Cover
Cover | 9 Months Ended |
Sep. 30, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Sep. 30, 2022 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 333-39629 |
Entity Registrant Name | KID CASTLE EDUCATIONAL CORPORATION |
Entity Central Index Key | 0001049011 |
Entity Tax Identification Number | 59-2549529 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 370 Amapola Ave. |
Entity Address, Address Line Two | Suite 200A |
Entity Address, City or Town | Torrance |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90501 |
City Area Code | 310 |
Local Phone Number | 895-1839 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 22,324,706 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 90,190 | $ 601,042 |
Investments - trading securities | 203,902 | 446,050 |
Total Current Assets | 294,092 | 1,047,092 |
Fixed assets - net | 146,663 | 128,704 |
Notes Receivable Entrepreneurship Development | 5,368,358 | 1,658,987 |
Long term Notes Receivable - related parties | 102,000 | 300,000 |
Other Notes Receivable - related parties | 2,691,334 | 2,609,001 |
Long term Investments - related parties | 2,217,059 | 1,846,564 |
Total assets | 10,819,506 | 7,590,348 |
Current Liabilities: | ||
Accrued expenses | 800 | 800 |
Marginal loan payable | 23,664 | |
Total Current Liabilities | 800 | 24,464 |
Long-Term Liabilities: | ||
Notes payable - net of current portion | 1,275,978 | 588,859 |
Line of credit - related party, net of current portion | 5,247,906 | 4,747,906 |
Total Long-Term Liabilities | 6,523,884 | 5,336,765 |
Total Liabilities | 6,524,684 | 5,361,229 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $.00001 par value, 1,000,000 shares authorized, 900,000 issued and outstanding as at September 30, 2022 and December 31, 2021. | 10 | 10 |
Common Stock, $0.00001 par value, 1,000,000,000 shares authorized, 22,324,706 issued and outstanding as at September 30, 2022 and December 31, 2021. | 223 | 223 |
Additional paid in capital | 7,638,427 | 7,638,427 |
Accumulated deficit | (3,343,838) | (5,409,541) |
Minority Interest | 515,379 | 267,494 |
Total Stockholders’ Equity | 4,294,822 | 2,229,119 |
Total Liabilities and Stockholders’ Equity | $ 10,819,506 | $ 7,590,348 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 900,000 | 900,000 |
Preferred stock, shares outstanding | 900,000 | 900,000 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 22,324,706 | 22,324,706 |
Common stock, shares outstanding | 22,324,706 | 22,324,706 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||||
Total Revenue | $ 1,036,461 | $ 1,998,489 | $ 10,906,500 | $ 6,040,683 |
Cost of goods sold: | ||||
Total cost of goods sold | 442,063 | 1,058,853 | 8,493,459 | 4,858,293 |
Gross profit | 594,398 | 939,636 | 2,413,041 | 1,182,390 |
Operating expenses: | ||||
General and administrative | 72,729 | 60,233 | 212,941 | 98,349 |
Professional fees | 27,668 | 40,561 | 135,324 | 135,261 |
Advertising and promotions | 120 | 85 | 1,083 | 1,774 |
Interest expense | 2,095 | 38 | 463 | |
Total operating expenses | 100,517 | 102,974 | 349,386 | 235,847 |
Income from operations | 493,881 | 836,662 | 2,063,655 | 946,543 |
Other Income | ||||
Dividends | 62 | |||
Unrealized gain (loss) | (756,928) | 3,700 | 71 | |
Net Income | $ 493,881 | $ 79,734 | $ 2,067,355 | $ 946,676 |
Earnings (loss) per Share: Basic and Diluted | $ 0.0221 | $ 0.0036 | $ 0.0926 | $ 0.0424 |
Weighted Average Common Shares Outstanding: Basic and Diluted | 22,324,706 | 22,324,706 | 22,324,706 | 22,324,706 |
EDI Interest Income [Member] | ||||
Revenue: | ||||
Total Revenue | $ 36,083 | $ 114,416 | ||
Entrepreneurship Development [Member] | ||||
Revenue: | ||||
Total Revenue | 985,033 | 146,000 | 3,760,033 | 146,000 |
Cost of goods sold: | ||||
Total cost of goods sold | 233,213 | 34,100 | 871,090 | 34,100 |
Investment Property Sales [Member] | ||||
Revenue: | ||||
Total Revenue | 700,385 | |||
Principal Transactions - Net [Member] | ||||
Revenue: | ||||
Total Revenue | 15,345 | 1,852,489 | 7,032,051 | 5,194,298 |
Cost of goods sold: | ||||
Total cost of goods sold | 1,024,753 | 7,622,369 | 4,101,852 | |
Cost Of Sales Property [Member] | ||||
Cost of goods sold: | ||||
Total cost of goods sold | $ 208,850 | $ 722,341 |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Deficit - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Preferred And Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2008 | $ 8,592,138 | $ 259,341 | $ (7,638,660) | $ 1,212,819 | ||
Beginning balance, shares at Dec. 31, 2008 | 25,000,000 | 0 | ||||
Reverse Split in 2009 | (8,590,445) | 7,386,026 | (12,708) | (1,217,127) | ||
Reverse split in 2009, shares | (22,675,294) | |||||
Ending balance, value at Dec. 31, 2018 | 1,683 | 7,645,367 | (7,651,368) | (4,308) | ||
Ending balance, shares at Dec. 31, 2018 | 2,324,706 | 0 | ||||
Common stock issued to settle debt and employee compensation | 200 | 200 | ||||
Common stock issued to settle debt and employee compensation, shares | 20,000,000 | |||||
Preferred stock conversion | 9,000 | 9,000 | ||||
Preferred stock conversion, shares | 900,000,000 | |||||
Preferred shares issued | 10 | 10 | ||||
Preferred shares issued, shares | 100,000 | |||||
Acquisition of business | 303 | 180,746 | 181,049 | |||
Net income | (149,682) | (149,682) | ||||
Ending balance, value at Dec. 31, 2019 | 11,210 | 7,826,113 | (7,801,051) | 36,269 | ||
Ending balance, shares at Dec. 31, 2019 | 922,324,706 | 100,000 | ||||
Preferred shares issued | 13 | 49,840 | 49,852 | |||
Preferred shares issued, shares | 900,000 | |||||
Net income | (82,980) | (82,980) | ||||
Ending balance, value at Dec. 31, 2020 | 11,222 | 7,873,783 | (7,879,875) | 3,141 | ||
Ending balance, shares at Dec. 31, 2020 | 922,324,706 | 1,000,000 | ||||
Net income | 2,206,953 | 2,206,953 | ||||
Common shares cancelled | (10,999) | (9,001) | ||||
Common shares cancelled, shares | (900,000,000) | (100,000) | ||||
Acquisition & Dispositions | (235,356) | 263,381 | 28,025 | |||
Ending balance, value at Dec. 31, 2021 | 223 | 7,638,427 | (5,409,541) | 2,229,119 | ||
Ending balance, shares at Dec. 31, 2021 | 22,324,706 | 900,000 | ||||
Net income | 2,067,355 | 2,067,355 | ||||
Dispositions Adjustment | (1,651) | (1,651) | ||||
Ending balance, value at Sep. 30, 2022 | $ 223 | $ 7,638,427 | $ (3,343,838) | $ 4,294,822 | ||
Ending balance, shares at Sep. 30, 2022 | 22,324,706 | 900,000 |
Statements of Cashflows
Statements of Cashflows - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | ||||||
Net Income (Loss) | $ 493,881 | $ 79,734 | $ 2,067,355 | $ 946,676 | $ 2,206,953 | $ (82,980) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||
Inventory Asset: Trading Securities | 242,148 | 54,110 | ||||
Other Accrued Liabilities | (59,747) | (2,256) | ||||
Depreciation | 46,771 | |||||
Net cash provided by (used in) operating activities | 2,296,527 | 998,530 | ||||
Net Cash Flows from Investing Activities: | ||||||
Real estate investment - net | (46,250) | 664,111 | ||||
Entrepreneurship Development | (3,511,371) | (2,974,133) | ||||
Crypto and Digital Assets | (34,000) | (19,200) | ||||
Long term Investments | (370,494) | (27,271) | ||||
Fixed Assets - other | (30,731) | |||||
Net cash provided by (used in) investing activities | (3,992,846) | (2,356,493) | ||||
Net Cash Flows from Financing Activities | ||||||
Notes payable - related party | 112,119 | 1,382,374 | ||||
Notes payable - Long Term | 575,000 | 192,667 | ||||
Notes payable - Long Term | 500,000 | |||||
Net cash provided by (used in) financing activities | 1,187,119 | 1,575,041 | ||||
Net increase (decrease) in cash: | (509,200) | 217,078 | ||||
Cash at the beginning of the period: | 599,390 | 1,630 | 1,630 | |||
Cash at the end of the period: | $ 90,190 | $ 218,708 | 90,190 | 218,708 | $ 599,390 | $ 1,630 |
Supplemental disclosures of cash flow information Cash paid during the period for: | ||||||
