Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Aug. 31, 2013 | |
Document and Entity Information | |
Entity Registrant Name | Earn-A-Car Inc. |
Document Type | 10-Q |
Document Period End Date | 31-Aug-13 |
Amendment Flag | FALSE |
Entity Central Index Key | 1486297 |
Current Fiscal Year End Date | -26 |
Entity Common Stock, Shares Outstanding | 112,250,000 |
Entity Filer Category | Smaller Reporting Company |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED_BALANCE_SHEETS_un
CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
Current Assets | ||
Cash and cash equivalents | $219,216 | $682,096 |
Receivables, net | 337,923 | 418,707 |
Total Current Assets | 557,139 | 1,100,803 |
Property and equipment, net | 24,265 | 24,958 |
Revenue-earning vehicles, net | 4,607,122 | 4,858,545 |
Other Assets | ||
Loan receivable | 6,343 | 7,037 |
Deferred Costs | 95,940 | 67,283 |
Total Other Assets | 102,283 | 74,320 |
TOTAL ASSETS | 5,290,809 | 6,058,626 |
Current Liabilities | ||
Accounts payable | 334,103 | 510,994 |
Accrued expenses | 21,592 | 51,154 |
Deferred Income | 528,553 | 569,876 |
Current portion of leases payable | 624,010 | 714,948 |
Current portion of loans payable | 808,936 | 731,271 |
Total Current Liabilities | 2,317,194 | 2,578,243 |
Long-term Debt | ||
Loans from shareholders | 0 | 0 |
Leases payable | 1,200,773 | 634,885 |
Loans payable | 1,072,889 | 2,031,641 |
Total Long-term Debt | 2,273,662 | 2,666,526 |
Total Liabilities | 4,590,856 | 5,244,769 |
Stockholders' Equity | ||
Common stock, $0.0000001 par value, 250,000,000 shares authorized, 112,250,000 shares issued and outstanding | 11 | 11 |
Additional paid in capital | 5,423 | 5,423 |
Accumulated other comprehensive (loss) | -307,794 | -214,695 |
Retained earnings | 1,002,313 | 1,023,118 |
Total Stockholders' Equity | 699,953 | 813,857 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,290,809 | $6,058,626 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
Parentheticals | ||
Common Stock, par value. | $0.00 | $0.00 |
Common Stock, shares authorized | 250,000,000 | 250,000,000 |
Common Stock, shares issued | 112,250,000 | 112,250,000 |
Common Stock, shares outstanding | 112,250,000 | 112,250,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | |
Revenues | ||||
Vehicle rentals | $745,854 | $965,758 | $1,632,461 | $1,590,553 |
Other | 80,151 | 1,452 | 82,336 | 3,388 |
Total Revenues | 826,005 | 967,210 | 1,714,797 | 1,593,941 |
Operating Expenses | ||||
Direct vehicle and operating | 361,426 | 311,340 | 500,008 | 427,939 |
Vehicle depreciation and lease charges | 199,559 | 205,753 | 410,061 | 380,677 |
Selling, general and administrative | 193,721 | 126,126 | 561,467 | 367,210 |
Interest expense | 93,544 | 109,719 | 225,298 | 173,945 |
Total Operating Expenses | 848,250 | 752,938 | 1,696,834 | 1,349,771 |
Operating Income (Loss) | -22,245 | 214,272 | 17,963 | 244,170 |
Other Income (Expense) | ||||
Interest income | 3,883 | 18,888 | 3,883 | 18,888 |
Gain on asset disposal | -42,651 | 847 | -42,651 | 847 |
Net Income (Loss) Before Provision for Income Taxes | -61,013 | 234,007 | -20,805 | 263,905 |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
Net Income (Loss) | ($61,013) | $234,007 | ($20,805) | $263,905 |
Earnings (Loss) per Share | $0 | $0 | $0 | $0 |
Weighted Average Common Shares Outstanding | 112,250,000 | 112,250,000 | 112,250,000 | 112,250,000 |
CONSOLIDATED_STATEMENTS_OF_OTH
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | |
OTHER COMPREHENSIVE INCOME: | ||||
Net Income | ($61,013) | $234,007 | ($20,805) | $263,905 |
Foreign Currency Translation Change in cumulative translation adjustment | 4,452 | -11,875 | -93,099 | -77,191 |
Total | $4,452 | ($11,875) | ($93,099) | ($77,191) |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Common Stock Shares | Common Stock Amount | Additional Paid in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total. |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Balance at Feb. 29, 2012 | 112,250,000 | 11 | 5,423 | -29,542 | 498,559 | 474,451 |
Gain (Loss) on currency translation | $0 | $0 | ($185,153) | $0 | ($185,153) | |
Net income. | 0 | 0 | 0 | 524,559 | 524,559 | |
Balance at Feb. 28, 2013 | 112,250,000 | 11 | 5,423 | -214,695 | 1,023,118 | 813,857 |
Gain (Loss) on currency translation | 0 | 0 | -93,099 | 0 | -93,099 | |
Net loss | $0 | $0 | $0 | ($20,805) | ($20,805) | |
Balance at Aug. 31, 2013 | 112,250,000 | 11 | 5,423 | -307,794 | 1,002,313 | 699,953 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 6 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income for the period | ($20,805) | $263,905 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation | 410,061 | 380,677 |
Net gains (losses) from disposition of revenue-earning vehicles | 42,651 | -847 |
Change in Assets and Liabilities: | ||
(Increase) decrease in receivables | 80,784 | -89,263 |
(Increase) decrease in deferred costs | -28,657 | -29,557 |
Increase (decrease) in accounts payables | -176,891 | 20,690 |
Increase (decrease) in accrued expenses | -29,562 | -2,724 |
Increase (decrease) in deferred income | -41,323 | 120,996 |
Net Cash Provided by Operating Activities | 236,258 | 663,877 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases | -201,289 | -1,333,720 |
Proceeds from sales | 0 | 42,435 |
Property, equipment and software Purchases | 0 | -9,673 |
Proceeds from sales. | 693 | 0 |
(Increase) decrease in loans extended | 694 | 993 |
Net Cash Used by Investing Activities | -199,902 | -1,299,965 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Additional paid in capital, due to merger | 0 | 0 |
Proceeds from (Payments on) leases payable (net) | 474,950 | -856,676 |
Proceeds from (Payments on) loans payable (net) | -881,087 | 2,463,291 |
Proceeds from (Payments on) shareholder loans (net) | 0 | -1,000 |
Net Cash Provided (Used) by Financing Activities | -406,137 | 1,605,615 |
Exchange rate effect on cash and cash equivalents | -93,099 | -77,191 |
Net Increase in Cash and Cash Equivalents | -462,880 | 892,336 |
Cash, beginning of period | 682,096 | 171,354 |
