NOTE 3 – CONSOLIDATED VARIABLE INTEREST ENTITY

The Financial Accounting Standards Board (FASB) authoritative guidance on consolidation requires the “primary beneficiary” of a variable interest entity (a “VIE”) to consolidate that entity. The “primary beneficiary” of a VIE, for this purpose, is a company that has a controlling financial interest in the VIE without any corresponding voting rights control. A controlling financial interest in this regard exists when a company is determined to have both the power to direct the activities that most significantly impact a VIE’s economic performance, on the one hand, and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE, on the other. The Company is one member, among others, of a Florida based, engineered cement technology and products firm, ACS. This firm was formed by the participants for the purpose of focusing on globally marketing a line of proprietary admixtures it has acquired the rights to and further internally developed to be used in the production of ultra-lightweight, high-strength concrete and high-performance stucco. Having been involved in the formation of ACS in September 2016, the Company determined during the fourth quarter of 2016 that it was the primary beneficiary of ACS, among the equity participants, based on qualitative and quantitative criteria. Among other factors, and more specifically, it was determined that the equity investors in ACS do not, and are not obligated to, provide sufficient financial resources for the entity to support itself in terms of day-to-day research and development activities. However, the Company has provided financial support that is disproportionate to its equity interest, and the Company’s management was involved in the organization of the entity. U.S. GAAP thereunder, requires a VIE to be consolidated by a company if and when that company holds a majority of the variable interests in the entity and is thus subject to a majority of the risk of loss from the VIE’s activities. For the years ended December 31, 2017 and 2016, the Company provided the financial resources in the amount of $225,198 and $52,750, respectively, as support for ACS’s day-to-day research and development activities which totals $277,948 since ACS’s inception. See Note 1.

The carrying value of the assets and liabilities of ACS which are consolidated as of December 31, 2017 and 2016 are as follows:

	December 31, 2017 (Unaudited)			December 31, 2016 (Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	4,053		$	4,020
Total current assets		4,053			4,020
Total assets	$	4,053		$	4,020

Liabilities and Members’ Deficit
Current Liabilities:
Due to Findex.com, Inc.	$	94,425		$	52,750
Accounts payable		5,379			—
Total current liabilities		99,804			52,750
Stockholders’ equity:
Members' investment		263,020			4,020
Accumulated deficit		(358,771	)		(52,750	)
Total members’ equity		(95,751	)		(48,730	)
Total liabilities and members’ deficit	$	4,053		$	4,020

Net loss	$	(306,021	)	$	(52,750	)

For the year ended December 31, 2016, ACS had a total of four equity investors and sold such equity for a total of $4,020. The Company is one of those equity investors and invested a total of $1,000 for the year ended December 31, 2016. For the year ended December 31, 2017, ACS sold equity in the company for $200,000 in cash to a new equity member, gained $1,000 in equity back as one of the four original investors withdrew from involvement with ACS, and sold additional equity in the amount of $60,000 to a new equity member for services previously provided to ACS. The following schedule illustrates the effect of such changes and shows the changes in the Company’s ownership interest in ACS on the Company’s equity.

Findex.com, Inc.
Net Income Attributable to Findex.com, Inc. and
Transfers from the Non-Controlling Interest
Year Ended December 31,

		2017			2016
Net loss attributable to Findex.com, Inc.	$	(1,267,399	)	$	(986,179	)
Transfers from the non-controlling interest
Increase in Findex.com, Inc.'s paid-in capital for sale of interest in Variable Interest Entity		259,000			3,020
Net transfers from non-controlling interest		259,000			3,020
Change from net income attributable to Findex.com, Inc. shareholders and transfers from non-controlling interest	$	(1,008,399	)	$	(983,159	)