Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Mar. 27, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | 2050 MOTORS, INC. | |
Entity Central Index Key | 867028 | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $2,470,653 | |
Entity Common Stock, Shares Outstanding | 33,437,886 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2014 |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash | $756,675 | $261,911 |
Prepaid rent | 17,286 | 9,100 |
Other prepaid expenses | 975 | |
Total current assets | 774,936 | 271,011 |
Property and equipment, net | 60,309 | |
Other assets: | ||
Vehicle deposits | 86,000 | 86,000 |
Other deposits | 4,600 | 2,400 |
License | 50,000 | 50,000 |
Total other assets | 140,600 | 138,400 |
Total assets | 975,845 | 409,411 |
Liabilities and stockholders' equity | ||
Commitments and contingencies | ||
Liabilities | ||
Accounts payable | 1,074 | |
Accrued interest on loans payable to related parties | 3,550 | |
Loans payable to related parties | 100,763 | 1,763 |
Deferred rent | 1,711 | |
Total current liabilities | 107,098 | 1,763 |
Stockholders' equity | ||
Common stock; no par value Authorized: 100,000,000 shares at December 31, 2014 and December 31, 2013 Issued and outstanding: 33,437,886 at December 31, 2014 and 30,634,670 at December 31, 2013 | 1,915,621 | 908,450 |
Accumulated deficit | -1,046,874 | -500,802 |
Total stockholders' equity | 868,747 | 407,648 |
Total liabilities and stockholders' equity | $975,845 | $409,411 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,437,886 | 30,634,670 |
Common stock, shares outstanding | 33,437,886 | 30,634,670 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Income Statement [Abstract] | ||||
Operating revenue | ||||
Operating expenses: | ||||
Total operating expenses | 546,072 | 282,206 | ||
Net loss from operations | -546,072 | -282,206 | ||
Provision for income taxes | ||||
Net loss | ($546,072) | ($282,206) | ||
Net loss per share, basic and diluted | ($0.02) | ($0.01) | ||
Weighted average common equivalent shares outstanding, basic and diluted | 31,589,646 | [1] | 30,634,670 | [1] |
[1] | Earnings per share and weighted average shares outstanding have been restated to reflect a 1 for 4 stock split in May 2014. |
Statements_of_Operations_Paren
Statements of Operations (Parenthetical) | 12 Months Ended |
Dec. 31, 2014 | |
Income Statement [Abstract] | |
Earnings per share and weighted average shares outstanding stock split | 1 for 4 stock split |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (USD $) | Common Stock [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2012 | $202,600 | ($218,596) | ($15,996) |
Balance, shares at Dec. 31, 2012 | 25,929,005 | ||
Shares issued for cash | 495,350 | 495,350 | |
Shares issued for cash, shares | 3,302,333 | ||
Shares issued for services | 210,500 | 210,500 | |
Shares issued for services, shares | 1,403,332 | ||
Net loss | -282,206 | -282,206 | |
Balance at Dec. 31, 2013 | 908,450 | -500,802 | 407,648 |
Balance, shares at Dec. 31, 2013 | 30,634,670 | ||
Shares issued for cash | 955,400 | 955,400 | |
Shares issued for cash, shares | 2,741,146 | ||
Shares issued for services | 51,771 | 51,771 | |
Shares issued for services, shares | 62,070 | ||
Net loss | -546,072 | -546,072 | |
Balance at Dec. 31, 2014 | $1,915,621 | ($1,046,874) | $868,747 |
Balance, shares at Dec. 31, 2014 | 33,437,886 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows provided by (used for) operating activities: | ||
Net loss | ($546,072) | ($282,206) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||
Depreciation | 8,016 | |
Issuance of common stock for services | 51,771 | 210,500 |
Increase (decrease) in assets and liabilities: | ||
Deposits | -2,200 | -2,400 |
Prepaid rent | -8,186 | -9,100 |
Other prepaid expenses | -975 | |
Accounts payable | 1,074 | |
Accrued interest on loans payable to related parties | 3,550 | |
Deferred rent | 1,711 | |
Net cash used for operating activities | -491,311 | -83,206 |
Cash flows provided (used) for investing activities: | ||
Deposit for investment in vehicles | -86,000 | |
Purchase of property and equipment | -68,325 | |
Investment in license | -25,000 | |
Net cash used for investing activities | -68,325 | -111,000 |
Cash flows provided (used) by financing activities: | ||
Proceeds from related party advances | 150,000 | |
Payments made on related party advances | -51,000 | -39,233 |
Proceeds from issuance of common stock | 955,400 | 495,350 |
Net cash provided by financing activities | 1,054,400 | 456,117 |
Net increase in cash | 494,764 | 261,911 |
Cash, beginning of year | 261,911 | |
Cash, end of period | 756,675 | 261,911 |
Supplemental disclosure of cash flow information - | ||
