Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 14, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Thermal Tennis Inc. | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001417028 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 1,676,000 |
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 | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_BALANCE_SHEETS_Unaud
CONDENSED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash | $76 | $1,759 |
Accounts receivable, net | ' | 819 |
Prepaids | ' | 458 |
Total Current Assets | 76 | 3,036 |
TOTAL ASSETS | 76 | 3,036 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable and accrued expenses | 24,367 | 14,921 |
Accounts payable and accrued expenses-Related parties | 36,434 | 28,614 |
Notes payable | 47,000 | 32,000 |
Notes payable-Related parties | 92,000 | 92,000 |
Total Current Liabilities | 199,801 | 167,535 |
LONG-TERM LIABILITIES: | ' | ' |
Note payable | 0 | 0 |
Total Liabilities | 199,801 | 167,535 |
STOCKHOLDERS' DEFICIT: | ' | ' |
Capital stock, $.001 par value; 50,000,000 shares authorized; 1,676,000 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 1,676 | 1,676 |
Additional paid-in capital | 42,579 | 40,328 |
Accumulated deficit | -243,980 | -206,503 |
Total Stockholders' Deficit | -199,725 | -164,499 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $76 | $3,036 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position | ' | ' |
Common Stock, par or stated value | $0.00 | $0.00 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 1,676,000 | 1,676,000 |
Common Stock, shares outstanding | 1,676,000 | 1,676,000 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement | ' | ' | ' | ' |
SALES, Net of Returns, Allowances and Discounts | ' | $32,427 | $10,927 | $85,208 |
COST OF SALES | ' | 38,029 | 8,779 | 77,610 |
GROSS PROFIT/(LOSS) | ' | -5,602 | 2,148 | 7,598 |
EXPENSES: | ' | ' | ' | ' |
General and administrative expenses | 9,551 | 13,767 | 29,820 | 39,426 |
TOTAL OPERATING EXPENSES | 9,551 | 13,767 | 29,820 | 39,426 |
(LOSS) BEFORE OTHER (EXPENSE) AND INCOME TAXES | -9,551 | -19,369 | -27,672 | -31,828 |
OTHER (EXPENSE) | ' | ' | ' | ' |
Interest expense | -1,160 | -302 | -2,924 | -899 |
Interest expense-Related parties | -2,319 | -2,112 | -6,881 | -5,845 |
Total other (expense) | -3,479 | -2,414 | -9,805 | -6,744 |
LOSS BEFORE INCOME TAXES | -13,030 | -21,783 | -37,477 | -38,572 |
PROVISIONS FOR INCOME TAXES | ' | ' | ' | ' |
NET LOSS | ($13,030) | ($21,783) | ($37,477) | ($38,572) |
BASIC LOSS PER SHARE | ($0.01) | ($0.01) | ($0.02) | ($0.02) |
WEIGHTED AVERAGE SHARES OUTSTANDING | 1,676,000 | 1,676,000 | 1,676,000 | 1,676,000 |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($37,477) | ($38,572) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Contribution of rent expense by a related party | 2,250 | 2,250 |
Changes in assets and liabilities: | ' | ' |
Decrease/(increase) in accounts receivable | 820 | -2,033 |
Decrease/(increase) in prepaids | 458 | -465 |
Increase in accounts payable and accrued expenses-Related parties | 7,820 | 5,845 |
Increase in accounts payable and accrued expenses | 9,446 | 4,768 |
Net cash (used) by operating activities | -16,683 | -28,207 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Increase in notes payable | 15,000 | 20,000 |
Increase in notes payable-Related parties | ' | 12,000 |
Net cash provided by financing activities | 15,000 | 32,000 |
Net (decrease)/increase in cash | -1,683 | 3,793 |
CASH AT BEGINNING PERIOD | 1,759 | 5,850 |
CASH AT END OF PERIOD | 76 | 9,643 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Cash paid for income taxes | ' | ' |
Cash paid for interest expense | ' | ' |
Note_A_Presentation
Note A - Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note A - Presentation | ' |
NOTE A - PRESENTATION | |
The balance sheets of the Company as of September 30, 2013 and December 31, 2012, the related statements of operations for the nine months and three months ended September 30, 2013 and 2012 and the statements of cash flows for the nine months ended September 30, 2013 and 2012, (the financial statements) include all adjustments (consisting of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. The results of operations for the three months ended September 30, 2013 and 2012 are not necessarily indicative of the results of operations for the full year or any other interim period. The information included in this set of financial statements should be read in conjunction with Management's Discussion and Analysis and Financial Statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2012. |
