Cover
Cover | 9 Months Ended |
Sep. 30, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Sep. 30, 2023 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 0-30786 |
Entity Registrant Name | VIDEO RIVER NETWORKS, INC. |
Entity Central Index Key | 0001084475 |
Entity Tax Identification Number | 87-0627349 |
Entity Incorporation, State or Country Code | NV |
Entity Address, Address Line One | 370 Amapola Ave. |
Entity Address, Address Line Two | Suite 200A |
Entity Address, City or Town | Torrance |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90501 |
City Area Code | 310 |
Local Phone Number | 895-1839 |
Title of 12(g) Security | COMMON STOCK, $0.00001 PAR VALUE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 182,370,497 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 19,456 | $ 64,579 |
Investments - trading securities | 2,882 | 143,198 |
Total Current Assets | 22,338 | 207,777 |
Accrued Interest Receivable | 118,917 | 85,375 |
Fixed assets - net | 58,101 | 101,081 |
Total assets | 4,328,890 | 3,417,967 |
Current Liabilities: | ||
Accrued expenses | 2,400 | 3,400 |
Total Current Liabilities | 2,400 | 3,400 |
Long-Term Liabilities: | ||
Notes payable - net of current portion | 673,756 | 419,979 |
Total Long-Term Liabilities | 673,756 | 419,979 |
Total Liabilities | 676,156 | 423,379 |
STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Preferred stock, $.001 par value, 1,000,000 shares authorized, 1 issued and outstanding as at September 30, 2023, and December 31, 2022 respectively. | ||
Common Stock, $0.001 par value, 200,000,000 shares authorized, 182,370,497 issued and outstanding as at September 30, 2023, and December 31, 2022 respectively. | 182,370 | 182,370 |
Additional paid in capital | 19,206,627 | 19,206,627 |
Accumulated deficit | (15,736,263) | (16,394,409) |
Total Stockholders’ Equity | 3,652,734 | 2,994,588 |
Total Liabilities and Stockholders’ Equity | 4,328,890 | 3,417,967 |
Nonrelated Party [Member] | ||
Current Assets: | ||
Investments - unrelated parties | 30,000 | 30,000 |
Entrepreneurship Development [Member] | ||
Current Assets: | ||
Long term Notes Receivable | 2,080,364 | 1,693,420 |
Related Party [Member] | ||
Current Assets: | ||
Long term Notes Receivable | 1,827,413 | 747,000 |
Long term Investments - related parties | $ 191,757 | $ 553,314 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1 | 1 |
Preferred stock, shares outstanding | 1 | 1 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 182,370,497 | 182,370,497 |
Common stock, shares outstanding | 182,370,497 | 182,370,497 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Total Revenue | $ (18,791) | $ 1,036,461 | $ 1,135,578 | $ 3,284,131 |
Cost of goods sold: | ||||
Total cost of goods sold | 442,063 | 258,671 | 871,090 | |
Gross profit | (18,791) | 594,398 | 876,907 | 2,413,041 |
Operating expenses: | ||||
General and administrative | 32,520 | 72,729 | 109,891 | 213,606 |
Professional fees | 25,877 | 27,668 | 108,756 | 135,324 |
Advertising and promotions | 120 | 114 | 1,083 | |
Interest expense | 38 | |||
Total operating expenses | 58,397 | 100,802 | 218,761 | 350,051 |
Income (loss) from operations | (77,188) | 493,596 | 658,146 | 2,062,990 |
Other Income | ||||
Dividends | ||||
Unrealized gain (loss) | 3,700 | |||
Net Income | $ (77,188) | $ 493,596 | $ 658,146 | $ 2,066,690 |
Earnings (loss) per Share: Basic | $ (0.0004) | $ 0.0027 | $ 0.0036 | $ 0.0113 |
Earnings (loss) per Share:Diluted | $ (0.0004) | $ 0.0027 | $ 0.0036 | $ 0.0113 |
Weighted Average Common Shares Outstanding: Basic | 182,370,497 | 182,370,497 | 182,370,497 | 182,370,497 |
Weighted Average Common Shares Outstanding: Diluted | 182,370,497 | 182,370,497 | 182,370,497 | 182,370,497 |
Entrepreneurship Development [Member] | ||||
Revenue: | ||||
Total Revenue | $ 985,033 | $ 1,425,000 | $ 3,760,033 | |
Cost of goods sold: | ||||
Total cost of goods sold | 442,063 | 258,671 | 871,090 | |
EDI Interest Income [Member] | ||||
Revenue: | ||||
Total Revenue | 36,083 | 33,541 | 114,416 | |
Principal Transactions [Member] | ||||
Revenue: | ||||
Total Revenue | $ (18,791) | $ 15,345 | $ (322,963) | $ (590,318) |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2006 | $ 139,153 | $ 18,974,719 | $ (19,113,872) | |
Balance, shares at Dec. 31, 2006 | 139,153,206 | |||
Net income for the period | ||||
Balance at Dec. 31, 2018 | $ 139,153 | 18,974,719 | (19,113,872) | |
Balance, shares at Dec. 31, 2018 | 139,153,206 | |||
Net income for the period | ||||
Issuance of common stock to employee | $ 30,769 | 30,769 | ||
Issuance of common stock to employee, shares | 30,769,230 | |||
Cumulative Restructuring adjustment | (36,993) | (36,993) | ||
Balance at Dec. 31, 2019 | $ 169,922 | 18,974,719 | (19,150,865) | (6,224) |
Balance, shares at Dec. 31, 2019 | 169,922,436 | |||
Net income for the period | (82,980) | (82,980) | ||
Issuance of common stock | $ 8,000 | 13,978 | 21,978 | |
Issuance of common stock, shares | 8,000,000 | |||
Acquisition & Dispositions | 222,378 | (152,011) | 70,367 | |
Balance at Dec. 31, 2020 | $ 177,922 | 19,211,075 | (19,385,856) | 3,141 |
Balance, shares at Dec. 31, 2020 | 177,922,436 | |||
Net income for the period | 2,206,953 | 2,206,953 | ||
Acquisition & Dispositions | 19,025 | 19,025 | ||
Balance at Dec. 31, 2021 | $ 177,922 | 19,211,075 | (17,159,878) | 2,229,119 |
Balance, shares at Dec. 31, 2021 | 177,922,436 | |||
Net income for the period | 767,121 | 767,121 | ||
Issuance of common stock | $ 4,448 | (4,448) | ||
Issuance of common stock, shares | 4,448,061 | |||
Acquisition & Dispositions | (1,652) | (1,652) | ||
Balance at Dec. 31, 2022 | $ 182,370 | 19,206,627 | (16,394,409) | 2,994,588 |
Balance, shares at Dec. 31, 2022 | 182,370,497 | |||
Net income for the period | 658,146 | 658,146 | ||
Balance at Sep. 30, 2023 | $ 182,370 | $ 19,206,627 | $ (15,736,263) | $ 3,652,734 |
Balance, shares at Sep. 30, 2023 | 182,370,497 |
Statements of Cashflows (Unaudi
Statements of Cashflows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | ||||||
Net Income (Loss) | $ (77,188) | $ 493,596 | $ 658,146 | $ 2,066,690 | $ 767,121 | $ 2,206,953 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||
Inventory Asset: Trading Securities | 140,316 | 242,148 | ||||
Other Accrued Liabilities | (23,542) | (59,747) | ||||
Depreciation | 42,980 | 46,771 | ||||
Net cash provided by (used in) operating activities | 817,900 | 2,295,862 | ||||
Net Cash Flows from Investing Activities: | ||||||
Entrepreneurship Development | 496,328 | (3,511,371) | ||||
Crypto and Digital Assets | (34,000) | |||||
Long term Investments | (447,475) | |||||
Net cash provided by (used in) investing activities | 496,328 | (3,992,846) | ||||
Net Cash Flows from Financing Activities | ||||||
Notes payable - related party | (166,764) | 113,119 | ||||
Notes payable - Long Term | (1,435,364) | 575,000 | ||||
Notes payable - others | 242,777 | 500,000 | ||||
Net cash provided by (used in) financing activities | (1,359,351) | 1,188,119 | ||||
Net increase (decrease) in cash: | (45,123) | (508,865) | ||||
Cash at the beginning of the period: | 64,579 | 599,390 | 599,390 | |||
Cash at the end of the period: | $ 19,456 | $ 90,525 | 19,456 | 90,525 | $ 64,579 | $ 599,390 |
Supplemental disclosures of cash flow information Cash paid during the period for: | ||||||
Cash paid for interest, tax, etc. |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1. NATURE OF OPERATIONS The Company and Nature of Business Video River Networks, Inc. (the “Company”) is a technology firm that operates and manages a portfolio of Electric Vehicles, Artificial Intelligence, Machine Learning and Robotics (“EV-AI-ML-R”) assets, businesses and operations in North America. The Company’s current and target portfolio businesses and assets include operations that design, develop, manufacture and sell high-performance fully electric vehicles and design, manufacture, install and sell Power Controls, Battery Technology, Wireless Technology, and Residential utility meters and remote, mission-critical devices mostly engineered through Artificial Intelligence, Machine Learning and Robotic technologies. Our current technology-focused Power Controls, Battery Technology, Wireless Technology, and Residential utility meters and remote, mission-critical devices. In addition to above list, the Company intends to spread its wings into the Electric Vehicles, Artificial Intelligence, Machine Learning and Robotics (“EV-AI-ML-R”) businesses/markets, targeting acquisition, ownership and operation of acquired EV-AI-ML-R businesses or portfolio of EV-AI-ML-R businesses. Video River Networks, Inc., prior to September 15, 2020, used to be a specialty real estate holding company, focuses on the acquisition, ownership, and management of specialized industrial properties. Prior to its real estate business model, the Company’s Power Controls Division has used wireless technology to control both residential utility meters and remote, mission-critical devices since 2002. The current management of the Company resulted from a purchase of voting control of the Company by Community Economic Development Capital LLC, (“CED Capital”) a California limited liability company. After the change of control transaction, CED Capital spun out the control-stock to its sole unitholder before being sold to the Company for $1. Thereafter CED Capital became an operating subsidiary of the Company. We used the acquisition of method of accounting for acquisition of subsidiaries by the Group method to account for this transaction. The cost of the acquisition was measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. As previously disclosed on our Form 8-K filed with the Securities and Exchange Commission, on December 8, 2019, on October 29, 2019, the company sold one (1) Special 2019 series A preferred share (one preferred share is convertible 150,000,000 share of common stocks) of the company for Fifty Thousand and 00/100 ($50,000/00) Dollars, to Community Economic Development Capital LLC, a California limited liability company. The Special preferred share controls 60% of the company’s total voting rights. On September 15, 2020, Video River Networks, Inc. (the “Company”) entered into a stock purchase agreement with Kid Castle Educational Corporation (“Kid Castle”), an entity related to, and controlled by our President and CEO with respect to the purchase through private placement, of 900,000 3 100 55 97.58 100 On April 21, 2021, the Company sold Cannabinoid Biosciences, Inc. (“CBDX”), a California corporation, to Premier Information