Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Oct. 02, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Reliant Holdings, Inc. | |
Entity Central Index Key | 1,682,265 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,585,000 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash | $ 98,739 | $ 42,673 |
Accounts receivable, net | 1,520 | 9,284 |
Accounts receivable, related party | 10,117 | |
Federal income tax receivable | 10,000 | 10,000 |
Earnings in excess of billings and estimated earnings on uncompleted contracts | 357 | |
Total current assets | 110,259 | 72,431 |
Equipment, net of accumulated depreciation of $10,649 and $7,262 at June 30, 2017 and December 31, 2016, respectively | 24,277 | 27,664 |
Total Assets | 134,536 | 100,095 |
Current Liabilities | ||
Accounts payable and accrued expenses | 71,871 | 40,754 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 94,989 | 38,494 |
Related party advances | 5,000 | |
Current portion of long term note payable | 5,613 | 5,492 |
Total current liabilities | 177,473 | 84,740 |
Long-term note payable | 16,218 | 18,984 |
Total Liabilities | 193,691 | 103,724 |
Commitments and contingencies | ||
Stockholders' Equity (Deficit) | ||
Preferred stock, ($0.001 par value, 5,000,000 shares authorized, zero issued and outstanding as of June 30, 2017 and December 31, 2016, respectively) | ||
Common stock, ($.001 par value, 70,000,000 shares authorized, 14,585,000 issued and outstanding as of June 30, 2017 and December 31, 2016) | 14,585 | 14,585 |
Additional paid-in capital | 43,365 | 43,365 |
Accumulated deficit | (117,105) | (61,579) |
Total Stockholders' Equity (Deficit) | (59,155) | (3,629) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 134,536 | $ 100,095 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ .001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 14,585,000 | 14,585,000 |
Common stock, shares outstanding | 14,585,000 | 14,585,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 343,301 | $ 746,992 | $ 587,002 | $ 1,274,365 |
Cost of goods sold | (216,477) | (541,876) | (391,227) | (972,766) |
Gross Margin | 126,824 | 205,116 | 195,775 | 301,599 |
General and administrative expenses | 126,744 | 149,027 | 250,725 | 335,684 |
Total Operating Expenses | (126,744) | (149,027) | (250,725) | (335,684) |
Income (Loss) From Operations | 80 | 56,089 | (54,950) | (34,085) |
Other income / (expense) | ||||
Interest income | 3 | 12 | 3 | 29 |
Interest expense | (617) | (579) | (942) | |
Total Other Income (expense) | 3 | (605) | (576) | (913) |
Income (Loss) Before Income Taxes | 83 | 55,484 | (55,526) | (34,998) |
Provision for Income Tax Benefit | ||||
Net Income (Loss) | $ 83 | $ 55,484 | $ (55,526) | $ (34,998) |
Net Income (Loss) Per Common Share - Basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Common Shares Outstanding - Basic and Diluted | 14,585,000 | 15,172,088 | 14,585,000 | 14,874,368 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows from Operating Activities | ||
Net loss | $ (55,526) | $ (34,998) |
Adjustments to reconcile net loss to net cash provided by {used in) operating activities: | ||
Depreciation | 3,387 | 2,192 |
Accounts receivable, related party converted to compensation | 10,117 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 7,764 | (20,183) |
Federal income tax receivable | (10,000) | |
Costs in excess of billings | 357 | (59,455) |
Billings in excess of costs and estimated earnings on uncompleted contracts | 56,495 | 7,555 |
Accounts payable and accrued expenses | 31,117 | 21,100 |
Net Cash Provided by (Used in) Operating Activities | 53,711 | (93,789) |
Cash Flows from Financing Activities | ||
Payments on note payable | (2,645) | (6,740) |
Proceeds on related party advances | 5,000 | |
Proceeds from sale of common stock, net | 41,000 | |
Net Cash Provided By Financing Activities | 2,355 | 34,260 |
Net change in cash | 56,066 | (59,529) |
Cash - Beginning of Period | 42,673 | 186,000 |
Cash - End of Period | 98,739 | 126,471 |
Supplemental Disclosures | ||
Interest paid | 508 | 942 |
Income taxes paid | 10,000 | |
Non-cash investing and financing activities | ||
Note payable for purchase of truck | $ 33,874 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Summary of Significant Accounting Policies | Note 1. The Company and Summary of Significant Accounting Policies The Company Reliant Holdings, Inc. (the “ Company Reliant Pools Basis of Presentation The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“ US GAAP The consolidated financial statements and related disclosures as of June 30, 2017 and for the three and six months ended June 30, 2017 and 2016 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“ SEC Use of Estimates The preparation of financial statements in conformity with U.S. 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. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from estimates. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all short-term investments purchased with original maturities of three months or less at the date of purchase to be cash equivalents. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income taxes and liabilities are determined based on the difference between financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. Revenue Recognition Revenues under long-term contracts are accounted for under the percentage-of-completion method of accounting. Under the percentage-of-completion method, the Company estimates profit as the difference between total estimated revenue and total estimated cost of a contract and recognizes that profit over the contract term based on either input (e.g., costs incurred under the cost-to-cost method) or output (e.g., units delivered under the units-of-delivery method), as appropriate under the circumstances. Revenues from the Company’s construction services are performed under fixed-price, time-and-equipment, time-and-materials, unit-price, and cost-plus fee contracts. For fixed-price contracts, the Company uses the ratio of cost incurred to date on the contract (excluding uninstalled direct materials) to management’s estimate of the contract’s total cost, to determine the percentage of completion on each contract. This method is used as management considers expended costs to be the best available measure of progression of these contracts. Contract costs includes all direct costs on contracts, including labor and material, subcontractor costs and those indirect costs related to contract performance, such as supplies, fuel, tool repairs and depreciation. The Company recognizes revenues from construction services with fees based on time-and-materials, unit prices, or cost-plus fees as the services are performed and amounts are earned. Contract costs incurred to date and expected total contract costs are continuously monitored during the term of the contract. Changes in job performance, job conditions and final contract settlements are factors that influence management’s assessment of total contract value and the total estimated costs to complete those contracts and therefore, the Company’s profit recognition. These changes, which include contracts with estimated costs in excess of estimated revenues, are recognized in contract costs in the period in which the revisions are determined. At the point the Company anticipates a loss on a contract, the Company estimates the ultimate loss through completion and recognizes that loss in the period in which the possible loss was identified. If contracts include contract incentives or bonuses, they are included in estimated contract revenues only when the achievement of such incentives or bonuses is reasonably certain. A change order is a modification to a contract that changes the provisions of the contract, typically resulting from changes in scope, specifications, design, manner of performance, facilities, equipment, materials, sites, or period of completion of the work under the contract. A claim is an amount in excess of the agreed-upon contract price that the Company seeks to collect from its clients or others for client-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes. Costs related to change orders and claims are recognized when incurred. Revenue from a change order is included in total estimated contract revenue when it is probable that the change order will result in an addition to contract value and can be reliably estimated. Revenue from a claim is included in total estimated contract revenues, only to the extent that contract costs related to the claim have been incurred, when it is probable that the claim will result in an addition to contract value which can be reliably estimated. No profit is recognized on a claim until final settlement occurs. The Company recognizes revenue from the design and installation of swimming pools. Accounts Receivable and Allowances The Company does not charge interest to its customers and carries its customer receivables at their face amounts, less an allowance for doubtful accounts. Included in accounts receivable are balances billed to customers pursuant to retainage provisions in certain contracts that are due upon completion of the contract and acceptance by the customer, or earlier as provided by the contract. Based on the Company’s experience in recent years, the majority of customer balances at each balance sheet date are collected within twelve months. As is common practice in the industry, the Company classifies all accounts receivable, including retainage, as current assets. The contracting cycle for certain long-term contracts may extend beyond one year, and accordingly, collection of retainage on those contracts may extend beyond one year. The Company grants trade credit, on a non-collateralized basis (with the exception of lien rights against the property in certain cases), to its customers and is subject to potential credit risk related to changes in business and overall economic activity. The Company analyzes specific accounts receivable balances, historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In the event that a customer balance is deemed to be uncollectible, the account balance is written-off against the allowance for doubtful accounts. Classification of Construction Contract-related Assets and Liabilities Costs and estimated earnings in excess of billings on uncompleted contracts are presented as a current asset in the accompanying consolidated balance sheets, and billings in excess of costs and estimated earnings on uncompleted contracts are presented as a current liability in the accompanying consolidated balance