Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Apr. 01, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Home Treasure Finders, Inc. | |
Entity Central Index Key | 0001527102 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Public Float | $ 264,436 | |
Entity Common Stock, Shares Outstanding | 13,279,332 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash | $ 63,704 | $ 49,437 |
Rent receivable | 500 | 4,176 |
Prepaid expenses | 1,169 | |
Total current assets | 65,373 | 53,613 |
Property and equipment, net | 775,571 | 797,557 |
Other assets: | ||
Security deposits | 1,822 | 1,400 |
Total assets | 842,766 | 852,570 |
Liabilities: | ||
Accounts payable | 7,840 | 21,017 |
Accrued wages | 61,212 | 43,612 |
Accrued liabilities | 83,815 | 61,788 |
Accrued interest - related party | 1,289 | 4,505 |
Note payable, current portion | 789,744 | 11,090 |
Related party note payable | 1,702 | 9,397 |
Total current liabilities | 945,602 | 151,409 |
Long term debt | 789,774 | |
Total liabilities | 945,602 | 941,183 |
Commitments and contingencies | ||
Shareholders' equity (deficit): | ||
Common stock, no par value; 100,000,000 shares authorized, 13,279,332 and 13,205,450 shares issued and outstanding, respectively | 226,349 | 215,267 |
Additional paid in capital | 96,476 | 96,476 |
Accumulated deficit | (425,661) | (400,356) |
Total shareholders' equity (deficit) | (102,836) | (88,613) |
Total liabilities and shareholders' equity (deficit) | $ 842,766 | $ 852,570 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders Equity | ||
Common Stock par value | $ .00 | $ 0 |
Common Stock Authorized | 100,000,000 | 100,000,000 |
Common Stock Issued | 13,279,332 | 13,205,450 |
Common Stock Outstanding | 13,279,332 | 13,205,450 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Commission income | $ 258,042 | $ 152,548 |
Property and rental management income | 300,111 | 259,848 |
Total revenue | 558,153 | 412,396 |
Operating expenses: | ||
Commission expense | 117,826 | 46,842 |
Professional fees | 34,425 | 27,533 |
General and Administrative | 372,119 | 323,325 |
Total operating expenses | 524,370 | 397,700 |
Operating profit | 33,783 | 14,696 |
Other Income (expense) | ||
Other income | 11,605 | |
Gain (loss) on settlement of debt | (5,577) | 14,500 |
Interest expense | (65,116) | (65,742) |
Total other (expense) | (59,088) | (51,182) |
Loss before income taxes | (25,305) | (36,486) |
Income tax expense | ||
Net loss | $ (25,305) | $ (36,486) |
Basic and diluted loss per share | $ 0 | $ 0 |
Basic and diluted weighted average common shares outstanding | 13,205,652 | 13,205,450 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Deficit) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, shares at Dec. 31, 2016 | 13,205,450 | |||
Beginning Balance, value at Dec. 31, 2016 | $ 215,267 | $ 96,476 | $ (344,863) | $ (33,120) |
Net loss | (36,486) | (36,486) | ||
Ending Balance, shares at Dec. 31, 2017 | 13,205,450 | |||
Ending Balance, value at Dec. 31, 2017 | $ 215,267 | 96,476 | (400,356) | (88,613) |
Common stock issued for services, shares | 13,334 | |||
Common stock issued for services, value | $ 2,000 | 2,000 | ||
Common stock issued for payment of debt, shares | 60,548 | |||
Common stock issued for payment of debt, value | $ 9,082 | 9,082 | ||
Net loss | (25,305) | (25,305) | ||
Ending Balance, shares at Dec. 31, 2018 | 13,279,332 | |||
Ending Balance, value at Dec. 31, 2018 | $ 226,349 | $ 96,476 | $ (425,661) | $ (102,836) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (25,305) | $ (36,486) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 21,986 | 22,646 |
Common stock issued for services | 2,000 | |
Loss on settlement of debt | 5,577 | |
Changes in operating assets and liabilities: | ||
(Increase) decrease in rent receivable | 3,676 | (3,676) |
(Increase) decrease in prepaid expense | (1,169) | 1,737 |
(Increase) decrease in security deposit | (422) | |
Increase (decrease) in accounts payable | (9,672) | 2,681 |
Increase (decrease) in accrued salary | 17,600 | 15,000 |
Increase in accrued liabilities | 22,027 | 5,116 |
Increase (decrease) in accrued interest | (3,216) | 1,200 |
Net cash provided by operating activities | 33,082 | 8,218 |
Cash flows used in investing activities: | ||
Net cash used in investing activities: | ||
Cash flows used in financing activities: | ||
Payment of long term debt | (11,120) | (10,790) |
Proceeds from related party payable | 4,375 | 7,027 |
Payment on related party payable | (12,070) | (15,220) |
Net cash provided by (used in) financing activities | (18,815) | (18,983) |
Net change in cash | 14,267 | (10,765) |
Cash, beginning of year | 49,437 | 60,202 |
Cash, end of year | 63,704 | 49,437 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for Income taxes | ||
Cash paid during the period for Interest | $ 64,967 | $ 64,316 |
1 ORGANIZATION AND SUMMARY OF S
