For Quarter Ended: | Commission File Number 000-55019 |
COLORADO | 26-3119496 |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization) | |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer o | Accelerated filer o |
Non-accelerated filer o | Smaller reporting company ý |
Page | |
PART I FINANCIAL INFORMATION | |
Item 1. Financial Statements for the period ended | |
Consolidated Balance Sheets (Unaudited) | 3 |
Consolidated Statements of Operations (Unaudited) | 4 |
Consolidated Statements of Cash Flows (Unaudited) | 5 |
Notes to Consolidated Financial Statements | 6 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 8 |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 10 |
Item 4. Controls and Procedures | 10 |
Item 4T. Controls and Procedures | 10 |
PART II OTHER INFORMATION | |
Item 1. Legal Proceedings | 11 |
Item 1A. Risk Factors | 11 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 11 |
Item 3. Defaults Upon Senior Securities | 11 |
Item 4. Mine Safety | 11 |
Item 5. Other Information | 11 |
Item 6. Exhibits | 12 |
Signatures | 13 |
June 30, | December 31, | September 30, | December 31, | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 49,402 | $ | 45,210 | $ | 45,827 | $ | 45,210 | ||||||||
Rent receivable | 500 | 500 | 500 | 500 | ||||||||||||
Prepaid expenses | 5,445 | 706 | 2,729 | 706 | ||||||||||||
Total current assets | 55,347 | 46,416 | 49,056 | 46,416 | ||||||||||||
Property and equipment, net | 832,175 | 843,106 | 826,172 | 843,106 | ||||||||||||
Other assets: | ||||||||||||||||
Security deposits | 1,050 | 1,050 | 1,050 | 1,050 | ||||||||||||
Total assets | $ | 888,572 | $ | 890,572 | $ | 876,278 | $ | 890,572 | ||||||||
Liabilities and Shareholders' Equity (Deficit) | Liabilities and Shareholders' Equity (Deficit) | Liabilities and Shareholders' Equity (Deficit) | ||||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 19,277 | $ | - | $ | 16,900 | $ | - | ||||||||
Accrued wages | 18,612 | 18,612 | 18,612 | 18,612 | ||||||||||||
Accrued liabilities | 72,617 | 68,187 | 70,915 | 68,187 | ||||||||||||
Accrued interest – related party | 2,965 | 2,781 | 3,090 | 2,781 | ||||||||||||
Note payable, current portion | 11,704 | 13,265 | 10,913 | 13,265 | ||||||||||||
Related party note payable | 1,258 | 9,193 | 3,145 | 9,193 | ||||||||||||
Total current liabilities | 126,433 | 112,038 | 123,575 | 112,038 | ||||||||||||
Long term debt, net of current portion | 806,367 | 811,654 | 803,643 | 811,654 | ||||||||||||
Total liabilities | 932,800 | 923,692 | 927,218 | 923,692 | ||||||||||||
Shareholders' equity (deficit): | ||||||||||||||||
Common stock, no par value; 100,000,000 shares authorized, | ||||||||||||||||
13,205,450 and 13,205,450 shares issued and outstanding, respectively | 215,267 | 215,267 | 215,267 | 215,267 | ||||||||||||
Additional paid in capital | 96,476 | 96,476 | 96,476 | 96,476 | ||||||||||||
Accumulated deficit | (355,971 | ) | (344,863 | ) | (362,683 | ) | (344,863 | ) | ||||||||
Total shareholders' equity (deficit) | (44,228 | ) | (33,120 | ) | ||||||||||||
Total shareholder's equity (deficit) | (50,940 | ) | (33,120 | ) | ||||||||||||
Total liabilities and shareholders' equity (deficit) | $ | 888,572 | $ | 890,572 | $ | 876,278 | $ | 890,572 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Commission income | $ | 72,492 | $ | 56,137 | $ | 120,518 | $ | 73,542 | ||||||||
Rental and property and rental management income | 60,025 | 58,904 | 116,930 | 110,742 | ||||||||||||
Revenue | $ | 132,517 | $ | 115,041 | $ | 237,448 | $ | 184,284 | ||||||||
Operating expnses: | ||||||||||||||||