Income tax payment | ||
Interest payment | $411 |
Business
Business | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Business | 1. BUSINESS |
2050 Motors, Inc., (the “Company”) was formed to import, market, and sell electric cars manufactured in China. 2050 Motors has entered into an agreement with Jiangsu Aoxin New Energy Automobile Co., Ltd., located in Jiangsu, China (“Aoxin”), for the distribution in the United States of a new electric automobile, known as the e-Go EV. |
Going_Concern
Going Concern | 12 Months Ended |
Dec. 31, 2014 | |
Going Concern | |
Going Concern | 2. GOING CONCERN |
The Company’s ability to continue in existence is dependent on its ability to develop additional sources of capital, and/or achieve profitable operations, positive cash flows, and the successful distribution of the vehicles in the USA markets. Management’s plan is to aggressively pursue its present business plan. Since inception the Company has funded its operations through the issuance of common stock and related party funding and advances, and will seek additional debt or equity financing as required. However, there can be no assurance that the Company would be successful in raising such additional funds. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Use of Estimates | |||
The preparation of 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 and disclosure of contingent assets and liabilities at the date of the financial amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. | |||
Cash | |||
Cash consists of deposits in one large national bank. | |||
Advertising Costs | |||
Costs incurred for producing and communicating advertising are expensed when incurred and included in selling general and administrative expenses. Advertising expense amounted to $720 and $750 for the years ended December 31, 2014 and 2013, respectively. | |||
Property and Equipment | |||
Property and equipment are stated at cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income. | |||
Depreciation is calculated using straight-line method over the assets estimated useful lives as follows: | |||
Furniture and fixtures | 7 years | ||
Leasehold improvements | Lessor of lease term or life of related assets | ||
Vehicles and parts | 3 years | ||
Tools and equipment | 5 years | ||
Depreciation for the year ended December 31, 2014 totaled $8,016. No depreciation expense was recognized for the year ended December 31, 2013. | |||
Impairment of Long-Lived Assets and Assets | |||
The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recorded. No impairment losses were recognized for the year ended December 31, 2014 and 2013. | |||
Earnings Per Share | |||
Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. For the years ended December 31, 2014, and 2013, the Company has incurred losses; therefore the effect of any Common Stock equivalent would be anti-dilutive during those periods. There were no warrants, options, or other stock equity outstanding as of December 31, 2014 and 2013. | |||
Concentration of Credit Risk | |||
Cash is mainly maintained by one highly qualified institution in the United States. As of December 31, 2014, the bank balance was in excess of federally insured limits. Management does not believe that the Company is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Company has not experienced any losses on our deposits of cash. | |||
Recent Accounting Pronouncement | |||
On January 1, 2013, the Company adopted the new accounting standard that requires disclosures about offsetting and related arrangements for derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing, and securities lending transactions. The adoption of this accounting standard did not have any impact on the Company’s financial statements. | |||
On January 1, 2013, the Company adopted the new accounting standard that provides the option to evaluate qualitative factors to determine whether a calculated impairment test for indefinite-lived intangible assets is necessary. The adoption of this accounting standard did not have any impact on the Company’s financial statements. | |||
In February 2013, the FASB issued a new accounting standard that provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements. This new accounting standard is effective as of January 1, 2014. The adoption of this accounting standard did not have any impact on the Company’s financial statements. | |||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard that requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists and certain criteria are met. The new accounting standard is effective as of January 1, 2014 and is consistent with the Company’s present practice. | |||
