Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Dec. 10, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Dream Homes & Development Corp. | |
Entity Central Index Key | 0001518336 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
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 Common Stock, Shares Outstanding | 25,878,993 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 54,195 | $ 118,687 |
Accounts receivable, net of allowance for doubtful accounts ($29,838) | 333,826 | 349,218 |
Costs in excess of billings and estimated earnings | 47,104 | 105,847 |
Total current assets | 435,125 | 573,752 |
PROPERTY AND EQUIPMENT, net | 34,154 | 10,731 |
OTHER ASSETS | ||
Security deposit | 2,200 | 2,200 |
Accounts receivable , net of allowance for doubtful accounts ($43,000) | 32,000 | 32,000 |
Deposits and costs coincident to acquisition of land for Development | 575,482 | 360,967 |
Total assets | 1,078,961 | 979,650 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 494,750 | 317,634 |
Billings in excess of costs and estimated earnings | 55,605 | 254,208 |
Accrued income taxes | 36,731 | 21,525 |
Loans payable | 20,000 | |
Loans payable to related parties | 54,352 | 52,243 |
Total current liabilities | 641,438 | 665,610 |
STOCKHOLDERS' EQUITY | ||
Preferred stock; 5,000,000 shares authorized, $.001 par value, as of September 30, 2019 and December 31, 2018, there are no shares outstanding | ||
Common stock; 70,000,000 shares authorized, $.001 par value, as of September 30, 2019 and December 31, 2018, there are 25,878,993 and 24,200,953 shares outstanding, respectively; and 16,000 shares committed not yet issued at December 31, 2018 respectively | 25,879 | 24,201 |
Additional paid-in capital | 1,868,504 | 1,671,988 |
Accumulated deficit | (1,456,860) | (1,382,149) |
Total stockholders' equity | 437,523 | 314,040 |
Total liabilities and stockholders' equity | $ 1,078,961 | $ 979,650 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 29,838 | $ 29,838 |
Allowance for doubtful accounts receivable, non-current | $ 43,000 | $ 43,000 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ .001 | $ 0.001 |
Preferred stock, shares outstanding | ||
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, par value | $ .001 | $ .001 |
Common stock, shares outstanding | 25,878,993 | 24,200,953 |
Common stock, shares subscribed but unissued | 16,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Total revenue | $ 551,770 | $ 627,980 | $ 2,095,417 | $ 1,927,457 |
Cost of construction contracts | 382,944 | 472,593 | 1,399,922 | 1,179,785 |
Gross profit | 168,826 | 155,387 | 695,495 | 747,672 |
Operating Expenses: | ||||
Selling, general and administrative, including stock based compensation of $ 110,194 and $ 86,774 , $0 and $ 18,798, respectively | 201,902 | 98,344 | 760,954 | 700,535 |
Depreciation expense | 1,653 | 1,228 | 4,576 | 3,684 |
Total operating expenses | 203,555 | 99,572 | 765,530 | 704,219 |
Income (loss) from operations | (34,729) | 55,815 | (70,035) | 43,453 |
Other expenses (income): | ||||
Cancellation of debt | (12,000) | |||
Interest expense | 1,470 | |||
Total other expenses (income) | (10,530) | |||
Net income (loss) before income taxes | (34,729) | 55,815 | (59,505) | 43,453 |
Provision for income tax (expense) | 10,420 | (15,206) | ||
Net income (loss) | $ (24,309) | $ 55,815 | $ (74,711) | $ 43,453 |
Basic and diluted income (loss) per common share | $ 0 | $ 0.01 | $ 0 | $ 0 |
Weighted average common shares outstanding-basic and diluted | 25,878,993 | 24,200,953 | 24,915,346 | 24,200,953 |
Construction Contracts [Member] | ||||
Revenue: | ||||
Total revenue | $ 551,770 | $ 627,980 | $ 2,095,417 | $ 1,927,457 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Stock based compensation | $ 0 | $ 18,798 | $ 110,194 | $ 86,774 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | |||||
Net income (loss) | $ (24,309) | $ 55,815 | $ (74,711) | $ 43,453 | |
Adjustments to reconcile net income (loss) to net cash provided (used) in operating activities: | |||||
Depreciation expense | 1,653 | 1,228 | 4,576 | 3,684 | |
Write-off on deposits and acquisition of land | 28,102 | ||||
Stock-based compensation | 0 | 18,798 | 110,194 | 86,774 | |
Write-off of note payable | (12,000) | ||||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 15,392 | (27,003) | |||
Costs in excess of billings and estimated earnings | 58,743 | (119,014) | |||
Accounts payable and accrued liabilities | 177,116 | (74,640) | |||
Accrued income tax | 15,206 | ||||
Billings in excess of costs and estimated earnings | (198,603) | 34,973 | |||
Net cash provided in operating activities | 124,015 | (51,772) | |||
INVESTING ACTIVITIES | |||||
Purchase of vehicles | (28,000) | ||||
Deposit and costs coincident to acquisition of land for development | (184,120) | (98,411) | |||
Net cash (used) in investing activities | (212,120) | (98,411) | |||
FINANCING ACTIVITIES | |||||
Payments on loans to related parties | (17,314) | ||||
Proceeds from related parties | 40,927 | 40,000 | |||
Proceeds from loans | 20,000 | ||||
Proceeds from sale of common stock | 11,400 | ||||
Net cash provided by financing activities | 23,613 | 71,400 | |||
