Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 24, 2017 | Jun. 30, 2016 | |
Document and Entity Information: | |||
Entity Registrant Name | CPSM, Inc. | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Trading Symbol | swmm | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,425,203 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 82,928,960 | ||
Entity Public Float | $ 608,947 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CPSM, Inc. and Subsidiaries Con
CPSM, Inc. and Subsidiaries Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash | $ 430,064 | $ 427,978 |
Accounts Receivable, net of allowance for doubtful accounts of $16,181 and $23,144 | 129,515 | 157,517 |
Due from Related Party | 2,864 | 0 |
Inventory | 93,975 | 47,054 |
Prepaids | 3,564 | 0 |
Deposits | 2,348 | 2,348 |
Total current assets | 662,330 | 634,897 |
Property and equipment , net | 962,946 | 955,983 |
Deposit - Business Acquisition | 0 | 194,190 |
Deferred Tax Asset | 0 | 23,373 |
Intangible Assets, net | 158,736 | 38,054 |
Total assets | 1,784,012 | 1,846,497 |
Current liabilities | ||
Accounts Payable and Accrued Liabilities | 135,226 | 127,264 |
Stockholder Advance Payable | 54,981 | 187,307 |
Bank Line of Credit | 25,892 | 20,426 |
Notes Payable - Current | 69,491 | 32,918 |
SBA Loan - Current | 0 | 59,262 |
Customer Deposits | 75,008 | 94,428 |
Total current liabilities | 360,598 | 521,605 |
Long Term Liabilities | ||
Notes Payable - Long Term | 622,191 | 531,728 |
Deferred Tax Liability | 14,020 | 0 |
SBA Loan - Long Term | 0 | 133,028 |
Promissory Note - Stockholder | 89,378 | 210,000 |
Total Liabilities | 1,086,187 | 1,396,361 |
Stockholders' Equity | ||
Series A Convertible Preferred Stock, $0.0001 par value, 50,000,000 shares authorized, 1,562,500 and 0 shares issued and outstanding at December 31, 2016 and 2015 | 156 | 0 |
Common Stock, $0.001 par value, 250,000,000 shares authorized, 82,938,960 and 83,355,960 respectively, issued and outstanding at December 31, 2016 and 2015 | 82,939 | 83,356 |
Additional paid-in capital | ||
Preferred Stock | 124,844 | 0 |
Common Stock | 218,331 | 218,423 |
Retained Earnings | 271,555 | 148,357 |
Total Stockholders' Equity | 697,825 | 450,136 |
Total Liabilities and Stockholders' Equity | $ 1,784,012 | $ 1,846,497 |
CPSM, Inc. and Subsidiaries - C
CPSM, Inc. and Subsidiaries - Consolidated Balance Sheets (Parentheticals)(USD $) - $/shares - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 1,562,500 | 0 |
Preferred stock, shares outstanding | 1,562,500 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 82,938,960 | 83,355,960 |
Common stock, shares outstanding | 82,938,960 | 83,355,960 |
CPSM, Inc. and Subsidiaries - 4
CPSM, Inc. and Subsidiaries - Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement | ||
Revenue | $ 5,218,876 | $ 4,214,558 |
Costs and expenses: | ||
Purchases | 1,657,899 | 1,450,643 |
Service Costs | 2,394,928 | 1,643,721 |
Sales and Marketing | 64,199 | 49,712 |
General and Administrative | 837,578 | 737,982 |
Depreciation and Amortization | 101,820 | 75,580 |
Total Costs and Expenses | 5,056,424 | 3,957,638 |
Income from Operations | 162,452 | 256,920 |
Other (Income) Expense | ||
Interest Expense | 40,161 | 29,110 |
Other Income | (16,516) | (962) |
Gain on Sale of Building | (60,292) | 0 |
Total Other (Income) Expense | (36,647) | 28,148 |
Income Before Income Tax | 199,099 | 228,772 |
Income Tax | ||
Current | 28,508 | 72,760 |
Deferred | 37,393 | 18,458 |
Total Income Tax | 65,901 | 91,218 |
Net Income | 133,198 | 137,554 |
Less: Preferred Stock Dividends | 10,000 | 0 |
Net Income Available to Common Stockholders | $ 123,198 | $ 137,554 |
Net Earnings per Common Share - Basic | $ 0 | $ 0 |
Net Earnings per Common Share - Diluted | $ 0 | $ 0 |
Weighted Average Number of Common Shares Outstanding - Basic | 83,042,924 | 81,666,413 |
Weighted Average Number of Common Shares Outstanding - Diluted | 85,597,222 | 81,666,413 |
CPSM, Inc. and Subsidiaries - 5
CPSM, Inc. and Subsidiaries - Consolidated Statements of Stockholders' Equity (Deficit) for the Years Ended December 31, 2016 and 2015 - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid in Capital Preferred | Additional Paid in Capital Common | Retained Earnings | Total Stockholders' Equity |
Balance, Shares at Dec. 31, 2014 | 0 | 81,041,422 | |||||
Balance, Monetary at Dec. 31, 2014 | $ 0 | $ 81,041 | $ 0 | $ 140,945 | $ 10,803 | $ 232,789 | |
Preferred Stock Dividend | $ 0 | ||||||
Stock compensation expense, shares | 0 | 1,897,538 | |||||
Stock compensation expense, monetary | $ 0 | $ 1,898 | 0 | 45,540 | 0 | 47,438 | |
Stock Option Expense | $ 0 | $ 0 | 0 | 3,165 | 0 | 3,165 | |
Deposit - Stock issued for business acquisition, shares | 0 | 417,000 | |||||
Deposit - Stock issued for business acquisition, monetary | $ 0 | $ 417 | 0 | 28,773 | 0 | 29,190 | |
Net Income | $ 0 | $ 0 | 0 | 0 | 137,554 | 137,554 | |
Balance, Shares at Dec. 31, 2015 | 83,355,960 | 0 | 83,355,960 | ||||
Balance, Monetary at Dec. 31, 2015 | $ 0 | $ 83,356 | 0 | 218,423 | 148,357 | 450,136 | |
Issuance of Series A Preferred Stock, Shares | 1,562,500 | 0 | |||||
Issuance of Series A Preferred Stock, Monetary | $ 156 | $ 0 | 124,844 | 0 | 0 | 125,000 | |
Settlement of Shares Issued in Acquisition, Shares | 0 | (417,000) | |||||
Settlement of Shares Issued in Acquisition, Monetary | $ 0 | $ (417) | 0 | (24,583) | 0 | (25,000) | |
Preferred Stock Dividend | $ (10,000) | 0 | 0 | 0 | 0 | (10,000) | (10,000) |
Stock Option Expense | 0 | 0 | 0 | 24,491 | 0 | 24,491 | |
Net Income | $ 0 | $ 0 | 0 | 0 | 133,198 | 133,198 | |
Balance, Shares at Dec. 31, 2016 | 82,938,960 | 1,562,500 | 82,938,960 | ||||
Balance, Monetary at Dec. 31, 2016 | $ 156 | $ 82,939 | $ 124,844 | $ 218,331 | $ 271,555 | $ 697,825 |
CPSM, Inc. and Subsidiaries - 6
CPSM, Inc. and Subsidiaries - Consolidated Statements of Cash Flow - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||
Net Income | $ 133,198 | $ 137,554 |
Adjustments to Reconcile Net Income to Net Cash provided by Operating Activities: | ||
Depreciation and Amortization | 101,820 | 75,580 |
Deferred Income Tax Expense | 37,393 | 18,458 |
Non-cash Stock Option Compensation | 24,491 | 3,165 |
Non-cash Stock Compensation Expense | 0 | 47,438 |
Gain on Sale of Building and Motor Vehicles | (60,292) | 0 |
Increase (Decrease) in Cash from change in: | ||
