Teardroppers 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2017shares
Document And Entity Information
Entity Registrant Name	Teardroppers, Inc.
Entity Central Index Key	1,615,780
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
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	37,910,000
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current Assets
Cash	$ 42,729	$ 48,636
Total Current Assets	42,729	48,636
Fixed Assets:
Cost	29,000	5,000
Less: Accumulated depreciation	(3,258)	(2,208)
Fixed assets, net	25,742	2,792
Total Assets	68,471	51,428
Current Liabilities
Accounts payable	107,675	104,062
Accounts payable - related parties	205,000	177,500
Customer deposits	14,500	14,500
Loan payable	450,000	450,000
Accrued interest	100,550	89,300
Line of credit from related party	129,260	125,560
Accrued interest - related parties	10,480	8,431
Total current liabilities	1,017,465	969,353
Total Liabilities	1,017,465	969,353
Stockholders' Equity (Deficit):
Preferred stock, par value $0.001, authorized 20,000,000 shares, issued shares 0, respectively	0	0
Common stock, par value $0.001,authorized 100,000,000 shares issued 37,910,000 and 37,750,000 shares, respectively	37,910	37,750
Additional paid in capital	60,368	36,528
Accumulated deficit	(1,047,272)	(992,203)
Total Stockholders' Equity (Deficit)	(948,994)	(917,925)
Total Liabilities and Stockholders' Equity (Deficit)	$ 68,471	$ 51,428

Condensed Balance Sheets (Unau3

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	37,910,000	37,750,000
Common stock, shares outstanding	37,910,000	37,750,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenues - related party	$ 0	$ 0
Costs of sales	0	0
Gross Margin	0	0
Operating Expenses:
Consulting to related party	27,500	27,500
General and administrative	11,657	12,634
Professional fees	2,613	2,994
Operating Expenses	41,770	43,128
Operating Income (loss)	(41,770)	(43,128)
Other Income (Expense)
Interest expense related parties	(2,049)	(808)
Interest expense - unrelated parties	(11,250)	(11,589)
Total Other Income (Expense)	(13,299)	(12,397)
Net Income Before Taxes	(55,069)	(55,525)
Income Tax Provision	0	0
Net income (loss)	$ (55,069)	$ (55,525)
Net income (loss) per share - (basic and fully diluted)	$ 0	$ 0
Weighted average number of common shares outstanding	37,830,000	38,000,000

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (55,069)	$ (55,525)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation	1,050	2,089
Changes in Operating Assets and Liabilities
Increase (decrease) accounts payable	3,613	10,500
Increase (decrease) in accounts payable - related parties	27,500	27,500
Increase in accrued interest	11,250	11,589
Increase in accrued interest - related parties	2,049	808
Net cash used for operating activities	(9,607)	(3,039)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash from investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from line of credit to related party	54,200	50,000
Repayments on line of credit to related party	(50,500)	(46,500)
Net cash provided by financing activities	3,700	3,500
Net Increase (Decrease) in Cash	(5,907)	461
Cash at the Beginning of the Period	48,636	46,899
Cash at the End of the Period	42,729	47,360
Non-cash investing and financing activities
Assets acquired in exchange for stock	24,000	0
Cash paid for interest	0	0
Cash paid for Franchise and income tax	$ 0	$ 0

1. Organization and Description

1. Organization and Description of Business	3 Months Ended
	Mar. 31, 2017
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	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2017. 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, 2016 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. 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-term 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 March 31, 2017 and December 31, 2016. The Company had no assets or liabilities measured at fair value on a recurring basis for as of March 31, 2017 and December 31, 2016, 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 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, (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. The primary source of revenue is from the rental of advertising space on custom designed Teardrop Trailers. The length of the rental agreements will vary from one to thirty days. Customers pay in advance and revenue is recognized based on the length of each contract. For the three months ended March 31, 2017 and 2016, the Company recognized no income from the rental of the trailers. 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 March 31, 2017 and December 31, 2016, respectively. Reclassification Prior year amounts have been reclassified to conform to current year presentation. Subsequent events The Company follows the guidance in ASC 855-10-50 for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. 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	3 Months Ended
	Mar. 31, 2017
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	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017, and December 31, 2016, the balance of the line of credit was $104,260 and $100,560, respectively. The Company recorded accrued interest of $6,405 and $4,972 on the line of credit at March 31, 2017 and December 31, 2016, 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 March 31, 2017, and December 31, 2016 the balance of the line of credit was $25,000. The Company recorded accrued interest of $4,075 and $3,459 at March 31, 2017 and December 31, 2016, respectively.

