Surface Coatings 10-Q 19 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	9 Months Ended
	Sep. 30, 2013	Nov. 18, 2013
Document And Entity Information	'	'
Entity Registrant Name	'Surface Coatings, Inc.	'
Entity Central Index Key	'0001393356	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'Yes	'
Is Entity's Reporting Status Current?	'No	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Public Float	'	$3,789,000
Entity Common Stock, Shares Outstanding	'	3,789,000
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS	'	'
Cash and Cash Equivalents	$0	$300
Total Current Assets	0	300
TOTAL ASSETS	0	300
CURRENT LIABILITIES	'	'
Accounts Payable	15,433	'
Due to Related Parties	61,828	47,788
Total Current Liabilities	77,261	47,788
STOCKHOLDERS' EQUITY	'	'
Preferred stock, $.001 par value, 20,000,000 shares authorized, -0- shares issued and outstanding	0	0
Common stock, $.001 par value, 50,000,000 shares authorized, 3,789,000 and 3,789,000 shares issued and outstanding, respectively	3,789	3,789
Additional Paid-in-Capital	192,354	192,354
Accumulated Deficit	-273,404	-243,631
Total Stockholders' Equity	-77,261	-47,488
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$0	$300

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Common Stock, par value	$0.00	$0.00
Common Stock authorized	50,000,000	50,000,000
Common Stock, shares issued	3,789,000	3,789,000
Common Stock, shares outstanding	3,789,000	3,789,000
Preferred Stock, par value	$0.00	$0.00
Preferred Stock authorized	20,000,000	20,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Revenue	$0	$0	$0	$0
Cost of Sales	0	0	0	0
Gross Profit	0	0	0	0
Operating Expenses:	'	'	'	'
General and Administrative	9,433	37,644	29,773	61,544
Total Operating Expenses	9,433	37,644	29,773	61,544
Net income (loss) from continuing operations	-9,433	-37,644	-29,773	-61,544
Net income (loss) from discontinued operations	0	0	0	-27,079
Net income (loss)	($9,433)	($37,644)	($29,773)	($88,623)
Basic and diluted average weighted shares outstanding	3,789,000	3,785,630	3,789,000	4,976,847
Basic and diluted net loss per share from continuing operations	$0	($0.01)	$0.01	($0.01)
Basic and diluted net loss per share from discontinued operations	$0	$0	$0	($0.01)
Basic and diluted net income (loss) per share	$0	($0.01)	($0.01)	($0.02)

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net Income (Loss)	($29,773)	($88,623)
Adjustments to reconcile net deficit to cash used for operating activities:	'	'
Depreciation	0	8,341
Bad Debt Expense	0	4,300
Change in Assets and Liabilities	'	'
Change in Accounts Receivable	0	-59,491
Change in Inventory	0	-6,787
Change in Other Assets	0	-16,539
Change in Accounts Payable	15,433	14,871
Change in Accounts Payable - Related Party	14,040	19,037
Change in Accrued Expenses	0	3,910
CASH FLOWS PROVIDED BY (USED) IN OPERATING ACTIVITIES	-300	-85,006
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Transfer of cash in sale of subsidiary	'	-22,272
CASH FLOWS PROVIDED BY INVESTING ACTIVITIES	'	-22,272
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from (Payments on) Line-of-Credit	0	15,738
Payments on Capitalized Lease Commitment	0	-1,112
Payments on Notes to Related Parties	0	-23,019
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES	0	-8,393
NET (DECREASE) IN CASH	-300	-115,671
Cash, beginning of period	300	116,451
Cash, end of period	0	780
SUPPLEMENTAL CASH FLOW INFORMATION	'	'
Interest paid	$0	$4,203

