Health-Right Discoveries (HRDV) 10-Q 2 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
Document And Entity Information
Entity Registrant Name	Health-Right Discoveries, Inc.
Entity Central Index Key	1,537,663
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		17,533,332
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash	$ 43	$ 18,373
Deposit for acquisition	25,000
Total Current Assets	25,043	18,373
TOTAL ASSETS	25,043	18,373
CURRENT LIABILITIES:
Loans payable - related parties	244,569	193,662
Salaries payable - related party	196,000	169,000
Other current liabililty	11,188	25,261
Total Current Liabilities	451,757	387,923
STOCKHOLDERS' DEFICIENCY
Preferred Stock, $.001 par value, 5,000,000 shares authorized No shares issued and outstanding
Common Stock, .001 par value, 100,000,000 shares authorized 17,533,332 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	17,533	17,533
Additional Paid in Capital	589,717	589,717
Accumulated Deficit	(1,033,964)	(976,800)
TOTAL STOCKHOLDERS' DEFICIENCY	(426,714)	(369,550)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY	$ 25,043	$ 18,373

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, authorized	5,000,000	5,000,000
Preferred Stock, issued	0	0
Preferred Stock, outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, authorized	100,000,000	100,000,000
Common Stock, issued	17,533,332	17,533,332
Common Stock, outstanding	17,533,332	17,533,332

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Sales		$ 3,604		$ 7,680
Cost of Sales		1,210		2,530
Gross Profit		2,394		5,150
COSTS AND EXPENSES:
General and administrative	33,356	33,270	52,123	100,797
Interest expense - related parties	2,689	5,716	5,041	11,352
Total Cost and expenses	36,045	38,986	57,164	112,149
Loss before income tax provision	(36,045)	(36,592)	(57,164)	(106,999)
Income tax provision
NET LOSS	$ (36,045)	$ (36,592)	$ (57,164)	$ (106,999)
Loss per common share (in dollars per share)	$ 0	$ 0	$ 0	$ 0
Weighted average common shares outstanding (in shares)	17,533,332	17,533,332	17,533,332	17,333,332

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES:
Net loss	$ (57,164)	$ (106,999)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation		40,000
Accrued salary to related party	27,000	12,000
Changes in operating assets and liabilities
Inventories		1,936
Credit card payable		934
Accrued interest		10,700
Other current liabilities	(14,073)	13,561
NET CASH USED IN OPERATING ACTIVITIES	(44,237)	(27,868)
INVESTING ACTIVITIES:
Payment of deposit for acquisition	(25,000)
NET CASH USED IN INVESTING ACTIVITIES	(25,000)
FINANCING ACTIVITIES:
Proceeds of loan from related parties	50,907	27,500
Repayment of related party loan		(1,010)
NET CASH PROVIDED BY FINANCING ACTIVITIES	50,907	26,490
INCREASE (DECREASE) IN CASH	(18,330)	(1,378)
CASH - BEGINNING OF PERIOD	18,373	1,957
CASH - END OF PERIOD	$ 43	$ 579

Business

Business	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	NOTE 1 – Business Health-Right Discoveries, Inc. (“the Company”) was formed under the laws of the State of Florida on October 12, 2011 under the name Four Plex Partners, Inc. The company changed its name to Health-Right Discoveries, Inc. on March 22, 2012. The Company’s business is to develop and market an innovative portfolio of both prescription nutritional, OTC monograph and natural products that primarily focus on factors relating to stress-induced conditions and diseases.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 - Summary of Significant Accounting Policies Use of Estimates The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Certain of the Company’s estimates could be affected by external conditions, including those unique to its industry, and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates that could cause actual results to differ from its estimates. The Company re-evaluates all of its accounting estimates at least quarterly based on these conditions and record adjustments when necessary. Cash The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. Revenue Recognition The Company follows the guidance of the Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”. We record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the selling price to the customer is fixed or determinable and collectability of the revenue is reasonably assured. The Company has not experienced any significant returns from customers and accordingly, in management’s opinion, no reserve for returns has been provided. Inventories Inventories, which consist of the Company’s product held for resale, are stated at the lower of cost, determined using the first-in, first-out, and net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose of the product. If the Company identifies excess, obsolete or unsalable items, its inventories are written down to their realizable value in the period in which the impairment is first identified. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company's statements of operations. Fair Value Measurements The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates are comparable to rates of returns for instruments of similar credit risk. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company does not have any assets or liabilities measured at fair value on a recurring basis. Stock-based compensation The Company recognizes compensation expense for stock-based compensation in accordance with ASC Topic 718. For employee stock-based awards, the fair value of the award is calculated on the date of grant using the Black-Scholes method for stock options and the quoted price of our common stock for common shares; the expense is recognized over the service period for awards expected to vest. For non-employee stock-based awards, the fair value of the award on the date of grant is calculated in the same manner as employee awards. However, the awards are revalued at the end of each reporting period and the pro rata compensation expense is adjusted accordingly until such time the nonemployee award is fully vested, at which time the total compensation recognized to date equals the fair value of the stock-based award as calculated on the measurement date, which is the date at which the award recipient’s performance is complete. The estimation of stock-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from original estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. Advertising Advertising and marketing expenses are charged to operations as incurred. Income Taxes The company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods presented.

