Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 16, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Frontier Digital Media Group, Inc. | |
Entity Central Index Key | 1,643,542 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,044,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 6,290 | $ 3,809 |
Accounts and other receivables | 1,520 | 1,597 |
Total current assets | 7,810 | 5,406 |
Total assets | 7,810 | 5,406 |
Current liabilities | ||
Accrued liabilities | $ 3,873 | 3,799 |
Accrued liabilities, related party | 4,000 | |
Notes payable, related parties | $ 22,122 | 16,700 |
Current liabilities | 25,995 | 24,499 |
Total liabilities | 25,995 | 24,499 |
Stockholders' Deficit | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 5,034,000 and 5,000,000 shares issued and outstanding as of March 31, 2016, and December 31, 2015 | 5,034 | $ 5,000 |
Additional paid-in capital | 1,666 | |
Accumulated deficit | (24,885) | $ (24,093) |
Total Stockholders' Deficit | (18,185) | (19,093) |
Total Liabilities and Stockholders' Deficit | $ 7,810 | $ 5,406 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 5,034,000 | 5,000,000 |
Common stock, shares outstanding | 5,034,000 | 5,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenues | |||
Revenue | $ 2,351 | $ 2,719 | |
Revenue, related parties | 1,000 | 4,280 | |
Total revenues | $ 3,351 | 6,999 | |
Operating expenses | |||
Related party compensation | 10,975 | ||
General and administrative | $ 4,143 | 4,726 | |
Total operating expenses | 4,143 | 15,701 | |
Loss from operations | $ (792) | (8,702) | |
Other income (expense) | |||
Interest expense | (700) | ||
Total other income (expense) | (700) | ||
Loss before income taxes | $ (792) | $ (9,402) | |
Provision for income taxes | |||
Net loss | $ (792) | $ (9,402) | |
Net Loss per common share | |||
Basic and diluted | [1] | $ 0 | $ 0 |
Weighted average shares outstanding | |||
Basic and diluted | 5,019,033 | 5,000,000 | |
[1] | denotes net loss per common share of less than $0.01 per share. |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Denotes maximum net loss per common share price | $ 0.01 | $ 0.01 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (792) | $ (9,402) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of discount on convertible notes payable | 700 | |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | $ 77 | (1,582) |
Income tax payable | (4,984) | |
Accrued liabilities | $ 74 | $ 622 |
Accrued liabilities - related party | (4,000) | |
Net cash used in operating activities | $ (4,641) | $ (14,646) |
Cash flows from investing activities: | ||
Net cash provided by (used in) investing activities | ||
Cash flows from financing activities: | ||
Proceeds from the sale of common stock | $ 1,700 | |
Proceeds from issuance of convertible notes payable, related party | $ 10,170 | |
Proceeds from issuance of notes payable, related party | $ 7,622 | |
Repayment of notes payable, related party | (2,200) | |
Net cash provided by financing activities | 7,122 | $ 10,170 |
Net increase (decrease) in cash and cash equivalents | 2,481 | (4,476) |
Cash and cash equivalents at beginning of period | 3,809 | 7,202 |
Cash and cash equivalents at end of period | $ 6,290 | $ 2,726 |
Supplemental cash flow information: | ||
Cash paid during the period for interest | ||
Cash paid during the period for income taxes | $ 243 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | Note 1 Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes required for audited annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the condensed consolidated financial statements not misleading have been included. The balance sheet at December 31, 2015, has been derived from the Companys audited consolidated financial statements as of that date. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and the notes thereto that are included in the Companys Annual Report on Form 10-K for the year ended December 31, 2015, that was filed with the SEC on April 14, 2016. The results of operations for the three months ended March 31, 2016, are not necessarily indicative of the results to be expected for the full year. The unaudited condensed consolidated financial statements include the accounts of the Company and Smile Producer, Inc., its wholly owned subsidiary, which was incorporated in the State of Colorado on March 20, 2013. Intercompany balances and transactions have been eliminated in consolidation. |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 2 Going Concern The Companys financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. The Company is in the development stage with limited trading history, has yet to achieve sustained profitability, does not have the existing financial resources to fully implement its business plan and is consequently dependent on outside sources of