Cryomass (CRYM) 10-Q 15 May 17 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	May 12, 2017
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Trading Symbol	afct
Entity Registrant Name	AFC BUILDING TECHNOLOGIES INC.
Entity Central Index Key	1,533,030
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		34,760,008
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 37	$ 163
Total Assets	37	163
Current Liabilities
Accounts payable and accrued liabilities	71,013	68,304
Due to related party	8,021	8,021
Total Liabilities	79,034	76,325
Commitments and Contingencies	0	0
Stockholders' Deficit
Preferred stock, $0.001 par value, 50,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.001 par value, 200,000,000 shares authorized, 34,760,008 and 34,760,008 shares issued and outstanding, respectively	34,760	34,760
Additional paid in capital	201,369	201,369
Accumulated deficit	(315,126)	(312,291)
Total Stockholders' Deficit	(78,997)	(76,162)
Total Liabilities and Stockholders' Deficit	$ 37	$ 163

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Preferred Stock, Par Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	34,760,008	34,760,008
Common Stock, Shares, Outstanding	34,760,008	34,760,008

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Expenses
Bank charges and interest	$ 42	$ 42	$ 126	$ 126
Selling, marketing and administrative	1,873	0	2,709	3,555
Total Operating Expenses	1,915	42	2,835	3,681
Loss Before Other Expenses	(1,915)	(42)	(2,835)	(3,681)
Other Expenses
Gain on foreign exchange	0	3,958	0	6,933
Income (Loss) before taxes	(1,915)	3,916	(2,835)	3,252
Income taxes	0	0	0	0
Net Income (Loss) from continuing operations	(1,915)	3,916	(2,835)	3,252
Discontinued Operations
Loss from discontinued operations	0	0	0	(78,316)
Net Income (Loss)	(1,915)	3,916	(2,835)	(75,064)
Foreign currency translation adjustments	0	0	0	14,671
Comprehensive Income (Loss)	$ (1,915)	$ 3,916	$ (2,835)	$ (60,393)
Income (Loss) per common share:
Income (Loss) From Continuing Operations - Basic and Diluted	$ 0	$ 0	$ 0	$ 0
Income (Loss) From Discontinued Operations - Basic and Diluted	$ 0	$ 0	$ 0	$ 0
Weighted Average Shares Outstanding	34,760,008	34,760,008	34,760,008	34,760,008

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities
Net Loss	$ (2,835)	$ (75,064)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation expense	0	142
Changes in operating assets and liabilities:
Prepaid expenses	0	2,915
Inventories	0	236
Accounts receivable	0	(62,693)
Due to related party	0	11,925
Accounts payable and accrued liabilities	2,709	(27,079)
Net Cash Used in Operating Activities	(126)	(149,618)
Financing Activities
Bank overdraft	0	31,616
Net change in line of credit	0	76,148
Net Cash Provided By Financing Activities	0	107,764
Effect of Exchange Rate Changes on Cash	0	(3,214)
Decrease In Cash	(126)	(45,068)
Cash - Beginning of Period	163	45,272
Cash - End of Period	37	204
Supplemental Disclosures
Interest paid	0	5,542
Income taxes paid	$ 0	$ 0

Nature of Operations

Nature of Operations	9 Months Ended
	Sep. 30, 2016
Nature of Operations [Text Block]	1. Nature of Operations AFC Building Technologies Inc. (the “Company”) was incorporated under the laws of the State of Nevada on May 10, 2011. Effective January 10, 2014, the Company changed its name from Auto Tool Technologies Inc. to AFC Building Technologies Inc. The Company was engaged in the sales and distribution of hand tools in Canada. On June 30, 2015, the Company decided that continuing the operations of its wholly-owned subsidiary, DSL Products Limited (“DSL”) would no longer be economically feasible. All of the shares of DSL held by the Company were returned to DSL for cancellation and as of June 30, 2015 the Company no longer held any interest in DSL. The Company determined the operations of DSL met the criteria of being reported as a discontinued operation. The results of operations from DSL are presented as “Loss from discontinued operations” in the Statements of Operations. Unless otherwise noted, the discussion in the notes to these Financial Statements relates solely to the Company's continuing operations. The Company is in the process of determining a new line of business. Going Concern These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders and note holders, the ability of the Company to obtain necessary equity financing to continue operations, and ultimately the attainment of profitable operations. Since June 30, 2015, the Company has not generated any revenues, has a working capital deficit of $78,997, and has an accumulated deficit of $315,126. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These condensed financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the Securities and Exchange Commission (“SEC”) instructions for companies filing Form 10-Q. In the opinion of management, the unaudited condensed financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2016, and the results of operations and cash flows for the periods ended September 30, 2016 and 2015. The financial data and other information disclosed in the notes to the interim financial statements related to the periods are unaudited. The results for the nine-month period ended September 30, 2016 are not necessarily indicative of the results to be expected for any subsequent quarter or the entire year ending December 31, 2016. The unaudited interim financial statements have been condensed and certain information and footnote disclosure normally included in financial statements in accordance with GAAP have been omitted pursuant to the Securities and Exchange Commission's rules and regulations and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these unaudited interim financial statements should be read in conjunction with the Company’s annual audited financial statements and notes thereto for the year ended December 31, 2015, included in the Company’s Form 10-K filed on April 20, 2017 with the SEC. Discontinued Operations The results of discontinued operations are presented separately, net of tax, from the results of ongoing operations for all periods presented. The expenses included in the results of discontinued operations are the direct operating expenses incurred by the disposed components that may be reasonably segregated from the costs of the ongoing operations of the Company. The Company disposed of DSL on June 30, 2015. Use of Estimates The preparation of these consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to useful life and recoverability of long-lived assets, collectability of receivables and related bad debt expenses, inventory shrinkage and write off, deferred income tax asset valuations and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Text Block]	2. Related Party Transactions a) At September 30, 2016, the Company owed $8,021 (December 31, 2015 - $8,021) to the President of the Company. These were monies advanced for general working capital purposes, (i.e. accounting and professional fees) as required. The amount is unsecured, non-interest bearing and due on demand. b) During the three months ended September 30, 2016, the Company incurred $1,873 (2015 - $27,640) of contractor expenses to the President of the Company.

