Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Feb. 28, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Thermal Tennis Inc. | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-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 Public Float | $0 | ' |
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 | 'FY | ' |
BALANCE_SHEETS_Unaudited
BALANCE SHEETS (Unaudited) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash | $3,139 | $1,759 |
Accounts receivable, net | ' | 819 |
Prepaids | ' | 458 |
Total Current Assets | 3,139 | 3,036 |
TOTAL ASSETS | 3,139 | 3,036 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable and accrued expenses | 23,794 | 14,921 |
Accounts payable and accrued expenses-Related parties | 38,917 | 28,614 |
Notes payable-Current maturities | 47,000 | 32,000 |
Notes payable-Related Parties-Current maturities | 102,000 | 92,000 |
Total Current Liabilities | 211,711 | 167,535 |
LONG-TERM LIABILITIES: | ' | ' |
Note payable | ' | ' |
Total Liabilities | 211,711 | 167,535 |
STOCKHOLDERS' DEFICIT: | ' | ' |
Capital stock, $.001 par value; 75,000,000 shares authorized; 1,676,000 shares issued and outstanding at December 31, 2013 and 2012, respectively | 1,676 | 1,676 |
Additional paid-in capital | 43,328 | 40,328 |
Accumulated deficit | -253,576 | -206,503 |
Total Stockholders' Deficit | -208,572 | -164,499 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $3,139 | $3,036 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position | ' | ' |
Common Stock, par or stated value | $0.00 | $0.00 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 1,676,000 | 1,676,000 |
Common Stock, shares outstanding | 1,676,000 | 1,676,000 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement | ' | ' |
SALES, Net of Returns, Allowances and Discounts | $10,927 | $97,499 |
COST OF SALES | 9,360 | 92,156 |
GROSS PROFIT | 1,567 | 5,343 |
EXPENSES: | ' | ' |
General and administrative expenses | 35,168 | 55,092 |
TOTAL OPERATING EXPENSES | 35,168 | 55,092 |
LOSS BEFORE OTHER (EXPENSE) AND INCOME TAXES | -33,601 | -49,749 |
OTHER (EXPENSE) | ' | ' |
Interest expense | -4,108 | -1,886 |
Interest expense-Related parties | -9,364 | -8,084 |
Total other (expense) | -13,472 | -9,970 |
LOSS BEFORE INCOME TAXES | -47,073 | -59,719 |
PROVISIONS FOR INCOME TAXES | ' | ' |
NET LOSS | ($47,073) | ($59,719) |
BASIC LOSS PER SHARE | ($0.03) | ($0.04) |
WEIGHTED AVERAGE SHARES OUTSTANDING | 1,676,000 | 1,676,000 |
STATEMENTS_OF_STOCKHOLDERS_DEF
STATEMENTS OF STOCKHOLDERS' DEFICIT (USD $) | Capital Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Stockholders' Equity, Beginning of Period, Value at Dec. 31, 2011 | $1,676 | $37,328 | ($146,784) | ($107,780) |
Stockholders' Equity, Beginning of Period, Shares at Dec. 31, 2011 | 1,676,000 | ' | ' | ' |
Contribution of rent expense | ' | 3,000 | ' | 3,000 |
Net loss | ' | ' | -59,719 | -59,719 |
Stockholders' Equity, End of Period, Value at Dec. 31, 2012 | 1,676 | 40,328 | -206,503 | -164,499 |
Stockholders' Equity, End of Period, Shares at Dec. 31, 2012 | 1,676,000 | ' | ' | ' |
Contribution of rent expense | ' | 3,000 | ' | 3,000 |
Net loss | ' | ' | -47,073 | -47,073 |
Stockholders' Equity, End of Period, Value at Dec. 31, 2013 | $1,676 | $43,328 | ($253,576) | ($208,572) |
Stockholders' Equity, End of Period, Shares at Dec. 31, 2013 | 1,676,000 | ' | ' | ' |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($47,073) | ($59,719) |
Adjustments to reconcile net loss to net cash (used)/provided in operating activities: | ' | ' |
Contribution of rent expense by a related party | 3,000 | 3,000 |
Changes in assets and liabilities: | ' | ' |
Decrease/(increase) in accounts receivable | 819 | 315 |
Decrease/(increase) in prepaids | 458 | -13 |
Increase in accounts payable and accrued expenses-Related parties | 10,303 | 8,084 |
Increase in accounts payable and accrued expenses | 8,873 | 4,242 |
Net cash (used) by operating activities | -23,620 | -44,091 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Increase in notes payable | 15,000 | 20,000 |
Increase in notes payable-Related parties | 10,000 | 20,000 |
Net cash provided by financing activities | 25,000 | 40,000 |
Net increase (decrease) in cash | 1,380 | -4,091 |
CASH AT BEGINNING PERIOD | 1,759 | 5,850 |
CASH AT END OF PERIOD | 3,139 | 1,759 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Cash paid for income taxes | ' | ' |
Cash paid for interest expense | ' | ' |
Note_1_Organization_History_an
