Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 14, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | ADM ENDEAVORS, INC. | |
Entity Central Index Key | 0001588014 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 138,020,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash | $ 35,371 | $ 275,422 |
Accounts receivable, net | 260,213 | 76,200 |
Inventory | 193,580 | 138,693 |
Other receivable | 3,592 | 1,815 |
Assets attributable to discontinued operations | 13,175 | |
Total current assets | 492,756 | 505,305 |
Fixed assets, net | 200,556 | 217,373 |
Operating lease right-of-use asset | 11,423 | 28,328 |
Goodwill | 688,778 | 688,778 |
Total assets | 1,393,513 | 1,439,784 |
Current liabilities | ||
Operating lease obligation, current portion | 11,423 | 28,328 |
Finance lease liability, current portion | ||
Accounts payable | 32,420 | 19,257 |
Accounts payable to related parties | ||
Accrued expenses | 193,875 | 201,790 |
Liabilities attributable to discontinued operations | 107,556 | |
Derivative liabilities | 208,381 | 197,464 |
Total current liabilities | 446,099 | 554,395 |
Non-current liabilities | ||
Convertible note payable, net of discounts | 106,092 | 106,092 |
Total non-current liabilities | 106,092 | 106,092 |
Total liabilities | 552,191 | 660,487 |
Commitments and contingencies (see Note 4) | ||
Stockholders' equity | ||
Preferred stock, $0.001 par value, 80,000,000 shares authorized, 2,000,000 and 2,000,000 shares outstanding as of March 31, 2020 and December 31, 2019, respectively | 2,000 | 2,000 |
Common stock, $0.001 par value, 800,000,000 shares authorized, 138,020,000 and 136,270,000 shares issued, issuable, and outstanding at March 31, 2020 and December 31, 2019, respectively | 138,020 | 136,270 |
Additional paid-in capital | 572,879 | 539,629 |
Retained earnings | 128,423 | 101,398 |
Total stockholders' equity | 841,322 | 779,297 |
Total liabilities and stockholders' equity | $ 1,393,513 | $ 1,439,784 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 80,000,000 | 80,000,000 |
Preferred stock, shares outstanding | 2,000,000 | 2,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 138,020,000 | 136,270,000 |
Common stock, shares issuable | 138,020,000 | 136,270,000 |
Common stock, shares outstanding | 138,020,000 | 136,270,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, net | $ 880,782 | $ 525,474 |
Operating expenses | ||
Direct costs of revenue | 570,349 | 208,429 |
General and administrative | 308,867 | 298,034 |
Stock-based compensation | 35,000 | 10,625 |
Marketing and selling | 25,259 | 39,137 |
Total operating expenses | 939,475 | 556,225 |
Operating loss | (58,693) | (30,751) |
Other income (expense) | ||
Change in fair value of embedded derivative | (10,917) | 12,452 |
Interest expense | (25,927) | |
Total other income (expense) | (10,917) | (13,475) |
Loss before tax provision | (69,610) | (44,226) |
Provision for income taxes | ||
Net loss from continuing operations | (69,610) | (44,226) |
Net income (loss) from discontinued operations | 96,635 | (6,015) |
Net income (loss) | $ 27,025 | $ (50,241) |
Net income (loss) per share for continuing operations - basic | $ 0 | $ 0 |
Net income (loss) per share for continuing operations - diluted | $ 0 | $ 0 |
Weighted average number of shares outstanding - basic | 137,846,923 | 130,453,333 |
Weighted average number of shares outstanding - diluted | 173,002,923 | 130,453,333 |
School Uniform Sales [Member] | ||
Revenue, net | $ 66,296 | $ 98,198 |
Promotional Sales [Member] | ||
Revenue, net | $ 814,486 | $ 427,276 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2018 | $ 2,000 | $ 128,020 | $ 427,880 | $ (273,882) | $ 284,018 |
Balance, shares at Dec. 31, 2018 | 2,000,000 | 128,020,000 | |||
Common stock issued for services | $ 3,750 | 275,625 | 279,375 | ||
Common stock issued for services, shares | 3,750,000 | ||||
Net income (loss) | (50,241) | (50,241) | |||
Balance at Mar. 31, 2019 | $ 2,000 | $ 131,770 | 703,505 | (324,123) | 513,152 |
Balance, shares at Mar. 31, 2019 | 2,000,000 | 131,770,000 | |||
Balance at Dec. 31, 2019 | $ 2,000 | $ 136,270 | 539,629 | 101,398 | 779,297 |
Balance, shares at Dec. 31, 2019 | 2,000,000 | 136,270,000 | |||
Common stock issued for services | $ 1,750 | 33,250 | 35,000 | ||
Common stock issued for services, shares | 1,750,000 | ||||
Net income (loss) | 27,025 | 27,025 | |||
Balance at Mar. 31, 2020 | $ 2,000 | $ 138,020 | $ 572,879 | $ 128,423 | $ 841,322 |
Balance, shares at Mar. 31, 2020 | 2,000,000 | 138,020,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) from operations | $ 27,025 | $ (50,241) |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||
Depreciation and amortization | 16,817 | 11,819 |
Amortization of discount | 16,548 | |
Issuance of common stock for services | 35,000 | 10,625 |
Bad debt expense | 641 | |
Gain on disposal of ADM Enterprises, Inc. | (96,635) | |
Change in derivative liability | 10,917 | (12,452) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (184,013) | 15,489 |
Inventory | (54,887) | 36,814 |
Prepaid expenses and other assets | (1,776) | (153) |
Accounts payable | 10,909 | (13,497) |
Accounts payable to related party | (18,455) | |
Accrued expenses | (3,407) | 4,983 |
Net cash provided by (used in) operating activities | (240,050) | 2,121 |
Cash flows used in investing activities | ||
Disposal of ADM Enterprises, Inc. | (12,759) | |
Net cash used in investing activities | (12,759) | |
Cash flows provided by (used in) financing activities: | ||
Repayments on notes payable | (1,354) | |
Repayments on capitalized leases | (8,006) | |
Net cash provided by (used in) financing activities | (9,360) | |
Net increase (decrease) in cash | (252,809) | (7,239) |
Cash at beginning of period | 275,422 | 29,772 |
Included in discontinued operations | 12,758 | 1,427 |
Adjusted cash and cash equivalents at beginning of period | 288,180 | 31,199 |
Cash at end of period | 35,371 | 23,960 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 105 | |
Cash paid for taxes | ||
Non-cash investing and financing activities: | ||
Common stock issued for accrued expenses | 131,250 | |
Common stock issued for prepaid expenses | $ 137,500 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS On January 4, 2001, we incorporated in North Dakota as ADM Enterprises, Inc. On May 9, 2006, the Company changed both its name to ADM Endeavors, Inc. (“ADM Endeavors,” or the “Company,” “we,” “us,” or “our”) and its domicile to the state of Nevada. On July 1, 2008, the Company acquired all of the assets of ADM Enterprises, LLC (“ADM Enterprises”), a sole proprietorship owned by Ardell and Tammera Mees, in exchange for 10,000,000 newly issued shares of our common stock. As a result, ADM Enterprises became a wholly owned subsidiary of the Company. Even though the Company was incorporated on January 4, 2001, it had no operations until the share exchange agreement with ADM Enterprises on July 1, 2008. ADM provides installation services to grocery décor and design companies primarily in North Dakota. In May 2013, the Company amended its Articles of Incorporation to provide for an increase in its authorized share capital. The authorized common stock increased to 800,000,000 shares at a par value of $0.001 per share and preferred stock increased to 80,000,000 shares at a par value of $0.001 per share. On April 19, 2018, the Company acquired Just Right Products, Inc. (“JRP”), a Texas corporation. JRP was incorporated on January 17, 2010. The acquisition of 100% of JRP from its sole shareholder was through a stock exchange whereas the Company issued 2,000,000 shares of restricted Series A preferred stock (the “Acquisition Shares”). Each share of the Series A preferred stock is convertible into ten shares of common stock and each share has 100 votes on a fully diluted basis. The Acquisition Shares represents 61% of voting shares, thus there is a change of voting control. The transaction was accounted for as a reverse acquisition. JRP is focused on being an added value reseller with concentration in embroidery, screen printing, importing and uniforms for businesses, schools and individuals in the State of Texas. On January 1, 2020, the Company determined that it would discontinue its business operations in North Dakota, specifically, ADM Enterprises (the “Disposed Company”). The Company has made a settlement with Ardell Mees to provide him with the assets of the Disposed Company and in exchange, Mr. Mees will assume all liabilities of the Disposed Company. As part of the transaction, Mr. Mees resigned from all positions with the Company and, in a private transaction, sold a significant portion of his ownership in the Company to Marc Johnson. The Company and Mr. Mees entered into an indemnification agreement whereby Mr. Mees indemnified the Company for any liabilities of the Disposed Company. The Company has been affected negatively by COVID-19 as a significant portion of the Company’s sales are for school uniforms which, due to COVID-19 and the closing of schools nationwide, should have a negative impact on the Company’s financials. Additionally, delivery delays have been seen in the first quarter of 2020 due to slowed production in China due to COVID-19, but management does not expect this will significantly impact gross sales due to the diverse growth the Company is experiencing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) and has a year-end of December 31. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. The unaudited financial statements of the Company for the three month periods ended March 31, 2020 and 2019 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2019 was derived from the audited financial statements included in the Company’s financial statements as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on May 13, 2020. These financial statements should be read in conjunction with that report. Principles of Consolidation The accompanying unaudited consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiary, JRP, at March 31, 2020. All significant intercompany balances and transactions have been eliminated. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with U.S. GAAP requires management to make use of certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Significant estimates are related to allowance for doubtful accounts, goodwill, derivative liability, stock-based compensation and deferred tax valuations. Stock-Based Compensation Stock-based compensation expense is recorded in accordance with FASB ASC Topic 718, Compensation – Stock Compensation, for stock and stock options awarded in return for services rendered. The expense is measured at the grant-date fair value of the award and recognized as compensation expense on a straight-line basis over the service period, which is the vesting period. The Company estimates forfeitures that it expects will occur and records expense based upon the number of awards expected to vest. Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At March 31, 2020 and December 31, 2019, the Company had no cash equivalents. Included in assets attributable to discontinued operations is $0 and $12,758 of cash as of March 31, 2020 and December 31, 2019, respectively. Allowance for Doubtful Accounts The Company establishes an allowance for doubtful accounts to ensure trade and notes receivable are not overstated due to non-collectability. The Company’s allowance is based on a variety of factors, including age of the receivable, significant one-time events, historical experience, and other risk considerations. The Company had an allowance at March 31, 2020 and December 31, 2019 of $0. The Company had bad debt expense of $0 and $641 for the three months ended March 31, 2020 and 2019, respectively. Inventory Inventory is valued at the lower of cost or net realizable value. Cost is determined using a weighted-average cost method. The Company decreases the value of inventory for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value, based upon an aging analysis of the inventory on hand, specifically known inventory-related risks, and assumptions about future demand and market conditions. The Company has inventory of $193,580 and $138,693 as of March 31, 2020 and December 31, 2019, respectively. Three vendors accounted for approximately 94% of inventory purchases during the three months ended March 31, 2020, respectively. These same vendors made up 0% and 0% of our accounts payable as of March 31, 2020 and December 31, 2019, respectively. Derivative Instruments Derivatives are measured at their fair value on the balance sheet. In determining the appropriate fair value, the Company uses the Black-Scholes-Merton option pricing model. Changes in fair value are recorded in the consolidated statements of operations. Fair Value of Financial Instruments The Company measures its financial assets and liabilities in accordance with U.S. GAAP. For certain of our financial instruments, including cash, accounts payable, accrued expenses, and short-term loans the carrying amounts approximate fair value due to their short maturities. We follow accounting guidance for financial and non-financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. The Company adopted the provisions of FASB ASC 820 (the “Fair Value Topic”) which defines fair value, establishes a framework for measuring fair value under U.S. GAAP, and expands disclosures about fair value measurements. The Company had no assets or liabilities other than derivative liabilities measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019. Fixed Assets Fixed assets are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method over the assets estimated useful life. Upon the sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in consolidated statements of operations. Classification Estimated Useful Lives Equipment 5 to 7 years Leasehold improvements Shorter of useful life or lease term Furniture and fixtures 4 to 7 years Websites 3 years Goodwill Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible assets of businesses acquired. Goodwill is not amortized, but instead assessed for impairment. We perform our annual impairment review of goodwill in our fiscal fourth quarter or when a triggering event occurs between annual impairment tests. No impairment was recorded in fiscal 2018, 2019 or 2020 as a result of our qualitative assessments over our single reporting segment. The Company performs a qualitative assessment for each of its reporting units to determine if the two-step process for impairment testing is required. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than it’s carrying amount, the Company would then evaluate the recoverability of goodwill using a two-step impairment test approach at the reporting unit level. In the first step, the fair value for the reporting unit is compared to its book value including goodwill. In the case that the fair value of the reporting unit is less than book value, a second step is performed which compares the implied fair value of the reporting unit’s goodwill to the book value of the goodwill. The fair value for the goodwill is determined based on the difference between the fair values of the reporting unit and the net fair values of the identifiable assets and liabilities of such reporting unit. If the implied fair value of the goodwill is less than the book value, the difference is recognized as impairment. Impairment of Long-lived Assets The Company follows paragraph 360-10-05-4 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets, such as intellectual property, are required to be reviewed for impairment annually, or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company determined that there were no impairments of long-lived assets at March 31, 2020 and December 31, 2019. Revenue Recognition We recognize revenue for merchandise sales, net of expected returns and sales tax, at the time of in-store purchase or delivery of the product to our guest. When merchandise is shipped to our guests, we estimate receipt based on historical experience. Revenue is deferred and a liability is established for sales returns based on historical return rates and sales for the return period. We recognize an asset and corresponding adjustment to cost of sales for our right to recover returned merchandise. At each financial reporting date, we assess our estimates of expected returns, refund liabilities and return assets. For