Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 19, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | PhoneBrasil International, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 29,034,000 | |
Amendment Flag | false | |
Entity Central Index Key | 0001407573 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-56176 | |
Entity Incorporation, State or Country Code | NJ | |
Entity Address, Address Line One | 21 Omaha Street | |
Entity Address, City or Town | Dumont | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07628 | |
City Area Code | (201) | |
Local Phone Number | 387-7700 | |
Entity Interactive Data Current | Yes | |
Entity Tax Identification Number | 00-0000000 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash In Banks | $ 55,025 | $ 863,812 |
Accounts Receivable - Net of Allowance | 826,698 | 487,239 |
Prepaid | 434,443 | 141,625 |
Total Current Assets | 1,316,166 | 1,492,676 |
Fixed Assets | ||
Fixed Assets - Cost | 1,460,175 | 1,597,986 |
Less: Accumulated Depreciation | (1,347,261) | (1,460,125) |
Fixed Assets - Book Value | 112,914 | 137,861 |
Other Assets | ||
Employee Incentive Mortgages | 0 | 6,578 |
TOTAL ASSETS | 1,429,080 | 1,637,115 |
Current Liabilities | ||
Accounts Payable | 1,406,577 | 178,574 |
Loan Payable - Related Party | 646,035 | 0 |
Total Current Liabilities | 2,052,612 | 178,574 |
Other Liabilities | ||
Loan Payable - Stockholder | 464,078 | 464,078 |
Total Liabilities | 2,516,690 | 642,652 |
Stockholders’ Equity | ||
Preferred Stock, $0.000001 par value, 10,000,000 Shares authorized, 3,094,000 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 3 | 3 |
Common stock, $0.000001 par value, 1,650,000,000 Shares authorized, 29,034,000 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 29 | 29 |
Additional paid in capital | (208,312) | 91,688 |
Accumulated deficit | (879,330) | 902,743 |
Total Stockholders’ (Deficit) Equity | (1,087,610) | 994,463 |
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ 1,429,080 | $ 1,637,115 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in Dollars per share) | $ 0.000001 | $ 0.000001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 3,094,000 | 3,094,000 |
Preferred Stock, shares outstanding | 3,094,000 | 3,094,000 |
Common stock, par value (in Dollars per share) | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 1,650,000,000 | 1,650,000,000 |
Common stock, shares issued | 29,034,000 | 29,034,000 |
Common stock, shares outstanding | 29,034,000 | 29,034,000 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 892,948 | $ 1,227,019 | $ 3,742,883 | $ 4,108,000 |
Operating Expenses | ||||
Cost of Goods Sold | 825,502 | 722,940 | 2,715,972 | 2,773,559 |
Operating Expenses | 969,936 | 267,231 | 1,829,051 | 919,581 |
Depreciation | 8,315 | 6,903 | 24,946 | 20,709 |
Total Operating Expenses | 1,803,753 | 997,074 | 4,569,970 | 3,713,849 |
Operating Income (Loss) | (910,805) | 229,945 | (827,086) | 394,151 |
Interest Income | 48 | 406 | 864 | 1,219 |
Gain on Sale of Assets | 1,000 | 0 | ||
Income (Loss) from continuing operations before income taxes | (910,757) | 230,351 | (825,222) | 395,370 |
Non-Recurring Income | ||||
(loss) on Deconsolidation | 0 | 0 | (43,473) | 0 |
PPP Expense Reimbursement & Other Income | 0 | 0 | 361,299 | 351,370 |
Net Income / (Loss) | $ (910,757) | $ 230,351 | $ (507,396) | $ 746,740 |
Basic and Diluted earnings(loss) per common Share (in Dollars per share) | $ (0.03) | $ 0.02 | $ (0.02) | $ 0.06 |
Weighted Average number of common shares outstanding (in Shares) | 29,034,000 | 14,164,435 | 29,034,000 | 12,085,095 |
Statements of Stockholders Defi
Statements of Stockholders Deficit (Unaudited) - USD ($) | Capital Stock | Retained Earnings | Total Stockholders’ Equity | Common Stock | Preferred Stock | APIC | Accumulated RE | Total |
Balance at Dec. 31, 2019 | $ 91,720 | $ 902,743 | ||||||
Balance (in Shares) at Dec. 31, 2019 | 994,463 | |||||||
Recapitalization MIKAB/PHBR | (91,720) | (902,743) | $ 29 | $ 3 | 91,688 | 902,743 | 994,463 | |
Recapitalization MIKAB/PHBR (in Shares) | (994,463) | 29,034,000 | 3,094,000 | |||||
Balance at Dec. 31, 2020 | $ 29 | $ 3 | 91,688 | 902,743 | 994,463 | |||
Balance (in Shares) at Dec. 31, 2020 | 29,034,000 | 3,094,000 | ||||||
Cash distribution to members | (1,261,729) | (1,261,729) | ||||||
Stockholder’s Life Insurance | (12,948) | (12,948) | ||||||
Conversion of PhoneBrasil International Equity | (17,550) | (17,550) | ||||||
Recapitalization Expenses | (282,450) | (282,450) | ||||||
Net Income (Loss) | (507,396) | (507,396) | ||||||
Balance at Sep. 30, 2021 | $ 29 | $ 3 | $ (208,312) | $ (879,330) | $ (1,087,610) | |||
Balance (in Shares) at Sep. 30, 2021 | 29,034,000 | 3,094,000 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net Income / (Loss) from continuing operations | $ (868,695) | $ 746,740 |
Stock-based compensation | 0 | 0 |
Adjustments to reconcile net operating income / (Loss) to net cash provided by operating activities: | ||
Depreciation | 24,946 | 20,709 |
Amortization of employee incentive mortgages | 6,578 | 23,684 |
PPP Expense Reimbursement | 361,299 | 351,370 |
(Increase) / Decrease in Net Accounts Receivable | (339,459) | 185,954 |
(Increase) / Decrease in Other Assets | (292,821) | 43,226 |
Increase / (Decrease) in Accounts Payable | 1,228,007 | (53,387) |
Net cash provided by operating activities | 119,855 | 1,318,296 |
Cash Flows from Investing Activities | ||
Proceed from related party loans | 0 | 39,935 |
Net cash (used) by investing activities | 0 | 39,935 |
Cash Flows from Financing Activities | ||
(Repayment) of Loan from Related Party | 326,035 | (55,000) |
Premiums paid for stockholders’ life insurance | 7,052 | (34,563) |
Distributions to stockholders | (1,261,729) | (133,308) |
Net cash (used) / provided by financing activities | (928,642) | (222,871) |
Net Increase in Cash and Cash Equivalents | (808,787) | 1,135,360 |
Add: Cash and Cash Equivalents - Beginning | 863,812 | 492,330 |
Cash and Cash Equivalents - Ending | 55,025 | 1,627,690 |
Supplemental Disclosures: | ||
Interest paid | 0 | 0 |
Income taxes paid | 2,890 | 1,500 |
Common Stock issued to reduce notes payable related parties | $ 0 | $ 5,000 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS PhoneBrasil International, Inc. f/k/a Utz Technologies, Inc. (the “Company”, or “PhoneBrasil”) was organized in New Jersey as Donald Utz Engineering, Inc. in 1991. In April of 1991, the Company changed its name to Utz Engineering, Inc. In March 2002, the Company changed its name to Utz Technologies, Inc. The Company changed its name to PhoneBrasil International, Inc. and further filed a Registration of Alternate Name in the State of New Jersey for the use of the name PhoneBrasil International, Inc. (“we” or the “Company”). We were a development stage company engaged in the telecommunications industry. On April 20, 2007, with a new management team in place, the Board of Directors, in furtherance of its plan designed to grow the Company substantially, and materially change the business direction of the Company, took the following action: 1. Elected to divest the Company of its then-current business activities by selling, in consideration of the assumption of all indebtedness and relief of obligations under executory contracts, all of its business assets; 2. Agreed to acquire all the capital shares of PhoneBrasil Telephonia Voipdigital, Inc., in exchange for 6,000,000 shares of the Company’s capital stock: and 3. Agreed, subject to Shareholder approval, to change the Company’s name to PhoneBrasil International Inc. On February 14, 2020, the Superior Court of New Jersey Equity Division appointed Custodian Ventures, LLC as the custodian for PhoneBrasil International, Inc., f/k/a Utz Technologies, Inc., Civil