Free Flow (FFLO) 10-Q 16 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Jul. 26, 2021
Details
Registrant CIK	0001543652
Fiscal Year End	--12-31
Registrant Name	Free Flow Inc.
SEC Form	10-Q
Period End date	Jun. 30, 2021
Tax Identification Number (TIN)	45-3838831
Number of common stock shares outstanding		26,221,000
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
Shell Company	false
Small Business	true
Emerging Growth Company	false
Document Quarterly Report	true
Entity File Number	000-54868
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	6269 Caledon Road
Entity Address, City or Town	King George
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22485
City Area Code	703
Local Phone Number	789-3344
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Document Transition Report	false

Balance Sheet

Balance Sheet - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 35,018	$ 83,516
Trade Receivables - current	185,791	202,669
Rounding off the decimals - error	0	(2)
Advances for Inventory Purchases	0	0
Inventory	2,289,937	1,778,824
TOTAL CURRENT ASSETS	2,510,746	2,065,007
Fixed Assets
Land and Building, without depreciation	1,712,413	1,712,413
Allowance for Depreciation	(144,813)	(144,813)
TOTAL FIXED ASSETS	1,567,600	1,567,600
Other Assets
Delivery Trucks, before depreciation allowance	3,500	3,500
Allowance for Depreciation	(3,298)	(3,298)
Improvements in progress	9,441	9,441
Equipment and Delivery Trucks, before depreciation allowance	36,256	35,000
Allowance for Depreciation	(15,064)	(15,064)
TOTAL OTHER ASSETS	30,834	29,579
TOTAL ASSETS	4,109,180	3,662,186
Current Liabilities
Accounts Payable	4,979	9,829
Notes Payable	937,666	940,000
Notes Payable - Related Parties	8,677	1,689
TOTAL CURRENT LIABILITIES	951,322	951,518
Long Term Liabilities
Revolving Line of Creidt - $350,000 amount drawn	349,500	349,500
PPP 1	46,266	27,800
EIDL	146,300	146,300
PayPal Advance	57,595	62,943
Loan - secured	873,131	873,131
TOTAL LONG TERM LIABILITIES	1,472,792	1,459,674
Total Liabilities	2,424,115	2,411,192
Stockholders' Equity Attributable to Parent
Common stock, ($0.0001) par value, 100,000,000 shares authorized and 26,200,000 shares issued and outstanding as of December 31, 2018 26,221,000 and 26,200,000 issued as on Dec. 31, 2019 and 2018 respectively	2,622	2,620
Additional Paid in capital	129,033	131,033
Subscription Received - pending acceptance	2,500	25,500
Current Period Profit (Loss)	460,015	850,610
(Accumulated Deficit) / Net worth	289,960	(559,705)
TOTAL STOCKHOLDERS' EQUITY / (DEFICIT)	1,685,066	1,250,994
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)	4,109,180	3,662,186
Series B Preferred Stock
Stockholders' Equity Attributable to Parent
Redeemable Preferred Stock	330,000	330,000
Series C Preferred Stock
Stockholders' Equity Attributable to Parent
Redeemable Preferred Stock	470,935	470,935
Preferred Class A
Stockholders' Equity Attributable to Parent
Preferred Stock Value	$ 1	$ 1

Balance Sheet - Parenthetical

Balance Sheet - Parenthetical - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	26,221,000	26,200,000
Common Stock, Shares, Outstanding	26,221,000	26,200,000
Series B Preferred Stock
Redeemable Preferred Stock, Shares Authorized	500,000	500,000
Redeemable Preferred Stock, Shares Issued	330,000	0
Redeemable Preferred Stock, Shares Outstanding	330,000	0
Series C Preferred Stock
Redeemable Preferred Stock, Shares Authorized	500,000	500,000
Redeemable Preferred Stock, Shares Issued	470,935	0
Redeemable Preferred Stock, Shares Outstanding	470,935	0
Preferred Class A
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Preferred Stock, Shares Issued	10,000	10,000