Management, Inc. for $ 1 100,000 900,000,000 On December 30, 2021, in exchange for its 87% control block in GiveMePower Corporation, the Company received 100% stake in Alpharidge Capital LLC from GiveMePower, in a cashless transaction, resulting in each public company going its separate way and an independent company. The consolidated financial statements of the Company therefore include Video River Networks, Inc. and subsidiaries of its subsidiary, Alpharidge Capital, LLC (“Alpharidge”), and subsidiaries, in which it has a controlling voting interest and entities consolidated under the variable interest entities (“VIE”) provisions of ASC 810, “Consolidation” (“ASC 810”), after elimination of intercompany transactions and accounts. Following the completion of the transaction with Kid Castle, the Company having been partly freed of the internally-managed real estate holding business that focused on the acquisition, ownership and management of specialized industrial properties, affordable housing and opportunity zone real estate properties and businesses, has decided to return back to its original technology-focused businesses of Power Controls, Battery Technology, Wireless Technology, and Residential utility meters and remote, mission-critical devices. In addition to above list, the Company is spreading its wings into the Electric Vehicles, Artificial Intelligence, Machine Learning and Robotics (“EV-AI-ML-R”) businesses/markets, targeting acquisition, ownership, and operation of acquired EV-AI-ML-R businesses or portfolio of EV-AI-ML-R businesses. The consolidated financial statements of the Company therefore include Video River Networks, Inc., whose main operating subsidiary Alpharidge Capital, LLC (“Alpharidge”), and subsidiaries, in which the Company has a controlling voting interest and entities consolidated under the variable interest entities (“VIE”) provisions of ASC 810, “Consolidation” (“ASC 810”), after elimination of intercompany transactions and accounts. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, in which the Company has a controlling voting interest and entities consolidated under the variable interest entities (“VIE”) provisions of ASC 810, “Consolidation” (“ASC 810”). Inter-company balances and transactions have been eliminated upon consolidation. ASC 810 requires that the investor with the controlling financial interest should consolidate the investee/affiliate. ASC 810-10 requires that an equity interest investor consolidates a VIE when it retains an investment in the entity, is considered a variable interest investor in the entity, and is the primary beneficiary of the entity. An investor in a VIE is a “variable interest beneficiary” when, per an arrangement’s governing documents, the investor will absorb a portion of the VIE’s expected losses or will receive a portion of the entity’s “residual returns.” The variable interest beneficiary retaining a controlling financial interest in the VIE is designated as its “primary beneficiary” and must consolidate the VIE. A variable interest beneficiary retains a “controlling financial interest” in a VIE when that beneficiary retains the power to direct the activities of the VIE that have the greatest influence over the VIE’s economic performance and retains an obligation to absorb the VIE’s significant losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the ASC 810 test above, Video River Networks Video River Networks |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 2. GOING CONCERN Our financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. For the current quarter and nine months ended September 30, 2023, we reported revenue of $ (18,791 1,135,578 15,736,263 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation A summary of significant accounting policies is presented to assist in the understanding of the financial statements. These policies conform to accounting principles generally accepted in the United States of America and have been consistently applied. The Company has elected a calendar year of December 31 year-end. Principles of Consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries, in which the Company has a controlling voting interest and entities consolidated under the variable interest entities (“VIE”) provisions of ASC 810, “Consolidation” (“ASC 810”). The consolidated financial statements include the Company and Video River Networks, Inc., and all its controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we could exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of Income from the date of acquisition. We consolidate variable interest entities if we have operational and financial control and are deemed to be the >50.1% beneficiary of the profit and loss of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of Income from the date such determination is made. COVID-19 Risks, Impacts and Uncertainties COVID-19 Risks, Impacts and Uncertainties — We are subject to the risks arising from COVID-19’s impact on the residential real estate industry. Our management believes that these impacts, which include but are not limited to the following, could have a significant negative effect on our future financial position, results of operations, and cash flows: (i) prohibitions or limitations on in-person activities associated with residential real estate transactions; (ii) lack of consumer desire for in-person interactions and physical home tours; and (iii) deteriorating economic conditions, such as increased unemployment rates, recessionary conditions, lower yields on individuals’ investment portfolios, and more stringent mortgage financing conditions. In addition, we have considered the impacts and uncertainties of COVID-19 in our use of estimates in preparation of our consolidated financial statements. These estimates include, but are not limited to, likelihood of achieving performance conditions under performance-based equity awards, net realizable value of inventory, and the fair value of reporting units and goodwill for impairment. From April 2020, following the government lockdown order, we asked all employees to begin to work from their homes and we also reduced the number of hours available to each of our employees by approximately by approximately 75%. These actions taken in response to the economic impact of COVID-19 on our business resulted in a reduction of productivity for the period ended September 30, 2023 and subsequent quarterly periods. All costs related to these actions are included in general and administrative expenses, as these costs were determined to be direct and incremental. Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) 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 reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents We maintain cash balances in a non-interest-bearing account that currently does not exceed federally insured limits. For the statements of cash flows, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. as of September 30, 2023, and December 31, 2022 we did maintain $ 19,456 64,579 Financial Instruments The estimated fair values for financial instruments were determined at discrete points in time based on relevant market information. These estimates involved uncertainties and could not be determined with precision. The carrying amount of our accounts payable and accruals, our accruals- related parties and loans – related parties approximate their fair values because of the short-term maturities of these instruments. Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 – Pricing inputs are other than quoted prices in active markets but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of accounts payable and accruals and our accruals- related parties. The carrying amount of the out accounts payable and accruals, accruals- related parties and loans – related parties approximates their fair values because of the short-term maturities of these instruments. The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10: SCHEDULE OF FINANCIAL INSTRUMENTS Description Level 1 Level 2 Level 3 Investments – trading securities – September 30, 2023 $ 2,882 $ - $ - Investments – trading securities – December 31, 2022 $ 143,198 $ - $ - Investment – Trading Securities All investment securities are classified as trading securities and are carried at fair value in accordance with ASC 320 Investments — Debt and Equity Securities. Investment transactions are recorded on a trade date basis. Realized gains or losses on sales of investments are based on the first-in, first-out or the specific identification method. Realized and unrealized gains or losses on investments are recorded in the statements of operations as realized and unrealized gains or losses as net revenue. All investment securities are held and transacted by the Company’s broker firm. The Company did not hold more than 4.9% of equity of the shares of any public companies as investments as of September 30, 2023. All investments that are listed on a securities exchange are valued at their last sales price on the primary securities exchange on which such securities are traded on such date. Securities that are not listed on any exchange but are traded over-the-counter are valued at the mean between the last “bid” and “ask” price for such security on such date. The Company does not have any investment securities for which market quotes are not readily available. The Company’s trading securities are held by a third-party brokerage firm, and composed of publicly traded companies with readily available fair value which are quoted prices in active markets. Investments The Company makes certain strategic investments related to its business which are included in other assets in the condensed consolidated statements of financial condition. The Company accounts for these investments as follows: ● Under the equity method of accounting as required under FASB ASC Topic 323, “Investments – Equity Method and Joint Ventures.” These investments, including where the investee is a limited partnership or limited liability company, are recorded at the fair value amount of the Company’s initial investment and are adjusted each period for the Company’s share of the investee’s income or loss. Contributions paid to and distributions received from equity method investees are recorded as additions or reductions, respectively, to the respective investment balance. ● At fair value, if the investment in equity securities has a readily determinable fair value. ● At adjusted cost, if the investment does not have a readily