Her Imports (HHER) 10-Q 15 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 14, 2018
Document And Entity Information
Entity Registrant Name	Her Imports
Entity Central Index Key	1,402,453
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,150,039
Trading Symbol	HHER
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash	$ 370,445	$ 190,233
Receivables	147,549	165,770
Related party receivables	145,310	108,026
Inventories	2,078,772	2,335,753
Prepaid maintenance fees - current		75,000
Other prepaid expenses	19,322	64,923
Deposits	391,285	196,392
Total current assets	3,152,683	3,136,097
Property, equipment and software, net	149,967	267,464
Prepaid maintenance fees - non-current		209,375
Other asset	25,000	25,000
Trademark	8,200,000	8,200,000
Total assets	11,527,650	11,837,936
Current liabilities
Accounts payable and accrued liabilities	749,043	822,216
Income tax liability	74,645	134,432
Notes payable	369,299	177,390
Total current liabilities	1,192,987	1,134,038
Total liabilities	1,192,987	1,134,038
Stockholders’ equity
Callable $0.144 per share per year non-cumulative dividend liquidation preference of $2.00 per share, preferred stock, $0.001 par value, 10,000,000 shares authorized and 5,000,000 issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	5,000	5,000
Common stock, $0.001 par value, 70,000,000 shares authorized, and 4,150,039 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	4,150	4,150
Additional paid-in capital	26,699,598	26,679,777
Accumulated deficit	(16,374,085)	(15,985,029)
Total stockholders’ equity	10,334,663	10,703,898
Total liabilities and stockholders’ equity	$ 11,527,650	$ 11,837,936

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock call price per share	$ 0.144	$ 0.144
Liquidation preference price per share	2	2
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	5,000,000	5,000,000
Preferred stock, shares outstanding	5,000,000	5,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	4,150,039	4,150,039
Common stock, shares outstanding	4,150,039	4,150,039

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Product sales	$ 3,309,680	$ 4,361,020
Cost of products sold	1,626,107	2,135,064
Gross profit	1,683,573	2,225,956
Operating expenses
Royalties	4,927
Selling expense	1,215,629	1,264,781
General and administrative expense	337,275	312,846
Total operating expenses	1,557,831	1,577,627
Income from operations	125,742	648,329
Other (expense) income
Interest income		49
Interest expense	(10,510)	(866)
Loss on abandonment of fixed assets	(384,075)
Total other expense	(394,585)	(817)
Income before benefit (provision) for income taxes	(268,843)	647,512
Benefit (provision) for income taxes	59,787	(229,613)
Net income (loss) attributable to company	(209,056)	417,899
Preferred stock dividends	(180,000)	(180,000)
Net income (loss) to common stockholders	$ (389,056)	$ 237,899
Net basic income (loss) per share attributable to common Stockholders: basic and diluted	$ (0.09)	$ 0.10
Weighted average number of common shares outstanding: basic and diluted	4,150,039	4,150,039

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
OPERATING ACTIVITIES
Net income attributable to Company	$ (209,056)	$ 417,899
Adjustments to reconcile net income to net cash provided by (used by) operating activities:
Depreciation and amortization	19,997	27,428
Stock-based compensation	19,821
Loss on abandonment of fixed assets	384,075
Changes in operating assets and liabilities:
Receivables	18,221	(91,580)
Related party receivables	(37,284)	(67,909)
Inventories	256,981	(211,250)
Prepaid maintenance fees		18,750
Other prepaid expenses	45,601	(37,078)
Deposits	(194,893)	(323,229)
Accounts payable and accrued liabilities	(73,173)	269,823
Income tax liability	(59,787)	229,612
Net cash provided by operating activities	170,503	232,466
INVESTING ACTIVITIES
Purchase of fixed assets	(2,200)	(21,907)
Purchase of common stock from stockholder		(25,000)
Net cash used in investing activities	(2,200)	(46,907)
FINANCING ACTIVITIES
Repayment on notes payable	(373,601)	(14,206)
Issuance of notes payable	565,510
Payment of preferred dividend	(180,000)	(180,000)
Net cash provided by (used in) financing activities	11,909	(194,206)
NET INCREASE (DECREASE) IN CASH	180,212	(8,647)
CASH - BEGINNING OF PERIOD	190,233	355,568
CASH - END OF PERIOD	370,445	346,921
SUPPLEMENTAL DISCLOSURES:
Interest paid	10,510	944
Income taxes paid
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Shares issued for trademark		8,200,000
Purchase of software maintenance agreement with common stock		375,000
Issuance of note payable for buy back of stock from stockholder		$ 57,940

