Teardroppers 10-Q 21 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2018shares
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, 2018
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	41,530,000
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018
Entity Small Business	true
Entity Emerging Growth	true

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current Assets
Cash	$ 116,254	$ 40,027
Prepaid Expenses	2,780	0
Total Current Assets	119,034	40,027
Property and Equipment:
Cost	258,000	254,000
Less: Accumulated depreciation	(32,425)	(24,858)
Property and Equipment, net	225,575	229,142
Total Assets	344,609	269,169
Current Liabilities
Accounts payable	150,299	139,987
Accounts payable - related parties	259,225	234,885
Customer deposits	14,500	14,500
Deferred Revenue	12,000	0
Current portion of long term debt	25,875	21,134
Loan payable	525,000	450,000
Accrued interest - unrelated parties	145,632	139,250
Line of credit from related party	60,450	49,750
Accrued interest - related parties	13,866	13,339
Total current liabilities	1,206,847	1,062,905
Long-term note payable (net of current portion)	137,105	143,866
Total Liabilities	1,343,952	1,206,771
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 200,000,000 shares, issued and outstanding 41,530,000 shares and 41,550,000 shares, respectively	41,530	41,550
Additional paid in capital	292,948	283,728
Accumulated deficit	(1,333,821)	(1,262,880)
Total Stockholders' Equity (Deficit)	(999,343)	(937,602)
Total Liabilities and Stockholders' Equity (Deficit)	$ 344,609	$ 269,169

Condensed Balance Sheets (Unau3

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
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	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	41,530,000	41,550,000
Common stock, shares outstanding	41,530,000	41,550,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenues	$ 4,000	$ 0
Costs of revenues	0	0
Gross Margin	4,000	0
Operating Expenses:
Consulting to related party	26,500	27,500
Consulting to unrelated party	5,000	0
General and administrative	23,450	11,656
Professional fees	3,262	2,613
Operating Expenses	58,212	41,769
Operating Income (loss)	(54,212)	(41,769)
Other Income (Expense)
Interest expense - related parties	(467)	(2,049)
Interest Expense - unrelated parties	(16,262)	(11,250)
Total Other Income (Expense)	(16,729)	(13,299)
Net Income Before Taxes	(70,941)	(55,068)
Income Tax Provision	0	0
Net (loss)	$ (70,941)	$ (55,068)
Net (loss) per share- basic and fully diluted	$ 0	$ 0
Weighted average number of common shares outstanding	41,596,667	37,830,000

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (70,941)	$ (55,068)
Adjustments to reconcile net loss to net cash (used for) operating activities:
Depreciation	12,767	1,050
Changes in Operating Assets and Liabilities
Increase in prepaid expenses	(2,780)	0
Increase in accounts payable	10,312	3,612
Increase in accounts payable - related parties	24,340	27,500
Increase in accrued interest	6,382	11,250
Increase in accrued interest - related parties	467	2,049
Increase in deferred revenue	12,000	0
Net cash used for operating activities	(7,453)	(9,607)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from line of credit, unrelated party	75,000	0
Principal payments on long term debt	(2,020)	0
Proceeds from line of credit to related party	54,750	54,200
Repayments on line of credit related party	(44,050)	(50,500)
Net cash provided by financing activities	83,680	3,700
Net Increase (Decrease) in Cash	76,227	(5,907)
Cash at The Beginning of The Period	40,027	48,636
Cash at The End of The Period	116,254	42,729
Non-cash investing and financing activities:
Assets acquired for debt	28,000	24,000
Debt converted to stock	(28,000)	0
Asset sold for cancellation of stock	(18,800)	0
Cash paid during the year for:
Interest	9,880	0
Franchise and income tax	$ 0	$ 0