merchandise sold in our stores and online, tender is accepted at the point of sale. When we receive payment before the guest has taken possession of the merchandise, the amount received is recorded as deferred revenue until the transaction is complete. Our performance obligations for unfulfilled merchandise orders are typically satisfied within one week. Shipping and handling fees charged to guests relate to fulfillment activities and are included in net sales with the corresponding costs recorded in cost of sales. We provided consulting services from our discontinued operations which were minimal for the three months ended March 31, 2019. Cost of Sales Cost of sales includes the actual cost of merchandise sold and services performed; the cost of transportation of merchandise from vendors to our distribution network, stores, or customers; shipping and handling costs from our stores or distribution network to customers; and the operating cost and depreciation of our sourcing and distribution network and online fulfillment centers. Net Income (Loss) per Share The Company computes basic and diluted income (loss) per share amounts pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic loss per share is computed by dividing net loss available to common shareholders, by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted loss per share is computed by dividing net loss available to common shareholders by the diluted weighted average number of shares of common stock during the period. The diluted weighted average number of common shares outstanding is the basic weighted number of shares adjusted as of the first day of the year for any potentially diluted debt or equity. The dilutive effect of outstanding convertible securities and preferred stock is reflected in diluted earnings per share by application of the if-converted method. The following is a reconciliation of basic and diluted earnings (loss) per common share for the three months ended March 31, 2020 and 2019: For the Three months ended March 31, 2020 2019 Basic earnings per common share Numerator: Net earnings (loss) available to common shareholders $ 27,025 $ (50,241 ) Denominator: Weighted average common shares outstanding 137,846,923 130,453,333 Basic earnings (loss) per common share $ 0.00 $ (0.00 ) Diluted earnings (loss) per common share Numerator: Net income (loss) available to common shareholders $ 27,025 $ (50,241 ) Add convertible debt interest - - Net income (loss) available to common shareholders $ 27,025 $ (50,241 ) Denominator: Weighted average common shares outstanding 137,846,923 130,453,333 Preferred shares 20,000,000 20,000,000 Convertible debt 15,156,000 - Adjusted weighted average common shares outstanding 173,002,923 130,453,333 Diluted earnings (loss) per common share $ 0.00 $ (0.00 ) Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carryforwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income (loss) in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain tax positions as of March 31, 2020 and December 31, 2019. Interest and penalties, if any, related to unrecognized tax benefits would be recognized as interest expense. The Company does not have any accrued interest or penalties associated with unrecognized tax benefits, nor was any significant interest expense recognized during the periods ended March 31, 2020 and 2019. Segment Information In accordance with the provisions of ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information,” the Company is required to report financial and descriptive information about its reportable operating segments. The Company has one operating segment as of March 31, 2020 and December 31, 2019. Effect of Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted The Company has reviewed all recently issued, but not yet adopted, accounting standards, in order to determine their effects, if any, on its results of operations, financial position or cash flows. Based on that review, the Company believes that no other pronouncements will have a significant effect on its financial statements. |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 3 – GOING CONCERN The accompanying unaudited financial statements and the factors within it, 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 and the ability of the Company to continue as a going concern for a reasonable period of time. The Company had a net income of $27,025 and cash used in operating activities of $240,050 for the three months ended March 31, 2020. As of March 31, 2020, the Company had a working capital surplus of $46,657, and a retained earnings of $128,423. The Company’s continuation as a going concern is dependent upon its ability to generate revenues and its ability to continue receiving investment capital and loans from third parties to sustain its current level of operations. The Company is in the process of securing working capital from investors for common stock, convertible notes payable, and/or strategic partnerships. No assurance can be given that the Company will be successful in these efforts. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 4 – COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of May 14, 2020, there were no pending or threatened lawsuits. Franchise Agreement The Company has a franchise agreement effective February 19, 2014 expiring in February 2024, with a right to renew for an additional 5 years to operate stores and websites in the Company’s exclusive territory. The Company is obligated to pay 5% of gross revenue for use of systems and manuals. During the three months ended March 31, 2020 and 2019, the Company paid $4,236 and $4,151 for the franchise agreement. Uniform Supply Agreement The Company has an agreement to be the exclusive provider of school uniforms and logos for a charter school. The Company is obligated to provide a 3% donation to the charter school for each school year. The agreement is for each school year ending through May 31, 2021. During the three months ended March 31, 2020 and 2019, the Company paid $0 and $0 for the uniform supply agreement, respectively. |
Fixed Assets
Fixed Assets | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 5 – FIXED ASSETS Fixed assets and finance lease right of use assets, stated at cost, less accumulated depreciation at March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Equipment $ 368,868 $ 368,868 Autos and trucks 72,898 72,898 Less: accumulated depreciation (241,210 ) (224,393 ) Property and equipment, net $ 200,556 $ 217,373 Depreciation expense for the three months ended March 31, 2020 and 2019 was $16,817 and $11,819, respectively. |
Convertible Note Payable
Convertible Note Payable | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Note Payable | NOTE 6 – CONVERTIBLE NOTE PAYABLE On April 1, 2018, the Company assumed a convertible promissory note in connection with the reverse acquisition. The funding was in tranches whereby the Company assumed the first tranche of $48,697. The Company received the remaining tranches totaling $57,395 during the year ended December 31, 2018. The Company received total funding of $106,092 as of December 31, 2018. The note had fees of $53,046 which were recorded as a discount to the convertible promissory note and are being amortized over the life of the loan using the effective interest method. The Company recorded interest expense of $0 during the three months ended March 31, 2020. The note is convertible into common stock at a price of 35% of the lowest three trading prices during the ten days prior to conversion. As of March 31, 2020, the convertible debt would convert to 15,156,000 common shares. The note balance was $106,092 and $106,092 as of March 31, 2020 and December 31, 2019. Derivative liabilities The conversion features embedded in the convertible notes were evaluated to determine if such conversion feature should be bifurcated from its host instrument and accounted for as a freestanding derivative. In the convertible notes with variable conversion terms, the conversion feature was accounted for as a derivative liability. The derivatives associated with the term convertible notes were recognized as a discount to the debt instrument and the discount is amortized over the expected life of the notes with any excess of the derivative value over the note payable value recognized as additional interest expense at the issuance date. The derivative liability was calculated using the Black-Scholes method over the expected terms of the convertible debt, with a risk-free rate of 0.17% and volatility of 100% as of March 31, 2020. Included in Derivative Income in the accompanying unaudited consolidated statements of operations is expense arising from the change in fair value of the derivatives of $10,917 during the three months ended March 31, 2020. |
