Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Oct. 01, 2017 | |
FIXED ASSETS [Abstract] | ||
Entity Registrant Name | WEST COAST VENTURES GROUP CORP. | |
Document Type | 10-Q/A | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 30,506,544 | |
Amendment Flag | true | |
Amendment Description | Amendment #1 | |
Entity Central Index Key | 1,551,906 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash | $ 3,702 | $ 76,487 |
Inventory | 16,632 | 15,541 |
Prepaid expenses | 26,513 | 26,063 |
Total current assets | 46,847 | 118,091 |
FIXED ASSETS | ||
Equipment | 235,738 | 235,738 |
Leasehold improvements | 172,588 | 158,787 |
Total fixed assets | 408,326 | 394,525 |
Less: accumulated depreciation | (141,015) | (112,272) |
Net total fixed assets | 267,311 | 282,253 |
OTHER ASSETS | ||
Deposits and other assets | 21,627 | 16,747 |
Intangibles assets, net | 131,131 | 128,870 |
Total other assets | 152,758 | 145,617 |
Total assets | 466,916 | 545,961 |
Current Liabilities: | ||
Accounts payable | 128,218 | 25,096 |
Accrued expenses | 475,404 | 260,707 |
Deferred rent | 49,179 | 46,823 |
Stockholder loan | 131,624 | 76,535 |
Notes payable to third parties | 1,005,762 | 770,280 |
Total Current Liabilities | 1,790,186 | 1,179,441 |
Total Liabilities | 1,790,186 | 1,179,441 |
Stockholders' Deficit: | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 500,000 and 0 Series A issued and outstanding | 500 | 0 |
Common stock, $0.001 par value, authorized 250,000,000 shares; 27,506,544 and 15,088,544 issued and outstanding, respectively | 27,506 | 15,088 |
Additional paid-in capital | 129,035 | 619,362 |
Accumulated deficit | (1,480,311) | (1,267,930) |
Total Stockholders' Deficit | (1,323,270) | (633,480) |
Total Liabilities and Stockholders' Deficit | $ 466,916 | $ 545,961 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Preferred Stock | ||
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in Shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in Shares) | 500,000 | 0 |
Preferred stock, shares outstanding (in Shares) | 500,000 | 0 |
Common Stock | ||
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in Shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in Shares) | 27,506,544 | 15,088,544 |
Common stock, shares outstanding (in Shares) | 27,506,544 | 15,088,544 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUES | ||||
Restaurant revenue, net of discounts | $ 736,047 | $ 632,952 | $ 1,366,879 | $ 1,147,253 |
Restaurant operating costs: | ||||
Cost of sale - food and beverage | 308,012 | 187,032 | 495,180 | 349,115 |
Wages and payroll taxes | 203,322 | 164,385 | 381,039 | 304,373 |
Occupancy | 142,978 | 108,983 | 259,541 | 207,983 |
Other restaurant costs | 61,596 | 98,193 | 111,855 | 140,342 |
Depreciation and Amortization | 14,210 | 4,764 | 29,173 | 13,655 |
General & Administrative Expenses | 120,886 | 117,903 | 228,671 | 196,391 |
Total costs and expenses | 851,004 | 681,260 | 1,505,459 | 1,211,859 |
Loss from operations | (114,957) | (48,308) | (138,580) | (64,606) |
Other (income) and expense | ||||
Pre-opening expenses | 0 | 13,660 | 0 | 19,712 |
Interest expense | 9,011 | 26,462 | 73,801 | 60,883 |
Total other expenses | 9,011 | 40,122 | 73,801 | 80,595 |
Loss before income taxes | (123,968) | (88,430) | (212,381) | (145,201) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | $ (123,968) | $ (88,430) | $ (212,381) | $ (145,201) |
Basic and diluted net loss per share | $ (.01) | $ (.07) | $ (.02) | $ (.21) |
Weighted average shares outstanding | 15,148,082 | 1,301,811 | 15,118,478 | 695,118 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (212,381) | $ (145,201) |
Adjustments to reconcile net loss to net cash provided by operations: | ||
Amortization of share based compensation for services | 0 | 18,498 |
Depreciation and amortization | 29,173 | 13,655 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in inventory | (1,091) | 1,114 |
(Increase) decrease in prepaid expenses | (450) | 33,089 |
Increase in deposits and other assets | (4,880) | (7,069) |
Increase (decrease) in accounts payable | 61,425 | (67,811) |
Increase (decrease) in accrued expenses | 49,090 | (6,804) |
Increase in deferred rent | 2,356 | 15,123 |
Net cash used by operating activities | (76,758) | (145,406) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of fixed assets | (13,801) | (54,844) |
Purchase of intangible assets | 0 | (4,300) |
Net cash used by investing activities | (13,801) | (59,144) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock for cash | 50,000 | 142,000 |
Proceeds from issuance of convertible notes payable for cash | 30,000 | 0 |
Proceeds from stockholder loan payable | 55,089 | 0 |
Payments on stockholder loan payable | 0 | (18,825) |
Proceeds from third party notes payable | 46,082 | 249,640 |
Payments on third party notes payable | (163,397) | (132,966) |
Net cash provided by financing activities | 17,774 | 239,849 |