sheets. The Company’s contracts vary in duration, with the duration of some larger contracts exceeding one year. Consistent with industry practices, the Company includes the amounts realizable and payable under contracts, which may extend beyond one year, in current assets and current liabilities. The vast majority of these balances are settled within one year. Equipment Equipment, consisting mainly of a truck, is stated at cost. The Company depreciates the cost of equipment using the straight-line method over the estimated useful lives of the assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations for the period. The cost of maintenance and repairs is charged to operations as incurred; significant renewals improvements are capitalized. Depreciation expense was approximately $3,400 and $2,200 during the six months ending June 30, 2017 and 2016, respectively. The estimated useful life of the truck is five years. Fair Value of Financial Instruments Under Financial Accounting Standards Board (“ FASB ASC Fair Value Measurements and Disclosures” Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy prioritizes the inputs used in measuring 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 unobservable inputs (level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts of cash, accounts receivable, trade accounts payable, and other accrued expenses approximate fair value because of the short maturity of those instruments. Earnings Per Share In accordance with accounting guidance now codified as ASC Topic 260, “Earnings per Share,” New Accounting Pronouncements Management does not expect adoption of recently issued but not yet effective pronouncements to have a material impact on the Company’s financial statements. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | Note 2. Accounts Receivable Accounts receivable consisted of the following: June 30, December 31, Contract receivables $ 1,520 $ 9,284 Less: Allowance for doubtful accounts — — $ 1,520 $ 9,284 The Company recognized bad debt expense of $0 during the six months ending June 30, 2017 and 2016, respectively. |
Contracts in Process
Contracts in Process | 6 Months Ended |
Jun. 30, 2017 | |
Contractors [Abstract] | |
Contracts in Process | Note 3. Contracts in Process The net asset (liability) position for contracts in process consisted of the following: June 30, December 31, Costs on uncompleted contracts $ 47,211 $ 376,622 Estimated earnings 16,587 147,268 63,798 523,890 Less: Progress billings (158,787 ) (562,027 ) $ (94,989 ) $ (38,137 ) The net asset (liability) position for contracts in process is included in the accompanying consolidated balance sheets as follows: June 30, December 31, Costs and estimated earnings in excess of billings on uncompleted contracts $ — $ 357 Billings in excess of costs and estimated earnings on uncompleted contracts (94,989 ) (38,494 ) $ (94,989 ) $ (38,137 ) |
Equity
Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Equity | Note 4. Equity From January 2016 to September 2016, the Company sold 885,000 shares of restricted common stock for $44,250, or $0.05 per share in a private offering pursuant to a private placement memorandum. Purchasers in the offering include Lilia Chavez, the mother of Michael Chavez, the Company’s President and sole director (10,000 shares for $500), Alexander Spohn, the adult son of Becky Spohn, the Company’s former Controller (5,000 shares for $250), and Phyllis Laws, the mother of Becky Spohn, the Company’s former Controller (5,000 shares for $250). In September 2016, the Company discovered that the investors in the January 2016 to September 2016 offering may not have been provided all information and materials (including current audited financial statements), as is required under the Securities Act of 1933, as amended (the “ Securities Act Nevertheless, based on the above, the Company offered the January 2016 to September 2016 purchasers of our common stock the right to rescind their previous common stock acquisitions and receive, in exchange for any shares relinquished to the Company, a payment equal to their original purchase price plus interest at the applicable statutory rate in the state in which they reside. The rescission offer expired at 5:00 pm (CST) on October 26, 2016. None of the prior purchasers opted to rescind their prior purchases in connection with the rescission offer. During the first quarter of fiscal 2017, the Company learned that Michael Chavez, President and sole director, was barred from association with any FINRA member in any capacity. Mr. Chavez similarly became aware of the FINRA bar at the same time. Pursuant to Rule 506(d), Rule 506 of the Securities Act, is not available for a sale of securities if among other persons, any director or executive officer of an issuer has been subject to certain disqualifying events after September 23, 2013, including suspension or expulsion from membership in a self-regulatory organization (SRO), such as FINRA. However, in the event the disqualifying event occurred prior to September 23, 2013, the issuer is not prohibited from relying on Rule 506, provided that pursuant to Rule 506(e) of the Securities Act, an issuer is required to furnish to each purchaser, a reasonable time prior to sale, a description in writing of any matters that