Cash paid for interest | $ 38 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1. NATURE OF OPERATIONS Nature of Business The Company and Nature of Business Kid Castle Educational Corporation, a Delaware corporation, (“Kid Castle,” “the Company,” “We,” “KDCE,” “Us” or “Our’) operates and manages a portfolio of real estate properties, digital assets, and other in-demand properties. Kid Castle engages in rollup and consolidation of real estate, Biopharma and digital economy assets and operations. Kid Castle was the result of a share exchange transaction, commonly referred to as a reverse merger, pursuant to which shareholders of an offshore operating company take control of a U.S. company that has no operations (commonly referred to as a shell company), and the offshore operating company becomes a subsidiary of the U.S. company. In KDCE case, the offshore company was Higoal Developments Ltd., which was the parent company of Kid Castle Internet Technologies Limited and Kid Castle Education Software Development Co. Limited, KDCE’s operating companies that run our English language instruction business. The U.S. or shell company, at the time of the share exchange, was King Ball International Technology Corporation. Kid Castle used to be a Florida corporation until the company voluntarily dissolved its Florida registration with intention to simultaneously incorporate in Delaware and convert into a Delaware corporation. Although the company immediately finalized its registration effort to convert into a Delaware Corporation, the company’s registered agent who was supposed to submit the registration package to the Delaware Secretary of State for certification, failed to make a timely submission. Later in January 2019, when the company realized that the Delaware incorporation/registration package/process was never submitted to the Delaware Secretary of State nor completed in any other way or form, the Company went ahead and resubmitted the required registration package and was then formally re-incorporated in Delaware and convert into a Delaware corporation. Thus, the company was formally incorporated in Delaware and converted into a Delaware Corporation in January 2019. The re-incorporation in Delaware, which occurred in January 2019, has placed at risk, voidable and unenforceable, all and any liabilities that may have accrued, including any material agreements the Company may have executed during the period between March 22, 2011 and January 2019. To the best of our knowledge, no such liabilities that were accrued and no material agreement were entered into by the company during the period between March 22, 2011 and January 2019. In addition, there could be penalties or legal liabilities that may have accrued as a result of conducting business from 2011 to 2019 without properly registering with any State. To the best of our knowledge, as at September 7, 2020, no such penalties or liabilities has accrued to the company accrued as a result of conducting business from 2011 to 2019 without properly registering with any State. However, there is no guarantee that such penalties or liabilities would not accrue or arise in the future. On October 21, 2019, pursuant to a stock purchase agreement dated October 2, 2019, Cannabinoid Biosciences, Inc., a California corporation, purchased one ( 1 one preferred share is convertible 1,000 share of common stocks 97.82 900,000 900,000,000 Following the consummation of the October 21, 2019 transactions, the Company decided to restart filing important information immediately. The Company used the Form 10-12(g) to register its common stock with the SEC. On September 15, 2020, Kid Castle Educational Corporation (the “Company”) entered into a stock purchase agreement with certain corporation related to our President and CEO with respect to the private placement of 900,000 3 100 Similarly, on September 16, 2020, as part of its purchase of unregistered securities from certain corporation related to our President and CEO, the Company, received $ 3.00 1,000,000 100 97 88 On April 21, 2021, the Company sold Cannabinoid Biosciences, Inc. (“CBDX”), a California corporation, to Premier Information Management, Inc. for $ 1 100,000 900,000,000 On December 30, 2021, in exchange for its 87 100 The consolidated financial statements of the Company therefore include the 12 months operating results of the all wholly owned subsidiaries of Alpharidge Capital LLC. (“Alpharidge”), Community Economic Development Capital, LLC. (“CED Capital”), and the balance sheet represent the financial position as at 12/31/2021 of the Company which excludes GiveMePower and its subsidiaries, but Alpharidge Capital LLC and Others subsidiaries in which Kid Castle has a controlling voting interest and entities consolidated under the variable interest entities (“VIE”) provisions of ASC 810, “Consolidation” (“ASC 810”), after elimination of intercompany transactions and accounts. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, in which the Company has a controlling voting interest and entities consolidated under the variable interest entities (“VIE”) provisions of ASC 810, “Consolidation” (“ASC 810”). Inter-company balances and transactions have been eliminated upon consolidation. ASC 810 requires that the investor with the controlling financial interest should consolidate the investee/affiliate. ASC 810-10 requires that an equity interest investor consolidates a VIE when it retains an investment in the entity, is considered a variable interest investor in the entity, and is the primary beneficiary of the entity. An investor in a VIE is a “variable interest beneficiary” when, per an arrangement’s governing documents, the investor will absorb a portion of the VIE’s expected losses or will receive a portion of the entity’s “residual returns.” The variable interest beneficiary retaining a controlling financial interest in the VIE is designated as its “primary beneficiary” and must consolidate the VIE. A variable interest beneficiary retains a “controlling financial interest” in a VIE when that beneficiary retains the power to direct the activities of the VIE that have the greatest influence over the VIE’s economic performance and retains an obligation to absorb the VIE’s significant losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 2. GOING CONCERN Our financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. For the nine months ended September 30, 2022, we reported revenue of $ 9,870,039 3,343,838 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The summary of significant accounting policies is presented to assist in the understanding of the financial statements. These policies conform to accounting principles generally accepted in the United States of America and have been consistently applied. The Company has elected a calendar year of December 31 year-end. Principles of Consolidation The Consolidated Financial Statements include the accounts of Kid Castle Educational Corporation and all of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20 50 50.1 Revenue, Assets and Liabilities of Consolidated Subsidiary and Financial Statement Relationship Kid Castle Educational Corporation is 99.76 COVID-19 Risks, Impacts and Uncertainties COVID-19 Risks, Impacts and Uncertainties —We are subject to the risks arising from COVID-19’s impacts on the residential real estate industry. Our management believes that these impacts, which include but are not limited to the following, could have a significant negative effect on our future financial position, results of operations, and cash flows: (i) prohibitions or limitations on in-person activities associated with residential real estate transactions; (ii) lack of consumer desire for in-person interactions and physical home tours; and (iii) deteriorating economic conditions, such as increased unemployment rates, recessionary conditions, lower yields on individuals’ investment portfolios, and more stringent mortgage financing conditions. In addition, we have considered the impacts and uncertainties of COVID-19 in our use of estimates in preparation of our consolidated financial statements. These estimates include, but are not limited to, likelihood of achieving performance conditions under performance-based equity awards, net realizable value of inventory, and the fair value of reporting units and goodwill for impairment. Since April 2020, following the government lockdown order, we asked all employees to begin to work from their homes and we also reduced the number of hours available to each of our employees by approximately by approximately 75%. These actions taken in response to the economic impact of COVID-19 on our business resulted in a reduction of productivity for the nine months ended September 30, 2022. All cost related to these actions are included in general and administrative expenses, as these costs were determined to be direct and incremental. Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) 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. Cash and Cash Equivalents We maintain cash balances in a non-interest-bearing account that currently does not exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. As of September 30, 2022 and December 31, 2021 we did maintain $ 75,361 601,042 Financial Instruments The estimated fair values for financial instruments were determined at discrete points in time based on relevant market information. These estimates involved uncertainties and could not be determined with precision. The carrying amount of the our accounts payable and accruals, our accruals- related parties and loans – related parties approximate their fair values because of the short-term maturities of these instruments. Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 – Pricing inputs are other than quoted prices in active markets but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of accounts payable and accruals and our accruals- related parties. The carrying amount of the out accounts payable and accruals, accruals- related parties and loans – related parties approximates their fair values because of the short-term maturities of these instruments. The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10: SCHEDULE OF VALUATION OF FINANCIAL INSTRUMENTS Description Level 1 Level 2 Level 3 Investments – trading securities – September 30, 2022 $ 203,902 $ - $ - Investments – trading securities – December 31, 2021 $ 446,050 $ - $ - Investment – Trading Securities All investment securities are classified as trading securities and are carried at fair value in accordance with ASC 320 Investments — Debt and Equity Securities. Investment transactions are recorded on a trade date basis. Realized gains or losses on sales of investments are based on the first-in, first-out or the specific identification method. Realized and unrealized gains or losses on investments are recorded in the statements of operations as realized and unrealized gains or losses as net revenue. All investment securities are held and transacted by the Company’s broker firm. The Company did not hold more than 4.9 All investments that are listed on a securities exchange are valued at their last sales price on the primary securities exchange on which such securities are traded on such date. Securities that are not listed on any exchange but are traded over-the-counter are valued at the mean between the last “bid” and “ask” price for such security on such date. The Company does not have any investment securities for which market quotes are not readily available. The Company’s trading securities are held by a third-party brokerage firm, and composed of publicly traded companies with readily available fair value which are quoted prices in active markets. Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of our membership interests including such person’s immediate families, (ii) our management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with us, or (iv) anyone who can significantly influence our financial and operating decisions. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. During the period under review, the Company paid rent $ 1,967.50 Revenue, Assets and Liabilities of Consolidated Subsidiary and Financial Statement Relationship As at September 30, 2022 Kid Castle Educational Corporation is 97.58 Leases In February 2016, the FASB issued ASU 2016-02, “Leases” that requires for leases longer than one year, a lessee to recognize in the statement of financial condition a right-of-use asset, representing the right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments. The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. The Company has reviewed the new standard and does not expect it to have a material impact to the statement of financial condition or its net capital. Prior to January 1, 2019, the Company accounted for leases under Accounting Standards Codification (ASC) 840, Accounting for Leases. Effective from January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. On February 25, 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. ASC 842 requires that lessees recognize right of use assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. It requires for leases longer than one year, a lessee to recognize in the statement of financial condition a right·of·use asset, representing the right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. ASC 842 supersedes nearly all existing lease accounting guidance under GAAP issued by the Financial Accounting Standards Board (“FASB”) including ASC Topic 840, Leases. The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. The Company does not have operating and financing leases as of September 30, 2022. The adoption of ASC 842 did not materially impact our results of operations, cash flows, or presentation thereof. The Company has reviewed the new standard and does not expect it to have a material impact to the statement of financial condition or its net capital. Income Taxes Under the asset and liability method prescribed within ASC 740, Income Taxes, the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded if necessary, to reduce net deferred tax assets to the amount more likely than not to be realized. Certain prior period deferred tax disclosures were reclassified to conform with current period presentation. ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company’s practice is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in selling and administrative expense. As of September 30, 2022, the Company had no The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. Uncertain Tax Positions We evaluate tax positions in a two-step process. We first determine whether it is more likely than not that a tax position will be sustained upon examination, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We classify gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as long term liabilities in the financial statements. Revenue Recognition The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which requires that five basic steps be followed to recognize revenue: (1) a legally enforceable contract that meets criteria standards as to composition and substance is identified; (2) performance obligations relating to provision of goods or services to the customer are identified; (3) the transaction price, with consideration given to any variable, noncash, or other relevant consideration, is determined; (4) the transaction price is allocated to the performance obligations; and (5) revenue is recognized when control of goods or services is transferred to the customer with consideration given, whether that control happens over time or not. Determination of criteria (3) and (4) are based on our management’s judgments regarding the fixed nature of the selling prices of the products and services delivered and the collectability of those amounts. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded. The Company generates revenue primarily from: (1) the sale of homes/ During the nine months ended September 30, 2022, the Company did recognized revenue of $ 9,870,039 7,032,051 2,775,000 78,333 Entrepreneurship Development Initiative (“EDI”) – Revenue EDI revenue comes from the sale of shell from Alpharidge Capital LLC (“Alpharidge”) list of portfolio companies of custodianship companies. Alpharidge sells these custodianship or portfolio companies to ambitious entrepreneurs who have developed, or is developing viable business plans. While the sale prices differ from one shell to another, terms of payment is the major determinant of the sale-price. All-cash deals are the cheapest at less than $ 250,000 300,000 475,000 2,775,000 78,333 Advertising Costs We expense advertising costs when advertisements occur. During the nine months ended September 30, 2022, the Company did recognized advertising costs 4,063 1,649 Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company maintains cash balances at financial institutions within the United States which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to limits of approximately $ 250,000 Stock Based Compensation The cost of equity instruments issued to non-employees in return in accordance with ASC 505-50 “Equity-Based Payments to Non-Employees” for goods and services is measured by the fair value of the goods or services received or the measurement date fair value of the equity instruments issued, whichever is the more readily determinable. Measurement date for non-employees is the earlier of performance commitment date or the completion of services. The cost of employee services received in exchange for equity instruments is based on the grant date fair value of the equity instruments issued in accordance with ASC 718 “Compensation - Stock Compensation.” |
