For Quarter Ended: | Commission File Number |
COLORADO | 26-3119496 |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization) | |
4316 Tennyson Street, | 80212 |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer | Accelerated filer | |
Non-accelerated filer | Smaller | |
Page | |
PART I FINANCIAL INFORMATION | |
Item 1. Financial Statements for the period ended | |
Consolidated Balance Sheets | 3 |
Consolidated Statements of Operations (Unaudited) | 4 |
Consolidated Statements of Cash Flows (Unaudited) | 5 |
Notes to Consolidated Financial Statements (Unaudited) | 6 |
Item 2. | |
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. | 11 |
Item 5. Other Information | 11 |
Item 6. Exhibits | 12 |
Signatures | 13 |
September 30, | December 31, | March 31, | December 31, | |||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 37,385 | $ | 60,202 | $ | 39,463 | $ | 49,437 | ||||||||
Rent receivable | 2,086 | 500 | 1,210 | 4,176 | ||||||||||||
Related party receivable | 1,398 | - | ||||||||||||||
Prepaid expenses | 2,816 | 1,737 | 1,248 | - | ||||||||||||
Total current assets | 42,287 | 62,439 | 43,319 | 53,613 | ||||||||||||
Property and equipment, net | 803,053 | 820,203 | 792,060 | 797,557 | ||||||||||||
Other assets: | ||||||||||||||||
Security deposits | 1,400 | 1,400 | 1,400 | 1,400 | ||||||||||||
Total assets | $ | 846,740 | $ | 884,042 | $ | 836,779 | $ | 852,570 | ||||||||
Liabilities and Shareholders' Equity (Deficit) | Liabilities and Shareholders' Equity (Deficit) | Liabilities and Shareholders' Equity (Deficit) | ||||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 22,231 | $ | 18,336 | $ | 16,992 | $ | 21,017 | ||||||||
Accrued wages | 40,612 | 28,612 | 64,612 | 43,612 | ||||||||||||
Accrued liabilities | 54,024 | 56,672 | 55,906 | 61,788 | ||||||||||||
Accrued interest – related party | 4,462 | 3,305 | 1,218 | 4,505 | ||||||||||||
Note payable, current portion | 11,455 | 10,790 | 8,255 | 11,090 | ||||||||||||
Related party note payable | 10,977 | 17,590 | - | 9,397 | ||||||||||||
Total current liabilities | 143,761 | 135,305 | 146,983 | 151,409 | ||||||||||||
Long term debt, net of current portion | 792,187 | 800,864 | 789,774 | 789,774 | ||||||||||||
Total liabilities | 935,948 | 936,169 | 936,757 | 941,183 | ||||||||||||
Commitments and contingencies | - | - | ||||||||||||||
Commitments and Contingencies | ||||||||||||||||
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 | (400,951 | ) | (363,870 | ) | (411,721 | ) | (400,356 | ) | ||||||||
Total shareholders' equity (deficit) | (89,208 | ) | (52,127 | ) | ||||||||||||
Total shareholders' deficit | (99,978 | ) | (88,613 | ) | ||||||||||||
Total liabilities and shareholders' equity (deficit) | $ | 846,740 | $ | 884,042 | ||||||||||||
Total liabilities and shareholders' deficit | $ | 836,779 | $ | 852,570 |
For the Three Months Ended | For the Nine Months Ended | For the Three Months Ended | ||||||||||||||||||||||
September 30, | September 30, | March 31, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2018 | 2017 | |||||||||||||||||||
Commission income | $ | 37,898 | $ | 44,535 | $ | 108,198 | $ | 165,053 | $ | 48,004 | $ | 49,477 | ||||||||||||
Property and rental management income | 65,409 | 59,726 | 192,319 | 176,657 | ||||||||||||||||||||
Revenue | $ | 103,307 | $ | 104,261 | $ | 300,517 | $ | 341,710 | ||||||||||||||||
Rental and property management income | 70,907 | 60,839 | ||||||||||||||||||||||
Total revenue | $ | 118,911 | $ | 110,316 | ||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Commission expense | 29,353 | 4,448 | 35,817 | 52,170 | 31,860 | 4,566 | ||||||||||||||||||
Professional fees | 6,686 | 7,713 | 20,079 | 33,931 | 6,810 | 6,830 | ||||||||||||||||||
General and Administrative | 74,477 | 84,393 | 246,617 | 230,060 | ||||||||||||||||||||
General and administrative | 75,530 | 78,631 | ||||||||||||||||||||||
Total operating expenses | 110,516 | 96,554 | 302,513 | 316,161 | 114,200 | 90,027 | ||||||||||||||||||
Operating income (loss) | (7,209 | ) | 7,707 | (1,996 | ) | 25,549 | ||||||||||||||||||
Operating income | 4,711 | 20,289 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Gain on legal settlement | - | - | 14,560 | - | ||||||||||||||||||||
Other expense | ||||||||||||||||||||||||
Interest expense | (16,520 | ) | (14,418 | ) | (49,645 | ) | (43,369 | ) | (16,076 | ) | (16,585 | ) | ||||||||||||
Total other income (expense) | (16,520 | ) | (14,418 | ) | (35,085 | ) | (43,369 | ) | ||||||||||||||||