1. Organization and Description

1. Organization and Description of Business	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	NOTE 1 – 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, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 – 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 three months ended March 31, 2018 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2018. 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, 2017 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. Revenue recognition Beginning January 1, 2018, the Company will apply the provisions of ASC 606 Revenue from Contracts with Customers, and related Accounting Standards Updates. The Company will apply the relevant provisions to the current period and will restate prior transactions as required. The Company does not believe application of the new provisions to present or past transactions will have a significant impact on amounts reported in the financial statements. 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. For the three months ended March 31, 2018 and 2017, the Company recognized no income from the rental of the trailers. In March 2018, the Company entered into a four-year agreement to lease equipment to an unrelated third party. As of March 31, 2018, $4,000 of lease income has been recognized. 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 and applicable to the Company. 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, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 3 – 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, 2018
Debt Disclosure [Abstract]
Line of Credit from Related Party	NOTE 4 – 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. As of March 31, 2018, and December 31, 2017, the balance of the line of credit was $60,450 and $49,750, respectively. The Company recorded accrued interest of $9,134 and $8,667 on the line of credit at March 31, 2018 and December 31, 2017, 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, 2018, and December 31, 2017 the balance of the line of credit was $0. The Company recorded accrued interest of $4,732 at March 31, 2018 and December 31, 2017.

5. Property and Equipment

5. Property and Equipment	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
5. Property and Equipment	NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment consists of the following at March 31, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Property and equipment, net $ 258,000 $ 254,000 Less: accumulated depreciation (32,425 ) (24,858 ) Property and equipment, net $ 225,575 $ 229,142 Depreciation expense for the three months ended March 31, 2018 and the year ended December 31, 2018 was $12,767 and $22,650 respectively. On February 22, 2018, the Company sold a 1971 Corvette LS-5 to a related party for the cancellation of 160,000 shares of stock.

6. Loan Payable

6. Loan Payable	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Loan Payable	NOTE 6 – LOAN PAYABLE On December 12, 2014, the Company entered into a loan agreement with Gemini Southern, LLC whereby the monies paid to the Company by Gemini Southern, LLC pursuant to the consulting agreement dated September 20, 2013. The balance will be paid back with interest commencing on January 1, 2015 at a rate of 10% per annum with a maturity date of December 12, 2018. As of March 31, 2018, and December 31, 2017, the loan amount was $525,000 and $450,000, respectively. The Company recorded accrued interest on this loan of $145,632 and $134,300 as of March 31, 2018 and December 31, 2018, respectively. On October 1, 2017, the company acquired from Gemini Southern, LLC a 2006 Ultra-Comp 53” NASCAR type vehicle transport hauler (the “Hauler”) to be used for promotional / advertising services. The purchase price of the Hauler was $165,000. The Company paid for the Hauler with a promissory note (the “Hauler Note”). The Hauler Note bears interest at 12% per annum and is payable as follows: (i) interest only from October 1, 2017 through February 28, 2018; (ii) $ $3,670 per month from March 1, 2018 through February 1, 2022; and $45,000.35 on February 28, 2022. The trailer is collateral for the promissory note. Principal payments for the next five years will be as follows: 2018 $ 21,134 2019 28,299 2020 31,888 2021 35,932 2022 47,747 Total $ 165,000

7. Other Related Party Transact

7. Other Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Other Related Party Transactions	NOTE 7 – OTHER RELATED PARTY TRANSACTIONS Office space We currently occupy approximately 800 square feet of office space at 180 Newport Center Drive Suite 230 Newport Beach, California. We share this space with related party DEVCAP Partners, LLC. 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. On January 1 st 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, 2018 and 2017, the Company recorded consulting fee expense of $2,500. The amount due but unpaid was $32,500 and $30,000, at March 31, 2018 and December 31, 2017, respectively, and was included on the balance sheet as accounts payable - related parties. Ray Gerrity resigned his position effective March 31, 2018. Related party purchase of asset On March 1, 2018, the Company purchased a 2013 Ford F-150 truck from a related party for use in the business operations at a cost of $28,000. The vehicle was acquired from the father of the majority shareholder. The debt was immediately converted into 140,000 shares of common stock valued at $.20 per share.

8. Stockholders' Equity (Defici

8. Stockholders' Equity (Deficit)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Stockholders' Equity (Deficit)	NOTE 8 – 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 200,000,000 shares of common stock and 20,000,000 shares of preferred stock, both $0.001 par value. On February 22, 2018, the Company transferred a 1971 Corvette LS-5 to a related party for the cancellation of 160,000 shares of stock. The Company had previously acquired the vehicle on February 21, 2017 but transferred it back the company for the same number of shares originally issued. On March 1, 2018, the Company converted $28,000 of related party accounts payable into 140,000 shares of stock at $.20 per share.