determinable fair value. Adjusted cost represents the historical cost, less impairment if any. If the Company identifies observable price changes in orderly transactions for the identical or a similar investment of the same issuer, the Company measures the equity security at fair value as of the date that the observable transaction occurred in accordance with FASB ASC Topic 321, “Investments in Equity Securities.” A judgmental aspect of accounting for investments is evaluating whether a decline in the value of an investment has occurred. The evaluation of impairment is dependent on specific quantitative and qualitative factors and circumstances surrounding an investment, including recurring operating losses, credit defaults and subsequent rounds of financing. Most of the Company’s equity investments do not have readily determinable market values. All investments are reviewed for changes in circumstances or occurrence of events that suggest the Company’s investment may not be recoverable. An impairment loss, if any, is recognized in the period the determination is made. As of December 31, 2022, the Company carried on its balance sheet, Investment in the total amount of $ 1,869,748 1,316,237 191,757 Significant Transaction Significant Transaction, also known as common control transactions occur frequently, particularly in the context of reorganizations, spinoffs, and initial public offerings. Common control transactions are generally accounted for by the receiving entity based on the nature of the transactions. For example, transactions involving the transfer of an asset (such as an unoccupied building) are accounted for by the receiving entity at the carrying value of the asset transferred on a prospective basis. Conversely, transactions involving the transfer of a business ordinarily will result in a change in reporting entity for the receiving entity and require retrospective combination of the entities for all periods presented using the historical cost basis of the parent. ASC 850 covers transactions and relationships with related parties. It applies to all reporting entities, including the separate financial statements of a subsidiary, as discussed in ASC 850-10-15-2. Identifying related party relationships and transactions requires a reporting entity to first determine whether a party meets the definition of a “related party.” ASC 850-10-20 described related parties to include: a. Affiliates of the entity b. Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity c. Trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management d. Principal owners of the entity and members of their immediate families e. Management of the entity and members of their immediate families f. Other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests g. Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests The following definitions applies under ASC 850-10-20 Affiliate: Control: Immediate family: Management: Principal owners: FASB Statement No. 141 ● An individual or enterprise holds more than 50% of the voting ownership interest of each entity. ● A group of shareholders holds more than 50% of the voting ownership interest of each entity, and contemporaneous written evidence of an agreement to vote a majority of the entities’ shares in concert exists. ● Immediate family members (married couples and their children, but not their grandchildren) hold more than 50% of the voting ownership interest of each entity (with no evidence that those family members will vote their shares in any way other than in concert). Entities may be owned in varying combinations among living siblings and their children. Those situations require careful consideration regarding the substance of the ownership and voting relationships. During the year ended December 31, 2022, the Company recorded several significant transactions including loans from our officers, directors, and entities under the control or influence of our officers and directors. Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of our membership interests including such person’s immediate families, (ii) our management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with us, or (iv) anyone who can significantly influence our financial and operating decisions. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Last fiscal year ended December 31, 2022, the Company sold nine of its EDI Notes and one Mortgage Note to Los Angeles Community Capital (LA Community Capital), a Company controlled by our President and CEO, in exchange for long-term debt owned to LA Community Capital and its affiliates. The EDI Notes were sold at their face (stated) amount without discount and the Mortgage Note was sold at face (stated) amount plus accrued interest. The EDI Notes has a total face amount of $ 2.2 2.2 Revenue, Assets and Liabilities of Consolidated Subsidiary and Financial Statement Relationship As at September 30, 2023 Video River Networks, Inc. has a 81.75 Leases In February 2016, the FASB issued ASU 2016-02, “Leases” that requires for leases longer than one year, a lessee to recognize in the statement of financial condition a right-of-use asset, representing the right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments. The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. The Company has reviewed the new standard and does not expect it to have a material impact to the statement of financial condition or its net capital. Prior to January 1, 2019, the Company accounted for leases under Accounting Standards Codification (ASC) 840, Accounting for Leases. Effective from January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. On February 25, 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. ASC 842 requires that lessees recognize right of use assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. It requires for leases longer than one year, a lessee to recognize in the statement of financial condition a right-of-use asset, representing the right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. ASC 842 supersedes nearly all existing lease accounting guidance under GAAP issued by the Financial Accounting Standards Board (“FASB”) including ASC Topic 840, Leases. The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. The Company does not have operating and financing leases as of September 30, 2023. The adoption of ASC 842 did not materially impact our results of operations, cash flows, or presentation thereof. The Company has reviewed the new standard and does not expect it to have a material impact to the statement of financial condition or its net capital. Income Taxes Under the asset and liability method prescribed within ASC 740, Income Taxes, the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded if necessary, to reduce net deferred tax assets to the amount more likely than not to be realized. Certain prior period deferred tax disclosures were reclassified to conform with current period presentation. ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company’s practice is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in selling and administrative expense. as of September 30, 2023, the Company had no accrued interest or penalties on unrecognized tax benefits. The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. Uncertain Tax Positions We evaluate tax positions in a two-step process. We first determine whether it is more likely than not that a tax position will be sustained upon examination, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We classify gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as long term liabilities in the financial statements. Revenue Recognition The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which requires that five basic steps be followed to recognize revenue: (1) a legally enforceable contract that meets criteria standards as to composition and substance is identified; (2) performance obligations relating to provision of goods or services to the customer are identified; (3) the transaction price, with consideration given to any variable, noncash, or other relevant consideration, is determined; (4) the transaction price is allocated to the performance obligations; and (5) revenue is recognized when control of goods or services is transferred to the customer with consideration given, whether that control happens over time or not. Determination of criteria (3) and (4) are based on our management’s judgments regarding the fixed nature of the selling prices of the products and services delivered and the collectability of those amounts. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded. The Company generates revenue primarily from: (1) the sale of homes/ Revenue Recognition – Sale of homes/properties, This business segment produced zero revenue during the period ended September 30, 2023. Revenue Recognition – Principal (securities) transactions The Company records securities transactions and related revenue and expenses on a trade-date basis. Other income is recognized when earned. Interest Income and Expense The Company earns interest income and incurs interest expense primarily in connection with its electronic brokerage customer business and its securities lending activities, which are recorded on an accrual basis and are included in interest income and interest expense, respectively, in the condensed consolidated statements of comprehensive income. Principal Transactions Principal transactions include gains and losses as a result of changes in the fair value of financial instruments owned, at fair value, financial instruments sold, but not yet purchased, at fair value, and other investments measured at fair value (i.e., unrealized gains and losses) and realized gains and losses related to the Company’s principal transactions. Included are net gains and losses on stocks, options, U.S. and foreign government securities, municipal securities, futures, foreign exchange, precious metals and other derivative instruments, which are reported on a net basis in other income in the condensed consolidated statements of comprehensive income. Dividends are integral to the valuation of stocks. Accordingly, dividend income and expense attributable to financial instruments owned, at fair value and financial instruments sold, but not yet purchased, at fair value, are reported on a net basis in other income in the condensed consolidated statements of comprehensive income. During the period ended September 30, 2023, the Company recognized net revenue $ (18,791 Contract balances Substantially all receivables