Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Aug. 31, 2014 | Nov. 20, 2014 | Feb. 28, 2014 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Service Team Inc. | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Aug-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001535635 | ' | ' |
Current Fiscal Year End Date | '--08-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 12,485,647 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'No | ' | ' |
Entity Voluntary Filers | 'Yes | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Public Float | ' | ' | $1,870,768 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
ASSETS | ' | ' |
Cash | $7,457 | $100,895 |
Accounts receivable, net of allowances of $2,802 and $5,961, respectively | 186,026 | 110,240 |
Total current assets | 193,483 | 211,135 |
Property and equipment, net | 9,641 | 0 |
Prepaid expenses | 9,000 | 9,000 |
TOTAL ASSETS | 212,124 | 220,135 |
LIABILITIES & SHAREHOLDERS' (DEFICIT) | ' | ' |
Accounts payable | 172,117 | 128,167 |
Cash overdrafts | 0 | 4,399 |
Promissory note - related party | 27,158 | 199,999 |
Convertible note payable, net of discount of $0 and $6,833, respectively | 0 | 16,170 |
Contingent Liability | 54,100 | 54,100 |
Accrued payroll costs | 56,403 | 38,227 |
Accrued interest | 3,987 | 537 |
TOTAL LIABILITIES | 313,765 | 441,599 |
Common stock, $0.001 par value, 74,000,000 authorized, 12,485,647 and 12,367,314 issued and outstanding as of August 31, 2014 and August 31, 2013, respectively. | 12,486 | 12,367 |
Additional paid in capital | 955,650 | 950,302 |
Accumulated deficit | -1,109,777 | -1,184,133 |
TOTAL SHAREHOLDERS' (DEFICIT) | -101,641 | -221,464 |
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) | $212,124 | $220,135 |
BALANCE_SHEETS_PARENTHEICALS
BALANCE SHEETS PARENTHEICALS (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
PARENTHEICALS | ' | ' |
Common Stock, par or stated value | $0.00 | $0.00 |
Common Stock, shares authorized | 74,000,000 | 74,000,000 |
Common Stock, shares issued | 12,485,647 | 12,367,314 |
Common Stock, shares outstanding | 12,485,647 | 12,367,314 |
Net allowance of accounts receivable | $2,802 | $5,961 |
Unamortized discount of Convertible note payable | $0 | $6,833 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
REVENUES | ' | ' |
Trade Leasing Division | $1,334,127 | $1,017,446 |
Service Products Division | 0 | 10,631 |
TOTAL REVENUES | 1,334,127 | 1,028,077 |
COST OF SALES | ' | ' |
Cost of Sales Trade Leasing Division | 1,096,704 | 759,070 |
Cost of Sales Service Products Division | 0 | 160,115 |
TOTAL COST OF SALES | 1,096,704 | 919,185 |
GROSS MARGIN | 237,423 | 108,892 |
OPERATING EXPENSES | ' | ' |
General & administrative | 111,754 | 824,809 |
Depreciation expense | 303 | 0 |
Bad debts | 30,701 | 3,348 |
TOTAL OPERATING EXPENSES | 142,758 | 828,157 |
OPERATING INCOME (LOSS) | 94,665 | -719,265 |
OTHER INCOME (LOSS) | ' | ' |
Interest expense | -20,309 | -34,314 |
TOTAL OTHER INCOME (LOSS) | -20,309 | -34,314 |
NET INCOME (LOSS) | $74,356 | ($753,579) |
Weighted number of common shares outstanding - basic and fully diluted | 12,431,012 | 8,882,610 |
Net income (loss) per share - basic and fully diluted | $0.01 | ($0.08) |
STATEMENT_OF_SHAREHOLDERS_DEFI
STATEMENT OF SHAREHOLDERS DEFICIT (USD $) | Common Shares | Common Amount | Additional Paid In Capital | Subscriptions Receivable | Deficit Accumulated During Development Stage | Total |
USD ($) | USD ($) | USD ($) | USD ($) | |||
Balance: at Aug. 31, 2012 | 7,707,500 | 7,708 | 321,044 | -28,700 | -430,554 | -130,502 |
Imputed Interest on Related Party Debt | ' | ' | $15,338 | ' | ' | $15,338 |
Shares Issued for Services | 300,000 | 300 | 194,700 | ' | ' | 195,000 |
Shares Issued for Cash | 359,814 | 360 | 171,217 | ' | ' | 171,576 |
Shares Issued for Acquisition | 4,000,000 | 4,000 | -4,000 | ' | ' | 4,000 |
Contributed Lease Payment from Related Party | ' | ' | 28,000 | ' | ' | 28,000 |
Contributed Capital | ' | ' | 195,000 | ' | ' | 195,000 |
Imputed rent expense | ' | ' | 6,000 | ' | ' | 6,000 |
Beneficial conversion feature | ' | ' | 23,003 | ' | ' | 23,003 |
Cash Received from Stock Receivables | ' | ' | ' | 28,700 | ' | 28,700 |
Net Loss | ' | ' | ' | ' | -753,579 | -753,579 |
Shares Issued for Cash | 359,814 | 360 | 171,217 | ' | ' | 171,576 |
Net Income (Loss) | ' | ' | ' | ' | ' | -753,579 |
Balance: at Aug. 31, 2013 | 12,367,314 | 12,368 | 950,302 | ' | -1,184,133 | -221,464 |
Imputed Interest on Related Party Debt | ' | ' | 10,716 | ' | ' | 10,716 |
Shares Issued for Cash | 118,333 | 118 | 34,632 | ' | ' | 34,750 |
Shares Issued for Acquisition | ' | ' | ' | ' | ' | 0 |
Imputed rent expense | ' | ' | ' | ' | ' | 0 |
Shares Issued for Cash | 118,333 | 118 | 34,632 | ' | ' | 34,750 |
Net Income (Loss) | ' | ' | ' | ' | $74,356 | $74,356 |
Balance: at Aug. 31, 2014 | 12,485,647 | 12,486 | 995,650 | ' | -1,109,777 | -101,641 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net Income (Loss) | $74,356 | ($753,579) |
Adjustments to reconcile net income (loss) with cash provided by (used in) operations: | ' | ' |
Stock based compensation expense | 0 | 195,000 |
Stock capital contributions - related party | 0 | 195,000 |
Bad debt expense | 30,701 | 3,348 |
Depreciation expense | 303 | 0 |
Amortization of debt discount | 6,833 | 16,170 |
Imputed rent expense | 0 | 6,000 |
Imputed interest | 10,716 | 15,338 |
CHANGE IN OPERATING ASSETS AND LIABILITIES | ' | ' |
Accounts receivable | -106,487 | -113,588 |
Accrued payroll | 18,176 | -12,032 |
Deposits & prepaid expenses | 0 | 0 |
Accrued interest | 3,450 | 537 |
Accounts payable | 39,552 | 128,167 |
Net Cash Provided by (Used in) Operating Activities. | 77,600 | -319,639 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Cash paid for the purchase of fixed assets | -9,944 | 0 |
Net Cash Used In Investing Activities | -9,944 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from sale of stock | 34,750 | 171,576 |
Cash received from stock receivable | 0 | 28,700 |
Bank overdrafts | 0 | 4,399 |
Capital contribution for lease payments | 0 | 28,000 |
Proceeds from promissory note - related party | 5,280 | 141,493 |
Proceeds from convertible note | 9,155 | 23,003 |
Repayments of convertible note | -5,000 | 0 |
Repayments of promissory note - related party | -205,279 | -48,258 |
Net Cash Provided By (Used In) Financing Activities | -161,094 | 348,913 |
Net Increase (Decrease) In Cash and Cash Equivalents | -93,438 | 29,274 |
Cash at Beginning of Period | 100,895 | 71,621 |
Cash at End of Period | 7,457 | 100,895 |
Supplemental Disclosures | ' | ' |
Interest Paid | 0 | 0 |
Taxes Paid | 0 | 0 |
Non-cash transactions: | ' | ' |
Discount due to beneficial conversion feature | 0 | 23,003 |
Shares issued for acquisition. | 0 | 4,000 |
Transfer from convertible debt to promissory note | 27,158 | 0 |
Transfer of accrued interest from Howard Nunn to Hallmark | $3,987 | $0 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Aug. 31, 2014 | |
Organization | ' |
ORGANIZATION | ' |
NOTE 1 - ORGANIZATION | |
Organization | |
Service Team Inc. (the “Company”) was incorporated pursuant to the laws of the State of Nevada on June 6, 2011. The Company was organized to comply with the warranty obligations of electronic devices manufactured by companies outside of the United States. The business proved to be unprofitable and the Company discontinued its warranty and repair operations. On June 5, 2013, Service Team Inc. acquired 100 percent of the outstanding stock of Trade Leasing, Inc. for 4,000,000 shares of its common stock. Trade Leasing, Inc., a California corporation, was incorporated on November 1, 2011, and commenced business January 1, 2013. Trade Leasing, Inc. is principally involved in the manufacturing, maintenance and repair of truck bodies. Service Team Inc. and Trade Leasing Inc. have not been involved in a bankruptcy, receivership or any similar proceeding. The acquisition of Trade Leasing Inc. is a major change in the operations of Service Team Inc. Trade Leasing is operated as a separate division of Service Team Inc. | |
