XBRL Proof

XBRL File

 
Document - Document and Entity Information
Document - Document and Entity Information (USD $) 9 Months Ended  
( custom:DocumentAndEntityInformationAbstract [Extension] )    
  Sep. 30, 2017 Jan. 4, 2018
     
     
     
Entity Registrant Name Capital Art, Inc.  
( dei:EntityRegistrantName )    
Entity Central Index Key 0001527844  
( dei:EntityCentralIndexKey )    
Document Type 10-Q  
( dei:DocumentType )    
Document Period End Date 2017-09-30  
( dei:DocumentPeriodEndDate )    
Amendment Flag false  
( dei:AmendmentFlag )    
Current Fiscal Year End Date --12-31  
( dei:CurrentFiscalYearEndDate )    
Is Entity a Well-known Seasoned Issuer? No  
( dei:EntityWellKnownSeasonedIssuer )    
Is Entity a Voluntary Filer? No  
( dei:EntityVoluntaryFilers )    
Is Entity's Reporting Status Current? No  
( dei:EntityCurrentReportingStatus )    
Entity Filer Category Smaller Reporting Company  
( dei:EntityFilerCategory )    
Entity Public Float    
( dei:EntityPublicFloat )    
Entity Common Stock, Shares Outstanding   325,382,292
( dei:EntityCommonStockSharesOutstanding )    
Document Fiscal Period Focus Q3  
( dei:DocumentFiscalPeriodFocus )    
Document Fiscal Year Focus 2017  
( dei:DocumentFiscalYearFocus )    
(End Document - Document and Entity Information)
 
Statement - Consolidated Balance Sheets
Statement - Consolidated Balance Sheets (USD $)      
( us-gaap:StatementOfFinancialPositionAbstract )      
  Sep. 30, 2017 Dec. 31, 2016 Dec. 31, 2015
       
       
       
Assets      
( us-gaap:AssetsAbstract )      
    Current Assets      
    ( us-gaap:AssetsCurrentAbstract )      
        Cash 21,737 54,034 32,570
        ( us-gaap:Cash )      
        Accounts receivable, net 9,513 91,501  
        ( us-gaap:AccountsReceivableNetCurrent )      
        Inventory, net 13,241 10,741  
        ( us-gaap:InventoryNet )      
        Prepaid expenses 56,680 18,341  
        ( us-gaap:PrepaidExpenseAndOtherAssetsCurrent )      
        Due from related party 78,920 78,920  
        ( us-gaap:DueFromRelatedPartiesNoncurrent )      
        Total Current Assets 180,091 253,537  
        ( us-gaap:AssetsCurrent )      
        Property and equipment, net 2,660,521 2,843,587  
        ( us-gaap:PropertyPlantAndEquipmentNet )      
        Security deposit 6,356 6,356  
        ( us-gaap:SecurityDeposit )      
        Intangible Assets, net 337,125 369,750  
        ( us-gaap:IntangibleAssetsCurrent )      
        Total Assets 3,184,093 3,473,230  
        ( us-gaap:Assets )      
        Liabilities and Stockholders' Equity      
        ( us-gaap:LiabilitiesAndStockholdersEquityAbstract )      
            Current Liabilities      
            ( us-gaap:LiabilitiesCurrentAbstract )      
                Accounts payable and accrued liabilities 436,255 602,153  
                ( us-gaap:AccountsPayableCurrent )      
                Payable to Globe Photo, Inc. 10,000 10,000  
                ( us-gaap:OtherLoansPayableCurrent )      
                Due to related parties 152,245 32,245  
                ( us-gaap:DueToRelatedPartiesCurrent )      
                Notes payable - related parties 459,975 471,284  
                ( us-gaap:ShortTermBorrowings )      
                Notes payable, net of debt discount 447,500 494,335  
                ( us-gaap:NotesPayableRelatedPartiesClassifiedCurrent )      
                Derivative liability 43,841 57,922  
                ( us-gaap:EmbeddedDerivativeFairValueOfEmbeddedDerivativeLiability )      
                Loans payable, net of unamortized discount 554,913 349,818  
                ( us-gaap:DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet )      
                Total Current Liabilities 2,104,729 2,017,757  
                ( us-gaap:LiabilitiesCurrent )      
                Total Liabilities 2,104,729 2,017,757  
                ( us-gaap:Liabilities )      
                Preferred stock, $0.0001 par value, 50,000,000 shares authorized; none issued and outstanding at September 30, 2017 and December 31, 2016  
                ( us-gaap:PreferredStockValue )      
                Common stock par value $0.0001: 450,000,000 shares authorized; 325,570,524 and 325,570,524 issued and 325,382,292 and 325,570,524 outstanding as of September 30, 2017 and December 31, 2016, respectively 32,557 32,557  
                ( us-gaap:CommonStockValue )      
                Additional paid in capital 4,097,711 4,097,711  
                ( us-gaap:AdditionalPaidInCapital )      
                Treasury stock; 188,232 and 0 shares as of September 30, 2017 and December 31, 2017, respectivley. 64,000  
                ( us-gaap:TreasuryStockCommonValue )      
                Accumulated deficit (2,986,904) (2,674,795)  
                ( us-gaap:RetainedEarningsAccumulatedDeficit )      
                Shareholders' Equity 1,079,364 1,455,473  
                ( us-gaap:StockholdersEquity )      
                Total Liabilities and Stockholders' Equity 3,184,093 3,473,230  
                ( us-gaap:LiabilitiesAndStockholdersEquity )      
(End Statement - Consolidated Balance Sheets)
 
Statement - Consolidated Balance Sheets (Parenthetical)
Statement - Consolidated Balance Sheets (Parenthetical) (USD $)    
( us-gaap:StatementOfFinancialPositionAbstract )    
  Sep. 30, 2017 Dec. 31, 2016
     
     
     
Preferred stock, par value 0.0001 0.0001
( us-gaap:PreferredStockParOrStatedValuePerShare )    
Preferred stock, shares authorized 50,000,000 50,000,000
( us-gaap:PreferredStockSharesAuthorized )    
Preferred stock, shares issued 0 0
( us-gaap:PreferredStockSharesIssued )    
Preferred stock, shares outstanding 0 0
( us-gaap:PreferredStockSharesOutstanding )    
Common stock, par value 0.0001 0.0001
( us-gaap:CommonStockParOrStatedValuePerShare )    
Common stock, shares authorized 450,000,000 450,000,000
( us-gaap:CommonStockSharesAuthorized )    
Common stock, shares issued 325,570,524 325,570,524
( us-gaap:CommonStockSharesIssued )    
Common stock, shares outstanding 325,382,292 325,570,524
( us-gaap:CommonStockSharesOutstanding )    
Treasury stock, shares 188,232 0
( us-gaap:TreasuryStockCommonShares )    
(End Statement - Consolidated Balance Sheets (Parenthetical))
 
Statement - Consolidated Statements of Operations
Statement - Consolidated Statements of Operations (USD $) 3 Months Ended 9 Months Ended
( us-gaap:IncomeStatementAbstract )    
  Sep. 30, 2017 Sep. 30, 2016 Sep. 30, 2017 Sep. 30, 2016
         
         
         
License revenue 39,947 51,429 141,489 144,328
( custom:LicenseRevenue [Extension] )        
Image revenue 434,474 261,382 790,976 485,048
( custom:ImageRevenue [Extension] )        
Total revenue 474,421 312,811 932,465 629,376
( us-gaap:Revenues )        
Cost of revenue 294,726 262,692 562,873 548,344
( us-gaap:CostOfRevenue )        
Gross margin 184,363 50,119 369,592 81,032
( us-gaap:GrossProfit )        
Operating expenses        
( us-gaap:OperatingExpensesAbstract )        
    Product development, sales and marketing 57,252 48,509 150,611 174,712
    ( us-gaap:BusinessDevelopment )        
    General and administrative 151,075 129,902 451,628 459,016
    ( us-gaap:GeneralAndAdministrativeExpense )        
    Depreciation and amortization 18,900 16,832 56,196 53,461
    ( us-gaap:DepreciationAndAmortization )        
    Total operating expenses 227,227 195,243 658,435 687,189
    ( us-gaap:OperatingExpenses )        
    Loss from operations (42,864) (145,124) (288,843) (606,157)
    ( us-gaap:OperatingIncomeLoss )        
    Other income (expenses)        
    ( us-gaap:OtherIncomeAndExpensesAbstract )        
        Interest expense (23,324) (35,155) (87,347) (85,569)
        ( us-gaap:InterestExpense )        
        Change in fair value of derivative liabilities 3,418 17,000 14,081 44,000
        ( us-gaap:InterestExpenseTradingLiabilities )        
        Gain on sale of property and equipment 50,000 50,000
        ( us-gaap:GainLossOnSaleOfPropertyPlantEquipment )        
        Other income (expenses) 30,094 (52,155) (23,266) (129,569)
        ( us-gaap:OtherNonoperatingIncomeExpense )        
        Net income (loss) (12,770) (197,279) (312,109) (735,726)
        ( us-gaap:NetIncomeLoss )        
        Per-share data        
        ( us-gaap:EarningsPerShareBasicAndDilutedAbstract )        
        Basic and diluted income (loss) per share 0.00 0.00 0.00 0.00
        ( us-gaap:EarningsPerShareBasicAndDiluted )        
        Weighted average number of common shares outstanding - basic and diluted 325,382,292 325,341,224 325,382,292 325,341,224
        ( us-gaap:WeightedAverageNumberOfShareOutstandingBasicAndDiluted )        
(End Statement - Consolidated Statements of Operations)
 
Statement - Consolidated Statements of Cash Flows
Statement - Consolidated Statements of Cash Flows (USD $) 3 Months Ended 9 Months Ended
( us-gaap:StatementOfCashFlowsAbstract )    
  Sep. 30, 2017 Sep. 30, 2016 Sep. 30, 2017 Sep. 30, 2016
         
         
         
