Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 13, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FORGE INNOVATION DEVELOPMENT CORP. | |
Entity Central Index Key | 1,687,919 | |
Trading Symbol | FGNV | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 45,621,868 |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash | $ 625,586 | $ 824,777 |
Note receivable | 210,000 | 200,000 |
Prepaid expense | 6,064 | |
Account receivable | 3,000 | |
Total Current Assets | 844,650 | 1,024,777 |
NONCURRENT ASSET | ||
Note receivable | 110,000 | |
Rent deposit | 13,953 | |
Other assets | 4,285 | |
Property and equipment, net | 30,958 | |
Total Non-Current Assets | 49,196 | 110,000 |
TOTAL ASSETS | 893,846 | 1,134,777 |
CURRENT LIABILITIES: | ||
Accrued liability | 4,382 | |
Accrued liability - related party | 4,722 | |
Accrued consulting expenses | 300,000 | |
Total Current Liabilities | 9,104 | 300,000 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock ($.0001 par value, 50,000,000 shares authorized; no share issued and outstanding as of September 30, 2018 and December 31, 2017) | ||
Common stock ($.0001 par value, 200,000,000 shares authorized, 45,621,868 and 57,621,868 shares issued and outstanding as of September 30, 2018 and December 31, 2017) | 4,562 | 5,762 |
Additional Paid in Capital | 1,469,678 | 1,168,478 |
Accumulated Deficit | (589,498) | (339,463) |
Total Stockholders' Equity | 884,742 | 834,777 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 893,846 | $ 1,134,777 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares, issued | 45,621,868 | 57,621,868 |
Common stock, shares, outstanding | 45,621,868 | 57,621,868 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 9,000 | $ 6,000 | $ 27,000 | $ 6,000 |
Cost of revenue | ||||
Gross Profit | 9,000 | 6,000 | 27,000 | 6,000 |
Operating Expenses | ||||
Consulting Expenses | 38,000 | 64,750 | 94,000 | 247,250 |
Other Selling, General and Administrative Expenses | 79,700 | 23,116 | 186,685 | 44,831 |
Total Operating Expenses | 117,700 | 87,866 | 280,685 | 292,081 |
Interest income | 1,050 | 1,550 | 3,650 | 3,100 |
Net loss | $ (107,650) | $ (80,316) | $ (250,035) | $ (282,981) |
Net loss per common share, basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 45,621,868 | 57,771,868 | 53,871,868 | 57,632,088 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (250,035) | $ (282,981) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 243,750 | |
Depreciation expense | 3,865 | |
Change in operating assets and liabilities: | ||
Rent deposit | (13,953) | |
Prepaid expense | (6,064) | |
Other assets | (4,285) | |
Account receivable | (3,000) | |
Accrued liability | 4,382 | |
Net cash used in operating activities | (269,090) | (39,231) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Note receivable | 100,000 | |
Purchase of property and equipment | (34,823) | |
Net cash provided by investing activities | 65,177 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment to shareholder | (100) | |
Process from related party borrowings | 4,722 | |
Proceeds from issuance of common stock | 260,098 | |
Net cash provided by financing activities | 4,722 | 259,998 |
Net Increase in Cash | (199,191) | 220,767 |
Cash at beginning of period: | 824,777 | 655,170 |
Cash at end of period: | 625,586 | 875,937 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFOR | ||
Interest paid | ||
Income taxes paid | 800 | |
NONCASH TRANSACTION | ||
Common stock issued to settle with the accrued consulting expenses | $ 300,000 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Note 1 - Organization and Description of Business Forge Innovation Development Corp., or the “Company”, was initially incorporated in the State of Nevada on January 15, 2016 under the name of You-Go enterprises, LLC (the “Company Predecessor”). On November 3, 2016, the Company filed an amendment to its Articles of Incorporation in the State of Nevada to change the Company’s name to Forge Innovation Development Corp. Our current principle executive office is located at 17800 Castleton Street, Suite 583 City of Industry, CA 91748. Tel: 626-986-4566. The Company’s main business will be focus on real estate development, land purchasing and selling and property management. The Company’s common stock is currently traded on OTCQB under the symbol “FGNV”. Development Stage Company The Company is considered to be in the development stage as defined in Statement of Financial Accounting Standards (SFAS) ASC 915, “Development Stage Entities”. The Company has devoted substantially all of its efforts to establishing a new business and for which either of the following conditions exists: planned principal operations have not commenced; or the planned principal operations have commenced, but there has been no significant revenue there from. The Company’s first sales activity was in March 2017 by the sale of real estate in Desert Springs, California. There were revenue from real estate management services during the nine months ended September 30, 2018. There is no assurance of any future revenues. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. Property and equipment Property and equipment are carried at cost and are depreciated on a straight-line basis (after taking into account their respective estimated residual value) over 5 years, the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. During the nine months ended September 30, 2018 and 2017, the depreciation expense were $3,865 and $0, respectively. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (ASC 606)”. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The new standard was effective for us beginning January 1, 2018, with early adoption permitted. The Company elected to adopt the new standard effective January 1, 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company elected adopting the standard using the modified retrospective method. The Company has identified its revenue streams and assessed each for the impacts. (See Note 3 for additional information) In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees may not apply a full retrospective transition approach. The standard will be effective for us beginning January 1, 2019, with early adoption permitted. We plan to adopt the standard effective January 1, 2019. We anticipate this standard will have a material impact on our balance sheets. However, we do not expect adoption will have a material impact on our income statements. While we are continuing to assess potential impacts of the standard, we currently expect the most significant impact will be the recognition of ROU assets and lease liabilities for operating leases. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 3 - Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective approach, which applies the new standard to contracts that are not completed as of the date of adoption. Under the new standard, revenue is recognized upon transfer of control of promised goods and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods and services. The Company concluded that the adoption of the new standard requires an adjustment to increase the opening balance of retained earnings in an amount of $ 26,667 since control of real estate was transferred and profit on a real estate sale should be recognized under the new standard. Revenue streams that are scoped into ASU 2014-09 include: Property management services: The Company deals directly with prospects and tenants for the owners of properties, which mainly includes marketing property, collecting rent, handling maintenance, repairing issues and responding to tenant complaints. The Company recognizes revenue as earned on a monthly basis and has concluded this is appropriate under the new standard. Real estate sales: The Company accounts for the sale of real estate assets and any related gain recognition in accordance with the accounting guidance applicable to sales of real estate, which establishes standards for recognition of profit on all real estate sales transactions, other than retail land sales. The Company recognizes the sale, and associated gain or loss from the disposition, provided that the earnings process is complete, and the Company does not have significant continuing involvement. Subsequent to the adoption of the new standard, the Company may recognize a gain on a real estate disposition that previously did not qualify as a sale or for full profit recognition due to the timing of the transfer of control. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4 - Income Taxes The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the period presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. As of September 30, 2018 and 2017, the Company has incurred a net loss of $250,035 and $282,981 which resulted in a net operating loss for income tax purposes. NOLs begin expiring in 2036. The loss results in a deferred tax asset of approximately $110,000 and $ 117,290 at the effective tax rate of 21% for the period ended September 30, 2018 and 34% for the period ended September 30, 2017, respectively. The deferred tax asset has been off-set by an equal valuation allowance. |
Concentration of Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Note 5 - Concentration of Risk The Company maintains cash in one account within one local commercial bank located in Southern California. The standard insurance amount is $250,000 per depositors under the FDIC’s general deposit insurance rules. At September 30, 2018, uninsured cash balances in any domestic U.S. financial institution is $386,263. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6 - Related Party Transactions On February 1, 2017, the Company entered into a lease for office space (the “Office Lease”) with Glory Investment International Inc. (“Glory Investment”) whose CEO is an immediate family of the Company. Pursuant to the Office Lease, the Company subleased 200 square feet office from Glory Investment, and the monthly rent of $500 is due within first five business days of each month. The term of the Office Lease is renewable from year-to-year, and was terminated on March 31, 2018. We believe that the rent is at or below market for the space we are occupying. For the nine months ended and as of September 30, 2018 and 2017, rent expense was $250 and $4,000. During the nine months ended on September 30, 2018 and 2017, Mr. Patrick Liang, the President of the Company, loaned to the Company in the amount of $4,722 and $0 respectively, which is due on demand and bears no interest. |
Notes Receivable
Notes Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Notes Receivable | Note 7 -Notes Receivable On March 17, 2017, the Company entered into a Land Transaction Agreement with Steven Zhi Qin, a third party individual. Pursuant to the agreement, the Company sold the undeveloped land located in Desert Hot Spring with value of $283,333, to Steven Zhi Qin in exchange for a Promissory Note in the amount of $310,000. The Promissory Note is secured by a Deed of Trust to Chicago Title Company, a California corporation and an independent institution insuring the Company’s collection right, and was due on March 17, 2018, with interest at the rate of 2% per annum, payable in monthly installment of interest only, in the amount of $517. The Promissory Note also applies to Steven Zhi Qin’s personal property located at 1715 East Cortez Street, West Covina, CA 91791 as additional collateral, of which a lien will be recorded against said property. On March 6, 2018, the Company reached an agreement with Steven Zhi Qin, pursuant to which the Company agreed and approved the amendment of the Promissory Note to extend maturity date to March 17, 2019. Subsequently, the Company received payment of $100,000 and $100,000 on March 17 and October 30, 2018, respectively, and the remaining $110,000 will be due on March 17, 2019. For the nine months ended September 30, 2018 and 2017, total interest income was $3,650 and $3,100, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 - Commitments and Contingencies The Company follows ASC 450-20, Loss Contingencies, |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2018 | |
Common Stock [Abstract] | |
