Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FORGE INNOVATION DEVELOPMENT CORP. | |
Entity Central Index Key | 0001687919 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | CA | |
Entity File Number | 333-218248 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,621,868 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 516,362 | $ 653,142 |
Note receivable | 110,000 | 110,000 |
Account receivable | 3,000 | |
Total Current Assets | 626,362 | 766,142 |
NONCURRENT ASSET | ||
Operating lease right-of-use assets | 150,612 | |
Property and equipment, net | 34,269 | 29,217 |
Other assets | 13,953 | 18,238 |
Total Non-Current Assets | 198,834 | 47,455 |
TOTAL ASSETS | 825,196 | 813,597 |
CURRENT LIABILITIES: | ||
Other current liability | 3,189 | 4,873 |
Operating lease liabilities | 56,486 | |
Total Current Liabilities | 59,675 | 4,873 |
Long term portion of operating lease liabilities | 95,380 | |
TOTAL LIABILITIES | 155,055 | 4,873 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock ($.0001 par value, 50,000,000 shares authorized; no share issued and outstanding as of June 30, 2019 and December 31, 2018) | ||
Common stock ($.0001 par value, 200,000,000 shares authorized, 45,621,868 shares issued and outstanding as of June 30, 2019 and December 31, 2018) | 4,562 | 4,562 |
Additional Paid-in Capital | 1,469,678 | 1,469,678 |
Accumulated Deficit | (804,099) | (665,516) |
Total Stockholders' Equity | 670,141 | 808,724 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 825,196 | $ 813,597 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 45,621,868 |
Common stock, shares outstanding | 45,621,868 | 45,621,868 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 9,000 | $ 9,000 | $ 18,000 | $ 18,000 |
Cost of revenue | ||||
Gross Profit | 9,000 | 9,000 | 18,000 | 18,000 |
Operating Expenses | ||||
Consulting Expenses | 18,000 | 38,000 | 36,010 | 56,000 |
Other Selling, General and Administrative Expenses | 61,714 | 66,659 | 120,873 | 106,985 |
Total Operating Expenses | 79,714 | 104,659 | 156,883 | 162,985 |
Interest income | 550 | 1,050 | 1,100 | 2,600 |
Income tax | 800 | |||
Net loss | $ (70,164) | $ (94,609) | $ (138,583) | $ (142,385) |
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 | 58,555,201 | 45,621,868 | 58,088,535 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (138,583) | $ (142,385) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of ROU | 1,254 | |
Depreciation expense | 4,014 | 2,124 |
Change in operating assets and liabilities: | ||
Rent deposit | (13,953) | |
Prepaid expense | (25,000) | |
Account receivable | 3,000 | (3,000) |
Accrued liability | 3,935 | |
Other current liability | (1,684) | |
Net cash used in operating activities | (131,999) | (178,279) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Note receivable | 100,000 | |
Purchase of property and equipment | (4,781) | (33,045) |
Net cash provided by (used in) investing activities | (4,781) | 66,955 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net cash provided by financing activities | ||
Netdecrease in Cash | (136,780) | (111,324) |
Cash at beginning of period: | 653,142 | 824,777 |
Cash at end of period: | 516,362 | 713,453 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest paid | ||
Income taxes paid | 800 | 800 |
NON-CASH TRANSACTION | ||
Common stock issued to settle with the accrued consulting expenses | $ 300,000 |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Total |
Balance at Dec. 31, 2017 | $ 5,762 | $ 1,168,478 | $ (366,130) | $ 808,110 |
Balances, shares at Dec. 31, 2017 | 57,621,868 | |||
Implementation of ASU2014-09 | 26,667 | 26,667 | ||
Net loss | (47,776) | (47,776) | ||
Balance at Mar. 31, 2018 | $ 5,762 | 1,168,478 | (387,239) | 787,001 |
Balance, shares at Mar. 31, 2018 | 57,621,868 | |||
Balance at Dec. 31, 2017 | $ 5,762 | 1,168,478 | (366,130) | 808,110 |
Balances, shares at Dec. 31, 2017 | 57,621,868 | |||
Net loss | (142,385) | |||
Balance at Jun. 30, 2018 | $ 4,562 | 1,469,678 | (481,848) | 992,392 |
Balance, shares at Jun. 30, 2018 | 45,621,868 | |||
Balance at Mar. 31, 2018 | $ 5,762 | 1,168,478 | (387,239) | 787,001 |
Balances, shares at Mar. 31, 2018 | 57,621,868 | |||
Common stock issued for service | $ 300 | 299,700 | 300,000 | |
Common stock issued for service, shares | 3,000,000 | |||
Cancellation of common stock | $ (1,500) | 1,500 | ||
Cancellation of common stock, shares | (15,000,000) | |||
Net loss | (94,609) | (94,609) | ||
Balance at Jun. 30, 2018 | $ 4,562 | 1,469,678 | (481,848) | 992,392 |
Balance, shares at Jun. 30, 2018 | 45,621,868 | |||
Balance at Dec. 31, 2018 | $ 4,562 | 1,469,678 | (665,516) | 808,724 |
Balances, shares at Dec. 31, 2018 | 45,621,868 | |||
Net loss | (68,419) | (68,419) | ||
Balance at Mar. 31, 2019 | $ 4,562 | 1,469,678 | (733,935) | 740,305 |
Balance, shares at Mar. 31, 2019 | 45,621,868 | |||
Balance at Dec. 31, 2018 | $ 4,562 | 1,469,678 | (665,516) | 808,724 |
Balances, shares at Dec. 31, 2018 | 45,621,868 | |||
Net loss | (138,583) | |||
Balance at Jun. 30, 2019 | $ 4,562 | 1,469,678 | (804,099) | 670,141 |
Balance, shares at Jun. 30, 2019 | 45,621,868 | |||
Balance at Mar. 31, 2019 | $ 4,562 | 1,469,678 | (733,935) | 740,305 |
Balances, shares at Mar. 31, 2019 | 45,621,868 | |||
Net loss | (70,164) | (70,164) | ||
Balance at Jun. 30, 2019 | $ 4,562 | $ 1,469,678 | $ (804,099) | $ 670,141 |
Balance, shares at Jun. 30, 2019 | 45,621,868 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2019 | |
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. 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 six months ended June 30, 2019. There is no assurance of any future revenues. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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. 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. 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. 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 or 7 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 six months ended June 30, 2019 and 2018, the depreciation expense were $4,014 and $2,124, respectively. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued new leasing guidance ("Topic 842") that replaced the existing lease guidance ("Topic 840"). Topic 842 established a right-of-use ("ROU") model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. This guidance also expanded the requirements for lessees to record leases embedded in other arrangements and the required quantitative and qualitative disclosures surrounding leases. The Company adopted Topic 842 on its effective date of January 1, 2019 using a modified retrospective transition approach; as such, Topic 842 will not be applied to periods prior to adoption and the adoption had no impact on the Company's previously reported results. The Company elected the package of practical expedients permitted under the transition guidance within Topic 842, which allowed the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its accounting for initial direct costs for existing leases. The impact of adopting Topic 842 was not material to the Company's result of operations or cash flows for the six months ended June 30, 2019. The Company recognized operating lease liabilities of $178,365 upon adoption, with corresponding ROU assets on its balance sheet. See Note 7 for further details. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking "expected loss" model, rather than the "incurred loss" model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. ASU 2016-13 is effective for public entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial position and results of operations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 3 - 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. During the six months ended June 30, 2019 and 2018, the Company has incurred a net loss of $138,583and $142,385 which resulted in a net operating loss for income tax purposes. NOLs begin expiring in 2036. The loss results in a deferred tax assets of approximately $223,000 and $94,500 at the effective tax rate of 21%. The deferred tax asset has been off-set by an equal valuation allowance. |
Concentration of Risk
Concentration of Risk | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Note 4 - 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 June 30, 2019 and December 31, 2018, uninsured cash balances were $274,247 and $415,490, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5 - 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. For the six months ended as of June 30, 2019 and 2018, rent expense was $0 and $ 250. During the six months ended June 30, 2019, Mr. Liang, the Company's CEO, paid operating expenses on behalf of the Company in the amount of $8,028. At June 30, 2019 and December 31, 2018, the Company had balance of due to Mr. Liang in the amount of $Nil and $Nil, respectively. |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Notes Receivable | Note 6 - 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. On March 12, 2019, the Company reached another agreement with Steven Zhi Qin, pursuant to which the Company agreed and approved amendment of the Promissory Note to extend maturity date to June 30, 2019. On June 26, 2019, the Company reached the third amendment with Steven Zhi Qi, pursuant to which the Company agreed and approved amendment of the Promissory Note to extend maturity date to September 30, 2019, and the remaining $110,000 will be due on September 30, 2019. For the six months ended June 30, 2019 and 2018, total interest income was $1,100 and $2,600, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 7 - Leases The Company has operating lease for its leases office space from a third party. We determined if an arrangement is a lease inception of the contract and whether a contract is or contains a lease by determining whether it conveys the right to control the use of identified asset for a period of time. The contact provides us the right to substantially all the economic benefits from the use of the identified asset and the right to direct use of the identified asset, we consider it to be, or contain, a lease. Leases is classified as operating at inception of the lease. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term as of the commencement date. Because our leases do not provide an explicit or implicit rate of return, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar term, which is 5.5%. Lease expense for these leases is recognized on a straight-line basis over the lease term. Our leases do not contain any residual value guarantees or material restrictive covenants. Leases with a lease term of 12 months or less are not recorded on the balance sheet and lease expense is recognized on a straight-line basis over the lease term. The remaining term as of June 30, 2019 is 30 months. We currently have no finance leases. During the six months ended June 30, 2019, cash paid for amounts included in the measurement of lease liabilities- operating cash flows from operating lease was $30,960. The components of lease expense consist of the following: Classification Three Months Six Months Operating lease cost G&A expense $ 16,107 $ 32,214 Net lease cost $ 16,107 $ 32,214 Balance sheet information related to leases consists of the following: Classification June 30, Assets Operating lease ROU assets Right-of-use assets $ 150,612 Total leased assets $ 150,612 Liabilities Current portion Operating lease liabilities Current maturities of operating lease liabilities $ 56,486 Non-current portion Operating lease liabilities Long-term portion of operating lease liabilities 95,380 Total lease liabilities $ 151,866 Weighted average remaining lease term Operating leases 2.5 Weighted average discount rate Operating leases 5.5 % Cash flow information related to leases consists of the following: Six Months Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 26,499 Right-of-use assets obtained in exchange for lease obligations: Operating leases 27,752 As previously discussed, the Company adopted Topic 842 by applying the guidance at adoption date, January 1, 2019. As required, the following disclosure is provided for periods prior to adoption, which continue to be presented in accordance with ASC 840. Future minimum lease payment under non-cancellable lease as of June 30, 2019 are as follows: Ending December 31, Operating Leases 2019 $ 30,960 2020 64,392 2021 66,972 2022 - Total lease payments 162,324 Less: Interest (10,458 ) Present value of lease liabilities $ 151,866 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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. |
Revenue Recognition | 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. 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. |
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 or 7 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 six months ended June 30, 2019 and 2018, the depreciation expense were $4,014 and $2,124, respectively. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued new leasing guidance ("Topic 842") that replaced the existing lease guidance ("Topic 840"). Topic 842 established a right-of-use ("ROU") model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. This guidance also expanded the requirements for lessees to record leases embedded in other arrangements and the required quantitative and qualitative disclosures surrounding leases. The Company adopted Topic 842 on its effective date of January 1, 2019 using a modified retrospective transition approach; as such, Topic 842 will not be applied to periods prior to adoption and the adoption had no impact on the Company's previously reported results. The Company elected the package of practical expedients permitted under the transition guidance within Topic 842, which allowed the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its accounting for initial direct costs for existing leases. The impact of adopting Topic 842 was not material to the Company's result of operations or cash flows for the six months ended June 30, 2019. The Company recognized operating lease liabilities of $178,365 upon adoption, with corresponding ROU assets on its balance sheet. See Note 7 for further details. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking "expected loss" model, rather than the "incurred loss" model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. ASU 2016-13 is effective for public entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial position and results of operations. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of lease expense | Classification Three Months Six Months Operating lease cost G&A expense $ 16,107 $ 32,214 Net lease cost $ 16,107 $ 32,214 |
Schedule of balance sheet information related to leases | Classification June 30, Assets Operating lease ROU assets Right-of-use assets $ 150,612 Total leased assets $ 150,612 Liabilities Current portion Operating lease liabilities Current maturities of operating lease liabilities $ 56,486 Non-current portion Operating lease liabilities Long-term portion of operating lease liabilities 95,380 Total lease liabilities $ 151,866 Weighted average remaining lease term Operating leases 2.5 Weighted average discount rate Operating leases 5.5 % |
Schedule of cash flow information related to leases | Six Months Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 26,499 Right-of-use assets obtained in exchange for lease obligations: Operating leases 27,752 |
Schedule of future minimum lease payment under non-cancellable lease | Ending December 31, Operating Leases 2019 $ 30,960 2020 64,392 2021 66,972 2022 - Total lease payments 162,324 Less: Interest (10,458 ) Present value of lease liabilities $ 151,866 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of Significant Accounting Policies (Textual) | ||
Estimated useful lives, property and equipment, description | Over 5 or 7 years. | |
Depreciation expense | $ 4,014 | $ 2,124 |
Operating lease liability | $ 151,866 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Taxes (Textual) | |||||||
Net loss | $ (70,164) | $ (68,419) | $ (94,609) | $ (47,776) | $ (138,583) | $ (142,385) | |
Expiration date for tax operating loss carryforwards | Dec. 31, 2036 | ||||||
Deferred tax assets | $ 223,000 | $ 223,000 | $ 94,500 | ||||
Effective tax rate | 21.00% |
Concentration of Risk (Details)
Concentration of Risk (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Concentration of Risk (Textual) | ||
FDIC's standard insurance amount | $ 250,000 | |
Uninsured cash balances | $ 274,247 | $ 415,490 |
Related Party Transactions (Det
Related Party Transactions (Details) | Feb. 01, 2017USD ($)ft² | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Related Party Transactions (Textual) | ||||
Rent expense | $ 0 | $ 250 | ||
Mr. Liang [Member] | ||||
Related Party Transactions (Textual) | ||||
Balance of due to related party amount | ||||
Operating expense | $ 8,028 | |||
Chief Executive Officer [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. 12, 2019 | Mar. 06, 2018 | Mar. 17, 2017 |
Notes Receivable (Textual) | |||
Promissory note due date | Mar. 17, 2019 | ||
Land Transaction Agreement [Member] | Steven Zhi Qin [Member] | |||
Notes Receivable (Textual) | |||
Sold undeveloped land located in Desert Hot Spring | $ 283,333 | ||
Promissory note amount | $ 110,000 | $ 310,000 | |
Promissory note due date | Sep. 30, 2019 | Mar. 17, 2018 | |
Promissory note interest rate | 2.00% | ||
Promissory note monthly installment of interest amount | $ 517 |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 16,107 | $ 32,214 |
Net lease cost | $ 16,107 | $ 32,214 |
Leases (Details 1)
Leases (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Operating lease ROU assets | $ 150,612 | |
Total leased assets | 150,612 | |
Current portion | ||
Operating lease liabilities | 56,486 | |
Non-current portion | ||
Operating lease liabilities | 95,380 | |
Total lease liabilities | $ 151,866 | |
Weighted average remaining lease term Operating leases | 2 years 6 months | |
Weighted average discount rate Operating leases | 5.50% |
Leases (Details 2)
Leases (Details 2) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 26,499 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 27,752 |
Leases (Details 3)
Leases (Details 3) | Jun. 30, 2019USD ($) |
Ending December 31, | |
2019 | $ 30,960 |
2020 | 64,392 |
2021 | 66,972 |
2022 | |
Total lease payments | 162,324 |
Less: Interest | (10,458) |
Present value of lease liabilities | $ 151,866 |
Leases (Details Textual)
Leases (Details Textual) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases (Textual) | |
Measurement of lease liabilities- operating cash flows from operating lease | $ 30,960 |
Lease interest rate | 5.50% |
Lease term, description | 12 months or less are not recorded on the balance sheet and lease expense is recognized on a straight-line basis over the lease term. |
Remaining lease term, description | June 30, 2019 is 30 months. |