from contracts with customers within the scope of Accounting Standards Codification (ASC) 606 Revenue From Contracts With Customers Unsatisfied performance obligations We do not have any unsatisfied performance obligations other than those that are subject to an elective practical expedient under ASC 606. The practical expedient applies to and is elected for contracts where we recognize revenue at the amount to which we have the right to invoice for services performed. During the period ended September 30, 2023, the Company did not have any unsatisfied performance obligations (other than those that are subject to an elective practical expedient under ASC 606). Revenue Recognition – Entrepreneurship Development Under ASC 606, an entity should recognize revenue to depict the transfer of 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. FASB ASC 606-10-05-3 through 05-4 and 606-10-10-2 through 10-4. To achieve the core principle of ASC 606, an entity should take the following actions: Step 1: Identify the contract with a customer; Step 2: Identify the performance obligations in the contract; Step 3: Determine the transaction price; Step 4: Allocate the transaction price; and Step 5: Recognize revenue when or as the entity satisfies a performance obligation. Revenue is recognized when a company satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). An entity should consider the terms of the contract and all relevant facts and circumstances when applying the revenue recognition standard. An entity should apply the revenue recognition standard, including the use of any practical expedients, consistently to contracts with similar characteristics and in similar circumstances. As of September 30, 2023, our Entrepreneurship Development Revenue was derived from the sale of asset (control in pubco) to the buyer who assumes control of the pubco at the close of the sales transaction. A sale transaction could involve cash-only, cash and note, or note-only. For the contract that includes financing or convertible note, the seller evaluated the collectibility of the transaction price, and the probability that the seller will collect the consideration. Seller addressed the risk of collectability by using a convertible note with very favorable conversion. Determining whether a sale is to a customer: Step 1: A sales contract/agreement Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price Step 5: Recognize revenue. Entrepreneurship Development revenues : September 30, 2023 , the pubco-control sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities consist of deposits received from customers for sold but undelivered pubco-control. Sales Incentives: Advertising Costs We expense advertising costs when advertisements occur. Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company maintains cash balances at financial institutions within the United States which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to limits of approximately $ 250,000 Stock Based Compensation The cost of equity instruments issued to non-employees in return in accordance with ASC 505-50 “Equity-Based Payments to Non-Employees” for goods and services is measured by the fair value of the goods or services received or the measurement date fair value of the equity instruments issued, whichever is the more readily determinable. Measurement date for non-employees is the earlier of performance commitment date or the completion of services. The cost of employee services received in exchange for equity instruments is based on the grant date fair value of the equity instruments issued in accordance with ASC 718 “Compensation - Stock Compensation.” |
COMMITMENTS & CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS & CONTINGENCIES | NOTE 4. COMMITMENTS & CONTINGENCIES Legal Proceedings We were not subject to any legal proceedings as of September 30, 2023 and to the best of our knowledge, no legal proceedings are pending or threatened. The Company’s principal executive office is located at 370 Amapola Ave., Suite 200A, Torrance, CA 90501. The space is a shared office space, which at the current time is suitable for the conduct of our business. The Company has no real property and do not presently owned any interests in real estate. From time to time, the Company may be involved in certain legal actions and claims arising in the normal course of business. Management is of the opinion that such matters will be resolved without material effect on the Company’s financial condition or results of operations. Contractual Obligations We were not subject to any contractual obligations as at September 30, 2023. |
NET PRINCIPAL TRANSACTIONS INCO
NET PRINCIPAL TRANSACTIONS INCOME | 9 Months Ended |
Sep. 30, 2023 | |
Revenue: | |
NET PRINCIPAL TRANSACTIONS INCOME | NOTE 5. NET PRINCIPAL TRANSACTIONS INCOME The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The Company’s net income from principal transactions primarily consists of revenues from sales of trading securities less original purchase cost (cost of sales). Net principal transactions income primarily consists of income from trading securities earned upon completion of trade, net of any trading fees. A trading is completed when earned and recognized at a point in time, on a trade-date basis, as the Company executes trades. Net trading revenue consisted of the following: SCHEDULE OF NET TRADING REVENUE January 1, 2023 to September 30, 2023 Total Net Revenue from sales of securities $ (18,791 ) Net income from trading securities $ (18,791 ) |
SALES _ INVESTMENT PROPERTY
SALES – INVESTMENT PROPERTY | 9 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
SALES – INVESTMENT PROPERTY | NOTE 6. SALES – INVESTMENT PROPERTY Due to the uncertainty related to the Real Estate Industry due to the ongoing Rate Hike by the US Fed Reserve, the company is holding off |
LINE OF CREDIT _ LOANS - RELATE
LINE OF CREDIT / LOANS - RELATED PARTIES | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT / LOANS - RELATED PARTIES | NOTE 7. LINE OF CREDIT / LOANS - RELATED PARTIES The Company considers its founders, managing directors, employees, significant shareholders, and the portfolio Companies to be affiliates. In addition, companies controlled by any of the above named is also classified as affiliates. Line of credit from related party consisted of the following: SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY September 30, 2023 December 31, 2022 May 20, 2020 (line of credit) Line of credit with maturity date of May 4, 2025 0 673,756 419,979 Total Line of credit - related party 673,756 419,979 Less: current portion Total Long-term Line of credit - related party $ 673,756 $ 419,979 Los Angeles Community Capital - $1,500,000 line of credit On May 5, 2020, the Company amended its line of credit agreement to increase it to the amount of $ 1,500,000 May 4, 2025 0 673,756 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 8. EARNINGS (LOSS) PER SHARE Net Loss per Share Calculation: Basic net loss per common share (“EPS”) is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding for the period. Dilutive earnings per share include the effect of any potentially dilutive debt or equity under the treasury stock method, if including such instruments is dilutive, assuming all dilutive potential common shares were issued. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. The Company’s diluted earnings per share is the same as the basic earnings per share for the period January 1, 2023 to September 30, 2023, as there are no potential shares outstanding that would have a dilutive effect. SCHEDULE OF EARNINGS (LOSS) PER SHARE Period ended September 30, 2023 Year ended December 31, 2022 Net income $ 658,146 767,120 Dividends 1 Adjusted Net income attribution to stockholders $ 658,146 767,121 Weighted-average shares of common stock outstanding Basic and Diluted 182,370,497 182,370,497 Net income per share Basic and Diluted $ 0.0036 0.0086 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9. INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A full valuation allowance is established against all net deferred tax assets as of September 30, 2023, and December 31, 2022, based on estimates of recoverability. While the Company has optimistic plans for its business strategy, it determined that such a valuation allowance was necessary given the current and expected near term losses and the uncertainty with respect to its ability to generate sufficient profits from its business model. We did not provide any current or deferred US federal income tax provision or benefit for any of the periods presented in these financial statements because we have accumulated substantial operating losses over the years. When it is more likely than not, that a tax asset cannot be realized through future income, we must record an allowance against any future potential future tax benefit. We have provided a full valuation allowance against the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forward periods. The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements as of September 30, 2023, and December 31, 2022, as defined under ASC 740, “Accounting for Income Taxes.” We did not recognize any adjustment to the liability for the uncertain tax position and therefore did not record any adjustment to the beginning balance of the accumulated deficit on the balance sheet. A reconciliation of the differences between the effective and statutory income tax rates for the period ended September 30, 2023, and December 31, 2022: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Percent 30-Sep-23 31-Dec-22 Federal statutory rates 21 % $ (3,304,615 ) $ (3,442,826 ) State income taxes 5 % (786,813 ) (819,720 ) Permanent differences -0.5 % 78,681 81,972 Valuation allowance against net deferred tax assets -25.5 % 4,012,747 4,180,574 Effective rate 0 % $ - $ - At September 30, 2023, and December 31, 2022, the significant components of the deferred tax assets are summarized below: SCHEDULE OF DEFERRED TAX ASSETS 30-Sep-23 31-Dec-22 Deferred income tax asset Net operation loss carryforwards 15,736,263 16,394,409 Total deferred income tax asset 4,091,428 4,262,546 Less: valuation allowance (4,091,428 ) (4,262,546 ) Total deferred income tax asset $ - $ - The Company has recorded as of September 30, 2023, and December 31, 2022, a valuation allowance of $ 4,091,428 4,262,546 The valuation allowance of $ 4,091,428 73,297 4,262,546 658,146 The Company conducts an analysis of its tax positions and has concluded that it has no The Company has net operating loss carry-forwards of approximately $ 15,736,263 2033 |
