Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 14, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Veroni Brands Corp. | |
Entity Central Index Key | 0001693690 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,738,362 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
Current Assets | |||
Cash & equivalents | $ 109,702 | $ 2,999 | [1] |
Accounts Receivable, net allowance for doubtful accounts of $0 and $9,448 respectively | 203,715 | 13,160 | [1] |
Contract Receivables with recouse | 1,021,167 | [1] | |
Inventory | 483,801 | 208,369 | [1] |
Prepaid expenses and other current assets | 35,917 | 106,317 | [1] |
Total Current Assets | 1,854,302 | 330,845 | [1] |
Deposits | 9,310 | [1] | |
Total Assets | 1,863,612 | 330,845 | [1] |
Current Liabilities | |||
Accounts payable | 255,045 | 43,713 | [1] |
Notes payable - related parties including interest | 61,370 | 157,059 | |
Notes payable - other | 173,663 | ||
Contract receivables liability with recourse | 865,577 | ||
Accrued liabilities | 113,601 | 23,921 | |
Total Current Liabilities | 1,469,256 | 224,693 | [1] |
STOCKHOLDERS' DEFICIT | |||
Preferred Stock, $0.0001 par value; 20,000,000 shares authorized; none outstanding as of September 30, 2019 and December 31, 2018. | [1] | ||
Common Stock, $0.0001 par value; 100,000,000 shares authorized;26,951,397 and 26,568,400 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 2,695 | 2,656 | [1] |
Additional paid-in capital | 696,892 | 409,683 | [1] |
ACCUMULATED DEFICIT | (305,231) | (306,187) | [1] |
Total Stockholders' Equity | 394,356 | 106,152 | [1] |
Total Liabilities and Stockholders' Equity | $ 1,863,612 | $ 330,845 | [1] |
[1] | derived from audited information |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 0 | $ 9,948 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 26,951,397 | 26,568,400 |
Common stock, shares outstanding | 26,951,397 | 26,568,400 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||||
Income Statement [Abstract] | |||||||
Revenue | $ 1,899,828 | $ 9,951 | $ 5,230,968 | $ 21,020 | |||
Cost of sales | 1,589,780 | 3,614 | 4,285,793 | 8,686 | |||
Gross Profit | 310,048 | 6,337 | 945,175 | 12,334 | |||
Selling expenses | 57,231 | 12,706 | 388,032 | 71,352 | |||
General and administrative expenses | 154,788 | 19,977 | 324,934 | 111,068 | |||
Total operating expenses | 212,019 | 32,683 | 712,966 | 182,420 | |||
Net income (loss) from operations | 98,029 | (26,346) | 232,209 | (170,086) | |||
Interest expense | 94,625 | 230,253 | |||||
Interest expense - related party | 1,000 | 1,000 | |||||
Total other expense | 95,625 | 231,253 | |||||
Income (loss) before income taxes | 2,404 | (26,346) | 956 | (170,086) | |||
Income taxes | |||||||
Net income (loss) | $ 2,404 | $ (26,346) | $ 956 | $ (170,086) | |||
Net loss per share: | |||||||
Basic and diluted | [1] | [1] | [1] | $ (0.01) | |||
Weighted average shares outstanding: | |||||||
Basic and diluted | 26,951,398 | 27,710,384 | 26,804,622 | 27,390,308 | |||
[1] | Less than $.01 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total | |
Balance at Dec. 31, 2017 | $ 1,830 | $ 83,826 | $ (47,357) | $ 38,299 | |
Balance, shares at Dec. 31, 2017 | 18,300,000 | ||||
Issuance of common stock for cash | $ 1,010 | 191,420 | $ 192,430 | ||
Issuance of common stock for cash, shares | 10,096,600 | 10,096,600 | |||
Net income (loss) for the quarter | (30,157) | $ (30,157) | |||
Balance at Mar. 31, 2018 | $ 2,840 | 275,246 | (77,514) | 200,572 | |
Balance, shares at Mar. 31, 2018 | 28,396,600 | ||||
Balance at Dec. 31, 2017 | $ 1,830 | 83,826 | (47,357) | 38,299 | |
Balance, shares at Dec. 31, 2017 | 18,300,000 | ||||
Net income (loss) for the quarter | (170,086) | ||||
Balance at Sep. 30, 2018 | $ 2,655 | 381,081 | (217,443) | 166,493 | |
Balance, shares at Sep. 30, 2018 | 26,544,400 | ||||
Balance at Mar. 31, 2018 | $ 2,840 | 275,246 | (77,514) | 200,572 | |
Balance, shares at Mar. 31, 2018 | 28,396,600 | ||||
Issuance of common stock for cash | $ 12 | 89,463 | $ 89,475 | ||
Issuance of common stock for cash, shares | 119,300 | 119,300 | |||
Net income (loss) for the quarter | (113,583) | $ (113,583) | |||
Balance at Jun. 30, 2018 | $ 2,852 | 364,709 | (191,097) | 176,464 | |
Balance, shares at Jun. 30, 2018 | 28,515,900 | ||||
Issuance of common stock for cash | $ 5 | 36,370 | $ 36,375 | ||
Issuance of common stock for cash, shares | 48,500 | 48,500 | |||
Buy back of common stock for cash | $ (202) | (19,998) | $ (20,200) | ||
Buy back of common stock for cash, shares | (2,020,000) | ||||
Net income (loss) for the quarter | (26,346) | (26,346) | |||
Balance at Sep. 30, 2018 | $ 2,655 | 381,081 | (217,443) | 166,493 | |
Balance, shares at Sep. 30, 2018 | 26,544,400 | ||||
Balance at Dec. 31, 2018 | $ 2,656 | 409,683 | (306,187) | 106,152 | [1] |
Balance, shares at Dec. 31, 2018 | 26,568,400 | ||||
Issuance of common stock for cash | $ 21 | 152,229 | $ 152,250 | ||
Issuance of common stock for cash, shares | 203,000 | 203,000 | |||
Issuance of common stock for services | $ 3 | 22,495 | $ 22,498 | ||
Issuance of common stock for services, shares | 29,997 | 29,997 | |||
Net income (loss) for the quarter | (2,959) | $ (2,959) | |||
Balance at Mar. 31, 2019 | $ 2,680 | 584,407 | (309,146) | 277,941 | |
Balance, shares at Mar. 31, 2019 | 26,801,397 | ||||
Balance at Dec. 31, 2018 | $ 2,656 | 409,683 | (306,187) | 106,152 | [1] |
Balance, shares at Dec. 31, 2018 | 26,568,400 | ||||
Net income (loss) for the quarter | 956 | ||||
Balance at Sep. 30, 2019 | $ 2,695 | 696,892 | (305,231) | 394,356 | |
Balance, shares at Sep. 30, 2019 | 26,951,397 | ||||
Balance at Mar. 31, 2019 | $ 2,680 | 584,407 | (309,146) | 277,941 | |
Balance, shares at Mar. 31, 2019 | 26,801,397 | ||||
Issuance of common stock, in lieu of interest | $ 15 | 112,485 | $ 112,500 | ||
Issuance of common stock, in lieu of interest, shares | 150,000 | 150,000 | |||
Net income (loss) for the quarter | 1,511 | $ 1,511 | |||
Balance at Jun. 30, 2019 | $ 2,695 | 696,892 | (307,635) | 391,952 | |
