Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jun. 30, 2014 | Jul. 15, 2014 | |
Document and Entity Information: | ' | ' |
Entity Registrant Name | 'PMI Construction Group | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001408300 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 17,300,709 |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Date of Incorporation | 11-Nov-80 | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current Assets: | ' | ' |
Cash | ' | $1,227 |
Total Assets | ' | 1,227 |
Current Liabilities: | ' | ' |
Cash deficit | 1,113 | ' |
Accounts payable | 1,950 | 1,145 |
Notes and accrued interest payable - related parties | 145,338 | 127,275 |
Convertible Notes and accrued interest payable -related parties | 78,794 | 76,149 |
Total Current Liabilities | 227,195 | 204,569 |
Stockholders' Equity (Deficit) | ' | ' |
Convertible preferred stock, $0.001 par value, 5,000,000 shares authorized, 634 shares issued and outstanding | 1 | 1 |
Common stock, $0.001 par value, 95,000,000 shares authorized, 17,300,709 shares issued and outstanding | 17,301 | 17,301 |
Retained deficit | -5,064 | -5,064 |
Deficit accumulated during the development stage | -239,433 | -215,580 |
Total Stockholders' Equity (Deficit) | -227,195 | -203,342 |
Total Liabilities and Stockholders' Equity (Deficit) | ' | $1,227 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position | ' | ' |
Common Stock, par or stated value | $0.00 | $0.00 |
Common Stock, shares authorized | 95,000,000 | 95,000,000 |
Common Stock, shares issued | 17,300,709 | 17,300,709 |
Common Stock, shares outstanding | 17,300,709 | 17,300,709 |
Preferred Stock, par or stated value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 634 | 634 |
Preferred Stock, shares outstanding | 634 | 634 |
Statement_of_Operations_Unaudi
Statement of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | 124 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Income Statement | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Operating expenses: | ' | ' | ' | ' | ' |
General and administrative | 9,895 | 3,085 | 16,645 | 14,916 | 177,327 |
Total operating expenses | 9,895 | 3,085 | 16,645 | 14,916 | 177,327 |
Loss from operations | -9,895 | -3,085 | -16,645 | -14,916 | -177,327 |
Other Income (Expense) | ' | ' | ' | ' | ' |
Interest expense | -3,360 | -3,435 | -7,208 | -6,639 | -62,106 |
Total other expenses | -3,360 | -3,435 | -7,208 | -6,639 | -62,106 |
Net Loss | ($13,255) | ($6,520) | ($23,853) | ($21,555) | ($239,433) |
Net loss per share of common stock | $0 | $0 | $0 | $0 | ' |
Net Loss fully diluted share of common stock | $0 | $0 | $0 | $0 | ' |
Weighted average number of common shares | 17,300,709 | 17,300,709 | 17,300,709 | 17,300,709 | ' |
Weighted average number of fully diluted common shares | 17,300,709 | 17,300,709 | 17,300,709 | 17,300,709 | ' |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | 124 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Cash flows from operating activities: | ' | ' | ' |
Net Loss | ($23,853) | ($21,555) | ($239,433) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' | ' |
Conversion of interest payable to common stock | ' | ' | 312 |
Changes in operating assets and liabilities: | ' | ' | ' |
Increase (decrease) in accounts payable | 805 | 111 | 1,067 |
Increase (decrease) in interest payable to related parties | 7,208 | 6,639 | 60,424 |
Net cash used in operating activities | -15,840 | -14,805 | -177,630 |
Cash flows from financing activities: | ' | ' | ' |
Increase in cash deficit | 1,113 | ' | 1,113 |
Conversion of interest payable to note payable | ' | ' | 1,200 |
Notes payable to related parties | 13,500 | 15,000 | 175,317 |
Net cash provided by financing activities | 14,613 | 15,000 | 177,630 |
Net change in cash | -1,227 | 195 | ' |
Cash, beginning of period | 1,227 | 1,813 | ' |
Cash, end of period | ' | 2,008 | ' |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid during the period for: Income taxes | ' | ' | ' |
Cash paid during the period for: Interest | ' | ' | ' |
Non-cash financing activity: | ' | ' | ' |
Conversion of interest payable to notes payable | ' | ' | $1,200 |
Note_1_Basis_of_Presentation
Note 1: Basis of Presentation | 3 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Note 1: Basis of Presentation | ' |
Note 1: Basis of Presentation | |
The accompanying unaudited financial statements of PMI Construction Group (the “Company”) were prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. Management of the Company (“Management”) believes that the following disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2013 included in the Company’s Form 10-K report. | |
These unaudited financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of Management, are necessary to present fairly the financial position and results of operations of the Company for the periods presented. Operating results for the six months ended June 30, 2014, are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. |
Note_2_Summary_of_Significant_
Note 2: Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Note 2: Summary of Significant Accounting Policies | ' |
Note 2: Summary of Significant Accounting Policies | |
Organization – The Company was incorporated under the laws of the State of Utah on November 11, 1980 as Bullhead Exploration, Inc. On February 19, 1997 the Company changed its name and its corporate domicile was changed to the state of Nevada. The Company was a party to a Settlement and Release Agreement filed in the United States District Court for the District of Utah, Central Division, having an agreed effective date of February 17, 2004, which resulted in a change of control of the Company in August 2004. Since that time the Company has obtained loans and issued its common stock for cash, to finance its endeavors in seeking a new business venture. The Company has not generated any revenue since 2004 and is considered a development stage enterprise as defined in ASC Topic 915. | |
