Alternative Investment (AIKO) 10-Q 14 Mar 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Mar. 14, 2017
Document And Entity Information
Entity Registrant Name	Alternative Investment Corp
Entity Central Index Key	1,405,660
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,638,750
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 3,504	$ 47,428
Interest receivable	14,198	9,654
Due from Fingi	50,000	56,502
Investment in commercial paper	200,000	200,000
Total current assets	267,702	313,584
Acquisition deposits	50,000	340,000
Total non current assets	50,000	340,000
Total assets	317,702	653,584
Current liabilities:
Accounts payable	59,993	37,657
Credit Card Payable	10,043	0
Accrued expenses	21,500	21,500
Due to Fingi	5,948	0
Due to Fess	35,120	0
Amount due to shareholder	322,490	312,490
Total current liabilities	455,094	371,647
Total liabilities	455,094	371,647
Stockholders' deficit:
Common stock, $.001 par value, 1,600,000,000 shares authorized,8,648,808 shares issued and 8,638,750 shares outstanding at each of the periods ended December 31, 2016 and September 30, 2016	8,649	8,649
Additional paid-in capital	465,951	463,610
Common stock issuable, 15,761,500 shares	574,975	574,975
Treasury stock, at cost	(80)	(80)
Accumulated deficit	(1,186,887)	(765,217)
Total stockholders' equity (deficit)	(137,392)	281,937
Total liabilities and stockholders' equity (deficit)	$ 317,702	$ 653,584

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Sep. 30, 2016
Balance Sheets Parenthetical
Common stock par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, shares issued	8,648,808	8,648,808
Common stock, shares outstanding	8,638,750	8,638,750
Common stock issuable	15,761,500	15,761,500

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statements Of Operations
Net revenue	$ 0	$ 0
Cost of revenue	0	0
Gross profit	0	0
General and administrative expenses	113,796	42,965
Loss from operations	(113,796)	(42,965)
Other income (expense):
Interest Income	4,544	4,032
Interest expense	(2,418)	(2,586)
Forfeiture of acquisition deposit	(310,000)	0
Total other income (expense)	(307,874)	1,446
Loss before income taxes	(421,670)	(41,519)
Provision for income taxes	0	0
Net loss	$ (421,670)	$ (41,519)
Net loss per share - basic and diluted	$ (.02)	$ 0
Weighted average number of shares outstanding - Basic and Diluted	24,400,250	9,487,935

Statements of Cash Flows

Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net loss	$ (421,670)	$ (41,519)
Adjustments to reconcile net loss to net cash used in operations:
Accretion of beneficial conversion feature as interest	0	2,157
Forfeiture of acquisition deposit	310,000	0
Changes in operating assets and liabilities:
Interest Receivable	(4,544)	(4,032)
Credit Card Payable	10,043	0
Accounts payable	22,336	12,874
Accrued interest	0	(3,465)
Due to Fess	35,120	0
Net cash used in operating activities	(48,715)	(33,985)
Cash flows from investing activities:
Acquisition deposit	(20,000)	(50,000)
Due (to) from Fingi	12,450	0
Net cash used in by investing activities	(7,550)	(50,000)
Cash flows from financing activities:
Payments on notes payable	2,341	(37,039)
Proceeds from loans from shareholder	10,000	0
Proceeds from sale of common stock Subscriptions	0	25,000
Net cash provided by (used in) financing activities	12,341	(12,039)
Net decrease in cash	(43,924)	(96,024)
Cash and cash equivalents at beginning of period	47,428	124,531
Cash and cash equivalents at end of period	3,504	28,507
Supplemental disclosure of cash flow information:
Cash paid for interest	0	3,894
Cash paid for taxes	0	0
Supplemental disclosure of non-cash financing activities:
Beneficial conversion feature on convertible note payable	$ 0	$ 0

