1. 1. 2. | They can elect to callCall the listing agent directly by calling the number, if any, displayed on the larger FOR SALE sign or | and/or; 2. | They may elect to callCall the 1-800 number displayed on our smaller IVR SIGN.sign. |
If they elect to call the third party listing agent directly, Home Treasure Finders will not acquire the lead. Presently we operate our website, WWW.HMTFrealty.com under a short term contract with a third party service. This arrangement provides us a functional generic IVR service for a monthly fee. Ultimately, we plan to integrate our IVR system into our website. This will aid us in tracking the incoming leads and potentially save us annually, thousands of dollars in monthly fees. In either case, our IVR system seamlessly transfers the lead to Mr. Wiegand or a designated REALTORLicensed Real Estate Agents buyer agent As of the date of this report we are negotiating a supplier agreement to purchase additional signs. We believe additional signs can be purchased from a variety of sources without difficulty. Our new sign inventory will be stored indoors at our business address, and as of the date of this report, we are planning to deploy our new signs on specific properties, as appropriate.
Our future supply
Recruitment and Retention of listing agents and buyer’sbuyer's agents
A key element of the Home Treasure Finders business plan is to recruit and train both listing agents and buyer’sbuyer's agents. By marketing to new agents in online job forums, and placing small classified ads on sites like Craiglist.com, we have recruited and hired agents who would like to have access to more prospects. Presently we offer a desk fee of $100 per month and we charge the broker $300 for each completed transaction.
As of December 31, From conversations with other real estate professionals, we believe that established lead marketing companies sell their lead generation services to2017, there were seven agents for a monthly fee. We further believe that our competition is not licensed,generating commissions which were Corey Wiegand and thus cannot be paid a real estate commission. We believe our competition does not provide training to convert leads to sales.six others. Presently, as of the date of this report there are Home Treasure Finders intends to provide leadssix agents generating commissions comprised of Mr. Wiegand and training at no cost to those buyer agents who sign our agreement to split gross commission.five others.
We have used the services of a part time consultant to locate and screen prospective agents. The consultant is compensated at the rate of $500 for each licensed REALTORReal Estate Agents we hire. To date, this approach has been only modestly successful. We have a 2014 goal of hiring one REALTOR for each Denver Zip code. To achieve our goal we may retain a qualified “head hunter” who will be compensated at market rate. PLAN OF OPERATIONS AND PROJECTIONS During 2017 and 20142016 our cash flow has been generally sufficient to sustain operations when supplemented by occasional loans from management and the immediate family of management. operations.
We plan to use the funds we now have, supplemented by loans from management or outside investors. We have no present arrangement for financing and we cannot predict if or when funds will become available to us. When we need cash we may find that our management is unable to loan us adequate additional money. Management has made no commitment for additional finance to our business, conditional upon sales performance or otherwise. In the future, management is under no obligation to provide cash to our business. Even if management elects to provide cash, there could be significant dilution to other investors and the cash provided may still prove insufficient to prevent insolvency and failure of our business. We believe that outside funding may depend on first showing better sales performance. Our sales performance may grow only slowly until we establish adequate listing agent relationship and recruit and train enough listing and buyer agents. Consequently, we may fail for lack of cash and any investment into our company may prove a total loss.
Our Potential for Growth. We have fully commenced real estate sales and property management operations and generated significant revenues. We are no longer considered a Development Stage Company.
During 20142017 we generated $122,549$152,548 in commission revenue and $66,841$259,848 in management fees and rental income at our Denver warehouse. Our plan is to continue to expand commission revenue and thereby generate increased cash from our operating activities.
During 2016 we generated $216,400 in commission revenue and $235,659 in management fees and rental income at our Denver warehouse. Our plan is to continue to expand commission revenue and thereby generate increased cash from our operating activities.
Our operating expenses include significant legal, consulting, accounting and contributed services, all accounted for as expenses.services. As a consequence, our net losses for the years December 31, 20142017 and 20132016 total $139,88436,486 and $4,790,19,007, respectively.
Our new subsidiary, HMTF Cannabis Holdings, Inc., formed, on March 3, 2014, has commencedoperations and purchased a warehouse. Our warehouse generated $15,900 in revenue from tenant rents collected during November and December of 2014 We anticipate rental revenue during 2015 will total $144,000.
Financial Projection for 2018 for Garfield Street Warehouse under presently performing leases: Rent | | $ | 144,000 | | Note 1 | | $ | 144,000 | | | Note 1 | | Less Interest | | | (58,243 | ) | Note 2 | | | (64,582 | ) | | Note 2 | | Less Insurance | | | (1,893 | ) | Note 3 | | | (2,032 | ) | | Note 3 | | Less Taxes | | | (7,612 | ) | Note 4 | | | (8,524 | ) | | Note 4 | | Less Depreciation | | | (21,153 | ) | Note 5 | | | (20,874 | ) | | Note 5 | | Income | | $ | 46,451 | | Note 6 | | $ | 48,028 | | | Note 6 | |
NotesNotes:
| 1. | Lease at 4420 and 4430 is $8,000/$12,000/ month. Lease at 4440 is $4,000 per month, payable by 15th. CurrentWe anticipate rental revenue during 2017 will total $144,000. |
| 2. | Interest for 20152016 computed from loan amortization table. Assumes $836,870$811,654 starting principle balance. |
| 3. | Insurance. Policy purchased on 1/3/2015.2016. Annual premium of $1,893$2,032 paid in full. |
| 4. | Property Tax is $7,612 based upon 2013 mil levy.$8,650. |
| 5. | Depreciation is based upon 39 year straight line applied to combined value of building $803,100 plus architect and engineer documents valued at $11,000. |
We continue to evaluate the acquisition of additional cannabis zoned properties.
Results of Operations See the Financial Statements for comparison data to prior periods.
We have financed our operations since inception primarily through loans from our founder, cash raised in our completed IPO, and Private Placements. Additionally, we have benefited from cash and services the property management company known as CW Properties contributed by Corey Wiegand, our founder, officer and director.
As of December 31, 2014,2017, we had $36,848$49,437 in cash, and a working capital deficit of $53,319.$97,7115.
The following table sets forth our statements of operations data for the year ended December 31, 20142017 and 2013. 2016.
