Cannasys (MJTK) 10-Q 13 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	13-May-14
Document and Entity Information	'	'
Entity Registrant Name	'Thermal Tennis Inc.	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
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	'2014	'
Document Fiscal Period Focus	'Q1	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
CURRENT ASSETS:	'	'
Cash	$9,119	$3,139
Total Current Assets	9,119	3,139
TOTAL ASSETS	9,119	3,139
CURRENT LIABILITIES:	'	'
Accounts payable and accrued expenses	7,582	23,794
Accounts payable and accrued expenses-Related parties	41,432	38,917
Notes payable	72,000	47,000
Notes payable-Related parties	102,000	102,000
Total Liabilities	223,014	211,711
STOCKHOLDERS' DEFICIT:	'	'
Capital stock, $.001 par value; 75,000,000 shares authorized; 1,676,000 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	1,676	1,676
Additional paid-in capital	44,078	43,328
Accumulated deficit	-259,649	-253,576
Total Stockholders' Deficit	-213,895	-208,572
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$9,119	$3,139

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
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 $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement	'	'
SALES, Net of Returns, Allowances and Discounts	'	$10,903
COST OF SALES	'	8,778
GROSS PROFIT	'	2,125
EXPENSES:	'	'
General and administrative expenses	13,978	12,922
TOTAL OPERATING EXPENSES	13,978	12,922
(LOSS) BEFORE OTHER INCOME/(EXPENSE) AND INCOME TAXES	-13,978	-10,797
OTHER INCOME/(EXPENSE)	'	'
Gain on forgiveness of debt	11,956	'
Interest expense	-1,536	-789
Interest expense-Related parties	-2,515	-2,269
Total other income/(expense)	7,905	-3,058
LOSS BEFORE INCOME TAXES	-6,073	-13,855
PROVISIONS FOR INCOME TAXES	'	'
NET LOSS	($6,073)	($13,855)
BASIC LOSS PER SHARE	$0	($0.01)
WEIGHTED AVERAGE SHARES OUTSTANDING	1,676,000	1,676,000

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($6,073)	($13,855)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Contribution of rent expense by a related party	750	750
Changes in assets and liabilities:	'	'
(Increase) in accounts receivable	'	-160
Decrease in prepaids	'	458
Increase in accounts payable and accrued expenses-Related parties	2,515	2,269
(Decrease)/increase in accounts payable and accrued expenses	-16,212	12,238
Net cash provided/(used) by operating activities	-19,020	1,700
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Increase in notes payable	25,000	'
Net cash provided by financing activities	25,000	'
Net increase in cash	5,980	1,700
CASH AT BEGINNING PERIOD	3,139	1,759
CASH AT END OF PERIOD	9,119	3,459
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
Cash paid for income taxes	'	'
Cash paid for interest expense	'	'

Note_A_Presentation

Note A - Presentation	3 Months Ended
	Mar. 31, 2014
Notes	'
Note A - Presentation	'
	NOTE A - PRESENTATION
	The balance sheets of the Company as of March 31, 2014 and December 31, 2013, the related statements of operations for the three months ended March 31, 2014 and 2013 and the statements of cash flows for the three months ended March 31, 2014 and 2013, (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 March 31, 2014 and 2013 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, 2013.

Note_B_Revenue_Recognition

Note B - Revenue Recognition	3 Months Ended
	Mar. 31, 2014
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	3 Months Ended
	Mar. 31, 2014
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 2013 and 2012.  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	3 Months Ended
	Mar. 31, 2014
Notes	'
Note D - Notes Payable	'
	NOTE D – NOTES PAYABLE
	The Company’s notes payable, all due currently, consists of the following:
		31-Mar-14
	Notes payable, due to an individual, 10% interest, principal and interest due July 1, 2014	$27,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	5,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	5,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	5,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	5,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	25,000
		72,000
	Less current portion	-72,000
		-

Note_E_Notes_PayableRelated_Pa

Note E - Notes Payable-Related Parties	3 Months Ended
	Mar. 31, 2014
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:
		March 31,
		2014
	Note payable, due to an individual, 10% interest, principle and interest due July 1, 2014	$50,000
	Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014(1)(2)	32,000
	Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014(1)	20,000
		102,000
	Less current portion	(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_F_Recently_Enacted_Accoun

Note F - Recently Enacted Accounting Pronouncements	3 Months Ended
	Mar. 31, 2014
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	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014.

Note_H_Related_Party_Transacti

Note H - Related Party Transactions	3 Months Ended
	Mar. 31, 2014
Notes	'
Note H - Related Party Transactions	'
	NOTE H – RELATED PARTY TRANSACTIONS
	The Company recognized $750 of expense in the three months ended March 31, 2014, which represented the value of the rent associated with the sole officer’s home office.  This amount recognized in the first quarter in the amount of $750 was contributed to additional paid-in capital for the quarter ended March 31, 2014.

Note_I_Subsequent_Event

Note I - Subsequent Event	3 Months Ended
	Mar. 31, 2014
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 Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Notes Payable	'
		31-Mar-14
	Notes payable, due to an individual, 10% interest, principal and interest due July 1, 2014	$27,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	5,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	5,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	5,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	5,000
	Note payable, due to an individual, 10% interest, principal and interest due July 1, 2014	25,000
		72,000
	Less current portion	-72,000
		-

Note_E_Notes_PayableRelated_Pa1

Note E - Notes Payable-Related Parties: Schedule of Related Party Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Related Party Notes Payable	'
	The Company’s related party notes payable, all due currently, consists of the following:
		March 31,
		2014
	Note payable, due to an individual, 10% interest, principle and interest due July 1, 2014	$50,000
	Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014(1)(2)	32,000
	Notes payable, due to an individual, 10% interest, principle and interest due July 1, 2014(1)	20,000
		102,000
	Less current portion	(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_D_Notes_Payable_Schedule_1

Note D - Notes Payable: Schedule of Notes Payable (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014
			Note Payable 1	Note Payable 2	Note Payable 3	Note Payable 4	Note Payable 5	Note Payable 6
Notes payable	$72,000	$47,000	$27,000	$5,000	$5,000	$5,000	$5,000	$25,000
Note payable, Noncurrent	$0	'	'	'	'	'	'	'
Debt Instrument, Interest Rate, Stated Percentage	'	'	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%
Debt Instrument, Maturity Date	'	'	1-Jul-14	1-Jul-14	1-Jul-14	1-Jul-14	1-Jul-14	1-Jul-14

Note_E_Notes_PayableRelated_Pa2

Note E - Notes Payable-Related Parties: Schedule of Related Party Notes Payable (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014
			Related Party Note Payable 1	Related Party Note Payable 2	Related Party Note Payable 3
Notes payable-Related parties	$102,000	$102,000	$50,000	$32,000	$20,000
Notes Payable, Related Parties, Noncurrent	0	'	'	'	'
Debt Instrument, Face Amount	'	'	$25,000	$25,000	'
Debt Instrument, Interest Rate, Stated Percentage	'	'	10.00%	10.00%	10.00%
Debt Instrument, Maturity Date	'	'	1-Jul-14	1-Jul-14	1-Jul-14

Note_H_Related_Party_Transacti1

Note H - Related Party Transactions (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Contribution of rent expense by a related party	$750	$750
Officer	'	'
Contribution of rent expense by a related party	750	'
Contribution to additional paid in capital for rent payment	$750	'