RECENTLY ACCOUNTING PRONOUNCEME
RECENTLY ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ACCOUNTING PRONOUNCEMENTS | NOTE 10. RECENTLY ACCOUNTING PRONOUNCEMENTS Recently Issued Accounting Standards ASU 2019-12 — In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019- 12, Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740, Income Taxes. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will be effective for the Company’s fiscal year beginning October 1, 2021, with early adoption permitted. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The Company does not expect this ASU to have a material impact on its condensed consolidated financial statements. ASU 2016-13 — In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Financial Instruments Targeted Transition Relief In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements Fair Value Measurements In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract Intangibles-Goodwill and Other-Internal-Use Software In August 2014, the FASB issued ASU 2014-15 on “ Presentation of Financial Statements Going Concern Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2013, the FASB issued ASU No. 2013-01, “ Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. Disclosures about Offsetting Assets and Liabilities In February 2013, the FASB issued ASU No. 2013-02, “ Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income In February 2013, the Financial Accounting Standards Board, or FASB, issued ASU No. 2013-04, “ Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date. In March 2013, the FASB issued ASU No. 2013-05, “ Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity In March 2013, the FASB issued ASU 2013-07, “ Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. We have reviewed all the recently issued, but not yet effective, accounting pronouncements. Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. |
INVESTMENT SECURITIES (TRADING)
INVESTMENT SECURITIES (TRADING) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
INVESTMENT SECURITIES (TRADING) | NOTE 11. INVESTMENT SECURITIES (TRADING) The Company applied the fair value accounting treatment for trading securities per ASC 320, with unrealized gains and losses recorded in net income each period. Debt securities classified as trading should be measured at fair value in the currency in which the debt securities are denominated and remeasured into the investor’s functional currency using the spot exchange rate at the balance sheet date. Trading securities are treated using the fair value method, whereby the value of the securities on the company’s balance sheet is equivalent to their current market value. These securities will be recorded in the current assets section under the Investment Securities account and will be offset in the shareholder’s equity section under the unrealized proceeds from sale of short-term investments” account. The Short Term Investments account amount represents the current market value of the securities, and the “Unrealized Proceeds From Sale of Short Term Investments” account represents the cash proceeds that the company would receive if it were to sell the investments at the end of the specified accounting period. |
REAL ESTATE INVESTMENTS
REAL ESTATE INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
REAL ESTATE INVESTMENTS | NOTE 12. REAL ESTATE INVESTMENTS Current Holdings of Real Estate Investments (Inventory): As of September 30, 2023, the Company has $ 0.00 |
MARGINAL LOAN PAYABLE
MARGINAL LOAN PAYABLE | 9 Months Ended |
Sep. 30, 2023 | |
Marginal Loan Payable | |
MARGINAL LOAN PAYABLE | NOTE 13. MARGINAL LOAN PAYABLE As of September 30, 2023, the Company has $ 0.00 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 14. RELATED PARTY TRANSACTIONS The managing member, CEO and director of the Company is involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, he may face a conflict in selecting between the Company and his other business interests. The Company is formulating a policy for the resolution of such conflicts. The Company had the following related party payable transactions: ● Line of credit - On May 5, 2020, the Company entered into a line of credit agreement in the amount of $ 1,500,000 May 4, 2025 0 673,756 On December 30, 2022, the Company sold nine of its EDI Notes and one Mortgage Note to Los Angeles Community Capital (LA Community Capital), a Company controlled by our President and CEO, in exchange for long-term debt owed to LA Community Capital and its affiliates. The EDI Notes were sold at their face (stated) amount without discount and the Mortgage Note was sold at face (stated) amount plus accrued interest. The EDI Notes has a total face amount of $ 2.2 2.2 The Company had the following related party investment transactions: ● Long term Investment – related parties: 1,769,760 1,316,434 The Company does not own any property. It currently shares a leased office with two other organizations that are affiliated to its principal shareholder at 370 Amapola Ave., Suite 200A, Torrance, California 90501. Its principal shareholder and seasonal staff use this location. The approximate cost of the shared office space varies between $ 650 850 |
MERGERS AND ACQUISITIONS
MERGERS AND ACQUISITIONS | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
MERGERS AND ACQUISITIONS | NOTE 15. MERGERS AND ACQUISITIONS On September 15, 2020, Video River Networks, Inc. (the “Company”) entered into a stock purchase agreement with certain corporation related to our President and CEO with respect to the private placement of 900,000 3 100 Similarly, on September 16, 2020, as part of its purchase of unregistered securities from certain corporation related to our President and CEO, the Company, received $ 3.00 1,000,000 100 97 88 50 On April 21, 2021, the Company sold Cannabinoid Biosciences, Inc. (“CBDX”), a California corporation, to Premier Information Management, Inc. for $ 1 100,000 900,000,000 On December 30, 2021, GMPW repurchased back from KDCE, the 1,000,000 87 100 |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 16. SHAREHOLDERS’ EQUITY Preferred Stock As of September 30, 2023, and December 31, 2022, we were authorized to issue 1,000,000 1 0.001 The Company has 1 1 Common Stock The Company is authorized to issue 200,000,000 0.001 Twelve Months ended December 31, 2022 The Company has issued 4,448,061 182,370,497 Warrants No Stock Options The Company has never adopted a stock option plan and has never issued any stock options. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17. SUBSEQUENT EVENTS Pursuant to ASC 855-10, the Company evaluated subsequent events after September 30, 2023 through November 3, 2023, the date these financial statements were issued and has determined there have been no subsequent events for which disclosure is required. The Company did not have any material recognizable subsequent events that required disclosure in these financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation A summary of significant accounting policies is presented to assist in the understanding of the financial statements. These policies conform to accounting principles generally accepted in the United States of America and have been consistently applied. The Company has elected a calendar year of December 31 year-end. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries, in which the Company has a controlling voting interest and entities consolidated under the variable interest entities (“VIE”) provisions of ASC 810, “Consolidation” (“ASC 810”). The consolidated financial statements include the Company and Video River Networks, Inc., and all its controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we could exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of Income from the date of acquisition. We consolidate variable interest entities if we have operational and financial control and are deemed to be the >50.1% beneficiary of the profit and loss of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of Income from the date such determination is made. |
COVID-19 Risks, Impacts and Uncertainties | COVID-19 Risks, Impacts and Uncertainties COVID-19 Risks, Impacts and Uncertainties — We are subject to the risks arising from COVID-19’s impact on the residential real estate industry. Our management believes that these impacts, which include but are not limited to the following, could have a significant negative effect on our future financial position, results of operations, and cash flows: (i) prohibitions or limitations on in-person activities associated with residential real estate transactions; (ii) lack of consumer desire for in-person interactions and physical home tours; and (iii) deteriorating economic conditions, such as increased unemployment rates, recessionary conditions, lower yields on individuals’ investment portfolios, and more stringent mortgage financing conditions. In addition, we have considered the impacts and uncertainties of COVID-19 in our use of estimates in preparation of our consolidated financial statements. These estimates include, but are not limited to, likelihood of achieving performance conditions under performance-based equity awards, net realizable value of inventory, and the fair value of reporting units and goodwill for impairment. From April 2020, following the government lockdown order, we asked all employees to begin to work from their homes and we also reduced the number of hours available to each of our employees by approximately by approximately 75%. These actions taken in response to the economic impact of COVID-19 on our business resulted in a reduction of productivity for the period ended September 30, 2023 and subsequent quarterly periods. All costs related to these actions are included in general and administrative expenses, as these costs were determined to be direct and incremental. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) 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 reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents We maintain cash balances in a non-interest-bearing account that currently does not exceed federally insured limits. For the statements of cash flows, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. as of September 30, 2023, and December 31, 2022 we did maintain $ 19,456 64,579 |
