Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 08, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-197889 | |
Entity Registrant Name | TEARDROPPERS, INC. | |
Entity Central Index Key | 0001615780 | |
Entity Tax Identification Number | 20-4168979 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 620 Newport Center Drive | |
Entity Address, Address Line Two | Suite 1100 | |
Entity Address, Address Line Three | PMB 488 | |
Entity Address, City or Town | Newport Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92660 | |
City Area Code | 949 | |
Local Phone Number | 751-2173 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,920,000 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 73,943 | $ 49,473 |
Lease Payments Receivable – related parties | 1,000 | 1,000 |
Lease receivable – related party (current portion) | 56,883 | 46,816 |
Interest receivable - related | 3,654 | 565 |
Prepaid expenses | 4,072 | |
Other receivables | 2,000 | |
Total current assets | 137,480 | 101,926 |
Property and equipment: | ||
Cost | 159,202 | 288,089 |
Less accumulated depreciation | (100,431) | (185,153) |
Property and equipment, net | 58,771 | 102,936 |
Lease receivable – related party (net) | 129,956 | 168,957 |
Total Assets | 326,207 | 373,819 |
Current liabilities | ||
Accounts payable | 357,525 | 319,455 |
Accounts payable - related parties | 397,728 | 336,081 |
Customer deposits | 14,500 | 14,500 |
Contract liability – related party | 11,760 | |
Current portion of notes payable | 6,257 | 4,737 |
Current portion of notes payable – related party | 0 | 35,932 |
Current portion of right to use asset lease payable – related party | 5,370 | 3,656 |
Accrued interest – unrelated parties | 2,160 | 566 |
Line of credit from related party | 1,077,578 | 867,011 |
Accrued interest payable-related parties | 344,476 | 272,338 |
Total current liabilities | 2,205,594 | 1,866,036 |
Long-term liabilities | ||
Note payable | 59,121 | 63,125 |
Note payable – related party | 47,747 | |
Right of use asset Lease Payable – related party | 16,480 | 19,386 |
Total Long-term liabilities | 75,601 | 130,258 |
Total Liabilities | 2,281,195 | 1,996,294 |
Stockholders' Deficit | ||
Preferred stock, par value $0.001, 20,000,000 shares authorized, 0 shares issued shares and outstanding, respectively | 0 | 0 |
Common stock, par value $0.001, 200,000,000 shares authorized issued 45,920,000 shares issued and outstanding | 45,920 | 45,920 |
Additional paid in capital | 828,558 | 828,558 |
Accumulated deficit | (2,829,466) | (2,496,953) |
Total Stockholders' Deficit | (1,954,988) | (1,622,475) |
Total Liabilities and Stockholders' Deficit | $ 326,207 | $ 373,819 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
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 | 45,920,000 | 45,920,000 |
Common stock, shares outstanding | 45,920,000 | 45,920,000 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Revenues | ||||||
Total revenue | $ 1,275 | $ 19,275 | $ 15,825 | $ 51,825 | ||
Operating expenses: | ||||||
Consulting from related parties | 36,000 | 44,300 | 123,000 | 104,300 | ||
Consulting fees – unrelated parties | 10,000 | 5,000 | 42,500 | 35,940 | ||
General and administrative | 31,854 | 38,464 | 118,883 | 158,094 | ||
Professional fees | 5,700 | 1,700 | 29,513 | 51,613 | ||
Total operating expenses | 83,554 | 89,464 | 313,896 | 349,947 | ||
Operating loss | (82,279) | (70,189) | (298,071) | (298,122) | ||
Other income (expense): | ||||||
Interest income – related parties | 6,224 | 6,606 | 19,879 | 17,370 | ||
Gain on sale of asset | 0 | 0 | 25,595 | 0 | ||
Interest expense - related parties | (25,382) | (23,188) | (74,979) | (64,851) | ||
Interest expense - unrelated parties | (1,616) | (575) | (4,937) | (575) | ||
Total other income (expense) | (20,774) | (17,157) | (34,442) | (48,056) | ||
Net loss before taxes | (103,053) | (87,346) | (332,513) | (346,178) | ||
Income Tax Provision | 0 | 0 | 0 | 0 | ||
Net loss | $ (103,053) | $ (87,346) | $ (332,513) | $ (346,178) | ||
Net loss per share | ||||||
(Basic and fully diluted) | $ 0 | [1] | $ 0 | [1] | $ (0.01) | $ (0.01) |
Weighted average number of common shares outstanding – basic and diluted | 45,920,000 | 45,920,000 | 45,920,000 | 45,920,000 | ||
Lease Revenue Unrelated Parties [Member] | ||||||
Revenues | ||||||
Total revenue | $ 1,275 | $ 1,275 | $ 3,825 | $ 3,825 | ||
Lease Revenue Related Parties [Member] | ||||||
Revenues | ||||||
Total revenue | 0 | 12,000 | 12,000 | 36,000 | ||
Consulting Fees Related Party [Member] | ||||||
Revenues | ||||||
Total revenue | $ 0 | $ 6,000 | $ 0 | $ 12,000 | ||