Note 1 - Organization, History and Business Activity | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 1 - Organization, History and Business Activity | ' |
NOTE 1 – Organization, History and Business Activity | |
Thermal Tennis Inc. (Company) was founded July 1, 1999 and was organized to engage in the business of namely the development of tennis management programs, tennis training programs, sales of tennis equipment and general services related to tennis. The Company was incorporated under the laws of the State of Nevada. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 2 - Significant Accounting Policies | ' |
NOTE 2 - Significant Accounting Policies | |
This summary of significant accounting policies of Thermal Tennis Inc. (the “Company”) is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Concentration of Risk | |
The Company places its cash and temporary cash investments with established financial institutions. | |
Accounts Receivable | |
Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company reserved $0 as a bad debt reserve for the years ended December 31, 2013 and 2012, respectively. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. | |
Fair Value of Financial Instruments | |
Effective January 1, 2008, the Company adopted FASB ASC 820, Fair Value Measurements and Disclosures, Pre Codification SFAS No. 157, “Fair Value Measurements”, which provides a framework for measuring fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also expands disclosures about instruments measured at fair value and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |
Level 1 — Quoted prices for identical assets and liabilities in active markets; | |
Level 2 — Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |
Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |
The Company designates cash equivalents (consisting of money market funds) and investments in securities of publicly traded companies as Level 1. The total amount of the Company’s investment classified as Level 3 is de minimis. | |
The fair value of the Company’s debt as of December 31, 2013 and 2012, approximated fair value at those times. | |
Fair value of financial instruments: The carrying amounts of financial instruments, including cash and cash equivalents, short-term investments, accounts payable, accrued expenses and notes payables approximated fair value as of December 31, 2013 and 2012 because of the relative short term nature of these instruments. At December 31, 2013 and 2012, the fair value of the Company’s debt approximates carrying value. | |
Shares for Services and Other Assets | |
The Company accounts for stock-based compensation based on the fair value of all option grants or stock issuances made to employees or directors on or after its implementation date, as well as a portion of the fair value of each option and stock grant made to employees or directors prior to the implementation date that represents the unvested portion of these share-based awards as of such implementation date, to be recognized as an expense, as codified in ASC 718. The Company calculates stock option-based compensation by estimating the fair value of each option as of its date of grant using the Black-Scholes option pricing model. These amounts are expensed over the respective vesting periods of each award using the straight-line attribution method. Compensation expense is recognized only for those awards that are expected to vest, and as such, amounts have been reduced by estimated forfeitures. | |
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. | |
Income Taxes | |
The Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Company’s balance sheets in accordance with ASC 740, which established financial accounting and reporting standards for the effect of income taxes. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. Changes in the Company’s valuation allowance in a period are recorded through the income tax provision on the consolidated statements of operations. | |
On January 1, 2007, the Company adopted ASC 740-10. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under ASC 740-10, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC 740-10 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740-10, the Company recognized no material adjustment in the liability for unrecognized income tax benefits. | |
Segments | |
The Company operates in only one business segment, namely the development of tennis management programs, tennis training programs, sales of tennis equipment and general services related to tennis. | |
