Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Nov. 21, 2019 | Jun. 29, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | Dream Homes & Development Corp. | ||
Entity Central Index Key | 0001518336 | ||
Document Type | 10-K/A | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | true | ||
Amendment Description | Dream Homes & Development Corporation (the Company) is filing this Amendment No. 2 on Form 10-K/A ("Amendment") to amend its annual report on Form 10-K for the fiscal years ended December 31, 2018 originally filed with the U.S. Securities and Exchange Commission ("SEC") on April 25, 2019 (the "Original Filing"). The originally filed 10-K/A was not audited by the Company's independent registered public accounting firm. The Company subsequently terminated its prior independent registered public accounting firm and engaged Boyle, CPA LLC ("Boyle") as its' new independent registered public accounting firm. This filing was audited by the Company's independent registered public accounting firms. | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,518,481 | ||
Entity Common Stock, Shares Outstanding | 24,200,993 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash | $ 118,687 | $ 244,684 |
Accounts receivable, net of allowance for doubtful accounts ($29,838) | 349,218 | 111,189 |
Costs and estimated earnings in excess of billings | 105,847 | 69,499 |
Total current assets | 573,752 | 425,372 |
PROPERTY AND EQUIPMENT, net | 10,731 | 9,144 |
OTHER ASSETS | ||
Accounts receivable, net of allowance for doubtful accounts ($43,000) | 32,000 | 32,000 |
Security deposit | 2,200 | 2,200 |
Deposits and costs coincident to acquisition of land for development | 360,967 | 210,129 |
Total assets | 979,650 | 678,845 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 317,634 | 391,003 |
Billings in excess of costs and estimated earnings | 254,208 | 78,483 |
Income taxes payable | 21,525 | |
Loans payable | 20,000 | |
Loans payable to related parties | 52,243 | 14,743 |
Total current liabilities | 665,610 | 484,229 |
STOCKHOLDERS' EQUITY | ||
Preferred stock; 5,000,000 shares authorized, $.001 par value, as of December 31, 2018 and 2017, there are no shares outstanding | ||
Common stock; 70,000,000 shares authorized, $.001 par value, as of December 31, 2018 and 2017, there are 24,200,993 and 24,000,953 shares outstanding , respectively; and 16,000 and 200,040 shares committed not yet issued at December 31, 2018 and 2017, respectively | 24,201 | 24,201 |
Additional paid-in capital | 1,671,988 | 1,554,144 |
Accumulated deficit | (1,382,149) | (1,383,729) |
Total stockholders' equity | 314,040 | 194,616 |
Total liabilities and stockholders' equity | $ 979,650 | $ 678,845 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts, current | $ 29,838 | $ 29,838 |
Net of allowance for doubtful accounts, non current | $ 43,000 | $ 43,000 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares outstanding | ||
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares outstanding | 24,200,993 | 24,000,953 |
Common stock, shares subscribed but unissued | 16,000 | 200,040 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | ||
Construction contracts | $ 2,574,953 | $ 2,970,246 |
Cost of construction contracts | 1,506,629 | 1,949,101 |
Gross profit | 1,068,324 | 1,021,145 |
Operating Expenses: | ||
Selling, general and administrative, including stock based compensation of $117,844 and $66,864, respectively | 1,040,306 | 1,037,886 |
Depreciation expense | 4,913 | 2,656 |
Total operating expenses | 1,045,219 | 1,040,542 |
Income (loss) from operations | 23,105 | (19,397) |
Total other expenses-net | ||
Net income (loss) before income taxes | 23,105 | (19,397) |
Provision for income taxes | 21,525 | |
Net income (loss) | $ 1,580 | $ (19,397) |
Basic and diluted income (loss) per common share | $ 0 | $ 0 |
Weighted average common shares outstanding-basic and diluted | 24,200,993 | 23,917,680 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Stock based compensation | $ 117,844 | $ 66,864 |
Selling, General and Administrative [Member] | ||
Stock based compensation | $ 117,844 | $ 66,864 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficiency) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2016 | $ 23,833 | $ 1,407,855 | $ (1,364,332) | $ 67,356 |
Balance, shares at Dec. 31, 2016 | 23,833,524 | |||
Issuance of restricted common stock for investor relations and consulting services | $ 56 | 2,744 | 2,800 | |
Issuance of restricted common stock for investor relations and consulting services, shares | 56,000 | |||
Issuance of restricted common stock to Dream Homes Ltd for deposit on land | $ 71 | 9,929 | 10,000 | |
Issuance of restricted common stock to Dream Homes Ltd for deposit on land, shares | 71,429 | |||
Issuance of restricted common stock to Dream Homes Ltd in exchange for vehicles | $ 40 | 5,960 | 6,000 | |
Issuance of restricted common stock to Dream Homes Ltd in exchange for vehicles, shares | 40,000 | |||
Issuance of restricted common stock to Dream Homes Ltd for rights to land acquisition contract (committed not issued) | $ 162 | 48,493 | 48,655 | |
Issuance of restricted common stock to Dream Homes Ltd for rights to land acquisition contract (committed not issued), shares | 162,200 | |||
Issuance of common stock for cash per Subscription Agreement (committed not issued) | $ 12 | 4,988 | 5,000 | |
Issuance of common stock for cash per Subscription Agreement (committed not issued), shares | 12,500 | |||
Issuance of common stock for lumber credit per Subscription Agreement -committed not issued (as restated) | $ 27 | 10,111 | 10,138 | |
Issuance of common stock for lumber credit per Subscription Agreement -committed not issued (as restated), shares | 25,340 | |||
Expense relating to 750,000 stock warrants issued to Company's executive team | 64,064 | 64,064 | ||
Net loss | (19,397) | (19,397) | ||
Balance at Dec. 31, 2017 | $ 24,201 | 1,554,144 | (1,383,729) | 194,616 |
Balance, shares at Dec. 31, 2017 | 24,200,993 | |||
Expense relating to 750,000 stock warrants issued to Company's executive team | 117,844 | 117,844 | ||
Net loss | 1,580 | 1,580 | ||
Balance at Dec. 31, 2018 | $ 24,201 | $ 1,671,988 | $ (1,382,149) | $ 314,040 |
Balance, shares at Dec. 31, 2018 | 24,200,993 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Deficiency) (Parenthetical) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Executive Team [Member] | ||
Stock warrants issued during the period | 750,000 | 750,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 1,580 | $ (19,397) |
Adjustments to reconcile net income (loss) to net cash provided (used) in operating activities: | ||
Amortization of debt discounts | ||
Depreciation expense | 4,913 | 2,656 |
Stock-based compensation | 117,844 | 66,864 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (238,029) | (27,537) |
Costs and estimated earnings in excess of billings | (36,348) | (11,793) |
Accounts payable and accrued liabilities | (73,369) | 306,465 |
Billings in excess of costs and estimated earnings | 175,725 | (204,631) |
Income taxes payable | 21,525 | |
Net cash provided (used) in operating activities | (26,159) | 112,627 |
INVESTING ACTIVITIES | ||
Purchase of office equipment and vehicles | (6,500) | (5,800) |
Security deposit | (2,200) | |
Deposits and costs coincident to acquisition of land for development | (150,838) | (131,472) |
Net cash (used) in investing activities | (157,338) | (139,472) |
FINANCING ACTIVITIES | ||
Proceeds from sale of common stock | 5,000 | |
Proceeds from loans payable to related parties | 37,500 | |
Proceeds from loans payable | 20,000 | |
Net cash provided by financing activities | 57,500 | 5,000 |
NET INCREASE (DECREASE) IN CASH | (125,997) | (21,845) |
CASH BALANCE, BEGINNING OF PERIOD | 244,684 | 266,709 |
CASH BALANCE, END OF PERIOD | 118,687 | 244,684 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | ||
Income taxes paid | ||
Non-Cash Investing and Financing Activities: | ||
Issuance of 71,429 restricted shares of common stock to Dream Homes, Ltd. for refundable deposit under contract rights to develop land | 10,000 | |
Issuance of common stock to Dream Homes, Ltd. for vehicles | 6,000 | |
Common stock committed to be issued for rights to property acquisition contract | 48,655 | |
Common stock committed to be issued for lumber credit per Subscription Agreement | $ 10,138 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | 12 Months Ended |
Dec. 31, 2017shares | |
Statement of Cash Flows [Abstract] | |
Issuance of restricted shares of common stock to Dream Homes, Ltd. for refundable deposit under contract rights to develop land | 71,429 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 - Significant Accounting Policies Nature of Operations Dream Homes & Development Corporation is a regional builder and developer of new single-family homes and subdivisions, as well as a market leader in coastal construction, elevation and mitigation. In the five years that have passed since Superstorm Sandy flooded 30,000 owner-occupied homes, Dream Homes has helped hundreds of homeowners to rebuild or raise their homes to comply with new FEMA requirements. In addition to the coastal construction market, Dream Homes will continue to pursue opportunities in new single and multi-family home construction, with 3 new developments totaling 119 units under contract and in development. Dream Homes’ operations will include the development and sale of a variety of residential communities, including construction of semi-custom homes, entry-level and first time move-up single-family and multi-family homes. In addition to the New Jersey market, the Company, through its Dream Building LLC subsidiary, has become licensed in Florida to pursue recent opportunities for elevation, restoration, renovation and new construction brought about by the damage caused by recent hurricanes. Initial markets to be targeted are located primarily in the southwest portion of the state, between Naples and Cape Coral. In addition to the Company’s construction operations, the Company holds a bi-monthly “Dream Homes Nearly Famous Rebuilding Seminar”, and publishes an informational blog known as the “Dream Homes Rebuilding Blog”. The Rebuilding Seminar is an educational tool for homeowners who need rebuilding or renovations. This seminar has been presented steadily since early 2013, and is designed to educate and assist homeowners in deciphering the confusion about planning and executing complex residential construction projects. A professional team attends each seminar and presents on a diverse variety of topics, including expert advice from architects, engineers, finance people, attorneys, project managers, elevation professionals and builder/general contractors. The “Dream Homes Rebuilding Blog” is an educational platform written by Vincent Simonelli, which offers comprehensive advice on all aspects of construction, finance, development and real estate. The Blog is located at http://blog.dreamhomesltd.com. History Dream Homes & Development Corporation was originally incorporated as The Virtual Learning Company, Inc. (“Virtual Learning”) on January 6, 2009 as a Nevada corporation with 75,000,000 shares of capital stock authorized, of which 70,000,000 shares are common shares ($.001 par value), and 5,000,000 shares are preferred shares ($.001 par value). On March 14, 2017, Virtual Learning changed its name to Dream Homes & Development Corporation (“DHDC”). DHDC maintains a web site at www.dreamhomesltd.com http://blog.dreamhomesltd.com. Principles of Consolidation The consolidated financial statements include the accounts of DHDC and its wholly owned subsidiary DBL (collectively, the “Company”). All intercompany balances and transactions have been eliminated in consolidation. Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over an estimated useful life of five years. Repairs and maintenance costs are expensed as incurred, and renewals and betterments are capitalized. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. Fair Value of Financial Instruments Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three-level hierarchy used in measuring fair value, as follows: ● Level 1 inputs are quoted prices available for identical assets and liabilities in active markets. ● Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data. ● Level 3 inputs are less observable and reflect our own assumptions. Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and loans payable to related parties. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, and loans payable to related parties approximates fair value because of their short maturities. Construction Contracts Revenue recognition: The Company recognizes construction contract revenue using the percentage-of-completion method, based primarily on contract cost incurred to date compared to total estimated contract cost. Cost of revenue includes an allocation of depreciation, amortization and general overhead cost. Changes to total estimated contract cost or losses, if any, are recognized in the period in which they are determined. The Company generally provides limited warranties for work performed under its construction contracts with periods typically extending for a limited duration following substantial completion of the Company’s work on a project. The Company classifies construction-related receivables and payables that may be settled in periods exceeding one year from the balance sheet date, if any, as current assets and liabilities consistent with the length of time of its project operating cycle. For example: ● Costs and estimated earnings in excess of billings represent the excess of contract costs and profits (or contract revenue) over the amount of contract billings to date and are classified as a current asset. ● Billings in excess of costs and estimated earnings represent the excess of contract billings to date over the amount of contract costs and profits (or contract revenue) recognized to date and are classified as a current liability. Costs and estimated earnings in excess of billings result when either: 1) costs are incurred related to certain claims and unapproved change orders, or 2) the appropriate contract revenue amount has been recognized in accordance with the percentage-of-completion accounting method, but a portion of the revenue recorded cannot be billed currently due to the billing terms defined in the contract. Claims occur when there is a dispute regarding both a change in the scope of work and the price associated with that change. Unapproved change orders occur when there is a dispute regarding only the price associated with a change in scope of work. For both claims and unapproved change orders, the Company recognizes revenue, but not profit, when it is determined that recovery of incurred cost is probable and the amounts can be reliably estimated. Change in Estimates: The Company’s estimates of contract revenue and cost are highly detailed and many factors change during a contract performance period that result in a change to contract profitability. These factors include, but are not limited to, differing site conditions: availability of skilled contract labor: performance of major material suppliers and subcontractors: on-going subcontractor negotiations and buyout provisions: unusual weather conditions: changes in the timing of scheduled work: change orders: accuracy of the original bid estimate: changes in estimated labor productivity and costs based on experience to date: achievement of incentive-based income targets: and the expected, or actual, resolution terms for claims. The factors that cause changes in estimates vary depending on the maturation of the project within its lifecycle. For example, in the ramp-up phase, these factors typically consist of revisions in anticipated project costs and during the peak and close-out phases, these factors include the impact of change orders and claims as well as additional revisions in remaining anticipated project costs. Generally, if the contract is at an early stage of completion, the current period impact is smaller than if the same change in estimate is made to the contract at a later stage of completion. Management focuses on evaluating the performance of contracts individually and uses the cumulative catch-up method to account for revisions in estimates. Material changes in estimates are disclosed in the notes to the consolidated financial statements. Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the provision for income tax in the statements of operations. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance when realization of the assets is not reasonably assured. The Company recognizes in its financial statements the impact of tax positions that meet a “more likely than not” threshold, based on the technical merits of the position. The tax benefits recognized from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Net Income (Loss) Per Common Share Basic net income (basic net loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed using the weighted average number of common shares outstanding and potentially dilutive securities outstanding during the period. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification “ASC” Topic 606). The purpose of this ASU is to converge revenue recognition requirements per GAAP and International Financial Reporting Standards (“IFRS”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this ASU were originally effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption not permitted by the FASB; however, in August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date after public comment respondents supported a proposal to delay the effective date of this ASU to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We adopted this ASU on January 1, 2018 and adoption of this ASU did not have a material impact on our financial position, results of operations and cash flows. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) Certain other accounting pronouncements have been issued by the FASB and other standard setting organizations which are not yet effective and therefore have not yet been adopted by the Company. The impact on the Company’s financial position and results of operations from adoption of these standards is not expected to be material. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 2 - Property and Equipment Property and equipment is summarized as follows: December 31, 2018 December 31, 2017 Office equipment $ 4,115 $ 4,115 Vehicles 31,065 24,565 Less: Accumulated depreciation (24,449 ) (19,536 ) Property and Equipment- net $ 10,731 $ 9,144 Depreciation expense for the years ended December 31, 2018 and 2017 was $ 4,913 and $2,656, respectively. |
Deposits and Costs Coincident t
Deposits and Costs Coincident to Acquisition of Land for Development | 12 Months Ended |
Dec. 31, 2018 | |
Deposits And Costs Coincident To Acquisition Of Land For Development | |
Deposits and Costs Coincident to Acquisition of Land for Development | 3-Deposits and Costs Coincident to Acquisition of Land for Development Deposits and costs coincident to acquisition of land for development are summarized as follows: December 31, 2018 December 31, 2017 Lacey Township, New Jersey, Marina contract: Deposit $ 25,000 $ 25,000 Site engineering, permits and other costs: 49,959 23,657 Total Marina Contract 74,959 48,657 Other Deposits: Clayton-80 lots and 120 apartments 9,920 - 71 Sheridan Avenue 79,150 - Bayville-20 units 2,674 - Other 2,005 - Lacey Township, New Jersey, Pines contract: Deposit - 10,000 Cost to acquire contract 10,000 10,000 Site engineering, permits, and other costs 109,265 111,215 Total Pines contract 119,265 131,215 Berkeley Township, New Jersey, Tallwoods contract: Deposit 10,000 10,000 Site engineering, permits, and other costs 62,994 20,257 Total Tallwoods contract 72,994 30,257 Total $ 360,967 $ 210,129 Lacey Township, New Jersey, “Dream Homes at the Pines”, Contract On December 15, 2016, the Company acquired from General Development Corp. (“GDC”) rights to a contract to purchase over 9 acres of undeveloped land without amenities in Lacey Township, New Jersey (the “Lacey Contract or Dream Homes at the Pines”) for $15,000 cash (paid in December 2016) and 100,000 restricted shares of Company common stock (issued in April 2017) valued at $5,000. GDC acquired the rights to the contract from DHL on December 14, 2016 for $10,000 cash. As discussed in Note 9, Commitments and Contingencies under Line of Credit, the Company also has an available line of credit of $50,000 with GDC. The Lacey Contract between DHL and the seller of the land was dated March 18, 2016 and provides for a $1,000,000 purchase price with closing