Summary Statement of Operations | | Year Ended December 31, 2017 | | | Year Ended December 31, 2016 | | | | | | | | | Revenues, net | | $ | 412,3115 | | | $ | 452,059 | | Gross profit | | | 412,3115 | | | | 452,059 | | Selling, general and administrative expenses | | | 323,325 | | | | 305,328 | | Commission expense | | | 46,842 | | | | 57,088 | | Professional fees | | | 27,533 | | | | 49,475 | | Total operating expenses | | | 397,700 | | | | 411,891 | | Profit from operations | | | 14,6115 | | | | 40,168 | | Other Income (expense) | | | (51,182 | ) | | | (59,175 | ) | Loss from operations before income taxes | | | (36,486 | ) | | | (19,007 | ) | Net loss | | $ | (36,486 | ) | | $ | (19,007 | ) |
| | Year Ended December 31, 2014 | | | Year Ended December 31, 2013 | | | | | | | | | Revenues, net | | $ | 189,390 | | | $ | 180,493 | | Gross profit (loss) | | | 189,390 | | | | 180,493 | | Selling, general and administrative expenses | | | 244,510 | | | | 135,455 | | Commission expense | | | 47,351 | | | | 31,067 | | Professional fees | | | 29,485 | | | | 18,452 | | Total operating expenses | | | 321,346 | | | | 184,974 | | Loss from operations | | | (131,956 | ) | | | (4,481 | ) | Other Income (expense) | | | (7,526 | ) | | | (309 | ) | Loss from operations before income taxes | | | (139,482 | ) | | | (4,790 | ) | Income tax provision | | | - | | | | - | | Net loss | | $ | (139,482 | ) | | $ | (4,790 | ) |
Revenues For the year ended December 31, 20142017 we have generated $189,390$412,3115 in revenues. Revenue consisted of $122,549$152,548 in commission income and $66,841$259,848 in management fees and rent.
Total Operating Expenses
Our net loss increased by $134,692$17,479 or 2,812%92% to $139,482$36,486 from $4,790$19,007 for the year ended December 31, 20142017 compared with the prior year ended December 31, 2013.2016. This was primarily attributed the net effect of the following factors:
1. | Commission income decrease by $63,852 or 30% to $152,548 from $216,400 for the year ended December 31, 2017 compared with the prior year ended December 31, 2016. This was attributable to a decrease in homes for sale in the Denver market. Commission expense also decreased over prior year which is in line with a decrease in Commission income. |
2. | General and administrative expenses increased by $109,156,$17,797, or 81%6%, to $244,510$323,325 for the year ended December 31, 20142017 from $135,455$305,528 for the prior year ended December 31, 2013.2016. This is attributablewas due to the increaseincreases in salary expense, consultingoffice expense and a decrease in property management expenses contracted servicesall connected to increase in property management activity and realtor expenses as well as other basic general and administrative expenses.revenue. | | | 2.3. | Professional fees increaseddecreased by $11,033$21,942 or 60%44% to 29,485$27,533 for the year ended December 31, 20142017 from $18,452$49,475 for the prior year ended December 31, 2013.2016. This is attributable to increased transaction frequencya decrease in our property management and sales divisions and the consequent increase in book keeping and related audit services. | | | 3. | Revenue increased by $8,897 for the year ended December 31, 2014 from $180,493 for the year ended December 31, 2013. legal fees. |
Cash Flow, Liquidity and Capital Resources
Our Initial Public OfferingFor the year ended December 31, 2017, our cash flow provided by operating activities was $8,218, as compared to cash flow provided by operating activities of our common stock$34,858 for the prior year ended December 31, 2016. The decrease in net cash provided by operating activities of $26,640 was declared effective byprimarily due to a decrease in payables and increase in net loss in the Securities and Exchange Commission on January 26, 2012. As of the date of this report, proceeds of our IPO representing the Minimum Offering of $30,000 have been released from the escrow account and utilized to support our business plan.current year.
During 2014 we raiseCash flow used in investing activities was $0 and $940 for the year ended December 31, 2017 and 2016. The decrease of $940 in investing activities was primarily due to no fixed assets purchased in the current year.
Cash flow used in financing activities was $18,983 for the year ended December 31, 2017, as compared to cash used in two private placementsfinancing activities of our common stock totaling $149,600. We applied this$18,926 during the year ended December 31, 2016. The increase in cash to expenses incurred to leaseflow used in financing activities was minor and remodel our Tennyson Street office and acquire our Garfield Street Warehouse and for working capital.cash flow used in financing activities was consistent with prior year.
At December 31, 2014,2017, we had $36,848$49,437 in cash, representing primarily commissions earned during the fourth quarter.cash. The cash held in our checking account is usable by the Company. The cash held in our savings account, representing segregated tenant deposits, is not usable.
At year end our working capital deficit was $66,322. $97,7115.
ITEM 8. FINANCIAL STATEMENTS.
The financial statements and supplementary data required by this item are submitted on page 23of21 of this report.
Index to Financial Statements
Report of Independent Registered Public Accounting Firm | 24F-2 | | | Consolidated Balance Sheets | 25F-3 | | | Consolidated Statements of Operations. | 26F-4 | | | Consolidated Statements of Changes in Shareholders’Shareholders' Equity (Deficit) | 27F-5 | | | Consolidated Statements of Cash Flows | 28F-6 | | | Notes to the Consolidated Financial Statements.Statements | 29F-7 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders
Home Treasure Finders, Inc. and Subsidiaries Broomfield,Denver, Colorado
We have audited the accompanying consolidated balance sheets of Home Treasure Finders, Inc. and Subsidiaries as of December 31, need new report
2014 and 2013, and the related consolidated statements of operations, stockholders' equity (deficit), and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Home Treasure Finders, Inc. and Subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 4 to the consolidated financial statements, the Company has incurred losses since inception and has liabilities in excess of assets, raising substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 4. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ HJHaynie & Associates, LLC
HJ & Associates, LLC
Company Salt Lake City, Utah March 30, 201531, 2018
