Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Aug. 31, 2016 | Feb. 21, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Hemp Naturals, Inc. | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 1,664,038 | |
Current Fiscal Year End Date | --11-30 | |
Entity Common Stock, Shares Outstanding | 14,005,983 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Aug. 31, 2016 | Nov. 30, 2015 |
CURRENT ASSETS: | ||
Cash | $ 46,066 | $ 100 |
Deposits | 1,530 | 0 |
Inventory | 999 | 0 |
Total Current Assets | 48,595 | 100 |
TOTAL ASSETS | 48,595 | 100 |
CURRENT LIABILITIES: | ||
Accrued expenses | 0 | 3,099 |
Total Liabilities | 0 | 3,099 |
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock, $.0001 par value, 20,000,000 shares authorized; none issued and outstanding as of August 31, 2016 and November 30, 2015 | 0 | 0 |
Common stock ($.0001 par value, 500,000,000 shares authorized, 14,005,983 and 12,200,000 shares issued and outstanding as of August 31, 2016 and November 30, 2015, respectively) | 1,401 | 1,220 |
Additional Paid in Capital | 80,078 | 10,100 |
Accumulated Deficit | (32,884) | (14,319) |
Total Stockholders' Equity (Deficit) | 48,595 | (2,999) |
TOTAL LIABILITIES & EQUITY (DEFICIT) | $ 48,595 | $ 100 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2016 | Nov. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock shares par value | $ .0001 | $ 0.0001 |
Preferred stock shares authorized | 20,000,000 | 20,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock shares par value | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 500,000,000 | 500,000,000 |
Common stock shares issued | 14,005,983 | 12,200,000 |
Common stock shares outstanding | 14,005,983 | 12,200,000 |
Statement of Operations
Statement of Operations - USD ($) | 3 Months Ended | 9 Months Ended |
Aug. 31, 2016 | Aug. 31, 2016 | |
Revenues | ||
Revenues | $ 0 | $ 0 |
Total Revenues | 0 | 0 |
General & Administrative Expenses | ||
Organization and Related Expenses | 10,051 | 12,215 |
Professional Fees | 0 | 6,350 |
Total General & Administrative Expenses | 10,051 | 18,565 |
Operating profit/(loss) | (10,051) | (18,565) |
Net Loss | $ (10,051) | $ (18,565) |
Loss per share | ||
Basic and Diluted loss per share | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 14,005,983 | 13,000,864 |
Statement of Cash Flows
Statement of Cash Flows | 9 Months Ended |
Aug. 31, 2016USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |
Net loss | $ (18,565) |
Adjustments to reconcile Net Loss to net cash used in operating activities: | |
Expenses contributed to capital | 13,449 |
Changes in current assets and liabilities: | |
Deposits | (1,530) |
Inventory | (999) |
Accrued expenses | (3,099) |
Net cash provided by (used in) Operating Activities | (10,744) |
CASH FLOWS FROM FINANCING ACTIVITIES | |
Proceeds from sale of common stock | 55,030 |
Contributions from related party | 1,680 |
Total Cash Provided by Financing Activities | 56,710 |
Net increase in cash and cash equivalents | 45,966 |
Cash and cash equivalents at beginning of year | 100 |
Cash and cash equivalents at end of year | 46,066 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |
Cash paid for: Interest | 0 |
Income taxes | $ 0 |
1. Organization and Description
1. Organization and Description of Business | 9 Months Ended |
Aug. 31, 2016 | |
Organization And Description Of Business | |
Organization and Description of Business | Hemp Naturals, Inc. (the Company) was incorporated under the laws of the State of Delaware on November 13, 2015. The Company intends to offer consumer goods that are made of industrial hemp and/or the non-psychoactive ingredients of the cannabis plant. The Company has elected November 30th as its year end. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Aug. 31, 2016 | |
Summary Of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company's unaudited interim financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the unaudited interim financial statements. While the information presented in the accompanying interim financial statements for the three and nine months ended August 31, 2016 is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim period presented in accordance with the accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. The accompanying unaudited interim financial statements should be read in conjunction with the Company’s audited financial statements (and notes thereto) for the period from November 13 (date of inception) to November 30, 2015 included elsewhere in the Company’s Form 1-A filed with the SEC on January 29, 2016. Operating results for the three and nine months ended August 31, 2016 are not necessarily indicative of the results that can be expected for the year ending November 30, 2016. Inventories Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out ("FIFO") method, and are valued at the lower of cost or market value. This valuation requires Hemp Naturals, Inc. to make judgments, based on currently-available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. Use of Estimates The preparation of unaudited interim financial statements in conformity with generally accepted accounting principles 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. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents at August 31, 2016 and November 30, 2015 were $46,066 and $100, respectively. Related Parties The Company follows ASC 850, Related Party Disclosures, |
3. Going Concern
3. Going Concern | 9 Months Ended |
Aug. 31, 2016 | |
Going Concern | |
Going Concern | The Company’s unaudited interim financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company demonstrates adverse conditions that raise substantial doubt about the Company's ability to continue as a going concern for one year following the issuance of these unaudited interim financial statements. These adverse conditions are negative financial trends, specifically operating loss, working capital deficiency, and other adverse key financial ratios. The Company has not established any source of revenue to cover its operating costs. Management plans to fund operating expenses with related party contributions to capital. There is no assurance that management's plan will be successful. The unaudited interim financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern. |
4. Commitments and Contingencie
4. Commitments and Contingencies | 9 Months Ended |
Aug. 31, 2016 | |
Commitments And Contingencies | |
Commitments and Contingencies | The Company follows ASC 450-20, Los Contingencies, Office Space The Company contracted the use of 3,000 square feet of space owned by our Secretary, Maryna Bleier, who has been and will be contributing the space, valued at $5,000 per month, to the Company as additional paid-in capital July 1, 2016 until July 1, 2028. Beginning July 1, 2028, the Company is obligated to pay $5,000 monthly for the use of their office space per the terms of the rental contract. |
5. Shareholder Equity
5. Shareholder Equity | 9 Months Ended |
Aug. 31, 2016 | |
Shareholder Equity | |
Shareholder Equity | Preferred Stock The authorized preferred stock of the Company consists of 20,000,000 shares with a par value of $0.0001. The Company has no shares of preferred stock issued and outstanding as of August 31, 2016 and November 30, 2015. Common Stock The authorized common stock of the Company consists of 500,000,000 shares with a par value of $0.0001. There were 14,005,983 and 12,200,000 shares of common stock issued and outstanding as of August 31, 2016 and November 30, 2015, respectively. The Company does not have any potentially dilutive instruments as of August 31, 2016 and, thus, anti-dilution issues are not applicable. In March and April of 2016, a total of 1,803,983 shares of common stock at par value of $.0001 were sold to 37 purchasers for cash of $55,030. Pertinent Rights and Privileges Holders of shares of Common Stock are entitled to one vote for each share held to be used at all stockholders’ meetings and for all purposes including the election of directors. Common Stock does not have cumulative voting rights. Nor does it have preemptive or preferential rights to acquire or subscribe for any unissued shares of any class of stock. Holders of shares of Preferred Stock are entitled to voting rights where every one share of Preferred Stock has voting rights equal to one hundred shares of Common Stock. Additional Paid In Capital During the nine months ended August 31, 2016, our CEO contributed and paid expenses on behalf of the company for a combined $4,279 and two shareholders paid operating expenses totaling $850. These are recorded as additional paid in capital. Also, our Secretary provided $10,000 worth of office space to the company which was recorded as additional paid in capital. |
6. Related-Party Transactions
6. Related-Party Transactions | 9 Months Ended |