Net (decrease) increase in cash | (72,785) | 35,299 |
CASH, beginning of period | 76,487 | 16,436 |
CASH, end of period | 3,702 | 51,735 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 31,058 | 62,531 |
Cash paid for income taxes | 0 | 0 |
Non-Cash Financing Activities: | ||
Common stock issued for settlement of notes payable | 0 | 27,500 |
Issuance of common and preferred shares for reverse acquisition | (43,740) | 0 |
Issuance of note payable for Capitol Hill assets | $ 0 | $ 40,000 |
NOTE 1 - NATURE OF OPERATIONS
NOTE 1 - NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
(1) NATURE OF OPERATIONS | (1) NATURE OF OPERATIONS West Coast Ventures Group Corp. (“our”, “us”, “we” ,“WCVC”or the “Company”) was originally incorporated as Energizer Tennis, Corp. on June 16, 2011 in the State of Nevada. On October 4, 2017, effective for accounting purposes on June 30, 2017, WCVC completed an agreement to acquire Nixon Restaurant Group, Inc. in a transaction accounted for as a reverse acquisition. Nixon Restaurant Group, Inc. (“NRG”) was formed on October 12, 2015, under the laws of the State of Florida. On October 19, 2015, NRG issued 20 million shares of common stock to acquire 100% of the ownership interests in J&F Restaurants, LLC, Illegal Burger, LLC and Illegal Burger Writer Square LLC, Colorado Limited Liability Companies under common ownership. The transaction was accounted for as a corporate reorganization between entities under common control. These consolidated financial statements reflect the reorganized capital structure retrospectively for all periods presented. The Company operates 5 restaurants in the Denver, Colorado metro area. El Senor Sol - Evergreen is a Mexican restaurant which has been in operation for in excess of 5 (five) full years. The Company opened the first Illegal Burger restaurant in August 2013. It is co-located with the El Senor Sol restaurant. The second Illegal Burger was opened in Arvada in April 2014. The third Illegal Burger is located in Writer Square in downtown Denver and opened in late January 2016. The fourth Illegal Burger is located in the Capital Hill area of Denver and opened in late June 2016. The Company plans to continue opening Illegal Burger restaurants, a high end quick casual restaurant with full liquor licenses. The Company expects to locate in other areas of the country over time, once it has opened all the locations in the metro Denver area that it plans to have. The accompanying consolidated financial statements include the activities of Nixon Restaurant Group, Inc., J&F Restaurant, LLC (El Senor and Illegal Burger Evergreen), Illegal Burger, LLC (Arvada), Illegal Burger Writer Square, LLC and Illegal Burger Capital Hill, LLC, its wholly owned subsidiaries. |
NOTE 2 - BASIS OF PRESENTATION
NOTE 2 - BASIS OF PRESENTATION AND USE OF ESTIMATES | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
(2) BASIS OF PRESENTATION AND USE OF ESTIMATES | (2) BASIS OF PRESENTATION AND USE OF ESTIMATES a) Basis of Presentation The comparative amounts presented in these consolidated financial statements are the historical results of West Coast Ventures Group, Corp. inclusive of its wholly-owned subsidiaries Nixon Restaurant Group, Inc.; J&F Restaurant, LLC; Illegal Burger, LLC; Illegal Burger Writer Square, LLC and Illegal Burger Capital Hill, LLC. The Company has reflected the pre-acquisition results on a consolidated basis for all periods presented. All intercompany balances and transactions have been eliminated. In consolidation The accompanying audited consolidated annual and unaudited consolidated interim financial statements have been prepared in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America ("U.S.") as promulgated by the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). In our opinion, the accompanying unaudited interim financial statements contain all adjustments (which are of a normal recurring nature) necessary for a fair presentation. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. b) Use of Estimates The preparation of 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 assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates in the accompanying consolidated financial statements involved the valuation of share-based compensation. c) Property and Equipment All property and equipment are recorded at cost and depreciated over their estimated useful lives, generally three, five or seven years, using the straight-line method. Upon sale or retirement, the cost and related accumulated depreciation are eliminated from their respective accounts, and the resulting gain or loss is included in the results of operations. Repairs and maintenance charges, which do not increase the useful lives of the assets, are charged to operations as incurred. d) Pre-opening Expenses The Company accumulates the non-capitalizable expenses, such as rent, staffing and training, prior to opening a new location and reports