NET INCREASE (DECREASE) IN CASH | (64,492) | (78,783) | |||
CASH BALANCE, BEGINNING OF PERIOD | 118,687 | 244,684 | $ 244,684 | ||
CASH BALANCE, END OF PERIOD | $ 54,195 | $ 165,901 | 54,195 | 165,901 | $ 118,687 |
Supplemental Disclosures of Cash Flow Information: | |||||
Interest paid | 1,470 | ||||
Income taxes paid | |||||
Non-Cash Investing and Financing Activities: | |||||
Issuance of 1,100,000 shares of common stock for debt reduction | $ 110,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) | 9 Months Ended |
Sep. 30, 2019shares | |
Statement of Cash Flows [Abstract] | |
Issuance of shares of common stock for debt reduction | 1,100,000 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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 4 new developments totaling 123 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 August 19, 2016, Virtual Learning acquired 4.5% of Dream Homes, Ltd. (“DHL”), 100% of Dream Building, LLC (“DBL”) , a wholly owned subsidiary of DHL, and use of all construction licensing and registrations held by Atlantic Northeast Construction LLC (“ANCL”), a wholly owned subsidiary of DHL, in exchange for the issuance of 2,225,000 shares of Virtual Learning common stock to DHL at an agreed price of $.05 per common share. The majority stockholder and chief executive officer of DHL was also the controlling stockholder and chief executive officer of Virtual Learning. As Virtual Learning and DHL were entities under common control, the acquired assets were reflected by Virtual Learning at DHL’s $0 carrying amount on the date of transfer pursuant to Accounting Standards Codification (“ASC”) 805-50-30-5. From August 19, 2016 to August 23, 2016, Virtual Learning acquired the rights to complete 6 in process construction contracts of ANCL in exchange for the issuance of 2,287,367 shares of Virtual Learning common stock to DHL at an agreed price of $.05 per common share for those ANCL contracts. As Virtual Learning and DHL were entities under common control, the acquired rights were reflected at DHL’s $0 carrying amount on the date of transfer pursuant to ASC 805-50-30-5. Due to the Company’s change in focus to its construction business, the Company wrote off the remaining unamortized capitalized curriculum development costs of $20,534 at December 31, 2016. 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 Interim Financial Statements The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they may not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations or cash flows. It is management’s opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The unaudited interim financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2018, which contains the financial statements and notes thereto, together with Management’s Discussion and Analysis of Financial Conditions and Results of Operations, for the year ended December 31, 2018. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019. 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 | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 2 - Property and Equipment Property and equipment is summarized as follows: September 30, 2019 December 31, 2018 Office equipment $ 4,115 $ 4,115 Vehicles/Modular office 59,065 31,065 Less: Accumulated depreciation (29,026 ) (24,449 ) Property and Equipment- net $ 34,154 $ 10,731 Depreciation expense for the nine months ended September 30, 2019 and 2018 was $4,576 and $3,684, respectively. |
Deposits and Costs Coincident t
Deposits and Costs Coincident to Acquisition of Land for Development | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
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: September 30, 2019 December 31, 2018 Lacey Township, New Jersey, Marina contract: Deposit 25,000 25,000 Site engineering, permits and other costs: 49,959 49,959 Total Marina Contract 74,959 74,959 Other Deposits: Clayton - 120 apartments 54,467 9,920 71 Sheridan Avenue 79,150 79,150 Bayville-17 units 30,949 2,674 Other 7,726 2,005 Lacey Township, New Jersey, Pines contract: Deposit - - Cost to acquire contract 10,000 10,000 Site engineering, permits, and other costs 109,265 109,265 Total Pines contract 119,265 119,265 Berkeley Township, New Jersey, Tallwoods contract: Deposit 10,000 10,000 Site engineering, permits, and other costs 86,442 62,994 Total Tallwoods contract 96,442 72,994 Louis Ave – Bayville 17 units 30,949 - Station Dr – Forked River 54,109 - 201 East Ave – Clayton – 77 units 52,200 - Academy St – Clayton – 2 lots 3,199 - Fairview Development – Clayton 120 units 6,874 - Lackland (Pines contract) (6,5532 ) - Total $ 575,482 $ 360,967 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. 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 permit is expected to be issued in June or July of 2018. 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 June 30, 2019. 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. The property when completely constructed has a retail value of $21 million and is expected to begin site improvements in late 2018 or early 2019. 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. This development is currently on hold pending a change in environmental regulations from the New Jersey Department of Environmental Protection concerning the CAFRA Town Center designation. 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 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. This acquisition has been put on hold pending availability of funding. 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 17 townhouse lots in Bayville NJ. Engineering and approvals are currently in process. |
