Teardroppers 10-Q 12 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2016shares
Document And Entity Information
Entity Registrant Name	Teardroppers, Inc.
Entity Central Index Key	1,615,780
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	38,000,000
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 80,606	$ 46,899
Total Current Assets	80,606	46,899
Fixed Assets:
Cost	10,859	41,785
Less: Accumulated depreciation	(1,806)	(3,047)
Fixed assets, net	9,053	38,738
Total Assets	89,659	85,637
Current Liabilities
Accounts payable	74,763	52,763
Accounts payable - related parties	128,359	67,500
Customer deposits	14,500	14,500
Loan payable	450,000	450,000
Line of credit from related parties	123,860	75,835
Accrued interest	66,831	44,300
Accrued interest - related parties	4,052	2,003
Total current liabilities	862,365	706,901
Total Liabilities	862,365	706,901
Stockholders' Equity (Deficit):
Preferred stock, par value $0.001, authorized 20,000,000 shares, issued shares 0	0	0
Common stock, par value $0.001, authorized 100,000,000 shares issued 37,750,000 and 38,000,000 shares, respectively	37,750	38,000
Additional paid in capital	36,528	69,385
Accumulated deficit	(846,984)	(728,649)
Total Stockholders' Equity (Deficit)	(772,706)	(621,264)
Total Liabilities and Stockholders' Equity (Deficit)	$ 89,659	$ 85,637

Condensed Balance Sheets (Unau3

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ .001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ .001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	37,750,000	38,000,000
Common stock, shares outstanding	37,750,000	38,000,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenues	$ 6,010	$ 0	$ 6,010	$ 0
Total Revenue	6,010	0	6,010	0
Costs of sales	0	0	0	0
Gross Margin	6,010	0	6,010	0
Operating Expenses:
Consulting	0	2,500	0	13,000
Consulting - related parties	28,000	0	55,500	44,889
General and administrative	10,903	1,950	23,537	18,874
Professional fees	17,734	14,501	20,728	35,263
Operating Expenses	56,637	18,951	99,765	112,026
Operating Income (loss)	(50,627)	(18,951)	(93,755)	(112,026)
Other Income (Expense)
Interest expense - related parties	(1,241)	(140)	(2,049)	(162)
Interest Expense - unrelated parties	(10,942)	(11,079)	(22,531)	(21,474)
Total Other Income (Expense)	(12,183)	(11,219)	(24,580)	(21,636)
Net Income Before Taxes	(62,810)	(30,170)	(118,335)	(133,662)
Income Tax Provision	0	0	0	0
Net Income (loss)	$ (62,810)	$ (30,170)	$ (118,335)	$ (133,662)
Net income (loss) per share - (basic and fully diluted)	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares outstanding	37,793,956	37,750,000	37,896,409	37,756,630

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity (Deficit) (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($)	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings / Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2015	0	38,000,000
Beginning balance, value at Dec. 31, 2015	$ 0	$ 38,000	$ 69,385	$ (728,649)	$ (621,264)
Asset transferred for the cancellation of shares, shares	0	(250,000)
Asset transferred for the cancellation of shares, value	$ 0	$ (250)	(32,857)		(33,107)
Net loss for the period				(118,335)	(118,335)
Ending balance, shares at Jun. 30, 2016	0	37,750,000
Ending balance, value at Jun. 30, 2016	$ 0	$ 37,750	$ 36,528	$ (846,984)	$ (772,706)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (118,335)	$ (133,662)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation	2,437	2,000
Changes in Operating Assets and Liabilities
Increase (decrease) accounts payable	22,000	0
Increase (decrease) in accounts payable - related parties	55,000	0
Increase in accrued interest	22,531	21,474
Increase in accrued interest - related parties	2,049	162
Net cash used for operating activities	(14,318)	(110,026)
Net cash from investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares repurchased and cancelled	0	(1,000)
Proceeds from line of credit to related party	140,225	84,000
Repayments on line of credit to related party	(92,200)	0
Net cash provided by financing activities	48,025	83,000
Net Increase (Decrease) in Cash	33,707	(27,026)
Cash at the Beginning of the Period	46,899	27,125
Cash at the End of the Period	80,606	99
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest	0	0
Franchise and income tax	0	0
Non-cash investing and financing activities
Assets acquired with accounts payable	5,859	0
Asset transferred for cancellation of shares	$ (33,107)	$ 0