them on a separate line item in the Consolidated Statement of Operations such that these costs do not skew results from ongoing restaurant operations. In the month in which a new location opens, all ongoing expenses are then included with ongoing restaurant operations. e) Rent The Company’s leases generally contain escalating rent payments over the lease term as well as optional renewal periods. The Company accounts for its leases by recognizing rent expense on a straight-line basis over the lease term, which includes reasonably assured renewal periods. The lease term begins when the Company has the right to control the use of the property, which is typically before rent payments are due under the lease agreement. The difference between the rent expense and rent paid is recorded as deferred rent in the consolidated balance sheet. Rent expense for the period prior to the restaurant opening is expensed in pre-opening costs. f) Net Income (Loss) Per Share Basic loss per share excludes dilution and is computed by dividing the loss attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings of the Company. Diluted loss per share is computed by dividing the loss available to stockholders by the weighted average number of shares outstanding for the period and dilutive potential shares outstanding unless consideration of such dilutive potential shares would result in anti-dilution. There were no common stock equivalents for the periods ended June 30, 2017 or December 31, 2016. g) Income Taxes The Company follows the provisions of ASC 740-10, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The tax years 2016, 2015 and 2014 for the Company remain open for IRS audit. The Company has received no notice of audit or any notifications from the IRS for any of the open tax years. h) Cash and Cash Equivalents The Company considers all highly liquid securities with original maturities of three months or less when acquired, to be cash equivalents. We had no financial instruments that qualified as cash equivalents. i) Financial Instruments and Fair Value Measurements ASC 825-10 “Financial Instruments”, allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. ASC 825 also requires disclosures of the fair value of financial instruments. The carrying value of the Company’s current financial instruments, which include cash and cash equivalents, accounts payable and accrued liabilities approximates their fair values because of the short-term maturities of these instruments. FASB ASC 820 “Fair Value Measurement” clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. j) Impairment of Long-Lived Assets A long-lived asset is tested for impairment whenever events or changes in circumstances indicate that its carrying value amount may not be recoverable. An impairment loss is recognized when the carrying amount of the asset exceeds the sum of the undiscounted cash flows resulting from its use and eventual disposition. The impairment loss is measured as the amount by which the carrying amount of the long-lived assets exceeds its fair value. k) Related Party Transactions All transactions with related parties are in the normal course of operations and are measured at the exchange amount l) Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases” which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2016-02 is expected to result in the recognition of right to use assets and associated obligations on its balance sheet. m) Revenue Recognition Revenues consist of sales from restaurant operations and other miscellaneous revenue. Revenues from restaurant sales are recognized when payment is tendered at the point of sale. n) Inventories Inventories consist of food, beverages, and supplies valued at the lower of cost (first-in, first-out method) or market. |
NOTE 3 - LIQUIDITY AND GOING CO
NOTE 3 - LIQUIDITY AND GOING CONCERN CONSIDERATIONS | 6 Months Ended |
Jun. 30, 2017 | |
Note 3 - Liquidity And Going Concern Considerations | |
(3) LIQUIDITY AND GOING CONCERN CONSIDERATIONS | (3) LIQUIDITY AND GOING CONCERN CONSIDERATIONS Our consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. We sustained a net loss of approximately $0.2 million for the six months ended June 30, 2017 and have an accumulated deficit of approximately $1.5 million and a negative working capital of approximately $1.7 million at June 30, 2017, inclusive of indebtedness which is in default. These conditions raise substantial doubt about our ability to continue as a going concern. Failure to successfully continue to grow restaurant operation revenues could harm our profitability and materially adversely affect our financial condition and results of operations. We face all of the risks inherent in a new business, including the need for significant additional capital, management’s potential underestimation of initial and ongoing costs, and potential delays and other problems in connection with establishing and opening restaurant operations. We are continuing our plan to further grow and expand restaurant operations and seek sources of capital to pay our contractual obligations as they come due. Management believes that its current operating strategy will provide the opportunity for us to continue as a going concern as long as we are able to obtain additional financing; however, there is no assurance this will occur. The accompanying consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. The independent auditors’ report on our consolidated financial statements for the years ended December 31, 2016 and 2015 contain explanatory paragraphs expressing substantial doubt as to our ability to continue as a going concern. |