Loans Payable to Related Partie
Loans Payable to Related Parties | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Loans Payable to Related Parties | 4-Loans Payable to Related Parties Loans payable to related parties is summarized as follows: September 30, 2019 December 31, 2018 Loans payable to chief executive officer $ 70,634 $ 29,025 Loans payable to GPIL 3,118 3,118 Loan payable to DHL (19,400 ) 20,100 Net total $ 54,352 $ 52,243 All the loans above are non-interest bearing and due on demand. |
Common Stock Issuances
Common Stock Issuances | 9 Months Ended |
Sep. 30, 2019 | |
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 8). 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 the same minority stockholder of DHL that it assigned 100,000 shares of Company common stock on October 13, 2016 (see sixth preceding paragraph). 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 27,810 restricted shares of DHDC’s common stock for settlement of $ 11,124 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. On May 9, 2019, the Company issued 58,000 restricted shares of restricted common shares to two individuals for consulting services at $.08 per share. On June 6, 2019, the Company issued 520,000 restricted shares for stock-based compensation at $.10 per share to six individuals. On June 6, 2019, the Company issued 1,000,000 restricted shares for debt reduction to the Chief Executive Officer at $.10 per share. On June 6, 2019, the Company issued 100,000 restricted shares for reduction of note payable at $.10 per share. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
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 (21% in 2019 and 2018) to income (loss) before income taxes. The sources of the differences follow: Nine months ended September 30, 2019 Nine months ended September 30, 2018 Expected tax (benefit) $ (12,496 ) $ (9,852 ) State income taxes, net of Federal (benefit) (5,298 ) (2,816 ) Non-deductible stock-based compensation 33,000 14,275 Change in valuation allowance - (1,607 ) Provision for income taxes $ 15,206 $ - The significant components of DHDC’s deferred tax asset as of September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31,2018 Deferred tax assets: Net operating loss carry forward $ - $ 57,598 Valuation allowance - (57,598 ) Net deferred tax asset $ - $ - |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | 7- Business Segments The company currently has one business segment which is residential construction, which is further divided into elevation/renovation, demolition and new home construction and new single and multi-family home developments. The residential construction segment is operated through DHDC’s wholly owned subsidiary Dream Building, LLC (since August 19, 2016). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8- Commitments and Contingencies Construction Contracts As of September 30, 2019, Dream Building, LLC is committed under 26 construction contracts outstanding with homeowners with contract prices totaling $ 6,870,825, 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 a Vice President of Business Development. The term of the agreement was scheduled to run from April 28, 2017 to December 31, 2020, unless otherwise cancelled, and was renewable thereafter at 1-year intervals based on certain sales targets. The agreement provided for compensation based on sales. This person stopped working for the Company at the end of 2018 and the agreement was cancelled accordingly. On May 8, 2017, DHDC executed an Employment Agreement with a newly appointed Sales Manager. The term of the agreement is from May 8, 2017 to May 8, 2019 and was renewable thereafter at 1-year intervals based on certain sales targets. That agreement has been renewed and is currently in force. The agreement provides for compensation based on sales. Lease Agreement 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. 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. For the nine months ended September 30, 2019, rent expense under this lease agreement was $12,600. Monthly lease payments were changed to $1,000 per month as of 3/31/19. This lease has ended as of 12/31/19 and the Company has vacated the premises. The Company is seeking other showroom office space in northern Ocean and southern Monmouth Counties. 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 nine months ended September 30, 2019 and 2018, consulting fees expense under this agreement was $0 and $2,000, respectively. This Agreement is no longer in effect on any type of constant basis, and the services of the Consultant are being utilized on an as-needed basis. 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%, with interest being payable on demand. 