Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Feb. 28, 2015 | Apr. 13, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Berkshire Homes, Inc. | |
Entity Central Index Key | 1505124 | |
Document Type | 10-Q | |
Document Period End Date | 28-Feb-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
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 | 1,572,002 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Feb. 28, 2015 | Nov. 30, 2014 |
Properties | ||
Properties under development | $4,437,047 | $4,963,545 |
Properties held for sale | 1,793,101 | 932,171 |
Properties, net | 6,230,148 | 5,895,716 |
Cash and equivalents | 118,004 | 353,685 |
Prepaid expenses | 25,000 | 5,000 |
Assets related to discontinued operations, net of accumulated depreciation of $36,584 (2014-$24,923) | 2,624,386 | 2,634,247 |
Vehicle, net of accumalated depreciation of $1,229 | 25,813 | 28,271 |
Deferred financing costs | 2,866 | 5,322 |
TOTAL ASSETS | 9,026,217 | 8,922,241 |
LIABILITIES AND STOCKHOLDERS DEFICIT | ||
Accounts payable and accrued liabilities | 15,394 | 26,529 |
Accured interest | 486,352 | 373,544 |
Accounts payable to related parties | 494,020 | 494,020 |
Advances due to Cannabis-Rx, Inc. | 149,472 | 149,472 |
Promissory notes | 9,150,000 | 9,150,000 |
Total liabilities | 10,295,238 | 10,193,565 |
Stockholders Deficit | ||
Preferred stock, $0.0001 par value, 20,000,000 shares authorized; 2,000,000 and 2,000,000 shares issued and outstanding | 200 | 200 |
Common Stock, $0.0001 par value, 500,000,000 shares authorized, 1,572,000 and 2,152,000 shares issued and outstanding | 157 | 157 |
Additional paid-in capital | 168,243 | 168,243 |
Preferred share subscription receivable | -20,000 | -20,000 |
Accumulated Deficit | -1,417,621 | -1,419,924 |
Total Stockholders Deficit | -1,269,021 | -1,271,324 |
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT | $9,026,217 | $8,922,241 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Feb. 28, 2015 | Nov. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Discontinued Operations, accumulated depreciation | $36,584 | $24,923 |
Vehicle accumulated depreciation | $3,687 | $1,229 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, authorized shares | 20,000,000 | 20,000,000 |
Preferred stock, issued shares | 2,000,000 | 2,000,000 |
Preferred stock, outstanding shares | 2,000,000 | 20,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, issued shares | 1,572,002 | 1,572,002 |
Common stock, outstanding shares | 1,572,002 | 1,572,002 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
REVENUES | ||
Property sales | $675,419 | |
REVENUES | 675,419 | |
COST OF SALES | ||
Property costs | 565,252 | |
COST OF SALES | 565,252 | |
GROSS PROFIT | 110,167 | |
EXPENSES | ||
Depreciation | 2,458 | |
Consulting fees | 5,000 | 12,000 |
Insurance | 5,813 | |
General and administrative | 15,362 | 8,993 |
Professional fees | 18,053 | 8,252 |
Management fees and expenses | 30,947 | 18,750 |
TOTAL EXPENSES | 77,633 | 47,995 |
INCOME (LOSS) FROM OPERATIONS | 32,534 | -47,995 |
OTHER INCOME (EXPENSE) | ||
Interest expense | -115,264 | -35,581 |
TOTAL OTHER (EXPENSE) | -115,264 | -35,581 |
LOSS FROM CONTINUING OPERATIONS | -82,730 | -83,576 |
INCOME FROM DISCONTINUED OPERATIONS | 85,033 | |
NET LOSS | $2,303 | ($83,576) |
NET INCOME PER SHARE BASIC AND DILUTED FROM CONTINUING OPERATIONS | ($0.05) | ($0.04) |
NET LOSS PER SHARE BASIC AND DILUTED FROM DISCONTINUED OPERATIONS | $0.05 | $0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING BASIC AND DILUTED | 1,572,002 | 1,978,000 |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
NET LOSS | $2,303 | ($83,576) |
Adjustments to reconcile net (loss) to net cash used in operating activities: | ||
Depreciation | 14,119 | |
Amortization of deferred financing costs | 2,456 | 2,456 |
Changes in operating assets and liabilities: | ||
Prepaid expenses | -25,000 | |
Inventory of properties under development | -334,432 | -126,324 |
Accounts payable | -6,135 | -5,399 |
Accrued interest | 112,808 | 33,125 |
Net Cash Used in Operating Activities | -233,881 | -179,718 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Advances from Cannabis-Rx, Inc. | 37,353 | |
Net Cash Provided by Financing Activities | 37,353 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of properties, rehabilitation expense | -1,800 | |
Net Cash Used by Investing Activities | -1,800 | |
Net Change in cash | -235,681 | -142,365 |
Cash and Cash equivalents, beginning of period | 353,685 | 146,048 |
Cash and Cash equivalents, end of period | 118,004 | 3,683 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | ||
Income taxes paid |
DESCRIPTION_OF_BUSINESS_AND_BA
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Feb. 28, 2015 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | Description of Business |
Berkshire Homes, Inc. (the “Company”) was incorporated in Nevada on June 2, 2010. | |