The Company has established a fiscal year end of August 31. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
The consolidated financial statements presented in this report are the combined financial reports of Trade Leasing, Inc. and Service Team Inc. | |||||||||||||||||
The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). | |||||||||||||||||
The consolidated financial statements present the Balance Sheet, Statements of Operations, Shareholders’ Deficit and Cash Flows of the Company. These consolidated financial statements are presented in United States dollars. The accompanying audited, consolidated financial statements have been prepared in accordance with the instructions to Form 10-K. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of Service Team Inc. and Trade Leasing, Inc. both of which are under common control and ownership. The condensed consolidated financial statements herein contain the operations of the wholly-owned subsidiaries listed above. All significant inter-company transactions have been eliminated in the preparation of these financial statements. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Cash and Equivalents | |||||||||||||||||
Cash and equivalents include investments with initial maturities of three months or less. The Company maintains its cash balances at credit-worthy financial institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. There were no cash equivalents at August 31, 2014 or August 31, 2013. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, are cash and cash equivalents. The Company places its cash and temporary cash investments with credit quality institutions. At times, such investments may be in excess of FDIC insurance limits. | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
All accounts receivable are due thirty (30) days from the date billed. If the funds are not received within thirty (30) days the customer is contacted to arrange payment. The Company uses the allowance method to account for uncollectable accounts receivable. All accounts were considered collectable at period end and no allowance for bad debts was considered necessary. The allowance for doubtful accounts as of August 31, 2014 and August 31, 2013 was $2,802 and $5,961, respectively. | |||||||||||||||||
Accounts Receivable and Revenue Concentrations | |||||||||||||||||
The Company’s wholly owned subsidiary, Trade Leasing, Inc., has more than 400 customers. One customer South Bay Ford represents about 20% and 12% of the total sales and 36% and 36% of total receivables during and as of the years ended August 31, 2014 and 2013, respectively. | |||||||||||||||||
Inventory | |||||||||||||||||
The Company does not own inventory; therefore, there was no inventory on hand at August 31, 2014. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Equipment, vehicles and furniture, which are recorded at cost, consist primarily of fabrication equipment and is depreciated using the straight-line method over the estimated useful lives of the related assets (generally fifteen years or less). Costs incurred for maintenance and repairs are expensed as incurred and expenditures for major replacements and improvements are capitalized and depreciated over their estimated remaining useful lives. There was depreciation expense of $303 and $0 during the fiscal years ended August 31, 2014 or August 31, 2013. | |||||||||||||||||
Net property and equipment were as follows at August 31, 2014 and August 31, 2013: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Equipment | $ | 243,444 | $ | 233,500 | |||||||||||||
Vehicles | 15,000 | 15,000 | |||||||||||||||
Furniture | 1,500 | 1,500 | |||||||||||||||
Total fixed assets, gross | 259,944 | 250,000 | |||||||||||||||
Less: accumulated depreciation | (250,303 | ) | (250,000 | ) | |||||||||||||
Total fixed assets, net | $ | 9,641 | $ | - | |||||||||||||
Lease Commitments | |||||||||||||||||
Service Team Inc. leases a manufacturing facility at 10633 Ruchti Road, South Gate, California 90280 on a year-to-year basis for $7,000 per month. The location consists of three acres of land with two buildings a fabrication building of 6,000 square feet and a final assembly building of 12,000 square feet. The final assembly building includes a large spray booth capable of accommodating large trucks and office space for four offices. | |||||||||||||||||
Our principal executive offices are located in 600 square feet in a building at 18482 Park Villa Place, Villa Park, California 92861. The space is furnished by Hallmark Venture Group, Inc., a related party, at no charge. As a result of this contribution of office space, $0 and $6,000 of imputed rent expense was recorded for the fiscal years ended August 31, 2014 and 2013, respectively. | |||||||||||||||||
Beneficial Conversion Features | |||||||||||||||||
From time to time, the Company may issue convertible notes that may contain an imbedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 on June 6, 2011. Under this FASB, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value. | |||||||||||||||||
The Company has various financial instruments that must be measured under the new fair value standard including: cash, convertible notes payable, accrued expenses, promissory notes payable, accounts receivable and accounts payable. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: | |||||||||||||||||
Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The fair value of the Company’s cash is based on quoted prices and therefore classified as Level 1. | |||||||||||||||||
Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||||||||
Level 3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. | |||||||||||||||||
Cash, accounts receivable, accounts payable, promissory notes and accrued expenses reported on the balance sheet are estimated by management to approximate fair market value due to their short term nature. | |||||||||||||||||
The following table presents assets and liabilities that were measured and recognized at fair value as of August 31, 2014 on a recurring basis: | |||||||||||||||||
Total | |||||||||||||||||
Realized | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||
$ | - | $ | - | $ | - | $ | - | ||||||||||
Totals | $ | - | $ | - | $ | - | $ | - | |||||||||
The following table presents assets and liabilities that were measured and recognized at fair value as of August 31, 2013 on a recurring basis: | |||||||||||||||||
Total | |||||||||||||||||
Realized | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||
Convertible notes payable, net | $ | - | $ | - | $ | 16,170 | $ | - | |||||||||
Totals | $ | - | $ | - | $ | 16,170 | $ | - | |||||||||
Income Taxes | |||||||||||||||||
In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on the level of historical operating results and the uncertainty of the economic conditions, the Company has recorded a full valuation allowance against its deferred tax assets at August 31, 2014 and 2013 where it cannot conclude that it is more likely than not that those assets will be realized. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Trade Leasing Division | |||||||||||||||||
The Trade Leasing Division receives orders from customers to build or repair truck bodies. The company builds the requested product. At the completion of the product the truck is delivered to the customer. If the customer accepts the product Trade Leasing Inc. issues an invoice to the customer for the job. The invoice is entered into our accounting system and is recognized as revenue at that time. | |||||||||||||||||