Common Stock | Note 9 – Common Stock On May 1, 2018, the Company was quoted on OTC Market with trading symbol FGNV. According to the Consulting Agreement with Speedlight Consulting Services Inc. dated on November 05, 2016, the Company issued 3,000,000 shares to Speedlight Consulting Services Inc. on May 9, 2018 to settle with the accrued consulting expenses. In order to meet the new OTCQB standards regarding the public float which became effective on May 20, 2018, the Registrant’s CEO and principal shareholder returned 15,000,000 shares of the Registrant’s common stock (the “Shares”) to the Registrant on June 29, 2018. One of the new standards was that every company trading on the OTCQB that has a market value of less than $2 million must have a freely traded “Public Float” of at least 10% of the company’s total issued and outstanding common stock. The Registrant does not have a market value of $2 million and prior to the return of the shares, its public float was approximately 8%. After the return of the Shares, the Registrant’s public float increased to approximately 10.5%. The 15,000,000 shares were delivered to the Registrant’s Transfer Agent with instructions to remove them from issued and outstanding status and add them to the authorized but not issued status. The above action was completed on June 29, 2018. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 10 - Subsequent Event The Company has evaluated subsequent events through the date these financial statements were issued and determined that there were no subsequent events or transactions that require recognition or disclosures in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. |
Property and equipment | Property and equipment Property and equipment are carried at cost and are depreciated on a straight-line basis (after taking into account their respective estimated residual value) over 5 years, the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. During the nine months ended September 30, 2018 and 2017, the depreciation expense were $3,865 and $0, respectively. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (ASC 606)”. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The new standard was effective for us beginning January 1, 2018, with early adoption permitted. The Company elected to adopt the new standard effective January 1, 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company elected adopting the standard using the modified retrospective method. The Company has identified its revenue streams and assessed each for the impacts. (See Note 3 for additional information) In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees may not apply a full retrospective transition approach. The standard will be effective for us beginning January 1, 2019, with early adoption permitted. We plan to adopt the standard effective January 1, 2019. We anticipate this standard will have a material impact on our balance sheets. However, we do not expect adoption will have a material impact on our income statements. While we are continuing to assess potential impacts of the standard, we currently expect the most significant impact will be the recognition of ROU assets and lease liabilities for operating leases. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Summary of Significant Accounting Policies (Textual) | ||
Estimated useful lives, property and equipment, description | Over 5 years. | |
Depreciation expense | $ 3,865 |
Revenue Recognition (Details)
Revenue Recognition (Details) | Sep. 30, 2018USD ($) |
Revenue Recognition (Textual) | |
Adjustment to increase the opening balance of retained earnings | $ 26,667 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | |
Income Taxes (Textual) | |||||
Net loss | $ (107,650) | $ (80,316) | $ (250,035) | $ (282,981) | |
Expiration date for tax operating loss carryforwards | Dec. 31, 2036 | ||||
Deferred tax asset | $ 110,000 | $ 110,000 | $ 117,290 | ||
Deferred tax asset effective statutory rate | 21.00% | 34.00% |
Concentration of Risk (Details)
Concentration of Risk (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Concentration of Risk (Textual) | |
FDIC's standard insurance amount | $ 250,000 |
Uninsured cash balances | $ 386,263 |
Related Party Transactions (Det
Related Party Transactions (Details) | Feb. 01, 2017USD ($)ft² | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Related Party Transactions (Textual) | |||
Rent expense | $ 250 | $ 4,000 | |
Process from related party borrowings | $ 4,722 | ||
CEO [Member] | |||
Related Party Transactions (Textual) | |||
Subleased area | ft² | 200 | ||
Monthly rent payments | $ 500 | ||
Lease renewable term | The term of the Office Lease is renewable from year-to-year, and was terminated on March 31, 2018. |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Mar. 06, 2018 | Mar. 17, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Notes Receivable (Textual) | ||||
Promissory note due date | Mar. 17, 2019 | |||
Total interest income | $ 3,650 | $ 3,100 | ||
Promissory note payment, descriprtion | The Company received payment of $100,000 and $100,000 on March 17 and October 30, 2018, respectively, and the remaining $110,000 will be due on March 17, 2019. | |||
Steven Zhi Qin [Member] | Land Transaction Agreement [Member] | ||||
Notes Receivable (Textual) | ||||
Sold undeveloped land located in Desert Hot Spring | $ 283,333 | |||
Promissory note amount | $ 310,000 | |||
Promissory note due date | Mar. 17, 2018 | |||
Promissory note interest rate | 2.00% | |||
Promissory note monthly installment of interest amount | $ 517 |
Common Stock (Details)
Common Stock (Details) - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2016 | |
Common Stock (Textual) | ||
Public float, description | The new OTCQB standards regarding the public float which became effective on May 20, 2018, the Registrant’s CEO and principal shareholder returned 15,000,000 shares of the Registrant’s common stock (the “Shares”) to the Registrant on June 29, 2018. One of the new standards was that every company trading on the OTCQB that has a market value of less than $2 million must have a freely traded “Public Float” of at least 10% of the company’s total issued and outstanding common stock. The Registrant does not have a market value of $2 million and prior to the return of the shares, its public float was approximately 8%. After the return of the Shares, the Registrant’s public float increased to approximately 10.5%. | |
Registrant's Transfer Agent [Member] | ||
Common Stock (Textual) | ||
Issued shares | 15,000,000 | |
Consulting Agreement with Speedlight Consulting Services Inc. [Member] | ||
Common Stock (Textual) | ||
Issued shares | 3,000,000 |