| ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Organization Home Treasurer Finders, Inc. (the "Company")
was initially incorporated on July 28, 2008 in the State of Colorado. The Company has two subsidiaries, Ambermax III,
Inc. and HTMF Cannabis Holdings, Inc. On January 28, 2008 Ambermax III, Inc. became our wholly subsidiary through a
merger consummated as a share exchange. The purpose of the merger was to obtain $12,676 in cash held by Ambermax III, Inc. The Company is in the business of operating
a real estate business and operates in Colorado as a State Licensed "Employing Broker" number 1000021235 issued on February
13, 2012. Effective April 1, 2013, all property management activities, revenues
and expenses in connection with CW Properties, a property management company owned by the CEO, were transferred to a wholly owned
subsidiary of Home Treasure Finders, Inc. All net revenue earned by CW Properties has been booked as consolidated revenue
of Home Treasure Finders, Inc. On March 3, 2014 the Company formed a wholly subsidiary, HMTF Cannabis
Holdings, Inc. The purpose of the subsidiary is to purchase Colorado properties that qualify for legal cultivation of cannabis.
The properties will then be improved and leased to licensed third party growers. The Company generates income from its real estate holdings.
On September 15, 2014 the Company acquired a vacant warehouse property in Denver zoned for cannabis cultivation. On November 5
and December 1, 2014 the Company leased the warehouse to unrelated licensed growers. The Company's tenants have invested cash to
improve their respective leaseholds per lease terms utilizing architectural and engineering documents we procured and provided. b. Accounting Method The Company's financial statements are prepared
using the accrual method of accounting. The Company has elected a December 31 year-end. c. Estimates The preparation of financial statements in
conformity with generally accepted accounting principles in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. d. Income Taxes Deferred taxes are provided on a liability method whereby deferred
tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax
liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the
reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance
when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be
realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date
of enactment. Net deferred tax assets consist of the following components as of
December 31, 2015 and 2014:
2015 2014
Deferred tax assets:
NOL carryover $ 122,100 $ 62,600
Accrued expense 25,900 10,100
Deferred tax liabilities:
Depreciation (5,400 ) (1,500 )
Valuation allowance (142,600 ) (71,200 )
Net deferred tax asset $ - $ - The income tax provision differs from the amount
of income tax determined by applying the U.S. income tax rate to pretax income from continuing operations for the year ended December
31, 2015 and 2014 due to the following:
2015 2014
Book income $ (2,100 ) $ (27,400 )
Depreciation 100
Accrued expenses (1,200 ) 2,400
Stock for services - 1,600
Valuation allowance 3,200 (23,400 )
$ - - At December 31, 2015, the Company had net operating
loss carryforwards of approximately $313,000 that may be offset against future taxable income as long as the "continuity of
ownership" test is met. No tax benefit has been reported in the December 31, 2015 financial statements since the
potential tax benefit is offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act
of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should
a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. The Company has analyzed filing positions in all of the federal
and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions.
The Company has identified its federal tax return and its state tax return in Colorado as "major" tax jurisdictions,
as defined. All years are open to examination by the IRS. No reserves for uncertain tax positions have
been recorded. The Company adopted changes issued by FASB
which prescribed a recognition threshold and measurement attribute for financial statement recognition and measurement of an uncertain
tax position taken or expected to be taken in a tax return. Under the guidance, an uncertain income tax position must be recognized
at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. e. Loss per Common Share The Company reports net loss per share using
a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted
net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock
equivalents. At December 31, 2015 and 2014 there were no variances between the basic and diluted loss per share as there
were no potentially dilutive securities outstanding. The computation of loss per common share is
based on the weighted average number of shares outstanding for the years ended December 31, 2015 and 2014 as follows:
For the Year Ended December 31,
2015 2014
Net loss (numerator) $ (10,476 ) $ (139,482 )
Shares (denominator) 13,205,450 13,205,450
Net loss per share $ (0.00 ) $ (0.01 ) f. Revenue Recognition Revenue is recognized when services are provided
and collection is reasonably assured. Revenue is recognized in a real estate transaction when the closing occurs on
the home sale and commissions are received. For the property management activities, revenue is recognized when rent
is received from the tenant. For rental income, revenue is recognized when the services are provided, and collection is reasonably
assured. g. Newly Adopted Accounting Pronouncements The Company has reviewed all recently issued,
but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position
or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect
on its current or future earnings or operations. h. Principles of consolidations The consolidated financial statements include
the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions are eliminated
in consolidation. |