Total other expense | (16,076 | ) | (16,585 | ) | ||||||||||||||||||||
Income (loss) before taxes | (23,729 | ) | (6,711 | ) | (37,081 | ) | (17,820 | ) | ||||||||||||||||
Income before taxes | (11,365 | ) | 3,704 | |||||||||||||||||||||
Income tax expense | — | — | — | — | — | — | ||||||||||||||||||
Net income (loss) | $ | (23,729 | ) | $ | (6,711 | ) | $ | (37,081 | ) | $ | (17,820 | ) | $ | (11,365 | ) | $ | 3,704 | |||||||
Basic and diluted loss per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||||||
Basic and diluted income (loss) per share | $ | (0.00 | ) | $ | 0.00 | |||||||||||||||||||
Basic and diluted weighted average | ||||||||||||||||||||||||
common shares outstanding | 13,205,450 | 13,205,450 | 13,205,450 | 13,205,450 | 13,205,450 | 13,205,450 |
For the Three Months Ended | ||||||||
March 31, | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (11,365 | ) | $ | 3,704 | |||
Adjustments to reconcile net income (loss) to net cash provided | ||||||||
(used) by operating activities: | ||||||||
Depreciation and amortization expense | 5,497 | 5,969 | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease in rent receivable | 2,966 | - | ||||||
Increase in prepaid expense | (1,248 | ) | (10,677 | ) | ||||
Increase (decrease) in accrued interest | (3,287 | ) | 369 | |||||
Increase in accrued salary | 21,000 | - | ||||||
Increase (decrease) in accrued liabilities | (5,882 | ) | (9,170 | ) | ||||
Increase (decrease) in accounts payable | (4,025 | ) | 763 | |||||
Net cash provided by (used in) operating activities | 3,656 | (9,042 | ) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from related party payable | 40 | 1,405 | ||||||
Payment of related party payable | (10,835 | ) | (3,000 | ) | ||||
Payment of long term debt | (2,835 | ) | (2,617 | ) | ||||
Net cash used in financing activities | (13,630 | ) | (4,212 | ) | ||||
Net change in cash | (9,974 | ) | (13,254 | ) | ||||
Cash, beginning of period | 49,437 | 60,202 | ||||||
Cash, end of period | $ | 39,463 | $ | 46,948 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes | $ | - | $ | - | ||||
Interest | $ | 15,998 | $ | 16,216 | ||||
NON CASH FINANCING ACTIVITIES: | ||||||||
None |
For the Nine Months Ended | ||||||||
September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (37,081 | ) | $ | (17,820 | ) | ||
Adjustments to reconcile net loss to net cash provided by | ||||||||
(used in) operating activities: | ||||||||
Depreciation and amortization | 17,150 | 17,874 | ||||||
Changes in operating assets and liabilities: | ||||||||
Increase in rent receivable | (1,586 | ) | - | |||||
Increase in prepaid expense | (1,079 | ) | (2,023 | ) | ||||
Increase in accrued interest related party | 1,157 | 309 | ||||||
Increase in accrued liabilities | 9,352 | 2,728 | ||||||
Increase in accounts payable | 3,895 | 16,900 | ||||||
Net cash provided by (used in) operating activities | (8,192 | ) | 17,968 | |||||
Cash flows from investing activities: | ||||||||
Cash paid for fixed assets | - | (940 | ) | |||||
Net cash used in investing activities | - | (940 | ) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from related party payable | 2,387 | 3,145 | ||||||
Payment of related party payable | (9,000 | ) | (9,193 | ) | ||||
Payment of long term debt | (8,012 | ) | (10,363 | ) | ||||
Net cash provided by (used in) financing activities | (14,625 | ) | (16,411 | ) | ||||
Net change in cash | (22,817 | ) | 617 | |||||
Cash, beginning of period | 60,202 | 45,210 | ||||||
Cash, end of period | $ | 37,385 | $ | 45,827 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes | $ | — | $ | — | ||||
Interest | $ | 48,488 | $ | 32,591 | ||||
NON CASH FINANCING ACTIVITIES: | ||||||||
None | — | — |
September 30, 2017 | December 31, 2016 | March 31, 2018 | December 31, 2017 | |||||||||||||
Computer equipment | $ | 5,672 | $ | 5,672 | $ | 5,672 | $ | 5,672 | ||||||||
Furniture and fixtures | 7,777 | 7,777 | 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 | (75,396 | ) | (58,246 | ) | (86,389 | ) | (80,892 | ) | ||||||||
Total fixed assets | $ | 803,053 | $ | 820,203 | ||||||||||||
Total property and equipment | $ | 792,060 | $ | 797,557 |
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, | |||||
2017 | $ | 2,778 | |||
2018 | 11,090 | ||||
2019 | 789,774 | ||||
$ | 803,642 |
Year Ending December 31, | ||||
2018 | 8,255 | |||
2019 | 789,774 | |||
$ | 798,029 |
Exhibit Number | Description | |
31.1 | ||
32.1 | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
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 |