[1] | denotes a loss of less than $(.01) per share. |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 45,920 | $ 828,558 | $ (2,044,055) | $ (1,169,577) |
Balance at beginning, shares at Dec. 31, 2019 | 45,920,000 | |||
Net loss for the period | (170,474) | (170,474) | ||
Ending balance, value at Mar. 31, 2020 | $ 45,920 | 828,558 | (2,214,529) | (1,340,051) |
Balance at ending, shares at Mar. 31, 2020 | 45,920,000 | |||
Net loss for the period | (88,358) | (88,358) | ||
Ending balance, value at Jun. 30, 2020 | $ 45,920 | 828,558 | (2,302,887) | (1,428,409) |
Balance at ending, shares at Jun. 30, 2020 | 45,920,000 | |||
Net loss for the period | (87,346) | (87,346) | ||
Ending balance, value at Sep. 30, 2020 | $ 45,920 | 828,558 | (2,390,233) | (1,515,755) |
Balance at ending, shares at Sep. 30, 2020 | 45,920,000 | |||
Beginning balance, value at Dec. 31, 2020 | $ 45,920 | 828,558 | (2,496,953) | (1,622,475) |
Balance at beginning, shares at Dec. 31, 2020 | 45,920,000 | |||
Net loss for the period | (135,750) | (135,750) | ||
Ending balance, value at Mar. 31, 2021 | $ 45,920 | 828,558 | (2,632,703) | (1,758,225) |
Balance at ending, shares at Mar. 31, 2021 | 45,920,000 | |||
Net loss for the period | (93,710) | (93,710) | ||
Ending balance, value at Jun. 30, 2021 | $ 45,920 | 828,558 | (2,726,413) | (1,851,935) |
Balance at ending, shares at Jun. 30, 2021 | 45,920,000 | |||
Net loss for the period | (103,053) | (103,053) | ||
Ending balance, value at Sep. 30, 2021 | $ 45,920 | $ 828,558 | $ (2,829,466) | $ (1,954,988) |
Balance at ending, shares at Sep. 30, 2021 | 45,920,000 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ (332,513) | $ (346,178) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 30,778 | 45,630 |
Gain on sale of asset | (25,595) | 0 |
Changes in Operating Assets and Liabilities | ||
Increase in lease payments receivable – unrelated party | 0 | (4,240) |
Increase in interest receivable – related parties | (3,089) | 0 |
Decrease in prepaid expenses | 4,072 | 3,254 |
Decrease in lease receivable – related party | 28,934 | 23,654 |
Increase in other receivable | (2,000) | 0 |
Increase in accounts payable – unrelated parties | 38,070 | 55,913 |
Increase in accounts payable – related parties | 49,887 | (13,000) |
Increase in accrued interest – unrelated parties | 1,594 | 0 |
Increase in accrued interest - related parties | 72,138 | 54,528 |
Increase in advance lease payments | 0 | 10,006 |
Net cash used in operating activities | (137,724) | (170,433) |
Cash Flows From Investing Activities: | ||
Purchase of vehicle | (36,113) | (69,000) |
Sale of asset | 75,095 | 0 |
Net cash provided by (used in) investing activities | 38,982 | (69,000) |
Cash Flows From Financing Activities: | ||
Principal payments on lease payable – related parties | (1,192) | (2,545) |
Proceeds from note payable | 0 | 69,000 |
Principal payments on note payable – unrelated parties | (2,484) | (337) |
Principal payments on note payable – related parties | (83,679) | (23,555) |
Proceeds from line of credit to related party | 352,744 | 608,720 |
Repayments on line of credit to related party | (142,177) | (397,152) |
Net cash provided by financing activities | 123,212 | 254,131 |
Net Increase (Decrease) In Cash | 24,470 | 14,698 |
Cash At The Beginning Of The Period | 49,473 | 50,035 |
Cash At The End Of The Period | 73,943 | 64,733 |
Non-cash investing and financing activities: | ||
Assets transferred in direct financing lease | 0 | 249,500 |
Cash paid during the period for: | ||
Interest | 6,182 | 10,898 |
Franchise and income tax | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Sep. 30, 2021 | |
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 are in the business of mobile billboard advertising, providing billboard advertising space on custom designed "Teardrop Trailers" and various sizes of cargo type trailers. Teardrop Trailers, are usually designed for short-period accommodations for vacationers and travelers. Teardrop Trailers are designed to be towed behind new and vintage vehicles and pickup trucks. In addition, we own cargo trailers with flat non rivet panel siding that can be used for hauling and transportation. These trailers range in size from 15 feet to 53 feet. We lease these trailers for transportation of goods and for advertising of their respective business or the businesses of lessee clients. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