Note_B_Revenue_Recognition
Note B - Revenue Recognition | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note B - Revenue Recognition | ' |
NOTE B - REVENUE RECOGNITION | |
The Company recognizes revenue in accordance with the Securities and Exchange Commission Staff Accounting Bulletin (SAB) number 104, which states that revenues are generally recognized when it is realized and earned. Specifically, the Company recognizes revenue when services are performed and projects are completed and accepted by the customer. Revenues are earned from tennis lessons, sales of ball machines and other related services. |
Note_C_Going_Concern
Note C - Going Concern | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note C - Going Concern | ' |
NOTE C - GOING CONCERN | |
The Company’s financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company generated a net loss from its operations in 2012 and 2011. Additionally, the revenue base of the Company is seasonal and the Company receives a majority of its revenues in the second and third quarters of the calendar year. It also sustained operating losses in prior years. Additionally, due to the current and prior year net operating loss, the Company currently has a deficit in its stockholders’ equity account. These factors raise substantial doubt as to its ability to obtain debt and/or equity financing and achieving future profitable operations. | |
Management intends to raise additional operating funds through equity and/or debt offerings. However, there can be no assurance management will be successful in its endeavors. Ultimately, the Company will need to achieve profitable operations in order to continue as a going concern. | |
There are no assurances that Thermal Tennis Inc. will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support its working capital requirements. To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to Thermal Tennis Inc. If adequate working capital is not available Thermal Tennis Inc. may be required to curtail its operations. |
Note_D_Notes_Payable
Note D - Notes Payable | 9 Months Ended | ||
Sep. 30, 2013 | |||
Notes | ' | ||
Note D - Notes Payable | ' | ||
NOTE D – NOTES PAYABLE | |||
The Company’s notes payable, all due currently, consists of the following: | |||
30-Sep-13 | |||
Notes payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | $22,000 | ||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | 5,000 | ||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | 5,000 | ||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | 5,000 | ||
5,000 | |||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | |||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | 5,000 | ||
47,000 | |||
Less current portion | (47,000) | ||
$ - | |||
Note_E_Notes_PayableRelated_Pa
Note E - Notes Payable-Related Parties | 9 Months Ended | ||
Sep. 30, 2013 | |||
Notes | ' | ||
Note E - Notes Payable-Related Parties | ' | ||
NOTE E – NOTES PAYABLE-RELATED PARTIES | |||
The Company’s related party notes payable, all due currently, consists of the following: | |||
30-Sep-13 | |||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | $40,000 | ||
Notes payable, due to an individual, 10% interest, principle and interest due January 1, 2014(1)(2) | 32,000 | ||
Notes payable, due to an individual, 10% interest, principle and interest due January 1, 2014(1) | 20,000 | ||
92,000 | |||
Less current portion | (92,000) | ||
$ - | |||
(1) | The notes listed above represent credit lines that allow the Company to borrow up to $25,000 on each note to pay the ongoing expenses of the company. | ||
(2) | The lender made the additional loan above the original terms and conditions of the note without amending the credit line. |
Note_F_Recently_Enacted_Accoun
Note F - Recently Enacted Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note F - Recently Enacted Accounting Pronouncements | ' |
NOTE F – RECENTLY ENACTED ACCOUNTING PRONOUNCEMENTS | |
We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow. |
Note_G_Income_Taxes
Note G - Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note G - Income Taxes | ' |
NOTE G – INCOME TAXES | |