1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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. |
2 PROPERTY AND EQUIPMENT
2 PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 2 – PROPERTY AND EQUIPMENT The Company's capital assets consist of warehouse units, computer equipment, office furniture and leasehold improvements for its offices. Depreciation and amortization is calculated using the straight-line method over the estimated useful life of the asset, ranging from 18 months to 39 years. Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred. The cost and related accumulated depreciation of any capital assets that are sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal. Fixed assets and related depreciation for the year ended December 31, 2018 and 2017 are as follows: 2018 2017 Computer equipment $ 5,672 $ 5,672 Furniture and fixtures 7,777 7,777 Leasehold improvements 4,000 4,000 Warehouse units 861,000 861,000 Accumulated amortization and depreciation (102,878 ) (80,892 ) Total fixed assets $ 775,571 $ 797,557 Depreciation expense was $21,986 and $22,646 for the years ended December 31, 2018 and 2017, respectively. |
3 LONG-TERM DEBT
3 LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 3 – LONG-TERM DEBT On September 15, 2014, the Company entered into a promissory note for $840,000 on the purchase three warehouse units known as 4420, 4430 and 4440 Garfield Street, Denver, Colorado. The Company is leasing each of the three separate units to licensed third party growers for cannabis cultivation. The terms of the variable interest 25 year amortization note carried by the seller of the property call for payments to seller as follows: 1 First and Second year interest rate at 7% with 25 year amortization payment at $5,937 per month. 2. Third and Fourth year at 8% with 25 year amortization payment at $6,278 per month. 3. Fifth year at 9% with 25 year amortization payment at $6,640 per month. 4. Balloon payment of $777,255 due on September 14, 2019 The note to seller is secured by the three warehouse units. The three warehouse units are currently leased to one tenant. |
4 COMMON STOCK
4 COMMON STOCK | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
COMMON STOCK | NOTE 4 – COMMON STOCK The aggregate number of shares the Company has authority to issue is 100,000,000 shares of common stock having no par value per share. The shares of this class of common stock have unlimited voting rights and constitute the sole voting group of the Company. Each shareholder has one vote for each share of stock owned. Cumulative voting shall not be permitted in the election of directors or otherwise. We issued 13,334 shares for services valued at $2,000 at $0.15 per share. Also, 60,548 shares were issued to pay a debt amounting to $9,082 at $0.15 per share. |
5 RELATED PARTY TRANSACTIONS
5 RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 5 – RELATED PARTY TRANSACTIONS During the year ended December 31, 2018, the related party payable had a net decrease of $7,695. The balance of the related party payable was $1,702 and $9,397 as of December 31, 2018 and 2017, respectively. This payable is due on demand and has an interest rate of 8%. Accrued interest on this payable was $1,289 and $4,505 at December 31, 2018 and 2017, respectively. The Company pays base compensation of $10,000 per month to the CEO for his services. The Company also pays additional override of 10% based upon commission revenue. The balance accrued at December 31, 2018 and 2017 was $61,212 and $43,612, respectively. |
6 COMMITMENTS AND CONTINGENCIES
6 COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 – COMMITMENTS AND CONTINGENCIES Operating Lease The Company leases its office space under a non-cancel-able lease agreement accounted for as an operating lease. We are leasing this facility for $63,765 for the term of the lease which ends on April 30, 2021. The monthly payment is $1,822 for 35 months. At that time we shall have the option of extending the lease term for an additional three year term. Rent expense was $18,533 and $16,800 for the years ended December 31, 2018, and 2017, respectively. Minimum rental payments under the non-cancelable operating leases are as follows: Years ending December 31, Amount 2019 $ 21,862 2020 21,862 Thereafter 9,272 $ 52,996 |
7 GOING CONCERN
7 GOING CONCERN | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 7 – GOING CONCERN The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has not yet generated sufficient cash flow and net income. This factor, among others, indicates that there is substantial doubt that the Company will be able to continue as a going concern for a reasonable period of time. The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company's continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. The Company intends to seek additional funding through equity offerings to fund its business plan. There is no assurance that the Company will be successful in raising additional funds. |