1. Organization and Description

1. Organization and Description of Business	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	On June 3, 2013, Teardroppers, Inc. (the “Company”), was incorporated under the laws of the state of Nevada. We intend to enter the business of mobile billboard advertising by offering to provide billboard advertising space on custom designed "Teardrop Trailers". Teardrop Trailers, are usually designed for short-period accommodations for vacationers and travelers. Teardrop Trailers are designed to be towed behind small economy sized vehicles and pickup trucks.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Basis of presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Interim Financial Statements The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to form 10Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2016. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2015 filed with the SEC. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Such estimates include management’s assessments of the carrying value of certain assets, useful lives of assets, and related depreciation and amortization methods applied. 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 June 30, 2016 and December 31, 2015, the Company had no cash equivalents. Fair value of financial instruments The Company adopted the provisions of FASB Accounting Standards Codification (“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 Fair Value Topic defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. It also establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels. The carrying amount of the Company’s financial assets and liabilities, such as cash, accounts payable, accrued expenses, and deferred revenue approximate their fair value because of the short maturity of those instruments. The Company’s note payable approximates the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at June 30, 2016 and December 31, 2015. The Company had no assets or liabilities measured at fair value on a recurring basis for as of June 30, 2016 and December 31, 2015, respectively, using the market and income approaches. Property and equipment Property and equipment 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 of three (3) years for equipment, five (5) years for automobile, and seven (7) years for furniture and fixtures. Upon 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 statements of operations. Revenue recognition The Company follows paragraph 605-10-S99-1 of the FASB ASC for revenue recognition. The Company will recognize revenue when it is realized or realizable and earned. The Company considers mobile advertising revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer with an invoice delivered to the customer, (iii) the sales price is fixed or determinable and (iv) collectability is reasonably assured. In addition, the Company records allowances for accounts receivable that are estimated to not be collected. Net income (loss) per share The Company computes basic and diluted earnings per share amounts pursuant to ASC 260-10-45. Basic earnings per share is computed by dividing net income (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 earnings per share is computed by dividing net income (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. There were no potentially dilutive shares outstanding as of June 30, 2016 and December 31, 2015, respectively. Reclassification Prior year amounts have been reclassified to conform to current year presentation. Recently issued accounting pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

3. Going Concern

3. Going Concern	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	The Company's consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company has a minimum cash balance available for payment of ongoing operating expenses. Its continued existence is dependent upon its ability to continue to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.

4. Line of Credit from Related

4. Line of Credit from Related Party	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Line of Credit from Related Party	On February 25, 2014, the Company entered into a line of credit with DEVCAP Partners, LLC, a California limited liability company, for an amount up to $450,000 with a maturity date of June 1, 2017, bearing interest of 10% per annum. DEVCAP Partners, LLC is a related party to the Company as it is the majority shareholder of the Company. As of June 30, 2016 and December 31, 2015, the balance of the line of credit was $98,860 and $50,835, respectively. The Company recorded accrued interest of $1,849 and $2,203 on the line of credit at June 30, 2016 and December 31, 2015, respectively. On August 13, 2015 the company entered into a line of credit with General Pacific Partners, LLC, a California limited liability company, for an amount up to $450,000. The line of credit is a demand loan bearing interest of 10% per annum. General Pacific Partners, LLC is a related party to the Company as it is owned by a majority shareholder of the Company. As of June 30, 2016 and December 31, 2015 the balance of the line of credit was $25,000. The Company recorded accrued interest of $2,203 and $959 at June 30, 2016 and December 31, 2015, respectively.

5. Other Related Party Transact

5. Other Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Other Related Party Transactions	Office space We currently occupy approximately 1,500 square feet of office and garage space at 3500 75th Street West, Rosamond, California. We share this space with Matthew D. Jackson, our Chief Marketing Officer. Presently, we do not incur any expenses for the use of this facility. Line of credit from related party The Company has two line of credit agreements with related parties. DEVCAP Partners, LLC is also the majority shareholder in the Company. General Pacific Partners is owned by the party that owns DEVCAP Partners, LLC. See Note 4 for further disclosure. Consulting expense to related party (DEVCAP Partners, LLC) On January 1, 2014, the Company executed a three year consulting agreement with DEVCAP Partners, LLC, (“DEVCAP”), whereby the Company agreed to pay $7,500 a month for consulting services to be provided to the Company such as marketing, architectural development, accounting, finance, corporate structure and tax planning. For the three and six months ended June 30, 2016, the Company recorded consulting fee expense to DEVCAP of $22,500 and $45,000, respectively. For the three and six months ended June 30, 2015, the Company recorded consulting fee expense to DEVCAP of $0 and $34,889, respectively The amount due but unpaid is $97,500 and $52,500 at June 30, 2016 and December 31, 2015, respectively, and is included on the balance sheet as accounts payable- related parties. Ray Gerrity had consulting expenses of $5,000 for the six months ended ended June 30, 2016 compared to $10,000 for the same period ended December 31, 2015. Robert Wilson had consulting expenses of $5,000 for the six months ended June 30, 2016 compared to $5,000 for the same period ended December 31, 2015. Purchase of asset through accounts payable On June 13, 2016, the Company purchased equipment for $5,859. The president of the seller is a family member of the majority shareholder of Company and therefore a related party. Sale of asset to related party On April 16, 2016, the Company returned a 1966 Ford Mustang previously purchased from DEVCAP Partners, LLC in exchange for cancellation of 250,000 shares of stock. The value of the cancelled shares was deemed to be the net book value of the vehicle on the date of transfer, $33,107. Purchase of Asset from Related Party On June 13, 2016 the company purchased a cargo trailer to be used in its primary business from a related party of our majority shareholder for $5,859 paid in cash.

