For Quarter Ended: September 30, | Commission File Number |
COLORADO | 26-3119496 |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization) | |
4318 Tennyson Drive, Denver, Colorado | |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer o | Accelerated filer o |
Non-accelerated filer o | Smaller reporting company ý |
Page | |
PART I FINANCIAL INFORMATION | |
Item 1. Financial Statements for the period ended | |
Consolidated Balance Sheets (Unaudited) | 3 |
Consolidated Statements of Operations (Unaudited) | 4 |
Consolidated Statements of Changes in Shareholders’ Equity (Deficit) (Unaudited) | 5 |
Consolidated Statements of Cash Flows (Unaudited) | 6 |
Notes to Consolidated Financial Statements | 7 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 10 |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 11 |
Item 4. Controls and Procedures | 11 |
Item 4T. Controls and Procedures | 11 |
PART II OTHER INFORMATION | |
Item 1. Legal Proceedings | 12 |
Item 1A. Risk Factors | 12 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. Defaults Upon Senior Securities | |
Item 4. Mine Safety | |
Item 5. Other Information | |
Item 6. Exhibits | |
Signatures | |
September 30, | December 31, | September 30, | December 31, | |||||||||||||
2014 | 2013 | 2015 | 2014 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 5,706 | $ | 14,205 | $ | 21,873 | $ | 36,848 | ||||||||
Rent receivable | 500 | - | ||||||||||||||
Prepaid asset | 1,561 | — | 6,536 | 753 | ||||||||||||
Total current assets | 7,267 | 14,205 | 28,909 | 37,601 | ||||||||||||
Property and equipment, net | 862,967 | — | 848,740 | 867,547 | ||||||||||||
Other assets: | ||||||||||||||||
Security deposits | 1,050 | — | 1,050 | 1,050 | ||||||||||||
Total assets | $ | 871,284 | $ | 14,205 | $ | 878,699 | $ | 906,198 | ||||||||
Liabilities and Shareholders’ Equity (Deficit) | ||||||||||||||||
Liabilities and Shareholders' Equity (Deficit) | Liabilities and Shareholders' Equity (Deficit) | |||||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 8,788 | $ | 6,311 | $ | 10,710 | $ | 9,462 | ||||||||
Accrued salary | 18,611 | 14,612 | ||||||||||||||
Accrued wages | 18,612 | 18,612 | ||||||||||||||
Accrued liabilities | 35,303 | 28,220 | 72,906 | 52,128 | ||||||||||||
Accrued interest on related party note payable | 1,761 | 1,246 | ||||||||||||||
Accrued interest related party | 2,575 | 2,025 | ||||||||||||||
Note payable, current portion | 12,542 | 13,003 | ||||||||||||||
Related party note payable | 14,793 | 4,943 | 10,193 | 8,693 | ||||||||||||
Current portion of long term liabilities | 11,745 | - | ||||||||||||||
Total current liabilities | 91,001 | 55,332 | 127,538 | 103,923 | ||||||||||||
Long term debt | 828,255 | — | 815,661 | 824,919 | ||||||||||||
Total liabilities | 919,256 | 55,332 | 943,199 | 928,842 | ||||||||||||
Shareholders’ equity (deficit): | ||||||||||||||||
Shareholders' equity (deficit): | ||||||||||||||||
Common stock, no par value; 100,000,000 shares authorized, | ||||||||||||||||
13,005,450 and 11,725,800 shares issued and outstanding, respectively | 185,267 | 57,302 | ||||||||||||||
13,205,450 shares issued and outstanding | 215,267 | 215,267 | ||||||||||||||
Additional paid in capital | 96,476 | 96,476 | 96,476 | 96,476 | ||||||||||||
Deficit accumulated during development stage | (329,715 | ) | (194,905 | ) | ||||||||||||
Total shareholder’s equity (deficit) | (47,972 | ) | (41,127 | ) | ||||||||||||
Accumulated deficit | (376,243 | ) | (334,387 | ) | ||||||||||||
Total shareholder's equity (deficit) | (64,500 | ) | (22,644 | ) | ||||||||||||
Total liabilities and shareholders' equity (deficit) | $ | 871,284 | $ | 14,205 | $ | 878,699 | $ | 906,198 |
For the Three Months Ended | For the Nine Months Ended | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Commission income | $ | 18,220 | $ | 37,023 | $ | 74,964 | $ | 89,063 | $ | 73,928 | $ | 18,220 | $ | 147,470 | $ | 74,964 | ||||||||||||||||
