (the “SEC”) on

March 28, 2019.

The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different from the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued expenses, and dividends payable approximate their carrying amounts due to the relatively short maturity of these instruments. Loans payable to officer are with a related party and as a result do

not

bear market rates of interest. Management believes based on its current financial position that it could

not

obtain comparable amounts of

third

party financing, and as such cannot estimate the fair value of the loans payable to officer.

None

of these instruments are held for trading purposes.

January 1, 2018

we adopted ASU

No.

2014

09,

Revenue from Contracts with Customers

, as amended, using the modified retrospective approach. At the date of adoption there was

impact on the balance sheet or statement of operations. ASU

No.

2014

did

not

have a material effect on the Company’s financial position, results of operations or cash flows for the

three

and

six

month periods ended

June 30, 2019

and

2018.

January 1, 2019

we adopted ASU

No.

2016

02,

Leases (topic

842

)

. At the date of adoption there was

impact on the statement of operations, while the balance sheet reflects recording both assets and liabilities applicable to the operating right-of-use asset lease identified. ASU

No.

2016

did

not

have a material effect on the Company’s results of operations or cash flows for the

three

and

six

month periods ended

June 30, 2019.