Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | New Leap, Inc. | |
Entity Central Index Key | 0001713809 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | true | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 10,204,000 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,548 | $ 21,007 |
Total Current assets | 1,548 | 21,007 |
Total assets | 1,548 | 21,007 |
Current Liabilities: | ||
Account payable to related party | 25,000 | 25,000 |
Other accounts payable | 1,860 | 5,230 |
Promissory note payable to shareholder | 36,381 | 19,943 |
Total current liabilities | 63,541 | 50,173 |
Total Liabilities | 63,541 | 50,173 |
Commitments and contingencies (Note 7) | ||
Stockholders' Deficit: | ||
Preferred stock; $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding | ||
Common stock; $0.0001 par value, 50,000,000 shares authorized, 10,204,000 shares issued and outstanding respectively | 10,204 | 10,204 |
Addition paid-in capital | 117,025 | 88,675 |
Accumulated deficit | (189,222) | (128,045) |
Total stockholder's deficit | (61,993) | (29,166) |
Total liabilities and stockholders' deficit | $ 1,548 | $ 21,007 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Stockholders' Deficit | ||
Preferred stock, shares par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 10,204,000 | 10,204,000 |
Common stock, shares outstanding | 10,204,000 | 10,204,000 |
UNAUDITED STATEMENTS OF OPERATI
UNAUDITED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
UNAUDITED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Revenues | ||||
Cost of revenues | ||||
Gross profit | ||||
Selling, General and Administrative expenses | 22,099 | 12,468 | 61,177 | 39,002 |
Loss from operations | (22,099) | (12,468) | (61,177) | (39,002) |
Other income, net | ||||
Loss before provision for income taxes | (22,099) | (12,468) | (61,177) | (39,002) |
Income tax expense | ||||
Net Loss | (22,099) | (12,468) | (61,177) | (39,002) |
Other Comprehensive loss | $ (22,099) | $ (12,468) | $ (61,177) | $ (39,002) |
Loss per share (Note 4) | ||||
Basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average common shares outstanding: | ||||
Basic and diluted | 10,204,000 | 10,204,000 | 10,204,000 | 10,204,000 |
UNAUDITED STATEMENTS OF CHANGES
UNAUDITED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Total | Common shares Number | Additional paid-in capital | Accumulated deficit |
Balance, shares at Dec. 31, 2017 | 9,000,000 | |||
Balance, amount at Dec. 31, 2017 | $ (42,221) | $ 9,000 | $ 22,050 | $ (73,271) |
Issued shares, shares | 1,204,000 | |||
Shareholder contribution | 28,350 | 28,350 | ||
Net loss | (39,002) | (39,002) | ||
Issued shares, amount | 30,029 | $ 1,204 | 28,825 | |
Balance, shares at Jun. 30, 2018 | 10,204,000 | |||
Balance, amount at Jun. 30, 2018 | (19,826) | $ 10,204 | 69,775 | (99,805) |
Balance, shares at Dec. 31, 2017 | 9,000,000 | |||
Balance, amount at Dec. 31, 2017 | (42,221) | $ 9,000 | 22,050 | (73,271) |
Net loss | (39,002) | |||
Balance, shares at Sep. 30, 2018 | 10,204,000 | |||
Balance, amount at Sep. 30, 2018 | (22,844) | $ 10,204 | 79,225 | (112,273) |
Balance, shares at Jun. 30, 2018 | 10,204,000 | |||
Balance, amount at Jun. 30, 2018 | (19,826) | $ 10,204 | 69,775 | (99,805) |
Shareholder contribution | 9,450 | 9,450 | ||
Net loss | (12,468) | (12,468) | ||
Balance, shares at Sep. 30, 2018 | 10,204,000 | |||
Balance, amount at Sep. 30, 2018 | (22,844) | $ 10,204 | 79,225 | (112,273) |
Balance, shares at Dec. 31, 2018 | 10,204,000 | |||
Balance, amount at Dec. 31, 2018 | (29,166) | $ 10,204 | 88,675 | (128,045) |
Shareholder contribution | 28,350 | 28,350 | ||
Net loss | (61,177) | (61,177) | ||
Balance, shares at Jun. 30, 2019 | 10,204,000 | |||
Balance, amount at Jun. 30, 2019 | (49,344) | $ 10,204 | 107,575 | (167,123) |
Balance, shares at Dec. 31, 2018 | 10,204,000 | |||
Balance, amount at Dec. 31, 2018 | (29,166) | $ 10,204 | 88,675 | (128,045) |
Net loss | (61,177) | |||
Balance, shares at Sep. 30, 2019 | 10,204,000 | |||
Balance, amount at Sep. 30, 2019 | (61,993) | $ 10,204 | 117,025 | (189,222) |
Balance, shares at Jun. 30, 2019 | 10,204,000 | |||
Balance, amount at Jun. 30, 2019 | (49,344) | $ 10,204 | 107,575 | (167,123) |
Shareholder contribution | 9,450 | 9,450 | ||
Net loss | (22,099) | (22,099) | ||
Balance, shares at Sep. 30, 2019 | 10,204,000 | |||
Balance, amount at Sep. 30, 2019 | $ (61,993) | $ 10,204 | $ 117,025 | $ (189,222) |
UNAUDITED STATEMENTS OF CASH FL
UNAUDITED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flow from operating activities | ||
Net loss | $ (61,177) | $ (39,002) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Contributed services | 28,350 | 28,350 |
Changes in operating assets and liabilities: | ||
Increase (decrease) in account payables | (3,370) | (5,312) |
Net cash used in operating activities | (36,197) | (15,964) |
Changes in investment activities | ||
Cash flow from financing activities: | ||
Common Stock Issued for cash | 30,029 | |
Promissory note from shareholder | 16,738 | 1,591 |
Net cash provided by financing activities | 16,738 | 31,620 |
NET CASH DECREASE IN CASH AND CASH EQUIVALENTS | (19,459) | 15,656 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 21,007 | 7,954 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 1,548 | $ 23,610 |