HOME TREASURERTREASURE FINDERS, INC. AND SUBSIDIARIES Consolidated Balance Sheets | | | | | | | | | December 31, | | | December 31, | | | | 2017 | | | 2016 | | | | | | | | | Assets | | | | | | | | | | | | Current Assets: | | | | | | | Cash | | $ | 49,437 | | | $ | 60,202 | | Rent receivable | | | 4,176 | | | | 500 | | Prepaid expenses | | | - | | | | 1,737 | | Total current assets | | | 53,613 | | | | 62,439 | | | | | | | | | | | Property and equipment, net | | | 797,557 | | | | 820,203 | | | | | | | | | | | Other assets: | | | | | | | | | Security deposits | | | 1,400 | | | | 1,400 | | | | | | | | | | | Total assets | | $ | 852,570 | | | $ | 884,042 | | | | | | | | | | | Liabilities and Shareholders' Equity (Deficit) | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | Accounts payable | | $ | 21,017 | | | $ | 18,336 | | Accrued wages | | | 43,612 | | | | 28,612 | | Accrued liabilities | | | 61,788 | | | | 56,672 | | Accrued interest - related party | | | 4,505 | | | | 3,305 | | Note payable, current portion | | | 11,090 | | | | 10,790 | | Related party note payable | | | 9,397 | | | | 17,590 | | Total current liabilities | | | 151,409 | | | | 135,305 | | | | | | | | | | | Long term debt | | | 789,774 | | | | 800,864 | | Total liabilities | | | 941,183 | | | | 936,169 | | | | | | | | | | | Commitments and contingencies | | | - | | | | - | | | | | | | | | | | Shareholders' equity (deficit): | | | | | | | | | Common stock, no par value; 100,000,000 shares authorized, | | | | | | | | | 13,205,450 and 13,205,450 shares issued and outstanding, respectively | | | 215,267 | | | | 215,267 | | Additional paid in capital | | | 115,476 | | | | 115,476 | | Accumulated deficit | | | (400,356 | ) | | | (363,870 | ) | Total shareholders' equity (deficit) | | | (88,613 | ) | | | (52,127 | ) | | | | | | | | | | Total liabilities and shareholders' equity (deficit) | | $ | 852,570 | | | $ | 884,042 | |
| | | | | | | | | December 31, | | | December 31, | | | | 2014 | | | 2013 | | | | | | | | | Assets | | | | | | | | | | | | Current Assets: | | | | | | | Cash | | $ | 36,848 | | | $ | 14,205 | | Prepaid expenses | | | 753 | | | | - | | Total current assets | | | 37,601 | | | | 14,205 | | | | | | | | | | | Property and equipment, net | | | 867,547 | | | | — | | | | | | | | | | | Other assets: | | | | | | | | | Security deposits | | | 1,050 | | | | — | | | | | | | | | | | Total assets | | $ | 906,198 | | | $ | 14,205 | | | | | | | | | | | Liabilities and Shareholders' Equity (Deficit) | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | Accounts payable | | $ | 9,462 | | | $ | 6,311 | | Accrued wages | | | 18,612 | | | | 14,612 | | Accrued liabilities | | | 52,128 | | | | 28,220 | | Accrued interest | | | 2,025 | | | | 1,246 | | Note payable, current portion | | | 13,003 | | | | — | | Related party note payable | | | 8,693 | | | | 4,943 | | Total current liabilities | | | 103,923 | | | | 55,332 | | | | | | | | | | | Long term debt | | | 824,919 | | | | — | | Total liabilities | | | 928,842 | | | | 55,332 | | | | | | | | | | | Shareholders' equity (deficit): | | | | | | | | | Common stock, no par value; 100,000,000 shares authorized, | | | | | | | | | 13,205,450 and 11,725,800 shares issued and outstanding, respectively | | | 215,267 | | | | 57,302 | | Additional paid in capital | | | 96,476 | | | | 96,476 | | Accumulated deficit | | | (334,387 | ) | | | (194,905 | ) | Total shareholder's equity (deficit) | | | (22,644 | ) | | | (41,127 | ) | | | | | | | | | | Total liabilities and shareholders' equity (deficit) | | $ | 906,198 | | | $ | 14,205 | |
See accompanying notes to consolidated financial statements
HOME TREASURERTREASURE FINDERS, INC. AND SUBSIDIARIES Consolidated Statements of Operations | | | | | | | | | | | | | | | | For the Year Ended | | | | December 31, | | | | 2017 | | | 2016 | | | | | | | | | Commission income | | $ | 152,548 | | | $ | 216,400 | | Property and rental management income | | | 259,848 | | | | 235,659 | | Total revenue | | | 412,396 | | | | 452,059 | | | | | | | | | | | Operating expenses: | | | | | | | | | Commission expense | | | 46,842 | | | | 57,088 | | Professional fees | | | 27,533 | | | | 49,475 | | General and administrative | | | 323,325 | | | | 305,328 | | Total operating expenses | | | 397,700 | | | | 411,891 | | | | | | | | | | | Operating profit | | | 14,696 | | | | 40,168 | | | | | | | | | | | Other Income (expense) | | | | | | | | | Gain on legal settlement | | | 14,560 | | | | - | | Interest expense | | | (65,742 | ) | | | (59,175 | ) | | | | | | | | | | Total other (expense) | | | (51,182 | ) | | | (59,175 | ) | | | | | | | | | | Loss before income taxes | | | (36,486 | ) | | | (19,007 | ) | | | | | | | | | | Income tax expense | | | - | | | | - | | | | | | | | | | | Net loss | | $ | (36,486 | ) | | $ | (19,007 | ) | | | | | | | | | | Basic and diluted loss per share | | $ | (0.00 | ) | | $ | (0.00 | ) | | | | | | | | | | Basic and diluted weighted average | | | | | | | | | common shares outstanding | | | 13,205,450 | | | | 13,205,450 | |
| | | | | | | | | | | | | | | | | | | | | | | For the Year Ended | | | | December 31, | | | | 2014 | | | 2013 | | | | | | | | | Commission income | | $ | 122,549 | | | $ | 139,282 | | Property and rental management income | | | 66,841 | | | | 41,211 | | Revenue | | | 189,390 | | | | 180,493 | | | | | | | | | | | Operating expenses: | | | | | | | | | Commission expense | | | 47,351 | | | | 31,067 | | Professional fees | | | 29,485 | | | | 18,452 | | General and administrative | | | 244,510 | | | | 135,455 | | Total operating expenses | | | 321,346 | | | | 184,974 | | | | | | | | | | | | | | | | | | | | Operating loss | | | (131,956 | ) | | | (4,481 | ) | | | | | | | | | | Other Income (expense) | | | | | | | | | Other income | | | 3,047 | | | | - | | Interest expense | | | (10,573 | ) | | | (309 | ) | | | | | | | | | | Total other income | | | (7,526 | ) | | | (309 | ) | | | | | | | | | | Loss before income taxes | | | (139,482 | ) | | | (4,790 | ) | | | | | | | | | | Income tax expense | | | - | | | | - | | | | | | | | | | | Net loss | | $ | (139,482 | ) | | $ | (4,790 | ) | | | | | | | | | | | | | | | | | | | Basic and diluted loss per share | | $ | (0.01 | ) | | $ | (0.00 | ) | | | | | | | | | | Basic and diluted weighted average | | | | | | | | | common shares outstanding | | | 12,735,947 | | | | 11,725,800 | |
See accompanying notes to consolidated financial statements
HOME TREASURERTREASURE FINDERS, INC. AND SUBSIDIARIES Consolidated Statements of Changes in Shareholders' Equity (Deficit) | | | | | | | | Additional | | | | | | Total | | | | Common Stock | | | Paid In | | | Accumulated | | | Equity | | | | Shares | | | Amount | | | Capital | | | Deficit | | | (Deficit) | | | | | | | | | | | | | | | | | | Balance at January 1, 2016 | | | 13,205,450 | | | $ | 215,267 | | | $ | 115,476 | | | $ | (344,863 | ) | | $ | (33,120 | ) | | | | | | | | | | | | | | | | | | | | | | Net loss for the year ended December 31, 2016 | | | — | | | | — | | | | — | | | | (19,007 | ) | | | (19,007 | ) | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2016 | | | 13,205,450 | | | $ | 215,267 | | | $ | 115,476 | | | $ | (363,870 | ) | | $ | (52,127 | ) | | | | | | | | | | | | | | | | | | | | | | Net loss for the year ended December 31, 2017 | | | — | | | | — | | | | — | | | | (36,486 | ) | | | (36,486 | ) | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2017 | | | 13,205,450 | | | $ | 215,267 | | | $ | 115,476 | | | $ | (400,356 | ) | | $ | (88,613 | ) |