COMMITMENTS & CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS & CONTINGENCIES | NOTE 4. COMMITMENTS & CONTINGENCIES Legal Proceedings We were not subject to any legal proceedings as of September 30, 2022 and to the best of our knowledge, no legal proceedings are pending or threatened. The Company’s principal executive office is located at 370 Amapola Ave., Suite 200A, Torrance, CA 90501. The space is a shared office space, which at the current time is suitable for the conduct of our business. The Company has no real property and do not presently owned any interests in real estate. As at December 31, 2021, the Company has spent a total of $ 1,967.50 From time to time, the Company may be involved in certain legal actions and claims arising in the normal course of business. Management is of the opinion that such matters will be resolved without material effect on the Company’s financial condition or results of operations. Contractual Obligations We were not subject to any contractual obligations as at September 30, 2022. |
NET PRINCIPAL TRANSACTIONS INCO
NET PRINCIPAL TRANSACTIONS INCOME | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
NET PRINCIPAL TRANSACTIONS INCOME | NOTE 5. NET PRINCIPAL TRANSACTIONS INCOME The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The Company’s net income from principal transactions primarily consists of revenues from sales of trading securities less original purchase cost (cost of sales). Net principal transactions income primarily consists of income from trading securities earned upon completion of trade, net of any trading fees. A trading is completed when earned and recognized at a point in time, on a trade-date basis, as the Company executes trades. Net trading revenue consisted of the following: SCHEDULE OF NET TRADING REVENUE January 1, 2022 to September 30, 2022 Total Revenue from sales of securities $ 7,032,051 Cost of securities (7,622,369 ) Net loss from principal transactions $ (590,318 ) |
SALES _ INVESTMENT PROPERTY
SALES – INVESTMENT PROPERTY | 9 Months Ended |
Sep. 30, 2022 | |
Sales Investment Property | |
SALES – INVESTMENT PROPERTY | NOTE 6. SALES – INVESTMENT PROPERTY Sales and other disposition of properties from Real Estate Investments holdings: Dispositions Below is the schedule of the details of the Real Estate Investments sales transactions during the period: SCHEDULE OF REAL ESTATE INVESTMENTS SALES 30-Sep-22 30-Sep-21 Description Sales - Investment property $ - $ 700,385 Cost: Investment property sold (722,341 ) Total costs (722,341 ) Gain on real estate investment sales $ - $ (21,956 ) |
LINE OF CREDIT _ LOANS - RELATE
LINE OF CREDIT / LOANS - RELATED PARTIES | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT / LOANS - RELATED PARTIES | NOTE 7. LINE OF CREDIT / LOANS - RELATED PARTIES The Company considers its founders, managing directors, employees, significant shareholders, and the portfolio Companies to be affiliates. In addition, companies controlled by any of the above named is also classified as affiliates. Line of credit from related party consisted of the following: SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY September 30, 2022 December 31, 2021 September 2019 (line of credit) - Line of credit with maturity date of September 14, 2022 0 $ 0 $ 0 May 20, 2020 (line of credit) Line of credit with maturity date of May 4, 2025 0 1,275,978 588,859 Total Line of credit - related party 1,275,978 588,859 Less: current portion - - Total Long-term Line of credit - related party $ 1,275,978 $ 588,859 Goldstein Franklin, Inc. - $190,000 line of credit On February 28, 2020, the Company amended its line of credit agreement to increase it to the amount of $ 190,000 September 14, 2022 0 0 Los Angeles Community Capital - $1,500,000 line of credit On May 5, 2020, the Company amended its line of credit agreement to increase it to the amount of $ 1,500,000 May 4, 2025 0 1,275,978 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 8. EARNINGS (LOSS) PER SHARE Net Loss per Share Calculation: Basic net loss per common share (“EPS”) is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding for the period. Dilutive earnings per share include the effect of any potentially dilutive debt or equity under the treasury stock method, if including such instruments is dilutive, assuming all dilutive potential common shares were issued. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. The Company’s diluted earnings (loss) per share is the same as the basic earnings/loss per share for the period January 1, 2022 to September 30, 2022, as there are no potential shares outstanding that would have a dilutive effect. SCHEDULE OF EARNINGS (LOSS) PER SHARE Period ended September 30, 2022 Period ended September 30, 2021 Net income $ 2,067,355 $ 946,676 Adjusted Net income attribution to stockholders $ 2,067,355 $ 946,676 Weighted-average shares of common stock outstanding Basic and Diluted 22,324,706 22,324,706 Net income per share Basic and Diluted $ 0.0926 $ 0.0424 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9. INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A full valuation allowance is established against all net deferred tax assets as of September 30, 2022 and December 31, 2021 based on estimates of recoverability. While the Company has optimistic plans for its business strategy, it determined that such a valuation allowance was necessary given the current and expected near term losses and the uncertainty with respect to its ability to generate sufficient profits from its business model. We did not provide any current or deferred US federal income tax provision or benefit for any of the periods presented in these financial statements because we have accumulated substantial operating losses over the years. When it is more likely than not, that a tax asset cannot be realized through future income, we must record an allowance against any future potential future tax benefit. We have provided a full valuation allowance against the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forward periods. The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements as of September 30, 2022 and December 31, 2021 as defined under ASC 740, “Accounting for Income Taxes.” We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of the accumulated deficit on the balance sheet. A reconciliation of the differences between the effective and statutory income tax rates for the period ended September 30, 2022 and December 31, 2021: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Percent 30-Sep-22 31-Dec-21 Federal statutory rates 21.0 % $ (702,206 ) $ (1,136,004 ) State income taxes 5.0 % (167,192 ) (270,477 ) Permanent differences -0.5 % 16,192 27,048 Valuation allowance against net deferred tax assets -25.5 % 852,679 1,379,433 Effective rate 0 % $ - $ - At September 30, 2022 and December 31, 2021, the significant components of the deferred tax assets are summarized below: SCHEDULE OF DEFERRED TAX ASSETS 30-Sep-22 31-Dec-21 Deferred income tax asset Net operation loss carryforwards (3,343,838 ) (5,409,541 ) Total deferred income tax asset 852,679 1,406,481 Less: valuation allowance (852,679 ) (1,406,481 ) Total deferred income tax asset $ - $ - The Company has recorded as of September 30, 2022 and December 31, 2021, a valuation allowance of $ 852,679 1,406,481 The valuation allowance $ 852,679 537,083 1,406,481 2,067,355 The Company conducts an analysis of its tax positions and has concluded that it has no The Company has net operating loss carry-forwards of approximately $ (3,343,838) 2033 |
RECENTLY ACCOUNTING PRONOUNCEME
RECENTLY ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ACCOUNTING PRONOUNCEMENTS | NOTE 10. RECENTLY ACCOUNTING PRONOUNCEMENTS Recently Issued Accounting Standards ASU 2019-12 — In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019- 12, Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740, Income Taxes. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will be effective for the Company’s fiscal year beginning October 1, 2021, with early adoption permitted. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The Company does not expect this ASU to have a material impact on its condensed consolidated financial statements. ASU 2016-13 — In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Financial Instruments Targeted Transition Relief In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements Fair Value Measurements In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract Intangibles-Goodwill and Other-Internal-Use Software In August 2014, the FASB issued ASU 2014-15 on “ Presentation of Financial Statements Going Concern Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2013, the FASB issued ASU No. 2013-01, “ Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. Disclosures about Offsetting Assets and Liabilities In February 2013, the FASB issued ASU No. 2013-02, “ Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income In February 2013, the Financial Accounting Standards Board, or FASB, issued ASU No. 2013-04, “ Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date. In March 2013, the FASB issued ASU No. 2013-05, “ Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity In March 2013, the FASB issued ASU 2013-07, “ Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. We have reviewed all the recently issued, but not yet effective, accounting pronouncements. Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. |