Balance, shares at Jun. 30, 2019 | 26,951,397 | ||||
Net income (loss) for the quarter | 2,404 | 2,404 | |||
Balance at Sep. 30, 2019 | $ 2,695 | $ 696,892 | $ (305,231) | $ 394,356 | |
Balance, shares at Sep. 30, 2019 | 26,951,397 | ||||
[1] | derived from audited information |
Statements of Cash Flow (Unaudi
Statements of Cash Flow (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flow from operating activities: | ||
Net income (loss) | $ 956 | $ (170,086) |
Adjustments to reconcile net loss to: | ||
Stock issued for services | 22,498 | |
Discount amortization | 71,163 | |
Change in net cash used in operating activities: | ||
Trade accounts receivable | (190,555) | (12,988) |
Contract receivables | (1,021,167) | |
Inventory | (275,432) | (164,939) |
Prepaid expenses | 111,720 | 43,765 |
Deposits | (9,310) | |
Accounts payable | 211,334 | 10,241 |
Accrued liabilities | 89,680 | (750) |
Accounts payable and accrued interest - related party | 3,312 | |
Net cash used in operating activities | (985,801) | (294,757) |
Cash flows from financing activities: | ||
Repayment of shareholders loans | (99,000) | |
Repayment of notes payable | (191,320) | |
Proceeds from advance from related party | 1,059 | |
Subscription receivable | 210 | |
Payment for redeemed shares | (20,200) | |
Proceeds from issuance of common stock | 152,247 | 318,280 |
Proceeds from issuance of notes payable | 365,000 | |
Proceeds from contract receivables with recourse | 865,577 | |
Net cash provided by financing activities | 1,092,504 | 299,349 |
Net change in cash | 106,703 | 4,592 |
Cash at the beginning of the period | 2,999 | 595 |
Cash at the end of the period | 109,702 | 5,187 |
Cash paid for: | ||
Interest | 20,583 | |
Taxes |
Nature of Operations and Financ
Nature of Operations and Financial Condition | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Financial Condition | Note 1 - Nature of Operations and Financial Condition Veroni Brands Corp. (formerly European CPG Acquisition Corp. or Echo Sound Acquisition Corporation) (the “Company”) was incorporated on December 7, 2016 under the laws of the state of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisition. On August 31, 2017, the Company effected a change in control by the redemption of 19,750,000 shares of the then outstanding 20,000,000 shares of common stock. The then current officers and directors resigned and Igor Gabal was named the sole officer and director of the Company. Pursuant to the change in control, the Company changed its name to European CPG Acquisition Corp. On September 1, 2017, the Company issued l0,000,000 shares of its common stock to two shareholders at par value of $0.000l and recorded share compensation of $1,000. On November 1, 2017, the name of the Company was changed to Veroni Brands Corp. The Company has been formed to acquire, operate, develop, grow and import premium European products into the U.S. market. Veroni Brands was created to search out unique, remarkable and desirable premium products across Europe and make them accessible to discerning consumers in the U.S. Veroni Brands strives to import the extraordinary and delight its consumers with experiences that had previously only been attainable in Europe. The Company became an exclusive importer and distributor of “Iron Energy” by Mike Tyson. The beverage became available to consumers in select Chicago area markets in May 2018 in three different flavors such as “Mojito,” “Zero Sugar” and “Original.” The Company will be introducing other flavors of “Iron Energy” in 2019. The Company takes pride in the products it imports and is proud to share them with its consumers. The Company expanded into imports and distribution of chocolate and related products sold to U.S. national retailers. Basis of presentation: unaudited interim financial information The accompanying interim condensed financial statements are unaudited. In opinion of management, the accompanying unaudited condensed financial statements contain all of the normal recurring adjustments necessary to present fairly the financial position and results of operations as of and for the periods presented. The interim results are not necessarily indicative of the results to be expected for the full year or any future period. Going Concern The Company has commenced the generation of revenue this year of approximately $5.2 million and incurred net income of $956 for the nine months ending September 30, 2019 but has an accumulated deficit of $305,231 since its inception. As of September 30, 2019, the Company had a cash balance available of approximately $109,702, which is not sufficient to meet its operating requirements for the next twelve months. Therefore, the Company’s ability to continue as a going concern is dependent on its ability to grow its revenue and generate sufficient cash flows from operations to meet its obligations and/or obtaining additional financing from its shareholders or other sources, as may be required. The accompanying unaudited financial statements have been prepared assuming that the Company will continue as a going concern; however, the above condition raises substantial doubt about the Company’s ability to continue as a going concern. The unaudited financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. The Company failed to meet its minimum purchase requirements under the FoodCare Sp. z.o.o. (“FoodCare”) contract and could lose its exclusive rights to distribute in the U.S. Market. The Company is currently re-negotiating the agreement. The Company is continuing to evaluate various financing options in order to continue the funding of the startup of its operations and expand the products being offered and its customer base. The Company has established a relationship with a manufacturer to import and distribute chocolate and other related products. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Reclassifications Certain reclassifications have been made in the 2018 financial statements to conform to the 2019 presentation. These reclassifications have no effect on net loss for 2018. Advertising The Company’s policy is to expense advertising costs as incurred. Advertising expense for the nine months ending September 30, 2019 and 2018 is $45,551 and $46,564, respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the carrying amount of inventory and associated reserves, and allowances in regards to receivables and revenue. Actual results could differ from those estimates. Revenue Recognition The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Given the startup nature of the Company, many distributors will require that the Company operate under consignment arrangements in the beginning of its contracts, generally for the first 90 days or until customer demand is established for the product. Under consignment, the Company retains control of the inventory located at the distributor and only records revenues when the distributor sells through to the ultimate retail establishment. As of September 30, 2019, approximately 4% of the Company’s inventory is classified as consignment. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of September 30, 2019. Distribution expenses to transport the Company’s products, where applicable, and warehousing expense is included in cost of sales. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less. Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of September 30, 2019 and December 31, 2018, respectively. Accounts Receivable and Concentration of Credit Risk Accounts receivable are recorded at the invoiced amounts less an allowance for doubtful accounts. The allowance for doubtful accounts is based on the Company’s estimate of the amount of probable credit losses in its accounts receivable. The Company determines the allowance for doubtful accounts based upon an aging of accounts receivable, historical experience and management judgment. Accounts receivable balances are periodically reviewed for collectability, and balances are charged off against the allowance when the Company determines that the potential for recovery is remote. An allowance for doubtful accounts of approximately $0 and $9,900 is reserved as of September 30, 2019 and December 31, 2018, respectively. We are exposed to credit risk in the normal course of business, primarily related to accounts receivable. To limit credit risk, management periodically reviews and evaluates the financial condition of its customers and maintains an allowance for doubtful accounts. As of September 30, 2019, the Company had one customer that comprised approximately 68% of its combined accounts receivables and contract receivables with recourse and the combined amount is approximately $838,306. During the nine months ended September 30, 2019, the Company had four customers whose sales accounted for approximately 92% of revenue. Distribution Agreements -Supplier Concentration In January 2018, the Company entered into a distributor agreement with FoodCare, which was amended and restated on January 30, 2018. FoodCare is a company organized under the laws of Poland. FoodCare is a manufacturer and supplier of desserts, cereals, energy drinks and other beverage products. FoodCare manufactures the “Iron Energy” drink, a product sponsored by celebrity Mike Tyson. Under the terms of the distribution agreement, the Company became the exclusive distributor of FoodCare products in the United States, Puerto Rico and the U.S. Virgin Islands. FoodCare is the sole supplier of Iron Energy to the Company. The term of the agreement is for ten years and gives the Company exclusive rights to distribute FoodCare products within the U.S. market, so long as the Company purchases the required quantity of product from FoodCare. The distribution agreement is terminable: (1) upon mutual consent of the parties; (2) by either party in writing, without justification, if an issue is not amicable resolved within 30 days of such issue by providing 180 days notice and, in such case, the distributor shall lose it exclusivity rights; or (3) immediately in the event of notice of an uncured breach in the terms of the agreement. The Company failed to meet its minimum purchases in 2018 and is currently re-negotiating the contract. The Company’s only business line in 2018 was the distribution of “Iron Energy” drink that continues to be part of the Company’s product offering in 2019. The cancelation of the “Iron Energy” drink distribution agreement will require the Company to secure replacement product(s) to continue its beverage product sales. Income Taxes Under ASC 740, Income Taxes, Loss Per Common Share Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of September 30, 2019 and 2018, there are no outstanding dilutive securities. Fair Value of Financial Instruments The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents and accounts payable approximate their fair values at September 30, 2019 and December 31, 2018 due to their short-term nature and management’s belief that their carrying amounts approximate the amount for which the assets could be sold or the liabilities could be settled. Share-Based Compensation The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, Equity–Based Payments to Non-Employees Emerging Growth Company The Company has elected to be an emerging growth company as defined under the Jumpstart Our Business Startups Act of 2012 (“Jobs Act”). Included with this election, the Company has also elected to use the provisions within the Jobs Act that allow companies that go public to continue to use the private company adoption date rules for new accounting policies. Should the Company obtain revenues in excess of $1 billion on an annual basis, have its non-affiliated market capitalization increase to over $700 million as of the last day of its second quarter, or raise in excess of $1 billion in public offerings of its equity or instruments directly convertible into its equity, it will forfeit its status under the Jobs Act as an emerging growth company. New Accounting Pronouncements In 2014, the FASB issued guidance