In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606). Topic 606 supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments create a new Subtopic 340-40, “Other Assets and Deferred Costs—Contracts with Customers”. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. Management is currently evaluating the impact this guidance will have on Company’s financial position and statement of operations. | |||
In June 2014, FASB issued amendment 2014-10 that eliminates certain financial reporting requirements for Development Stage Entities. This amendment is effective for annual reporting periods beginning after December 15, 2014 and interim periods therein. Early application is permitted. The Company adopted this amendment effective July 1, 2014 by removing the following disclosures: | |||
a) Presentation of inception-to-date information in the statement of income, cash flows and shareholder equity. | |||
b) Labeling the financial statements as those of a development stage entity. | |||
c) Description of the development stage activities in which the entity is engaged. | |||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements – Going Concern”, Subtopic 205-40, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments in this ASU apply to all entities and require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management is currently evaluating the impact this guidance will have on Company’s financial position and results of operations. | |||
Income Taxes | |||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. This statement requires an asset and liability approach for accounting for income taxes. The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an entity in its tax returns that might be uncertain. | |||
The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company files income tax returns in the U.S. and various state jurisdictions. The Company is subject to examinations by U.S. Federal and State tax authorities from 2012 (inception) to the present, generally for three years after they are filed. | |||
Foreign Currency Risk | |||
Any significant changes in foreign currency exchange rates may have significant impact on Company’s future financial statements upon fulfilling certain purchase commitments in accordance to the license agreement disclosed in Note 8. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Property, Plant and Equipment [Abstract] | |||||
Property and Equipment | 4. PROPERTY AND EQUIPMENT | ||||
Property and equipment consist of the following as of December 31, 2014: | |||||
Furniture and fixtures | $ | 14,303 | |||
Leasehold improvements | 14,082 | ||||
Vehicles and parts | 18,450 | ||||
Tools and equipment | 21,490 | ||||
68,325 | |||||
Less: accumulated depreciation | 8,016 | ||||
Property and equipment, net | $ | 60,309 |
Vehicle_Deposits
Vehicle Deposits | 12 Months Ended |
Dec. 31, 2014 | |
Vehicle Deposits | |
Vehicle Deposits | 5. VEHICLE DEPOSITS |
2050 Motors has made deposits for three prototype test models for delivery into the United States. One will undergo an advanced crash test known in the Automobile Safety Industry as the “overlap crash test” designed by the Insurance Institute for Highway Safety. The other two will be used for marketing and sales purposes. Actual production line models are not expected to be deliverable until the second quarter of 2015. | |
The total purchase price for these three vehicles was $86,000. This was paid by 2050 Motors in increments of $25,800 on August 20, 2013 and $60,200 on December 4, 2013. |
License_Agreement
License Agreement | 12 Months Ended |
Dec. 31, 2014 | |
License Agreement | |
License Agreement | 6. LICENSE AGREEMENT |
In 2012 and 2013, the Company made payments totaling $50,000 and signed an exclusive license agreement with Aoxin to import, assemble and manufacture the advanced carbon fiber electric vehicle, the e-Go EV model. The cost of this license agreement has been recognized as a long-term asset and is evaluated, by management, for impairment losses at each reporting period. |
ShortTerm_Advances
Short-Term Advances | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Short-Term Advances | 7. SHORT-TERM ADVANCES |
On June 30, 2014, the Company borrowed $50,000 from a shareholder. The loan bears 12% interest. The entire amount plus interest was fully paid on July 25, 2014. | |
On August 29, 2014 and September 30, 2014, the Company issued two loans for a total amount of $100,000 due to a shareholder. The loans bear 12% interest and mature on February 28, 2015 and March 30, 2015, respectively. The entire balances plus accrued interest were outstanding as of December 31, 2014. As of the audit report date, the Company had not paid the outstanding balance of the first loan which matured on February 28, 2015 but is in negotiation with the lender to change the terms. | |
