Notes to Unaudited Financial Statements
Note 1. Nature of Operations
Company Overview
The operations of Advanced Voice Recognition Systems, Inc. (AVRS or the Company), http://www.avrsys.com, commenced in 1994 with a predecessor entity called NCC, Inc. NCC, Inc. was incorporated on March 15, 1994 in the State of Ohio. NCC, Inc. operated as a software and hardware development company that marketed voice recognition and transcription products for commercial applications.
In May 2000, WG Investments, LLC acquired the assets of NCC, Inc. and subsequently changed its name to NCC, LLC. NCC, LLC (also a predecessor to AVRS) continued the operations of NCC, Inc. until approximately December 31, 2001, when shifts in the industrys markets caused NCC, LLC to suspend its operations.
AVRS was incorporated in the State of Colorado on July 7, 2005. In September 2005, the members of NCC, LLC transferred all of their membership interests in NCC, LLC to AVRS in exchange for 93,333,333 shares (post-recapitalization) of AVRS common stock. In December 2005, the Board of Directors approved a 1.5-to-1 stock split issuing 46,666,667 common shares (post-recapitalization), which increased the number of common shares outstanding to 140 million shares (post-capitalization). Following the incorporation of AVRS, the Company initiated a new business plan and intends to continue its operations in the voice recognition and transcription industry.
AVRS is a software development company specializing in speech recognition technologies. AVRS has successfully obtained patent protection of its proprietary technology (refer to Note 3, Intangible Assets). The Company has currently engaged a firm to investigate and asserting claims relating to certain patents including negotiating licensing agreements and the filing and prosecution of lawsuits.
Stock Exchange Agreement
On April 28, 2008, the Company entered into a Stock Exchange Agreement (the Agreement) with Samoyed Energy Corp., a Nevada corporation (Samoyed), which resulted in a reverse acquisition. The Agreement provided for the reorganization of AVRS with Samoyed. In connection with the Agreement, Samoyed acquired all of the issued and outstanding common shares of AVRS in exchange for 140 million shares of Samoyeds common stock. On May 19, 2008 at the closing of the Agreement, the former shareholders of AVRS owned approximately 85% of the outstanding common stock of Samoyed, resulting in a change in control.
For accounting purposes, this acquisition has been treated as a reverse acquisition and recapitalization of AVRS, with Samoyed the legal surviving entity. Since Samoyed had, prior to the recapitalization, minimal assets and limited operations, the recapitalization has been accounted for as the sale of 24,700,008 shares of AVRS common stock for the net liabilities of Samoyed. Therefore, the historical financial information prior to the date of the recapitalization is the financial information of AVRS. Costs of the transaction have been charged to the period in which they are incurred.
In connection with the Agreement, a shareholder of Samoyed holding an aggregate of 3.5 million shares of Samoyeds common stock made payments totaling $565,651 since 2008 in lieu of tendering shares to the Company. The Company received the final payment of $6,000 on February 15, 2012.
Stock Purchase Agreements
During the year ended December 31, 2016 the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 5,800,000 shares of the common stock for aggregate proceeds of $45,325, full payment of which was received in the period. During the six months ended June 30, 2017, the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 9,900,000 shares of the common stock for aggregate proceeds of $49,500, full payment of which was received in the period.
Agreement and Plan of Merger
On March 25, 2009, the Company entered into an Agreement and Plan of Merger (Agreement and Plan of Merger) with its wholly-owned subsidiary, NCC, LLC, a Colorado limited liability company, whereby NCC, LLC merged with and into the Company pursuant to Section 92A.180 of the Nevada Business Corporations Act. Upon consummation of the Agreement and Plan of Merger: (i) NCC, LLC ceased to exist; (ii) the Companys membership interests in NCC, LLC automatically were canceled or retired and ceased to exist, without any consideration delivered in exchange thereof; (iii) the title to all estate, property rights privileges, powers and franchise assets and/or other rights owned by NCC, LLC became vested in the Company without reversion or impairment; and (iv) all liabilities of any kind of NCC, LLC became vested in the Company.