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 received several advances under the line of credit. As of 12/31/19, the outstanding principal balance was $162,000. Interest expense was brought current as of 1/3/20. 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 11,124 for 27,810 units issuable to the vendor as of December 31, 2017. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9- Related Party Transactions Dream Homes Ltd. Allocated payroll The Company uses the services of Dream Homes Ltd. (DHL) personnel for its operations. For the nine months ended September 30, 2019 and 2018, selling, general and administrative expenses include $277,949.00 and $280,122.46, respectively. Costs incurred for the Company’s estimated share of DHL’s gross payroll and payroll taxes for the 2019 nine-month period include $57,000 salary paid to the Company’s Chief Executive Officer and $40,800 salary paid to the Company’s Secretary and VP of Human Resources. 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 ($18,000 total for the nine months ended September 30, 2019) for this office space. |
Stock Warrants
Stock Warrants | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stock Warrants | 10- 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 three months ended March 31, 2019 and 2018, stock-based compensation attributable to the warrants was $30,394 and $33,988, respectively, 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 described in Note 8. These warrants have been cancelled since this individual is no longer with the Company as of 12/31/18. Also included within the 750,000 warrants described in the preceding paragraph are 20,000 warrants issued to the Company’s Sales Manager that are not covered by the Employment Agreement dated May 8, 2017 described in Note 8. Effective April 1, 2020, all remaining warrants were cancelled. |
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 | 9 Months Ended |
Sep. 30, 2019 | |
Contractors [Abstract] | |
Receivable from Arbitration and Settlement of in Process Customer Construction Contract in Dispute and Related Losses Recognized and Recorded by the Company | 11- 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 on October 18, 2017. On March 6, 2018, the American Arbitration Association awarded the Company $75,000 in connection with its claim. 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. At December 31, 2017, there was a “Costs 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 has also 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 preceding paragraph and the $48,419 write-down described in this paragraph, which aggregate to $62,732. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12- Subsequent Events A contract was signed to acquire 70 approved townhome units in October 2019, after 31 months of discussion. A contract was signed to purchase 52 approved townhome units in Forked River, NJ. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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 4 new developments totaling 123 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 August 19, 2016, Virtual Learning acquired 4.5% of Dream Homes, Ltd. (“DHL”), 100% of Dream Building, LLC (“DBL”) , a wholly owned subsidiary of DHL, and use of all construction licensing and registrations held by Atlantic Northeast Construction LLC (“ANCL”), a wholly owned subsidiary of DHL, in exchange for the issuance of 2,225,000 shares of Virtual Learning common stock to DHL at an agreed price of $.05 per common share. The majority stockholder and chief executive officer of DHL was also the controlling stockholder and chief executive officer of Virtual Learning. As Virtual Learning and DHL were entities under common control, the acquired assets were reflected by Virtual Learning at DHL’s $0 carrying amount on the date of transfer pursuant to Accounting Standards Codification (“ASC”) 805-50-30-5. From August 19, 2016 to August 23, 2016, Virtual Learning acquired the rights to complete 6 in process construction contracts of ANCL in exchange for the issuance of 2,287,367 shares of Virtual Learning common stock to DHL at an agreed price of $.05 per common share for those ANCL contracts. As Virtual Learning and DHL were entities under common control, the acquired rights were reflected at DHL’s $0 carrying amount on the date of transfer pursuant to ASC 805-50-30-5. Due to the Company’s change in focus to its construction business, the Company wrote off the remaining unamortized capitalized curriculum development costs of $20,534 at December 31, 2016. 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 |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they may not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations or cash flows. It is management’s opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The unaudited interim financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2018, which contains the financial statements and notes thereto, together with Management’s Discussion and Analysis of Financial Conditions and Results of Operations, for the year ended December 31, 2018. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019. |
