Car Monkeys (CKMY) 10-Q 20 May 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Mar. 31, 2015	15-May-15
Document And Entity Information
Entity Registrant Name	Car Monkeys Group
Entity Central Index Key	1496139
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-24
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,255,648
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

Balance_Sheets

Balance Sheets (USD $)	Mar. 31, 2015	Jun. 30, 2014
Current assets:
Cash	$154,619	$123,331
Restricted cash (see Note 3)	73,563	73,563
Accounts receivable	12,660	28,350
Total current assets	240,842	225,244
Property, plant and equipment, net	3,413	3,467
Intangible assets	353,194	353,194
Total assets	597,449	581,905
Current liabilities:
Accounts payable	128,888	39,882
Accounts payable - related party	11,351	31,946
Total current liabilities	140,239	71,828
Stockholders' Equity
Preferred stock, par value $0.001, 10,000,000 shares authorized, 400,000 shares issued and outstanding as of March 31, 2015 and June 30, 2014, respectively	400	400
Common stock, par value $0.001, 100,000,000 shares authorized, 3,255,648 issued and outstanding as of March 31, 2015 and June 30, 2014, respectively	3,256	3,256
Additional paid-in capital	821,408	821,408
Retained deficit	-367,854	-314,987
Total stockholder's equity	457,210	510,077
Total liabilities and stockholder's equity	$597,449	$581,905

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Stockholders' Deficit
Preferred stock, par value	$0.00	$0.00
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	400,000	400,000
Preferred stock, outstanding	400,000	400,000
Common stock, par value	$0.00	$0.00
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	3,255,648	3,255,648
Common stock, outstanding	3,255,648	3,255,648

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Statements Of Operations
Net Revenue (gross total transactions of $640,335, $487,481, $1,852,514, and $1,254,165)	$203,994	$176,994	$553,271	$474,752
Operating expenses:
Advertising	57,540	26,207	145,835	65,411
General and administrative	23,586	21,636	55,262	45,300
Selling	50,791	22,243	143,200	76,013
Professional fees	14,355	15,390	58,371	50,005
Executive compensation	68,400	71,900	203,000	157,433
Depreciation expense	161	163	470	245
Total operating expenses	214,833	157,539	606,138	394,407
Operating income (loss) before income taxes	-10,839	19,455	-52,867	80,345
Other income				3
Income tax (expense) benefit
Net income (loss)	($10,839)	$19,455	($52,867)	$80,348
Basic and diluted income (loss) per common share	$0	$0.01	($0.02)	$0.02
Weighted average shares outstanding	3,255,648	3,255,648	3,255,648	3,255,648

Statements_of_Operations_Paren

Statements of Operations (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Statements Of Operations
Gross transactions	$640,335	$487,481	$1,852,514	$1,254,165

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income (loss)	($52,867)	$80,348
Depreciation expense	470	245
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Restricted cash		-92,495
Accounts receivable	15,690	-35,319
Prepaid expenses		5,833
Accounts payable/accrued expenses	89,006	3,576
Accounts payable - related party	-20,595	35,705
Net cash provided by (used in) operating activities	31,704	-2,107
Cash flows from investing activities:
Purchase of equipment	-416
Net cash used in investing activities	-416
Cash flows from financing activities:
Contributed capital		25
Net cash provided by financing activities		25
Net increase (decrease) in cash	31,288	-2,082
Cash at beginning of period	123,331	41,334
Cash at end of period	154,619	39,252
Supplemental Information:
Cash paid for interest
Cash paid for income taxes

BASIS_FOR_FINANCIAL_STATEMENTS

BASIS FOR FINANCIAL STATEMENTS	9 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 1 - BASIS FOR FINANCIAL STATEMENTS	The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's June 30, 2014 audited financial statements as reported in Form 10-K. The results of operations for the period ended March 31, 2015 are not necessarily indicative of the operating results for the full year ended June 30, 2015.
	REVENUE RECOGNITION
	The Company recognizes revenue under ASC 605 “Revenue Recognition.” Under ASC 605-45, the Company determined that revenues should be recognized on the net revenue reporting method, in which the Company only reports the net revenues from the drop shipped transactions. Revenue is recognized when revenues have been collected and the product has been shipped FOB shipper. Gross and net revenue is as follows:
		3/31/15		3/31/14
	Gross total transactions	$	1,852,514	$	1,254,165
	Gross cost of total transactions		1,299,243		779,413
	Net revenue	$	553,271	$	474,752
	At the end of each quarter, there is sometimes a delay in receiving payment from a third party payment processor who has collected the sales revenue before the product is shipped. These uncollected revenues are recorded as sales and accounts receivable at each quarter end.