Earnings Per Share | |
The Company is required to provide basic and dilutive earnings per common share information. | |
The basic net loss per common share is computed by dividing the net earnings applicable to common stockholders by the weighted average number of common shares outstanding. | |
Diluted net income per common share is computed by dividing the net income applicable to common stockholders, adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities. | |
For the period ended December 31, 2013 and 2012, there were no dilutive securities that would have had an anti-dilutive effect and all the shares outstanding were included in the calculation of diluted net income per common share. | |
Recent Accounting Pronouncements | |
Recent accounting pronouncements issued by the FASB, the American Institute of Certified Public Accountants ("AICPA"), and the SEC did not or are not believed by management to have a material impact on the Company's present financial statements. |
Note_3_Financial_Condition_and
Note 3 - Financial Condition and Going Concern | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 3 - Financial Condition and Going Concern | ' |
NOTE 3 – Financial Condition and 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 2013, the Company has an Accumulated Deficit, and a Stockholders’ Deficit. 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_4_Income_Taxes
Note 4 - Income Taxes | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 4 - Income Taxes | ' | ||
NOTE 4 – Income Taxes | |||
Effective January 1, 2007, we adopted the provisions of ASC 740-10. 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 of 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 year ended December 31, 2013. | |||
We classify interest and penalties arising from the underpayment of income taxes in the statement of income under general and administrative expenses. As of December 31, 2013, we had no accrued interest or penalties related to uncertain tax positions. The tax years 2010-2013 federal returns remain open to examination. | |||
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||
The provision (benefit) for income taxes for the year ended December 31, 2013 and 2012 consists of the following: | |||
2013 | 2012 | ||
Federal: | |||
Current | $- | $- | |
Deferred | - | - | |
State: | |||
Current | - | - | |
Deferred | - | - | |
$- | $- | ||
Net deferred tax assets consist of the following components as of December 31, 2013 and 2012: | |||
2013 | 2012 | ||
Deferred tax assets: | |||
Accrued expenses | $13,232 | $9,729 | |
Operating Loss | 82,993 | 66,988 | |
Valuation allowance | -96,225 | -76,717 | |
Net deferred tax asset | 0 | 0 | |
The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rate of 34% to pretax income from continuing operations of the years ended December 31, 2013 and 2012 due to the following: | |||
2013 | 2012 | ||
Book (Loss) | ($16,005) | ($20,305) | |
Related party accrual | 3,503 | 2,749 | |
Allowance for doubtful accounts | - | -581 | |
-12,502 | -10,379 | ||
Valuation allowance | |||
Income Tax Expense | 0 | 0 | |
Note_5_Notes_Payable
Note 5 - Notes Payable | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 5 - Notes Payable | ' | ||
NOTE 5 – Notes Payable | |||
The Company’s notes payable consists of the following: | |||
2013 | 2012 | ||
Note payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | $27,000 | $22,000 | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 5,000 | - | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 5,000 | - | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 5,000 | 5,000 | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 5,000 | 5,000 | |
47,000 | 32,000 | ||
Less current portion | (47,000) | - | |
$- | $- | ||
Future maturities of notes payable are as follows: | |||
Years Ending December 31: | |||
2014 | $47,000 | ||
Note_6_Notes_Payablerelated_Pa
Note 6 - Notes Payable-related Parties | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 6 - Notes Payable-related Parties | ' | ||
NOTE 6 – Notes Payable-Related Parties | |||
The Company’s notes payable to related parties consists of the following: | |||
December 31, | |||
2013 | 2012 | ||
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 (1)(2) | $50,000 | $40,000 | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 (1)(2) | 32,000 | 32,000 | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 20,000 | 20,000 | |