In the Trade Leasing Division we use the completed contract method for truck bodies built, which typically have construction periods of 15 days or less. Contracts are considered complete when title has passed, the customer has accepted the product and we do not retain risks or rewards of ownership of the truck bodies. Losses are accrued if manufacturing costs are expected to exceed manufacturing contract revenue. Manufacturing expenses are primarily composed of aluminum cost, which is the largest component of our raw materials cost and the cost of labor. | |||||||||||||||||
As described above, in accordance with the requirements of ASC 605-10-599, the Company recognizes revenue when (1) persuasive evidence of an arrangement exists (contracts); (2) delivery has occurred; (3) the seller’s price is fixed or determinable (per the customer’s contract); and (4) collectability is reasonably assured (based upon our credit policy). | |||||||||||||||||
Share Based Expenses | |||||||||||||||||
The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more readily determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. | |||||||||||||||||
Stock Based Compensation | |||||||||||||||||
In December of 2004, the FASB issued a standard which applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are based on the fair value of those equity instruments. For any unvested portion of previously issued and outstanding awards, compensation expense is required to be recorded based on the previously disclosed methodology and amounts. Prior periods presented are not required to be restated. We adopted the standard as of inception. The Company has not issued any stock options to its Board of Directors and officers as compensation for their services. If options are granted, they will be accounted for at a fair value as required by the FASB ASC 718. | |||||||||||||||||
Net Income (Loss) Per Share | |||||||||||||||||
The Company adopted the standard issued by the FASB, which requires presentation of basic earnings or loss per share and diluted earnings or loss per share. Basic income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share (“Diluted EPS”) are similarly calculated using the treasury stock method except that the denominator is increased to reflect the potential dilution that would occur if dilutive securities at the end of the applicable period were exercised. As of August 31, 2014 and 2013, because the Company does not have any potentially dilutive securities, there was no difference between the basic and diluted net income (loss) per share. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The new guidance requires that share-based compensation that require a specific performance target to be achieved in order for employees to become eligible to vest in the awards and that could be achieved after an employee completes the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation costs should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on our financial position or results of operations. | |||||||||||||||||
In June 2014, the FASB issued ASU No. 2014-10: Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, to improve financial reporting by reducing the cost and complexity associated with the incremental reporting requirements of development stage entities. The amendments in this update remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, thereby improving financial reporting by eliminating the cost and complexity associated with providing that information. The amendments in this Update also eliminate an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided to financial statement users by requiring the application of the same consolidation guidance by all reporting entities. The elimination of the exception may change the consolidation analysis, consolidation decision, and disclosure requirements for a reporting entity that has an interest in an entity in the development stage. The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public companies, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The adoption of ASU 2014-10 is not expected to have a material impact on our financial position or results of operations. | |||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The new guidance requires that unrecognized tax benefits be presented on a net basis with the deferred tax assets for such carryforwards. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2013. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. | |||||||||||||||||
In February 2013, FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to: | |||||||||||||||||
- | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and | ||||||||||||||||
- | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | ||||||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 did not have a material impact on our financial position or results of operations. | |||||||||||||||||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 did not have a material impact on our financial position or results of operations. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | ||||
Aug. 31, 2014 | |||||
ACQUISITIONS: | ' | ||||
ACQUISITIONS | ' | ||||
NOTE 3 - ACQUISITIONS | |||||
Stock Exchange Agreement – Trade Leasing, Inc. | |||||
On June 5, 2013, Service Team Inc. completed a Stock Exchange Agreement with Hallmark Venture Group, Inc. Pursuant to the Stock Exchange Agreement, Service Team Inc. acquired 100 percent of the shares of Trade Leasing, Inc., a California corporation. This transaction gave Service Team Inc. ownership of the business operations which included furniture, manufacturing equipment, vehicles and other assets in exchange for 4,000,000 common shares of Service Team Inc. | |||||
The company manufactures truck bodies that are attached to a truck chassis which consists of an engine, drive train, a frame with wheels, and in some cases, a cab. The truck chassis is manufactured by third parties that are major automotive or truck companies. These companies do not typically build specialized truck bodies. The company is also involved in other products used by the trucking industry. The company operates a complete manufacturing and repair facility in South Gate, California. The facility manufactures both custom and standard production truck bodies in approximately 70 different models designed to fill the specialized demands of the user. The vans are available for hauling dry freight or refrigerated freight. The refrigerated vans are built with two to four inches of foam insulating that is sprayed in place for hauling refrigerated products such as meats, vegetables, flowers and similar products. The Company installs different types of cooling systems in the trucks. This varies from motor driven units installed outside the van body or refrigeration units driven off the engine of the truck. Some refrigerated trucks use a system called “cold plate” where a large metal plate is cooled by power while the truck is parked. The power is then unplugged and the truck will stay cool for many hours. The Company’s customers are auto dealers and users of trucks; such as dairies, food distributors and local delivery. | |||||
This acquisition was accounted for as an acquisition by entities under common control due to the fact that both Service Team, Inc. and Trade Leasing, Inc. were and continue to be commonly held by Hallmark Venture Group, Inc., and its affiliates. The ownership structure of the Company did not change as a result nor did any of its officers change positions. | |||||
As the assets acquired were from an entity under common control, the assets from Trade Leasing, Inc. have been combined at historical cost for all periods presented, with no step-up in basis. See below for the recognition entry for the stock issued for the acquisition: | |||||
Prepaid expenses | $ | 9,000 | |||
Additional paid-in-capital | $ | (5,000 | ) | ||
Common stock, based on par value of $0.001 | $ | (4,000 | ) | ||
CAPITAL_STOCK
CAPITAL STOCK | 12 Months Ended |
Aug. 31, 2014 | |
CAPITAL STOCK | ' |
CAPITAL STOCK | ' |
NOTE 4 – CAPITAL STOCK | |