NOTE 4 - FIXED ASSETS
NOTE 4 - FIXED ASSETS | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
(4) FIXED ASSETS | (4) FIXED ASSETS Fixed assets consisted of the following: June 30, 2017 December 31, 2016 Beginning balance $ 394,525 $ 330,168 Additions: Equipment - 86,828 Additions: Leasehold improvements 13,801 29,570 Landlord reimbursement - (52,050) Depreciation (141,015) (112,272) Ending Balance $ 267,311 $ 282,253 Depreciation expense was $28,743 and $13,326 for the six months ended June 30, 2017 and 2016, respectively. |
NOTE 5 - INTANGIBLE ASSETS
NOTE 5 - INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
(5) INTANGIBLE ASSETS | (5) INTANGIBLE ASSETS In March 2015, as part of the acquisition of the Writer Square location, the Company acquired $125,000 of intangible value related to the location in downtown Denver in the specific open pedestrian mall. In March 2016, as part of the acquisition of the Capital Hill location, the Company purchased the existing liquor license for $4,300 in cash. The Company is amortizing this value over the remaining term of the lease. Amortization expense was $2,046 and $0 for the six months ended June 30, 2017 and 2016, respectively. |
NOTE 6 - SHORT-TERM BANK REVOLV
NOTE 6 - SHORT-TERM BANK REVOLVING LINES OF CREDIT | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
(6) SHORT-TERM BANK REVOLVING LINES OF CREDIT | (6) SHORT-TERM BANK REVOLVING LINES OF CREDIT In 2016, the Company opened three short term revolving lines of credit with its bank to be utilized as overdraft protection and to cover short-term cash shortfalls. These lines were entered into by J&F Restaurants, LLC with the three separate lines being tied to the bank accounts of El Senor Sol - Evergreen and Illegal Burger - Evergreen, and Illegal Burger, LLC - Arvada. In February 2017, the principal stockholder converted these lines to a personal line of credit collateralized as an equity line on his personal residence. The lines carried a variable interest rate of Wall Street Prime Index Rate plus 2.00%, which was 5.5% at December 31, 2016, and matured in March 2021. No amounts were outstanding at June 30,. At December 31, 2016, the balances were $20,000 for each line of credit. |
NOTE 7 - STOCKHOLDER LOAN
NOTE 7 - STOCKHOLDER LOAN | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
(7) STOCKHOLDER LOAN | (7) STOCKHOLDER LOAN The principal stockholder of the Company has loaned the Company funds at various times on an undocumented loan basis with no stated interest rate. These loans were made principally to complete the conversion of the Illegal Burger - Arvada (2014), Illegal Burger - Writer Square (2015 and 2016) and Illegal Burger Capital Hill (2016) locations. This stockholder loan balance was $131,624 and $76,535 at June 30, 2017 and December 31, 2016, respectively. In February 2017 the principal stockholder converted the three short-term bank revolving line of credits to a personal line of credit collateralized as an equity line on his personal residence. |
NOTE 8 - NOTES PAYABLE TO THIRD
NOTE 8 - NOTES PAYABLE TO THIRD PARTIES | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
(8) NOTES PAYABLE TO THIRD PARTIES | (8) NOTES PAYABLE TO THIRD PARTIES a) Future Receivables Sale Agreements During 2017 and 2016, the Company entered into several agreements to obtain advances against future restaurant credit/debit card sales. The agreements provides for funding of various percentages of future qualified credit/debit merchant card receivables. Proceeds received from sales of future receivables during 2017 and 2016 totaled $46,082, and $131,490, respectively. At June 30, 2017 and December 31, 2016, the total payable balances inclusive of interest under the factoring agreements were $111,420 and $116,657, respectively. b) One Year Note In February 2016, the Company entered into a one year note with a third party for a loan of $88,000. This note was payable daily in the amount of $376.64 paid via ACH draft from the J&F Restaurants, LLC - El Senor Sol Evergreen bank account. This note carries interest at a 7% rate. This note was renewed on December 30, 2016, and the Company received $74,548 in cash, which is net of the $10,452 remaining balance. The new