Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 13, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-218248 | |
Entity Registrant Name | FORGE INNOVATION DEVELOPMENT CORP. | |
Entity Central Index Key | 0001687919 | |
Entity Tax Identification Number | 81-4635390 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 6280 Mission Blvd Unit 205 | |
Entity Address, City or Town | Jurupa Valley | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92509 | |
City Area Code | (626) | |
Local Phone Number | 986-4566 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,621,868 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 11,789 | $ 60,364 |
Account receivable | 5,000 | 9,000 |
Other Receivable - Related Party | 608 | |
Prepaid expense and other current assets | 12,192 | 14,692 |
Total Current Assets | 29,589 | 84,056 |
NONCURRENT ASSETS | ||
Operating lease right-of-use assets | ||
Property and equipment, net | 50,352 | 47,314 |
Rent deposit | 13,953 | 13,953 |
Total Non-Current Assets | 64,305 | 61,267 |
TOTAL ASSETS | 93,894 | 145,323 |
CURRENT LIABILITIES: | ||
Other accrued liability | 2,606 | 19,203 |
Other payable - Related Party | 68,395 | 70,591 |
Rent payable | 83,070 | 83,070 |
Loans, current | 6,878 | 6,878 |
Total Current Liabilities | 160,949 | 179,742 |
Long term portion of Chase auto loan | 7,806 | 9,478 |
Long term portion of SBA loan | 13,123 | 13,330 |
TOTAL LIABILITIES | 181,878 | 202,550 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $.0001 par value, 50,000,000 shares authorized; no share issued and outstanding | ||
Common stock, $.0001 par value, 200,000,000 shares authorized, 45,621,868 shares issued and outstanding | 4,562 | 4,562 |
Additional Paid-in Capital | 1,469,678 | 1,469,678 |
Accumulated Deficit | (1,562,224) | (1,531,467) |
Total Stockholders’ Deficit | (87,984) | (57,227) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 93,894 | $ 145,323 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
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 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 15,604 | $ 9,000 |
Operating Expenses | ||
Consulting Expenses | 9,800 | 18,000 |
Selling, General and Administrative Expenses | 36,561 | 64,962 |
Total Operating Expenses | 46,361 | 82,962 |
Other income (expense) | ||
Forgiveness of PPP loan | 19,400 | |
Total other income | 19,400 | |
Net loss before income tax | (30,757) | (54,562) |
Income tax provision | ||
Net loss | $ (30,757) | $ (54,562) |
Net loss per common share | ||
- Basic and diluted | $ 0 | $ (0.01) |
Weighted average number of common shares outstanding, | ||
- Basic and diluted | 45,621,868 | 45,621,868 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (30,757) | $ (54,562) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of ROU | 1,225 | |
Depreciation expense | 5,077 | 3,589 |
Forgiveness of PPP loan | (19,400) | |
Change in operating assets and liabilities: | ||
Account receivable | 4,000 | |
Prepaid expense and other current assets | 2,500 | 1,140 |
Other receivable-related party | (608) | |
Other current liability - Related Party | (2,196) | 26,183 |
Other current liabilities | (16,596) | 6,059 |
Net cash used in operating activities | (38,580) | (35,766) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (9,975) | (1,673) |
Net cash used in investing activities | (9,975) | (1,673) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of SBA loan | (20) | |
Net cash used in financing activities | (20) | |
Net decrease in Cash | (48,575) | (37,439) |
Cash at beginning of period: | 60,364 | 236,586 |
Cash at end of period: | 11,789 | 199,147 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFOR | ||
Interest paid | ||
Income taxes paid | ||
NONCASH TRANSACTION OF INVESTING ACTIVITIES | ||
Loan carried through purchase of vehicle | $ 22,861 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 4,562 | $ 1,469,678 | $ (1,269,033) | $ 205,207 |
Beginning balance, shares at Dec. 31, 2020 | 45,621,868 | |||
Net loss | (54,562) | (54,562) | ||
Ending balance, value at Mar. 31, 2021 | $ 4,562 | 1,469,678 | (1,323,595) | 150,645 |
Ending balance, shares at Mar. 31, 2021 | 45,621,868 | |||
Beginning balance, value at Dec. 31, 2021 | $ 4,562 | 1,469,678 | (1,531,467) | (57,227) |
Beginning balance, shares at Dec. 31, 2021 | 45,621,868 | |||
Net loss | (30,757) | (30,757) | ||
Ending balance, value at Mar. 31, 2022 | $ 4,562 | $ 1,469,678 | $ (1,562,224) | $ (87,984) |