The Company’s authorized capital is 74,000,000 common shares with a par value of $0.001 per share and 100,000 preferred shares with a par value of $0.001 per share. | |
2013 | |
During the fiscal year ended August 31, 2013 the company sold 359,814 shares to various individuals for cash of $171,576. An additional cash amount of $28,700 was received from the stock receivable at August 31, 2012. | |
On April 16, 2013, the Company granted 300,000 restricted shares to Newport Capital Consultants for consulting services to be performed over the two year period beginning on that date. As there were no claw-back provisions on the shares, the Company expensed fully the fair value of the shares on the Agreement date valued at $195,000 based upon the closing market price on the date of grant. In addition, 300,000 trading shares were contributed by U.S. Affiliated, Inc. which was accounted for as a capital contribution of shares which were transferred to Newport Capital Consultants as additional stock compensation expense of $195,000 based upon the closing market price on the date of grant. | |
On May 31, 2013, the Company issued 4,000,000 shares to Hallmark Venture Group, Inc. as consideration its interest in the 25,000 shares of Trade Leasing, Inc., on June 5, 2013; the shares were booked at par value issuance cost, prepaid deposits of $9,000 were recognized, with an increase to additional paid in capital of $5,000 due to treatment requirements for stock granted for an acquisition of an entity under common control. The transaction was accounted for as an acquisition of entity under common control which requires booking the transaction at historical cost. | |
During the fiscal year ended August 31, 2013, $6,000 of rent expense was imputed from a lease note with related party Hallmark Venture Group, Inc. based upon the calculated fair value of the space provided at no cost to the Company. | |
During the fiscal year ended August 31, 2013, $28,000 of capital was contributed by Hallmark Venture Group, Inc., in payment of lease expenses for Trade Leasing, Inc. | |
2014 | |
During the six months ended February 28, 2014 the Company sold 63,333 shares for $25,000 of cash from an unrelated investor. | |
During the three months ended May 31, 2014 the Company sold 55,000 shares for $9,750 of cash from three unrelated investors. | |
During the twelve months ended August 31, 2014, $10,716 of interest expense was imputed from a promissory note with related party Hallmark Venture Group, Inc. based upon the average balance during the period at an interest rate of 10 percent. | |
No preferred shares have been issued. | |
As of August 31, 2014 and August 31, 2013, the Company has not granted any stock options. | |
Stock Based Compensation | |
We have accounted for stock based compensation under the provisions of FASB Accounting Standards codification (ASC) 718-10-55. (Prior authoritative literature: FASB Statement 123 (R), Share-based payment.) This statement requires us to record any expense associated with the fair value of stock based compensation. Determining fair value requires input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. |
DEBT_TRANSACTIONS
DEBT TRANSACTIONS | 12 Months Ended |
Aug. 31, 2014 | |
DEBT TRANSACTIONS | ' |
DEBT TRANSACTIONS | ' |
NOTE 5 – DEBT TRANSACTIONS | |
Convertible Note Payable | |
On June 21, 2013, for value received, the Company gave a convertible promissory note to Howard Nunn, Jr., in the original principal amount of $23,003 (the “Nunn Note”). The Nunn Note has a maturity date of September 30, 2013, and principle and accrued interest at the rate of twelve percent (12%). The Note holder has an option to convert the Note into Common Stock at the price of $0.50 per share. During 2014, the Company borrowed an additional $9,155 from Howard Nunn under the same note and repaid $5,000. | |
On August 10, 2014, Hallmark Venture Group, Inc. acquired the Note, with principal of $27,158 and accrued interest of $3,987, to Howard Nunn, Jr. for 80,000 shares of Service Team Inc. Common Stock owned by Hallmark Venture Group, Inc. The Note was then canceled and the amounts due on the Note were added to the amounts due Hallmark Venture Group, Inc. The option to convert to shares was voided. | |
The Company evaluated the Nunn Note and determined that the shares issuable pursuant to the conversion option were determinate due to the Fixed Conversion Price and, as such, does not constitute a derivative liability as the appropriate number of shares will be available or issuable for settlement to occur. The beneficial conversion feature discount resulting from the conversion price of $0.75 below the market price on June 21, 2013 of $1.25 provided a value of $23,003; which was recorded as an increase to additional paid in capital and a reduction of debt due to the discount. The discount was amortized accordingly to the effective interest method over the term of the convertible note in the amounts of $6,833 and $16,170 for the fiscal years ended August 31, 2014 and 2013. As of August 31, 2013, the remaining debt discount balance was $6,833. Accrued interest was $0 and $537 as of August 31, 2014 and 2013, respectively. | |
Promissory Note – Related Party | |
On August 25, 2011, the Company entered into a loan agreement with Hallmark Venture Group, Inc., with no maturity date or interest rate. During the fiscal years ended August 31, 2014 and August 31, 2013, the Company has received funds of $5,280 and $141,493, respectively, and repaid funds of $205,279 and $48,258, respectively. During the fiscal years ended August 31, 2014 and August 31, 2013, the Company has imputed interest at a reasonable rate of 10 percent totaling $10,716 and $15,338, respectively. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Aug. 31, 2014 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 6 - RELATED PARTY TRANSACTIONS | |
Promissory Note – Related Party | |
On August 25, 2011, the Company entered into a loan agreement with Hallmark Venture Group, Inc., with no maturity date or interest rate. During the fiscal years ended August 31, 2014 and August 31, 2013, the Company has received funds of $5,280 and $141,493, respectively, and repaid funds of $205,279 and $48,258, respectively. During the fiscal years ended August 31, 2014 and August 31, 2013, the Company has imputed interest at a reasonable rate of 10 percent totaling $10,716 and $15,338, respectively. | |
On August 10, 2014, Hallmark Venture Group, Inc. acquired the Note, with principal of $27,158 and accrued interest of $3,987, to Howard Nunn, Jr. for 80,000 shares of Service Team Inc. Common Stock owned by Hallmark Venture Group, Inc. The Note was then canceled and the amounts due on the Note were added to the amounts due Hallmark Venture Group, Inc. The option to convert to shares was voided. | |
Common Stock Transactions | |
On May 31, 2013, the Company issued 4,000,000 shares to Hallmark Venture Group, Inc. as consideration its interest in the 25,000 shares of Trade Leasing, Inc., on June 5, 2013; the shares were booked at par value issuance cost, prepaid deposits of $9,000 were recognized, with an increase to additional paid in capital of $5,000 due to treatment requirements for stock granted for an acquisition of an entity under common control. The transaction was accounted for as an acquisition of entity under common control which requires booking the transaction at historical cost. | |
During the fiscal year ended August 31, 2013, $28,000 of capital was contributed by Hallmark Venture Group, Inc., in payment of lease expenses for Trade Leasing, Inc. | |
Lease Commitments | |
Our principal executive offices are located in 600 square feet in a building at 18482 Park Villa Place, Villa Park, California 92861. The space is furnished by Hallmark Venture Group, Inc., a related party, at no charge. As a result of this contribution of office space, $0 and $6,000 of imputed rent expense was recorded for the fiscal years ended August 31, 2014 and 2013, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