on revenue recognition, with final amendments issued in 2016. The guidance provides for a five-step model to determine the revenue recognized for the transfer of goods or services to customers that reflects the expected entitled consideration in exchange for those goods or services. It also provides clarification for principal versus agent considerations and identifying performance obligations. In addition, the FASB introduced practical expedients related to disclosures of remaining performance obligations, as well as other amendments related to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes. Financial statement disclosures required under the guidance will enable users to understand the nature, amount, timing, judgments and uncertainty of revenue and cash flows relating to customer contracts. The two permitted transition methods under the guidance are the full retrospective approach or a cumulative effect adjustment to the opening retained earnings in the year of adoption (cumulative effect approach). The Company will utilize a comprehensive approach to assess the impact of the guidance on its contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the new requirements to its revenue contracts, including evaluation of its performance obligations. In 2016, the FASB issued guidance on leases, with amendments issued in 2018. The guidance requires lessees to recognize most leases on the balance sheet but record expenses in the income statement in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The two permitted transition methods under the guidance are the modified retrospective transition approach, which requires application of the guidance for all comparative periods presented, and the cumulative effect adjustment approach, which requires prospective application at the adoption date. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) which simplifies the presentation of deferred income taxes. This update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this update are effective for annual periods beginning after December 15, 2017. Early adoption is permitted, and the amendments may be applied prospectively or retrospectively for all periods presented. Early application is permitted. In June 2018, an accounting update was issued to simplify the accounting for nonemployee share-based payment transactions resulting from expanding the scope of ASC Topic 718, Compensation-Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of ASC Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that ASC Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that ASC Topic 718 does not apply to share-based payments used to effectively provide: (1) financing to the issuer; or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. The amendments in this accounting update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption date of ASC Topic 606. Under the JOBS Act, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company intends to take advantage of this extended transition period. Since the Company will not be required to comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies, the financial statements may not be comparable to financial statements of companies that comply with public company effective dates. The Company has determined that no other recent accounting pronouncements apply to its operations or could otherwise have a material impact on its consolidated financial statements. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3 – Inventory Finished Goods inventory consist of “Iron Energy” energy drinks, chocolates, and related products imported from Poland and is stated at the lower of actual cost (first-in, first-out method) or net realizable value. Cost includes freight costs to its warehouse, import fees and handling fees. Inventory is as follows: September 30, 2019 December 31, 2018 Finished goods – in warehouse $ 464,137 $ 192,318 Finished goods - consignment 19,664 16,051 $ 483,801 $ 208,369 During the third quarter, the Company removed some beverage product from inventory due to reaching the end of its shelf life and became unsaleable. As of September 30, 2019, the total unsaleable product removed from inventory totaled approximately $71,400. |
Prepaid Expenses
Prepaid Expenses | 9 Months Ended |
Sep. 30, 2019 | |
Prepaid Expenses | |
Prepaid Expenses | Note 4 – Prepaid Expenses Prepaid inventory The Company’s foreign supplier will generally require that the Company pay in advance of an inventory shipment to it from Europe. The Company’s current agreement with FoodCare includes provisions in which title for the inventory passes upon FoodCare loading the product onto truck transport for delivery to the seaports in Poland. Amounts transferred to the Company’s suppliers to secure future delivery, but prior to transfer of title of those shipments, are recorded as prepaid inventory. September 30, 2019 December 31, 2018 Prepaid services $ 1,910 $ 3,674 Prepaid Rent 4,655 - Prepaid inventory 29,352 102,643 $ 35,917 $ 106,317 |
Notes Payable Other
Notes Payable Other | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable Other | Note 5 – Notes Payable Other On February 6, 2019 the Company issued a promissory note in the amount of $150,000, bearing interest at 4 percent monthly or the equivalent of 48 percent per annum rate. The note was paid back on April 30, 2019. Current unpaid interest as of September 30, 2019 is approximately $20,200 that is accrued by the Company. On February 22, 2019, the Company entered into a promissory note in the amount of $215,000. The note matures on December 31, 2019 and can be converted in shares of the Company’s common stock at $0.75 per share during the term of the note. The Company agreed to issue to the lender 150,000 shares of the Company’s common stock on or before December 31, 2019 as a one-time consideration for making the loan in lieu of a cash payment of interest. The common stock issuable under the term of the promissory note was valued at $112,500 and is being amortized over the term of the note. Through September 30, 2019 approximately $71,200 has been amortized and recorded as Interest Expense. On March 11, 2019, the Company issued a promissory note in the amount of $65,000. The note accrued interest at 5 percent every 45 days on the unpaid principal balance or the equivalent of 40.6% per annum rate. The loan was paid back as of on June 11, 2019. Current unpaid interest as of September 30, 2019 is approximately $7,400 that is accrued by the Company. |