1. Nature of Business, Presenta

1. Nature of Business, Presentation and Going Concern	3 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business, Presentation and Going Concern	Organization Alternative Investment Corporation (the "Company") was incorporated in Nevada on March 26, 2007 under the name of China Digital Ventures Corporation. The principal business of the Company was its web based telecom and IPTV businesses, both of which were disposed of during the year ended September 30, 2010. As of the date hereof, the Company has no operations. On July 23, 2010, the Company experienced a change in control. Canton Investments Ltd (“CIL” or “Canton”) acquired a majority of the issued and outstanding common stock of the Company in accordance with stock purchase agreements by and between CIL and Wireless One International Limited (“Wireless One”), Bing HE and Ning HE, the Company’s former directors, and other various shareholders. On the closing date, July 23, 2010, pursuant to the terms of the Stock Purchase Agreement, CIL purchased from Wireless One and Bing HE and Ning HE 28,750,000 shares of the Company’s outstanding common stock for $205,750. Also on July 23, 2010, CIL purchased 6,100,000 shares of the Company’s outstanding common stock for $36,600 from various shareholders. As a result of the change in control, CIL owned a total of 34,850,000 shares of the Company’s common stock representing 91.54%. On May 10, 2012, the Company filed an amendment to its Articles of Incorporation in the State of Nevada to change its name to Paradigm Resource Management Corporation. On September 10, 2012, CIL contributed 30,000,000 shares of common stock to the Company’s treasury. The Company immediately retired and canceled these shares. As a result of the contribution of shares, CIL owns a total of 4,850,000 shares of the Company’s common stock representing 60%. On July 24, 2013, the Company entered into an agreement with AMSA Development Technology Co Ltd (“AMSA”) to acquire 402,300 shares of TOSS Plasma Technologies Ltd. (“TPT”) previously held by AMSA in exchange for 896,667 shares of its common stock. The 402,300 shares of TPT represent 10.1% of TPT’s outstanding common stock. The agreement also provides AMSA an option to acquire an additional 1,120,833 shares of the Company’s common stock and provides the Company an option to acquire an additional 402,300 shares of TPT common stock from AMSA. On December 4, 2013, the Company and AMSA entered into an Amendment to the Agreement dated July 24, 2013. Under the terms of the amendment, the Company had the option to acquire up to a total of 3,432,000 shares of TPT from AMSA and AMSA had the option to acquire up to a total of 5,746,667 shares of common stock of the Company. The options expired on June 2, 2014. On September 10, 2015, the Company and AMSA entered into a Rescission Agreement to fully rescind the previous acquisition agreement of shares of TPT and returned previously issued shares of each company to each other. On September 18, 2015, the Company filed an amendment to its Articles of Incorporation in the State of Nevada to change its name to Alternative Investment Corporation. On April 1, 2016, the Company entered into a Shareholders’ Agreement (the “Agreement”) with Basil and Barns, Inc., a New York corporation incorporated on February 2, 2016, (“B&B Inc.”), Fess Holdings LLC, Basil and Barns LLC and JIF Holdings LLC to acquire 55% of the outstanding common shares of B&B Inc. On February 27, 2017, the Company entered into an agreement with B&B Inc, Fess, Basil and Barns LLC and JIF Holdings LLC, wherein the Company has been unable to provide finding as per the original Agreement, having only provided $360,000 to date, the parties agreed to allow the Company to assign its remaining funding obligations and its ownership shares to a new ownership, in consideration of $50,000 to be paid to the Company and forfeiture of the $360,000 acquisition deposit. As of February 27, 2017, the Company is no longer participating in the original Agreement, directly or through related parties. Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial statement presentation and in accordance with Form 10-Q. Accordingly, they do not include all of the information and footnotes required in annual financial statements. In the opinion of management, the unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position and results of operations and cash flows. The results of operations presented are not necessarily indicative of the results to be expected for any other interim period or for the entire year. These unaudited financial statements should be read in conjunction with our 2016 annual financial statements included in our Form 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”) on January 13, 2017. Going Concern The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred a net loss of $421,670 for the three months ended December 31, 2016 and has incurred cumulative losses since inception of $1,186,887. The Company has a stockholders’ deficit of $137,392 at December 31, 2016. These conditions raise substantial doubt about the ability of the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon its abilities to generate revenues, to continue to raise investment capital, and develop and implement its business plan. No assurance can be given that the Company will be successful in these efforts. The unaudited financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. No assurance can be given that the Company will be successful in these efforts.