INCOME TAXES | ' | ||||||||
INCOME TAXES | ' | ||||||||
NOTE 7 – INCOME TAXES | |||||||||
The Company accounts for income taxes under standards issued by the FASB. Under those standards, deferred tax assets and liabilities are recognized for future tax benefits or consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such assets will not be realized through future operations. | |||||||||
No provision for federal income taxes has been recorded due to the net operating loss carry forwards totaling approximately $548,338 as of August 31, 2014 that will be offset against future taxable income. The available net operating loss carry forwards of approximately $548,338 will expire in various years through 2032. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the future tax loss carry forwards. | |||||||||
The actual income tax provisions differ from the expected amounts calculated by applying the statutory income tax rate to the Company’s loss before income taxes. The components of these differences are as follows at August 31, 2014 and August 31, 2013: | |||||||||
2014 | 2013 | ||||||||
Net tax loss carry-forwards | $ | 548,338 | $ | 631,243 | |||||
Statutory rate | 34 | % | 34 | % | |||||
Expected tax recovery | 186,435 | 217,623 | |||||||
Change in valuation allowance | (186,435 | ) | (217,623 | ) | |||||
Income tax provision | $ | - | $ | - | |||||
Components of deferred tax asset: | |||||||||
Non capital tax loss carry forwards | $ | 186,435 | $ | 217,623 | |||||
Less: valuation allowance | (186,435 | ) | (217,623 | ) | |||||
Net deferred tax asset | $ | - | $ | - | |||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Aug. 31, 2014 | |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 8 – COMMITMENTS AND CONTINGENCIES | |
None | |
Operating Leases | |
Service Team Inc. leases a manufacturing facility at 10633 Ruchti Road, South Gate, California 90280 on a year-to-year basis for $7,000 per month. The location consists of three acres of land with two buildings—a fabrication building of 6,000 square feet and a final assembly building of 12,000 square feet. The final assembly building includes a large spray booth capable of accommodating large trucks and office space for four offices. The minimum lease payments required over the next 12 months is $84,000. | |
Our principal executive offices are located in 600 square feet in a building at 18482 Park Villa Place, Villa Park, California 92861. The space is furnished by Hallmark Venture Group, Inc., a related party, at no charge. As a result of this contribution of office space, $0 and $6,000 of imputed rent expense was recorded for the fiscal years ended August 31, 2014 and 2013, respectively. |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
SEGMENT REPORTING | ' | ||||||||||||
SEGMENT REPORTING | ' | ||||||||||||
NOTE 9 – SEGMENT REPORTING | |||||||||||||
Our operations are managed through two operating segments, as shown below. We disclose the results of each of our operating segments in accordance with ASC 280, Segment Reporting. Each of the operating segments is managed under a common structure chaired by our Chief Executive Officer and discrete financial information for both of the segments is available. Our Chief Executive Officer uses the operating results of each of the two operating segments for performance evaluation and resource allocation and, as such, is the chief operating decision maker. The activities of each of our segments from which they earn revenues and incur expenses are described below: | |||||||||||||
— | The Trade Leasing segment is involved in the manufacture and repair of truck bodies. | ||||||||||||
— | The Service Products segment specializes in electronics service, repair and sales. | ||||||||||||
Summarized financial information concerning reportable segments is shown in the following table for the fiscal years ended: | |||||||||||||
August 31, 2014: | |||||||||||||
Trade Leasing | Service Products | Total | |||||||||||
Revenues | $ | 1,334,127 | $ | - | $ | 1,334,127 | |||||||
Cost of Sales | (1,096,704 | ) | - | (1,096,704 | ) | ||||||||
Gross Margin | 237,423 | - | 237,423 | ||||||||||
Operating Expense | (131,256 | ) | (11,502 | ) | (142,758 | ) | |||||||
Operating Income (Loss) | 106,167 | (11,502 | ) | 94,665 | |||||||||
Other Expense | (10,716 | ) | (9,593 | ) | (20,309 | ) | |||||||
Net Income (Loss) | $ | 95,451 | $ | (21,095 | ) | $ | 74,356 | ||||||
August 31, 2013: | |||||||||||||
Trade Leasing | Service Products | Total | |||||||||||
Revenues | $ | 1,017,446 | $ | 10,631 | $ | 1,028,077 | |||||||
Cost of Sales | (759,070 | ) | (160,115 | ) | (919,185 | ) | |||||||
Gross Margin | 258,376 | (149,484 | ) | 108,892 | |||||||||
Operating Expense | (302,609 | ) | (525,548 | ) | (828,157 | ) | |||||||
Operating Loss | (44,233 | ) | (675,032 | ) | (719,265 | ) | |||||||
Other Expense | (2,269 | ) | (32,045 | ) | (34,314 | ) | |||||||
Net Loss | $ | (46,502 | ) | $ | (707,077 | ) | $ | (753,579 | ) | ||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Aug. 31, 2014 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | ' |
NOTE 10 – SUBSEQUENT EVENTS | |
There were no subsequent events through the date that the financial statements were issued. |
ACCOUNTING_POLICIES_POLICIES
ACCOUNTING POLICIES (POLICIES) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
ACCOUNTING POLICIES (POLICIES) | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The consolidated financial statements presented in this report are the combined financial reports of Trade Leasing, Inc. and Service Team Inc. | |||||||||||||||||
The Company maintains its accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). | |||||||||||||||||
The consolidated financial statements present the Balance Sheet, Statements of Operations, Shareholders’ Deficit and Cash Flows of the Company. These consolidated financial statements are presented in United States dollars. The accompanying audited, consolidated financial statements have been prepared in accordance with the instructions to Form 10-K. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of Service Team Inc. and Trade Leasing, Inc. both of which are under common control and ownership. The condensed consolidated financial statements herein contain the operations of the wholly-owned subsidiaries listed above. All significant inter-company transactions have been eliminated in the preparation of these financial statements. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Cash and Equivalents | ' | ||||||||||||||||
Cash and Equivalents | |||||||||||||||||
Cash and equivalents include investments with initial maturities of three months or less. The Company maintains its cash balances at credit-worthy financial institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. There were no cash equivalents at August 31, 2014 or August 31, 2013. | |||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, are cash and cash equivalents. The Company places its cash and temporary cash investments with credit quality institutions. At times, such investments may be in excess of FDIC insurance limits. | |||||||||||||||||
Accounts Receivable Policy | ' | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
All accounts receivable are due thirty (30) days from the date billed. If the funds are not received within thirty (30) days the customer is contacted to arrange payment. The Company uses the allowance method to account for uncollectable accounts receivable. All accounts were considered collectable at period end and no allowance for bad debts was considered necessary. The allowance for doubtful accounts as of August 31, 2014 and August 31, 2013 was $2,802 and $5,961, respectively. | |||||||||||||||||
Accounts Receivable and Revenue Concentrations | ' | ||||||||||||||||
Accounts Receivable and Revenue Concentrations | |||||||||||||||||