102,000 | 92,000 | ||
Less current portion | (102,000) | (92,000) | |
$- | $- | ||
Future maturities of long-term debt to related parties are as follows: | |||
Years Ending December 31: | |||
2014 | $102,000 | ||
(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_7_Related_Party_Transacti
Note 7 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 7 - Related Party Transactions | ' |
NOTE 7 - Related Party Transactions | |
The Company recognized $3,000 of expense in 2013 and 2012, which represented the value of the rent associated with the sole officer’s home office | |
The President provided certain contract services in 2013 and 2012 and was paid $0 and $4,822 for these services, respectively. | |
The Company accrued interest expense on the notes listed in Note 6 in the amount of $9,364 and $8,084 for the years ended December 31, 2013 and 2012, respectively. The total interest owed at December 31, 2013 on the related party notes amounts to $38,917. | |
The President of the Company loaned in the year ended December 31, 2012, as described in Note 6 under notes payable-related parties, $20,000 that is due July 1, 2014 with interest at 10%. | |
The President of the Company loaned in the year ended December 31, 2013, as described in Note 6 under notes payable-related parties, $10,000 that is due July 1, 2014 with interest at 10%. |
Note_8_Subsequent_Events
Note 8 - Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 8 - Subsequent Events | ' |
NOTE 8 – Subsequent Events | |
The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there is the following subsequent event to disclose. | |
Subsequent to the end of the fiscal year ended December 31, 2013, the Company borrowed $25,000 from Cohort Capital L.L.C., a Nevada limited liability company. Interest accrues on the loan at the rate of 10% per annum. All principal and interest is due and payable on July 1, 2014. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Concentration of Risk | ' |
Concentration of Risk | |
The Company places its cash and temporary cash investments with established financial institutions. | |
Accounts Receivable | ' |
Accounts Receivable | |
Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company reserved $0 as a bad debt reserve for the years ended December 31, 2013 and 2012, respectively. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Effective January 1, 2008, the Company adopted FASB ASC 820, Fair Value Measurements and Disclosures, Pre Codification SFAS No. 157, “Fair Value Measurements”, which provides a framework for measuring fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also expands disclosures about instruments measured at fair value and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |
Level 1 — Quoted prices for identical assets and liabilities in active markets; | |
Level 2 — Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |
Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |
The Company designates cash equivalents (consisting of money market funds) and investments in securities of publicly traded companies as Level 1. The total amount of the Company’s investment classified as Level 3 is de minimis. | |
The fair value of the Company’s debt as of December 31, 2013 and 2012, approximated fair value at those times. | |
Fair value of financial instruments: The carrying amounts of financial instruments, including cash and cash equivalents, short-term investments, accounts payable, accrued expenses and notes payables approximated fair value as of December 31, 2013 and 2012 because of the relative short term nature of these instruments. At December 31, 2013 and 2012, the fair value of the Company’s debt approximates carrying value. | |
Shares For Services and Other Assets | ' |
Shares for Services and Other Assets | |
The Company accounts for stock-based compensation based on the fair value of all option grants or stock issuances made to employees or directors on or after its implementation date, as well as a portion of the fair value of each option and stock grant made to employees or directors prior to the implementation date that represents the unvested portion of these share-based awards as of such implementation date, to be recognized as an expense, as codified in ASC 718. The Company calculates stock option-based compensation by estimating the fair value of each option as of its date of grant using the Black-Scholes option pricing model. These amounts are expensed over the respective vesting periods of each award using the straight-line attribution method. Compensation expense is recognized only for those awards that are expected to vest, and as such, amounts have been reduced by estimated forfeitures. | |
