UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended ~~September~~March 3031, ~~2015~~2016

-OR-

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ________ to ________.

Commission File Number: 000-53974

PMX COMMUNITIES, INC.

(Exact name of Registrant as specified in its charter)




Nevada		80-0433114
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)




4181 NW 1^st Avenue, #7
Boca Raton, FL 33431		(561) 210-5349
(Address of Principal Executive Offices)		(Registrant's telephone number)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to section 12(g) of the Act: Common Stock

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [x]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes [ ] No [x]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Rule 12b-2 of the Exchange Act. (Check one):





Large accelerated filer [ ]		Accelerated filer [ ]
Non-accelerated filer [ ]		Smaller reporting company [x]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [x]

The number of outstanding shares of the registrant’s common stock, ~~November~~May 20, ~~2015~~2016:

Common Stock – 97,114,124.

DOCUMENTS INCORPORATED BY REFERENCE

None.

Table of Contents

		Page
		No.
Part I.	Financial Information
Item 1.	Financial Statements (Unaudited)	4
	Condensed Consolidated Balance Sheets as of September 30, 2015 (Unaudited) and December 31, 2014 (Audited)	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	14
	Condensed Unaudited Consolidated Statements of Operations - For the Three and Nine Months Ended September 30, 2015 and 2014	5
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	17
	Condensed Unaudited Consolidated Statements of Cash Flows - For the Nine Months Ended September 30, 2015 and 2014	6
Item 4.	Controls and Procedures	18
	Notes to Condensed Unaudited Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	19
Item 4.	Controls and Procedures	19
Part II.	Other Information
Item 1.	Legal Proceedings	2119
Item 1a.	Risk Factors	2119
Item 2.	Unregistered Sales of Equity Securities and Proceeds	2119
Item 3.	Defaults Upon Senior Securities	2119
Item 4.	Submission of Matters to a Vote of Security Holders	2119
Item 5.	Other Information	2119
Item 6.	Exhibits	2119
	Signatures	2220

~~PMX~~Table ~~COMMUNITIES~~of ~~INC. AND SUBSIDIARY COMPANIES~~Contents

~~CONDENSED~~PMX ~~CONSOLIDATED~~COMMUNITIES ~~BALANCE~~INC. ~~SHEETS~~AND SUBSIDIARY

ASCONSOLIDATED OFBALANCE ~~SEPTEMBER 30, 2015 (UNAUDITED) AND DECEMBER 31, 2014~~SHEETS

	September 30, 2015	December 31, 2014
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$ -	$ 13
Inventory	5,251	5,251
Total current assets	5,251	5,264
Fixed assets
Property and equipment , net	70,787	96,438
Other assets
Security deposits	-	4,500
Total assets	$ 76,038	$ 106,202
Liabilities and Stockholders' Deficit
Current liabilities
Accounts Payable	$ 63,570	$ 69,070
Accrued Interest	86,633	70,656
Accrued Interest - related parties	28,359	18,548
Related parties - short-term loan	285,005	230,873
Notes payable - short term	153,367	153,367
Total current liabilities	616,934	542,514
Notes payable - long term	-	-
Total Liabilities	616,934	542,514
Stockholders' deficit
Preferred stock, $0.0001 par value; authorized 10,000,000 shares, no shares issued or outstanding	-	-
Common stock, $0.0001 par value; authorized 500,000,000
shares; issued and outstanding 97,114,124 and 93,114,124 shares as of September 30, 2015 and December 31, 2014	9,711	9,311
Additional paid-in capital	2,735,376	2,719,776
Accumulated deficit	(3,285,983)	(3,165,399)
Total stockholders' deficit	(540,896)	(436,312)
Total liabilities and stockholders' deficit	$ 76,038	$ 106,202

AS OF MARCH 31, 2016 (UNAUDITED) AND DECEMBER 31, 2015

See accompanying notes to condensed consolidated financial statements.


	March 31,	December 31,
	2016	2015
	(unaudited)
Assets

Current assets
Cash and cash equivalents	$ -	$ -
Total current assets	-	-

Fixed assets
Equipment , net	55,274	63,030

Total assets	$ 55,274	$ 63,030

Liabilities and Stockholders' Deficit

Current liabilities
Accounts Payable	$ 33,539	$ 35,379
Accrued Interest	97,789	92,017
Notes payable - short term	153,367	153,367
Total current liabilities	284,695	280,763

Notes payable - long term	-	-
Total Liabilities	284,695	280,763

Stockholders' deficit

Preferred stock, $0.0001 par value; authorized 10,000,000 shares, no shares issued or outstanding	-	-
Common stock, $0.0001 par value; authorized 500,000,000
shares; issued and outstanding 97,114,124 shares as of March 31, 2016 and December 31, 2015	9,711	9,711
Common stock payable	38,150	38,150
Additional paid-in capital	3,024,261	3,024,261
Accumulated deficit	(3,301,543)	(3,289,855)
Total stockholders' deficit	(229,421)	(217,733)
Total liabilities and stockholders' deficit	$ 55,274	$ 63,030

See accompanying notes to consolidated financial statements.