The Company’s wholly owned subsidiary, Trade Leasing, Inc., has more than 400 customers. One customer South Bay Ford represents about 20% and 12% of the total sales and 36% and 36% of total receivables during and as of the years ended August 31, 2014 and 2013, respectively. | |||||||||||||||||
Inventory | ' | ||||||||||||||||
Inventory | |||||||||||||||||
The Company does not own inventory; therefore, there was no inventory on hand at August 31, 2014. | |||||||||||||||||
Property and Equipment: | ' | ||||||||||||||||
Property and Equipment | |||||||||||||||||
Equipment, vehicles and furniture, which are recorded at cost, consist primarily of fabrication equipment and is depreciated using the straight-line method over the estimated useful lives of the related assets (generally fifteen years or less). Costs incurred for maintenance and repairs are expensed as incurred and expenditures for major replacements and improvements are capitalized and depreciated over their estimated remaining useful lives. There was depreciation expense of $303 and $0 during the fiscal years ended August 31, 2014 or August 31, 2013. | |||||||||||||||||
Net property and equipment were as follows at August 31, 2014 and August 31, 2013: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Equipment | $ | 243,444 | $ | 233,500 | |||||||||||||
Vehicles | 15,000 | 15,000 | |||||||||||||||
Furniture | 1,500 | 1,500 | |||||||||||||||
Total fixed assets, gross | 259,944 | 250,000 | |||||||||||||||
Less: accumulated depreciation | (250,303 | ) | (250,000 | ) | |||||||||||||
Total fixed assets, net | $ | 9,641 | $ | - | |||||||||||||
Lease Commitments | ' | ||||||||||||||||
Lease Commitments | |||||||||||||||||
Service Team Inc. leases a manufacturing facility at 10633 Ruchti Road, South Gate, California 90280 on a year-to-year basis for $7,000 per month. The location consists of three acres of land with two buildings a fabrication building of 6,000 square feet and a final assembly building of 12,000 square feet. The final assembly building includes a large spray booth capable of accommodating large trucks and office space for four offices. | |||||||||||||||||
Our principal executive offices are located in 600 square feet in a building at 18482 Park Villa Place, Villa Park, California 92861. The space is furnished by Hallmark Venture Group, Inc., a related party, at no charge. As a result of this contribution of office space, $0 and $6,000 of imputed rent expense was recorded for the fiscal years ended August 31, 2014 and 2013, respectively. | |||||||||||||||||
Beneficial Conversion Features | ' | ||||||||||||||||
Beneficial Conversion Features | |||||||||||||||||
From time to time, the Company may issue convertible notes that may contain an imbedded beneficial conversion feature. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of warrants, if related warrants have been granted. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 on June 6, 2011. Under this FASB, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value. | |||||||||||||||||
The Company has various financial instruments that must be measured under the new fair value standard including: cash, convertible notes payable, accrued expenses, promissory notes payable, accounts receivable and accounts payable. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: | |||||||||||||||||
Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The fair value of the Company’s cash is based on quoted prices and therefore classified as Level 1. | |||||||||||||||||
Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||||||||
Level 3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. | |||||||||||||||||
Cash, accounts receivable, accounts payable, promissory notes and accrued expenses reported on the balance sheet are estimated by management to approximate fair market value due to their short term nature. | |||||||||||||||||
The following table presents assets and liabilities that were measured and recognized at fair value as of August 31, 2014 on a recurring basis: | |||||||||||||||||
Total | |||||||||||||||||
Realized | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||
$ | - | $ | - | $ | - | $ | - | ||||||||||
Totals | $ | - | $ | - | $ | - | $ | - | |||||||||
The following table presents assets and liabilities that were measured and recognized at fair value as of August 31, 2013 on a recurring basis: | |||||||||||||||||
Total | |||||||||||||||||
Realized | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||
Convertible notes payable, net | $ | - | $ | - | $ | 16,170 | $ | - | |||||||||
Totals | $ | - | $ | - | $ | 16,170 | $ | - | |||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on the level of historical operating results and the uncertainty of the economic conditions, the Company has recorded a full valuation allowance against its deferred tax assets at August 31, 2014 and 2013 where it cannot conclude that it is more likely than not that those assets will be realized. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
Trade Leasing Division | |||||||||||||||||
The Trade Leasing Division receives orders from customers to build or repair truck bodies. The company builds the requested product. At the completion of the product the truck is delivered to the customer. If the customer accepts the product Trade Leasing Inc. issues an invoice to the customer for the job. The invoice is entered into our accounting system and is recognized as revenue at that time. | |||||||||||||||||
In the Trade Leasing Division we use the completed contract method for truck bodies built, which typically have construction periods of 15 days or less. Contracts are considered complete when title has passed, the customer has accepted the product and we do not retain risks or rewards of ownership of the truck bodies. Losses are accrued if manufacturing costs are expected to exceed manufacturing contract revenue. Manufacturing expenses are primarily composed of aluminum cost, which is the largest component of our raw materials cost and the cost of labor. | |||||||||||||||||
As described above, in accordance with the requirements of ASC 605-10-599, the Company recognizes revenue when (1) persuasive evidence of an arrangement exists (contracts); (2) delivery has occurred; (3) the seller’s price is fixed or determinable (per the customer’s contract); and (4) collectability is reasonably assured (based upon our credit policy). | |||||||||||||||||
Share Based Expenses | ' | ||||||||||||||||
Share Based Expenses | |||||||||||||||||
The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more readily determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. | |||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||
Stock Based Compensation | |||||||||||||||||
In December of 2004, the FASB issued a standard which applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are based on the fair value of those equity instruments. For any unvested portion of previously issued and outstanding awards, compensation expense is required to be recorded based on the previously disclosed methodology and amounts. Prior periods presented are not required to be restated. We adopted the standard as of inception. The Company has not issued any stock options to its Board of Directors and officers as compensation for their services. If options are granted, they will be accounted for at a fair value as required by the FASB ASC 718. | |||||||||||||||||
Net Loss Per Share | ' | ||||||||||||||||
Net Income (Loss) Per Share | |||||||||||||||||