During the year ended December 31, 2013, a third party advanced funds to the Company for the amount of $40,067. The advance is due upon demand and bears no interest. As of December 31, 2014 and December 31, 2013, the outstanding balance due to this third party was $763, and $1,763, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES | ||||
In November 2013, the Company signed a new facility lease. The monthly lease amount is $2,400. The lease term commenced on December 15, 2013 and will expire on December 31, 2015. | |||||
Effective January 1, 2014, the Company signed a residential lease agreement in California for its traveling consultants. The monthly lease amount is $1,900 per month and expires on August 15, 2015. | |||||
Effective March 1, 2014, the Company signed a four thousand square feet of industrial space in North Las Vegas. The term of the lease is for three years and cost $2,200 per month. | |||||
In November 2014, the Company signed a one year lease agreement for a storage facility. The Company prepaid the entire lease amount with 10,000 shares of Company’s common stock for an amount of approximately $13,000. | |||||
Rent expenses were $68,711, $1,275 for the year ended December 31, 2014, and 2013, respectively. | |||||
The minimum aggregate payments due under these leases are as follows: | |||||
Years ending December: | |||||
2015 | $ | 70,400 | |||
2016 | 26,400 | ||||
2017 | 8,800 | ||||
$ | 105,600 | ||||
According to the license agreement signed between the Company and Aoxin, in order to maintain exclusive rights for the United States (US), the Company is required to purchase and sell certain amount of e-Go EV model vehicles per year for a certain period of time starting from the completion of the requirements established by the United States Department of Transportation’s protocols for the e-Go EV model. The table below demonstrates the required amount of vehicles that the Company needs to sell per year. | |||||
First year | 2,000 | ||||
Second year | 6,000 | ||||
Third year | 12,000 | ||||
Fourth year | 24,000 | ||||
Fifth year | 48,000 | ||||
92,000 | |||||
As part of the license agreement, the Company is committed to pay expenses related to any required airbag testing procedures. The cost of these airbags could be as little as $500,000 or as much as $2 million. No testing has been performed through December 31, 2014. | |||||
The Company may from time to time, become a party to various legal proceedings, arising in the ordinary course of business. The Company investigates these claims as they arise. Management does not believe, based on current knowledge, that there were any such claims outstanding as of December 31, 2014 and 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | 9. INCOME TAXES | ||||||||
The Company did not file its income tax returns for fiscal year 2012 and 2013. Management believes that it should not have any material impact on the Company’s financials because the Company did not have any tax liabilities due to net loss incurred for these years. | |||||||||
Based on the available information and other factors, management believes it is more likely than not that the net deferred tax assets at December 31, 2014 and 2013 will not be fully realizable. Accordingly, management has recorded a full valuation allowance against its net deferred tax assets at December 31, 2014 and 2013. At December 31, 2014 and 2013, the Company had federal net operating loss carry-forwards of approximately $1,047,000 and $501,000, respectively, expiring beginning in 2032. | |||||||||
Deferred tax assets consist of the following components: | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Net loss carryforward | $ | 290,000 | $ | 140,000 | |||||
Valuation allowance | (290,000 | ) | (140,000 | ) | |||||
Total deferred tax assets | $ | - | $ | - |
Equity
Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Equity | 10. EQUITY |
On May 2, 2014, Zegarelli Group International (“Zegarelli”) (OTCBB:ZEGG), signed an Agreement of Reorganization (the “Acquisition Agreement”) with 2050 Motors, Inc., and certain stockholders of 2050 Motors, Inc. whereby Zegarelli acquired all of the issued and outstanding shares of 2050 Motors, Inc. common stock in exchange for 24,994,670 shares of Zegarelli common stock, and the 2050 Motors, Inc. stockholders became the majority owners of Zegarelli. In conjunction with this announcement, Zegarelli filed a Schedule 14F-1 with the U.S. Securities and Exchange Commission (“SEC”) relating to the change in the majority of its board of directors to a group of directors designated by 2050 Motors, Inc. In accordance with the close of the transaction Zegarelli changed its name to 2050 Motors, Inc., and affect a reverse stock split of one for four, reducing its total issued and outstanding shares to 5,670,000 shares prior to the exchange of shares with 2050 Motors, Inc. | |