6. Stockholders' Equity (Defici

6. Stockholders' Equity (Deficit)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Stockholders' Equity (Deficit)	At the time of incorporation, the Company was authorized to issue 10,000 shares of common stock and 1,000 shares of preferred stock with a par value of $0.001. The Company amended its articles of incorporation to increase its authorized shares to 100,000,000 shares of common stock and 20,000,000 shares of preferred stock, both $0.001 par value. On October 5, 2015, the Company purchased a 1966 Ford Mustang in exchange for 250,000 shares of common stock. On April 16, 2016, the Company returned the vehicle and cancelled the shares. The value of the cancelled shares was deemed to be the book value of the vehicle at the date of cancellation, $33,107.

7. Subsequent Events

7. Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that no material subsequent events exist.

2. Summary of Significant Acc14

2. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Interim Financial Statements	Interim Financial Statements The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to form 10Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2016. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2015 filed with the SEC.
Use of estimates	Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Such estimates include management’s assessments of the carrying value of certain assets, useful lives of assets, and related depreciation and amortization methods applied.
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 June 30, 2016 and December 31, 2015, the Company had no cash equivalents.
Fair value of financial instruments	Fair value of financial instruments The Company adopted the provisions of FASB Accounting Standards Codification (“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 Fair Value Topic defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. It also establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels. The carrying amount of the Company’s financial assets and liabilities, such as cash, accounts payable, accrued expenses, and deferred revenue approximate their fair value because of the short maturity of those instruments. The Company’s note payable approximates the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at June 30, 2016 and December 31, 2015. The Company had no assets or liabilities measured at fair value on a recurring basis for as of June 30, 2016 and December 31, 2015, respectively, using the market and income approaches.
Property and equipment	Property and equipment Property and equipment 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 of three (3) years for equipment, five (5) years for automobile, and seven (7) years for furniture and fixtures. Upon 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 statements of operations.
Revenue recognition	Revenue recognition The Company follows paragraph 605-10-S99-1 of the FASB ASC for revenue recognition. The Company will recognize revenue when it is realized or realizable and earned. The Company considers mobile advertising revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer with an invoice delivered to the customer, (iii) the sales price is fixed or determinable and (iv) collectability is reasonably assured. In addition, the Company records allowances for accounts receivable that are estimated to not be collected.
Net income (loss) per share	Net income (loss) per share The Company computes basic and diluted earnings per share amounts pursuant to ASC 260-10-45. Basic earnings per share is computed by dividing net income (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 earnings per share is computed by dividing net income (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. There were no potentially dilutive shares outstanding as of June 30, 2016 and December 31, 2015, respectively.
Reclassification	Reclassification Prior year amounts have been reclassified to conform to current year presentation.
Recently issued accounting pronouncements	Recently issued accounting pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

2. Summary of Significant Acc15

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Cash equivalents	$ 0	$ 0
Fair value of assets/liabilities	$ 0	$ 0
Potentially dilutive shares outstanding	0	0
Equipment [Member]
Property and equipment estimated useful lives	P3Y
Automobiles [Member]
Property and equipment estimated useful lives	P5Y
Furniture and Fixtures [Member]
Property and equipment estimated useful lives	P7Y

4. Line of Credit from Relate16

4. Line of Credit from Related Party (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Credit line balance	$ 123,860	$ 75,835
Accrued interest	66,831	44,300
DEVCAP Partners, LLC [Member]
Line of credit maximum borrowing capacity	$ 450,000
Maturity date	Jun. 1, 2017
Interest rate	10.00%
Credit line balance	$ 98,860	50,835
Accrued interest	1,849	2,203
General Pacific Partners, LLC [Member]
Line of credit maximum borrowing capacity	$ 450,000
Interest rate	10.00%
Credit line balance	$ 25,000	25,000
Accrued interest	$ 2,203	$ 959

5. Other Related Party Transa17

5. Other Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Consulting fees to related party	$ 28,000	$ 0	$ 55,500	$ 44,889
Equipment purchase			5,859	0
Asset transferred for the cancellation of shares, value			(33,107)	0
DEVCAP Partners, LLC [Member]
Consulting fees to related party	22,500	$ 0	45,000	34,889	$ 23,699
Due to related party	$ 97,500		$ 97,500		$ 52,500
Related Party [Member]
Asset transferred for the cancellation of shares, shares			(250,000)
Asset transferred for the cancellation of shares, value			$ (33,107)
Ray Gerrity [Member]
Consulting fees to related party			5,000	10,000
Robert Wilson [Member]
Consulting fees to related party			$ 5,000	$ 5,000

8. Stockholders' Equity (Detail

8. Stockholders' Equity (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Common stock, shares authorized	100,000,000		100,000,000
Common stock, par value	$ 0.001		$ .001
Common stock, shares issued	37,750,000		38,000,000
Preferred stock, shares authorized	20,000,000		20,000,000
Preferred stock, par value	$ 0.001		$ .001
Asset transferred for the cancellation of shares, value	$ (33,107)	$ 0
Related Party [Member]
Asset transferred for the cancellation of shares, shares	(250,000)
Asset transferred for the cancellation of shares, value	$ (33,107)