Direct Investment (FEPI) 10-Q 16 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 11, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	000-11777
Entity Registrant Name	FIRST EQUITY PROPERTIES, INC.
Entity Central Index Key	0000726516
Entity Tax Identification Number	95-6799846
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	150 S. Pine Island Rd
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Plantation
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33324
City Area Code	(855)
Local Phone Number	456-9782
Title of 12(b) Security	Common Stock
Trading Symbol	FEPI
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,057,628

BALANCE SHEET (unaudited)

BALANCE SHEET (unaudited) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Assets
Note receivable and accrued interest - related party	$ 752,250	$ 750,523
Cash and cash equivalents	0	27,518
Total assets	752,250	778,041
Liabilities and Shareholders' Equity
Accounts payable (including $6,587 and $-0- due to related parties in 2021 and 2020)	6,587	2,494
Total liabilities	6,587	2,494
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)	(641,595)	(611,711)
Total shareholders' equity	745,663	775,547
Total liabilities and shareholders' equity	$ 752,250	$ 778,041

BALANCE SHEET (unaudited) (Pare

BALANCE SHEET (unaudited) (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Due to related parties	$ 6,587	$ 0
Common Stock, par value (in dollars per share)	$ 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
Preferred Stock, par value (in dollars per share)	$ 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

STATEMENTS OF OPERATIONS (unaud

STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating Expenses
Administrative fees - related parties		$ 18,000	$ 3,015	$ 36,000
General and administrative	1,837	4,948	9,713	9,130
Legal and professional fees	4,750	3,156	37,389	33,969
Total operating expenses	6,587	26,104	50,117	79,099
Income (loss) before interest expense and taxes	(6,587)	(26,104)	(50,117)	(79,099)
Other income (expense)
Interest income - related parties	1,727	38,725	20,233	77,450
Interest expense - related parties		(14,569)		(29,138)
Net income (loss) applicable to common shareholders	$ (4,860)	$ (1,948)	$ (29,884)	$ (30,787)
Earnings (loss) per share			$ (0.03)	$ (0.03)
Weighted average shares outstanding	1,057,628	1,057,628	1,057,628	1,057,628

STATEMENT OF OF_CHANGES_IN_SHAR

STATEMENT OF OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 10,576	$ 1,376,682	$ (576,219)	$ 811,039
Balance at beginning, shares at Dec. 31, 2019	1,057,628
Net income (loss)			(30,787)	(30,787)
Ending balance, value at Jun. 30, 2020	$ 10,576	1,376,682	(607,006)	780,252
Balance at ending, shares at Jun. 30, 2020	1,057,628
Beginning balance, value at Mar. 31, 2020	$ 10,576	1,376,682	(605,058)	782,200
Balance at beginning, shares at Mar. 31, 2020	1,057,628
Net income (loss)			(1,948)	(1,948)
Ending balance, value at Jun. 30, 2020	$ 10,576	1,376,682	(607,006)	780,252
Balance at ending, shares at Jun. 30, 2020	1,057,628
Beginning balance, value at Dec. 31, 2020	$ 10,576	1,376,682	(611,711)	775,547
Balance at beginning, shares at Dec. 31, 2020	1,057,628
Net income (loss)			(29,884)	(29,884)
Ending balance, value at Jun. 30, 2021	$ 10,576	1,376,682	(641,595)	745,663
Balance at ending, shares at Jun. 30, 2021	1,057,628
Beginning balance, value at Mar. 31, 2021	$ 10,576	1,376,682	(636,735)	750,523
Balance at beginning, shares at Mar. 31, 2021	1,057,628
Net income (loss)			(4,860)	(4,860)
Ending balance, value at Jun. 30, 2021	$ 10,576	$ 1,376,682	$ (641,595)	$ 745,663
Balance at ending, shares at Jun. 30, 2021	1,057,628

STATEMENT OF CASH FLOWS (Unaudi

STATEMENT OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities
Net Income (Loss)	$ (29,884)	$ (30,787)
Increase (decrease) in
Interest receivable - related party	(1,727)
Accounts receivable - related parties		168,495
Accounts payable - other	(2,494)	166
Accounts payable - related party	6,587
Net cash provided by (used for) operating activities	(27,518)	137,874
Net increase (decrease) in cash and cash equivalents	(27,518)	137,874
Cash and cash equivalents at the beginning of period	27,518	41,526
Cash and cash equivalents at the end of period	0	179,400
Supplemental disclosures of cash flow information:
Cash paid for interest expense to related parties	$ 0	$ 29,138

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2021
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, 2020. Operating results for the six month period ended June 30, 2021 are not necessarily indicative of the results that may be expected for any subsequent quarter 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.