2. Related Party Transactions

2. Related Party Transactions	3 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	As of December 31, 2016 and September 30, 2016, $312,490 was due to Canton. The loan is unsecured, non-interest bearing and there is no repayment date. Interest has been calculated at imputed interest rate of 3% and amounted to $2,342 for the three months ended December 31, 2016. Interest was not imputed for the three months ended December 31, 2015. On April 1, 2016 the Company issued a loan to Fingi Inc., a company of which Canton may be deemed a controlling person, in the amount of $50,000. The terms include no monthly payments with interest compounding monthly at an annual rate of four percent (4%). The entirety of the accrued interest and principal were originally due on December 31, 2016. The Company is currently in negotiations to extend the loan agreement through June 30, 2017, as such an allowance for the $50,000 loan balance has not been recorded and is deemed collectible. For the three months ended December 31, 2016, $512 has been recognized as interest income and included in the condensed statements of operations, respectively. On February 2, 2016, the Company entered into an expense sharing agreement with Fingi Inc. Under the expense sharing agreement, the Company shares the rent and utility expenses incurred in connection with occupancy of office space that is being leased by Fingi Inc. During the three months ended December 31, 2016 amount due for rent was $3,679 per month. For the three months ended December 31, 2016, total rent and utilities expenses amounted to $12,450. At December 31, 2016, amounts due to Fingi represent amounts due for rent and utilities, or amount paid for expenses on behalf by of the Company by Fingi. During the three months ended December 31, 2016 a shareholder paid for expenses on behalf of the Company in the amount of $10,000, resulting in amount due to shareholder of $10,000. During the three months ended December 31, 2016, amounts due to Fess, represent amounts paid by Fess for expenses on behalf of the Company.

3. Acquisition Deposit

3. Acquisition Deposit	3 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
Acquisition Deposit	Effective April 1, 2016, the Company entered into a Shareholders’ Agreement (the “Agreement”) with Basil and Barns, Inc., a New York corporation incorporated on February 2, 2016, (“B&B Inc.”), Fess Holdings LLC (“Fess”), Basil and Barns LLC and JIF Holdings LLC to acquire 55% of the outstanding common shares of B&B Inc. Under the Agreement, the Company is to invest $1,400,000 including a $600,000 capital contribution for its 55% interest in B&B Inc., a $500,000 3 year loan at 7% interest per annum, and $300,000 line of credit. The Company has also agreed to provide up to an additional $1,800,000 of asset based loans for purchases of new assets as required. B&B Inc. is to acquire 110 acres of land in Bethel, NY which is to be developed into a hotel property. Financial statements or pro-forma financial statements have not been provided herein as B&B Inc. was formed on February 2, 2016 and has no assets or liabilities. During the year ended September 30, 2016, the Company paid a total of deposits of $340,000 towards the anticipated amounts. During the three months ended December 31, 2016 the Company paid an additional $20,000. On February 27, 2017, the Company entered into an agreement with B&B Inc, Fess, Basil and Barns LLC and JIF Holdings LLC, wherein the Company has been unable to provide finding as per the original Agreement, having only provided $360,000 to date, the parties agreed to allow the Company to assign its remaining funding obligations and its ownership shares to a new ownership, in consideration of $50,000 to be paid to the Company and forfeiture of the $360,000 acquisition deposit. As of February 27, 2017, the Company is no longer participating in the original Agreement, directly or through related parties. As of December 31, 2016, the Company recorded a forfeiture of the acquisition deposit of $310,000 in the accompanying statement of operations.