Financial Instruments | Financial Instruments The estimated fair values for financial instruments were determined at discrete points in time based on relevant market information. These estimates involved uncertainties and could not be determined with precision. The carrying amount of our accounts payable and accruals, our accruals- related parties and loans – related parties approximate their fair values because of the short-term maturities of these instruments. |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 – Pricing inputs are other than quoted prices in active markets but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of accounts payable and accruals and our accruals- related parties. The carrying amount of the out accounts payable and accruals, accruals- related parties and loans – related parties approximates their fair values because of the short-term maturities of these instruments. The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10: SCHEDULE OF FINANCIAL INSTRUMENTS Description Level 1 Level 2 Level 3 Investments – trading securities – September 30, 2023 $ 2,882 $ - $ - Investments – trading securities – December 31, 2022 $ 143,198 $ - $ - |
Investment – Trading Securities | Investment – Trading Securities All investment securities are classified as trading securities and are carried at fair value in accordance with ASC 320 Investments — Debt and Equity Securities. Investment transactions are recorded on a trade date basis. Realized gains or losses on sales of investments are based on the first-in, first-out or the specific identification method. Realized and unrealized gains or losses on investments are recorded in the statements of operations as realized and unrealized gains or losses as net revenue. All investment securities are held and transacted by the Company’s broker firm. The Company did not hold more than 4.9% of equity of the shares of any public companies as investments as of September 30, 2023. All investments that are listed on a securities exchange are valued at their last sales price on the primary securities exchange on which such securities are traded on such date. Securities that are not listed on any exchange but are traded over-the-counter are valued at the mean between the last “bid” and “ask” price for such security on such date. The Company does not have any investment securities for which market quotes are not readily available. The Company’s trading securities are held by a third-party brokerage firm, and composed of publicly traded companies with readily available fair value which are quoted prices in active markets. Investments The Company makes certain strategic investments related to its business which are included in other assets in the condensed consolidated statements of financial condition. The Company accounts for these investments as follows: ● Under the equity method of accounting as required under FASB ASC Topic 323, “Investments – Equity Method and Joint Ventures.” These investments, including where the investee is a limited partnership or limited liability company, are recorded at the fair value amount of the Company’s initial investment and are adjusted each period for the Company’s share of the investee’s income or loss. Contributions paid to and distributions received from equity method investees are recorded as additions or reductions, respectively, to the respective investment balance. ● At fair value, if the investment in equity securities has a readily determinable fair value. ● At adjusted cost, if the investment does not have a readily determinable fair value. Adjusted cost represents the historical cost, less impairment if any. If the Company identifies observable price changes in orderly transactions for the identical or a similar investment of the same issuer, the Company measures the equity security at fair value as of the date that the observable transaction occurred in accordance with FASB ASC Topic 321, “Investments in Equity Securities.” A judgmental aspect of accounting for investments is evaluating whether a decline in the value of an investment has occurred. The evaluation of impairment is dependent on specific quantitative and qualitative factors and circumstances surrounding an investment, including recurring operating losses, credit defaults and subsequent rounds of financing. Most of the Company’s equity investments do not have readily determinable market values. All investments are reviewed for changes in circumstances or occurrence of events that suggest the Company’s investment may not be recoverable. An impairment loss, if any, is recognized in the period the determination is made. As of December 31, 2022, the Company carried on its balance sheet, Investment in the total amount of $ 1,869,748 1,316,237 191,757 Significant Transaction Significant Transaction, also known as common control transactions occur frequently, particularly in the context of reorganizations, spinoffs, and initial public offerings. Common control transactions are generally accounted for by the receiving entity based on the nature of the transactions. For example, transactions involving the transfer of an asset (such as an unoccupied building) are accounted for by the receiving entity at the carrying value of the asset transferred on a prospective basis. Conversely, transactions involving the transfer of a business ordinarily will result in a change in reporting entity for the receiving entity and require retrospective combination of the entities for all periods presented using the historical cost basis of the parent. ASC 850 covers transactions and relationships with related parties. It applies to all reporting entities, including the separate financial statements of a subsidiary, as discussed in ASC 850-10-15-2. Identifying related party relationships and transactions requires a reporting entity to first determine whether a party meets the definition of a “related party.” ASC 850-10-20 described related parties to include: a. Affiliates of the entity b. Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity c. Trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management d. Principal owners of the entity and members of their immediate families e. Management of the entity and members of their immediate families f. Other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests g. Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests The following definitions applies under ASC 850-10-20 Affiliate: Control: Immediate family: Management: Principal owners: FASB Statement No. 141 ● An individual or enterprise holds more than 50% of the voting ownership interest of each entity. ● A group of shareholders holds more than 50% of the voting ownership interest of each entity, and contemporaneous written evidence of an agreement to vote a majority of the entities’ shares in concert exists. ● Immediate family members (married couples and their children, but not their grandchildren) hold more than 50% of the voting ownership interest of each entity (with no evidence that those family members will vote their shares in any way other than in concert). Entities may be owned in varying combinations among living siblings and their children. Those situations require careful consideration regarding the substance of the ownership and voting relationships. During the year ended December 31, 2022, the Company recorded several significant transactions including loans from our officers, directors, and entities under the control or influence of our officers and directors. |
Related Party Transactions | Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of our membership interests including such person’s immediate families, (ii) our management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with us, or (iv) anyone who can significantly influence our financial and operating decisions. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Last fiscal year ended December 31, 2022, the Company sold nine of its EDI Notes and one Mortgage Note to Los Angeles Community Capital (LA Community Capital), a Company controlled by our President and CEO, in exchange for long-term debt owned to LA Community Capital and its affiliates. The EDI Notes were sold at their face (stated) amount without discount and the Mortgage Note was sold at face (stated) amount plus accrued interest. The EDI Notes has a total face amount of $ 2.2 2.2 |
Revenue, Assets and Liabilities of Consolidated Subsidiary and Financial Statement Relationship | Revenue, Assets and Liabilities of Consolidated Subsidiary and Financial Statement Relationship As at September 30, 2023 Video River Networks, Inc. has a 81.75 |
Leases | Leases In February 2016, the FASB issued ASU 2016-02, “Leases” that requires for leases longer than one year, a lessee to recognize in the statement of financial condition a right-of-use asset, representing the right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments. The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. The Company has reviewed the new standard and does not expect it to have a material impact to the statement of financial condition or its net capital. Prior to January 1, 2019, the Company accounted for leases under Accounting Standards Codification (ASC) 840, Accounting for Leases. Effective from January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. On February 25, 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. ASC 842 requires that lessees recognize right of use assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. It requires for leases longer than one year, a lessee to recognize in the statement of financial condition a right-of-use asset, representing the right to use the underlying asset for the lease term, and a lease liability, representing the liability to make lease payments. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. ASC 842 supersedes nearly all existing lease accounting guidance under GAAP issued by the Financial Accounting Standards Board (“FASB”) including ASC Topic 840, Leases. The accounting update also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this accounting update requires expanded disclosures about the nature and terms of lease agreements. The Company does not have operating and financing leases as of September 30, 2023. The adoption of ASC 842 did not materially impact our results of operations, cash flows, or presentation thereof. The Company has reviewed the new standard and does not expect it to have a material impact to the statement of financial condition or its net capital. |