Action No. C-2-20, finding that Custodian Ventures, LLC had exhausted all reasonable means of serving the Summons and Complaint in the action to the officers and directors of PhoneBrasil International, Inc., f/k/a Utz Technologies, Inc., and thereby deemed to have served the Summons and Complaint pursuant to Rule 4:4-4(b)(3) and the officers and directors failed to answer or respond in the time allotted by Rule 1:20-6.2. There was no opposition. On September 30, 2020, the Company filed a Restated Certificate of Incorporation which increased the authorized shares to 300,000,000 shares of common stock and 10,000,000 shares of preferred stock each with a par value of $0.000001 per share. The preferred shares are convertible to common shares at a ratio of 30 to 1. The increase in the shares the Company is authorized to issue was made because Management believed that it would better position the Company in its efforts to make acquisitions of viable business entities on a stock for stock basis. The Board of Directors further believed it would benefit the shareholders to have a substantial number of unreserved shares available for issuance so that adequate shares may be available for the possible business combination or acquisition. On September 15, 2020, the Company issued 18,000,000 shares of $0.00001 par value common stock to Custodian Ventures, LLC in return for a reduction of $5,000 of the interest-free demand loans issued to the Company by Custodian Ventures, LLC. On October 5, 2020, the Company issued 10,000,000 shares of Series A Preferred Stock to Custodian Ventures, LLC in return for a reduction of $10,000 of related party debt that had been extended to the Company. Effective December 9, 2020, DR Shell LLC, a Delaware limited liability company (the “Buyer”) purchased from Custodian Ventures LLC, 18,000,000 shares of the common stock of the Company, representing approximately 62% of the outstanding Common Stock of the Company, and (ii) 10,000,000 shares of Convertible Preferred Stock of the Company, for a total purchase price of $245,000 in cash. The funds were provided by the Buyer’s members. The shares were acquired pursuant to a Stock Purchase Agreement, dated December 9, 2020 (the “SPA”), by and among the Seller, the Buyer, and David Lazar, then Chief Executive Officer of the Company and managing director of Custodian Ventures, LLC. Additionally, under the terms of the SPA, Mr. Lazar forgave $41,229 in related-party loans. As a result of the transaction, Mr. Ross DiMaggio, the manager of the Buyer, acquired control of the Company. Under the terms of the SPA, effective December 9, 2020, Mr. Lazar resigned as the Chief Executive Officer, Treasurer, and Secretary of the Company, and Mr. DiMaggio was appointed as the sole director, Chief Executive Officer, Treasurer, and Secretary of the Company. On August 12, 2021, The Company executed a Share Exchange Agreement with MIKAB Corporation (MIKAB). The Company exchanged 94.2% of the outstanding PhoneBrasil Common Stock for the capital stock of MIKAB. The exchange did not include two immaterial subsidiaries previously consolidated with MIKAB. MIKAB provides specialty contracting services to market participants in the telecommunications and clean energy industries and infrastructure build throughout the United States. A proportion of our workforce is staffed through a unique in-house program through which we hire and train military veterans to provide construction and maintenance services to our customers. We also hire employees with skill and experience in our fields and use third party independent contractors for our operations. On September 13, 2021 The Company increased it’s authorized common stock to 1,650,000,000. On September 24, 2021 the company designated 3,094,600 shares of Preferred Stock as Series A Convertible Preferred Stock. The Company’s accounting year-end is December 31. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) “FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. The Company entered into a Stock Purchase Agreement (the “SPA”) effective as of August 12, 2021 with MIKAB and its stockholders. On August 12, 2021, the Company completed the acquisition of all of the issued and outstanding stock of MIKAB and MIKAB became a wholly owned subsidiary of the Company. At the closing the Company delivered to the sellers a 94.6% of the Equity of The Company. Under guidance of ASU 805-10-55-11 thru 15 MIKAB has been identified as the acquirer for accounting purposes . From an accounting perspective, the financial statements of the combined entity represent a continuation of the financial statements of the accounting acquirer/legal acquiree. As such, the historical cost bases of assets and liabilities of the acquiring entity (the accounting acquirer/legal acquiree) are maintained in the consolidated financial statements of the merged company and the assets and liabilities (if any) of the acquired entity (the legal acquirer) are accounted for under the acquisition method. Results of operations of the acquired entity (the legal acquirer) are included in the financial statements of the combined company only from the acquisition date. Management’s Representation of Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto on December 31, 2020, as presented in the Company’s Annual Report on Form 10-K filed on March 16, 2021 with the SEC. Going Concern The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. Historically, the Company raised capital through private placements, to finance working capital needs and may attempt to raise capital through the sale of common stock or other securities and obtaining some short-term loans from related parties. The Company will be required to continue to so until its operations become profitable. Also, the Company has, in the past, paid for consulting services with its common stock to maximize working capital, and intends to continue this practice where feasible. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. Cash and cash equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On September 30, 2021, and December 31, 2020, the Company’s cash equivalents totaled $55,025 and $789,497 respectively. Accounts Receivable and Allowance for Uncollected Amounts Accounts receivable are stated at their full collectible value less an allowance for doubtful accounts for any receivables over six months old from the balance sheet date. The company reviews all receivables prior to the year end and all uncollectible amounts are written off against income. The company expects to collect all the receivables shown on the balances sheet. September 30, December 31, Accounts Receivable – Total $ 840,998 $ 501,538 Less: Allowance for Doubtful Accounts (14,300 ) (14,300 ) Accounts Receivable – Net 826,698 487,238 Revenue Recognition The Corporation adopted Accounting Standards Codification (“ASC”) 606 - Revenue from Contracts with Customers (“ASC 606”) as of January 1, 2019 using the modified retrospective method. This method allows the Corporation to apply ASC 606 to new contracts entered into after January 1, 2019, and to its existing contracts for which revenue earned through December 31, 2018 has been recognized under the guidance in effect prior to the effective date of ASC 606. The revenue recognition processes the Corporation applied prior to the adoption of ASC 606 align with the recognition and measurement guidance of the new standard, therefore adoption of ASC 606 did not require a cumulative adjustment to opening equity in 2019. Under ASC 606, a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied, and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Corporation expects to be entitled to receive in exchange for goods or services. Under the