The Company adopted the standard issued by the FASB, which requires presentation of basic earnings or loss per share and diluted earnings or loss per share. Basic income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share (“Diluted EPS”) are similarly calculated using the treasury stock method except that the denominator is increased to reflect the potential dilution that would occur if dilutive securities at the end of the applicable period were exercised. As of August 31, 2014 and 2013, because the Company does not have any potentially dilutive securities, there was no difference between the basic and diluted net income (loss) per share. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The new guidance requires that share-based compensation that require a specific performance target to be achieved in order for employees to become eligible to vest in the awards and that could be achieved after an employee completes the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation costs should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on our financial position or results of operations. | |||||||||||||||||
In June 2014, the FASB issued ASU No. 2014-10: Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, to improve financial reporting by reducing the cost and complexity associated with the incremental reporting requirements of development stage entities. The amendments in this update remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, thereby improving financial reporting by eliminating the cost and complexity associated with providing that information. The amendments in this Update also eliminate an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided to financial statement users by requiring the application of the same consolidation guidance by all reporting entities. The elimination of the exception may change the consolidation analysis, consolidation decision, and disclosure requirements for a reporting entity that has an interest in an entity in the development stage. The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public companies, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The adoption of ASU 2014-10 is not expected to have a material impact on our financial position or results of operations. | |||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The new guidance requires that unrecognized tax benefits be presented on a net basis with the deferred tax assets for such carryforwards. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2013. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. | |||||||||||||||||
In February 2013, FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to: | |||||||||||||||||
- | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and | ||||||||||||||||
- | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | ||||||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 did not have a material impact on our financial position or results of operations. | |||||||||||||||||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 did not have a material impact on our financial position or results of operations. |
Property_and_Equipment_TABLES
Property and Equipment (TABLES) | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Property and Equipment (TABLES) | ' | ||||||||
Property and Equipment (TABLES) | ' | ||||||||
Net property and equipment were as follows at August 31, 2014 and August 31, 2013: | |||||||||
2014 | 2013 | ||||||||
Equipment | $ | 243,444 | $ | 233,500 | |||||
Vehicles | 15,000 | 15,000 | |||||||
Furniture | 1,500 | 1,500 | |||||||
Total fixed assets, gross | 259,944 | 250,000 | |||||||
Less: accumulated depreciation | (250,303 | ) | (250,000 | ) | |||||
Total fixed assets, net | $ | 9,641 | $ | - |
FAIR_VALUE_MEASUREMENTS_TABLES
FAIR VALUE MEASUREMENTS (TABLES) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
The following table presents assets and liabilities that were measured and recognized at fair value as of August 31, 2014 on a recurring basis: | |||||||||||||||||
Total | |||||||||||||||||
Realized | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||
$ | - | $ | - | $ | - | $ | - | ||||||||||
Totals | $ | - | $ | - | $ | - | $ | - | |||||||||
The following table presents assets and liabilities that were measured and recognized at fair value as of August 31, 2013 on a recurring basis: | |||||||||||||||||
Total | |||||||||||||||||
Realized | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||
Convertible notes payable, net | $ | - | $ | - | $ | 16,170 | $ | - | |||||||||
Totals | $ | - | $ | - | $ | 16,170 | $ | - | |||||||||
ACQUISITIONS_TABLES
ACQUISITIONS (TABLES) | 12 Months Ended | ||||
Aug. 31, 2014 | |||||
Stock issued for the acquisition (TABLES) | ' | ||||
stock issued for the acquisition (TABLES) | ' | ||||
Trade Leasing, Inc. have been combined at historical cost for all periods presented, with no step-up in basis. See below for the recognition entry for the stock issued for the acquisition: | |||||
Prepaid expenses | $ | 9,000 | |||
Additional paid-in-capital | $ | (5,000 | ) | ||
Common stock, based on par value of $0.001 | $ | (4,000 | ) | ||
COMPONENTS_OF_INCOMETAX_EXPENS
COMPONENTS OF INCOMETAX EXPENSE (TABLES) | 12 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
COMPONENTS OF INCOMETAX EXPENSE | ' | ||||||||
COMPONENTS OF INCOME TAX EXPENSE | ' | ||||||||
The components of these differences are as follows at August 31, 2014 and August 31, 2013: | |||||||||
2014 | 2013 | ||||||||
Net tax loss carry-forwards | $ | 548,338 | $ | 631,243 | |||||
Statutory rate | 34 | % | 34 | % | |||||
Expected tax recovery | 186,435 | 217,623 | |||||||
Change in valuation allowance | (186,435 | ) | (217,623 | ) | |||||
Income tax provision | $ | - | $ | - | |||||
Components of deferred tax asset: | |||||||||
Non capital tax loss carry forwards | $ | 186,435 | $ | 217,623 | |||||
Less: valuation allowance | (186,435 | ) | (217,623 | ) | |||||
Net deferred tax asset | $ | - | $ | - |
SEGMENT_REPORTING_TABLES
SEGMENT REPORTING (TABLES) | 12 Months Ended | ||||||||||||
Aug. 31, 2014 | |||||||||||||
SEGMENT REPORTING (TABLES): | ' | ||||||||||||
Summarized financial information concerning reportable segments (TABLES) | ' | ||||||||||||
Summarized financial information concerning reportable segments is shown in the following table for the fiscal years ended: | |||||||||||||
August 31, 2014: | |||||||||||||
Trade Leasing | Service Products | Total | |||||||||||
Revenues | $ | 1,334,127 | $ | - | $ | 1,334,127 | |||||||
Cost of Sales | (1,096,704 | ) | - | (1,096,704 | ) | ||||||||
Gross Margin | 237,423 | - | 237,423 | ||||||||||
Operating Expense | (131,256 | ) | (11,502 | ) | (142,758 | ) | |||||||
Operating Income (Loss) | 106,167 | (11,502 | ) | 94,665 | |||||||||
Other Expense | (10,716 | ) | (9,593 | ) | (20,309 | ) | |||||||
Net Income (Loss) | $ | 95,451 | $ | (21,095 | ) | $ | 74,356 | ||||||
August 31, 2013: | |||||||||||||
Trade Leasing | Service Products | Total | |||||||||||
Revenues | $ | 1,017,446 | $ | 10,631 | $ | 1,028,077 | |||||||
Cost of Sales | (759,070 | ) | (160,115 | ) | (919,185 | ) | |||||||
Gross Margin | 258,376 | (149,484 | ) | 108,892 | |||||||||
Operating Expense | (302,609 | ) | (525,548 | ) | (828,157 | ) | |||||||
Operating Loss | (44,233 | ) | (675,032 | ) | (719,265 | ) | |||||||
Other Expense | (2,269 | ) | (32,045 | ) | (34,314 | ) | |||||||
Net Loss | $ | (46,502 | ) | $ | (707,077 | ) | $ | (753,579 | ) | ||||
Organization_Narrative_DETAILS
Organization Narrative (DETAILS) | Jun. 05, 2013 |
Organization | ' |
Number of shares of common stock acquired in Trade Leasing Inc. A commonly held company | 4,000,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Accounts Receivable. | ' | ' |
. The allowance for doubtful accounts . | $2,802 | $5,961 |
Accounts Receivable and Revenue Concentrations | ' | ' |
One customer South Bay Ford represents of the total sales. | 20.00% | 12.00% |
South Bay Ford represents of thetotal receivables . | 36.00% | 36.00% |
Property and Equipment. | ' | ' |
Depreciation expense of Property and Equipment. | 303 | 0 |
Lease Commitments | ' | ' |
Imputed rent expense was recorded of lease commitments. | $0 | $6,000 |
Net_property_and_equipment_Det
Net property and equipment (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