Accounts Receivable | 28,002 | (73,810) |
Due from Related Party | (2,864) | 8,139 |
Inventory | (46,921) | 15,471 |
Prepaids | (3,564) | 0 |
Deposits | 0 | 652 |
Accounts Payable and Accrued Expenses | 7,962 | 5,595 |
Customer Deposits | (19,420) | 16,595 |
Net Cash Provided By Operating Activities | 199,805 | 254,837 |
Cash flows from investing activities | ||
Purchase of Property and Equipment | (90,689) | (209,852) |
Purchase of Intangible Property | 0 | (18,719) |
Net Proceeds from Sale of Building | 277,116 | 0 |
Deposit for Business Acquisition | 0 | (165,000) |
Additional Deposit for Acquisition | (17,810) | 0 |
Sale of Purchased Assets | 17,500 | 0 |
Purchase Price Refund | 15,000 | 0 |
Net cash provided by (used in) investing activities | 201,117 | (393,571) |
Cash flows from financing activities | ||
Preferred Stock Dividend | (10,000) | 0 |
Issuance of Preferred Stock | 125,000 | 0 |
Proceeds from (Payment on) Bank Line of Credit | 5,466 | (10,710) |
Payment on Notes Payable | (74,064) | (19,329) |
(Repayment on) Proceeds from Stockholder Advance Payable | (132,326) | 101,157 |
Payment on SBA Loan | (192,290) | (62,326) |
Payment on Promissory Note - Stockholder | (120,622) | 0 |
Net cash provided by (used in) financing activities | (398,836) | 8,792 |
Net Increase (Decrease) in Cash | 2,086 | (129,942) |
Cash at the Beginning of the Year | 427,978 | 557,920 |
Cash at the End of the Year | 430,064 | 427,978 |
Cash Paid During the Year for: | ||
Interest | 40,161 | 29,110 |
Taxes | 49,000 | 35,324 |
Supplemental Disclosures of Non-Cash Information: | ||
Property and Equipment Acquired through Issuance of Notes Payable | 201,100 | 496,786 |
Intangible Asset Acquired in Exchange for Deposit - Business Acquisition | 154,500 | 0 |
Reduction in Deposit - Business Acquisition and Common Stock as a Result of Settlement of Shares Issued in Acquisition | 25,000 | 0 |
Deposit - Business Acquisition due to Common Stock Issuance | $ 0 | $ 29,190 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 1 - Nature of Operations | NOTE 1 NATURE OF OPERATIONS CPSM, Inc. (CPSM) and its wholly-owned subsidiaries, Custom Pool and Spa Mechanics, Inc. (Custom Pool), and Custom Pool Plastering, Inc. (CPP) collectively (the Company) are primarily engaged in the provision of full line pool and spa services, specializing in pool maintenance and service, repairs, leak detection, renovations, decking and remodeling. The primary market area includes Martin, Palm Beach, St Lucie, Indian River and Brevard counties, Florida. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 2 - Summary of Significant Accounting Policies | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles general accepted in the United States of America (GAAP). Cash All highly liquid investments with original maturities of three months or less or money market accounts held at financial institutions are considered to be cash. Substantially all of the cash is placed with one financial institution. From time to time during the year the cash accounts are exposed to credit loss for amounts in excess of insured limits of $250,000 in the event of non-performance by the institution, however, it is not anticipated that there will be non-performance. Allowance for uncollectible receivables Management evaluates credit quality by evaluating the exposure to individual counterparties, and, where warranted, management also considers the credit rating or financial position, operating results and/or payment history of the counterparty. Management establishes an allowance for amounts for which collection is considered doubtful. Adjustments to previous assessments are recognized in income in the period in which they are determined. At December 31, 2016 and 2015, the allowance for uncollected receivables was $16,181 and $23,114 , respectively. Inventory Inventory consists principally of pool chemicals and resurfacing materials. Inventory has a short turnover cycle. It is valued at the lower of cost or market using the First-in, First-out method. Property and Equipment Land is stated at cost. Property and equipment are carried at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Land and building represent the newly acquired building in Stuart, Florida, which is the primary office of the Company. The equipment is largely comprised of computers and motor vehicles used in the pool service business. Intangible Assets Intangible assets consist primarily of customer lists and other purchased assets with a definite life, and these are amortized using the straight-line method over those estimated useful lives. Amortization expense for the next five years and thereafter is as follows: Intangible Asset 2017 2018 2019 2020 2021 Thereafter Client List Prior Acquisitions $ 3,328 $ - $ - $ - $ - $ - Capitalized Costs 1,185 1,185 1,185 1,185 1,185 13,037 Client List - Sundook 8,583 8,583 8,583 8,583 8,583 93,531 Total $13,096 $9,768 $9,768 $9,768 $9,768 $106,568 Customer Deposits The Company collects initial deposits from customers for pool resurfacing and remediation work and recognizes the revenue when the work is completed. Revenue Recognition Revenue is recognized when the pool service is completed and the collectability is reasonably assured. For pool resurfacing and remediation work, revenue is recognized at the time of completion of the job. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition provisions of GAAP which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with GAAP, the fair value of stock-based awards is generally recognized as compensation expense over the requisite service period, which is defined as the period during which an employee is required to provide service in exchange for an award. The Company uses a straight-line attribution method for all grants that include only a service condition. Compensation expense related to all awards is included in income. Income Taxes The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of asset and liabilities. Deferred tax assets and liabilities are determined based on the differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect on deferred tax asset and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for uncertainties in income tax law under a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns as prescribed by GAAP. Under GAAP, the tax effects of a position are recognized only if it is more-likely-than-not to be sustained by the taxing authority as of the reporting date. If the tax position is not considered more-likely-than-not to be sustained, then no benefits of the position are recognized. Management believes there are no unrecognized tax benefits or uncertain tax positions as of December 31, 2016, and 2015. The Company recognizes interest and penalties on income taxes as a component of income tax expense, should such an expense be realized. Basic and Diluted Net Earnings per Share The Company computes earnings per share in accordance with ASC-260, Earnings per Share which requires presentation of both basic and diluted earnings per share on the face of the consolidated statements of income. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the year, computed using the treasury stock method for outstanding stock options and the if converted method for preferred stock. Dilutive earnings per share excludes all potential common shares if their effect is anti-dilutive. For the years ended December 31, 2016 and 2015, the basic and diluted earnings per share was computed as follows: For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Net Income Available to Common Stockholders $ 123,198 $ 137,554 Preferred Stock Dividends 10,000 - Income Available to Common Stockholders and Assumed Conversions $ 133,198 $ 137,554 Weighted Average Shares - Basic 83,042,924 81,666,413 Effective Dilutive Securities Stock Options 991,798 - Shares Issuable Upon Conversion of Preferred Stock 1,562,500 - Weighted Average Shares - Diluted 85,597,222 81,666,413 Net Earnings Per Common Share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 Fair Value Measurement Generally accepted accounting principles establishes a hierarchy to prioritize the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest ranking to the fair values determined by using unadjusted quoted prices in active markets for identical assets (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). Observable inputs are those that market participants would use in pricing the assets based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Companys assumptions about inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The Company has determined the appropriate level of the hierarchy and applied it to its financial assets and liabilities. At December 31, 2016 and 2015 there were no assets or liabilities carried or measured at fair value. Use of Estimates and Assumptions The preparation of consolidated financial statements 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. |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 3 - Recent Accounting Pronouncements | NOTE 3 RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board, (FASB) issued Accounting Standards Update (ASU) No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. ASU 2014-09 also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, and early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The impact the adoption of ASU 2014-09 on the Companys consolidated financial statement presentation and disclosures is not considered material. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The ASU requires equity investments to be measured at fair value with changes in fair values recognized in net earnings, simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment and eliminates the requirement to disclose fair values, the methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost. The ASU also clarifies that the Company should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale debt securities in combination with the Company's other deferred tax assets. These amendments are effective for the Company beginning January 1, 2018. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) which will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with term of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. The new ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. The Company is in the process of determining the effect of the ASU on its consolidated balance sheets and consolidated statements of income. Early application will be permitted for all organizations. In March 2016, the FASB issued ASU 2016-09, CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change existing guidance related to accounting for employee share-based payments affecting the income tax consequences of awards, classification of awards as equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the potential impact of the adoption of this standard. |
Note 4 - Concentrations of Cred
Note 4 - Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 4 - Concentrations of Credit Risk | NOTE 4 CONCENTRATIONS OF CREDIT RISK Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company maintains its cash with high-credit quality financial institutions. At December 31, 2016 and 2015, the Company had cash balances in excess of federally insured limits in the amount of approximately $180,064 and $177,978 , respectively. Accounts receivable are financial instruments that potentially expose the Company to concentration of credit risk. However, accounts receivable of $129,515 and $157,517 at December 31, 2016 and 2015, respectively are comprised of many pool service customer accounts, none of which are individually significant in size. The Company historically has collected substantially all of its receivables. |
Note 5 - Fair Value Estimates
Note 5 - Fair Value Estimates | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 5 - Fair Value Estimates | NOTE 5 FAIR VALUE ESTIMATES The Company measures financial instruments at fair value in accordance with ASC 820, which specifies a valuation hierarchy based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Companys own assumptions. Management believes the carrying amounts of the Company's cash, accounts receivable, accounts payable as of December 31, 2016, and 2015 approximate their respective fair values because of the short-term nature of these instruments. The Company measures its line of credit, notes payable and loans in accordance with the hierarchy of fair value based on whether the inputs to those valuation techniques are observable or unobservable. The hierarchy is: Level 1 Quoted prices for identical instruments in active markets; Level 2 Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments 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 estimated fair value of the cash, line of credit, notes payable, promissory notes stockholder and stockholder advances payable at December 31, 2016 and 2015, were as follows: Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Value At December 31, 2016: Assets Cash $430,064 $ - $ - $430,064 Liabilities Bank Line of Credit - $ 25,892 - $ 25,892 Notes Payable - $ 691,682 - $691,682 Promissory Note Stockholder - - $ 75,798 $ 89,378 Stockholder Advance Payable - - $ 54,981 $ 54,981 At December 31, 2015: Assets Cash $427,978 - - $427,978 Liabilities Bank Line of Credit - $ 20,426 - $ 20,426 Notes Payable - $ 562,970 - $564,646 SBA Loan - $ 192,290 - $192,290 Promissory Note - Stockholder - - $ 175,434 $210,000 Stockholder Advance Payable - - $ 187,307 $187,307 |
