Direct Investment (FEPI) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 14, 2017
Document And Entity Information
Entity Registrant Name	FIRST EQUITY PROPERTIES INC
Entity Central Index Key	726,516
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,057,628
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets
Notes receivable and accrued interest - related parties	$ 2,106,229	$ 2,106,229
Cash and cash equivalents	4,029	900
Total assets	2,110,258	2,107,129
Liabilities and Shareholders' Equity
Notes payable and accrued interest - related parties	836,953	836,953
Accounts payable - other		4,732
Accounts payable - related parties	392,192	375,728
Total liabilities	1,229,145	1,217,413
Shareholders' equity
Common stock, $0.01 par value; 40,000,000 shares authorized; 1,057,628 issued and outstanding	10,576	10,576
Preferred stock, $0.01 par value; 4,960,000 shares authorized; none issued or outstanding
Paid in capital	1,376,682	1,376,682
Retained earnings (deficit)	(506,145)	(497,542)
Total shareholders' equity	881,113	889,716
Total liabilities and shareholders' equity	$ 2,110,258	$ 2,107,129

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	4,960,000	4,960,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	40,000,000	40,000,000
Common Stock, shares issued	1,057,628	1,057,628
Common Stock, shares outstanding	1,057,628	1,057,628

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Revenue from operations	$ 0	$ 0	$ 0	$ 0
Total revenue	0	0	0	0
Operating Expenses
Administrative fees - related parties	18,000	15,000	54,000	45,000
General and administrative	9,154	8,700	47,204	49,665
Total operating expenses	27,154	23,700	101,204	94,665
Income (loss) before interest expense and taxes	(27,154)	(23,700)	(101,204)	(94,665)
Other income (expense)
Interest income - related parties	51,783	51,783	153,661	154,224
Interest expense - related parties	(20,577)	(20,577)	(61,060)	(61,284)
Net income (loss) applicable to common shareholders	$ 4,052	$ 7,506	$ (8,603)	$ (1,725)
Earnings (loss) per share	$ 0	$ 0.01	$ (0.01)	$ 0
Weighted average shares outstanding	1,057,628	1,057,628	1,057,628	1,057,628

Shareholders Equity (Unaudited)

Shareholders Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($)	Common Stock	Additional Paid-In Capital	Retained Earningd (Deficit)	Total
Beginning balance, shares at Dec. 31, 2016	1,057,628
Beginning balance, value at Dec. 31, 2016	$ 10,576	$ 1,376,682	$ (497,542)	$ 889,716
Net income (loss)			(8,603)	(8,603)
Ending balance, shares at Sep. 30, 2017	1,057,628
Ending balance, value at Sep. 30, 2017	$ 10,576	$ 1,376,682	$ (506,145)	$ 881,113

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities
Net Income (Loss)	$ (8,603)	$ (1,725)
(Increase) decrease in
Interest receivable - related parties		30
Accounts payable - other	(4,732)	3,233
Accounts payable - related parties	16,464	(2,350)
Interest payable - related parties
Net cash provided by (used for) operating activities	3,129	(812)
Cash Flows from Investing Activities
Notes receivable - related parties
Net cash provided by (used for) investing activities
Cash Flows from Financing Activities
Notes payable - related parties
Net cash provided by (used for) financing activities
Net increase (decrease) in cash and cash equivalents	3,129	(812)
Cash and cash equivalents at the beginning of period	900	867
Cash and cash equivalents at the end of period	4,029	55
Supplemental disclosures of cash flow information:
Cash paid for interest expense to related parties	61,060	61,284
Cash received for interest on notes receivable	$ 153,661	$ 154,254

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Organization and business First Equity Properties, Inc. is a Nevada based corporation organized in December 19, 1996 and the Company is headquartered in Dallas, TX. The Company’s principal line of business and source of revenue is currently investments and interest on notes receivable. The Company is currently in the business of real estate investing. FEPI is a publicly traded company however, no trading market presently exists for the shares of common stock and its value is therefore not determinable. Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2016. Operating results for the six month period ended September 30, 2017 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2017. Cost capitalization Costs related to planning and developing a project are capitalized and classified as Real Estate development costs in the Consolidated Balance Sheets. We capitalized certain operating expenses until development is substantially complete, but no later than one year from the cessation of major development activity. Newly issued accounting pronouncements We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted. We do not believe that any such guidance will have a material effect on our financial position or results of operation.

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
FEDERAL INCOME TAXES	NOTE 2. FEDERAL INCOME TAXES The Company accounts for income taxes in accordance with Accounting Standards Codification, (“ASC”) No. 740, “Accounting for Income Taxes”. ASC 740 requires an asset and liability approach to financial accounting for income taxes. In the event differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities result in deferred tax assets, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated. Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years.

NOTES RECEIVABLE AND ACCRUED IN

NOTES RECEIVABLE AND ACCRUED INTEREST – RELATED PARTIES	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
NOTES RECEIVABLE AND ACCRUED INTEREST – RELATED PARTIES	NOTE 3. NOTES RECEIVABLE AND ACCRUED INTEREST – RELATED PARTIES Receivables from related parties primarily consist of two notes of $1,565,292 and $489,154 which are payable in quarterly installments of interest only. The notes accrue interest at 10% per annum. The maturity date of these notes has been extended to December 31, 2017. 2017 2016 Notes receivable – related parties Unsecured, due on demand, interest rate of 10%, due monthly $ 2,054,446 $ 2,054,446 Accrued interest – related parties 51,783 51,783 Total notes and accounts receivable – related parties $ 2,106,229 $ 2,106,229 Subsequent payments for interest on notes receivable were received in October 2017 for $51,783 which makes the notes and interest receivable balances current.