CASH FLOWS FROM OPERATING ACTIVITIES:        
( us-gaap:NetCashProvidedByUsedInOperatingActivitiesAbstract )        
    Net loss (12,770) (197,279) (312,109) (735,726)
    ( us-gaap:NetIncomeLoss )        
Adjustments to reconcile net loss to net cash used in operating activities:        
( us-gaap:AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract )        
    Depreciation and amortization     340,098 320,854
    ( us-gaap:DepreciationAmortizationAndAccretionNet )        
    Amortization of debt discount     30,123 16,435
    ( us-gaap:AmortizationOfDebtDiscountPremium )        
    Change in fair value of embedded derivative     (14,081) 44,000
    ( us-gaap:EmbeddedDerivativeGainLossOnEmbeddedDerivativeNet )        
    Gain on sale of archival images licenses     (50,000)
    ( custom:GainOnSaleArchivalImages [Extension] )        
    Accounts receivable     81,988 106,318
    ( us-gaap:IncreaseDecreaseInAccountsReceivable )        
    Prepaid expenses     (38,339) 9,602
    ( us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets )        
    Inventory     (2,500) (44,024)
    ( us-gaap:IncreaseDecreaseInInventories )        
    Security deposit     7,225
    ( us-gaap:IncreaseDecreaseInMarginDepositsOutstanding )        
    Accounts payable and accrued liabilities     (165,898) (67,869)
    ( us-gaap:IncreaseDecreaseInAccountsPayable )        
    Net Cash Used In Operating Activities     (130,718) (343,185)
    ( us-gaap:NetCashProvidedByUsedInOperatingActivities )        
CASH FLOWS FROM INVESTING ACTIVITIES:        
( us-gaap:NetCashProvidedByUsedInInvestingActivitiesAbstract )        
    Proceeds from sale of property and equipment     50,000
    ( us-gaap:ProceedsFromSaleOfOtherPropertyPlantAndEquipment )        
    Purchase of archival images, property and equipment     (124,407) (125,653)
    ( us-gaap:PaymentsToAcquirePropertyPlantAndEquipment )        
    Net Cash Used In Investing Activities     (74,407) (125,653)
    ( us-gaap:NetCashProvidedByUsedInInvestingActivities )        
CASH FLOWS FROM FINANCING ACTIVITIES:        
( us-gaap:NetCashProvidedByUsedInFinancingActivitiesAbstract )        
    Proceeds from loans payable     200,000 313,687
    ( us-gaap:ProceedsFromConvertibleDebt )        
    Repayment of loans payable     11,863
    ( us-gaap:RepaymentsOfConstructionLoansPayable )        
    Proceeds from related party advances     164,725
    ( us-gaap:ProceedsFromCollectionOfLongtermLoansToRelatedParties )        
    Repayment of related party advances     (44,725) (18,000)
    ( us-gaap:PaymentsToFundLongtermLoansToRelatedParties )        
    Proceeds from notes payable     25,000 115,000
    ( us-gaap:ProceedsFromNotesPayable )        
    Repayment of note payable     85,000
    ( us-gaap:RepaymentsOfNotesPayable )        
    Proceeds from note payable - related party     212,500
    ( custom:ProceedsFromNotePayableRelatedParty [Extension] )        
    Repayment of note payable - related party     (11,309) (12,466)
    ( us-gaap:RepaymentsOfRelatedPartyDebt )        
    Repayment of payable to Globe Photo, Inc.     (90,000)
    ( custom:RepaymentGlobePhoto [Extension] )        
    Purchase of treasury stock     64,000
    ( us-gaap:PaymentsForRepurchaseOfConvertiblePreferredStock )        
    Net Cash Provided By Financing Activities     172,828 520,721
    ( us-gaap:NetCashProvidedByUsedInFinancingActivities )        
Net Change in Cash     (32,297) 51,883
( us-gaap:CashPeriodIncreaseDecrease )        
Cash - Beginning of Period     54,034 32,570
( us-gaap:Cash )        
Cash - End of Period     21,737 84,453
( custom:CashEnd [Extension] )        
SUPPLEMENTARY CASH FLOW INFORMATION:        
( us-gaap:SupplementalCashFlowInformationAbstract )        
    Cash Paid During the Period for:        
    ( us-gaap:CashDividendsPaidToParentCompanyAbstract )        
        Interest     16,882 6,905
        ( us-gaap:InterestPaidNet )        
(End Statement - Consolidated Statements of Cash Flows)
 
Disclosure - Organization and Business Operations
Disclosure - Organization and Business Operations (USD $) 9 Months Ended
( us-gaap:AccountingPoliciesAbstract )  
  Sep. 30, 2017
   
   
   
Organization and Business Operations

Capital Art, Inc. (formerly Movie Star News, LLC) ((“we”, “our”, the “Company”) sells and manages classic and contemporary, limited edition photographic images and reproductions, with a focus on iconic celebrity images. The Company also makes available its images for publications and merchandizing. The Company aims to become a leading global photography marketing and distribution company by acquiring rights and ownership to collections of rare iconic negatives and photographs, and to establish worldwide wholesale and retail sales channels.

 

Going Concern

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.

 

Management evaluated all relevant conditions and events that are reasonably known or reasonably knowable, in the aggregate, as of the date the consolidated financial statements are issued and determined that substantial doubt exists about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on the Company’s ability to generate revenues and raise capital. The Company has not generated sufficient revenues from product sales to provide sufficient cash flows to enable the Company to finance its operations internally. As of September 30, 2017, the Company had $21,737 cash on hand. At September 30, 2017 the Company has an accumulated deficit of $2,986,904 . For the nine months ended September 30, 2017 the Company had a net loss of $312,109  and a working capital deficit of $1,924,638 . These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

The Company intends to invest its working capital resources in sales and marketing in order to increase the distribution and demand for its products. If the Company fails to generate sufficient revenue and obtain additional capital to continue at its expected level of operations, the Company may be forced to scale back or discontinue its sales and marketing efforts. However, there is no guarantee the Company will generate sufficient revenues or raise capital to continue operations. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

( us-gaap:BasisOfPresentationAndSignificantAccountingPoliciesTextBlock )  
(End Disclosure - Organization and Business Operations)
 
Disclosure - Significant Accounting Policies
Disclosure - Significant Accounting Policies (USD $) 9 Months Ended
( us-gaap:AccountingPoliciesAbstract )  
  Sep. 30, 2017
   
   
   
Significant Accounting Policies

Basis of Presentation

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been or omitted pursuant to such rules and regulations. As such, the information included in the consolidated financial statements for the nine months ended September 30, 2017 should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Form 10-K for the Company’s fiscal year ended December 31, 2016 as filed with the SEC pursuant to Rule 12(b) under the Securities Act of 1934.

 

The consolidated balance sheet as of December 31, 2016, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.

 

The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the year ended December 31, 2017.

 

The accompanying unaudited consolidated financial statements represent the results of operations, financial position and cash flows of Capital Art, Inc., and its 100% owned subsidiary Capital Art, LLC and Globe Photos, LLC for the three and nine months ended September 30, 2017 and 2016. All inter-company balances and transactions have been eliminated.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

 

Inventory

 

The Company’s inventory is comprised of rare photos of movie stars and other famous people, and is stated at the lower of cost or net realizable value. Direct labor and raw material costs associated with the process of making the photos available for sale are also included in inventory at cost. These costs are expensed to cost of sales pro-ratably as sold.

 

Revenue Recognition

 

The Company recognizes revenue related to product sales when (i) the seller’s price is substantially fixed, (ii) shipment has occurred causing the buyer to be obligated to pay for product, (iii) the buyer has economic substance apart from the seller, and (iv) there is no significant obligation for future performance to directly bring about the resale of the product by the buyer as required by ASC 605 – Revenue Recognition. Cost of sales, rebates and discounts are recorded at the time of revenue recognition or at each financial reporting date.

 

The Company’s other revenue represent payments based on net sales from brand licensees for content reproduction rights. These license agreements are held in conjunction with third parties that are responsible for collecting fees due and remitting to the Company its share after expenses. Revenue from licensed products and royalties are recognized when realized or realizable based on royalty reporting received from licensees.  

 

Basic and Diluted Income (Loss) per Share

 

The Company computes income (loss) per share in accordance with ASC 260 - Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the consolidated statements of operations. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted EPS excludes all dilutive potential shares if their effect is antidilutive. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are antidilutive.

 

A reconciliation of weighted-average basic shares outstanding to weighted-average diluted shares outstanding follows:

 

   Nine Months Ended September 30,
   2017  2016
Basic weighted average common shares outstanding   325,382,292    325,341,224
          
Effect of dilutive securities   —      —  
          
Diluted weighted average common and potential common shares outstanding   325,382,292    325,341,224

 

Reclassifications

 

Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.

 

Recent Accounting Pronouncements

 

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations and includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. ASU 2016-08 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.  The amendments in ASU 2016-10 clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. ASU 2016-10 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts from Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this update affect the guidance in ASU 2014-09, which is not yet effective. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised 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. The amendments in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but instead affect only the narrow aspects noted in Topic 606. ASU 2016-12 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09. Management evaluated ASU 2016-08, ASU2016-09, ASU 2016-10, and ASU 2016-12 and determined the adoption will not have a material impact on the Company’s consolidated financial statements. 

In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. 

In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments including requirements to measure most equity investments at fair value with changes in fair value recognized in net income, to perform a qualitative assessment of equity investments without readily determinable fair values, and to separately present financial assets and liabilities by measurement category and by type of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 will be effective for the Company beginning on January 1, 2018, and will be applied by means of a cumulative effect adjustment to the balance sheet, except for effects related to equity securities without readily determinable values, which will be applied prospectively. Management has reviewed this pronouncement and have determined that it would not have a material impact to the financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which requires an entity to recognize long-term lease arrangements as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all long-term leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The amendments also require certain new quantitative and qualitative disclosures regarding leasing arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. Management does not believe the adoption of ASU 2016-02 will have a material impact on the Company’s consolidated financial statements.

 

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument would not, in and of itself, be considered a termination of the derivative instrument, provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning on January 1, 2017. Early adoption is permitted, including in an interim period. Management evaluated ASU 2016-05 and determined the adoption of this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments, which aims to reduce the diversity of practice in identifying embedded derivatives in debt instruments. ASU 2016-06 clarifies that the nature of an exercise contingency is not subject to the “clearly and closely” criteria for purposes of assessing whether the call or put option must be separated from the debt instrument and accounted for separately as a derivative. ASU 2016-06 is effective for the Company beginning on January 1, 2017. Management evaluated ASU 2016-06 and determined the adoption of this this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting and presentation of share-based payment transactions, including the accounting for related income taxes consequences and certain classifications within the statement of cash flows. ASU 2016-09 is effective for the Company beginning on January 1, 2017. Management evaluated the impact of adopting ASU 2016-09 and determined the new accounting standard did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable.

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230)”, requiring that the statement of cash flows explain the change in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2017 with early adoption permitted. The provisions of this guidance are to be applied using a retrospective approach which requires application of the guidance for all periods presented. Management has reviewed this pronouncement and have determined that it would not have a material impact to the financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. Management has reviewed this pronouncement and have determined that it would not have a material impact to the financial statements.

In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.