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) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment is summarized as follows: September 30, 2019 December 31, 2018 Office equipment $ 4,115 $ 4,115 Vehicles/Modular office 59,065 31,065 Less: Accumulated depreciation (29,026 ) (24,449 ) Property and Equipment- net $ 34,154 $ 10,731 |
Deposits and Costs Coincident_2
Deposits and Costs Coincident to Acquisition of Land for Development (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Schedule 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: September 30, 2019 December 31, 2018 Lacey Township, New Jersey, Marina contract: Deposit 25,000 25,000 Site engineering, permits and other costs: 49,959 49,959 Total Marina Contract 74,959 74,959 Other Deposits: Clayton - 120 apartments 54,467 9,920 71 Sheridan Avenue 79,150 79,150 Bayville-17 units 30,949 2,674 Other 7,726 2,005 Lacey Township, New Jersey, Pines contract: Deposit - - Cost to acquire contract 10,000 10,000 Site engineering, permits, and other costs 109,265 109,265 Total Pines contract 119,265 119,265 Berkeley Township, New Jersey, Tallwoods contract: Deposit 10,000 10,000 Site engineering, permits, and other costs 86,442 62,994 Total Tallwoods contract 96,442 72,994 Louis Ave – Bayville 17 units 30,949 - Station Dr – Forked River 54,109 - 201 East Ave – Clayton – 77 units 52,200 - Academy St – Clayton – 2 lots 3,199 - Fairview Development – Clayton 120 units 6,874 - Lackland (Pines contract) (6,5532 ) - Total $ 575,482 $ 360,967 |
Loans Payable to Related Part_2
Loans Payable to Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Loans Payable to Related Parties | Loans payable to related parties is summarized as follows: September 30, 2019 December 31, 2018 Loans payable to chief executive officer $ 70,634 $ 29,025 Loans payable to GPIL 3,118 3,118 Loan payable to DHL (19,400 ) 20,100 Net total $ 54,352 $ 52,243 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of States Federal Income Tax Rate Income Loss Before Income Taxes | The sources of the differences follow: Nine months ended September 30, 2019 Nine months ended September 30, 2018 Expected tax (benefit) $ (12,496 ) $ (9,852 ) State income taxes, net of Federal (benefit) (5,298 ) (2,816 ) Non-deductible stock-based compensation 33,000 14,275 Change in valuation allowance - (1,607 ) Provision for income taxes $ 15,206 $ - |
Schedule of Deferred Tax Assets | The significant components of DHDC’s deferred tax asset as of September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31,2018 Deferred tax assets: Net operating loss carry forward $ - $ 57,598 Valuation allowance - (57,598 ) Net deferred tax asset $ - $ - |
Significant Accounting Polici_3
Significant Accounting Policies (Details Narrative) - USD ($) | Aug. 23, 2016 | Aug. 19, 2016 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Jan. 06, 2009 |
Capital stock authorized | 75,000,000 | |||||
Common stock, shares authorized | 70,000,000 | 70,000,000 | 70,000,000 | |||
Common stock, par value | $ .001 | $ .001 | $ 0.001 | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |||
Preferred stock, par value | $ .001 | $ 0.001 | $ 0.001 | |||
Capitalized curriculum development costs | $ 20,534 | |||||
Property and equipment, estimated useful life | 5 years | |||||
Dream Homes, Ltd [Member] | ||||||
Acquired ownership interest | 4.50% | |||||
Number of exchange shares for the issuance | 2,287,367 | 2,225,000 | ||||
Agreed to common price per share | $ 0.05 | $ 0.05 | ||||
Acquired rights carrying amount | $ 0 | $ 0 | ||||
Dream Building, LLC [Member] | ||||||
Acquired ownership interest | 100.00% |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 1,653 | $ 1,228 | $ 4,576 | $ 3,684 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Less: Accumulated depreciation | $ (29,026) | $ (24,449) |
Property and Equipment- net | 34,154 | 10,731 |
Office Equipment [Member] | ||
Property and equipment, gross | 4,115 | 4,115 |
Vehicles/Modular Office [Member] | ||
Property and equipment, gross | $ 59,065 | $ 31,065 |
Deposits and Costs Coincident_3
Deposits and Costs Coincident to Acquisition of Land for Development (Details Narrative) | May 28, 2018USD ($) | Dec. 08, 2017ashares | Apr. 26, 2017shares | Dec. 15, 2016USD ($)a | Dec. 14, 2016USD ($) | Mar. 18, 2016USD ($) | Feb. 24, 2016USD ($) | Oct. 31, 2018 | Apr. 30, 2017USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Mar. 14, 2018USD ($) |
Real Estate [Line Items] | |||||||||||||
Payments to acquire land | $ 28,000 | ||||||||||||
Louis Avenue - Bayville, NJ [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Acquisition, description of acquired entity | The company entered into a contract to develop and acquire 17 townhouse lots in Bayville NJ. Engineering and approvals are currently in process. | ||||||||||||
Lacey Township, New Jersy. Marina Contract [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Constructed property retail value | 21,000,000 | ||||||||||||
Dream Homes At Radio Road Contract [Member] | Little Egg Harbor Township, New Jersey [Member] | Minimum [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Constructed property retail value | 350,000 | ||||||||||||