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
REVENUES
Revenues	$ 212,462	$ 164,401	$ 428,902	$ 280,780
TOTAL REVENUES	212,462	164,401	428,902	280,780
COST OF GOODS SOLD	151,897	57,775	225,437	91,397
GROSS PROFIT	60,566	106,626	203,466	189,383
GENERAL & ADMINISTRATIVE EXPENSES
Administrative expenses	56,065	13,536	105,818	29,117
Professional fees	14,190	7,796	24,293	14,959
Selling expenses	24,502	7,842	41,671	17,203
Financial expenses	9,712	904	27,779	23,031
TOTAL GENERAL & ADMINISTRATIVE EXPENSES	104,469	30,078	199,561	84,311
OTHER (EXPENSE) INCOME	92	0		0
PROFIT (LOSS) FROM OPERATION	(43,903)	76,548	3,905	105,072
Other Income - Additional Inventory recovered	108,329		456,110
NET INCOME (LOSS)	$ 64,518	$ 79,858	$ 460,015	$ 105,072
BASIC EARNING PER SHARE	$ 0.002	$ 0.003	$ 0.018	$ (0.004)
WEIGHTED AVERAGE NUMBERO OF COMMON SHARESS OUTSTANDING	26,221,000	26,200,000	26,221,000	26,221,000

Statement of Changes in Shareho

Statement of Changes in Shareholders' (Deficit) - 6 months ended Jun. 30, 2021 - USD ($)	Common Stock	Preferred Stock	Additional Paid-in Capital	Retained Earnings	Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2020	$ 2,622	$ 1	$ 145,481	$ 353,914	$ 1,250,994
Shares, Outstanding, Beginning Balance at Dec. 31, 2020	26,221,000	10,000
NET PROFIT (LOSS)				460,015	460,015
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2021	$ 2,622	$ 1	$ 145,481	$ 813,929	$ 1,685,066
Shares, Outstanding, Ending Balance at Jun. 30, 2021	26,221,000	10,000

Statements of Cash Flow

Statements of Cash Flow - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2019
Net Cash Provided by (Used in) Operating Activities
Net Loss	$ 460,015	$ 105,923
(Increase) in Other Assets -	(1,256)	(2,449)
(Increase) Decrease in Prepaid Expenses		(43,319)
Increase (Decrease) in Intercompany		(1,156)
Increase (Decrease) due to inventory adjustment 2020	(944)
(Increase) Advance for Inventory Purchases	0	(61,817)
Increase (Decrease) in Accounts due to figure roundoff		282
Increase (Decrease) in Accounts Payable	(7,184)	1
(Increase) Trade Receivables	16,878	0
(Increase) Decrease in Inventory	(511,113)	(83,118)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	(43,604)	(85,653)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from notes payable - related parties	6,988	(25)
Proceeds from Subscription not yet accepted	(25,000)
Proceeds form Loan from River Valley Bank		29,500
Proceeds form Loan from PayPal	(5,348)	49,349
Proceeds form Loan from SBA		178,490
Proceeds form Loan from PPP 1	18,466
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(4,894)	257,314
NET INCREASE (DECREASE) IN CASH	(48,498)	171,661
CASH AT BEGINNING PERIOD	83,516	7,226
CASH AT END PERIOD	$ 35,018	$ 178,887

NOTE 1 - BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2021
Notes
NOTE 1 - BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of June 30, 2021 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on April 08, 2021.

NOTE 2 - GOING CONCERN

NOTE 2 - GOING CONCERN	6 Months Ended
	Jun. 30, 2021
Notes
NOTE 2 - GOING CONCERN	NOTE 2 GOING CONCERN The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has established itself as a stable ongoing business entity with established revenues and / or sufficient reserves to cover its operating costs and allow it to continue as a going concern. However, the ability of the Company to continue as a going concern is also dependent on the Company obtaining adequate Sales so that the Company can liquidate its inventories and continue as a going business. In order to continue as a going concern, the Company will need, among other things, Sales of its product lines. Management has obtained such sales through Internet sales and marketing companies who specialize in promotion of such businesses. Management has obtained working capital line of credit from its commercial bank to meet its minimal operating expense and is expecting that cash flow from sales will soon be available to augment the operating capital needs. However, management cannot provide an assurance that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually fulfill the purchase orders to attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 3 - INCORPORATION OF SUBSI

