American International (AMIH) 10-Q 2018 Q1 Quarterly report

QUARTERLY REPORT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

OR

0 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from     to  

Commission file number: 0-50912

AMERICAN INTERNATIONAL HOLDINGS CORP.

(Exact Name Of Registrant As Specified In Its Charter)

Nevada	88-0225318
(State of Incorporation)	(I.R.S. Employer Identification No.)
11222 Richmond Avenue, Suite 195, Houston, Texas	77082
(Address of Principal Executive Offices)	(ZIP Code)

Registrant’s Telephone Number, Including Area Code: (281) 496-9971 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒No☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒No☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   ☐	Accelerated filer ☐
Non-accelerated filer     ☐ (Do not check if a smaller reporting company)	Smaller reporting company   ☒
Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐   No ☒

The number of shares outstanding of each of the issuer’s classes of equity as of July 3, 2018 is 10,847,355 shares of common stock.

TABLE OF CONTENTS

Item	Description	Page
PART I — FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	9
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	11
ITEM 4.	CONTROLS AND PROCEDURES	11
PART II— OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	12
ITEM 1A.	RISK FACTORS	12
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	12
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	12
ITEM 4.	MINE SAFETY DISCLOSURES	12
ITEM 5.	OTHER INFORMATION	12
ITEM 6.	EXHIBITS	13

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Financial Statements

Balance Sheets — March 31, 2018 and December 31, 2017	4
Statements of Operations — Three Months Ended March 31, 2018 and 2017	5
Statements of Cash Flows — Three Months Ended March 31, 2018 and 2017	6
Notes to Financial Statements	7

AMERICAN INTERNATIONAL HOLDINGS CORP.

Balance Sheets

As of March 31, 2018 and December 31, 2017

(Unaudited)

	March 31,			December 31,
ASSETS
Current assets:
Cash and cash equivalents	$	391		$	221
Total Assets	$	391		$	221
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued liabilities	$	100		$	-
Accrued compensation – related party		30,000			30,000
Accounts payable – related party		31,996			31,496
Total Liabilities		62,096			61,496
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding		-			-
Common stock, $0.0001 par value, 195,000,000 shares authorized; 747,355 shares issued and outstanding as of March 31, 2018 and December 31, 2017		75			75
Less treasury stock, at cost; 410 shares		(3,894	)		(3,894	)
Additional paid-in capital		2,168,275			2,167,654
Accumulated deficit		(2,226,161	)		(2,225,110	)
Total Stockholders’ equity (deficit)		(61,705	)		(61,275	)
Total liabilities and stockholders’ equity (deficit)	$	391		$	221

See accompanying notes to the unaudited financial statements.

4

AMERICAN INTERNATIONAL HOLDINGS CORP.Statements of Operations(Unaudited)

	For the Three Months Ended March 31,
	2018			2017
Revenue	$	-		$	-
Costs and expenses:
General and administrative		430			1,630
Interest expense		621			-
Total expenses		1,051			1,630
Operating loss		(1,051	)		(1,630	)
Net loss from operations	$	(1,051	)	$	(1,630	)
Net loss per common share — basic and diluted	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding — basic and diluted		747,355			747,355

See accompanying notes to the unaudited financial statements.

5

AMERICAN INTERNATIONAL HOLDINGS CORP.Statements of Cash Flows(Unaudited)

	For the Three Months Ended March 31,
	2018			2017
Cash flows from operating activities:
Net loss	$	(1,051	)	$	(1,630	)
Adjustments to reconcile net loss to cash used in operating activities:
Imputed interest expense		621
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities		100			(100	)
Net cash used in operating activities		(330	)		(1,730	)
Cash flows from financing activities
Borrowing from related party		500			1,500
Net cash provided by financing activities		500			1,500
Net increase (decrease) in cash and cash equivalents		170			(230	)
Cash and cash equivalents at beginning of period		221			540
Cash and cash equivalents at end of period	$	391		$	310

See accompanying notes to the unaudited financial statements.