standard, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Corporation determines are within the scope of ASC 606, the Corporation performs the following five steps: (i) identifies the contracts with a customer; (ii) identifies the performance obligations within the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when, or as, the Corporation satisfies each performance obligation. Customers are billed as work is completed and accepted. Extended contracts are billed in segments as completed. The amount of unbilled work in process at the end of a period is immaterial to the financial statements taken as a whole. If a contract has been completed and accepted but not billed at the end of the year, the contract price is accrued as sales in the year completed. Depreciation Fixed assets are carried at cost. Depreciation of the fixed assets is calculated on the straight-line method over estimated useful lives of 5-15 years. Fixed Assets September 30, December 31, Trucks and Automobiles $ 785,332 $ 785,332 Equipment 293,543 293,543 Improvements 381,300 381,300 Total Cost 1,460,175 1,460,175 Less: Accumulated Depreciation (1,347,261 ) (1,332,314 ) Fixed Assets – Book Value 112,914 137,861 Income Tax Status Effective January 1, 1981, the Company elected with the consent of its stockholders, to be taxed under the provisions of subchapter S of the Internal Revenue Code. Under these provisions, the Company does not pay Federal corporate income tax on its income. Instead, the stockholders are liable for individual Federal income tax on the Company’s taxable income. For tax purposes, income is reported using the income tax basis of accounting. The same election was made for the State of New Jersey as of January 1, 1995. However, there are minimum taxes due to New Jersey based on the amount of the Company’s revenues. Any tax paid is reported as an expense under Other Operating Expenses. As a result of the stock transactions on August 12, 2021, the company’s Subchapter S election has been terminated. As of that date forward the company will be treated as a taxable C corporation. Separate short year tax returns for S and C Corporations will be required to be filed for 2021. Major Customers The Company had four major customers that accounted for 77% of its total sales for the nine months ended September 30, 2021. Three major customers accounted for 84% of the company’s total sales for the Nine months ended September 30, 2020. Principles of Consolidation The consolidated financial statements include two other related entities controlled by the Company, MIKAB Corporation and Americrew CE Services, LLC. These companies are the operating units of the Company and generate all of the revenues for the Company. Americrew CE Services, LLC was formed on March 29, 2021 as a subsidiary of MIKAB, it is currently listed as a Delaware LLC as a subsidiary of The Company. All intercompany transactions are eliminated in consolidation. New Accounting Standards (Pending Adoption) Leases (ASU 2016-02) In February 2016, the FASB issued new lease accounting guidance in ASU No. 2016-02, Leases-Topic 842, which has been codified in ASC 842, Leases. Under this new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases): 1) a lease liability equal to the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and 2) a right-of-use asset which will represent the lessee’s right to use, or control the use of, a specified asset for the lease term. As Mikab was a non-public entity, this standard is effective for the Company’s annual reporting period beginning after Dec 15, 2021 enacted through ASU 2016-02. The new standard requires a modified retrospective basis. The adoption of ASC 842 will require the Company to recognize non-current assets and liabilities for right-of-use assets and operating lease liabilities on its consolidated balance sheet, but is not expected to have a material effect on the Company’s results of operations or cash flows. ASC 842 will also require additional footnote disclosures to the Company’s consolidated financial statements. |
Uninsured Cash Balances
Uninsured Cash Balances | 9 Months Ended |
Sep. 30, 2021 | |
Uninsured Cash Balances [Abstract] | |
Uninsured Cash Balances | NOTE 2 – Uninsured Cash Balances The Company maintains demand deposit checking accounts and a money market account at Chase Commercial and TD Bank. At times during the year, the Company’s cash balance exceeded the FDIC and SPIC insured limits. |
Non-Recurring Item
Non-Recurring Item | 9 Months Ended |
Sep. 30, 2021 | |
Non Recurring Item [Abstract] | |
Non-Recurring Item | NOTE 3 – Non-Recurring Item As a result of the Corona 19 Virus pandemic, the Company was able to obtain Paycheck Protection Program loans described in the CARES Act in the amount of $351,370 for payroll and other expense reimbursement in 2021 and 2020. Both loans were completely forgiven in 2021. As a result, the full amounts are shown as non-recurring income for expense reimbursement on the Statements of Income and Retained Earnings. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 4 – Related Party Transactions Some of the owners of the Company own stock in entities which sell goods and services and lease premises to the Company. These are done as arms length transactions and are as follows for the nine months September 2021 and year ended 2020: Entity Product 2021 2020 New Jersey Tower Service Inc Services $ 33,767 $ 121,173 Mikab Equipment Sales Inc Equipment 23,836 0 29 Aladdin Avenue Realty LLC Premises Lease 27,900 48,000 75 Second Street Realty LLC Premises Lease 10,800 9,000 Mikab Realty LLC Premises Lease 10,800 10,800 Mikab Properties LLC Premises Lease 80,978 72,900 RR Power Leasing LLC Equipment 41,400 0 Novation Enterprises Services & Workforce Dev 548,373 0 |
Leasing Arrangements
Leasing Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Leasing Arrangements [Abstract] | |
Leasing Arrangements | NOTE 5 – Leasing Arrangements The Company leases a commercial building under a twenty-year lease beginning October 1, 2009 and ending September 30, 2029, payable in monthly installments of $8,998 from Mikab Properties (a related party as described in Note 3). The Company is required to carry insurance and pay for all needed repairs, maintenance and real estate taxes. The rental amount has been reduced in the last three years to $96,000 in 2020 and $87,000 in 2019 by agreement between the parties. There were oral month-to-month agreements for the three other premises the Company leases prior to 2021. Beginning in 2021, these three premises are under five-year lease agreements payable in monthly installments of $3,100 to 29 Aladdin Avenue Realty LLC, $1,200 to 75 Second Street Realty LLC and $1,200 to Mikab Realty LLC. Each has a 3% annual increase for the term of the leases. |
Employee Incentive Mortgages
Employee Incentive Mortgages | 9 Months Ended |
Sep. 30, 2021 | |
Employee Incentive Mortgages [Abstract] | |
Employee Incentive Mortgages | NOTE 6 – Employee Incentive Mortgages Several key employees have been given mortgages in the amount of $75,000. These mortgages are being amortized over a nineteen-year period. Some adjustments have been made with specific employees due to unforeseen circumstances. Each of these employees receives a Form 1099 from the Company for their share of the annual mortgage amortization. The unamortized balances of the mortgages are $0 and $6,578 on September 30, 2021 and December 31, 2020 as shown under other assets on the balance sheet. |
Stockholders' Life Insurance
Stockholders' Life Insurance | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders Life Insurance [Abstract] | |