NOTE 3 - INCORPORATION OF SUBSIDIARY	6 Months Ended
	Jun. 30, 2021
Notes
NOTE 3 - INCORPORATION OF SUBSIDIARY	NOTE 3 – INCORPORATION OF SUBSIDIARY In February 2015, the company incorporated a subsidiary, Promedaff, Inc. and purchased a skin care product line and formulations for $2,000,000 against a promissory note. An e commerce platform was set up for sales and marketing. The efforts did not bear any success and the entire inventory was sold through the Seller and the Promissory Note was cancelled and marked “VOID”. The name of this entity was changed to Motors & Metals, Inc. and had remained inactive but was in good standing, until it received a letter of intent from an overseas buyer willing to enter a long term contract to purchase shredded steal derived from automobile other scrap metals. Thus Motors & Metals, Inc. has embarked upon substituting its automobile crushing and shredding business to only shredding of automobiles and other metals to recover ferrous metals. Proposals form renowned manufacturers of auto shredding equipment have been received and are being evaluated to determine the most suitable and competitive supplier. The initial plan is laid out to have an output of 3,000 to 5,000 tons of shredded steel per month. As was reported in 10Qs for the earlier quarters as well as in 10Ks for the Annual reports, on February 4, 2016 the company incorporated another subsidiary in the State of Virginia under the name JK Sales, Corp. (on December 7, 2017 the name was changed to Accurate Auto Parts, Inc.) and has since remained in the business of buying end of life and salvage vehicles and selling auto parts. On April 17, 2018 the company incorporated in Virginia, another subsidiary named Accurate Investments, Inc. with the objectives of acquiring real estate property, and has remained dormant until any business is transacted. On January 4, 2017 a subsidiary named City Autos, Corp. was incorporated in the Commonwealth of Virginia which remained dormant until July 21, 2020 whereby a business license has been obtained and City Auto is preparing to start business of auto “Lease – Rent To Own”. The premises were already zoned for use as an Auto Dealership, and there existed a used car deanship operated by the former owners. City Autos is preparing to obtain a dealership license from the State and expects to start with a 50 cars fleet to Lease – Rent to own. On December 22, 2020 the company purchased business and assets from Inside Auto Parts, Inc. an auto recycling facility against a promissory note for approximately $940,000. The assets and business was purchased by another wholly owned subsidiary which was incorporated in September 2019 and remained dormant until November 2020 when the name was changed to FFLO – Inside Auto Parts, Inc. to facilitate the purchase of business and assets. The license from the State has been transferred to FFLO – Inside Auto Parts, Inc. With this acquisition the sales of the company has doubled.

NOTE 4 - RELATED PARTY

NOTE 4 - RELATED PARTY	6 Months Ended
	Jun. 30, 2021
Notes
NOTE 4 - RELATED PARTY	NOTE 4 – RELATED PARTY As of December 31, 2019, the Company had a note payable in the amount of $10,343 to Redfield Holdings, Ltd. a related party. During the six months ended the Company debited an additional $25 thus owing a total sum of $10,318 as of June 30, 2020. The note is unsecured and does not bear any interest and has a maturity date of December 30, 2021.

