Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 14, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'FRAGMENTED INDUSTRY EXCHANGE INC | ' |
Entity Central Index Key | '0001600347 | ' |
Document Type | 'Other | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 4,132,000 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONDENSED_BALANCE_SHEETS_Unaud
CONDENSED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ' | ' |
Cash or cash equivalents | $192 | $556 |
TOTAL CURRENT ASSETS | 192 | 556 |
TOTAL ASSETS | 192 | 556 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable and accrued expenses | 29,695 | 8,000 |
Accrued interest | 3,937 | 1,831 |
Income tax payable | 250 | 250 |
Revolving credit line - current portion | 49,600 | 15,100 |
TOTAL CURRENT LIABILITIES | 83,482 | 25,181 |
Preferred stock, $.0001 par value, 15,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.0001 par value, 75,000,000 shares authorized, 4,132,000 and 3,967,000 shares issued and outstanding, as of June 30, 2014 and December 31 2013, respectively | 413 | 397 |
Additional paid-in capital | 66,187 | 57,953 |
Deficit accumulated during the development stage | -149,890 | -82,975 |
TOTAL STOCKHOLDERS' EQUITY | -83,290 | -24,625 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $192 | $556 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS (Parenthetical) (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, Par Value | $0.00 | $0.00 |
Preferred stock, Share Authorized | 15,000,000 | 15,000,000 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, Outstanding | 0 | 0 |
Common stock, Par Value | $0.00 | $0.00 |
Common stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common stock, Issued | 4,132,000 | 3,967,000 |
Common stock, Outstanding | 4,132,000 | 3,967,000 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | 28 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Revenues: | ' | ' | ' | ' | ' |
Monthly business listing fees | $0 | $0 | $0 | $0 | $525 |
Total Revenues | 0 | 0 | 0 | 0 | 525 |
Cost of revenues | 0 | 0 | 0 | 0 | 103 |
Gross Profit | 0 | 0 | 0 | 0 | 422 |
Stock based compensation | 0 | 0 | 8,250 | 0 | 8,250 |
General and administrative | 1,152 | 157 | 26,559 | 5,452 | 77,876 |
General and administrative costs from a related party | 15,000 | 0 | 30,000 | 0 | 60,000 |
Total operating expenses | 16,152 | 157 | 64,809 | 5,452 | 146,126 |
Loss from operations | -16,152 | -157 | -64,809 | -5,452 | -145,704 |
Interest expense | 1,287 | 237 | 2,106 | 474 | 3,937 |
Total other expenses (income) | 1,287 | 237 | 2,106 | 474 | 3,937 |
Loss before taxes | -17,439 | -394 | -66,915 | -5,926 | -149,640 |
Income tax provision | 0 | 0 | 0 | 0 | 250 |
Net loss applicable to common shareholders | ($17,439) | ($394) | ($66,915) | ($5,926) | ($149,890) |
Net loss per share - basic and diluted | $0 | $0 | ($0.02) | $0 | ' |
Weighted number of shares outstanding - Basic and diluted | 4,132,000 | 3,500,000 | 4,081,583 | 3,500,000 | ' |
CONDENSED_STATEMENTS_OF_STOCKH
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) (USD $) | Common Stock | Paid-In Capital | Deficit Accumulated During Development Stage | Total |
Beginning Balance, Amount at Dec. 31, 2012 | $350 | $34,650 | ($28,757) | $6,243 |
Beginning Balances, Shares at Dec. 31, 2012 | 3,500,000 | ' | ' | ' |
Issuance of common stock, Shares | 467,000 | ' | ' | ' |
Issuance of common stock, Amount | 47 | 23,303 | ' | 23,350 |
Net loss for period | ' | ' | -54,218 | -54,218 |
Ending Balance, Amount at Dec. 31, 2013 | 397 | 57,953 | -82,975 | -24,625 |
Ending Balance, Shares at Dec. 31, 2013 | 3,967,000 | ' | ' | ' |
Issuance of common stock, Shares | 165,000 | ' | ' | ' |
Issuance of common stock, Amount | 16 | 8,234 | ' | 8,251 |
Net loss for period | ' | ' | -66,915 | -66,915 |
Ending Balance, Amount at Jun. 30, 2014 | $413 | $66,187 | ($149,890) | ($83,290) |
Ending Balance, Shares at Jun. 30, 2014 | 4,132,000 | ' | ' | ' |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | 28 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net (loss) | ($66,915) | ($5,926) | ($149,890) |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ' | ' | ' |
Stock based compensation | 8,250 | 0 | 8,250 |
Change in operating assets and liabilities: | ' | ' | ' |
Other assets | 0 | -5,000 | 0 |
Accrued interest | 2,106 | 237 | 3,937 |
Accounts payable and accrued expenses | 21,695 | 0 | 29,695 |
Income tax payable | 0 | 250 | 250 |
Net cash used in operating activities | -34,864 | -10,439 | -107,758 |
CASH FLOW FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from issuance of common stock | 0 | 0 | 58,350 |
Proceeds from revolving credit facility | 34,500 | 0 | 49,600 |
Net cash provided by financing activities | 34,500 | 0 | 107,950 |
NET INCREASE (DECREASE) IN CASH | -364 | -10,439 | 192 |
CASH AND CASH EQUIVALENTS at beginning of period | 556 | 10,295 | 0 |
CASH AND CASH EQUIVALENTS at end of period | 192 | 0 | 192 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Interest | 0 | 0 | 0 |
Income Taxes | $0 | $0 | $0 |
1_The_Company_History_and_Natu
1. The Company History and Nature of the Business | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
1. The Company History and Nature of the Business | ' |