Contract Receivables Liability
Contract Receivables Liability with Recourse | 9 Months Ended |
Sep. 30, 2019 | |
Contract Receivables Liability With Recourse | |
Contract Receivables Liability with Recourse | Note 6 – Contract Receivables Liability with Recourse On February 21, 2019, the Company entered into a factoring agreement with Advance Business Capital d/b/a Interstate Capital for a term of one year. On September 11, 2019, the lender (now doing business as Triumph Business Capital), entered into an amended agreement with the Company which lowered the interest rate charged by the lender from 0.49% for every 10 days to prime plus 3%. As of September 30, 2019 the Company owes $865,577 for advances on their receivables. The Company bears all credit risk related to the receivables factored. The Company has given a security interest in substantially all of its assets and the president of the Company and a major shareholder have guaranteed the debt. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 7 – Stockholders’ Equity The Company is authorized to issue 100,000,000 shares of common stock and 20,000,000 shares of preferred stock. January 1, 2018 through March 31, 2018 the Company issued 10,096,600 shares of common stock in consideration of cash proceeds of $192,430. April 1, 2018 through June 30, 2018 the Company issued 119,300 shares of common stock in consideration of cash proceeds of $89,475. July 1, 2018 through September 30, 2018 the Company issued 48,500 shares of common stock in consideration of cash proceeds of $36,375 and redeemed 2,020,000 of its common stock for $20,200. January 1, 2019 through March 31, 2019, the Company issued 203,000 shares of common stock in consideration of cash proceeds of $152,250 and issued 29,997 shares of common stock for services rendered with a value of $22,498. April 1, 2019 through June 30, 2019 the Company issued 150,000 common stock valued at $112,500 in consideration of financing provided to the Company. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8 –Related Party Transactions During 2018, two significant shareholders of the Company advanced the Company $157,059. The advance was evidenced by two individual notes totaling $155,000 which were due on or before August 1, 2019 and a payable of $2,059. The two notes have a fixed interest fee of $1,000 for each of the notes. One shareholder was repaid its promissory note and accrued interest which totaled $61,000. The due date for the second shareholder note has been extended to be due on or before August 1, 2020. As of September 30, 2019, $39,000 has been repaid leaving an outstanding loan balance of $56,000 and a payable of $4,370. Unpaid interest of $1,000 has been accrued as of September 30, 2019 for the remaining promissory note. |
Office Lease
Office Lease | 9 Months Ended |
Sep. 30, 2019 | |
Office Lease | |
Office Lease | Note 9– Office Lease On February 4, 2019, the Company entered into a sublease for office space located in Bannockburn, Illinois. The sublease terminates on September 30, 2022. Rent for the nine months ending September 30, 2019 was $36,575. The annual rent per the sublease is as follows: First lease year $ 55,860 Second lease year 57,536 Third lease year 59,262 Final lease year 61,039 The Company also paid a security deposit of $9,310. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10– Commitments and Contingencies The Company’s operations are subject to the Federal Food, Drug and Cosmetic Act; the Bioterrorism Act; and regulations created by the U.S. Food and Drug Administration (“FDA”). The FDA regulates manufacturing and holding requirements for foods, specifies the standards of identity for certain foods and prescribes the format and content of certain information that must appear on food product labels. In addition, the published applicable rules under the Food Safety Modernization Act (“FSMA”) regulates food products imported into the United States and provides the FDA with mandatory recall authority. For the purchase of products harvested or manufactured outside the United States, and for the shipment of products to customers located outside of the United States, the Company is subject to customs laws regarding the import and export of shipments. The Company’s activities, including working with customs brokers and freight forwarders, are subject to regulation by U.S. Customs and Border Protection, part of the Homeland Security. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent Events During October 2019, the related party outstanding loan balance was reduced by $17,000. Subsequent to the quarter ended September 30, 2019, the Company repurchased 125,000 shares of its common stock for $25,000, which shares will be cancelled. An additional 125,000 shares of common stock were surrendered to the Company for cancellation. The Company also issued 26,965 shares of its common stock as payment of the interest due on the note dated February 6, 2019 in the amount of $150,000 and 10,000 shares of common stock as payment of interest due on the note dated March 11, 2019 in the amount of $65,000. See Note 5 - Notes Payable Other. These shares were valued at $0.75 per share. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain reclassifications have been made in the 2018 financial statements to conform to the 2019 presentation. These reclassifications have no effect on net loss for 2018. |
Advertising | Advertising The Company’s policy is to expense advertising costs as incurred. Advertising expense for the nine months ending September 30, 2019 and 2018 is $45,551 and $46,564, respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the carrying amount of inventory and associated reserves, and allowances in regards to receivables and revenue. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Given the startup nature of the Company, many distributors will require that the Company operate under consignment arrangements in the beginning of its contracts, generally for the first 90 days or until customer demand is established for the product. Under consignment, the Company retains control of the inventory located at the distributor and only records revenues when the distributor sells through to the ultimate retail establishment. As of September 30, 2019, approximately 4% of the Company’s inventory is classified as consignment. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of September 30, 2019. Distribution expenses to transport the Company’s products, where applicable, and warehousing expense is included in cost of sales. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of September 30, 2019 and December 31, 2018, respectively. |
Accounts Receivable and Concentration of Credit Risk | Accounts Receivable and Concentration of Credit Risk Accounts receivable are recorded at the invoiced amounts less an allowance for doubtful accounts. The allowance for doubtful accounts is based on the Company’s estimate of the amount of probable credit losses in its accounts receivable. The Company determines the allowance for doubtful accounts based upon an aging of accounts receivable, historical experience and management judgment. Accounts receivable balances are periodically reviewed for collectability, and balances are charged off against the allowance when the Company determines that the potential for recovery is remote. An allowance for doubtful accounts of approximately $0 and $9,900 is reserved as of September 30, 2019 and December 31, 2018, respectively. We are exposed to credit risk in the normal course of business, primarily related to accounts receivable. To limit credit risk, management periodically reviews and evaluates the financial condition of its customers and maintains an allowance for doubtful accounts. As of September 30, 2019, the Company had one customer that comprised approximately 68% of its combined accounts receivables and contract receivables with recourse and the combined amount is approximately $838,306. During the nine months ended September 30, 2019, the Company had four customers whose sales accounted for approximately 92% of revenue. |
Distribution Agreements -Supplier Concentration | Distribution Agreements -Supplier Concentration In January 2018, the Company entered into a distributor agreement with FoodCare, which was amended and restated on January 30, 2018. FoodCare is a company organized under the laws of Poland. FoodCare is a manufacturer and supplier of desserts, cereals, energy drinks and other beverage products. FoodCare manufactures the “Iron Energy” drink, a product sponsored by celebrity Mike Tyson. Under the terms of the distribution agreement, the Company became the exclusive distributor of FoodCare products in the United States, Puerto Rico and the U.S. Virgin Islands. FoodCare is the sole supplier of Iron Energy to the Company. The term of the agreement is for ten years and gives the Company exclusive rights to distribute FoodCare products within the U.S. market, so long as the Company purchases the required quantity of product from FoodCare. The distribution agreement is terminable: (1) upon mutual consent of the parties; (2) by either party in writing, without justification, if an issue is not amicable resolved within 30 days of such issue by providing 180 days notice and, in such case, the distributor shall lose it exclusivity rights; or (3) immediately in the event of notice of an uncured breach in the terms of the agreement. The Company failed to meet its minimum purchases in 2018 and is currently re-negotiating the contract. The Company’s only business line in 2018 was the distribution of “Iron Energy” drink that continues to be part of the Company’s product offering in 2019. The cancelation of the “Iron Energy” drink distribution agreement will require the Company to secure replacement product(s) to continue its beverage product sales. |
Income Taxes | Income Taxes Under ASC 740, Income Taxes, |
Loss Per Common Share | Loss Per Common Share Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of September 30, 2019 and 2018, there are no outstanding dilutive securities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents and accounts payable approximate their fair values at September 30, 2019 and December 31, 2018 due to their short-term nature and management’s belief that their carrying amounts approximate the amount for which the assets could be sold or the liabilities could be settled. |
Share-Based Compensation | Share-Based Compensation The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, Equity–Based Payments to Non-Employees |
Emerging Growth Company | Emerging Growth Company The Company has elected to be an emerging growth company as defined under the Jumpstart Our Business Startups Act of 2012 (“Jobs Act”). Included with this election, the Company has also elected to use the provisions within the Jobs Act that allow companies that go public to continue to use the private company adoption date rules for new accounting policies. Should the Company obtain revenues in excess of $1 billion on an annual basis, have its non-affiliated market capitalization increase to over $700 million as of the last day of its second quarter, or raise in excess of $1 billion in public offerings of its equity or instruments directly convertible into its equity, it will forfeit its status under the Jobs Act as an emerging growth company. |