~~PMX~~Table ~~COMMUNITIES~~of ~~INC. AND SUBSIDIARY COMPANIES~~Contents

~~CONDENSED~~PMX ~~UNAUDITED~~COMMUNITIES ~~CONSOLIDATED~~INC. ~~STATEMENTS~~AND ~~OF OPERATIONS~~SUBSIDIARY

~~FOR~~CONSOLIDATED ~~THE~~STATEMENTS ~~THREE~~OF ~~AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014~~OPERATIONS

	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2015	2014	2015	2014
Net sales	$ -	$ -	$ -	$ 6,234
Costs and expenses:
Depreciation	10,138	7,756	25,651	23,447
Selling, general and administrative expenses	12,013	44,423	69,146	188,968
	22,151	52,179	94,797	212,415
Loss from operations	(22,151)	(52,179)	(94,797)	(206,181)
Interest expense	(9,689)	(4,901)	(15,977)	(14,750)
Interest expense - related parties	5,166	(4,611)	(9,810)	(10,789)
Loss before income taxes	(26,674)	(61,691)	(120,584)	(231,720)
Income taxes	-	-	-	-
Net loss	$ (26,674)	$ (61,691)	$ (120,584)	$ (231,720)
Basic net loss per share	$ (0.00)	$ (0.01)	$ (0.00)	$ (0.01)
Weighted average shares outstanding
Basic	97,115,124	87,292,163	95,547,358	86,174,320

FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2015

See accompanying notes to condensed consolidated financial statements.


	For the Three Months Ended March 31,
	2016	2015
	(Unaudited)	(Unaudited)
Net sales	$ -	$ -
Cost of sales	-	-
Gross loss	-	-

Costs and expenses:
Depreciation	7,756	7,756
Selling, general and administrative expenses	-	19,234
	7,756	26,990
Loss from operations	(7,756)	(26,990)

Other income (expense):
Interest expense	(5,773)	(8,504)
Gain on forgiveness of accounts payable	1,841	-
	(3,932)	(8,504)

Income (loss) before income taxes	(11,688)	(35,494)
Income taxes	-	-
Net income (loss)	$ (11,688)	$ (35,494)


Basic net income (loss) per share	$ (0.00)	$ (0.00)

Weighted average shares outstanding
Basic	97,115,124	87,162,764

See accompanying notes to consolidated financial statements.

~~PMX~~Table ~~COMMUNITIES~~of ~~INC. AND SUBSIDIARY COMPANIES~~Contents

~~CONDENSED~~PMX ~~UNAUDITED~~COMMUNITIES ~~CONSOLIDATED~~INC. ~~STATEMENTS~~AND ~~OF CASH FLOWS~~SUBSIDIARY

~~FOR~~CONSOLIDATED ~~THE~~STATEMENTS ~~NINE~~OF ~~MONTHS~~CASH ~~ENDED SEPTEMBER 30, 2015 AND 2014~~FLOWS

	Nine months ended
	September 30,
	2015	2014
Cash flows from operating activities
Net loss	$ (120,584)	$ (231,720)
Adjustments to reconcile net (loss) to net
cash provided by (used in) operating activities:
Depreciation	25,651	23,447
Issuance of common stock for services	16,000	113,675
Change in assets and liabilities
Inventory	-	(3,394)
Prepaid expenses and other current assets	-	1,000
Security deposit	4,500	938
Accounts payable	(5,500)	(2,725)
Accrued interest	15,977	14,750
Accrued interest - related parties	9,810	10,789
Accrued expenses	-	(10,612)
Net cash used in operating activities	(54,146)	(83,852)
Cash flows from investing activities
Proceeds from sale of fixed assets	-	2,914
Net cash provided by investing activities	-	2,914
Cash flows from financing activities
Proceeds from related party notes payable	54,133	80,872
Net cash provided by financing activities	54,133	80,872
Net decrease in cash and cash equivalents	(13)	(66)
Cash and cash equivalents, beginning of fiscal year	13	2,956
Cash and cash equivalents, end of period	$ -	$ 2,890
Supplementary information:
Cash paid for :
Interest	$ -	$ -
Income taxes	$ -	$ -
Non-cash transactions:
Common stock issued for services	$ -	$ -
Conversion of notes payable and accrued interest into common stock	$ -	$ 59,524

FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2015

See accompanying notes to condensed consolidated financial statements.