| | | | | | | | Additional | | | | | | | | | | Common Stock | | | | | | Paid In | | | Accumulated | | | Total | | | | Shares | | | Amount | | | Capital | | | Deficit | | | Equity (Deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at January 1, 2013 | | | 11,725,800 | | | $ | 57,302 | | | $ | 96,476 | | | $ | (190,115 | ) | | $ | (36,337 | ) | | | | | | | | | | | | | | | | | | | | | | Net loss for the year ended December 31, 2013 | | | — | | | | — | | | | — | | | | (4,790 | ) | | | (4,790 | ) | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2013 | | | 11,725,800 | | | | 57,302 | | | | 96,476 | | | | (194,905 | ) | | | (41,127 | ) | | | | | | | | | | | | | | | | | | | | | | Common stock issued on March 31, 2014 for cash | | | | | | | | | | | | | | | | | | | | | At $0.10 per share | | | 1,196,000 | | | | 119,600 | | | | — | | | | — | | | | 119,600 | | | | | | | | | | | | | | | | | | | | | | | Common stock issued for services valued | | | | | | | | | | | | | | | | | | | | | At $0.10 per share | | | 83,650 | | | | 8,365 | | | | — | | | | — | | | | 8,365 | | | | | | | | | | | | | | | | | | | | | | | Common stock issued on October 8, 2014 for cash | | | | | | | | | | | | | | | | | | | | | At $0.15 per share | | | 200,000 | | | | 30,000 | | | | — | | | | — | | | | 30,000 | | | | | | | | | | | | | | | | | | | | | | | Net loss for the year ended December 31, 2014 | | | — | | | | — | | | | — | | | | (139,482 | ) | | | (139,482 | ) | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2014 | | | 13,205,450 | | | $ | 215,267 | | | $ | 96,476 | | | $ | (334,387 | ) | | $ | (22,643 | ) |
See accompanying notes to consolidated financial statements
HOME TREASURER FINDERS, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows | | For the Year Ended | | | | December 31, | | | | 2017 | | | 2016 | | Cash flows (to) from operating activities: | | | | | | | Net loss | | $ | (36,486 | ) | | $ | (19,007 | ) | Adjustments to reconcile net loss to net cash provided | | | | | | | | | (used) by operating activities: | | | | | | | | | Depreciation and amortization | | | 22,646 | | | | 23,843 | | | | | | | | | | | Changes in operating assets and liabilities: | | | | | | | | | (Increase) in rent receivable | | | (3,676 | ) | | | - | | (Increase) decrease in prepaid expense | | | 1,737 | | | | (1,381 | ) | Increase (decrease) in accounts payable | | | 2,681 | | | | 18,336 | | Increase (decrease) in accrued salary | | | 15,000 | | | | 10,000 | | Increase (decrease) in accrued liabilities | | | 5,116 | | | | (2,543 | ) | Increase (decrease) in accrued interest | | | 1,200 | | | | 524 | | Net cash provided by operating activities | | | 8,218 | | | | 34,858 | | | | | | | | | | | Cash flows used in investing activities: | | | | | | | | | Cash paid for fixed assets | | | - | | | | (940 | ) | Net cash used in investing activities: | | | - | | | | (940 | ) | | | | | | | | | | Cash flows used in financing activities: | | | | | | | | | | | | | | | | | | Payment of long term debt | | | (10,790 | ) | | | (13,265 | ) | Proceeds from related party payable | | | 7,027 | | | | 5,032 | | Payment of related party payable | | | (15,220 | ) | | | (10,693 | ) | | | | | | | | | | Net cash used in financing activities | | | (18,983 | ) | | | (18,926 | ) | | | | | | | | | | Net change in cash | | | (10,765 | ) | | | 14,992 | | | | | | | | | | | Cash, beginning of year | | | 60,202 | | | | 45,210 | | | | | | | | | | | Cash, end of year | | $ | 49,437 | | | $ | 60,202 | | | | | | | | | | | Supplemental disclosure of cash flow information: | | | | | | | | | Cash paid during the period for: | | | | | | | | | Income taxes | | $ | — | | | $ | — | | Interest | | $ | 64,316 | | | $ | 58,651 | |
| | For the Year Ended | | | | December 31, | | | | 2014 | | | 2013 | | Cash flows from operating activities: | | | | | | | Net loss | | $ | (139,482 | ) | | $ | (4,790 | ) | Adjustments to reconcile net loss to net cash provided | | | | | | | | | (used) by operating activities: | | | | | | | | | Depreciation and amortization | | | 8,378 | | | | — | | Common stock issued for services | | | 8,365 | | | | — | | Changes in operating assets and liabilities: | | | | | | | | | (Increase) decrease in prepaid expense and other asset | | | (1,803 | ) | | | 280 | | Increase (decrease) in accounts payable | | | 3,151 | | | | (9,648 | ) | Increase (decrease) in accrued salary | | | 4,000 | | | | (7,888 | ) | Increase (decrease) in accrued liabilities | | | 23,908 | | | | 26,534 | | Increase (decrease) in accrued interest | | | 779 | | | | 309 | | Net cash provided by (used in) | | | | | | | | | operating activities | | | (92,704 | ) | | | 4,797 | | | | | | | | | | | Cash flows from investing activities: | | | | | | | | | Investment in fixed assets | | | (875,925 | ) | | | — | | Cash flows used in investing activities: | | | (875,925 | ) | | | — | | | | | | | | | | | Cash flows from financing activities: | | | | | | | | | Proceeds from common stock sales | | | 149,600 | | | | — | | Proceeds from long term debt | | | 840,000 | | | | — | | Payment of long term debt | | | (2,078 | ) | | | — | | Proceeds from related party payable | | | 11,250 | | | | 5,000 | | Payment of related party payable | | | (7,500 | ) | | | (5,000 | ) | Net cash provided by | | | | | | | | | financing activities | | | 991,272 | | | | — | | | | | | | | | | | Net change in cash | | | 22,643 | | | | 4,797 | | | | | | | | | | | Cash, beginning of year | | | 14,205 | | | | 9,408 | | | | | | | | | | | Cash, end of year | | $ | 36,848 | | | $ | 14,205 | | | | | | | | | | | Supplemental disclosure of cash flow information: | | | | | | | | | Cash paid during the period for: | | | | | | | | | Income taxes | | $ | — | | | $ | — | | Interest | | $ | 9,794 | | | $ | — | | | | | | | | | | | Non Cash Investing and Financing Activities | | | | | | | | | Fixed asset purchases through long term debt | | $ | 840,000 | | | $ | - | | | | | | | | | | |
See accompanying notes to consolidated financial statements
HOME TREASURERTREASURE FINDERS, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements
December 31, 20142017 and 20132016
NOTE 1 -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Organization
Home TreasurerTreasure Finders, Inc. (the "Company") was initially incorporated on July 28, 2008 in the State of Colorado. The Company has two subsidiaries, Ambermax III, Inc. and HTMF Cannabis Holdings, Inc. On January 28, 2008 Ambermax III, Inc. became our wholly subsidiary through a merger consummated as a share exchange. The purpose of the merger was to obtain $12,676 in cash held by Ambermax III, Inc. The Company is in the business of operating a real estate business and operates in Colorado as a State Licensed "Employing Broker" number 1000021235 issued on February 13, 2012.