Going Concern

Going Concern	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 3 – Going Concern The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has generated minimal revenues since inception. The Company has sustained losses since inception, and has a stockholders’ deficiency of $426,714 at June 30, 2017. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and to commence profitable operations in the future and repay its liabilities arising from normal business operations as they become due. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
STOCKHOLDERS' DEFICIENCY
Stockholders' Equity	NOTE 4 – Stockholders’ Equity The Company has authorized 100,000,000 shares of common stock $.001 par value and 5,000,000 shares of preferred stock $.001 par value. During the six months ended June 30, 2017 the Company did not issue any shares of common stock. During the six months ended June 30, 2017 the Company issued 150,000 stock options from its 2015 Stock Option Incentive Plan for legal services rendered.

Related Party

Related Party	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party	NOTE 5 – Related Party Since inception, the Company has relied in large part on loans from James Pande and David Hopkins, its principal shareholders, to fund its operations. Since inception, Mr. Pande advanced money to help fund the Company’s operations. During the three months ended June 30, 2017, there was an advance for $25,000 on this note. These borrowings bear interest at 3% per annum with no maturity date. The balance due as of June 30, 2017 and December 31, 2016 was $57,148 and $31,312, respectively, including accrued interest. The Company has a secured promissory note with Jim Pande. These borrowings bear interest at 3% per annum with no maturity date. The balance due as of June 30, 2017 and December 31, 2016 was $15,674 and $14,451, respectively, including accrued interest. Effective July 30, 2015 the Company entered into a secured future advance promissory note with Mr. Pande for a total amount of $75,000. During the three months ended June 30, 2017 the Company borrowed $0 in regards to this note. The note bears interest at 7.5% per annum and matures on July 31, 2017. The balance due as of June 30, 2017 and December 31, 2016 was $84,500 and $81,711, respectively, including accrued interest. Since inception, Mr. Hopkins has also advanced money to help fund the Company’s operations. During the three months ended June 30, 2017, he advanced $1,400. These borrowings bear interest at 3% per annum with no maturity date. The balance due as of June 30, 2017 and December 31, 2016 was $6,042 and $3,080 respectively, including accrued interest. Since inception, Mr. Hopkins advanced money to fund the Company’s operations. In 2013, he converted certain advances and accrued salary into a secured demand promissory note. These borrowings bear interest at 3% per annum with no maturity date. The balance due as of June 30, 2017 and December 31, 2016 was $31,349 and $30,903, respectively, and is subordinated to the future advance promissory note issued to Mr. Pande. The Company’s President has made loans to the Company through direct charges on his credit card to pay for working capital purposes. The balance due as of June 30, 2017 and December 31, 2016 was $50,541 and $31,205, respectively, including accrued interest. The founder is charging the Company 2.9% interest on the unpaid monthly balances associated with this loan, which is the interest being charged on the card. The Company’s board of directors approved a salary to the Company’s president in the amount of $52,000 per annum plus a car allowance of $600 per month. As of June 30, 2017 and December 31, 2016 the amount unpaid and accrued amount aggregated is $196,000 and $169,000, respectively. Effective in August 2013, the president waived his car allowance which amount has not been accrued since that date. The president resumed his car allowance in July of 2015 and is owed $4,200 as of June 30, 2017.

Credit card payable

Credit card payable	6 Months Ended
	Jun. 30, 2017
Credit Card Payable
Credit card payable	NOTE 6 – Credit card payable The Company utilizes a credit card for working capital purposes. The card has a credit limit of $9,000, with a balance of $0 and $0 outstanding at June 30, 2017 and December 31, 2016 respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 7 – Income Taxes As of June 30, 2017 the Company had approximately $1,033,000 of federal and state net operating loss carryovers (“NOLs”) which begin to expire in 2031. Utilization of the NOLs may be subject to limitation under the Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under regulations. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will 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. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against the entire deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized. The Company files U.S. federal and state of Florida tax returns that are subject to audit by tax authorities beginning with the year ended December 31, 2013. The Company’s policy is to classify assessments, if any, for tax and related interest and penalties as tax expense.