would have triggered disqualification under Rule 506(d)(1), but occurred before September 23, 2013. As Mr. Chavez’s FINRA bar, which occurred prior to September 23, 2013, constituted a disqualifying event under Rule 506(d), the Company was required to furnish to each purchaser of shares of the Company, a reasonable time prior to sale, a description in writing of such event. The Company did not do that, because as described above, the Company and Mr. Chavez only recently became aware of the FINRA bar. Notwithstanding the fact that the Company was not aware of Mr. Chavez’s FINRA bar, the Company determined that such failure to provide such information may prohibit the Company from relying on a Rule 506 exemption for the prior issuances and sales of shares. We believe that all such transactions still complied with, and were exempt from registration under Section 4(a)(2) of the Securities Act, because the recipients acquired the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof; the securities were offered without any general solicitation by us or our representatives; no underwriters or agents were involved in the foregoing issuances and we paid no underwriting discounts or commissions; the securities sold/issued were subject to transfer restrictions, and the certificates evidencing the securities (or book entry issuances) contain an appropriate legend stating that such securities have not been registered under the Securities Act and may not be offered or sold absent registration or pursuant to an exemption therefrom; and the securities were not registered under the Securities Act and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act and any applicable state securities laws. Nevertheless, management determined that the Company would offer rescission to all of its shareholders in April 2017. In connection therewith, in April 2017, we offered every shareholder of our common stock the right to rescind their previous purchases and acquisitions and to receive, in exchange for any shares relinquished to us, a payment equal to their original purchase price or consideration provided, plus interest at the applicable statutory rate in the state in which they reside. The rescission offer expired at 5:00 pm (CST) on April 29, 2017. None of our shareholders opted to rescind their prior purchase/acquisitions in connection with the rescission offer. The federal securities laws and certain state securities laws do not expressly provide that a rescission offer will terminate a purchaser’s right to rescind a sale of securities that was not registered under the relevant securities laws as required. Accordingly, the Company may continue to be potentially liable under certain securities laws for the offer and sale of the shares sold and issued between May 2014 and September 2016, totaling $57,950 of securities in aggregate, along with statutory interest on such shares, even after the Company completed the rescission offers. This amount is recorded in equity in the accompanying June 30, 2017 and December 31, 2016 balance sheets. This will be evaluated at each reporting period for reclassification to a liability if a rescission request is made. During the year ended December 31, 2016, the Company sold 885,000 shares of common stock for $44,250 in cash. In May 2014, the Company sold 2,900,000 shares of common stock for $2,900 and subscription receivables of $2,900. In January 2015, the Company collected $1,700 of the subscription receivables. In January 2016, the Company collected $500 of the subscription receivables. Effective September 30, 2016, the Company cancelled 700,000 of the shares subscribed on May 31, 2014 for non-payment. |
Concentration of Risk
Concentration of Risk | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Note 5. Concentration of Risk The Company had gross revenue of $587,002 and $1,274,365 for the six months ended June 30, 2017 and 2016, respectively. The Company had 5 customers representing more than 10% of gross revenue, and combined 75% of revenue for the six months ended June 30, 2017 and 1 customer representing approximately 12% of gross revenues for the three months ended June 30, 2016. |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 6. Commitments The Company leases approximately 1,000 square feet of office space in Austin, Texas. The lease expires in September 2017 with a monthly rent of $1,695. Lease expense was $10,442 and $9,600 for the six months ended June 30, 2017 and 2016, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7. Related Party Transactions During the year ended December 31, 2016, the Company paid for $10,117 of raw materials associated with the construction of the personal swimming pool of Michael Chavez, the Company’s Chief Executive Officer and sole director. Mr. Chavez had not yet reimbursed the Company for the materials purchased as of December 31, 2016, which is shown as accounts receivable, related party, as of December 31, 2016. During the six months ended June 30, 2017, the Company paid for $5,064 of raw materials associated with the construction of the personal swimming pool of Michael Chavez. During the six months ended June 30, 2017, Mr. Chavez advanced the Company $2,000 which was applied to the amount receivable from Mr. Chavez. Effective May 18, 2017, the Company’s Board of Directors approved a resolution authorizing the Company to classify the cost of the construction of the personal pool of Michael Chavez, CEO, as compensation resulting in such $13,181 amount being reclassified. During the quarter ending June 30, 2017 Mr. Chavez advanced $5,000 to the Company. The advance is due on demand, unsecured and has no stated interest rate. During the six months ended June 30, 2017 and 2016, the Company paid a company owned by a shareholder $1,890 and $5,927 respectively, for tile and masonry services. |