Fragmented Industry Exchange Inc. (formerly Ontarget Staffing Inc.) was incorporated in the State of Delaware as a for-profit Company on March 7, 2012 and established a fiscal year end of December 31. We are a development-stage financial acquisition intermediary which will serve buyers and sellers for companies that are in highly fragmented industries. We plan to do this by developing a secure online, member generated, M&A platform that matches buyers and sellers in specific industries (“Industry Exchanges”) and support users with industry-specific M&A advisory and back office support services (collectively, the “Business Services”). The Company plans to generate revenue primarily through; (i) membership fees from the Industry Exchanges; and (ii) consulting fees from our Business Services. | |
The financial statements have been prepared using accounting principles generally accepted in the United States of America applicable for a going concern, which assumes that the Company will realize its assets and discharge its liabilities in the ordinary course of business. Since inception, the Company has incurred net losses of $149,890 and has a working capital deficit of $83,290 at June 30, 2014. Our ability to continue as a going concern is dependent upon achieving sales growth, management of operating expenses and ability of the Company to obtain the necessary financing to meet its obligations and pay its liabilities arising from normal business operations when they come due, and upon profitable operations. | |
Should we use up all our revolving credit facility we would need to either borrow funds from our majority shareholder or raise additional capital through equity or debt financings. We expect our current majority shareholder will be willing and able to provide such additional capital. However, we cannot be certain that such capital (from our shareholders or third parties) will be available to us or whether such capital will be available on terms that are acceptable to us. Any such financing likely would be dilutive to existing stockholders and could result in significant financial operating covenants that would negatively impact our business. If we are unable to raise sufficient additional capital on acceptable terms, we will have insufficient funds to operate our business or pursue our planned growth. | |
In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. | |
On July 14, 2014, the Company’s SEC Form S1 filing was declared effective. As of the date of this report, no capital has been raised as provided for under the Form S1. |
2_Summary_of_Significant_Accou
2. Summary of Significant Accounting Policies | 6 Months Ended | ||
Jun. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
2. Summary of Significant Accounting Policies | ' | ||
Basis of Presentation and Organization | |||
The accompanying financial statements of the Company were prepared from the accounts of the Company under the accrual basis of accounting. | |||
Cash and Cash Equivalents | |||
For purposes of reporting within the statement of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash and cash equivalents. The Company’s cash and cash equivalents are located in a United States bank. | |||
Revenue Recognition | |||
The Company is in the development stage and has had limited revenue. The Company will derive its revenue from membership fees on the Industry Exchanges, finder fees from M&A transaction services and consulting fees from executive level advisory and back-office support services. The Company utilizes written contracts as the means to establish the terms and condition services are sold to customers. | |||
Membership Fees | |||
The Company recognizes revenue for membership fees ratably over the membership period, beginning when there is persuasive evidence of arrangement, delivery has occurred (access has been granted), the fees are fixed or determinable and collection is reasonably assured. Members pay in advance, primarily by credit card, and, subject to certain conditions identified in the contract conditions, all purchases are final and nonrefundable. Any fees collected in advance for subscriptions are deferred and recognized as revenue using the straight-line method. Membership fee revenue is presented net of credits and credit card chargebacks. | |||
M&A Transaction and Industry Business Services | |||
Because the Company provides its applications as services, it follows the provisions of Securities and Exchange Commission Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition The Company recognizes revenue when all of the following conditions are met: | |||
● | there is persuasive evidence of an arrangement; | ||
● | the service has been provided to the customer; | ||
● | the collection of the fees is reasonably assured; and | ||
● | the amount of fees to be paid by the customer is fixed or determinable. | ||
The Company will execute a separate agreement for each of its M&A Transaction or Industry Business Services. Such Agreements will include, among other things, scope of work, compensation and termination dates. The Company records revenue as services are performed. Invoicing is done at the commencement of work and monthly thereafter. | |||
Loss per Common Share | |||