Revenue Recognition | ' |
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. | |
Income Taxes | ' |
Income Taxes | |
The Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Company’s balance sheets in accordance with ASC 740, which established financial accounting and reporting standards for the effect of income taxes. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. Changes in the Company’s valuation allowance in a period are recorded through the income tax provision on the consolidated statements of operations. | |
On January 1, 2007, the Company adopted ASC 740-10. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under ASC 740-10, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC 740-10 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740-10, the Company recognized no material adjustment in the liability for unrecognized income tax benefits. | |
Segments | ' |
Segments | |
The Company operates in only one business segment, namely the development of tennis management programs, tennis training programs, sales of tennis equipment and general services related to tennis. | |
Earnings Per Share | ' |
Earnings Per Share | |
The Company is required to provide basic and dilutive earnings per common share information. | |
The basic net loss per common share is computed by dividing the net earnings applicable to common stockholders by the weighted average number of common shares outstanding. | |
Diluted net income per common share is computed by dividing the net income applicable to common stockholders, adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities. | |
For the period ended December 31, 2013 and 2012, there were no dilutive securities that would have had an anti-dilutive effect and all the shares outstanding were included in the calculation of diluted net income per common share. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Recent accounting pronouncements issued by the FASB, the American Institute of Certified Public Accountants ("AICPA"), and the SEC did not or are not believed by management to have a material impact on the Company's present financial statements. |
Note_4_Income_Taxes_Schedule_o
Note 4 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||
2013 | 2012 | ||
Federal: | |||
Current | $- | $- | |
Deferred | - | - | |
State: | |||
Current | - | - | |
Deferred | - | - | |
$- | $- |
Note_4_Income_Taxes_Schedule_o1
Note 4 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Deferred Tax Assets and Liabilities | ' | ||
2013 | 2012 | ||
Deferred tax assets: | |||
Accrued expenses | $13,232 | $9,729 | |
Operating Loss | 82,993 | 66,988 | |
Valuation allowance | -96,225 | -76,717 | |
Net deferred tax asset | 0 | 0 |
Note_4_Income_Taxes_Schedule_o2
Note 4 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||
2013 | 2012 | ||
Book (Loss) | ($16,005) | ($20,305) | |
Related party accrual | 3,503 | 2,749 | |
Allowance for doubtful accounts | - | -581 | |
-12,502 | -10,379 | ||
Valuation allowance | |||
Income Tax Expense | 0 | 0 |
Note_5_Notes_Payable_Schedule_
Note 5 - Notes Payable: Schedule of Notes Payable (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Notes Payable | ' | ||
2013 | 2012 | ||
Note payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | $27,000 | $22,000 | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 5,000 | - | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 5,000 | - | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 5,000 | 5,000 | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 5,000 | 5,000 | |
47,000 | 32,000 | ||
Less current portion | (47,000) | - | |
$- | $- | ||
Note_6_Notes_Payablerelated_Pa1
Note 6 - Notes Payable-related Parties: Schedule of Related Party Transactions (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Related Party Transactions | ' | ||
December 31, | |||
2013 | 2012 | ||
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 (1)(2) | $50,000 | $40,000 | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 (1)(2) | 32,000 | 32,000 | |
Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014 | 20,000 | 20,000 | |
102,000 | 92,000 | ||
Less current portion | (102,000) | (92,000) | |
$- | $- | ||