RESTRICTED_CASH

RESTRICTED CASH	9 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 2 - RESTRICTED CASH	The Company uses merchant accounts to facilitate sales realized through the Company’s proprietary online sales platform. In accordance with certain merchant account agreements 15% of cash receipts are withheld for a period of up to 12 months to ensure the Company’s creditworthiness. After such period these withholdings are to be deposited in the Company’s bank accounts and become usable. Accordingly, as of March 31, 2015, the Company has classified these reserve balances in merchant accounts as restricted cash, totaling $73,563.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 3 - INTANGIBLE ASSETS	Identifiable intangible assets have been capitalized as per ASC 350-35 “General Intangibles Other than Goodwill.” Identifiable intangible assets consist of proprietary technology relating to the acquisition of a sole and exclusive license in and to certain proprietary technology relating to online procurement of certain goods in exchange for the issuance of 172,848 shares of common stock, par value $0.001, and 400,000 shares of preferred stock, par value $0.001, to the Company’s president and sole director. The common shares have been valued at $1.206 per share, whereas the preferred shares have been valued at $0.36182 per share. The proprietary technology has been recorded as an intangible asset totaling $353,194 as of June 30, 2012.
	An impairment test is done at least annually. The proprietary technology consists of internet search algorithms tailored to searching, cross referencing, and pricing used auto parts. The search algorithms enable a vast and detailed online catalog of used auto parts, which surpasses what is currently available from any other source. Together with the pricing algorithms, the technology provides the display of product information, together with a price that is both competitive and offers a good profit margin for an online retail entity utilizing the technology. This pricing model is based on availability and wholesale cost of each particular part from a trusted network of automotive recyclers nationwide.
	In conjunction with the year ended June 30, 2014, the Company performed an impairment loss assessment of the intangible asset and determined that the carrying amount was not impaired. The assessment considered, amongst other factors, both the current period and historical operating losses, as well as forecasted positive net cash flows to be generated by the intangible asset on a discounted basis. It was determined that based the future economic benefits of the intangible asset were greater than the current carrying amount of $353,194. Accordingly the Company has determined that an impairment of the intangible asset is unnecessary as of June 30, 2014.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 4 - RELATED PARTY TRANSACTIONS	In August, 2013, the Company entered into an agreement with its President, wherein the Company agreed to pay a monthly salary of $15,800 in exchange for services to be rendered. Furthermore, the Company entered into an agreement with its Chief Technology Officer (“CTO”) pursuant to which terms the Company agreed to pay a weekly salary of $1,500. These compensation amounts have been recorded in executive compensation for the period ended March 31, 2015, totaling $142,200 for the President and $60,800 for the CTO. Of this amount, $11,351 has yet to be paid and is recorded in accounts payable – related party as of March 31, 2015, ($31,946 at June 30, 2014).

PROVISION_FOR_INCOME_TAXES

PROVISION FOR INCOME TAXES	9 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 5 - PROVISION FOR INCOME TAXES	The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10 (Prior authoritative literature: Financial Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No. 109 (FIN 48)). FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained 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. As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740-10.
	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 basis. 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 income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates of 43% to pretax income from continuing operations for the quarters ended March 31, 2015 and 2014 due to the following:
		For the Nine Months Ended March 31,			For the Nine Months Ended March 31,
		2015			2014
	Current Federal Tax (Benefit) at 34%	$	(17,974	)	$	27,318
	Current State Tax		(4,758	)		7,231
	Use of NOL and Rate Difference		-			(34,549	)
	Change in NOL benefit		-			56,039
	Change in valuation allowance		22,732			(56,039	)
	Total	$	-		$	-
		For the Nine Months Ended March 31,			For the Nine Months Ended March 31,
		2015			2014
	Deferred tax asset:
	Net operating loss carryforward	$	103,064		$	107,789
	Valuation allowance		(103,064	)		(107,789	)
	Total	$	-		$	-
	The potential income tax benefit of these losses has been offset by a full valuation allowance.
	As of March 31, 2015, the Company has an unused net operating loss carry-forward balance of $239,684 that is available to offset future taxable income. This unused net operating loss carry-forward balance begins to expire in 2033.
	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
		For the Nine Months Ended March 31,			For the Nine Months Ended March 31,
		2015			2014
	Beginning balance	$	-		$	-
	Additions based on tax positions related to current year		-			-
	Additions for tax positions of prior years		-			-
	Reductions for tax positions of prior years		-			-
	Reductions in benefit due to income tax expense		-			-
	Ending balance	$	-		$	-
	At March 31, 2015, the Company had no unrecognized tax benefits that, if recognized, would affect the effective tax rate.
	The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.
	As of March 31, 2015 and 2014, the Company had no accrued interest or penalties related to uncertain tax positions.
	The tax years that remain subject to examination by major taxing jurisdictions are those since June 23, 2010 (Inception) through the year ended June 30, 2014.

GOING_CONCERN_AND_LIQUIDITY_CO

GOING CONCERN AND LIQUIDITY CONSIDERATIONS	9 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 6 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS	The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. As of March 31, 2015 and June 30, 2014, the Company has a retained deficit of $367,854 and $314,987, respectively. The Company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the next twelve months.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 7 - STOCKHOLDERS' EQUIT	On January 16, 2015 the Company effected a twenty for one reverse stock split, reducing outstanding common shares from 65,012,813 shares to 3,255,648 shares. Fractional shares were rounded up to the next whole share. The split is reflected retrospectively in these financial statements.

