Tribus Enterprises 10-Q 16 Aug 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Jun. 30, 2018shares
Document And Entity Information
Entity Registrant Name	Tribus Enterprises, Inc.
Entity Central Index Key	1,706,573
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	7,058,858
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,019

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Current assets
Cash	$ 497,321	$ 913,958
Prepaid inventory	250,000
Prepaid expenses	2,454
Total current assets	749,775	913,958
Deposits	33,337	2,440
Equipment, net of accumulated depreciation of $47,267 and $13,360, respectively	974,877	48,444
Total assets	1,757,989	964,842
Current liabilities
Accounts payable and accrued liabilities	29,941	32,936
Accrued rent	7,860	7,827
Capital lease, current (Note 8)	148,211
Loan, current (Note 7)	6,488	6,488
Total current liabilities	192,500	47,251
Capital lease, net of current portion (Note 8)	617,871
Loan, net of current portion (Note 7)	18,923	20,545
Total liabilities	829,294	67,796
Stockholders' equity
Common stock, $0.001 par value; 100,000,000 authorized; 7,058,858 and 6,903,658 issued and outstanding at June 30, 2018 and March 31, 2018, respectively	7,059	6,904
Additional paid in capital	1,666,472	1,462,533
Accumulated deficit	(766,050)	(593,399)
Total stockholders' equity	928,695	897,046
Total liabilities and stockholders' equity	1,757,989	964,842
Series A Preferred Stock [Member]
Stockholders' equity
Preferred stock, value	20,000	20,000
Series B Preferred Stock [Member]
Stockholders' equity
Preferred stock, value	$ 1,214	$ 1,008

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Accumulated depreciation	$ 47,267	$ 13,360
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	7,058,858	6,903,658
Common stock, outstanding	7,058,858	6,903,658
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	20,000,000	20,000,000
Preferred stock, issued	19,999,998	19,999,998
Preferred stock outstanding	19,999,998	19,999,998
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	1,214,375	1,007,500
Preferred stock outstanding	1,214,375	1,007,500

UNAUDITED CONSOLDIATED STATEMEN

UNAUDITED CONSOLDIATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating expenses
Employee costs	$ 62,077	$ 54,183
Professional fees	31,291	5,641
General and administrative	18,867	49,880
Facilities	20,845	8,410
Research and development	1,140	1,980
Depreciation expense	33,907	2,571
Total operating expenses	168,127	122,665
Other income (expense)
Other income		100
Interest expense	(4,524)
Total other income (expense)	(4,524)	100
Net and comprehensive loss	$ (172,651)	$ (122,565)
Net loss per share, basic and diluted (in dollars per share)	$ (0.02)	$ 0
Weighted average shares outstanding, basic and diluted (in shares)	6,986,977	5,541,658

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net loss	$ (172,651)	$ (122,565)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	33,907	2,571
Changes in operating assets and liabilities:
Prepaid expenses	(2,454)	(1,514)
Prepaid inventory	(250,000)
Deposits	(30,897)
Accounts payable and accrued liabilities	(2,995)	8,665
Deferred rent	33	3,459
Net cash used in operating activities	(425,057)	(109,384)
Cash flows from investing activities
Purchase of equipment		(13,481)
Net cash used in investing activities		(13,481)
Cash flows from financing activities
Loan and capital lease repayments	(195,880)	(1,081)
Proceeds from sale of common stock	38,800
Proceeds from the sale of series B preferred stock	165,500
Net cash provided by financing activities	8,420	(1,081)
Cash, beginning of period	913,958	298,942
Net change in cash	(416,637)	(123,946)
Cash, end of period	497,321	174,996
Supplemental cash flow information
Cash paid for interest	4,156
Cash paid for income taxes
Supplemental disclosure of non-cash investing and financing activities
Loan entered into for purchase of vehicle		32,439
Capital leases entered into for purchase of equipment	$ 960,340

NATURE OF OPERATIONS AND ORGANI

NATURE OF OPERATIONS AND ORGANIZATION	3 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS AND ORGANIZATION	NOTE 1 – NATURE OF OPERATIONS AND ORGANIZATION The Company was incorporated in the State of Washington on March 29, 2017 for the purpose of developing, designing, manufacturing and distributing hand tools. Upon incorporation, the Company entered into a share exchange agreement with Tribus Innovations, LLC (“Tribus Innovations”) and acquired all of the outstanding ownership interests of Tribus Innovations. Tribus Innovations was formed on December 1, 2015. The transaction was accounted for as a reverse merger and these financial statements present the historical financial information of Tribus Innovations from its inception and include the financial information of the Company from the completion of the share exchange agreement on March 29, 2017. The Company has not yet realized revenues from its planned business activities.