During the year ended December 31, 2014, the Company issued 2,741,146 shares of Company’s common stock for $0.35 per share for a total cash amount of $955,400. | |
During the year ended December 31, 2014, the Company issued 62,070 shares of Company’s common stock for $51,771 of marketing and consulting services rendered to the Company. | |
On October 15, 2014, the Company signed a memorandum of understanding to sell ten (10%) of Company’s equity stock to Yancheng Municipal State-owned Asset Investment Group. Co. Ltd (YMSIG), an investment and property development company. YMSIG has agreed to purchase 3,750,000 shares of Company’s common stock for a purchase price of $0.75 cents per share. The purchase by YMSIG of a 10% equity position of 2050 Motors must be approved by officials in China. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Use of Estimates | Use of Estimates | ||
The preparation of 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 and disclosure of contingent assets and liabilities at the date of the financial amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. | |||
Cash | Cash | ||
Cash consists of deposits in one large national bank. | |||
Advertising Costs | Advertising Costs | ||
Costs incurred for producing and communicating advertising are expensed when incurred and included in selling general and administrative expenses. Advertising expense amounted to $720 and $750 for the years ended December 31, 2014 and 2013, respectively. | |||
Property and Equipment | Property and Equipment | ||
Property and equipment are stated at cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income. | |||
Depreciation is calculated using straight-line method over the assets estimated useful lives as follows: | |||
Furniture and fixtures | 7 years | ||
Leasehold improvements | Lessor of lease term or life of related assets | ||
Vehicles and parts | 3 years | ||
Tools and equipment | 5 years | ||
Depreciation for the year ended December 31, 2014 totaled $8,016. No depreciation expense was recognized for the year ended December 31, 2013. | |||
Impairment of Long-Lived Assets and Assets | Impairment of Long-Lived Assets and Assets | ||
The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recorded. No impairment losses were recognized for the year ended December 31, 2014 and 2013. | |||
Earnings Per Share | Earnings Per Share | ||
Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. For the years ended December 31, 2014, and 2013, the Company has incurred losses; therefore the effect of any Common Stock equivalent would be anti-dilutive during those periods. There were no warrants, options, or other stock equity outstanding as of December 31, 2014 and 2013. | |||
Concentration of Credit Risk | Concentration of Credit Risk | ||
Cash is mainly maintained by one highly qualified institution in the United States. As of December 31, 2014, the bank balance was in excess of federally insured limits. Management does not believe that the Company is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Company has not experienced any losses on our deposits of cash. | |||
Recent Accounting Pronouncements | Recent Accounting Pronouncement | ||
On January 1, 2013, the Company adopted the new accounting standard that requires disclosures about offsetting and related arrangements for derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing, and securities lending transactions. The adoption of this accounting standard did not have any impact on the Company’s financial statements. | |||
On January 1, 2013, the Company adopted the new accounting standard that provides the option to evaluate qualitative factors to determine whether a calculated impairment test for indefinite-lived intangible assets is necessary. The adoption of this accounting standard did not have any impact on the Company’s financial statements. | |||
In February 2013, the FASB issued a new accounting standard that provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements. This new accounting standard is effective as of January 1, 2014. The adoption of this accounting standard did not have any impact on the Company’s financial statements. | |||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard that requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists and certain criteria are met. The new accounting standard is effective as of January 1, 2014 and is consistent with the Company’s present practice. | |||
