For Quarter Ended: | Commission File Number |
COLORADO | 26-3119496 |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization) | |
4316 Tennyson Street, Denver, Colorado | 80212 |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer | Accelerated filer | |
Non-accelerated filer | Smaller | |
(Do not check if smaller reporting company) | Emerging growth company ☐ |
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 Cash Flows (Unaudited) | 5 |
Notes to Consolidated Financial Statements | 6 |
Item 2. | |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 10 |
Item 4. Controls and Procedures | 10 |
Item 4T. Controls and Procedures | 10 |
PART II OTHER INFORMATION | |
Item 1. Legal Proceedings | 11 |
Item 1A. Risk Factors | 11 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 11 |
Item 3. Defaults Upon Senior Securities | 11 |
Item 4. | 11 |
Item 5. Other Information | 11 |
Item 6. Exhibits | 12 |
Signatures | 13 |
March 31, | December 31, | September 30, | December 31, | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 46,948 | $ | 60,202 | $ | 37,385 | $ | 60,202 | ||||||||
Rent receivable | 500 | 500 | 2,086 | 500 | ||||||||||||
Prepaid expenses | 12,414 | 1,737 | 2,816 | 1,737 | ||||||||||||
Total current assets | 59,862 | 62,439 | 42,287 | 62,439 | ||||||||||||
Property and equipment, net | 814,234 | 820,203 | 803,053 | 820,203 | ||||||||||||
Other assets: | ||||||||||||||||
Security deposits | 1,400 | 1,400 | 1,400 | 1,400 | ||||||||||||
Total assets | $ | 875,496 | $ | 884,042 | $ | 846,740 | $ | 884,042 | ||||||||
Liabilities and Shareholders' Equity (Deficit) | Liabilities and Shareholders' Equity (Deficit) | Liabilities and Shareholders' Equity (Deficit) | ||||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 19,099 | $ | 18,336 | $ | 22,231 | $ | 18,336 | ||||||||
Accrued wages | 28,612 | 28,612 | 40,612 | 28,612 | ||||||||||||
Accrued liabilities | 47,502 | 56,672 | 54,024 | 56,672 | ||||||||||||
Accrued interest – related party | 3,674 | 3,305 | 4,462 | 3,305 | ||||||||||||
Note payable, current portion | 8,173 | 10,790 | 11,455 | 10,790 | ||||||||||||
Related party note payable | 15,995 | 17,590 | 10,977 | 17,590 | ||||||||||||
Total current liabilities | 123,055 | 135,305 | 143,761 | 135,305 | ||||||||||||
Long term debt, net of current portion | 800,864 | 800,864 | 792,187 | 800,864 | ||||||||||||
Total liabilities | 923,919 | 936,169 | 935,948 | 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 | 215,267 | 215,267 | ||||||||||||
Additional paid in capital | 96,476 | 96,476 | 96,476 | 96,476 | ||||||||||||
Accumulated deficit | (360,166 | ) | (363,870 | ) | (400,951 | ) | (363,870 | ) | ||||||||
Total shareholder's deficit | (48,423 | ) | (52,127 | ) | ||||||||||||
Total shareholders' equity (deficit) | (89,208 | ) | (52,127 | ) | ||||||||||||
Total liabilities and shareholders' deficit | $ | 875,496 | $ | 884,042 | ||||||||||||
Total liabilities and shareholders' equity (deficit) | $ | 846,740 | $ | 884,042 |
For the Three Months Ended | For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
March 31, | September 30, | September 30, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Commission income | $ | 49,477 | $ | 48,026 | $ | 37,898 | $ | 44,535 | $ | 108,198 | $ | 165,053 | ||||||||||||
Rental and property management income | 60,839 | 56,905 | ||||||||||||||||||||||
Total revenue | $ | 110,316 | $ | 104,931 | ||||||||||||||||||||
Property and rental management income | 65,409 | 59,726 | 192,319 | 176,657 | ||||||||||||||||||||
Revenue | $ | 103,307 | $ | 104,261 | $ | 300,517 | $ | 341,710 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Commission expense | 4,566 | 4,803 | 29,353 | 4,448 | 35,817 | 52,170 | ||||||||||||||||||
Professional fees | 6,830 | 16,279 | 6,686 | 7,713 | 20,079 | 33,931 | ||||||||||||||||||
General and administrative | 78,631 | 63,998 | ||||||||||||||||||||||
General and Administrative | 74,477 | 84,393 | 246,617 | 230,060 | ||||||||||||||||||||
Total operating expenses | 90,027 | 85,080 | 110,516 | 96,554 | 302,513 | 316,161 | ||||||||||||||||||
Operating income | 20,289 | 19,851 | ||||||||||||||||||||||
Operating income (loss) | (7,209 | ) | 7,707 | (1,996 | ) | 25,549 | ||||||||||||||||||
Other expense | ||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Gain on legal settlement | - | - | 14,560 | - | ||||||||||||||||||||
Interest expense | (16,585 | ) | (14,584 | ) | (16,520 | ) | (14,418 | ) | (49,645 | ) | (43,369 | ) | ||||||||||||
Total other expense | (16,585 | ) | (14,584 | ) | ||||||||||||||||||||
Total other income (expense) | (16,520 | ) | (14,418 | ) | (35,085 | ) | (43,369 | ) | ||||||||||||||||
Income before taxes | 3,704 | 5,267 | ||||||||||||||||||||||