Dream Homes At Radio Road Contract [Member] | Little Egg Harbor Township, New Jersey [Member] | Maximum [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Constructed property retail value | 375,000 | ||||||||||||
Dream Homes At Radio Road Contract [Member] | Little Egg Harbor Township, New Jersey [Member] | 4 Improved Lots [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Constructed property retail value | $ 260,000 | ||||||||||||
Dream Homes At Radio Road Contract [Member] | Little Egg Harbor Township, New Jersey [Member] | Improved Lot One [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Constructed property retail value | 65,000 | ||||||||||||
Dream Homes At Radio Road Contract [Member] | Little Egg Harbor Township, New Jersey [Member] | Improved Lot Two [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Constructed property retail value | 65,000 | ||||||||||||
Dream Homes At Radio Road Contract [Member] | Little Egg Harbor Township, New Jersey [Member] | Improved Lot Three [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Constructed property retail value | 65,000 | ||||||||||||
Dream Homes At Radio Road Contract [Member] | Little Egg Harbor Township, New Jersey [Member] | Improved Lot Four [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Constructed property retail value | $ 65,000 | ||||||||||||
700 KW Property Contract [Member] | Glassboro Township, New Jersey [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Constructed property retail value | $ 900,000 | ||||||||||||
Acquisition, description of acquired entity | 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. | ||||||||||||
NJ Department of Transportation [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Payable to local authorities | 36,750 | ||||||||||||
Dream Homes, Ltd [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Refundable deposit | $ 10,000 | ||||||||||||
Development approval costs | $ 50,000 | ||||||||||||
Infrastructure costs | 1,000,000 | ||||||||||||
Aggregate amount funding for home construction | $ 2,090,000 | ||||||||||||
Lacey Contract [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Purchase price | $ 1,000,000 | ||||||||||||
General Development Corp [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Purchase of undeveloped land | a | 9 | ||||||||||||
Payments to acquire land | $ 15,000 | ||||||||||||
Number of restricted stock issued during period | shares | 100,000 | 100,000 | |||||||||||
Number of restricted stock issued during period, value | $ 5,000 | ||||||||||||
Payments to acquire management contract rights | $ 10,000 | ||||||||||||
Line of credit available amount | $ 50,000 | ||||||||||||
Dream Homes, Ltd [Member] | |||||||||||||
Real Estate [Line Items] | |||||||||||||
Purchase of undeveloped land | a | 7.5 | ||||||||||||
Payments to acquire land | $ 2,166,710 | ||||||||||||
Refundable deposit | $ 25,000 | ||||||||||||
Development approval costs | 100,000 | ||||||||||||
Constructed property retail value | 2,430,000 | ||||||||||||
Restricted shares of common stock committed but not issued as of April 16, 2018 | shares | 162,200 | ||||||||||||
Deposits | $ 25,000 |
Deposits and Costs Coincident_4
Deposits and Costs Coincident to Acquisition of Land for Development - Schedule of Deposits and Costs Coincident to Acquisition of Land for Development (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Total | $ 575,482 | $ 360,967 |
Lacey Township, New Jersey, Marina Contract [Member] | ||
Deposit | 25,000 | 25,000 |
Site engineering, permits, and other costs | 49,959 | 49,959 |
Total | 74,959 | 74,959 |
Clayton - 120 Apartments [Member] | ||
Other deposits | 54,467 | 9,920 |
71 Sheridan Avenue [Member] | ||
Other deposits | 79,150 | 79,150 |
Bayville-17 Units [Member] | ||
Other deposits | 30,949 | 2,674 |
Other [Member] | ||
Other deposits | 7,726 | 2,005 |
Lacey Township, New Jersey, Pines Contract [Member] | ||
Deposit | ||
Cost to acquire contract | 10,000 | 10,000 |
Site engineering, permits, and other costs | 109,265 | 109,265 |
Total | 119,265 | 119,265 |
Berkeley Township, New Jersey, Tallwoods contract [Member] | ||
Deposit | 10,000 | 10,000 |
Site engineering, permits, and other costs | 86,442 | 62,994 |
Total | 96,442 | 72,994 |
Louis Ave - Bayville 17 Units [Member] | ||
Total | 30,949 | |
Station Dr - Forked River [Member] | ||
Total | 54,109 | |
201 East Ave - Clayton - 77 Units [Member] | ||
Total | 52,200 | |
Academy St - Clayton - 2 Lots [Member] | ||
Total | 3,199 | |
Fairview Development - Clayton 120 Units [Member] | ||
Total | 6,874 | |
Lackland (Pines Contract) [Member] | ||
Total | $ (65,532) |
Loans Payable to Related Part_3
Loans Payable to Related Parties - Schedule of Loans Payable to Related Parties (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Net total | $ 54,352 | $ 52,243 |
Loans Payable to Chief Executive Officer [Member] | Loans Payable [Member] | ||
Net total | 70,634 | 29,025 |
Loans Payable to GPIL [Member] | Loans Payable [Member] | ||
Net total | 3,118 | 3,118 |
Loan Payable to DHL [Member] | Loans Payable [Member] | ||
Net total | $ (19,400) | $ 20,100 |
Common Stock Issuances (Details