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Disclosure - Fair Value of Financial Instruments
Disclosure - Fair Value of Financial Instruments (USD $) 9 Months Ended
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  Sep. 30, 2017
   
   
   
Fair Value of Financial Instruments

The Company’s derivative liability measured at fair value on a recurring basis was determined using the following inputs:

 

   Fair Value Measurements at September 30, 2017
         Quoted Prices in Active Markets for Identical Assets    Significant Other Observable Inputs    Significant Unobservable Inputs
    Total    (Level 1)    (Level 2)    (Level 3)
Put option derivative liability  $43,841   $—     $—     $43,841

 

 

   Fair Value Measurements at December 31, 2016
         Quoted Prices in Active Markets for Identical Assets    Significant Other Observable Inputs    Significant Unobservable Inputs
    Total    (Level 1)    (Level 2)    (Level 3)
Put option derivative liability  $57,922   $—     $—     $57,922

 

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments measured at fair value on a recurring basis using significant unobservable inputs:

 

    Fair Value Measurements Using Significant Unobservable Inputs
    (Level 3)
      Embedded Derivative Liability
      September 30,       December 31,
      2017       2016
Balance beginning of period   $ 57,922     $ 55,000
Change in fair market value of derivative liability     (14,081)       2,922
Balance end of period   $ 43,841     $ 57,922
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(End Disclosure - Fair Value of Financial Instruments)
 
Disclosure - Property and Equipment, Net
Disclosure - Property and Equipment, Net (USD $) 9 Months Ended
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  Sep. 30, 2017
   
   
   
Archival Images, and Property and Equipment

Property and equipment as of September 30, 2017 and December 31, 2016 comprise of the following:

 

    September 30, December 31,     Estimated Useful
    2017     2016     Lives
Frank Worth Collection   $ 2,770,000     $ 2,770,000       10 years
Other archival images     1,006,368       889,331       10 years
Leasehold improvements     12,446       12,446       7 years
Computer and other equipment     72,686       65,316       3 – 5 years
Furniture and fixtures     83,666       83,666       7 years
      3,945,166       3,820,759        
Less accumulated deprecation     (1,284,645)       (977,172 )      
Total archival images, property and equipment, net   $ 2,660,521     $ 2,843,587      

 

 

 

Depreciation expense was $307,473, and $288,229 for the nine months ended September 30, 2017 and 2016, respectively, of which $283,902 and $267,393 are reported in cost of revenue, respectively.

 

On August 7, 2017, the Company sold for $50,000  all rights to certain images held in the Company's archives. The Company determined that the cost associated with the archived images sold were immaterial and as such recorded a $50,000 gain on the sale during the nine months ended September 30, 2017.

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(End Disclosure - Property and Equipment, Net)
 
Disclosure - Intangible Assets, Net
Disclosure - Intangible Assets, Net (USD $) 9 Months Ended
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  Sep. 30, 2017
   
   
   
Intangible Assets

Identifiable intangible assets comprise of the following at September 30, 2017 and December 31, 2016:

 

 

   September 30, 2017     December 31, 2016   
   Gross Carrying   Amount 

Accumulated

Amortization

  Net book value  Gross Carrying   Amount 

Accumulated

Amortization

  Net book value
Intangible assets with determinable lives:                             
                              
Content provider and photographic agreements  $400,000   $90,000   $310,000   $400,000   $60,000   $340,000
Copyrights   35,000    7,875    27,125    35,000    5,250    29,750
Total  $435,000   $97,875   $337,125   $435,000   $65,250   $369,750

  

Amortization expense in connection with the photographic agreements and copyrights for each of the nine months ended September 30, 2017 and 2016 was $32,625. Amortization expenses is included in depreciation and amortization. Estimated amortization expense over the next five years is $43,500 per year.

 

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Disclosure - Notes Payable
Disclosure - Notes Payable (USD $) 9 Months Ended
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  Sep. 30, 2017
   
   
   
Note Payable

On September 28, 2015, the Company entered into a promissory note agreement for working capital purposes with an unrelated party for total proceeds of $150,000. The note matured on September 28, 2016. Effective September 28, 2016, the note was extended to September 30, 2017 and is secured by approximately 240,000 vintage photographs. Interest accrues at the rate of 10% per annum and is payable monthly beginning October 28, 2015. Interest expense was $3,750 and $11,250 for the three and nine months ended September 30, 2017 and 2016, respectively. Effective July 31, 2017 the note was extended to December 31, 2017 and is currently past due.  

In December 2015, the Company entered into a secured promissory note agreement with an unrelated party for working capital purposes for total proceeds of $120,000. The note matured on December 31, 2017 and is currently past due, bears interest at the rate of 10% per annum, and is payable on the 1st day of each month commencing in February 2016. On February 15, 2016, the Company entered into an additional promissory note agreement with the unrelated party for additional proceeds of $62,500 under the same terms as the first note. The notes are secured by certain inventory and archival images of the Company in the amount of up to $200,000. Interest expense was $4,563 and $4,575 and $12,188 and $12,921for the three and nine months ended September 30, 2017 and 2016, respectively. As of the date of this filing this note is still outstanding and currently in default.

In April 2016, the Company entered into two promissory note agreements with unrelated parties for working capital purposes for total proceeds of $75,000. The promissory notes matured in December 2017 is currently past due, and bear interest at the rate of 6% per annum. Interest expense was $1,125 and $1,134 and $3,375 and $2,223 for the three and nine months ended September 30, 2017 and 2016, respectively.

On April 7, 2016, an unrelated party advanced the Company $75,000 plus an original issue discount of $25,000 for the purchase of a Marilyn Monroe archive. The advance is secured by the archive for which it was used and is to be repaid on or before April 7, 2017. As of May 3, 2017, the note was extended to December 31, 2017 and is currently past due.  The Company has agreed to pay 50% of the proceeds derived from the Marilyn Monroe archives up to a guaranteed total of $100,000. Once the $100,000 is paid, the Company has no further obligations. As of September 30, 2017, $10,000 of the balance was repaid and $90,000 of the balance remains outstanding. During the nine months ended September 30, 2017 and, $25,000 and $11,835 of the discount has been amortized to interest expense. The note is shown net of the unamortized portion of the discount of $0 and $13,165 as of September 30, 2017 and 2016, respectively.

On February 24, 2017, the Company entered into a short-term unsecured note with an unrelated party for working capital purposes for total proceeds of $25,000. During the three months ended March 31, 2017, the Company repaid $27,000, including $2,000 in interest expense. As of September 30, 2017, the note has been paid in full.

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(End Disclosure - Notes Payable)
 
Disclosure - Related Party Transactions
Disclosure - Related Party Transactions (USD $) 9 Months Ended
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  Sep. 30, 2017
   
   
   
Related Party Transactions

Notes payable to related parties 

 

Effective July 21, 2015, the Company entered into a promissory note agreement with a related party Dino Satallante, a beneficial interest shareholder of the Company, for total proceeds of $160,000. The Company utilized $80,000 of the proceeds for payments due in connection with the Globe Photo assets acquired. The remainder of the proceeds were used for working capital purposes. The note matures on July 20, 2016, with monthly interest only payments commencing July 22, 2015. Interest accrues at the rate of 12% per annum. The note is secured by the Globe Photo Assets. Total interest expense in connection with the secured promissory note agreement for the three and nine months ended September 30, 2017 and 2016 is $4,800 and $14,400, respectively . Per the terms of the agreement the Company incurred loan fees totaling $8,000 to be amortized over the term of the loan. For the nine months ended September 30, 2017, amortization expense in connection with the loan fees totaled $0 and $2,001, respectively. Effective July 20, 2016 the note was extended to December 31, 2017  and is currently past due. We considered ASC Topic 470-50, Debt Modifications and Extinguishments, and determined that the modification is not considered substantially different under the guidance and as such extinguishment accounting was not applied. The note is being shown net of unamortized loan fees of $0 as of September 30, 2017.

On August 1, 2013 the Company entered into an unsecured promissory note agreement with a related party Dino Satallante for $100,000. The loan bears interest at the rate of 5% per annum. During nine months ended September 30, 2017, $11,309  of note principal was repaid As of September 30, 2017, and December 31, 2016, $64,874 and $76,183 was outstanding under the unsecured promissory note agreement, respectively. Interest expense for the three and nine  months ended September 30, 2017 was $811 and $1,561 and $2,433 and $2,950 respectively. The loan matured on July 14, 2014 and was extended to July 31, 2016. Effective July 31, 2016, the note agreement was extended to December 31, 2017  and is currently past due. We considered ASC Topic 470-50, Debt Modifications and Extinguishments, and determined that the modification is not considered substantially different under the guidance and as such extinguishment accounting was not applied.

Effective September 11, 2014 the Company entered into two separate unsecured promissory note agreements for $20,500 each with two related parties, Dreamstar an entity owned and controlled by Sam Battistone, a Company officer and director and a principal shareholder, and Dino Satallante, a beneficial interest shareholders of the Company, for working capital purposes. The loans bear interest at the rate of 6% per annum. The loans matured on September 10, 2015, and were extended to December 31, 2016. In December 2016, both loans were extended to December 31, 2017  and are currently past due. We considered ASC Topic 470-50, Debt Modifications and Extinguishments, and determined that the modification is not considered substantially different under the guidance and as such extinguishment accounting was not applied. At September 30, 2017 and December 31, 2016, $20,500 and $18,100 was outstanding to Dino Satallante and Dreamstar, respectively. Interest expense in connection with the two unsecured promissory note agreements for the three and nine months  ended September 30, 2017 and 2016 was $579 and $1,737, respectively.

On April 4, 2016 the Company entered into a secured promissory note agreement with Premier Collectibles, a beneficial interest shareholder for total proceeds of $65,000 to be used for acquisition of archive agreement. The promissory note bears interest at the rate of 8% per annum, is secured by the archive collection which the proceeds were used and matured on or before April 1, 2017. The note was extended to July 31, 2017  and is currently past due. We considered ASC Topic 470-50, Debt Modifications and Extinguishments, and determined that the modification is not considered substantially different under the guidance and as such extinguishment accounting was not applied. Interest expense on the note was $1,300 and $1,300 and $3,900 and $2,539 for the three and nine months  ended September 30, 2017 and 2016, respectively.

On April 15, 2016, the Company entered into an unsecured promissory note agreement with Sean Goodchild, a beneficial interest shareholder, for total proceeds of $50,000. The promissory note bears interest at the rate of 6% per annum and matured on December 15, 2017 and is currently past due. Interest expense on the note was $750 and $750 and $2,250 and $1,389 for the three and nine months  ended September 30, 2017 and 2016, respectively.

