Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 14, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | RedStone Literary Agents, Inc. | ||
Entity Central Index Key | 1,515,139 | ||
Trading Symbol | rdla | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 6,000,000 | ||
Entity Public Float | $ 90,000 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 56,050 | $ 13,870 |
Total Current Assets | 56,050 | 13,870 |
Total Assets | 56,050 | 13,870 |
Current Liabilities | ||
Accounts payable and accrued expenses | 49,013 | 4,150 |
Total Current Liabilities | 49,013 | 4,150 |
Non-Current Liabilities | ||
Convertible notes payable | 163,270 | 77,757 |
Total Liabilities | 212,283 | 81,907 |
Stockholders' Deficit | ||
Common stock, $0.001 par value, 75,000,000 shares authorized; 6,000,000 shares issued and outstanding: | 6,000 | 6,000 |
Additional paid-in-capital | 63,717 | 63,717 |
Accumulated deficit | (225,950) | (137,754) |
Total Stockholders' Deficit | (156,233) | (68,037) |
Total Liabilities and Stockholders' Deficit | $ 56,050 | $ 13,870 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 6,000,000 | 6,000,000 |
Common stock, shares outstanding | 6,000,000 | 6,000,000 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Revenue | ||
General and administrative expenses | ||
Professional fees | 58,625 | 33,696 |
Note interest and bank charges | 15,513 | 7,143 |
Consulting fees | 9,000 | 5,903 |
Filing and transfer fees | 5,058 | 8,746 |
Total general and administrative expenses | 88,196 | 55,488 |
Net loss from operations | (88,196) | (55,488) |
Provision for taxes | ||
Net loss | $ (88,196) | $ (55,488) |
Loss per common share - Basic and diluted (in dollars per share) | $ (0.01) | $ (0.01) |
Weighted average number of common shares outstanding, basic and diluted (in shares) | 6,000,000 | 6,000,000 |
Statement of Changes in Stockho
Statement of Changes in Stockholders' Equity (Deficit) - USD ($) | Common Stock | Additional Paid-in Capital | Deficit Accumulated | Total |
Balance at Dec. 31, 2014 | $ 6,000 | $ 63,717 | $ (82,266) | $ (12,549) |
Balance (in shares) at Dec. 31, 2014 | 6,000,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss for the year | (55,488) | (55,488) | ||
Balance at Dec. 31, 2015 | $ 6,000 | 63,717 | (137,754) | $ (68,037) |
Balance (in shares) at Dec. 31, 2015 | 6,000,000 | 6,000,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss for the year | (88,196) | $ (88,196) | ||
Balance at Dec. 31, 2016 | $ 6,000 | $ 63,717 | $ (225,950) | $ (156,233) |
Balance (in shares) at Dec. 31, 2016 | 6,000,000 | 6,000,000 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash derived from (used for) Operating activities | ||
Net loss for the period | $ (88,196) | $ (55,488) |
Changes in operating assets and liabilities | ||
Accrued interest included in convertible notes payable | 15,513 | 7,143 |
Accounts payable and accrued expenses | 44,863 | (2,448) |
Net cash (used in) operating activities | (27,820) | (50,793) |
Investing activities | ||
Net cash provided by (used in) investing activities | ||
Financing activities | ||
Proceeds from issuance of unsecured note payable | 20,000 | |
Proceeds from issuance of convertible notes payable | 70,000 | 60,000 |
Payments on unsecured note payable | (20,000) | |
Net cash provided by financing activities | 70,000 | 60,000 |
Net changes in cash and equivalents | 42,180 | 9,207 |
Cash and equivalents at beginning of the year | 13,870 | 4,663 |
Cash and equivalents at end of the year | 56,050 | 13,870 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid in interest | ||
Cash paid for income taxes | ||
NON-CASH FINANCING TRANSACTIONS | ||
Note restructuring fee | $ 1,500 |
NATURE AND CONTINUANCE OF OPERA
NATURE AND CONTINUANCE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE AND CONTINUANCE OF OPERATIONS | 1. NATURE AND CONTINUANCE OF OPERATIONS Redstone Literary Agents, Inc. (the “Company”) was incorporated under the laws of State of Nevada, U.S. on July 20, 2010, with an authorized capital of 75,000,000 common shares, having a par value of $0.001 per share. The Company’s year-end is December 31. During the period ended December 31, 2010, the Company commenced operations by issuing shares and developing its publishing service business, focused on representing authors to publishers. Effective August 28, 2014, Mary Wolf, the Company’s sole director and officer, resigned as President, Secretary and Treasurer of the Company, and James P. Geiskopf was