CONSOLIDATED_STATEMENT_OF_STOC

CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY (USD $)	Common Stock	Additional Paid-In Capital	Retained Earnings / Accumulated Deficit
Additional Paid-In Capital at Dec. 31, 2011	'	$287,913	'
Accumulated Deficit at Dec. 31, 2011	'	'	-154,182
Common Stock, Beginning Balance (Value) at Dec. 31, 2011	5,579	'	'
Common Stock, Beginning Balance (Shares) at Dec. 31, 2011	5,579,000	'	'
Shares Issued for Services, Shares	10,000	'	'
Shares Issued for Services, Value	10	'	'
Shares Issued for Services, APIC	'	25,990	'
Shares cancelled due to sale of subsidiary, shares	-1,800,000	'	'
Shares cancelled due to sale of subsidiary, value	-1,800	'	'
Shares cancelled due to sale of subsidiary, APIC	'	-178,200	'
Net Income (Loss)	'	'	-89,449
Ending balance, APIC at Dec. 31, 2012	'	192,354	'
Accumulated Deficit at Dec. 31, 2012	'	'	-243,631
Common Stock, Ending Balance (Value) at Dec. 31, 2012	3,789	'	'
Common Stock, Ending Balance (Shares) at Dec. 31, 2012	3,789,000	'	'
Additional Paid-In Capital at Dec. 31, 2012	'	192,354	'
Net Income (Loss)	'	'	-29,773
Ending balance, APIC at Sep. 30, 2013	'	192,354	'
Accumulated Deficit at Sep. 30, 2013	'	'	-273,404
Common Stock, Ending Balance (Value) at Sep. 30, 2013	$3,789	'	'
Common Stock, Ending Balance (Shares) at Sep. 30, 2013	3,789,000	'	'

NOTE_1_NATURE_OF_ACTIVITIES_AN

NOTE 1 NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
NOTE 1 NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES	'
	Nature of Activities, History and Organization:
	Surface Coatings, Inc. (“Surface Coatings”, the “Company”) is the parent company of Surface Armor, LLC, (“Surface Armor”) a company incorporated under the laws of the State of Texas on July 19, 2005.  The Company operated as a converter and distributor of temporary surface protection tapes, mainly to the construction industry and for the past five years had been developing its business. The Company is located in Texas and sold its product locally as a distributor and throughout the U.S. over the internet.
	On June 30, 2012, due to an accumulated deficit of $154,182 at December 31, 2011 and a net loss of $50,979 through six months of 2012, the Registrant divested their wholly owned subsidiary Surface Armor, LLC to its President at the time of the transaction, who has since resigned and been replaced. A majority of shareholders other than the President approved the sale. In conjunction with the disposition, the 1,800,000 shares registered in the name of the President were cancelled. The Company recorded a gain of $56,651 on the transaction, which was recorded as additional paid in capital.
	The Company operates on a calendar year-end.  The Company is currently evaluating business options which may include, but not be limited to, pursuing an asset acquisition, merger, exchange of capital stock or other business combination with a domestic or foreign business.
	Unaudited Interim Financial Statements:
	The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States and applicable Securities and Exchange Commission (“SEC”) regulations for interim financial information. These financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring accruals) necessary to present fairly the balance sheets, statements of operations and statements of cash flows for the periods presented in accordance with accounting principles generally accepted in the United States. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to SEC rules and regulations. It is presumed that users of this interim financial information have read or have access to the audited financial statements and footnote disclosure for the preceding fiscal year contained in the Form 10-K filed on April 1, 2013.   Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2013 and should be read in conjunction with the Company’s Form 10-K filing for 2012.
	Significant Accounting Policies:
	The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application.  The application of accounting principles requires the estimating, matching and timing of revenue and expense.
	The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud.  The Company's system of internal  accounting control is designed to assure, among other items, that  1) recorded  transactions  are valid;  2) valid  transactions  are recorded;  and  3) transactions  are  recorded in the proper  period in a timely  manner to produce financial  statements which present fairly the financial  condition,  results of operations  and cash  flows of the  Company  for the  respective  periods  being presented.
	Basis of Presentation:
	The Company prepares its financial statements on the accrual basis of accounting.  All intercompany balances and transactions are eliminated.  Investments in subsidiaries are reported using the equity method.
	Cash and Cash Equivalents:
	Cash and cash equivalents includes cash in banks with original maturities of three months or less and are stated at cost which approximates market value, which in the opinion of management, are subject to an insignificant risk of loss in value.
	Income Taxes:
	The Company has adopted ASC 740-10 “Income Taxes”, which requires the use of the liability method in the computation of income tax expense and the current and deferred income taxes payable.   There are no provisions for current taxes due to net available operating losses.
	Reclassification:
	Certain prior year amounts have been reclassified in the consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows to conform to current period presentation.  These reclassifications were not material to the consolidated financial statements and had no effect on net earnings reported for any period.
	Earnings per Share:
	Earnings per share (basic) is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding for the period covered.  As the Company has no potentially dilutive securities, fully diluted earnings per share is identical to earnings per share (basic).
	Recently Issued Accounting Pronouncements:
	The Company  does not expect  the  adoption  of  recently  issued  accounting pronouncements  to have a significant  impact on the Company’s  results of  operations, financial position or cash flow.
	Use of Estimates:
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.
	Emerging Growth Company Critical Accounting Policy Disclosure
	The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.   As an emerging grown company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.     The Company  may elect to take advantage of the benefits of this extended transition period in the future.

NOTE_2_Due_to_Related_Parties

NOTE 2 Due to Related Parties	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
DUE TO RELATED PARTIES	'
	The Company had $61,828 and $47,788 due to a minority shareholder, related to funding of operating expenses, as of September 30, 2013 and December 31, 2012, respectively.

NOTE_3_Equity

NOTE 3 Equity	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
NOTE 3 Equity	'
	The Company is authorized to issue 20,000,000 preferred shares at a par value of $.001 per share.  There were no preferred shares outstanding as of September 30, 2013 and December 31, 2012.
	The Company is authorized to issue 50,000,000 common shares at a par value of $.001 per share.  These shares have full voting rights.  There were 3,789,000 and 3,789,000 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively.
	The Company does not have any stock option plans or stock warrants.

NOTE_4_Income_Taxes

NOTE 4 Income Taxes	9 Months Ended
	Sep. 30, 2013
Schedule of Investments [Abstract]	'
NOTE 4 Income Taxes	'
	The Company has adopted ASC 740-10 “Income Taxes” (which requires the use of the liability method in the computation of income tax expense and the current and deferred income taxes payable (deferred tax liability) or benefit (deferred tax asset).   Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
	The cumulative tax effect at the expected tax rate of 25% of significant items comprising the Company’s net deferred tax amounts as of September 30, 2013 and December 31, 2012 are as follows:
	Deferred tax asset related to:
		September 30,			December 31,
		2013			2012
	Prior Year	$	82,058			59,696
	Tax Benefit for Current Period		7,443			22,362
	Utilization of NOL		0			0
	Net Operating Loss Carry-forward	$	89,501		$	82,058
	Less: Valuation Allowance		(89,501	)		(82,058	)
	Net Deferred Tax Asset	$	0		$	0
	The cumulative net operating loss carry-forward is $273,404 at September 30, 2013 and $243,631 at December 31, 2012, and will expire in the years 2026 through 2032.    The realization of deferred tax benefits is contingent upon future earnings; therefore, the net deferred tax asset has been fully reserved.

NOTE_5_Sale_of_Subsidiary_to_R

NOTE 5 Sale of Subsidiary to Related Party	9 Months Ended
	Sep. 30, 2013
Business Combinations [Abstract]	'
NOTE 5 Sale of Subsidiary to Related Party	'
	On June 30, 2012, due to an accumulated deficit of $154,182 at December 31, 2011 and a net loss of $50,979 through six months of 2012, the Registrant divested their wholly owned subsidiary Surface Armor, LLC to the President (at the time of the transaction), who has since resigned and been replaced. A majority of shareholders other than the President approved the sale. In conjunction with the disposition, the 1,800,000 shares registered in the name of the President were cancelled. The shares were valued at $.10 per share or $180,000. The value of the cancelled shares was determined by the closing price of the stock on the day of the cancellation, discounted for a lack of marketability, as the stock was restricted and comprised of a block of approximately 32% of the outstanding shares. The Company recorded a gain of $56,651 on the transaction, which was recorded as additional paid in capital.

NOTE_6_Financial_Condition_and

NOTE 6 Financial Condition and Going Concern	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
NOTE 6 Financial Condition and Going Concern	'
	The Company has an accumulated deficit through September 30, 2013 totaling $273,404 and had negative working capital of $77,261.  Surface Coatings’ consolidated financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Surface Coatings has suffered losses since inception and has no operations to generate revenue or cash flows. These conditions raise substantial doubt as to Surface Coatings’ ability to continue as a going concern.
	The Company’s will rely on shareholder advances or will seek alternate capital funding to fund the Company’s activities while the Company takes steps to locate and negotiate with a business entity through acquisition, or merger with, an existing company; however, there can be no assurance these activities will be successful.

NOTE_7_Subsequent_Events

NOTE 7 Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
NOTE 7 Subsequent Events	'
	In conjunction with the preparation of these financial statements, an evaluation of subsequent events was performed through November 10, 2013, which is the date the financial statements were issued. No reportable events were noted.

NOTE_1_NATURE_OF_ACTIVITIES_AN1

NOTE 1 NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Presentation:	'
	Basis of Presentation:
	The Company prepares its financial statements on the accrual basis of accounting.  All intercompany balances and transactions are eliminated.  Investments in subsidiaries are reported using the equity method.
Cash and Cash Equivalents:	'
	Cash and Cash Equivalents:
	Cash and cash equivalents includes cash in banks with original maturities of three months or less and are stated at cost which approximates market value, which in the opinion of management, are subject to an insignificant risk of loss in value.
Income Taxes:	'
	Income Taxes:
	The Company has adopted ASC 740-10 “Income Taxes”, which requires the use of the liability method in the computation of income tax expense and the current and deferred income taxes payable.   There are no provisions for current taxes due to net available operating losses.
Earnings per Share:	'
	Earnings per Share:
	Earnings per share (basic) is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding for the period covered.  As the Company has no potentially dilutive securities, fully diluted earnings per share is identical to earnings per share (basic).
Recently Issued Accounting Pronouncements:	'
	Recently Issued Accounting Pronouncements:
	The Company  does not expect  the  adoption  of  recently  issued  accounting pronouncements  to have a significant  impact on the Company’s  results of  operations, financial position or cash flow.
Use of Estimates:	'
	Use of Estimates:
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

NOTE_4_Income_Taxes_Tables

NOTE 4 Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2013
Schedule of Investments [Abstract]	'
Deferred Tax Table	'
		Sept 30,			December 31,
		20123			2012
	Prior Year	$	82,058			59,696
	Tax Benefit for Current Period		7,443			22,362
	Utilization of NOL		0			0
	Net Operating Loss Carry-forward	$	89,501		$	82,058
	Less: Valuation Allowance		(89,501	)		(82,058	)
	Net Deferred Tax Asset	$	0		$	0

NOTE_2_Due_to_Related_Parties_

NOTE 2 Due to Related Parties (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]	'	'
[us-gaap:AccountsReceivableRelatedParties]	$61,828	$47,788

NOTE_3_Equity_Details_Narrativ

NOTE 3 Equity (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Equity [Abstract]	'	'
Common Stock, par value	$0.00	$0.00
Common Stock authorized	50,000,000	50,000,000
Common Stock, shares issued	3,789,000	3,789,000
Common Stock, shares outstanding	3,789,000	3,789,000
Preferred Stock, par value	$0.00	$0.00
Preferred Stock authorized	20,000,000	20,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

NOTE_4_Income_Taxes_Deferred_T

NOTE 4 Income Taxes Deferred Tax Table (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Schedule of Investments [Abstract]	'	'
Prior Year	$82,058	$59,696
Tax Benefit for Current Period	7,443	22,362
Utilization of NOL	0	0
Net Operating Loss Carryforward	89,501	82,058
Less: Valuation Allowance	-89,501	-82,058
Net Deferred Tax Asset	$0	$0

NOTE_4_Income_Taxes_Details_Na

NOTE 4 Income Taxes (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Schedule of Investments [Abstract]	'	'
Operating Loss Carryforward	$273,404	$243,631

NOTE_5_Sale_of_Subsidiary_to_R1

NOTE 5 Sale of Subsidiary to Related Party (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2012
Business Combinations [Abstract]	'
Shares Cancelled, Related Party Shares	1,800,000
Shares Cancelled, Related Party Value	$180,000
Gain on Sale of Subsidiary	$56,651

NOTE_6_Financial_Condition_and1

NOTE 6 Financial Condition and Going Concern (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'	'
Accumulated Deficit	($273,404)	($243,631)
Working Capital	$77,261	'