6

AMERICAN INTERNATIONAL HOLDINGS CORP.Notes to Financial Statements

March 31, 2018

Unaudited)

Note 1 - Summary of Significant Accounting Policies

The accompanying unaudited interim financial statements of American International Holdings Corp. (“AMIH”), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission and should be read in conjunction with the audited financial statements and notes thereto contained in AMIH’s latest Annual Report filed with the SEC on Form 10-K for the year ended December 31, 2017. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the unaudited interim consolidated financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year as reported in the Form 10-K have been omitted.

Organization, Ownership and Business

American International Holdings Corp. (“AMIH”) is a 93.2% owned subsidiary of American International Industries, Inc. (“American”, “AMIN”) (OTCBB: AMIN).

Cash Equivalents

Highly liquid investments with original maturities of three months or less are considered cash equivalents. There are no cash equivalents at March 31, 2018 and December 31, 2017.

Fair Value of Financial Instruments

FASB ASC 825, “Financial Instruments,” requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. FASB ASC 825 defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. At March 31, 2018 and December 31, 2017, the carrying value of certain financial instruments (cash and cash equivalents, accounts payable and accrued expenses.) approximates fair value due to the short-term nature of the instruments or interest rates, which are comparable with current rates.

Net Loss Per Common Share

We compute net income (loss) per share in accordance with ASC 260, Earning per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

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Management’s Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses. Actual results could differ from these estimates.

New Accounting Pronouncements

There are no recently issued, but not yet effective accounting pronouncements, that, if adopted, would have a material effect on the accompanying financial statements.

Note 2 — Related Party Transactions

As of March 31, 2018 and December 31, 2017, AMIH had a payable to AMIN of $31,996 and $31,496, respectively.  The loan is from the parent company. There is no loan agreement, and interest is not being charged. At March 31, 2018 and December 31, 2017, the Company had an accrued liability in the amount $30,000 for compensation to the Company’s CEO. The Company incurred an imputed interest expense in the amount of $621 for the quarter ended March 31, 2018.

Note 3 – Capital Stock

The Company is authorized to issue up to 5,000,000 shares of preferred stock, $ 0.0001 par value, of which 0 shares are issued and outstanding at March 31, 2018 and December 31, 2017.

The Company is authorized to issue up to 195,000,000 shares of common stock, $0.0001 par value, of which 747,355 shares are issued and outstanding (outstanding shares includes 410 treasury shares) at March 31, 2018 and December 31, 2017.

Note 4 — Going concern

As reflected in the accompanying financial statements, the Company has no operations, a net loss of $1,051 for the three months ended March 31, 2018, an accumulated deficit of $2,226,161, and has no sources of revenue and expects to incur further losses in the future, thus raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management plans to obtain the necessary financing to meet its obligations during 2018. As a shell corporation, the Company pursued potential business combination transactions with existing private business enterprises that might have a desire to take advantage of the Company’s status as a public corporation. These financials do not include any adjustments relating to the recoverability and reclassification of recorded asset amounts, or amounts and classifications of liabilities that might result from this uncertainty.

Note 5 – Subsequent Events

Effective May 31, 2018, the Company issued 10,100,000 shares of restricted common stock. As a result of the issuance of the common shares, a change in control has incurred. American International Industries, Inc. ownership decreased from 93.2% to 6.4%.

Management has evaluated all subsequent events through July 3, 2018, the date the financial statements were available to be issued.  No change to the financial statements for the quarter ended March 31, 2018 is deemed necessary as a result of this evaluation.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is provided in addition to the accompanying financial statements and notes to assist readers in understanding our results of operations, financial condition, and cash flows. MD&A is organized as follows:

· Business.

· Results of Operations.

· Liquidity and Capital Resource.

· Critical Accounting Estimates.

The following discussion should be read in conjunction with the American International Holdings Corp. financial statements and accompanying notes included elsewhere in this report. The following discussion contains forward-looking statements that reflect the plans, estimates and beliefs of American International Holdings Corp. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” and similar expressions are intended to identify forward-looking statements. The actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Report and in other reports we file with the Securities and Exchange Commission (“SEC’), specifically the most recent Annual Report on Form 10-K.” The Company undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise, unless required by law. All references to years relate to the fiscal year ended December31 of the particular year.