On October 3, 2016, the Company entered into an unsecured a promissory note agreement with Sean Goodchild, a beneficial interest shareholder, for total proceeds of $50,000. The promissory note bears interest at the rate of 6% per annum and matured on December 31, 2017 and is currently past due. Interest expense on the note was $750 and $0 and $2,250 and $0 for the three and nine months  ended September 30, 2017 and 2016, respectively.

On December 2, 2016, the Company entered into an unsecured promissory note agreement with Sean Goodchild, a beneficial interest shareholder, for total proceeds of $31,500. The promissory note bears interest at the rate of 6% per annum and matures on December 31, 2017 and is currently past due.. Interest expense on the note was $473 and $0 and $1,418 and $0 for the three and nine months  ended September 30, 2017 and 2016, respectively.

Due From/To Related Parties

The following table summarizes amounts due to the Company from related parties related to contractual agreements and amounts due to related parties for expenses paid for on the behalf of the Company as of September 30, 2017 and December 31, 2016. During the none months ended September 30, 2017 and 2016, the Company was advanced $164,725 and $0 and repaid $44,725 and $18,000, respectively. The amounts due are non-interest bearing and due upon demand. These amounts have been included in the consolidated balance sheets as current assets due from related parties and current liabilities due to related parties, respectively.

 

   September 30,  December 31,
   2017  2016
Due from related parties:         
Klaus Moeller, related party of pre-merger CAPA and beneficial interest shareholder  $78,920   $78,920
       Total due from related parties  $78,920   $78,920
          
Due to related parties:         
ICONZ Art, LLC, beneficial interest shareholder   124,213    4,213 
MSN Holding Co., beneficial interest shareholder   12,947    12,947
Premier Collectibles, beneficial interest shareholder   15,085    15,085
     Total due to related parties  $152,245   $32,245

 

Credit Card Payable

 

As of September 30, 2017 and December 31, 2016, $15,920 and $30,653, respectively, was outstanding on a personal credit card in the name of a beneficial interest shareholder of the Company – Premier Collectibles. The liability is included in accounts payable and accrued liabilities in the consolidated balance sheets.

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Disclosure - Commitments and Contingencies
Disclosure - Commitments and Contingencies (USD $) 9 Months Ended
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  Sep. 30, 2017
   
   
   
Commitments and Contingencies

Auctions of Royalty Rights

 

On March 8, 2016, the Company entered into a Listing Agreement with Royalty Network, LLC, doing business as Royalty Exchange for auction of a 50% ownership of photographic copyrights of certain celebrity archival images owned by the Company. In addition, the sale also assigns the winning bidder the right to receive 50% of the future share of income derived from the assigned images.

 

During 2016, the Company received gross proceeds of $396,000, less 12.5% auction broker fee, from five separate auctions of these rights. The Company retains all exclusive licensing authority over the images and may exercise a buyback option to buy back the 50% ownership of the rights for two times the original auction over a period ranging from 1 to 2 years.

 

The Company accounted for the 50% profit consideration for the above agreement in accordance with ASC 470-10-25 and 470-10-35 which require amounts recorded as debt to be amortized under the interest method as described in ASC 835-30, Interest Method. The Company determined an effective interest rate based on future expected cash flows to be paid to the loan holders. This rate represents the discount rate that equates estimated cash flows with the initial proceeds received from the loan holders and is used to compute the amount of interest to be recognized each period. Estimating the future cash outflows under this agreement requires the Company to make certain estimates and assumptions about future revenues and such estimates are subject to significant variability. Therefore, the estimates are likely to change which may result in future adjustments to the accretion of the interest expense and the amortized cost based carrying value of the related loans.

Accordingly, the Company has estimated the cash flows associated with the images and determined a discount of $151,316 which is being accounted as interest expense over a 10 year estimated life of the asset based on expected future revenue streams. For the nine months ended September 30, 2017, interest expense related to this loan amounted to $16,958 which has been included in interest expense in the consolidated statements of operations. During the nine months ended September 30, 2017, the Company made payments of $9,489 to the loan holders. As of September 30, 2017, loans payable net of unamortized debt discount amounted $357,287

 

Asset purchase agreement

 

On March 3, 2017, the Company entered into an agreement to sell 20% of its ownership in certain photographic archive asset for $200,000. As part of the agreement the buyer will be reimbursed the entire purchase price over a period of 24 months from any profits generated from the related asset. If however the entire purchase price is not paid back after 24 months then all net revenues from the Company will be paid to the buyer until the full purchase price has been paid.

 

The Company accounted for the above transaction as debt and recognized the amount received as a loan payable. During the three months ended September 30, 2017, the Company made a payment to the buyer in the amount of $2,374. As of September 30, 2017, the outstanding balance of the loan amounted to $197,626.

  

License Agreements

 

Effective June 1, 2016 the Company entered into three separate non-exclusive license agreements use of licensed images and trademarks through December 31, 2019. Under the terms of the agreements, the Company is required to pay royalties of 10% on net sales. The agreements call for combined annual guaranteed minimum royalties per year of $150,000 based on combined minimum sales of $1,500,000 per year. The Company was required to pay advances related to 50% of the first year’s royalties totaling $75,000 upon execution of the agreements. The remainder of the first year’s combined minimum royalties of $75,000 was paid during the nine months ended September 30, 2017.

 

Operating Lease Agreements

 

On September 6, 2012 the Company entered into a 25-month operating lease agreement for approximately 4,606 square foot warehouse and office facilities located in Las Vegas, NV. Monthly base rent due under the agreement is $3,270, plus common area maintenance fees. The agreement calls for 3% annual increase in base rental payments. On October 10, 2014, the Company entered into a First Amendment to Lease agreement extending the lease term for 60-months, beginning November 1, 2014. All other terms of the agreement remain unchanged.

 

The Company leases various corporate housing from unrelated third parties for terms that range from month-to-month to one year. The Company also rents office space on a month-to-month basis in New York at rate of $850 per month.

 

Total rent expense for nine months ended September 30, 2017 and 2016  was $40,406 and 40,135, respectively in connection with the operating lease agreements.

 

Future minimum lease payments related to the Company’s office leases as of September 30, 2017 are as follows:

 

2017   $ 10,721  
2018     44,168  
Total   $ 54,889  
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Disclosure - Shareholders' Equity
Disclosure - Shareholders' Equity (USD $) 9 Months Ended
( us-gaap:EquityAbstract )  
  Sep. 30, 2017
   
   
   
Shareholders' Equity

Common Stock

 

The Company is authorized to issue up to 450,000,000 shares of common stock with a par value of $0.0001. As of September 30, 2017, and December 31, 2016, there were 325,570,524 and 325,570,524 shares of common stock issued and 325,382,292 and 325,570,524 outstanding, respectively. 

 

As of September 30, 2017, the Company repurchased 188,232 shares of common stock for $64,000 related to the Globe Photo Asset Purchase Agreement entered into on July 22, 2015.

 

Preferred Stock

 

The Company is authorized to issue up to 50,000,000 shares of preferred stock authorized with a par value of $0.0001. The Board of Directors is authorized, subject to any limitations prescribed by law, without further vote or action by the Company’s stockholders, to issue from time to time shares of preferred stock in one or more series. Each series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by the board of directors, which may include, among others, dividend rights, voting rights, liquidation preferences, and conversion rights. As of September 30, 2017, there were no shares of Preferred Stock issued and outstanding.

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(End Disclosure - Shareholders' Equity)
 
Disclosure - Restatement
Disclosure - Restatement (USD $) 9 Months Ended
( us-gaap:EquityAbstract )  
  Sep. 30, 2017
   
   
   
Restatement

The Company has restated the financial statements for the three and nine months ended September 30, 2016 to correct the accounting of the sale of certain royalty rights.

 

As disclosed in Note 8, the Company sold a 50% ownership of its photographic copyrights of certain celebrity archival images and the right to receive 50% of the future share of income derived from the assigned images to third parties in exchange for a lump sum payment net of broker fees. The gross proceeds from the sale for the nine months ended September 30, 2016 were erroneously recorded as revenue while cost of sales were overstated for broker fees paid. The Company determined that these amounts should be recorded as debt in accordance with ASC 470-10-25 and 470-10-35. The effect of the correction is to increase liabilities by $313,687 and increase net loss by the same amount.

 

The following tables summarize the corrections on each of the affected financial statement line items for each period presented.

   As Previously Reported  Restatement Adjustment  As Restated
For the three months ended September 30, 2016            
Consolidated Statement of Operations:            
             
Revenue  $595,311  $(282,500)  $312,811
Cost of revenue  $298,005  $(35,313)  $262,692
Loss from operations  $102,063  $(247,187)  $(145,124)
Net income (loss)  $49,908  $(247,187)  $(197,279)
             
For the nine months ended September 30, 2016            
Consolidated Statement of Operations:            
             
Revenue  $987,876  $(358,500)  $629,376
Cost of revenue  $593,157  $(44,813)  $548,344
Loss from operations  $(292,470)  $(313,687)  $(606,157)
Net loss  $(422,039)  $(313,687)  $(735,726)
             
Consolidated Statement of Cash Flows:            
Net cash provided by operating activities  $(29,498)  $(313,687)  $(343,185)
Net cash provided by financing activities  $207,034  $313,687  $520,721
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(End Disclosure - Restatement)
 
Disclosure - Significant Accounting Policies (Policies)
Disclosure - Significant Accounting Policies (Policies) (USD $) 9 Months Ended
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  Sep. 30, 2017
   
   
   
Basis of Presentation and Principles of Consolidation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been or omitted pursuant to such rules and regulations. As such, the information included in the consolidated financial statements for the nine months ended September 30, 2017 should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Form 10-K for the Company’s fiscal year ended December 31, 2016 as filed with the SEC pursuant to Rule 12(b) under the Securities Act of 1934.

 

The consolidated balance sheet as of December 31, 2016, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.

 

The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the year ended December 31, 2017.

 

The accompanying unaudited consolidated financial statements represent the results of operations, financial position and cash flows of Capital Art, Inc., and its 100% owned subsidiary Capital Art, LLC and Globe Photos, LLC for the three and nine months ended September 30, 2017 and 2016. All inter-company balances and transactions have been eliminated.

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Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

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Inventory

The Company’s inventory is comprised of rare photos of movie stars and other famous people, and is stated at the lower of cost or net realizable value. Direct labor and raw material costs associated with the process of making the photos available for sale are also included in inventory at cost. These costs are expensed to cost of sales pro-ratably as sold.

