Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information | ' |
Entity Registrant Name | 'CAPSTONE FINANCIAL GROUP, INC. |
Entity Central Index Key | '0001558432 |
Document Type | '10-K |
Document Period End Date | 31-Dec-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Is Entity a Well-known Seasoned Issuer? | 'No |
Is Entity a Voluntary Filer? | 'No |
Is Entity's Reporting Status Current? | 'Yes |
Entity Filer Category | 'Smaller Reporting Company |
Entity Public Float | $0 |
Entity Common Stock, Shares Outstanding | 80,200,000 |
Document Fiscal Period Focus | 'FY |
Document Fiscal Year Focus | '2013 |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash | ' | $6,140 |
Accounts receivable | 10,364 | ' |
Total current assets | 10,364 | 6,140 |
Line of credit receivable - related party | 1,472,136 | ' |
Accrued interest receivable - related party | 6,542 | ' |
Deposits | 100,000 | ' |
Total assets | 1,589,042 | 6,140 |
Current liabilities: | ' | ' |
Accounts payable | 8,482 | 300 |
Total current liabilities | 8,482 | 300 |
Long term liabilities: | ' | ' |
Accrued interest payable | ' | 501 |
Accrued interest payable - related party | 1,637 | 283 |
Line of credit payable | ' | 35,000 |
Line of credit payable - related party | 320,240 | ' |
Notes payable - related party | ' | 10,000 |
Total long term liabilities | 321,877 | 45,784 |
Total liabilities | 330,359 | 46,084 |
Stockholders' equity (deficit): | ' | ' |
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no and no shares issued and outstanding as of December 31, 2013 and 2012, respectively | ' | ' |
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 93,025,000 and 80,200,000 shares issued and outstanding as of December 31, 2013 and 2012, respectively | 93,025 | 80,200 |
Additional paid in capital | 1,353,677 | -75,700 |
Deficit accumulated during development stage | -188,019 | -44,444 |
Total stockholders' equity (deficit) | 1,258,683 | -39,944 |
Total liabilities and stockholders' equity (deficit) | $1,589,042 | $6,140 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock par value | $0.00 | $0.00 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value | $0.00 | $0.00 |
Common stock shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock shares issued | 93,025,000 | 93,025,000 |
Common stock shares outstanding | 80,200,000 | 80,200,000 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ' | ' |
Revenue | $164,593 | ' |
Operating expenses: | ' | ' |
General and administrative | 25,182 | 684 |
Professional fees | 268,809 | 42,976 |
Professional fee - related party | 15,700 | ' |
Total operating expenses | 309,691 | 43,660 |
Other income (expense): | ' | ' |
Interest income - related party | 6,542 | ' |
Interest expense | -2,963 | -501 |
Interest expense - related party | -2,056 | -283 |
Total other expense | 1,523 | -784 |
Net loss | ($143,575) | ($44,444) |
Weighted average number of common shares outstanding - basic | 80,180,488 | 79,732,571 |
Net loss per share - basic | $0 | $0 |
Shareholders_Equity
Shareholders Equity (USD $) | Common Stock Shares | Common Stock Amount | Additional Paid In Capital | Deficit Accumulated During Development Stage | Total |
Inception, (July 10, 2012) at Jul. 09, 2012 | ' | ' | ' | ' | ' |
Issuance of common stock for cash | $80,000,000 | $80,000 | ($76,000) | ' | $4,000 |
Issuance of common stock for services | 200,000 | 200 | 300 | ' | 500 |
Net loss | ' | ' | ' | -44,444 | -44,444 |
Balance, December 31, 2012 | 80,200,000 | 80,200 | -75,700 | -44,444 | -39,944 |
Issuance of common stock for cash | 10,000,000 | 10,000 | 40,000 | ' | 50,000 |
Issuance of common stock for services | 1,000,000 | 1,000 | 4,000 | ' | 5,000 |
Cancellation of common stock for services | -1,000,000 | -1,000 | -4,000 | ' | -5,000 |
Forgiveness of debt with related party | ' | ' | 14,202 | ' | 14,202 |
Issuance of common stock for cash | 1,470,000 | 1,470 | 292,530 | ' | 294,000 |
Issuance of common stock for cash | 1,355,000 | 1,355 | 1,082,645 | ' | 1,084,000 |
Net loss | ' | ' | ' | ($143,575) | ($143,575) |
Balance, December 31, 2013 at Dec. 31, 2013 | 93,025,000 | 93,025 | 1,353,677 | -188,019 | 1,258,683 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 12 Months Ended | 18 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss | ($143,575) | ($44,444) |
Stock issued for services | ' | 500 |
Changes in operating assets and liabilities: | ' | ' |
(Increase) in accounts receivable | -10,364 | ' |
(Increase) in accrued interest receivable - related party | -6,542 | ' |
Increase in accounts payable | 8,182 | 300 |
(Decrease) in accrued interest payable | -501 | 501 |
Increase in accrued interest payable - related party | 2,056 | 283 |