on or about 60 days after memorialization of final Development Approvals has been obtained. DHL paid the seller a $10,000 refundable deposit in March 2016 pursuant to the Lacey Contract. In the event the transaction has not closed on at least a portion of the property within 24 months of the completion of the Due Diligence Period (as may be extended by two 6- month extensions), the seller has the option of terminating the contract. Notwithstanding this provision, the Company retains the right at all times to waive any remaining contingencies and proceed to close on the property. At this time, the contract is in good standing and there is no risk of cancellation. As per the contract, the Company is required to close on this property no later than March 18, 2019, which date is inclusive of the 24-month development period, and 2 additional 6-month extensions. Due diligence for the above property was completed as of May 17, 2016, and all costs were incurred by Dream Homes Ltd., which was in the contract for the property at the time. No additional costs for due diligence have been incurred by the Company, nor are any anticipated. The Company will incur all current costs associated with this property necessary to obtain all approvals, acquire the land, install the infrastructure and prepare the property to commence construction. In order to obtain all developmental approvals and be prepared to begin installing infrastructure, various permits and engineering work are required. These permits include but are not limited to township subdivision, county, municipal utility authority, CAFRA (NJ Department of Environmental Protection) and NJ Department of Transportation. To date, design engineering has been completed and a CAFRA application has been prepared and submitted to the environmental scientist, along with a check for $36,750 payable to the NJ DEP. Application for this permit was made in April 2017. As of this date, the CAFRA application has been put on hold pending a determination if the township will be approved by the State of New Jersey for a CAFRA Town Center designation. A Lacey Township Planning Board meeting was held on December 11, 2017. Additional information was requested from the board and the next meeting will be scheduled upon receipt of outside agency permits and the other requested information. It is anticipated that complete development approvals will cost approximately $50,000 more to complete. In addition to these approval costs and acquisition costs, infrastructure costs are anticipated to cost approximately $1,000,000. The total amount of funding required to acquire and make this property ready for home construction is approximately $2,090,000 as of December 31, 2017. The Company may need to seek loans from banks to finance this project. As part of their financing agreements, the banks typically require Vincent Simonelli to personally guarantee these loans. If Mr. Simonelli cannot qualify as a guarantor and there is no one other than him in the Corporation to provide those guarantees, the financing of the deal may be adversely affected. The exact amount of funding required for this particular property is not clear at the present time but will be determined when full approvals have been obtained and the Company is prepared to take title to the property. Berkeley Township, New Jersey, “Dream Homes at Tallwoods”, Contract On March 1, 2017, the Company acquired from DHL rights to a contract to purchase over 7 acres of land in Berkeley Township, NJ (the “Tallwoods Contract or Dream Homes at Tallwoods”) for 71,429 restricted shares of Company common stock (issued in April 2017). The Tallwoods Contract between DHL and the seller of the land was dated January 5, 2017 and provides for a $700,000 purchase price with closing on or about 60 days after final development approvals have been obtained and memorialized. DHL paid the seller a refundable $10,000 deposit in January 2017 pursuant to the Tallwoods contract. The due diligence period associated with this property expired on March 4, 2017 and all costs associated with same were paid by Dream Homes Ltd. prior to the expiration date. The Company will incur no further costs related to the due diligence aspect of this purchase. The Company will incur all current and future costs associated with this property necessary to obtain all approvals, acquire the land and prepare the property to commence construction. The land is currently improved with streets and all public utilities in place. As such, the necessary steps required to bring the property through the approval process involve primarily design engineering. Since the property is on an improved street, a major subdivision application will be filed with the township, which will create 13 conforming buildable lots from the existing single 7 acre parcel. Accordingly, the remaining costs will primarily involve engineering and approval costs, as opposed to costs associated with the installation of infrastructure. At this time, the Company estimates that the total engineering and approval costs will be approximately $40,000. The amount of money required to purchase the property is $700,000 of which $10,000 is currently on deposit. The Company has made application to the Berkeley Township Zoning Board. In the event the transaction has not closed on at least a portion of the Property within 12 months of the completion of the Due Diligence Period (as may be extended by two 6-month extensions), the seller has the option of terminating the contract. Notwithstanding this provision, the Company retains the right at all times to waive any remaining contingencies and proceed to close on the property. The Company may need to seek loans from banks to finance this project. As part of their financing agreements, the banks typically require Vincent Simonelli to personally guarantee these loans. If Mr. Simonelli cannot qualify as a guarantor and there is no one other than him in the Corporation to provide those guarantees, the financing of the deal may be adversely affected. The exact amount of funding required for this particular property is not clear at the present time but will be determined when full approvals have been obtained and the Company is prepared to take title to the property. Lacey Township, New Jersey, “Dream Homes at Forked River”, Marina Contract The Company has acquired the rights to a purchase contract via contract assignment for 48 waterfront townhomes with boat slips in Lacey, NJ. The project is currently in the approval process and significant engineering, environmental, traffic and architectural work has been completed. The property is a waterfront property, and is partially improved with all boat slips currently installed, the Department of Transportation permit received and the curb cut from Route 9 in place. On December 8, 2017, the Company acquired from DHL rights to a contract to purchase over +/- 7.5 acres of land in Lacey Township, NJ (the “Marina Contract or Dream Homes at Forked River”) for 162,200 restricted shares of Company common stock (committed but not issued as of April 16, 2018). The Contract between DHL and the seller of the land was dated February 24, 2016 and provides for a $2,166,710 purchase price with closing on or about 60 days after final development approvals have been obtained and memorialized. DHL paid the seller a refundable $25,000 deposit in February 2016 pursuant to the Marina contract. The due diligence period associated with this property expired on May 1, 2016 and all costs associated with same were paid by Dream Homes Ltd. prior to the expiration date. The Company will incur no further costs related to the due diligence aspect of this purchase. The Company will incur all current and future costs associated with this property necessary to obtain all approvals, acquire the land and prepare the property to commence construction. The land is currently approved for a marina and it is the Company’s intention to modify the approvals to a townhome use, as per the ordinance. The property is currently unimproved. As such, the necessary steps required to bring the property through the approval process involve design engineering as well as environmental approvals. Accordingly, the remaining costs will primarily involve engineering, legal and approval costs. At this time, the Company estimates that the total engineering and approval costs will be approximately $100,000. The amount of money required to purchase the property is $2,430,000 of which $25,000 is currently on deposit. The Company may need to seek loans from banks to finance this project. As part of their financing agreements, the banks typically require Vincent Simonelli to personally guarantee these loans. If Mr. Simonelli cannot qualify as a guarantor and there is no one other than him in the Corporation to provide those guarantees, the financing of the deal may be adversely affected. The exact amount of funding required for this particular property is not clear at the present time but will be determined when full approvals have been obtained and the Company is prepared to take title to the property. Little Egg Harbor Township, New Jersey, “Dream Homes at Radio Road”, Contract On March 14, 2018, the Company signed a contract to purchase 4 improved lots in Little Egg Harbor Township, NJ (the “Dream Homes at Radio Road”) for a total of $260,000. The Contract between the Company and the seller of the land provides for a $65,000 per lot purchase price with closing occurring on a rolling basis, as each house is built and sold. In addition, the Company has obtained a term sheet on April 5, 2018 and is waiting for a formal commitment from 1 st The Company intends to begin construction in the second quarter and the homes are projected to sell in the $350,000 - $375,000 range. Glassboro Township, New Jersey – Robin’s Nest Solar Farm On May 28, 2018, the Company signed a contract to purchase a 700 KW property to be developed as a solar farm in Glassboro, NJ. The purchase price is $900,000 and the contract is subject to obtaining funding for the solar array as well as a portion of the purchase price. There is also a PPA (power production agreement) in place with a nursing home adjacent to the property, to purchase the entire electrical output for the next 20 years. In early August, a funding proposal was submitted to Republic Bank, which is a local lender, and discussions are ongoing. 71 Sheridan Street, Waretown, NJ – Property purchased for renovation and sale On July 12, 2018, the Company purchased a single-family home property located at 71 Sheridan Street in Waretown, NJ. The home was originally damaged by Storm Sandy, and requires elevation and renovation in order to be brought into compliance with the latest FEMA flood zone requirements. The Company intends to complete a full height elevation, enclose the lower level, install 2 levels of deck facing the water, renovate the house completely and sell the property. Louis Avenue – Bayville, NJ – Property being developed In October of 2018, the company entered into a contract to develop and acquire 20 townhouse lots in Bayville NJ. Engineering and approvals are currently in process. |
Loans Payable to Related Partie
Loans Payable to Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Loans Payable to Related Parties | 4-Loans Payable to Related Parties Loans payable to related parties is summarized as follows: December 31, 2018 December 31, 2017 Loans payable to chief executive officer $ 29,025 $ 11,525 Loans payable to GPIL (see Note 5) 3,118 3,118 Loan payable to DHL 20,100 100 Total $ 52,243 $ 14,743 All the loans above are non-interest bearing and due on demand. |
Common Stock Issuances
Common Stock Issuances | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Common Stock Issuances | 5 - Common Stock Issuances On February 22, 2017, DHDC issued 56,000 restricted shares of common stock to Green Chip Investor Relations pursuant to an Investor Relations and Consulting Services Agreement (see Note 7). The 56,000 restricted shares were valued at $2,800 (or $.05 per share), which amount was expensed in the three months ended March 31, 2017. On March 1, 2017, DHDC committed to issue 71,429 restricted shares of common stock (issued April 24, 2017) to DHL valued at $10,000, representing the amount of the refundable deposit on land made by DHL to the Seller in January 2017 for the Berkeley Township New Jersey contract (see Note 3). On March 14, 2017, DHL assigned 275,000 restricted shares of Company common stock it held to a minority stockholder of DHL who had previously been assigned 100,000 shares of Company common stock on October 13, 2016 This minority shareholder of DHL had contributed $100,000 out of approximately $500,000 in a private placement of common stock of DHL in 2010. In addition, this minority stockholder of DHL also received 275,000 restricted shares from DHL in 2011 for consulting services. Accordingly, the Company has not deemed it appropriate to measure stock-based compensation relating to the 100,000 shares assigned by DHL to its minority stockholder. On April 26, 2017, DHDC issued 100,000 shares of restricted stock to General Development Corp. as payment of an assignment fee related to the 58 unit townhouse development in Lacey Township, NJ (see Note 3). On July 12, 2017, DHDC issued 40,000 restricted shares of DHDC’s common stock to Dream Homes, Ltd. (“DHL”) in exchange for vehicles owned by DHL. The transaction reflected $6,000 net carrying value of the assets on DHL’s books at July 12, 2017. On September 21, 2017, DHL assigned 25,000 restricted shares of Company common stock it held to the Secretary of both DHDC and DHL for services rendered to DHL. Accordingly, no stock-based compensation was recognized by DHDC. On December 8, 2017, DHDC committed to issue 162,200 restricted shares of common stock to DHL valued at $48,658 (DHL’s historical cost of the assets being assigned), for the assignment of a contract to purchase property from DHL for the Lacey Township New Jersey contract (see Note 3). On December 11, 2017, DHL assigned 100,000 restricted shares of Company common stock it held to the Company Securities Counsel of both DHDC and DHL in settlement of certain DHL accounts payable due him. Accordingly, no stock-based compensation was recognized by DHDC. On December 27, 2017, DHDC committed to issue 12,500 restricted shares of DHDC’s common stock for cash proceeds of $ 5,000 at $.40 per share per the Subscription Agreement. On December 29, 2017, DHDC committed to issue 25,340 restricted shares of DHDC’s common stock for settlement of $ 10,138 accounts payable at $.40 per share. On January 31, 2018, DHDC committed to issue 16,000 restricted shares of DHDC’s common stock for cash proceeds of $11,400 at $ .40 per share per the subscription agreement. On February 9, 2018, DHL assigned 40,000 restricted shares of Company common stock it held to a minority stockholder of DHL. This minority stockholder of DHL had contributed $10,000 out of approximately $500,000 in a private placement of common stock of DHL in 2010. In addition, this minority stockholder of DHL also received 30,000 restricted shares of DHL common stock in 2011 for legal services. Accordingly, no stock-based compensation was recognized by DHDC for this assignment of 40,000 shares. On February 9, 2018, DHL assigned 25,000 restricted shares of Company common stock it held to the Secretary of both DHDC and DHL for accounting and administrative services rendered to DHL. Accordingly, no stock-based compensation was recognized by DHDC for this assignment of 25,000 shares. On February 9, 2018, DHL assigned 25,000 restricted shares of Company common stock it held to a director of DHDC and service provider to DHL for legal services provided to DHL. Accordingly, no stock-based compensation was recognized by DHDC for this assignment of 25,000 shares. On February 26, 2018 DHDC issued 12,500 restricted shares of DHDC’s common stock for cash proceeds of $ 5,000 at $.40 per share per the Subscription Agreement. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6 – Income Taxes The provisions for (benefit from) income taxes differ from the amounts computed by applying the statutory United States Federal income tax rate of 21% for 2018 and 35% for 2017 to income (loss) before income taxes. The sources of the differences follow: Year ended Year ended Expected tax at 21% (and 35%, respectively) $ 4,852 $ (6,789 ) State income taxes, net of federal income tax benefit 1,094 - Non-deductible stock-based compensation 24,747 23,402 Other (7,547 ) - Remeasurement of deferred income tax assets from 35% to 21% (a) - 1,080 Change in valuation allowance/NOL used (1,621 ) (17,693 ) Provision for (benefit from) income taxes $ 21,525 $ - (a) As a result of the Tax Cuts and Jobs Act (Tax Legislation) enacted on December 22, 2017, the United States corporate income tax rate is 21% effective January 1, 2018. Accordingly, we reduced our deferred income tax asset relating to our net operating loss carryforward (and the valuation allowance thereon) by $1,080 from $2,701 (at a statutory United States Federal income tax rate of 35%) to $1,621 ( at a statutory United States Federal income tax rate of 21%) as of December 31, 2017 The significant components of DHDC’s deferred tax asset as of December 31, 2018 and December 31, 2017 are as follows: December 31, 2018 December 31, 2017 Deferred tax assets: Net operating loss carry forward $ - $ 1,621 Valuation allowance - (1,621 ) Net deferred tax asset $ - $ - As of December 31, 2018, the Company has no available net operating loss carryforward. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7- Commitments and Contingencies Construction Contracts As of December 31, 2018, Dream Building, LLC was committed under 18 construction contracts outstanding with home owners with contract prices totaling $ 2,764,508, which are being fulfilled in the ordinary course of business. None of these construction projects are expected to take significantly in excess of one year to complete from commencement of construction. The Company has no significant commitments with material suppliers or subcontractors that involve any sums of substance or, of long term duration at the date of issuance of these financial statements. Employment Agreements On April 28, 2017, DHDC executed an Employment Agreement with its newly appointed Vice President of Business Development. The term of the agreement was from April 28, 2017 to December 31, 2020. This individual stopped working for the company at the end of 2018. On May 8, 2017, DHDC executed an Employment Agreement with its newly appointed Sales Manager. The term of the agreement is from May 8, 2017 to May 8, 2019 and is renewable thereafter at 1 year intervals based on certain sales targets. The agreement provides for compensation based on sales. For the years ended December 31, 2018 and 2017, sales commissions expense pursuant to these two employment agreements were $56,164 and $75,746, respectively. Lease Agreements On June 20, 2017, DHDC executed a lease for office and storage space located at 2109 Bridge Avenue, Point Pleasant, New Jersey. The term of the Lease is five years from June 20, 2017 to June 20, 2022 with two (2) five (5) year options to renew. The Lease provides for monthly rent commencing August 20, 2017 at $1,200 per month until the earlier of completion of upstairs offices or November 20, 2017, at which time the monthly rent increases to $2,200 per month. In May of 2018, the monthly rent was reduced to $1,000 per month. Assuming DHDC is current in all rent and other charges, DHDC has the option to cancel the Lease with 90 days written notice to Landlord. In October of 2018, DHDC entered into a lease agreement for a modular home showroom in Little Egg Harbor. The term is for 1 year, with 3 one-year options to renew. The amount of the lease is $18,000 and is payable in monthly installments of $1500. For the year ended December 31, 2018 and 2017, rent expense under these leases agreements was $36,400 and $11,000, respectively. Investor Relations Agreement On February 10, 2017, the Company entered into an Investor Relations and Consulting Services Agreement with an investor relations firm. The agreement expired on August 31, 2017 and provided for issuance of 56,000 restricted shares of common stock valued at $2,800 to the investor relations firm (stock issued on February 22, 2017) and $2,000 per month fees to be paid to the investor relations firm commencing March 2017.- For the years ended December 31, 2018 and 2017, consulting fees expense under this agreement was $2,000 and $12,150, respectively. Line of Credit On September 15, 2016, DHDC established a $50,000 line of credit with General Development Corp., a non-bank lender. Advances under the line bear interest at a rate of 12% payable monthly and the outstanding principal is due and payable in 60 months. The line is secured by the personal guarantee of the Company’s Chief Executive Officer. The agreement to fund automatically renews on a yearly basis as long as interest payments are current. To date, the Company has not received any advances under the line of credit. Private Placement On November 3, 2017, the Company released a Private Placement Memorandum, which consists of an equity and debt offering for up to $5,000,000 in new capital. This capital will be utilized for acquisition and development of several of the properties the Company has under contract, as well as expansion into the Florida market. The offering is comprised of Units for sale as well as convertible debt. Each Unit is priced at $.40 per common share and includes 1 warrant to purchase an additional share of common stock for $.60 within 3 years of the date of Unit purchase. The convertible debt is offered at an 8% coupon, paid quarterly, has a maturity of 4 years and is convertible at $.75 per share. The offering was scheduled to close on January 2, 2018 and was extended unchanged by the Company to September 2, 2018. As of May 21, 2018, the Company has sold a total of 68,810 units and received $16,400 in cash ($5,000 in December 2017 for 12,500 units, $6,400 in January 2018 for 16,000 units and $5000 in February 2018 for 12,500 units) and was granted a reduction in accounts payable from a lumber vendor of 10,138 for 25,340 units issuable to the vendor as of December 31, 2017. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. Related Party Transactions Dream Homes Ltd. Allocated payroll The Company uses the services of Dream Homes Ltd. (DHL) personnel for its operations. For the years ended December 30, 2018 and 2017, selling, general and administrative expenses include $606,703 and $607,305, respectively, for the Company’s estimated share of DHL’s gross payroll and payroll taxes and include $65,888 and $54,000, respectively, salary paid to the Company’s Chief Executive Officer and $62,000 and $66,000, respectively salary paid to the Company’s Secretary and VP of Human Resources. At December 31, 2018 and 2017, accounts payable and accrued expenses include $0 and $130,152, respectively, due DHL for unpaid payroll reimbursement. Office Space The Company has occupied office space located in Forked River, New Jersey which is owned by an affiliated company. Commencing April 2017, the Company has paid DHL monthly rent of $2,000 for this office space. |
Stock Warrants
Stock Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stock Warrants | 9 - Stock Warrants On July 12, 2017, DHDC issued 750,000 stock warrants to various members of Dream Homes & Development Corporation’s executive team (including 500,000 to the Company’s Chief Executive Officer, 100,000 to the Company’s Secretary, and a total of 60,000 to the Company’s two other directors and 50,000 to a non-executive DHL project manager employee). These Warrants entitle the holder to purchase shares of Dream Homes & Development Corporation at $0.30 per share through July 20, 2020. These warrants vest to the Holder on a semi-annual basis over a 36-month period contingent upon Holder’s continued association with the Company. The $407,850 total fair value (calculated using the Black Scholes option pricing model and the following assumptions: (1) stock price of $0.60, (2) exercise price of $0.30, (3) dividend yield of 0%, (4) risk-free interest rate of 1.53%, (5) expected volatility of 171%, and (6) term of 3 years) of the 750,000 warrants is being expensed evenly over the 3 years requisite service period of the individuals that were granted these warrants commencing in July 2017. For the period July 12, 2017 through December 31, 2017, stock-based compensation attributable to the warrants was $ 64,064 using the above Black Scholes option pricing model. For the year ended December 31, 2018, stock-based compensation attributable to the warrants was $ 117,844 using the above Black Scholes option pricing model. Included within the 750,000 warrants described in the preceding paragraph are 20,000 warrants issued to the Company’s Vice President of Business Development that are not covered by the Employment Agreement dated April, 28, 2017 and 20,000 warrants issued to the Company’s Sales Manager that are not covered by the Employment Agreement dated May 8, 2017 (see Note 7). During the year ended December 31, 2018, 70,000 warrants were forfeited leaving 680,000 remaining. At December 31, 2018, the weighted average remaining life of the warrants was 1.53 years and the unrecognized cost was $187,876. |
Receivable from Arbitration and
Receivable from Arbitration and Settlement of in Process Customer Construction Contract in Dispute and Related Losses Recognized and Recorded by the Company | 12 Months Ended |
Dec. 31, 2018 | |
Receivable From Arbitration And Settlement Of In Process Customer Construction Contract In Dispute And Related Losses Recognized And Recorded By Company | |
Receivable from Arbitration and Settlement of in Process Customer Construction Contract in Dispute and Related Losses Recognized and Recorded by the Company | 10- Receivable from Arbitration and settlement of in process customer construction contract in dispute and related losses recognized and recorded by the Company The Company began work on a construction contract in the amount of $307,000 in August 2016. Through September 30, 2017 the Company billed the customer a total of $219,565, collected a total of $130,247 from the customer, and accordingly had a balance due from the customer of $89,318 at September 30, 2017. When the customer refused to pay the $89,318 balance, the Company ceased working on the contract in July 2017, filed a request for arbitration on October 3, 2017 and filed a Construction Lien Claim in October 18, 2017. On March 6, 2018, the American Arbitration Association awarded the Company $75,000 in connection with its claim. On July 10, 2018, the Superior Court of New Jersey confirmed the arbitration award and entered a judgement against the customer for the $75,000 and prejudgment interest of $488. To date the Company has not yet collected the $75,000 owing to it under the arbitration award. Based upon advice of Company Counsel it still has further legal actions available to it to ultimately facilitate payment from the customer of the $75,000 in the contract dispute. Accordingly, at December 31, 2017 the Company has recognized a loss of $14,318 on the write-down of accounts receivable from this customer which has been reflected as a reduction in revenue from construction contracts and gross profit for the year ended December 31, 2017. The property continues to be unoccupied because the contracted construction work has never been completed. Company counsel has also advised that the $75,000 judgment is a lien on any property that the customer owns at July 10, 2018. As of December 31, 2018, the property subject to the dispute has a market value of approximately $850,000 and has a prior mortgage lien with a balance of approximately $190,000. The Company expects to ultimately collect the $75,000 judgement in full. At December 31, 2017 there was a “Cost and estimated earnings in excess of billings” asset relating to the Arbitration Award disputed contract of $48,419 representing the difference between the amount billed to the customer of $219,565 and costs and estimated earnings of $267,984 through December 31, 2017. Accordingly, at December 31, 2017 the Company recognized a loss of $48,419 on the write-down of the “Costs and estimated earnings in excess of billings” asset attributable to this disputed customer contract, which has been reflected as a reduction in revenue from construction contracts and gross profit for the year ended December 31, 2017. Over the life of this contract the Company recognized a cumulative gross profit of $17,658 through December 31, 2017, which is net of a negative gross profit of ($9,012) for the year ended December 31, 2017, based upon the write-down of $14,318 described in the second preceding paragraph and the $48,419 write-down described in this paragraph, which aggregate to $62,737. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Dream Homes & Development Corporation is a regional builder and developer of new single-family homes and subdivisions, as well as a market leader in coastal construction, elevation and mitigation. In the five years that have passed since Superstorm Sandy flooded 30,000 owner-occupied homes, Dream Homes has helped hundreds of homeowners to rebuild or raise their homes to comply with new FEMA requirements. In addition to the coastal construction market, Dream Homes will continue to pursue opportunities in new single and multi-family home construction, with 3 new developments totaling 119 units under contract and in development. Dream Homes’ operations will include the development and sale of a variety of residential communities, including construction of semi-custom homes, entry-level and first time move-up single-family and multi-family homes. In addition to the New Jersey market, the Company, through its Dream Building LLC subsidiary, has become licensed in Florida to pursue recent opportunities for elevation, restoration, renovation and new construction brought about by the damage caused by recent hurricanes. Initial markets to be targeted are located primarily in the southwest portion of the state, between Naples and Cape Coral. In addition to the Company’s construction operations, the Company holds a bi-monthly “Dream Homes Nearly Famous Rebuilding Seminar”, and publishes an informational blog known as the “Dream Homes Rebuilding Blog”. The Rebuilding Seminar is an educational tool for homeowners who need rebuilding or renovations. This seminar has been presented steadily since early 2013, and is designed to educate and assist homeowners in deciphering the confusion about planning and executing complex residential construction projects. A professional team attends each seminar and presents on a diverse variety of topics, including expert advice from architects, engineers, finance people, attorneys, project managers, elevation professionals and builder/general contractors. The “Dream Homes Rebuilding Blog” is an educational platform written by Vincent Simonelli, which offers comprehensive advice on all aspects of construction, finance, development and real estate. The Blog is located at http://blog.dreamhomesltd.com. History Dream Homes & Development Corporation was originally incorporated as The Virtual Learning Company, Inc. (“Virtual Learning”) on January 6, 2009 as a Nevada corporation with 75,000,000 shares of capital stock authorized, of which 70,000,000 shares are common shares ($.001 par value), and 5,000,000 shares are preferred shares ($.001 par value). On March 14, 2017, Virtual Learning changed its name to Dream Homes & Development Corporation (“DHDC”). DHDC maintains a web site at www.dreamhomesltd.com http://blog.dreamhomesltd.com. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of DHDC and its wholly owned subsidiary DBL (collectively, the “Company”). All intercompany balances and transactions have been eliminated in consolidation. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over an estimated useful life of five years. Repairs and maintenance costs are expensed as incurred, and renewals and betterments are capitalized. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three-level hierarchy used in measuring fair value, as follows: ● Level 1 inputs are quoted prices available for identical assets and liabilities in active markets. ● Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data. ● Level 3 inputs are less observable and reflect our own assumptions. Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and loans payable to related parties. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, and loans payable to related parties approximates fair value because of their short maturities. |
Construction Contracts | Construction Contracts Revenue recognition: The Company recognizes construction contract revenue using the percentage-of-completion method, based primarily on contract cost incurred to date compared to total estimated contract cost. Cost of revenue includes an allocation of depreciation, amortization and general overhead cost. Changes to total estimated contract cost or losses, if any, are recognized in the period in which they are determined. The Company generally provides limited warranties for work performed under its construction contracts with periods typically extending for a limited duration following substantial completion of the Company’s work on a project. The Company classifies construction-related receivables and payables that may be settled in periods exceeding one year from the balance sheet date, if any, as current assets and liabilities consistent with the length of time of its project operating cycle. For example: ● Costs and estimated earnings in excess of billings represent the excess of contract costs and profits (or contract revenue) over the amount of contract billings to date and are classified as a current asset. ● Billings in excess of costs and estimated earnings represent the excess of contract billings to date over the amount of contract costs and profits (or contract revenue) recognized to date and are classified as a current liability. Costs and estimated earnings in excess of billings result when either: 1) costs are incurred related to certain claims and unapproved change orders, or 2) the appropriate contract revenue amount has been recognized in accordance with the percentage-of-completion accounting method, but a portion of the revenue recorded cannot be billed currently due to the billing terms defined in the contract. Claims occur when there is a dispute regarding both a change in the scope of work and the price associated with that change. Unapproved change orders occur when there is a dispute regarding only the price associated with a change in scope of work. For both claims and unapproved change orders, the Company recognizes revenue, but not profit, when it is determined that recovery of incurred cost is probable and the amounts can be reliably estimated. Change in Estimates: The Company’s estimates of contract revenue and cost are highly detailed and many factors change during a contract performance period that result in a change to contract profitability. These factors include, but are not limited to, differing site conditions: availability of skilled contract labor: performance of major material suppliers and subcontractors: on-going subcontractor negotiations and buyout provisions: unusual weather conditions: changes in the timing of scheduled work: change orders: accuracy of the original bid estimate: changes in estimated labor productivity and costs based on experience to date: achievement of incentive-based income targets: and the expected, or actual, resolution terms for claims. The factors that cause changes in estimates vary depending on the maturation of the project within its lifecycle. For example, in the ramp-up phase, these factors typically consist of revisions in anticipated project costs and during the peak and close-out phases, these factors include the impact of change orders and claims as well as additional revisions in remaining anticipated project costs. Generally, if the contract is at an early stage of completion, the current period impact is smaller than if the same change in estimate is made to the contract at a later stage of completion. Management focuses on evaluating the performance of contracts individually and uses the cumulative catch-up method to account for revisions in estimates. Material changes in estimates are disclosed in the notes to the consolidated financial statements. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the provision for income tax in the statements of operations. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance when realization of the assets is not reasonably assured. The Company recognizes in its financial statements the impact of tax positions that meet a “more likely than not” threshold, based on the technical merits of the position. The tax benefits recognized from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (basic net loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed using the weighted average number of common shares outstanding and potentially dilutive securities outstanding during the period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification “ASC” Topic 606). The purpose of this ASU is to converge revenue recognition requirements per GAAP and International Financial Reporting Standards (“IFRS”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this ASU were originally effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption not permitted by the FASB; however, in August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date after public comment respondents supported a proposal to delay the effective date of this ASU to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We adopted this ASU on January 1, 2018 and adoption of this ASU did not have a material impact on our financial position, results of operations and cash flows. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) Certain other accounting pronouncements have been issued by the FASB and other standard setting organizations which are not yet effective and therefore have not yet been adopted by the Company. The impact on the Company’s financial position and results of operations from adoption of these standards is not expected to be material. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment is summarized as follows: December 31, 2018 December 31, 2017 Office equipment $ 4,115 $ 4,115 Vehicles 31,065 24,565 Less: Accumulated depreciation (24,449 ) (19,536 ) Property and Equipment- net $ 10,731 $ 9,144 |
Deposits and Costs Coincident_2
Deposits and Costs Coincident to Acquisition of Land for Development (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits And Costs Coincident To Acquisition Of Land For Development | |
Summary of Deposits and Costs Coincident to Acquisition of Land for Development | Deposits and costs coincident to acquisition of land for development are summarized as follows: December 31, 2018 December 31, 2017 Lacey Township, New Jersey, Marina contract: Deposit $ 25,000 $ 25,000 Site engineering, permits and other costs: 49,959 23,657 Total Marina Contract 74,959 48,657 Other Deposits: Clayton-80 lots and 120 apartments 9,920 - 71 Sheridan Avenue 79,150 - Bayville-20 units 2,674 - Other 2,005 - Lacey Township, New Jersey, Pines contract: Deposit - 10,000 Cost to acquire contract 10,000 10,000 Site engineering, permits, and other costs 109,265 111,215 Total Pines contract 119,265 131,215 Berkeley Township, New Jersey, Tallwoods contract: Deposit 10,000 10,000 Site engineering, permits, and other costs 62,994 20,257 Total Tallwoods contract 72,994 30,257 Total $ 360,967 $ 210,129 |
Loans Payable to Related Part_2
Loans Payable to Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Loans Payable to Related Parties | Loans payable to related parties is summarized as follows: December 31, 2018 December 31, 2017 Loans payable to chief executive officer $ 29,025 $ 11,525 Loans payable to GPIL (see Note 5) 3,118 3,118 Loan payable to DHL 20,100 100 Total $ 52,243 $ 14,743 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of States Federal Income Tax Rate Income Loss Before Income Taxes | The sources of the differences follow: Year ended Year ended Expected tax at 21% (and 35%, respectively) $ 4,852 $ (6,789 ) State income taxes, net of federal income tax benefit 1,094 - Non-deductible stock-based compensation 24,747 23,402 Other (7,547 ) - Remeasurement of deferred income tax assets from 35% to 21% (a) - 1,080 Change in valuation allowance/NOL used (1,621 ) (17,693 ) Provision for (benefit from) income taxes $ 21,525 $ - (a) As a result of the Tax Cuts and Jobs Act (Tax Legislation) enacted on December 22, 2017, the United States corporate income tax rate is 21% effective January 1, 2018. Accordingly, we reduced our deferred income tax asset relating to our net operating loss carryforward (and the valuation allowance thereon) by $1,080 from $2,701 (at a statutory United States Federal income tax rate of 35%) to $1,621 ( at a statutory United States Federal income tax rate of 21%) as of December 31, 2017 |
Schedule of Deferred Tax Assets | The significant components of DHDC’s deferred tax asset as of December 31, 2018 and December 31, 2017 are as follows: December 31, 2018 December 31, 2017 Deferred tax assets: Net operating loss carry forward $ - $ 1,621 Valuation allowance - (1,621 ) Net deferred tax asset $ - $ - |
Significant Accounting Polici_3
Significant Accounting Policies (Details Narrative) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 06, 2009 | |
Accounting Policies [Abstract] | |||
Capital stock authorized | 75,000,000 | ||
Common stock, shares authorized | 70,000,000 | 70,000,000 | 70,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Property and equipment, estimated useful life | 5 years |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 4,913 | $ 2,656 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Less: Accumulated depreciation | $ (24,449) | $ (19,536) |
Property and Equipment- net | 10,731 | 9,144 |
Office Equipment [Member] | ||
Property and equipment, gross | 4,115 | 4,115 |
Vehicles [Member] | ||
Property and equipment, gross | $ 31,065 | $ 24,565 |
Deposits and Costs Coincident_3
Deposits and Costs Coincident to Acquisition of Land for Development (Details Narrative) | Mar. 28, 2018USD ($) | Mar. 14, 2018USD ($) | Dec. 11, 2017shares | Dec. 08, 2017USD ($)ashares | Sep. 21, 2017shares | Apr. 26, 2017shares | Apr. 24, 2017USD ($)shares | Mar. 04, 2017USD ($) | Dec. 15, 2016USD ($)a | Dec. 14, 2016USD ($) | Mar. 18, 2016USD ($) | Feb. 24, 2016USD ($) | Apr. 30, 2017USD ($)shares | Jan. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 01, 2017a |
Payments to acquire land | $ 700,000 | $ 6,500 | $ 5,800 | ||||||||||||||
Restricted stock, value | $ 2,800 | ||||||||||||||||
Development Costs | 50,000 | ||||||||||||||||
Approval costs, acquisition costs and infrastructure costs | 1,000,000 | ||||||||||||||||
Aggregate amount funding for home construction | 2,090,000 | ||||||||||||||||
Total engineering and approval costs | 40,000 | ||||||||||||||||
Deposits | $ 10,000 | ||||||||||||||||
Glassboro Township New Jersey [Member] | Robins Nest Solar Farm [Member] | |||||||||||||||||
Payments to acquire land | $ 900,000 | ||||||||||||||||
Electrical output term | 20 years | ||||||||||||||||
Tallwoods Contract [Member] | |||||||||||||||||
Purchase of undeveloped land | a | 7 | ||||||||||||||||
Number of restricted common stock shares issued during the period | shares | 71,429 | 71,429 | |||||||||||||||
Restricted stock, value | $ 10,000 | ||||||||||||||||
Purchase price | $ 700,000 | ||||||||||||||||
Refundable deposit | $ 10,000 | ||||||||||||||||
Dream Homes At Radio Road Contract [Member] | Little Egg Harbor Township New Jersey [Member] | |||||||||||||||||
Payments to acquire land | $ 65,000 | ||||||||||||||||
Payments required to purchase property | $ 260,000 | ||||||||||||||||
Projected selling price | The Company intends to begin construction in the second quarter and the homes are projected to sell in the $350,000 - $375,000 range. | ||||||||||||||||
NJ Department of Transportation [Member] | |||||||||||||||||
Payable to local authorities | 36,750 | ||||||||||||||||
Dream Homes,Ltd [Member] | |||||||||||||||||
Number of restricted common stock shares issued during the period | shares | 100,000 | 162,200 | 25,000 | ||||||||||||||
Restricted stock, value | $ 48,658 | ||||||||||||||||
Refundable deposit | $ 10,000 | ||||||||||||||||
Lacey Contract [Member] | |||||||||||||||||
Purchase price | $ 1,000,000 | ||||||||||||||||
General Development Corp [Member] | |||||||||||||||||
Purchase of undeveloped land | a | 9 | ||||||||||||||||
Payments to acquire land | $ 15,000 | ||||||||||||||||
Number of restricted common stock shares issued during the period | shares | 100,000 | 100,000 | |||||||||||||||
Restricted stock, value | $ 5,000 | ||||||||||||||||
Payments to acquire management contract rights | $ 10,000 | ||||||||||||||||
Line of credit available amount | $ 50,000 | ||||||||||||||||
Dream Homes,Ltd [Member] | |||||||||||||||||
Purchase of undeveloped land | a | 7.5 | ||||||||||||||||
Payments to acquire land | $ 2,166,710 | 2,430,000 | |||||||||||||||
Refundable deposit | $ 25,000 | ||||||||||||||||
Total engineering and approval costs | 100,000 | ||||||||||||||||
Deposits | $ 25,000 | ||||||||||||||||
Restricted shares of common stock committed but not issued as of April 16, 2018 | shares | 162,200 |
Summary of Deposits and Costs C
Summary of Deposits and Costs Coincident to Acquisition of Land for Development (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total | $ 360,967 | $ 210,129 |
Lacey Township, New Jersey, Marina Contract [Member] | ||
Deposit | 25,000 | 25,000 |
Site engineering, permits, and other costs | 49,959 | 23,657 |
Total | 74,959 | 48,657 |
Clayton-80 Lots and 120 Apartments [Member] | ||
Other deposits | 9,920 | |
71 Sheridan Avenue [Member] | ||
Other deposits | 79,150 | |
Bayville-20 Units [Member] | ||
Other deposits | 2,674 | |
Other [Member] | ||
Other deposits | 2,005 | |
Lacey Township, New Jersey, Pines Contract [Member] | ||
Deposit | 10,000 | |
Cost to acquire contract | 10,000 | 10,000 |
Site engineering, permits, and other costs | 109,265 | 111,215 |
Total | 119,265 | 131,215 |
Berkeley Township, New Jersey, Tallwoods contract [Member] | ||
Deposit | 10,000 | 10,000 |
Site engineering, permits, and other costs | 62,994 | 20,257 |
Total | $ 72,994 | $ 30,257 |
Loans Payable to Related Part_3
Loans Payable to Related Parties - Schedule of Loans Payable to Related Parties (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total | $ 52,243 | $ 14,743 |
Loans Payable to Chief Executive Officer [Member] | Loans Payable [Member] | ||
Total | 29,025 | 11,525 |
Loans Payable to GPIL [Member] | Loans Payable [Member] | ||
Total | 3,118 | 3,118 |
Loan Payable to DHL [Member] | Loans Payable [Member] | ||
Total | $ 20,100 | $ 100 |
Common Stock Issuances (Details
Common Stock Issuances (Details Narrative) - USD ($) | Feb. 26, 2018 | Feb. 09, 2018 | Jan. 31, 2018 | Dec. 29, 2017 | Dec. 27, 2017 | Dec. 11, 2017 | Dec. 08, 2017 | Sep. 21, 2017 | Jul. 12, 2017 | Apr. 26, 2017 | Apr. 24, 2017 | Mar. 14, 2017 | Feb. 22, 2017 | Oct. 13, 2016 | Apr. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2011 | Dec. 31, 2010 |
Stock issued during the period restricted stock value | $ 2,800 | |||||||||||||||||||
Number of common shares issued for legal services | 40,000 | |||||||||||||||||||
Proceeds from issuance of common stock | $ 5,000 | |||||||||||||||||||
Tallwoods Contract [Member] | ||||||||||||||||||||
Number of restricted common stock shares issued during the period | 71,429 | 71,429 | ||||||||||||||||||
Stock issued during the period restricted stock value | $ 10,000 | |||||||||||||||||||
Subscription Agreement [Member] | ||||||||||||||||||||
Number of common shares issued for legal services | 12,500 | |||||||||||||||||||
Common stock per share | $ 0.40 | |||||||||||||||||||
Proceeds from issuance of common stock | $ 5,000 | |||||||||||||||||||
Green Chip Investor Relations [Member] | Consulting Services Agreement [Member] | ||||||||||||||||||||
Number of restricted common stock shares issued during the period | 56,000 | 56,000 | ||||||||||||||||||
Stock issued during the period restricted stock value | $ 2,800 | |||||||||||||||||||
Common stock per share | $ 0.05 | |||||||||||||||||||
Minority Stockholder [Member] | ||||||||||||||||||||
Number of common shares issued for legal services | 30,000 | |||||||||||||||||||
Minority interest | $ 10,000 | |||||||||||||||||||
Dream Homes,Ltd [Member] | ||||||||||||||||||||
Number of restricted common stock shares issued during the period | 100,000 | 162,200 | 25,000 | |||||||||||||||||
Stock issued during the period restricted stock value | $ 48,658 | |||||||||||||||||||
Number of common shares issued for legal services | 40,000 | |||||||||||||||||||
Stock based compensation shares | ||||||||||||||||||||
Common stock per share | $ 0.40 | $ 0.40 | $ 0.40 | |||||||||||||||||
Number of restricted common stock shares issued to exchange for vehicles | 40,000 | |||||||||||||||||||
Number of restricted common stock issued to exchange for vehicles | $ 6,000 | |||||||||||||||||||
Number of restricted common stock shares issued for cash for subscription agreement | 12,500 | |||||||||||||||||||
Number of restricted common stock issued for cash for subscription agreement | $ 5,000 | |||||||||||||||||||
Number of restricted common stock shares issued for settlement of accounts payable | 16,000 | 25,340 | ||||||||||||||||||
Number of restricted common stock issued for settlement of accounts payable | $ 11,400 | $ 10,138 | ||||||||||||||||||
Private Placement [Member] | Minority Stockholder [Member] | ||||||||||||||||||||
Minority interest | $ 500,000 | |||||||||||||||||||
Secretary [Member] | ||||||||||||||||||||
Number of common shares issued for legal services | 25,000 | |||||||||||||||||||
Stock based compensation shares | ||||||||||||||||||||
Directors [Member] | ||||||||||||||||||||
Number of common shares issued for legal services | 25,000 | |||||||||||||||||||
Stock based compensation shares | ||||||||||||||||||||
DHL [Member] | ||||||||||||||||||||
Number of restricted common stock shares issued during the period | 275,000 | |||||||||||||||||||
DHL [Member] | Minority Stockholder [Member] | ||||||||||||||||||||
Number of restricted common stock shares issued during the period | 100,000 | |||||||||||||||||||
DHL in 2010 [Member] | Minority Stockholder [Member] | ||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ 100,000 | |||||||||||||||||||
DHL in 2010 [Member] | Private Placement [Member] | ||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ 500,000 | |||||||||||||||||||
DHL in 2011 [Member] | Minority Stockholder [Member] | ||||||||||||||||||||
Number of restricted common stock shares issued during the period | 275,000 | |||||||||||||||||||
Stock based compensation shares | 100,000 | |||||||||||||||||||
General Development Corp [Member] | ||||||||||||||||||||
Number of restricted common stock shares issued during the period | 100,000 | 100,000 | ||||||||||||||||||
Stock issued during the period restricted stock value | $ 5,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 23, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21.00% | 35.00% | |
Operating loss carryforward | $ 1,621 | $ 2,701 |
Income Taxes - Schedule of Stat
Income Taxes - Schedule of States Federal Income Tax Rate Income Loss Before Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Disclosure [Abstract] | |||
Expected tax at 21% (and 35%, respectively) | $ 4,852 | $ (6,789) | |
State income taxes, net of federal income tax benefit | 1,094 | ||
Non-deductible stock-based compensation | 24,747 | 23,402 | |
Other | (7,547) | ||
Remeasurement of deferred income tax assets from 35% to 21% | [1] | 1,080 | |
Change in valuation allowance/NOL used | (1,621) | (17,693) | |
Provision for (benefit from) income taxes | $ 21,525 | ||
[1] | As a result of the Tax Cuts and Jobs Act (Tax Legislation) enacted on December 22, 2017, the United States corporate income tax rate is 21% effective January 1, 2018. Accordingly, we reduced our deferred income tax asset relating to our net operating loss carryforward (and the valuation allowance thereon) by $1,080 from $2,701 (at a statutory United States Federal income tax rate of 35%) to $1,621 ( at a statutory United States Federal income tax rate of 21%) as of December 31, 2017 |
Income Taxes - Schedule of St_2
Income Taxes - Schedule of States Federal Income Tax Rate Income Loss Before Income Taxes (Details) (Parenthetical) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 23, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
Federal income tax rate | 21.00% | 35.00% | ||
Income tax description | As a result of the Tax Cuts and Jobs Act (Tax Legislation) enacted on December 22, 2017, the United States corporate income tax rate is 21% effective January 1, 2018. Accordingly, we reduced our deferred income tax asset relating to our net operating loss carryforward (and the valuation allowance thereon) by $1,080 from $2,701 (at a statutory United States Federal income tax rate of 35%) to $1,621 ( at a statutory United States Federal income tax rate of 21%) as of December 31, 2017 | |||
Remeasurement of deferred income tax assets | [1] | $ 1,080 | ||
Operating loss carryforward | $ 1,621 | $ 2,701 | ||
[1] | As a result of the Tax Cuts and Jobs Act (Tax Legislation) enacted on December 22, 2017, the United States corporate income tax rate is 21% effective January 1, 2018. Accordingly, we reduced our deferred income tax asset relating to our net operating loss carryforward (and the valuation allowance thereon) by $1,080 from $2,701 (at a statutory United States Federal income tax rate of 35%) to $1,621 ( at a statutory United States Federal income tax rate of 21%) as of December 31, 2017 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forward | $ 1,621 | |
Valuation allowance | (1,621) | |
Net deferred tax asset |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | May 21, 2018USD ($)shares | Nov. 03, 2017USD ($)$ / sharesshares | Aug. 20, 2017USD ($) | Jun. 20, 2017USD ($) | May 08, 2017 | Feb. 10, 2017USD ($)shares | Sep. 15, 2016USD ($) | Oct. 31, 2018USD ($) | May 31, 2018USD ($) | Feb. 28, 2018USD ($)shares | Jan. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)Integer | Dec. 31, 2017USD ($)shares |
Stock issued during the period restricted stock value | $ 2,800 | ||||||||||||
Sale of stock, shares | shares | 68,810 | ||||||||||||
Sale of stock during period, value | $ 16,400 | ||||||||||||
Lumber Vendor [Member] | |||||||||||||
Sale of stock, shares | shares | 12,500 | 16,000 | 12,500 | ||||||||||
Sale of stock during period, value | $ 5,000 | $ 6,400 | $ 5,000 | ||||||||||
Number common stock shares issued for reduction of accounts payable | shares | 10,138 | ||||||||||||
Vendor [Member] | |||||||||||||
Number common stock shares issued for reduction of accounts payable | shares | 25,340 | ||||||||||||
Private Placement [Member] | |||||||||||||
Equity and debt offering | $ 5,000,000 | ||||||||||||
Unit issued price per share | $ / shares | $ 0.40 | ||||||||||||
Warrants purchase of common stock shares | shares | 1 | ||||||||||||
Warrants exercise price per share | $ / shares | $ 0.60 | ||||||||||||
Offering period | within 3 years of the date of Unit purchase. | ||||||||||||
Private Placement [Member] | Convertible Debt [Member] | |||||||||||||
Debt offered percentage | 8.00% | ||||||||||||
Debt instrument, maturity period | 4 years | ||||||||||||
Debt instrument, offering date | Jan. 2, 2018 | ||||||||||||
Debt instrument, extended date | Sep. 2, 2018 | ||||||||||||
Debt conversion price per share | $ / shares | $ 0.75 | ||||||||||||
Nonbank Lender [Member] | |||||||||||||
Line of credit | $ 50,000 | ||||||||||||
Line of credit interest rate | 12.00% | ||||||||||||
Line of credit facility principal due payable terms | outstanding principal is due and payable in 60 months. | ||||||||||||
Two Employement Agreements [Member] | |||||||||||||
Sales commission | $ 56,164 | $ 75,746 | |||||||||||
Lease Agreement [Member] | |||||||||||||
Rent expense | $ 1,200 | 36,400 | 11,000 | ||||||||||
Investor Relations and Consulting Services Agreement [Member] | |||||||||||||
Consulting fees expense | $ 2,000 | $ 12,150 | |||||||||||
Investor Relations and Consulting Services Agreement [Member] | Investor [Member] | |||||||||||||
Agreement expiration term | Aug. 31, 2017 | ||||||||||||
Number of restricted common stock shares issued during the period | shares | 56,000 | ||||||||||||
Stock issued during the period restricted stock value | $ 2,800 | ||||||||||||
Fees payment to investor | $ 2,000 | ||||||||||||
June 20 2017 to June 20 2022 | Lease Agreement [Member] | |||||||||||||
Lease term | 5 years | ||||||||||||
Lease Term of renewal | 5 years | ||||||||||||
November 20 2017 | Lease Agreement [Member] | |||||||||||||
Rent expense | $ 2,200 | ||||||||||||
Sales Manager [Member] | May 8 2017 to May 8 2019 | |||||||||||||
Agreement term interval based | 1 year | ||||||||||||
Dream Homes And Development Corp [Member] | |||||||||||||
Rent expense | $ 1,000 | ||||||||||||
Dream Homes And Development Corp [Member] | Little Egg Harbor [Member] | |||||||||||||
Lease term | 1 year | ||||||||||||
Lease Term of renewal | 3 years | ||||||||||||
Rent expense | $ 1,500 | ||||||||||||
Amount of lease | $ 18,000 | ||||||||||||
Construction Contracts [Member] | |||||||||||||
Number of contracts assigned | Integer | 18 | ||||||||||||
Construction Contracts [Member] | Dream Building, LLC [Member] | |||||||||||||
Construction contract price | $ 2,764,508 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts payable and accrued expenses | $ 317,634 | $ 391,003 | |
Chief Executive Officer [Member] | |||
Salary paid | 65,888 | 54,000 | |
Secretary [Member] | |||
Salary paid | 62,000 | 66,000 | |
VP of Human Resources [Member] | |||
Salary paid | 62,000 | 66,000 | |
Dream Building, LLC [Member] | Selling, General and Administrative [Member] | |||
Allocated payroll expenses including selling, general and administrative expenses | 606,703 | 607,305 | |
DHL [Member] | |||
Accounts payable and accrued expenses | $ 0 | $ 130,152 | |
Monthly rent | $ 2,000 |
Stock Warrants (Details Narrati
Stock Warrants (Details Narrative) - USD ($) | Jul. 12, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | May 08, 2017 | Apr. 28, 2017 |
Stock based compensation | $ 117,844 | $ 66,864 | ||||
Warrants forfeited | 70,000 | |||||
Remaining warrants leaving | 680,000 | |||||
Weighted average remaining life of warrants | 1 year 6 months 10 days | |||||
Warrant unrecognized cost | $ 187,876 | |||||
Stock Warrant [Member] | ||||||
Stock warrants issued | 750,000 | |||||
Stock Warrant [Member] | Vice President of Business Development [Member] | ||||||
Stock warrants issued | 20,000 | |||||
Stock Warrant [Member] | Sales Manager [Member] | ||||||
Stock warrants issued | 20,000 | |||||
Warrant [Member] | ||||||
Stock based compensation | $ 64,064 | $ 117,844 | ||||
DHDC [Member] | ||||||
Stock warrants issued | 750,000 | |||||
Fair value assumption total value | $ 407,850 | |||||
Fair value assumption stock price per share | $ 0.60 | |||||
DHDC [Member] | Exercise Price [Member] | ||||||
Fair value assumption exercise price per share | $ 0.30 | |||||
DHDC [Member] | Expected Dividend Rate [Member] | ||||||
Fair value assumption, input percentage | 0.00% | |||||
DHDC [Member] | Risk Free Interest Rate [Member] | ||||||
Fair value assumption, input percentage | 1.53% | |||||
DHDC [Member] | Expected Volatility [Member] | ||||||
Fair value assumption, input percentage | 171.00% | |||||
DHDC [Member] | Expected Term [Member] | ||||||
Fair value assumption term | 3 years | |||||
DHDC [Member] | Through July 20, 2020 [Member] | ||||||
Warrants per share | $ 0.30 | |||||
DHDC [Member] | Chief Executive Officer [Member] | ||||||
Stock warrants issued | 500,000 | |||||
DHDC [Member] | Secretary [Member] | ||||||
Stock warrants issued | 100,000 | |||||
DHDC [Member] | Two Other Directors [Member] | ||||||
Stock warrants issued | 60,000 | |||||
DHDC [Member] | Non Executive DHL Project Manager Employee [Member] | ||||||
Stock warrants issued | 50,000 | |||||
DHDC [Member] | Stock Warrant [Member] | ||||||
Stock warrants issued | 750,000 |
Receivable from Arbitration a_2
Receivable from Arbitration and Settlement of in Process Customer Construction Contract in Dispute and Related Losses Recognized and Recorded by the Company (Details Narrative) - USD ($) | Mar. 06, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2016 |
Market value of lien property | $ 850,000 | |||||
Prior mortgage lien value | 190,000 | |||||
Costs and estimated earnings | $ 69,499 | 105,847 | $ 69,499 | |||
Cumulative gross profit | $ 1,068,324 | 1,021,145 | ||||
American Arbitration Association [Member] | ||||||
Contract receivable claims amount | $ 75,000 | |||||
Prejudgment interest | 488 | |||||
Payment from customer for contract dispute | $ 75,000 | |||||
Recognized loss on write-down of accounts receivable | 14,318 | 14,318 | ||||
Recognized loss on costs and estimated earnings in excess of billings | 48,419 | 48,419 | ||||
Arbitration Award [Member] | American Arbitration Association [Member] | ||||||
Amount billed to customer | 219,565 | 219,565 | ||||
Payment from customer for contract dispute | 48,419 | |||||
Costs and estimated earnings | 267,984 | $ 267,984 | ||||
Cumulative gross profit | 17,658 | |||||
Negative gross profit | (9,012) | |||||
Contract loss | $ 62,737 | |||||
Construction Contracts [Member] | ||||||
Contracts receivable | $ 307,000 | |||||
Amount billed to customer | $ 219,565 | |||||
Due from customer | 89,318 | |||||
Construction Contracts [Member] | Customer [Member] | ||||||
Proceeds from contracts | $ 130,247 |