	For the Three Months Ended March 31,
	2016	2015
	(Unaudited)	(Unaudited)
Cash flows from operating activities
Net income (loss)	$ (11,688)	$ (35,494)
Adjustments to reconcile net (loss) to net
cash provided by (used in) operating activities:
Depreciation	7,756	7,756
Change in assets and liabilities
Inventory	-	-
Prepaid expenses and other current assets	-	-
Security deposit	-	-
Accounts payable	(1,841)	(7,500)
Accrued interest	5,773	8,504
Accrued expenses	-	-
Net cash used in operating activities	-	(26,734)

Cash flows from investing activities
Proceeds from sale of fixed assets	-	-
Net cash provided by investing activities	-	-

Cash flows from financing activities
Proceeds from related party notes payable	-	33,600

Net cash provided by financing activities	-	33,600

Net decrease in cash and cash equivalents	-	6,866
Cash and cash equivalents, beginning of fiscal year	-	13
Cash and cash equivalents, end of period	$ -	$ 6,879

Supplementary information:
Cash paid for :
Interest	$ -	$ -
Income taxes	$ -	$ -

Non-cash transactions:
Conversion of notes payable and accrued interest into common stock	$ -	$ 59,524

See accompanying notes to consolidated financial statements.

Table of Contents

PMX COMMUNITIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS ~~FOR THE THREE AND NINE MONTHS~~

FOR THE THREE MONTHS ENDED ~~SEPTEMBER~~MARCH 3031, ~~2015~~2016 AND ~~2014~~2015

NOTE 1 – DESCRIPTION OF BUSINESS

PMX Communities, Inc. "PMX" was organized under the laws of the State of Nevada on December 29, 2004 under the name Merge II, Inc. and changed its name to PMX Communities, Inc. effective February 10, 2009. PMX's year end is December 31.

On September 28, 2010, ~~the~~PMX ~~Company~~ formed PMX Gold, LLC, (“PMX Gold”) a Florida limited liability company as a wholly owned subsidiary of the Company to assist with evaluating and pursuing opportunities within the Gold Mining and Retail Gold Sales Industries.

On September 28, 2011, ~~the~~PMX ~~Company~~ formed PMX Gold Bullion Sales Inc. (“PMX Bullion”), a Florida corporation as a wholly owned subsidiary of the Company.

PMX, (through its wholly owned subsidiaries PMX Gold, LLC and PMX Gold Bullion Sales Inc.) focuses on the development of leveraged opportunities within the Retail Gold Sales and Gold Mining Industries.

PMX Communities, Inc. and its wholly- owned subsidiaries are hereafter referred to as “the Company”.

NOTE 2 - GOING CONCERN

The accompanying condensed unaudited consolidated financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As reflected in the accompanying condensed unaudited consolidated financial statements, the Company had a net loss of $~~120~~11,~~584~~688 and $~~231~~35,~~720~~494 for the ~~nine~~three months ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015, respectively. The Company has a working capital deficit of $~~611~~284,~~683~~695 and ~~$537,250, and~~ a stockholders' deficit of $~~540~~229,~~896~~421 ~~and~~at ~~$436,312~~March ~~as of September 30, 2015 and December~~ 31, ~~2014, respectively~~2016.

Based on the above considerations, there is a substantial doubt about the ability of the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to further implement its business plan and/ generate future profits or attain working capital through ~~financing~~debt or equity financing. Management hopes that the continued placement of precious metals machines in the U.S.A. and the potential of a global rollout of additional dispensing terminals will bring sufficient revenues and investment into the Company to sustain its growth and operations. Furthermore, the registrant feels organic growth through a new acquisition strategy in their other subsidiaries will assist the registrant in achievement of their goals. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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continued placement of precious metals machines in the U.S.A. and the potential of a global rollout of additional dispensing terminals will bring sufficient revenues and investment into the Company to sustain its growth and operations. Furthermore, management believes organic growth through a new strategy in the Company’s subsidiaries will assist the Company in achievement of its goals. There is no assurance that this series of events will be satisfactorily completed. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Our financial statements are stated in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP").

Interim Financial Statements

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. While we believe that the disclosures presented herein are adequate and not misleading, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated ~~financial statements~~ filed with the SEC in our Form 10K on April 1519, ~~2015~~2016. Operating results for the interim periods presented are not necessarily indicative of the results for the full year.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents.

Use of Estimates

The preparation of financial statements in conformity with ~~generally~~U.S. ~~accepted~~GAAP ~~accounting principles~~ requires ~~management~~us to make estimates, assumptions and ~~assumptions~~judgments that affect ~~certain~~the reported amounts ~~and~~of ~~disclosures.~~assets ~~Accordingly,~~and ~~actual~~liabilities ~~results~~and ~~could~~disclosure ~~differ~~of ~~from~~contingent ~~those~~assets ~~estimates.~~and ~~Significant~~liabilities ~~estimates~~as ~~include~~of the ~~valuation~~date of ~~inventories,~~the ~~deferred~~financial ~~tax~~statements ~~assets~~ and ~~equity~~the ~~transactions~~reported amounts of expenses during the period presented.

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We make our estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available. We believe that our significant estimates, assumptions and judgments are reasonable, based upon information available at the time they were made. Actual results could differ from these estimates, making it possible that a change in these estimates could occur in the near term.

Principles of Consolidation

The consolidated financial statements include the accounts of PMX Communities, Inc. and its wholly-owned subsidiaries, PMX Gold, LLC and PMX Gold Bullion Sales, Inc. All inter-company transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents.