Income (loss) before taxes | (23,729 | ) | (6,711 | ) | (37,081 | ) | (17,820 | ) | ||||||||||||||||
Income tax expense | — | — | — | — | — | — | ||||||||||||||||||
Net income | $ | 3,704 | $ | 5,267 | ||||||||||||||||||||
Net income (loss) | $ | (23,729 | ) | $ | (6,711 | ) | $ | (37,081 | ) | $ | (17,820 | ) | ||||||||||||
Basic and diluted income per share | $ | 0.00 | $ | 0.00 | ||||||||||||||||||||
Basic and diluted loss per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||||||
Basic and diluted weighted average | ||||||||||||||||||||||||
common shares outstanding | 13,205,450 | 13,205,450 | 13,205,450 | 13,205,450 | 13,205,450 | 13,205,450 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
March 31, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 3,704 | $ | 5,267 | ||||||||||||
Adjustments to reconcile net income to net cash | ||||||||||||||||
(used) by operating activities: | ||||||||||||||||
Depreciation and amortization expense | 5,969 | 5,936 | ||||||||||||||
Net income (loss) | $ | (37,081 | ) | $ | (17,820 | ) | ||||||||||
Adjustments to reconcile net loss to net cash provided by | ||||||||||||||||
(used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 17,150 | 17,874 | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Increase in rent receivable | (1,586 | ) | - | |||||||||||||
Increase in prepaid expense | (10,677 | ) | (7,767 | ) | (1,079 | ) | (2,023 | ) | ||||||||
Increase in accrued interest | 369 | 171 | ||||||||||||||
Decrease in accrued liabilities | (9,170 | ) | (7,147 | ) | ||||||||||||
Increase in accrued interest related party | 1,157 | 309 | ||||||||||||||
Increase in accrued liabilities | 9,352 | 2,728 | ||||||||||||||
Increase in accounts payable | 763 | 19,689 | 3,895 | 16,900 | ||||||||||||
Net cash provided by (used in) operating activities | (9,042 | ) | 16,149 | (8,192 | ) | 17,968 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of fixed assets | - | (940 | ) | |||||||||||||
Net cash used by investing activities | - | (940 | ) | |||||||||||||
Cash paid for fixed assets | - | (940 | ) | |||||||||||||
Net cash used in investing activities | - | (940 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from related party payable | 1,405 | - | 2,387 | 3,145 | ||||||||||||
Payment of related party payable | (3,000 | ) | (9,193 | ) | (9,000 | ) | (9,193 | ) | ||||||||
Payment of long term debt | (2,617 | ) | (3,394 | ) | (8,012 | ) | (10,363 | ) | ||||||||
Net cash used in financing activities | (4,212 | ) | (12,587 | ) | ||||||||||||
Net cash provided by (used in) financing activities | (14,625 | ) | (16,411 | ) | ||||||||||||
Net change in cash | (13,254 | ) | 2,622 | (22,817 | ) | 617 | ||||||||||
Cash, beginning of period | 60,202 | 45,210 | 60,202 | 45,210 | ||||||||||||
Cash, end of period | $ | 46,948 | $ | 47,832 | $ | 37,385 | $ | 45,827 | ||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Income taxes | $ | - | $ | - | $ | — | $ | — | ||||||||
Interest | $ | 16,216 | $ | 14,416 | $ | 48,488 | $ | 32,591 | ||||||||
NON CASH FINANCING ACTIVITIES: | ||||||||||||||||
None | — | — |
September 30, 2017 | December 31, 2016 | |||||||
Computer equipment | $ | 5,672 | $ | 5,672 | ||||
Furniture and fixtures | 7,777 | 7,777 | ||||||
Leasehold improvements | 4,000 | 4,000 | ||||||
Warehouse units | 861,000 | 861,000 | ||||||
Accumulated amortization and depreciation | (75,396 | ) | (58,246 | ) | ||||
Total fixed assets | $ | 803,053 | $ | 820,203 |
March 31, 2017 | December 31, 2016 | |||||||
Computer equipment | $ | 5,672 | $ | 5,672 | ||||
Furniture and fixtures | 7,777 | 7,777 | ||||||
Leasehold improvements | 4,000 | 4,000 | ||||||
Warehouse units | 861,000 | 861,000 | ||||||
Accumulated amortization and depreciation | (64,215 | ) | (58,246 | ) | ||||
Total property and equipment | $ | 814,234 | $ | 820,203 |
1 | First and Second year interest rate at 7% with 25 year amortization payment at $5,937 per month. |
2. | Third and Fourth year at 8% with 25 year amortization payment at $6,278 per month. |
3. | Fifth year at 9% with 25 year amortization payment at $6,640 per month. |
4. | Balloon payment of $777,255 due at end of the fifth year. |
Year Ending December 31, | ||||
2017 | $ | 8,173 | ||
2018 | 11,090 | |||
2019 | 789,774 | |||
$ | 809,037 |
Year Ending December 31, | |||||
2017 | $ | 2,778 | |||
2018 | 11,090 | ||||
2019 | 789,774 | ||||
$ | 803,642 |
Exhibit Number | Description | |
31.1 | ||
32.1 | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
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 | |
HOME TREASURE FINDERS, INC. AND SUBSIDIARY | ||
(Registrant) | ||
DATE: | BY: | /s/ Corey Wiegand |
Corey Wiegand | ||
President |