Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
May 31, 2017 | Jun. 22, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Hemp Naturals, Inc. | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2017 | |
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 | 2,017 | |
Document Fiscal Period Focus | Q2 |
Balance Sheets
Balance Sheets - USD ($) | May 31, 2017 | Nov. 30, 2016 |
CURRENT ASSETS: | ||
Cash | $ 1,740 | $ 46,017 |
Deposits | 1,530 | 1,530 |
Inventory | 0 | 999 |
Total Current Assets | 3,270 | 48,546 |
TOTAL ASSETS | 3,270 | 48,546 |
CURRENT LIABILITIES: | ||
Accrued expenses | 765 | 2,765 |
Total Current Liabilities | 765 | 2,765 |
TOTAL LIABILITIES | 765 | 2,765 |
STOCKHOLDERS' DEFICIT: | ||
Preferred stock, $.0001 par value, 20,000,000 shares authorized; none issued and outstanding as of May 31, 2017 and November 30, 2016 | 0 | 0 |
Common stock , $.0001 par value, 500,000,000 shares authorized, 14,005,983 shares issued and outstanding as of May 31, 2017 and November 30, 2016, respectively | 1,401 | 1,401 |
Additional Paid in Capital | 136,763 | 95,078 |
Accumulated Deficit | (135,659) | (50,698) |
Total Stockholders' Deficit | 2,505 | 45,781 |
TOTAL LIABILITIES & STOCKHOLDERS’ DEFICIT | $ 3,270 | $ 48,546 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | May 31, 2017 | Nov. 30, 2016 |
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 | 14,005,983 |
Common stock shares outstanding | 14,005,983 | 14,005,983 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Total Operating Expenses | ||||
Selling, General & Administrative Expenses | $ 19,697 | $ 8,474 | $ 84,961 | $ 8,514 |
Total General & Administrative Expenses | 19,697 | 8,474 | 84,961 | 8,514 |
Net Loss | $ (19,697) | $ (8,474) | $ (84,961) | $ (8,514) |
Net loss per common share- Basic and diluted | $ 0 | $ 0 | $ (0.01) | $ 0 |
Weighted average number of common shares outstanding- Basic and diluted | 14,005,983 | 13,684,644 | 14,005,983 | 12,946,378 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 6 Months Ended | |
May 31, 2017 | May 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (84,961) | $ (8,514) |
Adjustment to reconcile net loss to net cash used in operating activities: | ||
Expenses contributed to capital | 41,685 | 3,449 |
Changes in current assets and liabilities: | ||
Deposit | 0 | (1,530) |
Accrued expenses | (2,000) | (3,099) |
Inventory | 999 | (999) |
Net cash used in operating activities | (44,277) | (10,693) |
CASH FLOWS FROM FINANCING ACTIVITES | ||
Proceeds from the sale of common stock | 0 | 55,030 |
Contributions from related party | 0 | 1,680 |
Net cash provided by financing activities | 0 | 56,710 |
Net increase in cash and cash equivalents | (44,277) | 46,017 |
Cash and cash equivalents at beginning of year | 46,017 | 100 |
Cash and cash equivalents at end of year | 1,740 | 46,117 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for: Interest | 0 | 0 |
Cash paid for: Income taxes | $ 0 | $ 0 |
1. Organization and Description
1. Organization and Description of Business | 6 Months Ended |
May 31, 2017 | |
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 | 6 Months Ended |
May 31, 2017 | |
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 six months ended May 31, 2017 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 fiscal year ended November 30, 2016 included elsewhere in the Company’s Form 10K filed with the SEC on February 21, 2017. Operating results for the three and six months ended May 31, 2017 are not necessarily indicative of the results that can be expected for the year ending November 30, 2017. 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. Fair Value of Financial Instruments The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. ASC 820, Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of May 31, 2017. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accrued expenses. Related Parties The Company follows ASC 850, Related Party Disclosures, Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation. |
3. Going Concern
3. Going Concern | 6 Months Ended |
May 31, 2017 | |
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 | 6 Months Ended |
May 31, 2017 | |
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 | 6 Months Ended |
May 31, 2017 | |
Shareholder Equity | |
Shareholder Equity | Additional Paid In Capital During the six months ended May 31, 2017, our CEO paid a combined $11,685 in operating expenses which is recorded as additional paid in capital. Our secretary provided rental space to the company totaling $30,000, which is recorded as additional paid in capital. |
6. Related-Party Transactions
6. Related-Party Transactions | 6 Months Ended |
May 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Contributed Capital During the six months ending May 31, 2017, our CEO paid a combined $11,685 in operating expenses which is recorded as additional paid in capital. Our secretary had provided rental space to the Company totaling $30,000 which is recorded as additional paid in capital. Compensation At six months ended May 31, 2017, the CEO and Secretary of the Company were compensated $20,000 and $16,020 respectively in cash for payment of current and future services. The compensation is considered fully earned on the date of the payment. 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 |
2. Summary of Significant Acc12
2. Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
May 31, 2017 | |
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 six months ended May 31, 2017 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 fiscal year ended November 30, 2016 included elsewhere in the Company’s Form 10K filed with the SEC on February 21, 2017. Operating results for the three and six months ended May 31, 2017 are not necessarily indicative of the results that can be expected for the year ending November 30, 2017. |
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. |
Fair Value of Financial Instruments | The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. ASC 820, Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of May 31, 2017. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accrued expenses. |
Related Parties | The Company follows ASC 850, Related Party Disclosures, |
Reclassifications | Certain prior year amounts have been reclassified to conform with the current year presentation. |
1. Organization and Descripti13
1. Organization and Description of Business (Details Narrative) | 6 Months Ended |
May 31, 2017 | |
Organization And Description Of Business Details Narrative | |
State of Incorporation | Delaware |
Date of Incorporation | Nov. 13, 2015 |
5. Shareholder Equity (Details
5. Shareholder Equity (Details Narrative) - USD ($) | May 31, 2017 | Nov. 30, 2016 |
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 | 14,005,983 |
Common stock shares outstanding | 14,005,983 | 14,005,983 |
Chief Executive Officer [Member] | ||
Payments by Related Parties | $ 11,685 | |
Secretary [Member] | ||
Payments by Related Parties | $ 30,000 |
6. Related-Party Transactions (
6. Related-Party Transactions (Details Narrative) | May 31, 2017USD ($) |
Chief Executive Officer [Member] | |
Payments by Related Parties | $ 11,685 |
Payment of Future Services | 20,000 |
Secretary [Member] | |
Payments by Related Parties | 30,000 |
Payment of Future Services | $ 16,020 |