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”). 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, 2021 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2021. 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, 2020 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 September 30, 2021 and December 31, 2020, the Company had no 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 contract liability 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, 2021 and December 31, 2020. The Company had no 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 5 7 Revenue recognition On January 1, 2018, the Company adopted the provisions of ASC 606 Revenue from Contracts with Customers, and related Accounting Standards Updates. This new revenue recognition standard has a five step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied. The impact of the Company’s initial application of ASC 606 did not have a material impact on its financial statements and disclosures. One of the primary sources of revenues are from the rental of advertising space on custom designed Teardrop Trailers, Various types and sizes of cargo trailers, lease revenue and consulting fees. Revenue from advertising space and leases is recognized over time as the performance obligations are met and consulting fees is recognized at a point in time when the performance obligation is met. For the three and nine months ended September 30, 2021 and 2020, the Company recognized no In March 2018, the Company entered into a four-year agreement to lease equipment to an unrelated shareholder. In September 2018, the son of the shareholder became the Chief Financial Officer. At that point the shareholder will be considered a related party. For the three months ended September 30, 2021 and 2020, related party lease income was $ 0 12,000 12,000 36,000 In January 2019, the Company entered into a two-year agreement to lease a vehicle to an unrelated third party. For the three and nine months ended September 30, 2021 and 2020, the Company recognized lease income of $ 1,275 3,825 1,000 On February 1, 2020, the Company leased a truck and trailer purchased November 2019 for $ 190,000 4,610 6,031 14,943 16,795 On September 1, 2020, the Company leased a vehicle for $69,000 to a related party. The lease is classified as a direct financing lease. The lease is reflected on the condensed balance sheet as lease receivable – related party. Interest revenue is reflected on the condensed statement of operations. For the three months ended September 30, 2021 and 2020, the Company recognized interest revenue of $ 1,614 575 4,936 575 In January 2015, the Company received $14,500 as a deposit for advertising space to be provided in the future. As of September 30, 2021 and December 31, 2020, the customer has not utilized the space and no revenue has been recognized as the performance obligations have not been satisfied. At the time the service is provided under the terms of the agreement, the Company will recognize the revenue. 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. Potentially dilutive securities are excluded from the computation if their effect is in anti-dilutive. There were no 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 and not implemented that might have a material impact on its financial position or results of operations. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3 – GOING CONCERN The Company's 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. As of September 30, 2021, the Company has an accumulated deficit of $ 2,829,466 2,068,114 332,513 137,724 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2021 | |
Property and equipment: | |
PROPERTY AND EQUIPMENT | NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment consists of the following at September 30, 2021 and December 31, 2020: Property and equipment September 30, 2021 December 31, 2020 Property and equipment, purchased $ 129,113 $ 258,000 Property and equipment, right of use lease 30,089 30,089 Total property and equipment 159,202 288,089 Less: accumulated depreciation (100,431 ) (185,153 ) Property and equipment, net $ 58,771 $ 102,936 Depreciation expense for the three and nine months ended September 30, 2021 and 2020 was $ 7,710 14,155 30,778 45,630 On February 1, 2020, the Company leased a truck and trailer purchased November 2019 for $ 190,000 On April 2, 2021 the Company sold a NASCAR hauler to a related party at a gain of $ 25,595 |
LEASE RECEIVABLE _ RELATED PART
LEASE RECEIVABLE – RELATED PARTY | 9 Months Ended |
Sep. 30, 2021 | |
Lease Receivable Related Party | |