ORGANIZATIONAL AND GOING CONCER
ORGANIZATIONAL AND GOING CONCERN | 9 Months Ended |
Sep. 30, 2019 | |
ORGANIZATIONAL AND GOING CONCERN | |
NOTE 1 - ORGANIZATIONAL AND GOING CONCERN | New Leap, Inc. (the "Company") was formed on June 1, 2017 as a Delaware corporation. During 2017 the Company issued 9,000,000 shares of its common stock in consideration for a business plan at $0.001 per share. The Company has yet to start operational or research and development activities. The Company plans to operate in the field of crowdfunding and to run an online platform for investments in private U.S. companies and companies which are publicly traded in the U.S. (both domestic and foreign). In January and February, 2018 the Company issued a total of 1,204,000 shares of its common stock to various investors at a price of $0.025 per share. The shares were issued pursuant to the Company’s registration statement on Form S-1 which was declared effective by the SEC on October 20, 2017. The accompanying unaudited financial statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered cumulative losses and negative cash flows from operations since inception. Until the Company will achieve profitability and revenues, which is uncertain, it intends to finance its operation through the issuance of its shares. These conditions give rise to substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that may result from the outcome of this uncertainty. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission. Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustments necessary (consisting only of normal recurring adjustments) to present the financial position of the Company as of September 30, 2019 and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the operating results for the full fiscal year. These financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Use of Estimates The preparation of the 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 dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Recent Accounting Pronouncements From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codifications ("ASC") are communicated through issuance of an Accounting Standards Update. Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on our financial statements upon adoption. Further, the new lease standard had no effect on the Company since the Company leases its office space from its sole officer and director at no charge. Fair Value Measurement The Company discloses fair value measurements for financial and non-financial assets and liabilities measured at fair value. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 9 Months Ended |
Sep. 30, 2019 | |
CASH AND CASH EQUIVALENTS | |
NOTE 3 - CASH AND CASH EQUIVALENTS | Cash and cash equivalents consist of cash, demand deposits and highly liquid investments with original maturities of three months or less. Cash and cash equivalents are carried at cost which approximates fair value. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
EARNINGS (LOSS) PER SHARE | |
NOTE 4 - EARNINGS (LOSS) PER SHARE | The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items in the Company and the fact that the company has a loss. |
OTHER ACCOUNTS PAYABLE
OTHER ACCOUNTS PAYABLE | 9 Months Ended |
Sep. 30, 2019 | |
OTHER ACCOUNTS PAYABLE | |
NOTE 5 - OTHER ACCOUNTS PAYABLE | At September 30, 2019 the Company had "other accounts payable" at the amount of $1,860. That amount reflects payments due to service providers. |
PROMISSORY NOTE PAYABLE TO SHAR
PROMISSORY NOTE PAYABLE TO SHAREHOLDER | 9 Months Ended |
Sep. 30, 2019 | |
PROMISSORY NOTE PAYABLE TO SHAREHOLDER | |
NOTE 6 - PROMISSORY NOTE PAYABLE TO SHAREHOLDER | The Company has an outstanding note payable provided by the major shareholder and sole officer and director which is unsecured and bears no interest. The note is payable upon demand. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 7 - COMMITMENTS AND CONTINGENCIES | In June 2017, the Company engaged a legal counsel in order to receive legal services concerning the registration statement to be filed with the Securities and Exchange Commission ("SEC"). According to the agreement, the fees will be paid if and only upon receiving the first $25,000 from external investors following the effectiveness of the registration statement. Since this expense was probable it was recorded as a provision and as expenses amounting to $25,000 outstanding at September 30, 2019. The legal counsel is considered to be a related party - see also Note 9. The legal counsel has agreed to postpone this payment for the time being given the financial condition of the Company. |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Sep. 30, 2019 | |
COMMON STOCK | |