4. Investment in Commercial Pap

4. Investment in Commercial Paper	3 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Investment in Commercial Paper	During the year ended September 30, 2015, the Company invested in two $100,000 convertible bonds from Bullion Japan Inc. for a total investment of $200,000. The bonds mature July 3, 2017 and June 8, 2017, respectively, earn interest at eight percent (8%) per annum paid quarterly, and are convertible into common stock of Bullion Japan Inc. at the Company’s option any time prior to the maturity date at a price of JPY ¥8,035 ($6.46) per share. During the three months ended December 31, 2016 and 2015, $4,032 and $8,482, respectively, of interest has been accrued and included in the statement of operations as interest income, respectively.

5. Stockholders' Equity

5. Stockholders' Equity	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Stockholders' Equity	The Company has authorized 1,600,000,000 shares of Common Stock, $0.001 par value. As of each, the three months ended December 31, 2016 and the year ended September 30, 2016, the Company had 8,648,808 shares of Common Stock issued and 8,638,750 shares outstanding. There was no activity affecting Common Stock or Common Stock issuable during the three months ended December 31, 2016.

6. Subsequent Events

6. Subsequent Events	3 Months Ended
	Dec. 31, 2016
Subsequent Events
Subsequent Events	The Company has evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. The Company has determined that there are no such events that warrant disclosure or recognition in the financial statements.

1. Nature of Business, Presen12

1. Nature of Business, Presentation and Going Concern (Policies)	3 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Alternative Investment Corporation (the "Company") was incorporated in Nevada on March 26, 2007 under the name of China Digital Ventures Corporation. The principal business of the Company was its web based telecom and IPTV businesses, both of which were disposed of during the year ended September 30, 2010. As of the date hereof, the Company has no operations. On July 23, 2010, the Company experienced a change in control. Canton Investments Ltd (“CIL” or “Canton”) acquired a majority of the issued and outstanding common stock of the Company in accordance with stock purchase agreements by and between CIL and Wireless One International Limited (“Wireless One”), Bing HE and Ning HE, the Company’s former directors, and other various shareholders. On the closing date, July 23, 2010, pursuant to the terms of the Stock Purchase Agreement, CIL purchased from Wireless One and Bing HE and Ning HE 28,750,000 shares of the Company’s outstanding common stock for $205,750. Also on July 23, 2010, CIL purchased 6,100,000 shares of the Company’s outstanding common stock for $36,600 from various shareholders. As a result of the change in control, CIL owned a total of 34,850,000 shares of the Company’s common stock representing 91.54%. On May 10, 2012, the Company filed an amendment to its Articles of Incorporation in the State of Nevada to change its name to Paradigm Resource Management Corporation. On September 10, 2012, CIL contributed 30,000,000 shares of common stock to the Company’s treasury. The Company immediately retired and canceled these shares. As a result of the contribution of shares, CIL owns a total of 4,850,000 shares of the Company’s common stock representing 60%. On July 24, 2013, the Company entered into an agreement with AMSA Development Technology Co Ltd (“AMSA”) to acquire 402,300 shares of TOSS Plasma Technologies Ltd. (“TPT”) previously held by AMSA in exchange for 896,667 shares of its common stock. The 402,300 shares of TPT represent 10.1% of TPT’s outstanding common stock. The agreement also provides AMSA an option to acquire an additional 1,120,833 shares of the Company’s common stock and provides the Company an option to acquire an additional 402,300 shares of TPT common stock from AMSA. On December 4, 2013, the Company and AMSA entered into an Amendment to the Agreement dated July 24, 2013. Under the terms of the amendment, the Company had the option to acquire up to a total of 3,432,000 shares of TPT from AMSA and AMSA had the option to acquire up to a total of 5,746,667 shares of common stock of the Company. The options expired on June 2, 2014. On September 10, 2015, the Company and AMSA entered into a Rescission Agreement to fully rescind the previous acquisition agreement of shares of TPT and returned previously issued shares of each company to each other. On September 18, 2015, the Company filed an amendment to its Articles of Incorporation in the State of Nevada to change its name to Alternative Investment Corporation. On April 1, 2016, the Company entered into a Shareholders’ Agreement (the “Agreement”) with Basil and Barns, Inc., a New York corporation incorporated on February 2, 2016, (“B&B Inc.”), Fess Holdings LLC, Basil and Barns LLC and JIF Holdings LLC to acquire 55% of the outstanding common shares of B&B Inc. On February 27, 2017, the Company entered into an agreement with B&B Inc, Fess, Basil and Barns LLC and JIF Holdings LLC, wherein the Company has been unable to provide finding as per the original Agreement, having only provided $360,000 to date, the parties agreed to allow the Company to assign its remaining funding obligations and its ownership shares to a new ownership, in consideration of $50,000 to be paid to the Company and forfeiture of the $360,000 acquisition deposit. As of February 27, 2017, the Company is no longer participating in the original Agreement, directly or through related parties.
Basis of Presentation	The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial statement presentation and in accordance with Form 10-Q. Accordingly, they do not include all of the information and footnotes required in annual financial statements. In the opinion of management, the unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position and results of operations and cash flows. The results of operations presented are not necessarily indicative of the results to be expected for any other interim period or for the entire year. These unaudited financial statements should be read in conjunction with our 2016 annual financial statements included in our Form 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”) on January 13, 2017.
Going Concern	Going Concern The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred a net loss of $421,670 for the three months ended December 31, 2016 and has incurred cumulative losses since inception of $1,186,887. The Company has a stockholders’ deficit of $137,392 at December 31, 2016. These conditions raise substantial doubt about the ability of the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon its abilities to generate revenues, to continue to raise investment capital, and develop and implement its business plan. No assurance can be given that the Company will be successful in these efforts. The unaudited financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. No assurance can be given that the Company will be successful in these efforts.