Net property and equipment Details | ' | ' |
Equipment | $243,444 | $233,500 |
Vehicles | 15,000 | 15,000 |
Furniture | 1,500 | 1,500 |
Total fixed assets, gross | 259,944 | 250,000 |
Less: accumulated depreciation | -250,303 | -250,000 |
Total fixed assets, net | $9,641 | ' |
Lease_Commitments_Details
Lease Commitments (Details) (USD $) | 12 Months Ended |
Aug. 31, 2014 | |
Lease Commitments {1} | ' |
Lease of California office premises per month | $7,000 |
Assets_that_were_measured_and_
Assets that were measured and recognized at fair value (Details) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
Level 1 | ' | ' |
Convertible notes payable | $0 | $0 |
Total | 0 | 0 |
Level 2 | ' | ' |
Convertible notes payable | 0 | 0 |
Total | 0 | 0 |
Level 3 | ' | ' |
Convertible notes payable | 0 | 16,170 |
Total | 0 | 16,170 |
Total Realized Loss | ' | ' |
Convertible notes payable | 0 | 0 |
Total | $0 | $0 |
Amortized_Discount_Other_Detai
Amortized Discount - Other (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Amortized Discount details | ' | ' |
The discount was amortized accordingly to the effective interest method over the term of the convertible note in the amount | $6,833 | $16,710 |
Company has received funds | 141,493 | 5,280 |
Repaid funds of related party | 48,258 | 205,279 |
Company has imputed interest at a reasonable rate of 10 percent totaling | $15,338 | $10,716 |
Stock_issued_for_the_acquisiti
Stock issued for the acquisition (Details) (USD $) | Aug. 31, 2014 |
Stock issued for the acquisition Details | ' |
Prepaid expenses | $9,000 |
Additional paid-in-capital | -5,000 |
Common stock, based on par value of $0.001 | ($4,000) |
Capital_stock_transactions_DET
Capital stock transactions (DETAILS) (USD $) | Aug. 31, 2014 | 31-May-13 | Apr. 16, 2013 |
Capital stock transactions details | ' | ' | ' |
Authorized common shares with a par value of $0.001 | 74,000,000 | ' | ' |
Preferred shares with a par value of $0.001 per share | 100,000 | ' | ' |
Shares of common stockissued to Hallmark venture Group | ' | 4,000,000 | ' |
Price per share of common stock issued to Hallmark Venture Group, Inc | $0 | $0 | ' |
Prepaid deposit of were recognized | ' | $9,000 | ' |
An increase to additional paid in capital due to treatement requirements | ' | 5,000 | ' |
Restricted shares issued to Newport Capital Consultants for broker services | ' | ' | 300,000 |
Value of Restricted shares issued to Newport Capital Consultants for broker services | ' | ' | 195,000 |
Trading shares were contributed by Hallmark Venture Group, Inc. | ' | ' | 300,000 |
Amount transferred to Newport Capital Consultants as additional stock compensation expense | ' | ' | $195,000 |
Stock_issues_DETAILS
Stock issues (DETAILS) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
31-May-14 | Feb. 28, 2014 | Aug. 31, 2014 | |
STOCK ISSUES | ' | ' | ' |
No of shares of common stock sold to a Unrelated investor | 55,000 | 63,333 | ' |
Value of shares of common stock sold to a Unrelated investor | $9,750 | $25,000 | ' |
Interest expense was imputed from a promissory note with related party Hallmark Venture Group, Inc. | ' | ' | $10,716 |
Interest Rate for Hallmark Venture Group, Inc. | ' | ' | 10.00% |
Convertible_Note_Payable_Detai
Convertible Note Payable (Details) (USD $) | Aug. 31, 2014 | Aug. 10, 2014 | Aug. 31, 2013 | Jun. 21, 2013 |
Convertible Note Payable | ' | ' | ' | ' |
Convertible promissory note issued to Howard Nunn, in the original principal amount | ' | ' | ' | $23,003 |
Interest accrued at the rate of twelve percent | ' | ' | ' | 12.00% |
Conversion price of the note into Common Stock at the price | ' | ' | ' | $0.50 |
Company borrowed an additional note from Howard Nunn | ' | ' | ' | 9,155 |
Howard Nunn under the same note and repaid | ' | ' | ' | 5,000 |
Hallmark Venture Group, Inc. acquired the Note, with principal amount | ' | 27,158 | ' | ' |
Accured Interest on Hallmark Venture Group Inc. | ' | 3,987 | ' | ' |
Hallmark Venture Group, Inc. acquired the Note, to Howard Nunn, Jr. for shares of Services Team Inc | ' | 80,000 | ' | ' |
Debt amount due after discount and a reduction of debt | ' | ' | 6,833 | ' |
Increase to additional paid in capital and a reduction of debt due to the discount. | ' | ' | ' | 23,003 |
Accrued interest amount due on debt | $0 | ' | $537 | ' |
beneficial conversion feature discount resulting from the conversion price below the Conversion price | ' | ' | ' | $0.75 |
Related_party_Promissory_Note_
Related party Promissory Note (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Related party Promissory Note | ' | ' |
Funds received during the period | $5,280 | $141,493 |
Repaid funds during the period | 205,279 | 48,258 |
Interest imputed at a rate of 10% | $10,716 | $15,338 |
Related_party_Common_Stock_Tra
Related party Common Stock Transactions (Details) (USD $) | Aug. 31, 2014 |
Related party Common Stock Transactions | ' |
Company issued shares to Hallmark Venture Group, Inc. | 4,000,000 |
Consideration its interest in the shares of Trade Leasing, Inc | $25,000 |
Shares were booked at par value issuance cost with a decrease to additional paid in capital | 4,000 |
Prepaid deposit amount | $9,000 |
Hallmark_Venture_Group_Inc_Det
Hallmark Venture Group, Inc (Details) (USD $) | 12 Months Ended |
Aug. 31, 2013 | |
Hallmark Venture Group, Inc Details | ' |
Hallmark Venture Group, Inc., in payment of lease expenses | $28,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Aug. 31, 2014 |
Income Taxes Details | ' |
Net operating loss carry forwards totaling | $548,338 |
The available net operating loss carry forwards of approximately | $548,338 |
Components_of_tax_expense_DETA
Components of tax expense (DETAILS) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
Components of tax expense details | ' | ' |
Net tax loss carry-forwards | $548,338 | $631,243 |
Statutory rate | 34.00% | 34.00% |
Expected tax recovery | 186,435 | 217,623 |
Change in valuation allowance | -186,435 | -217,623 |
Income tax provision | $0 | ' |
Net_deferred_tax_assets_DETAIL
Net deferred tax assets (DETAILS) (USD $) | Aug. 31, 2014 | Aug. 31, 2013 |
Components of deferred tax asset: | ' | ' |
Non capital tax loss carry forwards | $186,435 | $217,623 |
Less: valuation allowance | -186,435 | -217,623 |
Net deferred tax asset | ' | $0 |
Operating_Leases_Details
Operating Leases (Details) (USD $) | Aug. 31, 2014 |
Operating Leases | ' |
Minimum lease payment required over the period of next 12 months | $84,000 |
Lease amount per month for office space | $7,000 |
Rent_Expenses_Details
Rent Expenses (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Rent Expense Details | ' | ' |
Office Space imputed rent expenses | $0 | $6,000 |
Summarized_financial_informati
Summarized financial information concerning reportable segments (Details) (USD $) | Trade Leasing | Service Products | Segment Total |
Segment Revenues at Aug. 31, 2012 | $1,017,446 | $10,631 | $1,028,077 |
Segment financial information August 31, 2013 | ' | ' | ' |
Segment Cost of Sales | -759,070 | -160,115 | -919,185 |
Segment Gross Margin | 258,376 | -149,484 | 108,892 |
Segment Operating Expense | -302,609 | -525,548 | -828,157 |
Segment Operating Income (Loss) | -44,233 | -675,032 | -719,265 |
Segment Other Expense | -2,269 | -32,045 | -34,314 |
Segment Net Income (Loss) | -46,502 | -707,077 | -753,579 |
Segment Revenues at Aug. 31, 2013 | 1,334,127 | 0 | 1,334,127 |
Segment Net Income (Loss) at Aug. 31, 2013 | -46,502 | -707,077 | -753,579 |
Segment financial information August 31, 2014 | ' | ' | ' |
Segment Cost of Sales | -1,096,704 | 0 | -1,096,704 |
Segment Gross Margin | 237,423 | 0 | 237,423 |
Segment Operating Expense | -131,256 | -11,502 | -142,758 |
Segment Operating Income (Loss) | 106,167 | -11,502 | 94,665 |
Segment Other Expense | -10,716 | -9,593 | -20,309 |
Segment Net Income (Loss) at Aug. 31, 2014 | $95,451 | ($21,095) | $74,356 |