Quasi Reorganization – The Company sold substantially all of its assets during 2000 and remained dormant until 2004 when it commenced to seek a new business venture. In accordance with ASC Topic 915, the Company became a development stage enterprise at that time and the stockholders of the Company approved a quasi reorganization effective as of January 1, 2004. The quasi reorganization provided for a readjustment of the Company’s capital accounts and resulted in its retained deficit from prior operations being offset against its paid-in capital account in the amount of $1,928,775 and the remaining deficit of $5,064 continues to be reflected as a retained deficit. The Company also created a new equity account entitled “Deficit Accumulated During the Development Stage” and the results of operations have since been recorded in that account. No other accounts were affected by this readjustment and the Company’s accounting is substantially similar to that of a new enterprise. | |
Use of Estimates – The accompanying unaudited financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and require that Management make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. The use of estimates and assumptions may also affect the reported amounts of expenses. Actual results could differ from those estimates or assumptions. | |
Net Loss and Fully Diluted Loss per Share of Common Stock – The loss per share of common stock is computed by dividing the net loss during the periods presented by the weighted average number of shares outstanding during those same periods. The diluted loss per share of common stock is computed by dividing the net loss during the periods presented by the weighted average number of shares outstanding and the potential number of shares that could be outstanding during the entire period presented as a result of the conversion of preferred stock into common. At June 30, 2014, 634 shares of preferred stock are outstanding that may be converted into 634 shares of common stock. At June 30, 2014, convertible notes are outstanding that may be converted into 7,879,400 shares of common stock. | |
Income Taxes – The Company has no deferred taxes arising from temporary differences between income for financial reporting and for income tax purposes. At June 30, 2014, the Company has a net operating loss carry forward of approximately $200,000 that expires if unused through 2031. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended development stage activities. A deferred tax asset in the amount of $40,000 is fully offset by a valuation allowance in the same amount. The change in the valuation allowance was $5,700 and $9,000 for the six months ended June 30, 2014 and 2013, respectively. | |
The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, on January 1, 2007. As a result of the implementation of Interpretation 48, the Company recognized approximately no increase in the liability for unrecognized tax benefits. |
Note_3_Going_Concern
Note 3: Going Concern | 3 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Note 3: Going Concern | ' |
Note 3: Going Concern | |
The Company’s financial statements have been prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not generated any revenue since entering the development stage and is currently dependent on its sole officer/director (“Executive”) to provide a source of future operating capital. The Company is also dependent on the Executive serving in his capacities without compensation. The Company assumes that the Executive will continue to provide operating capital to the Company or find other individuals or entities to provide such capital. No assurance can be given that future sources of the capital will be available. A change in these circumstances would have a material adverse effect on the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Note_4_Capital_Stock
Note 4: Capital Stock | 3 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Note 4: Capital Stock | ' |
Note 4: Capital Stock | |
Convertible Preferred Stock – The Company has 634 shares of convertible preferred stock issued and outstanding with the following preferences: a) these shares are convertible into 634 shares of common stock at any time and shall be converted into common stock upon the death of the registered owner; and, b) each preferred share is entitled to twenty votes on any matter voted upon by the common stockholders. | |
Preferred Stock and Common Stock – The Company’s Board of Directors is expressly granted the authority to issue without stockholder action, the authorized shares of the Company’s preferred and common stock. The Board of Directors may determine the powers, preferences, limitations, and relative rights of any class of common or preferred stock before the issuance thereof. |
Note_5_Related_Party_Transacti
Note 5: Related Party Transactions | 3 Months Ended | |
Jun. 30, 2014 | ||
Notes | ' | |
Note 5: Related Party Transactions | ' | |
Note 5: Related Party Transactions | ||
Note and accrued interest payable are as follows: | ||