LEASE RECEIVABLE – RELATED PARTY | NOTE 5 – LEASE RECEIVABLE – RELATED PARTY On November 12, 2019, the company purchased a truck and trailer from a related party for $190,000. On February 1, 2020, the Company leased the asset back to the same related party. The term of the lease is for 48 5,003 22,800 10 197,442 180,500 The undiscounted cash flow principal payments for the remaining term of the lease will be as follows: schedule of future minimum lease receivable 2021 (remainder of year) $ 20,012 2022 60,036 2023 60,036 2024 5,003 Total 145,087 Less deferred interest (23,705 ) Less current portion (49,138 ) Long-term lease receivable $ 72,244 Income from the lease is reflected on the statement of operations as interest income – related parties. For the three and nine months ended September 30, 2021 and 2020, interest income reported on the statements of operations was $ 4,610 6,031 14,943 17,370 On August 1, 2020, the Company purchased a vehicle for $69,000 from a related party and leased it to the same related party. The term of the lease is for 60 1,000 37,000 10 47,065 69,000 The undiscounted cash flow principal payments for the remaining term of the lease will be as follows: Schedule of future minimum lease receivable 2021 (remainder of year) $ 7,000 2022 12,000 2023 12,000 2024 12,000 2025 8,000 Purchase option 37,000 Total 88,000 Less deferred interest (22,543 ) Less current portion (7,745 ) Long-term lease receivable $ 57,712 Income from the lease is reflected on the statement of operations as interest income – related parties. For the three and nine months ended September 30, 2021 and 2020, interest income was reported on the statements of operations of $ 1,614 575 4,936 575 |
LOAN PAYABLE _ RELATED PARTY
LOAN PAYABLE – RELATED PARTY | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LOAN PAYABLE – RELATED PARTY | NOTE 6 – LOAN PAYABLE – RELATED PARTY During 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 December 12, 2018 145,632 |
LINE OF CREDIT FROM RELATED PAR
LINE OF CREDIT FROM RELATED PARTY | 9 Months Ended |
Sep. 30, 2021 | |
Line Of Credit From Related Party | |
LINE OF CREDIT FROM RELATED PARTY | NOTE 7 – 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 (“DEVCAP”), for an amount up to $ 450,000 December 31, 2023 10 320,629 226,385 44,078 27,374 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 10 0 4,732 During 2014, the Company entered into a line of credit agreement with Gemini Southern, LLC. On April 1, 2018, the Company converted $525,000 of debt owed to Gemini Southern, LLC into 4,375,000 shares of stock. Gemini Southern, LLC will be treated as a related party for all activity from the date of the conversion forward. The line of credit is a demand loan with a maximum of $ 950,000 10 756,949 640,626 149,448 94,600 |
LONG-TERM LIABILITIES _ RELATED
LONG-TERM LIABILITIES – RELATED PARTY | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM LIABILITIES – RELATED PARTY | NOTE 8 – LONG-TERM LIABILITIES – RELATED PARTY 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 12 83,679 75,095 25,595 On December 22, 2018, the Company leased a vehicle from the majority shareholder. The term of the lease is 84 months with payments of $423 per month. At the end of the lease the Company can purchase the vehicle for $2,500. As of September 30, 2021, it is reasonably expected that the Company will exercise the purchase option. The value of the asset and corresponding liability at the date of inception was $ 30,089 6.649 21,850 23,042 Future lease payments will be as follows: Future lease payments 2021 (remainder of year) $ 3,385 2022 5,078 2023 5,078 2024 5,078 Thereafter 7,155 Total payments 25,774 Less deferred interest (3,924 ) Total liability 21,850 Less current portion (5,370 ) Long-term lease liability $ 16,480 There are no commitments or contingencies related to the long-term liabilities that are not disclosed above. |
OTHER RELATED PARTY TRANSACTION
OTHER RELATED PARTY TRANSACTIONS and RELATED PARTY ACOUNTS PAYABLE | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
OTHER RELATED PARTY TRANSACTIONS and RELATED PARTY ACOUNTS PAYABLE | NOTE 9 – OTHER RELATED PARTY TRANSACTIONS and RELATED PARTY ACOUNTS PAYABLE 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. Effective July 1, 2019, the agreement was transferred to FinTekk AP, LLC (“FinTekk”). All amounts due to DEVCAP and all future services will be assumed by FinTekk. For the three and nine months ended September 30, 2021 and 2020, the Company recorded consulting fee expense of $ 22,500 67,500 265,335 243,825 Consulting expense to related party (Cody Ware) On January 1, 2019, the Company entered into a verbal consulting agreement with its Chief Executive Officer, Cody Ware, whereby the Company agreed to pay $1,500 per month for consulting services related to his duties as Chief Executive Officer. Effective May 1, 2020, the consulting fee was