Cash, end of period | 219,216 | 1,063,690 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 225,298 | 64,226 |
Cash paid for income taxes | $0 | $0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Aug. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Nature of Business - Earn-A-Car, Inc. (formerly Victoria Internet Services, | |
Inc.) was incorporated in the State of Nevada on October 9, 2009. The company | |
was organized to operate as an online tax preparation service in the North | |
American market. On December 7, 2011, prior to commencing those operations, the | |
company has opted to change its business focus to the daily rental of vehicles | |
in the South African market. | |
On December 7, 2011, a simultaneous execution and closing was held under an | |
Agreement and Plan of Reorganization (the Plan"), by and among Victoria Internet | |
Services, Inc. (the "Company" "us" "we" ), Leon Golden (our then principal | |
shareholder) ("Golden") and Earn-A-Car (PTY), LTD., a corporation organized | |
under the laws of the Republic of South Africa ("EAC") and Depassez Investments | |
Ltd, a Seychelles corporation ("DPL"), owned by Graeme Hardie (our new principal | |
shareholder) ("Hardie"). | |
Under the Plan DPL acquired 78,500,000 shares of our common stock from Golden | |
for $150,000 and the balance of Golden's 205,000,000 shares were submitted to | |
the transfer agent for cancellation and DPI contributed all of the shares of EAC | |
to the Company so that EAC became a wholly owned subsidiary of the Company and | |
the business of the Company is now the business of EAC. Mr. Golden also resigned | |
as an officer and director of the Company and John Storey ("Storey") and Hardie | |
were elected as directors and Storey was appointed CEO and President with Hardie | |
being appointed Chairman of the board. | |
On February 10, 2012 the Company filed an amendment with the Secretary of State | |
for Nevada to gain permission to change its name from Victoria Internet | |
Services, Inc. to Earn-A-Car, Inc. In conjunction with the name change the | |
Company also filed to have a new symbol on the Over The Counter Bulletin Board | |
(OTCBB). As of March 8, 2012 the Company no longer is listed with the symbol | |
VRIS, and is now listed on the OTCBB as EACR. | |
Earn-A-Car (Pty) Ltd - The wholly owned subsidiary was incorporated in South | |
Africa on July 2, 2005, and is primarily engaged in the business of the daily | |
rental of vehicles to business and leisure customers through company-owned | |
stores in the country of South Africa. On July 18, 2011, its name was changed | |
from "EasyCars Rental and Sales (PTY) Ltd." to "Earn-A-Car (PTY) Ltd.". | |
Earn-A-Car Assets 1 Pty. Ltd. - the wholly owned subsidiary Earn-A-Car (Pty) | |
Ltd. purchased a wholly owned subsidiary in June 2012, the name of this | |
purchased entity is Earn-A-Car Assets 1 Pty. Ltd. The function of this entity is | |
to hold title to vehicles that are purchased through financing which requires | |
specific assets to be held as collateral for those loans. All of the assets and | |
liabilities of this entity are consolidated and included in the presented | |
financial statements according to generally accepted accounting principles of | |
the United States. | |
Basis of Presentation- The accompanying financial statements have been prepared | |
in accordance with accounting principles generally accepted in the United States | |
of America and are presented in U.S. Dollars. In the opinion of management, all | |
adjustments necessary in order for the financial statements to be not misleading | |
have been reflected herein. The Company has selected a February 28 year end. | |
Estimates - The preparation of the Company's consolidated financial statements | |
in conformity with accounting principles generally accepted in the United States | |
of America requires management to make estimates and assumptions that affect the | |
reported amounts and disclosures in the consolidated financial statements. | |
Actual results could differ materially from those estimates. | |
Cash and Cash Equivalents - Cash and cash equivalents include cash on hand and | |
on deposit, including highly liquid investments with initial maturities of three | |
months or less. At August 31, 2013 and February 28, 2013 the Company had | |
$219,216 and $682,096 cash and cash equivalents, respectively. | |
Allowance for Doubtful Accounts - An allowance for doubtful accounts is | |
generally established during the period in which receivables are recorded. The | |
allowance is maintained at a level deemed appropriate based on loss experience | |
and other factors affecting collectability. As of August 31, 2013 and February | |
28, 2013 the Company had $30,023 and $7,444 in impaired receivables, | |
respectively. The allowance for these impaired receivables was $80,606 and | |
$14,359 for periods ending August 31, 2013and February 28, 2013 respectively. | |
Financing Issue Costs - Financing issue costs related to vehicle debt are | |
deferred and amortized to interest expense over the term of the related debt | |
using the effective interest method. | |
Receivables and Payables- Trade receivables and payables are measured at initial | |
recognition at fair value, and are subsequently measured using the effective | |
interest rate method of valuation. Appropriate allowances for estimated | |
uncollectible receivable balances are recognized in profit or loss when there is | |
evidence of impairment. Payables includes all accrued cash back liability to | |
clients as adjusted as required for the Company to meet its cash back obligation | |
to its clients. The amount is determined at contract inception and is the | |
approximate amount required to generate a lump sum at end of cash back period | |
sufficient to match the future carrying value of the car at the end of this | |
period. Cash back is accrued for monthly and the accrual is adjusted for | |
regularly as required to ensure no shortfall occurs at the end of the period. | |
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense - | |
Revenue-earning vehicles are stated at cost, net of related discounts. | |