Subsequent events

Subsequent events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent events	NOTE 8 – Subsequent events Management has evaluated subsequent events through, the date which the financial statements were available to be issued.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Certain of the Company’s estimates could be affected by external conditions, including those unique to its industry, and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates that could cause actual results to differ from its estimates. The Company re-evaluates all of its accounting estimates at least quarterly based on these conditions and record adjustments when necessary.
Cash	Cash The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents.
Revenue Recognition	Revenue Recognition The Company follows the guidance of the Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”. We record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the selling price to the customer is fixed or determinable and collectability of the revenue is reasonably assured. The Company has not experienced any significant returns from customers and accordingly, in management’s opinion, no reserve for returns has been provided.
Inventories	Inventories Inventories, which consist of the Company’s product held for resale, are stated at the lower of cost, determined using the first-in, first-out, and net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose of the product.
Fair Value Measurements	Fair Value Measurements The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates are comparable to rates of returns for instruments of similar credit risk. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) The Company does not have any assets or liabilities measured at fair value on a recurring basis.
Stock-based compensation	Stock-based compensation The Company recognizes compensation expense for stock-based compensation in accordance with ASC Topic 718. For employee stock-based awards, the fair value of the award is calculated on the date of grant using the Black-Scholes method for stock options and the quoted price of our common stock for common shares; the expense is recognized over the service period for awards expected to vest. For non-employee stock-based awards, the fair value of the award on the date of grant is calculated in the same manner as employee awards. However, the awards are revalued at the end of each reporting period and the pro rata compensation expense is adjusted accordingly until such time the nonemployee award is fully vested, at which time the total compensation recognized to date equals the fair value of the stock-based award as calculated on the measurement date, which is the date at which the award recipient’s performance is complete. The estimation of stock-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from original estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised.
Advertising	Advertising Advertising and marketing expenses are charged to operations as incurred.
Income Taxes	Income Taxes The company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods presented.

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stockholders' deficiency	$ 426,714	$ 369,550

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - $ / shares	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Common stock, authorized	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
2015 Stock Option Incentive Plan [Member]
Number of share issued for services rendered	400,000

Related Party (Details Narrativ

Related Party (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jul. 30, 2015
Salary to officer per month		$ 27,000	$ 12,000
Mr. David Hopkins [Member]
Salary to officer per month	$ 52,000
Car allowance per month	600
Unpaid compensation expenses to officers	196,000	196,000		$ 169,000
Director [Member]
Short term loan	4,200	$ 4,200
Secured Promissory [Member] | Mr. David Hopkins [Member]
Payments for advance	$ 1,400
Borrowing bear interest rate	3.00%	3.00%		3.00%
Outstanding amount	$ 6,042	$ 6,042		$ 3,080
Secured Promissory [Member] | Mr. James. Pande [Member]
Payments for advance	$ 25,000
Borrowing bear interest rate	3.00%	3.00%		3.00%
Outstanding amount	$ 57,148	$ 57,148		$ 31,312
Secured Future Advance Promissory Note [Member] | Mr. James. Pande [Member]
Face amount					$ 75,000
Amount of debt outstanding	$ 0	$ 0
Borrowing bear interest rate	7.50%	7.50%
Maturity date	Jul. 31, 2017
Outstanding amount	$ 84,500	$ 84,500		$ 81,711
Secured Promissory Note [Member] | Mr. David Hopkins [Member]
Borrowing bear interest rate	3.00%	3.00%		3.00%
Outstanding amount	$ 31,349	$ 31,349		$ 30,903
Secured Promissory Note [Member] | Mr. James. Pande [Member]
Borrowing bear interest rate	3.00%	3.00%		3.00%
Outstanding amount	$ 15,674	$ 15,674		$ 14,451
Direct Charges Loan [Member] | Mr. David Hopkins [Member]
Amount of debt outstanding	$ 50,541	$ 50,541		$ 31,205
Borrowing bear interest rate	2.90%	2.90%		0.00%

Credit card payable (Details Na

Credit card payable (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Credit Card Payable
Credit card maximum limit	$ 9,000	$ 9,000
Credit card outstanding	$ 0	$ 0

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	6 Months Ended
	Jun. 30, 2017USD ($)
Income Tax Disclosure [Abstract]
Federal and state net operating loss carryovers	$ 1,033,000
Expiration date	2,031
Description of utilization of NOLs	Utilization of the NOLs may be subject to limitation under the Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under regulations.