INVESTMENT SECURITIES (TRADING)
INVESTMENT SECURITIES (TRADING) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
INVESTMENT SECURITIES (TRADING) | NOTE 11. INVESTMENT SECURITIES (TRADING) The Company applied the fair value accounting treatment for trading securities per ASC 320, with unrealized gains and losses recorded in net income each period. Debt securities classified as trading should be measured at fair value in the currency in which the debt securities are denominated and remeasured into the investor’s functional currency using the spot exchange rate at the balance sheet date. Trading securities are treated using the fair value method, whereby the value of the securities on the company’s balance sheet is equivalent to their current market value. These securities will be recorded in the current assets section under the Investment Securities account and will be offset in the shareholder’s equity section under the unrealized proceeds from sale of short-term investments” account. The Short Term Investments account amount represents the current market value of the securities, and the “Unrealized Proceeds From Sale of Short Term Investments” account represents the cash proceeds that the company would receive if it were to sell the investments at the end of the specified accounting period. |
REAL ESTATE INVESTMENTS
REAL ESTATE INVESTMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE INVESTMENTS | NOTE 12. REAL ESTATE INVESTMENTS Current Holdings of Real Estate Investments (Inventory): As of September 30, 2022, the Company has $ 0.00 |
MARGINAL LOAN PAYABLE
MARGINAL LOAN PAYABLE | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
MARGINAL LOAN PAYABLE | NOTE 13. MARGINAL LOAN PAYABLE The Company’s subsidiary, Alpharidge Capital LLC. has a marginal loan agreement as part of its new trading account process with brokerage firms to continue the purchase of securities and to fund the underfunded balance. This account has balances of $ 0.00 23,664 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 14. RELATED PARTY TRANSACTIONS The managing member, CEO and director of the Company is involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, he may face a conflict in selecting between the Company and his other business interests. The Company is formulating a policy for the resolution of such conflicts. The Company had the following related party payable transactions: ● Line of Credit – On September 15, 2019, the Company entered into a line of credit agreement in the amount of $ 41,200 February 15, 2020 190,000 September 14, 2022 0 ● Line of credit - On May 5, 2020, the Company entered into a line of credit agreement in the amount of $ 1,500,000 May 4, 2025 0 688,859 ● Long-term liabilities – Effective December 31, 2020, Alpharidge Capital LLC entered a proprietary model licensing agreement, pursuant it would pay certain percent of such revenue generated by designated activities to Poverty Solutions Inc. As at September 30, 2022, pursuant to the agreement, the Company has accrued a total of $ 4,747,906 44.79 The Company had the following related party notes receivable transactions: ● Mortgage Note 2.2 ● Mortgage Note 314,000 ● Long term Notes Receivable – related parties: 100,000 200,000 The Company had the following related party investment transactions: ● Long term Investment – related parties: 2,069,388 The Company does not own any property. It currently shares a leased office with two other organizations that are affiliated to its principal shareholder at 370 Amapola Ave., Suite 200A, Torrance, California 90501. Its principal shareholder and seasonal staff use this location. The approximate cost of the shared office space varies between $ 650 850 |
MERGERS AND ACQUISITIONS
MERGERS AND ACQUISITIONS | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
MERGERS AND ACQUISITIONS | NOTE 15. MERGERS AND ACQUISITIONS On September 15, 2020, Kid Castle Educational Corporation (the “Company”) entered into a stock purchase agreement with certain corporation related to our President and CEO with respect to the private placement of 900,000 3 100 Similarly, on September 16, 2020, as part of its purchase of unregistered securities from certain corporation related to our President and CEO, the Company, received $ 3.00 1,000,000 100 97 88 the above acquisitions were under the control of the same person, the transaction was classified as “common control transaction and therefore fall under “Transactions Between Entities Under Common Control” subsections of ASC 805-50. This transaction was therefore accounted for under the Consolidation Method using the variable interest entity (VIE) model wherein we consolidate all investees operating results if we expect to assume more than 50% of another entity’s expected losses or gains. On April 21, 2021, the Company sold Cannabinoid Biosciences, Inc. (“CBDX”), a California corporation, to Premier Information Management, Inc. for $ 1 100,000 900,000,000 On December 30, 2021, in exchange for the 87 |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 16. SHAREHOLDERS’ EQUITY Preferred Stock As of September 30, 2022 and December 31, 2021 we were authorized to issue 1,000,000 0.00001 The Company has 900,000 Common Stock The Company is authorized to issue 1,000,000,000 0.00001 December 31, Minority Interest Kid Castle Educational Corporation is 88 88 Nine months ended September 30, 2022 The Company has issued 22,324,706 22,324,706 December 31, Warrants No December 31, Stock Options The Company has never adopted a stock option plan and has never issued any stock options. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17. SUBSEQUENT EVENTS Pursuant to ASC 855-10, the Company evaluated subsequent events after September 30, 2022 through November 12, 2022, the date these financial statements were issued and has determined there have been no subsequent events for which disclosure is required. The Company did not have any material recognizable subsequent events that required disclosure in these financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The summary of significant accounting policies is presented to assist in the understanding of the financial statements. These policies conform to accounting principles generally accepted in the United States of America and have been consistently applied. The Company has elected a calendar year of December 31 year-end. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Kid Castle Educational Corporation and all of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20 50 50.1 |
Revenue, Assets and Liabilities of Consolidated Subsidiary and Financial Statement Relationship | Revenue, Assets and Liabilities of Consolidated Subsidiary and Financial Statement Relationship Kid Castle Educational Corporation is 99.76 |
COVID-19 Risks, Impacts and Uncertainties | COVID-19 Risks, Impacts and Uncertainties COVID-19 Risks, Impacts and Uncertainties —We are subject to the risks arising from COVID-19’s impacts on the residential real estate industry. Our management believes that these impacts, which include but are not limited to the following, could have a significant negative effect on our future financial position, results of operations, and cash flows: (i) prohibitions or limitations on in-person activities associated with residential real estate transactions; (ii) lack of consumer desire for in-person interactions and physical home tours; and (iii) deteriorating economic conditions, such as increased unemployment rates, recessionary conditions, lower yields on individuals’ investment portfolios, and more stringent mortgage financing conditions. In addition, we have considered the impacts and uncertainties of COVID-19 in our use of estimates in preparation of our consolidated financial statements. These estimates include, but are not limited to, likelihood of achieving performance conditions under performance-based equity awards, net realizable value of inventory, and the fair value of reporting units and goodwill for impairment. Since April 2020, following the government lockdown order, we asked all employees to begin to work from their homes and we also reduced the number of hours available to each of our employees by approximately by approximately 75%. These actions taken in response to the economic impact of COVID-19 on our business resulted in a reduction of productivity for the nine months ended September 30, 2022. All cost related to these actions are included in general and administrative expenses, as these costs were determined to be direct and incremental. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents We maintain cash balances in a non-interest-bearing account that currently does not exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. As of September 30, 2022 and December 31, 2021 we did maintain $ 75,361 601,042 |