The Company must estimate what the residual values of these vehicles will be at | |
the expected time of disposal to determine monthly depreciation rates. The | |
estimation of residual values requires the Company to make assumptions regarding | |
the age and mileage of the car at the time of disposal, as well as the general | |
used vehicle auction market. The Company evaluates estimated residual values | |
periodically, and adjusts depreciation rates accordingly, on a prospective | |
basis. | |
Differences between actual residual values and those estimated by the Company | |
result in a gain or loss on disposal and are recorded as an adjustment to | |
depreciation expense. Actual timing of disposal either shorter or longer than | |
the life used for depreciation purposes could result in a loss or gain on sale. | |
Generally, the average holding term for vehicles is approximately 7 years. | |
Property and Equipment - Property and equipment are recorded at cost and are | |
depreciated using principally the straight-line method over the estimated useful | |
lives of the related assets. Estimated useful lives generally range from ten to | |
thirty years for buildings and improvements and two to seven years for furniture | |
and equipment. Leasehold improvements are amortized over the estimated useful | |
lives of the related assets or leases, whichever is shorter. The average useful | |
lives of fixed assets are as follows: | |
Motor vehicles 6 years | |
Computer equipment 3 years | |
Computer software 2 years | |
Leased assets - motor vehicles 6 years | |
Long-Lived Assets - The Company reviews the value of long-lived assets, | |
including software, for impairment whenever events or changes in circumstances | |
indicate that the carrying amount of an asset may not be recoverable based upon | |
estimated future cash flows and records an impairment charge, equaling the | |
excess of the carrying value over the estimated fair value, if the carrying | |
value exceeds estimated future cash flows. | |
Foreign Currency Translation - The Company's functional currency is the South | |
African Rand, however the translation into US dollars is the presentation bases | |
of these financial statements. Foreign assets and liabilities are translated | |
into US$ using the exchange rate in effect at the balance sheet date, and | |
results of operations are translated using an average rate for the period. | |
Translation adjustments are accumulated and reported as a component of | |
accumulated other comprehensive income or loss. | |
Revenue Recognition - Revenues from vehicle rentals are recognized as earned on | |
a daily basis under the related rental contracts with customers. The upfront | |
administration fee is non-refundable. However the company defers its upfront | |
administration fee income received at the inception of the rental contract over | |
the average rental period. Simultaneously the company defers direct, incremental | |
selling costs related to the rental of the vehicle over the same average rental | |
period. This is a change in accounting policy and the new basis has been used to | |
calculate revenue in 2013. The 2012 numbers have been restated to reflect the | |
new policy. See Note 11. | |
Advertising Costs - Advertising costs are primarily expensed as incurred. During | |
the six months ended August 31, 2013 and August 31, 2012, the Company incurred | |
advertising expense of $34,735 and $34,615, respectively. | |
Income Taxes - The Company has provided for income taxes on its separate taxable | |
income or loss and other tax attributes. Deferred income taxes are provided for | |
the temporary differences between the financial reporting basis and the tax | |
basis of the Company's assets and liabilities. The Company has no tax liability | |
in the United States. | |
Earnings Per Share - Basic earnings per share ("EPS") is computed by dividing | |
net income (loss) by the weighted average number of common shares outstanding | |
during the period. Diluted EPS is based on the combined weighted average number | |
of common shares and common share equivalents outstanding which include, where | |
appropriate, the assumed exercise of options. There were no such common stock | |
equivalents outstanding at August 31, 2013. | |
Other Comprehensive Income (Loss) - Comprehensive income (loss) consists of net | |
income (loss) and other gains and losses affecting stockholder's equity that, | |
under GAAP, are excluded from net income (loss), including foreign currency | |
translation adjustments, gains and losses related to certain derivative | |
contracts, and gains or losses, prior service costs or credits, and transition | |
assets or obligations associated with pension or other postretirement benefits | |
that have not been recognized as components of net periodic benefit cost. | |
Stock-Based Compensation- Stock-based compensation is accounted for at fair | |
value in accordance with SFAS No. 123 and 123R (ASC 718). To date, the Company | |
has not adopted a stock option plan and has not granted any stock options. | |
New Accounting Standards - The Company does not expect the adoption of recently | |
issued accounting pronouncements to have a significant impact on the Company's | |
results of operations, financial position or cash flow. | |
REVENUEEARNING_VEHICLES
REVENUE-EARNING VEHICLES | 6 Months Ended |
Aug. 31, 2013 | |
REVENUE-EARNING VEHICLES | |
REVENUE-EARNING VEHICLES | 2. REVENUE-EARNING VEHICLES |
Revenue-earning vehicles consist of the following: | |
August 31, 2013 February 28, 2013 | |
--------------- ----------------- | |
Revenue-earning vehicles $ 5,912,208 $ 6,212,677 | |
Less accumulated depreciation (1,305,086) (1,354,132) | |
----------- ----------- | |
Revenue-earning vehicles, net $ 4,607,122 $ 4,858,545 | |
====nbsp; ====/pre> | |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Aug. 31, 2013 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 3. PROPERTY AND EQUIPMENT |
Major classes of property and equipment consist of the following: | |
August 31, 2013 February 28, 2013 | |
--------------- ----------------- | |
