Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Mar. 15, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Diverse Development Group Inc. | |
Entity Central Index Key | 0001672897 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,515,000 | |
Entity Public Float | $ 0 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2018 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Entity Well Known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Shell Company | false |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash & cash equivalents | $ 104 | $ 272 |
Total Current Assets | 104 | 272 |
Total assets | 104 | 272 |
Current liabilities | ||
Accrued liabilities | 3,717 | 18,180 |
Note payable - related party | 112,142 | 24,896 |
Current liabilities | 115,859 | 43,076 |
Stockholders' deficit | ||
Preferred stock, $0.0001 par value, 20,000,000 shares authorized; none outstanding as of December 31, 2018 and December 31, 2017 | ||
Common stock; $0.0001 par value, 100,000,000 shares authorized; 6,515,000 and 7,115,000 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively | 652 | 712 |
Discount on Common Stock | (670) | (670) |
Additional paid - in capital | 2,202 | 2,142 |
Accumulated deficit | (117,939) | (44,988) |
Total stockholders' deficit | (115,755) | (42,804) |
Total liabilities and stockholders' deficit | $ 104 | $ 272 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders' deficit | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares | 20,000,000 | 20,000,000 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 6,515,000 | 7,115,000 |
Common stock, outstanding shares | 6,515,000 | 7,115,000 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements Of Operations | ||
Revenue | ||
Operating expenses | 70,235 | 37,803 |
Net loss before income taxes | (70,235) | (37,803) |
Interest expense | (2,716) | (416) |
Net loss | $ (72,951) | $ (38,219) |
Loss per share - basic and diluted | $ (0.01) | $ (0.01) |
Weighted average shares - basic and diluted | 6,515,000 | 7,115,000 |
STATEMENT OF STOCKHOLDERS' DEFI
STATEMENT OF STOCKHOLDERS' DEFICIT - USD ($) | Preferred Stock | Common Stock | Discount on Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2016 | 7,115,000 | |||||
Beginning Balance, Amount at Dec. 31, 2016 | $ 712 | $ (670) | $ 2,142 | $ (6,769) | $ (4,585) | |
Net Loss | (38,219) | (38,219) | ||||
Ending Balance, Shares at Dec. 31, 2017 | 7,115,000 | |||||
Ending Balance, Amount at Dec. 31, 2017 | $ 712 | (670) | 2,142 | (44,988) | (42,804) | |
Cancellation of shares, Shares | (600,000) | |||||
Cancellation of shares, Amount | $ (60) | 60 | ||||
Net Loss | (72,951) | (72,951) | ||||
Ending Balance, Shares at Dec. 31, 2018 | 6,515,000 | |||||
Ending Balance, Amount at Dec. 31, 2018 | $ 652 | $ (670) | $ 2,202 | $ (117,939) | $ (115,755) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (72,951) | $ (38,219) |
Non-cash adjustments to reconcile net loss to net cash used in operating activities: | ||
Changes in Operating Assets and Liabilities | ||
Accrued liabilities | (14,463) | 13,180 |
Net cash used in operating activities | (87,414) | (25,039) |
NET CASH FROM INVESTING ACTIVITIES | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Notes payable - related party | 87,246 | 24,896 |
Proceeds from issuance of common stock | ||
Net cash provided by financing activities | 87,246 | 24,896 |
Net decrease in cash & cash equivalents | (168) | (143) |
Cash & cash equivalents, beginning of period | 272 | 415 |
Cash & cash equivalents, end of period | 104 | 272 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Stock cancelled by former owners | 60 | |
Supplemental cash flow information: | ||
Income tax paid | ||
Interest paid |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 1- NATURE OF OPERATIONS | NATURE OF OPERATIONS Diverse Development Group, Inc. (“Diverse” or “the Company”) was incorporated on April 4, 2016 under the laws of the state of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company has been in the developmental stage since inception. Subsequent to a change in control effected December 17, 2016, the Company’s primary objective is to buy, sell and develop real estate assets located within the United States. However unlike traditional real estate investment groups, the Company intends to operate using cash and little debt. Should the Company at any time require debt financing to fulfill its business plan, the Company intends to use short-term loans only. The Company may develop its business plan through operations or through a business combination with one or more operating entities. Any such combination would take the form of a merger, stock-for-stock exchange or stock-for-assets exchange and be structured to be within the definition of a tax-free reorganization under Section 351 or Section 368 of the Internal Revenue Code of 1986, as amended. No assurances can be given that the Company will be successful in locating or negotiating with any operating company. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | USE OF ESTIMATES The preparation of financial statements in conformity with 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 periods. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less. The cash and cash equivalents were $104 and $272 as of December 31, 2018 and 2017, respectively. CONCENTRATION OF RISK Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of December 31, 2018 and 2017, respectively. INCOME TAXES Under ASC 740, “Income Taxes,” deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2018 and 2017, there were no deferred taxes due to the uncertainty of the realization of net operating loss carry forward prior to expiration. LOSS PER COMMON SHARE Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity, unless their effect would be antidilutive. As of December 31, 2018 and 2017, there were no outstanding dilutive securities. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The Three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. RECENT ACCOUNTING PRONOUNCEMENTS The Company has evaluated recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the United States Securities and Exchange Commission, and determined that they do not have a material impact on the Company’s financial statements. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 3 - GOING CONCERN | The Company has not yet generated any revenue since inception to date and has sustained net losses of $72,951 and $38,219 for the years ended December 31, 2018 and 2017, respectively. The Company had working capital deficits of $115,755 and $42,804 as of December 31, 2018 and 2017, respectively. The Company had an accumulated deficit of $117,939 and $44,988 as of December 31, 2018 and 2017, respectively. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations and/or obtain additional financing from its members or other sources, as may be required. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern; however, the above condition raises substantial doubt about the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. In order to maintain its current level of operations, the Company will require additional working capital from either cash flow from operations or from the sale of its equity. However, the Company currently has no commitments from any third parties for the purchase of its equity. If the Company is unable to acquire additional working capital, it will be required to significantly reduce its current level of operations. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 4 - ACCRUED LIABILITIES | The Company had accrued liabilities of $3,717 and $18,180 as of December 31, 2018 and 2017, respectively, which consist primarily of professional fees. This balance includes interest on notes payable-related party (Note 5) of $2,716 and $0 for the years ended December 31, 2018 and 2017, respectively. |
NOTES PAYABLE - RELATED PARTY
NOTES PAYABLE - RELATED PARTY | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 5 - NOTES PAYABLE - RELATED PARTY | At December 31, 2017, the Company had accumulated $24,896 in advances received from a related party to pay certain professional fees related to Company governance and compliance with its registration with the SEC. The terms of the note are due on demand at an interest rate of 6% per annum. During the year ended December 31, 2018, the related party advanced an additional $87,246 to the Company, resulting in a note payable balance of $112,142 as of December 31, 2018. The Company incurred $2,716 and $416 of interest expense for the years ended December 31, 2018 and 2017, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 6 - INCOME TAXES | At December 31, 2018 and 2017, the Company has available unused net operating loss carryforwards of approximately $24,767 and $9,447, respectively, which may be applied against future taxable income and which expire in various years from 2024 through 2037. The amount of and ultimate realization of the benefits from the net operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the net operating loss carryforwards, the Company has established a valuation allowance equal to the tax effect of the net operating loss carryforwards and, therefore, no deferred tax asset has been recognized for the net operating loss carryforwards. The net deferred tax assets are approximately $24,767 and $9,447 as of December 31, 2018 and 2017, respectively, with an offsetting valuation allowance of the same amount resulting in a change in the valuation allowance of approximately $(15,320) during the year ended December 31, 2018. The Company has evaluated Staff Accounting Bulletin No. 118 regarding the impact of the decreased tax rates of the Tax Cuts & Jobs Act. The schedules below reflect the Federal tax provision, deferred tax asset and valuation allowance using the new rates adjusted in the period of enactment. Deferred tax assets and the valuation account are as follows: Deferred Tax Asset 12/31/2018 12/31/2017 NOL (at 21%) $ 24,767 $ 9,447 Valuation allowance (24,767 ) (9,447 ) $ - $ - A reconciliation of amounts obtained by applying the indicated Federal tax rates to pre-tax income to income tax benefit is as follows: 12/31/2018 12/31/2017 Federal tax benefit (21%) $ 15,320 $ 8,026 Change in valuation allowance (15,320 ) (7,146 ) Effect on rate change on deferred tax asset - (880 ) $ - $ - The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations and in the provision for income taxes. As of December 31, 2018 and 2017 the Company had no accrued interest or penalties related to uncertain tax positions. The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended December 31, 2017 and 2016. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 7 - COMMON STOCK | The Company is authorized to issue 100,000,000 shares of common stock and 20,000,000 shares of preferred stock. On November 26, 2018 the Company retired 600,000 shares bringing common shares outstanding to a total of 6,515,000 and 7,115,000 shares of outstanding as of December 31, 2018 and 2017, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 8 - SUBSEQUENT EVENTS | The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued, and has determined that there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.” |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies | |
USE OF ESTIMATES | The preparation of financial statements in conformity with 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 periods. Actual results could differ from those estimates. |
CASH AND CASH EQUIVALENTS | Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less. The cash and cash equivalents were $104 and $272 as of December 31, 2018 and 2017, respectively. |
CONCENTRATION OF RISK | Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of December 31, 2018 and 2017, respectively. |
INCOME TAXES | Under ASC 740, “Income Taxes,” deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2018 and 2017, there were no deferred taxes due to the uncertainty of the realization of net operating loss carry forward prior to expiration. |
LOSS PER COMMON SHARE | Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity, unless their effect would be antidilutive. As of December 31, 2018 and 2017, there were no outstanding dilutive securities. |
FAIR VALUE OF FINANCIAL INSTRUMENTS | The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The Three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. |
RECENT ACCOUNTING PRONOUNCEMENTS | The Company has evaluated recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the United States Securities and Exchange Commission, and determined that they do not have a material impact on the Company’s financial statements. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Deferred tax assets | Deferred Tax Asset 12/31/2018 12/31/2017 NOL (at 21%) $ 24,767 $ 9,447 Valuation allowance (24,767 ) (9,447 ) $ - $ - |
Reconciliation of applying Federal tax rates | 12/31/2018 12/31/2017 Federal tax benefit (21%) $ 15,320 $ 8,026 Change in valuation allowance (15,320 ) (7,146 ) Effect on rate change on deferred tax asset - (880 ) $ - $ - |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) | 12 Months Ended |
Dec. 31, 2018 | |
Nature Of Operations | |
State of incorporation | Delaware |
Date of incorporation | Apr. 4, 2016 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Summary Of Significant Accounting Policies Details Narrative Abstract | ||
Cash & cash equivalents | $ 104 | $ 272 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Going Concern | ||
Net loss | $ (72,951) | $ (38,219) |
Accumulated deficit | (117,939) | (44,988) |
Working capital deficit | $ (115,755) | $ (42,804) |
ACCRUED LIABILITIES (Details Na
ACCRUED LIABILITIES (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities | ||
Accrued liabilities | $ 3,717 | $ 18,180 |
Accrued interest | $ 2,716 | $ 0 |
NOTES PAYABLE - RELATED PARTY (
NOTES PAYABLE - RELATED PARTY (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Notes Payable - Related Party | ||
Interest rate | 6.00% | |
Note payable - related party | $ 112,142 | $ 24,896 |
Interest expense | 2,716 | 416 |
Additional advance from related party | $ 87,246 | $ 24,896 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Asset | ||
NOL (at 21%) | $ 24,767 | $ 9,447 |
Valuation allowance | (24,767) | (9,447) |
Net deferred tax assets and valuation |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes Details 1Abstract | ||
Federal tax benefit (21%) | $ 15,320 | $ 8,026 |
Change in valuation allowance | (15,320) | (7,146) |
Effect on rate change on deferred tax asset | (880) | |
Net effect in federal tax rates changes |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes Details Narrative Abstract | ||
Net operating loss carryforward | $ 24,767 | $ 9,447 |
Taxable income description | Expire in various years from 2024 through 2037. | |
Net deferred tax assets | $ 24,767 | $ 9,447 |
Unrecognized tax benefits description | Will significantly increase or decrease within the next 12 months. |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock Details Narrative Abstract | ||
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 6,515,000 | 7,115,000 |
Common stock, outstanding shares | 6,515,000 | 7,115,000 |
Preferred stock, authorized shares | 20,000,000 | 20,000,000 |
Shares, Retired | 600,000 |