Note 7 - Acquisition of Sundook
Note 7 - Acquisition of Sundook Pool Services, Llc | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 7 - Acquisition of Sundook Pool Services, Llc | NOTE 7 ACQUISITION OF SUNDOOK POOL SERVICES, LLC On December 30, 2015, the Company made a deposit of $(165,000) to acquire a pool servicing company, Sundook Advanced Pool Services LLC (Sundook), in Stuart, FL. Additionally, the Company issued 417,000 shares of restricted stock, valued at $25,000. The transaction closed on January 5, 2016. The primary asset acquired consisted of customer list intangible assets valued at $154,500 as well as a retail store valued at $17,500. The fair value of the intangible assets acquired was determined using Level 3 inputs. An additional $25,000 was escrowed pending an audit of customer account retentions after thirty days. The acquisition expands the Companys business presence in its primary market of Martin, St Lucie and Indian River counties, Florida. Sundooks pool service routes are synergistic with the Companys pool service routes and provide for more efficiency and better operating margins. On March 18, 2016, the Company negotiated the final settlement for the acquisition of Sundook. Due to Sundook underperforming certain terms and warranties under the asset purchase agreement, the Company paid $10,000 of the escrowed funds, and Sundook surrendered the 417,000 shares of the Companys stock. Separately, also on March 18, 2016, the Company sold the retail store acquired in the Sundook transaction for $17,500. The acquisition is not significant as defined by ASC 805, Business Combinations, and therefore no pro forma financial information is presented. |
Note 8 - Sale of Palm City, Fl.
Note 8 - Sale of Palm City, Fl. Building | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 8 - Sale of Palm City, Fl. Building | NOTE 8 SALE OF PALM CITY, FL. BUILDING In May 2016, the Company moved into its new office headquarter building in Stuart, FL. and made available for sale or lease, its old office building in Palm City, FL. The sale of the building was completed on September 12, 2016 for $300,000 less settlement costs of $22,884, resulting in a gain of $60,292. The remaining proceeds were used to pay off the SBA Loan and to pay down the Promissory Note Stockholders (See Note 12 Long Term Loans). |
Note 9 - Stockholder Advance Pa
Note 9 - Stockholder Advance Payable | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 9 - Stockholder Advance Payable | NOTE 9 STOCKHOLDER ADVANCE PAYABLE At December 31, 2016 and 2015, the Company had an advance payable of $54,981 and $187,307 respectively, from the Calarco Trust, beneficially owned by Lawrence Calarco, an officer and director of the Company and Loreen Calarco an officer and director of the Company. The advance payable was used for expenditures on behalf of Custom Pool. The terms of the advance payable are non-interest bearing and it is due on demand. |
Note 10 - Bank Line of Credit
Note 10 - Bank Line of Credit | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 10 - Bank Line of Credit | NOTE 10 BANK LINE OF CREDIT The Company maintains a $50,000 revolving line of credit with a regional bank. The line of credit has a ten-year maturity, but is due upon demand by the bank. The interest rate is currently 5.75%, and it is a floating rate, 2.0% over the Wall Street Journal Prime Rate Index. The outstanding balance as of December 31, 2016, and 2015, respectively is $25,892 and $20,426 . The Company is currently in compliance with the terms of the line of credit. |
Note 11 - Notes Payable
Note 11 - Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 11 - Notes Payable | NOTE 11 NOTES PAYABLE At December 31, 2016 and 2015, the Company has $691,682 and $564,646 respectively, in notes payable secured against the newly acquired building in 2015 and motor vehicles used in the pool services and pool plastering business. The outstanding balance of $45,014 for the loan against the pool plastering pump truck is the largest of the motor vehicle loans. The interest rates range from 2.99% to 5.75% and the maturities range from three to six years. The Company is currently in compliance with the terms of the loans. The note for the acquisition of the new building in Stuart, FL has an outstanding balance of $384,034 at December 31, 2016. The note carries an interest rate of 3.99% and matures in October 2025. The Company is current with all payments and terms of the note. |
Note 12 - Long Term Loans
Note 12 - Long Term Loans | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 12 - Long Term Loans | NOTE 12 LONG TERM LOANS Until September 12, 2016 and for the year ended December 31, 2015, the Company had a long term loan from Wells Fargo Bank which was guaranteed in case of default by the Company, by the Small Business Administration. The terms of the loan have a floating interest rate of 2.00% over the Wall Street Journal Prime Rate Index. The loan was secured by all of the assets of Custom Pool and by personal guaranties of Lawrence and Loreen Calarco. The outstanding balance of the loan at December 31, 2015 was $192,290 respectively. The Company paid off the loan on September 12, 2016 with the part of the proceeds from the sale of the prior headquarters office building in Palm City, Fl. (See Note 8 Sale of Palm City, Fl. Building). At December 31, 2016 and 2015, the Company has a Promissory Note from a stockholder for $89,378 and $210,000 , respectively, which was incurred with