Basic loss per share is computed by dividing the net loss attributable to the common stockholders by the weighted average number of shares of common stock outstanding during the period. Fully diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no dilutive financial instruments issued or outstanding for the periods ended June 30, 2014 or June 30, 2013. | |||
Income Taxes | |||
The Company accounts for income taxes pursuant to FASB ASC 740. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. | |||
The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. | |||
Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate. | |||
Fair Value of Financial Instruments | |||
The Company estimates the fair value of financial instruments using the available market information and valuation methods. Considerable judgment is required in estimating fair value. Accordingly, the estimates of fair value may not be indicative of the amounts the Company could realize in a current market exchange. As of June 30, 2014 the carrying value of accounts payable-trade and accrued liabilities approximated fair value due to the short-term nature and maturity of these instruments. | |||
Estimates | |||
The financial statements are prepared on the basis of accounting principles generally accepted in the United States. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates made by management. | |||
Recent Accounting Pronouncements | |||
In June 2014, the Financial Accounting Standards Board issued Accounting Standards Codification update No. 2014-10 for Development stage entities (Topic 915). The amendments in this updated removed the definition of a development stage entity from the master glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from US GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The Company has elected to adopt such provisions next reporting period. |
3_Development_Stage_Activities
3. Development Stage Activities and Going Concern | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
3. Development Stage Activities and Going Concern | ' |
The Company is currently in the development stage, and has limited operations. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which contemplate continuation of the Company as a going concern. The Company has not established any sustainable source of revenues to cover its operating costs, and as such, has incurred an operating loss since inception. Further, as of June 30, 2014 the cash resources of the Company were insufficient to meet its current financial obligations and business plan. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern. |
4_Revolving_Credit_Facility
4. Revolving Credit Facility | 6 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
4. Revolving Credit Facility | ' |
On March 29, 2012 the Company entered into a revolving line of credit (“Credit Line”) with Lend America Inc. (“LAI”). LAI is an entity owned BY our sole officer and director. Under the Credit Line, the Company can borrow up to $50,000 for a period extending to September 30, 2014 (the “Maturity Date”). Interest is payable at a rate of twelve percent (12%). Unless otherwise paid by the Company, the entire principal and accrued interest shall be payable on the Maturity Date. There is no pre-payment penalty. As provided for under the Credit Line, LAI assigned all rights and obligations to Global Bridge Partners, Inc. (“GBP”), the Company’s controlling shareholder, on July 1, 2013. The Company had $49,600 and $15,100 outstanding on the Credit Line as of the periods ended June 30, 2014 and December 31, 2013, respectively. The Company has accrued interest of $3,937 and $1,831, as of June 30, 2014 and December 31, 2013, respectively. | |
On June 30, 2014, the Company entered into an amendment to the Credit Line. The amendment extended the Maturity Date until December 31, 2014 and increased the amount of the Credit Line to $100,000. |
5_Common_Stock
5. Common Stock | 6 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
5. Common Stock | ' |
On March 8, 2012, the Company issued 3,500,000 shares of common stock to the Global Bridge Partners Inc. (“GBP”) at a price of $0.01 per share. At this time the Company had no operations. | |
On August 31, 2013, the Company issued 351,000 shares of common stock to 20 new shareholders at a price of $0.05 per share for a total of $17,550. | |
On September 30, 2013, the Company issued 95,000 shares of common stock to 11 new shareholders at a price of $0.05 per share for a total of $4,750. | |
On October 31, 2013, the Company issued 21,000 shares of common stock to 7 new shareholders at a price of $0.05 per share for a total of $1,050. | |
Since March 8, 2012, the Company commenced development of its business buyer and seller matching program, launched two websites and commenced capital formation activities by filing a Registration Statement on Form S-1 to the SEC to register and sell in a self-directed offering 1,000,000 shares of newly issued common stock at an offering price of $0.12 per share for proceeds of up to $120,000. All these factors were considered in establishing an increased purchase price of $0.05 per share from the initial issuance of shares at $0.01 on March 8, 2012. | |
On February 25, 2014, the Company issued 165,000 shares of common stock to its legal counsel in consideration of services rendered in connection with the preparation of the Company’s registration statement on Form S-1 and counsel’s agreement to defer fees in connection therewith. To value the share issuance the Company used the offering price of $0.05. Such amount has been reflected as stock based compensation on the statement of operations. | |