Computer equipment $ 25,529 $ 23,353 | |
Computer software 5,043 2,368 | |
Other fixed assets including signage 8,484 8,664 | |
----------- ----------- | |
Subtotal 39,056 34,385 | |
Less accumulated depreciation (14,791) (9,427) | |
----------- ----------- | |
Property and equipment, net $ 24,265 $ 24,958 | |
====nbsp; ====/pre> | |
For the three months ended August 31, 2013 and 2012, the Company recorded | |
depreciation of $199,559 and $205,753 respectively. | |
LOANS_RECEIVABLE
LOANS RECEIVABLE | 6 Months Ended |
Aug. 31, 2013 | |
LOANS RECEIVABLE | |
LOANS RECEIVABLE | 4. LOANS RECEIVABLE |
At August 31, 2013 and February 28, 2013, the Company has a receivable due under | |
a settlement agreement with a former employee with a balance of $6,343 and | |
$7,037, respectively. This loan is to be repaid with interest of 10% in 48 equal | |
installments of approximately $425; the payments began in March, 2011. | |
DEBT_AND_OTHER_OBLIGATIONS
DEBT AND OTHER OBLIGATIONS | 6 Months Ended |
Aug. 31, 2013 | |
DEBT AND OTHER OBLIGATIONS | |
DEBT AND OTHER OBLIGATIONS | 5. DEBT AND OTHER OBLIGATIONS |
Debt and other obligations consist of the following: | |
August 31, 2013 February 28, 2013 | |
--------------- ----------------- | |
Loan payable - individual - unsecured, interest | |
bearing, no fixed repayment terms $ 19,414 $ 22,625 | |
Loan payable - individual - unsecured, interest | |
bearing, no fixed repayment terms 9,707 11,312 | |
Loan payable - individual - unsecured, interest | |
bearing, no fixed repayment terms 48,536 56,562 | |
Loan payable - individual - unsecured, interest | |
bearing, no fixed repayment terms 29,364 41,008 | |
Loan payable - other - unsecured, interest bearing, | |
no fixed repayment terms 49,637 68,027 | |
Loan payable - bank - secured by assets of the | |
company, bearing interest of JIBAR plus 5% per | |
annum, repayable in quarterly installments | |
beginning 30 September 2012 1,617,872 2,356,765 | |
Loan payable - other - unsecured, interest bearing, | |
no fixed repayment terms 55,816 151,181 | |
Loan payable - other - unsecured, interest bearing, | |
no fixed repayment terms 23,979 27,943 | |
Loan payable - other - unsecured, interest bearing, | |
no fixed repayment terms 27,500 27,489 | |
---------- ---------- | |
Total $1,881,825 $2,762,912 | |
Current portion of loans payable 808,936 731,271 | |
---------- ---------- | |
Long-term portion of loans payable $1,072,889 $2,031,641 | |
====bsp; ====pre> | |
Expected maturities of debt and other obligations outstanding at August 31, 2013 | |
are as follows: | |
Loan Amounts Lease Amounts Total | |
------------ ------------- ---------- | |
August 31, 2014 $ 808,936 $ 624,010 $1,432,945 | |
August 31, 2015 $ 836,436 $ 624,042 $1,460,478 | |
August 31, 2016 $ 202,234 $ 506,585 $ 708,820 | |
August 31, 2017 $ 0 $ 70,145 $ 70,145 | |
August 31, 2018 $ 0 $ 0 $ 0 | |
Thereafter 34,219 $ 0 $ 34,219 | |
---------- ---------- ---------- | |
Total $1,881,825 $1,824,782 $3,706,607 | |
====bsp; ====bsp; ====pre> | |
Installment sales and lease contracts are secured by finance lease agreements | |
over revenue generating vehicles, having 2013 carrying values of $1,974,808. | |
These lease contracts are repayable in monthly installments for 2013 of $8,661. | |
PROVISION_FOR_INCOME_TAXES
PROVISION FOR INCOME TAXES | 6 Months Ended |
Aug. 31, 2013 | |
PROVISION FOR INCOME TAXES | |
PROVISION FOR INCOME TAXES | 6. PROVISION FOR INCOME TAXES |
The Company has no obligation for any federal or state income taxes in the | |
United States. Further, no provision has been made for taxes in South Africa, | |
which has a corporate income tax rate of 28%, for the three months ended August | |
31, 2013 and 2012 because our taxable losses and loss carryovers exceed the | |
income in those periods. At August 31, 2013 and February 28, 2013, respectively, | |
the Company had net losses of approximately $0 and $524,559 available in South | |
Africa that can be carried forward to offset future taxable income. Due to the | |
uncertainty of future taxable income, the Company has recorded a valuation | |
allowance of 100% of the deferred tax asset, so that our deferred tax asset at | |
both August 31, 2013 and February 28, 2013 was $0. | |
EQUITY
EQUITY | 6 Months Ended |
Aug. 31, 2013 | |
EQUITY | |
EQUITY | 7. EQUITY |
On November 14, 2011 the Company filed a certificate of amendment to the | |
articles of incorporation which caused a 50 for 1 forward common stock split and | |
an increase in authorized common shares to 250,000,000. | |
On January 19, 2012 the Company cancelled 121,500,000 shares of common stock | |
that were held by Leon Golden, the former owner of Victoria Internet Services, | |
Inc. | |
As of February 28, 2013 and February 29, 2012 there were 112,250,000 and 500 | |
common shares outstanding, respectively. | |
The Company is authorized to issue 20,000,000 preferred shares of stock. As of | |
February 28, 2013 and February 29, 2012 there were no (0) shares outstanding. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Aug. 31, 2013 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES |
Operating Leases | |
The Company operates from various leased premises under operating leases with | |
terms up to 5 years. Some of the leases contain renewal options. No contingent | |
rent is payable. | |
Expenses incurred under operating leases for the period were as follows: | |
August 31, 2013 August 31, 2012 | |
--------------- --------------- | |
Operating leases: | |
Premises $ 27,694 $ 28,507 | |
-------- -------- | |
$ 27,694 $ 28,507 | |
===nbsp; ===/pre> | |
Future minimum rentals and fees under non-cancelable operating leases for the 12 | |
month periods are presented in the following table: | |
August31, 2014 $ 0 | |
August 31, 2015 $ 0 | |
August 31, 2016 $ 0 | |
August 31, 2017 $ 0 | |
August 31, 2018 $ 0 | |
We currently operate under a month to month lease requiring a monthly payment of | |
$4,615 and we believe that if we decide to move to another location our | |
occupancy costs would remain materially the same. | |
At August 31, 2013, the Company had no outstanding vehicle purchase commitments | |
over the next twelve months. | |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Aug. 31, 2013 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 9. RELATED PARTY TRANSACTIONS |
The Company engages in activities with parties who hold ownership in the | |
Company. The Company borrows funds from related parties and pays consulting fees | |
to related parties. The related party transactions are as follows: | |
August 31, 2013 February 28, 2013 | |
--------------- ----------------- | |
Loans payable to shareholders/related parties: | |
G. Hardie $ 0 $ 4,000 | |
-------- -------- | |
Total loans payable to related parties $ 0 $ 4,000 | |
===nbsp; ===/pre> | |
Compensation paid to directors | |
G. Hardie $ 1,000 $ 1,000 | |
John Storey 0 6,787 | |
-------- -------- | |
Total compensation paid to directors $ 1,000 $ 10,787 | |
===nbsp; ===/pre> | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Aug. 31, 2013 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 10. SUBSEQUENT EVENTS |
The Company has analyzed its operations subsequent to August 31, 2013 through | |
the date these financial statements were issued, and has determined that it does | |
not have any material subsequent events to disclose. | |
CORRECTION_OF_ERRORS_AND_RESTA
CORRECTION OF ERRORS AND RESTATEMENTS | 6 Months Ended |
Aug. 31, 2013 | |
CORRECTION OF ERRORS AND RESTATEMENTS | |
CORRECTION OF ERRORS AND RESTATEMENTS | 11. CORRECTION TO ACCOUNTING POLICY FOR US GAAP |
The Company has restated certain operating and cash flow amounts for the three | |
and six months ended August 31, 2012, to correctly account for the recognition | |
of revenue on up-front income in terms of US GAAP. Per US GAAP, the Company has | |
now deferred the non-refundable up-front income it receives in the first month | |
of the rental contract over the company's average rental period of 20 months. | |
Simultaneously the company deferred direct, incremental selling costs related to | |
the rental of the vehicle over the same average rental period. The company used | |
to account for all the up-front non-refundable income once it was due and | |
payable as this is the accounting policy for the subsidiaries. For the three and | |
six months ended August 2012 a portion of selling and administrative costs were | |
allocated to direct and operating costs. These figures have now been restated to | |
become consistent with the three and six months ended August 2013. | |
The balances for the three months ended August 31, 2012 have been restated to | |
correct the presentation of the deferred income and deferred costs and to | |
correct the errors from 2012 detailed above. | |
Previously | |
August 31, 2012 Financial Statements Line Item Corrected Stated | |
------------------------------------ --------- --------- ------ | |
Statement of Operations Rental Income $ 965,758 $1,097,212 | |
Statement of Operations Direct motor vehicle costs $ 408,808 $ 440,631 | |
Statement of Operations Net Income $ 234,007 $ 333,638 | |
Statement of Other comprehensive Income Net Income $ 234,007 $ 333,638 | |
Statement of Other comprehensive Income Foreign Currency Translation $ (11,875) $ (16,319) | |
Income Direct and Operating Costs $ 311,340 $ 408,808 | |
Income Selling and administrative costs $ 126,126 $ 28,658 | |
The balances for the six months ended August 31, 2012 have been restated to | |
correct the presentation of the deferred income and deferred costs and to | |
correct the errors from 2012 detailed above. | |
Previously | |
August 31, 2012 Financial Statements Line Item Corrected Stated | |
------------------------------------ --------- --------- ------ | |
Statement of Operations Rental Income $1,590,553 $1,753,362 | |
Statement of Operations Direct motor vehicle costs $ 656,141 $ 695,508 | |
Statement of Operations Net Income $ 263,905 $ 387,347 | |
Statement of Other comprehensive Income Net Income $ 263,905 $ 387,347 | |
Statement of Other comprehensive Income Foreign Currency Translation $ (77,191) $ (109,194) | |
Statement of Cash Flows Net Income $ 263,905 $ 387,347 | |
Statement of Cash Flows Increase in deferred costs $ (29,557) $ 0 | |
Statement of Cash Flows Increase in deferred income $ 120,996 $ 0 | |
Statement of Cash Flows Cash flows provided by operating | |
activity $ 663,877 $ 586,686 | |
Statement of Cash Flows Exchange rate effect on cash and | |
cash equivalents $ (77,191) $ (109,194) | |
Income Direct and Operating Costs $ 427,939 $ 656,141 | |
Income Selling and administrative costs $ 367,210 $ 139,008 | |
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Aug. 31, 2013 | |
ACCOUNTING POLICIES | |
Nature of Business | Nature of Business - Earn-A-Car, Inc. (formerly Victoria Internet Services, |
Inc.) was incorporated in the State of Nevada on October 9, 2009. The company | |
was organized to operate as an online tax preparation service in the North | |
American market. On December 7, 2011, prior to commencing those operations, the | |
company has opted to change its business focus to the daily rental of vehicles | |
in the South African market. | |
On December 7, 2011, a simultaneous execution and closing was held under an | |
Agreement and Plan of Reorganization (the Plan"), by and among Victoria Internet | |
Services, Inc. (the "Company" "us" "we" ), Leon Golden (our then principal | |
shareholder) ("Golden") and Earn-A-Car (PTY), LTD., a corporation organized | |
under the laws of the Republic of South Africa ("EAC") and Depassez Investments | |
Ltd, a Seychelles corporation ("DPL"), owned by Graeme Hardie (our new principal | |
shareholder) ("Hardie"). | |
Under the Plan DPL acquired 78,500,000 shares of our common stock from Golden | |
for $150,000 and the balance of Golden's 205,000,000 shares were submitted to | |
the transfer agent for cancellation and DPI contributed all of the shares of EAC | |
to the Company so that EAC became a wholly owned subsidiary of the Company and | |
the business of the Company is now the business of EAC. Mr. Golden also resigned | |
as an officer and director of the Company and John Storey ("Storey") and Hardie | |
were elected as directors and Storey was appointed CEO and President with Hardie | |
being appointed Chairman of the board. | |
On February 10, 2012 the Company filed an amendment with the Secretary of State | |
for Nevada to gain permission to change its name from Victoria Internet | |
Services, Inc. to Earn-A-Car, Inc. In conjunction with the name change the | |
Company also filed to have a new symbol on the Over The Counter Bulletin Board | |
(OTCBB). As of March 8, 2012 the Company no longer is listed with the symbol | |
VRIS, and is now listed on the OTCBB as EACR. | |
Earn-A-Car (Pty) Ltd - The wholly owned subsidiary was incorporated in South | |
Africa on July 2, 2005, and is primarily engaged in the business of the daily | |
rental of vehicles to business and leisure customers through company-owned | |
stores in the country of South Africa. On July 18, 2011, its name was changed | |
from "EasyCars Rental and Sales (PTY) Ltd." to "Earn-A-Car (PTY) Ltd.". | |
Earn-A-Car Assets 1 Pty. Ltd. - the wholly owned subsidiary Earn-A-Car (Pty) | |
Ltd. purchased a wholly owned subsidiary in June 2012, the name of this | |
purchased entity is Earn-A-Car Assets 1 Pty. Ltd. The function of this entity is | |
to hold title to vehicles that are purchased through financing which requires | |
specific assets to be held as collateral for those loans. All of the assets and | |
liabilities of this entity are consolidated and included in the presented | |
financial statements according to generally accepted accounting principles of | |
the United States. | |
Basis of Presentation | Basis of Presentation- The accompanying financial statements have been prepared |
in accordance with accounting principles generally accepted in the United States | |
of America and are presented in U.S. Dollars. In the opinion of management, all | |
adjustments necessary in order for the financial statements to be not misleading | |
have been reflected herein. The Company has selected a February 28 year end. | |
Estimates | Estimates - The preparation of the Company's consolidated financial statements |
in conformity with accounting principles generally accepted in the United States | |
of America requires management to make estimates and assumptions that affect the | |
reported amounts and disclosures in the consolidated financial statements. | |
Actual results could differ materially from those estimates. | |
Cash and Cash Equivalents Policy | Cash and Cash Equivalents - Cash and cash equivalents include cash on hand and |
on deposit, including highly liquid investments with initial maturities of three | |
months or less. At August 31, 2013 and February 28, 2013 the Company had | |
$219,216 and $682,096 cash and cash equivalents, respectively. | |
Allowance for Doubtful Accounts Policy | Allowance for Doubtful Accounts - An allowance for doubtful accounts is |
generally established during the period in which receivables are recorded. The | |
allowance is maintained at a level deemed appropriate based on loss experience | |
and other factors affecting collectability. As of August 31, 2013 and February | |
28, 2013 the Company had $30,023 and $7,444 in impaired receivables, | |
respectively. The allowance for these impaired receivables was $80,606 and | |
$14,359 for periods ending August 31, 2013and February 28, 2013 respectively. | |
Financing Issue Costs | Financing Issue Costs - Financing issue costs related to vehicle debt are |
deferred and amortized to interest expense over the term of the related debt | |
using the effective interest method. | |
Receivables and Payables | Receivables and Payables- Trade receivables and payables are measured at initial |
recognition at fair value, and are subsequently measured using the effective | |
interest rate method of valuation. Appropriate allowances for estimated | |
uncollectible receivable balances are recognized in profit or loss when there is | |
evidence of impairment. Payables includes all accrued cash back liability to | |
clients as adjusted as required for the Company to meet its cash back obligation | |
to its clients. The amount is determined at contract inception and is the | |
approximate amount required to generate a lump sum at end of cash back period | |
sufficient to match the future carrying value of the car at the end of this | |
period. Cash back is accrued for monthly and the accrual is adjusted for | |
regularly as required to ensure no shortfall occurs at the end of the period. | |
Revenue-Earning Vehicles and Related Vehicle Depreciation Expense | Revenue-Earning Vehicles and Related Vehicle Depreciation Expense - |
Revenue-earning vehicles are stated at cost, net of related discounts. | |
The Company must estimate what the residual values of these vehicles will be at | |
the expected time of disposal to determine monthly depreciation rates. The | |
estimation of residual values requires the Company to make assumptions regarding | |
the age and mileage of the car at the time of disposal, as well as the general | |
used vehicle auction market. The Company evaluates estimated residual values | |
periodically, and adjusts depreciation rates accordingly, on a prospective | |
basis. | |
Differences between actual residual values and those estimated by the Company | |
result in a gain or loss on disposal and are recorded as an adjustment to | |
depreciation expense. Actual timing of disposal either shorter or longer than | |
the life used for depreciation purposes could result in a loss or gain on sale. | |
Generally, the average holding term for vehicles is approximately 7 years. | |
Property and Equipment Policy | Property and Equipment - Property and equipment are recorded at cost and are |
depreciated using principally the straight-line method over the estimated useful | |
lives of the related assets. Estimated useful lives generally range from ten to | |
thirty years for buildings and improvements and two to seven years for furniture | |
and equipment. Leasehold improvements are amortized over the estimated useful | |
lives of the related assets or leases, whichever is shorter. The average useful | |
lives of fixed assets are as follows: | |
Motor vehicles 6 years | |
Computer equipment 3 years | |
Computer software 2 years | |
Leased assets - motor vehicles 6 years | |
Long-Lived Assets Policy | Long-Lived Assets - The Company reviews the value of long-lived assets, |
including software, for impairment whenever events or changes in circumstances | |
indicate that the carrying amount of an asset may not be recoverable based upon | |
estimated future cash flows and records an impairment charge, equaling the | |
excess of the carrying value over the estimated fair value, if the carrying | |
value exceeds estimated future cash flows. | |
Foreign Currency Translation Policy | Foreign Currency Translation - The Company's functional currency is the South |
African Rand, however the translation into US dollars is the presentation bases | |
of these financial statements. Foreign assets and liabilities are translated | |
into US$ using the exchange rate in effect at the balance sheet date, and | |
results of operations are translated using an average rate for the period. | |
Translation adjustments are accumulated and reported as a component of | |
accumulated other comprehensive income or loss. | |
Revenue Recognition | Revenue Recognition - Revenues from vehicle rentals are recognized as earned on |
a daily basis under the related rental contracts with customers. The upfront | |
administration fee is non-refundable. However the company defers its upfront | |
administration fee income received at the inception of the rental contract over | |
the average rental period. Simultaneously the company defers direct, incremental | |
selling costs related to the rental of the vehicle over the same average rental | |
period. This is a change in accounting policy and the new basis has been used to | |
calculate revenue in 2013. The 2012 numbers have been restated to reflect the | |
new policy. See Note 11. | |
Advertising Costs Policy | Advertising Costs - Advertising costs are primarily expensed as incurred. During |
the six months ended August 31, 2013 and August 31, 2012, the Company incurred | |
advertising expense of $34,735 and $34,615, respectively. | |
Income Taxes Policy | Income Taxes - The Company has provided for income taxes on its separate taxable |
income or loss and other tax attributes. Deferred income taxes are provided for | |
the temporary differences between the financial reporting basis and the tax | |
basis of the Company's assets and liabilities. The Company has no tax liability | |
in the United States. | |
Earnings Per Share Policy | Earnings Per Share - Basic earnings per share ("EPS") is computed by dividing |
net income (loss) by the weighted average number of common shares outstanding | |
during the period. Diluted EPS is based on the combined weighted average number | |
of common shares and common share equivalents outstanding which include, where | |
appropriate, the assumed exercise of options. There were no such common stock | |
equivalents outstanding at August 31, 2013. | |
Other Comprehensive Income (Loss) Policy | Other Comprehensive Income (Loss) - Comprehensive income (loss) consists of net |
income (loss) and other gains and losses affecting stockholder's equity that, | |
under GAAP, are excluded from net income (loss), including foreign currency | |
translation adjustments, gains and losses related to certain derivative | |
contracts, and gains or losses, prior service costs or credits, and transition | |
assets or obligations associated with pension or other postretirement benefits | |
that have not been recognized as components of net periodic benefit cost. | |
Stock-Based Compensation Policy | Stock-Based Compensation- Stock-based compensation is accounted for at fair |
value in accordance with SFAS No. 123 and 123R (ASC 718). To date, the Company | |
has not adopted a stock option plan and has not granted any stock options. | |
New Accounting Standards Policy | New Accounting Standards - The Company does not expect the adoption of recently |
issued accounting pronouncements to have a significant impact on the Company's | |
results of operations, financial position or cash flow. | |
Average_Useful_Lives_Of_Fixed_
Average Useful Lives Of Fixed Assets (Tables) | 6 Months Ended |
Aug. 31, 2013 | |
Average Useful Lives Of Fixed Assets | |
Average Useful Lives Of Fixed Assets | The average useful |
lives of fixed assets are as follows: | |
Motor vehicles 6 years | |
Computer equipment 3 years | |
Computer software 2 years | |
Leased assets - motor vehicles 6 years | |
REVENUEEARNING_VEHICLES_AND_AC
REVENUE-EARNING VEHICLES AND ACCMULATED DEPRECIATION (Tables) | 6 Months Ended |
Aug. 31, 2013 | |
REVENUE-EARNING VEHICLES AND ACCMULATED DEPRECIATION | |
REVENUE-EARNING VEHICLES AND ACCMULATED DEPRECIATION | Revenue-earning vehicles consist of the following: |
August 31, 2013 February 28, 2013 | |
--------------- ----------------- | |
Revenue-earning vehicles $ 5,912,208 $ 6,212,677 | |
Less accumulated depreciation (1,305,086) (1,354,132) | |
----------- ----------- | |
Revenue-earning vehicles, net $ 4,607,122 $ 4,858,545 | |
====nbsp; ====/pre> | |
MAJOR_CLASS_PROPERTY_AND_EQUIP
MAJOR CLASS PROPERTY AND EQUIPMENTS (Tables) | 6 Months Ended |
Aug. 31, 2013 | |
MAJOR CLASS PROPERTY AND EQUIPMENTS | |
MAJOR CLASS PROPERTY AND EQUIPMENTS | Major classes of property and equipment consist of the following: |
August 31, 2013 February 28, 2013 | |
--------------- ----------------- | |
Computer equipment $ 25,529 $ 23,353 | |
Computer software 5,043 2,368 | |
Other fixed assets including signage 8,484 8,664 | |
----------- ----------- | |
Subtotal 39,056 34,385 | |
Less accumulated depreciation (14,791) (9,427) | |
----------- ----------- | |
Property and equipment, net $ 24,265 $ 24,958 | |
====nbsp; ====/pre> | |
DEBT_AND_OTHER_OBLIGATION_Tabl
DEBT AND OTHER OBLIGATION (Tables) | 6 Months Ended |
Aug. 31, 2013 | |
DEBT AND OTHER OBLIGATION | |
DEBT AND OTHER OBLIGATION | Debt and other obligations consist of the following: |
August 31, 2013 February 28, 2013 | |
--------------- ----------------- | |
Loan payable - individual - unsecured, interest | |