Business

On April 3, 2012, upon the sale of its only wholly-owned subsidiary, Delta Seaboard Well Services, Inc, AMIH ceased to be an operating company and became a non-operating “shell company”, as that term is defined in Rule 144(i) under the Securities Act of 1933, as amended. The term “shell company” means a registrant, other than an asset-backed issuer, that has no or nominal operations, and either (i) no or nominal assets; (ii) assets consisting solely of cash and cash equivalents; or (iii) assets consisting of any amount of cash and cash equivalents and nominal other assets.

As a shell company, the Corporation has pursued potential business combination transactions with existing private business enterprises that might have a desire to take advantage of the Corporation’s status as a public corporation. If such a transaction is not completed, the Corporation does not anticipate that its available cash resources and cash generated from operations will be sufficient to meet its presently anticipated capital needs for the next twelve months.

9

Results of Operations for AMIH

Three months ended March 31, 2018 compared to the three months ended March 31, 2017

General and administrative expenses were $430 for the three months ended March 31, 2018, compared to $1,630 for the three months ended March 31, 2017. General and administrative expenses decreased by $1,200 and consisted primarily of reduction of executive compensation and legal and professional expenses. Imputed interest expense of $621 was incurred by the Company for the quarter ended March 31, 2018.

Liquidity and Capital Resources for AMIH

As of March 31, 2018, AMIH had total assets of $391, consisting of $391 in cash and cash equivalents.  At December31, 2017, AMIH had total assets of $221, consisting of $221 in cash and cash equivalents.

As of March 31, 2018, AMIH had total liabilities of $62,096, which consisted of accounts payable in the amount of $100, $31,996 in amount due to American International Industries, Inc., and $30,000 due to a related party for accrued compensation.

AMIH had negative working capital and total net stockholders’ deficit of $61,705 and $61,275 as of March 31, 2018 and December 31, 2017, respectively.

Netcash used in operating activities was $330 for the three monthsended March 31, 2018, which was derived from a net loss of $1,051, imputed interest expense in the amount of $621 and an increase in accounts payable of $100.  Net cash used in operating activities was $1,730 for the three months ended March 31, 2017, which was derived from a net loss of $1,630 and decrease in accounts payable of $100.

Net cash provided by financing activities during the three months ended March 31, 2018 was $500, compared to $1,500 during the three months ended March 31, 2017.  Net cash provided by financing activities was for a borrowing from a related party.

We had no investing activities during the three months ended March 31, 2018 and 2017.

Off-Balance Sheet Arrangements

As of March 31, 2018 and December 31, 2017, AMIH did not have any off-balance sheet arrangements as defined in Item 303(aX4Xii) of Regulation S-K promulgated under the Securities Act of 1934.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures. As of March 31, 2018, the Company’s chief executive officer and chief financial officer conducted an evaluation regarding the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act. Based upon the evaluation of these controls and procedures, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report. Such conclusion reflects the departure of our chief financial officer and assumption of duties of the principal financial officer by our chief executive officer and the resulting lack of accounting experience of our now principal financial officer and a lack of segregation of duties. Until we are able to remedy these material weaknesses, we are relying on third party consultants to assist with financial reporting.

Changes in internal controls. During the quarterly period covered by this report, no changes occurred in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There have been no updates to any legal proceedings previously disclosed.

ITEM 1A. RISK FACTORS

For the three months ended March 31, 2018, there were no material changes from risk factors as disclosed in Part I, Item lA of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

The following documents are filed as exhibits to this report on Form 10-Q or incorporated by reference herein. Any document incorporated by reference is identified by a parenthetical reference to the SEC filing that included such document.

Exhibit No.	Description
31.1	Certification of CEO Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to the Sarbanes-Oxley Act of 2002
31.2	Certification of CFO Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to the Sarbanes-Oxley Act of 2002
32.1	Certification of CEO Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
32.2	Certification of CFO Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

By /s/ Robert Holden                                             

Robert Holden

Chief Executive Officer, President,

and Director

July 3, 2018

By /s/ Everett R. Bassie                                         

Everett R. Bassie

Chief Financial Officer

and Director

July 3, 2018

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