Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 15, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Home Treasure Finders, Inc. | |
Entity Central Index Key | 0001527102 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity an Emerging Growth Company? | false | |
Is Entity a Small Business? | false | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 13,205,450 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash | $ 54,506 | $ 63,704 |
Rent receivable | 500 | 500 |
Related party receivable | 41,889 | |
Prepaid expenses | 679 | 1,169 |
Total current assets | 97,574 | 65,373 |
Property and equipment, net | 770,075 | 775,571 |
Other assets: | ||
Security deposits | 1,822 | 1,822 |
Total assets | 869,471 | 842,766 |
Liabilities: | ||
Accounts payable | 21,132 | 7,840 |
Accrued wages | 52,212 | 61,212 |
Accrued liabilities | 85,553 | 83,815 |
Accrued interest – related party | 1,326 | 1,289 |
Operating Lease liability, current portion | 41,889 | |
Note payable, current portion | 787,609 | 789,744 |
Related party note payable | 2,172 | 1,702 |
Total current liabilities | 991,893 | 945,602 |
Long term liability | ||
Operating lease liability, long term | 25,055 | |
Total liabilities | 991,893 | 945,602 |
Shareholders' equity (deficit): | ||
Common stock, no par value; 100,000,000 shares authorized, 113,279,332 and 13,279,332 shares issued and outstanding, respectively | 226,349 | 226,349 |
Additional paid in capital | 96,476 | 96,476 |
Accumulated deficit | (445,247) | (425,661) |
Total shareholders' equity (deficit) | (122,422) | (102,836) |
Total liabilities and shareholders' equity (deficit) | $ 869,471 | $ 842,766 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Stockholders Equity | ||
Common Stock par value | $ 0 | $ 0 |
Common Stock Authorized | 100,000,000 | 100,000,000 |
Common Stock Issued | 13,279,332 | 13,279,332 |
Common Stock Outstanding | 13,279,332 | 13,279,332 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Uanudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Commission income | $ 76,087 | $ 48,004 |
Rental and property management income | 86,510 | 70,907 |
Total revenue | 162,597 | 118,911 |
Operating expenses: | ||
Commision expense | 60,623 | 31,860 |
Professional fees | 10,308 | 6,810 |
General and Administrative | 93,461 | 75,530 |
Total operating expenses | 164,392 | 114,200 |
Operating income | (1,795) | 4,711 |
Other expense | ||
Interest expense | (17,791) | (16,076) |
Total other expense | (17,791) | (16,076) |
Income before taxes | (19,586) | (11,365) |
Income tax expense | ||
Net income (loss) | $ (19,586) | $ (11,365) |
Basic and diluted loss per share | $ 0 | $ 0 |
Basic and diluted weighted average common shares outstanding | 13,279,332 | 13,205,450 |
Shareholders Equity (Unaudited)
Shareholders Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, shares at Dec. 31, 2017 | 13,205,450 | |||
Beginning Balance, value at Dec. 31, 2017 | $ 215,267 | $ 96,476 | $ (400,356) | $ (88,613) |
Net loss | (11,365) | (11,365) | ||
Ending Balance, shares at Mar. 31, 2018 | 13,205,450 | |||
Ending Balance, value at Mar. 31, 2018 | $ 215,267 | 96,476 | (411,721) | (99,978) |
Beginning Balance, shares at Dec. 31, 2018 | 13,205,450 | |||
Beginning Balance, value at Dec. 31, 2018 | $ 215,267 | 96,476 | (411,721) | (102,836) |
Net loss | (19,586) | (19,586) | ||
Ending Balance, shares at Mar. 31, 2019 | 13,205,450 | |||
Ending Balance, value at Mar. 31, 2019 | $ 215,267 | $ 96,476 | $ (445,247) | $ (122,422) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Uanudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (19,586) | $ (11,365) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization expense | 5,496 | 5,497 |
Changes in operating assets and liabilities: | ||
Decrease in rent receivable | 2,966 | |
(Increase) decrease in prepaid expense | 490 | (1,248) |
(Increase) in right of use asset | (41,889) | |
Increase in lease liability | 41,889 | |
Increase (decrease) in accrued interest | 37 | (3,287) |
Increase in accrued salary | (9,000) | 21,000 |
Increase (decrease) in accrued liabilities | 1,738 | (5,882) |
Increase (decrease) in accounts payable | 13,292 | (4,025) |
Net cash provided by (used in) operating activities | (7,533) | 3,656 |
Cash flows from financing activities | ||
Proceeds from related party payable | 1,353 | 40 |
Payment of related party payable | (883) | (10,835) |
Payment of long term debt | (2,135) | (2,835) |
Net cash used in financing activities | (1,665) | (13,630) |
Net change in cash | (9,198) | (9,974) |
Cash, beginning of period | 63,704 | 39,463 |
Cash, end of period | 54,506 | 39,463 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for Income taxes | ||
Cash paid during the period for Interest | $ 17,754 | $ 15,998 |
1 Basis of Presentation
1 Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 3: Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases” which was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 are effective for our quarter ended March 31, 2019. |
2 Going Concern
2 Going Concern | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | Note 2: 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. These factors, among others, may indicate that the Company will be unable 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. |
3 Recently Adopted Accounting P
3 Recently Adopted Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Note 3: Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases” which was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 are effective for our quarter ended March 31, 2019. |