New Accounting Pronouncements | New Accounting Pronouncements In 2014, the FASB issued guidance on revenue recognition, with final amendments issued in 2016. The guidance provides for a five-step model to determine the revenue recognized for the transfer of goods or services to customers that reflects the expected entitled consideration in exchange for those goods or services. It also provides clarification for principal versus agent considerations and identifying performance obligations. In addition, the FASB introduced practical expedients related to disclosures of remaining performance obligations, as well as other amendments related to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes. Financial statement disclosures required under the guidance will enable users to understand the nature, amount, timing, judgments and uncertainty of revenue and cash flows relating to customer contracts. The two permitted transition methods under the guidance are the full retrospective approach or a cumulative effect adjustment to the opening retained earnings in the year of adoption (cumulative effect approach). The Company will utilize a comprehensive approach to assess the impact of the guidance on its contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the new requirements to its revenue contracts, including evaluation of its performance obligations. In 2016, the FASB issued guidance on leases, with amendments issued in 2018. The guidance requires lessees to recognize most leases on the balance sheet but record expenses in the income statement in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The two permitted transition methods under the guidance are the modified retrospective transition approach, which requires application of the guidance for all comparative periods presented, and the cumulative effect adjustment approach, which requires prospective application at the adoption date. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) which simplifies the presentation of deferred income taxes. This update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this update are effective for annual periods beginning after December 15, 2017. Early adoption is permitted, and the amendments may be applied prospectively or retrospectively for all periods presented. Early application is permitted. In June 2018, an accounting update was issued to simplify the accounting for nonemployee share-based payment transactions resulting from expanding the scope of ASC Topic 718, Compensation-Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of ASC Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that ASC Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that ASC Topic 718 does not apply to share-based payments used to effectively provide: (1) financing to the issuer; or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. The amendments in this accounting update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption date of ASC Topic 606. Under the JOBS Act, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company intends to take advantage of this extended transition period. Since the Company will not be required to comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies, the financial statements may not be comparable to financial statements of companies that comply with public company effective dates. The Company has determined that no other recent accounting pronouncements apply to its operations or could otherwise have a material impact on its consolidated financial statements. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory is as follows: September 30, 2019 December 31, 2018 Finished goods – in warehouse $ 464,137 $ 192,318 Finished goods - consignment 19,664 16,051 $ 483,801 $ 208,369 |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Prepaid Expenses | |
Schedule of Prepaid Expenses | September 30, 2019 December 31, 2018 Prepaid services $ 1,910 $ 3,674 Prepaid Rent 4,655 - Prepaid inventory 29,352 102,643 $ 35,917 $ 106,317 |
Office Lease (Tables)
Office Lease (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Office Lease Tables Abstract | |
Schedule of Annual Rent Sublease | . The annual rent per the sublease is as follows: First lease year $ 55,860 Second lease year 57,536 Third lease year 59,262 Final lease year 61,039 |
Nature of Operations and Fina_2
Nature of Operations and Financial Condition (Details Narrative) - USD ($) | Sep. 01, 2017 | Aug. 31, 2017 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Redemption of shares | 19,750,000 | 2,020,000 | 2,020,000 | |||||||||
Outstanding common stock | 20,000,000 | 26,951,397 | 26,951,397 | 26,568,400 | ||||||||
Common stock issued during period | 203,000 | 48,500 | 119,300 | 10,096,600 | ||||||||
Revenue | $ 1,899,828 | $ 9,951 | $ 5,230,968 | $ 21,020 | ||||||||
Net loss | 2,404 | $ 1,511 | $ (2,959) | $ (26,346) | $ (113,583) | $ (30,157) | 956 | $ (170,086) | ||||
Cash balance | 109,702 | 109,702 | $ 2,999 | [1] | ||||||||
Accumulated deficit | $ (305,231) | $ (305,231) | $ (306,187) | [1] | ||||||||
Two Shareholders [Member] | ||||||||||||
Common stock issued during period | 10,000,000 | |||||||||||
Price per share | $ 0.0001 | |||||||||||
Share compensation | $ 1,000 | |||||||||||
[1] | derived from audited information |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Advertising expense | $ 45,551 | $ 46,564 | ||
Inventory percentage consignment | 4.00% | |||
Allowance for doubtful accounts | $ 0 | $ 9,900 | ||
Contract receivable recourse | $ 838,306 | |||
Deferred tax assets | ||||
Valuation allowances description | As of December 31, 2018 and 2017, there were no net deferred tax assets, as the Company setup a 100% valuation allowance, due to the uncertainty of the realization of net operating loss carryforwards prior to their expiration. | |||
Dilutive securities | ||||