Description of the Company

Description of the Company	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Description of the Company	1. Description of the Company Her Imports, (previously known as EZJR, Inc.), (“the Company” or “Her”), was incorporated on August 14, 2006 under the laws of the State of Nevada. Corporate Structure and Business HER is a retailer of Human Hair Extensions and related haircare and beauty products headquartered in Las Vegas, Nevada. The Company sells its products at consultation studios and on its Website, www.herimports.com. As of March 31, 2018, the Company operated 23 retail locations, all of which are in the U.S. These locations are primarily in “executive offices suites” such as Regus PLC, where furniture, administrative staff and security are provided. The Company then stocks the location with products and point-of-sale equipment. These locations are leased on a short-term basis (primarily one year or less). Four leases, including our corporate office, have leases longer than one year at the time they were entered into. This allows the Company to open and close its consultation studios within a short period of time at minimal expense to the Company. At one of the Company’s consultation studios, the customer is provided with a personal, one-on-one consultation with a Her beauty expert. Additionally, the Company has one larger location in Greenbelt Maryland where there are several consultants as well as a waiting room. The Company has one wholly owned subsidiary, Her Marketing Concepts, Inc. (“Her Marketing”), a Nevada Corporation. All employees of the Company are employed by Her Marketing. Agreement with Cabello Real Ltd. On November 28, 2016, the Company entered into an Asset Share Purchase & Business Agreement with Cabello Real Ltd. (“Cabello”), a private United Arab Emirates company to acquire the exclusive U.S. rights to the Her Imports trademark. In addition to these rights, the Company also purchased certain other assets owned by Cabello including customer lists and various digital content. In exchange for these rights, and other digital assets, the Company issued to Cabello 10,000,000 shares of non-voting, non-cumulative, callable preferred stock (subsequently revised to 5,000,000) with a dividend rate of $0.144 per share per annum and a liquidation preference of $2.00 per share. In addition, the Cabello received 1,250,000 shares of common stock. Both the preferred stock and common stock issued were unregistered. Additionally, the Company applied with the State of Nevada for the approval of the Certificate of Designations, Preferences, and Rights of Callable Non-cumulative Preferred Stock. The Certificate designated 5,000,000 as Callable Non-cumulative Preferred Stock at a par value of $.001 per share. Cabello is controlled by Mr. Jonathan Terry, who is the Company’s principal shareholder who is also actively involved in its daily operations. On January 12, 2017, the Company changed its name from EZJR, Inc. to Her Imports. eCommerce Platform In January 2018 the Company converted to a new cloud-based eCommerce platform from its server-based eCommerce platform. The primary reason for the change was to allow the Company to optimize its mobile marketing efforts. In the past, marketing efforts have focused on traditional media, email, and search. However, due to the proliferation of smart phones and social media it is much more effective, while less expensive, to reach our customers using mobile marketing using SMS messaging and social platforms such as Facebook and Snapchat. Furthermore, advances in eCommerce shopping carts to cloud-based platforms allow for significant customization that was not previously available. The Company can interface with the shopping cart using various self-developed “mini-CRMs” depending on the marketing promotion and platform. As a result of the change, the Company incurred a one-time charge of $383,542 from the write-off of the previous CRM and the prepaid maintenance agreement associated with it. Media Investor Purchaser Agreement On June 29, 2014, the Company entered into a Media Investor Purchaser Agreement (“MIP”) with Leader Act HK Ltd (“Leader”), a shareholder. On July 31, 2017, this agreement was assigned by Leader to Cabello. Under the terms of the assigned agreement, Cabello undertakes the responsibility to provide the investment dollars for the “media purchase.” The purpose of this media purchase is to generate revenues from the sale of various products and services. When revenues are generated they will be split on a 50/50 basis after deducting direct expenses and fees related to the revenues the media purchase, merchant fees, product costs, and affiliate fees. Cabello is responsible for lead generation by spending the funds necessary to purchase various media while managing the overall process. Cabello is also responsible for graphic design, Website design and various other programming expenses. Conversely, the Company is responsible for customer service, network costs, accounting, and any other related general and administrative costs. Prior to signing the agreement Leader advanced the Company $50,000 which the agreement allowed to be converted to 83,333 shares of common at $.60 per share. That leaves up to 9,500,000 shares of common stock that Cabello can purchase at $0.05 per share from its portion of the funds generated by the offers it creates. From April 19 to April 20, 2018, Cabello ran a program to sell a variety of the Company’s hair products. As of the date of this report, the accounting for this program has not been completed. Agreement with Cabello Real FDE On April 20, 2017, the Company entered into a Marketing and Selling Agreement with Cabello Real FDE, owner of a hair care product line called OSIworks, whereby the Company can exclusively purchase, market and sell OSIworks’ products in the United States. Under the agreement the Company would pay Cabello a royalty of 2% of net sales. Cabello Real FDE is also controlled by Jonathan Terry, the Company’s principal shareholder. During the quarter ending March 31, 2018 the Company recognized royalty expense of $4,927 related to the agreement.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company (a Nevada Corporation) and its wholly owned subsidiary, Her Marketing Concepts, Inc. All significant intercompany transactions have been eliminated in consolidation. Basis of Presentation of the Condensed Consolidated Financial Statements The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Her Marketing Concepts, Inc. The Company maintains its books of account and prepares consolidated financial statements in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The Company’s fiscal year ends on December 31. All significant intercompany balances and transactions have been eliminated in consolidation. On January 31, 2017, the Company effected a 1-for-2 reverse stock split effective January 31, 2017. The par value was not adjusted as a result of the reverse stock split. On April 9, 2018, the Company effected a 1-for-6 reverse stock split effective April 9, 2018. All references to numbers of shares of our common stock and per-share information in the accompanying condensed consolidated financial statements and in these notes to the condensed consolidated financial statements have been adjusted retroactively to reflect these splits. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its estimates on an ongoing basis, including those related to the fair values of stock-based awards, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates and such differences could be material to the consolidated financial position and results of operations. Cash The Company considers deposits that can be redeemed on demand and investments that have original maturities of less than three months, when purchased, to be cash equivalents. As of March 31, 2018, and March 31, 2017, the Company’s cash consisted of cash on deposit with banks. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 for any single account at the Company’s financial institutions. From time-to-time one or more of the Company’s bank accounts may exceed the FDIC insurance limits. Receivables Receivables represent balances related to products sold for which the Company had not received the related funds from various financial institutions as of the reporting period. Interest is not accrued on accounts receivables and with the exception of certain holdback, all receivables were received within one week of the end of the reporting period and, as such, the Company has no allowance for doubtful accounts as of March 31, 2018 and December 31, 2017. The Company has an allowance for doubtful accounts based on chargeback claims at the balance sheet date. Fair Value of Financial Instruments The Company measures fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value, using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3). The Company did not have any assets measured at fair value on a recurring basis at March 31, 2018 and March 31, 2017. The Company believes the carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable, and other accrued liabilities are a reasonable approximation of the fair value of those financial instruments because of the nature of the underlying transactions and the short-term maturities involved. Inventories Inventory is booked at cost or net realizable value on a FIFO basis. The Company evaluates the carrying value of inventory to determine if the carrying value is recoverable at estimated selling prices. To the extent that estimated selling prices do not exceed the associated carrying values, inventory carrying amounts are written down. In addition, the Company inventory on hand or committed with suppliers, that is not expected to be sold within the next twelve months, is considered as excess and thus appropriate write-downs of the inventory carrying amounts are established through a charge to cost of revenues. Significant reductions in product pricing or changes in technology and/or demand may necessitate additional write-downs of inventory carrying value in the future. Deposits March 31, 2018 2017 Deposits on Products $ 369,477 $ 315,931 Security Deposits 21,808 40,248 Total $ 391,285 $ 356,179 Intangibles Intangible assets are comprised primarily of trademarks that represent the Company’s exclusive ownership of the HER trademarks in the US and are inclusive all related social media sites and domain names in the US., all used in connection with (consisting of the name, Her Imports and the Her Imports Logo) the manufacture, sale and distribution of human hair extensions and related beauty products. In accordance with Financial Accounting Standards Board Accounting Standard Codification 350 (FASB ASC 350), intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists through the use of discounted cash flow models. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. For the years ended March 31, 2017 and 2018 and there were no impairments recorded. Impairment Assessments of Intangibles As described in Note 1, on November 28, 2016, the Company entered into an Asset Share Purchase & Business Agreement with Cabello to acquire the exclusive U.S. rights to the Her Imports trademark as well as other assets. The value of the trademark at the time of its purchase was estimated to be $8,200,000. The Company makes judgments about the value of this long-lived asset whenever events or changes in circumstances indicate that an impairment in the remaining value of the assets recorded on the balance sheet may exist. To estimate the fair value of long-lived asset, the Company typically makes various assumptions about the prospects for the business that the asset relates to, considers market factors specific to that business and estimates future cash flows to be generated by that business. These assumptions and estimates are necessarily subjective and based on management’s best estimates based on the information available at the time such estimates are made. Based on these assumptions and estimates, the Company determines whether it needs to record an impairment charge to reduce the value of the asset stated on the balance sheet to reflect its estimated fair value determined by a discounted cash flow analysis. The Company has not recognized any impairment charges related to the trademark during the quarters ended March 31, 2018 and 2017. Property, Equipment and Software, net Property equipment and software are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: Furniture and fixtures 5 years Computers and equipment 3 years Software 5 years Kiosks 3 years Leasehold improvement remaining life of the lease On May 28, 2014, the Company purchased from Leader, for 833,333 shares of common stock, an eCommerce software program totaling $350,000. The software was amortized over five years. During the three months ended March 31, 2018, the software’s unamortized value of $99,167 was written off as it was abandoned in favor of a cloud-based platform. Amortization expense for the three months ended March 31, 2017 was $17,500. Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. ASU No. 2014-09, as amended, is effective for the Company as of January 1, 2018. The adoption did not result in any material change in the timing of recognizing revenue The adoption will also result in a change in the timing of recognizing revenue for sales where we ship the merchandise to the customer from a distribution center or store, as revenue for sales where we ship the merchandise to customers will be recognized when control of the merchandise transfers to the customer, which is generally at the time of shipment rather than upon delivery of the products to the customer. Additionally, the Company has had a deminimis amount of sales returns. The Company, through the Her Imports retail locations and its eCommerce Website, www.herimports.com, sells a variety of hair extensions and related products. Revenue is recognized at the “point of sale” in the stores. Customers pay for the products using either cash, a debit card or a credit card. All sales are final. In the case of cash sales at the store, the store manager makes a nightly deposit of the cash. For credit card and debit sales, the Company recognizes the sale when the card is charged and approved. Sales tax collected from customers is excluded from revenue and is included in accrued liabilities on our condensed consolidated balance sheets. Product purchases on the Company’s Website are paid for using either debit cards, credit cards, or PayPal Revenue for online product sales are recognized upon shipment of the product. Additionally, customers have the option of making installment payments on products purchased. In this case fifty percent of the purchase price is paid at the time of sale and the remainder withdrawn from the customer’s account via ACH. Because there is a significant amount of uncertainty related to the subsequent collections via ACH, those payment are only recognized as revenue upon receipt. Finally, customers may purchase product using a payment facility called PayNearMe where a customer who doesn’t have a debit/credit/PayPal account can place an online order with an agreement to take cash and pay for the order at a PayNearMe location. The product is then shipped at time PayNearMe notifies the Company that the payment has been received. Revenue is recognized at the time of the shipment of the product. Also included in revenue is shipping revenue from our e-commerce customers. Sales taxes collected from retail customers are excluded from reported revenues when control of the merchandise transfers to the customers, which is generally at the time of shipment rather than upon delivery of the products to the customer. Income Taxes The Company accounts for income taxes under the liability method in accordance with FASB ASC 740-10. Under this standard, deferred income tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. Deferred income tax assets are reduced by a valuation allowance when the Company is unable to make the determination that it is more likely than not that some portion or all the deferred income tax asset will be realized. Earnings (Loss) per Share The Company utilizes FASB ASC 260. Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Common equivalent shares are excluded from the computation if their effect is anti-dilutive. Reverse Stock Split All references to numbers of shares of our common stock and per-share information in the accompanying financial statements have been adjusted retroactively to reflect the Company’s 1-for- 2 reverse stock split effected on January 31, 2017, and a 1-for-6 reverse stock split effective April 19, 2018. The par value was not adjusted because of the reverse stock splits. Stock-based compensation The Company records stock-based compensation issued to external entities for goods and services at either the fair market value of the shares issued, or the value of the services received, whichever is more readily determinable, using the measurement date guidelines enumerated in FASB ASC 505-50-30. There was no stock based compensation for the three months ended March 31, 2017. For the three months ended March 31, 2018, the Company recognized stock basedcompensation expense of $19,821. Recent Accounting Pronouncements Except as noted below, the Company has considered all recent accounting pronouncements and has concluded that there are no recent accounting pronouncements that may have a material impact on its condensed consolidated financial statements, based on current information. In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018. We are still assessing the impact of this ASU on our condensed consolidated financial statements, but we expect that it will result in a substantial increase in our long-term assets and liabilities. We will adopt the ASU beginning in the first quarter of fiscal 2019. In January 2017, the FASB issued ASU No. 217-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The amendments simplify the subsequent measurement of goodwill and eliminate the two-step goodwill impairment test. The ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not anticipate any material impact on the condensed consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606)