Commitments and Contingencies
On April 20, 2015 Advanced Voice Recognition Systems, Inc. (AVRS) entered into a Material Letter Agreement with an unrelated third party (Third Party) in which they promise to pay to patent legal counsel funds to continue prosecuting Patents on behalf of AVRS. AVRS promises to pay to the Third Party, or to such other holder of this promissory note (Note) as designate, the principal, together with any additional amounts owed pursuant to the terms set forth in this Note. AVRS is obligated to pay the funds advanced plus a premium of 10% of the principal amount and a percentage of proceeds received by us from any monetization event involving the patents. Interest at 2% was accrued and reported at June 30, 2017.
On August 20, 2015, Advanced Voice Recognition Systems, Inc. (AVRS) entered into a letter agreement with unrelated third party (Third Party) pursuant to which the Third Party will provide strategic advisory services to AVRS to support the common goal of the acquisition, sale, licensing, prosecution, enforcement, and settlement with respect to AVRSs intellectual property, including patents held by AVRS. The Third Party has agreed to advance costs recommended by it, including court filing fees, discovery and other litigation costs, and patent prosecution costs, up to an aggregate of $10,000,000. AVRS will be responsible for costs not recommended by the Third Party, as well as travel and ordinary business expenses incurred by AVRS. Except for the advanced costs by the Third Party, AVRS will be responsible for any contingency payments to law firms. Any and all advanced costs will only become liabilities if successful and will be repaid as percentages of the earnings. On June 28, 2017 AVRS and the Third Party agreed to terminate the August 20, 2015 Letter Agreement. AVRS did not incur any material early termination penalties in connection of the early termination of the agreement. As a result of the termination AVRS acquired the liability associated with legal services in connection with the preparation and prosecution of patent applications and related matters before the United States Patent and Trademark Office (USPTO). Additionally, AVRS, in conjunction with Buether, Joe & Carpenter LLC (BJC) have identified and are in discussion with two new litigation funding sources.
On November 1, 2016, Advanced Voice Recognition Systems, Inc. (
AVRS
) entered into a Contingent Fee Agreement (the
Agreement
) with Legal Representation pursuant to which they will represent AVRS in connection with investigating and asserting claims relating to certain patents, including the negotiation of license agreements and the filing and prosecution of lawsuits, against any potential infringers of rights associated with such patents (the
Patent Rights
) Legal representation will handle licensing and litigation activities under the Agreement on a contingent fee basis. The fee will depend upon whether AVRS recovers any sums by way of licensing, settlement, trial or otherwise with respect to the Patent Rights. On June 6, 2017 AVRS and Legal Representation revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Third Party Letter Agreement.
On April 24, 2017 Advanced Voice Recognition Systems, Inc. (AVRS) was advised that Meyer & Associates L.L.C. (Meyer) would file a lawsuit on May 2, 2017 for outstanding accounts payable of $53,730.99. No lawsuit has been filed at this time as there are ongoing negotiations to settle the debt.
Advanced Voice Recognition Systems, Inc (AVRS) is in discussion with two potential litigation funding sources.
Note 2. Significant Accounting Policies
Unaudited Financial Information
The accompanying financial information at June 30, 2017 and for the six months ended June 30, 2017 and 2016 is unaudited. In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Companys financial position at June 30, 2017 and its operating results for the six months ended June 30, 2017 and 2016 have been made. Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Companys Annual Report on Form 10-K filed with the Securities and Exchange Commission (the SEC) for the year ended December 31, 2016. The results of operations for the six months ended June 30, 2017 are not necessarily an indication of operating results to be expected for the year ending December 31, 2017.
Going Concern
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities exceed assets and there is a capital deficiency of $224,000 and no significant revenues. The Company may be unable to continue as a going concern for a reasonable period of time.
The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Companys continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. During the years ended December 31, 2012 and 2011, the Companys President loaned or advanced the Company funds for working capital on an as needed basis. There is no assurance that these loans or advances will continue in the future. During the twelve months ended December 31, 2016 the Company received an aggregate of $45,325 from the sale of shares in private offerings of its common stock. During the six months ended June 30, 2017 the Company received an aggregate of $49,500 from the sale of shares in private offerings of its common stock.