the acquisition of the common stock of CPSM, Inc. The term of the Promissory Note is 5 years and the note has an interest rate set at the 5 Year Treasury Note rate, currently set at 1.34% and which resets annually on June 3. The principal is due on the final maturity of June 3, 2019. The Company has accrued interest expense of $8,145 and $5,496 as of December 31, 2016 and 2015, respectively. The Company repaid a portion of the principal of the Note with part of the proceeds from the sale of the prior headquarters office building in Palm City, Fl. (See Note 9, Sale of the Palm City, Fl. Building). The Company is in compliance with the provisions of this Note. The long term debt repayments are as follows: 2017 2018 2019 2020 2021 Thereafter Total Notes Payable: $69,491 $81,180 $74,392 $57,457 $42,314 $366,848 $691,682 Promissory Note - Stockholder - - 89,378 - - - 89,378 Total Repayments $69,491 $81,180 $163,770 $57,457 $42,314 $366,848 $781,060 |
Note 13 - Income Tax
Note 13 - Income Tax | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 13 - Income Tax | NOTE 13 INCOME TAX As of December 31, 2016, the U.S. Federal and Florida income tax returns filed prior to 2013 are no longer subject to examination by the respective taxing authorities. The differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows for the years ended December 31, 2016 and 2015: Income Taxes at Statutory Rate $67,694 34.00% $77,782 34.00% Increase (Decrease) in Taxes Resulting From: State Taxes, net of Federal Tax Benefit 5,559 2.8 8,320 3.6 Graduated Tax Rates (8,430) (4.2) (5,522) (2.4) 1,078 0.5 10,638 4.7 Income Taxes $65,901 33.1% $91,218 39.9% Deferred income taxes primarily relate to differences between the amounts recorded for financial reporting purposes and the amounts recorded for income tax purposes. Significant components of the Companys deferred tax assets and liabilities are as follows as of December 31, 2016, and 2015: Deferred Income Tax Assets (Liabilities): December 31, 2016 December 31, 2015 Organizational Costs $66,847 $72,116 Stock Based Compensation 10,407 1,191 Allowance for Bad Debt 6,089 - Depreciation (90,792) (36,792) Accrual to Cash Conversion (6,571) (13,142) Deferred Income Tax Assets $(14,020) $23,373 |
Note 14 - Preferred Stock
Note 14 - Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 14 - Preferred Stock | NOTE 14 PREFERRED STOCK In December 2015, the Company authorized 50,000,000 shares of Series A Preferred Stock, with a $0.0001 par value. The Series A Preferred has an 8% dividend paid quarterly, and is convertible into common stock at $0.08 per common share. The Series A Preferred is senior to the common stock as to dividends, and any liquidation, dissolution or winding up of the Company. The Series A Preferred also has certain voting and registration rights. In January 2016, the Company issued 1,562,500 shares of the Series A Preferred Stock to Lawrence and Loreen Calarco, officers and directors of the Company for $125,000 in consideration. At the time of the issuance of the Series A Preferred, the closing stock price of the Companys common stock was $0.07 per share and so there is not a beneficial conversion feature. The Series A Preferred is callable after six months at the option of the Company at the issue price. The Company has accrued $10,000 in dividends on the Series A Preferred at December 31, 2016. |
Note 15 - 2014 Stock Awards Pla
Note 15 - 2014 Stock Awards Plan | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 15 - 2014 Stock Awards Plan | NOTE 15 2014 STOCK AWARDS PLAN In November 2014, the board of directors of the Company approved the adoptions of a Stock Awards Plan. The purpose is to provide a means through which the Company may attract, retain and motivate employees, directors and persons affiliated with the Company, including, but not limited to, non-employee consultants, and to provide a means whereby such persons can acquire and maintain stock ownership, thereby strengthening their concern for the welfare of the Company. A further purpose of the Plan is to provide such participants with additional incentive and reward opportunities designed to enhance the profitable growth and increase stockholder value of the Company. A total of 7,000,000 shares was authorized to be issued under the plan. For incentive stock options, at the grant date the stock options exercise price is required to be at least 110% of the fair value of the Companys common stock. The Plan permits the grants of common stock or options to purchase common stock. As plan administrator, the Board of Directors has sole discretion to set the price of the options. Further, the Board of Directors may amend or terminate the plan. On May 27, 2015, the Board of Directors granted two individuals 500,000 options each. Additionally, on August 23, 2016, the Board of Directors granted four individuals 2,250,000 options in aggregate. The May 27, 2015 stock option grants have a five-year maturity, vesting ratably over that period. The August 23, 2016 stock option grants had 50% of the options vesting immediately, with the balance vesting ratably over three years. There are 3,750,000 shares available for issuance at December 31, 2016. The August 23, 2016 and May 27, 2015 stock options were granted with the fair value estimated on the date of grant using the assumptions in the table below and the Black Scholes options pricing model: August 23, 2016 May 27, 2015 Dividend Yield - - Expected Volatility 64.88% 113.19% Risk Free Interest Rate 0.90% 1.57% Expected Life 3 Years 5 Years Per Share Grant Date Fair Value of Options Issued $0.0163 $0.0265 The assumptions were based on the following: the Companys stock does not pay a dividend, expected volatility is a function of the historical daily changes in price of the Companys stock, the risk free interest rate is the constant maturity of the 3 Year and 5 Year Treasury Note, respectively and the expected life is the maturity of the stock options since no options have been exercised or forfeited to date. A summary of the stock option activity over the years ended December 31, 2016 and 2015 is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at Dec. 31, 2014 Granted 1,000,000 $ 0.035 5 years - Outstanding at Dec. 31, 2015 1,000,000 $ 0.035 3.4 Years - Granted 2,250,000 $0.0375 1.1 Years - Outstanding at Dec. 31, 2016 3,250,000 $0.0367 1.8 Years $54,429 Exercisable at Dec. 31, 2016 1,578,014 $ 0.037 1.8 Years $25,041 The Company expensed $24,491 and $3,165 of stock option compensation for the years ended December 31, 2016 and 2015 respectively. Unrecognized compensation expense was $35,519 and $23,335 at December 31, 2016 and 2015. |