Property, Equipment and Softwar

Property, Equipment and Software	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Property, Equipment and Software	3. Property, Equipment and Software Property and equipment consisted of the following: March 31, 2018 December 31, 2017 Software $ 113,310 $ 463,310 Computers and equipment 98,393 99,592 Furniture 30,391 30,391 Leasehold improvements 21,693 19,493 subtotal 263,787 612,786 Accumulated depreciation and amortization (113,819 ) (345,322 ) Property, equipment and software, net $ 149,968 $ 267,464 Depreciation and amortization expense on property, plant, equipment, and software for the three months ended March 31, 2018 and 2017 was $19,997 and $27,428, respectively.

Sales Tax Payable

Sales Tax Payable	3 Months Ended
	Mar. 31, 2018
Sales Tax Payable
Sales Tax Payable	4. Sales tax payable The Company is delinquent in filing some sales tax returns for certain states (including the remittance of taxes), for which the Company has transacted business. The Company has recorded tax obligations plus potential interest and penalties estimated to be approximately $58,218, computed through March 31, 2018, which are included in accounts payable and accrued liabilities on the balance sheet. The Company is in the process of becoming fully compliant.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	5. Related Party Transactions Related Party Accounts Receivable and Payable At March 31, 2018 and March 31, 2017, the Company had a receivable from Cabello, its principal stockholder, of $145,310 and $94,521 that resulted from payments made by the Company on behalf of Cabello. The Company has the right to offset this receivable against any future dividend payments owed Cabello related to the preferred stock described in Note 1. As described in Note 11, subsequent to March 31, 2018, two dividends of $60,000 each were declared and offset against amounts owed by Cabello. For further information on related party transactions, see Note 1. As described in Note 6, the Company incurred $4,927 in royalty expense which was also offset against the Cabello receivable. Royalty Expense During the three months ended March 31, 2018 royalty expense was $4,927 related to royalties on products sold under the brand name OSIworks. The expense is related to a company under common control with the Company’s principal shareholder.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Leases At March 31, 2018, the Company leased or rented 24 different facilities including its corporate headquarters, active retail locations, storage facility and offices for customer service. Future lease obligation for these facilities are as follows: Year Amount 2018 (remaining nine months) $ 193,339 2019 104,773 2020 62,019 2021 53,990 2022 54,134 Thereafter 18,077 Total $ 486,332 Rent expense for the three months ended March 31, 2018 and 2017 was $124,389 and $150,528, respectively. Concentrations As of March 31, 2018, the Company had only twelve qualified vendors that supply its wigs and hair extension products. The Company sources its hair care products from one vendor. There are numerous suppliers of styling tools as this is a commodity product. During the three months ended March 31, 2018, the Company purchased hair products from five different vendors, however, two vendors accounted for approximately 94.7% of all hair products purchased. During the three months ended March 31, 2017, the Company purchased hair products from seven different vendors, however, two vendors accounted for approximately 96.0% of all hair products purchased. Legal Proceedings From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. On or about September 5, 2015, the Company received a summons naming it in a civil action against Her Imports, LLC, Her Imports New York, LLC, Her Holding, Inc. and EZJR, Inc. (now Her Imports) from a former independent contractor of Her Imports, LLC. The complaint claims unpaid wages and overtime wages in violation of New York Labor Law, among other things. No specific damages are mentioned in the complaint. The Company subsequently answered the complaint and denied any wrongdoing as EZJR had no relationship with the contractor, whatsoever. At this point in the litigation it is impracticable to foresee the outcome, however, the Company believes it has meritorious defense and is vigorously defending this litigation. On February 16, 2018, a magistrate judge ruled that EZJR, Her Holding and Her Imports, LLC acted as a joint employer. The judge also found that genuine issues of material fact exist as to “whether plaintiff qualifies as an ‘employee’ under the law, or was an ‘independent contractor’.” While the Company disagrees with the ruling that it was a joint employer, it has decided to proceed to trial on the basis that the plaintiff was an independent contractor, while reserving the right to appeal the decision. On or about On March 13, 2018, the Company received a summon in a civil action alleging that it had violated the Telephone Consumer Protection Act of 1991 (TCPA). In the complaint, an individual who provided his phone number to the Company to obtain certain discounts on the Company’s products, claims that the Company sent several text messages to his cell phone without prior written consent. The suit was filed by on behalf of the plaintiff and others similarly situated. While we have not had sufficient time to fully evaluate the claim, our initial review of the circumstance surrounding the claim are that the action is not justified and as such we intend to vigorously defend the Company against this action. On January 12, 2017, the Company entered into a Business Purchase Agreement with EnzymeBioSystems, Inc. (“EnzymeBio”), a Nevada corporation, whereby the Company entered into an agreement to purchase 100% ownership of EnzymeBio’s wholly owned subsidiary, Share Acquisition Corp. (“SAC”), a Nevada corporation in exchange for approximately 9,167 shares of the Company’s common stock and $25,000 cash. On February 28, 2017, EnzymeBio agreed to spin-off SAC as a dividend. Pursuant to the Business Purchase Agreement and Nevada Revised Stature 92A.180 (Merger of a subsidiary into parent or parent into subsidiary) ,

Promissory Notes

Promissory Notes	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Promissory Notes	7. Promissory Notes UPS Capital On November 8, 2017 the Company entered into an agreement with UPS Capital Corporation (UPS) for a $500,000 credit facility. Under the terms of the agreement UPS will loan 100% of the invoice amount on incoming offshore shipments carried by UPS. Upon funding the loan, the Company pays a transaction fee of 1.85% or 2.75% for air shipment or ocean shipment, respectively. Repayment of amounts funded are due in 60 days for air shipments and 90 days for ocean shipment. Amounts funded are secured by inventory on hand and are personally guaranteed by the Company’s Chief Executive officer and the Company’s principal controlling shareholder. As of March 31, 2018 and December 31, 2017 the Company owed $369,299 and $177,390, respectively under the facility. Admax On September 15, 2016, the Company purchased 25,000 common shares of Her Imports from Admanxoffers.com by issuing a promissory note for $60,000 payable monthly in equal installments of $5,000 until fully paid on October 1, 2017. As part of this transaction Admax agreed that it would not sell any free-trading shares for a period of one year from the transaction date. Assuming an implied interest rate of 6.5%, the value of the note booked as a payment was $57,940. At December 31, 2017 the note was fully paid. For the Three months ended ended March 31, 2017, interest expense on the note was $634.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Stockholders' Equity	8. Stockholders’ Equity On January 31, 2017, the Company effected a 1-for-2 reverse stock split effective January 31, 2017. The par value was not adjusted as a result of the reverse stock split. On April 9, 2018, the Company effected a 1-for-6 reverse stock split effective April 9, 2018. All references to numbers of shares of our common stock and per-share information in the accompanying condensed consolidated financial statements and in these notes to the condensed consolidated financial statements have been adjusted retroactively to reflect these splits. As described in Note 1, on November 28, 2016, the Company entered into an Asset Share Purchase & Business Agreement with Cabello to acquire the exclusive U.S. rights to the Her Imports trademark. In exchange for these rights, and other digital assets, the Company issued to Cabello 10,000,000 shares of unregistered non-voting, non-cumulative, callable preferred stock (subsequently revised to 5,000,000 shares) and 1,250,000 unregistered common stock with a combined value of $8,200,000. All shares of Callable Preferred Stock rank superior to all the Company’s preferred stock and common stock currently outstanding and hereafter issued, as to distributions of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary (with the exception of a merger), including the payment of dividends. The callable preferred stock is subject to a monthly dividend payment equal to a rate of $0.144 per share of preferred stock per annum. The declaration and payment of the dividend on a monthly basis is subject to the approval of the Company’s Board of Directors. Such dividend is non-cumulative should the Company not pay the dividend. The Corporation has a right of first refusal to purchase the callable preferred stock, should the shareholder decide to sell all or part of their callable preferred stock. The callable preferred stock has no voting rights. Through December 31, 2017, the Board of Directors has declared and approved, preferred stock dividends of $720,000 ($60,000 each month) to Cabello related to the 5,000,000 shares of callable, non-voting, non-cumulative preferred stock. Because the dividends on the preferred stock are non-cumulative and as this discretion of the Company, these preferred shares are considered to be equity. At March 31, 2018 and December 31, 2017, the Company had 10,000,000 shares of preferred stock authorized and 5,000,000 issued and outstanding and 70,000,000 shares of common stock authorized and 4,150,039 issued and outstanding. As described in Note 1, on October 13, 2016, the Company entered into a five-year maintenance agreement on its eCommerce platform with Leader in exchange for 250,000 shares of the Company’s common stock valued at $375,000 based on the fair market value of a service maintenance contract provided to other third parties which approximates the fair value of the common stock at the time it was issued. In January 2018 the Company converted to a new cloud-based eCommerce platform from its server-based eCommerce platform. As a result, the Company wrote off $265,625 of unamortized prepaid software maintenance related to the agreement.

