Direct Investment (FEPI) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 14, 2018
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, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,057,628
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018
Entity Emerging Growth Company	false
Entity Small Business	true

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Assets
Notes receivable and accrued interest - related parties	$ 1,553,267	$ 2,106,229
Accounts receivable - related parties	199,650
Cash and cash equivalents	51,927	914
Total assets	1,804,844	2,107,143
Liabilities and Shareholders' Equity
Notes payable and accrued interest - related parties	584,360	836,953
Accounts payable - other	6,635	669
Accounts payable - related parties	367,115	383,413
Total liabilities	958,110	1,221,035
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)	(540,524)	(501,150)
Total shareholders' equity	846,734	886,108
Total liabilities and shareholders' equity	$ 1,804,844	$ 2,107,143

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
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

Statement of Operations (Unaudi

Statement of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue
Revenue from operations
Total revenue
Operating Expenses
Administrative fees - related parties	18,000	18,000	54,000	54,000
General and administrative	12,500	9,154	53,502	47,204
Total operating expenses	30,500	27,154	107,502	101,204
Income (loss) before interest expense and taxes	(30,500)	(27,154)	(107,502)	(101,204)
Other income (expense)
Interest income - related parties	39,181	51,783	120,511	153,661
Interest expense - related parties	(15,359)	(20,577)	(52,383)	(61,060)
Net income (loss) applicable to common shareholders	$ (6,678)	$ 4,052	$ (39,374)	$ (8,603)
Earnings (loss) per share	$ (0.01)		$ (0.04)	$ (0.01)
Weighted average shares outstanding	1,057,628	1,057,628	1,057,628	1,057,628

Statement of Changes in Shareho

Statement of Changes in Shareholders' Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($)	Common Stock	Additional Paid-In Capital	Retained Earnings (Deficit)	Total
Beginning balance, shares at Dec. 31, 2017	1,057,628
Beginning balance, value at Dec. 31, 2017	$ 10,576	$ 1,376,682	$ (501,150)	$ 886,108
Net income (loss)			(39,374)	(39,374)
Ending balance, shares at Sep. 30, 2018	1,057,628
Ending balance, value at Sep. 30, 2018	$ 10,576	$ 1,376,682	$ (540,524)	$ 846,734

Statement of Cash Flows (Unaudi

Statement of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows from Operating Activities
Net Income (Loss)	$ (39,374)	$ (8,603)
Adjustments to reconcile net income applicable to common shareholders to net cash provided by (used in) operating activities:
Interest receivable - related parties	51,783
Accounts receivable - related parties	(199,650)
Accounts payable - other	5,966	(4,732)
Accounts payable - related parties	(16,298)	16,464
Interest payable - related parties	(20,577)
Net cash provided by (used for) operating activities	(218,150)	3,129
Cash Flows from Investing Activities
Notes receivable - related parties	501,179
Net cash provided by (used for) investing activities	501,179
Cash Flows from Financing Activities
Notes payable - related parties	(232,016)
Net cash provided by (used for) financing activities	(232,016)
Net increase (decrease) in cash and cash equivalents	51,013	3,129
Cash and cash equivalents at the beginning of period	914	900
Cash and cash equivalents at the end of period	51,927	4,029
Supplemental disclosures of cash flow information:
Cash paid for interest expense to related parties	$ 72,960	$ 61,060

1. ORGANIZATION AND BASIS OF PR

1. ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2018
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, 2017. Operating results for the nine month period ended September 30, 2018 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2018. 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.

