For Quarter Ended: | Commission File Number |
COLORADO | 26-3119496 |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization) | |
4045 Pecos St, Suite 110, Denver, Colorado | 80211 |
(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 | |||
Condensed Consolidated Balance Sheets (Unaudited) | 3 | ||
Condensed Consolidated Statements of Operations (Unaudited) | 4 | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) | 5 | ||
Notes to Unaudited Condensed Consolidated Financial Statements | 6 | ||
Item 2. | 9 | ||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 10 | ||
Item 4. 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. Submission of Matters to a Vote of Security Holders | 11 | ||
Item 5. Other Information | 11 | ||
Item 6. Exhibits | 12 | ||
Signatures | 13 | ||
March 31, | December 31, | June 30, | December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 39,463 | $ | 49,437 | $ | 40,177 | $ | 49,437 | ||||||||
Rent receivable | 1,210 | 4,176 | 500 | 4,176 | ||||||||||||
Related party receivable | 1,398 | - | ||||||||||||||
Prepaid expenses | 1,248 | - | 2,058 | - | ||||||||||||
Total current assets | 43,319 | 53,613 | 42,735 | 53,613 | ||||||||||||
Property and equipment, net | 792,060 | 797,557 | 786,564 | 797,557 | ||||||||||||
Other assets: | ||||||||||||||||
Security deposits | 1,400 | 1,400 | 3,222 | 1,400 | ||||||||||||
Total assets | $ | 836,779 | $ | 852,570 | $ | 832,521 | $ | 852,570 | ||||||||
Liabilities and Shareholders' Equity (Deficit) | ||||||||||||||||
Liabilities and Shareholders' Deficit | Liabilities and Shareholders' Deficit | |||||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 16,992 | $ | 21,017 | $ | 10,285 | $ | 21,017 | ||||||||
Accrued wages | 64,612 | 43,612 | 71,212 | 43,612 | ||||||||||||
Accrued liabilities | 55,906 | 61,788 | 60,222 | 61,788 | ||||||||||||
Accrued interest – related party | 1,218 | 4,505 | 1,224 | 4,505 | ||||||||||||
Note payable, current portion | 8,255 | 11,090 | 5,363 | 11,090 | ||||||||||||
Related party note payable | - | 9,397 | 620 | 9,397 | ||||||||||||
Total current liabilities | 146,983 | 151,409 | 148,926 | 151,409 | ||||||||||||
Long term debt, net of current portion | 789,774 | 789,774 | 789,774 | 789,774 | ||||||||||||
Total liabilities | 936,757 | 941,183 | 938,700 | 941,183 | ||||||||||||
Commitments and Contingencies | ||||||||||||||||
Shareholders' equity (deficit): | ||||||||||||||||
Shareholders' 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 | (411,721 | ) | (400,356 | ) | (417,922 | ) | (400,356 | ) | ||||||||
Total shareholders' deficit | (99,978 | ) | (88,613 | ) | ||||||||||||
Total shareholder's deficit | (106,179 | ) | (88,613 | ) | ||||||||||||
Total liabilities and shareholders' deficit | $ | 836,779 | $ | 852,570 | $ | 832,521 | $ | 852,570 |
For the Three Months Ended | ||||||||
March 31, | ||||||||
2018 | 2017 | |||||||
Commission income | $ | 48,004 | $ | 49,477 | ||||
Rental and property management income | 70,907 | 60,839 | ||||||
Total revenue | $ | 118,911 | $ | 110,316 | ||||
Operating expenses: | ||||||||
Commission expense | 31,860 | 4,566 | ||||||
Professional fees | 6,810 | 6,830 | ||||||
General and administrative | 75,530 | 78,631 | ||||||
Total operating expenses | 114,200 | 90,027 | ||||||
Operating income | 4,711 | 20,289 | ||||||
Other expense | ||||||||
Interest expense | (16,076 | ) | (16,585 | ) | ||||
Total other expense | (16,076 | ) | (16,585 | ) | ||||
Income before taxes | (11,365 | ) | 3,704 | |||||
Income tax expense | — | — | ||||||
Net income (loss) | $ | (11,365 | ) | $ | 3,704 | |||
Basic and diluted income (loss) per share | $ | (0.00 | ) | $ | 0.00 | |||
Basic and diluted weighted average | ||||||||
common shares outstanding | 13,205,450 | 13,205,450 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Commission income | $ | 80,038 | $ | 20,822 | $ | 128,042 | $ | 70,299 | ||||||||
Rental and property and rental management income | 72,176 | 66,072 | 143,083 | 126,911 | ||||||||||||
Revenue | $ | 152,214 | $ | 86,894 | $ | 271,125 | $ | 197,210 | ||||||||
Operating expenses: | ||||||||||||||||
Commission expense | 30,830 | 1,898 | 62,690 | 6,464 | ||||||||||||
Professional fees | 1,918 | 6,563 | 8,726 | 13,393 | ||||||||||||
General and Administrative | 109,721 | 93,508 | 185,251 | 172,139 | ||||||||||||
Total operating expenses | 142,469 | 101,969 | 256,667 | 191,996 | ||||||||||||