The Companys current operations are related to patent monetization and filing of additional patents. The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS. Dominion has agreed to advanced costs up to an aggregate of $10,000,000. The Company and Dominion agreed to terminate the agreement. The Company did not incur any material early termination penalties. In addition the Company has revised the Contingent Fee Agreement with Buether Joe & Carpenter, LLC which will represent AVRS in connection with investigating and asserting claims to the AVRS patents including licensing and litigation activities. Any and all advanced costs will only become liabilities if successful. Currently the Company is in discussion with two potential litigating funding sources.
Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Basis of Consolidation
The consolidated financial statements include our accounts and those of NCC, LLC which merged with and into AVRS, Inc. March 25, 2009. Intercompany transactions and balances have been eliminated. The accounts, results of operations and cash flows of acquired companies are included from their respective acquisition dates.
Cash and Cash Equivalents
The Company considers all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. The Company had cash at June 30, 2017 of $21,021, $9,454 at December 31, 2016 and $7,030 cash at June 30, 2016. No amounts resulted from cash equivalents.
Financial Instruments
The carrying amounts of cash, receivables and current liabilities approximate fair value due to the short-term maturity of the instruments.
Fixed Assets
Fixed assets are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to five years. Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.
Revenue Recognition
Revenue from the sale of inventory is recognized on the date of sale, title and risk of loss have transferred to the purchaser, the fees are fixed or determinable and collection is reasonably assured. Revenue from the performance of services is recognized when services have been completed and collection is probable. There are no multiple element sales and no history of material returns. The revenue recognition policies relate to operations performed prior to the Companys reverse acquisition.
Income Taxes
Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future federal income taxes. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Companys financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. The Company did not record a cumulative effect adjustment related to the adoption of ASC 740.
Research and Development Costs
Research and development costs are expensed in the period incurred.
Patents, Deferred Costs and Amortization
Patents consist of costs incurred to acquire issued patents. Amortization commences once a patent is granted. Costs incurred to acquire patents that have not been issued are reported as deferred costs. Costs of $1450 were deferred at June 30, 2017 as a result of the filing of a new patent application. Deferred costs at June 30,
,
2017 and December 31, 2016 were $2,935 and $1,485 respectively. If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires. The Company amortizes its patents over an estimated useful life of twenty years.
Impairment and Disposal of Long-Lived Assets
The Company evaluates the carrying value of its long-lived assets under the provisions of Statement of Financial Accounting Standard (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets now referred to as ASC 360-10
Property, Plant, and Equipment
Impairment or Disposal of Long Lived Assets subsections . ASC 306-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets carrying amount. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying value or fair value, less costs to sell. The Companys last impairment analysis was completed effective December 31, 2016. Impairment recorded for each of the six months ended June 30, 2017 and 2016 was $-0-.
Loss per Common Share
The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. At June 30, 2017 and 2016, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.
Fair Value of Financial Instruments
The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.
The FASB Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:
|
Level 1:
|
Quoted prices in active markets for identical assets or liabilities.
|
|
Level 2:
|
Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.
|
|
Level 3:
|
Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
|
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Note 3. Intangible and Fixed Assets
Intangible Assets
The Company monitors the anticipated outcome of legal actions, and if it determines that the success of the defense of a patent is probable, and so long as the Company believes that the future economic benefit of the patent will be increased, the Company capitalizes external legal costs incurred in the defense of the patent. Upon successful defense of litigation, the amounts previously capitalized are amortized over the remaining life of the patent.
On November 13, 1995 the Company filed a patent application with the U.S. Patent and Trademark Office, which was granted on September 28, 1999 as U.S. Patent #5,960,447, Word Tagging and Editing System for Speech Recognition. In accordance with 35 U.S.C. 154, the term for the above referenced patent shall be for a period beginning on the date on which the patent issues and ending 20 years from the date on which the application for the patent was filed in the United States. The above referenced U.S. Patent expired on November 13, 2015.
On July 7, 2009, U.S. Patent # 7,558,730, entitled Speech Recognition and Transcription Among Users Having Heterogeneous Protocols, was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 7, 2009 and ending 20 years from the application date of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended September 30, 2009 and the Company began amortization.