increased to $4,500 per month. For the three and nine months ended September 30, 2021, the Company recorded consulting fee expense of $ 13,500 40,500 13,500 28,500 36,000 3,000 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. Mr. Wilson resigned effective April 1, 2017. The amount due but unpaid was $ 17,500 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. Mr. Gerrity resigned his position effective March 31, 2018. The amount due but unpaid was $ 32,500 Expense reimbursements The majority shareholder of the Company pays certain ongoing operating costs from personal funds and is periodically reimbursed. As of September 30, 2021, and December 31, 2020, the amount due to the shareholder was $ 34,633 29,250 Sale of asset In March 2018, the Company entered into a four-year agreement to lease equipment to a related party. On April 2, 2021 when the lease expired, the Company sold the asset to the related party for $ 75,095 25,595 |
STOCKHOLDERS_ DEFICIT
STOCKHOLDERS’ DEFICIT | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ DEFICIT | NOTE 10 – STOCKHOLDERS’ 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 in April 2016 to increase its authorized shares to 200,000,000 20,000,000 0.001 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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”). 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, 2021 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2021. 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, 2020 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 September 30, 2021 and December 31, 2020, the Company had no |
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 contract liability 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, 2021 and December 31, 2020. The Company had no |
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 5 7 |
Revenue recognition | Revenue recognition On January 1, 2018, the Company adopted the provisions of ASC 606 Revenue from Contracts with Customers, and related Accounting Standards Updates. This new revenue recognition standard has a five step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied. The impact of the Company’s initial application of ASC 606 did not have a material impact on its financial statements and disclosures. One of the primary sources of revenues are from the rental of advertising space on custom designed Teardrop Trailers, Various types and sizes of cargo trailers, lease revenue and consulting fees. Revenue from advertising space and leases is recognized over time as the performance obligations are met and consulting fees is recognized at a point in time when the performance obligation is met. For the three and nine months ended September 30, 2021 and 2020, the Company recognized no In March 2018, the Company entered into a four-year agreement to lease equipment to an unrelated shareholder. In September 2018, the son of the shareholder became the Chief Financial Officer. At that point the shareholder will be considered a related party. For the three months ended September 30, 2021 and 2020, related party lease income was $ 0 12,000 12,000 36,000 In January 2019, the Company entered into a two-year agreement to lease a vehicle to an unrelated third party. For the three and nine months ended September 30, 2021 and 2020, the Company recognized lease income of $ 1,275 3,825 1,000 On February 1, 2020, the Company leased a truck and trailer purchased November 2019 for $ 190,000 4,610 6,031 14,943 16,795 On September 1, 2020, the Company leased a vehicle for $69,000 to a related party. The lease is classified as a direct financing lease. The lease is reflected on the condensed balance sheet as lease receivable – related party. Interest revenue is reflected on the condensed statement of operations. For the three months ended September 30, 2021 and 2020, the Company recognized interest revenue of $ 1,614 575 4,936 575 In January 2015, the Company received $14,500 as a deposit for advertising space to be provided in the future. As of September 30, 2021 and December 31, 2020, the customer has not utilized the space and no revenue has been recognized as the performance obligations have not been satisfied. At the time the service is provided under the terms of the agreement, the Company will recognize the revenue. |
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. Potentially dilutive securities are excluded from the computation if their effect is in anti-dilutive. There were no |
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 and not implemented that might have a material impact on its financial position or results of operations. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property and equipment: | |