appointed as the President, Secretary, Treasurer, and a director of the Company. Also on August 28, 2014, pursuant to a transfer agreement dated for reference August 28, 2014, Ms. Wolf sold to Mr. Geiskopf, 3,000,000 shares of the Company’s common stock for total consideration of $20,000. Mr. Geiskopf paid the $20,000 purchase price for these shares using personal funds. Mr. Geiskopf holds 50% of the Company’s issued and outstanding common stock. In November 2014, Ms. Wolf resigned as a director of the Company and the Company ceased pursuing the publishing service business and is now seeking new business opportunities with established business entities to effect a merger or other form of business combination with the Company. There can be no assurance, however, that the Company will be able to acquire the financing necessary to enable it to pursue its plan of operation and enter into such an agreement. Going Concern These financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses since inception resulting in an accumulated deficit of $225,950 as at December 31, 2016 and further losses are anticipated in the pursuit of a new business opportunity, raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and/or the private placement of common stock. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles 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 period. Actual results could differ from those estimates. The carrying value of cash and accounts payable and accrued liabilities and loans payable approximates their fair value because of the short maturity of these instruments. Unless otherwise noted, it is management’s opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Financial Instruments The recorded amounts of financial instruments, including cash, accounts payable and accrued expenses and loan from stockholders, approximate their market values as of December 31, 2016 due to the short term maturities of these financial instruments. Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. At December 31, 2016, a full deferred tax asset valuation allowance has been provided and no deferred tax asset has been recorded. Earnings per Share The Company computes loss per share in accordance with ASC 105, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. With the exception of the convertible notes payable discussed in Note 3, the Company had no potentially dilutive debt or equity instruments issued or outstanding during the years ended December 31, 2016 and 2015. Recent Accounting Pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of its operations. |
NOTE PAYABLE
NOTE PAYABLE | 12 Months Ended |
Dec. 31, 2016 | |
Notes Payable [Abstract] | |
NOTE PAYABLE | 3. NOTES PAYABLE On September 14 2015, the Company entered into a private placement subscription agreement and issued an unsecured convertible note (the “ First Note Principal Amount On December 31, 2016, The Company entered into a private placement subscription agreement and issued an unsecured convertible note (the “ Second Note On June 6, 2016, The Company issued an unsecured note (the “ Unsecured Note On December 31, 2016, The Company entered into a private placement subscription agreement and issued an unsecured convertible note (the “ Third Note |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 4. RELATED PARTY TRANSACTIONS In support of the Company’s efforts and cash requirements, it may rely on advances from stockholders until such time as the Company can support its operations through revenue generation, or attain adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by stockholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The Company’s office premises are provided to it at no cost by its sole director and officer. The Company’s sole director and officer did not take any fees for serving as director or officer during the years ended December 31, . |