Stockholders' Life Insurance | NOTE 7 – Stockholders’ Life Insurance The Company has purchased insurance on the lives of certain stockholders. The Company is both the owner and beneficiary of these policies. The purpose of these policies is to buy back the shares of the stockholder in the event of their death. The Company also provides whole life insurance to several of the key employees who have been given incentive mortgages as described in Note 6. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | NOTE 8 – Retirement Plans The Company maintains a 401-K retirement plan and a discretionary profit-sharing plan for all qualified employees. There are no significant unfunded liabilities at the September 30, 2021 and 2020. The Company’s retirement plan contributions were $8,876 for 2021 and $92,576 for 2020. |
Accounting For Uncertain Tax Po
Accounting For Uncertain Tax Positions | 9 Months Ended |
Sep. 30, 2021 | |
Accounting For Uncertain Tax Positions [Abstract] | |
Accounting for Uncertain Tax Positions | NOTE 9 – Accounting for Uncertain Tax Positions The Company evaluates all significant tax positions. As of December 31, 2020, the Company does not believe that it has any significant tax positions that would result in additional tax liability to the stockholders of the Company nor does it believe that there are any tax benefits that would increase or decrease within the next twelve months. The Company’s income tax returns are subject to examination by appropriate taxing authorities. As of December 31, 2020, the Company’s federal and state income tax returns generally remain open for the last three years. |
Fair Market Value (FMV)
Fair Market Value (FMV) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Market Value (FMV) | NOTE 10 – Fair Market Value (FMV) The carrying amounts reflected in the balance sheet for cash and cash equivalents approximate their respective fair values due to the short maturities of those instruments. These financial statements are required to disclose the methods used to determine the fair value of financial assets and liabilities based on a hierarchy of three levels of input. Level 1 inputs are based on unadjusted market prices within active markets. Level 2 inputs are based on quoted prices for similar assets and liabilities in active or inactive markets. Level 3 inputs would be primarily valued using management assumptions about the assumptions market participants would utilize in pricing the asset or liability. The company has no financial assets or liabilities requiring fair valuation. The bridge loans carry warrants, however they are immaterial in terms of valuation. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | NOTE 11 - Net Loss per Share Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common equivalents outstanding. |
Loan Payable Related Party
Loan Payable Related Party | 9 Months Ended |
Sep. 30, 2021 | |
Loan Payable Related Party Disclosure [Abstract] | |
Loan Payable Related Party | NOTE 12 – Loan Payable Related Party As of September 30, 2021 and December 31, 2020 the balances of notes payable related party were $646,035 and $-0- respectively. Inclusive of Bridge loans ($480,000), Short term loans ($150,000) and accrued interest ($16,035). Bridge Loans bear an annualized of interest rate of 12% through September 1 and 15% thereafter as well as 20% cash on cash Warrant exposure. Warrant exposure is deemed to be immaterial as of September 30, 2021. The Company intends to conduct a Warrant valuation study prior to yearend and will adjust its intangible assets pursuant to the final valuation report. |
Loan Payable Stockholder
Loan Payable Stockholder | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Loan Payable Stockholder | NOTE 13 – Loan Payable Stockholder As of September 30, 2021 and December 31, 2020 the balances of loan payable stockholder were $464,078 and $464,078 respectively. The loan bears no interest until maturity January 1, 2025. Interest after maturity is 10% per annum until fully repaid. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 14 – EQUITY Common Stock The Company has authorized 300,000,000 shares of $0.000001 par value, common stock. As of June 30, 2021, and December 31, 2020, there were 29,034,000 shares of Common Stock issued and outstanding, respectively. The Company did not issue any common shares in 2019. On September 15, 2020, the Company issued 18,000,000 shares of $0.000001 par value common stock to Custodian Ventures, LLC in return for a reduction of $5,000 of the interest-free demand loans issued to the Company by Custodian Ventures, LLC. Due to the thinly traded nature of the Company’s common stock trading under the “PHBR”, these shares were valued at $5,000. Preferred Stock The Company has authorized 10,000,000 shares of Convertible Preferred Stock (the “Preferred Stock”) at a par value of $0.000001. As of June 30, 2021, and December 31, 2020, there were 10,000,000 and -0- shares outstanding, respectively. Each share of the Preferred Stock convertible to common stock at a ratio of 30 to 1. On October 5, 2020, the issued 10,000,000 shares of Preferred Stock to Custodian Ventures, LLC in return for a reduction of $10,000 of related party debt that had been extended to the Company. These shares were valued at $231,132. The Preferred Stock has no stated maturity and will not be subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless the respective Holders decide to convert all or such number of shares of Preferred Stock as each Holder shall determine. The Preferred Stock will rank, with respect to rights to the payment of dividends and the distribution of assets in the event of any liquidation, dissolution or winding up of the Corporation, (i) senior to all classes or series of the Corporation’s Common Stock and to all other equity securities issued by the Corporation other than equity securities referred to in clauses (ii) and (iii) of this Section 3; (ii) on parity with all equity securities issued by the Corporation with terms specifically providing that those equity securities rank on parity with the Preferred Stock with respect to rights to the payment of dividends and the distribution of assets upon any liquidation, dissolution or winding up of the Corporation; (iii) junior to all equity securities issued by the Corporation with terms specifically providing that those equity securities rank senior to the Preferred Stock with respect to rights to the payment of dividends and the distribution of assets upon any liquidation, dissolution or winding up of the Corporation; and (iv) effectively junior to all existing and future indebtedness (including indebtedness convertible into our Common Stock or Preferred Stock) of the Corporation and to any indebtedness and other liabilities of (as well as any preferred equity interest held by others in) existing subsidiaries of the Corporation. The term “equity securities” shall not include convertible debt securities. In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Corporation, the Holders of shares of Preferred Stock will be entitled to be paid out of the assets the Corporation has legally available for distribution to its shareholders, subject to the preferential rights of the holders of any class or series of capital stock of the Corporation it may issue ranking senior to the Preferred Stock with respect to the distribution of assets upon liquidation, dissolution or winding up, a liquidation preference plus an amount equal to any accumulated and unpaid dividends to, but not including, the date of payment, before any distribution of assets, is made to holders of Common Stock or any other class or series of capital stock of the Corporation that it may issue that ranks junior to the Preferred Stock as to liquidation rights. The liquidation preference shall be proportionately adjusted in the event of a stock split, stock