Property and equipment | Property and equipment September 30, 2021 December 31, 2020 Property and equipment, purchased $ 129,113 $ 258,000 Property and equipment, right of use lease 30,089 30,089 Total property and equipment 159,202 288,089 Less: accumulated depreciation (100,431 ) (185,153 ) Property and equipment, net $ 58,771 $ 102,936 |
LEASE RECEIVABLE _ RELATED PA_2
LEASE RECEIVABLE – RELATED PARTY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Sale Leaseback Transaction [Line Items] | |
Schedule of future minimum lease receivable | Schedule of future minimum lease receivable 2021 (remainder of year) $ 7,000 2022 12,000 2023 12,000 2024 12,000 2025 8,000 Purchase option 37,000 Total 88,000 Less deferred interest (22,543 ) Less current portion (7,745 ) Long-term lease receivable $ 57,712 |
Truck And Trailer [Member] | |
Sale Leaseback Transaction [Line Items] | |
Schedule of future minimum lease receivable | schedule of future minimum lease receivable 2021 (remainder of year) $ 20,012 2022 60,036 2023 60,036 2024 5,003 Total 145,087 Less deferred interest (23,705 ) Less current portion (49,138 ) Long-term lease receivable $ 72,244 |
LONG-TERM LIABILITIES _ RELAT_2
LONG-TERM LIABILITIES – RELATED PARTY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Future lease payments | Future lease payments 2021 (remainder of year) $ 3,385 2022 5,078 2023 5,078 2024 5,078 Thereafter 7,155 Total payments 25,774 Less deferred interest (3,924 ) Total liability 21,850 Less current portion (5,370 ) Long-term lease liability $ 16,480 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||||||
Cash Equivalents | $ 0 | $ 0 | $ 0 | |||
Fair value of assets/liabilities | 0 | 0 | 0 | |||
Lease receivable | 1,000 | 1,000 | $ 1,000 | |||
[custom:InterestRevenue] | 4,610 | $ 6,031 | 14,943 | $ 16,795 | ||
Interest and Other Income | $ 1,614 | $ 575 | $ 4,936 | $ 575 | ||
Potentially dilutive shares outstanding | 0 | 0 | 0 | 0 | ||
Leased Vehicle [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Revenues from contracts with customers | $ 1,275 | $ 1,275 | $ 3,825 | $ 3,825 | ||
Trailer Rental [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 | ||
Equipment Lease [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Revenues from related parties | $ 0 | $ 12,000 | $ 12,000 | $ 36,000 | ||
Equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment estimated useful lives | 3 years | |||||
Automobiles [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment estimated useful lives | 5 years | |||||
Furniture and Fixtures [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment estimated useful lives | 7 years | |||||
Freightliner And Featherlite [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, Plant and Equipment, Additions | $ 190,000 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Accumulated deficit | $ 2,829,466 | $ 2,829,466 | $ 2,496,953 | ||
Working capital | 2,068,114 | ||||
Net loss | $ 103,053 | $ 87,346 | 332,513 | $ 346,178 | |
Net Cash Provided by (Used in) Operating Activities | $ 137,724 | $ 170,433 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Property and equipment: | ||
Property and equipment, purchased | $ 129,113 | $ 258,000 |
Property and equipment, right of use lease | 30,089 | 30,089 |
Total property and equipment | 159,202 | 288,089 |
Less: accumulated depreciation | (100,431) | (185,153) |
Property and equipment, net | $ 58,771 | $ 102,936 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Apr. 02, 2021 | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation expense | $ 7,710 | $ 14,155 | $ 30,778 | $ 45,630 | ||
Related party gain | $ 25,595 | |||||
Freightliner And Featherlite [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment additions | $ 190,000 |
LEASE RECEIVABLE - RELATED PART
LEASE RECEIVABLE - RELATED PARTY (Details) | Sep. 30, 2021USD ($) |
Truck And Trailer [Member] | |
Sale Leaseback Transaction [Line Items] | |
2021 (remainder of year) | $ 20,012 |
2022 | 60,036 |
2023 | 60,036 |
2024 | 5,003 |
Total | 145,087 |
Less deferred interest | (23,705) |
Less current portion | (49,138) |
Long-term lease receivable | 72,244 |
Vehicle [Member] | |
Sale Leaseback Transaction [Line Items] | |
2021 (remainder of year) | 7,000 |
2022 | 12,000 |
2023 | 12,000 |
2024 | 12,000 |
Total | 88,000 |
Less deferred interest | (22,543) |
Less current portion | (7,745) |
Long-term lease receivable | 57,712 |
2025 | 8,000 |
Purchase option | $ 37,000 |
LEASE RECEIVABLE _ RELATED PA_3