Commision expense | 42,919 | 27,177 | 47,722 | 30,417 | ||||||||||||
Professional fees | 9,939 | 8,349 | 26,218 | 22,341 | ||||||||||||
General and administrative | 81,668 | 59,994 | 145,665 | 123,732 | ||||||||||||
Total operating expenses | 134,526 | 95,520 | 219,605 | 176,490 | ||||||||||||
Operating (loss) income | (2,009 | ) | 19,521 | 17,843 | 7,794 | |||||||||||
Other expense | ||||||||||||||||
Interest expense | (14,367 | ) | (14,764 | ) | (28,951 | ) | (29,579 | ) | ||||||||
Total other expense | (14,367 | ) | (14,764 | ) | (28,951 | ) | (29,579 | ) | ||||||||
Net income (loss) income | $ | (16,376 | ) | $ | 4,757 | $ | (11,108 | ) | $ | (21,785 | ) | |||||
Basic and diluted (loss) income per share | $ | (0.00 | ) | $ | 0.00 | $ | (0.00 | ) | $ | (0.00 | ) | |||||
Basic and diluted weighted average | ||||||||||||||||
common shares outstanding | 13,205,450 | 13,205,450 | 13,205,450 | 13,205,450 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Commission income | $ | 44,535 | $ | 73,928 | $ | 165,053 | $ | 147,470 | ||||||||
Property and rental management income | 59,726 | 29,391 | 176,657 | 140,134 | ||||||||||||
Revenue | $ | 104,261 | $ | 103,319 | $ | 341,710 | $ | 287,604 | ||||||||
Operating expenses: | ||||||||||||||||
Commission expense | 4,448 | 41,257 | 52,170 | 71,674 | ||||||||||||
Professional fees | 7,713 | 5,419 | 33,931 | 27,760 | ||||||||||||
General and Administrative | 84,393 | 61,975 | 230,060 | 185,708 | ||||||||||||
Total operating expenses | 96,554 | 108,651 | 316,161 | 285,142 | ||||||||||||
Operating income (loss) | 7,707 | (5,332 | ) | 25,549 | 2,462 | |||||||||||
Other income (expense) | ||||||||||||||||
Other income | - | - | - | - | ||||||||||||
Interest expense | (14,418 | ) | (14,738 | ) | (43,369 | ) | (44,318 | ) | ||||||||
Total other income (expense) | (14,418 | ) | (14,738 | ) | (43,369 | ) | (44,318 | ) | ||||||||
Income (loss) before taxes | (6,711 | ) | (20,070 | ) | (17,820 | ) | (41,856 | ) | ||||||||
Income tax expense | — | — | — | — | ||||||||||||
Net income (loss) | $ | (6,711 | ) | $ | (20,070 | ) | $ | (17,820 | ) | $ | (41,856 | ) | ||||
Basic and diluted loss per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
Basic and diluted weighted average | ||||||||||||||||
common shares outstanding | 13,205,450 | 13,205,450 | 13,205,450 | 13,205,450 |
For the Nine Months Ended | ||||||||
September 30, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (17,820 | ) | $ | (41,856 | ) | ||
Adjustments to reconcile net loss to net cash provided | ||||||||
(used) by operating activities: | ||||||||
Depreciation and amortization | 17,874 | 19,638 | ||||||
Changes in operating assets and liabilities: | ||||||||
Increase in rent receivable | - | (500 | ) | |||||
Increase in prepaid expense | (2,023 | ) | (5,783 | ) | ||||
Increase in accrued interest related party | 309 | 550 | ||||||
Increase in accrued liabilities | 2,728 | 20,778 | ||||||
Increase in accounts payable | 16,900 | 1,248 | ||||||
Net cash provided by (used in) | ||||||||
operating activities | 17,968 | (5,925 | ) | |||||
Cash flows from investing activities: | ||||||||
Cash paid for fixed assets | (940 | ) | (831 | ) | ||||
Net cash used in investing activities | (940 | ) | (831 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from related party payable | 3,145 | 1,500 | ||||||
Payment of related party payable | (9,193 | ) | - | |||||
Payment of long term debt | (10,363 | ) | (9,719 | ) | ||||
Net cash provided by (used in) | ||||||||
financing activities | (16,411 | ) | (8,219 | ) | ||||
Net change in cash | 617 | (14,975 | ) | |||||