Operating income (loss) | 9,745 | (15,075 | ) | 14,458 | 5,214 | |||||||||||
Other income (expense) | ||||||||||||||||
Gain on legal settlement | - | 14,560 | - | 14,560 | ||||||||||||
Interest expense | (15,947 | ) | (16,540 | ) | (32,024 | ) | (33,125 | ) | ||||||||
Total other income (expense) | (15,947 | ) | (1,980 | ) | (32,024 | ) | (18,565 | ) | ||||||||
Net loss | $ | (6,202 | ) | $ | (17,055 | ) | $ | (17,566 | ) | $ | (13,351 | ) | ||||
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 |
For the Three Months Ended | ||||||||
March 31, | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (11,365 | ) | $ | 3,704 | |||
Adjustments to reconcile net income (loss) to net cash provided | ||||||||
(used) by operating activities: | ||||||||
Depreciation and amortization expense | 5,497 | 5,969 | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease in rent receivable | 2,966 | - | ||||||
Increase in prepaid expense | (1,248 | ) | (10,677 | ) | ||||
Increase (decrease) in accrued interest | (3,287 | ) | 369 | |||||
Increase in accrued salary | 21,000 | - | ||||||
Increase (decrease) in accrued liabilities | (5,882 | ) | (9,170 | ) | ||||
Increase (decrease) in accounts payable | (4,025 | ) | 763 | |||||
Net cash provided by (used in) operating activities | 3,656 | (9,042 | ) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from related party payable | 40 | 1,405 | ||||||
Payment of related party payable | (10,835 | ) | (3,000 | ) | ||||
Payment of long term debt | (2,835 | ) | (2,617 | ) | ||||
Net cash used in financing activities | (13,630 | ) | (4,212 | ) | ||||
Net change in cash | (9,974 | ) | (13,254 | ) | ||||
Cash, beginning of period | 49,437 | 60,202 | ||||||
Cash, end of period | $ | 39,463 | $ | 46,948 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes | $ | - | $ | - | ||||
Interest | $ | 15,998 | $ | 16,216 | ||||
NON CASH FINANCING ACTIVITIES: | ||||||||
None |
For the Six Months Ended | ||||||||
June 30, | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (17,566 | ) | $ | (13,351 | ) | ||
Adjustments to reconcile net loss to net cash | ||||||||
Provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 10,993 | 11,654 | ||||||
Changes in operating assets and liabilities: | ||||||||
(Increase) decrease in rent receivable | 3,676 | (3,601 | ) | |||||
Increase in prepaid expense | (2,058 | ) | (3,896 | ) | ||||
Increase in security deposit | (1,822 | ) | - | |||||
(Decrease ) increase in accrued interest | (3,281 | ) | 746 | |||||
Increase in accrued salary | 27,600 | - | ||||||
(Decrease) in accrued liabilities | (1,566 | ) | (5,704 | ) | ||||
(Decrease) in accounts payable | (10,732 | ) | (242 | ) | ||||
Net cash provided by (used in) operating activities | 5,244 | (14,394 | ) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from related party payable | 2,058 | 2,310 | ||||||
Payment of related party payable | (10,835 | ) | (4,000 | ) | ||||
Payment of long term debt | (5,727 | ) | (5,288 | ) | ||||
Net cash (used in) financing activities | (14,504 | ) | (6,978 | ) | ||||
Net change in cash | (9,260 | ) | (21,372 | ) | ||||
Cash, beginning of period | 49,437 | 60,202 | ||||||
Cash, end of period | $ | 40,177 | $ | 38,830 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes | $ | — | $ | — | ||||
Interest | $ | 31,940 | $ | 32,379 |
March 31, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | |||||||||||||
Computer equipment | $ | 5,672 | $ | 5,672 | $ | 5,672 | $ | 5,672 | ||||||||
Furniture and fixtures | 7,777 | 7,777 | 7,777 | 7,777 | ||||||||||||
Leasehold improvements | 4,000 | 4,000 | 4,000 | 4,000 | ||||||||||||
Warehouse units | 861,000 | 861,000 | 861,000 | 861,000 | ||||||||||||
Accumulated amortization and depreciation | (86,389 | ) | (80,892 | ) | (91,885 | ) | (80,892 | ) | ||||||||
Total property and equipment | $ | 792,060 | $ | 797,557 | ||||||||||||
Total fixed assets | $ | 786,564 | $ | 797,557 |
First and Second year interest rate at 7% with 25 year amortization payment at $5,937 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, | ||||||||
2018 | 8,255 | $ | 5,363 | |||||
2019 | 789,774 | 789,774 | ||||||
$ | 798,029 | $ | 795,137 |
Exhibit Number | Description | |
31.1 | ||
32.1 | ||
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: | BY: | /s/ Corey Wiegand |
Corey Wiegand | ||
President |