Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document and Entity Information | ' |
Entity Registrant Name | 'Blue Line Protection Group, Inc. |
Document Type | '10-Q |
Document Period End Date | 31-Mar-14 |
Amendment Flag | 'false |
Entity Central Index Key | '0001416697 |
Current Fiscal Year End Date | '--12-31 |
Entity Common Stock, Shares Outstanding | 120,211,112 |
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 | 'Q1 |
Balance_Sheets
Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalent | $13,006 | $2,844 |
Accounts receivable | 21,263 | ' |
Employee advances | 3,440 | ' |
Total current assets | 37,709 | 2,844 |
Fixed assets, net: | ' | ' |
Total fixed assets, net | 94,173 | ' |
Total assets | 131,882 | 2,844 |
Current liabilities: | ' | ' |
Accounts payable | 632 | 2,300 |
Accrued liabilities | 4,976 | ' |
Note payable | 152,000 | 2,000 |
Total current liabilities | 157,608 | 4,300 |
Total liabilities | 157,608 | 4,300 |
Stockholders' equity (deficit) | ' | ' |
Preferred stock value | ' | ' |
Common stock value | 120,211 | 106,820 |
Additional paid-in capital | 1,231,276 | -5,795 |
Subscriptions receivable | 1,213,462 | ' |
Accumulated deficit | -163,751 | -102,481 |
Total stockholders' equity (deficit) | -25,726 | -1,456 |
Total liabilities and stockholders' equity (deficit) | $131,882 | $2,844 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Balance Sheet | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,400,000,000 | 1,400,000,000 |
Common stock, shares issued | 120,211,112 | 106,820,000 |
Common stock, shares outstanding | 120,211,112 | 106,820,000 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Statement | ' | ' |
Revenue | $50,662 | ' |
Cost of revenue | -5,315 | ' |
Gross profit | 45,347 | ' |
Expenses: | ' | ' |
Depreciation | 379 | ' |
Executive compensation | 11,603 | ' |
General and administrative expenses | 14,678 | 5,459 |
Professional fees | 25,278 | ' |
Salaries and wages | 54,679 | ' |
Total expenses | 106,617 | 5,459 |
Loss before provision for income taxes | -61,270 | -5,459 |
Provision for income taxes | ' | ' |
Net loss | ($61,270) | ($5,459) |
Net loss per share - basic | $0 | $0 |
Weighted average number of common shares outstanding - basic | 107,266,370 | 106,820,000 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Operating activities | ' | ' |
Net Loss | ($61,270) | ($5,459) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Depreciation | 379 | ' |
Changes in operating assets and liabilities: | ' | ' |
(Increase) in accounts receivable | -21,263 | ' |
(Increase) in employee advances | -3,440 | ' |
Increase in accounts payable | 3,308 | 5,000 |
Net cash used by operating activities | -82,286 | -459 |
Investing activities | ' | ' |
Purchase of fixed assets | 64,552 | ' |
Net cash used by investing activities | -64,552 | ' |
Financing activities | ' | ' |
Donated capital | 7,000 | 1,000 |
Proceeds from notes payable | 150,000 | ' |
Net cash provided by financing activities | 157,000 | 1,000 |
Net increase (decrease) in cash | 10,162 | 541 |
Cash - beginning of the period | 2,844 | 582 |
Cash - ending of the period | 13,006 | 1,123 |
Supplemental disclosures | ' | ' |
Interest paid | ' | ' |
Income taxes paid | ' | ' |
Non-cash transactions | ' | ' |
Shares issued for fixed assets | $30,000 | ' |
Number of shares issued for fixed assets | 323,078 | ' |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
Basis of Presentation | ' |
Note 1 - Basis of presentation | |
The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. | |
These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2013 and notes thereto included in the Company's annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports. | |
Results of operations for the interim periods are not indicative of annual results. |
History_and_organization_of_th
History and organization of the company | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
History and organization of the company | ' |
Note 2 - History and organization of the company | |
The Company was originally organized September 11, 2006 (Date of Inception) under the laws of the State of Nevada, as The Engraving Masters, Inc. The Company was authorized to issue up to 100,000,000 shares of its common stock and 100,000,000 shares of preferred stock, each with a par value of $0.001 per share. | |
On March 14, 2014, the Company formalized the formation of Blue Line Protection Group, Inc., a Colorado corporation formed in February 2014 (“Blue Line Colorado”), as a wholly-owned subsidiary of the Company. Blue Line Colorado provides protection, compliance and financial services to the lawful cannabis industry. | |
On March 15, 2014, the Company agreed to acquire all of the issued and outstanding membership interests in Blue Line Protection Group, LLC, a Colorado limited liability company (“Blue Line LLC”). Since August 2013, Blue Line LLC has provided private security services to licensed marijuana growers and dispensaries. The closing of the acquisition will take place when we are provided with financial statements, audited as necessary and in proper form, which will be satisfactory for filing in an 8-K report with the Securities and Exchange Commission. If the acquisition of Blue Line LLC does not occur by July 31, 2014, the agreement pertaining to the acquisition of Blue Line LLC will terminate. As of May 20, 2014, the acquisition had not been completed. | |