note is payable as a percentage of future qualified credit/debit merchant card receivables. The loan balance was $60,716 and $84,239 at June 30, 2017 and December 31, 2016, respectively. c) Convertible One Year Notes During 2015, the Company issued Convertible Promissory Notes to twelve individuals in exchange for $208,000 in cash. These notes all matured in one year from issuance and carried a 10% interest rate. All of the note holders agreed to convert their notes into shares of common stock at a conversion price of $0.10 per share. In 2017, the Company issued two Convertible Promissory Notes to one entity in exchange for $30,000 in cash. These notes all mature in one year from issuance and carried a 10% interest rate. d) Convertible Two Year Notes In January 2016, the Company issued a convertible note in the amount of $51,221. At issuance of the note, the Company recorded a beneficial conversion feature discount of $51,221. This note is due in January 2018 and carries a 4% interest rate. At June 30, 2017, the unamortized discount is $14,937. d) Third Party Note Payable In March 2015, the Company entered into an agreement with a third party lender, who extended a $3,000,000 Senior Secured Note. Under the terms of this agreement a first draw was entered into in the amount of $375,000 as a Revolving Note. The lender retained $59,713 of this draw as fees. Under the terms of this Note, the Company was required to replace their credit card/debit card merchant processing to the lender. The lender retained 100% of the credit card/debit card transactions, and forwarded four wire transfers to the Company over a six week period. The credit card/debit card transactions for this six week period amounted to $84,534. The lender remitted $42,379 of this amount to the Company. Of the $42,155 retained by the lender, $14,861 was applied as principal reduction, $7,088 was applied to interest expense and the remaining $20,206 was charged as fees. The Senior Secured Note also called for the payment of a $75,000 investment banking fee. In May 2015, when it was determined that this repayment structure was not practical for a restaurant operation, the lender agreed to restructure the Revolving Note into a Replacement Promissory Note. This Replacement Promissory Note carries interest at a stated rate of 18% with a maturity of June 1, 2016. The lender charged the Company a $25,000 penalty to convert the Revolving Note into a Replacement Promissory Note. The Replacement Promissory Note called for interest only payments in June, July and August 2015. Starting in September 2015, the terms called for the payment of interest, principal starting at $33,649, increasing monthly to $38,474 in June 2016, as the interest on the then outstanding balance fell. In addition the Note called for the payment of a $10,600 Redemption Premium as part of the total monthly payment of $49,651. As a direct result of delays in opening the new Writer Square location, the lender agreed to interest only payments via ACH draft every Monday. In June 2015, the Company paid $1,080 per week, which was increased to $1,200 per week for July 1 through October 15, 2015. It was then increased to $1,500 per week from October 16, 2015 through the third week of March 2016, when it was increased to $2,000 per week. The Company is in a technical default on this Replacement Promissory Note. At June 30, 2017, December 31, 2016 and December 31, 2015, the principal balance of the loan is $322,220, $332,220 and $358,574. The Company also accrued the $25,000 conversion penalty, the $75,000 investment banking fee and the $106,000 redemption premiums as accrued interest because the Replacement Promissory Note allows for prepayment but all these “fees” are due upon prepayment. Certain third parties have advanced funds to WCVC to fund its ongoing operations. These advances have been formalized into demand notes payable which, at June 30, 2017, amount to $53,372 and carry a 5% interest rate. WCVC has a $250,000 note payable which is due in April 2018 and carries a 5% interest rate. e ) Capital Hill Purchase Notes Payable In March 2016, as part of the closing on the Capital Hill location, the seller took back two promissory notes. One of these notes was for $25,000 and carried interest at a rate of 6% with a six month term with equal monthly payments. The balance of this note was $6,344 at December 31, 2016 and $0 at June 30, 2017. The second note was for $15,000 and carried no stated interest and was due in a single lump sum payment in May 2016. The second note was paid in full during 2016. |
NOTE 9 - STOCKHOLDERS' DEFICIT
NOTE 9 - STOCKHOLDERS' DEFICIT | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
