NOTES TO UNAUDITED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2016 and 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization - Bioethics, Ltd. (
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the Company
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) was organized under the laws of the State of Nevada on July 26, 1990. The Company was organized to provide a vehicle for participating in potentially profitable business ventures which may become available through the personal contacts of, and at the complete discretion of, the Company
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s officers and directors. The Company has, at the present time, not paid any dividends and any dividends that may be paid in the future will depend upon the financial requirements of the Company and other relevant factors.
The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the three months ended March 31, 2016 and 2015 have been made.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company
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s December 31, 2015 audited financial statements. The results of operations for the periods ended March 31, 2016 and 2015 are not necessarily indicative of the operating results for the full year.
NOTE 2 - STOCKHOLDERS
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EQUITY (DEFICIT)
Common Stock - In July 1990, in connection with its organization, the Company issued 1,000,000 shares of its previously authorized but unissued common stock. Total proceeds from the sale of stock amounted to $1,000 (or $.001 per share).
In May 1998, the Company issued 10,000,000 shares of its previously authorized but unissued common stock. Total proceeds from the sale of stock amounted to $40,000 (or $.004 per share). The issuance of common stock resulted in a change in control of the Company.
As discussed in NOTE 5, the Company recorded a debt discount totaling $100,000 in connection with a convertible note payable issued during the year ended December 31, 2015. This resulted in a corresponding increase of $100,000 to additional paid-in capital.
NOTE 3 RELATED PARTY TRANSACTIONS
Management Compensation - During the three months ended March 31, 2016 and 2015, the Company did not pay any compensation to its officers and directors.
Office Space - The Company has not had a need to rent office space. An officer/shareholder of the Company is allowing the Company to use his home as a mailing address, as needed, at no expense to the Company.
Notes Payable - Between January 2010 and March 2014, the Company borrowed $91,000 from a minority stockholder of the Company pursuant to unsecured promissory notes, which were due on demand and accrued interest at 6% per annum. In June 2014, the principal amount of $91,000, along with accrued interest of $14,000, was purchased by the Company
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s then-sole officer and director and settled via the issuance of 105,000,000 shares of common stock of the Company. This resulted in a change of control, as the former officer and director now owns 90.5% of the Company
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s issued and outstanding stock. In December 2014, the Company borrowed $25,000 from this majority shareholder pursuant to an unsecured promissory note, which is due on demand and accrues interest at 12% per annum, or $750 per quarter. The note has accrued $3,750 in interest since its inception, of which $3,000 remains payable at March 31, 2016.
NOTE 4
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NOTES RECEIVABLE
On November 16, 2015, the Company paid $50,000 for a secured promissory note. The note bears interest at 10% per annum and is due on or before May 16, 2016. Any amount of principal and interest on the note that is not paid when due shall bear default interest at the rate of 18% per annum until paid in full. The note is secured by 500,000