On May 2, 2014, the Company changed its name to Blue Line Protection Group, Inc. | |
On May 6, 2014, the Company affected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder will receive 14 newly issued shares of common stock for each 1 share they currently hold. Additionally, the authorized number capital of the Company concurrently increased to 1,400,000,000 shares of $0.001 par value common stock. All references to share and per share amounts in the condensed consolidated financial statements and accompanying notes thereto have been retroactively restated to reflect the forward stock split. |
Going_Concern
Going Concern | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
Going Concern | ' |
Note 3 - Going concern | |
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has an accumulated deficit of ($163,751) as of March 31, 2014, and had net sales of $50,662 during the three-month period ended March 31, 2014. | |
In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing. The Company is currently conducting a private placement of its common stock to raise proceeds to finance its plan of operation. There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern. | |
The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty. |
Accounting_Policies_and_Proced
Accounting Policies and Procedures | 3 Months Ended | |
Mar. 31, 2014 | ||
Notes | ' | |
Accounting Policies and Procedures | ' | |
Note 4 - Accounting policies and procedures | ||
Principles of consolidation | ||
For the three months ended March 31, 2014, the consolidated financial statements include the accounts of Blue Line Protection Group, Inc. (a Nevada corporation formerly known as The Engraving Masters, Inc.)(“EGRV”) and Blue Line Protection Group, Inc. (a Colorado corporation and wholly-owned subsidiary of EGRV)(“BLPG”). All significant intercompany balances and transactions have been eliminated. EGRV and BPLG are collectively referred herein to as the “Company.” | ||
Use of estimates | ||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates. | ||
Cash and cash equivalents | ||
For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value. | ||
Accounts receivable | ||
Accounts receivable are stated at the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable, however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote. | ||
Intangible assets | ||
Management regularly reviews property, equipment, intangibles and other long-lived assets for possible impairment. This review occurs quarterly, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, then management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. Management believes that the accounting estimate related to impairment of its property and equipment, is a “critical accounting estimate” because: (1) it is highly susceptible to change from period to period because it requires management to estimate fair value, which is based on assumptions about cash flows and discount rates; and (2) the impact that recognizing an impairment would have on the assets reported on our balance sheet, as well as net income, could be material. Management’s assumptions about cash flows and discount rates require significant judgment because actual revenues and expenses have fluctuated in the past and are expected to continue to do so. | ||
The Company capitalizes the costs associated with the development of the Company’s website pursuant to ASC Topic 350. Other costs related to the maintenance of the website are expensed as incurred. Amortization is provided over the estimated useful lives of 3 years using the straight-line method for financial statement purposes. The Company will commence amortization once the economic benefits of the assets began to be consumed. | ||
The Company reviews the carrying value of intangible assets for impairment whenever events and circumstances indicate that the carrying value may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to the amount by which the carrying value exceeds the fair value. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. During the three-months ended March 31, 2014 and 2013, there was no impairment necessary. | ||
Property and equipment | ||
Property and equipment is recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: | ||
Automotive Vehicles | 5 years | |
Furniture and Equipment | 7 years | |
The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment there was no impairment as March 31, 2014 and 2013. Depreciation expense for the three-months ended March 31, 2014 and 2013 totaled $379 and $0, respectively. | ||
Revenue recognition | ||
The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of our fees is probable. | ||
Sales related to long-term contracts for services (such as programming, website development and maintenance) extending over several years are accounted for under the percentage-of-completion method of accounting. Sales and earnings under these contracts are recorded based on the ratio of actual costs incurred to total estimated costs expected to be incurred related to the contract under the cost-to-cost method based budgeted milestones or tasks as designated per each contract. Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable. | ||