Note 16 - Commitments and Conti
Note 16 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 16 - Commitments and Contingencies | NOTE 16 COMMITMENTS AND CONTINGENCIES The Company does not have any significant or long term commitments. The Company is not currently subject to any litigation. |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 17 - Subsequent Events | NOTE 17 - SUBSEQUENT EVENTS The Company has evaluated subsequent events from the consolidated balance sheet date through March 21, 2017 (the financial statement issuance date) determining that no events required additional disclosure in these consolidated financial statements. |
Note 2 - Summary of Significa23
Note 2 - Summary of Significant Accounting Policies: Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Note 2 - Summary of Significa24
Note 2 - Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles general accepted in the United States of America (GAAP). |
Note 2 - Summary of Significa25
Note 2 - Summary of Significant Accounting Policies: Cash (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Cash | Cash All highly liquid investments with original maturities of three months or less or money market accounts held at financial institutions are considered to be cash. Substantially all of the cash is placed with one financial institution. From time to time during the year the cash accounts are exposed to credit loss for amounts in excess of insured limits of $250,000 in the event of non-performance by the institution, however, it is not anticipated that there will be non-performance. |
Note 2 - Summary of Significa26
Note 2 - Summary of Significant Accounting Policies: Allowance For Uncollectible Receivables (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Allowance For Uncollectible Receivables | Allowance for uncollectible receivables Management evaluates credit quality by evaluating the exposure to individual counterparties, and, where warranted, management also considers the credit rating or financial position, operating results and/or payment history of the counterparty. Management establishes an allowance for amounts for which collection is considered doubtful. Adjustments to previous assessments are recognized in income in the period in which they are determined. At December 31, 2016 and 2015, the allowance for uncollected receivables was $16,181 and $23,114 , respectively. |
Note 2 - Summary of Significa27
Note 2 - Summary of Significant Accounting Policies: Inventory (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Inventory | Inventory Inventory consists principally of pool chemicals and resurfacing materials. Inventory has a short turnover cycle. It is valued at the lower of cost or market using the First-in, First-out method. |
Note 2 - Summary of Significa28
Note 2 - Summary of Significant Accounting Policies: Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Property and Equipment | Property and Equipment Land is stated at cost. Property and equipment are carried at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Land and building represent the newly acquired building in Stuart, Florida, which is the primary office of the Company. The equipment is largely comprised of computers and motor vehicles used in the pool service business. |
Note 2 - Summary of Significa29
Note 2 - Summary of Significant Accounting Policies: Intangible Assets (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Intangible Assets | Intangible Assets Intangible assets consist primarily of customer lists and other purchased assets with a definite life, and these are amortized using the straight-line method over those estimated useful lives. Amortization expense for the next five years and thereafter is as follows: Intangible Asset 2017 2018 2019 2020 2021 Thereafter Client List Prior Acquisitions $ 3,328 $ - $ - $ - $ - $ - Capitalized Costs 1,185 1,185 1,185 1,185 1,185 13,037 Client List - Sundook 8,583 8,583 8,583 8,583 8,583 93,531 Total $13,096 $9,768 $9,768 $9,768 $9,768 $106,568 |
Note 2 - Summary of Significa30
Note 2 - Summary of Significant Accounting Policies: Customer Deposits (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Customer Deposits | Customer Deposits The Company collects initial deposits from customers for pool resurfacing and remediation work and recognizes the revenue when the work is completed. |
Note 2 - Summary of Significa31
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Revenue Recognition | Revenue Recognition Revenue is recognized when the pool service is completed and the collectability is reasonably assured. For pool resurfacing and remediation work, revenue is recognized at the time of completion of the job. |
Note 2 - Summary of Significa32
Note 2 - Summary of Significant Accounting Policies: Stock-based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Stock-based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition provisions of GAAP which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with GAAP, the fair value of stock-based awards is generally recognized as compensation expense over the requisite service period, which is defined as the period during which an employee is required to provide service in exchange for an award. The Company uses a straight-line attribution method for all grants that include only a service condition. Compensation expense related to all awards is included in income. |
Note 2 - Summary of Significa33
Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Income Taxes | Income Taxes The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of asset and liabilities. Deferred tax assets and liabilities are determined based on the differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect on deferred tax asset and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for uncertainties in income tax law under a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns as prescribed by GAAP. Under GAAP, the tax effects of a position are recognized only if it is more-likely-than-not to be sustained by the taxing authority as of the reporting date. If the tax position is not considered more-likely-than-not to be sustained, then no benefits of the position are recognized. Management believes there are no unrecognized tax benefits or uncertain tax positions as of December 31, 2016, and 2015. The Company recognizes interest and penalties on income taxes as a component of income tax expense, should such an expense be realized. |