Common Stock Issuances (Details Narrative) - USD ($) | Jun. 06, 2019 | May 09, 2019 | 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 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2011 | Dec. 31, 2010 |
Common stock per share | $ .10 | $ 0.40 | |||||||||||||||||||||
Number of restricted common stock shares issued for settlement of accounts payable | 27,810 | ||||||||||||||||||||||
Number of restricted common stock issued for settlement of accounts payable | $ 11,124 | ||||||||||||||||||||||
Stock based compensation | $ 0 | $ 18,798 | $ 110,194 | $ 86,774 | |||||||||||||||||||
Proceeds from issuance of common stock | $ 11,400 | ||||||||||||||||||||||
Number of restricted common stock shares issued for reduction of note payable | 100,000 | ||||||||||||||||||||||
Secretary [Member] | |||||||||||||||||||||||
Number of common shares issued for legal services | 25,000 | ||||||||||||||||||||||
Stock based compensation | |||||||||||||||||||||||
Directors [Member] | |||||||||||||||||||||||
Number of common shares issued for legal services | 25,000 | ||||||||||||||||||||||
Stock based compensation | |||||||||||||||||||||||
Two Individuals [Member] | |||||||||||||||||||||||
Common stock per share | $ .08 | ||||||||||||||||||||||
Number of restricted common stock shares issued for consulting services | 58,000 | ||||||||||||||||||||||
Six Individuals [Member] | |||||||||||||||||||||||
Common stock per share | $ .10 | ||||||||||||||||||||||
Number of restricted common stock shares issued for stock-based compensation | 520,000 | ||||||||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||||||||
Common stock per share | $ .10 | ||||||||||||||||||||||
Number of restricted common stock shares issued for debt reduction | 1,000,000 | ||||||||||||||||||||||
DHL [Member] | |||||||||||||||||||||||
Number of restricted common stock shares issued during the period | 100,000 | 162,200 | 25,000 | 71,429 | 275,000 | ||||||||||||||||||
Stock issued during the period restricted stock value | $ 48,658 | $ 10,000 | |||||||||||||||||||||
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 common shares issued for legal services | 40,000 | ||||||||||||||||||||||
Stock based compensation | |||||||||||||||||||||||
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 | ||||||||||||||||||||||
Subscription Agreement [Member] | |||||||||||||||||||||||
Common stock per share | $ 0.40 | $ 0.40 | $ 0.40 | ||||||||||||||||||||
Number of restricted common stock shares issued for cash for subscription agreement | 16,000 | 12,500 | |||||||||||||||||||||
Number of restricted common stock issued for cash for subscription agreement | $ 11,400 | $ 5,000 | |||||||||||||||||||||
Number of common shares issued for legal services | 12,500 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
Minority Stockholder [Member] | Private Placement [Member] | |||||||||||||||||||||||
Minority interest | $ 500,000 | ||||||||||||||||||||||
Minority Stockholder [Member] | DHL [Member] | |||||||||||||||||||||||
Number of restricted common stock shares issued during the period | 100,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21.00% | 21.00% |
Income Taxes - Schedule of Stat
Income Taxes - Schedule of States Federal Income Tax Rate Income Loss Before Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Expected tax (benefit) | $ (12,496) | $ (9,852) | ||
State income taxes, net of Federal (benefit) | (5,298) | (2,816) | ||
Non-deductible stock-based compensation | 33,000 | 14,275 | ||
Change in valuation allowance | (1,607) | |||
Provision for income taxes | $ (10,420) | $ 15,206 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forward | $ 57,598 | |
Valuation allowance | (57,598) | |
Net deferred tax asset |
Business Segments (Details Narr
Business Segments (Details Narrative) | 9 Months Ended |
Sep. 30, 2019Integer | |
Segment Reporting [Abstract] | |
Number of business segments | 1 |
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 | Apr. 28, 2017 | Apr. 26, 2017shares | Feb. 10, 2017USD ($)shares | Sep. 15, 2016USD ($) | Feb. 28, 2018USD ($)shares | Jan. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Apr. 30, 2017USD ($)shares | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($)Integer | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($) |
Line of credit | $ 162,000 | ||||||||||||||||
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 | 11,124 | ||||||||||||||||
Vendor [Member] | |||||||||||||||||
Number common stock shares issued for reduction of accounts payable | shares | 27,810 | ||||||||||||||||
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 conversion price per share | $ / shares | $ 0.75 | ||||||||||||||||
Debt instrument, offering date | Jan. 2, 2018 | ||||||||||||||||
Debt instrument, extended date | Sep. 2, 2018 | ||||||||||||||||
May 8 2017 to May 8 2019 [Member] | Sales Manager [Member] | |||||||||||||||||
Agreement term interval based | 1 year | ||||||||||||||||
Employment Agreement [Member] | April 28, 2017 to December 31, 2020 [Member] | |||||||||||||||||
Agreement term interval based | 1 year | ||||||||||||||||
Lease Agreement [Member] | |||||||||||||||||
Rent expense | $ 1,200 | $ 12,600 | |||||||||||||||
Monthly lease payments | $ 1,000 | ||||||||||||||||