NOTE 5 - CAPITAL STOCK

NOTE 5 - CAPITAL STOCK	6 Months Ended
	Jun. 30, 2021
Notes
NOTE 5 - CAPITAL STOCK	NOTE 5 – CAPITAL STOCK The Company has authorized 100,000,000 shares of common shares with a par value of $0.0001 per shares and 20,000,000 shares of preferred stock, with a par value of $0.0001 per shares. Pursuant to the resolution of the shareholders meeting held on March 30, 2015 the Company designated 500,000 shares of the preferred authorized shares as preferred shares – Series “B” shares. The preferred shares – Series “B” were assigned the following preferences: a) b) c) d) e) On December 31, 2014 the Company had a Note outstanding in the principal amount of $330,000 plus interest payable to GS Pharmaceuticals, Inc. By mutual consent this note and accrued interest was converted to 330,000 preferred shares – Series “B”. On March 31, 2015 an amount of $58,000 was subscribed by Redfield Holdings, Ltd. by cancellation of a Note against the issuance of 9,700 shares of preferred shares – Series “A”. These shares were issued to Redfield Holding, Ltd. thus making a total of entire designated preferred shares – Series “A” shares to Redfield Holdings, Ltd. Each share of preferred shares – Series “A” carries voting right equal to 10,000 common shares. On June 30, 2017 total preferred shares issued and outstanding are 10,000 Series “A” and 330,000 Series “B”. January 1, 2019, by consent of the related party note holder i.e., by Redfield Holdings, Ltd. the debt for a sum of $470,935 was converted to Preferred Shares Series “C” to be described as Mezzanine Equity in its subsidiary, namely Accurate Auto Parts, Inc. The total number of shares classified as Preferred Shares Series “C” are 500,000. On April 2, 2019, in a private transaction the Company accepted a sum of $14,490.00 against issuance of 21,000 restricted Common shares of the Company. Thus the total common shares issued and outstanding as on June 30, 2021 stood at 26,221,000.

NOTE 6 - SUBSEQUENT EVENTS

NOTE 6 - SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2021
Notes
NOTE 6 - SUBSEQUENT EVENTS	NOTE 6 – SUBSEQUENT EVENT None.

NOTE 3 - INCORPORATION OF SUB_2

NOTE 3 - INCORPORATION OF SUBSIDIARY (Details)	1 Months Ended
	Feb. 28, 2015USD ($)
Promedaff, Inc.
Payments to Acquire Businesses, Gross	$ 2,000,000

NOTE 4 - RELATED PARTY (Details

NOTE 4 - RELATED PARTY (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Notes Payable - Related Parties	$ 8,677	$ 1,689
Redfield Holdings Ltd
Notes Payable - Related Parties			$ 10,318	$ 10,343
Debt Instrument, Maturity Date	Dec. 30, 2021

NOTE 5 - CAPITAL STOCK (Details

NOTE 5 - CAPITAL STOCK (Details) - USD ($)	Apr. 02, 2019	Jan. 01, 2019	Dec. 31, 2014	Mar. 31, 2015	Jun. 30, 2021	Dec. 31, 2020
Common Stock, Shares Authorized					100,000,000	100,000,000
Common Stock, Par or Stated Value Per Share					$ 0.0001	$ 0.0001
Proceeds from issuance of restricted shares	$ 14,490
Restricted common stock issued	21,000
Common Stock, Shares, Issued					26,221,000	26,200,000
Redfield Holdings Ltd
Preferred Stock, Voting Rights				Each share of preferred shares – Series “A” carries voting right equal to 10,000 common shares
Convertible Notes Payable | Redfield Holdings Ltd
Amount Subscribed By Related Party Against Cancellation Of Note				$ 58,000
GS Pharmaceuticals, Inc.
Principal amount of note outstanding			$ 330,000
Preferred Class A
Preferred Stock, Shares Authorized					20,000,000	20,000,000
Preferred Stock, Par or Stated Value Per Share					$ 0.0001	$ 0.0001
Preferred Stock, Shares Outstanding					10,000
Series B Preferred Stock
Redeemable Preferred Stock, Shares Authorized					500,000	500,000
Redeemable Preferred Stock, Shares Outstanding					330,000	0
Series B Preferred Stock | GS Pharmaceuticals, Inc.
Preferred shares issued upon conversion of debt			330,000
Series C Preferred Stock
Redeemable Preferred Stock, Shares Authorized					500,000	500,000
Redeemable Preferred Stock, Shares Outstanding					470,935	0
Series C Preferred Stock | Redfield Holdings Ltd
Preferred Shares Converted for Related Party Debt		$ 470,935