Ending balance, shares at Mar. 31, 2022 | 45,621,868 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Note 1 - Organization and Description of Business Forge Innovation Development Corp. (individually “Forge” and collectively with its subsidiary, 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, Forge amended its Articles of Incorporation in the State of Nevada to change the Company Predecessor’s name to Forge Innovation Development Corp. Our current principle executive office is located at 6280 Mission Blvd Unit 205, Jurupa Valley, CA 92509. The Company’s main business focuses 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”. On August 17, 2020, the Company established a wholly owned subsidiary, Forge Network Inc, in the State of California. Forge Network Inc is mainly engaged in online retail business. As of March 31, 2022, we have not generated any income from the subsidiary yet which is mainly due to the continuously Covid-19 pandemic impacts. Meanwhile, we are also looking for other business opportunities which could potentially increase the profits of Company in the year of 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies 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. Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the consolidated financial statements not misleading have been included. Actual results could differ from those estimates. 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 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. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, (FASB ASC 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, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts, rather than the “incurred loss” model. 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. The effective date of ASU No. 2016-13 for smaller reporting companies is postponed to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on its financial position and results of operations. The management does not believe that other than disclosed above, the recently issued but not yet adopted accounting pronouncements will have a material impact on its financial position results of operations or cash flows. |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 3 - Going Concern The accompanying consolidated financial statements were prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. However, the Company has suffered recurring losses from operations since inception, resulting in an accumulated deficit of $ 1,562,224 In view of these matters, continuation as a going concern is dependent upon several factors, including the availability of debt or equity funding upon terms and conditions acceptable to the Company and ultimately achieving profitable operations. Management believes that the Company’s business plan provides it with an opportunity to continue as a going concern. However, management cannot provide assurance that the Company will meet its objectives and be able to continue in operation. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of Forge Innovation Development Corp. to continue as a going concern. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
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. For the three months ended March 31, 2022 and 2021, the Company has incurred a net loss before tax of $ 30,757 54,562 437,950 430,783 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5 - Related Party Transactions During the three months ended March 31, 2022 and 2021, Mr. Liang, the Company’s CEO, paid operating expenses on behalf of the Company in the amount of $ nil 754 8,212 284 On January 4, 2021, the Company purchased a vehicle from Patrick Liang, the President of the Company, for daily business operation, in the amount of $ 22,861 7.11 41 558 6,691 14,497 During the three months ended March 31, 2022 and 2021, the Company incurred professional fee with Speedlight Consulting Services Inc. whose owner, Mr. Hengjiang Pang, is our director starting November 9, 2020, in the amount of $ 9,800 14,000 60,000 63,000 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | Note 7 - Leases The Company leased an office space from a third party on December 2017 for four-year term with the expiration date on January 14, 2022. We determined the lease is an operating lease upon adoption of ASC 842 on January 1, 2019. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet with 5.5 % incremental borrowing rate used. Lease expense for these leases is recognized on a straight-line basis over the lease term. During the three months ended March 31, 2022 and 2021, the Company recorded $ nil 16,107 rent expenses, respectively, and no lease payments made during the quarters. As of March 31, 2022 and December 31, 2021, the Company had $ 83,070 rent payable toward the lease agreement. |
PPP and SBA Loans