Financial Instruments | Financial Instruments The estimated fair values for financial instruments were determined at discrete points in time based on relevant market information. These estimates involved uncertainties and could not be determined with precision. The carrying amount of the our accounts payable and accruals, our accruals- related parties and loans – related parties approximate their fair values because of the short-term maturities of these instruments. |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 – Pricing inputs are other than quoted prices in active markets but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of accounts payable and accruals and our accruals- related parties. The carrying amount of the out accounts payable and accruals, accruals- related parties and loans – related parties approximates their fair values because of the short-term maturities of these instruments. The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10: SCHEDULE OF VALUATION OF FINANCIAL INSTRUMENTS Description Level 1 Level 2 Level 3 Investments – trading securities – September 30, 2022 $ 203,902 $ - $ - Investments – trading securities – December 31, 2021 $ 446,050 $ - $ - |
Investment – Trading Securities | Investment – Trading Securities All investment securities are classified as trading securities and are carried at fair value in accordance with ASC 320 Investments — Debt and Equity Securities. Investment transactions are recorded on a trade date basis. Realized gains or losses on sales of investments are based on the first-in, first-out or the specific identification method. Realized and unrealized gains or losses on investments are recorded in the statements of operations as realized and unrealized gains or losses as net revenue. All investment securities are held and transacted by the Company’s broker firm. The Company did not hold more than 4.9 All investments that are listed on a securities exchange are valued at their last sales price on the primary securities exchange on which such securities are traded on such date. Securities that are not listed on any exchange but are traded over-the-counter are valued at the mean between the last “bid” and “ask” price for such security on such date. The Company does not have any investment securities for which market quotes are not readily available. The Company’s trading securities are held by a third-party brokerage firm, and composed of publicly traded companies with readily available fair value which are quoted prices in active markets. |
Related Party Transactions | Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of our membership interests including such person’s immediate families, (ii) our management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with us, or (iv) anyone who can significantly influence our financial and operating decisions. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. During the period under review, the Company paid rent $ 1,967.50 |
Revenue, Assets and Liabilities of Consolidated Subsidiary and Financial Statement Relationship | Revenue, Assets and Liabilities of Consolidated Subsidiary and Financial Statement Relationship As at September 30, 2022 Kid Castle Educational Corporation is 97.58 |
Leases | Leases In February 2016, the FASB issued ASU 2016-02, “Leases” that requires for leases longer than one year, a lessee to recognize in the statement of financial condition a right-of-use asset, representing the right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments. The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. The Company has reviewed the new standard and does not expect it to have a material impact to the statement of financial condition or its net capital. Prior to January 1, 2019, the Company accounted for leases under Accounting Standards Codification (ASC) 840, Accounting for Leases. Effective from January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. On February 25, 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. ASC 842 requires that lessees recognize right of use assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. It requires for leases longer than one year, a lessee to recognize in the statement of financial condition a right·of·use asset, representing the right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. ASC 842 supersedes nearly all existing lease accounting guidance under GAAP issued by the Financial Accounting Standards Board (“FASB”) including ASC Topic 840, Leases. The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. The Company does not have operating and financing leases as of September 30, 2022. The adoption of ASC 842 did not materially impact our results of operations, cash flows, or presentation thereof. The Company has reviewed the new standard and does not expect it to have a material impact to the statement of financial condition or its net capital. |
Income Taxes | Income Taxes Under the asset and liability method prescribed within ASC 740, Income Taxes, the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded if necessary, to reduce net deferred tax assets to the amount more likely than not to be realized. Certain prior period deferred tax disclosures were reclassified to conform with current period presentation. ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company’s practice is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in selling and administrative expense. As of September 30, 2022, the Company had no The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. |
Uncertain Tax Positions | Uncertain Tax Positions We evaluate tax positions in a two-step process. We first determine whether it is more likely than not that a tax position will be sustained upon examination, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We classify gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as long term liabilities in the financial statements. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which requires that five basic steps be followed to recognize revenue: (1) a legally enforceable contract that meets criteria standards as to composition and substance is identified; (2) performance obligations relating to provision of goods or services to the customer are identified; (3) the transaction price, with consideration given to any variable, noncash, or other relevant consideration, is determined; (4) the transaction price is allocated to the performance obligations; and (5) revenue is recognized when control of goods or services is transferred to the customer with consideration given, whether that control happens over time or not. Determination of criteria (3) and (4) are based on our management’s judgments regarding the fixed nature of the selling prices of the products and services delivered and the collectability of those amounts. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded. The Company generates revenue primarily from: (1) the sale of homes/ During the nine months ended September 30, 2022, the Company did recognized revenue of $ 9,870,039 7,032,051 2,775,000 78,333 |
Entrepreneurship Development Initiative (“EDI”) – Revenue | Entrepreneurship Development Initiative (“EDI”) – Revenue EDI revenue comes from the sale of shell from Alpharidge Capital LLC (“Alpharidge”) list of portfolio companies of custodianship companies. Alpharidge sells these custodianship or portfolio companies to ambitious entrepreneurs who have developed, or is developing viable business plans. While the sale prices differ from one shell to another, terms of payment is the major determinant of the sale-price. All-cash deals are the cheapest at less than $ 250,000 300,000 475,000 2,775,000 78,333 |
Advertising Costs | Advertising Costs We expense advertising costs when advertisements occur. During the nine months ended September 30, 2022, the Company did recognized advertising costs 4,063 1,649 |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company maintains cash balances at financial institutions within the United States which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to limits of approximately $ 250,000 |
