Teardroppers 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 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	Sep. 30, 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	41,550,000
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash	$ 47,649	$ 48,636
Total Current Assets	47,649	48,636
Fixed Assets:
Cost	89,000	5,000
Less: Accumulated depreciation	(12,158)	(2,208)
Fixed assets, net	76,842	2,792
Total Assets	124,491	51,428
Current Liabilities
Accounts payable	136,675	104,062
Accounts payable - related parties	255,000	177,500
Customer deposits	14,500	14,500
Loan payable	450,000	450,000
Lines of credit from related party	2,385	125,560
Accrued interest	123,050	89,300
Accrued interest - related parties	13,226	8,431
Total current liabilities	994,836	969,353
Total Liabilities	994,836	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 41,550,000 and 37,750,000 shares, respectively	41,550	37,750
Additional paid in capital	283,728	36,528
Accumulated deficit	(1,195,623)	(992,203)
Total Stockholders' Equity (Deficit)	(870,345)	(917,925)
Total Liabilities and Stockholders' Equity (Deficit)	$ 124,491	$ 51,428

Condensed Balance Sheets (Unau3

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 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	41,550,000	37,750,000
Common stock, shares outstanding	41,550,000	37,750,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016		Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 0	$ 0		$ 0	$ 6,010
Total revenue	0	0		0	6,010
Costs of sales	0	0		0	0
Gross Margin	0	0		0	6,010
Operating Expenses:
Consulting to related parties	25,000	27,500		77,500	83,000
General and administrative	26,873	11,095		66,096	34,632
Professional fees	3,675	27,039		21,279	47,767
Operating Expenses	55,548	65,634		164,875	165,399
Operating Income (loss)	(55,548)	(65,634)		(164,875)	(159,389)
Other Income (Expense):
Interest expense related parties	(269)	(2,147)		(4,795)	(4,196)
Interest expense - unrelated parties	(11,250)	(11,342)		(33,750)	(33,873)
Total Other Income (Expense)	(11,519)	(13,489)		(38,545)	(38,069)
Net Income Before Taxes	(67,067)	(79,123)		(203,420)	(197,458)
Income Tax Provision	0	0		0	0
Net income (loss)	$ (67,067)	$ (79,123)		$ (203,420)	$ (197,458)
Net income (loss) per share - (basic and fully diluted)	$ 0	$ 0	[1]	$ (0.01)	$ (0.01)
Weighted average number of common shares outstanding	41,368,478	37,750,000		39,132,637	37,847,070
[1]	denotes a loss of less than $(.01) per share.

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (203,420)	$ (197,458)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation	9,950	2,980
Changes in Operating Assets and Liabilities
Increase in accounts payable - unrelated parties	32,613	44,025
Increase in accounts payable - related parties	77,500	76,641
Increase in accrued interest - related parties	4,795	4,196
Increase in accrued interest - unrelated parties	33,750	33,873
Net cash used for operating activities	(44,812)	(35,743)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from line of credit to related party	196,825	218,434
Repayments on line of credit to related party	(153,000)	(174,600)
Net cash provided by financing activities	43,825	43,834
Net Increase (Decrease) in Cash	(987)	8,091
Cash at the Beginning of the Period	48,636	46,899
Cash at the End of the Period	47,649	54,990
Non-cash investing and financing activities
Conversion of related party debt to stock	167,000	0
Assets acquired in exchange for stock	84,000	0
Assets acquired with accounts payable	0	5,859
Asset transferred for cancellation of shares	$ 0	$ (33,107)

1. Organization and Description

1. Organization and Description of Business	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 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 10-Q 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 nine months ended September 30, 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 September 30, 2017 and December 31, 2016. The Company had no assets or liabilities measured at fair value on a recurring basis for as of September 30, 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 varies from one to thirty days. Customers pay in advance and revenue is recognized based on the number of days of each contract that have expired. The Company recognized $6,010 of income from the rental of the trailers during the nine months ended September 30, 2016. 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 September 30, 2017 and December 31, 2016, respectively. 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	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 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, 2018, 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. On July 5, 2017, $142,000 of the balance due was converted into 2,840,000 shares of stock valued at $.05 per share. As of September 30, 2017, and December 31, 2016, the balance of the line of credit was $2,385 and $100,560, respectively. The Company recorded accrued interest of $8,494 and $4,972 on the line of credit at June 30, 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. On July 5, 2017, the entire balance of $25,000 was converted into 500,000 shares of stock valued at $.05 per share. As of September 30, 2017, and December 31, 2016 the balance of the line of credit was $0 and $25,000, respectively. The Company recorded accrued interest of $4,732 and $3,459 at September 30, 2017 and December 31, 2016, respectively.