On March 9, 2010, the U.S. Patent and Trademark Office declared interference between the Company as Senior Party and Allvoice Developments, US LLC as Junior Party. Due to the absence of a decision by the end of 2010, in the fourth quarter of 2010, AVRS impaired 100% of the deferred costs associated with the interference, resulting in a $1,068,860 impairment loss. On April 27, 2012, the BPAI entered a judgment denying the Companys motions. On May 29, 2012, AVRS filed a Request for Rehearing in the BPAI. On December 19, 2012, the BPAI entered a judgment denying the request for rehearing. The Company decided not to appeal as additional litigation would be costly and time-consuming and would divert the attention of management and key personnel from business operations.
On May 24, 2011, U.S. Patent #7,949,534, entitled Speech Recognition and Transcription Among Users Having Heterogeneous Protocols, was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning May 24, 2011 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended June 30, 2011 and the Company began amortization.
On March 6, 2012, U.S. Patent #8,131,557, entitled Speech Recognition and Transcription Among Users Having Heterogeneous Protocols, was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning March 6, 2012 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended March 31, 2012 and the Company began amortization.
On July 30, 2013, U.S. Patent #8,498,871, entitled Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols, was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 30, 2013 and ending 20 years from the application date of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended September 30, 2013 and the Company began amortization.
On June 27, 2013, the Company filed two additional continuation applications 13/928/381 and 13/928,383 with the U.S. Patent and Trademark Office entitled Speech Recognition and Transcription Among Users Having Heterogeneous Protocols. On August 31, 2015, Application 13/928,381 was abandon by the Company. Deferred costs were charged to operations the quarter ended September 30, 2015.
On August 10, 2015, the Company filed a continuation application with the U.S. Patent and Trademark Office entitled Speech Recognition and Transcription Among Users Having Heterogeneous Protocols.
On September 22, 2015, U.S. Patent #9,142,217, entitled Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols, was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning September 22, 2015 and ending 20 years from the application date of the parent application (US Patent No. 7,558,730) of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended September 30, 2015 and the Company began amortization.
On July 30, 2015 a continuation application, 14/821,786 was filed with the U.S. Patent and Trademark Office. Costs of $1,484.67 were deferred during the third quarter of 2015.
On January 6, 2017 the Company filed a continuation in the U.S. Patent and Trademark Office to patent application 14/821,786 resulting in the new application 15/400,732. Deferred costs of $2935 will remain until the patent is prosecuted and issued. Costs will be capitalized in the period that the patent is issued.
Amortization at June 30, 2017 is as follows:
SCHEDULE OF INTANGIBLE ASSETS
Ended December 31, 2016
|
|
|
|
|
|
|
U.S. Patent #
|
|
|
Carrying Value
|
|
Amortization
|
|
Balance
|
5,960,447
|
|
$
|
63,247
|
$
|
63,247
|
$
|
--
|
7,558,730
|
|
|
58,277
|
|
35,190
|
|
23,087
|
7,949,534
|
|
|
3,365
|
|
1,800
|
|
1,565
|
8,131,557
|
|
|
5,092
|
|
2,524
|
|
2,568
|
8,498,871
|
|
|
21,114
|
|
8,651
|
|
12,463
|
9,142,217
|
|
|
35,068
|
|
8,093
|
|
26,975
|
|
|
$
|
186,163
|
$
|
119,505
|
$
|
66,658
|
Ended June 30, 2017
|
|
|
|
|
|
|
U.S. Patent #
|
|
|
Carrying Value
|
|
Amortization
|
|
Balance
|
5,960,447
|
|
$
|
63,247
|
$
|
63,247
|
$
|
--
|
7,558,730
|
|
|
58,277
|
|
37,536
|
|
20,741
|
7,949,534
|
|
|
3,365
|
|
1,956
|
|
1,409
|
8,131,557
|
|
|
5,092
|
|
2,786
|
|
2,306
|
8,498,871
|
|
|
21,114
|
|
9,917
|
|
11,197
|
9,142,217
|
|
|
35,068
|
|
10,791
|
|
24,277
|
|
|
$
|
186,163
|
$
|
126,233
|
$
|
59,930
|
Amortization expense totaled $6,728 for the six months ended June 30, 2017 and 2016. Estimated aggregate amortization expense for each of the next five years is as follows:
SCHEDULE OF FUTURE AMORTIZATION
|
|
|
Ending June 30, 2017
|
|
|
|
|
|
2017
|
|
6,726
|
2018
|
|
13,454
|
2019
|
|
13,454
|
2020
|
|
13,454
|
2021
|
|
12,842
|
Total
|
$
|
59,930
|
Fixed Assets
Fixed assets were fully depreciated in the period ending December 31, 2016. Depreciation expense totaled $368 for the six months ended June 30, 2016.
PROPERTY PLANT AND EQUIPMENT
|
|
|
December 31, 2016
|
|
|
|
|
|
|
Computer equipment
|
|
$
|
6,627
|
|
Computer software
|
|
|
3,640
|
|
|
|
|
10,267
|
|
Less accumulated depreciation
|
|
|
(10,267)
|
|
Computer software and equipment, net
|
|
$
|
0
|
|
|
|
|
June 30,
2017
|
|
|
June 30,
2016
|
|
|
|
|
|
|
|
Computer equipment
|
|
$
|
6,627
|
|
$
|
6,627
|
Computer software
|
|
|
3,640
|
|
|
3,640
|
|
|
|
10,267
|
|
|
10,267
|
Less accumulated depreciation
|
|
|
(10,267)
|
|
|
(9,898)
|
Computer software and equipment, net
|
|
$
|
0
|
|
$
|
369
|
Note 4. Related Party Transactions
Related Parties Transactions and Indebtedness
During the years from 2000 through 2013, certain officers advanced the Company working capital to maintain the Companys operations. The Company owed the officers $-0- at June 30, 2017 and 2016. The Company also owed the officers aggregate of $162,382 at June 30, 2017 and December 31, 2016 for accrued payroll. During the period ending June 30, 2017, and June 30, 2016 the Company paid gross payroll of $8,760 and $3,871 to the CEO. During the period ending June 30, 2017, AVRS completed Stock Purchase Agreements totaling 2,300,000 shares of AVRS stock to one shareholder. All shares were paid in the period ending June 30, 2017. Prior to the purchase the shareholder owned 9.09% of the issued and outstanding stock. At period ending June 30, 2017 the customer owned 9.77% of the issued and outstanding stock.
Note 5. Income Taxes
A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows.
INCOME TAXES
|
December 31,
|
|
2016
|
|
2015
|
|
|
|
|
|
|
U.S. federal statutory graduated rate
|
|
|
34.00%
|
|
34.00%
|
State income tax rate, net of federal benefit
|
|
|
0.00%
|
|
0.00%
|
Rent &services
|
|
|
-16.06%
|
|
-3.40%
|
Costs capitalized under Section 195
|
|
|
-17.94%
|
|
-30.60%
|
|
|
|
|
Effective rate
|
|
|
0.00%
|
|
0.00%
|
|
|
|
|
The Company is considered a start-up company for income tax purposes. As of June 30, 2017, the Company had not commenced its trade operations, so all costs were capitalized under Section 195. Accordingly, the Company had no net operating loss carry forwards at June 30, 2017.
Note 6 . Concentration of Risk
Beginning March 31, 2010, through June 30, 2017, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of $250,000, at all FDIC-insured institutions. On June 30, 2017, the Company had cash balances at one FDIC insured financial institution of $21,021 in non-interest bearing accounts that were fully insured by the FDIC.
Note 7. Stockholder Equity / (Deficit)
The Company has issued shares of its common stock pursuant to certain agreements as described in Note 1.
Note 8 . Subsequent Events
AVRS, in conjunction with legal representative Buether, Joe & Carpenter, LLC have identified and are in discussion with two separate litigation funding sources. When an agreement is finalized it will replace the terminated financing Agreement with Dominion Harbor Group.
Gross Payroll of $4863 has been paid to the CEO subsequent to the period ending June 30, 2017.