In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606). Topic 606 supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments create a new Subtopic 340-40, “Other Assets and Deferred Costs—Contracts with Customers”. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. Management is currently evaluating the impact this guidance will have on Company’s financial position and statement of operations. | |||
In June 2014, FASB issued amendment 2014-10 that eliminates certain financial reporting requirements for Development Stage Entities. This amendment is effective for annual reporting periods beginning after December 15, 2014 and interim periods therein. Early application is permitted. The Company adopted this amendment effective July 1, 2014 by removing the following disclosures: | |||
a) Presentation of inception-to-date information in the statement of income, cash flows and shareholder equity. | |||
b) Labeling the financial statements as those of a development stage entity. | |||
c) Description of the development stage activities in which the entity is engaged. | |||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements – Going Concern”, Subtopic 205-40, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments in this ASU apply to all entities and require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management is currently evaluating the impact this guidance will have on Company’s financial position and results of operations. | |||
Income Taxes | Income Taxes | ||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. This statement requires an asset and liability approach for accounting for income taxes. The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an entity in its tax returns that might be uncertain. | |||
The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company files income tax returns in the U.S. and various state jurisdictions. The Company is subject to examinations by U.S. Federal and State tax authorities from 2012 (inception) to the present, generally for three years after they are filed. | |||
Foreign Currency Risk | Foreign Currency Risk | ||
Any significant changes in foreign currency exchange rates may have significant impact on Company’s future financial statements upon fulfilling certain purchase commitments in accordance to the license agreement disclosed in Note 8. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Summary Of Significant Accounting Policies Tables | |||
Schedule of Property and Equipment Estimated Useful Life | Depreciation is calculated using straight-line method over the assets estimated useful lives as follows: | ||
Furniture and fixtures | 7 years | ||
Leasehold improvements | Lessor of lease term or life of related assets | ||
Vehicles and parts | 3 years | ||
Tools and equipment | 5 years |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Property And Equipment Tables | |||||
Schedule of Property and Equipment | Property and equipment consist of the following as of December 31, 2014: | ||||
Furniture and fixtures | $ | 14,303 | |||
Leasehold improvements | 14,082 | ||||
Vehicles and parts | 18,450 | ||||
Tools and equipment | 21,490 | ||||
68,325 | |||||
Less: accumulated depreciation | 8,016 | ||||
Property and equipment, net | $ | 60,309 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Minimum Aggregate Payments Under Lease | The minimum aggregate payments due under these leases are as follows: | ||||
Years ending December: | |||||
2015 | $ | 70,400 | |||
2016 | 26,400 | ||||
2017 | 8,800 | ||||
$ | 105,600 | ||||
Schedule of Amount of Vehicles Per Year | The table below demonstrates the required amount of vehicles that the Company needs to sell per year. | ||||
First year | 2,000 | ||||
Second year | 6,000 | ||||
Third year | 12,000 | ||||
Fourth year | 24,000 | ||||
Fifth year | 48,000 | ||||
92,000 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes Tables | |||||||||
Components of Deferred Tax Assets | Deferred tax assets consist of the following components: | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Net loss carryforward | $ | 290,000 | $ | 140,000 | |||||
Valuation allowance | (290,000 | ) | (140,000 | ) | |||||
Total deferred tax assets | $ | - | $ | - |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ||
Advertising expense | $720 | $750 |
Depreciation | 8,016 | |
Impairment losses | $0 | $0 |
Number of warrants outstanding | 0 | 0 |
Number of options outstanding | 0 | 0 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Life (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Furniture and fixtures [Member] | |
Estimated Useful Life | 7 years |
Leasehold improvements [Member] | |
Estimated Useful Life, Description | Lessor of lease term or life of related assets |