Stock Based Compensation | Stock Based Compensation The cost of equity instruments issued to non-employees in return in accordance with ASC 505-50 “Equity-Based Payments to Non-Employees” for goods and services is measured by the fair value of the goods or services received or the measurement date fair value of the equity instruments issued, whichever is the more readily determinable. Measurement date for non-employees is the earlier of performance commitment date or the completion of services. The cost of employee services received in exchange for equity instruments is based on the grant date fair value of the equity instruments issued in accordance with ASC 718 “Compensation - Stock Compensation.” |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF VALUATION OF FINANCIAL INSTRUMENTS | The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10: SCHEDULE OF VALUATION OF FINANCIAL INSTRUMENTS Description Level 1 Level 2 Level 3 Investments – trading securities – September 30, 2022 $ 203,902 $ - $ - Investments – trading securities – December 31, 2021 $ 446,050 $ - $ - |
NET PRINCIPAL TRANSACTIONS IN_2
NET PRINCIPAL TRANSACTIONS INCOME (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF NET TRADING REVENUE | Net trading revenue consisted of the following: SCHEDULE OF NET TRADING REVENUE January 1, 2022 to September 30, 2022 Total Revenue from sales of securities $ 7,032,051 Cost of securities (7,622,369 ) Net loss from principal transactions $ (590,318 ) |
SALES _ INVESTMENT PROPERTY (Ta
SALES – INVESTMENT PROPERTY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Sales Investment Property | |
SCHEDULE OF REAL ESTATE INVESTMENTS SALES | Below is the schedule of the details of the Real Estate Investments sales transactions during the period: SCHEDULE OF REAL ESTATE INVESTMENTS SALES 30-Sep-22 30-Sep-21 Description Sales - Investment property $ - $ 700,385 Cost: Investment property sold (722,341 ) Total costs (722,341 ) Gain on real estate investment sales $ - $ (21,956 ) |
LINE OF CREDIT _ LOANS - RELA_2
LINE OF CREDIT / LOANS - RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY | Line of credit from related party consisted of the following: SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY September 30, 2022 December 31, 2021 September 2019 (line of credit) - Line of credit with maturity date of September 14, 2022 0 $ 0 $ 0 May 20, 2020 (line of credit) Line of credit with maturity date of May 4, 2025 0 1,275,978 588,859 Total Line of credit - related party 1,275,978 588,859 Less: current portion - - Total Long-term Line of credit - related party $ 1,275,978 $ 588,859 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF EARNINGS (LOSS) PER SHARE | SCHEDULE OF EARNINGS (LOSS) PER SHARE Period ended September 30, 2022 Period ended September 30, 2021 Net income $ 2,067,355 $ 946,676 Adjusted Net income attribution to stockholders $ 2,067,355 $ 946,676 Weighted-average shares of common stock outstanding Basic and Diluted 22,324,706 22,324,706 Net income per share Basic and Diluted $ 0.0926 $ 0.0424 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | A reconciliation of the differences between the effective and statutory income tax rates for the period ended September 30, 2022 and December 31, 2021: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Percent 30-Sep-22 31-Dec-21 Federal statutory rates 21.0 % $ (702,206 ) $ (1,136,004 ) State income taxes 5.0 % (167,192 ) (270,477 ) Permanent differences -0.5 % 16,192 27,048 Valuation allowance against net deferred tax assets -25.5 % 852,679 1,379,433 Effective rate 0 % $ - $ - |
SCHEDULE OF DEFERRED TAX ASSETS | At September 30, 2022 and December 31, 2021, the significant components of the deferred tax assets are summarized below: SCHEDULE OF DEFERRED TAX ASSETS 30-Sep-22 31-Dec-21 Deferred income tax asset Net operation loss carryforwards (3,343,838 ) (5,409,541 ) Total deferred income tax asset 852,679 1,406,481 Less: valuation allowance (852,679 ) (1,406,481 ) Total deferred income tax asset $ - $ - |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) - USD ($) | Apr. 21, 2021 | Sep. 16, 2020 | Sep. 15, 2020 | Oct. 21, 2019 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2021 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Preferred stock, shares outstanding | 900,000 | 900,000 | |||||
Cannabinoid Biosciences Inc. [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Proceeds from sale of subsidiaries | $ 1 | ||||||
President and CEO [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Percentage after sale transaction | 100% | ||||||
President and CEO [Member] | Private Placement [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Number of shares issued | 900,000 | ||||||
Number of shares issued, value | $ 3 | ||||||
Preferred Stock [Member] | Cannabinoid Biosciences Inc. [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Shares returned during period, shares | 100,000 | ||||||
Preferred Stock [Member] | President and CEO [Member] | Unregistered Securities [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Number of shares issued | 1,000,000 | ||||||
Number of shares issued, value | $ 3 | ||||||
Common Stock [Member] | Cannabinoid Biosciences Inc. [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Shares returned during period, shares | 900,000,000 | ||||||
Cannabinoid Biosciences Inc. [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Ownership percentage | 97% | 97.82% | |||||
Cannabinoid Biosciences Inc. [Member] | Preferred Stock [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Preferred stock, shares outstanding | 1,000,000 | ||||||
Preferred stock, conversion, description | one preferred share is convertible 1,000 share of common stocks | ||||||
Conversion of stock, shares converted | 900,000 | ||||||
Cannabinoid Biosciences Inc. [Member] | Common Stock [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Conversion of stock, shares issued | 900,000,000 | ||||||
Economic Development Capital LLC [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Ownership percentage | 100% | ||||||
GiveMe Power Corporation [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Ownership percentage | 88% | 87% | |||||
Alpharidge Capital LLC [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Ownership percentage | 100% |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Revenue | $ 9,870,039 | |
Accumulated deficit | $ 3,343,838 | $ 5,409,541 |
SCHEDULE OF VALUATION OF FINANC
SCHEDULE OF VALUATION OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Investment trading securities | $ 203,902 | $ 446,050 |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investment trading securities | 203,902 | 446,050 |
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investment trading securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investment trading securities |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Cash deals | $ 75,361 | $ 75,361 | $ 601,042 | ||
Payment for rent | 1,967.50 | $ 1,967.50 | |||
Income taxes accrued interest or penalties | 0 | 0 | |||
Revenue | 9,870,039 | ||||
Revenue | 1,036,461 | $ 1,998,489 | 10,906,500 | $ 6,040,683 | |
Advertising expense | 4,063 | 1,649 | |||
Cash FDIC insured amount | 250,000 | 250,000 | |||
Entrepreneurship Development [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Revenue | 2,775,000 | ||||
Interest income other | 78,333 | ||||
Entrepreneurship Development [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cash deals | 250,000 | 250,000 | |||
Principal Transactions - Net [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Revenue | 15,345 | 1,852,489 | 7,032,051 | 5,194,298 | |
Entrepreneurship Development [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Revenue | 2,775,000 | ||||
Revenue | 985,033 | 146,000 | 3,760,033 | 146,000 | |
EDI Interest Income [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Revenue | 78,333 | ||||
Revenue | $ 36,083 | $ 114,416 | |||
Equity Method Investment Interest [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Ownership percentage | 50.10% | 50.10% | |||
Kid Castle Educational Corporation [Member] | Video River Networks Inc. [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Ownership percentage | 99.76% | 99.76% | |||
Video River Networks Inc. [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Ownership percentage | 97.58% | 97.58% | |||
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Payment for rent | $ 650 | ||||
Minimum [Member] | Entrepreneurship Development [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Convertible note payable | $ 300,000 | $ 300,000 | |||
Minimum [Member] | Equity Method Investment Interest [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Ownership percentage | 20% | 20% | |||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Payment for rent | $ 850 | ||||
Maximum [Member] | Entrepreneurship Development [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Convertible note payable | $ 475,000 | $ 475,000 | |||
Maximum [Member] | Equity Method Investment Interest [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Ownership percentage | 50% | 50% | |||
Maximum [Member] | Public Companies [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Ownership percentage | 490% | 490% |
COMMITMENTS & CONTINGENCIES (De
COMMITMENTS & CONTINGENCIES (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $ 1,967.50 | $ 1,967.50 |
SCHEDULE OF NET TRADING REVENUE
SCHEDULE OF NET TRADING REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from sales of securities | $ 1,036,461 | $ 1,998,489 | $ 10,906,500 | $ 6,040,683 |
Cost of securities | (442,063) | (1,058,853) | (8,493,459) | (4,858,293) |
Principal Transactions - Net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from sales of securities | $ 15,345 | 1,852,489 | 7,032,051 | 5,194,298 |
Cost of securities | $ (1,024,753) | (7,622,369) | $ (4,101,852) | |
Net loss from principal transactions | $ (590,318) |
SCHEDULE OF REAL ESTATE INVESTM
SCHEDULE OF REAL ESTATE INVESTMENTS SALES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Total Revenue | $ 1,036,461 | $ 1,998,489 | $ 10,906,500 | $ 6,040,683 |
Investment property sold | $ (442,063) | $ (1,058,853) | (8,493,459) | (4,858,293) |
Real Estate Sales Property [Member] | ||||
Total Revenue | 700,385 | |||
Investment property sold | (722,341) | |||
Total costs | (722,341) | |||
Gain on real estate investment sales | $ (21,956) |
SCHEDULE OF LINE OF CREDIT FROM
SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Total Line of credit - related party | $ 1,275,978 | $ 588,859 |
Less: current portion | ||
Total Long-term Line of credit - related party | 1,275,978 | 588,859 |
September 2019 (Line of credit) [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Line of credit - related party | 0 | 0 |
May 20, 2020 (Line of credit) [Member] | ||
Line of Credit Facility [Line Items] | ||
Total Line of credit - related party | $ 1,275,978 | $ 588,859 |
SCHEDULE OF LINE OF CREDIT FR_2
SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY (Details) (Parenthetical) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
September 2019 (Line of credit) [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maturity date | Sep. 14, 2022 | Sep. 14, 2022 |
Line of credit, interest rate | 0% | 0% |
May 20, 2020 (Line of credit) [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maturity date | May 04, 2025 | May 04, 2025 |
Line of credit, interest rate | 0% | 0% |
LINE OF CREDIT _ LOANS - RELA_3
LINE OF CREDIT / LOANS - RELATED PARTIES (Details Narrative) - Line of Credit Agreement [Member] - USD ($) | May 05, 2020 | Feb. 28, 2020 | Sep. 30, 2022 |
Goldstein Franklin, Inc. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Line of credit | $ 190,000 | $ 0 | |
Line of credit, maturity date | Sep. 14, 2022 | ||
Line of credit, interest rate | 0% | ||
Los Angeles Community Capital [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Line of credit | $ 1,500,000 | ||
Line of credit, maturity date | May 04, 2025 | ||
Line of credit, interest rate | 0% | ||
Unused line of credit | $ 1,275,978 |
SCHEDULE OF EARNINGS (LOSS) PER
SCHEDULE OF EARNINGS (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||||||
Net income | $ 493,881 | $ 79,734 | $ 2,067,355 | $ 946,676 | $ 2,206,953 | $ (82,980) | $ (149,682) |
Adjusted Net income attribution to stockholders | $ 2,067,355 | $ 946,676 | |||||
Weighted-average shares of common stock outstanding | |||||||
Basic and Diluted | 22,324,706 | 22,324,706 | 22,324,706 | 22,324,706 | |||
Net income per share | |||||||
Basic and Diluted | $ 0.0221 | $ 0.0036 | $ 0.0926 | $ 0.0424 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rates, percent | 21% | |
Federal statutory rates | $ (702,206) | $ (1,136,004) |
State income taxes, percent | 5% | |
State income taxes | $ (167,192) | (270,477) |
Permanent differences, percent | (0.50%) | |
Permanent differences | $ 16,192 | 27,048 |
Valuation allowance against net deferred tax assets, percent | (25.50%) | |
Valuation allowance against net deferred tax assets | $ 852,679 | 1,379,433 |
Effective Income Tax Rate Reconciliation, Percent | 0% | |
Effective rate |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Net operation loss carryforwards | $ (3,343,838) | $ (5,409,541) |
Total deferred income tax asset | 852,679 | 1,406,481 |
Less: valuation allowance | (852,679) | (1,406,481) |
Total deferred income tax asset |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||||
Deferred tax assets, valuation allowance | $ 852,679 | $ 852,679 | $ 1,406,481 | ||||
Deferred tax decrease change in valuation allowance | 537,083 | ||||||
Income loss | 493,881 | $ 79,734 | 2,067,355 | $ 946,676 | 2,206,953 | $ (82,980) | $ (149,682) |
Uncertain tax positions | 0 | 0 | $ 0 | ||||
Operating loss carryforwards | $ (3,343,838) | $ (3,343,838) | |||||
Operating loss carryforwards, expiration year | 2033 |
REAL ESTATE INVESTMENTS (Detail
REAL ESTATE INVESTMENTS (Details Narrative) | Sep. 30, 2022 USD ($) |
Real Estate [Abstract] | |
Real estate investment | $ 0 |
MARGINAL LOAN PAYABLE (Details
MARGINAL LOAN PAYABLE (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Debt Disclosure [Abstract] | |||
Marginal loan payable | $ 23,664 | $ 23,664 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
May 05, 2020 | Sep. 15, 2019 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2021 | Nov. 12, 2021 | Oct. 12, 2021 | |
Long term investments - related parties | $ 2,069,388 | |||||||
Payments for rent | 1,967.50 | $ 1,967.50 | ||||||
Minimum [Member] | ||||||||
Payments for rent | 650 | |||||||
Maximum [Member] | ||||||||
Payments for rent | 850 | |||||||
Alpharidge Capital LLC [Member] | ||||||||
Ownership percentage | 100% | |||||||
Mr. Frank I Igwealor [Member] | ||||||||
Related party notes receivables | $ 314,000 | $ 2,200,000 | ||||||
Two Companies Controlled by Mr. Frank I Igwealor [Member] | ||||||||
Related party notes receivables, non-current | 200,000 | $ 100,000 | ||||||
Line of Credit Agreement [Member] | Goldstein Franklin, Inc. [Member] | ||||||||
Line of credit | $ 41,200 | |||||||
Line of credit maturity date | Feb. 15, 2020 | |||||||
Line of Credit Agreement [Member] | Los Angeles Community Capital [Member] | ||||||||
Line of credit | $ 1,500,000 | |||||||
Line of credit maturity date | May 04, 2025 | |||||||
Line of credit interest rate | 0% | |||||||
Proceeds from lines of credit | $ 688,859 | |||||||
Amended Line of Credit Agreement [Member] | Goldstein Franklin, Inc. [Member] | ||||||||
Line of credit | $ 190,000 | |||||||
Line of credit maturity date | Sep. 14, 2022 | |||||||
Line of credit interest rate | 0% | |||||||
Proprietary Model Licensing Agreement [Member] | Alpharidge Capital LLC [Member] | ||||||||
Long term liability | $ 4,747,906 | |||||||
Ownership percentage | 44.79% |
MERGERS AND ACQUISITIONS (Detai
MERGERS AND ACQUISITIONS (Details Narrative) - USD ($) | Apr. 21, 2021 | Sep. 16, 2020 | Sep. 15, 2020 | Dec. 30, 2021 | Oct. 21, 2019 |
Cannabinoid Biosciences Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Proceeds from sale of subsidiaries | $ 1 | ||||
Economic Development Capital LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 100% | ||||
Cannabinoid Biosciences Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 97% | 97.82% | |||
GiveMe Power Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 88% | 87% | |||
Preferred Stock [Member] | Cannabinoid Biosciences Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Shares returned during period, shares | 100,000 | ||||
Common Stock [Member] | Cannabinoid Biosciences Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Shares returned during period, shares | 900,000,000 | ||||
President and CEO [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage after sale transaction | 100% | ||||
President and CEO [Member] | Private Placement [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued | 900,000 | ||||
Number of shares issued, value | $ 3 | ||||
President and CEO [Member] | Unregistered Securities [Member] | Preferred Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued | 1,000,000 | ||||
Number of shares issued, value | $ 3 |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock shares issued | 900,000 | 900,000 |
Preferred stock shares outstanding | 900,000 | 900,000 |
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock value | $ 0.00001 | $ 0.00001 |
Warrants issued | 0 | |
54 Shareholders [Member] | ||
Shares issued | 22,324,706 | 22,324,706 |
Video River Networks [Member] | ||
Minority interest ownership percentage by noncontrolling owners | 88% |