9. Subsequent Events

9. Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	NOTE 9 – 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 Acc15

2. Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
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 three months ended March 31, 2018 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2018. 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, 2017 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.
Revenue recognition	Revenue recognition Beginning January 1, 2018, the Company will apply the provisions of ASC 606 Revenue from Contracts with Customers, and related Accounting Standards Updates. The Company will apply the relevant provisions to the current period and will restate prior transactions as required. The Company does not believe application of the new provisions to present or past transactions will have a significant impact on amounts reported in the financial statements. 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. For the three months ended March 31, 2018 and 2017, the Company recognized no income from the rental of the trailers. In March 2018, the Company entered into a four-year agreement to lease equipment to an unrelated third party. As of March 31, 2018, $4,000 of lease income has been recognized.
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 and applicable to the Company. 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.

5. Property and Equipment (Tabl

5. Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	March 31, 2018 December 31, 2017 Property and equipment, net $ 258,000 $ 254,000 Less: accumulated depreciation (32,425 ) (24,858 ) Property and equipment, net $ 225,575 $ 229,142

6. Loan Payable (Tables)

6. Loan Payable (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Minimum principal payments	2018 $ 21,134 2019 28,299 2020 31,888 2021 35,932 2022 47,747 Total $ 165,000

2. Summary of Significant Acc18

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accounting Policies [Abstract]
Income from rental of trailers	$ 4,000	$ 0

4. Line of Credit from Relate19

4. Line of Credit from Related Party (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Credit line balance	$ 60,450	$ 49,750
Accrued interest	$ 145,632	139,250
DEVCAP Partners, LLC [Member]
Line of credit issuance date	Feb. 25, 2014
Line of credit maximum amount	$ 450,000
Maturity date	Jun. 1, 2018
Interest rate	10.00%
Credit line balance		49,750
Accrued interest	$ 9,134	8,667
General Pacific Partners, LLC [Member]
Line of credit issuance date	Aug. 13, 2015
Line of credit maximum amount	$ 450,000
Interest rate	10.00%
Credit line balance	$ 0	0
Accrued interest	$ 4,732	$ 4,732

5. Property and Equipment (Deta

5. Property and Equipment (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property and equipment, gross	$ 258,000	$ 254,000
Less: accumulated depreciation	(32,425)	(24,858)
Property and equipment, net	$ 225,575	$ 229,142

5. Property and Equipment (De21

5. Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Depreciation expense	$ 12,767	$ 1,050
Sale of Vehicle [Member]
Stock cancelled for sale of vehicle	160,000

6. Loan Payable (Details)

6. Loan Payable (Details)	Mar. 31, 2018USD ($)
Debt Disclosure [Abstract]
Principal payments due this fiscal year 2018	$ 21,134
due 2,019	28,299
due 2,020	31,888
due 2,021	35,932
due 2,022	47,747
Total	$ 165,000

7. Other Related Party Transa23

7. Other Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Consulting fees to related party	$ 26,500	$ 27,500
Accounts payable - related parties	259,225		$ 234,885
DEVCAP Partners, LLC [Member]
Consulting fees to related party	22,500	22,500
Accounts payable - related parties	209,225	187,385
Ray Gerrity [Member]
Consulting fees to related party	2,500	$ 2,500
Accounts payable - related parties	$ 32,500		$ 30,000
2013 Ford F-150 [Member]
Stock issued for purchase of vehicle, shares	140,000
Stock issued for purchase of vehicle, value	$ 28,000

8. Stockholders' Equity (Defi24

8. Stockholders' Equity (Deficit) (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	41,530,000	41,550,000
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Sale of Vehicle [Member]
Stock cancelled for sale of vehicle	160,000
Stock Issued [Member]
Stock issued for conversion of related party payable, shares issued	140,000
Stock issued for conversion of related party payable, amount converted	$ 28,000