Effective April 1, 2013, all property management activities, revenues and expenses in connection with CW Properties, a property management company owned by the CEO, were transferred to a wholly owned subsidiary of Home Treasure Finders, Inc. All net revenue earned by CW Properties has been booked as consolidated revenue of Home Treasure Finders, Inc.
On March 3, 2014 the Company formed a wholly subsidiary, HMTF Cannabis Holdings, Inc. The purpose of the subsidiary is to purchase Colorado properties that qualify for legal cultivation of cannabis. The properties will then be improved and leased to licensed third party growers. The Company generates income from its real estate holdings. On September 15, 2014 the Company acquired a vacant warehouse property in Denver zoned for cannabis cultivation. On November 5 and December 1, 2014 the Company leased the warehouse to unrelated licensed growers.grower. The Company's tenants havetenant invested cash to improve their respective leaseholds per lease terms utilizing architectural and engineering documents we procured and provided. b. Accounting Method
The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a December 31 year-end.
c. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
d. Income Taxes
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. HOME TREASURERTREASURE FINDERS, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements
December 31, 20142017 and 20132016 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Income Taxes (Continued)
Net deferred tax assets consist of the following components as of December 31, 20142017 and 2013:2016:
| | 2014 | | | 2013 | | | 2017 | | | 2016 | | Deferred tax assets: | | | | | | | | | | | | | NOL carryover | | $ | 62,600 | | | $ | 10,800 | | | $ | 86,600 | | | $ | 76,600 | | Accrued expense | | | 10,100 | | | | 7,600 | | | Related party accruals | | | | 1,900 | | | | 3,500 | | Accrued payroll | | | | 9,800 | | | | 7,100 | | Deferred tax liabilities: | | | | | | | | | | | | | | | | | Depreciation | | | (1,500 | ) | | | - | | | | 6,000 | | | | 5,000 | | | | | | | | | | | | | | | | | | | Valuation allowance | | | (71,200 | ) | | | (18,400 | ) | | | (104,300 | ) | | | (92,200 | ) | Net deferred tax asset | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
The income tax provision differs from the amount of income tax determined by applying the U.S. income tax rate to pretax income from continuing operations for the year ended December 31, 20142017 and 20132016 due to the following:
| | 2014 | | | 2013 | | | | | | | | | Book income | | $ | (27,400 | ) | | $ | (900 | ) | Penalties | | | - | | | | 400 | | Accrued expenses | | | 2,400 | | | | 2,700 | | Stock for services | | | 1,600 | | | | - | | Valuation allowance | | | (23,400 | ) | | | (2,200 | ) | | | $ | - | | | | - | |
| | 2017 | | | 2016 | | | | | | | | | Book income | | $ | (7,200 | ) | | $ | (3,700 | ) | Depreciation | | | (1,600 | ) | | | (1,400 | ) | Related party accruals | | | (1,600 | ) | | | 2,900 | | Meals and entertainment | | | 600 | | | | 400 | | Accrued payroll | | | 2,700 | | | | (5,600 | ) | | | | | | | | | | Valuation allowance | | | 7,100 | | | | 7,400 | | | | $ | - | | | | - | |
At December 31, 2014,2017, the Company had net operating loss carryforwards of approximately $313,000$433,000 that may be offset against future taxable income as long as the "continuity of ownership" test is met. No tax benefit has been reported in the December 31, 20142017 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years.
The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company has identified its federal tax return and its state tax return in Colorado as "major" tax jurisdictions, as defined. AllThe years 2015-2017 are open to examination by the IRS. No reserves for uncertain tax positions have been recorded.
The Company adopted changes issued by FASB which prescribed a recognition threshold and measurement attribute for financial statement recognition and measurement of an uncertain tax position taken or expected to be taken in a tax return. Under the guidance, an uncertain income tax position must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority.
HOME TREASURERTREASURE FINDERS, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements
December 31, 20142017 and 20132016
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) e. Loss per Common Share
The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. At December 31, 20142017 and 20132016 there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding. The computation of loss per common share is based on the weighted average number of shares outstanding for the years ended December 31, 2014 and 2013 as follows:
| For the Year Ended December 31, | | | 2014 | | 2013 | | | | | | | Net loss (numerator) | | $ | (139,482 | ) | | $ | (4,790 | ) | Shares (denominator) | | | 13,205,450 | | | | 11,725,800 | | Net loss per share | | $ | (0.01 | ) | | $ | (0.00 | ) |
f. Revenue Recognition
Revenue is recognized when services are provided and collection is reasonably assured. Revenue is recognized in a real estate transaction when the closing occurs on the home sale and commissions are received. For the property management activities, revenue is recognized when rent is received from the tenant. For rental income, revenue is recognized when the services are provided, and collection is reasonably assured. g. Newly Adopted Accounting Pronouncements
The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations.
h. Principles of consolidations
The consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation.