Effective January 1, 2007, we adopted the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC 740-10 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The application of income tax law is inherently complex. Laws and regulation in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding the income tax exposures. Interpretations and guidance surrounding income tax laws and regulations change over time. As such, changes in the subjective assumptions and judgments can materially affect amounts recognized in the balance sheets and statements of income. | |
At the adoption date of January 1, 2007, we had no unrecognized tax benefit, which would affect the effective tax rate if recognized. There has been no significant change in the unrecognized tax benefit during the three months ended September 30, 2013. | |
Note_H_Related_Party_Transacti
Note H - Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note H - Related Party Transactions | ' |
NOTE H – RELATED PARTY TRANSACTIONS | |
The Company recognized $750 of expense in the three months ended September 30, 2013, which represented the value of the rent associated with the sole officer’s home office. This amount recognized in the third quarter in the amount of $750 was contributed to additional paid-in capital for the quarter ended September 30, 2013. |
Note_I_Subsequent_Event
Note I - Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note I - Subsequent Event | ' |
NOTE I – SUBSEQUENT EVENT | |
The Company has evaluated subsequent events pursuant to ASC 855 and has determined that there are no reportable subsequent events. |
Note_D_Notes_Payable_Schedule_
Note D - Notes Payable: Schedule of Debt (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Debt | ' | ||
30-Sep-13 | |||
Notes payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | $22,000 | ||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | 5,000 | ||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | 5,000 | ||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | 5,000 | ||
5,000 | |||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | |||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | 5,000 | ||
47,000 | |||
Less current portion | (47,000) | ||
$ - |
Note_E_Notes_PayableRelated_Pa1
Note E - Notes Payable-Related Parties: Schedule of Related Party Debt (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Related Party Debt | ' | ||
30-Sep-13 | |||
Note payable, due to an individual, 10% interest, principle and interest due January 1, 2014 | $40,000 | ||
Notes payable, due to an individual, 10% interest, principle and interest due January 1, 2014(1)(2) | 32,000 | ||
Notes payable, due to an individual, 10% interest, principle and interest due January 1, 2014(1) | 20,000 | ||
92,000 | |||
Less current portion | (92,000) | ||
$ - |
Note_D_Notes_Payable_Schedule_1
Note D - Notes Payable: Schedule of Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Note Payable 1 | Note Payable 2 | Note Payable 3 | Note Payable 4 | Note Payable 5 | Note Payable 6 | |||
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Debt Instrument, Maturity Date | ' | ' | 1-Jan-14 | 1-Jan-14 | 1-Jan-14 | 1-Jan-14 | 1-Jan-14 | 1-Jan-14 |
Notes payable | $47,000 | $32,000 | $22,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Note payable, Noncurrent | $0 | $0 | ' | ' | ' | ' | ' | ' |
Note_E_Notes_PayableRelated_Pa2
Note E - Notes Payable-Related Parties: Schedule of Related Party Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||
Related Party Note Payable 1 | Related Party Note Payable 2 | Related Party Note Payable 3 | |||||
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | 10.00% | 10.00% | 10.00% | ||
Debt Instrument, Maturity Date | ' | ' | 1-Jan-14 | 1-Jan-14 | 1-Jan-14 | ||
Notes payable-Related parties | $92,000 | $92,000 | $40,000 | $32,000 | [1],[2] | $20,000 | [3] |
Debt Instrument, Face Amount | ' | ' | ' | 25,000 | 25,000 | ||
Notes Payable, Related Parties, Noncurrent | $0 | ' | ' | ' | ' | ||
[1] | The notes listed above represent credit lines that allow the Company to borrow up to $25,000 on each note to pay the ongoing expenses of the company. | ||||||
[2] | The lender made the additional loan above the original terms and conditions of the note without amending the credit line. | ||||||
[3] | The notes listed above represent credit lines that allow the Company to borrow up to $25,000 on each note to pay the ongoing expenses of the Company. |
Note_H_Related_Party_Transacti1
Note H - Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Details | ' | ' | ' |
Contribution of rent expense by a related party | $750 | $2,250 | $2,250 |
Adjustments to Additional Paid in Capital, Other | $750 | ' | ' |