combination, or similar event so that the aggregate liquidation preference allocable to all outstanding shares of Preferred Stock immediately prior to such event is the same immediately after giving effect to such event. Change of Control Effective December 9, 2020, DR Shell LLC, a Delaware limited liability company purchased from Custodian Ventures LLC, 18,000,000 shares of the common stock of the Company, representing approximately 62% of the outstanding Common Stock of the Company, and (ii) 10,000,000 shares of Preferred Stock of the Company, for a total purchase price of $245,000 in cash. This transaction had no impact on the Company’s financial statements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15 – SUBSEQUENT EVENTS On October 5 2021, PhoneBrasil International, Inc. (the “Company”) entered into a Securities Purchase Agreement (“SPA”) with two investors (the “Purchasers”) for an aggregate of $150,000 gross proceeds in which it offered and sold Secured Convertible Promissory Notes (the “Note”) and five-year warrants to purchase shares of common stock, par value $0.000001 per share of the Company at an exercise price of $1.9032 per share (the “Warrant”) pursuant to the terms and conditions of the SPA and secured by a Security Agreement. The proceeds shall be used for working capital. The Notes are due October 5, 2023. The Notes bear interest at 8% per annum payable quarterly, subject to an increase in case of an event of default as provided for therein. The Notes are convertible into shares of Common Stock at any time following the date of issuance at the Purchasers’ option at a conversion price of $1.9032 per share, subject to certain adjustments. Furthermore, at any time after the 12 month anniversary of the date of issuance of the Notes, the Company may, after written notice to the Purchaser, redeem all of the then outstanding principal amount of the Notes for cash in an amount equal to the sum of 110% of the then outstanding principal amount of the Note, accrued but unpaid interest and all liquidated damages and other amounts due in respect of the Note (if any). The Warrants are exercisable for five-years from October 5, 2021 at an exercise price of $1.9032 per share, subject to certain adjustments. The Company’s obligations under the SPA and the Notes are secured by a first priority lien on all of the assets of the Company and its wholly owned subsidiaries pursuant to a Security Agreement, dated October 5, 2021 (the “Security Agreement”) by and among the Company, its wholly-owned subsidiaries, Mikab Corporation and AmeriCrew Holdings LLC, the Purchasers, and Westpark Capital Inc., as agent for the secured parties. The Company’s obligations under the Notes are secured by the Company’s subsidiaries. Pursuant to the SPA, the Company and its wholly owned subsidiaries, entered into a Guaranty Agreement, dated October 5, 2021 (the “Guaranty Agreement”) by and among the Company, Mikab Corporation, AmeriCrew Holdings, LLC and the Purchasers. Each Guarantor has guaranteed to the Purchasers the payment of the Notes. In additional, pursuant to the SPA, the Company entered into a Registration Rights Agreement dated October 5, 2021, by and between the Company and the Purchasers, in which the Company has agreed to file a Registration Statement on Form S-1 with the SEC within 30 days of the termination of the Note offering. Westpark Capital, LLC (the “Placement Agent”) served as placement agent under the private placement and will receive a cash commission in the amount of 9% of the gross proceeds sold. The Company also agreed to pay the Placement Agent a non-refundable cash retainer of $50,000. In addition, we have agreed to pay the Placement Agent’s legal fees of which $15,000 has been paid. Furthermore, the Placement Agent will be entitled to receive five-year warrants (the “Placement Agent Warrants”) to purchase such number of shares of common stock as are equal to 9% of the aggregate number of shares of common stock underlying the Notes contained in the Notes and Warrants sold. The Placement Agent Warrants will have an exercise price of 110% of the applicable Warrant exercise price. The offer and sale of the Notes and Warrants pursuant to the SPA and the Placement Agent Warrants have not been or will not be registered under the Securities Act of 1933 and are exempt from registration pursuant to Section 4(a)(2) thereof and Rule 506(c) promulgated thereunder. On October 14, 2021, PhoneBrasil International, Inc. (the “Company”) entered into a Securities Purchase Agreement (“SPA”) with three accredited investors (the “Purchasers”) in connection with the sale of an additional aggregate of $475,000 principal amount 8% Secured Convertible Promissory Notes (the “Notes”) and five-year warrants to purchase shares of common stock at an exercise price of $1.9032 per share (the “Warrants”). The proceeds shall be used for working capital. The terms of the SPA, Notes and Warrants, and related Security Agreement, Guaranty Agreement and Registration Rights Agreement were previously disclosed on Form 8-K filed on October 12, 2021. As previously disclosed, Westpark Capital, LLC (the “Placement Agent”) served as placement agent under the private placement and will receive a cash commission in the amount of 9% of the gross proceeds sold. Furthermore, the Placement Agent will be entitled to receive five-year warrants (the “Placement Agent Warrants”) to purchase such number of shares of common stock as are equal to 9% of the aggregate number of shares of common stock underlying the Notes. The Placement Agent Warrants will have an exercise price of 100% of the applicable Warrant exercise price. The issuances of the Notes and the Warrants are exempt from registration under Section 4(a)(2) and Rule 506(c) of Regulation D as promulgated by the Securities and Exchange Commission under of the Securities Act of 1933, as amended (the “Securities Act”), as transactions by an issuer not involving any public offering. On Monday, November 16, 2021 the Company filed a Second Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation (the “Amendment”) with the New Jersey Secretary of State pursuant to the New Jersey Business Corporation Act (the “NJBCA”). The Amendment makes the following changes: 1. Change the name of the Company to Americrew, Inc. 2. Section 5(a) of the Amended and Restated Certificate of Incorporation is amended to read in its entirety as follows: 5. (a) The total number of shares of stock of all classes and series the Corporation shall have authority to issue is 85,000,000 shares consisting of (i) 75,000,000 shares of Common Stock, par value $0.001, and (ii) 10,000,000 shares of Preferred Stock, par value $0.001. 3. Each 100 shares of Common Stock issued and outstanding or held by the Company in treasury stock immediately prior to the Effective Time shall, automatically and without any action on the part of the respective holders thereof, be combined and converted into one share of Common Stock (the “Reverse Stock Split”). No fractional shares shall be issued in connection with the Reverse Stock Split. All fractional shares resulting from the Reverse Stock Split shall be rounded up to the nearest whole share. The above changes are currently being reviewed by FINRA for approval. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) “FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. The Company entered into a Stock Purchase Agreement (the “SPA”) effective as of August 12, 2021 with MIKAB and its stockholders. On August 12, 2021, the Company completed the acquisition of all of the issued and outstanding stock of MIKAB and MIKAB became a wholly owned subsidiary of the Company. At the closing the Company delivered to the sellers a 94.6% of the Equity of The Company. Under guidance of ASU 805-10-55-11 thru 15 MIKAB has been identified as the acquirer for accounting purposes . From an accounting perspective, the financial statements of the combined entity represent a continuation of the financial statements of the accounting acquirer/legal acquiree. As such, the historical cost bases of assets and liabilities of the acquiring entity (the accounting acquirer/legal acquiree) are maintained in the consolidated financial statements of the merged company and the assets and liabilities (if any) of the acquired entity (the legal acquirer) are accounted for under the acquisition method. Results of operations of the acquired entity (the legal acquirer) are included in the financial statements of the combined company only from the acquisition date. |