Discontinued Operations and Dec

Discontinued Operations and Deconsolidation of Subsidiary	9 Months Ended
	Sep. 30, 2016
Discontinued Operations and Deconsolidation of Subsidiary [Text Block]	3. Discontinued Operations and Deconsolidation of Subsidiary On June 30, 2015, the Company discontinued the operations of its wholly-owned subsidiary DSL. DSL sold hand tools in Canada. All of the shares of DSL held by the Company were returned to DSL for cancellation and as of June 30, 2015 the Company no longer held any interest in DSL. The Company recorded the deconsolidation of the subsidiary as an equity transaction, which resulted in a charge of $65,068 to additional paid in capital. The Company has recognized the separation of DSL in accordance with Accounting Standards Codification (ASC) 205-20, Discontinued Operations Summarized results of the discontinued operation are as follows for the nine months ended September 30, 2015: Nine Months Ended September 30, 2015 Revenue $ 359,017 Cost of Sales 265,888 Gross Profit 93,129 Expenses Bank charges and interest 6,811 Selling, marketing and administrative 136,290 Total Expenses 143,101 Other Expenses Gain (Loss) on foreign exchange (28,344 ) Net Income (Loss) from Discontinued Operations $ (78,316 ) Cash flows from discontinued operations: Nine Months Ended September 30, 2015 Operating cash flows $ (149,490 ) Investing cash flows – Financing cash flows 107,765 Net cash flows used by discontinued operations $ (41,725 )

Licensing Agreement

Licensing Agreement	9 Months Ended
	Sep. 30, 2016
Licensing Agreement [Text Block]	4. Licensing Agreement On June 30, 2015, the Company entered into a license agreement with a shareholder of the Company. Pursuant to the agreement, the Company received an exclusive worldwide license in regards to 15 domain names related to the automotive e-commerce business for a period of 40 years. In consideration for the granting of the license, the Company will pay to the licensor a royalty of 2.5% of gross sales for any revenue derived from the use of the licensed domains.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Text Block]	5. Subsequent Events Management has evaluated subsequent events pursuant to ASC Topic 855, and has determined there are no subsequent events to disclose.

Discontinued Operations and D11

Discontinued Operations and Deconsolidation of Subsidiary (Tables)	9 Months Ended
	Sep. 30, 2016
Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures [Table Text Block]	Nine Months Ended September 30, 2015 Revenue $ 359,017 Cost of Sales 265,888 Gross Profit 93,129 Expenses Bank charges and interest 6,811 Selling, marketing and administrative 136,290 Total Expenses 143,101 Other Expenses Gain (Loss) on foreign exchange (28,344 ) Net Income (Loss) from Discontinued Operations $ (78,316 )
Schedule Of Disposal Groups Including Discontinued Operations Cash Flows Disclosures [Table Text Block]	Nine Months Ended September 30, 2015 Operating cash flows $ (149,490 ) Investing cash flows – Financing cash flows 107,765 Net cash flows used by discontinued operations $ (41,725 )

Nature of Operations (Narrative

Nature of Operations (Narrative) (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Nature Of Operations 1	$ 78,997
Nature Of Operations 2	$ 315,126

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Related Party Transactions 1	$ 8,021
Related Party Transactions 2	8,021
Related Party Transactions 3	1,873
Related Party Transactions 4	$ 27,640

Discontinued Operations and D14

Discontinued Operations and Deconsolidation of Subsidiary (Narrative) (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Discontinued Operations And Deconsolidation Of Subsidiary 1	$ 65,068

Licensing Agreement (Narrative)

Licensing Agreement (Narrative) (Details)	9 Months Ended
	Sep. 30, 2016yr
Licensing Agreement 1	15
Licensing Agreement 2	40
Licensing Agreement 3	2.50%

Schedule Of Disposal Groups Inc

Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures 1	$ 359,017
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures 2	265,888
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures 3	93,129
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures 4	6,811
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures 5	136,290
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures 6	143,101
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures 7	(28,344)
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Income Statement Disclosures 8	$ (78,316)

Schedule Of Disposal Groups I17

Schedule Of Disposal Groups Including Discontinued Operations Cash Flows Disclosures (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Cash Flows Disclosures 1	$ (149,490)
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Cash Flows Disclosures 2	0
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Cash Flows Disclosures 3	107,765
Discontinued Operations And Deconsolidation Of Subsidiary Schedule Of Disposal Groups Including Discontinued Operations Cash Flows Disclosures 4	$ (41,725)