Finance Leases
Finance Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Finance Leases | NOTE 7 – FINANCE LEASES On November 17, 2016, the Company obtained a finance lease for equipment. Payments are $2,667 per month for three years and the lease was paid off in 2019. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | NOTE 8 – ACCRUED EXPENSES The Company had total accrued expenses of $193,875 and $201,790 as of March 31, 2020 and December 31, 2019, respectively. See breakdown below of accrued expenses as follows: March 31, 2020 December 31, 2019 Credit cards payable $ 57,419 $ 75,301 Accrued interest 53,046 53,046 Other accrued expenses 83,410 73,443 $ 193,875 $ 201,790 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 9 – RELATED PARTY TRANSACTIONS The majority shareholder, director and officer, is the owner of M & M Real Estate, Inc. (“M & M”). M & M leases the Haltom City, Texas facility to the Company. The monthly lease payment, under a month to month lease, is currently $6,500. The Company incurred lease expense of $19,500 and $19,500, respectively, to M & M for the three months ended March 31, 2020 and 2019, respectively. The Company has accounts payable to M&M of $0 and $0 as of March 31, 2020 and December 31, 2019, respectively. The accounts payable is for unpaid lease obligations and products the Company purchased from M&M during the three months ended March 31, 2020 and 2019, respectively. The Company purchased approximately $0 and $11,425, respectively. M&M marks up their sales to JRP by 10%. The Company has been provided office space by its chief executive officer, Ardell Mees, at no cost. Management has determined that such cost is nominal and did not recognize the rent expense in its financial statements. The Company had expenses of approximately $15,985 related to Ardell Mees and family for the year ended December 31, 2019, respectively. These expenses are considered compensation and are included in discontinued operations. Employment and Consulting Agreements In April 2018, the Company executed a two-year employment agreement with Ardell D. Mees, the Company’s Chief Executive Officer and Chief Financial Officer. As compensation for services, Mr. Mees is to receive an annual base salary of $60,000. On December 31, 2019, Mr. Mees waived all balances due to him. In April 2018, the Company executed a two-year employment agreement with Marc Johnson, the Company’s Chief Operating Officer. As compensation for services, Mr. Johnson is to receive an annual base salary of $60,000. On December 31, 2019, Mr. Johnson waived all balances due to him. On May 1, 2018, the Company entered into a consulting agreement for financial services and business development for a term of one year and agreed to issue 2,250,000 common shares earned on a monthly basis to an officer’s family member. On January 9, 2019, the Company issued the shares of common stock. The Company incurred stock compensation expense of $0 for the three months ended March 31, 2020 and $5,625 as of March 31, 2019. In 2020 the Company issued 4,500,000 shares of common stock related to the current and prior agreements. On February 28, 2019, the Company entered into a consulting agreement for financial services and business development for a term of six months and issued 1,500,000 common shares earned on a monthly basis. On February 28, 2019, the Company issued the shares of common stock. The Company incurred stock compensation expense of $0 for the three months ended March 31, 2020 and $5,000 as of March 31, 2019. On January 9, 2020, Motasem Khanfur, the controller of the Company, was appointed as chief financial officer of the Company. As part of his compensation, Mr. Khanfur was awarded 500,000 shares of common stock. On January 9, 2020, Sarah Nelson was appointed as chief operating officer and director of the Company. As part of her compensation, Ms. Nelson was awarded 1,000,000 shares of common stock. On January 9, 2020, Andreana McKelvey resigned as director. She was awarded 250,000 shares of common stock of the Company. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 10 – STOCKHOLDERS’ EQUITY Our Articles of Incorporation authorize the issuance of 800,000,000 shares of common stock and 80,000,000 shares of preferred stock with $0.001 par values per share. There were 138,020,000 and 136,270,000 outstanding shares of common stock at March 31, 2020 and December 31, 2019, respectively. There were 2,000,000 outstanding shares of preferred stock as of March 31, 2020 and December 31, 2019, respectively. Each share of preferred stock has 100 votes per share and is convertible into 10 shares of common stock. The preferred stock pays dividends equal with common stock and has preferential liquidation rights to common stockholders. On May 1, 2018, the Company entered into a consulting agreement for financial services and business development for a term of one year and agreed to issue 2,250,000 common shares earned on a monthly basis to an officer’s family member. On January 9, 2019, the Company issued the shares of common stock. The Company incurred stock compensation expense of $0 for the three months ended March 31, 2020 and $5625 as of March 31, 2019. In 2020 the Company issued 4,500,000 shares of common stock related to the current and prior agreements. On January 28, 2019, the Company entered into a consulting agreement for 6 months and agreed to issue 1,500,000 common shares vesting on a monthly basis. The shares were issued on February 28, 2019. The Company incurred stock compensation expense of $0 for the three months ended March 31, 2020 and $5,000 as of March 31, 2019. On January 9, 2020, Motasem Khanfur, the controller of the Company, was appointed as chief financial officer of the Company. As part of his compensation, Mr. Khanfur was awarded 500,000 shares of common stock. The Company recorded $10,000 as stock-based compensation. On January 9, 2020, Sarah Nelson was appointed as chief operating officer and director of the Company. As part of her compensation, Ms. Nelson was awarded 1,000,000 shares of common stock. The Company recorded $20,000 as stock-based compensation. On January 9, 2020, Andreana McKelvey resigned as director. She was awarded 250,000 shares of common stock of the Company. The Company recorded $5,000 as stock-based compensation. |
Concentration of Customer
Concentration of Customer | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentration of Customer | NOTE 11 – CONCENTRATION OF CUSTOMER Concentration of Revenue For the three months ended March 31, 2020, two customers made up 55% of revenues and for the three months ended March 31, 2019 one customer made up 38% of revenues, respectively. Three customers accounted for 65% of accounts receivable as of March 31, 2020. There were no customers that accounted for more than 10% of accounts receivable as of December 31, 2019. |
Lease Liability
