Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Feb. 09, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | Trafalgar Resources, Inc. | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1310630 | |
Current Fiscal Year End Date | -21 | |
Entity Common Stock, Shares Outstanding | 5,251,309 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Trafalgar_Resources_Inc_BALANC
Trafalgar Resources, Inc. BALANCE SHEET (unaudited) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
CURRENT ASSETS | ||
Cash | $31,698 | $9,836 |
TOTAL CURRENT ASSETS | 31,698 | 9,836 |
OTHER ASSETS | ||
Prepaid expenses | 0 | 0 |
TOTAL OTHER ASSETS | 0 | 0 |
TOTAL ASSETS | 31,698 | 9,836 |
CURRENT LIABILITIES | ||
Accounts payable | 0 | 200 |
Interest payable - related party | 40,052 | 36,502 |
Income taxes payable | 0 | 100 |
Note Payable - Related Party - Current | 110,000 | 110,000 |
TOTAL CURRENT LIABILITIES | 150,052 | 146,802 |
LONG-TERM LIABILITIES | ||
Note payable -- Related party (Note 2) | 50,000 | 20,000 |
TOTAL LIABILITIES | 200,052 | 166,802 |
STOCKHOLDERS' (DEFICIT) | ||
Common stock no par value, 100,000,000 shares authorized, 5,251,309 shares issued and outstanding | 137,413 | 137,413 |
Retained (Deficit) | -103,925 | -103,925 |
(Deficit) from re-entering development stage | -201,842 | -190,454 |
TOTAL STOCKHOLDERS' (DEFICIT) | -168,354 | -156,966 |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) | $31,698 | $9,836 |
Recovered_Sheet1
Trafalgar Resources, Inc. Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Statement of Financial Position | ||
Common stock authorized | 100,000,000 | 100,000,000 |
Common stock no par value | $0 | $0 |
Common stock outstanding | 5,251,309 | 5,251,309 |
Common stock issued | 5,251,309 | 5,251,309 |
Trafalgar_Resources_Inc_STATEM
Trafalgar Resources, Inc. STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Income | ||
Income | $0 | $0 |
Cost of Sales | 0 | 0 |
GROSS PROFIT | 0 | 0 |
Expenses | ||
General and Administrative | 7,839 | 7,705 |
Total Expenses | 7,839 | 7,705 |
Other Income and (Expenses) | ||
Interest (Expense) - Related Party | -3,550 | -2,275 |
Other Income | 1 | 0 |
Total other Income and (Expense) | -3,549 | -2,275 |
(LOSS) BEFORE TAXES | -11,388 | -9,980 |
PROVISION FOR TAXES | 0 | 0 |
NET (LOSS) | ($11,388) | ($9,980) |
Basic and fully diluted loss per weighted average common share outstanding | $0 | $0 |
Weighted average number of common shares outstanding | 5,251,309 | 5,251,309 |
Trafalgar_Resources_Inc_STATEM1
Trafalgar Resources, Inc. STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | ||
NET (LOSS) | ($11,388) | ($9,980) |
Adjustments to reconcile net (loss) to net cash (used) by operating activities: | ||
Increase/Decrease Prepaid Expenses | 0 | 0 |
Increase/Decrease Interest payable | 3,550 | 2,275 |
Increase/Decrease Accounts payable | -200 | -800 |
Increase/ Decrease Income taxes payable | -100 | -100 |
NET CASH (USED) BY OPERATING ACTIVITIES | -8,138 | -8,605 |
FINANCING ACTIVITIES | ||
Loans - Notes payable - Related party | 30,000 | 0 |
Stock Sold | 0 | 0 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 30,000 | 0 |
NET INCREASE (DECREASE) IN CASH | 21,862 | -8,605 |
CASH AT BEGINNING OF PERIOD | 9,836 | 10,580 |
CASH AT END OF PERIOD | 31,698 | 1,975 |
CASH PAID FOR TAXES | 100 | 100 |
CASH PAID FOR INTEREST | $0 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2014 | |
Notes | |
Summary of Significant Accounting Policies | |
Note 1: Summary of Significant Accounting Policies | |
Development stage enterprise | |
Trafalgar Resources, Inc. (the "Company") was incorporated under the laws of the State of Utah on October 25, 1972. The Company is considered a development stage enterprise because since October 1, 2003 it has not commenced operations that have resulted in significant revenue and the Company's efforts have been devoted primarily to activities related to raising capital and attempting to acquire an operating entity. | |
Unaudited Information | |
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q, Article 8 of Regulation S-X of the United States Securities and Exchange Commission. Accordingly, they do not include all of the information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles. | |
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position and results of operations for the periods presented have been made. These financial statements for the three months ending December 31, 2014, should be read in conjunction with the accompanying notes and with the historical financial information of the Company, and are not necessarily indicative of the results that may be expected for the year ending September 30, 2015. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. | |