Financial Instruments and Fair Value

The Company’s balance sheet includes certain financial instruments, including cash, ~~inventory,~~ accounts payable, accrued expenses and notes payable. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.

8ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2015. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments.9

~~Inventories~~Table of Contents

~~Inventories~~Level ~~are valued at the lower of cost (first-in, first-out) or market, and include finished gold bullion coins and bars. Inventory is stated at fair market value in accordance with ASC 330-10-35-15.~~1

Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities

Level 2

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3

Inputs that are both significant to the fair value measurement and unobservable.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2016. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments.

Equipment

Equipment is stated at cost, less accumulated depreciation. Depreciation is provided using the straight line method over the estimated useful life of five years for equipment, seven years for molds and seven years for furniture and fixtures.

Impairment of Long-Lived Assets

The Company evaluates the recoverability of long-lived assets and the related estimated remaining useful lives when events or circumstances lead management to believe that the carrying value of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In such circumstances, those assets are written down to estimated fair value. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset's estimated fair value and its book value.

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Common Stock, Common Stock Options and Warrants

The Company uses the fair value recognition provision of ASC 718, "Compensation-Stock Compensation," which requires the Company to expense the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of such instruments. The Company uses the Black-Scholes option pricing model to calculate the fair value of any equity instruments on the grant date.

The Company also uses the provisions of ASC 505-50, "Equity Based Payments to Non-Employees," to account for stock-based compensation awards issued to non-employees for services. Such awards for services are recorded at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50.

Income Taxes

Under the asset and liability method prescribed under ASC 740, Income Taxes, the Company uses the liability method of accounting for income taxes. The liability method measures deferred income taxes by applying enacted statutory rates in effect at the balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the financial statements. The resulting deferred tax assets or liabilities are adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized.

The Company recognizes the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a "more-likely-than-not" threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. As of ~~September~~March 3031, ~~2015~~2016 and December 31, ~~2014~~2015, the Company had no uncertain tax positions. The Company recognizes interest and penalties, if any, related to uncertain tax positions as general and administrative expenses. The Company currently has no federal or state tax examinations nor has it had any federal or state examinations since its inception. The tax years for December 31, ~~2011~~2012-~~2014~~2015 remain subject to review by federal and state tax authorities.

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Revenue Recognition

The Company recognizes revenue when it is realized and realizable.

- Persuasive evidence of an arrangement exists; and

- Delivery has occurred; and

- Price is fixed or determinable; and

- Collectability is reasonably assured

Subject to these criterions, the Company recognizes revenue at the time the merchandise is purchased and the machine dispenses the relevant merchandise. The Company offers its individual customers a 14-day warranty if the item is returned and if the TEP packaging is not broken. The customer will receive their money back. The Company estimates an allowance for sales returns based on historical experience with product returns. The Company closely follows the provisions of ASC 605, Revenue Recognition, which includes the guidelines of Staff Accounting Bulletin No. 104 as described above.

Income (loss) Per Common Share

Basic income (loss) per share is calculated using the weighted-average number of common shares outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities such as outstanding options and warrants, using various methods such as the treasury stock or modified treasury stock method in the determination of dilutive shares outstanding during each reporting period. AsNo ofpotentially ~~September~~dilutive ~~30,~~debt ~~2015~~or ~~and~~equity ~~December~~instruments ~~31,~~were ~~2014,~~issued ~~the~~or ~~effect~~outstanding ofduring ~~0 and 325,000 warrants, respectively, are not included in~~ the ~~loss~~three ~~per~~months ~~share~~ended ~~calculation~~March ~~since~~31, ~~the~~2016 ~~effect~~and ~~is anti-dilutive~~2015.

Reclassification

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported losses.

Recent Authoritative Accounting Pronouncement

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on its financial statements.

Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.

NOTE 4 – INVENTORY

Included in inventory are the package materials used to hold each piece disbursed from the gold dispensing terminal.

Inventory consists of the following:

	September 30, 2015	December 31, 2014
Finished Goods	$ 5,251	$ 5,251
	$ 5,251	$ 5,251

The inventory is considered greater than its net realizable value.

NOTE 5 – PROPERTY AND EQUIPMENT

Components of property and equipment are as follows:

	September 30, 2015	December 31, 2014
Gold Machines	$ 146,224	$ 146,224
Molds	8,909	8,909
Office Equipment	1,600	1,600
Office Furniture and Fixtures	3,366	3,366
Less: Accumulated Depreciation	(89,312)	(63,661)
Property and Equipment, net	$ 70,787	$ 96,438

Depreciation for the nine months ended September 30, 2015 and 2014 was $25,651 and $23,447, respectively.

NOTE 6 – NOTES PAYABLE, RELATED PARTY

Promissory Notes to related parties carry outstanding principal balances of $285,005 and $230,873 as of September 30, 2015 and December 31, 2014, respectively. Related parties accrued interest was $28,359 and $18,548 as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015, principal balances of $285,005 are due on demand as their maturity dates have passed or have maturity dates beginning October 2015 through March 2016, with $54,133 coming due beginning July 2015 through March 2016. All of these notes bear interest at rates ranging from 5% to 10% per annum.

