Hemp Naturals (HPMM) 10-K 8 Aug 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Nov. 30, 2017	Jul. 09, 2018	May 31, 2018
Document and Entity Information
Entity Registrant Name	Hemp Naturals, Inc.
Document Type	10-K
Document Period End Date	Nov. 30, 2017
Amendment Flag	false
Entity Central Index Key	1,664,038
Current Fiscal Year End Date	--11-30
Entity Public Float			$ 81,830
Entity Common Stock, Shares Outstanding		324,125,983
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	FY

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Nov. 30, 2017	Nov. 30, 2016
CURRENT ASSETS:
Cash	$ 11	$ 46,017
Deposits	0	1,530
Inventory	0	999
Prepaid Expenses	3,720,725	0
Total Current Assets	3,720,736	48,586
TOTAL ASSETS	3,720,736	48,586
CURRENT LIABILITIES:
Accrued expenses	9,074	2,765
Total Current Liabilities	9,074	2,765
Total Liabilities	9,074	2,765
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock, $.0001 par value, 20,000,000 shares authorized; none issued and outstanding as of November 30, 2017 and 2016	0	0
Common stock , $.0001 par value, 500,000,000 shares authorized, 266,125,983 and 14,005,983 and shares issued and outstanding as of November 30, 2017 and 2016, respectively	26,613	1,401
Additional Paid in Capital	7,709,151	95,078
Accumulated Deficit	(4,024,102)	(50,698)
Total Stockholders’ Equity	3,711,622	45,781
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY (DEFICIT)	$ 3,720,736	$ 48,586

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Nov. 30, 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	266,125,983	14,005,983
Common stock shares outstanding	266,125,983	14,005,983

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	1 Months Ended	12 Months Ended
	Nov. 30, 2016	Nov. 30, 2017
Operating Expenses
General and Administrative	$ 36,379	$ 3,973,404
Total Operating Expenses	36,379	3,973,404
Loss Before Income Tax Provision	(36,379)	(3,973,404)
Income Tax Provision	0	0
Net Loss	$ (36,379)	$ (3,973,404)
Basic and Diluted Net loss Per Common Stock	$ 0	$ (0.09)
Weighted average number of common stock outstanding – basic and diluted	13,476,181	45,180,120

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Shares at Nov. 30, 2015	12,200,000
Beginning Balance, Amount at Nov. 30, 2015	$ 1,220	$ 10,100	$ (14,319)	$ (2,999)
Proceeds from the sale of common shares, Shares	1,805,983
Proceeds from the sale of common shares, Amount	$ 181	54,849		55,030
Cash contribution from related party		1,680		1,680
Contributed capital from related parties		28,449		28,449
Net loss			(36,379)	(36,379)
Ending Balance, Shares at Nov. 30, 2016	14,005,983
Ending Balance, Amount at Nov. 30, 2016	$ 1,401	95,078	(50,698)	45,781
Proceeds from the sale of common shares, Shares	1,420,000
Proceeds from the sale of common shares, Amount	$ 142	42,358		42,500
Shares issued for services, Shares	250,700,000
Shares issued for services, Amount	$ 25,070	7,495,930		7,521,000
Contributed capital from related parties		75,785		0
Net loss			(3,973,404)	(3,973,404)
Ending Balance, Shares at Nov. 30, 2017	266,125,983
Ending Balance, Amount at Nov. 30, 2017	$ 26,613	$ 7,709,151	$ (4,024,103)	$ 3,711,622

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	1 Months Ended	12 Months Ended
	Nov. 30, 2016	Nov. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (36,379)	$ (3,973,404)
Adjustments to reconcile net loss to net cash used in operating activities:
Expenses contributed to capital	28,449	0
Stock based compensation	0	3,800,275
Changes in current assets and liabilities:
Deposits	(1,530)	1,530
Inventory	(999)	999
Accrued expenses	(334)	6,308
Net cash used in operating activities	(10,793)	(164,292)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock	55,030	42,500
Contributed capital from shareholder	1,680	75,786
Net cash provided by financing activities	56,710	118,286
Net increase/(decrease) in cash and cash equivalents	45,917	(46,006)
Cash and cash equivalents at beginning of year	100	46,017
Cash and cash equivalents at end of year	46,017	11
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	0	0
Cash paid for income taxes	0	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCIING ACTIVITIES:
Common stock issued recorded as prepaid expense	$ 0	$ 3,900,000