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	9. Stock Based Compensation On September 5, 2017 the Company adopted the 2017 Her Imports Stock Incentive plan. For the three months ended March 31, 2018, the Company recognized $19,821 in stock-based compensation related to these stock options. Stock-based compensation expense is included in the following captions on the condensed consolidated statements of operations. Three Month Ended March 31, 2018 Selling expense $ 9,510 General and administrative expense 10,311 Total $ 19,821 Changes in the Company’s outstanding stock options under the plan during the three months ended March 31, 2018 were as follows: Weighted Number of Average Options Price Outstanding at December 31, 2017 50,000 $ 9.42 Granted - - Exercised - - Forfeited of expired (8,333 ) 10.68 Outstanding at March 31, 2018 41,667 $ 9.20 Exercisable at March 31, 2018 17,080 $ 7.43 The weighted average remaining contractual term and aggregate intrinsic value of outstanding options as of March 31, 2018 was 4.34 years and $148,259, respectively. The Company’s stock options are measured at fair value using the Black-Scholes Option Pricing Model methodology. A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s stock options that are categorized within Level 3 of the fair value hierarchy for the year ended March 31, 2017 is as follows: Strike Price $0.30 to $1.78 Volatility 46.21 % Risk-free interest rate 2.15 % Contractual life (in years) 5 Dividend yield (per share) 0 %