~~NOTE~~Table 7of ~~– NOTES PAYABLE~~Contents

~~Promissory~~NOTE ~~Notes~~4 ~~carry~~– ~~outstanding~~PROPERTY ~~principal~~AND balances of $153,367 and $153,367 as of June 30, 2015 and December 31, 2014, respectively. Accrued interest was $86,633 and $70,656 as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015 all of these notes are due on demand as their maturity dates have passed. All of these notes bear interest at rates ranging from 5% to 10% per annum.EQUIPMENT

~~NOTE~~Components 8of –property ~~EQUITY~~and ~~FINANCING~~equipment are as follows:

On December 11, 2014, the Company amended its Articles of Incorporation. The following are the authorized shares for each class:


	March 31, 2016 (unaudited)	December 31, 2015

Gold Dispensing Terminals	$ 146,224	$ 146,224
Molds	8,909	8,909
Office Equipment	1,600	1,600
Office Furniture and Fixtures	3,366	3,366
Less: Accumulated Depreciation	(104,825)	(97,069)

Property and Equipment, net	$ 55,274	$ 63,030

Class	Par	Authorized
Preferred	0.0001	10,000,000
Common	0.0001	500,000,000

Depreciation for the three months ended March 31, 2016 and 2015 was $7,756 and $7,756, respectively.

~~Shares~~NOTE ~~Issued~~5 ~~for~~– ~~Services~~NOTES PAYABLE

OnPromissory ~~January~~Notes 18carry outstanding principal balances of $153,367 ~~2014~~and $153,367 ~~the~~as ~~Company~~of ~~issued~~March 231,~~000~~ 2016 and December 31,~~000~~ ~~shares~~2015, respectively. Related accrued interest was $97,789 and $92,017 as of ~~stock~~March to31, ~~its~~2015 ~~CEO~~and December 31, ~~Lindsey~~2015, ~~Perry~~respectively. As inof ~~exchange~~March ~~for~~31, ~~services~~2016, all of these notes are due on demand as their maturity dates have passed. All of these notes bear interest at a rate of 5% per annum.

OnNOTE ~~March~~ 6, ~~2014~~– ~~the~~RELATED ~~Company~~PARTY ~~issued 2,500,000 shares of stock to one consultant under its Stock Awards Amended Plan and charged $75,000 to operations for the period ended September 30, 2014.~~TRANSACTIONS

OnDuring ~~April 21, 2014~~ the ~~Company~~three ~~issued~~months anended ~~aggregate~~March of31, ~~750~~2015,~~000~~ ~~shares~~one ofshareholder ~~stock~~and tohis 3beneficial ~~separate~~interests ~~consultants. The~~made aggregate ~~fair~~loans ~~market value~~ of $1833,~~675~~600 ~~was~~to ~~charged~~the toCompany. The ~~operations~~loans ~~for~~bear ~~the~~interest ~~period~~at ~~ended~~5% ~~September~~and ~~30,~~each ~~2014~~has a six-month maturity.

OnNOTE ~~April~~7 ~~17,~~– ~~2015,~~SUBSEQUENT ~~the Company issued 4,000,000 shares of stock to a company for services. These shares were valued at fair market value, which on the date of issuance was $16,000 and expensed as consulting expense.~~EVENTS

~~Warrants~~The Company has evaluated events and transactions subsequent to March 31, 2016 through the date of filing with the Securities and Exchange Commission (date available for issuance) that would require reporting.

No warrants were issued and outstanding during the three and nine months ended September 30, 2015.

Prior to the three and nine months ended September 30, 2014, 325,000 “B” warrants were issued and outstanding from January 1, 2014 to their expiration in June 1, 2014. The “B” warrants were exercisable at $0.25 per share for a period of two years from the date on which the security offering under which they were issued was closed on June 1, 2012.

NoTable ~~new~~of ~~warrants were issued during the three and nine months ended September 30, 2014.~~Contents

		“B” Warrants Issued and Outstanding
Balance at December 31, 2013		325,000
Issued		-
Exercised		-
Expired/Forfeited		(325,000)
Balance at December 31, 2014		-

NOTE 8 – RELATED PARTY TRANSACTIONS

During the nine months ended September 30, 2015, one shareholder and his beneficial interests made aggregate loans of $54,133 to the Company. The loans bear interest at 5% and each have a six-month maturity.

NOTE 9 – COMMITMENTS AND CONTINGENCIES

In January 2015, the Company entered into a one year lease agreement for office space for $1,325 per month beginning March 1, 2015.