(9) STOCKHOLDERS' DEFICIT | (9) STOCKHOLDERS’ DEFICIT At June 30, 2017 and December 31, 2016, the Company has 250,000,000 shares of par value $0.001 common stock authorized and 20,506,544 and 15,088,544 issued and outstanding, respectively. At June 30, 2017 and December 31, 2016, the Company has 10,000,000 shares of par value $0.001 preferred stock authorized and 500,000 and zero issued and outstanding, respectively. During 2017, the Company issued 112,000 shares in exchange for $50,000 in cash. During 2017, the Company issued 500,000 shares of preferred stock and 5,418,000 shares of common stock in connection with the reverse acquisition of Nixon Restaurant Group, Inc. The rights and privileges of the Series A preferred stock are solely as a “super voting” stock, whereby each one share of Series A holds votes amounting to the equivalent of 100,000 shares of common stock. Therefore, the 500,000 shares of Series A issued and outstanding hold an aggregate votes equal to 500,000,000 common shares. The Series A shares have no dividend rights, no liquidation preferences, are not transferable and can be redeemed by the holder for $5,000 in cash from the Company for the entire 500,000 share block at the holders’ option. |
NOTE 10 - COMMITMENTS AND CONTI
NOTE 10 - COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
(10) - COMMITMENTS AND CONTINGENCIES | (10) COMMITMENTS AND CONTINGENCIES a) Real Property Leases The Company leases 5 (five) restaurant spaces from unrelated parties. Rent expense paid was $218,120 and $179,573 for the six months ended June 30, 2017 and 2016. Future minimum lease payments under these real property lease agreements are as follows: For the Year Ending December 31, ESSE IBE IBA IBWS IBCH Total 2017 – six months $9,360 $5,600 $35,576 $48,600 $32,113 $131,249 2018 $ - $ - $72,616 $98,107 $65,511 $236,234 2019 $ - $ - $74,795 $102,643 $67,477 $244,915 2020 $ - $ - $77,038 $102,643 $69,501 $249,182 2021 $ - $ - $25,931 $102,643 $23,394 $151,968 Thereafter $ - $ - $ - $424,259 $ - $424,259 Total minimum lease payments $9,360 $5,600 $285,956 $878,895 $257,996 $1,437,807 ESSE: El Senor Sol - Evergreen; IBE: Illegal Burger - Evergreen; IBA: Illegal Burger - Arvada; IBWS - Illegal Burger - Writer Square; IBCH - Illegal Burger - Capital Hill b) Other The Company is subject to asserted claims and liabilities that arise in the ordinary course of business. The Company maintains insurance policies to mitigate potential losses from these actions. In the opinion of management, the amount of the ultimate liability with respect to those actions will not materially affect the Company’s financial position or results of operations. |
NOTE 11 - CONCENTRATIONS OF CRE
NOTE 11 - CONCENTRATIONS OF CREDIT RISK | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
(11) CONCENTRATIONS OF CREDIT RISK | (11) CONCENTRATIONS OF CREDIT RISK a) Cash The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company had no cash balance in excess of FDIC insured limits at June 30, 2017 and December 31, 2016. |
NOTE 12 - SUBSEQUENT EVENTS
NOTE 12 - SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
(12) SUBSEQUENT EVENTS | (12) SUBSEQUENT EVENTS a) Future Receivables Sale Agreements In August 2017, the Company entered into three new agreements for the sale of future receivables. One, in the total amount of $50,000, paid off the balance of an existing agreement with a different creditor in the amount of $14,294, netting the Company $35,076, and has a daily payment of $383. The Company received $25,000 under the second agreement, and has a daily payment of $399. The Company received $45,000 under the second agreement, and has a daily payment of $450. b) Real Property Leases The Company’s leases for El Senor Sol – Evergreen and Illegal Burger – Evergreen locations expired on August 31, 2017. The Company is currently negotiating the lease terms for these locations. c) Stockholder’s Equity In August 2017 we issued 3,000,000 shares of common stock in settlement of $30,000 convertible debt |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a) Basis of Presentation The comparative amounts presented in these consolidated financial statements are the historical results of West Coast Ventures Group, Corp. inclusive of its wholly-owned subsidiaries Nixon Restaurant Group, Inc.; J&F Restaurant, LLC; Illegal Burger, LLC; Illegal Burger Writer Square, LLC and Illegal Burger Capital Hill, LLC. The Company has reflected the pre-acquisition results on a consolidated basis for all periods presented. All intercompany balances and transactions have been eliminated. In consolidation The accompanying audited consolidated annual and unaudited consolidated interim financial statements have been prepared in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America ("U.S.") as promulgated by the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") and with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). In our opinion, the accompanying unaudited interim financial statements contain all adjustments (which are of a normal recurring nature) necessary for a fair presentation. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. |