HOME TREASURERTREASURE FINDERS, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements
December 31, 20142017 and 20132016 NOTE 2 –PROPERTY– PROPERTY AND EQUIPMENT
The Company's capital assets consist of warehouse units, computer equipment, office furniture and leasehold improvements for its offices. The warehouse was purchased on September 15, 2014. Depreciation and amortization is calculated using the straight-line method over the estimated useful life of the asset, ranging from 18 months to 39 years. Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred. The cost and related accumulated depreciation of any capital assets that are sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.
Fixed assets and related depreciation for the year ended December 31, 20142017 and 2016 are as follows:
| | | | | 2017 | | | 2016 | | Computer equipment | | $ | 5,672 | | | $ | 5,672 | | | $ | 5,672 | | Furniture and fixtures | | | 5,253 | | | | 7,777 | | | | 7,777 | | Leasehold improvements | | | 4,000 | | | | 4,000 | | | | 4,000 | | Warehouse units | | | 861,000 | | | | 861,000 | | | | 861,000 | | Accumulated amortization and depreciation | | | (8,378 | ) | | | (80,892 | ) | | | (58,246 | ) | Total fixed assets | | $ | 867,547 | | | $ | 797,557 | | | $ | 820,203 | |
Depreciation expense was $6,925$22,646 and amortization expense was $1,555 $23,843 for the yearyears ended December 31, 2014.2017 and 2016, respectively.
NOTE 3 – LONG-TERM DEBT
On September 15, 2014, the Company entered into a promissory note for $840,000 on the purchase three warehouse units known as 4420, 4430 and 4440 Garfield Street, Denver, Colorado. The Company is leasing each of the three separate units to licensed third party growers for cannabis cultivation. The terms of the variable interest 25 year amortization note carried by the seller of the property call for payments to seller as follows: | 1 | First and Second year interest rate at 7% with 25 year amortization payment at $5,936.95$5,937 per month. |
| 2. | Third and Fourth year at 8% with 25 year amortization payment at $6,277.73$6,278 per month. |
| 3. | Fifth year at 9% with 25 year amortization payment at $6,639.64$6,640 per month. |
| 4. | Balloon payment of $777,255.49$777,255 due at end of the fifth year. |
The note to seller is secured by the three warehouse units.
HOME TREASURERTREASURE FINDERS, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements
December 31, 20142017 and 20132016
NOTE 3 – LONG-TERM DEBT (continued)
As of December 31, 2014,2017, the balance of the note was $837,922$800,864 and the annual maturities of the long-term debt were:
Year Ending December 31, | | | | 2015 | | $ | 13,003 | | 2016 | | | 13,265 | | 2017 | | | 10,791 | | 2018 | | | 11,089 | | 2019 | | | 789,774 | | | | | | | | | $ | 837,922 | |
Year Ending December 31, | | | | | | | | 2018 | | | 11,090 | | 2019 | | | 789,774 | | | | $ | 800,864 | |
The three warehouse units are currently leased to one tenant. The Company is leasing each unit for $4,000 per month for the term of the lease which ends on November 1, 2018. NOTE 4 -COMMON– COMMON STOCK TRANSACTIONS
On March 13, 2014The aggregate number of shares the Company completed a private placement of restricted common shares priced at $0.10 per share. This placement of our restricted common stock generated $119,600has authority to be utilized as general working capital. The shares were issued March 31, 2014.
On March 31, the Company also issued 83,650issue is 100,000,000 shares of common stock valued at $0.10 per share to pay for services received.
On October 8, 2014, the Company issued 200,000 restricted shares of the Company's common stock at a price of $0.15having no par value per share. The cash received was utilizedshares of this class of common stock have unlimited voting rights and constitute the sole voting group of the Company. Each shareholder has one vote for general working capital andeach share of stock owned. Cumulative voting shall not be permitted in connection with the Company's Garfield street warehouse.election of directors or otherwise.
NOTE 5 -– RELATED PARTY TRANSACTIONS Effective April 1, 2013 all property management activities, revenues and expenses in connection with CW Properties, a property management company owned by the CEO, were transferred to a wholly owned subsidiary of Home Treasure Finders, Inc. All net revenue earned by CW Properties beginning April 1, 2013 has been booked as consolidated revenue of Home Treasure Finders, Inc.
On March 14, 2014 we formed an affiliate vehicle, JDONE, LLC which has been consolidated, through which we might make anonymous offers on properties suitable for cannabis cultivation. Subsequently, we transferred $100,000 from our company checking account into the bank account of JDONE and on July 2014 JDONE issued a $10,000 check to serve as down payment on the purchase of warehouse units to be used for cannabis cultivation. The sale was closed on September 15, 2014 and the total purchase price was $850,000 with down payment of $10,000 with balance due of $840,000 carried by the seller.
During the year ended December 31, 2014,2017, the related party payable had a net increasedecrease of $3,750.$8,193. The balance of the related party payable was $8,693$9,397 and $4,943 as$17,590as of December 31, 20142017 and 2013,2016, respectively. This payable is due on demand and has an interest rate of 8%. Accrued interest on this payable was $2,025$4,505 and $3,305 at December 31, 2014. 2017 and 2016, respectively. Beginning in 2013,April 2016, the Company began accruing salarypaid base compensation of $5,500 per month to the CEO for his services. Effective April 14, 2014, the base salary to be paid to the CEO increased to $6,000 per month. The balance accrued at December 31, 2014 was $18,612.
HOME TREASURER FINDERS, INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
December 31, 2014 and 2013
NOTE 5 - RELATED PARTY TRANSACTIONS – (continued)
During the year ended December 31, 2013 a major stockholder deposited $5,000 in the Company's bank account to cover expenses. There were also payments of $5,000 made to pay down the related party payable during the year ended December 31, 2013. The balance of the related party payable was $4,943 as of December 31, 2013. This payable is due on demand and has an interest rate of 8%. Accrued interest on this payable was $1,246 at December 31, 2013. Beginning in April 2013, the Company began accruing salary of $5,500$10,000 per month to the CEO for his services. The Company also pays additional override of 10% based upon commission revenue. The balance accrued at December 31, 20132017 and 2016 was $14,612.$43,612 and $28,612, respectively.
NOTE 6 – COMMITMENTS AND CONTINGENCIES
Operating Lease
The Company leases its office space under a non-cancelable lease agreement accounted for as an operating lease. We are leasing this facility for $13,160$21,000 for the first year term of the lease which ends on April 30, 2015.March 31, 2018. At that time we shall have the option of extending the lease term.
Rent expense was $11,825$16,800 and $4,200$15,200 for the years ended December 31, 2014,2017, and 2013,2016, respectively.