NOTE 10 – SUBSEQUENT EVENTS

The Company has evaluated events and transactions subsequent to September 30, 2015 through the date of filing with the Securities and Exchange Commission (date available for issuance) that would require reporting as follows:

During October 2015, one shareholder made a loan of $3,069 to the Company. The loan bears interest at 5% per annum and has a six-month maturity.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Trends and Uncertainties

The registrant has developed its PMX Gold Bullion Dispensing Terminal prototype called the MGIV and deployed the first prototype in Boca Raton, Florida, U.S.A. The terminal is an unmanned dispenser, which allows for gold dispensing and deposit and account management functions. The terminal also incorporated conventional ATM and touch-screen technology. After a successful 6 months test, the MGIV was removed in July 2013 from the first location.

The registrant has been assigned the ownership rights to two U.S. Provisional Patent Applications and a final International Patent Application Number PCT/US2012/020486 (“Unattended Precious Metal Distribution System, Methods and Apparatus”), and has filed next stage patent applications for its proprietary precious metals machine, in Australia, South Africa and the United States of America.

Our business operations are currently focused in three areas. The first original focus was the consumer demand for essentially one commodity gold through a dispensing terminal. Specifically, we were addressing the markets of physical gold ownership by retail investors, as well as developing and offering an ancillary set of financial services that would complement the purchase and sale of gold and other precious metals by retail investors. Any decrease in demand for gold or gold investments could still materially adversely affect our revenues in this area and profitability and general business prospects.

Presently, we are developing a second revenue stream. Our online PMX Goldstore, which sells 24k bullion gold bars and coins, launched in August 2015. We are planning on initiating a third business operation which will involve the sales of our dispensing terminals globally through direct sales and distributor channels.

In the first quarter of 2015 we widened our terminal product line to develop new machines on the platform of the original MGIV gold terminal. PMX started due diligence in states that have passed legislation to permit businesses in medical marijuana and recreational marijuana dispensaries. The research was conducted to accumulate information to decide whether the terminal would be an efficient machine to place in dispensaries. The Company concluded that the ability to enter this new marketplace could potentially be a new revenue producing opportunity. The registrant continues working with consultants and lawyers in these states to develop a compliant terminal to quickly deploy to dispensaries. The commercialization of any industry has barriers to entry that change quickly and PMX is hopeful that the terminal will meet them. There are risks that the Company must consider but since the terminal is built on the same platform as the MGIV gold terminal, PMX feels the costs to develop this terminal are minimal. ~~In the second quarter of 2015 we continued our business strategy from the first quarter in hopes of building a strong revenue platform from our terminal’s placements in the near future. In the~~

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~~third~~Table ~~quarter~~ of 2015 we plan to continue to develop our relationships both globally with our gold terminals and domestically with our gold and other product line machines. The Company continues to explore new and innovative platforms to hopefully develop multiple revenue streams for our dispensing terminals.Contents

~~Results~~In the second quarter of ~~Operations~~2015 ~~for~~we continued our business strategy from the ~~three~~first ~~months~~quarter ~~ended~~in ~~September~~hopes ~~30,~~of building a strong revenue platform from our terminal’s placements in the near future. In the third quarter of 2015 we continued to develop our relationships both globally with our gold terminals and ~~2014~~domestically with our gold and other product line machines. The Company continues to explore new and innovative platforms to hopefully develop multiple revenue streams for our dispensing terminals. The fourth quarter of 2015 was quiet and we continue as a management team to outsource diverse avenues to grow the company and seek new investors.

~~During~~We ~~the~~welcome ~~three~~2016 ~~months~~anxiously ~~ended~~as ~~September 30, 2015,~~ we ~~did~~continue ~~not~~exploration ~~earn any revenues. We incurred depreciation expenses~~ of ~~$10,138~~new ~~and~~relationships ~~selling,~~for ~~general~~the ~~and administrative expenses of $12,013~~Company. We ~~incurred~~The ~~interest~~Company ~~expense~~has ofbeen ~~$9,689~~looking ~~and~~at ~~received~~various ~~$5,166~~strategic astechnology anpartnerships ~~interest~~this ~~expense~~first ~~from~~quarter ~~related~~that ~~parties. As a result,~~ we ~~incurred~~hope awill ~~net~~bring ~~loss~~revenues ofto ~~$26,674 for~~ the ~~three~~bottom ~~months~~line ~~ended~~in ~~September 30, 2015~~2016.

ByResults ~~comparison, during the three months ended September 30, 2014, we did not earn any revenues. We incurred depreciation expenses~~ of ~~$7,756~~Operations and selling, general and administrative expenses of $44,423. We incurred interest expenses of $4,901 and interest expenses from related parties of $4,611. As a result, we incurred a net loss of $61,691 for the three months ended ~~September~~March 3031, ~~2014.~~2016 and 2015

~~The~~During ~~decrease~~the inthree ~~net~~months ~~loss~~ended ofMarch ~~$35~~31,~~017~~ is2016, ~~due~~we ~~primarily~~did tonot ~~the~~earn any revenues. We incurred depreciation expenses of $327,~~419,~~796. We orincurred ~~73%,~~interest ~~decrease~~expense inof ~~selling~~$5,773 ~~general~~ and ~~administrative~~received ~~expenses. This~~$1,841 isas ~~the~~a ~~result~~gain ofon ~~decreased~~forgiveness ~~operations~~of ~~while~~accounts wepayable. As ~~shift~~a ~~our~~result, ~~business~~we ~~focus~~incurred ~~from~~a ~~gold~~net ~~vending~~loss ~~machines~~of to$11,688 ~~exploring~~for ~~new~~the ~~markets~~three ~~for~~months ~~our~~ended ~~vending~~March ~~machines~~31, 2016.