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICIT | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' DEFICIT | 5. STOCKHOLDERS’ DEFICIT Common Stock The total number of shares of common stock authorized that may be issued by the Company is 75,000,000 shares, having a par value of one tenth of one cent ($0.001) per share. No other class of shares is authorized. No shares of common stock were issued during the years ended December 31, . As at December 31, 2016 and 2015, 6,000,000 shares of common stock were issued and outstanding. Stock Options and Warrants No stock options or warrants were issued or outstanding during the years ended December 31, . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 6. INCOME TAXES For the fiscal years 2016 and 2015, there was no provision for income taxes and deferred tax assets have been entirely offset by valuation allowances. As of December 31, 2016 and 2015, the Company had net operating loss carry forwards of approximately $ 225,950 The Company's tax expense differs from the "expected" tax expense for Federal income tax purposes (computed by applying the United States Federal tax rate of 34% to loss before taxes), as follows: For the Years Ended December 31, 2016 2015 Tax expense (benefit) at the statutory rate $ (29,986 ) $ (18,866 ) State income taxes, net of federal income tax benefit (4,851 ) (3,052 ) Non-deductible items – – Change in valuation allowance 34,837 21,918 Total $ – $ – The tax effects of the temporary differences between reportable financial statement income and taxable income are recognized as deferred tax assets and liabilities. There are no temporary differences in the years ended December 31, 2016 and 2015. The tax effect of significant components of the Company's deferred tax assets and liabilities at December 31, 2016 and 2015, respectively, are as follows: December 31, 2016 2015 Deferred tax assets: Net operating loss carryforward $ 71,095 $ 36,258 Stock options – – Total gross deferred tax assets 71,095 36,258 Less: Deferred tax asset valuation allowance (71,095 ) (36,258 ) Total net deferred tax assets – – Deferred tax liabilities: Depreciation – – Total deferred tax liabilities – – Total net deferred taxes $ – $ – In assessing the ability to realize the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Because of the historical earnings history of the Company, the net deferred tax assets for 2016 were fully offset by a 100% valuation allowance. The valuation allowance for the remaining net deferred tax assets was $34,837 and $21, 918 as of December 31, 2016 and 2015, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 7. SUBSEQUENT EVENTS The Company has evaluated subsequent events from December 31, 2016 to the date the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements except: On March 2, 2017, the Company entered into a private placement subscription agreement and issued an unsecured convertible note in the principal amount of $20,000 to one subscriber. This note, and accrued interest, will mature five (5) years from the date of issuance and will bear interest at the rate of 18% interest per annum, compounded annually. The Principal Amount, plus any interest accrued thereon, may be converted into shares of common stock of the Company at a conversion price of $0.03 per share. |
SUMMARY OF SIGNIFICANT ACCOUN14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles 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 period. Actual results could differ from those estimates. The carrying value of cash and accounts payable and accrued liabilities and loans payable approximates their fair value because of the short maturity of these instruments. Unless otherwise noted, it is management’s opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. |
Financial Instruments | Financial Instruments The recorded amounts of financial instruments, including cash, accounts payable and accrued expenses and loan from stockholders, approximate their market values as of December 31, 2016 due to the short term maturities of these financial instruments. |
Income Taxes | Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. At December 31, 2016, a full deferred tax asset valuation allowance has been provided and no deferred tax asset has been recorded. |
Earnings per Share | Earnings per Share The Company computes loss per share in accordance with ASC 105, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. With the exception of the convertible notes payable discussed in Note 3, the Company had no potentially dilutive debt or equity instruments issued or outstanding during the years ended December 31, 2016 and 2015. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of its operations. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of tax expense | For the Years Ended December 31, 2016 2015 Tax expense (benefit) at the statutory rate $ (29,986 ) $ (18,866 ) State income taxes, net of federal income tax benefit (4,851 ) (3,052 ) Non-deductible items – – Change in valuation allowance 34,837 21,918 Total $ – $ – |