2. FEDERAL INCOME TAXES

2. FEDERAL INCOME TAXES	9 Months Ended
	Sep. 30, 2018
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.

3. NOTES RECEIVABLE AND ACCRUED

3. NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES	9 Months Ended
	Sep. 30, 2018
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 $1,164,113 and $389,154 which are due to the Company 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, 2019. 2018 2017 Notes receivable – related parties Unsecured, due on demand, interest rate of 10%, due monthly $ 1,553,267 $ 2,054,446 Accrued interest – related parties 0 51,783 Total notes and accounts receivable – related parties $ 1,553,267 $ 2,106,229

4. NOTES PAYABLE AND ACCRUED IN

4. NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES	NOTE 4. NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES 2018 2017 Uncollateralized notes payable – related parties due on demand, interest rate of 10%, payable quarterly $ 584,360 $ 816,376 Accrued interest and intercompany – related parties 0 20,577 Total notes payable – related parties $ 584,360 $ 836,953 Long term debt and accrued interest is due December 31, 2019.

5. RELATED PARTIES TRANSACTIONS

5. RELATED PARTIES TRANSACTIONS	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
RELATED PARTIES TRANSACTIONS	NOTE 5. RELATED PARTIES TRANSACTIONS Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in best interest of our company. The Company has an administrative agreement with Pillar Income Asset Management, Inc., an affiliated entity, for accounting and administrative services. The total expense of the nine months ended September 30, 2018 was $54,000 which is included in General and Administrative expenses of the Statements of Operations. Pillar owes the Company $199,650 at September 30, 2018. The Company owes another related entity $367,115 as of September 30, 2018.

6. SUBSEQUENT EVENTS

6. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 6. SUBSEQUENT EVENTS The Company has evaluated subsequent events through November 14, 2018, the date the financial statements were available to be issued, and has determined that there has been no subsequent activity.

1. ORGANIZATION AND BASIS OF _2

1. ORGANIZATION AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2018
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, 2017. Operating results for the nine month period ended September 30, 2018 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2018.
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.

3. NOTES RECEIVABLE AND ACCRU_2

3. NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES	2018 2017 Notes receivable – related parties Unsecured, due on demand, interest rate of 10%, due monthly $ 1,553,267 $ 2,054,446 Accrued interest – related parties 0 51,783 Total notes and accounts receivable – related parties $ 1,553,267 $ 2,106,229

4. NOTES PAYABLE AND ACCRUED _2

4. NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES	2018 2017 Uncollateralized notes payable – related parties due on demand, interest rate of 10%, payable quarterly $ 584,360 $ 816,376 Accrued interest and intercompany – related parties 0 20,577 Total notes payable – related parties $ 584,360 $ 836,953

3. NOTES RECEIVABLE AND ACCRU_3

3. NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Receivables [Abstract]
Notes receivable - related parties Unsecured, due on demand, interest rate of 10%, due monthly	$ 1,553,267	$ 2,054,446
Accrued interest - related parties	0	51,783
Total notes and accounts receivable - related parties	$ 1,553,267	$ 2,106,229

3. NOTES RECEIVABLE AND ACCRU_4

3. NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Notes receivable - related parties	$ 1,553,267		$ 1,553,267		$ 2,054,446
Proceeds from notes receivable			501,179
Interest income received	39,181	$ 51,783	120,511	$ 153,661
Note Receivable 1 [Member]
Notes receivable - related parties	1,164,113		1,164,113
Note Receivable 2 [Member]
Notes receivable - related parties	$ 389,154		$ 389,154

4. NOTES PAYABLE AND ACCRUED _3

4. NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES - NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Uncollateralized notes payable - related parties due on demand, interest rate of 10%, payable quarterly	$ 584,360	$ 816,376
Accrued interest and intercompany - related parties	0	20,577
Total notes payable - related parties	$ 584,360	$ 836,953

4. NOTES PAYABLE AND ACCRUED _4

4. NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Details Narrative) - USD ($)	7 Months Ended	9 Months Ended
	Jul. 31, 2018	Sep. 30, 2018
Debt maturity date		Dec. 31, 2019
Debt interest rate		10.00%
Note Payable [Member]
Repayment of notes payable, interest	$ 0

5. RELATED PARTIES TRANSACTIO_2

5. RELATED PARTIES TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Related Party Transactions [Abstract]
Related party expense	$ 18,000	$ 18,000	$ 54,000	$ 54,000
Due from related party	199,650		199,650
Due to related party	$ 367,115		$ 367,115