Vehicles and parts [Member] | |
Estimated Useful Life | 3 years |
Tools And Equipment [Member] | |
Estimated Useful Life | 5 years |
Property_And_Equipment_Schedul
Property And Equipment - Schedule of Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property and equipment, gross | $68,325 | |
Less: accumulated depreciation | 8,016 | |
Property and equipment, net | 60,309 | |
Furniture and fixtures [Member] | ||
Property and equipment, gross | 14,303 | |
Leasehold improvements [Member] | ||
Property and equipment, gross | 14,082 | |
Vehicles and parts [Member] | ||
Property and equipment, gross | 18,450 | |
Tools And Equipment [Member] | ||
Property and equipment, gross | $21,490 |
Vehicle_Deposits_Details_Narra
Vehicle Deposits (Details Narrative) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 04, 2013 | Aug. 20, 2013 | Dec. 31, 2014 | |
Integer | ||||
Number of prototype test models | 3 | |||
2050 Motors [Member] | ||||
Vehicle deposits | $60,200 | $25,800 | ||
Three Vehicles [Member] | ||||
Vehicle deposits | $86,000 |
License_Agreement_Details_Narr
License Agreement (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
License Agreement | ||
Payment for license agreement | $50,000 | $50,000 |
ShortTerm_Advances_Details_Nar
Short-Term Advances (Details Narrative) (USD $) | 6 Months Ended | 0 Months Ended | |||
Jun. 30, 2014 | Aug. 29, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Short term borrowing from third party | $50,000 | ||||
Loan bears interest rate | 12.00% | ||||
Short term borrowing maturity date | 25-Jul-14 | ||||
Advance amount received from related parties | 40,067 | ||||
Due to third party | 763 | 1,763 | |||
Two Loans [Member] | |||||
Short term borrowing from third party | $100,000 | ||||
Loan bears interest rate | 12.00% | ||||
Loan One [Member] | |||||
Short term borrowing maturity date | 28-Feb-15 | ||||
Loan Two [Member] | |||||
Short term borrowing maturity date | 30-Mar-15 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details Narrative) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Mar. 01, 2014 | Jan. 02, 2014 | Nov. 30, 2014 | Nov. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 02, 2014 | |
sqft | |||||||
Lease term expiration date | 15-Aug-15 | 30-Dec-15 | |||||
Lease monthly payment | $2,200 | $1,900 | $2,400 | ||||
Area of land | 4,000 | ||||||
Lease term period | 3 years | 1 year | |||||
Prepaid the entire lease amount, shares | 10,000 | ||||||
Prepaid the entire lease amount | 13,000 | ||||||
Rent expenses | 68,711 | 1,275 | |||||
Minimum [Member] | |||||||
Cost of airbag | 500,000 | ||||||
Maximum [Member] | |||||||
Cost of airbag | $2,000,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Minimum Aggregate Payments Under Lease (Details) (USD $) | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $70,400 |
2016 | 26,400 |
2017 | 8,800 |
Total | $105,600 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Amount of Vehicles Per Year (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Sale of vehicles per year | $92,000 |
First Year [Member] | |
Sale of vehicles per year | 2,000 |
Second Year [Member] | |
Sale of vehicles per year | 6,000 |
Third Year [Member] | |
Sale of vehicles per year | 12,000 |
Fourth Year [Member] | |
Sale of vehicles per year | 24,000 |
Fifth Year [Member] | |
Sale of vehicles per year | $48,000 |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Federal net operating loss carry-forwards | $1,047,000 | $501,000 |
Operating loss carry forward expiration date | 2032 |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Net loss carryforward | $290,000 | $140,000 |
Valuation allowance | -290,000 | -140,000 |
Total deferred tax assets |
Equity_Details_Narrative
Equity (Details Narrative) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | |
Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 15, 2014 | |
Shares issued for cash | $955,400 | $495,350 | ||
Shares issued for services | 51,771 | 210,500 | ||
Number of common stock shares agreed purchase | 10,000 | |||
Yancheng Municipal State-owned Asset Investment Group. Co. Ltd [Member] | ||||
Percentages of sale of equity stock | 10.00% | |||
Number of common stock shares agreed purchase | 3,750,000 | |||
Common stock issuance purchases per share amount | $0.75 | |||
Zegarelli Group International [Member] | ||||
Common stock exchange | 24,994,670 | |||
Reverse stock split | reverse stock split of one for four | |||
Share issued prior exchange | 5,670,000 | |||
Share outstanding prior exchange | 5,670,000 | |||
Shares issued for cash | 2,741,146 | |||
Shares issued for cash, shares | 955,400 | |||
Issued share per share | $0.35 | |||
Shares issued for services | $51,771 | |||
Shares issued for services, shares | 62,070 |