Emerging growth company description | The Company has elected to be an emerging growth company as defined under the Jumpstart Our Business Startups Act of 2012 (“Jobs Act”). Included with this election, the Company has also elected to use the provisions within the Jobs Act that allow companies that go public to continue to use the private company adoption date rules for new accounting policies. Should the Company obtain revenues in excess of $1 billion on an annual basis, have its non-affiliated market capitalization increase to over $700 million as of the last day of its second quarter, or raise in excess of $1 billion in public offerings of its equity or instruments directly convertible into its equity, it will forfeit its status under the Jobs Act as an emerging growth company. | |||
Accounts Receivable [Member] | One Customer [Member] | ||||
Concentration risk percentage | 68.00% |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | [1] |
Inventory | $ 483,801 | $ 208,369 | |
Unsaleable Product [Member] | |||
Inventory | $ 71,400 | ||
[1] | derived from audited information |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
Inventory [Line Items] | |||
Inventory | $ 483,801 | $ 208,369 | [1] |
Finished Goods - in Warehouse [Member] | |||
Inventory [Line Items] | |||
Inventory | 464,137 | 192,318 | |
Finished Goods - Consignment [Member] | |||
Inventory [Line Items] | |||
Inventory | $ 19,664 | $ 16,051 | |
[1] | derived from audited information |
Prepaid Expenses - Schedule of
Prepaid Expenses - Schedule of Prepaid Expenses (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
Prepaid Expenses | |||
Prepaid services | $ 1,910 | $ 3,674 | |
Prepaid Rent | 4,655 | ||
Prepaid inventory | 29,352 | 102,643 | |
Total prepaid expenses | $ 35,917 | $ 106,317 | [1] |
[1] | derived from audited information |
Notes Payable Other (Details Na
Notes Payable Other (Details Narrative) - USD ($) | Feb. 22, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 11, 2019 | Feb. 06, 2019 |
Common stock issued during period | 203,000 | 48,500 | 119,300 | 10,096,600 | ||||||
Interest Expense | $ 94,625 | $ 230,253 | ||||||||
Promissory Note [Member] | ||||||||||
Debt face amount | $ 215,000 | $ 65,000 | $ 150,000 | |||||||
Debt interest | 5.00% | 4.00% | ||||||||
Effective interest | 40.60% | 48.00% | ||||||||
Current unpaid interest | 20,200 | $ 20,200 | ||||||||
Debt maturity period | Dec. 31, 2019 | |||||||||
Debt instrument exercise price | $ 0.75 | |||||||||
Promissory Note [Member] | Lender [Member] | ||||||||||
Common stock issued during period | 150,000 | |||||||||
Value of shares issued | $ 112,500 | |||||||||
Interest Expense | 71,200 | |||||||||
Promissory Note One [Member] | ||||||||||
Current unpaid interest | $ 7,400 | $ 7,400 |
Contract Receivables Liabilit_2
Contract Receivables Liability with Recourse (Details Narrative) - USD ($) | Sep. 11, 2019 | Sep. 30, 2019 |
Advance Business Capital LLC [Member] | ||
Amount payable on advances against reveivables | $ 865,577 | |
Lender [Member] | Amended Agreement [Member] | ||
Interest rate | 0.49% | |
Changes in interest rate | 3.00% | |
Interest rate description | On September 11, 2019, the lender (now doing business as Triumph Business Capital), entered into an amended agreement with the Company which lowered the interest rate charged by the lender from 0.49% for every 10 days to prime plus 3% |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Aug. 31, 2017 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ||||||
Issuance of common stock for cash, shares | 203,000 | 48,500 | 119,300 | 10,096,600 | ||||
Issuance of common stock for cash | $ 152,250 | $ 36,375 | $ 89,475 | $ 192,430 | ||||
Common stock reedemed shares | 19,750,000 | 2,020,000 | 2,020,000 | |||||
Common stock redeemed value | $ 20,200 | |||||||
Issuance of common stock for services, shares | 29,997 | |||||||
Issuance of common stock for services | $ 22,498 | |||||||
Common stock issued in consideration shares | 150,000 | |||||||
Common stock issued in consideration value | $ 112,500 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Related Party Transaction [Line Items] | ||
Repayments of notes payable | $ 191,320 | |
Promissory Note One [Member] | ||
Related Party Transaction [Line Items] | ||
Interest payable | 7,400 | |
Two Significant Shareholders [Member] | Two Individual Notes [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | 157,059 | |
Debt instrument face amount | $ 155,000 | |
Debt instrument maturity date, description | on or before August 1, 2019 | |
Debt instrument, periodic payment | $ 2,059 | |
Interest payable | 1,000 | |
One Significant Shareholder [Member] | Promissory Note One [Member] | ||
Related Party Transaction [Line Items] | ||
Repayments of notes payable | 61,000 | |
Second Shareholder [Member] | Promissory Note Two [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | 56,000 | |
Repayments of notes payable | $ 39,000 | |
Interest due date | Aug. 1, 2020 | |
Loans payable | $ 4,370 | |
Unpaind interest | $ 1,000 |
Office Lease (Details Narrative
Office Lease (Details Narrative) - USD ($) | Feb. 04, 2019 | Sep. 30, 2019 |
Lease, Cost [Abstract] | ||
Lease termination date | Sep. 30, 2022 | |
Rent expenses | $ 36,575 | |
Security deposit | $ 9,310 |
Office Lease - Schedule of Annu
Office Lease - Schedule of Annual Rent Sublease (Details) | Sep. 30, 2019USD ($) |
Lease, Cost [Abstract] | |
First lease year | $ 55,860 |
Second lease year | 57,536 |
Third lease year | 59,262 |
Final lease year | $ 61,039 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Oct. 31, 2019 | Sep. 30, 2018 | Mar. 11, 2019 | Feb. 22, 2019 | Feb. 06, 2019 | |
Common stock repurchase share value | $ 20,200 | ||||
Promissory Note [Member] | |||||
Debt instrument face amount | $ 65,000 | $ 215,000 | $ 150,000 | ||
Subsequent Event [Member] | |||||
Related party loans payable | $ 17,000 | ||||
Common stock repurchase shares | 125,000 | ||||
Common stock repurchase share value | $ 25,000 | ||||
Common stock shares cancelled | 125,000 | ||||
Shares of common stock | 26,965 | ||||
Share Price | $ 0.75 | ||||
Subsequent Event [Member] | February 6, 2019 [Member] | Promissory Note [Member] | |||||
Debt instrument face amount | $ 150,000 | ||||
Shares of common stock | 10,000 | ||||
Subsequent Event [Member] | March 11, 2019 [Member] | Promissory Note [Member] | |||||
Debt instrument face amount | $ 65,000 |