1. Organization and Description

1. Organization and Description of Business	12 Months Ended
	Nov. 30, 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	12 Months Ended
	Nov. 30, 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 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 financial statements. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Statement of Operations for fiscal year ended November 30, 2016, to consolidate professional fees with general and administrative expense. This change in classification does not affect previously reported net loss. 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 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 November 30, 2017 and November 30, 2016 were $11 and $46,017, respectively. Income Taxes The Company accounts for income taxes under ASC 740, “ Income Taxes Basic Earnings (Loss) Per Share The Company computes basic and diluted earnings (loss) per share in accordance with ASC Topic 260, Earnings per Share The Company does not have any potentially dilutive instruments as of November 30, 2017 or 2016 and, thus, anti-dilution issues are not applicable. 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 November 30, 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, Share-Based Compensation ASC 718, “ Compensation – Stock Compensation The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, “ Equity – Based Payments to Non-Employees.” The Company’s stock based compensation for years ended November 30, 2017 and November 30, 2016 was $3,600,000 and $0, respectively.

3. Going Concern

3. Going Concern	12 Months Ended
	Nov. 30, 2017
Going Concern
Going Concern	The Company’s 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 accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not generated any revenues since inception. For the year ended November 30, 2017, the Company has a net loss of $3,720,404 and an accumulated deficit of $4,024,102 at November 30, 2017. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

4. Income Taxes

4. Income Taxes	12 Months Ended
	Nov. 30, 2017
Income Taxes
Income Taxes	Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Significant components of the Company’s deferred tax assets are as follows: November 30, 2017 2016 Deferred tax asset, generated from net operating loss $ 1,368,195 $ 17,237 Valuation allowance (1,368,195 ) (17,237 ) $ — $ — The reconciliation of the effective income tax rate to the federal statutory rate is as follows: Federal income tax rate 34.0 % 34.0 % Increase in valuation allowance (34.0 %) (34.0 %) Effective income tax rate 0.0 % 0.0 % On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law. This legislation reduced the federal corporate tax rate from the previous 35% to 21%. Tax filings for the Company for the years 2015 and 2016 are available for examination by tax authorities. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years.

5. Commitments and Contingencie

5. Commitments and Contingencies	12 Months Ended
	Nov. 30, 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.

6. Prepaid Expenses

6. Prepaid Expenses	12 Months Ended
	Nov. 30, 2017
Prepaid Expenses Abstract
Prepaid Expenses	The Company issued 130,000,000 shares of common stock as compensation for office rent and consulting services. The $3,720,725 in prepaid expenses consists of approximately $2,617,500 in prepaid consulting services and $1,103,225 in prepaid office rent.

7. Shareholder Equity

7. Shareholder Equity	12 Months Ended
	Nov. 30, 2017
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 November 30, 2017 and 2016. Common Stock The authorized common stock of the Company consists of 500,000,000 shares with a par value of $0.0001. There were 266,125,983 and 14,005,983 shares of common stock issued and outstanding as of November 30, 2017 and 2016, respectively. In March 2016, a total of 1,803,983 shares of common stock at par value of $.0001 were sold to 37 investors for cash of $55,030. On October 11, 2017 170,000 shares of common stock were sold to 1 purchaser at a purchase price of $0.03 per share for gross proceeds of $5,000. On October 18, 2017 1,250,000 shares of common stock were sold to 1 purchaser at a purchase price of $.03 per share for gross proceeds of $37,500, with $10,905 in cash received and $26,595 recorded as additional paid-in capital. In the year ended November 30, 2017, 250,700,000 shares of common stock were issued to ten shareholders as compensation for office rent and various professional services, primarily business development. The Company does not have any potentially dilutive instruments as of November 30, 2017 and 2016 and, thus, anti-dilution issues are not applicable. 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 year ended November 30, 2016, our CEO contributed cash of $1,680 to the Company to pay for expenses and paid $2,599 in operating expenses on behalf of the Company which is recorded as additional paid in capital. Two shareholders also paid operating expenses on behalf of the Company totaling $850 which are recorded as additional paid in capital. Our Secretary provided rental space to the company totaling $25,000 for the 2016 fiscal year, which is recorded as additional paid in capital. During the year ended November 30, 2017, our CEO contributed cash of $6,976 to the Company to pay for expenses and paid $8,810 in operating expenses on behalf of the Company which is recorded as additional paid in capital. Our Secretary provided rental space to the company totaling $60,000 for the 2017 fiscal year, which is recorded as additional paid in capital.