For all other sales of product or services the Company recognizes revenues based on the terms of the customer agreement. The customer agreement takes the form of either a contract or a customer purchase order and each provides information with respect to the product or service being sold and the sales price. If the customer agreement does not have specific delivery or customer acceptance terms, revenue is recognized on the date of the customer agreement, invoice or purchase order. | ||
Cost of Sales | ||
The Company’s cost of revenue primarily consists of items purchased by the Company specifically purposed for the benefit of the Company’s client. | ||
Stock-based compensation | ||
The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718, which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. | ||
The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50. | ||
Advertising and marketing costs | ||
The Company expenses all costs of advertising as incurred. During the three-months ended March 31, 2014 and 2013, advertising and marketing costs were $0 and $0, respectively. | ||
Loss per common share | ||
Net loss per share is provided in accordance with ASC Subtopic 260-10. We present basic loss per share (“EPS”) and diluted EPS on the face of statements of operations. Basic EPS is computed by dividing reported losses by the weighted average shares outstanding. Except where the result would be anti-dilutive to income from continuing operations, diluted earnings per share has been computed assuming the conversion of the convertible long-term debt and the elimination of the related interest expense, and the exercise of stock warrants. Loss per common share has been computed using the weighted average number of common shares outstanding during the year. | ||
Fair Value of Financial Instruments | ||
The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale. | ||
As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||
The three levels of the fair value hierarchy are described below: | ||
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; | ||
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||
Income Taxes | ||
The Company follows FASB Codification Topic 740-10-25 (ASC 740-10-25) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. | ||
Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. | ||
Dividends | ||
The Company has not yet adopted any policy regarding payment of dividends. No dividends have been paid or declared since inception | ||
Recent pronouncements | ||
The Company has evaluated the recent accounting pronouncements through May 20, 2014, and believes that none of them will have a material effect on the company’s financial position, results of operations or cash flows. |
Fixed_Assets_Note
Fixed Assets, Note | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Notes | ' | |||||
Fixed Assets, Note | ' | |||||
Note 5 - Fixed Assets | ||||||
Fixed assets consisted of the following at: | ||||||
31-Mar-14 | 31-Dec-13 | |||||
Automotive vehicles | $ | 90,000 | $ | -- | ||
Furniture and equipment | 4,552 | -- | ||||
Fixed assets, total | 94,552 | -- | ||||
Less: accumulated depreciation | -379 | -- | ||||
Fixed assets, net | $ | 94,173 | $ | -- | ||
Depreciation expenses for the three-months ended March 31, 2014 and 2013 were $379 and $0, respectively. | ||||||
Debt_and_interest_expense
Debt and interest expense | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
Debt and interest expense | ' |
Note 6 - Debt and interest expense | |
Through March 31, 2014, a non-affiliated third-party loaned the Company an aggregate of $2,000 in cash. The note bears no interest and is due upon demand. | |
On February 21, 2014, the Company issued a Promissory Note to one non-affiliated person in the amount of $25,000. The loan is due and payable on demand and bears no interest. As of March 31, 2014, the principle balance owed on this loan was $25,000. | |
On February 21, 2014, the Company issued a Promissory Note to one non-affiliated entity in the amount of $100,000. The loan is due and payable on demand and bears no interest. As of March 31, 2014, the principle balance owed on this loan was $100,000. | |
On March 26, 2014, the Company issued a Promissory Note to one non-affiliated person in the amount of $25,000 for cash paid to purchase a vehicle on behalf of the Company. The loan is due and payable on demand and bears no interest. As of March 31, 2014, the principle balance owed on this loan was $25,000. |
Stockholders_Equity_Note
Stockholders' Equity, Note | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
Stockholders' Equity, Note | ' |
Note 7 - Stockholders’ equity | |