Net cash used in operating activities | -150,744 | -42,860 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Payments for line of credit receivable - related party | -1,472,136 | ' |
Deposits | -100,000 | ' |
Net cash used in investing activities | -1,572,136 | ' |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from line of credit payable | 381,740 | 35,000 |
Repayments on line of credit payable | -96,500 | ' |
Proceeds from notes payable - related party | 3,500 | 10,000 |
Proceeds from sale of common stock, net of offering costs | 1,428,000 | 4,000 |
Net cash provided by financing activities | 1,716,740 | 49,000 |
NET CHANGE IN CASH | -6,140 | 6,140 |
CASH AT BEGINNING OF PERIOD | 6,140 | ' |
CASH AT END OF PERIOD | ' | 6,140 |
SUPPLEMENTAL INFORMATION: | ' | ' |
Interest paid | ' | ' |
Income taxes paid | ' | ' |
NON-CASH FINANCING ACTIVITIES: | ' | ' |
Stock issued for services | ' | 500 |
Forgiveness of debt - related party | $14,202 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization | |
The Company was incorporated on July 10, 2012 (Date of Inception) under the laws of the State of Nevada, as Creative App Solutions, Inc. On August 23, 2013, the Company amended its articles of incorporation and changed their name to Capstone Financial Group, Inc. | |
During the period of inception (July 10, 2012) through December 31, 2012, the Company had not commenced significant operations and, in accordance with ASC Topic 915, the Company was considered a development stage company. During the year ended December 31, 2013, the Company exited the development stage. | |
Nature of operations | |
The Company will design and sell mobile application for the Apple and Android platforms. During the year ended December 31, 2013 the Company changed its business plan and plans to offer financial services and consulting to businesses and they rely heavily on an officer, director and shareholder who hold the proper licenses in order to conduct business. | |
Cash and cash equivalents | |
For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value. | |
Revenue recognition | |
We recognize revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the product or service has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of our fees is probable. | |
The Company will record revenue when it is realizable and earned and the services have been rendered to the customers. During the year ended December 31, 2013, the Company recorded $154,229 in revenue related to financial services consulting and commissions that were assigned by an officer, director and shareholder of the Company. The assignment was necessary since the officer, director and shareholder holds the proper licenses in order to conduct business. | |
Advertising costs | |
Advertising costs are anticipated to be expensed as incurred; however there were $6,935 and $0 advertising and marketing costs included in general and administrative expenses for the year ended December 31, 2013 and from Inception (July 10, 2012) to December 31, 2012. | |
Fair value of financial instruments | |
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2013. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand. | |
Level 1: The preferred inputs to valuation efforts are “quoted prices in active markets for identical assets or liabilities,” with the caveat that the reporting entity must have access to that market. Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets. | |
Fair value of financial instruments | |
Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations. | |
Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as “unobservable,” and limits their use by saying they “shall be used to measure fair value to the extent that observable inputs are not available.” This category allows “for situations in which there is little, if any, market activity for the asset or liability at the measurement date”. Earlier in the standard, FASB explains that “observable inputs” are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants. | |
Stock-based compensation | |
The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. | |
The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50. | |
Earnings per share | |
The Company follows ASC Topic 260 to account for the earnings per share. Basic earning per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. As of December 31, 2013, there were no dilutive common shares outstanding. | |
Use of estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles 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 revenue and expenses during the reporting period. Actual results could differ significantly from those estimates. | |
Concentration of revenue | |
During the year ended December 31, 2013, there was $164,593 in revenue generated from two customers. | |