5. Other Related Party Transact

5. Other Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Other Related Party Transactions	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 September 30, 2017 and 2016, the Company recorded consulting fee expense to DEVCAP of $22,500. For the nine months ended September 30, 2017 and 2016, the Company recorded consulting fee expense to DEVCAP of $67,500. The amount due but unpaid is $210,000 and $142,500 at September 30, 2017 and December 31, 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 the three months ended September 30, 2017 and 2016, the Company recorded consulting fee expense of $2,500. For the nine months ended September 30, 2017 and 2016, the Company recorded consulting fee expense of $7,500. The amount due but unpaid was $27,500 and $20,000 at June 30, 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 former 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. He resigned effective April 1, 2017. For the three and nine months ended September 30, 2016, the Company recorded consulting fee expense of $0 and $2,500, respectively. The amount due but unpaid was $17,500 and $15,000 at September 30, 2017 and December 31, 2016, respectively, and was included on the balance sheet as accounts payable - related parties. Related party purchase of asset On February 4, 2017, 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 shares of stock valued at $.15 per share, for a total of $24,000. On April 15, 2017, the Company purchased a 1995 Featherlite trailer for use in the business operations. The trailer was purchased from a shareholder in exchange for 300,000 shares valued at $.20 per share, for a total of $60,000.

6. Stockholders' Equity (Defici

6. Stockholders' Equity (Deficit)	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 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)	9 Months Ended
	Sep. 30, 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 10-Q 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 nine months ended September 30, 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 September 30, 2017 and December 31, 2016. The Company had no assets or liabilities measured at fair value on a recurring basis for as of September 30, 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 varies from one to thirty days. Customers pay in advance and revenue is recognized based on the number of days of each contract that have expired. The Company recognized $6,010 of income from the rental of the trailers during the nine months ended September 30, 2016.
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 September 30, 2017 and December 31, 2016, respectively.
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	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016
Fair value of assets/liabilities		$ 0	$ 0
Rental income	$ 6,010
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 ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Credit line balance	$ 2,385	$ 125,560
Accrued interest	$ 123,050	89,300
DEVCAP Partners, LLC [Member]
Debt issuance date	Feb. 25, 2014
Line of credit maximum borrowing capacity	$ 450,000
Maturity date	Jun. 1, 2018
Interest rate	10.00%
Debt converted, shares issued	2,840,000
Debt converted, amount converted	$ 142,000
Credit line balance	2,385	100,560
Accrued interest	$ 8,494	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%
Debt converted, shares issued	500,000
Debt converted, amount converted	$ 25,000
Credit line balance	0	25,000
Accrued interest	$ 4,732	$ 3,459

5. Other Related Party Transa16

5. Other Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Consulting fees to related party	$ 25,000	$ 27,500	$ 77,500	$ 83,000
Stock issued for asset purchase, value			84,000	0
DEVCAP Partners, LLC [Member]
Consulting fees to related party	22,500	22,500	67,500	67,500
Due to related party	210,000		210,000		$ 142,500
Gerrity [Member]
Consulting fees to related party	2,500	2,500	7,500	7,500
Due to related party	27,500		27,500		20,000
Wilson [Member]
Consulting fees to related party		$ 0		$ 2,500
Due to related party	17,500		17,500		$ 15,000
Accrued consulting fees	$ 2,500		$ 2,500
Majority Shareholder [Member]
Stock issued for asset purchase, shares issued			160,000
Stock issued for asset purchase, value			$ 24,000
Shareholder [Member]
Stock issued for asset purchase, shares issued			300,000
Stock issued for asset purchase, value			$ 60,000

6. Stockholders' Equity (Defi17

6. Stockholders' Equity (Deficit) (Details Narrative) - $ / shares	Sep. 30, 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