8. Related-Party Transactions

8. Related-Party Transactions	12 Months Ended
	Nov. 30, 2017
Related Party Transactions [Abstract]
Related-Party Transactions	Equity On November 17, 2017, the Company issued 120,000,000 shares to our CEO as compensation for development of the business plan. On November 17, 2017, the Company issued 45,000,000 shares to Blue Car Enterprise as compensation for a 2 year agreement to provide consulting to the Company. Blue Car Enterprise is an entity solely owned by our CEO. Contributed Capital As of November 30, 2017, our CEO has provided the Company contributed capital in the form of cash and payment of expenses on behalf of the Company totaling $15,786 and our Secretary has provided the Company contributed office space valued at $60,000. As of November 30, 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 the Company contributed office space valued at $25,000 and two shareholders have provided the Company contributed capital totaling $850. Office Space At this time our main office space is provided to us rent free by our Secretary Maryna Bleier which is accounted for as contribution of $5,000 monthly. Our main office space is located at 16950 North Bay Road, Suite 1803 Sunny Isles Beach, Florida 33160. After July 1, 2028, the Company is obligated to pay $5,000 monthly.

9. Subsequent Events

9. Subsequent Events	12 Months Ended
	Nov. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	On January 10, 2018, the Company issued 29,000,000 shares of restricted common stock to a related party in exchange for consulting services for two years. On January 14, 2018, the Company issued 29,000,000 shares of restricted common stock to a related party for services rendered to the Company. On February 28, 2018, the Company issued a convertible redeemable note, payable in full in one year, to Adar Bays, LLC in the amount of $78,750 at 8% annual interest.

2. Summary of Significant Acc16

2. Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Nov. 30, 2017
Summary Of Significant Accounting Policies Policies Abstract
Basis of Presentation	This summary of significant accounting policies is presented to assist in understanding the Company's 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 financial statements.
Reclassification of Prior Year Presentation	Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Statement of Operations for fiscal year ended November 30, 2016, to consolidate professional fees with general and administrative expense. This change in classification does not affect previously reported net loss.
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 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 November 30, 2017 and November 30, 2016 were $11 and $46,017, respectively.
Income Taxes	The Company accounts for income taxes under ASC 740, “ Income Taxes
Basic Earnings (Loss) Per Share	The Company computes basic and diluted earnings (loss) per share in accordance with ASC Topic 260, Earnings per Share The Company does not have any potentially dilutive instruments as of November 30, 2017 or 2016 and, thus, anti-dilution issues are not applicable.
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 November 30, 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,
Share-Based Compensation	ASC 718, “ Compensation – Stock Compensation The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, “ Equity – Based Payments to Non-Employees.” The Company’s stock based compensation for years ended November 30, 2017 and November 30, 2016 was $3,600,000 and $0, respectively.

4. Income Taxes (Tables)

4. Income Taxes (Tables)	12 Months Ended
	Nov. 30, 2017
Income Taxes Tables Abstract
Deferred tax assets	November 30, 2017 2016 Deferred tax asset, generated from net operating loss $ 1,368,195 $ 17,237 Valuation allowance (1,368,195 ) (17,237 ) $ — $ —
Effective income tax rate	Federal income tax rate 34.0 % 34.0 % Increase in valuation allowance (34.0 %) (34.0 %) Effective income tax rate 0.0 % 0.0 %

1. Organization and Descripti18

1. Organization and Description of Business (Details Narrative)	12 Months Ended
	Nov. 30, 2017
Organization And Description Of Business Details Narrative Abstract
State of Incorporation	Delaware
Date of Incorporation	Nov. 13, 2015

2. Summary of Significant Acc19

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Nov. 30, 2016	Nov. 30, 2017
Summary Of Significant Accounting Policies Details Narrative Abstract
Cash and Cash Equivalents	$ 46,017	$ 11
Stock Based Compensation	$ 0	$ 3,600,000

4. Income Taxes (Details)

4. Income Taxes (Details) - USD ($)	Nov. 30, 2017	Nov. 30, 2016
Income Taxes Details Narrative Abstract
Net operating loss carryforward	$ 1,368,195	$ 17,237
Valuation allowance	(1,368,195)	(17,237)
Deferred tax asset	$ 0	$ 0

4. Income Taxes (Details 1)

4. Income Taxes (Details 1)	12 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Income Taxes Details 1Abstract
Federal income tax rate Increase in valuation allowance	34.00%	34.00%
Increase in valuation allowance	(34.00%)	(34.00%)
Effective income tax rate	0.00%	0.00%

7. Shareholder Equity (Details

7. Shareholder Equity (Details Narrative) - USD ($)	12 Months Ended
	Nov. 30, 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	266,125,983	14,005,983
Common stock shares outstanding	266,125,983	14,005,983
Potentially Dilutive Shares	0	0
Chief Executive Officer [Member]
Payments by Related Parties	$ 6,976	$ 1,680
Two Shareholders [Member]
Payments by Related Parties		850
Secretary [Member]
Payment of Future Services	$ 60,000	$ 25,000