1. Nature of Business, Presen13

1. Nature of Business, Presentation and Going Concern (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (421,670)	$ (41,519)
Accumulated Deficit since inception	(1,186,887)		$ (765,217)
Stockholders' deficit	$ (137,392)		$ 281,937

2. Related Party Transactions (

2. Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Due to related party	$ 322,490	$ 312,490
Fingi [Member]
Imputed interest rate	4.00%
Loan to affiliate	$ 50,000
Interest income from related party	512
Rent and utilities due from affiliate	12,450
Canton [Member]
Due to related party	$ 312,490	$ 312,490
Imputed interest rate	3.00%
Interest expense, related party	$ 2,342
Shareholder [Member]
Due to related party	$ 10,000

3. Acquisition Deposit (Details

3. Acquisition Deposit (Details Narrative)	3 Months Ended		6 Months Ended	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Apr. 01, 2016USD ($)a	Sep. 30, 2016USD ($)
Forfeiture of acquisition deposit	$ (310,000)	$ 0
Basil and Barns [Member]
Acquistion percentage			55.00%
Total consideration			$ 1,400,000
Capital contribution			600,000
Loan payable			$ 500,000
Stated interest rate			7.00%
Credit line			$ 300,000
Commitment for purchases of new assets			$ 1,800,000
Land to be received | a			110
Deposits paid	$ 20,000			$ 340,000

4. Investment in Commercial P16

4. Investment in Commercial Paper (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Convertible bonds purchased			$ 200,000
Interest rate per annum	8.00%
Investment maturity date	Jul. 3, 2017
Investment income	$ 4,032	$ 8,482

5. Stockholders Deficit (Detail

5. Stockholders Deficit (Details Narrative) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Equity [Abstract]
Common stock par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, shares issued	8,648,808	8,648,808
Common stock, shares outstanding	8,638,750	8,638,750
Common stock issuable	$ 574,975	$ 574,975
Common stock issuable	15,761,500	15,761,500