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Revenue Recognition

The Company recognizes revenue related to product sales when (i) the seller’s price is substantially fixed, (ii) shipment has occurred causing the buyer to be obligated to pay for product, (iii) the buyer has economic substance apart from the seller, and (iv) there is no significant obligation for future performance to directly bring about the resale of the product by the buyer as required by ASC 605 – Revenue Recognition. Cost of sales, rebates and discounts are recorded at the time of revenue recognition or at each financial reporting date.

 

The Company’s other revenue represent payments based on net sales from brand licensees for content reproduction rights. These license agreements are held in conjunction with third parties that are responsible for collecting fees due and remitting to the Company its share after expenses. Revenue from licensed products and royalties are recognized when realized or realizable based on royalty reporting received from licensees.  

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Basic and Diluted Loss per Share

The Company computes income (loss) per share in accordance with ASC 260 - Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the consolidated statements of operations. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted EPS excludes all dilutive potential shares if their effect is antidilutive. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are antidilutive.

 

A reconciliation of weighted-average basic shares outstanding to weighted-average diluted shares outstanding follows:

 

   Nine Months Ended September 30,
   2017  2016
Basic weighted average common shares outstanding   325,382,292    325,341,224
          
Effect of dilutive securities   —      —  
          
Diluted weighted average common and potential common shares outstanding   325,382,292    325,341,224

 

( us-gaap:EarningsPerSharePolicyTextBlock )  
Recent Accounting Pronouncements

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations and includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. ASU 2016-08 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.  The amendments in ASU 2016-10 clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. ASU 2016-10 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts from Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this update affect the guidance in ASU 2014-09, which is not yet effective. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised 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. The amendments in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but instead affect only the narrow aspects noted in Topic 606. ASU 2016-12 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09. Management evaluated ASU 2016-08, ASU2016-09, ASU 2016-10, and ASU 2016-12 and determined the adoption will not have a material impact on the Company’s consolidated financial statements. 

In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. 

In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments including requirements to measure most equity investments at fair value with changes in fair value recognized in net income, to perform a qualitative assessment of equity investments without readily determinable fair values, and to separately present financial assets and liabilities by measurement category and by type of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 will be effective for the Company beginning on January 1, 2018, and will be applied by means of a cumulative effect adjustment to the balance sheet, except for effects related to equity securities without readily determinable values, which will be applied prospectively. Management has reviewed this pronouncement and have determined that it would not have a material impact to the financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which requires an entity to recognize long-term lease arrangements as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all long-term leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The amendments also require certain new quantitative and qualitative disclosures regarding leasing arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. Management does not believe the adoption of ASU 2016-02 will have a material impact on the Company’s consolidated financial statements.

 

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument would not, in and of itself, be considered a termination of the derivative instrument, provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning on January 1, 2017. Early adoption is permitted, including in an interim period. Management evaluated ASU 2016-05 and determined the adoption of this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments, which aims to reduce the diversity of practice in identifying embedded derivatives in debt instruments. ASU 2016-06 clarifies that the nature of an exercise contingency is not subject to the “clearly and closely” criteria for purposes of assessing whether the call or put option must be separated from the debt instrument and accounted for separately as a derivative. ASU 2016-06 is effective for the Company beginning on January 1, 2017. Management evaluated ASU 2016-06 and determined the adoption of this this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting and presentation of share-based payment transactions, including the accounting for related income taxes consequences and certain classifications within the statement of cash flows. ASU 2016-09 is effective for the Company beginning on January 1, 2017. Management evaluated the impact of adopting ASU 2016-09 and determined the new accounting standard did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable.

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230)”, requiring that the statement of cash flows explain the change in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2017 with early adoption permitted. The provisions of this guidance are to be applied using a retrospective approach which requires application of the guidance for all periods presented. Management has reviewed this pronouncement and have determined that it would not have a material impact to the financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. Management has reviewed this pronouncement and have determined that it would not have a material impact to the financial statements.

In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.

( us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock )  
Reclassifications

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations and includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. ASU 2016-08 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.  The amendments in ASU 2016-10 clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. ASU 2016-10 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts from Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this update affect the guidance in ASU 2014-09, which is not yet effective. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised 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. The amendments in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but instead affect only the narrow aspects noted in Topic 606. ASU 2016-12 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09. Management evaluated ASU 2016-08, ASU2016-09, ASU 2016-10, and ASU 2016-12 and determined the adoption will not have a material impact on the Company’s consolidated financial statements. 

In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. 

In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments including requirements to measure most equity investments at fair value with changes in fair value recognized in net income, to perform a qualitative assessment of equity investments without readily determinable fair values, and to separately present financial assets and liabilities by measurement category and by type of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 will be effective for the Company beginning on January 1, 2018, and will be applied by means of a cumulative effect adjustment to the balance sheet, except for effects related to equity securities without readily determinable values, which will be applied prospectively. Management has reviewed this pronouncement and have determined that it would not have a material impact to the financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which requires an entity to recognize long-term lease arrangements as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all long-term leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The amendments also require certain new quantitative and qualitative disclosures regarding leasing arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. Management does not believe the adoption of ASU 2016-02 will have a material impact on the Company’s consolidated financial statements.

 

Capital Art, Inc.

Notes to Consolidated Financial Statements

September 30, 2017 and 2016

(unaudited)

 

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument would not, in and of itself, be considered a termination of the derivative instrument, provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning on January 1, 2017. Early adoption is permitted, including in an interim period. Management evaluated ASU 2016-05 and determined the adoption of this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments, which aims to reduce the diversity of practice in identifying embedded derivatives in debt instruments. ASU 2016-06 clarifies that the nature of an exercise contingency is not subject to the “clearly and closely” criteria for purposes of assessing whether the call or put option must be separated from the debt instrument and accounted for separately as a derivative. ASU 2016-06 is effective for the Company beginning on January 1, 2017. Management evaluated ASU 2016-06 and determined the adoption of this this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting and presentation of share-based payment transactions, including the accounting for related income taxes consequences and certain classifications within the statement of cash flows. ASU 2016-09 is effective for the Company beginning on January 1, 2017. Management evaluated the impact of adopting ASU 2016-09 and determined the new accounting standard did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable.

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230)”, requiring that the statement of cash flows explain the change in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2017 with early adoption permitted. The provisions of this guidance are to be applied using a retrospective approach which requires application of the guidance for all periods presented. Management has reviewed this pronouncement and have determined that it would not have a material impact to the financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. Management has reviewed this pronouncement and have determined that it would not have a material impact to the financial statements.

 

Capital Art, Inc.

Notes to Consolidated Financial Statements

September 30, 2017 and 2016

(unaudited)

In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.

( us-gaap:Reclassifications )  
(End Disclosure - Significant Accounting Policies (Policies))
 
Disclosure - Significant Accounting Policies (Tables)
Disclosure - Significant Accounting Policies (Tables) (USD $) 9 Months Ended
( us-gaap:AccountingPoliciesAbstract )  
  Sep. 30, 2017
   
   
   
Reconciliation of weighted-average diluted shares
   Nine Months Ended September 30,
   2017  2016
Basic weighted average common shares outstanding   325,382,292    325,341,224
          
Effect of dilutive securities   —      —  
          
Diluted weighted average common and potential common shares outstanding   325,382,292    325,341,224
( us-gaap:ScheduleOfWeightedAverageNumberOfSharesTableTextBlock )  
(End Disclosure - Significant Accounting Policies (Tables))
 
Disclosure - Fair Value of Financial Instruments (Tables)
Disclosure - Fair Value of Financial Instruments (Tables) (USD $) 9 Months Ended
( us-gaap:FairValueDisclosuresAbstract )  
  Sep. 30, 2017
   
   
   
Schedule of derivative fair on recurring basis

   Fair Value Measurements at September 30, 2017
         Quoted Prices in Active Markets for Identical Assets    Significant Other Observable Inputs    Significant Unobservable Inputs
    Total    (Level 1)    (Level 2)    (Level 3)
Put option derivative liability  $43,841   $—     $—     $43,841

 

 

   Fair Value Measurements at December 31, 2016
         Quoted Prices in Active Markets for Identical Assets    Significant Other Observable Inputs    Significant Unobservable Inputs
    Total    (Level 1)    (Level 2)    (Level 3)
Put option derivative liability  $57,922   $—     $—     $57,922
( us-gaap:FairValueAssetsMeasuredOnRecurringBasisTextBlock )  
Schedule of Level 3 Significant Inputs
    Fair Value Measurements Using Significant Unobservable Inputs
    (Level 3)
      Embedded Derivative Liability
      September 30,       December 31,
      2017       2016
Balance beginning of period   $ 57,922     $ 55,000
Change in fair market value of derivative liability     (14,081)       2,922
Balance end of period   $ 43,841     $ 57,922
( us-gaap:FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock )  
(End Disclosure - Fair Value of Financial Instruments (Tables))
 
Disclosure - Property and Equipment, Net (Tables)
Disclosure - Property and Equipment, Net (Tables) (USD $) 9 Months Ended
( us-gaap:PropertyPlantAndEquipmentAbstract )  
  Sep. 30, 2017
   
   
   
Schedule of archival images, property and equipment
    September 30, December 31,     Estimated Useful
    2017     2016     Lives
Frank Worth Collection   $ 2,770,000     $ 2,770,000       10 years
Other archival images     1,006,368       889,331       10 years
Leasehold improvements     12,446       12,446       7 years
Computer and other equipment     72,686       65,316       3 – 5 years
Furniture and fixtures     83,666       83,666       7 years
      3,945,166       3,820,759        
Less accumulated deprecation     (1,284,645)       (977,172 )      
Total archival images, property and equipment, net   $ 2,660,521     $ 2,843,587      

 

 

( us-gaap:PropertyPlantAndEquipmentTextBlock )  
(End Disclosure - Property and Equipment, Net (Tables))
 
Disclosure - Intangible Assets, Net (Tables)
Disclosure - Intangible Assets, Net (Tables) (USD $) 9 Months Ended
( us-gaap:GoodwillAndIntangibleAssetsDisclosureAbstract )  
  Sep. 30, 2017
   
   
   
Schedule of intangible assets
   September 30, 2017     December 31, 2016   
   Gross Carrying   Amount 

Accumulated

Amortization

  Net book value  Gross Carrying   Amount 

Accumulated

Amortization

  Net book value
Intangible assets with determinable lives:                             
                              
Content provider and photographic agreements  $400,000   $90,000   $310,000   $400,000   $60,000   $340,000
Copyrights   35,000    7,875    27,125    35,000    5,250    29,750
Total  $435,000   $97,875   $337,125   $435,000   $65,250   $369,750
( us-gaap:ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock )  
(End Disclosure - Intangible Assets, Net (Tables))
 
