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) | |
4316 Tennyson Street, Denver, Colorado | 80212 |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer | Accelerated filer | |
Non-accelerated filer | Smaller reporting company ý | |
(Do not check if smaller reporting company) | Emerging growth company ☐ |
As of NovemberAugust 14, 2016,2017, registrant had outstanding 13,205,450 shares of common stock, no par value of registrant were outstanding.value.
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 Unaudited Consolidated Financial Statements | 6 | ||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 9 | ||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 10 | ||
Item 4. 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. | 11 | ||
Item 5. Other Information | 11 | ||
Item 6. Exhibits | 12 | ||
Signatures | 13 | ||
September 30, | December 31, | June 30, | December 31, | |||||||||||||
2016 | 2015 | 2017 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 45,827 | $ | 45,210 | $ | 38,830 | $ | 60,202 | ||||||||
Rent receivable | 500 | 500 | 4,101 | 500 | ||||||||||||
Prepaid expenses | 2,729 | 706 | 5,633 | 1,737 | ||||||||||||
Total current assets | 49,056 | 46,416 | 48,564 | 62,439 | ||||||||||||
Property and equipment, net | 826,172 | 843,106 | 808,549 | 820,203 | ||||||||||||
Other assets: | ||||||||||||||||
Security deposits | 1,050 | 1,050 | 1,400 | 1,400 | ||||||||||||
Total assets | $ | 876,278 | $ | 890,572 | $ | 858,513 | $ | 884,042 | ||||||||
Liabilities and Shareholders' Equity (Deficit) | ||||||||||||||||
Liabilities and Shareholders' Deficit | Liabilities and Shareholders' Deficit | |||||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 16,900 | $ | - | $ | 18,094 | $ | 18,336 | ||||||||
Accrued wages | 18,612 | 18,612 | 28,612 | 28,612 | ||||||||||||
Accrued liabilities | 70,915 | 68,187 | 50,968 | 56,672 | ||||||||||||
Accrued interest – related party | 3,090 | 2,781 | 4,051 | 3,305 | ||||||||||||
Note payable, current portion | 10,913 | 13,265 | 11,229 | 10,790 | ||||||||||||
Related party note payable | 3,145 | 9,193 | 15,900 | 17,590 | ||||||||||||
Total current liabilities | 123,575 | 112,038 | 128,854 | 135,305 | ||||||||||||
Long term debt, net of current portion | 803,643 | 811,654 | 795,137 | 800,864 | ||||||||||||
Total liabilities | 927,218 | 923,692 | 923,991 | 936,169 | ||||||||||||
Shareholders' equity (deficit): | ||||||||||||||||
Commitments and Contingencies | ||||||||||||||||
Shareholders' 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 | (362,683 | ) | (344,863 | ) | (377,221 | ) | (363,870 | ) | ||||||||
Total shareholder's equity (deficit) | (50,940 | ) | (33,120 | ) | ||||||||||||
Total shareholder's deficit | (65,478 | ) | (52,127 | ) | ||||||||||||
Total liabilities and shareholders' equity (deficit) | $ | 876,278 | $ | 890,572 | ||||||||||||
Total liabilities and shareholders' deficit | $ | 858,513 | $ | 884,042 |
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 Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Commission income | $ | 20,822 | $ | 72,492 | $ | 70,299 | $ | 120,518 | ||||||||
Rental and property and rental management income | 66,072 | 60,025 | 126,911 | 116,930 | ||||||||||||
Revenue | $ | 86,894 | $ | 132,517 | $ | 197,210 | $ | 237,448 | ||||||||
Operating expenses: | ||||||||||||||||
Commission expense | 1,898 | 42,919 | 6,464 | 47,722 | ||||||||||||
Professional fees | 6,563 | 9,939 | 13,393 | 26,218 | ||||||||||||
General and Administrative | 93,508 | 81,668 | 172,139 | 145,665 | ||||||||||||
Total operating expenses | 101,969 | 134,526 | 191,996 | 219,605 | ||||||||||||
Operating income (loss) | (15,075 | ) | (2,009 | ) | 5,214 | 17,843 | ||||||||||
Other income (expense) | ||||||||||||||||
Gain on legal settlement | 14,560 | - | 14,560 | - | ||||||||||||
Interest expense | (16,540 | ) | (14,367 | ) | (33,125 | ) | (28,951 | ) | ||||||||
Total other income (expense) | (1,980 | ) | (14,367 | ) | (18,565 | ) | (28,951 | ) | ||||||||
Net loss | $ | (17,055 | ) | $ | (16,376 | ) | $ | (13,351 | ) | $ | (11,108 | ) | ||||
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 Six Months Ended | ||||||||
June 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (13,351 | ) | $ | (11,108 | ) | ||
Adjustments to reconcile net loss to net cash | ||||||||
Provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 11,654 | 11,871 | ||||||
Changes in operating assets and liabilities: | ||||||||
Increase in rent receivable | (3,601 | ) | — | |||||
Increase in prepaid expense | (3,896 | ) | (4,739 | ) | ||||
Increase in accrued interest | 746 | 184 | ||||||
(Decrease) increase in accrued liabilities | (5,704 | ) | 4,430 | |||||
(Decrease) increase in accounts payable | (242 | ) | 19,277 | |||||
Net cash provided by (used in) operating activities | (14,394 | ) | 19,915 | |||||
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 | 2,310 | 1,258 | ||||||
Payment of related party payable | (4,000 | ) | (9,193 | ) | ||||
Payment of long term debt | (5,288 | ) | (6,848 | ) | ||||
Net cash (used in) financing activities | (6,978 | ) | (14,783 | ) | ||||
Net change in cash | (21,372 | ) | 4,192 | |||||
Cash, beginning of period | 60,202 | 45,210 | ||||||
Cash, end of period | $ | 38,830 | $ | 49,402 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes | $ | — | $ | — | ||||
Interest | $ | 32,379 | $ | 28,767 |
September 30, 2016 | December 31, 2015 | June 30, 2017 | December 31, 2016 | |||||||||||||
Computer equipment | $ | 5,672 | $ | 5,672 | $ | 5,672 | $ | 5,672 | ||||||||
Furniture and fixtures | 7,777 | 6,837 | 7,777 | 7,777 | ||||||||||||
Leasehold improvements | 4,000 | 4,000 | 4,000 | 4,000 | ||||||||||||
Warehouse units | 861,000 | 861,000 | 861,000 | 861,000 | ||||||||||||
Accumulated amortization and depreciation | (52,277 | ) | (34,403 | ) | (69,900 | ) | (58,246 | ) | ||||||||
Total fixed assets | $ | 826,172 | $ | 843,106 | $ | 808,549 | $ | 820,203 |
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 | $ | 2,902 | ||
2017 | 10,790 | |||
2018 | 11,090 | |||
2019 | 789,774 | |||
$ | 814,556 |
Year Ending December 31, | |||||
2017 | $ | 5,502 | |||
2018 | 11,090 | ||||
2019 | 789,774 | ||||
$ | 806,366 |
Exhibit Number | Description | ||
31.1 | |||
32.1 | |||
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 |