Management’s Representation of Interim Financial Statements | Management’s Representation of Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto on December 31, 2020, as presented in the Company’s Annual Report on Form 10-K filed on March 16, 2021 with the SEC. |
Going Concern | Going Concern The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. Historically, the Company raised capital through private placements, to finance working capital needs and may attempt to raise capital through the sale of common stock or other securities and obtaining some short-term loans from related parties. The Company will be required to continue to so until its operations become profitable. Also, the Company has, in the past, paid for consulting services with its common stock to maximize working capital, and intends to continue this practice where feasible. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On September 30, 2021, and December 31, 2020, the Company’s cash equivalents totaled $55,025 and $789,497 respectively. |
Accounts Receivable and Allowance for Uncollected Amounts | Accounts Receivable and Allowance for Uncollected Amounts Accounts receivable are stated at their full collectible value less an allowance for doubtful accounts for any receivables over six months old from the balance sheet date. The company reviews all receivables prior to the year end and all uncollectible amounts are written off against income. The company expects to collect all the receivables shown on the balances sheet. September 30, December 31, Accounts Receivable – Total $ 840,998 $ 501,538 Less: Allowance for Doubtful Accounts (14,300 ) (14,300 ) Accounts Receivable – Net 826,698 487,238 |
Revenue Recognition | Revenue Recognition The Corporation adopted Accounting Standards Codification (“ASC”) 606 - Revenue from Contracts with Customers (“ASC 606”) as of January 1, 2019 using the modified retrospective method. This method allows the Corporation to apply ASC 606 to new contracts entered into after January 1, 2019, and to its existing contracts for which revenue earned through December 31, 2018 has been recognized under the guidance in effect prior to the effective date of ASC 606. The revenue recognition processes the Corporation applied prior to the adoption of ASC 606 align with the recognition and measurement guidance of the new standard, therefore adoption of ASC 606 did not require a cumulative adjustment to opening equity in 2019. Under ASC 606, a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied, and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Corporation expects to be entitled to receive in exchange for goods or services. Under the standard, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Corporation determines are within the scope of ASC 606, the Corporation performs the following five steps: (i) identifies the contracts with a customer; (ii) identifies the performance obligations within the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when, or as, the Corporation satisfies each performance obligation. Customers are billed as work is completed and accepted. Extended contracts are billed in segments as completed. The amount of unbilled work in process at the end of a period is immaterial to the financial statements taken as a whole. If a contract has been completed and accepted but not billed at the end of the year, the contract price is accrued as sales in the year completed. |
Depreciation | Depreciation Fixed assets are carried at cost. Depreciation of the fixed assets is calculated on the straight-line method over estimated useful lives of 5-15 years. Fixed Assets September 30, December 31, Trucks and Automobiles $ 785,332 $ 785,332 Equipment 293,543 293,543 Improvements 381,300 381,300 Total Cost 1,460,175 1,460,175 Less: Accumulated Depreciation (1,347,261 ) (1,332,314 ) Fixed Assets – Book Value 112,914 137,861 |
Income Tax Status | Income Tax Status Effective January 1, 1981, the Company elected with the consent of its stockholders, to be taxed under the provisions of subchapter S of the Internal Revenue Code. Under these provisions, the Company does not pay Federal corporate income tax on its income. Instead, the stockholders are liable for individual Federal income tax on the Company’s taxable income. For tax purposes, income is reported using the income tax basis of accounting. The same election was made for the State of New Jersey as of January 1, 1995. However, there are minimum taxes due to New Jersey based on the amount of the Company’s revenues. Any tax paid is reported as an expense under Other Operating Expenses. As a result of the stock transactions on August 12, 2021, the company’s Subchapter S election has been terminated. As of that date forward the company will be treated as a taxable C corporation. Separate short year tax returns for S and C Corporations will be required to be filed for 2021. |
Major Customers | Major Customers The Company had four major customers that accounted for 77% of its total sales for the nine months ended September 30, 2021. Three major customers accounted for 84% of the company’s total sales for the Nine months ended September 30, 2020. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include two other related entities controlled by the Company, MIKAB Corporation and Americrew CE Services, LLC. These companies are the operating units of the Company and generate all of the revenues for the Company. Americrew CE Services, LLC was formed on March 29, 2021 as a subsidiary of MIKAB, it is currently listed as a Delaware LLC as a subsidiary of The Company. All intercompany transactions are eliminated in consolidation. |
New Accounting Standards (Pending Adoption) | New Accounting Standards (Pending Adoption) Leases (ASU 2016-02) In February 2016, the FASB issued new lease accounting guidance in ASU No. 2016-02, Leases-Topic 842, which has been codified in ASC 842, Leases. Under this new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases): 1) a lease liability equal to the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and 2) a right-of-use asset which will represent the lessee’s right to use, or control the use of, a specified asset for the lease term. As Mikab was a non-public entity, this standard is effective for the Company’s annual reporting period beginning after Dec 15, 2021 enacted through ASU 2016-02. The new standard requires a modified retrospective basis. The adoption of ASC 842 will require the Company to recognize non-current assets and liabilities for right-of-use assets and operating lease liabilities on its consolidated balance sheet, but is not expected to have a material effect on the Company’s results of operations or cash flows. ASC 842 will also require additional footnote disclosures to the Company’s consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of accounts receivables net | September 30, December 31, Accounts Receivable – Total $ 840,998 $ 501,538 Less: Allowance for Doubtful Accounts (14,300 ) (14,300 ) Accounts Receivable – Net 826,698 487,238 |