Long Term Debt
Long Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Note 8. Long Term Debt Long-term debt at: June 30, December 31, Term note with a bank secured by truck, payable in monthly installments of $537, including interest at 4.35% through February 11, 2021. $ 21,831 $ 24,476 Total long-term debt 21,831 24,476 Less: current portion (5,613 ) (5,492 ) Long-term debt, net of current portion $ 16,218 $ 18,984 Future maturities of long-term debt are as follows: Year Ending December 31, 2017 $ 2,847 2018 5,736 2019 5,990 2020 6,256 2021 1,002 Total $ 21,831 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes The Company estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which it operates. Statutory tax rate changes and other significant or unusual items are recognized as discrete items in the quarter in which they occur. The Company recorded no income tax expense for the six months ended June 30, 2017 because the Company expects to incur a tax loss in the current year. Similarly, no federal income tax expense was recognized for the six months ended June 30, 2016 for this same reason. The Company had a net deferred tax asset related to federal net operating loss carryforwards of approximately $180,000 and $114,000 on June 30, 2017 and December 31, 2016, respectively. The federal net operating loss carryforward will begin to expire in 2034. Realization of the deferred tax asset is dependent, in part, on generating sufficient taxable income prior to expiration of the loss carryforwards. The Company has placed a 100% valuation allowance against the net deferred tax asset because future realization of these assets is not assured. |
The Company and Summary of Si15
The Company and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“ US GAAP The consolidated financial statements and related disclosures as of June 30, 2017 and for the three and six months ended June 30, 2017 and 2016 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“ SEC |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all short-term investments purchased with original maturities of three months or less at the date of purchase to be cash equivalents. |
Income Taxes | Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income taxes and liabilities are determined based on the difference between financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. |
Revenue Recognition | Revenue Recognition Revenues under long-term contracts are accounted for under the percentage-of-completion method of accounting. Under the percentage-of-completion method, the Company estimates profit as the difference between total estimated revenue and total estimated cost of a contract and recognizes that profit over the contract term based on either input (e.g., costs incurred under the cost-to-cost method) or output (e.g., units delivered under the units-of-delivery method), as appropriate under the circumstances. Revenues from the Company’s construction services are performed under fixed-price, time-and-equipment, time-and-materials, unit-price, and cost-plus fee contracts. For fixed-price contracts, the Company uses the ratio of cost incurred to date on the contract (excluding uninstalled direct materials) to management’s estimate of the contract’s total cost, to determine the percentage of completion on each contract. This method is used as management considers expended costs to be the best available measure of progression of these contracts. Contract costs includes all direct costs on contracts, including labor and material, subcontractor costs and those indirect costs related to contract performance, such as supplies, fuel, tool repairs and depreciation. The Company recognizes revenues from construction services with fees based on time-and-materials, unit prices, or cost-plus fees as the services are performed and amounts are earned. Contract costs incurred to date and expected total contract costs are continuously monitored during the term of the contract. Changes in job performance, job conditions and final contract settlements are factors that influence management’s assessment of total contract value and the total estimated costs to complete those contracts and therefore, the Company’s profit recognition. These changes, which include contracts with estimated costs in excess of estimated revenues, are recognized in contract costs in the period in which the revisions are determined. At the point the Company anticipates a loss on a contract, the Company estimates the ultimate loss through completion and recognizes that loss in the period in which the possible loss was identified. If contracts include contract incentives or bonuses, they are included in estimated contract revenues only when the achievement of such incentives or