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes The tax reform bill that Congress voted to approve December 20, 2017, also known as the “Tax Cuts and Jobs Act”, made sweeping modifications to the Internal Revenue Code, including a much lower corporate tax rate, changes to credits and deductions, and a move to a territorial system for corporations that have overseas earnings. The act replaced the prior-law graduated corporate tax rate, which taxed income over $10 million at 35%, with a flat rate of 21%. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. An approximate estimated blended tax rate of 23.1% was used to calculate the benefit for taxes based on operations for the three months ended March 31, 2018 and 35.4% to calculate the provision for taxes based on income for the three months ended March 31, 2017. For financial reporting purposes the benefit for income taxes is based on a pre-tax loss of $268,844 for the three months ended March 31, 2018 and pre-tax income of $647,512 for the three months ended March 31, 2017. In 2018, and for fourteen years thereafter, there will be a permanent book versus tax difference of $546,667 each year related to the amortization of the trademark, which is deductible for tax purposes but is not amortized and expensed for financial reporting purposes. The provision (benefit) for income taxes for the three months ended March 31, 2018 and 2017 consisted of the following: Three Months Ended March 31, March 31, 2018 2017 U.S. Federal $ (53,044 ) $ 215,608 U.S. State (6,743 ) 14,005 Total (59,787 ) 229,613 Deferred - - Total provision (benefit) for income taxes $ (59,787 ) $ 229,613 As of March 31, 2018, we had a tax loss carryforward of approximately $996,000 which can be used to offset future Federal income taxes.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events On April 9, 2018, the Board of Directors approved the monthly $60,000 dividend related to 5,000,000 shares of Callable Preferred Stock owned by Cabello Real Ltd. This dividend was offset against amounts owed to the Company by Cabello. From April 19 to April 20, 2018, Cabello ran a program to sell a variety of the Company’s hair products under the MIP Agreement described in Note 1. As of the date of this report, the accounting for this program has not been completed. On May 2, 2018, the Board of Directors approved the monthly $60,000 dividend related to 5,000,000 shares of Callable Preferred Stock owned by Cabello Real Ltd. This dividend was offset against amounts owed to the Company by Cabello.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company (a Nevada Corporation) and its wholly owned subsidiary, Her Marketing Concepts, Inc. All significant intercompany transactions have been eliminated in consolidation.
Basis of Presentation of the Condensed Consolidated Financial Statements	Basis of Presentation of the Condensed Consolidated Financial Statements The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Her Marketing Concepts, Inc. The Company maintains its books of account and prepares consolidated financial statements in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The Company’s fiscal year ends on December 31. All significant intercompany balances and transactions have been eliminated in consolidation. On January 31, 2017, the Company effected a 1-for-2 reverse stock split effective January 31, 2017. The par value was not adjusted as a result of the reverse stock split. On April 9, 2018, the Company effected a 1-for-6 reverse stock split effective April 9, 2018. All references to numbers of shares of our common stock and per-share information in the accompanying condensed consolidated financial statements and in these notes to the condensed consolidated financial statements have been adjusted retroactively to reflect these splits.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its estimates on an ongoing basis, including those related to the fair values of stock-based awards, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates and such differences could be material to the consolidated financial position and results of operations.
Cash	Cash The Company considers deposits that can be redeemed on demand and investments that have original maturities of less than three months, when purchased, to be cash equivalents. As of March 31, 2018, and March 31, 2017, the Company’s cash consisted of cash on deposit with banks.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 for any single account at the Company’s financial institutions. From time-to-time one or more of the Company’s bank accounts may exceed the FDIC insurance limits.
Receivables	Receivables Receivables represent balances related to products sold for which the Company had not received the related funds from various financial institutions as of the reporting period. Interest is not accrued on accounts receivables and with the exception of certain holdback, all receivables were received within one week of the end of the reporting period and, as such, the Company has no allowance for doubtful accounts as of March 31, 2018 and December 31, 2017. The Company has an allowance for doubtful accounts based on chargeback claims at the balance sheet date.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company measures fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value, using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3). The Company did not have any assets measured at fair value on a recurring basis at March 31, 2018 and March 31, 2017. The Company believes the carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable, and other accrued liabilities are a reasonable approximation of the fair value of those financial instruments because of the nature of the underlying transactions and the short-term maturities involved.
Inventories	Inventories Inventory is booked at cost or net realizable value on a FIFO basis. The Company evaluates the carrying value of inventory to determine if the carrying value is recoverable at estimated selling prices. To the extent that estimated selling prices do not exceed the associated carrying values, inventory carrying amounts are written down. In addition, the Company inventory on hand or committed with suppliers, that is not expected to be sold within the next twelve months, is considered as excess and thus appropriate write-downs of the inventory carrying amounts are established through a charge to cost of revenues. Significant reductions in product pricing or changes in technology and/or demand may necessitate additional write-downs of inventory carrying value in the future.
Deposits	Deposits March 31, 2018 2017 Deposits on Products $ 369,477 $ 315,931 Security Deposits 21,808 40,248 Total $ 391,285 $ 356,179
Intangibles	Intangibles Intangible assets are comprised primarily of trademarks that represent the Company’s exclusive ownership of the HER trademarks in the US and are inclusive all related social media sites and domain names in the US., all used in connection with (consisting of the name, Her Imports and the Her Imports Logo) the manufacture, sale and distribution of human hair extensions and related beauty products. In accordance with Financial Accounting Standards Board Accounting Standard Codification 350 (FASB ASC 350), intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists through the use of discounted cash flow models. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value a write-down is recorded. For the years ended March 31, 2017 and 2018 and there were no impairments recorded.
Impairment Assessments of Intangibles	Impairment Assessments of Intangibles As described in Note 1, on November 28, 2016, the Company entered into an Asset Share Purchase & Business Agreement with Cabello to acquire the exclusive U.S. rights to the Her Imports trademark as well as other assets. The value of the trademark at the time of its purchase was estimated to be $8,200,000. The Company makes judgments about the value of this long-lived asset whenever events or changes in circumstances indicate that an impairment in the remaining value of the assets recorded on the balance sheet may exist. To estimate the fair value of long-lived asset, the Company typically makes various assumptions about the prospects for the business that the asset relates to, considers market factors specific to that business and estimates future cash flows to be generated by that business. These assumptions and estimates are necessarily subjective and based on management’s best estimates based on the information available at the time such estimates are made. Based on these assumptions and estimates, the Company determines whether it needs to record an impairment charge to reduce the value of the asset stated on the balance sheet to reflect its estimated fair value determined by a discounted cash flow analysis. The Company has not recognized any impairment charges related to the trademark during the quarters ended March 31, 2018 and 2017.
Property, Equipment and Software, Net	Property, Equipment and Software, net Property equipment and software are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: Furniture and fixtures 5 years Computers and equipment 3 years Software 5 years Kiosks 3 years Leasehold improvement remaining life of the lease On May 28, 2014, the Company purchased from Leader, for 833,333 shares of common stock, an eCommerce software program totaling $350,000. The software was amortized over five years. During the three months ended March 31, 2018, the software’s unamortized value of $99,167 was written off as it was abandoned in favor of a cloud-based platform. Amortization expense for the three months ended March 31, 2017 was $17,500.
Revenue Recognition	Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. ASU No. 2014-09, as amended, is effective for the Company as of January 1, 2018. The adoption did not result in any material change in the timing of recognizing revenue The adoption will also result in a change in the timing of recognizing revenue for sales where we ship the merchandise to the customer from a distribution center or store, as revenue for sales where we ship the merchandise to customers will be recognized when control of the merchandise transfers to the customer, which is generally at the time of shipment rather than upon delivery of the products to the customer. Additionally, the Company has had a deminimis amount of sales returns. The Company, through the Her Imports retail locations and its eCommerce Website, www.herimports.com, sells a variety of hair extensions and related products. Revenue is recognized at the “point of sale” in the stores. Customers pay for the products using either cash, a debit card or a credit card. All sales are final. In the case of cash sales at the store, the store manager makes a nightly deposit of the cash. For credit card and debit sales, the Company recognizes the sale when the card is charged and approved. Sales tax collected from customers is excluded from revenue and is included in accrued liabilities on our condensed consolidated balance sheets. Product purchases on the Company’s Website are paid for using either debit cards, credit cards, or PayPal Revenue for online product sales are recognized upon shipment of the product. Additionally, customers have the option of making installment payments on products purchased. In this case fifty percent of the purchase price is paid at the time of sale and the remainder withdrawn from the customer’s account via ACH. Because there is a significant amount of uncertainty related to the subsequent collections via ACH, those payment are only recognized as revenue upon receipt. Finally, customers may purchase product using a payment facility called PayNearMe where a customer who doesn’t have a debit/credit/PayPal account can place an online order with an agreement to take cash and pay for the order at a PayNearMe location. The product is then shipped at time PayNearMe notifies the Company that the payment has been received. Revenue is recognized at the time of the shipment of the product. Also included in revenue is shipping revenue from our e-commerce customers. Sales taxes collected from retail customers are excluded from reported revenues when control of the merchandise transfers to the customers, which is generally at the time of shipment rather than upon delivery of the products to the customer.
Income Taxes	Income Taxes The Company accounts for income taxes under the liability method in accordance with FASB ASC 740-10. Under this standard, deferred income tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. Deferred income tax assets are reduced by a valuation allowance when the Company is unable to make the determination that it is more likely than not that some portion or all the deferred income tax asset will be realized.
Earnings (Loss) Per Share	Earnings (Loss) per Share The Company utilizes FASB ASC 260. Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Common equivalent shares are excluded from the computation if their effect is anti-dilutive.
Reverse Stock Split	Reverse Stock Split All references to numbers of shares of our common stock and per-share information in the accompanying financial statements have been adjusted retroactively to reflect the Company’s 1-for- 2 reverse stock split effected on January 31, 2017, and a 1-for-6 reverse stock split effective April 19, 2018. The par value was not adjusted because of the reverse stock splits.
Stock-based Compensation	Stock-based compensation The Company records stock-based compensation issued to external entities for goods and services at either the fair market value of the shares issued, or the value of the services received, whichever is more readily determinable, using the measurement date guidelines enumerated in FASB ASC 505-50-30. There was no stock based compensation for the three months ended March 31, 2017. For the three months ended March 31, 2018, the Company recognized stock basedcompensation expense of $19,821.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Except as noted below, the Company has considered all recent accounting pronouncements and has concluded that there are no recent accounting pronouncements that may have a material impact on its condensed consolidated financial statements, based on current information. In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018. We are still assessing the impact of this ASU on our condensed consolidated financial statements, but we expect that it will result in a substantial increase in our long-term assets and liabilities. We will adopt the ASU beginning in the first quarter of fiscal 2019. In January 2017, the FASB issued ASU No. 217-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The amendments simplify the subsequent measurement of goodwill and eliminate the two-step goodwill impairment test. The ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not anticipate any material impact on the condensed consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606)