Use of Estimates | b) Use of Estimates The preparation of 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 assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates in the accompanying consolidated financial statements involved the valuation of share-based compensation. |
Property and Equipment | c) Property and Equipment All property and equipment are recorded at cost and depreciated over their estimated useful lives, generally three, five or seven years, using the straight-line method. Upon sale or retirement, the cost and related accumulated depreciation are eliminated from their respective accounts, and the resulting gain or loss is included in the results of operations. Repairs and maintenance charges, which do not increase the useful lives of the assets, are charged to operations as incurred. |
Pre-opening Expenses | d) Pre-opening Expenses The Company accumulates the non-capitalizable expenses, such as rent, staffing and training, prior to opening a new location and reports them on a separate line item in the Consolidated Statement of Operations such that these costs do not skew results from ongoing restaurant operations. In the month in which a new location opens, all ongoing expenses are then included with ongoing restaurant operations. |
Net Income (Loss) Per Share | f) Net Income (Loss) Per Share Basic loss per share excludes dilution and is computed by dividing the loss attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings of the Company. Diluted loss per share is computed by dividing the loss available to stockholders by the weighted average number of shares outstanding for the period and dilutive potential shares outstanding unless consideration of such dilutive potential shares would result in anti-dilution. There were no common stock equivalents for the periods ended June 30, 2017 or December 31, 2016. |
Income Taxes | g) Income Taxes The Company follows the provisions of ASC 740-10, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The tax years 2016, 2015 and 2014 for the Company remain open for IRS audit. The Company has received no notice of audit or any notifications from the IRS for any of the open tax years. |
Cash and Cash Equivalents | h) Cash and Cash Equivalents The Company considers all highly liquid securities with original maturities of three months or less when acquired, to be cash equivalents. We had no financial instruments that qualified as cash equivalents. |
Financial Instruments and Fair Value Measurements | i) Financial Instruments and Fair Value Measurements ASC 825-10 “Financial Instruments”, allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments. ASC 825 also requires disclosures of the fair value of financial instruments. The carrying value of the Company’s current financial instruments, which include cash and cash equivalents, accounts payable and accrued liabilities approximates their fair values because of the short-term maturities of these instruments. FASB ASC 820 “Fair Value Measurement” clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Impairment of Long-Lived Assets | j) Impairment of Long-Lived Assets A long-lived asset is tested for impairment whenever events or changes in circumstances indicate that its carrying value amount may not be recoverable. An impairment loss is recognized when the carrying amount of the asset exceeds the sum of the undiscounted cash flows resulting from its use and eventual disposition. The impairment loss is measured as the amount by which the carrying amount of the long-lived assets exceeds its fair value. |
Related Party Transactions | k) Related Party Transactions All transactions with related parties are in the normal course of operations and are measured at the exchange amount |
Recent Accounting Pronouncements | l) Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases” which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2016-02 is expected to result in the recognition of right to use assets and associated obligations on its balance sheet. |
Revenue Recognition | m) Revenue Recognition Revenues consist of sales from restaurant operations and other miscellaneous revenue. Revenues from restaurant sales are recognized when payment is tendered at the point of sale. |
Inventories | n) Inventories Inventories consist of food, beverages, and supplies valued at the lower of cost (first-in, first-out method) or market. |
NOTE 4 - FIXED ASSETS (Tables)
NOTE 4 - FIXED ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed assets | June 30, 2017 December 31, 2016 Beginning balance $ 394,525 $ 330,168 Additions: Equipment - 86,828 Additions: Leasehold improvements 13,801 29,570 Landlord reimbursement - (52,050) Depreciation (141,015) (112,272) Ending Balance $ 267,311 $ 282,253 |
NOTE 10 - COMMITMENTS AND CON20