CHANGE OF CONTROL

CHANGE OF CONTROL	6 Months Ended
	Jun. 30, 2021
Change Of Control
CHANGE OF CONTROL	NOTE 2. CHANGE OF CONTROL A Stock Purchase Agreement (the “Agreement”) was made, entered into and closed as of April 7, 2021, by and among A Way Financial, Inc., a Delaware Business Corporation (the “Purchaser”) and TPS Income, Inc., and Nevada Sea Investments, Inc. (the “Sellers”). Sellers were, prior to the transaction closing the beneficial owner of the following shares of the Company: (i)TPS Income, Inc.(“TPS”) owned 37.48 37.82 1,057,628

NOTE RECEIVABLE AND ACCRUED INT

NOTE RECEIVABLE AND ACCRUED INTEREST – RELATED PARTY	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
NOTE RECEIVABLE AND ACCRUED INTEREST – RELATED PARTY	NOTE 3. NOTE RECEIVABLE AND ACCRUED INTEREST – RELATED PARTY In connection with change of control, note receivable - Carmel Realty, Inc., a related party was purchased by Direct Mortgage Investors, Inc., a related party. The note receivables calls for yearly payment of interest income at 1 th Schedule of note receivable and accrued interest - related party June 30, 2021 December 31, 2020 Note receivable – Directed Mortgage Investors, Inc. - related party Unsecured, due on demand $ 750,523 $ — Note receivable – Carmel Realty, Inc. – related party — 750,523 Accrued interest income – related party 1,727 — Total note and account receivable – related party $ 752,250 $ 750,523

RELATED PARTIES TRANSACTIONS

RELATED PARTIES TRANSACTIONS	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
RELATED PARTIES TRANSACTIONS	NOTE 4. 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 had an administrative agreement, through change in control, with Pillar Income Asset Management, Inc., an affiliated entity, for accounting and administrative services. The total expense of the six months ended June 30, 2021 was $ 3,015

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
FEDERAL INCOME TAXES	NOTE 5. 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 6. SUBSEQUENT EVENTS We are closely monitoring the impact of the COVID-19 pandemic on all aspects of our business and across our portfolio. While we did not experience significant disruptions during 2020 from the COVID-19 pandemic, we are unable to predict the impact the COVID-19 pandemic will have on its financial condition, results of operations and cash flows due to numerous uncertainties. The Company has evaluated subsequent events through August 10, 2021, t

ORGANIZATION AND BASIS OF PRE_2

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2021
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, 2020. Operating results for the six month period ended June 30, 2021 are not necessarily indicative of the results that may be expected for any subsequent quarter
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.

NOTE RECEIVABLE AND ACCRUED I_2

NOTE RECEIVABLE AND ACCRUED INTEREST – RELATED PARTY (Tables)	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Schedule of note receivable and accrued interest - related party	Schedule of note receivable and accrued interest - related party June 30, 2021 December 31, 2020 Note receivable – Directed Mortgage Investors, Inc. - related party Unsecured, due on demand $ 750,523 $ — Note receivable – Carmel Realty, Inc. – related party — 750,523 Accrued interest income – related party 1,727 — Total note and account receivable – related party $ 752,250 $ 750,523

CHANGE OF CONTROL (Details Narr

CHANGE OF CONTROL (Details Narrative) - shares	Apr. 07, 2021	Jun. 30, 2021	Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common Stock, issued		1,057,628	1,057,628
Common Stock, outstanding		1,057,628	1,057,628
Stock Purchase Agreement [Member] | TPS Income, Inc.("TPS") [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Percentage of ownership prior to change of control	37.48%
Stock Purchase Agreement [Member] | Nevada Sea Investments, Inc.("Nevada Sea") [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Percentage of ownership prior to change of control	37.82%
Common Stock, issued	1,057,628
Common Stock, outstanding	1,057,628

NOTES RECEIVABLE AND ACCRUED IN

NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Receivables [Abstract]
Unsecured, due on demand	$ 750,523
Note receivable – Carmel Realty, Inc. –  related party		750,523
Accrued interest income –  related party	1,727
Total note and account receivable – related party	$ 752,250	$ 750,523

NOTE RECEIVABLE AND ACCRUED I_3

NOTE RECEIVABLE AND ACCRUED INTEREST – RELATED PARTY (Details Narrative)	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Interest rate	1.00%

RELATED PARTIES TRANSACTIONS (D

RELATED PARTIES TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Entity Listings [Line Items]
General and administrative expenses	$ 1,837	$ 4,948	$ 9,713	$ 9,130
Pillar Income Asset Management, Inc. [Member]
Entity Listings [Line Items]
General and administrative expenses			$ 3,015