Note 2 - Summary of Significa34
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Net Earnings Per Share (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Basic and Diluted Net Earnings Per Share | Basic and Diluted Net Earnings per Share The Company computes earnings per share in accordance with ASC-260, Earnings per Share which requires presentation of both basic and diluted earnings per share on the face of the consolidated statements of income. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the year, computed using the treasury stock method for outstanding stock options and the if converted method for preferred stock. Dilutive earnings per share excludes all potential common shares if their effect is anti-dilutive. For the years ended December 31, 2016 and 2015, the basic and diluted earnings per share was computed as follows: For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Net Income Available to Common Stockholders $ 123,198 $ 137,554 Preferred Stock Dividends 10,000 - Income Available to Common Stockholders and Assumed Conversions $ 133,198 $ 137,554 Weighted Average Shares - Basic 83,042,924 81,666,413 Effective Dilutive Securities Stock Options 991,798 - Shares Issuable Upon Conversion of Preferred Stock 1,562,500 - Weighted Average Shares - Diluted 85,597,222 81,666,413 Net Earnings Per Common Share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 |
Note 2 - Summary of Significa35
Note 2 - Summary of Significant Accounting Policies: Fair Value Measurement (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Fair Value Measurement | Fair Value Measurement Generally accepted accounting principles establishes a hierarchy to prioritize the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest ranking to the fair values determined by using unadjusted quoted prices in active markets for identical assets (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). Observable inputs are those that market participants would use in pricing the assets based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Companys assumptions about inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The Company has determined the appropriate level of the hierarchy and applied it to its financial assets and liabilities. At December 31, 2016 and 2015 there were no assets or liabilities carried or measured at fair value. |
Note 2 - Summary of Significa36
Note 2 - Summary of Significant Accounting Policies: Use of Estimates and Assumptions (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Policies | |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of consolidated financial statements 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. |
Note 2 - Summary of Significa37
Note 2 - Summary of Significant Accounting Policies: Intangible Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Intangible Asset 2017 2018 2019 2020 2021 Thereafter Client List Prior Acquisitions $ 3,328 $ - $ - $ - $ - $ - Capitalized Costs 1,185 1,185 1,185 1,185 1,185 13,037 Client List - Sundook 8,583 8,583 8,583 8,583 8,583 93,531 Total $13,096 $9,768 $9,768 $9,768 $9,768 $106,568 |
Note 2 - Summary of Significa38
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Net Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Net Income Available to Common Stockholders $ 123,198 $ 137,554 Preferred Stock Dividends 10,000 - Income Available to Common Stockholders and Assumed Conversions $ 133,198 $ 137,554 Weighted Average Shares - Basic 83,042,924 81,666,413 Effective Dilutive Securities Stock Options 991,798 - Shares Issuable Upon Conversion of Preferred Stock 1,562,500 - Weighted Average Shares - Diluted 85,597,222 81,666,413 Net Earnings Per Common Share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 |
Note 5 - Fair Value Estimates_
Note 5 - Fair Value Estimates: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Value At December 31, 2016: Assets Cash $430,064 $ - $ - $430,064 Liabilities Bank Line of Credit - $ 25,892 - $ 25,892 Notes Payable - $ 691,682 - $691,682 Promissory Note Stockholder - - $ 75,798 $ 89,378 Stockholder Advance Payable - - $ 54,981 $ 54,981 At December 31, 2015: Assets Cash $427,978 - - $427,978 Liabilities Bank Line of Credit - $ 20,426 - $ 20,426 Notes Payable - $ 562,970 - $564,646 SBA Loan - $ 192,290 - $192,290 Promissory Note - Stockholder - - $ 175,434 $210,000 Stockholder Advance Payable - - $ 187,307 $187,307 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Property and Equipment | Property & Equipment December 31, 2016 December 31, 2015 Land $ 96,000 $ 178,980 Buildings 456,527 565,215 Equipment 18,600 18,079 Furniture and Fixtures - 10,707 Motor Vehicles 626,825 395,012 Total, at Cost $ 1,197,952 $ 1,167,993 Accumulated Depreciation 235,006 212,010 Net Property & Equipment $ 962,946 $ 955,983 |
Note 12 - Long Term Loans_ Sche
Note 12 - Long Term Loans: Schedule of Maturities of Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Maturities of Long-term Debt | 2017 2018 2019 2020 2021 Thereafter Total Notes Payable: $69,491 $81,180 $74,392 $57,457 $42,314 $366,848 $691,682 Promissory Note - Stockholder - - 89,378 - - - 89,378 Total Repayments $69,491 $81,180 $163,770 $57,457 $42,314 $366,848 $781,060 |
Note 13 - Income Tax_ Schedule
Note 13 - Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | Income Taxes at Statutory Rate $67,694 34.00% $77,782 34.00% Increase (Decrease) in Taxes Resulting From: State Taxes, net of Federal Tax Benefit 5,559 2.8 8,320 3.6 Graduated Tax Rates (8,430) (4.2) (5,522) (2.4) 1,078 0.5 10,638 4.7 Income Taxes $65,901 33.1% $91,218 39.9% |
Note 13 - Income Tax_ Schedul43
Note 13 - Income Tax: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | Deferred Income Tax Assets (Liabilities): December 31, 2016 December 31, 2015 Organizational Costs $66,847 $72,116 Stock Based Compensation 10,407 1,191 Allowance for Bad Debt 6,089 - Depreciation (90,792) (36,792) Accrual to Cash Conversion (6,571) (13,142) Deferred Income Tax Assets $(14,020) $23,373 |
Note 15 - 2014 Stock Awards P44
Note 15 - 2014 Stock Awards Plan: Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | August 23, 2016 May 27, 2015 Dividend Yield - - Expected Volatility 64.88% 113.19% Risk Free Interest Rate 0.90% 1.57% Expected Life 3 Years 5 Years Per Share Grant Date Fair Value of Options Issued $0.0163 $0.0265 |
Note 15 - 2014 Stock Awards P45
Note 15 - 2014 Stock Awards Plan: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Stock Options, Activity | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at Dec. 31, 2014 Granted 1,000,000 $ 0.035 5 years - Outstanding at Dec. 31, 2015 1,000,000 $ 0.035 3.4 Years - Granted 2,250,000 $0.0375 1.1 Years - Outstanding at Dec. 31, 2016 3,250,000 $0.0367 1.8 Years $54,429 Exercisable at Dec. 31, 2016 1,578,014 $ 0.037 1.8 Years $25,041 |
Note 2 - Summary of Significa46
Note 2 - Summary of Significant Accounting Policies: Allowance For Uncollectible Receivables (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Allowance for Uncollectible Customer's Liability for Acceptances | $ 16,181 | $ 23,114 |
Note 2 - Summary of Significa47
Note 2 - Summary of Significant Accounting Policies: Intangible Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||||||
Client List - Prior Acquisitions | $ 3,328 | |||||
Capitalized Costs | $ 13,037 | $ 1,185 | $ 1,185 | $ 1,185 | $ 1,185 | 1,185 |
Client List - Sundook | 93,531 | 8,583 | 8,583 | 8,583 | 8,583 | 8,583 |
Total Intangible Assets | $ 106,568 | $ 9,768 | $ 9,768 | $ 9,768 | $ 9,768 | $ 13,096 |
Note 2 - Summary of Significa48
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Net Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Net Income Available to Common Stockholders | $ 123,198 | $ 137,554 |
Less: Preferred Stock Dividends | 10,000 | 0 |
Income Available to Common Stockholders and Assumed Conversions | $ 133,198 | $ 137,554 |
Weighted Average Number of Common Shares Outstanding - Basic | 83,042,924 | 81,666,413 |
Effective Dilutive Securities - Stock Options | 991,798 | |
Shares Issuable Upon Conversion of Preferred Stock | 1,562,500 | |
Weighted Average Number of Common Shares Outstanding - Diluted | 85,597,222 | 81,666,413 |
Net Earnings per Common Share - Basic | $ 0 | $ 0 |
Net Earnings per Common Share - Diluted | $ 0 | $ 0 |
Note 4 - Concentrations of Cr49
Note 4 - Concentrations of Credit Risk (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Cash balances in excess of federally insured limits | $ 180,064 | $ 177,978 |
Accounts Receivable, Net | $ 129,515 | $ 157,517 |
Note 5 - Fair Value Estimates50
Note 5 - Fair Value Estimates: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Cash | $ 430,064 | $ 427,978 |
Bank Line of Credit | 25,892 | 20,426 |
Notes Payable | 691,682 | 564,646 |
Promissory Note - Stockholder | 89,378 | 210,000 |
Stockholder Advance Payable | 54,981 | 187,307 |
Bank Loans | 192,290 | |
Fair Value, Inputs, Level 1 | ||
Cash | 430,064 | 427,978 |
Fair Value, Inputs, Level 2 | ||
Bank Line of Credit | 25,892 | 20,426 |
Notes Payable | 691,682 | 562,970 |
Bank Loans | 192,290 | |
Fair Value, Inputs, Level 3 | ||
Promissory Note - Stockholder | 75,798 | 175,434 |
Stockholder Advance Payable | $ 54,981 | $ 187,307 |
Schedule of Property and Equi51
Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Land | $ 96,000 | $ 178,980 |
Buildings and Improvements, Gross | 456,527 | 565,215 |
Property, Plant and Equipment, Gross | 18,600 | 18,079 |
Furniture and Fixtures, Gross | 10,707 | |
Motor Vehicles | 626,825 | 395,012 |
Property, Plant, and Equipment, Owned, Accumulated Depreciation | 235,006 | 212,010 |
Property and equipment , net | $ 962,946 | $ 955,983 |
Items (Details)
Items (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Depreciation | $ 84,410 | $ 62,180 |
Note 7 - Acquisition of Sundo53
Note 7 - Acquisition of Sundook Pool Services, Llc (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Deposit for Business Acquisition | $ 0 | $ (165,000) |
Note 9 - Stockholder Advance 54
Note 9 - Stockholder Advance Payable (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Stockholder Advance Payable | $ 54,981 | $ 187,307 |
Note 10 - Bank Line of Credit (
Note 10 - Bank Line of Credit (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Bank Line of Credit | $ 25,892 | $ 20,426 |
Note 11 - Notes Payable (Detail
Note 11 - Notes Payable (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Notes payable secured against newly acquired building | $ 691,682 | $ 564,646 |
Interest rate on notes payable secured against the newly acquired building | 5.75% | |
Note for the acquisition of the new building in Stuart, FL | $ 384,034 | |
Interest rate on the note for the acquisition of the new building in Stuart, FL | 3.99% |
Note 12 - Long Term Loans (Deta
Note 12 - Long Term Loans (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Calarco related party loan | $ 192,290 | |
Due to Related Parties, Noncurrent | $ 89,378 | 210,000 |
Accrued interest expense | $ 8,145 | $ 5,496 |
Note 13 - Income Tax_ Schedul58
Note 13 - Income Tax: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Organizational Costs | $ 66,847 | $ 72,116 |
Deferred Compensation Share-based Arrangements, Liability, Current | 10,407 | 1,191 |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Bad Debt Reserve for Tax Purposes of Qualified Lender | 6,089 | |
Depreciation | (90,792) | (36,792) |
Accrual to Cash Conversion | (6,571) | (13,142) |
Deferred Tax Assets, Net, Current | $ (14,020) | $ 23,373 |
Note 14 - Preferred Stock (Deta
Note 14 - Preferred Stock (Details) - USD ($) | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 31, 2015 |
Details | |||
Preferred stock, shares issued | 1,562,500 | 1,562,500 | 0 |
value of preferred stock issued | $ 125,000 |
Note 15 - 2014 Stock Awards P60
Note 15 - 2014 Stock Awards Plan: Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) | Aug. 23, 2016 | May 27, 2015 |
Details | ||
Expected Volatility | 64.88% | 113.19% |
Risk Free Interest Rate | 0.90% | 1.57% |
Per Share Grant Date Fair Value of Options Issued | $ 0.0163 | $ 0.0265 |
Note 15 - 2014 Stock Awards P61
Note 15 - 2014 Stock Awards Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||
Stock option compensation expensed | $ 24,491 | $ 3,165 |
Unrecognized Compensation Expense | $ 35,519 | $ 23,335 |