Disclosure - Related Party Transactions (Tables)
Disclosure - Related Party Transactions (Tables) (USD $) 9 Months Ended
( us-gaap:RelatedPartyTransactionsAbstract )  
  Sep. 30, 2017
   
   
   
Schedule of related party transactions
   September 30,  December 31,
   2017  2016
Due from related parties:         
Klaus Moeller, related party of pre-merger CAPA and beneficial interest shareholder  $78,920   $78,920
       Total due from related parties  $78,920   $78,920
          
Due to related parties:         
ICONZ Art, LLC, beneficial interest shareholder   124,213    4,213 
MSN Holding Co., beneficial interest shareholder   12,947    12,947
Premier Collectibles, beneficial interest shareholder   15,085    15,085
     Total due to related parties  $152,245   $32,245
( us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock )  
(End Disclosure - Related Party Transactions (Tables))
 
Disclosure - Commitments and Contingencies (Tables)
Disclosure - Commitments and Contingencies (Tables) (USD $) 9 Months Ended
( us-gaap:CommitmentsAndContingenciesDisclosureAbstract )  
  Sep. 30, 2017
   
   
   
Schedule of future minimum operatinng lease payments
2017   $ 10,721  
2018     44,168  
Total   $ 54,889  
( us-gaap:ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTableTextBlock )  
(End Disclosure - Commitments and Contingencies (Tables))
 
Disclosure - Restatement (Tables)
Disclosure - Restatement (Tables) (USD $) 9 Months Ended
( us-gaap:EquityAbstract )  
  Sep. 30, 2017
   
   
   
Corrections to Financial Statement
   As Previously Reported  Restatement Adjustment  As Restated
For the three months ended September 30, 2016            
Consolidated Statement of Operations:            
             
Revenue  $595,311  $(282,500)  $312,811
Cost of revenue  $298,005  $(35,313)  $262,692
Loss from operations  $102,063  $(247,187)  $(145,124)
Net income (loss)  $49,908  $(247,187)  $(197,279)
             
For the nine months ended September 30, 2016            
Consolidated Statement of Operations:            
             
Revenue  $987,876  $(358,500)  $629,376
Cost of revenue  $593,157  $(44,813)  $548,344
Loss from operations  $(292,470)  $(313,687)  $(606,157)
Net loss  $(422,039)  $(313,687)  $(735,726)
             
Consolidated Statement of Cash Flows:            
Net cash provided by operating activities  $(29,498)  $(313,687)  $(343,185)
Net cash provided by financing activities  $207,034  $313,687  $520,721
( us-gaap:AccountingChangesAndErrorCorrectionsTextBlock )  
(End Disclosure - Restatement (Tables))
 
Disclosure - Organization and Business Operations (Details Narrative)
Disclosure - Organization and Business Operations (Details Narrative) (USD $) 3 Months Ended 9 Months Ended      
( us-gaap:AccountingPoliciesAbstract )          
  Sep. 30, 2017 Sep. 30, 2016 Sep. 30, 2017 Sep. 30, 2016 Sep. 30, 2017 Dec. 31, 2016 Dec. 31, 2015
               
               
               
Cash         21,737 54,034 32,570
( us-gaap:Cash )              
Accumulated deficit         (2,986,904) (2,674,795)  
( us-gaap:RetainedEarningsAccumulatedDeficit )              
Net loss (12,770) (197,279) (312,109) (735,726)      
( us-gaap:NetIncomeLoss )              
Working capital deficit     (1,924,638)        
( custom:CashUsedInOperations [Extension] )              
(End Disclosure - Organization and Business Operations (Details Narrative))
 
Disclosure - Significant Accounting Policies (Details)
Disclosure - Significant Accounting Policies (Details) (USD $) 9 Months Ended
( us-gaap:AccountingPoliciesAbstract )  
  Sep. 30, 2017 Sep. 30, 2016
     
     
     
Basic weighted average common shares outstanding 325,382,292 325,341,224
( us-gaap:WeightedAverageNumberOfSharesOutstandingBasic )    
Effect of dilutive securities 0 0
( us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment )    
Diluted weighted average common and potential common shares outstanding 325,382,292 325,341,224
( us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding )    
(End Disclosure - Significant Accounting Policies (Details))
 
Disclosure - Fair Value of Financial Instruments (Details - fair value)
Disclosure - Fair Value of Financial Instruments (Details - fair value) (USD $)            
( us-gaap:FairValueDisclosuresAbstract )            
  Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Dec. 31, 2016 Dec. 31, 2016
( us-gaap:FairValueByFairValueHierarchyLevelAxis )            
  Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
  Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
 
( us-gaap:FairValueMeasurementsFairValueHierarchyDomain )            
Put Option Derivative Liability 0 43,841 0 43,841 57,922 57,922
( us-gaap:EmbeddedDerivativeFairValueOfEmbeddedDerivativeLiability )            
(End Disclosure - Fair Value of Financial Instruments (Details - fair value))
 
Disclosure - Fair Value of Financial Instruments (Details - Level 3)
Disclosure - Fair Value of Financial Instruments (Details - Level 3) (USD $) 9 Months Ended 12 Months Ended    
( us-gaap:FairValueDisclosuresAbstract )        
  Sep. 30, 2017 Dec. 31, 2016 Sep. 30, 2017 Dec. 31, 2016
( us-gaap:FairValueByFairValueHierarchyLevelAxis )        
  Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
  Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
 
( us-gaap:FairValueMeasurementsFairValueHierarchyDomain )        
Beginning balance     57,922 55,000
( custom:BeginningBalanceLevelThree [Extension] )        
Change in fair market value of derivative liability (14,081) 2,922    
( us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings )        
Ending balance     43,841 57,922
( custom:EndingBalanceLevelThree [Extension] )        
(End Disclosure - Fair Value of Financial Instruments (Details - Level 3))
 
Disclosure - Property and Equipment (Details)
Disclosure - Property and Equipment (Details) (USD $) 9 Months Ended          
( us-gaap:PropertyPlantAndEquipmentAbstract )            
  Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )                    
  Leasehold Improvements [Member] Computer and other equipment [Member] Furniture and fixtures [Member] Frank Worth Collection [Member] Other archival images[Member] Frank Worth Collection [Member] Leasehold Improvements [Member] Computer and other equipment [Member] Other archival images[Member] Furniture and fixtures [Member]
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )                    
Property and equipment gross           2,770,000 12,446 72,686 1,006,368 83,666
( us-gaap:PropertyPlantAndEquipmentGross )                    
Less accumulated deprecation                    
( us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment )                    
Total archival images, property and equipment, net                    
( us-gaap:PropertyPlantAndEquipmentNet )                    
Estimated useful lives 7 years 3-5 years 7 years 10 years 10 years          
( us-gaap:PropertyPlantAndEquipmentEstimatedUsefulLives )                    
 
Table continued from above
 
Disclosure - Property and Equipment (Details) (USD $)              
( us-gaap:PropertyPlantAndEquipmentAbstract )              
  Sep. 30, 2017 Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )              
    Leasehold Improvements [Member] Furniture and fixtures [Member] Computer and other equipment [Member] Frank Worth Collection [Member] Other archival images[Member]  
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )              
Property and equipment gross 3,945,166 12,446 83,666 65,316 2,770,000 889,331 3,820,759
( us-gaap:PropertyPlantAndEquipmentGross )              
Less accumulated deprecation (1,284,645)           (977,172)
( us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment )              
Total archival images, property and equipment, net 2,660,521           2,843,587
( us-gaap:PropertyPlantAndEquipmentNet )              
Estimated useful lives              
( us-gaap:PropertyPlantAndEquipmentEstimatedUsefulLives )              
(End Disclosure - Property and Equipment (Details))
 
Disclosure - Property and Equipment (Details Narrative)
Disclosure - Property and Equipment (Details Narrative) (USD $) 9 Months Ended  
( us-gaap:PropertyPlantAndEquipmentAbstract )    
  Sep. 30, 2017 Sep. 30, 2016 Aug. 7, 2017
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )      
       
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )      
Depreciation Expense 307,473 288,229  
( us-gaap:Depreciation )      
Reported in cost of revenue 283,902 267,393  
( custom:ReportedInCostOfRevenue [Extension] )      
Images sold     50,000
( custom:ImagesSold [Extension] )      
Gain on sale of images 50,000    
( custom:GainOnSaleOfImages [Extension] )      
(End Disclosure - Property and Equipment (Details Narrative))
 
Disclosure - Intangible Assets (Details)
Disclosure - Intangible Assets (Details) (USD $)            
( us-gaap:GoodwillAndIntangibleAssetsDisclosureAbstract )            
  Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )            
  Copyrights [Member] Content provider and photographic agreements [Member]   Copyrights [Member] Content provider and photographic agreements [Member]  
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )            
Intangible assets, gross 35,000 400,000 435,000 35,000 400,000 435,000
( us-gaap:FiniteLivedIntangibleAssetsGross )            
Accumulated amortization 7,875 90,000 97,875 5,250 60,000 62,250
( us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization )            
Net Book Value 27,125 310,000 337,125 29,750 340,000 369,750
( custom:NetBookValue [Extension] )            
(End Disclosure - Intangible Assets (Details))
 
Disclosure - Intangible Assets (Details Narrative)
Disclosure - Intangible Assets (Details Narrative) (USD $) 9 Months Ended  
( us-gaap:GoodwillAndIntangibleAssetsDisclosureAbstract )    
  Sep. 30, 2017 Sep. 30, 2016 Sep. 30, 2017
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )      
       
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )      
Amortization expense 32,625 32,625  
( us-gaap:AdjustmentForAmortization )      
Amortization expense due current     43,500
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths )      
Amortization expense year two     43,500
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo )      
Amortization expense year three     43,500
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearThree )      
Amortization expense year four     43,500
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearFour )      
Amortization expense year five     43,500
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearFive )      
(End Disclosure - Intangible Assets (Details Narrative))
 
Disclosure - Notes Payable (Details Narrative)
Disclosure - Notes Payable (Details Narrative) (USD $) 9 Months Ended  
( us-gaap:DebtDisclosureAbstract )    
  Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2016 Sep. 30, 2016 Sep. 30, 2016 Feb. 24, 2017
( us-gaap:LongtermDebtTypeAxis )                    
  Secured Promissory Note [Member] Secured Promissory Note Two [Member] Related Party Advances [Member] Secured Promissory Note Four [Member] Secured Promissory Note Three [Member] Unsecured Debt [Member] Unsecured Debt [Member] Secured Promissory Note [Member] Related Party Advances [Member] SecuredPromissoryNoteFourMember
( us-gaap:LongtermDebtTypeDomain )                    
Debt face amount                   25,000
( us-gaap:DebtInstrumentFaceAmount )                    
Proceeds from note payable 120,000 62,500 75,000 25,000   150,000        
( us-gaap:ProceedsFromUnsecuredNotesPayable )                    
Debt maturity date 2017-12-31 2017-12-31     2017-12-31 2017-07-31        
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate                    
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense 12,188   3,375 2,000 3,358 3,750 11,250 12,921 2,223  
( us-gaap:InterestExpenseDebt )                    
Interest Expense Three Month 4,563   1,125         4,575 1,134  
( custom:InterestExpenseThreeMonth [Extension] )                    
Accrued interest                    
( us-gaap:InterestPayableCurrent )                    
Repayment amount     10,000 27,000            
( custom:RepaymentAmount [Extension] )                    
Photographs securing note 200,000         240,000        
( custom:PhotgraphsSecuringNote [Extension] )                    
Default Interest Rate                    
( custom:DefaultInterestRate [Extension] )                    
First Tranche Received                    
( custom:FirstTranche [Extension] )                    
Remaining Proceeds Reveived Date   2016-04-05                
( custom:RemainingProceedsReceivedDate [Extension] )                    
Remaining Proceeds Received   40,000                
( custom:RemainingProceedsReceived [Extension] )                    
Advance from Related Party original discount     25,000              
( custom:AdvancedToRelatedParty [Extension] )                    
Discount Amortized     25,000           11,835  
( custom:AmortizedDiscount [Extension] )                    
Net of Unamortized Discount     0           13,165  
( custom:NetOfUnamortizedDiscount [Extension] )                    
Gauranteed Total of Repayment     100,000              
( custom:GauranteedTotalRepayment [Extension] )                    
Outstanding Balnce of Related Party Advance     90,000              
( custom:OutstandingBalanceDueRelatedParty [Extension] )                    
 
Table continued from above
 
Disclosure - Notes Payable (Details Narrative) (USD $)                    
( us-gaap:DebtDisclosureAbstract )                    
  Dec. 31, 2016 Dec. 31, 2016 Dec. 2, 2016 Oct. 3, 2016 Apr. 15, 2016 Apr. 7, 2016 Apr. 4, 2016 Apr. 1, 2016 Feb. 15, 2016 Dec. 31, 2015
( us-gaap:LongtermDebtTypeAxis )                    
  Secured Promissory Note [Member] Unsecured Debt [Member] Sean Goodchild 3 [Member] Sean Goodchild 2 [Member] Sean Goodchild [Member] RelatedPartyAdvancesThreeMember Premier Collectibles [Member] SecuredPromissoryNoteThreeMember Secured Promissory Note Two [Member] Unsecured Debt [Member]
( us-gaap:LongtermDebtTypeDomain )                    
Debt face amount           75,000   75,000 62,500  
( us-gaap:DebtInstrumentFaceAmount )                    
Proceeds from note payable                    
( us-gaap:ProceedsFromUnsecuredNotesPayable )                    
Debt maturity date                    
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate     0.06 0.06 0.06   0.08 0.06 0.10  
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense                    
( us-gaap:InterestExpenseDebt )                    
Interest Expense Three Month                    
( custom:InterestExpenseThreeMonth [Extension] )                    
Accrued interest 12,665 11,404               154
( us-gaap:InterestPayableCurrent )                    
Repayment amount                    
( custom:RepaymentAmount [Extension] )                    
Photographs securing note                    
( custom:PhotgraphsSecuringNote [Extension] )                    
Default Interest Rate                    
( custom:DefaultInterestRate [Extension] )                    
First Tranche Received                    
( custom:FirstTranche [Extension] )                    
Remaining Proceeds Reveived Date                    
( custom:RemainingProceedsReceivedDate [Extension] )                    
Remaining Proceeds Received                    
( custom:RemainingProceedsReceived [Extension] )                    
Advance from Related Party original discount                    
( custom:AdvancedToRelatedParty [Extension] )                    
Discount Amortized                    
( custom:AmortizedDiscount [Extension] )                    
Net of Unamortized Discount                    
( custom:NetOfUnamortizedDiscount [Extension] )                    
Gauranteed Total of Repayment                    
( custom:GauranteedTotalRepayment [Extension] )                    
Outstanding Balnce of Related Party Advance                    
( custom:OutstandingBalanceDueRelatedParty [Extension] )                    
 
Table continued from above
 
Disclosure - Notes Payable (Details Narrative) (USD $)    
( us-gaap:DebtDisclosureAbstract )    
  Dec. 31, 2015 Sep. 28, 2015
( us-gaap:LongtermDebtTypeAxis )    
  Secured Promissory Note [Member] Unsecured Debt [Member]
( us-gaap:LongtermDebtTypeDomain )    
Debt face amount 120,000 150,000
( us-gaap:DebtInstrumentFaceAmount )    
Proceeds from note payable    
( us-gaap:ProceedsFromUnsecuredNotesPayable )    
Debt maturity date    
( us-gaap:DebtInstrumentMaturityDate )    
Debt interest rate 0.10 0.10
( us-gaap:DebtInstrumentInterestRateStatedPercentage )    
Interest expense    
( us-gaap:InterestExpenseDebt )    
Interest Expense Three Month    
( custom:InterestExpenseThreeMonth [Extension] )    
Accrued interest 655  
( us-gaap:InterestPayableCurrent )    
Repayment amount    
( custom:RepaymentAmount [Extension] )    
Photographs securing note    
( custom:PhotgraphsSecuringNote [Extension] )    
Default Interest Rate   0.25
( custom:DefaultInterestRate [Extension] )    
First Tranche Received    
( custom:FirstTranche [Extension] )    
Remaining Proceeds Reveived Date    
( custom:RemainingProceedsReceivedDate [Extension] )    
Remaining Proceeds Received    
( custom:RemainingProceedsReceived [Extension] )    
Advance from Related Party original discount    
( custom:AdvancedToRelatedParty [Extension] )    
Discount Amortized    
( custom:AmortizedDiscount [Extension] )    
Net of Unamortized Discount    
( custom:NetOfUnamortizedDiscount [Extension] )    
Gauranteed Total of Repayment    
( custom:GauranteedTotalRepayment [Extension] )    
Outstanding Balnce of Related Party Advance    
( custom:OutstandingBalanceDueRelatedParty [Extension] )    
(End Disclosure - Notes Payable (Details Narrative))
 
Disclosure - Related Party Transactions (Details)
Disclosure - Related Party Transactions (Details) (USD $)                    
( custom:RelatedPartyTransactionsDetailsAbstract [Extension] )                    
  Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016
( us-gaap:RelatedPartyTransactionsByRelatedPartyAxis )                    
  Klaus Moeller [Member] Premier Collectibles [Member] MSN Holding Co. [Member] ICONZ Art, LLC. [Member]   Klaus Moeller [Member] ICONZ Art, LLC. [Member] MSN Holding Co. [Member] Premier Collectibles [Member]  
( us-gaap:RelatedPartyDomain )                    
Due from related parties 78,920         78,920        
( us-gaap:DueFromRelatedPartiesCurrent )                    
Due to related parties   15,085 12,947 124,213 152,245   4,213 12,947 15,085 32,245
( us-gaap:DueToRelatedPartiesCurrent )                    
Totals Due from Related Parties         78,920         78,920
( custom:TotalsDueToRelatedPartiesOne [Extension] )                    
Totals Due to Related Parties         152,245         32,245
( custom:TotalsDueToRelatedPartiesTwo [Extension] )                    
(End Disclosure - Related Party Transactions (Details))
 
Disclosure - Related Party Transactions(Details Narrative)
Disclosure - Related Party Transactions(Details Narrative) (USD $) 3 Months Ended 9 Months Ended
( custom:NotesPayableToRelatedPartiesDetailsNarrativeAbstract [Extension] )    
  Dec. 31, 2015 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017
( us-gaap:LongtermDebtTypeAxis )                    
  Dino Satallante [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member]
Unsecured Debt [Member]
Dino Satallante [Member]
Unsecured Debt -2 [Member]
Dreamstar [Member]
Unsecured Debt -2 [Member]
Premier Collectibles [Member] Sean Goodchild [Member] Sean Goodchild 2 [Member] Sean Goodchild 3 [Member] Dino Satallante [Member] Secured Promissory Note Four [Member]
( us-gaap:LongtermDebtTypeDomain )                    
Proceeds from related party   100,000 20,500 20,500 65,000 50,000 50,000 31,500 160,000  
( us-gaap:ProceedsFromRelatedPartyDebt )                    
Utilazation of Debt                 80,000  
( custom:UtilizationOfDebt [Extension] )                    
Repayment of related party debt   11,309                
( us-gaap:RepaymentsOfRelatedPartyDebt )                    
Debt Effective Date   2013-08-01 2014-09-11 2014-09-11 2016-04-04 2016-04-15 2016-10-03 2016-12-02 2015-07-21  
( custom:DebtEffectiveDate [Extension] )                    
Debt maturity date   2017-12-31 2017-12-31 2017-12-31 2017-06-30 2017-12-15 2017-12-31 2017-12-31 2017-12-31  
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate                    
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense 619 2,433 579 579 3,900 2,250 2,250 473 4,800 2,000
( us-gaap:InterestExpenseDebt )                    
Interst Expense three month   811     1,300 750 750 1,418    
( custom:InterestExpenseThreeMonth [Extension] )                    
Amortization of loan fees                 4,424  
( us-gaap:AmortizationOfFinancingCosts )                    
Amortization of Loan fees after extension                    
( custom:AmortizationOfLoanFeesAfterExtension [Extension] )                    
Net of Unamortized loan fees                 0  
( custom:NetOfUnamortizedLoanFees [Extension] )                    
Debt loan fees                    
( us-gaap:DeferredFinanceCostsGross )                    
Note payable related party                    
( us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent )                    
Interest payable                    
( us-gaap:InterestPayableCurrentAndNoncurrent )                    
Otstanding Debt Due   64,874 20,500 20,500            
( custom:OutstandingDebtDue [Extension] )                    
 