~~Results~~By ofcomparison, ~~Operations~~during ~~for~~ the ~~nine~~three months ended ~~September~~March 3031, 2015, we did not earn any revenues. We incurred depreciation expenses of $7,756 and ~~2014~~selling, general and administrative expenses of $19,234. We incurred interest expenses of $8,504. As a result, we incurred a net loss of $35,494 for the three months ended March 31, 2015.

~~During~~The ~~the~~decrease ~~nine~~in ~~months~~net ~~ended~~loss ~~September~~of 30$23,806 ~~2015,~~is wedue ~~did~~primarily ~~not~~to ~~earn~~the ~~any~~Company ~~revenues. We~~not ~~incurred~~incurring ~~depreciation~~any ~~expense of $25,651 and~~ selling, general and administrative expenses ofduring ~~$69,146. We~~the ~~incurred~~three ~~interest~~months ~~expense~~ended ofMarch ~~$15~~31,~~977~~ ~~and~~2016. This ~~related~~is ~~party~~the ~~interest~~result ~~expense~~ of ~~$9,810. As~~decreased aoperations ~~result,~~while we ~~incurred~~shift aour ~~net~~business ~~loss~~focus offrom ~~$120,584~~gold ~~for~~vending ~~the~~machines ~~nine~~to ~~months~~exploring ~~ended~~new ~~September 30, 2015~~markets.

By comparison, during the nine months ended September 30, 2014, we recognized revenues of $6,234. We incurred depreciation expense of $23,447 and selling, general and administrative expenses of $188,968. We incurred interest expense of $14,750 and related party interest expense of $10,789. As a result, we incurred a net loss of $231,720 for the nine months ended September 30, 2014.

The decrease in net loss of $111,136, or 48%, for the nine months ended September 30, 2015 is due primarily to the $119,822, or 63.4%, decrease in selling, general and administrative expenses due to decreased operations as we work to shifted our business focus from gold vending machines to exploring new markets for our vending machines.

Liquidity and Capital Resources

The accompanying condensed unaudited consolidated financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As reflected in the accompanying condensed unaudited consolidated financial statements, the Company had a net loss of $~~120~~11,~~584~~688 and $~~231~~35,~~720~~494 for the ~~nine~~three months ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015, respectively. The Company has a working capital deficit of $~~611~~284,~~683~~695 and $~~537~~280,~~250~~763, and a stockholders' deficit of $~~540~~229,~~896~~421 and $~~436~~217,~~312~~733 as of ~~September~~March 3031, ~~2015~~2016 and December 31, ~~2014~~2015, respectively.

Based on the above considerations, there is a substantial doubt about the ability of the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to further implement its business plan and generate future profits or attain working capital through debt or equity financing. Management hopes that the continued placement of precious metals machines in the U.S.A. and the potential of a global rollout of additional dispensing terminals will bring sufficient revenues and investment into the Company to sustain its growth and operations. Furthermore, management believes organic growth through a new strategy in the Company’s subsidiaries will assist the Company in achievement of its goals. There is no assurance that this series of events will be satisfactorily completed. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

~~Cash Flows for the nine months ended September 30, 2015 and 2014~~15

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rollout of additional dispensing terminals will bring sufficient revenues and investment into the Company to sustain its growth and operations. Furthermore, management believes organic growth through a new strategy in the Company’s subsidiaries will assist the Company in achievement of its goals. There is no assurance that this series of events will be satisfactorily completed. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Cash Flows for the three months ended March 31, 2016 and 2015

Operating Activities

During the ~~nine~~three months ended ~~September~~March 3031, ~~2015~~2016, we incurred a net loss of $~~120~~11,~~584~~688. We had an adjustment of $257,~~651~~756 due to depreciation ~~and an adjustment of $16,000 due to the issuance of common stock for services~~. We had the following changes in assets and liabilities: ~~an increase of $4,500 for~~ a ~~security deposit, a~~ decrease of $51,~~500~~841 of accounts payable, ~~an increase of $15,977 due to accrued interest,~~ and an increase of $95,~~810~~773 due to accrued interest ~~for related parties~~. As a result, we had net cash used in operating activities of $~~54,146~~0 for the ~~nine~~three months ended ~~September~~March 3031, ~~2015~~2016.