a. | Effective September 1, 2006, a stockholder of the Company paid the Company’s accounts payable in the amount of $10,317 and entered into an unsecured note payable with the Company. The terms of the note require repayment on January 31, 2008, bearing interest at 8% per annum. The stockholder has verbally agreed not to pursue the collection of the note and accrued interest in the amount of $6,467, until such time as the Company has sufficient capital to repay this amount. Total due is $16,784 at June 30, 2014. | |
b. | Commencing in August 2007, the Company’s former sole officer and director has from time to time entered into unsecured demand notes bearing interest at 10% per annum which, at June 30, 2014 totaled $55,000 in principal and $32,059 in interest. Effective July 1, 2011, the former sole officer assigned 100% of the right, title and interest of this unsecured demand note to Banyan Investment Company, whose manager is our CEO and director. | |
c. | During the six months ending June 30, 2014 The Company entered into an additional unsecured note for $38,500 with an entity controlled by the Company’s CEO. Of this amount, $13,500 was received in 2014 and the remaining $25,000 was received in increments during 2013. The note bears interest at 7.5% and shall be repaid in full at the earlier of two years from the date hereof, or the merger, reorganization or acquisition between the Company and another corporation or entity that has operations, through a lump sum payment of interest and principal. Accrued interest on this note at June 30, 2014 was $2,994. | |
Convertible note payable and accrued interest are as follows: | ||
a. | During 2010, the Company entered into an unsecured convertible note for $25,000 bearing interest at 7.5% with the Company’s CFO. The note shall be repaid in full at the earlier of five years from the date hereof, or the merger, reorganization or acquisition between the Company and another corporation or entity that has operations, through a lump sum payment of interest and principal. The principal and interest on the note may be converted into shares of common stock at the rate of one share for each $0.001 share of principal and accrued but unpaid interest of the note. | |
b. | On June 27, 2011, the Company entered into an additional unsecured convertible note for $25,000 with the Company’s CFO. The note bears interest at 7.5% and shall be repaid in full at the earlier of five years from the date hereof, or the merger, reorganization or acquisition between the Company and another corporation or entity that has operations, through a lump sum payment of interest and principal. The principal and interest on the note may be converted into shares of common stock at the rate of one share for each $0.001 share of principal and accrued but unpaid interest of the note. | |
c. | On July 31, 2012, The Company entered into an additional unsecured convertible note for $10,000 with the Company’s CEO. The note bears interest at 7.5% and shall be repaid in full at the earlier of five years from the date hereof, or the merger, reorganization or acquisition between the Company and another corporation or entity that has operations, through a lump sum payment of interest and principal. The principal and interest on the note may be converted into shares of common stock at the rate of one share for each $0.001 share of principal and accrued but unpaid interest of the note. | |
On April 1, 2014, the Company entered into a new agreement which consolidated all of the convertible notes into one. The consolidated note bears interest at the rate of 7.5% and shall be repaid in full on demand or the merger, reorganization or acquisition between the Company and another corporation or entity that has operations, through a lump sum payment of interest and principal. | ||
Accrued interest expense for all convertible notes during the six months ended June 30, 2014 and December 31, 2013 was $18,794 and $16,149, respectively. |
Note_6_Subsequent_Events
Note 6: Subsequent Events | 3 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
Note 6: Subsequent Events | ' |
Note 6: Subsequent Events | |
On July 9, 2014, the Company entered into an unsecured note for $3,080 with an entity controlled by the Company’s CEO. The note bears interest at 7.5% and shall be repaid in full on demand, or the merger, reorganization or acquisition between the Company and another corporation or entity that has operations, through a lump sum payment of interest and principal. | |
The Company has evaluated all other subsequent events from the balance sheet date through the date the financials were issued, and has determined there are no events that would require disclosure herein. | |
Note_2_Summary_of_Significant_1
Note 2: Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2014 | |
Policies | ' |
Quasi Reorganization | ' |
Quasi Reorganization – The Company sold substantially all of its assets during 2000 and remained dormant until 2004 when it commenced to seek a new business venture. In accordance with ASC Topic 915, the Company became a development stage enterprise at that time and the stockholders of the Company approved a quasi reorganization effective as of January 1, 2004. The quasi reorganization provided for a readjustment of the Company’s capital accounts and resulted in its retained deficit from prior operations being offset against its paid-in capital account in the amount of $1,928,775 and the remaining deficit of $5,064 continues to be reflected as a retained deficit. The Company also created a new equity account entitled “Deficit Accumulated During the Development Stage” and the results of operations have since been recorded in that account. No other accounts were affected by this readjustment and the Company’s accounting is substantially similar to that of a new enterprise. | |