5. Other Related Party Transact

5. Other Related Party Transactions	3 Months Ended
	Mar. 31, 2017
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. The sole owner of 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 months ended March 31, 2017 and March 31, 2016, the Company recorded consulting fee expense to DEVCAP of $27,500. The amount due but unpaid is $165,000 and $142,500 at March 31, 2017 and 2016, respectively, and is included in accounts payable- related parties on the balance sheet. Consulting expense to related party (Ray Gerrity) On January 1, 2014, the Company entered into a verbal consulting agreement with its Chief Executive Officer, Ray Gerrity, whereby the Company agreed to pay $2,500 per quarter for consulting services related to his duties as Chief Executive Officer. For each of the three months ended March 31, 2017 and 2016, the Company recorded consulting fee expense of $2,500. The amount due but unpaid was $22,500 and $20,000 at March 31, 2017 and December 31, 2016, respectively, and was included on the balance sheet as accounts payable - related parties. Consulting expense to related party (Robert Wilson) On January 1, 2014, the Company entered into a verbal consulting agreement with its Chief Financial Officer, Robert Wilson, whereby the Company agreed to pay $2,500 per quarter for consulting services related to his duties as Chief Financial Officer. For each of the three months ended March 31, 2017 and 2016, the Company recorded consulting fee expense of $2,500. The amount due but unpaid was $17,500 and $15,000 at March 31, 2017 and December 31, 2016, respectively, and was included on the balance sheet as accounts payable - related parties. Related party purchase of asset The Company purchased a 1971 Chevrolet Corvette for use in the business operations. The vehicle was acquired from the majority shareholder in exchange for 160,000 of stock valued at $.15 per share, for a total of $24,000.

6. Stockholders' Equity (Defici

6. Stockholders' Equity (Deficit)	3 Months Ended
	Mar. 31, 2017
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.

7. Subsequent Events

7. Subsequent Events	3 Months Ended
	Mar. 31, 2017
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 Acc13

2. Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2017. 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, 2016 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.
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-term 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 March 31, 2017 and December 31, 2016. The Company had no assets or liabilities measured at fair value on a recurring basis for as of March 31, 2017 and December 31, 2016, 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 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, (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. The primary source of revenue is from the rental of advertising space on custom designed Teardrop Trailers. The length of the rental agreements will vary from one to thirty days. Customers pay in advance and revenue is recognized based on the length of each contract. For the three months ended March 31, 2017 and 2016, the Company recognized no income from the rental of the trailers.
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 March 31, 2017 and December 31, 2016, respectively.
Reclassification	Reclassification Prior year amounts have been reclassified to conform to current year presentation.
Subsequent events	Subsequent events The Company follows the guidance in ASC 855-10-50 for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued.
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 Acc14

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
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 Relate15

4. Line of Credit from Related Party (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Credit line balance	$ 129,260	$ 125,560
Accrued interest	$ 100,550	89,300
DEVCAP Partners, LLC [Member]
Debt issuance date	Feb. 25, 2014
Line of credit maximum borrowing capacity	$ 450,000
Maturity date	Jun. 1, 2017
Interest rate	10.00%
Credit line balance	$ 104,260	100,560
Accrued interest	$ 6,405	4,972
General Pacific Partners, LLC [Member]
Debt issuance date	Aug. 13, 2015
Line of credit maximum borrowing capacity	$ 450,000
Interest rate	10.00%
Credit line balance	$ 25,000	25,000
Accrued interest	$ 4,075	$ 3,459

5. Other Related Party Transa16

5. Other Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Consulting fees to related party	$ 27,500	$ 27,500
Stock issued for asset purchase, value	24,000	0
DEVCAP Partners, LLC [Member]
Consulting fees to related party	27,500	27,500
Due to related party	$ 165,000		$ 142,500
Majority Shareholder [Member]
Stock issued for asset purchase, shares issued	160,000
Stock issued for asset purchase, value	$ 24,000
Gerrity [Member]
Consulting fees to related party	2,500	2,500
Due to related party	22,500		20,000
Wilson [Member]
Consulting fees to related party	2,500	$ 2,500
Due to related party	$ 17,500		$ 15,000

6. Stockholders' Equity (Defi17

6. Stockholders' Equity (Deficit) (Details Narrative) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value	$ 0.001	$ .001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, par value	$ 0.001	$ .001