4 Related Party Transaction
4 Related Party Transaction | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Note 4: Related Party Transaction During the three months ended March 31, 2019, the related party payable had a net increase of $470. The balance of the related party payable was $2,172 and $1,702 as of March 31, 2019 and December 31, 2018, respectively. This payable was due on demand and has an interest rate of 8%. Accrued interest on this payable was $1,326 and $1,289 at March 31, 2019 and December 31, 2018, respectively. Interest expense for the three months ended March 31, 2019 and 2018 was $37 and $78, respectively. |
5 Property and Equipment
5 Property and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 5: Property and Equipment The Company's capital assets consist of warehouse units, computer equipment, office furniture and office leasehold improvements. 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. Property and equipment as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 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 (108,374 ) (102,878 ) Total property and equipment $ 770,075 $ 775,571 Depreciation and amortization expense was $5,496 and $5,497 for the three months ended March 31, 2019 and 2018, respectively. |
6 Long-Term Debt
6 Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | Note 6: Long-Term Debt On September 15, 2014, the Company entered into a promissory note for $840,000 on the purchase of 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. As of March 31, 2019 the balance of the note was $787,609. LEASE TERMS OF WAREHOUSE UNITS The three warehouse units are currently leased to one tenant under a five year lease starting January 1, 2019 through January 31, 2024. The tenant shall have the right to renew the term for one additional five year term. The tenant also has the right to purchase the building under the following terms: 1. Tenant may purchase the property for the price of $1,055,000 if tenant enters into a brokerage relationship with the buyer’s agent or transaction broker. 2. If tenant does not engage with a buyer’s agent or transaction broker, the price shall be $1,025,000. 3. The deadline for tenant to close on his option to purchase shall be July 31, 2019. 4. Seller reserves the right to sell the property to any other party at any time without restriction as long as the sale does not impede upon the tenant lease term or rights thereof. The base rent payment each month is $10,000 plus additional rent each month to cover property taxes and property insurance. For the three months ending March 31, 2019, the Company received rental income of $33,588. The following are the future minimum lease payments at March 31, 2019: Amount 2019 $ 132,900 2020 132,900 2021 132,900 2022 132,900 2023 5,922 Future lease income $ 537,522 |
7_ Commitments
7: Commitments | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 7: Commitments Starting May 1, 2018, the Company entered into a contract to lease its office premises. The contract is effective until April 30, 2021 and is for $1,822 per month during the first year with a 3 percent increase each year thereafter. ASU 2016-02 was adopted in the quarter ended March 31, 2019. The following are the future minimum lease payments at March 31, 2019: Amount 2019 $ 76,834 2020 22,966 2021 7,730 Total 47,830 Less interest factor (5,641) Total to Lease Liability $ 41,889 |
8 Subsequent Events
8 Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8: Subsequent Events The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance. |
4 Property and Equipment (Table
4 Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Depreciation | Property and equipment as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2019 December 31, 2018 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 (108,374 ) (102,878 ) Total property and equipment $ 770,075 $ 775,571 |
7_ Commitments (Tables)
7: Commitments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Amount 2019 $ 76,834 2020 22,966 2021 7,730 Total 47,830 Less interest factor (5,641) Total to Lease Liability $ 41,889 |
3 Related Party Transaction (De
3 Related Party Transaction (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |||
Increase in related party payable | $ 470 | ||
Balance of the related party payable | 2,172 | $ 1,702 | |
Accrued interest on this payable | 1,326 | $ 1,289 | |
Interest expense | $ 37 | $ 78 | |
Interest Rate | 8.00% | 8.00% |
4 Property and Equipment (Detai
4 Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 5,496 | $ 5,497 |
4 Property and Equipment - Depr
4 Property and Equipment - Depreciation (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
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 | (86,389) | (80,892) |
Total property and equipment | $ 792,060 | $ 797,557 |
5 Long-Term Debt - (Details)
5 Long-Term Debt - (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
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 at end of the fifth year | $ 777,255 |
5 Long-Term Debt - (Details Na
5 Long-Term Debt - (Details Narrative) | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2018 | $ 8,255 |
2019 | 789,774 |
Total maturities for note payable outstanding | $ 798,029 |
5 Long-Term Debt (Details Narra
5 Long-Term Debt (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | ||
Promissory note for purchase three warehouse units | $ 840,000 | |
Length of time to pay off amortization note | 25 years | |
Balance of the note | $ 809,037 |