Income taxes | |
The Company follows ASC Topic 740 for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. | |
Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. | |
The Company applies a more-likely-than-not recognition threshold for all tax uncertainties. ASC Topic 740 only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. As of December 31, 2013 and 2012, the Company reviewed its tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company. | |
The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months. | |
The Company classifies tax-related penalties and net interest as income tax expense. As of December 31, 2013 and 2012, no income tax expense has been incurred. | |
Recent pronouncements | |
The Company has evaluated the recent accounting pronouncements through April 2014 and believes that none of them will have a material effect on the company’s financial statements. |
GOING_CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
GOING CONCERN | ' |
NOTE 2 – GOING CONCERN | |
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. As noted above, the Company is in the development stage and, accordingly, has not yet generated revenues from operations. Since its inception, the Company has been engaged substantially in financing activities and developing its business plan and incurring start up costs and expenses. As a result, the Company incurred accumulated net losses from Inception (July 10, 2012) through the period ended December 31, 2013 of ($188,019). In addition, the Company’s development activities since inception have been financially sustained through debt and equity financing. | |
The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. |
LINE_OF_CREDIT_RECEIVABLE_RELA
LINE OF CREDIT RECEIVABLE b RELATED PARTY | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
LINE OF CREDIT RECEIVABLE b RELATED PARTY | ' |
NOTE 3 – LINE OF CREDIT RECEIVABLE – RELATED PARTY | |
On September 13, 2013, the Company executed a revolving credit line receivable with an entity owned and controlled by an officer, director and shareholder for up to $500,000. In October 2013, the amount was increased for up to $2,000,000. The unsecured line of credit bears interest at 2% per annum with principal and interest due on September 13, 2015. As of December 31, 2013, an amount of $1,472,136 was loaned to the related party with a remaining balance of $527,864 available. As of December 31, 2013, the balance of accrued interest was $6,542. | |
Interest expense for line of credit receivable – related party for the year ended December 31, 2013 was $6,542. |
LINE_OF_CREDIT_PAYABLE
LINE OF CREDIT PAYABLE | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
LINE OF CREDIT PAYABLE | ' |
NOTE 4 – LINE OF CREDIT PAYABLE | |
On July 15, 2012, the Company executed a revolving credit line with third party for up to $200,000. The unsecured line of credit bears interest at 6% per annum with principal and interest due on July 16, 2015. During the year ended December 31, 2013, the Company repaid the entire balance of principal of $92,200 and accrued interest of $3,463. During the year ended December 31, 2013, the parties mutually agreed to terminate the revolving line of credit. As of December 31, 2013 and 2012, the balance was $0 and $35,000, respectively. As of December 31, 2013, the balance of accrued interest was $0. | |
Interest expense for line of credit payable for the year ended December 31, 2013 and for the period from inception (July 10, 2012) through December 31, 2012 was $2,963 and $501, respectively. | |
LINE_OF_CREDIT_PAYABLE_RELATED
LINE OF CREDIT PAYABLE b RELATED PARTY | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
LINE OF CREDIT PAYABLE b RELATED PARTY | ' |
NOTE 5 – LINE OF CREDIT PAYABLE – RELATED PARTY | |
On August 8, 2013, the Company executed a revolving credit line with an entity owned and controlled by an officer, director and shareholder for up to $500,000. The unsecured line of credit bears interest at 2% per annum with principal and interest due on August 8, 2015. As of December 31, 2013, an amount of $320,240 has been used for general corporate purposes with a remaining balance of $179,760 available. As of December 31, 2013, the balance of accrued interest was $1,637. | |
Interest expense for the line of credit payable for the year ended December 31, 2013 was $1,637. | |
NOTES_PAYABLE_RELATED_PARTY
NOTES PAYABLE b RELATED PARTY | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
NOTES PAYABLE b RELATED PARTY | ' |
NOTE 6 – NOTES PAYABLE – RELATED PARTY | |