Lease Liability | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease Liability | NOTE 12 – LEASE LIABILITY Finance Leases Finance leases are included in finance lease right-of-use lease assets and finance lease liability current and long-term debt on the consolidated balance sheets. The associated amortization expense and interest expense are included in depreciation and amortization and interest expense, respectively, on the consolidated income statements. Operating Leases The Company leases office space. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Leases with initial terms in excess of 12 months are recorded as operating or financing leases in our consolidated balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease. For leases beginning in 2018 and later, the Company accounts for lease components separately from the non-lease components. Most leases include one or more options to renew. The exercise of the lease renewal options is at the sole discretion of the Company. The depreciable life of the assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company leases approximately 18,000 square feet of space in Haltom City, Texas, pursuant to a month to month lease. This facility serves as our corporate headquarters, manufacturing facility and showroom. The lease is with M & M Real Estate, Inc. (“M & M”), a company owned solely by our majority shareholder and director of the Company. The Company has approximately 6,000 square feet of space in Arlington, Texas which serves as an academic showroom, pursuant to a lease that will expire on June 1, 2020 As of March 31, 2020, the operating lease right-of-use assets and operating lease liabilities were $11,423. Operating lease expense during the three months ended March 31, 2020 was $35,961 and was included as part of operating expenses. Operating lease future minimum payments together with their present values as of March 31, 2020 are summarized as follows: 2020 $ 11,680 Total lease payments 11,680 Less: interest (257 ) Present value of lease liabilities 11,423 Current-portion operating lease liability 11,423 Long-term portion operating lease liability $ - |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 13 – DISCONTINUED OPERATIONS On January 1, 2020, the Company determined that it would discontinue its business operations in North Dakota, specifically, ADM Enterprises LLC (the “Disposed Company”). The Company has made a settlement with Ardell Mees to provide him with the assets of the Disposed Company and in exchange, Mr. Mees will assume all liabilities of the Disposed Company. As part of the transaction, Mr. Mees resigned from all positions with the Company and, in a private transaction, sold a significant portion of his ownership in the Company to Marc Johnson. The Company and Mr. Mees entered into an indemnification agreement whereby Mr. Mees indemnified the Company for any liabilities of the Disposed Company. Reconciliation of the Items Constituting Profit and (Loss) from Discontinued Operations For the Three Months Ended March 31, (unaudited) 2020 2019 Revenue $ - $ 9,970 Direct costs of revenue 1,854 General and administrative 14,131 Loss from operations (6,015 ) Gain on disposal 96,635 Net income (loss) $ 96,635 $ (6,015 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. The Company has determined that there are no other such events that warrant disclosure or recognition in the financial statements, except as stated herein. The outbreak of the coronavirus (COVID-19) resulted in increased travel restrictions, and shutdown of businesses, which may cause slower recovery of the economy. We may experience impact from quarantines, market downturns and changes in customer behavior related to pandemic fears and impact on our workforce if the virus continues to spread. In addition, one or more of our customers, partners, service providers or suppliers may experience financial distress, delayed or defaults on payment, file for bankruptcy protection, sharp diminishing of business, or suffer disruptions in their business due to the outbreak. The extent to which the coronavirus impacts our results will depend on future developments and reactions throughout the world, which are highly uncertain and will include emerging information concerning the severity of the coronavirus and the actions taken by governments and private businesses to attempt to contain the coronavirus. It is likely to result in a potential material adverse impact on our business, results of operations and financial condition. Wider-spread COVID-19 globally could prolong the deterioration in economic conditions and could cause decreases in or delays in advertising spending and reduce and/or negatively impact our short-term ability to grow our revenues. Any decreased collectability of accounts receivable, bankruptcy of small and medium businesses, or early termination of agreements due to deterioration in economic conditions could negatively impact our results of operations. On April 5, 2020, the Company received a Small Business Administration (“SBA”) loan under the government’s assistance related to COVID-19. The SBA loan was for $169,495 with an interest rate of 0.98% and due in eight weeks. The SBA loan is to assist the Company in payroll during the COVID-19 time period. The SBA loan is forgivable if the Company payroll during this time utilizes all of the monies provided. On April 29, 2020, the Company received the government assistance check of $10,000 related to the COVID-19 response by the government to assist companies during the pandemic. In April 2020, Marc Johnson advanced $40,000 to the Company. The advance has no formal terms and bears no interest. On May 8, 2020, Motasem Khanfur resigned as chief financial officer and will continue as the Company’s controller. Marc Johnson was appointed as interim chief financial officer. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) and has a year-end of December 31. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. The unaudited financial statements of the Company for the three month periods ended March 31, 2020 and 2019 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2019 was derived from the audited financial statements included in the Company’s financial statements as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on May 13, 2020. These financial statements should be read in conjunction with that report. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiary, JRP, at March 31, 2020. All significant intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in accordance with U.S. GAAP requires management to make use of certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Significant estimates are related to allowance for doubtful accounts, goodwill, derivative liability, stock-based compensation and deferred tax valuations. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is recorded in accordance with FASB ASC Topic 718, Compensation – Stock Compensation, for stock and stock options awarded in return for services rendered. The expense is measured at the grant-date fair value of the award and recognized as compensation expense on a straight-line basis over the service period, which is the vesting period. The Company estimates forfeitures that it expects will occur and records expense based upon the number of awards expected to vest. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At March 31, 2020 and December 31, 2019, the Company had no cash equivalents. Included in assets attributable to discontinued operations is $0 and $12,758 of cash as of March 31, 2020 and December 31, 2019, respectively. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company establishes an allowance for doubtful accounts to ensure trade and notes receivable are not overstated due to non-collectability. The Company’s allowance is based on a variety of factors, including age of the receivable, significant one-time events, historical experience, and other risk considerations. The Company had an allowance at March 31, 2020 and December 31, 2019 of $0. The Company had bad debt expense of $0 and $641 for the three months ended March 31, 2020 and 2019, respectively. |
Inventory | Inventory Inventory is valued at the lower of cost or net realizable value. Cost is determined using a weighted-average cost method. The Company decreases the value of inventory for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value, based upon an aging analysis of the inventory on hand, specifically known inventory-related risks, and assumptions about future demand and market conditions. The Company has inventory of $193,580 and $138,693 as of March 31, 2020 and December 31, 2019, respectively. Three vendors accounted for approximately 94% of inventory purchases during the three months ended March 31, 2020, respectively. These same vendors made up 0% and 0% of our accounts payable as of March 31, 2020 and December 31, 2019, respectively. |