The Company was originally authorized to issue 100,000,000 shares of $0.001 par value common stock and 100,000,000 shares of $0.001 par value preferred stock. On May 6, 2014, the Company affected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder will receive 14 newly issued shares of common stock for each 1 share they currently hold. Additionally, the authorized number capital of the Company concurrently increased to 1,400,000,000 shares of $0.001 par value common stock. All references to share and per share amounts in the condensed consolidated financial statements and accompanying notes thereto have been retroactively restated to reflect the forward stock split. | |
From the inception of the Company through March 31, 2014, an officer and director of the Company donated cash in the amount of $63,075. The entire amount is considered to be additional paid-in capital. | |
Through March 27, 2014, the Company sold an aggregate of 13,068,462 shares of its common stock for gross cash proceeds of $1,213,501. As of March 31, 2014, the Company did not receive funds in payment of the shares and recorded subscriptions receivable totaling $1,213,501. | |
On March 27, 2014, the Company purchased a vehicle from a non-affiliated entity with 323,078 shares of its common stock in lieu of cash. The value of this transaction was $30,000. | |
As of March 31, 2014, there have been no other issuances of common stock. |
Warrants_and_options
Warrants and options | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
Warrants and options | ' |
Note 8 - Warrants and options | |
As of March 31, 2014, there were no warrants or options outstanding to acquire any additional shares of common stock. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
Related Party Transactions | ' |
Note 9 - Related party transactions | |
From the inception of the Company through March 31, 2014, an officer and director of the Company donated cash in the amount of $63,075. The entire amount is considered to be additional paid-in capital. | |
The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
Subsequent Events | ' |
Note 10 - Subsequent Events | |
On April 14, 2014, the Company formed BLPG, Inc., a wholly-owned subsidiary, under the laws of the State of Nevada. | |
On May 2, 2014, the Company changed its name to Blue Line Protection Group, Inc. | |
On May 6, 2014, the Company affected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder will receive 14 newly issued shares of common stock for each 1 share they currently hold. Additionally, the authorized number capital of the Company concurrently increased to 1,400,000,000 shares of $0.001 par value common stock. All references to share and per share amounts in the condensed consolidated financial statements and accompanying notes thereto have been retroactively restated to reflect the forward stock split. | |
As of May 7, 2014, the Company received cash from escrow in satisfaction of the common stock subscriptions receivable. | |
The Company’s Management has reviewed all material events through the date of this report in accordance with ASC 855-10, and believes there are no further material subsequent events to report. |
Accounting_Policies_and_Proced1
Accounting Policies and Procedures: Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Principles of Consolidation | ' |
Principles of consolidation | |
For the three months ended March 31, 2014, the consolidated financial statements include the accounts of Blue Line Protection Group, Inc. (a Nevada corporation formerly known as The Engraving Masters, Inc.)(“EGRV”) and Blue Line Protection Group, Inc. (a Colorado corporation and wholly-owned subsidiary of EGRV)(“BLPG”). All significant intercompany balances and transactions have been eliminated. EGRV and BPLG are collectively referred herein to as the “Company.” |
Accounting_Policies_and_Proced2
Accounting Policies and Procedures: Use of Estimates (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Use of Estimates | ' |
Use of estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates. |
Accounting_Policies_and_Proced3
Accounting Policies and Procedures: Cash and Cash Equivalents, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Cash and Cash Equivalents, Policy | ' |
Cash and cash equivalents | |
For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value. |
Accounting_Policies_and_Proced4
Accounting Policies and Procedures: Accounts Receivable, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Accounts Receivable, Policy | ' |
Accounts receivable | |
Accounts receivable are stated at the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable, however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote. |
Accounting_Policies_and_Proced5
Accounting Policies and Procedures: Intangible Assets, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Intangible Assets, Policy | ' |
Intangible assets | |
Management regularly reviews property, equipment, intangibles and other long-lived assets for possible impairment. This review occurs quarterly, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, then management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. Management believes that the accounting estimate related to impairment of its property and equipment, is a “critical accounting estimate” because: (1) it is highly susceptible to change from period to period because it requires management to estimate fair value, which is based on assumptions about cash flows and discount rates; and (2) the impact that recognizing an impairment would have on the assets reported on our balance sheet, as well as net income, could be material. Management’s assumptions about cash flows and discount rates require significant judgment because actual revenues and expenses have fluctuated in the past and are expected to continue to do so. | |