On July 12, 2012, the Company executed a promissory note with a related party for $10,000. The unsecured loan bears interest at 6% per annum with principal and interest due on July 13, 2015. During the year ended December 31, 2013, related party loaned an additional $3,500 to the Company with the same terms as the previous promissory note for $10,000. During the year ended December 31, 2013, the related party forgave the entire balance of principal of $13,500 and accrued interest of $702. As of December 31, 2013, the balance of accrued interest was $0. | |
Interest expense – related party for notes payable – related party for the year ended December 31, 2013 and for the period from inception (July 10, 2012) through December 31, 2012 was $419 and $283, respectively. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||
Dec. 31, 2013 | |||
Income Tax Disclosure [Abstract] | ' | ||
INCOME TAXES | ' | ||
NOTE 7 – INCOME TAXES | |||
At December 31, 2013 and 2012, the Company had a federal operating loss carryforward of $187,519 and $43,944, respectively, which begins to expire in 2032. | |||
Components of net deferred tax assets, including a valuation allowance, are as follows at December 31, 2013 and 2012: | |||
2013 | 2012 | ||
Deferred tax assets: | |||
Net operating loss carryforward | $ 65,632 | $ 15,380 | |
Total deferred tax assets | 65,632 | 15,380 | |
Less: Valuation allowance | (65,632) | (15,380) | |
Net deferred tax assets | $ - | $ - | |
The valuation allowance for deferred tax assets as of December 31, 2013 and 2012 was $65,632 and $15,380, respectively, which will begin to expire in 2032. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of December 31, 2013 and 2012 and maintained a full valuation allowance. | |||
Reconciliation between the statutory rate and the effective tax rate is as follows at December 31, 2013 and 2012: | |||
2013 | 2012 | ||
Federal statutory rate | (35.0)% | (35.0)% | |
State taxes, net of federal benefit | (0.00)% | (0.00)% | |
Change in valuation allowance | 35.0% | 35.0% | |
Effective tax rate | 0.0% | 0.0% | |
STOCKHOLDERS_EQUITY_DEFICIT
STOCKHOLDERSb EQUITY (DEFICIT) | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
STOCKHOLDERSb EQUITY (DEFICIT) | ' |
NOTE 8 – STOCKHOLDERS’ EQUITY (DEFICIT) | |
The Company is authorized to issue 2,000,000,000 shares of its $0.001 par value common stock and 10,000,000 shares of its $0.001 par value preferred stock. | |
On September 6, 2013, the Company effected a 20-for-1 forward stock split of its $0.001 par value common stock and increased its authorized common stock to 2,000,000,000 shares. | |
All shares and per share amounts have been retroactively restated to reflect the split discussed above. | |
Common stock | |
On July 11, 2012, the Company issued an officer and director of the Company 4,000,000 shares of its $0.001 par value common stock at a price of $0.001 per share for cash of $4,000. | |
On July 19, 2012, the Company issued 10,000 shares of common stock at a price of $0.05 per share for legal services valued at $500. The Company valued the shares at the fair value of the services rendered. | |
On February 25, 2013, the Company issued a total of 10,000,000 shares of common stock for cash totaling $50,000. | |
On April 16, 2013, the Company issued 1,000,000 shares of common stock to a former officer of the Company for services to be rendered valued at $5,000. On June 6, 2013, the Company cancelled 1,000,000 shares of common stock due to non-performance of services and the individual was terminated. | |
On August 26, 2013, a former officer, director and shareholder agreed to forgive debt totaling $14,202 which consisted of $13,500 in principal and $702 in accrued interest payable. | |
During September 2013, the Company issued 1,470,000 shares of common stock for cash of $294,000. | |
During December 2013, the Company issued 1,355,000 shares of common stock for cash of $1,084,000. | |
WARRANTS_AND_OPTIONS
WARRANTS AND OPTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
WARRANTS AND OPTIONS | ' |
NOTE 9 – WARRANTS AND OPTIONS | |
As of December 31, 2013, there were no warrants or options outstanding to acquire any additional shares of common stock. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 10 – SUBSEQUENT EVENTS | |
During the three months ended March 31, 2014, the Company issued 517,649 shares of common stock for cash of $440,001. | |
On January 15, 2014, the Company completed the reverse triangular merger, pursuant to the Acquisition Agreement and Plan of Merger (“Merger”), by and among Capstone Sub Co. (“Sub Co”), a Nevada corporation and wholly owned subsidiary of the Company, and Capstone Affluent Strategies, Inc. (“Affluent”), a California corporation, whereby Affluent became a wholly owned subsidiary of the Company. On January 15, 2014, the parties filed the Articles of Merger with the Nevada Secretary of State. A copy of the Articles of Merger is attached hereto as Exhibit 3(i)(d). | |