The Company operated an agricultural consulting business until November 16, 2012 when upon change of management the Company changed its business focus to acquisition, rehabilitation and sale or lease of distressed residential real estate in the United States. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Feb. 28, 2015 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation |
The accompanying unaudited interim financial statements of Berkshires Homes, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited 2014 annual financial statements and notes thereto filed on Form 10-K with the SEC. In the opinion of management, all adjustments, consisting of normal reoccurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods present have been reflected herein. The results of operation for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially |
RELATED_PARTY_TRANSATIONS
RELATED PARTY TRANSATIONS | 3 Months Ended |
Feb. 28, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSATIONS | During the three months ended February 28, 2015 and 2014, the Company incurred management fees and expenses of $30,947 and $18,750 to its officers , respectively. |
As of February 28, 2015 , the Company had a payable of $482,243 owed to Bay Capital A.G., who became a related party during 2013 by obtaining majority ownership and $11,777 owed to the Chief Executive Officer of the Company. | |
During 2013, Cannabis-Rx Inc., an entity with common ownership and management, advanced an aggregate of $50,496 to us which was outstanding as of November 30, 2013. In addition, in 2014, Cannabis advanced an additional $99,093 to us, $117 of which was written off as the of the year ended November 30, 2014. As at February 28, 2015, the total advances from Cannabis was $149,472. | |
The amounts due to these related parties are due on demand, non-interest bearing and unsecured. |
PROMISSORY_NOTES
PROMISSORY NOTES | 3 Months Ended |
Feb. 28, 2015 | |
Debt Disclosure [Abstract] | |
PROMISSORY NOTES | On June 13, 2013, the Company borrowed $2,150,000 at an interest rate of 5% per annum. The promissory note is unsecured and is due on June 13, 2015. In connection with the note, the Company paid a fee of $19,650 to a third party which was recorded as deferred financing costs and is being amortized to interest expense over the life of the loan using the effective interest rate method. During the period ended February 28, 2015, amortization expense of $9,824 was recognized and unamortized financing costs of $5,323 are deferred on the balance sheet. |
On June 27, 2013, the Company borrowed $500,000 at an interest rate of 5% per annum. The promissory note is unsecured and is due on June 27, 2015. | |
On April 21, 2014, the Company borrowed $4,500,000 at an interest rate of 5% per annum. The promissory note is unsecured and is due on April 21, 2016. | |
On June 23, 2014, the Company borrowed $2,000,000 at an interest rate of 5% per annum. The promissory note is unsecured and is due on June 23, 2016. |
COMMON_STOCK
COMMON STOCK | 3 Months Ended |
Feb. 28, 2015 | |
Equity [Abstract] | |
COMMON STOCK | On February 12, 2014, the Company authorized a class of Series A preferred stock consisting of 5,000,000 shares with a par value of $ 0.0001 per share. On February 12, 2014, the Company agreed to issue 2,000,000 such shares for cash of $20,000. As of February 28, 2015, the Company had not received the proceeds of the share subscription and the proceeds have been recorded as subscription receivable. |
ACQUISITION
ACQUISITION | 3 Months Ended | ||||
Feb. 28, 2015 | |||||
Business Combinations [Abstract] | |||||
ACQUISITION | On June 27, 2014, the Company acquired a 100% ownership interest in a property located in Tallahassee, Florida at an auction for a purchase price of $2,500,000 and rehabilitation expenses of $159,170 for a total of $2,659,170. During the period ended February 28, 2015, the Company incurred rehabilitation expenses of $ 1,800 related to the property. The property consisted of 56 residential units consisting of one and two bedrooms. There were preexisting leases. However, due to the short-term nature of the leases, no value was assigned to them. The property was purchased for the purpose of resale after renovations. Offers for the purchase of the property have been received. On February 2, 2015, a written offer for $3,500,000 has been executed. | ||||
The following table summarizes the preliminary estimated fair values of the assets and liabilities acquired as part of the Tallahasee purchase: | |||||
Land | $ | 556,000 | |||
Buildings, net and Improvements | 2,078,247 | ||||
Estimated fair value of assets and liabilities acquired | $ | 2,634,247 | |||
The rental income and expenses from the discontinued operations for the three months ended February 28, 2015 is as follows: | |||||
Rental Income | $ | 27,393 | |||
Purchase deposit forfeited | 75,000 | * | |||
Rental Expense | (5,699 | ) | |||
Depreciation Expense | (11,661 | ) | |||