Use of estimates | |
These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and require that management make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. The use of estimates and assumptions may also affect the reported amounts of revenues and expenses. Actual results could differ from those estimates or assumptions. | |
Net loss per share of common stock | |
The loss per share of common stock is computed by dividing the net loss during the period presented by the weighted average number of shares outstanding during that same period. | |
Income taxes | |
We account for income taxes in accordance with FASB ASC 740-10-05, “Accounting for Income Taxes”. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized. A valuation allowance has currently been recorded to reduce our deferred tax asset to $0. | |
Revenue recognition | |
We recognize revenue in accordance with FASB ASC 605, “Revenue Recognition.” Under FASB ASC 605, revenue is recognized at the point of passage to the customer of title and risk of loss, when there is persuasive evidence of an arrangement, the sales price is determinable, and collection of the resulting receivable is reasonably assured. We recognize revenue as services are provided. | |
Fair value of financial instruments | |
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, and other current assets, accounts payable, taxes payable, accrued expenses and other current liabilities, approximate their fair values because of the short maturity of these instruments. | |
Going concern | |
As shown in the accompanying financial statements, the Company had a deficit working capital and a retained deficit incurred through December 31, 2014 which raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Management intends to seek new capital from a related party to provide needed funds. | |
New accounting pronouncements | |
Various ASU’s through ASU No. 2015-01, which contain technical corrections to existing guidance or affect guidance to specialized industries or entities were recently issued. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Dec. 31, 2014 | |
Notes | |
Related Party Transactions | |
NOTE 2: RELATED PARTY TRANSACTIONS | |
At December 31, 2014 the Company owed $40,052 of interest and $160,000 to its President. Note 1 is for $10,000 and bears interest of 4.5% per year. Note 2 is for $10,000 and bears interest of 4.5% per year and $10,450 in interest and principal was due February 28, 2011. Note 3 is for $20,000 and bears interest of 4.5% per year. $900 in interest is due on January 15, 2011, 2012, and 2013. $20,900 in interest and principal is due January 15, 2014. Note 1, 2 and 3 are in default resulting in an 18% default rate of interest accruing. Note 4 is for $10,000 and bears interest of 4.5% per year. Interest of $450 is due on May 7, 2011, 2012, 2013 and 2014. Interest and principal of $10,450 is due May 7, 2015. Note 5 is for $20,000 and bears interest of 4.75% per year. Interest of $950 is due on February 1, 2012, 2013 and 2014. Interest and principal of $20,950 is due on February 1, 2015. Note 6 is for $20,000 and bears interest of 8.0% per year. Interest of $1,600 is due on February 1, 2013. Interest and Principal of $21,600 is due on February 1, 2014. Note 7 is for $20,000 and bears interest of 8.0% per year. Interest of $1,600 is due on March 1, 2014. Interest and Principal of of $21,600 is due on March 1, 2015. Note 8 is for $20,000 and bears interest of 8.0% per year. Interest of $1,600 is due February 3, 2015. Interest and principle of $21,600 is due on February 3, 2016. Note 9 is for $30,000 and bear interest of 8.0% per year. Interest of $2,400 is due December 12, 2016. Interest and principle of $32,400 is due December 12, 2016 | |
Long-term related note payable due as follows: 2014 $60,000, 2015, $50,000, 2016 $50,000. |
Income_Taxes
Income Taxes | 3 Months Ended | |||
Dec. 31, 2014 | ||||
Notes | ||||
Income Taxes | ||||
NOTE 3: INCOME TAXES | ||||
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Income tax periods 2012, 2013 and 2014 are open for examination by taxing authorities. | ||||
The income tax expense (benefit) for the quarter ended December 31, 2014 differs from the amount computed using the federal statutory rates as follows: | ||||
Quarter Ended December 31, 2014 | Quarter Ended December 31, 2013 | |||
Income tax expense (benefit) at 35% | ($3,986) | ($3,493) | ||
Valuation allowance | 3,986 | 3,493 | ||
Total | 0 | 0 | ||
Deferred tax assets for the quarter ending December 31, 2014 are comprised primarily of the following: | ||||
31-Dec-14 | ||||
Net Operating Loss Carryforward | $ 70,645 | |||
Valuation allowance | -70,645 | |||
$ 0 | ||||
At December 31, 2014, the Company had a net operating loss carry forward of approximately $201,842 that may be offset against future taxable income through 2026. These losses will start to expire in the year 2011 through 2034. No tax benefit has been reported in the financial statements because the Company believes that it is more likely than not that the carryforwards will expire unused. The utilization of future losses may be limited under various provisions of the Internal Revenue Code pertaining to continuity of business operations limits and substantial changes in ownership. Accordingly, the potential tax benefits of the loss carryforwards are offset by a valuation allowance of the same amount. The valuation allowance increased during the quarter ending December 31, 2014 by approximately $3,986. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2014 | |
Notes | |
Subsequent Events | |
Note 4: SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events from the balance sheet date and through the date the financial statements were issued. During this period the Company did not have any material recognizable subsequent events. |
Capital_Stock
Capital Stock | 3 Months Ended |
Dec. 31, 2014 | |
Notes | |
Capital Stock | |
Note 5: CAPITAL STOCK | |
In January 2012 the Company changed its transfer agent to Colonial Stock Transfer. As part of the change in transfer agents, it was noticed the number of shares shown authorized was off by 380 shares coming from the reverse merger in 1997 as a result of rounding issues. As such, the board of directors authorized the issuance of 380 shares, which was part of the original authorization back in 1997, but now will be specifically stated as authorized. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2014 | |
Policies | |
Development Stage Enterprise | |
Development stage enterprise | |
Trafalgar Resources, Inc. (the "Company") was incorporated under the laws of the State of Utah on October 25, 1972. The Company is considered a development stage enterprise because since October 1, 2003 it has not commenced operations that have resulted in significant revenue and the Company's efforts have been devoted primarily to activities related to raising capital and attempting to acquire an operating entity. | |
Unaudited Information | |
Unaudited Information | |
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q, Article 8 of Regulation S-X of the United States Securities and Exchange Commission. Accordingly, they do not include all of the information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles. | |
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position and results of operations for the periods presented have been made. These financial statements for the three months ending December 31, 2014, should be read in conjunction with the accompanying notes and with the historical financial information of the Company, and are not necessarily indicative of the results that may be expected for the year ending September 30, 2015. | |
Cash and Cash Equivalents | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. | |
Use of Estimates | |
Use of estimates | |
These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and require that management make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. The use of estimates and assumptions may also affect the reported amounts of revenues and expenses. Actual results could differ from those estimates or assumptions. | |
Net Loss Per Share of Common Stock | |
Net loss per share of common stock | |
The loss per share of common stock is computed by dividing the net loss during the period presented by the weighted average number of shares outstanding during that same period. | |
Income Taxes | |
Income taxes | |
We account for income taxes in accordance with FASB ASC 740-10-05, “Accounting for Income Taxes”. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized. A valuation allowance has currently been recorded to reduce our deferred tax asset to $0. | |
Revenue Recognition | |
Revenue recognition | |
We recognize revenue in accordance with FASB ASC 605, “Revenue Recognition.” Under FASB ASC 605, revenue is recognized at the point of passage to the customer of title and risk of loss, when there is persuasive evidence of an arrangement, the sales price is determinable, and collection of the resulting receivable is reasonably assured. We recognize revenue as services are provided. | |
Fair Value of Financial Instruments | |
Fair value of financial instruments | |
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, and other current assets, accounts payable, taxes payable, accrued expenses and other current liabilities, approximate their fair values because of the short maturity of these instruments. | |
Going Concern | |
Going concern | |
As shown in the accompanying financial statements, the Company had a deficit working capital and a retained deficit incurred through December 31, 2014 which raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. Management intends to seek new capital from a related party to provide needed funds. | |
New Accounting Pronouncements | |
New accounting pronouncements | |
Various ASU’s through ASU No. 2015-01, which contain technical corrections to existing guidance or affect guidance to specialized industries or entities were recently issued. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||
Dec. 31, 2014 | ||||
Tables/Schedules | ||||
Schedule of Components of Income Tax Expense (Benefit) | ||||
Quarter Ended December 31, 2014 | Quarter Ended December 31, 2013 | |||
Income tax expense (benefit) at 35% | ($3,986) | ($3,493) | ||
Valuation allowance | 3,986 | 3,493 | ||
Total | 0 | 0 | ||
Schedule of Deferred Tax Assets and Liabilities | ||||
31-Dec-14 | ||||
Net Operating Loss Carryforward | $ 70,645 | |||
Valuation allowance | -70,645 | |||
$ 0 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | Dec. 31, 2014 |
Details | |
Deferred Tax Assets, Valuation Allowance, Current | $0 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 129 Months Ended | 135 Months Ended | |||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 12, 2016 | Feb. 03, 2016 | 7-May-15 | Mar. 01, 2015 | Feb. 03, 2015 | Feb. 01, 2015 | Sep. 30, 2014 | Mar. 01, 2014 | Feb. 01, 2014 | Jan. 15, 2014 | Feb. 01, 2013 | Feb. 28, 2011 | |
Details | ||||||||||||||||
Interest payable - related party | $40,052 | $40,052 | $36,502 | |||||||||||||
Loans - Notes payable - Related party | 30,000 | 0 | 160,000 | 160,000 | ||||||||||||
Note 1 amount | 10,000 | |||||||||||||||
Note 1 interest rate | 4.50% | 4.50% | ||||||||||||||
Note 2 amount | 10,000 | |||||||||||||||
Note 2 interest rate | 4.50% | 4.50% | ||||||||||||||
Note 2 Principal and Interest | 10,450 | |||||||||||||||
Note 3 amount | 20,000 | |||||||||||||||
Note 3 interest rate | 4.50% | 4.50% | ||||||||||||||
Note 3 interest | 900 | 900 | ||||||||||||||
Note 3 principal and interest | 20,900 | |||||||||||||||
Note 1 Note 2 and Note 3 default interest rate | 18.00% | |||||||||||||||
Note 4 amount | 10,000 | 10,000 | ||||||||||||||
Note 4 interest rate | 4.50% | 4.50% | ||||||||||||||
Note 4 interest | 450 | 450 | ||||||||||||||
Note 4 principal and interest | 10,450 | |||||||||||||||
Note 5 amount | 20,000 | 20,000 | ||||||||||||||
Note 5 interest rate | 4.75% | 4.75% | ||||||||||||||
Note 5 interest | 950 | 950 | ||||||||||||||
Note 5 principal and interest | 20,950 | |||||||||||||||
Note 6 amount | 20,000 | 20,000 | ||||||||||||||
Note 6 interest rate | 8.00% | 8.00% | ||||||||||||||
Note 6 interest | 1,600 | |||||||||||||||
Note 6 principal and interest | 21,600 | |||||||||||||||
Note 7 amount | 20,000 | 20,000 | ||||||||||||||
Note 7 interest rate | 8.00% | 8.00% | ||||||||||||||
Note 7 interest | 1,600 | |||||||||||||||
Note 7 principal and interest | 21,600 | |||||||||||||||
Note 8 amount | 20,000 | 20,000 | ||||||||||||||
Note 8 interest rate | 8.00% | 8.00% | ||||||||||||||
Note 8 interest | 1,600 | |||||||||||||||
Note 8 principal and interest | 21,600 | |||||||||||||||
Note 9 amount | 30,000 | 30,000 | ||||||||||||||
Note 9 interest rate | 8.00% | 8.00% | ||||||||||||||
Note 9 interest | 2,400 | |||||||||||||||
Note 9 principal and interest | 32,400 | |||||||||||||||
Long-term related note payable 2014 | 60,000 | 60,000 | ||||||||||||||
Long-term related note payable 2015 | 50,000 | 50,000 | ||||||||||||||
Long-term related note payable 2016 | $50,000 | $50,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Federal Income Tax Expense (Benefit), Continuing Operations | ($3,986) | ($3,493) |
Valuation allowance | 3,986 | 3,493 |
PROVISION FOR TAXES | 0 | 0 |
Net Operating Loss Carryforward | 70,645 | |
Valutation allowance | -70,645 | |
NOL Carryforward | 201,842 | |
Change in valuation allowance | $3,986 |
Capital_Stock_Details
Capital Stock (Details) | 3 Months Ended |
Dec. 31, 2014 | |
Details | |
Stock Issued During Period, Shares, Period Increase (Decrease) | 380 |