financing for continuation of its operations. These conditions raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period. The Company plans to improve its financial condition through raising capital, however, there is no assurance that the Company will be successful in accomplishing this objective. Management believes that this plan provides an opportunity for the Company to continue as a going concern. The Company cannot give any assurances regarding the success of its managements plans. The Companys financial statements do not include adjustments relating to the recoverability of recorded assets or liabilities that might be necessary should it be unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3 Summary of Significant Accounting Policies The significant accounting policies followed by the Company for interim reporting are consistent with those included in the Companys Annual Report on Form 10-K for the year ended December 31, 2015. There were no material changes to our significant accounting policies during the interim period ended March 31, 2016. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the FASB) issued guidance to clarify the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a comprehensive framework for revenue recognition that supersedes current general revenue guidance and most industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In July 2015, the FASB delayed the effective date of the new guidance by one year. The guidance is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Additionally, early adoption is now permitted. However, entities reporting under U.S. GAAP are not permitted to adopt the standard earlier than the original effective date of December 15, 2016. An entity should apply the guidance either retrospectively to each prior reporting period presented or retrospectively with the cumulative adjustment at the date of the initial application. The Company is currently in the process of evaluating the impact of adoption of the new accounting guidance on its consolidated financial statements and has not determined the impact of adoption on its consolidated financial statements. |
Notes Payable - Related Parties
Notes Payable - Related Parties | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable - Related Parties | Note 4 Notes Payable Related Parties In January 2015 and March 2015, the Company issued convertible notes payable to Venture Vest Capital Corporation, a related party, in the total amount of $10,170. The notes had a maturity date of December 31, 2016, and were to pay zero interest through December 31, 2015, at which point an annual interest rate of 6% was to become effective until maturity. The notes were convertible at the holders discretion to shares of our common stock at a conversion ratio of $0.01 per common share; the notes were convertible into an aggregate total of 1,017,000 of common stock. The Company reevaluated the embedded conversion feature and determined that the convertible notes did not include a beneficial conversion feature since the fair value of the underlying common stock had nominal value as of the grant dates of the convertible notes. In September 2015, $2,170 of principal balance of the aforesaid notes was repaid and the remaining balance of $8,000 was canceled and replaced with a new $8,000 non-convertible principal note payable to the same related party. This note was interest free until December 31, 2015, after which time it would bear interest at the rate of 6% per annum, and its maturity date is December 31, 2016. In December 2015, this promissory note was amended to extend the interest-free period until December 31, 2016, after which time it shall bear interest at an annual interest rate of 6% until repaid. In September 2015, the Company issued a second non-convertible promissory note payable to Venture Vest Capital Corporation for $6,500. The promissory note has a maturity date of December 31, 2016, and was interest free until December 31, 2015, at which time it would bear an annual interest rate of 6% until maturity. In December 2015, this promissory note was amended to extend the interest-free period until December 31, 2016, after which time it shall bear interest at an annual interest rate of 6% until repaid. In August 2015, the Company issued a promissory note payable to Patrick Dunda, the Companys President and Chief Executive Officer, for $2,200. The promissory note has a maturity date of December 31, 2016, and pays zero interest through May 31, 2016, at which point an annual interest rate of 6% will become effective until maturity. In March 2016, the Company repaid this promissory note payable in full. In March 2016, the Company issued a non-convertible promissory note payable to Terayco Enterprises, a company owned and operated by the father of Janel Dunda, a principal of the Company, for $7,622. The promissory note has a maturity date of December 31, 2016, and is interest free until December 31, 2016, after which time it shall bear interest at an annual interest rate of 6% until maturity or repaid. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued and Other Current Liabilities | Note 5 Accrued and Other Current Liabilities Accrued and other current liabilities was comprised of the following at March 31, 2016, and December 31, 2015: March 31, 2016 December 31, 2015 Accrued professional fees $ 3,800 $ 3,622 Accrued professional fees due to related party 4,000 Accrued merchant fees 73 177 Accrued and other current liabilities $ 3,873 $ 7,799 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 Income Taxes The Company did not incur any federal or state income tax expense or benefit for the three months ended March 31, 2016 and 2015. The Company had income tax receivable balance of $1,041 as of March 31, 2016, and December 31, 2015. As of December 31, 2015, the Company had net operating losses of approximately $26,000 for federal and state income tax purposes that can be carried forward for up to twenty years and deducted against future federal taxable income. The net operating loss carryforwards expire in various years through 2035. As of March 31, 2016, and December 31, 2015, management recorded a full valuation allowance against the net deferred tax assets created as a result of the Companys net operating losses. In assessing the ability to realize a portion of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future taxable income in making the assessment. The Company files federal and state income tax returns. These returns remain subject to examination by taxing authorities for all years after December 31, 2011. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7 Related Party Transactions Related party revenue The Company provides services to certain customers that the Company has determined to be related parties, as a principal of the Company, Janel Dunda, is the daughter of the president of these customers (VentureVest Capital Corporation, Terayco, Americans for Truth, and Carriage House). Revenues, generated from website design services, from these related parties were $1,000 and $4,280 for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, and December 31, 2015, there were no accounts receivable due from related parties. Related party compensation An employee of the Company, Janel Dunda, is considered a related party as she is the spouse of the President and a majority shareholder of the Company. During the three months ended March 31, 2016 and 2015, the Company incurred compensation expense of $0 and $10,975, respectively, for payroll expenses associated with Mrs. Dunda. Accrued liabilities, related party In August 2015, $4,000 of our legal expenses were paid by Terayco Enterprises, a company owned and operated by the father of Janel Dunda, a principal of the Company. The Company recorded an accrued liability due to a related party as of December 31, 2015, for this advance made by Terayco Enterprises. During the three months ended March 31, 2016, the Company incurred an additional $3,422 of legal expenses that were paid on behalf of the Company by Terayco Enterprises. These amounts paid on behalf of the Company have been memorialized in a promissory note during March 2016. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8 Stockholder Equity Common Stock The Company is authorized to issue 100,000,000 shares of common stock, par value $0.001 per share. All shares of the Companys common stock have equal rights and privileges with respect to voting, liquidation and dividend rights. Each share of Common Stock entitles the holder thereof to: a) One non-cumulative vote for each share held of record on all matters submitted to a vote of the stockholders; b) To participate equally and to receive any and all such dividends as may be declared by the Board of Directors out of funds legally available therefore; and c) To participate pro rata in any distribution of assets available for distribution upon liquidation. Stockholders have no pre-emptive rights to acquire additional shares of common stock or any other securities. Common shares are not subject to redemption and carry no subscription or conversion rights. All outstanding shares of common stock are fully paid and non-assessable. In 2015, the Company filed an S-1 Registration Statement to register 1,000,000 shares of the Companys common stock to be sold to the public at the price of $0.05 per share for a total of $50,000. The Registration Statement became effective on December 30, 2015. No shares of the Companys common stock were sold to the public in 2015. During the three months ended March 31, 2016, the Company sold 34,000 shares at $0.05 per share for gross proceeds of $1,700. The shares were sold by the officers and Directors of the Company and no broker commissions were paid as a result of the sales. There can be no assurances that additional shares of common stock will be sold on the S-1 offering or that a trading market will develop for the shares. As of March 31, 2016, 5,034,000 shares of common stock were issued and outstanding. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 Subsequent Event In April 2016, the Company sold 10,000 shares of common stock at $0.05 per share for gross proceeds of $500. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the FASB) issued guidance to clarify the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a comprehensive framework for revenue recognition that supersedes current general revenue guidance and most industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In July 2015, the FASB delayed the effective date of the new guidance by one year. The guidance is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Additionally, early adoption is now permitted. However, entities reporting under U.S. GAAP are not permitted to adopt the standard earlier than the original effective date of December 15, 2016. An entity should apply the guidance either retrospectively to each prior reporting period presented or retrospectively with the cumulative adjustment at the date of the initial application. The Company is currently in the process of evaluating the impact of adoption of the new accounting guidance on its consolidated financial statements and has not determined the impact of adoption on its consolidated financial statements. |
Accrued and Other Current Lia17
Accrued and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities was comprised of the following at March 31, 2016, and December 31, 2015: March 31, 2016 December 31, 2015 Accrued professional fees $ 3,800 $ 3,622 Accrued professional fees due to related party 4,000 Accrued merchant fees 73 177 Accrued and other current liabilities $ 3,873 $ 7,799 |
Notes Payable - Related Parti18
Notes Payable - Related Parties (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Sep. 30, 2015 | Aug. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Jan. 31, 2015 | |
Debt maturity date | Dec. 31, 2016 | ||||||
Notes interest rate per annum | 6.00% | ||||||
Convertible note conversion price per share | $ 0.01 | ||||||
Convertible note number of shares issued upon conversion | 1,017,000 | ||||||
Repayment of convertible note | $ 2,170 | ||||||
President and Chief Executive Officer [Member] | |||||||
New payable | $ 2,200 | ||||||
Debt maturity date | Dec. 31, 2016 | ||||||
Notes interest rate per annum | 6.00% | ||||||
Venture Vest Capital Corporation [Member] | Convertible Notes Payable [Member] | |||||||
New payable | $ 10,170 | $ 10,170 | |||||
Venture Vest Capital Corporation [Member] | Non-Convertible Notes Payable [Member] | |||||||
New payable | $ 8,000 | ||||||
Notes interest rate per annum | 6.00% | ||||||
Convertible note payable | $ 8,000 | ||||||
Venture Vest Capital Corporation [Member] | Non-Convertible Notes Payable [Member] | |||||||
New payable | $ 6,500 | ||||||
Debt maturity date | Dec. 31, 2016 | ||||||
Notes interest rate per annum | 6.00% | ||||||
Terayco Enterprises [Member] | |||||||
New payable | $ 7,622 | $ 7,622 | |||||
Debt maturity date | Dec. 31, 2016 | ||||||
Notes interest rate per annum | 6.00% | 6.00% |
Accrued and Other Current Lia19
Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued professional fees | $ 3,800 | $ 3,622 |
Accrued professional fees due to related party | 4,000 | |
Accrued merchant fees | $ 73 | 177 |
Accrued and other current liabilities | $ 3,873 | $ 7,799 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | |||
Income tax receivable | $ 1,041 | $ 1,041 | |
Net operating losses | $ 26,000 | ||
Net operating loss carryforwards expiration term | through 2,035 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Revenue, related party | $ 1,000 | $ 4,280 | ||
Accounts receivable | ||||
Janel Dunda [Member] | ||||
Compensation expense | $ 0 | $ 10,975 | ||
Terayco Enterprises [Member] | ||||
Legal expenses | $ 4,000 | $ 3,422 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Price per share | $ 0.05 | $ 0.05 |
Gross proceeds | $ 1,700 | $ 50,000 |
Number of shares of common stock sold to public | 34,000 | |
Common stock, shares issued | 5,034,000 | 5,000,000 |
Common stock, shares outstanding | 5,034,000 | 5,000,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Apr. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Number of shares of common stock sold to public | 34,000 | ||
Price per share | $ 0.05 | $ 0.05 | |
Gross proceeds | $ 1,700 | $ 50,000 | |
Subsequent Event [Member] | |||
Number of shares of common stock sold to public | 10,000 | ||
Price per share | $ 0.05 | ||
Gross proceeds | $ 500 |