Property management income | 11,174 | 17,039 | 37,911 | 26,787 | ||||||||||||||||||||||||||||
Property and rental management income | 29,391 | 11,174 | 140,134 | 37,911 | ||||||||||||||||||||||||||||
Revenue | $ | 29,394 | $ | 54,062 | $ | 112,875 | $ | 115,850 | $ | 103,319 | $ | 29,394 | $ | 287,604 | $ | 112,875 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Commision expense | 10,227 | 5,553 | 35,267 | 13,359 | ||||||||||||||||||||||||||||
Commission expense | 41,257 | 10,227 | 71,674 | 35,267 | ||||||||||||||||||||||||||||
Professional fees | 3,497 | 3,669 | 25,394 | 15,884 | 5,419 | 3,497 | 27,760 | 25,394 | ||||||||||||||||||||||||
General and Administrative | 57,961 | 32,750 | 189,556 | 82,912 | 61,975 | 57,961 | 185,708 | 189,556 | ||||||||||||||||||||||||
Total operating expenses | 71,685 | 41,972 | 250,217 | 112,155 | 108,651 | 71,685 | 285,142 | 250,217 | ||||||||||||||||||||||||
Operating income (loss) | (42,291 | ) | 12,090 | (137,342 | ) | 3,695 | (5,332 | ) | (42,291 | ) | 2,462 | (137,342 | ) | |||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||
Other income | 3,047 | — | 3,047 | — | - | 3,047 | - | 3,047 | ||||||||||||||||||||||||
Interest expense | (50 | ) | (101 | ) | (515 | ) | (198 | ) | (14,738 | ) | (50 | ) | (44,318 | ) | (515 | ) | ||||||||||||||||
Total other income (expense) | 2,997 | (101 | ) | 2,532 | (198 | ) | (14,738 | ) | 2,997 | ) | (44,318 | ) | 2,532 | ) | ||||||||||||||||||
Income (loss) before taxes | (39,294 | ) | 11,989 | (134,810 | ) | 3,497 | (20,070 | ) | (39,294 | ) | (41,856 | ) | (134,810 | ) | ||||||||||||||||||
Income tax expense | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net income (loss) | $ | (39,294 | ) | $ | 11,989 | $ | (134,810 | ) | $ | 3,497 | $ | (20,070 | ) | $ | (39,294 | ) | $ | (41,856 | ) | $ | (134,810 | ) | ||||||||||
Basic and diluted loss per share | $ | (0.00 | ) | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | |||||||||||
Basic and diluted weighted average | ||||||||||||||||||||||||||||||||
common shares outstanding | 13,005,450 | 11,725,800 | 12,583,587 | 11,725,800 | 13,205,450 | 13,005,450 | 13,205,450 | 12,583,587 |
Additional | ||||||||||||||||||||
Common Stock | Paid In | Accumulated | Total | |||||||||||||||||
Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
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 | ) | (22,644 | ) | |||||||||||||
Net loss for the nine months ended September 30, 2015(unaudited) | — | — | — | (41,856 | ) | (41,856 | ) | |||||||||||||
Balance at June 30, 2015 (unaudited) | 13,205,450 | $ | 215,267 | $ | 96,476 | $ | (376,243 | ) | $ | (64,500 | ) |
Additional | ||||||||||||||||||||
Common Stock | Paid In | Accumulated | Total | |||||||||||||||||
Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
Balance at December 31, 2012 | 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 (unaudited) | 1,196,000 | 119,600 | — | — | 119,600 | |||||||||||||||
Common stock issued on March 31, 2014 for services valued at $0.10 per share (unaudited) | 83,650 | 8,365 | — | — | 8,365 | |||||||||||||||
Net loss for the nine months ended September 30, | ||||||||||||||||||||
2014 (Unaudited) | — | — | — | (134,810 | ) | (134,810 | ) | |||||||||||||
Balance at September 30, 2014 (Unaudited) | 13,005,450 | $ | 185,267 | $ | 96,476 | $ | (329,715 | ) | $ | (47,972 | ) |
For the Nine Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2015 | 2014 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | (134,810 | ) | $ | 3,497 | $ | (41,856 | ) | $ | (134,810 | ) | |||||
Adjustments to reconcile net loss to net cash provided | ||||||||||||||||
(used) by operating activities: | ||||||||||||||||
Depreciation and amortization | 1,958 | — | 19,638 | 1,958 | ||||||||||||
Common stock issued for services | 8,365 | — | - | 8,365 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Decrease in prepaid expense | (1,561 | ) | 210 | |||||||||||||
Increase in rent receivable | (500 | ) | - | |||||||||||||
Increase in prepaid expense | (5,783 | ) | (1,561 | ) | ||||||||||||
Increase in other current assets and other assets | (1,050 | ) | — | - | (1,050 | ) | ||||||||||
Decrease in accrued salary | 3,999 | (2,888 | ) | |||||||||||||
Increase in accrued interest | 515 | 198 | ||||||||||||||
Increase in accrued salary | - | 3,999 | ||||||||||||||
Increase in accrued interest related party | 550 | 515 | ||||||||||||||
Increase in accrued liabilities | 7,083 | 16,841 | 20,778 | 7,083 | ||||||||||||
Increase (decrease) in accounts payable | 2,477 | (3,614 | ) | |||||||||||||
Net cash provided by (used in) | ||||||||||||||||
Increase in accounts payable | 1,248 | 2,477 | ||||||||||||||
Net cash used in | ||||||||||||||||
operating activities | (113,024 | ) | 14,244 | (5,925 | ) | (113,024 | ) | |||||||||
Cash flows from investing activities: | ||||||||||||||||
Cash paid for fixed assets | (864,925 | ) | — | (831 | ) | (864,925 | ) | |||||||||
Net cash used in investing activities | (864,925 | ) | — | (831 | ) | (864,925 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from common stock sales | 119,600 | — | - | 119,600 | ||||||||||||
Proceeds from long term debt | 840,000 | — | - | 840,000 | ||||||||||||
Proceeds from related party payable | 10,350 | 5,000 | 1,500 | 10,350 | ||||||||||||
Payment of related party payable | (500 | ) | (2,500 | ) | - | (500 | ) | |||||||||
Net cash provided by | ||||||||||||||||
Payment of long term debt | (9,719 | ) | - | |||||||||||||
Net cash provided by (used in) | ||||||||||||||||
financing activities | 969,450 | 2,500 | (8,219 | ) | 969,450 | |||||||||||
Net change in cash | (8,499 | ) | 16,744 | (14,975 | ) | (8,499 | ) | |||||||||
Cash, beginning of period | 14,205 | 9,408 | 36,848 | 14,205 | ||||||||||||
Cash, end of period | $ | 5,706 | $ | 26,152 | $ | 21,873 | $ | 5,706 | ||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Income taxes | $ | — | $ | — | $ | — | $ | — | ||||||||
Interest | $ | — | $ | — | $ | — | $ | — | ||||||||
NON CASH FINANCING ACTIVITIES: | ||||||||||||||||
Common stock issued for services | $ | - | $ | 8,365 |
Computer equipment | $ | 5,672 | $ | 5,672 | ||||
Furniture and fixtures | 5,253 | 6,084 | ||||||
Leasehold improvements | 4,000 | 4,000 | ||||||
Warehouse units | 850,000 | 861,000 | ||||||
Accumulated amortization and depreciation | (1,958 | ) | (28,016 | ) | ||||
Total fixed assets | $ | 862,967 | $ | 848,740 |
1 | First and Second year interest rate at 7% with 25 year amortization payment at $5,936.95 per month. |
2. | Third and Fourth year at 8% with 25 year amortization payment at $6,277.73 per month. |
3. | Fifth year at 9% with 25 year amortization payment at $6,639.64 per month. |
4. | Balloon payment of $777,255.49 due at end of the fifth year. |
Nine months ending September 30, | ||||
2016 | $ | 12,542 | ||
2017 | 10,914 | |||
2018 | 11,455 | |||
2019 | 9,057 | |||
2020 | 784,235 | |||
$ | 828,203 |
1. | Tenant paid Landlord $24,000 as consideration for the Settlement, and landlord applied such payment to discharge rent due from Tenant for May, June and July. Landlord also reinstated the security deposit of $12,000 which had been previously used to cover the late rent. |
2. | Tenant timely paid landlord $8,000 for August rent. |
3. | Tenant agreed to continue the lease and lease the remainder of landlord's building, i.e. Tenant agreed to immediately take possession of the additional space known as 4440 Garfield and starting September 1, 2015 began paying landlord additional monthly rent of $4,000 per month. Settlement provided that Landlord and tenant will formalize this agreement by mutually executing an addendum to that present lease now in effect between landlord and tenant for 4420/4430 Garfield. |
4. | Various mutual commitments were made and agreed to by tenant and landlord. These included cooperating and acting in good faith to jointly resolve any remaining address issues and disputes regarding the land use regulations of the City and County of Denver. The parties agreed to undertake and pay for various property modifications believed by the parties to the litigation to be required by the City and County of Denver with a goal to their mutual efforts to comply with all requirements to obtain a certificate of occupancy for the three units known as 4420/2230/4440 Garfield. |
• | trends in the median home values in Colorado; | ||
• | the availability, pricing and timeliness of web advertising campaigns; | ||
• | the impact of seasonal variations in demand and/or revenue recognition linked to construction cycles and weather conditions and the retail price of signs, sign riders, telephone services, and Mentor Sales Workshops; | ||
• | timing, availability and changes in government incentive programs; | ||
• | unplanned additional | ||
• | logistical costs; | ||
• | unpredictable volume and timing of | ||
• | our ability to establish and expand listing agent relationships; | ||
• | the number of buyer agents that we are able to recruit, the ability to book facilities for planned sales training seminars; | ||
• | the timing of new technology announcements or introductions by our competitors and other developments in the competitive environment; | ||
• | increases or decreases in real estate appreciation rates due to changes in economic growth; | ||
• | travel costs and other factors causing the mentor training business to become more difficult; and | ||
• | changes in lending, inspection, appraisal and other factors that result in closing delays or cancellations. |
● | our failure to offer mentoring services that compete favorably against other services on the basis of cost, quality and performance; |
● | our failure to offer mentoring services that compete favorably against conventional sales agents and realtors and alternative lead-generation technologies, such as text and e-mail spamming on the basis of cost, quality and performance. |
• | cost-effectiveness of hiring a mentor as compared with establishing a conventional buyer agency agreement; |
• | performance and reliability of trained mentors as compared with conventional and established buyer agents; |
• | success of alternative lead generation technologies such as web-casts, text messaging, email spamming; |
• | fluctuations in economic and market conditions that impact the viability of real estate purchases; |
• | increases or decreases in the costs associated with obtaining a residential home loan; |
• | capital expenditures by customers, which tend to decrease when the domestic or foreign economies slow; |
• | continued regulation of the real estate and lending industries; and |
• | availability and effectiveness of government subsidies and incentives. |
· | that a broker or dealer approve a person's account for transactions in penny stocks; and the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased. |
· | obtain financial information and investment experience objectives of the person; and make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks. |
· | sets forth the basis on which the broker or dealer made the suitability determination; and | |
· | that the broker or dealer received a signed, written agreement from the investor prior to the transaction. |
Exhibit Number | Description | ||
31.1 | Certification of CEO/CFO pursuant to Sec. 302 | ||
32.1 | Certification of CEO/CFO pursuant to Sec. 906 | ||
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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 |
HOME TREASURE FINDERS, INC. AND SUBSIDIARY | ||
(Registrant) | ||
DATE: November | BY: | /s/ Corey Wiegand |
Corey Wiegand | ||
President |