ADVERTISING_COSTS

ADVERTISING COSTS	9 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 8 - ADVERTISING COSTS	The Company expenses advertising costs as incurred. Advertising expenses were $57,540, $145,835, $26,207 and $65,411 for the three and nine months ended March 31, 2015 and 2014, respectively.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Note 9 - SUBSEQUENT EVENTS	The Company has evaluated its subsequent events from the balance sheet date through the date of issuance and determined that there are no additional events to disclose.

BASIS_FOR_FINANCIAL_STATEMENTS1

BASIS FOR FINANCIAL STATEMENTS (Tables)	9 Months Ended
	Mar. 31, 2015
Basis For Financial Statements Tables
Revenue Recognition	Gross and net revenue is as follows:
		3/31/15		3/31/14
	Gross total transactions	$	1,852,514	$	1,254,165
	Gross cost of total transactions		1,299,243		779,413
	Net revenue	$	553,271	$	474,752

PROVISION_FOR_INCOME_TAXES_Tab

PROVISION FOR INCOME TAXES (Tables)	9 Months Ended
	Mar. 31, 2015
Provision For Income Taxes Tables
Income tax provision		For the Nine Months Ended March 31,			For the Nine Months Ended March 31,
		2015			2014
	Current Federal Tax (Benefit) at 34%	$	(17,974	)	$	27,318
	Current State Tax		(4,758	)		7,231
	Use of NOL and Rate Difference		-			(34,549	)
	Change in NOL benefit		-			56,039
	Change in valuation allowance		22,732			(56,039	)
	Total	$	-		$	-
Schedule of deferred tax assets		For the Nine Months Ended March 31,			For the Nine Months Ended March 31,
		2015			2014
	Deferred tax asset:
	Net operating loss carryforward	$	103,064		$	107,789
	Valuation allowance		(103,064	)		(107,789	)
	Total	$	-		$	-
Unrecognized tax benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
		For the Nine Months Ended March 31,			For the Nine Months Ended March 31,
		2015			2014
	Beginning balance	$	-		$	-
	Additions based on tax positions related to current year		-			-
	Additions for tax positions of prior years		-			-
	Reductions for tax positions of prior years		-			-
	Reductions in benefit due to income tax expense		-			-
	Ending balance	$	-		$	-

BASIS_FOR_FINANCIAL_STATEMENTS2

BASIS FOR FINANCIAL STATEMENTS (Details) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Basis For Financial Statements Details
Gross total transactions	$640,335	$487,481	$1,852,514	$1,254,165
Gross cost of total transactions			1,299,243	779,413
Net revenue	$203,994	$176,994	$553,271	$474,752

RESTRICTED_CASH_Details_Narrat

RESTRICTED CASH (Details Narrative) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Restricted Cash Details Narrative
Restricted cash	$73,563	$73,563

INTANGIBLE_ASSETS_Details_Narr

INTANGIBLE ASSETS (Details Narrative) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Intangible Assets Details Narrative
Intangible asset	$353,194	$353,194

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Related Party Transactions Details Narrative
Accounts payable - related party	$11,351	$31,946
Executive compensation to President	142,200
Executive compensation to CTO	$60,800

PROVISION_FOR_INCOME_TAXES_Det

PROVISION FOR INCOME TAXES (Details) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Provision For Income Taxes Details
Current Federal Tax (Benefit) at 34%			($17,974)	$27,318
Current State Tax			-4,758	7,231
Use of NOL and Rate Difference				-34,549
Change in NOL benefit				56,039
Change in valuation allowance			22,732	-56,039
Total

PROVISION_FOR_INCOME_TAXES_Det1

PROVISION FOR INCOME TAXES (Details 1) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Deferred tax asset
Net operating loss carryforward	$103,064	$107,789
Valuation allowance	-103,064	-107,789
Total

PROVISION_FOR_INCOME_TAXES_Det2

PROVISION FOR INCOME TAXES (Details 2) (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Provision For Income Taxes Details 2
Beginning balance
Additions based on tax positions related to current year
Additions for tax positions of prior years
Reductions for tax positions of prior years
Reductions in benefit due to income tax expense
Ending balance

PROVISION_FOR_INCOME_TAXES_Det3

PROVISION FOR INCOME TAXES (Details Narrative) (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Provision For Income Taxes Details Narrative
Federal and state income tax rates	43.00%	43.00%
Operating loss carry forwards	$239,684
Operating loss carry forwards expiration year	2033

GOING_CONCERN_AND_LIQUIDITY_CO1

GOING CONCERN AND LIQUIDITY CONSIDERATIONS (Details Narrative) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Going Concern And Liquidity Considerations Details Narrative
Retained deficit	$367,854	$314,987

ADVERTISING_COSTS_Details_Narr

ADVERTISING COSTS (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Advertising Costs Details Narrative
Advertising expenses	$57,540	$26,207	$145,835	$65,411