Derivative Instruments | Derivative Instruments Derivatives are measured at their fair value on the balance sheet. In determining the appropriate fair value, the Company uses the Black-Scholes-Merton option pricing model. Changes in fair value are recorded in the consolidated statements of operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures its financial assets and liabilities in accordance with U.S. GAAP. For certain of our financial instruments, including cash, accounts payable, accrued expenses, and short-term loans the carrying amounts approximate fair value due to their short maturities. We follow accounting guidance for financial and non-financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. The Company adopted the provisions of FASB ASC 820 (the “Fair Value Topic”) which defines fair value, establishes a framework for measuring fair value under U.S. GAAP, and expands disclosures about fair value measurements. The Company had no assets or liabilities other than derivative liabilities measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019. |
Fixed Assets | Fixed Assets Fixed assets are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method over the assets estimated useful life. Upon the sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in consolidated statements of operations. Classification Estimated Useful Lives Equipment 5 to 7 years Leasehold improvements Shorter of useful life or lease term Furniture and fixtures 4 to 7 years Websites 3 years |
Goodwill | Goodwill Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible assets of businesses acquired. Goodwill is not amortized, but instead assessed for impairment. We perform our annual impairment review of goodwill in our fiscal fourth quarter or when a triggering event occurs between annual impairment tests. No impairment was recorded in fiscal 2018, 2019 or 2020 as a result of our qualitative assessments over our single reporting segment. The Company performs a qualitative assessment for each of its reporting units to determine if the two-step process for impairment testing is required. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than it’s carrying amount, the Company would then evaluate the recoverability of goodwill using a two-step impairment test approach at the reporting unit level. In the first step, the fair value for the reporting unit is compared to its book value including goodwill. In the case that the fair value of the reporting unit is less than book value, a second step is performed which compares the implied fair value of the reporting unit’s goodwill to the book value of the goodwill. The fair value for the goodwill is determined based on the difference between the fair values of the reporting unit and the net fair values of the identifiable assets and liabilities of such reporting unit. If the implied fair value of the goodwill is less than the book value, the difference is recognized as impairment. |
Impairment of Long-Lived Assets | Impairment of Long-lived Assets The Company follows paragraph 360-10-05-4 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets, such as intellectual property, are required to be reviewed for impairment annually, or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company determined that there were no impairments of long-lived assets at March 31, 2020 and December 31, 2019. |
Revenue Recognition | Revenue Recognition We recognize revenue for merchandise sales, net of expected returns and sales tax, at the time of in-store purchase or delivery of the product to our guest. When merchandise is shipped to our guests, we estimate receipt based on historical experience. Revenue is deferred and a liability is established for sales returns based on historical return rates and sales for the return period. We recognize an asset and corresponding adjustment to cost of sales for our right to recover returned merchandise. At each financial reporting date, we assess our estimates of expected returns, refund liabilities and return assets. For merchandise sold in our stores and online, tender is accepted at the point of sale. When we receive payment before the guest has taken possession of the merchandise, the amount received is recorded as deferred revenue until the transaction is complete. Our performance obligations for unfulfilled merchandise orders are typically satisfied within one week. Shipping and handling fees charged to guests relate to fulfillment activities and are included in net sales with the corresponding costs recorded in cost of sales. We provided consulting services from our discontinued operations which were minimal for the three months ended March 31, 2019. |
Cost of Sales | Cost of Sales Cost of sales includes the actual cost of merchandise sold and services performed; the cost of transportation of merchandise from vendors to our distribution network, stores, or customers; shipping and handling costs from our stores or distribution network to customers; and the operating cost and depreciation of our sourcing and distribution network and online fulfillment centers. |
Net Income (Loss) Per Share | Net Income (Loss) per Share The Company computes basic and diluted income (loss) per share amounts pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic loss per share is computed by dividing net loss available to common shareholders, by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted loss per share is computed by dividing net loss available to common shareholders by the diluted weighted average number of shares of common stock during the period. The diluted weighted average number of common shares outstanding is the basic weighted number of shares adjusted as of the first day of the year for any potentially diluted debt or equity. The dilutive effect of outstanding convertible securities and preferred stock is reflected in diluted earnings per share by application of the if-converted method. The following is a reconciliation of basic and diluted earnings (loss) per common share for the three months ended March 31, 2020 and 2019: For the Three months ended March 31, 2020 2019 Basic earnings per common share Numerator: Net earnings (loss) available to common shareholders $ 27,025 $ (50,241 ) Denominator: Weighted average common shares outstanding 137,846,923 130,453,333 Basic earnings (loss) per common share $ 0.00 $ (0.00 ) Diluted earnings (loss) per common share Numerator: Net income (loss) available to common shareholders $ 27,025 $ (50,241 ) Add convertible debt interest - - Net income (loss) available to common shareholders $ 27,025 $ (50,241 ) Denominator: Weighted average common shares outstanding 137,846,923 130,453,333 Preferred shares 20,000,000 20,000,000 Convertible debt 15,156,000 - Adjusted weighted average common shares outstanding 173,002,923 130,453,333 Diluted earnings (loss) per common share $ 0.00 $ (0.00 ) |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carryforwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income (loss) in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain tax positions as of March 31, 2020 and December 31, 2019. Interest and penalties, if any, related to unrecognized tax benefits would be recognized as interest expense. The Company does not have any accrued interest or penalties associated with unrecognized tax benefits, nor was any significant interest expense recognized during the periods ended March 31, 2020 and 2019. |
Segment Information | Segment Information In accordance with the provisions of ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information,” the Company is required to report financial and descriptive information about its reportable operating segments. The Company has one operating segment as of March 31, 2020 and December 31, 2019. |
Effect of Recent Accounting Pronouncements | Effect of Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted The Company has reviewed all recently issued, but not yet adopted, accounting standards, in order to determine their effects, if any, on its results of operations, financial position or cash flows. Based on that review, the Company believes that no other pronouncements will have a significant effect on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life of Assets | Classification Estimated Useful Lives Equipment 5 to 7 years Leasehold improvements Shorter of useful life or lease term Furniture and fixtures 4 to 7 years Websites 3 years |