UNAUDITED CONDENSED CONSOLDIATE

UNAUDITED CONDENSED CONSOLDIATED INTERIM FINANCIAL STATEMENTS	3 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
UNAUDITED CONDENSED CONSOLDIATED INTERIM FINANCIAL STATEMENTS	NOTE 2 – UNAUDITED CONDENSED CONSOLDIATED INTERIM FINANCIAL STATEMENTS The accompanying unaudited condensed consolidated interim financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the period ended June 30, 2018 and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s March 31, 2018 audited financial statements. The results of operations for the period ended June 30, 2018 are not necessarily indicative of the operating results for the full year. These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Tribus Innovations LLC. All intercompany balances and transactions are eliminated on consolidation. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that (1) recorded transactions are valid; (2) all valid transactions are recorded and (3) transactions are recorded in the period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the company for the respective periods being presented.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	NOTE 3 – GOING CONCERN The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company does not have significant cash or other current assets, nor does it have an established source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business. The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its plans and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern. During the next year, the Company’s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission, and the payment of expenses associated with research and development. The Company may experience a cash shortfall and be required to raise additional capital. Historically, it has mostly relied upon internally generated funds and funds from the sale of shares of stock to finance its operations and growth. Management may raise additional capital through future public or private offerings of the Company’s stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company’s failure to do so could have a material and adverse effect upon it and its shareholders.

CAPITAL STOCK

CAPITAL STOCK	3 Months Ended
	Jun. 30, 2018
Equity [Abstract]
CAPITAL STOCK	NOTE 4 – CAPITAL STOCK Authorized The Company is authorized to issue up to 20,000,000 shares of $0.001 par value Series A Preferred Stock, 5,000,000 shares of $0.001 par value Series B Preferred Stock and 100,000,000 shares of $0.001 par value Common Stock. The holders of the Series A Preferred Stock are entitled to 10 votes for each share held. Each share of Series A Preferred Stock is convertible into 10 shares of Common Stock at the discretion of the Company’s directors. In the event that there is a change of control transaction, each share of Series A Preferred Stock is convertible into 10 shares of Common Stock at the option of the holder. The holders of the Series A Preferred Stock are entitled to participate in dividends. Dividends are non-cumulative and are at the discretion of the Company’s directors. The holders of the Series B Preferred Stock are entitled to 4 votes for each share held. Each share of Series B Preferred Stock is convertible into 4 shares of Common Stock at the discretion of the stockholder. The holders of the Series B Preferred Stock are entitled to participate in dividends. Dividends are non-cumulative and are at the discretion of the Company’s directors. Issued During the three months ended June 30, 2018, the Company accepted stock subscriptions to issue a total of 155,200 shares of common stock at $0.25 per share resulting in total cash proceeds of $38,800. During the three months ended June 30, 2018, the Company issued a total of 206,875 shares of Series B Convertible Preferred Stock for total cash proceeds of $165,500. There were 19,999,998, 1,214,375 and 7,058,858 shares of Series A Convertible Preferred Stock, Series B Preferred Stock and Common Stock issued and outstanding as of June 30, 2018.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 5 – COMMITMENTS AND CONTINGENCIES On March 23, 2017, the Company entered into a lease agreement for the rent of warehouse space that terminates on April 30, 2022 which was amended on May 20, 2017. The lease requires future minimum payments as shown below: Year ending June 30, 2019 $ 35,586 2020 48,757 2021 50,207 2022 51,725 2023 4,321 Total $ 190,596

RELATED PARTY BALANCES

RELATED PARTY BALANCES	3 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
RELATED PARTY BALANCES	NOTE 6 – RELATED PARTY BALANCES Included in accrued liabilities at June 30, 2018 is $nil (March 31, 2018 - $nil) due to a director and officer of the Company for an accrual of salary. This amount is unsecured, does not bear interest and is due on demand.

LOAN PAYABLE

LOAN PAYABLE	3 Months Ended
	Jun. 30, 2018
Debt Instruments [Abstract]
LOAN PAYABLE	NOTE 7 – LOAN PAYABLE During the prior fiscal year, the Company entered into a loan in order to acquire a vehicle. The loan is repayable over five years at $541 per month, is secured by the vehicle and bears interest a 0%. Management determined that the fair value of the loan was not significantly different from its face value and therefore no discount has been recorded.