Use of Estimates | ' |
Use of Estimates – The accompanying unaudited financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and require that Management make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. The use of estimates and assumptions may also affect the reported amounts of expenses. Actual results could differ from those estimates or assumptions. | |
Net Loss and Fully Diluted Loss Per Share of Common Stock | ' |
Net Loss and Fully Diluted Loss per Share of Common Stock – The loss per share of common stock is computed by dividing the net loss during the periods presented by the weighted average number of shares outstanding during those same periods. The diluted loss per share of common stock is computed by dividing the net loss during the periods presented by the weighted average number of shares outstanding and the potential number of shares that could be outstanding during the entire period presented as a result of the conversion of preferred stock into common. At June 30, 2014, 634 shares of preferred stock are outstanding that may be converted into 634 shares of common stock. At June 30, 2014, convertible notes are outstanding that may be converted into 7,879,400 shares of common stock. | |
Income Taxes | ' |
Income Taxes – The Company has no deferred taxes arising from temporary differences between income for financial reporting and for income tax purposes. At June 30, 2014, the Company has a net operating loss carry forward of approximately $200,000 that expires if unused through 2031. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended development stage activities. A deferred tax asset in the amount of $40,000 is fully offset by a valuation allowance in the same amount. The change in the valuation allowance was $5,700 and $9,000 for the six months ended June 30, 2014 and 2013, respectively. | |
Note_2_Summary_of_Significant_2
Note 2: Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Jun. 30, 2014 | |
Details | ' |
Date of Incorporation | 11-Nov-80 |
Note_2_Summary_of_Significant_3
Note 2: Summary of Significant Accounting Policies: Quasi Reorganization (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jan. 01, 2004 |
Details | ' | ' | ' |
Adjustment against paid-in capital account | ' | ' | $1,928,775 |
Retained deficit | $5,064 | $5,064 | $5,064 |
Note_2_Summary_of_Significant_4
Note 2: Summary of Significant Accounting Policies: Net Loss and Fully Diluted Loss Per Share of Common Stock (Details) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Common Stock | Convertible Preferred Stock | Convertible Preferred Stock | |||
Common Stock | |||||
Preferred Stock, shares outstanding | 634 | 634 | ' | 634 | ' |
Common stock convertible from preferred | ' | ' | ' | ' | 634 |
Debt Instrument, Convertible, Number of Equity Instruments | ' | ' | 7,879,400 | ' | ' |
Note_2_Summary_of_Significant_5
Note 2: Summary of Significant Accounting Policies: Income Taxes (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Details | ' | ' |
Net operating loss carry forward | $200,000 | ' |
Deferred tax asset | 40,000 | ' |
Change in valuation allowance | $5,700 | $9,000 |
Note_4_Capital_Stock_Details
Note 4: Capital Stock (Details) | 3 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Details | ' | ' |
Preferred Stock, shares outstanding | 634 | 634 |
Convertible Preferred Stock, preferences | ': a) these shares are convertible into 634 shares of common stock at any time and shall be converted into common stock upon the death of the registered owner; and, b) each preferred share is entitled to twenty votes on any matter voted upon by the common stockholders. | ' |
Note_5_Related_Party_Transacti1
Note 5: Related Party Transactions (Details) (USD $) | 3 Months Ended | 6 Months Ended | 124 Months Ended | 85 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 01, 2006 | Jun. 30, 2014 | Aug. 01, 2007 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Jun. 27, 2011 | Jul. 31, 2012 | Apr. 02, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Unsecured Note Payable | Unsecured Note Payable | Unsecured Note Payable | Unsecured Demand Note Payable 1 | Unsecured Demand Note Payable 1 | Unsecured Note Payable 2 | Unsecured Note Payable 2 | Unsecured Convertible Note Payable 2 | Unsecured Convertible Note Payable 3 | Unsecured Convertible Note Payable 4 | Unsecured Convertible Note Payable 5 | Convertible Notes (aggregate) | Convertible Notes (aggregate) | ||||||
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | $10,317 | ' | $55,000 | $38,500 | ' | $25,000 | $25,000 | $10,000 | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | 10.00% | 7.50% | ' | 7.50% | 7.50% | 7.50% | 7.50% | ' | ' |
Interest expense - related party | 3,360 | 3,435 | 7,208 | 6,639 | 62,106 | 6,467 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,794 | 16,149 |
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | 16,784 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Payable, Current | ' | ' | ' | ' | ' | ' | ' | ' | 32,059 | ' | 2,994 | ' | ' | ' | ' | ' | ' | ' |
Proceeds From Unsecured Notes Payable | ' | ' | $13,500 | $15,000 | $175,317 | ' | ' | ' | ' | ' | $13,500 | $25,000 | ' | ' | ' | ' | ' | ' |
Unsecured convertible note, conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | $0.00 | ' | ' | ' |
Note_6_Subsequent_Events_Detai
Note 6: Subsequent Events (Details) (Subsequent Event, Unsecured Convertible Note Payable 6, USD $) | Jul. 09, 2014 |
Subsequent Event | Unsecured Convertible Note Payable 6 | ' |
Debt instrument, face amount | $3,080 |
Interest rate | 7.50% |