PPP and SBA Loans | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
PPP and SBA Loans | Note 8 – PPP and SBA Loans On April 16, 2020, the Company received a Promissory Note (the “Note”) in the amount of $ 19,400 1.00 at least 75% of the forgiven amount must have been used for payroll 19,400 On July 14, 2020, the Company entered into a loan agreement with the U.S. Small Business Administration (“SBA”), pursuant to which the Company obtained a loan in the amount of $ 14,000 30 3.75 69 13,123 13,330 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 9 – Contingencies On December 8, 2017, the Company entered into a lease agreement with Puente Hills Business Center II, L.P. (“PHBC-II”) for a lease term of forty-eight January 14, 2022 4,962 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 10 - Subsequent Event On April 2, 2022, the Company entered into a Property Management Agreement (the “PMA”) with Legend Investment International, LP (“Legend Investment”) for a period of nine months. Pursuant to the PMA, the Company will charge $ 5,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the consolidated financial statements not misleading have been included. Actual results could differ from those estimates. |
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. 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 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. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, (FASB ASC 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, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts, rather than the “incurred loss” model. 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. The effective date of ASU No. 2016-13 for smaller reporting companies is postponed to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on its financial position and results of operations. The management does not believe that other than disclosed above, the recently issued but not yet adopted accounting pronouncements will have a material impact on its financial position results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2018 |
Accounting Policies [Abstract] | |||
Retained earning | $ (1,562,224) | $ (1,531,467) | $ 26,667 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ 1,562,224 | $ 1,531,467 | $ (26,667) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Net loss before tax | $ 30,757 | $ 54,562 | |
Deferred tax assets | $ 437,950 | $ 430,783 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Jan. 04, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||||
Operating expenses | $ 46,361 | $ 82,962 | ||
Due to related parties current | 68,395 | $ 70,591 | ||
Professional fees | 9,800 | 18,000 | ||
Mr Liang [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses | 754 | |||
Due to related parties current | $ 22,861 | 8,212 | 284 | |
Debt instrument interest rate | 7.11% | |||
Debt Instrument, Term | 41 months | |||
Debt instrument periodic payment | $ 558 | |||
Long term debt maturities | 6,691 | |||
Debt face amount | 14,497 | |||
Speedlight Consulting Services Inc [Member] | Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties current | 60,000 | $ 63,000 | ||
Professional fees | $ 9,800 | $ 14,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Leases | |||
Operating Lease, Weighted Average Discount Rate, Percent | 5.50% | ||
Rent expenses | $ 16,107 | ||
Lease payments | 0 | $ 0 | |
Rent payable | $ 83,070 | $ 83,070 |
PPP and SBA Loans (Details Narr
PPP and SBA Loans (Details Narrative) - USD ($) | Jul. 14, 2020 | Apr. 16, 2020 | Mar. 31, 2022 | Dec. 31, 2021 |
Pay Check Protection Program Loan [Member] | ||||
Short-Term Debt [Line Items] | ||||
Debt instrument face amount | $ 19,400 | |||
Debt interest rate | 1.00% | |||
Debt instrument description | at least 75% of the forgiven amount must have been used for payroll | |||
Other income | $ 19,400 | |||
Small Business Administration Loan [Member] | ||||
Short-Term Debt [Line Items] | ||||
Debt instrument face amount | $ 14,000 | |||
Debt interest rate | 3.75% | |||
Debt instrument term | 30 years | |||
Debt interest amount | $ 69 | |||
Long term debt | $ 13,123 | $ 13,330 |
Contingencies (Details Narrativ
Contingencies (Details Narrative) - USD ($) | Dec. 08, 2017 | Mar. 31, 2022 | Mar. 31, 2021 |
Payments for rent | $ 16,107 | ||
Puente Hills Business Center Two LP [Member] | |||
Lessee operating lease description | forty-eight | ||
Lease expiration date | Jan. 14, 2022 | ||
Payments for rent | $ 4,962 |
Subsequent Event (Details Narra
Subsequent Event (Details Narrative) | Apr. 02, 2022USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Property management fee revenue | $ 5,000 |