8 SUBSEQUENT EVENTS
8 SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUBSEQUENT EVENTS | NOTE 8 – SUBSEQUENT EVENTS The Company has evaluated all subsequent events through the date the financial statements were issued, per the requirements of ASC Topic 855, and has determined that there are no events to report. |
1 ORGANIZATION AND SUMMARY OF_2
1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
a. Organization | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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. |
1 ORGANIZATION AND SUMMARY OF_3
1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Net deferred tax assets | 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 $ - $ - |
Income tax provision | 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 $ - - |
2 PROPERTY AND EQUIPMENT (Table
2 PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Fixed assets | Fixed assets and related depreciation for the year ended December 31, 2018 and 2017 are as follows: 2018 2017 Computer equipment $ 5,672 $ 5,672 Furniture and fixtures 7,777 7,777 Leasehold improvements 4,000 4,000 Warehouse units 861,000 861,000 Accumulated amortization and depreciation (102,878 ) (80,892 ) Total fixed assets $ 775,571 $ 797,557 |
6 COMMITMENTS AND CONTINGENCI_2
6 COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum rental payments | Minimum rental payments under the non-cancelable operating leases are as follows: Years ending December 31, Amount 2019 $ 21,862 2020 21,862 Thereafter 9,272 $ 52,996 |
1 ORGANIZATION AND SUMMARY OF_4
1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net deferred tax assets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
NOL carryover | $ 108,700 | $ 86,600 |
Related party accruals | 2,400 | 1,900 |
Accrued expense | 12,700 | 9,800 |
Deferred tax liabilities: | ||
Depreciation | 9,900 | 6,000 |
Valuation allowance | (133,700) | (104,300) |
Net deferred tax asset |
1 ORGANIZATION AND SUMMARY OF_5
1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income tax provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
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 |
Income tax provision |
1 ORGANIZATION AND SUMMARY OF_6
1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | |
Loss carryforwards - approximate | $ 418,000 |
2 PROPERTY AND EQUIPMENT - Depr
2 PROPERTY AND EQUIPMENT - Depreciation (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Computer equipment | $ 5,672 | $ 5,672 |
Furniture and fixtures | 7,777 | 7,777 |
Leasehold improvements | 4,000 | 4,000 |
Warehouse units | 861,000 | 861,000 |
Accumulated amortization and depreciation | (102,878) | (80,892) |
Total fixed assets | $ 775,571 | $ 797,557 |
2 PROPERTY AND EQUIPMENT (Detai
2 PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 21,986 | $ 22,646 |
3 LONG-TERM DEBT - (Details Nar
3 LONG-TERM DEBT - (Details Narrative) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Disclosure [Abstract] | |
First and Second year interest rate | 7.00% |
First and Second year 25 year amortization monthly payment | $ 5,937 |
Third and Fourth year interest rate | 8.00% |
Third and Fourth year 25 year amortization monthly payment | $ 6,278 |
Fifth year interest rate | 9.00% |
Fifth year 25 year amortization monthly payment | $ 6,640 |
Balloon payment | 777,255 |
Promissory note for purchase three warehouse units | $ 840,000 |
Length of time to pay off amortization note | 25 years |
4 COMMON STOCK (Details Narrati
4 COMMON STOCK (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock Authorized | 100,000,000 | 100,000,000 |
Common stock issued for services, value | $ 2,000 | |
Common stock issued for payment of debt, value | $ 9,082 | |
Common Stock | ||
Common stock issued for services, shares | 13,334 | |
Common stock issued for services, value | $ 2,000 | |
Common stock issued for payment of debt, shares | 60,548 | |
Common stock issued for payment of debt, value | $ 9,082 | |
Share price per share | $ 0.15 |
5 RELATED PARTY TRANSACTIONS (D
5 RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
Net decrease in related party payable | $ 7,695 | |
Balance of the related party payable | 1,702 | $ 9,397 |
Accrued interest on this payable | 1,289 | 4,505 |
Monthly salary | 10,000 | 10,000 |
Accrued salary | $ 61,212 | $ 43,612 |
Interest Rate | 8.00% |
6 COMMITMENTS AND CONTINGENCI_3
6 COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 21,862 |
2020 | 21,862 |
Thereafter | 9,272 |
Total | $ 52,996 |
6 COMMITMENTS AND CONTINGENCI_4
6 COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease balance | $ 63,765 | |
Rent expense | $ 18,533 | $ 16,800 |
Lease Expiration Date | Apr. 30, 2021 | |
Payment description | The monthly payment is $1822 for 35 months. At that time we shall have the option of extending the lease term. for an additional three year term. |