bonuses is reasonably certain. A change order is a modification to a contract that changes the provisions of the contract, typically resulting from changes in scope, specifications, design, manner of performance, facilities, equipment, materials, sites, or period of completion of the work under the contract. A claim is an amount in excess of the agreed-upon contract price that the Company seeks to collect from its clients or others for client-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes. Costs related to change orders and claims are recognized when incurred. Revenue from a change order is included in total estimated contract revenue when it is probable that the change order will result in an addition to contract value and can be reliably estimated. Revenue from a claim is included in total estimated contract revenues, only to the extent that contract costs related to the claim have been incurred, when it is probable that the claim will result in an addition to contract value which can be reliably estimated. No profit is recognized on a claim until final settlement occurs. The Company recognizes revenue from the design and installation of swimming pools. |
Accounts Receivable and Allowances | Accounts Receivable and Allowances The Company does not charge interest to its customers and carries its customer receivables at their face amounts, less an allowance for doubtful accounts. Included in accounts receivable are balances billed to customers pursuant to retainage provisions in certain contracts that are due upon completion of the contract and acceptance by the customer, or earlier as provided by the contract. Based on the Company’s experience in recent years, the majority of customer balances at each balance sheet date are collected within twelve months. As is common practice in the industry, the Company classifies all accounts receivable, including retainage, as current assets. The contracting cycle for certain long-term contracts may extend beyond one year, and accordingly, collection of retainage on those contracts may extend beyond one year. The Company grants trade credit, on a non-collateralized basis (with the exception of lien rights against the property in certain cases), to its customers and is subject to potential credit risk related to changes in business and overall economic activity. The Company analyzes specific accounts receivable balances, historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In the event that a customer balance is deemed to be uncollectible, the account balance is written-off against the allowance for doubtful accounts. |
Classification of Construction Contract-related Assets and Liabilities | Classification of Construction Contract-related Assets and Liabilities Costs and estimated earnings in excess of billings on uncompleted contracts are presented as a current asset in the accompanying consolidated balance sheets, and billings in excess of costs and estimated earnings on uncompleted contracts are presented as a current liability in the accompanying consolidated balance sheets. The Company’s contracts vary in duration, with the duration of some larger contracts exceeding one year. Consistent with industry practices, the Company includes the amounts realizable and payable under contracts, which may extend beyond one year, in current assets and current liabilities. The vast majority of these balances are settled within one year. |
Equipment | Equipment Equipment, consisting mainly of a truck, is stated at cost. The Company depreciates the cost of equipment using the straight-line method over the estimated useful lives of the assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations for the period. The cost of maintenance and repairs is charged to operations as incurred; significant renewals improvements are capitalized. Depreciation expense was approximately $3,400 and $2,200 during the six months ending June 30, 2017 and 2016, respectively. The estimated useful life of the truck is five years. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Under Financial Accounting Standards Board (“ FASB ASC Fair Value Measurements and Disclosures” Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy prioritizes the inputs used in measuring 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 unobservable inputs (level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts of cash, accounts receivable, trade accounts payable, and other accrued expenses approximate fair value because of the short maturity of those instruments. |
Earnings Per Share | Earnings Per Share In accordance with accounting guidance now codified as ASC Topic 260, “Earnings per Share,” |
New Accounting Pronouncements | New Accounting Pronouncements Management does not expect adoption of recently issued but not yet effective pronouncements to have a material impact on the Company’s financial statements. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable consisted of the following: June 30, December 31, Contract receivables $ 1,520 $ 9,284 Less: Allowance for doubtful accounts — — $ 1,520 $ 9,284 |
Contracts in Process (Tables)
Contracts in Process (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Contractors [Abstract] | |