Income Taxes | Income Taxes Under the asset and liability method prescribed within ASC 740, Income Taxes, the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded if necessary, to reduce net deferred tax assets to the amount more likely than not to be realized. Certain prior period deferred tax disclosures were reclassified to conform with current period presentation. ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company’s practice is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in selling and administrative expense. as of September 30, 2023, the Company had no accrued interest or penalties on unrecognized tax benefits. The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. |
Uncertain Tax Positions | Uncertain Tax Positions We evaluate tax positions in a two-step process. We first determine whether it is more likely than not that a tax position will be sustained upon examination, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We classify gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as long term liabilities in the financial statements. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which requires that five basic steps be followed to recognize revenue: (1) a legally enforceable contract that meets criteria standards as to composition and substance is identified; (2) performance obligations relating to provision of goods or services to the customer are identified; (3) the transaction price, with consideration given to any variable, noncash, or other relevant consideration, is determined; (4) the transaction price is allocated to the performance obligations; and (5) revenue is recognized when control of goods or services is transferred to the customer with consideration given, whether that control happens over time or not. Determination of criteria (3) and (4) are based on our management’s judgments regarding the fixed nature of the selling prices of the products and services delivered and the collectability of those amounts. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded. The Company generates revenue primarily from: (1) the sale of homes/ Revenue Recognition – Sale of homes/properties, This business segment produced zero revenue during the period ended September 30, 2023. Revenue Recognition – Principal (securities) transactions The Company records securities transactions and related revenue and expenses on a trade-date basis. Other income is recognized when earned. Interest Income and Expense The Company earns interest income and incurs interest expense primarily in connection with its electronic brokerage customer business and its securities lending activities, which are recorded on an accrual basis and are included in interest income and interest expense, respectively, in the condensed consolidated statements of comprehensive income. Principal Transactions Principal transactions include gains and losses as a result of changes in the fair value of financial instruments owned, at fair value, financial instruments sold, but not yet purchased, at fair value, and other investments measured at fair value (i.e., unrealized gains and losses) and realized gains and losses related to the Company’s principal transactions. Included are net gains and losses on stocks, options, U.S. and foreign government securities, municipal securities, futures, foreign exchange, precious metals and other derivative instruments, which are reported on a net basis in other income in the condensed consolidated statements of comprehensive income. Dividends are integral to the valuation of stocks. Accordingly, dividend income and expense attributable to financial instruments owned, at fair value and financial instruments sold, but not yet purchased, at fair value, are reported on a net basis in other income in the condensed consolidated statements of comprehensive income. During the period ended September 30, 2023, the Company recognized net revenue $ (18,791 Contract balances Substantially all receivables from contracts with customers within the scope of Accounting Standards Codification (ASC) 606 Revenue From Contracts With Customers Unsatisfied performance obligations We do not have any unsatisfied performance obligations other than those that are subject to an elective practical expedient under ASC 606. The practical expedient applies to and is elected for contracts where we recognize revenue at the amount to which we have the right to invoice for services performed. During the period ended September 30, 2023, the Company did not have any unsatisfied performance obligations (other than those that are subject to an elective practical expedient under ASC 606). Revenue Recognition – Entrepreneurship Development Under ASC 606, an entity should recognize revenue to depict the transfer of 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. FASB ASC 606-10-05-3 through 05-4 and 606-10-10-2 through 10-4. To achieve the core principle of ASC 606, an entity should take the following actions: Step 1: Identify the contract with a customer; Step 2: Identify the performance obligations in the contract; Step 3: Determine the transaction price; Step 4: Allocate the transaction price; and Step 5: Recognize revenue when or as the entity satisfies a performance obligation. Revenue is recognized when a company satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). An entity should consider the terms of the contract and all relevant facts and circumstances when applying the revenue recognition standard. An entity should apply the revenue recognition standard, including the use of any practical expedients, consistently to contracts with similar characteristics and in similar circumstances. As of September 30, 2023, our Entrepreneurship Development Revenue was derived from the sale of asset (control in pubco) to the buyer who assumes control of the pubco at the close of the sales transaction. A sale transaction could involve cash-only, cash and note, or note-only. For the contract that includes financing or convertible note, the seller evaluated the collectibility of the transaction price, and the probability that the seller will collect the consideration. Seller addressed the risk of collectability by using a convertible note with very favorable conversion. Determining whether a sale is to a customer: Step 1: A sales contract/agreement Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price Step 5: Recognize revenue. Entrepreneurship Development revenues : September 30, 2023 , the pubco-control sales revenues and related costs we deferred related to these obligations were immaterial. Our contract liabilities consist of deposits received from customers for sold but undelivered pubco-control. Sales Incentives: |
Advertising Costs | Advertising Costs We expense advertising costs when advertisements occur. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company maintains cash balances at financial institutions within the United States which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to limits of approximately $ 250,000 |
Stock Based Compensation | Stock Based Compensation The cost of equity instruments issued to non-employees in return in accordance with ASC 505-50 “Equity-Based Payments to Non-Employees” for goods and services is measured by the fair value of the goods or services received or the measurement date fair value of the equity instruments issued, whichever is the more readily determinable. Measurement date for non-employees is the earlier of performance commitment date or the completion of services. The cost of employee services received in exchange for equity instruments is based on the grant date fair value of the equity instruments issued in accordance with ASC 718 “Compensation - Stock Compensation.” |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF FINANCIAL INSTRUMENTS | The table below describes the Company’s valuation of financial instruments using guidance from ASC 820-10: SCHEDULE OF FINANCIAL INSTRUMENTS Description Level 1 Level 2 Level 3 Investments – trading securities – September 30, 2023 $ 2,882 $ - $ - Investments – trading securities – December 31, 2022 $ 143,198 $ - $ - |
NET PRINCIPAL TRANSACTIONS IN_2
NET PRINCIPAL TRANSACTIONS INCOME (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue: | |
SCHEDULE OF NET TRADING REVENUE | Net trading revenue consisted of the following: SCHEDULE OF NET TRADING REVENUE January 1, 2023 to September 30, 2023 Total Net Revenue from sales of securities $ (18,791 ) Net income from trading securities $ (18,791 ) |
LINE OF CREDIT _ LOANS - RELA_2
LINE OF CREDIT / LOANS - RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY | Line of credit from related party consisted of the following: SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY September 30, 2023 December 31, 2022 May 20, 2020 (line of credit) Line of credit with maturity date of May 4, 2025 0 673,756 419,979 Total Line of credit - related party 673,756 419,979 Less: current portion Total Long-term Line of credit - related party $ 673,756 $ 419,979 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF EARNINGS (LOSS) PER SHARE | SCHEDULE OF EARNINGS (LOSS) PER SHARE Period ended September 30, 2023 Year ended December 31, 2022 Net income $ 658,146 767,120 Dividends 1 Adjusted Net income attribution to stockholders $ 658,146 767,121 Weighted-average shares of common stock outstanding Basic and Diluted 182,370,497 182,370,497 Net income per share Basic and Diluted $ 0.0036 0.0086 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | A reconciliation of the differences between the effective and statutory income tax rates for the period ended September 30, 2023, and December 31, 2022: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Percent 30-Sep-23 31-Dec-22 Federal statutory rates 21 % $ (3,304,615 ) $ (3,442,826 ) State income taxes 5 % (786,813 ) (819,720 ) Permanent differences -0.5 % 78,681 81,972 Valuation allowance against net deferred tax assets -25.5 % 4,012,747 4,180,574 Effective rate 0 % $ - $ - |
SCHEDULE OF DEFERRED TAX ASSETS | At September 30, 2023, and December 31, 2022, the significant components of the deferred tax assets are summarized below: SCHEDULE OF DEFERRED TAX ASSETS 30-Sep-23 31-Dec-22 Deferred income tax asset Net operation loss carryforwards 15,736,263 16,394,409 Total deferred income tax asset 4,091,428 4,262,546 Less: valuation allowance (4,091,428 ) (4,262,546 ) Total deferred income tax asset $ - $ - |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) - USD ($) | Dec. 30, 2021 | Apr. 21, 2021 | Sep. 16, 2020 | Sep. 15, 2020 | Oct. 29, 2019 |