Minimum rental payments under the non-cancelable operating leases are as follows: | | | Years ending December 31, | Amount | | 2018 | | $ | 4,200 | | Thereafter | | | - | | | | $ | 4,200 | |
| | | | Years ending December 31, | | Amount | | 2014 | | $ | 4,760 | | Thereafter | | | - | | | | $ | 4,760 | | | | | | |
HOME TREASURE FINDERS, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements
December 31, 2017 and 2016
NOTE 7 -– GOING CONCERN
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has not yet generated sufficient revenue to generatecash flow and net income. Additionally liabilities exceed assets by$22,644 at December 31, 2014. These factors,This factor, among others, indicateindicates that there is substantial doubt that the Company will be able to continue as a going concern for a reasonable period of time.
The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company's continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. The Company intends to seek additional funding through equity offerings to fund its business plan. There is no assurance that the Company will be successful in raising additional funds.
NOTE 8 -– SUBSEQUENT EVENTS
The Company has evaluated all subsequent events through the date the financial statements were issued, per the requirements of ASC Topic 855, and has determined that there are no additional events to report. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS AND ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES. Evaluation of Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To address the material weaknesses, we performed additional analysis and other postclosingpost closing procedures in an effort to ensure our consolidated financial statements included in this annual report have been prepared in accordance with generally accepted accounting principles. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented. Management's Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended. Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2014.2017. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control-Integrated Framework. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. We have identified the following material weaknesses:
As of December 31, 2014,2017, we did not maintain effective controls over the control environment. Specifically, a lack of segregation of duties, a lack of oversight of financial reporting and inadequate documentation of business transactions. Since these entity level controls have a pervasive effect across the organization, management has determined that these circumstances constitute material weaknesses.
Because of these material weaknesses, management has concluded that we did not maintain effective internal control over financial reporting as of December 31, 2014,2017, based on the criteria established in "Internal Control-Integrated Framework" issued by the COSO.
No Attestation Report by Independent Registered Accountant
The effectiveness of our internal control over financial reporting as of December 31, 2014,2017, has not been audited by our independent registered public accounting firm by virtue of our exemption from such requirement as a smaller reporting company. Changes in Internal Control Over Financial Reporting There have been no changes in our internal control over financial reporting through the date of this report or during the year ended December 31, 20142017, that materially affected,effected, or are reasonably likely to materially affect,effect, our internal control over financial reporting. Corrective Action Management plans to seek a candidate who would serve as a consultant to assist management in improvements in our disclosure controls and procedures and in our internal control over financial reporting. We anticipate that the consultant will help to oversee our financial reporting and tracking documentation of all transactions.
ITEM 9B. OTHER INFORMATION.
None
Part III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT. DIRECTORS AND EXECUTIVE OFFICERS
Our executive officers and directors and their respective ages and positions as of the date of this prospectus are as follows: Name | | Age | | Position | | | | | | Corey Wiegand (1) | | 3539 | | President, Chief Executive Officer, Chief Financial Officer and Sole Director |
_______________ (1) | Our founder, President, CEO, CFO and Sole Director |
Executive Biography. Corey Wiegand, age 35,39, President, is a graduate cum laude from the University of Texas A&M in Corpus Christi. He is a real estate investor, Colorado licensed Employing Broker, and is certified to work with property management, short sales and bank owned properties. Corey Wiegand’sWiegand's Biography for the last fiveten years, including dates of Employment, Job Title, Job Description, Employer and Location of employer is detailed in the table below. Dates of Employment | | Job Title | | Job Description | | Employer/Location | | | | | | | | August, 2006- September, 2008 | | Real Estate Investor | | Located Fix and Flip Deals for a small investor Group | | Info-Foreclosure LLC Denver Metro Area Colorado | | | | | | | | November, 2007-March 31, 2012 | | Realtor | | Buyer and Investor Sales Specialist | | RE/MAX Alliance, Boulder, Colorado | | | | | | | | July 2008- Present | | Founder, President | | | | Home Treasure Finders Inc. Denver Metro Area Colorado |
Section 16 (a) Beneficial Ownership Reporting Compliance
Corey Wiegand: Failed to file his initial report on Form 3 in a timely fashion (1 report). No other reports were required.
Bristlecone Associates LLC: Failed to file its initial report on Form 3 in a timely fashion (1 report). No other reports were required.
ITEM 11. EXECUTIVE COMPENSATION.
Director and Officer Compensation
We have no director compensation policy. Directors may be reimbursed for their expenses incurred for attending each board of directors meeting and may be paid a fixed sum for attendance at each meeting of the directors or a stated salary as director. No policy or payment precludes any director from serving us in any other capacity and being compensated for the service. Members of special or standing committees may be allowed reimbursement and compensation for attending committee meetings. During the years ended December 31, 20172014 and 20162013 and the period from inception until December 31, 2014 and the date of this report, none of our directors were paid any fees to attend director meetings. EXECUTIVE COMPENSATION There were no executives who received annual and/or long-term compensation for more than $100,000 per year at the end of the last completed fiscal year. Beginning January 2012 we agreed to pay Mr. Wiegand a salary of $2,500 per month plus an additional over-ride of 15% based on sales. However, during much of 2012, we experienced a cash shortage and were unable to pay salary to Mr. Wiegand as it became due. Effective April 1, 2013 we2016, Mr. Wiegand's salary increased Mr. Wiegand’s salaryfrom $6,000 to $5,500 per month.$10,000 a month plus he receives the additional override of 10% based upon commission revenue. As of December 31, 20132017 Mr. Wiegand is owed accrued salary totaling $14,612. As of the date of this report, we have not executed a written agreement with Mr. Wiegand in connection with executive compensation and may, from time to time, increase or otherwise change Mr. Wiegand’s compensation package.
$43,612. Summary Compensation Table The following table sets forth certain information concerning compensation paid our officer during years ended 20172014, 2013 and 2011.2016. Mr. Wiegand received no compensation.compensation prior. Going forward, Mr. Wiegand will receive a salary plus a commission based upon a percentage of gross sales, however, no written compensation agreement has been executed. Name and principal position | | Year | | Salary and Commissions ($) | | Bonus ($) | | Stock Awards ($) | | Option Awards ($) | | Non-Equity Incentive Plan Compensation ($) | | Nonqualified Deferred Compensation Earnings ($) | | All Other Compensation ($) | | Total ($) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corey Wiegand, Officer and Sole Director | | 20142017
20132016
2012
2011
| | | 70,000112,331
74,738125,520
11,699
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—
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—
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—
| | | | 70,000112,331
74,738125,520
11,699
—
| |
For the years ended 2014, 2013and 2012, services valued at $0, $0, and $0 respectively, were contributed by our officers and director.
