| ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Organization Home Treasure Finders, Inc. (the "Company")
was initially incorporated on July 28, 2008 in the State of Colorado. The Company is in the business of operating
a real estate business and operates in Colorado as a State Licensed "Employing Broker" number 100005455 issued on July
1, 2006. 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 grower. The Company's tenant 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, 2018 and 2017:
2018 2017
Deferred tax assets:
NOL carryover $ 108,700 $ 86,600
Related party accruals 2,400 1,900
Accrued payroll 12,700 9,800
Deferred tax liabilities:
Depreciation 9,900 6,000
Valuation allowance (133,700 ) (104,300 )
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, 2018 and 2017 due to the following:
2018 2017
Book income $ (6,500 ) $ (7,200 )
Depreciation (2,200 ) (1,600 )
Related party accruals 1,400 (1,600 )
Meals and entertainment 1,000 600
Accrued payroll 12,700 2,700
Valuation allowance (6,400 ) 7,100
$ - - At December 31, 2018, the Company had net operating
loss carryforwards of approximately $418,000 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, 2018 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. The years 2015-2018 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, 2018 and 2017 there were no variances between the basic and diluted loss per share as there
were no potentially dilutive securities outstanding. 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 In May 2014, the FASB issued Accounting Standards
Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition
requirements, including most industry specific guidance. The new standard requires a company to recognize revenue when it transfers
goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods
or services. The FASB has subsequently issued amendments to ASU 2014-09 which have the same effective date and transition date
of January 1, 2018. The adoption of this guidance did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15,
“Statement of Cash Flows” which was issued to improve uniformity in how certain cash receipts and cash payments are
presented and classified in the statement of cash flows. The amendments in ASU 2016-15 were effective for fiscal years beginning
after December 15, 2017, including interim periods within those fiscal years. The Company adopted this guidance effective January
1, 2018, and it did not have any impact on the Company’s statements of cash flows. 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. |