Lease Agreement [Member] | June 20 2017 to June 20 2022 [Member] | |||||||||||||||||
Lease term | 5 years | ||||||||||||||||
Lease term of renewal | 5 years | ||||||||||||||||
Lease Agreement [Member] | November 20 2017 [Member] | |||||||||||||||||
Rent expense | $ 2,200 | ||||||||||||||||
Investor Relations and Consulting Services Agreement [Member] | |||||||||||||||||
Consulting fees expense | $ 0 | $ 2,000 | |||||||||||||||
Investor Relations and Consulting Services Agreement [Member] | Investor [Member] | |||||||||||||||||
Agreement expiration term | Aug. 31, 2017 | ||||||||||||||||
Number of restricted stock issued during period | shares | 56,000 | ||||||||||||||||
Number of restricted stock issued during period, value | $ 2,800 | ||||||||||||||||
Fees payment to investor | $ 2,000 | ||||||||||||||||
General Development Corp [Member] | |||||||||||||||||
Number of restricted stock issued during period | shares | 100,000 | 100,000 | |||||||||||||||
Number of restricted stock issued during period, value | $ 5,000 | ||||||||||||||||
General Development Corp [Member] | 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. | ||||||||||||||||
Construction Contracts [Member] | |||||||||||||||||
Number of contracts assigned | Integer | 26 | ||||||||||||||||
Construction Contracts [Member] | Dream Building, LLC [Member] | |||||||||||||||||
Construction contract price | $ 6,870,825 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Selling, general and administrative expenses | $ 201,902 | $ 98,344 | $ 760,954 | $ 700,535 | |
Dream Homes, Ltd [Member] | |||||
Selling, general and administrative expenses | 277,949 | $ 280,122 | |||
Chief Executive Officer [Member] | |||||
Salary paid | 57,000 | ||||
Secretary and VP [Member] | |||||
Salary paid | 40,800 | ||||
DHL [Member] | |||||
Monthly rent | $ 2,000 | $ 18,000 |
Stock Warrants (Details Narrati
Stock Warrants (Details Narrative) | Feb. 09, 2018USD ($) | Jul. 12, 2017USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)shares | May 08, 2017shares |
Stock based compensation | $ | $ 0 | $ 18,798 | $ 110,194 | $ 86,774 | ||||||
Secretary [Member] | ||||||||||
Stock based compensation | $ | ||||||||||
Stock Warrant [Member] | ||||||||||
Stock warrants issued | 750,000 | |||||||||
Fair value of warrants | $ | $ 407,850 | |||||||||
Requisite service period | 3 years | |||||||||
Stock Warrant [Member] | Exercise Price [Member] | ||||||||||
Warrants, measurement input | $ / shares | 0.60 | |||||||||
Stock Warrant [Member] | Stock Price [Member] | ||||||||||
Warrants per share | $ / shares | $ 0.30 | |||||||||
Stock Warrant [Member] | Dividend Yield [Member] | ||||||||||
Warrants, measurement input | 0 | |||||||||
Stock Warrant [Member] | Risk-Free Interest Rate [Member] | ||||||||||
Warrants, measurement input | 1.53 | |||||||||
Stock Warrant [Member] | Expected Volatility [Member] | ||||||||||
Warrants, measurement input | 171 | |||||||||
Stock Warrant [Member] | Expected Term [Member] | ||||||||||
Warrants, term | 3 years | |||||||||
Stock Warrant [Member] | Through July 20, 2020 [Member] | ||||||||||
Warrants per share | $ / shares | $ 0.30 | |||||||||
Stock Warrant [Member] | Chief Executive Officer [Member] | ||||||||||
Stock warrants issued | 500,000 | |||||||||
Stock Warrant [Member] | Secretary [Member] | ||||||||||
Stock warrants issued | 100,000 | |||||||||
Stock Warrant [Member] | Two Other Directors [Member] | ||||||||||
Stock warrants issued | 60,000 | |||||||||
Stock Warrant [Member] | Non Executive DHL Project Manager Employee [Member] | ||||||||||
Stock warrants issued | 50,000 | |||||||||
Stock Warrant [Member] | Vice President of Business Development [Member] | ||||||||||
Warrants, cancelled | 20,000 | |||||||||
Stock Warrant [Member] | Sales Manager [Member] | ||||||||||
Stock warrants issued | 20,000 | |||||||||
Warrant [Member] | ||||||||||
Stock based compensation | $ | $ 30,394 | $ 33,988 | $ 117,844 |
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 | Sep. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | Aug. 31, 2016 |
Cumulative gross profit | $ 168,826 | $ 155,387 | $ 695,495 | $ 747,672 | ||||
American Arbitration Association [Member] | ||||||||
Payment from customer for contract dispute | $ 75,000 | |||||||
Recognized loss on write-down of accounts receivable | $ 14,318 | |||||||
Recognized loss on costs and estimated earnings in excess of billings | 48,419 | |||||||
Arbitration Award [Member] | American Arbitration Association [Member] | ||||||||
Amount billed to customer | 219,565 | |||||||
Contract receivable claims amount | $ 75,000 | 48,419 | ||||||
Costs and estimated earnings | 267,984 | |||||||
Cumulative gross profit | 17,658 | |||||||
Negative gross profit | (9,012) | |||||||
Contract loss | $ 62,732 | |||||||
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 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | 1 Months Ended |
Oct. 31, 2019 | |
Subsequent Event [Member] | |
Contract to acquire hometown description | A contract was signed to acquire 70 approved townhome units in October 2019, after 31 months of discussion. A contract was signed to purchase 52 approved townhome units in Forked River, NJ. |