Schedule of components of deferred tax assets and liabilities | December 31, 2016 2015 Deferred tax assets: Net operating loss carryforward $ 71,095 $ 36,258 Stock options – – Total gross deferred tax assets 71,095 36,258 Less: Deferred tax asset valuation allowance (71,095 ) (36,258 ) Total net deferred tax assets – – Deferred tax liabilities: Depreciation – – Total deferred tax liabilities – – Total net deferred taxes $ – $ – |
NATURE AND CONTINUANCE OF OPE16
NATURE AND CONTINUANCE OF OPERATIONS (Detail Textuals) - USD ($) | 1 Months Ended | ||
Aug. 28, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Nature And Continuance Of Operations [Line Items] | |||
Common stock, shares authorized | 75,000,000 | 75,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Accumulated deficit | $ (225,950) | $ (137,754) | |
James P. Geiskopf | Common Stock | |||
Nature And Continuance Of Operations [Line Items] | |||
Stock issued for cash (in shares) | 3,000,000 | ||
Stock issued for cash value | $ 20,000 | ||
Percentage of holding issued and outstanding common stock | 50.00% |
NOTE PAYABLE (Detail Textuals)
NOTE PAYABLE (Detail Textuals) | Sep. 14, 2015USD ($)Subscriber$ / shares | Dec. 31, 2016USD ($)Subscriber$ / shares | Jun. 06, 2016USD ($) |
Debt Instrument [Line Items] | |||
Repayments of unsecured note | $ 20,000 | ||
Note restructuring fee | 1,500 | ||
First Note | |||
Debt Instrument [Line Items] | |||
Principal amount of note | $ 73,825 | ||
Number of subscribers | Subscriber | 1 | ||
Term of convertible note | 5 years | ||
Rate of interest on convertible note | 18.00% | ||
Convertible note, conversion price per share (in dollars per share) | $ / shares | $ 0.03 | ||
Outstanding debt | 91,735 | ||
Proceeds from subscriber pursuant to loan agreement | 73,825 | ||
Accrued interest on loan | 17,910 | ||
Second Note | |||
Debt Instrument [Line Items] | |||
Principal amount of note | $ 50,000 | ||
Number of subscribers | Subscriber | 1 | ||
Term of convertible note | 5 years | ||
Rate of interest on convertible note | 18.00% | ||
Convertible note, conversion price per share (in dollars per share) | $ / shares | $ 0.03 | ||
Outstanding debt | $ 50,024 | ||
Proceeds from subscriber pursuant to loan agreement | 50,000 | ||
Accrued interest on loan | 24 | ||
Unsecured Note | |||
Debt Instrument [Line Items] | |||
Principal amount of note | $ 20,000 | ||
Third Note | |||
Debt Instrument [Line Items] | |||
Principal amount of note | $ 21,500 | ||
Number of subscribers | Subscriber | 1 | ||
Term of convertible note | 5 years | ||
Rate of interest on convertible note | 18.00% | ||
Convertible note, conversion price per share (in dollars per share) | $ / shares | $ 0.03 | ||
Outstanding debt | $ 21,511 | ||
Proceeds from subscriber pursuant to loan agreement | 21,500 | ||
Accrued interest on loan | 11 | ||
Repayments of unsecured note | 20,000 | ||
Note restructuring fee | $ 1,500 |
STOCKHOLDERS' DEFICIT (Detail T
STOCKHOLDERS' DEFICIT (Detail Textuals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 6,000,000 | 6,000,000 |
Common stock, shares outstanding | 6,000,000 | 6,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Tax expense (benefit) at the statutory rate | $ (29,986) | $ (18,866) |
State income taxes, net of federal income tax benefit | (4,851) | (3,052) |
Non-deductible items | ||
Change in valuation allowance | 34,837 | 21,918 |
Total |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 71,095 | $ 36,258 |
Stock options | ||
Total gross deferred tax assets | 71,095 | 36,258 |
Less: Deferred tax asset valuation allowance | (71,095) | (36,258) |
Total net deferred tax assets | ||
Deferred tax liabilities: | ||
Depreciation | ||
Total deferred tax liabilities | ||
Total net deferred taxes |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forwards | $ 225,950 | $ 137,754 |
Federal tax rate | 34.00% | 34.00% |
Valuation allowance for the remaining net deferred tax assets | $ 34,837 | $ 21,918 |
SUBSEQUENT EVENTS (Detail Textu
SUBSEQUENT EVENTS (Detail Textuals) - Unsecured Convertible Note | Mar. 02, 2017USD ($)Subscriber$ / shares | Jun. 06, 2016USD ($) |
Subsequent Event [Line Items] | ||
Principal amount of note | $ 20,000 | |
Subsequent event | ||
Subsequent Event [Line Items] | ||
Principal amount of note | $ 20,000 | |
Number of subscribers | Subscriber | 1 | |
Term of convertible note | 5 years | |
Rate of interest on convertible note | 18.00% | |
Convertible note, conversion price per share (in dollars per share) | $ / shares | $ 0.03 |