Schedule of net asset (liability) position for contracts in process | The net asset (liability) position for contracts in process consisted of the following: June 30, December 31, Costs on uncompleted contracts $ 47,211 $ 376,622 Estimated earnings 16,587 147,268 63,798 523,890 Less: Progress billings (158,787 ) (562,027 ) $ (94,989 ) $ (38,137 ) The net asset (liability) position for contracts in process is included in the accompanying consolidated balance sheets as follows: June 30, December 31, Costs and estimated earnings in excess of billings on uncompleted contracts $ — $ 357 Billings in excess of costs and estimated earnings on uncompleted contracts (94,989 ) (38,494 ) $ (94,989 ) $ (38,137 ) |
Long Term Debt (Tables)
Long Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | Long-term debt at: June 30, December 31, Term note with a bank secured by truck, payable in monthly installments of $537, including interest at 4.35% through February 11, 2021. $ 21,831 $ 24,476 Total long-term debt 21,831 24,476 Less: current portion (5,613 ) (5,492 ) Long-term debt, net of current portion $ 16,218 $ 18,984 |
Schedule of maturities of long-term debt | Future maturities of long-term debt are as follows: Year Ending December 31, 2017 $ 2,847 2018 5,736 2019 5,990 2020 6,256 2021 1,002 Total $ 21,831 |
The Company and Summary of Si19
The Company and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Concentration Risk [Line Items] | ||
Depreciation | $ 3,400 | $ 2,200 |
Trucks [Member] | ||
Concentration Risk [Line Items] | ||
Estimated useful life | 5 years |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Contract receivables | $ 1,520 | $ 9,284 |
Less: Allowance for doubtful accounts | ||
[us-gaap:AccountsReceivableNet] | $ 1,520 | $ 9,284 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Receivables [Abstract] | |
Bad debt expenses | $ 0 |
Contracts in Process (Details)
Contracts in Process (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Contractors [Abstract] | ||
Costs on uncompleted contracts | $ 47,211 | $ 376,622 |
Estimated earnings | 16,587 | 147,268 |
Receivable | 63,798 | 523,890 |
Less: Progress billings | (158,787) | (562,027) |
Total | (94,989) | (38,137) |
Earnings in excess of billings and estimated earnings on uncompleted contracts | 357 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | (94,989) | (38,494) |
Total | $ (94,989) | $ (38,137) |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 29 Months Ended | |||
Sep. 30, 2016 | Jan. 31, 2016 | Jan. 31, 2015 | May 31, 2014 | Sep. 30, 2016 | Sep. 30, 2016 | |
Sale of stock | $ 2,900 | $ 57,950 | ||||
Sale of stock, shares | 2,900,000 | |||||
Subscription receivable | $ 2,900 | |||||
Proceeds from subscriptions receivable | $ 500 | $ 1,700 | ||||
Number of subscribed shares cancelled, shares | 700,000 | |||||
Restricted Stock [Member] | ||||||
Sale of stock | $ 44,250 | |||||
Sale of stock, shares | 885,000 | |||||
Share price (per share) | $ .05 | $ .05 | $ .05 | |||
Restricted Stock [Member] | Lilia Chavez [Member] | ||||||
Sale of stock | $ 500 | |||||
Sale of stock, shares | 10,000 | |||||
Restricted Stock [Member] | Alexander Spohn [Member] | ||||||
Sale of stock | $ 250 | |||||
Sale of stock, shares | 5,000 | |||||
Restricted Stock [Member] | Phyllis Laws [Member] | ||||||
Sale of stock | $ 250 | |||||
Sale of stock, shares | 5,000 |
Concentration of Risk (Details
Concentration of Risk (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue | $ 343,301 | $ 746,992 | $ 587,002 | $ 1,274,365 |
Customer Concentration Risk [Member] | Gross Revenue [Member] | ||||
Concentration percentage | 12.00% | 75.00% | ||
Number of customers | 1 | 5 |
Commitments (Details Narrative)
Commitments (Details Narrative) | 6 Months Ended | |
Jun. 30, 2017USD ($)ft² | Jun. 30, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Office space (sq ft) | ft² | 1,000 | |
Monthly lease payment | $ 1,695 | |
Lease expense | $ 10,442 | $ 9,600 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Advance from related party | $ 5,000 | |||
Chief Executive Officer [Member] | ||||
Payment for raw materials | 5,064 | $ 10,117 | ||
Advance from related party | $ 5,000 | 2,000 | ||
Reclassification of related party cost to compensation expense | 13,181 | |||
Comapny owned by Shareholder [Member] | ||||
Payment for raw materials | $ 1,890 | $ 5,927 |
Long Term debt (Details)
Long Term debt (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Term note with a bank secured by truck, payable in monthly installments of $537, including interest at 4.35% through February 11, 2021. | $ 21,831 | $ 24,476 |
Total long-term debt | 21,831 | 24,476 |
Less: current portion | (5,613) | (5,492) |
Long-term debt, net of current portion | $ 16,218 | $ 18,984 |
Long Term debt (Details 1)
Long Term debt (Details 1) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Year Ending December 31, | ||
2,017 | $ 2,847 | |
2,018 | 5,736 | |
2,019 | 5,990 | |
2,020 | 6,256 | |
2,021 | 1,002 | |
Total | $ 21,831 | $ 24,476 |
Long Term Debt (Details Narrati
Long Term Debt (Details Narrative) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Debt Disclosure [Abstract] | |
Installment payment | $ 537 |
Interest rate | 4.35% |
Debt maturity date | Feb. 11, 2021 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset | $ 180,000 | $ 114,000 |
Valuation allowance (percent) | 100.00% |