Table continued from above
 
Disclosure - Related Party Transactions(Details Narrative) (USD $)
( custom:NotesPayableToRelatedPartiesDetailsNarrativeAbstract [Extension] )
  Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2016 Sep. 30, 2016 Sep. 30, 2016 Sep. 30, 2016 Sep. 30, 2016
( us-gaap:LongtermDebtTypeAxis )                    
  Secured Promissory Note [Member] Secured Promissory Note Two [Member] Secured Promissory Note Three [Member] Related Party Advances [Member]   Sean Goodchild [Member] Related Party Advances [Member] Premier Collectibles [Member] Sean Goodchild 3 [Member] Secured Promissory Note [Member]
( us-gaap:LongtermDebtTypeDomain )                    
Proceeds from related party                    
( us-gaap:ProceedsFromRelatedPartyDebt )                    
Utilazation of Debt                    
( custom:UtilizationOfDebt [Extension] )                    
Repayment of related party debt         11,309          
( us-gaap:RepaymentsOfRelatedPartyDebt )                    
Debt Effective Date                    
( custom:DebtEffectiveDate [Extension] )                    
Debt maturity date 2017-12-31 2017-12-31 2017-12-31              
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate                    
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense 12,188   3,358 3,375   1,389 2,223 2,539 0 12,921
( us-gaap:InterestExpenseDebt )                    
Interst Expense three month 4,563     1,125   750 1,134 1,300 0 4,575
( custom:InterestExpenseThreeMonth [Extension] )                    
Amortization of loan fees                    
( us-gaap:AmortizationOfFinancingCosts )                    
Amortization of Loan fees after extension                    
( custom:AmortizationOfLoanFeesAfterExtension [Extension] )                    
Net of Unamortized loan fees                    
( custom:NetOfUnamortizedLoanFees [Extension] )                    
Debt loan fees                    
( us-gaap:DeferredFinanceCostsGross )                    
Note payable related party                    
( us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent )                    
Interest payable                    
( us-gaap:InterestPayableCurrentAndNoncurrent )                    
Otstanding Debt Due                    
( custom:OutstandingDebtDue [Extension] )                    
 
Table continued from above
 
Disclosure - Related Party Transactions(Details Narrative) (USD $) 12 Months Ended      
( custom:NotesPayableToRelatedPartiesDetailsNarrativeAbstract [Extension] )        
  Sep. 30, 2016 Sep. 30, 2016 Dec. 31, 2015 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016 Sep. 30, 2017 Dec. 31, 2016 Dec. 31, 2016
( us-gaap:LongtermDebtTypeAxis )                    
  Sean Goodchild 2 [Member]   Dino Satallante [Member]
Unsecured Debt [Member]
Dreamstar [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member]
Unsecured Debt [Member]
Dino Satallante [Member] Dino Satallante [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member] UnsecuredDebtAllMember Dino Satallante [Member]
Unsecured Debt -2 [Member]
( us-gaap:LongtermDebtTypeDomain )                    
Proceeds from related party                    
( us-gaap:ProceedsFromRelatedPartyDebt )                    
Utilazation of Debt                    
( custom:UtilizationOfDebt [Extension] )                    
Repayment of related party debt   12,466                
( us-gaap:RepaymentsOfRelatedPartyDebt )                    
Debt Effective Date                    
( custom:DebtEffectiveDate [Extension] )                    
Debt maturity date                    
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate                   0.06
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense 0     1,737 2,950 14,400 1,737      
( us-gaap:InterestExpenseDebt )                    
Interst Expense three month 0       1,142          
( custom:InterestExpenseThreeMonth [Extension] )                    
Amortization of loan fees           3,576        
( us-gaap:AmortizationOfFinancingCosts )                    
Amortization of Loan fees after extension                    
( custom:AmortizationOfLoanFeesAfterExtension [Extension] )                    
Net of Unamortized loan fees           2,001        
( custom:NetOfUnamortizedLoanFees [Extension] )                    
Debt loan fees               8,000    
( us-gaap:DeferredFinanceCostsGross )                    
Note payable related party                   20,500
( us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent )                    
Interest payable                 12,379  
( us-gaap:InterestPayableCurrentAndNoncurrent )                    
Otstanding Debt Due     76,183 18,100 76,183   18,100      
( custom:OutstandingDebtDue [Extension] )                    
 
Table continued from above
 
Disclosure - Related Party Transactions(Details Narrative) (USD $)                    
( custom:NotesPayableToRelatedPartiesDetailsNarrativeAbstract [Extension] )                    
  Dec. 31, 2016 Dec. 31, 2016 Dec. 31, 2016 Dec. 2, 2016 Oct. 3, 2016 Apr. 15, 2016 Apr. 4, 2016 Feb. 15, 2016 Dec. 31, 2015 Dec. 31, 2015
( us-gaap:LongtermDebtTypeAxis )                    
  Dreamstar [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member]
Unsecured Debt [Member]
Dino Satallante [Member] Sean Goodchild 3 [Member] Sean Goodchild 2 [Member] Sean Goodchild [Member] Premier Collectibles [Member] Secured Promissory Note Two [Member] Secured Promissory Note [Member] UnsecuredDebtAllMember
( us-gaap:LongtermDebtTypeDomain )                    
Proceeds from related party                    
( us-gaap:ProceedsFromRelatedPartyDebt )                    
Utilazation of Debt                    
( custom:UtilizationOfDebt [Extension] )                    
Repayment of related party debt                    
( us-gaap:RepaymentsOfRelatedPartyDebt )                    
Debt Effective Date                    
( custom:DebtEffectiveDate [Extension] )                    
Debt maturity date                    
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate 0.06 0.05 0.12 0.06 0.06 0.06 0.08 0.10 0.10  
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense                    
( us-gaap:InterestExpenseDebt )                    
Interst Expense three month                    
( custom:InterestExpenseThreeMonth [Extension] )                    
Amortization of loan fees                    
( us-gaap:AmortizationOfFinancingCosts )                    
Amortization of Loan fees after extension                    
( custom:AmortizationOfLoanFeesAfterExtension [Extension] )                    
Net of Unamortized loan fees                    
( custom:NetOfUnamortizedLoanFees [Extension] )                    
Debt loan fees     8,000              
( us-gaap:DeferredFinanceCostsGross )                    
Note payable related party 18,100                  
( us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent )                    
Interest payable                   9,332
( us-gaap:InterestPayableCurrentAndNoncurrent )                    
Otstanding Debt Due                    
( custom:OutstandingDebtDue [Extension] )                    
 
Table continued from above
 
Disclosure - Related Party Transactions(Details Narrative) (USD $)  
( custom:NotesPayableToRelatedPartiesDetailsNarrativeAbstract [Extension] )  
  Dec. 31, 2015
( us-gaap:LongtermDebtTypeAxis )  
  Dino Satallante [Member]
Unsecured Debt [Member]
( us-gaap:LongtermDebtTypeDomain )  
Proceeds from related party  
( us-gaap:ProceedsFromRelatedPartyDebt )  
Utilazation of Debt  
( custom:UtilizationOfDebt [Extension] )  
Repayment of related party debt  
( us-gaap:RepaymentsOfRelatedPartyDebt )  
Debt Effective Date  
( custom:DebtEffectiveDate [Extension] )  
Debt maturity date  
( us-gaap:DebtInstrumentMaturityDate )  
Debt interest rate  
( us-gaap:DebtInstrumentInterestRateStatedPercentage )  
Interest expense  
( us-gaap:InterestExpenseDebt )  
Interst Expense three month  
( custom:InterestExpenseThreeMonth [Extension] )  
Amortization of loan fees  
( us-gaap:AmortizationOfFinancingCosts )  
Amortization of Loan fees after extension  
( custom:AmortizationOfLoanFeesAfterExtension [Extension] )  
Net of Unamortized loan fees  
( custom:NetOfUnamortizedLoanFees [Extension] )  
Debt loan fees  
( us-gaap:DeferredFinanceCostsGross )  
Note payable related party 91,143
( us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent )  
Interest payable  
( us-gaap:InterestPayableCurrentAndNoncurrent )  
Otstanding Debt Due  
( custom:OutstandingDebtDue [Extension] )  
(End Disclosure - Related Party Transactions(Details Narrative))
 
Disclosure - Related Party Transactions (Due From Details Narrative)
Disclosure - Related Party Transactions (Due From Details Narrative) (USD $) 9 Months Ended    
( custom:RelatedPartyTransactionsDetailsAbstract [Extension] )      
  Sep. 30, 2017 Sep. 30, 2016 Sep. 30, 2017 Dec. 31, 2016
( us-gaap:RelatedPartyTransactionsByRelatedPartyAxis )        
         
( us-gaap:RelatedPartyDomain )        
Repayments on Advances 44,725 18,000    
( custom:RepaymentsOnAdvances [Extension] )        
Advances 164,725 0    
( custom:AdvancesReceived [Extension] )        
Cerdit Card Debt Outstanding     15,920 30,653
( custom:CreditCard [Extension] )        
(End Disclosure - Related Party Transactions (Due From Details Narrative))
 
Disclosure - Commitments and Contingencies (Details)
Disclosure - Commitments and Contingencies (Details) (USD $)  
( us-gaap:CommitmentsAndContingenciesDisclosureAbstract )  
  Sep. 30, 2017
   
   
   
Future minimum operating lease payment, 2017 10,721
( us-gaap:OperatingLeasesFutureMinimumPaymentsDueInTwoYears )  
Future minimum operating lease payment, 2018 44,168
( us-gaap:OperatingLeasesFutureMinimumPaymentsDueInThreeYears )  
Future minimum operating lease payment, total 54,889
( us-gaap:OperatingLeasesFutureMinimumPaymentsDue )  
(End Disclosure - Commitments and Contingencies (Details))
 
Disclosure - Commitments and Contingencies (Details Narrative)
Disclosure - Commitments and Contingencies (Details Narrative) (USD $) 3 Months Ended 9 Months Ended 12 Months Ended      
( us-gaap:CommitmentsAndContingenciesDisclosureAbstract )            
  Jun. 30, 2016 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 Sep. 30, 2016 Dec. 30, 2015 Dec. 31, 2015 Sep. 30, 2017 Mar. 3, 2017 Jun. 1, 2016
( us-gaap:OtherCommitmentsAxis )                    
      Royalty Network, LLC       Royalty Network, LLC     Non-Exclusive License Agreements
( us-gaap:OtherCommitmentsDomain )                    
Lease Agreement Rent       3,270            
( custom:LeaseAgreementRent [Extension] )                    
Date of Agreement       2012-09-06            
( custom:DateOfAgreement [Extension] )                    
Term of Lease Agreement       P25M            
( custom:TermOfAgreement [Extension] )                    
Term of Extension of Lease       P60M            
( custom:TermOfExtensionOfLease [Extension] )                    
Date of Extension of Lease       2014-11-01            
( custom:DateOfExtensionOfLease [Extension] )                    
Square Footage       4,606            
( custom:SquareFottage [Extension] )                    
Annual Increase in base payments       0.03            
( custom:AnnualInreaseInBasePayments [Extension] )