Pursuant to the conditions to closing of the Merger, the Company issued 1,000 shares of its restricted common stock in exchange for 100% of Affluent’s issued and outstanding common stock. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
Organization | |
The Company was incorporated on July 10, 2012 (Date of Inception) under the laws of the State of Nevada, as Creative App Solutions, Inc. On August 23, 2013, the Company amended its articles of incorporation and changed their name to Capstone Financial Group, Inc. | |
During the period of inception (July 10, 2012) through December 31, 2012, the Company had not commenced significant operations and, in accordance with ASC Topic 915, the Company was considered a development stage company. During the year ended December 31, 2013, the Company exited the development stage. | |
Nature of operations | ' |
Nature of operations | |
The Company will design and sell mobile application for the Apple and Android platforms. During the year ended December 31, 2013 the Company changed its business plan and plans to offer financial services and consulting to businesses and they rely heavily on an officer, director and shareholder who hold the proper licenses in order to conduct business. | |
Cash and cash equivalents | ' |
Cash and cash equivalents | |
For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value. | |
Revenue recognition | ' |
Revenue recognition | |
We recognize revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the product or service has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of our fees is probable. | |
The Company will record revenue when it is realizable and earned and the services have been rendered to the customers. During the year ended December 31, 2013, the Company recorded $154,229 in revenue related to financial services consulting and commissions that were assigned by an officer, director and shareholder of the Company. The assignment was necessary since the officer, director and shareholder holds the proper licenses in order to conduct business. | |
Advertising costs | ' |
Advertising costs | |
Advertising costs are anticipated to be expensed as incurred; however there were $6,935 and $0 advertising and marketing costs included in general and administrative expenses for the year ended December 31, 2013 and from Inception (July 10, 2012) to December 31, 2012. | |
Fair value of financial instruments | ' |
Fair value of financial instruments | |
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2013. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand. | |
Level 1: The preferred inputs to valuation efforts are “quoted prices in active markets for identical assets or liabilities,” with the caveat that the reporting entity must have access to that market. Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets. | |
Fair value of financial instruments | ' |
Fair value of financial instruments | |
Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations. | |
Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as “unobservable,” and limits their use by saying they “shall be used to measure fair value to the extent that observable inputs are not available.” This category allows “for situations in which there is little, if any, market activity for the asset or liability at the measurement date”. Earlier in the standard, FASB explains that “observable inputs” are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants. | |
Stock-based compensation | ' |
Stock-based compensation | |
The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. | |
The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50. | |
Earnings per share | ' |
Earnings per share | |
The Company follows ASC Topic 260 to account for the earnings per share. Basic earning per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. As of December 31, 2013, there were no dilutive common shares outstanding. | |
Use of estimates | ' |
Use of estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles 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 revenue and expenses during the reporting period. Actual results could differ significantly from those estimates. | |
Concentration of revenue | ' |
Concentration of revenue | |
During the year ended December 31, 2013, there was $164,593 in revenue generated from two customers. | |
Income taxes | ' |
Income taxes | |
The Company follows ASC Topic 740 for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. | |
Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. | |
The Company applies a more-likely-than-not recognition threshold for all tax uncertainties. ASC Topic 740 only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. As of December 31, 2013 and 2012, the Company reviewed its tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company. | |
The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months. | |
The Company classifies tax-related penalties and net interest as income tax expense. As of December 31, 2013 and 2012, no income tax expense has been incurred. | |
Recent pronouncements | ' |
Recent pronouncements | |
The Company has evaluated the recent accounting pronouncements through April 2014 and believes that none of them will have a material effect on the company’s financial statements. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Income Tax Disclosure [Abstract] | ' | ||
Components of net deferred tax assets | ' | ||
2013 | 2012 | ||
Deferred tax assets: | |||
Net operating loss carryforward | $ 65,632 | $ 15,380 | |
Total deferred tax assets | 65,632 | 15,380 | |
Less: Valuation allowance | (65,632) | (15,380) | |
Net deferred tax assets | $ - | $ - | |
Reconciliation between the statutory rate and the effective tax | ' | ||
2013 | 2012 | ||
Federal statutory rate | (35.0)% | (35.0)% | |
State taxes, net of federal benefit | (0.00)% | (0.00)% | |
Change in valuation allowance | 35.0% | 35.0% | |
Effective tax rate | 0.0% | 0.0% |
GOING_CONCERN_Details_Narrativ
GOING CONCERN (Details Narrative) (USD $) | 18 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
Incurred accumulated net losses | ($188,019) |
LINE_OF_CREDIT_RECEIVABLE_RELA1
LINE OF CREDIT RECEIVABLE b RELATED PARTY (Details Narrative) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Oct. 01, 2013 | Sep. 13, 2013 | |
Notes to Financial Statements | ' | ' | ' |
Revolving credit line receivable | ' | ' | $500,000 |
Amount increased | ' | 2,000,000 | ' |
Loaned to the related party | 1,472,136 | ' | ' |
Remaining balance | 527,864 | ' | ' |
Accrued interest | 6,542 | ' | ' |
Interest expense for line of credit receivable b related party | $6,542 | ' | ' |
LINE_OF_CREDIT_PAYABLE_Details
LINE OF CREDIT PAYABLE (Details Narrative) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jul. 15, 2012 | |
Notes to Financial Statements | ' | ' | ' |
Revolving credit line | ' | ' | $200,000 |
Line of credit bears interest | ' | ' | '6% |
Balance of principal | 92,200 | ' | ' |
Accrued interest | 3,463 | ' | ' |
Interest expense | $2,963 | $501 | ' |
LINE_OF_CREDIT_PAYABLE_RELATED1
LINE OF CREDIT PAYABLE b RELATED PARTY (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Aug. 08, 2013 | |
Notes to Financial Statements | ' | ' |
Director and shareholder | ' | $500,000 |
Line of credit bears interest | ' | '2% |
Amount of general corporate purposes | 320,240 | ' |
Remaining balance | 179,760 | ' |
Accrued interest | 1,637 | ' |
Interest expense | $1,637 | ' |
NOTES_PAYABLE_RELATED_PARTY_De
NOTES PAYABLE b RELATED PARTY (Details Narrative) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jul. 12, 2012 | |
Notes to Financial Statements | ' | ' | ' |
Promissory note related party | ' | ' | $10,000 |
Loan bears interest | ' | ' | '6% |
Related party loan | 3,500 | ' | ' |
Previous promissory note | 10,000 | ' | ' |
Related party balance of principal | 13,500 | ' | ' |
Accrued interest | 702 | ' | ' |
Balance of accrued interest | 0 | ' | ' |
Interest expense b related party | $419 | $283 | ' |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Federal operating loss | $187,519 | $43,944 |
Deferred tax asset | $65,632 | $15,380 |
STOCKHOLDERS_EQUITY_DEFICIT_De
STOCKHOLDERSb EQUITY (DEFICIT) (Details Narrative) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 06, 2013 | Aug. 26, 2013 | Jun. 06, 2013 | Apr. 16, 2013 | Feb. 25, 2013 |
Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Common stock authorized issue shares | $2,000,000,000 | ' | ' | ' | ' | ' | ' |
Common stock par value | $0.00 | ' | $0.00 | ' | ' | ' | ' |
Preferred stock authorized shares | ' | ' | 10,000,000 | ' | ' | ' | ' |
Preferred stock par value | $0.00 | ' | ' | ' | ' | ' | ' |
Common stock authorized shares | ' | ' | 2,000,000,000 | ' | ' | ' | ' |
Shares of common stock total | ' | ' | ' | ' | ' | ' | 10,000,000 |
Cash total | ' | ' | ' | ' | ' | ' | 50,000 |
Shares of common stock | 1,355,000 | 1,470,000 | ' | ' | 1,000,000 | 1,000,000 | ' |
Rendered value | ' | ' | ' | ' | ' | 5,000 | ' |
Forgive debt total | ' | ' | ' | 14,202 | ' | ' | ' |
Debt principal | ' | ' | ' | 13,500 | ' | ' | ' |
Accrued interest payable | ' | ' | ' | 702 | ' | ' | ' |
Common stock for cash | $1,084,000 | $294,000 | ' | ' | ' | ' | ' |
SUBSEQUENT_EVENTS_Details_Narr
SUBSEQUENT EVENTS (Details Narrative) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Shares of common stock | $517,649 |
Common stock for cash | $440,001 |