Schedule of depreciation of the fixed assets is calculated on the straight-line method over estimated useful lives | Fixed Assets September 30, December 31, Trucks and Automobiles $ 785,332 $ 785,332 Equipment 293,543 293,543 Improvements 381,300 381,300 Total Cost 1,460,175 1,460,175 Less: Accumulated Depreciation (1,347,261 ) (1,332,314 ) Fixed Assets – Book Value 112,914 137,861 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of sell goods and services and lease premises | Entity Product 2021 2020 New Jersey Tower Service Inc Services $ 33,767 $ 121,173 Mikab Equipment Sales Inc Equipment 23,836 0 29 Aladdin Avenue Realty LLC Premises Lease 27,900 48,000 75 Second Street Realty LLC Premises Lease 10,800 9,000 Mikab Realty LLC Premises Lease 10,800 10,800 Mikab Properties LLC Premises Lease 80,978 72,900 RR Power Leasing LLC Equipment 41,400 0 Novation Enterprises Services & Workforce Dev 548,373 0 |
Organization and Description _2
Organization and Description of Business (Details) - USD ($) | Aug. 12, 2021 | Dec. 09, 2020 | Oct. 05, 2020 | Sep. 30, 2020 | Sep. 15, 2020 | Apr. 20, 2007 | Sep. 30, 2021 | Sep. 13, 2021 | Aug. 24, 2021 | Dec. 31, 2020 |
Organization and Description of Business (Details) [Line Items] | ||||||||||
Description of purchase price | DR Shell LLC, a Delaware limited liability company (the “Buyer”) purchased from Custodian Ventures LLC, 18,000,000 shares of the common stock of the Company, representing approximately 62% of the outstanding Common Stock of the Company, and (ii) 10,000,000 shares of Convertible Preferred Stock of the Company, for a total purchase price of $245,000 in cash. The funds were provided by the Buyer’s members. The shares were acquired pursuant to a Stock Purchase Agreement, dated December 9, 2020 (the “SPA”), by and among the Seller, the Buyer, and David Lazar, then Chief Executive Officer of the Company and managing director of Custodian Ventures, LLC. Additionally, under the terms of the SPA, Mr. Lazar forgave $41,229 in related-party loans. | |||||||||
Outstanding, percentage | 94.20% | |||||||||
Common stock, shares authorized | 1,650,000,000 | 1,650,000,000 | 1,650,000,000 | |||||||
Business Combination [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Acquisition of capital shares | 6,000,000 | |||||||||
Common Stock [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Increase in authorized shares | 300,000,000 | |||||||||
Description of conversion of shares | The preferred shares are convertible to common shares at a ratio of 30 to 1. | |||||||||
Common Stock [Member] | Custodian Ventures, LLC [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Issuance of common stock shares | 18,000,000 | |||||||||
Par value of common stock (in Dollars per share) | $ 0.00001 | |||||||||
Issuance of common stock value (in Dollars) | $ 5,000 | |||||||||
Preferred Stock [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Increase in authorized shares | 10,000,000 | |||||||||
Preferred stock, par value (in Dollars per share) | $ 0.000001 | $ 0.000001 | ||||||||
Preferred Stock [Member] | Custodian Ventures, LLC [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Preferred stock issued to reduced related party debt (in Shares) | 10,000,000 | |||||||||
Series A Preferred Stock [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Preferred stock, shares authorized | 3,094,600 | |||||||||
Series A Preferred Stock [Member] | Custodian Ventures, LLC [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Preferred stock issued to reduced related party debt (in Shares) | 10,000,000 | |||||||||
Reduction on related parties (in Dollars) | $ 10,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Aug. 12, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Equity percentage | 94.60% | ||
Cash equivalents totaled | $ 55,025 | $ 789,497 | |
Major customers transaction description | The Company had four major customers that accounted for 77% of its total sales for the nine months ended September 30, 2021. Three major customers accounted for 84% of the company’s total sales for the Nine months ended September 30, 2020. | ||
Minimum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful lives | 5 | ||
Maximum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful lives | 15 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of accounts receivables net - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of accounts receivables net [Abstract] | ||
Accounts Receivable – Total | $ 840,998 | $ 501,538 |
Less: Allowance for Doubtful Accounts | (14,300) | (14,300) |
Accounts Receivable – Net | $ 826,698 | $ 487,238 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of depreciation of the fixed assets is calculated on the straight-line method over estimated useful lives - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Summary of Significant Accounting Policies (Details) - Schedule of depreciation of the fixed assets is calculated on the straight-line method over estimated useful lives [Line Items] | ||
Total Cost | $ 1,460,175 | $ 1,460,175 |
Less: Accumulated Depreciation | (1,347,261) | (1,332,314) |
Fixed Assets – Book Value | 112,914 | 137,861 |
Trucks and Automobiles [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of depreciation of the fixed assets is calculated on the straight-line method over estimated useful lives [Line Items] | ||
Total Cost | 785,332 | 785,332 |
Equipment [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of depreciation of the fixed assets is calculated on the straight-line method over estimated useful lives [Line Items] | ||
Total Cost | 293,543 | 293,543 |
Improvements [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of depreciation of the fixed assets is calculated on the straight-line method over estimated useful lives [Line Items] | ||
Total Cost | $ 381,300 | $ 381,300 |
Non-Recurring Item (Details)
Non-Recurring Item (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Non Recurring Item [Abstract] | ||
Payroll other expenses | $ 351,370 | $ 351,370 |
Related Party Transactions (Det
Related Party Transactions (Details) - Schedule of sell goods and services and lease premises - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
New Jersey Tower Service Inc [Member] | ||
Variable Interest Entity [Line Items] | ||
Services | $ 33,767 | $ 121,173 |
Mikab Equipment Sales Inc [Member] | ||
Variable Interest Entity [Line Items] | ||
Equipment | 23,836 | 0 |
29 Aladdin Avenue Realty LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Premises Lease | 27,900 | 48,000 |
75 Second Street Realty LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Premises Lease | 10,800 | 9,000 |
Mikab Realty LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Premises Lease | 10,800 | 10,800 |
Mikab Properties LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Premises Lease | 80,978 | 72,900 |
RR Power Leasing LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Equipment | 41,400 | 0 |
Novation Enterprises [Member] | ||
Variable Interest Entity [Line Items] | ||
Services & Workforce Dev | $ 548,373 | $ 0 |
Leasing Arrangements (Details)
Leasing Arrangements (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Leasing Arrangements [Abstract] | |
Leasing arrangements description | The Company leases a commercial building under a twenty-year lease beginning October 1, 2009 and ending September 30, 2029, payable in monthly installments of $8,998 from Mikab Properties (a related party as described in Note 3). The Company is required to carry insurance and pay for all needed repairs, maintenance and real estate taxes. The rental amount has been reduced in the last three years to $96,000 in 2020 and $87,000 in 2019 by agreement between the parties. There were oral month-to-month agreements for the three other premises the Company leases prior to 2021. Beginning in 2021, these three premises are under five-year lease agreements payable in monthly installments of $3,100 to 29 Aladdin Avenue Realty LLC, $1,200 to 75 Second Street Realty LLC and $1,200 to Mikab Realty LLC. Each has a 3% annual increase for the term of the leases. |
