Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 11, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | 2050 MOTORS, INC. | |
Entity Central Index Key | 867,028 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 33,523,599 | |
Trading Symbol | ETFM | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 479,411 | $ 756,675 |
Prepaid rent | 8,906 | 17,286 |
Other prepaid expenses | 25,000 | 975 |
Total current assets | 513,317 | 774,936 |
Property and equipment, net | 54,723 | 60,309 |
Other assets: | ||
Vehicle deposits | 86,000 | 86,000 |
Other deposits | 4,600 | 4,600 |
License | 50,000 | 50,000 |
Total other assets | 140,600 | 140,600 |
Total assets | 708,640 | 975,845 |
Current Liabilities | ||
Accounts payable | 12,950 | 1,074 |
Accrued interest on loans payable to related parties | 2,991 | 3,550 |
Loans payable to related parties | 100,000 | 100,763 |
Deferred rent | 1,345 | 1,711 |
Total current liabilities | 117,286 | 107,098 |
Stockholders' equity | ||
Common stock; no par value Authorized: 100,000,000 shares at June 30, 2015, and December 31, 2014 Issued and outstanding: 33,523,599 at June 30, 2015 and 33,437,886 at December 31, 2014 | 1,945,621 | 1,915,621 |
Accumulated deficit | (1,354,267) | (1,046,874) |
Total stockholders' equity | 591,354 | 868,747 |
Total liabilities and stockholders' equity | $ 708,640 | $ 975,845 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares None in scaling factor is -9223372036854775296 | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,523,599 | 33,437,886 |
Common stock, shares outstanding | 33,523,599 | 33,437,886 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Income Statement [Abstract] | |||||
Operating revenue | |||||
Operating expenses: | |||||
R&D | $ 16,940 | $ 20,440 | |||
General & Administrative | 141,212 | $ 119,625 | 286,953 | $ 175,590 | |
Total operating expenses | 158,152 | 119,625 | 307,393 | 175,590 | |
Net loss from operations | $ (158,152) | $ (119,625) | $ (307,393) | $ (175,590) | |
Provision for income taxes | |||||
Net loss | $ (158,152) | $ (119,625) | $ (307,393) | $ (175,590) | |
Net loss per share, basic and diluted | $ 0 | $ 0 | $ (0.01) | $ (0.01) | |
Weighted average common equivalent shares outstanding, basic and diluted (1) | [1] | 33,523,599 | 30,556,749 | 33,494,744 | 24,992,184 |
[1] | Earnings per share and weighted average shares outstanding have been restated to reflect a 1 for 4 stock split in May 2014 |
Condensed Statements of Operat5
Condensed Statements of Operations (Unaudited) (Parenthetical) - Jun. 30, 2015 | Total | Total |
Income Statement [Abstract] | ||
Earnings per share and weighted average shares outstanding stock split | 1 for 4 stock split | 1 for 4 stock split |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows provided by (used for) operating activities: | ||
Net loss | $ (307,393) | $ (175,590) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||
Depreciation | $ 9,218 | 2,347 |
Issuance of common stock for services | 1,500 | |
Increase (decrease) in assets and liabilities: | ||
Deposits | (2,200) | |
Prepaid rent | $ 8,380 | $ 9,100 |
Other prepaid expenses | (24,025) | |
Accounts payable | 11,876 | $ 1,506 |
Accrued interest on loans payable to related party | (559) | |
Deferred Rent | (366) | |
Net cash used for operating activities | (302,869) | $ (163,337) |
Cash flows provided (used) for investing activities: | ||
Purchase of property and equipment | (3,632) | (36,337) |
Net cash used for investing activities | $ (3,632) | (36,337) |
Cash flows provided (used) by financing activities: | ||
Proceeds from related party advances | 50,000 | |
Payments made on related party advances | $ (763) | (1,000) |
Proceeds from issuance of common stock | 30,000 | 3,000 |
Net cash provided by financing activities | 29,237 | 52,000 |
Net decrease in cash | (277,264) | (147,674) |
Cash, beginning of year | 756,675 | 261,911 |
Cash, end of period | $ 479,411 | $ 114,237 |
Supplemental disclosure of cash flow information - | ||
Income tax payment | ||
Interest payments | $ 6,508 | |
Issuance of Common Stock for debt | 106,000 |
Business
Business | 6 Months Ended |
Jun. 30, 2015 | |
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 | 6 Months Ended |
Jun. 30, 2015 | |
Going Concern | |
Going Concern | 2. GOING CONCERN The Companys 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. Managements 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 Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unaudited Interim Financial Information The accompanying Condensed Consolidated Balance Sheet as of June 30, 2015, the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014, and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP). The unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of June 30, 2015, the results of operations for the three and six months ended June 30, 2015 and 2014, and the cash flows for the six months ended June 30, 2015 and 2014. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the SEC on March 31, 2015. 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 statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less. 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 $0 for the three and six months ended June 30, 2015 and 2014, 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. Property and equipment are depreciated over the useful lives of the asset using the straight line method. Depreciation expense for the six months ended June 30, 2015 and 2014 totaled $9,218 and $2,347, respectively. Depreciation expense for the three months ended June 30, 2015 and 2014 totaled $4,658 and $2,347, respectively. 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 three and six months ended June 30, 2015, and 2014, 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 June 30, 2015 and 2014. Concentration of Credit Risk Cash and cash equivalents are mainly maintained by one highly qualified institution in the United States. At various times such amounts are in excess of federally insured limits. Recent Accounting Pronouncement 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. |