6_Income_Taxes
6. Income Taxes | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
6. Income Taxes | ' | ||||||||||||
The provision for income taxes for the six months ended June 30, 2014 and 2013, and since inception (March 7, 2012) through June 30, 2014 was as follows (assuming a 15% effective tax rate): | |||||||||||||
Six Months Ended | Six Months Ended | From Inception (March 7, 2012) through | |||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | |||||||||||
Current Tax Provision: | |||||||||||||
Federal-State-Local | $ | - | $ | - | $ | 250 | |||||||
Taxable Income | - | - | - | ||||||||||
Total current tax provision | $ | - | $ | - | $ | 250 | |||||||
Deferred Tax Provision: | |||||||||||||
Federal | $ | - | $ | - | $ | - | |||||||
Loss carry-forwards | (10,037 | ) | (889 | ) | (22,446 | ) | |||||||
Change in valuation allowance | 10,037 | 889 | 22,446 | ||||||||||
Total deferred tax provision | $ | - | $ | - | $ | - | |||||||
The Company had deferred income tax assets as of June 30, 2014 as follows: | |||||||||||||
Loss carry-forwards | $ | (22,446 | ) | ||||||||||
Less - valuation allowance | 22,446 | ||||||||||||
Total net deferred tax assets | $ | - | |||||||||||
The Company provided a valuation allowance equal to the deferred income tax assets for period ended June 30, 2014 because it is not presently known whether future taxable income will be sufficient to utilize the loss carry-forwards. | |||||||||||||
As of June 30, 2014, the Company had approximately $150,000 in tax loss carry-forwards that can be utilized in future periods to reduce taxable income, and expire by the year 2033. | |||||||||||||
The Company did not identify any material uncertain tax positions. The Company did not recognize any interest or penalties for unrecognized tax benefits. | |||||||||||||
The federal income tax returns of the Company are subject to examination by the IRS, generally for three years after they are filed. The tax returns for the years ended December 31, 2013 and 2012 are still subject to examination by the taxing authorities. |
7_Related_Party_Transactions
7. Related Party Transactions | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
7. Related Party Transactions | ' |
The Company’s sole officer and director currently provides rent-free office space to the Company. | |
On March 8, 2012 the Company issued Global Bridge Partners Inc. (“GBP”) 3,500,000 shares for a $35,000 capital commitment at a purchase price of $0.01 per share. At that time, we had no operations. The proceeds were used for working capital and general corporate purposes. Mr. William Schloth is the president and sole owner of GBP. In addition, Mr. Schloth is the husband of our president and sole director Mary Ellen Schloth. | |
On March 29, 2012, the Company entered into a Revolving Line of Credit Facility with an entity controlled by the Company’s sole officer and director. This facility was assigned to GBP on July 1, 2013. GBP is the Company’s majority stockholder. In addition, GBP is controlled by the spouse of the Company’s sole officer and director. See Note 3 | |
Ocean Cross Business Solutions Group LLC | |
On July 1, 2013, the Company has engaged the services (the “Agreement”) of Ocean Cross Business Solutions Group LLC (“OCBSG”), to provide assistance with filing of the SEC Form S-1, general accounting, finance, general management and product development. OCBSG is own by William Schloth, who is also the owner of GBP, our majority shareholder. The Agreement provides for a monthly consulting fee of $5,000. As of June 30, 2014, the Company has paid $60,000 to OCBSG and owes $3,000. The Agreement may be terminated at anytime by either party. | |
The Company has a Revolving Line of Credit with OCB major shareholder as described under Note 3. | |
8_Subsequent_Events
8. Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
8. Subsequent Events | ' |
Subsequent to June 30, 2014 the Company has borrowed $18,000 on the revolving line of credit. |
2_Summary_of_Significant_Accou1
2. Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||
Jun. 30, 2014 | |||
Summary Of Significant Accounting Policies Policies | ' | ||
Basis of Presentation and Organization | ' | ||
The accompanying financial statements of the Company were prepared from the accounts of the Company under the accrual basis of accounting. | |||
Cash and Cash Equivalents | ' | ||
For purposes of reporting within the statement of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash and cash equivalents. The Company’s cash and cash equivalents are located in a United States bank. | |||
Revenue Recognition | ' | ||
The Company is in the development stage and has had limited revenue. The Company will derive its revenue from membership fees on the Industry Exchanges, finder fees from M&A transaction services and consulting fees from executive level advisory and back-office support services. The Company utilizes written contracts as the means to establish the terms and condition services are sold to customers. | |||
Membership Fees | ' | ||