Cash, beginning of period | 45,210 | 36,848 | ||||||
Cash, end of period | $ | 45,827 | $ | 21,873 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes | $ | — | $ | — | ||||
Interest | $ | 32,591 | $ | — | ||||
NON CASH FINANCING ACTIVITIES: | ||||||||
None | — | — |
For the Six Months Ended | ||||||||
June 30, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (11,108 | ) | $ | (21,785 | ) | ||
Adjustments to reconcile net loss to net cash | ||||||||
used by operating activities: | ||||||||
Depreciation and amortization | 11,871 | 13,092 | ||||||
Changes in operating assets and liabilities: | ||||||||
Increase in rent receivable | — | (24,000 | ) | |||||
Increase in prepaid expense | (4,739 | ) | (445 | ) | ||||
Increase in accrued interest - related party | 184 | 345 | ||||||
Increase in accrued liabilities | 4,430 | 8,545 | ||||||
Increase in accounts payable | 19,277 | 21,333 | ||||||
Net cash provided by (used in) | ||||||||
operating activities | 19,915 | (2,915 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchase of fixed assets | (940 | ) | — | |||||
Net cash used in | ||||||||
investing activities | (940 | ) | — | |||||
Cash flows from financing activities: | ||||||||
Proceeds from related party payable | 1,258 | 1,500 | ||||||
Payment of related party payable | (9,193 | ) | - | |||||
Payment of long term debt | (6,848 | ) | (6,445 | ) | ||||
Net cash provided by (used in) | ||||||||
financing activities | (14,783 | ) | (4,945 | ) | ||||
Net change in cash | 4,192 | (7,860 | ) | |||||
Cash, beginning of period | 45,210 | 36,848 | ||||||
Cash, end of period | $ | 49,402 | $ | 28,988 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes | $ | — | $ | — | ||||
Interest | $ | 28,767 | $ | 29,235 | ||||
NON CASH FINANCING ACTIVITIES: |
June 30, 2016 | December 31, 2015 | |||||||
Computer equipment | $ | 5,672 | $ | 5,672 | ||||
Furniture and fixtures | 7,777 | 6,837 | ||||||
Leasehold improvements | 4,000 | 4,000 | ||||||
Warehouse units | 861,000 | 861,000 | ||||||
Accumulated amortization and depreciation | (46,274 | ) | (34,403 | ) | ||||
Total fixed assets | $ | 832,175 | $ | 843,106 |
September 30, 2016 | December 31, 2015 | |||||||
Computer equipment | $ | 5,672 | $ | 5,672 | ||||
Furniture and fixtures | 7,777 | 6,837 | ||||||
Leasehold improvements | 4,000 | 4,000 | ||||||
Warehouse units | 861,000 | 861,000 | ||||||
Accumulated amortization and depreciation | (52,277 | ) | (34,403 | ) | ||||
Total fixed assets | $ | 826,172 | $ | 843,106 |
1 | First and Second year interest rate at 7% with 25 year amortization payment at $5,937 per month. |
2. | Third and Fourth year at 8% with 25 year amortization payment at $6,278 per month. |
3. | Fifth year at 9% with 25 year amortization payment at $6,640 per month. |
4. | Balloon payment of $777,255 due at end of the fifth year. |
Year Ending December 31, | ||||||||
2016 | $ | 6,417 | $ | 2,902 | ||||
2017 | 10,790 | 10,790 | ||||||
2018 | 11,090 | 11,090 | ||||||
2019 | 789,774 | 789,774 | ||||||
$ | 818,071 | $ | 814,556 |
Exhibit Number | Description | ||
31.1 | Certification of CEO/CFO pursuant to Sec. 302 | ||
32.1 | Certification of CEO/CFO pursuant to Sec. 906 | ||
99.1 | Settlement Agreement And Mutual Release | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document* | ||
101.INS | XBRL Instance Document | ||
101SCH | XBRL Taxonomy Extension Schema Document | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
HOME TREASURE FINDERS, INC. AND SUBSIDIARY | ||
(Registrant) | ||
DATE: | BY: | /s/ Corey Wiegand |
Corey Wiegand | ||
President |