Employee Incentive Mortgages (D
Employee Incentive Mortgages (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Employee Incentive Mortgages [Abstract] | ||
Mortgages amount | $ 75,000 | |
Unamortized balances of mortgages | $ 0 | $ 6,578 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Retirement Benefits [Abstract] | ||
Unfunded liabilities | $ 0 | $ 0 |
Retirement plan contributions | $ 8,876 | $ 92,576 |
Accounting For Uncertain Tax _2
Accounting For Uncertain Tax Positions (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting For Uncertain Tax Positions [Abstract] | |
Income tax returns generally remain open year | 3 years |
Loan Payable Related Party (Det
Loan Payable Related Party (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Loan Payable Related Party Disclosure [Abstract] | ||
Notes payable related party | $ 646,035 | $ 0 |
Bridge loans | 480,000 | |
Short term loans | 150,000 | |
Accrued interest | $ 16,035 | |
Bridge loans, description | Bridge Loans bear an annualized of interest rate of 12% through September 1 and 15% thereafter as well as 20% cash on cash Warrant exposure. |
Loan Payable Stockholder (Detai
Loan Payable Stockholder (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Loan payable | $ 464,078 | $ 464,078 |
Loan bears no interest until maturity description | The loan bears no interest until maturity January 1, 2025. Interest after maturity is 10% per annum until fully repaid. |
Equity (Details)
Equity (Details) - USD ($) | Dec. 09, 2020 | Oct. 05, 2020 | Sep. 15, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Equity (Details) [Line Items] | |||||||
Common stock, shares authorized | 300,000,000 | ||||||
Common stock, par value (in Dollars per share) | $ 0.000001 | $ 0.000001 | $ 0.000001 | ||||
Common stock, shares outstanding | 29,034,000 | 29,034,000 | 29,034,000 | ||||
Common stock, shares issued | 29,034,000 | 29,034,000 | 29,034,000 | ||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||||
Preferred stock, shares outstanding | 3,094,000 | 3,094,000 | |||||
Common Stock [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Description of purchase price | DR Shell LLC, a Delaware limited liability company purchased from Custodian Ventures LLC, 18,000,000 shares of the common stock of the Company, representing approximately 62% of the outstanding Common Stock of the Company, and (ii) 10,000,000 shares of Preferred Stock of the Company, for a total purchase price of $245,000 in cash. This transaction had no impact on the Company’s financial statements. | ||||||
Common Stock [Member] | Custodian Ventures, LLC [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Common stock, par value (in Dollars per share) | $ 0.000001 | ||||||
Issuance of common stock shares | 18,000,000 | ||||||
Interest-free demand loans issued (in Dollars) | $ 5,000 | ||||||
Trading value (in Dollars) | $ 5,000 | ||||||
Preferred Stock [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Preferred stock, shares authorized | 10,000,000 | ||||||
Preferred stock, par value (in Dollars per share) | $ 0.000001 | $ 0.000001 | |||||
Preferred stock, shares outstanding | 10,000,000 | 0 | |||||
Description of conversion of shares | Each share of the Preferred Stock convertible to common stock at a ratio of 30 to 1. | ||||||
Preferred Stock [Member] | Custodian Ventures, LLC [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Issuance of shares | 10,000,000 | ||||||
Preferred stock issued to reduced related party debt (in Dollars) | $ 10,000 | ||||||
Shares value (in Dollars) | $ 231,132 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Oct. 14, 2021 | Oct. 05, 2021 | Nov. 16, 2021 | Sep. 30, 2021 |
Subsequent Events (Details) [Line Items] | ||||
Gross proceeds percentage | 9.00% | |||
Placement agent, description | the Placement Agent will be entitled to receive five-year warrants (the “Placement Agent Warrants”) to purchase such number of shares of common stock as are equal to 9% of the aggregate number of shares of common stock underlying the Notes contained in the Notes and Warrants sold. The Placement Agent Warrants will have an exercise price of 110% of the applicable Warrant exercise price. | |||
Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Aggregate gross proceeds (in Dollars) | $ 150,000 | |||
Warrants shares of par value | $ 0.000001 | |||
Warrants exercise price | $ 1.9032 | |||
Subsequent event, description | The Notes are due October 5, 2023. The Notes bear interest at 8% per annum payable quarterly, subject to an increase in case of an event of default as provided for therein. The Notes are convertible into shares of Common Stock at any time following the date of issuance at the Purchasers’ option at a conversion price of $1.9032 per share, subject to certain adjustments. Furthermore, at any time after the 12 month anniversary of the date of issuance of the Notes, the Company may, after written notice to the Purchaser, redeem all of the then outstanding principal amount of the Notes for cash in an amount equal to the sum of 110% of the then outstanding principal amount of the Note, accrued but unpaid interest and all liquidated damages and other amounts due in respect of the Note (if any). | |||
Exercise price | $ 1.9032 | $ 1.9032 | ||
Additional aggregate principal amount (in Dollars) | $ 475,000 | |||
Secured Convertible percentage | 8.00% | |||
Westpark Capital, LLC [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Subsequent event, description | As previously disclosed, Westpark Capital, LLC (the “Placement Agent”) served as placement agent under the private placement and will receive a cash commission in the amount of 9% of the gross proceeds sold. Furthermore, the Placement Agent will be entitled to receive five-year warrants (the “Placement Agent Warrants”) to purchase such number of shares of common stock as are equal to 9% of the aggregate number of shares of common stock underlying the Notes. The Placement Agent Warrants will have an exercise price of 100% of the applicable Warrant exercise price. | |||
Private Placement [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Exercise price | $ 1.10 | |||
Gross proceeds percentage | 9.00% | |||
Non-refundable cash retainer (in Dollars) | $ 50,000 | |||
Legal fees (in Dollars) | $ 15,000 | |||
Forecast [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Subsequent event, description | 1.Change the name of the Company to Americrew, Inc. 2.Section 5(a) of the Amended and Restated Certificate of Incorporation is amended to read in its entirety as follows: 5. (a) The total number of shares of stock of all classes and series the Corporation shall have authority to issue is 85,000,000 shares consisting of (i) 75,000,000 shares of Common Stock, par value $0.001, and (ii) 10,000,000 shares of Preferred Stock, par value $0.001. 3.Each 100 shares of Common Stock issued and outstanding or held by the Company in treasury stock immediately prior to the Effective Time shall, automatically and without any action on the part of the respective holders thereof, be combined and converted into one share of Common Stock (the “Reverse Stock Split”). No fractional shares shall be issued in connection with the Reverse Stock Split. All fractional shares resulting from the Reverse Stock Split shall be rounded up to the nearest whole share. |