CAPITAL LEASE PAYABLE

CAPITAL LEASE PAYABLE	3 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
CAPITAL LEASE PAYABLE	NOTE 8 – CAPITAL LEASE PAYABLE The Company accounts for capital leases in accordance with ACS 840-30. During the three months ended June 30, 2018, the Company entered into six separate long-term leases for equipment. The Company determined these are capital leases based on the present value of the minimum lease payments exceeding 90% of the fair value of the assets and capitalized $960,340 as equipment. The total monthly payments total $28,545. As of June 30, 2018, there was a total of $1,179,413 of future payments due through June of 2023 of which $413,331 are financing charges leaving a total principal balance of $766,082. Future annual principal payments required under the capital leases through termination are as follows: As at June 30, 2018 2019 $ 148,211 2020 207,261 2021 275,741 2022 72,882 2023 61,987 Total $ 766,082

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS The Company entered into two new capital leases to purchase equipment. The leases contain $1 buyouts and have payments totaling $10,466. The total amount of the equipment purchased totals $261,900. The future principal payments are included in the above five year principal payment grid.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments	The lease requires future minimum payments as shown below: Year ending June 30, 2019 $ 35,586 2020 48,757 2021 50,207 2022 51,725 2023 4,321 Total $ 190,596

CAPITAL LEASE PAYABLE (Tables)

CAPITAL LEASE PAYABLE (Tables)	3 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future annual principal payments under the capital leases	Future annual principal payments required under the capital leases through termination are as follows: As at June 30, 2018 2019 $ 148,211 2020 207,261 2021 275,741 2022 72,882 2023 61,987 Total $ 766,082

CAPITAL STOCK (Details Narrativ

CAPITAL STOCK (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018
Common stock, authorized	100,000,000		100,000,000
Common stock, par value (in dollars per share)	$ 0.001		$ 0.001
Common stock, issued	7,058,858		6,903,658
Common stock, outstanding	7,058,858		6,903,658
Proceeds from issuance of common stock	$ 38,800
Subscription Agreements [Member]
Common stock, par value (in dollars per share)	$ 0.25
Number of common shares subscribed	155,200
Proceeds from issuance of common stock	$ 38,800
Series B Preferred Stock [Member]
Preferred stock, authorized	5,000,000		5,000,000
Preferred stock, par value (in dollars per share)	$ 0.001		$ 0.001
Preferred stock, issued	1,214,375		1,007,500
Preferred stock, outstanding	1,214,375		1,007,500
Number of shares issued	206,875
Proceeds from issuance of common stock	$ 165,500
Series A Preferred Stock [Member]
Preferred stock, authorized	20,000,000		20,000,000
Preferred stock, par value (in dollars per share)	$ 0.001		$ 0.001
Preferred stock, issued	19,999,998		19,999,998
Preferred stock, outstanding	19,999,998		19,999,998
Preferred stock, voting rights	The holders of the Series A Preferred Stock are entitled to 10 votes for each share held.
Description of conversion	Each share of Series A Preferred Stock is convertible into 10 shares of Common Stock at the discretion of the Company’s directors. In the event that there is a change of control transaction, each share of Series A Preferred Stock is convertible into 10 shares of Common Stock at the option of the holder. The holders of the Series A Preferred Stock are entitled to participate in dividends. Dividends are non-cumulative and are at the discretion of the Company’s directors.

COMMITMENTS AND CONTINGENCIES18

COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,019	$ 35,586
2,020	48,757
2,021	50,207
2,022	51,725
2,023	4,321
Total	$ 190,596

RELATED PARTY BALANCES (Details

RELATED PARTY BALANCES (Details Narrative) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Related Party Transactions [Abstract]
Due to director and officers for an accrual of salary

LOAN PAYABLE (Details Narrative

LOAN PAYABLE (Details Narrative) - 0% Loans Payable [Member]	3 Months Ended
	Jun. 30, 2018USD ($)
Debt Instrument [Line Items]
Loan term	5 years
Monthly loan repayment	$ 541
Description of loan collateral	Secured by the vehicle

CAPITAL LEASE PAYABLE (Details)

CAPITAL LEASE PAYABLE (Details)	Jun. 30, 2018USD ($)
Future annual principal payments under the capital leases
2,019	$ 148,211
2,020	207,261
2,021	275,741
2,022	72,882
2,023	61,987
Total	$ 766,082

CAPITAL LEASE PAYABLE (Details

CAPITAL LEASE PAYABLE (Details Narrative)	3 Months Ended
	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Minimum lease payments	90.00%
Capitalized cost	$ 960,340
Total monthly payment	28,545
Lease financing charges	413,331
Total future payment due	1,179,413
Future annual principal payments	$ 766,082

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	3 Months Ended
	Jul. 02, 2018USD ($)Number	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)
Purchase of equipment			$ 13,481
Subsequent Event [Member]
Total of purchase capital lease | Number	2
Subsequent Event [Member] | Equipment [Member]
Purchase of equipment	$ 261,900
Description of capital lease term	The leases contain $1 buyouts and have payments totaling $10,466.
Capital lease term	5 years