NOTE 10 - COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments | For the Year Ending December 31, ESSE IBE IBA IBWS IBCH Total 2017 – six months $9,360 $5,600 $35,576 $48,600 $32,113 $131,249 2018 $ - $ - $72,616 $98,107 $65,511 $236,234 2019 $ - $ - $74,795 $102,643 $67,477 $244,915 2020 $ - $ - $77,038 $102,643 $69,501 $249,182 2021 $ - $ - $25,931 $102,643 $23,394 $151,968 Thereafter $ - $ - $ - $424,259 $ - $424,259 Total minimum lease payments $9,360 $5,600 $285,956 $878,895 $257,996 $1,437,807 |
NOTE 2 - SUMMARY OF SIGNIFICA21
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Share based compensation plans | $ 0 | $ 18,498 | |
Common stock equivalents | $ 0 | $ 0 |
NOTE 3 - LIQUIDITY AND GOING 22
NOTE 3 - LIQUIDITY AND GOING CONCERN CONSIDERATIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Note 3 - Liquidity And Going Concern Considerations | |||||
Net loss | $ (123,968) | $ (88,430) | $ (212,381) | $ (145,201) | |
Accumulated deficit | (1,480,311) | $ (1,267,930) | |||
Negative working capital | $ 1,700,000 |
NOTE 4 - FIXED ASSETS (Details)
NOTE 4 - FIXED ASSETS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Beginning balance | $ 408,326 | $ 330,168 |
Additions: Equipment | 0 | 86,828 |
Additions: Leasehold improvements | 13,801 | 29,570 |
Landlord reimbursement | 0 | (52,050) |
Depreciation | (141,015) | (112,272) |
Ending Balance | $ 267,311 | $ 282,253 |
NOTE 4 - FIXED ASSETS (Details
NOTE 4 - FIXED ASSETS (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 28,743 | $ 13,326 |
NOTE 5 - INTANGIBLE ASSETS (Det
NOTE 5 - INTANGIBLE ASSETS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Location intangible value | $ 125,000 | |||
Liquor license purchase | $ 4,300 | |||
Amortization expenses of intangibles | $ 2,046 | $ 0 |
NOTE 6 - SHORT-TERM BANK REVO26
NOTE 6 - SHORT-TERM BANK REVOLVING LINES OF CREDIT (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Bank line of credit, percent | 5.50% | |
Balance outstanding | $ 0 | $ 20,000 |
NOTE 7 - STOCKHOLDER LOAN (Deta
NOTE 7 - STOCKHOLDER LOAN (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Related Party Transactions [Abstract] | ||
Stockholder loan balance | $ 131,624 | $ 76,535 |
NOTE 8 - NOTES PAYABLE TO THI28
NOTE 8 - NOTES PAYABLE TO THIRD PARTIES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Feb. 28, 2016 | Jan. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Note 8 - Notes Payable To Third Parties Details Narrative | |||||||
Future receivables sale agreements | $ 46,082 | $ 131,490 | |||||
Total payable balance under factoring agreement for future receivables | 111,420 | 116,657 | |||||
Less current portion of Note payable | $ 1,005,762 | $ 770,280 | |||||
Convertible Note Payable | |||||||
Interest rate of convertible note | 6.00% | 7.00% | 4.00% | 10.00% | |||
Convertible notes issued | $ 25,000 | $ 88,000 | $ 51,221 | $ 208,000 | |||
Promissory Note | |||||||
Third party note payable | $ 3,000,000 |
NOTE 9 - STOCKHOLDERS' DEFICIT
NOTE 9 - STOCKHOLDERS' DEFICIT (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Preferred Stock | ||
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in Shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in Shares) | 500,000 | 0 |
Preferred stock, shares outstanding (in Shares) | 500,000 | 0 |
Common Stock | ||
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in Shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in Shares) | 27,506,544 | 15,088,544 |
Common stock, shares outstanding (in Shares) | 27,506,544 | 15,088,544 |
Shares issued for cash, shares | 112,000 | |
Shares issued for cash, amount | $ 50,000 | |
Preferred stock issued in acquisition of Nixon | 500,000 | |
Common stock issued in acquisition of Nixon | 5,418,000 | |
Common stock share votes per share of preferred stock | 100,000 |
NOTE 10 - COMMITMENTS AND CON30
NOTE 10 - COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | 48 Months Ended | 102 Months Ended | |||||
Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2025 | Dec. 31, 2025 | |
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Rent expense | $ 218,120 | $ 179,573 | |||||||
Future minimum lease payment totals | $ 131,249 | $ 151,968 | $ 249,182 | $ 244,915 | $ 236,234 | $ 424,259 | $ 1,437,807 |
NOTE 12 - SUBSEQUENT EVENTS (De
NOTE 12 - SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Aug. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Sale of future agreements, gross | $ 46,082 | $ 131,490 | |
Shares issued for settlement of convertible debt, shares | 3,000,000 | ||
Shares issued for settlement of convertible debt, value | $ 30,000 | ||
Sale of Future Receivables #1 | |||
Sale of future agreements, gross | $ 50,000 | ||
Daily payment due on sale of future agreement | 383 | ||
Net to the company after paying creditor | 35,076 | ||
Sale of Future Receivables #2 | |||
Sale of future agreements, gross | 25,000 | ||
Daily payment due on sale of future agreement | 299 | ||
Sale of Future Receivables #3 | |||
Sale of future agreements, gross | 45,000 | ||
Daily payment due on sale of future agreement | $ 450 |