Consolidated Variable Interest Entity

6 Months Ended

Jun. 30, 2018

Consolidated Variable Interest Entity [Abstract]

CONSOLIDATED VARIABLE INTEREST ENTITY

NOTE 3 – CONSOLIDATED VARIABLE INTEREST ENTITY

The 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. Therefore, a VIE is to be consolidated by the Company if and when the 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 six months ended June 30, 2018, the Company provided the financial resources in the amount of $109,430, as support for ACS’s day-to-day research and development activities. See Note 1.

The carrying value of the assets and liabilities of ACS which are included in the Company’s unaudited condensed consolidated financial statements are as follows:

		June 30, 2018				December 31, 2017
Assets
Current Assets:
Cash and cash equivalents		$	3,438			$	4,053
Accounts receivable, net			3,441				—
Total current assets			6,879				4,053
Total assets		$	6,879			$	4,053

Liabilities and Members’ Deficit
Current Liabilities:
Due to Findex.com, Inc.		$	213,418			$	94,425
Accounts payable			5,379				5,379
Total current liabilities			218,797				99,804
Stockholders’ equity:
Members' investment			263,020				263,020
Accumulated deficit			(474,938	)			(358,771	)
Total members’ deficit			(211,918	)			(95,751	)
Total liabilities and members’ deficit		$	6,879			$	4,053

Net loss		$	(116,167	)		$	(306,021	)

For the six months ended June 30, 2018, ACS had no changes in its equity structure. 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
Six Months Ended June 30,

			2018				2017
Net loss attributable to Findex.com, Inc.		$	(589,560	)		$	(546,823	)
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
Net transfers from non-controlling interest			—				259,000
Change from net income attributable to Findex.com, Inc. shareholders and transfers from non-controlling interest		$	(589,560	)		$	(287,823	)