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Schedule of Deposits	March 31, 2018 2017 Deposits on Products $ 369,477 $ 315,931 Security Deposits 21,808 40,248 Total $ 391,285 $ 356,179
Estimated Useful Lives of Significant Property and Equipment	The estimated useful lives for significant property and equipment categories are as follows: Furniture and fixtures 5 years Computers and equipment 3 years Software 5 years Kiosks 3 years Leasehold improvement remaining life of the lease

Property, Equipment and Softw19

Property, Equipment and Software (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Summary of Property, Equipment and Software	Property and equipment consisted of the following: March 31, 2018 December 31, 2017 Software $ 113,310 $ 463,310 Computers and equipment 98,393 99,592 Furniture 30,391 30,391 Leasehold improvements 21,693 19,493 subtotal 263,787 612,786 Accumulated depreciation and amortization (113,819 ) (345,322 ) Property, equipment and software, net $ 149,968 $ 267,464

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Lease Payments	Future lease obligation for these facilities are as follows: Year Amount 2018 (remaining nine months) $ 193,339 2019 104,773 2020 62,019 2021 53,990 2022 54,134 Thereafter 18,077 Total $ 486,332

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-based Compensation Expense	Stock-based compensation expense is included in the following captions on the condensed consolidated statements of operations. Three Month Ended March 31, 2018 Selling expense $ 9,510 General and administrative expense 10,311 Total $ 19,821
Schedule of Outstanding Stock Options	Changes in the Company’s outstanding stock options under the plan during the three months ended March 31, 2018 were as follows: Weighted Number of Average Options Price Outstanding at December 31, 2017 50,000 $ 9.42 Granted - - Exercised - - Forfeited of expired (8,333 ) 10.68 Outstanding at March 31, 2018 41,667 $ 9.20 Exercisable at March 31, 2018 17,080 $ 7.43
Summary of Weighted Average Stock Options Assumptions	A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s stock options that are categorized within Level 3 of the fair value hierarchy for the year ended March 31, 2017 is as follows: Strike Price $0.30 to $1.78 Volatility 46.21 % Risk-free interest rate 2.15 % Contractual life (in years) 5 Dividend yield (per share) 0 %

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Provision for Income Taxes	The provision (benefit) for income taxes for the three months ended March 31, 2018 and 2017 consisted of the following: Three Months Ended March 31, March 31, 2018 2017 U.S. Federal $ (53,044 ) $ 215,608 U.S. State (6,743 ) 14,005 Total (59,787 ) 229,613 Deferred - - Total provision (benefit) for income taxes $ (59,787 ) $ 229,613

Description of the Company (Det

Description of the Company (Details Narrative) - USD ($)	Jun. 29, 2014	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Apr. 20, 2017	Nov. 28, 2016
Preferred stock call price per share		$ 0.144		$ 0.144
Liquidation preference price per share		$ 2		$ 2
One time charges		$ 383,542
Royalties		$ 4,927
Asset Share Purchase & Business Agreement [Member]
Unregistered non-voting, non-cumulative, callable preferred stock						10,000,000
Revised unregistered preferred stock						5,000,000
Preferred stock call price per share						$ 0.144
Unregistered common stock						1,250,000
Cabello Real Ltd [Member] | Asset Share Purchase & Business Agreement [Member]
Unregistered non-voting, non-cumulative, callable preferred stock						10,000,000
Revised unregistered preferred stock						5,000,000
Preferred stock call price per share						$ 0.144
Liquidation preference price per share						$ 2
Unregistered common stock						1,250,000
Callable non-cumulative preferred stock designated						5,000,000
Callable non-cumulative preferred stock, par value						$ 0.001
Cabello Real Ltd [Member] | Media Investor Purchaser Agreement [Member]
Common stock price per share	$ 0.05
Number of common stock shares issued	9,500,000
Cabello Real Ltd [Member] | Marketing and Selling Agreement [Member]
Royalty cash payments percentage					2.00%
Leader Act Ltd HK [Member] | Media Investor Purchaser Agreement [Member]
Value of advanced amount under agreement	$ 50,000
Number of stock conversion of converted shares	83,333
Common stock price per share	$ 0.60

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	May 28, 2014	Jan. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Nov. 28, 2016
Reverse stock split		1-for- 2 reverse stock split
Cash deposit (FDIC)			$ 250,000
Allowance for doubtful accounts
Computer software unamortized written off value			99,167
Recognized stock base compensation expense			$ 19,821
April 9, 2018 [Member]
Reverse stock split			1-for-6 reverse stock split
Asset Share Purchase & Business Agreement [Member]
Value of trademark						$ 8,200,000
E-Commerce Software Program [Member]
Software amortization, terms	5 years
Amortization expense				$ 17,500
Common Stock [Member] | E-Commerce Software Program [Member]
Number of common stock shares purchased during the period	833,333
Number of common stock purchased during the period	$ 350,000

Summary of Significant Accoun25

Summary of Significant Accounting Policies - Schedule of Deposits (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Accounting Policies [Abstract]
Deposits on Products	$ 369,477		$ 315,931
Security Deposits	21,808		40,248
Total	$ 391,285	$ 196,392	$ 356,179

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Estimated Useful Lives of Significant Property and Equipment (Details)	3 Months Ended
	Mar. 31, 2018
Furniture and Fixtures [Member]
Estimated useful lives	5 years
Computers and Equipment [Member]
Estimated useful lives	3 years
Software [Member]
Estimated useful lives	5 years
Kiosks [Member]
Estimated useful lives	3 years
Leasehold Improvement [Member]
Estimated useful lives	remaining life of the lease

Property, Equipment and Softw27

Property, Equipment and Software (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 19,997	$ 27,428