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies: Accounts Receivable (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Provision for Doubtful Accounts | $0 | $0 |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies: Earnings Per Share (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Note_4_Income_Taxes_Schedule_o3
Note 4 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Current Federal Tax Expense (Benefit) | $0 | $0 |
Deferred Federal Income Tax Expense (Benefit) | 0 | 0 |
Current State Tax Expense (Benefit) | 0 | 0 |
Deferred State Income Tax Expense (Benefit) | 0 | 0 |
Provision for Income Taxes | ' | ' |
Note_4_Income_Taxes_Schedule_o4
Note 4 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Accrued Expenses | $13,232 | $9,729 |
Operating Loss | 82,993 | 66,988 |
Valuation Allowance | -96,225 | -76,717 |
Net deferred tax asset | $0 | $0 |
Note_4_Income_Taxes_Schedule_o5
Note 4 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Book (Loss) | ($16,005) | ($20,305) |
Related Party Accruals | 3,503 | 2,749 |
Allowance for doubtful accounts | ' | -581 |
Valuation allowance | 12,502 | 10,379 |
Income Tax Expense | $0 | $0 |
Note_5_Notes_Payable_Schedule_1
Note 5 - Notes Payable: Schedule of Notes Payable (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Notes payable-Current maturities | $47,000 | $32,000 |
Note payable, Noncurrent | ' | ' |
Note Payable 1 | ' | ' |
Notes payable-Current maturities | 27,000 | 22,000 |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' |
Debt Instrument, Maturity Date | 1-Jul-14 | ' |
Note Payable 2 | ' | ' |
Notes payable-Current maturities | 5,000 | ' |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' |
Debt Instrument, Maturity Date | 1-Jul-14 | ' |
Note Payable 3 | ' | ' |
Notes payable-Current maturities | 5,000 | ' |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' |
Debt Instrument, Maturity Date | 1-Jul-14 | ' |
Note Payable 4 | ' | ' |
Notes payable-Current maturities | 5,000 | 5,000 |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' |
Debt Instrument, Maturity Date | 1-Jul-14 | ' |
Note Payable 5 | ' | ' |
Notes payable-Current maturities | $5,000 | $5,000 |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' |
Debt Instrument, Maturity Date | 1-Jul-14 | ' |
Note_6_Notes_Payablerelated_Pa2
Note 6 - Notes Payable-related Parties: Schedule of Related Party Transactions (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Notes payable-Related Parties-Current maturities | $102,000 | $92,000 | ||
Notes Payable, Related Parties, Noncurrent | 0 | 0 | ||
Related Party Note Payable 1 | ' | ' | ||
Notes payable-Related Parties-Current maturities | 50,000 | 40,000 | ||
Debt Instrument, Face Amount | 25,000 | ' | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' | ||
Debt Instrument, Maturity Date | 1-Jul-14 | ' | ||
Related Party Note Payable 2 | ' | ' | ||
Notes payable-Related Parties-Current maturities | 32,000 | [1],[2] | 32,000 | [1],[2] |
Debt Instrument, Face Amount | 25,000 | ' | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' | ||
Debt Instrument, Maturity Date | 1-Jul-14 | ' | ||
Related Party Note Payable 3 | ' | ' | ||
Notes payable-Related Parties-Current maturities | $20,000 | [3] | $20,000 | [3] |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ' | ||
Debt Instrument, Maturity Date | 1-Jul-14 | ' | ||
[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_7_Related_Party_Transacti1
Note 7 - Related Party Transactions (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Contribution of rent expense | $3,000 | $3,000 |
Interest expense-Related parties | 9,364 | 8,084 |
Accounts payable and accrued expenses-Related parties | 38,917 | 28,614 |
Notes payable-Related Parties-Current maturities | 102,000 | 92,000 |
Officer | ' | ' |
Contribution of rent expense | 3,000 | 3,000 |
President | ' | ' |
Professional and Contract Services Expense | 0 | 4,822 |
Notes payable-Related Parties-Current maturities | ' | 20,000 |
Debt Instrument, Maturity Date | 1-Jul-14 | 1-Jul-14 |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% |
Increase (Decrease) in Notes Payable, Related Parties, Current | $10,000 | ' |
Note_8_Subsequent_Events_Detai
Note 8 - Subsequent Events (Details) (Subsequent Event, CohortCapitalLLCMember, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Event | CohortCapitalLLCMember | ' |
Proceeds from Short-term Debt | $25,000 |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% |
Debt Instrument, Maturity Date | 1-Jul-14 |