LEASE RECEIVABLE – RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Aug. 01, 2020 | Feb. 01, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Interest income related party | $ 4,610 | $ 6,031 | $ 14,943 | $ 17,370 | ||
Interest and Other Income | $ 1,614 | $ 575 | $ 4,936 | $ 575 | ||
Truck And Trailer [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Lease payment | $ 5,003 | |||||
Vehicle [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Lease payment | $ 1,000 | |||||
Truck And Trailer [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Lease term | 48 months | |||||
Right to purchase asset | $ 22,800 | |||||
Lease discount interest rate | 10.00% | |||||
Present value of lease | $ 197,442 | |||||
Initial net book value of leased asset | $ 180,500 | |||||
Vehicle [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Lease term | 60 months | |||||
Right to purchase asset | $ 37,000 | |||||
Lease discount interest rate | 10.00% | |||||
Present value of lease | $ 47,065 | |||||
Initial net book value of leased asset | $ 69,000 |
LOAN PAYABLE _ RELATED PARTY (D
LOAN PAYABLE – RELATED PARTY (Details Narrative) - Gemini Southern [Member] - USD ($) | Jan. 01, 2015 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Debt stated interest rate | 10.00% | ||
Maturity date | Dec. 12, 2018 | ||
Accrued interest | $ 145,632 | $ 145,632 |
LINE OF CREDIT FROM RELATED P_2
LINE OF CREDIT FROM RELATED PARTY (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Credit line balance | $ 1,077,578 | $ 867,011 |
Accrued interest | 2,160 | 566 |
FinTekk AP, LLC [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum amount | $ 450,000 | |
Maturity date | Dec. 31, 2023 | |
Interest rate | 10.00% | |
Credit line balance | $ 320,629 | 226,385 |
Accrued interest | 44,078 | 27,374 |
General Pacific Partners [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum amount | $ 450,000 | |
Interest rate | 10.00% | |
Credit line balance | $ 0 | 0 |
Accrued interest | 4,732 | 4,732 |
Gemini Southern [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum amount | $ 950,000 | |
Interest rate | 10.00% | |
Accrued interest | $ 149,448 | 94,600 |
Gemini Southern [Member] | Gemini Southern [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit line balance | $ 756,949 | $ 640,626 |
LONG-TERM LIABILITIES - RELATED
LONG-TERM LIABILITIES - RELATED PARTY (Details) | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 (remainder of year) | $ 3,385 |
2022 | 5,078 |
2023 | 5,078 |
2024 | 5,078 |
Thereafter | 7,155 |
Total payments | 25,774 |
Less deferred interest | (3,924) |
Total liability | 21,850 |
Less current portion | (5,370) |
Long-term lease liability | $ 16,480 |
LONG-TERM LIABILITIES _ RELAT_3
LONG-TERM LIABILITIES – RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | ||||
Apr. 02, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 22, 2018 | Oct. 01, 2017 | |
Debt Instrument [Line Items] | |||||
Note payable balance | $ 59,121 | $ 63,125 | |||
Proceeds from Sale of Productive Assets | $ 75,095 | ||||
Gain (Loss) on Disposition of Other Assets | $ 25,595 | ||||
Operating lease liability | $ 21,850 | 23,042 | |||
Hauler Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | $ 165,000 | ||||
Debt stated interest rate | 12.00% | ||||
Note payable balance | $ 83,679 | ||||
Other Vehicle [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 6.649% | ||||
Right of use asset | $ 30,089 |
OTHER RELATED PARTY TRANSACTI_2
OTHER RELATED PARTY TRANSACTIONS and RELATED PARTY ACOUNTS PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Consulting fees to related party | $ 36,000 | $ 44,300 | $ 123,000 | $ 104,300 | |
Accounts payable - related parties | 397,728 | 397,728 | $ 336,081 | ||
Sale of asset | 75,095 | ||||
Gain on sale of asset | 25,595 | ||||
FinTekk AP, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Consulting fees to related party | 22,500 | 67,500 | |||
Accounts payable - related parties | 265,335 | 265,335 | 243,825 | ||
Cody Ware [Member] | |||||
Related Party Transaction [Line Items] | |||||
Consulting fees to related party | 13,500 | $ 13,500 | 40,500 | $ 28,500 | |
Accounts payable - related parties | 36,000 | 36,000 | 3,000 | ||
Wilson [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable - related parties | 17,500 | 17,500 | 17,500 | ||
Gerrity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable - related parties | 32,500 | 32,500 | 32,500 | ||
Majority Shareholder [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable - related parties | $ 34,633 | $ 34,633 | $ 29,250 |
STOCKHOLDERS_ DEFICIT (Details
STOCKHOLDERS’ DEFICIT (Details Narrative) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |