CANNA (MPGR) 10-Q 17 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 09, 2016
Document And Entity Information
Entity Registrant Name	RICH CIGARS INC
Entity Central Index Key	1,582,962
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,612,980
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 6,753	$ 7,056
Accounts receivable, net	806
Inventory	6,537	2,947
Prepaid expenses	12,810	12,498
Total current assets	26,906	22,501
Property and Equipment, net	1,030	1,350
Intangible Assets, net	7,225	8,500
Total Fixed Assets	8,255	9,850
Total assets	35,161	32,351
Current liabilities:
Accounts payable and accrued liabilities	8,589	1,408
Total current liabilities	8,589	1,408
Total liabilities	8,589	1,408
Commitments and Contingencies
Shareholders' equity:
Common stock; no par value; 1,000,000,000 shares authorized; 2,612,980 and 2,355,400 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	462,689	339,351
Accumulated deficit	(436,117)	(308,408)
Total shareholders' equity	26,572	30,943
Total liabilities and shareholders' equity	$ 35,161	$ 32,351

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock authorized	1,000,000,000	1,000,000,000
Common stock no par value
Common stock issued	2,612,980	2,355,400
Common stock outstanding	2,612,980	2,355,400

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
REVENUES	$ 1,213		$ 4,184
COST OF SALES	507		1,428
GROSS PROFIT	706		2,756
OPERATING EXPENSES
Professional Fees	35,067	6,305	45,739	16,269
Officers Compensation	15,191		43,899
Travel Expense	9,137	3,015	21,237	28,235
Meals and Entertainment	2,053	3,262	2,695	5,516
Other General and Administrative	2,009	4,406	13,071	4,707
Telephone Expense	942	379	2,229	2,303
Amortization Expense	425		1,275
Depreciation Expense	106	107	320	321
Total operating expenses	64,930	17,474	130,465	57,351
Operating Loss	(64,224)	(17,474)	(127,709)	(57,351)
Other Income
NET LOSS	$ (64,224)	$ (17,474)	$ (127,709)	$ (57,351)
Net loss per share applicable to common stockholders - basic and diluted	$ (0.03)	$ (0.01)	$ (0.05)	$ (0.02)
Weighted average number of shares outstanding - basic and diluted	2,443,945	2,355,400	2,385,130	2,353,835

Condensed Statements of Shareho

Condensed Statements of Shareholders' Equity - USD ($)	Common Stock [Member]	Common Stock Subscription Receivable [Member]	Accumulated Deficit [Member]	Total
BALANCE, beginning at Dec. 31, 2014	$ 238,040	$ (16,252)	$ (211,192)	$ 10,596
BALANCE, beginning shares at Dec. 31, 2014	2,380,400
Treasury shares purchased and cancelled	$ (2,500)			(2,500)
Treasury shares purchased and cancelled, shares	(25,000)
Collection of subscriptions receivable		16,252		16,252
Shareholder contributions	103,811			103,811
Net Loss			(97,216)	(97,216)
BALANCE, ending at Dec. 31, 2015	$ 339,351		(308,408)	$ 30,943
BALANCE, ending shares at Dec. 31, 2015	2,355,400			2,355,400
Shareholder contributions	$ 97,580			$ 97,580
Issuance of shares for cash	$ 14,508			14,508
Issuance of shares for cash, shares	145,080
Issuance of shares for services	$ 11,250			11,250
Issuance of shares for services, shares	112,500
Net Loss			(127,709)	(127,709)
BALANCE, ending at Sep. 30, 2016	$ 462,689		$ (436,117)	$ 26,572
BALANCE, ending shares at Sep. 30, 2016	2,612,980			2,612,980

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (127,709)	$ (57,351)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and Amortization	1,595	321
Shares issued for services	11,250
Change in assets and liabilities:
Accounts receivable	(806)
Prepaid expenses	(312)
Inventory	(3,590)	(1,500)
Accounts payable and accrued expenses	7,181	892
Net cash used in operating activities	(112,391)	(57,638)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash provided by (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Collection of subscription receivable		16,252
Proceeds from share issuance	14,508
Shareholder contributions	97,580	50,409
Repurchase and cancellation of common shares		(2,500)
Net cash provided by financing activities	112,088	64,161
NET CHANGE IN CASH	(303)	6,523
CASH, beginning of period	7,056
CASH, end of period	6,753	6,523
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest
Cash paid for income taxes

NATURE OF ORGANIZATION

NATURE OF ORGANIZATION	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF ORGANIZATION	NOTE 1 NATURE OF ORGANIZATION Rich Cigars, Inc. (the "Company") is a Florida Corporation incorporated on July 29, 2013, and was established to manufacture and distribute high-quality, hand rolled, premium cigars under the Rich Cigars brand name. The Company has branded custom cigars to be sold via the internet and through retail locations. The Company's primary operations are currently in the Ocala, Florida area, and management intends to conduct our business principally in the U.S. through our own sales and marketing team.