The Company capitalizes the costs associated with the development of the Company’s website pursuant to ASC Topic 350. Other costs related to the maintenance of the website are expensed as incurred. Amortization is provided over the estimated useful lives of 3 years using the straight-line method for financial statement purposes. The Company will commence amortization once the economic benefits of the assets began to be consumed. | |
The Company reviews the carrying value of intangible assets for impairment whenever events and circumstances indicate that the carrying value may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to the amount by which the carrying value exceeds the fair value. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. During the three-months ended March 31, 2014 and 2013, there was no impairment necessary. |
Accounting_Policies_and_Proced6
Accounting Policies and Procedures: Property and Equipment, Policy (Policies) | 3 Months Ended | |
Mar. 31, 2014 | ||
Policies | ' | |
Property and Equipment, Policy | ' | |
Property and equipment | ||
Property and equipment is recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: | ||
Automotive Vehicles | 5 years | |
Furniture and Equipment | 7 years | |
The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment there was no impairment as March 31, 2014 and 2013. Depreciation expense for the three-months ended March 31, 2014 and 2013 totaled $379 and $0, respectively. |
Accounting_Policies_and_Proced7
Accounting Policies and Procedures: Revenue Recognition, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Revenue Recognition, Policy | ' |
Revenue recognition | |
The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of our fees is probable. | |
Sales related to long-term contracts for services (such as programming, website development and maintenance) extending over several years are accounted for under the percentage-of-completion method of accounting. Sales and earnings under these contracts are recorded based on the ratio of actual costs incurred to total estimated costs expected to be incurred related to the contract under the cost-to-cost method based budgeted milestones or tasks as designated per each contract. Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable. | |
For all other sales of product or services the Company recognizes revenues based on the terms of the customer agreement. The customer agreement takes the form of either a contract or a customer purchase order and each provides information with respect to the product or service being sold and the sales price. If the customer agreement does not have specific delivery or customer acceptance terms, revenue is recognized on the date of the customer agreement, invoice or purchase order. |
Accounting_Policies_and_Proced8
Accounting Policies and Procedures: Cost of Sales, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Cost of Sales, Policy | ' |
Cost of Sales | |
The Company’s cost of revenue primarily consists of items purchased by the Company specifically purposed for the benefit of the Company’s client. |
Accounting_Policies_and_Proced9
Accounting Policies and Procedures: Stock-based Compensation, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Stock-based Compensation, Policy | ' |
Stock-based compensation | |
The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718, which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. | |
The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50. |
Recovered_Sheet1
Accounting Policies and Procedures: Advertising and Marketing Costs, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Advertising and Marketing Costs, Policy | ' |
Advertising and marketing costs | |
The Company expenses all costs of advertising as incurred. During the three-months ended March 31, 2014 and 2013, advertising and marketing costs were $0 and $0, respectively. |
Recovered_Sheet2
Accounting Policies and Procedures: Loss Per Common Share, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Loss Per Common Share, Policy | ' |
Loss per common share | |
Net loss per share is provided in accordance with ASC Subtopic 260-10. We present basic loss per share (“EPS”) and diluted EPS on the face of statements of operations. Basic EPS is computed by dividing reported losses by the weighted average shares outstanding. Except where the result would be anti-dilutive to income from continuing operations, diluted earnings per share has been computed assuming the conversion of the convertible long-term debt and the elimination of the related interest expense, and the exercise of stock warrants. Loss per common share has been computed using the weighted average number of common shares outstanding during the year. |
Recovered_Sheet3
Accounting Policies and Procedures: Fair Value of Financial Instruments (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale. | |