The Company recognizes revenue for membership fees ratably over the membership period, beginning when there is persuasive evidence of arrangement, delivery has occurred (access has been granted), the fees are fixed or determinable and collection is reasonably assured. Members pay in advance, primarily by credit card, and, subject to certain conditions identified in the contract conditions, all purchases are final and nonrefundable. Any fees collected in advance for subscriptions are deferred and recognized as revenue using the straight-line method. Membership fee revenue is presented net of credits and credit card chargebacks. | |||
M&A Transaction and Industry Business Services | ' | ||
Because the Company provides its applications as services, it follows the provisions of Securities and Exchange Commission Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition The Company recognizes revenue when all of the following conditions are met: | |||
● | there is persuasive evidence of an arrangement; | ||
● | the service has been provided to the customer; | ||
● | the collection of the fees is reasonably assured; and | ||
● | the amount of fees to be paid by the customer is fixed or determinable. | ||
The Company will execute a separate agreement for each of its M&A Transaction or Industry Business Services. Such Agreements will include, among other things, scope of work, compensation and termination dates. The Company records revenue as services are performed. Invoicing is done at the commencement of work and monthly thereafter. | |||
Loss per Common Share | ' | ||
Basic loss per share is computed by dividing the net loss attributable to the common stockholders by the weighted average number of shares of common stock outstanding during the period. Fully diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no dilutive financial instruments issued or outstanding for the periods ended June 30, 2014 or June 30, 2013. | |||
Income Taxes | ' | ||
The Company accounts for income taxes pursuant to FASB ASC 740. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. | |||
The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. | |||
Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate. | |||
Fair Value of Financial Instruments | ' | ||
The Company estimates the fair value of financial instruments using the available market information and valuation methods. Considerable judgment is required in estimating fair value. Accordingly, the estimates of fair value may not be indicative of the amounts the Company could realize in a current market exchange. As of June 30, 2014 the carrying value of accounts payable-trade and accrued liabilities approximated fair value due to the short-term nature and maturity of these instruments. | |||
Estimates | ' | ||
The financial statements are prepared on the basis of accounting principles generally accepted in the United States. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates made by management. | |||
Recent Accounting Pronouncements | ' | ||
In June 2014, the Financial Accounting Standards Board issued Accounting Standards Codification update No. 2014-10 for Development stage entities (Topic 915). The amendments in this updated removed the definition of a development stage entity from the master glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from US GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The Company has elected to adopt such provisions next reporting period. |
6_Income_Taxes_Tables
6. Income Taxes (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Income Taxes Tables | ' | ||||||||||||
Schedule of provision for income taxes | ' | ||||||||||||
Six Months Ended | Six Months Ended | From Inception (March 7, 2012) through | |||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | |||||||||||
Current Tax Provision: | |||||||||||||
Federal-State-Local | $ | - | $ | - | $ | 250 | |||||||
Taxable Income | - | - | - | ||||||||||
Total current tax provision | $ | - | $ | - | $ | 250 | |||||||
Deferred Tax Provision: | |||||||||||||
Federal | $ | - | $ | - | $ | - | |||||||
Loss carry-forwards | (10,037 | ) | (889 | ) | (22,446 | ) | |||||||
Change in valuation allowance | 10,037 | 889 | 22,446 | ||||||||||
Total deferred tax provision | $ | - | $ | - | $ | - | |||||||
Schedule of deferred income tax asset | ' | ||||||||||||
The Company had deferred income tax assets as of June 30, 2014 as follows: | |||||||||||||
Loss carry-forwards | $ | (22,446 | ) | ||||||||||
Less - valuation allowance | 22,446 | ||||||||||||
Total net deferred tax assets | $ | - | |||||||||||
6_Income_Taxes_Details
6. Income Taxes (Details) (USD $) | 6 Months Ended | 28 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Income Taxes Details | ' | ' | ' |
Federal-State-Local | $0 | $0 | $250 |
Taxable Income | 0 | 0 | 250 |
Federal Loss carry-forwards | 0 | 0 | 0 |
Change in valuation allowance | -10,037 | -889 | -22,446 |
Total deferred tax provision | $10,037 | $889 | $22,446 |
6_Income_Taxes_Details_1
6. Income Taxes (Details 1) (USD $) | Jun. 30, 2014 |
Income Taxes Details 1 | ' |
Loss carry-forwards | ($22,446) |
Less - valuation allowance | 22,446 |
Total net deferred tax assets | $0 |
6_Income_Taxes_Details_Narrati
6. Income Taxes (Details Narrative) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes Details Narrative | ' |
Tax loss carryforward | $150,000 |
Expiration of carryforward | 'Expire by the year 2033. |