NOTE 8 - COMMON STOCK | Common Stock confers upon its holders the rights to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends if declared. At September 30, 2019 and December 31, 2018 the Company had 10,204,000 common shares outstanding. The Company has 50,000,000 authorized common shares. During the fiscal year ended December 31, 2018 the Company issued 1,204,000 common shares at $0.025 per share to various shareholders pursuant to its S-1 registration statement that became effective on October 20, 2017. The expense incurred by the CEO and major shareholder on behalf and for the benefit of the Company for the nine months ended September 30, 2019 and 2018 amounted to $28,350 in each period and to $37,800 in the year ended December 31, 2018 and was recorded as contribution to equity. |
TRANSACTION WITH RELATED PARTY
TRANSACTION WITH RELATED PARTY | 9 Months Ended |
Sep. 30, 2019 | |
TRANSACTION WITH RELATED PARTY | |
NOTE 9 - TRANSACTION WITH RELATED PARTY | A. During the period from inception (June 1, 2017) and up to the balance sheet date the CEO and major shareholder devoted to the Company approximately 10 hours per week. The expense incurred by the CEO and major shareholder on behalf and for the benefit of the Company for the nine months ended September 30, 2019 and September 30, 2018 amounted to $28,350 in each period and for the three months ended September 30, 2019 amounted to $9,450. These amounts were recorded as contribution to equity. B. The services described in Note 7 are provided by a related party. The related party is the son of the major shareholder and provides legal advice to the Company. As of September 30, 2019 and as of December 31, 2018 the liability amounted to $25,000 – see also Note 7. C. The Company leases its office space from its sole officer and director at no charge. D. As of September 30, 2019 and December 31, 2018 the company has an outstanding note payable to the sole officer and director. - See Note 6. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2019 | |
SUBSEQUENT EVENTS | |
NOTE 10 - SUBSEQUENT EVENTS | In October, 2019 the Company became subject to a "success fee" at the amount of $15,000 pursuant to the terms of a consulting agreement. In accordance with ASC 855-10 we have analyzed our operations subsequent to September 30, 2019 to the date these financial statements were issued, and have determined that, except for the above event, we do not have any material subsequent events to disclose in these financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission. Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustments necessary (consisting only of normal recurring adjustments) to present the financial position of the Company as of September 30, 2019 and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the operating results for the full fiscal year. These financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. |
Use of Estimates | The preparation of the 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 dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | From time to time, the FASB or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codifications ("ASC") are communicated through issuance of an Accounting Standards Update. Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on our financial statements upon adoption. Further, the new lease standard had no effect on the Company since the Company leases its office space from its sole officer and director at no charge. |
Fair Value Measurement | The Company discloses fair value measurements for financial and non-financial assets and liabilities measured at fair value. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
ORGANIZATIONAL AND GOING CONC_2
ORGANIZATIONAL AND GOING CONCERN (Details Narrative) - $ / shares | 7 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
State Country Name | Delaware | |||
Date of Incorporation | Jun. 1, 2017 | |||
Share price of the shares issued in consideration for a business plan | $ 0.001 | |||
Shares issued in consideration of a business plan | 9,000,000 | |||
January and February, 2018 [Member] | Various investor [Member] | ||||
Share Price | $ 0.25 | |||
Common Stock, Shares Issued | 1,204,000 |
OTHER ACCOUNTS PAYABLE (Details
OTHER ACCOUNTS PAYABLE (Details Narrative) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
OTHER ACCOUNTS PAYABLE (Details Narrative) | ||
Other accounts payable | $ 1,860 | $ 5,230 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Account payable to related party | $ 25,000 | $ 25,000 |
Legal Counsel [Member] | ||
Account payable to related party | $ 25,000 | $ 25,000 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Shareholder contribution | $ 9,450 | $ 28,350 | $ 28,350 | $ 37,800 |
Common Stock, Shares Outstanding | 10,204,000 | 10,204,000 | 10,204,000 | |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | 50,000,000 | |
Common Stock, Shares Issued | 10,204,000 | 10,204,000 | 10,204,000 | |
January and February, 2018 [Member] | Various investor [Member] | ||||
Common Stock, Shares Issued | 1,204,000 | |||
Share Price | $ 0.25 |
TRANSACTION WITH RELATED PARTY
TRANSACTION WITH RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Shareholder contribution | $ 9,450 | $ 28,350 | $ 28,350 | $ 37,800 |
Account payable to related party | 25,000 | 25,000 | 25,000 | |
Legal Counsel [Member] | ||||
Account payable to related party | $ 25,000 | $ 25,000 | $ 25,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Oct. 31, 2019USD ($) |
Subsequent Event [Member] | |
Success fee payable under consulting agreement | $ 15,000 |