As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |
The three levels of the fair value hierarchy are described below: | |
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |
Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; | |
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
Recovered_Sheet4
Accounting Policies and Procedures: Income Taxes, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Income Taxes, Policy | ' |
Income Taxes | |
The Company follows FASB Codification Topic 740-10-25 (ASC 740-10-25) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. | |
Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. |
Recovered_Sheet5
Accounting Policies and Procedures: Dividends, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Dividends, Policy | ' |
Dividends | |
The Company has not yet adopted any policy regarding payment of dividends. No dividends have been paid or declared since inception |
Recovered_Sheet6
Accounting Policies and Procedures: Recent Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Recent Pronouncements | ' |
Recent pronouncements | |
The Company has evaluated the recent accounting pronouncements through May 20, 2014, and believes that none of them will have a material effect on the company’s financial position, results of operations or cash flows. |
Recovered_Sheet7
Accounting Policies and Procedures: Property and Equipment, Policy: Estimated useful lives (Tables) | 3 Months Ended | |
Mar. 31, 2014 | ||
Tables/Schedules | ' | |
Estimated useful lives | ' | |
Automotive Vehicles | 5 years | |
Furniture and Equipment | 7 years |
Fixed_Assets_Note_Schedule_of_
Fixed Assets, Note: Schedule of fixed assets (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Tables/Schedules | ' | |||||
Schedule of fixed assets | ' | |||||
31-Mar-14 | 31-Dec-13 | |||||
Automotive vehicles | $ | 90,000 | $ | -- | ||
Furniture and equipment | 4,552 | -- | ||||
Fixed assets, total | 94,552 | -- | ||||
Less: accumulated depreciation | -379 | -- | ||||
Fixed assets, net | $ | 94,173 | $ | -- |
Going_Concern_Details
Going Concern (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Details | ' | ' |
Retained Earnings (Accumulated Deficit) | ($163,751) | ($102,481) |
Net sales | $50,662 | ' |
Recovered_Sheet8
Accounting Policies and Procedures: Property and Equipment, Policy: Estimated useful lives (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Automobiles | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Furniture and Fixtures | ' |
Property, Plant and Equipment, Useful Life | '7 years |
Recovered_Sheet9
Accounting Policies and Procedures: Property and Equipment, Policy (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Details | ' |
Depreciation expense for the period | $379 |
Fixed_Assets_Note_Schedule_of_1
Fixed Assets, Note: Schedule of fixed assets (Details) (USD $) | Mar. 31, 2014 |
Property, Plant and Equipment, Gross | $94,552 |
(Less) accumulated depreciation | -379 |
Total fixed assets, net | 94,173 |
Automobiles | ' |
Property, Plant and Equipment, Gross | 90,000 |
Furniture and Fixtures | ' |
Property, Plant and Equipment, Gross | $4,552 |
Fixed_Assets_Note_Details
Fixed Assets, Note (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Details | ' |
Depreciation expense for the period | $379 |
Debt_and_interest_expense_Deta
Debt and interest expense (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Loan received | $2,000 |
Promissory note issued | 150,000 |
Promissory Note (1) | ' |
Promissory note issued | 25,000 |
Principal balance owed | 25,000 |
Promissory Note (2) | ' |
Promissory note issued | 100,000 |
Principal balance owed | 100,000 |
Promissory Note (3) | ' |
Promissory note issued | 25,000 |
Principal balance owed | $25,000 |
Stockholders_Equity_Note_Detai
Stockholders' Equity, Note (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
6-May-14 | Mar. 31, 2014 | Dec. 31, 2013 | |
Shares of common stock authorized for issuance | ' | 1,400,000,000 | 1,400,000,000 |
Par value of common stock | ' | $0.00 | $0.00 |
Shares of preferred stock authorized for issuance | ' | 100,000,000 | 100,000,000 |
par value of preferred stock | ' | $0.00 | $0.00 |
Forward stock split | '14-to-1, whereby each shareholder will receive 14 newly issued shares of common stock for each 1 share they currently hold | ' | ' |
Pro-rata increase in authorized common stock | 1,400,000,000 | ' | ' |
Donated cash from an officer and director, since inception | ' | $63,075 | ' |
Common stock sold for cash proceeds | ' | 13,068,462 | ' |
Cash proceeds from common stock sold | ' | 1,213,501 | ' |
Subscriptions receivable | ' | 1,213,501 | ' |
Purchase of vehicle | ' | ' | ' |
Common stock issued for purchase of assets | ' | 323,078 | ' |
Value of stock transaction | ' | $30,000 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | Mar. 31, 2014 |
Donated cash | $63,075 |
Officer and director | ' |
Donated cash | $63,075 |
Subsequent_Events_Details
Subsequent Events (Details) | 1 Months Ended |
6-May-14 | |
Details | ' |
Forward stock split | '14-to-1, whereby each shareholder will receive 14 newly issued shares of common stock for each 1 share they currently hold |
Pro-rata increase in authorized common stock | 1,400,000,000 |