Aug. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Contributed Capital As of August 31, 2016, our CEO has provided the Company contributed capital in the form of cash and payment of expenses on behalf of the Company totaling $4,279, our Secretary has provided office space worth $10,000 and two shareholders have provided the Company contributed capital totaling $850. Equity On November 18, 2015 the Company issued 6,000,000 shares of restricted common stock to Levi Jacobson and 6,000,000 shares of restricted common stock to Maryna Bleier. The shares were issued in exchange for developing the Company’s business plan. The fair value of the shares issued as compensation was $0.0001 per share. The Company recorded $1,200 in stock-based compensation for management services. In March and April of 2016, a total of 1,803,983 shares of common stock at par value of $.0001 were sold to 37 purchasers for cash of $55,030. |
7. Subsequent Events
7. Subsequent Events | 9 Months Ended |
Aug. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Our Secretary contributed rental space to the Company at $5,000/month, which is recorded as additional paid in capital. In December 2016, the CEO and Secretary of the Company were compensated $20,000 and $15,000 respectively in cash for payment of future services. |
2. Summary of Significant Acc13
2. Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Aug. 31, 2016 | |
Summary Of Significant Accounting Policies Policies | |
Basis of Presentation | This summary of significant accounting policies is presented to assist in understanding the Company's unaudited interim financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the unaudited interim financial statements. While the information presented in the accompanying interim financial statements for the three and nine months ended August 31, 2016 is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim period presented in accordance with the accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. The accompanying unaudited interim financial statements should be read in conjunction with the Company’s audited financial statements (and notes thereto) for the period from November 13 (date of inception) to November 30, 2015 included elsewhere in the Company’s Form 1-A filed with the SEC on January 29, 2016. Operating results for the three and nine months ended August 31, 2016 are not necessarily indicative of the results that can be expected for the year ending November 30, 2016. |
Inventories | Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out ("FIFO") method, and are valued at the lower of cost or market value. This valuation requires Hemp Naturals, Inc. to make judgments, based on currently-available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. |
Use of Estimates | The preparation of unaudited interim financial statements in conformity with generally accepted accounting principles 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. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. |
Cash and Cash Equivalents | The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents at August 31, 2016 and November 30, 2015 were $46,066 and $100, respectively. |
Related Parties | The Company follows ASC 850, Related Party Disclosures, |
1. Organization and Descripti14
1. Organization and Description of Business (Details Narrative) | 9 Months Ended |
Aug. 31, 2016 | |
Organization And Description Of Business Details Narrative | |
State of Incorporation | Delaware |
Date of Incorporation | Nov. 13, 2015 |
2. Summary of Significant Acc15
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Aug. 31, 2016 | Nov. 30, 2015 |
Summary Of Significant Accounting Policies Details Narrative | ||
Cash and Cash Equivalents | $ 46,066 | $ 100 |
5. Shareholder Equity (Details
5. Shareholder Equity (Details Narrative) - USD ($) | 9 Months Ended | |
Aug. 31, 2016 | Nov. 30, 2015 | |
Preferred stock shares par value | $ .0001 | $ 0.0001 |
Preferred stock shares authorized | 20,000,000 | 20,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock shares par value | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 500,000,000 | 500,000,000 |
Common stock shares issued | 14,005,983 | 12,200,000 |
Common stock shares outstanding | 14,005,983 | 12,200,000 |
Potentially Dilutive Shares | 0 | |
Chief Executive Officer [Member] | ||
Payments by Related Parties | $ 4,279 | |
Two Shareholders [Member] | ||
Payments by Related Parties | 850 | |
Secretary [Member] | ||
Payments by Related Parties | $ 10,000 |
6. Related-Party Transactions (
6. Related-Party Transactions (Details Narrative) | 3 Months Ended |
Aug. 31, 2016USD ($)shares | |
Chief Executive Officer [Member] | |
Payments by Related Parties | $ 4,279 |
Secretary [Member] | |
Payments by Related Parties | 10,000 |
Two Shareholders [Member] | |
Payments by Related Parties | $ 850 |
Levi Jacobson [Member] | |
Issuance of Restricted Common Stock | shares | 6,000,000 |
Maryna Bleier [Member] | |
Issuance of Restricted Common Stock | shares | 6,000,000 |