Property, Equipment and Softw28

Property, Equipment and Software - Summary of Property, Equipment and Software (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Software	$ 113,310	$ 463,310
Computers and equipment	98,393	99,592
Furniture	30,391	30,391
Leasehold improvements	21,693	19,493
Property, equipment and software, gross	263,787	612,786
Accumulated depreciation and amortization	(113,819)	(345,322)
Property, equipment and software, net	$ 149,967	$ 267,464

Sales Tax Payable (Details Narr

Sales Tax Payable (Details Narrative)	Mar. 31, 2018USD ($)
Sales Tax [Member]
Tax amount	$ 58,218

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Related party receivables	$ 145,310	$ 94,521	$ 108,026
Dividend declared	60,000
Royalty expense	4,927
OSIworks [Member]
Royalty expense	$ 4,927

Commitments and Contingencies31

Commitments and Contingencies (Details Narrative) - USD ($)	Mar. 13, 2018	Feb. 28, 2017	Jan. 12, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Rent expense				$ 124,389	$ 150,528
Purchase of common stock from stockholder					$ (25,000)
Other asset				25,000		$ 25,000
Investment in subsidiary				$ 25,000
Legal fees	$ 25,000
Business Purchase Agreement [Member] | EnzymeBioSystems, Inc [Member]
Equity method investment, ownership percentage			100.00%
Number of common stock shares exchanged			9,167
Number of common stock shares exchanged, value			$ 25,000
Purchase of common stock from stockholder		$ (25,000)
Product Concentration Risk [Member] | Two Vendors [Member]
Concentrations risk percentage				94.70%	96.00%

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Lease Payments (Details)	Mar. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2018 (remaining nine months)	$ 193,339
2,019	104,773
2,020	62,019
2,021	53,990
2,022	54,134
Thereafter	18,077
Total	$ 486,332

Promissory Notes (Details Narra

Promissory Notes (Details Narrative) - USD ($)	Nov. 08, 2017	Nov. 08, 2017	Sep. 15, 2016	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017
Note payable					$ 369,299	$ 177,390
Interest expense				$ 634
UPS Capital Corporation [Member]
Line of credit facility		$ 500,000
Percent of loan on invoice amount	100.00%	100.00%
UPS Capital Corporation [Member] | Air Shipment [Member]
Transaction fee, percent	1.85%
UPS Capital Corporation [Member] | Ocean Shipment [Member]
Transaction fee, percent	2.75%
AdMaxOffers.com LLC [Member]
Conversion of stock, shares converted for promissory note			25,000
Note face value			$ 60,000
Monthly principal payment			$ 5,000
Notes interest rate percentage			6.50%
Promissory note booked payment			$ 57,940

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Oct. 13, 2016	Jan. 31, 2017	Mar. 31, 2018	Dec. 31, 2017	Nov. 28, 2016
Reverse stock split		1-for- 2 reverse stock split
Preferred stock call price per share			$ 0.144	$ 0.144
Preferred stock, shares authorized			10,000,000	10,000,000
Preferred stock, shares issued			5,000,000	5,000,000
Preferred stock, shares outstanding			5,000,000	5,000,000
Common stock, shares authorized			70,000,000	70,000,000
Common stock, shares issued			4,150,039	4,150,039
Common stock, shares outstanding			4,150,039	4,150,039
Software unamortized written off value			$ 99,167
April 9, 2018 [Member]
Reverse stock split			1-for-6 reverse stock split
Asset Share Purchase & Business Agreement [Member]
Unregistered non-voting, non-cumulative, callable preferred stock					10,000,000
Revised unregistered preferred stock					5,000,000
Unregistered common stock					1,250,000
Unregistered common stock combined value					$ 8,200,000
Preferred stock call price per share					$ 0.144
Software Maintenance Agreement [Member]
Maintenance agreement, terms	5 years
Issuance of common stock in exchange of software maintenance agreement, Shares	250,000
Issuance of common stock in exchange of software maintenance agreement	$ 375,000
Software unamortized written off value	$ 265,625
Cabello Real Ltd [Member]
Preferred stock dividend payment				$ 720,000
Preferred stock monthly dividend payment				$ 60,000
Preferred stock dividend payment shares				5,000,000

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation	$ 19,821
Weighted average remaining contractual term	4 years 4 months 2 days
Options outstanding value	$ 148,259

Stock Based Compensation - Sche

Stock Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Total	$ 19,821
Selling Expense [Member]
Total	9,510
General and Administrative Expense [Member]
Total	$ 10,311

Stock Based Compensation - Sc37

Stock Based Compensation - Schedule of Outstanding Stock Options (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Options Outstanding Beginning Balance | shares	50,000
Number of Options Granted | shares
Number of Options Exercised | shares
Number of Options Forfeited of Expired | shares	(8,333)
Number of Options Outstanding Ending Balance | shares	41,667
Number of Options Exercisable Ending Balance | shares	17,080
Weighted Average Price Outstanding Beginning Balance | $ / shares	$ 9.42
Weighted Average Price Granted | $ / shares
Weighted Average Price Exercised | $ / shares
Weighted Average Price Forfeited of Expired | $ / shares	10.68
Weighted Average Price Outstanding Ending Balance | $ / shares	9.20
Weighted Average Price Exercisable Ending Balance | $ / shares	$ 7.43

Stock Based Compensation - Summ

Stock Based Compensation - Summary of Weighted Average Stock Options Assumptions (Details)	3 Months Ended
	Mar. 31, 2018$ / shares
Volatility	46.21%
Risk-free interest rate	2.15%
Contractual life (in years)	5 years
Dividend yield (per share)	0.00%
Minimum [Member]
Strike Price	$ 0.30
Maximum [Member]
Strike Price	$ 1.78

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Corporate taxed income	$ 10,000,000
Corporate tax rate	35.00%
Corporate flat rate	21.00%
Estimated blended tax rate	23.10%
Provision for tax percentage		35.40%
Income before benefit (provision) for income taxes	$ 268,843	$ (647,512)
Amortization of trademark expenses	546,667
Tax loss carryforward	$ 996,000

Income Taxes - Schedule of Prov

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
U.S. Federal	$ (53,044)	$ 215,608
U.S. State	(6,743)	14,005
Total	(59,787)	229,613
Deferred
Total provision (benefit) for income taxes	$ (59,787)	$ 229,613

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - Callable Preferred Stock [Member] - USD ($)	May 02, 2018	Apr. 09, 2018
Preferred stock monthly dividend payment	$ 60,000	$ 60,000
Preferred stock dividend payment shares	5,000,000	5,000,000