Preferred share covertible terms | on October 29, 2019, the company sold one (1) Special 2019 series A preferred share (one preferred share is convertible 150,000,000 share of common stocks) of the company for Fifty Thousand and 00/100 ($50,000/00) Dollars, to Community Economic Development Capital LLC, a California limited liability company. The Special preferred share controls 60% of the company’s total voting rights. | ||||
Exchange for control obtained description | in exchange for its 87% control block in GiveMePower Corporation, the Company received 100% stake in Alpharidge Capital LLC from GiveMePower, in a cashless transaction, resulting in each public company going its separate way and an independent company. | ||||
Cannabinoid Biosciences Inc [Member] | |||||
Sale of stock, consideration received on transaction | $ 1 | ||||
Transfer of interest percentage | 97% | ||||
Kid Castle Educational Corporation [Member] | Preferred Stock [Member] | |||||
Sale of stock | 100,000 | ||||
Kid Castle Educational Corporation [Member] | Common Stock [Member] | |||||
Sale of stock | 900,000,000 | ||||
Kid Castle Educational Corporation [Member] | |||||
Voting control percentage | 55% | ||||
Kid Castle Educational Corporation [Member] | Minimum [Member] | |||||
Voting control percentage | 97.58% | ||||
Kid Castle Educational Corporation [Member] | |||||
Operating and financial control percentage | 100% | ||||
Private Placement [Member] | Kid Castle Educational Corporation [Member] | |||||
Sale of stock | 900,000 | ||||
Sale of stock, consideration received on transaction | $ 3 | ||||
Transfer of interest percentage | 100% |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Revenue | $ (18,791) | $ 1,036,461 | $ 1,135,578 | $ 3,284,131 | |
Accumulated deficit | $ 15,736,263 | $ 15,736,263 | $ 16,394,409 |
SCHEDULE OF FINANCIAL INSTRUMEN
SCHEDULE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Inputs, Level 1 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Investments - trading securities | $ 2,882 | $ 143,198 |
Fair Value, Inputs, Level 2 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Investments - trading securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Investments - trading securities |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 30, 2022 | |
Product Information [Line Items] | ||||||
Variable interest entity percentage description | We consolidate variable interest entities if we have operational and financial control and are deemed to be the >50.1% beneficiary of the profit and loss of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of Income from the date such determination is made. | |||||
Cash equivalents | $ 19,456 | $ 19,456 | $ 64,579 | |||
Equity investment description | The Company did not hold more than 4.9% of equity of the shares of any public companies as investments as of September 30, 2023. | |||||
Investment wrote down portfolio | 1,316,237 | |||||
Net revenue | (18,791) | $ 1,036,461 | $ 1,135,578 | $ 3,284,131 | ||
Cash, FDIC insured amount | 250,000 | 250,000 | ||||
Principal Transactions [Member] | ||||||
Product Information [Line Items] | ||||||
Net revenue | $ (18,791) | $ 15,345 | $ (322,963) | $ (590,318) | ||
Kid Castle Educational Corporation [Member] | Parent Company [Member] | ||||||
Product Information [Line Items] | ||||||
Ownership percentage | 81.75% | 81.75% | ||||
EDI Notes [Member] | ||||||
Product Information [Line Items] | ||||||
Debt instrument face amount | $ 2,200,000 | |||||
Mortgage Notes [Member] | ||||||
Product Information [Line Items] | ||||||
Debt instrument face amount | $ 2,200,000 | |||||
Related Party [Member] | ||||||
Product Information [Line Items] | ||||||
Long-Term Investments | $ 191,757 | $ 191,757 | 553,314 | |||
Equity Method Investments [Member] | ||||||
Product Information [Line Items] | ||||||
Investments | $ 1,869,748 |
SCHEDULE OF NET TRADING REVENUE
SCHEDULE OF NET TRADING REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ (18,791) | $ 1,036,461 | $ 1,135,578 | $ 3,284,131 |
Trading Securities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | (18,791) | |||
Net income from trading securities | $ (18,791) |
SCHEDULE OF LINE OF CREDIT FROM
SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Short-Term Debt [Line Items] | ||
Total Line of credit - related party | $ 673,756 | $ 419,979 |
Total Long-term Line of credit - related party | 673,756 | 419,979 |
May 2020 [Member] | ||
Short-Term Debt [Line Items] | ||
Total Line of credit - related party | $ 673,756 | $ 419,979 |
SCHEDULE OF LINE OF CREDIT FR_2
SCHEDULE OF LINE OF CREDIT FROM RELATED PARTY (Details) (Parenthetical) - May 2020 [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | May 04, 2025 | May 04, 2025 |
Line of credit, interest rate | 0% | 0% |
LINE OF CREDIT _ LOANS - RELA_3
LINE OF CREDIT / LOANS - RELATED PARTIES (Details Narrative) - USD ($) | May 05, 2020 | Sep. 30, 2023 | Dec. 31, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Line of credit | $ 673,756 | $ 419,979 | |
Line of Credit Agreement [Member] | Los Angeles Community Capital [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Increase in line of credit | $ 1,500,000 | ||
Line of credit maturity date | May 04, 2025 | ||
Line of credit interest rate | 0% | ||
Line of credit | $ 673,756 |
SCHEDULE OF EARNINGS (LOSS) PER
SCHEDULE OF EARNINGS (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |||||
Net income | $ 658,146 | $ 767,120 | |||
Dividends | 1 | ||||
Adjusted Net income attribution to stockholders | $ 658,146 | $ 767,121 | |||
Weighted-average shares of common stock outstanding, Basic | 182,370,497 | 182,370,497 | 182,370,497 | 182,370,497 | 182,370,497 |
Weighted-average shares of common stock outstanding, Diluted | 182,370,497 | 182,370,497 | 182,370,497 | 182,370,497 | 182,370,497 |
Net income per share, Basic | $ (0.0004) | $ 0.0027 | $ 0.0036 | $ 0.0113 | $ 0.0086 |
Net income per share, Diluted | $ (0.0004) | $ 0.0027 | $ 0.0036 | $ 0.0113 | $ 0.0086 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rates, percent | 21% | |
Federal statutory rates | $ (3,304,615) | $ (3,442,826) |
State income taxes, percent | 5% | |
State income taxes | $ (786,813) | (819,720) |
Permanent differences, percent | (0.50%) | |
Permanent differences | $ 78,681 | 81,972 |
Valuation allowance against net deferred tax assets, percent | (25.50%) | |
Valuation allowance against net deferred tax assets | $ 4,012,747 | 4,180,574 |
Effective rate, percent | 0% | |
Effective rate |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Net operation loss carryforwards | $ 15,736,263 | $ 16,394,409 |
Total deferred income tax asset | 4,091,428 | 4,262,546 |
Less: valuation allowance | (4,091,428) | (4,262,546) |
Total deferred income tax asset |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 4,091,428 | $ 4,262,546 |
Decrease in valuation allowance amount | 73,297 | |
Operating income loss | 658,146 | |
Uncertain tax positions | 0 | 0 |
Net operating loss carryforwards | $ 15,736,263 | $ 16,394,409 |
Operating loss carryforwards expire | 2033 |
REAL ESTATE INVESTMENTS (Detail
REAL ESTATE INVESTMENTS (Details Narrative) | Sep. 30, 2023 USD ($) |
Real Estate [Abstract] | |
Real estate investment holding inventory | $ 0 |
MARGINAL LOAN PAYABLE (Details
MARGINAL LOAN PAYABLE (Details Narrative) | Sep. 30, 2023 USD ($) |
Mortgages [Member] | |
Debt Instrument [Line Items] | |
Marginal loan payable | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | ||||
May 05, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 30, 2022 | |
Related Party Transaction [Line Items] | |||||
Line of credit drawn | $ 673,756 | $ 419,979 | |||
Proceeds from impairment charge | $ 447,475 | ||||
Minimum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Vairable lease payment | 650 | ||||
Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Vairable lease payment | 850 | ||||
EDI Notes [Member] | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument face amount | $ 2,200,000 | ||||
Mortgage Notes [Member] | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument face amount | $ 2,200,000 | ||||
Line of Credit Agreement [Member] | Alpharidge Capital LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Long-term investments | 1,769,760 | ||||
Proceeds from impairment charge | 1,316,434 | ||||
Line of Credit Agreement [Member] | Los Angeles Community Capital [Member] | |||||
Related Party Transaction [Line Items] | |||||
Line of credit, maturity date | May 04, 2025 | ||||
Line of credit drawn | 673,756 | ||||
Line of Credit Agreement [Member] | Los Angeles Community Capital [Member] | Frank I. Igwealor [Member] | |||||
Related Party Transaction [Line Items] | |||||
Long-term line of credit | $ 1,500,000 | ||||
Line of credit, maturity date | May 04, 2025 | ||||
Line of credit, interest rate | 0% | ||||
Line of credit drawn | $ 673,756 |
MERGERS AND ACQUISITIONS (Detai
MERGERS AND ACQUISITIONS (Details Narrative) - USD ($) | Dec. 30, 2021 | Apr. 21, 2021 | Sep. 16, 2020 | Sep. 15, 2020 |
Percentage of variable interest entity | 50% | |||
GMPW [Member] | ||||
Sale of stock, percentage of ownership after transaction | 100% | |||
Percentage of voting control | 87% | 88% | ||
GMPW [Member] | Preferred Stock [Member] | ||||
Number of shares repurchased | 1,000,000 | |||
Cannabinoid Biosciences Inc [Member] | ||||
Sale of stock, consideration received on transaction | $ 1 | |||
Sale of stock, percentage of ownership after transaction | 97% | |||
Kid Castle Educational Corporation [Member] | Preferred Stock [Member] | ||||
Sale of stock, number of shares issued in transaction | 100,000 | |||
Kid Castle Educational Corporation [Member] | Common Stock [Member] | ||||
Sale of stock, number of shares issued in transaction | 900,000,000 | |||
President and CEO [Member] | ||||
Sale of stock, number of shares issued in transaction | 1,000,000 | |||
Sale of stock, consideration received on transaction | $ 3 | |||
Private Placement [Member] | President and CEO [Member] | ||||
Sale of stock, number of shares issued in transaction | 900,000 | |||
Sale of stock, consideration received on transaction | $ 3 | |||
Sale of stock, percentage of ownership after transaction | 100% | 100% |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2023 | |
Equity [Abstract] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1 | 1 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares outstanding | 1 | 1 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Number of shares issued for services | 4,448,061 | |
Common stock, shares issued | 182,370,497 | 182,370,497 |
Common stock, shares outstanding | 182,370,497 | 182,370,497 |
Warrants issued | 0 | 0 |
Warrants outstanding | 0 | 0 |