NOTES PAYABLE AND ACCRUED INTER

NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES	NOTE 4. NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES 2017 2016 Uncollateralized notes payable – related parties due on demand, interest rate of 10%, payable quarterly $ 816,376 $ 816,376 Accrued interest and intercompany – related parties 20,577 20,577 Total notes payable – related parties $ 836,953 $ 836,953 Long term debt and accrued interest is due December 31, 2017. Subsequent payments for interest on notes payable were made in October 2017 totaling $20,577 which makes the notes and interest payable balances current.

RELATED PARTIES TRANSACTIONS

RELATED PARTIES TRANSACTIONS	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTIES TRANSACTIONS	NOTE 5. RELATED PARTIES TRANSACTIONS Transactions involving related parties The Company has an administrative agreement with Pillar Income Asset Management, Inc., an affiliated entity, for accounting and administrative services. The total expense for the nine months ended September 30, 2017 was $54,000 which is included in General and Administrative expenses of the Statement of Operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 6. SUBSEQUENT EVENTS The Company has evaluated subsequent events through November 14, 2017, the date the financial statements were available to be issued, and has determined that there have been subsequent payments received in October 2017 for interest on notes receivable and subsequent payments made in October 2017 for interest owed on notes payable.

ORGANIZATION AND BASIS OF PRE13

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and business First Equity Properties, Inc. is a Nevada based corporation organized in December 19, 1996 and the Company is headquartered in Dallas, TX. The Company’s principal line of business and source of revenue is currently investments and interest on notes receivable. The Company is currently in the business of real estate investing. FEPI is a publicly traded company however, no trading market presently exists for the shares of common stock and its value is therefore not determinable.
Basis of presentation	Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2016. Operating results for the six month period ended September 30, 2017 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2017.
Cost capitalization	Cost capitalization Costs related to planning and developing a project are capitalized and classified as Real Estate development costs in the Consolidated Balance Sheets. We capitalized certain operating expenses until development is substantially complete, but no later than one year from the cessation of major development activity.
Newly issued accounting pronouncements	Newly issued accounting pronouncements We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted. We do not believe that any such guidance will have a material effect on our financial position or results of operation.

NOTES RECEIVABLE AND ACCRUED 14

NOTES RECEIVABLE AND ACCRUED INTEREST – RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
NOTES RECEIVABLE AND ACCRUED INTEREST- RELATED PARTIES	2017 2016 Notes receivable – related parties Unsecured, due on demand, interest rate of 10%, due monthly $ 2,054,446 $ 2,054,446 Accrued interest – related parties 51,783 51,783 Total notes and accounts receivable – related parties $ 2,106,229 $ 2,106,229

NOTES PAYABLE AND ACCRUED INT15

NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES	2017 2016 Uncollateralized notes payable – related parties due on demand, interest rate of 10%, payable quarterly $ 816,376 $ 816,376 Accrued interest and intercompany – related parties 20,577 20,577 Total notes payable – related parties $ 836,953 $ 836,953

NOTES RECEIVABLE AND ACCRUED 16

NOTES RECEIVABLE AND ACCRUED INTEREST – RELATED PARTIES - NOTES RECEIVABLE AND ACCRUED INTEREST- RELATED PARTIES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Notes receivable – related parties Unsecured, due on demand, interest rate of 10%, due monthly	$ 2,054,446	$ 2,054,446
Accrued interest – related parties	51,783	51,783
Total notes and accounts receivable – related parties	$ 2,106,229	$ 2,106,229

NOTES RECEIVABLE AND ACCRUED 17

NOTES RECEIVABLE AND ACCRUED INTEREST – RELATED PARTIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Oct. 02, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Notes receivable - related parties	$ 2,054,446			$ 2,054,446		$ 2,054,446
Interest income received	51,783	$ 51,783		153,661	$ 154,224
Subsequent Event [Member]
Interest income received			$ 51,783
Note Receivable 1 [Member]
Notes receivable - related parties	1,565,292			$ 1,565,292
Stated interet rate				10.00%
Receivable maturity date				Dec. 31, 2017
Note Receivable 2 [Member]
Notes receivable - related parties	$ 489,154			$ 489,154
Stated interet rate				10.00%
Receivable maturity date				Dec. 31, 2017

NOTES PAYABLE AND ACCRUED INT18

NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES - NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Uncollateralized notes payable – related parties due on demand, interest rate of 10%, payable quarterly	$ 816,376	$ 816,376
Accrued interest and intercompany – related parties	20,577	20,577
Total notes payable – related parties	$ 836,953	$ 836,953

NOTES PAYABLE AND ACCRUED INT19

NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Oct. 02, 2017	Sep. 30, 2017	Sep. 30, 2016
Interest income received	$ 51,783	$ 51,783		$ 153,661	$ 154,224
Subsequent Event [Member]
Interest income received			$ 51,783

RELATED PARTIES TRANSACTIONS (D

RELATED PARTIES TRANSACTIONS (Details Narrative)	9 Months Ended
	Sep. 30, 2017USD ($)
Accounting And Admin [Member]
Related party expense	$ 54,000