Vehicle Deposits
Vehicle Deposits | 6 Months Ended |
Jun. 30, 2015 | |
Deposits [Abstract] | |
Vehicle Deposits | 4. 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 third 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 | 6 Months Ended |
Jun. 30, 2015 | |
License Agreement | |
License Agreement | 5. LICENSE AGREEMENT In 2012 and 2013, the Company made a total payment of $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. |
Short-Term Advances
Short-Term Advances | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Short-Term Advances | 6. 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 matured on February 28, 2015 and March 30, 2015, respectively. During March 2015, the maturity date of the notes were extended by twelve months. The entire balances plus accrued interest were outstanding as of June 30, 2015. 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 June 30, 2015 and December 31, 2014, the outstanding balance due to this third party was $0 and $763, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. 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 Companys common stock for an amount of approximately $13,000. Rent expense for the six months ended June 30, 2015 and 2014 totaled $45,113 and $32,400, respectively. Rent expense for the three months ended June 30, 2015 and 2014 totaled $22,557 and $19,500, respectively. 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 Transportations 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. 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 no such claims outstanding as of June 30, 2015. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Equity | 8. EQUITY During the six months ended June 30, 2015, the Company issued 85,713 shares of Companys common stock for $0.35 per share for a total cash amount of $30,000. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying Condensed Consolidated Balance Sheet as of June 30, 2015, the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014, and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP). The unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of June 30, 2015, the results of operations for the three and six months ended June 30, 2015 and 2014, and the cash flows for the six months ended June 30, 2015 and 2014. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the SEC on March 31, 2015. |
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 statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less. |
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 $0 for the three and six months ended June 30, 2015 and 2014, 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. Property and equipment are depreciated over the useful lives of the asset using the straight line method. Depreciation expense for the six months ended June 30, 2015 and 2014 totaled $9,218 and $2,347, respectively. Depreciation expense for the three months ended June 30, 2015 and 2014 totaled $4,658 and $2,347, respectively. |
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 three and six months ended June 30, 2015, and 2014, 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 June 30, 2015 and 2014. |
Concentration of Credit Risk | Concentration of Credit Risk Cash and cash equivalents are mainly maintained by one highly qualified institution in the United States. At various times such amounts are in excess of federally insured limits. |
Recent Accounting Pronouncements | Recent Accounting Pronouncement 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. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Details Narrative) - USD ($) None in scaling factor is -9223372036854775296 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||||
Advertising expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Depreciation | $ 4,658 | $ 2,347 | $ 9,218 | $ 2,347 | |
Impairment losses | |||||
Number of warrants outstanding | |||||
Number of options outstanding |
Vehicle Deposits (Details Narra
Vehicle Deposits (Details Narrative) | Dec. 04, 2013USD ($) | Aug. 20, 2013USD ($) | Jun. 30, 2015USD ($)Integer |
Number of prototype test models | Integer | 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 |
Short-Term Advances (Details Na
Short-Term Advances (Details Narrative) - USD ($) | Sep. 30, 2014 | Aug. 29, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Loan bears interest rate | 12.00% | |||||
Due to shareholder | $ 100,000 | |||||
Advanced from third party | $ 40,697 | |||||
Due to third party | $ 0 | $ 763 | ||||
Two Loans [Member] | ||||||
Short term borrowing from third party | $ 50,000 | |||||
Loan bears interest rate | 12.00% | |||||
Loan One [Member] | ||||||
Short term borrowing maturity date | Feb. 28, 2105 | |||||
Loan Two [Member] | ||||||
Short term borrowing maturity date | Mar. 30, 2015 |
Commitments and Contingencies21
Commitments and Contingencies (Details Narrative) | Mar. 01, 2014USD ($) | Jan. 02, 2014USD ($) | Nov. 30, 2014USD ($)shares | Nov. 30, 2013USD ($) | Jun. 30, 2015USD ($)Integer | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Integer | Jun. 30, 2014USD ($) | May. 01, 2014ft² |
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Lease term expiration date | Aug. 15, 2015 | Dec. 30, 2015 | |||||||
Lease monthly payment | $ 2,200 | $ 1,900 | $ 2,400 | ||||||
Area of land | ft² | 4,000 | ||||||||
Lease term period | 3 years | ||||||||
Prepaid the entire lease amount, shares | shares | 10,000 | ||||||||
Prepaid the entire lease amount | $ 13,000 | ||||||||
Rent expenses | $ 22,557 | $ 19,500 | $ 45,113 | $ 32,400 | |||||
Cost of airbag | 500,000 | ||||||||
Maximum cost of airbag | $ 2,000,000 | ||||||||
Number of claims outstanding | Integer | 0 | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Amount of Vehicles per Year (Details) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
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 |
Equity (Details Narrative)
Equity (Details Narrative) - Jun. 30, 2015 - USD ($) | Total |
Equity [Abstract] | |
Shares issued for cash | $ 30,000 |
Shares issued for cash, shares | 85,713 |
Issued share per share | $ 0.35 |