As of December 31, 2014 Mr. Wiegand is owed accrued salary totaling $18,612. As of the date of this report, we have not executed a written agreement with Mr. Wiegand in connection with executive compensation. We plan to pay Mr. Wiegand accrued back salary.
Option Grants in Last Fiscal Year No stock options were granted to the Named Executives for the years ended December 31, 2011, 2012, 2013 and as of the date of this report.None.
Aggregated Option Exercises in Last Fiscal Year and Year-End Option Values No stock options were exercised or held for exercise. Equity Compensation Plan Information There is currently no stock option executive compensation plan in place. Employment and Consulting Agreements The Company has no agreement for employment. The Company entered and completed a written agreement for certain future financial printing services for which 140,000 shares of its common stock were issued on March 16, 2009. Going forward we will purchase these services for cash.
We presently pay Corey Wiegand a salary of $106,000,000 monthly plus an override of 15%10% based upon commission revenue. During periods when we did not have available cash, we have accrued unpaid salary and plan to pay these amounts at a future date when and if cash becomes available. We have not executed a written agreement in connections with this arrangement and we may change the arrangement at any time.
Board of Directors
Our Directors areDirector is elected by the vote of a majority in interest of the holders of our voting stock and hold office until the expiration of the term for which he or she was elected and until a successor has been elected and qualified. A majority of the authorized number of directors constitutes a quorum of the Board for the transaction of business. The directors must be present at the meeting to constitute a quorum. However, any action required or permitted to be taken by the Board may be taken without a meeting if all members of the Board individually or collectively consent in writing to the action. Directors may receive compensation for their services and reimbursement for their expenses as shall be determined from time to time by resolution of the Board. Presently our sole director receives no compensation for his service on our Board of Directors.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The following table sets forth certain information, as of December 31, 20142017 and as of the date of this report, with respect to the beneficial ownership of the outstanding common stock by (i) any holder of more than five (5%) percent; (ii) each of our executive officers and directors; and (iii) our directors and executive officers as a group. Except as otherwise indicated, each of the stockholders listed below has sole voting and investment power over the shares beneficially owned. Title of Class | Name of Beneficial Owner (1) | Number of Shares Beneficially Owned (2) | Percentage Ownership (2) | Name of Beneficial Owner | Number of Shares Beneficially Owned | Percentage Ownership | | | | | | | | Common Stock | Corey Wiegand | 6,700,000 | 50.7 % | Corey Wiegand | 6,700,000 | 50.7 % | | | | | | | | Common Stock | Bristlecone Associates, LLC (3) 16200 West County Road 18E Loveland, CO 80537 | 3,000,000 | 22.7% | Bristlecone Associates, LLC 16200 West County Road 18E Loveland, CO 80537 | 3,000,000 | 22.7% | | | | | | | | Common Stock | All Executive Officers and Directors as a Group (1 person) | 6,700,000 | 50.7% | All Executive Officers and Directors as a Group (1 person) | 6,700,000 | 50.7% |
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| Except as otherwise indicated, the address of each beneficial owner is c/o Home Treasure Finders, Inc., 3412 West 62 nd Ave.,4316 Tennyson Street, Denver, CO 80221.80212 . | | | | Applicable percentage ownership is based on 13,205,450 shares of common stock outstanding as of December 31, 20142017 and as of the date of this report. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. | | Bristlecone Associates, LLC acquired 3,000,000 shares from Kevin Byrne on December 25, 2010 for $2,500 cash. |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS Corey Wiegand has no relationship with any shareholder of the Company other than James Wiegand.
Other than as set forth above, none of the following parties has, during the last two years, had any material interest, direct or indirect, in any transaction with us or in any presently proposed transaction that has or will materially affect us: | ● | any of our directors or officers; | | | | | ● | any person proposed as a nominee for election as a director; | | | | | ● | any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to our outstanding shares of common stock; or | | | | | ● | any relative or spouse of any of the foregoing persons who has the same house as such person. |
During the year ended December 31, 2014, James Wiegand, father of2017, Corey Wiegand and a stockholder, deposited $11,250 indeferred cash collection of $7,027 from the Company's bank accountCompany to cover current expenses. $7,000$15,220 was paid back to him.
During the year ended December 31, 2013, James Wiegand, father of2016, Corey Wiegand and a stockholder, deposited $5,000 indeferred cash collection of $19,090 from the Company's bank accountCompany to cover current expenses. $5,193 was paid back to him. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Audit Fees During the fiscal year ended December 31, 2014,2017, we incurred approximately $22,600$24,000 in fees to our principal independent accountants for professional services rendered in connection with the audit and reviews of our financial statements for fiscal years ended December 31, 2012.2017.
During the fiscal year ended December 31, 2013,2016, we incurred approximately $17,400$24,000 in fees to our principal independent accountants for professional services rendered in connection with the audit and reviews of our financial statements for fiscal years ended December 31, 2012.2016. Audit-Related Fees
The aggregate fees billed during the fiscal years ended December 31, 20172014 and 20162013 for assurance and related services by our principal independent accountants that are reasonably related to the performance of the audit or review of our financial statements (and are not reported under Item 9(e)(1) of Schedule 14A was $0 and $0, respectively.
Tax Fees
The aggregate fees billed during the fiscal years ended December 31, 20172014 and 20162013 for professional services rendered by our principal accountant tax compliance, tax advice and tax planning was $0$350 and $0,$350, respectively.
All Other Fees
The aggregate fees billed during the fiscal years ended December 31, 20172014 and 20162013 for products and services provided by our principal independent accountants (other than the services reported in Items 9(e)(1) through 9(e)(3) of Schedule 14A was $0 and $0, respectively.
ITEM 15. EXHIBITS AND REPORTS OF FORM 8-K
Exhibits 101.DEF | | XBRL Taxonomy Extension Definition Linkbase Document* | | | | 101.INS | | XBRL Instance Document | | | | 101SCH | | XBRL Taxonomy Extension Schema Document | | | | 101.CAL | | XBRL Taxonomy Extension Calculation Linkbase Document | | | | 101.LAB | | XBRL Taxonomy Extension Label Linkbase Document | | | | 101.PRE | | XBRL Taxonomy Extension Presentation Linkbase Document | | | | 101.DEF | | XBRL Taxonomy Extension Definition Linkbase Document |
Reports on 8-K No reports were filed on Form 8-K this fiscal year.
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | HOME TREASURE FINDERS (Registrant) | | | | | | DATE: March 30, 2015April 2, 2018 | By: | /s/ Corey Wiegand | | | | Corey Wiegand President, CEO, Sole Director and Chief Financial Officer | | | | | | | | | |
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