Schedule of Basic and Diluted Earnings Per Common Share | The following is a reconciliation of basic and diluted earnings (loss) per common share for the three months ended March 31, 2020 and 2019: For the Three months ended March 31, 2020 2019 Basic earnings per common share Numerator: Net earnings (loss) available to common shareholders $ 27,025 $ (50,241 ) Denominator: Weighted average common shares outstanding 137,846,923 130,453,333 Basic earnings (loss) per common share $ 0.00 $ (0.00 ) Diluted earnings (loss) per common share Numerator: Net income (loss) available to common shareholders $ 27,025 $ (50,241 ) Add convertible debt interest - - Net income (loss) available to common shareholders $ 27,025 $ (50,241 ) Denominator: Weighted average common shares outstanding 137,846,923 130,453,333 Preferred shares 20,000,000 20,000,000 Convertible debt 15,156,000 - Adjusted weighted average common shares outstanding 173,002,923 130,453,333 Diluted earnings (loss) per common share $ 0.00 $ (0.00 ) |
Fixed Assets (Tables)
Fixed Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets and finance lease right of use assets, stated at cost, less accumulated depreciation at March 31, 2020 and December 31, 2019 consisted of the following: March 31, 2020 December 31, 2019 Equipment $ 368,868 $ 368,868 Autos and trucks 72,898 72,898 Less: accumulated depreciation (241,210 ) (224,393 ) Property and equipment, net $ 200,556 $ 217,373 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | The Company had total accrued expenses of $193,875 and $201,790 as of March 31, 2020 and December 31, 2019, respectively. See breakdown below of accrued expenses as follows: March 31, 2020 December 31, 2019 Credit cards payable $ 57,419 $ 75,301 Accrued interest 53,046 53,046 Other accrued expenses 83,410 73,443 $ 193,875 $ 201,790 |
Lease Liability (Tables)
Lease Liability (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Future Minimum Payments of Operating Lease | Operating lease future minimum payments together with their present values as of March 31, 2020 are summarized as follows: 2020 $ 11,680 Total lease payments 11,680 Less: interest (257 ) Present value of lease liabilities 11,423 Current-portion operating lease liability 11,423 Long-term portion operating lease liability $ - |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Reconciliation of Items Constituting Profit and Loss from Discontinued Operations | Reconciliation of the Items Constituting Profit and (Loss) from Discontinued Operations For the Three Months Ended March 31, (unaudited) 2019 Revenue $ 9,970 Direct costs of revenue 1,854 General and administrative 14,131 Loss from operations (6,015 ) Net loss $ (6,015 ) |
Organization and Description _2
Organization and Description of Business (Details Narrative) - $ / shares | Apr. 19, 2018 | Jul. 01, 2008 | Mar. 31, 2020 | Dec. 31, 2019 | May 31, 2013 |
Common stock, shares authorized | 800,000,000 | 800,000,000 | 800,000,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized | 80,000,000 | 80,000,000 | 80,000,000 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock voting rights description | Each share of preferred stock has 100 votes per share and is convertible into 10 shares of common stock. | ||||
Common Stock [Member] | |||||
Shares issued for assets acquired | 10,000,000 | ||||
Just Right Products, Inc. [Member] | |||||
Business acquisition, percentage | 100.00% | ||||
Acquisition percentage of voting shares | 61.00% | ||||
Just Right Products, Inc. [Member] | Series A Preferred Stock [Member] | |||||
Issuance of restricted shares | 2,000,000 | ||||
Preferred stock voting rights description | Each share of the Series A preferred stock is convertible into ten shares of common stock and each share has 100 votes on a fully diluted basis. | ||||
ADM Enterprises, Inc [Member] | |||||
Entity incorporation, date of incorporation | Jan. 4, 2001 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended | ||
Mar. 31, 2020USD ($)Integer | Mar. 31, 2019USD ($)Integer | Dec. 31, 2019USD ($) | |
Cash equivalents | |||
Assets attributable to discontinued operations | 0 | 12,758 | |
Allowance for doubtful accounts receivable | 0 | 0 | |
Bad debt expenses | $ 641 | ||
Inventory | 193,580 | 138,693 | |
Assets or liabilities other than derivative liabilities measured at fair value | |||
Impairments of long-lived assets | |||
Uncertain tax positions | |||
Accrued interest or penalties | |||
Number of reporting segments | Integer | 1 | 1 | |
Revenues [Member] | Three Vendor [Member] | |||
Concentration risk, percentage | 94.00% | ||
Accounts Payable [Member] | Three Vendor [Member] | |||
Concentration risk, percentage | 0.00% | 0.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Assets (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets estimated useful life | 5 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets estimated useful life | 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of asset, description | Shorter of useful life or lease term |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets estimated useful life | 4 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets estimated useful life | 7 years |
Websites [Member] | |
Property, Plant and Equipment [Line Items] | |
Fixed assets estimated useful life | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Net income (loss) | $ 27,025 | $ (50,241) |
Numerator: Add convertible debt interest | ||
Numerator: Net income (loss) available to common shareholders | $ 27,025 | $ (50,241) |
Denominator: Weighted average common shares outstanding, Basic | 137,846,923 | 130,453,333 |
Denominator: Basic earnings (loss) per common share | $ 0 | $ 0 |
Denominator: Preferred shares | 20,000,000 | 20,000,000 |
Denominator: Convertible debt | 15,156,000 | |
Denominator: Adjusted weighted average common shares outstanding | 173,002,923 | 130,453,333 |
Denominator: Diluted earnings (loss) per common share | $ 0 | $ 0 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income (loss) | $ 27,025 | $ (50,241) | |
Cash provided by operating activities | (240,050) | $ 2,121 | |
Working capital surplus | 46,657 | ||
Retained earnings | $ 128,423 | $ 101,398 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Franchise Agreement [Member] | ||
Lease expiration date | Feb. 29, 2024 | |
Lease renewal term | 5 years | |
Lease description | The Company is obligated to pay 5% of gross revenue for use of systems and manuals. | |
Amount paid under agreement | $ 4,236 | $ 4,151 |
Uniform Supply Agreement [Member] | ||
Lease description | The Company is obligated to provide a 3% donation to the charter school for each school year. The agreement is for each school year ending through May 31, 2021. | |
Amount paid under agreement | $ 0 | $ 0 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 16,817 | $ 11,819 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (241,210) | $ (224,393) |
Property and equipment, net | 200,556 | 217,373 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 368,868 | 368,868 |
Autos and Trucks [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 72,898 | $ 72,898 |
Convertible Note Payable (Detai
Convertible Note Payable (Details Narrative) | Apr. 02, 2018USD ($) | Mar. 31, 2020USD ($)Integershares | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Funds received | $ 106,092 | ||||
Debt instrument, fee amount | $ 53,046 | ||||
Interest expense debt | $ 0 | ||||
Common stock lowest percentage | 35.00% | ||||
Threshold trading days | Integer | 10 | ||||
Debt converted into number of shares | shares | 15,156,000 | ||||
Note balance | $ 106,092 | $ 106,092 | |||
Change in fair value of derivative liability | $ (10,917) | $ 12,452 | |||
Risk Free Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Embedded derivative liability, measurement input | 0.17 | ||||
Volatility [Member] | |||||
Debt Instrument [Line Items] | |||||
Embedded derivative liability, measurement input | 100 | ||||