Total rental income and expense | 85,033 | ||||
* the purchase offer executed on February 2, 2015 has fallen through. | |||||
The property has been classified as held for sale. As a result the assets and rental income have been presented as discontinued operations in the financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Feb. 28, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited interim financial statements of Berkshires Homes, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited 2014 annual financial statements and notes thereto filed on Form 10-K with the SEC. In the opinion of management, all adjustments, consisting of normal reoccurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods present have been reflected herein. The results of operation for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially |
ACQUISITION_Tables
ACQUISITION (Tables) | 3 Months Ended | ||||
Feb. 28, 2015 | |||||
Business Combinations [Abstract] | |||||
Schedule of Estimated Fair Values of the Assets and Liabilities Acquired | Land | $ | 556,000 | ||
Buildings, net and Improvements | 2,078,247 | ||||
Estimated fair value of assets and liabilities acquired | $ | 2,634,247 | |||
Schedule of Rental Income and Expenses | Rental Income | $ | 27,393 | ||
Purchase deposit forfeited | 75,000 | ||||
Rental Expense | (5,699 | ) | |||
Depreciation Expense | (11,661 | ) | |||
Total rental income and expense | 85,033 |
DESCRIPTION_OF_BUSINESS_AND_BA1
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details Narrative) | 3 Months Ended |
Feb. 28, 2015 | |
Accounting Policies [Abstract] | |
Date of Incorporation | 2-Jun-10 |
RELATED_PARTY_TRANSATIONS_Deta
RELATED PARTY TRANSATIONS (Details Narrative) (USD $) | 3 Months Ended | ||||
Feb. 28, 2015 | Feb. 28, 2014 | Nov. 30, 2014 | Nov. 29, 2014 | Nov. 30, 2013 | |
Management fees and expenses | $30,947 | $18,750 | |||
Accounts payable to related parties | 494,020 | 494,020 | |||
Advances due to Cannabis-Rx, Inc. | 149,472 | 149,472 | 99,093 | 50,496 | |
Advances written off | 117 | ||||
Bay Capital AG | |||||
Accounts payable to related parties | 482,243 | 482,243 | |||
Chief Executive Officer | |||||
Accounts payable to related parties | $11,777 | $11,777 |
PROMISSORY_NOTES_Details_Narra
PROMISSORY NOTES (Details Narrative) (USD $) | 3 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Nov. 30, 2014 | |
Interest expense | $115,264 | $35,581 | |
Amortization expense | 2,456 | 2,456 | |
Long term liability | 9,150,000 | 9,150,000 | |
Interest Expense | -115,264 | -35,581 | |
Promissory Note 1 | |||
Date of Debt Instrument | 13-Jun-13 | ||
Issuance of promissory notes | 2,150,000 | ||
Interest expense | 19,650 | ||
Interest rate | 5.00% | ||
Amortization expense | 9,824 | ||
Unamortized financing costs | 5,323 | ||
Promissory Note 2 | |||
Date of Debt Instrument | 27-Jun-13 | ||
Issuance of promissory notes | 500,000 | ||
Interest rate | 5.00% | ||
Debt Instrument, Due Date | 27-Jun-15 | ||
Promissory Note 3 | |||
Date of Debt Instrument | 21-Apr-14 | ||
Issuance of promissory notes | 4,500,000 | ||
Interest rate | 5.00% | ||
Debt Instrument, Due Date | 21-Apr-16 | ||
Promissory Note 4 | |||
Date of Debt Instrument | 23-Jun-14 | ||
Issuance of promissory notes | $2,000,000 | ||
Interest rate | 5.00% | ||
Debt Instrument, Due Date | 23-Jun-16 |
COMMON_STOCK_Details_Narrative
COMMON STOCK (Details Narrative) (USD $) | Feb. 28, 2015 | Nov. 30, 2014 | Feb. 12, 2014 |
Equity [Abstract] | |||
Common Stock, authorized | 500,000,000 | 500,000,000 | |
Common Stock, par value | $0.00 | $0.00 | |
Preferred Stock, authorized | 20,000,000 | 20,000,000 | |
Preferred Stock, par value | $5,000,000 | ||
Series A Preferred stock, par value | $5,000,000 | ||
Series A Preferred stock, authorized shares | 0.0001 | ||
Series A Preferred stock, issued shares | 2,000,000 | ||
Series A Preferred stock, amount | $20,000 |
ACQUISITION_Schedule_of_Estima
ACQUISITION - Schedule of Estimated Fair Values of the Assets and Liabilities Acquired (Details) (Tallahasee Purchase, USD $) | Feb. 28, 2015 |
Tallahasee Purchase | |
Land | $556,000 |
Buildings, net and Improvements | 2,078,247 |
Estimated fair value of assets and liabilities acquired | $2,634,247 |
ACQUISITION_Schedule_of_Rental
ACQUISITION - Schedule of Rental Income and Expenses (Details) (Tallahasee Purchase, USD $) | 3 Months Ended |
Feb. 28, 2015 | |
Tallahasee Purchase | |
Rental Income | $27,393 |
Purchase deposit foreited | 75,000 |
Rental Expense | -5,699 |
Depreciation Expense | 11,661 |
Total rental income and expense | $85,033 |
ACQUISITION_Details_Narrative
ACQUISITION (Details Narrative) (USD $) | 3 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Rehabilitation expense | ($1,800) | |
Tallahasee Purchase | ||
Date of Agreement | 27-Jun-14 | |
Property Purchase Price | 2,500,000 | |
Property Rehabilitation Expense | 159,173 | |
Rehabilitation expense | 1,800 | |
Total purchase price | $2,659,170 |