RECLASSIFICATION OF PRIOR YEAR

RECLASSIFICATION OF PRIOR YEAR PRESENTATION	9 Months Ended
	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
RECLASSIFICATION OF PRIOR YEAR PRESENTATION	NOTE 2 RECLASSIFICATION OF PRIOR YEAR PRESENTATION Certain prior year amounts have been reclassified for consistency with the current period presentation. Additionally, certain expense items have been broken out differently. Previously, the Company had netted its stock subscription receivables against common stock. In the current period the Company concluded that it was more appropriate to present these subscription receivables separately in the Balance Sheet and in the Statement of Shareholders' Equity. These reclassifications had no effect on the reported results of operations. This change in classification does not materially affect previously reported cash flows from operations or from financing activities in the Statement of Cash Flows, and had no effect on the previously reported Statement of Operations for any period.

GOING CONCERN

GOING CONCERN	9 Months Ended
	Sep. 30, 2016
GOING CONCERN [Abstract]
GOING CONCERN	NOTE 3 GOING CONCERN These financial statements have been prepared on a going concern basis which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the foreseeable future. As of September 30, 2016, the Company has incurred net losses of $436,117 since inception. This raises substantial doubt about the Company's ability to continue as a going concern. Management's plans include raising capital through the equity markets to fund operations and eventually, the generating of revenue through its business; however, there can be no assurance that the Company will be successful in such activities. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classifications of the liabilities that might be necessary should the Company be unable to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") on the accrual basis of accounting. The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended July 31, 2015 and notes thereto contained in the Company's Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the financial statements. The significant accounting policies, estimates and related judgments underlying the Company's financial statements are summarized below. In applying these policies, management makes subjective judgments that frequently require estimates about matters that are inherently uncertain. Actual results could differ materially from those estimates. Earnings per Share The Company has adopted ASC 260-10-50, Earnings per Share,

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
EQUITY	NOTE 5 EQUITY In August 2016, the Company issued approximately 125,080 shares of the Company's common stock for $12,508. Additionally, in September 2016 the company issued 20,000 shares of the Company's common stock for $2,000. In September 2016, the Company issued approximately 112,500 shares of common stock in exchange for consulting services performed. The company recorded Professional Fees expense associated with the stock issuance of approximately $11,250. As of September 30, 2016, the Company's CEO contributed $201,391 in the business to be used in the Company's regular activities. As of September 30, 2016, the Company has used these proceeds on the Company's operations and purchases

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 6 COMMITMENTS AND CONTINGENCIES During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with ASC 450-20-50, Contingencies.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 7 SUBSEQUENT EVENTS The Company has evaluated subsequent events that occurred through the date of the filing of the Company's third quarter of fiscal year 2016 Form 10-Q. As of October 5, 2016, the Company's Board of Directors approved an increase in the number of shares authorized for issuance to one billion shares (1,000,000,000). Additionally, the Board declared a five for one stock split of the Company's outstanding common stock. After the stock split is effective, the total number of shares issued and outstanding is approximately 2,612,980. This transaction has been retroactively applied to all periods presented in the financial statements. Other than this transaction, no significant event occurred subsequent to the balance sheet date and prior to the filing date of this report that would have a material impact on the Financial Statements.

SUMMARY OF SIGNIFICANT ACCOUN14

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") on the accrual basis of accounting. The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended July 31, 2015 and notes thereto contained in the Company's Annual Report on Form 10-K.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the financial statements. The significant accounting policies, estimates and related judgments underlying the Company's financial statements are summarized below. In applying these policies, management makes subjective judgments that frequently require estimates about matters that are inherently uncertain. Actual results could differ materially from those estimates.
Earnings per Share	Earnings per Share The Company has adopted ASC 260-10-50, Earnings per Share,

GOING CONCERN (Details)

GOING CONCERN (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
GOING CONCERN [Abstract]
Accumulated deficit	$ 436,117	$ 308,408

EQUITY (Details)

EQUITY (Details) - USD ($)	1 Months Ended		9 Months Ended		21 Months Ended
	Sep. 30, 2016	Aug. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
Class of Stock [Line Items]
Stock issued during period, value			$ 14,508
Stock issued for services, value			11,250
Shareholder contributions			$ 97,580	$ 50,409	$ 201,391
Common Stock [Member]
Class of Stock [Line Items]
Stock issued during period, shares	20,000	125,080
Stock issued during period, value	$ 2,000	$ 12,508
Common Stock [Member] | Consulting services [Member]
Class of Stock [Line Items]
Stock issued for services, shares	112,500
Stock issued for services, value	$ 11,250

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - shares	Oct. 05, 2016	Sep. 30, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Common stock shares issued		2,612,980	2,355,400
Common stock shares outstanding		2,612,980	2,355,400
Common stock authorized		1,000,000,000	1,000,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock shares issued	2,612,980
Common stock shares outstanding	2,612,980
Common stock authorized	1,000,000,000