First Tranche [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from convertible promissory note payable | $ 48,697 | ||||
Remaining Tranche [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from convertible promissory note payable | $ 57,395 |
Finance Leases - (Details Narra
Finance Leases - (Details Narrative) | Nov. 17, 2016USD ($) |
Leases [Abstract] | |
Finance lease for equipment, payments | $ 2,667 |
Finance lease payment term | 3 years |
Accrued Expenses (Details Narra
Accrued Expenses (Details Narrative) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 193,875 | $ 201,790 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Credit cards payable | $ 57,419 | $ 75,301 |
Accrued interest | 53,046 | 53,046 |
Other accrued expenses | 83,410 | 73,443 |
Accrued expenses | $ 193,875 | $ 201,790 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Jan. 09, 2020 | Feb. 28, 2019 | Jan. 28, 2019 | May 01, 2018 | Apr. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||||||||
Lease expense | $ 35,961 | |||||||
Accounts payable | 32,420 | $ 19,257 | ||||||
Stock-based compensation | 35,000 | $ 10,625 | ||||||
Motasem Khanfur [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Stock-based compensation | $ 10,000 | |||||||
Number of shares issued | 500,000 | |||||||
Sarah Nelson [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Stock-based compensation | $ 20,000 | |||||||
Number of shares issued | 1,000,000 | |||||||
Andreana McKelvey [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Stock-based compensation | $ 5,000 | |||||||
Number of shares issued | 250,000 | |||||||
Consulting Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Stock-based compensation | 0 | 5,000 | ||||||
Consulting Agreement [Member] | Motasem Khanfur [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued | 500,000 | |||||||
Consulting Agreement [Member] | Sarah Nelson [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued | 1,000,000 | |||||||
Consulting Agreement [Member] | Andreana McKelvey [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued | 250,000 | |||||||
Consulting Agreement [Member] | 1 Year Term [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Term of agreement | 1 year | |||||||
Number of shares issued for services, shares | 2,250,000 | |||||||
Stock-based compensation | $ 0 | 5,625 | ||||||
Consulting Agreement [Member] | 2020 Related to Current [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued | 4,500,000 | |||||||
Consulting Agreement [Member] | 6 Months [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Term of agreement | 6 months | 6 months | ||||||
Number of shares issued for services, shares | 1,500,000 | 1,500,000 | ||||||
Stock-based compensation | $ 0 | 5,000 | ||||||
Ardell D. Mees and Family [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Rent expense | 15,985 | |||||||
Ardell D. Mees [Member] | Employment Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Term of agreement | 2 years | |||||||
Annual base salary | $ 60,000 | |||||||
Marc Johnson [Member] | Employment Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Term of agreement | 2 years | |||||||
Annual base salary | $ 60,000 | |||||||
M&M Real Estate, Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Lease expense | 19,500 | 19,500 | ||||||
Accounts payable | 0 | $ 0 | ||||||
Purchases from related party | $ 0 | $ 11,425 | ||||||
Markup Percentage of sales | 10.00% | |||||||
Haltom City [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Monthly lease payment | $ 6,500 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Jan. 09, 2020 | Feb. 28, 2019 | Jan. 28, 2019 | May 01, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | May 31, 2013 |
Class of Stock [Line Items] | ||||||||
Common stock, shares authorized | 800,000,000 | 800,000,000 | 800,000,000 | |||||
Preferred stock, shares authorized | 80,000,000 | 80,000,000 | 80,000,000 | |||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common stock, shares outstanding | 138,020,000 | 136,270,000 | ||||||
Preferred stock, shares outstanding | 2,000,000 | 2,000,000 | ||||||
Preferred stock shares voting rights description | Each share of preferred stock has 100 votes per share and is convertible into 10 shares of common stock. | |||||||
Number of preferred stock shares converted | 10 | |||||||
Stock-based compensation | $ 35,000 | $ 10,625 | ||||||
Motasem Khanfur [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock-based compensation | $ 10,000 | |||||||
Number of shares issued | 500,000 | |||||||
Sarah Nelson [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock-based compensation | $ 20,000 | |||||||
Number of shares issued | 1,000,000 | |||||||
Andreana McKelvey [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock-based compensation | $ 5,000 | |||||||
Number of shares issued | 250,000 | |||||||
Consulting Agreement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock-based compensation | 0 | 5,000 | ||||||
Consulting Agreement [Member] | Motasem Khanfur [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued | 500,000 | |||||||
Consulting Agreement [Member] | Sarah Nelson [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued | 1,000,000 | |||||||
Consulting Agreement [Member] | Andreana McKelvey [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued | 250,000 | |||||||
Consulting Agreement [Member] | 1 Year Term [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Term of agreement | 1 year | |||||||
Number of shares issued for services, shares | 2,250,000 | |||||||
Stock-based compensation | $ 0 | 5,625 | ||||||
Consulting Agreement [Member] | 2020 Related to Current [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued | 4,500,000 | |||||||
Consulting Agreement [Member] | 6 Months [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Term of agreement | 6 months | 6 months | ||||||
Number of shares issued for services, shares | 1,500,000 | 1,500,000 | ||||||
Stock-based compensation | $ 0 | $ 5,000 |
Concentration of Customer (Deta
Concentration of Customer (Details Narrative) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenues [Member] | Two Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 55.00% | ||
Revenues [Member] | One Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 38.00% | ||
Accounts Receivable [Member] | Three Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 65.00% | ||
Accounts Receivable [Member] | No Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% |
Lease Liability (Details Narrat
Lease Liability (Details Narrative) | 3 Months Ended | |
Mar. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, right-of-use asset | $ 11,423 | $ 28,328 |
Operating lease liabilities | 11,423 | |
Operating lease expense | $ 35,961 | |
Haltom City [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Office area | ft² | 18,000 |
Lease Liability - Schedule of F
Lease Liability - Schedule of Future Minimum Payments of Operating Lease (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Present value of lease liabilities | $ 11,423 | |
Current-portion operating lease liability | 11,423 | $ 28,328 |
Operating Lease Liability [Member] | ||
2020 | 11,680 | |
Total lease payments | 11,680 | |
Less: interest | (257) | |
Present value of lease liabilities | 11,423 | |
Current-portion operating lease liability | 11,423 | |
Long-term portion operating lease liability |
Discontinued Operations - Summa
Discontinued Operations - Summary of Reconciliation of Items Constituting Profit and Loss from Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Revenue | $ 9,970 | |
Direct costs of revenue | 1,854 | |
General and administrative | 14,131 | |
Loss from operations | (6,015) | |
Gain on disposal | 96,635 | |
Net income (loss) | $ 96,635 | $ (6,015) |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) | Apr. 29, 2020 | Apr. 05, 2020 | Apr. 30, 2020 |
Marc Johnson [Member] | |||
Advanced from related party | $ 40,000 | ||
Government's Assistance Related to COVID-19 [Member] | |||
Proceeds from loan | $ 10,000 | ||
Small Business Administration ("SBA") [Member] | Government's Assistance Related to COVID-19 [Member] | |||
Proceeds from loan | $ 169,495 | ||
Interest rate | 0.98% | ||
Debt instrument term, description | Due in eight weeks |