During the ~~nine~~three months ended ~~September~~March 3031, ~~2014~~2015, we incurred a net loss of $~~231~~35,~~720~~494. We had an adjustment of $237,~~447~~756 due to depreciation ~~and an adjustment of $113,675 due to an issuance of common stock for services~~. We had the following changes in assets and liabilities: a decrease of $37,~~394~~500 due to ~~inventory, an increase of $1,000 due to prepaid expenses and other current assets, an increase of $938 due to security deposits, a decrease of $2,725 due to~~ accounts payable, anand ~~increase of $14,750 due to accrued interest,~~ an increase of $108,~~789~~504 due to ~~related party~~ accrued interest~~, and a decrease of $10,612 due to accrued expenses~~. As a result, we had net cash used in operating activities of $8326,~~852~~734 for the ~~nine~~three months ended ~~September~~March 3031, ~~2014~~2015.

Investing Activities

For the ~~nine~~three months ended ~~September~~March 3031, 2016 and 2015, we did not pursue any investing activities.

For the nine months ended September 30, 2014, we spent $2,914 on the purchase of fixed assets, resulting in net cash used in investing activities of $2,914 for the period.

Financing Activities

For the ~~nine~~three months ended ~~September~~March 3031, ~~2015~~2016, we ~~received~~did ~~$54,133~~not aspursue ~~proceeds~~any ~~from related party notes payable. As a result, we had net cash provided by~~ financing activities ~~of $54,133 for the period~~.

For the ~~nine~~three months ended ~~September~~March 3031, ~~2014~~2015, we received $8033,~~872~~600 as proceeds from related party notes payable~~. As a result~~, weresulting ~~had~~in net cash provided by financing activities of $8033,~~872~~600 for the period.

Our internal and external sources of liquidity have included proceeds raised from subscription agreements and private placements and advances from related parties. We are currently not aware of any trends that are reasonably likely to have a material impact on our liquidity. We are ~~attempting~~currently toexploring ~~increase~~new ~~the~~relationships ~~sales to raise much needed cash~~ for the ~~fulfillment~~Company ~~of the registrant’s business plan. It is our intent to secure a market share~~ in ~~the~~order ~~retail gold and related financial services market, and in the medical and recreational marijuana market, which we feel will require additional capital over the long term~~ to ~~undertake~~pursue ~~sales~~new ~~and~~courses ~~marketing~~of initiatives, further our research and development, and to manage timing differences in cash flows from the time our PMX Gold Dispensing Terminals are developed and put into use and positive cash flow product is generatedbusiness.

Our capital strategy is to increase our near and mid term cash balance through financing transactions, including the issuance of debt and/or equity securities. Once our PMX Gold ATM terminal prototypes have been developed and put into the field we intend to work to develop a pro-forma financial model based on their results and pursue traditional Wall Street financing.

Going Concern

To date, the registrant has incurred significant losses. The registrant’s viability is dependent upon its ability to obtain future financing and the success of its future operations. These factors raise substantial doubt as to the registrant’s ability to continue as a going concern.

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Off-Balance Sheet Arrangements

The registrant had no material off-balance sheet arrangements as of ~~September~~March 3031, ~~2015~~2016.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of its financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles.

The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to the reported amounts of revenues and expenses and the valuation of our assets and contingencies. We believe our estimates and assumptions to be reasonable under the circumstances. However, actual results could differ from those estimates under different assumptions or conditions. Our financial statements are based on the assumption that we will continue as a going concern. If we are unable to continue as a going concern we would experience additional losses from the write-down of assets.

The registrant uses the fair value recognition provision of ASC 718, “Compensation-Stock Compensation,” which requires the registrant to expense the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of such instruments. The registrant uses the Black-Scholes option pricing model to calculate the fair value of any equity instruments on the grant date.

The registrant also uses the provisions of ASC 505-50, “Equity Based Payments to Non-Employees,” to account for stock-based compensation awards issued to non-employees for services. Such awards for services are recorded at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASC 505-50.

New Accounting Pronouncements

The registrant has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the registrant.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable to smaller reporting companies.

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Item 4. Controls and Procedures

During the period ended ~~September~~March 3031, ~~2015~~2016, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our chief executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our chief executive officer and principal financial officers have concluded such controls and procedures to be ~~effective~~ineffective as of ~~September~~March 3031, ~~2015~~2016 to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms and to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

2018

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Part II. Other Information

Item 1. Legal Proceeding

The registrant is not a party to, and its property is not the subject of, any material pending legal proceedings.

Item 1A. Risk Factors

Not applicable to smaller reporting companies.

Item 2. Unregistered Sales Of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None

Item 6. Exhibits

The following documents are filed as a part of this report:

Exhibit 31* - Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32* - Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS** XBRL Instance Document

101.SCH** XBRL Taxonomy Extension Schema Document

101.CAL** XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF** XBRL Taxonomy Extension Definition Linkbase Document

101.LAB** XBRL Taxonomy Extension Label Linkbase Document

101.PRE** XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

**XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PMX COMMUNITIES, INC.

/s/ Lindsey Perry

Lindsey Perry

Chief Executive Officer

Chief Financial Officer

Dated: ~~November~~May 20, ~~2015~~2016

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Filing Compare · PMX Communities, Inc.