bearing, no fixed repayment terms $ 19,414 $ 22,625 | |
Loan payable - individual - unsecured, interest | |
bearing, no fixed repayment terms 9,707 11,312 | |
Loan payable - individual - unsecured, interest | |
bearing, no fixed repayment terms 48,536 56,562 | |
Loan payable - individual - unsecured, interest | |
bearing, no fixed repayment terms 29,364 41,008 | |
Loan payable - other - unsecured, interest bearing, | |
no fixed repayment terms 49,637 68,027 | |
Loan payable - bank - secured by assets of the | |
company, bearing interest of JIBAR plus 5% per | |
annum, repayable in quarterly installments | |
beginning 30 September 2012 1,617,872 2,356,765 | |
Loan payable - other - unsecured, interest bearing, | |
no fixed repayment terms 55,816 151,181 | |
Loan payable - other - unsecured, interest bearing, | |
no fixed repayment terms 23,979 27,943 | |
Loan payable - other - unsecured, interest bearing, | |
no fixed repayment terms 27,500 27,489 | |
---------- ---------- | |
Total $1,881,825 $2,762,912 | |
Current portion of loans payable 808,936 731,271 | |
---------- ---------- | |
Long-term portion of loans payable $1,072,889 $2,031,641 | |
====bsp; ====pre> | |
Expected_maturities_of_debt_an
Expected maturities of debt and other obligations (Tables) | 6 Months Ended |
Aug. 31, 2013 | |
Expected maturities of debt and other obligations | |
Expected maturities of debt and other obligations | Expected maturities of debt and other obligations outstanding at August 31, 2013 |
are as follows: | |
Loan Amounts Lease Amounts Total | |
------------ ------------- ---------- | |
August 31, 2014 $ 808,936 $ 624,010 $1,432,945 | |
August 31, 2015 $ 836,436 $ 624,042 $1,460,478 | |
August 31, 2016 $ 202,234 $ 506,585 $ 708,820 | |
August 31, 2017 $ 0 $ 70,145 $ 70,145 | |
August 31, 2018 $ 0 $ 0 $ 0 | |
Thereafter 34,219 $ 0 $ 34,219 | |
---------- ---------- ---------- | |
Total $1,881,825 $1,824,782 $3,706,607 | |
====bsp; ====bsp; ====pre> | |
Expenses_incurred_under_operat
Expenses incurred under operating leases (Table) | 6 Months Ended |
Aug. 31, 2013 | |
Expenses incurred under operating leases | |
Expenses incurred under operating leases | Expenses incurred under operating leases for the period were as follows: |
August 31, 2013 August 31, 2012 | |
--------------- --------------- | |
Operating leases: | |
Premises $ 27,694 $ 28,507 | |
-------- -------- | |
$ 27,694 $ 28,507 | |
===nbsp; ===/pre> | |
Future_minimum_rentals_and_fee
Future minimum rentals and fees operating leases (Table) | 6 Months Ended |
Aug. 31, 2013 | |
Future minimum rentals and fees operating leases | |
Future minimum rentals and fees operating leases | Future minimum rentals and fees under non-cancelable operating leases for the 12 |
month periods are presented in the following table: | |
August31, 2014 $ 0 | |
August 31, 2015 $ 0 | |
August 31, 2016 $ 0 | |
August 31, 2017 $ 0 | |
August 31, 2018 $ 0 | |
RELATED_PARTY_TRANSACTIONS_AND
RELATED PARTY TRANSACTIONS AND ACTIVITIES (Table) | 6 Months Ended |
Aug. 31, 2013 | |
RELATED PARTY TRANSACTIONS AND ACTIVITIES | |
RELATED PARTY TRANSACTIONS AND ACTIVITIES | The related party transactions are as follows: |
August 31, 2013 February 28, 2013 | |
--------------- ----------------- | |
Loans payable to shareholders/related parties: | |
G. Hardie $ 0 $ 4,000 | |
-------- -------- | |
Total loans payable to related parties $ 0 $ 4,000 | |
===nbsp; ===/pre> | |
Compensation paid to directors | |
G. Hardie $ 1,000 $ 1,000 | |
John Storey 0 6,787 | |
-------- -------- | |
Total compensation paid to directors $ 1,000 $ 10,787 | |
===nbsp; ===/pre> | |
Correction_on_each_financial_s
Correction on each financial statement line item (Table) | 6 Months Ended |
Aug. 31, 2013 | |
Correction on each financial statement line item | |
Correction on each financial statement line item | The balances for the three months ended August 31, 2012 have been restated to |
correct the presentation of the deferred income and deferred costs and to | |
correct the errors from 2012 detailed above. | |
Previously | |
August 31, 2012 Financial Statements Line Item Corrected Stated | |
------------------------------------ --------- --------- ------ | |
Statement of Operations Rental Income $ 965,758 $1,097,212 | |
Statement of Operations Direct motor vehicle costs $ 408,808 $ 440,631 | |
Statement of Operations Net Income $ 234,007 $ 333,638 | |
Statement of Other comprehensive Income Net Income $ 234,007 $ 333,638 | |
Statement of Other comprehensive Income Foreign Currency Translation $ (11,875) $ (16,319) | |
Income Direct and Operating Costs $ 311,340 $ 408,808 | |
Income Selling and administrative costs $ 126,126 $ 28,658 | |
The balances for the six months ended August 31, 2012 have been restated to | |
correct the presentation of the deferred income and deferred costs and to | |
correct the errors from 2012 detailed above. | |
Previously | |
August 31, 2012 Financial Statements Line Item Corrected Stated | |
------------------------------------ --------- --------- ------ | |
Statement of Operations Rental Income $1,590,553 $1,753,362 | |
Statement of Operations Direct motor vehicle costs $ 656,141 $ 695,508 | |
Statement of Operations Net Income $ 263,905 $ 387,347 | |
Statement of Other comprehensive Income Net Income $ 263,905 $ 387,347 | |
Statement of Other comprehensive Income Foreign Currency Translation $ (77,191) $ (109,194) | |
Statement of Cash Flows Net Income $ 263,905 $ 387,347 | |
Statement of Cash Flows Increase in deferred costs $ (29,557) $ 0 | |
Statement of Cash Flows Increase in deferred income $ 120,996 $ 0 | |
Statement of Cash Flows Cash flows provided by operating | |
activity $ 663,877 $ 586,686 | |
Statement of Cash Flows Exchange rate effect on cash and | |
cash equivalents $ (77,191) $ (109,194) | |
Income Direct and Operating Costs $ 427,939 $ 656,141 | |
Income Selling and administrative costs $ 367,210 $ 139,008 | |
NATURE_OF_BUSINESS_AND_PLAN_De
NATURE OF BUSINESS AND PLAN (Details) (USD $) | Dec. 07, 2011 |
NATURE OF BUSINESS AND PLAN: | |
Acquired shares of common stock | 78,500,000 |
Acquired shares of common stock value | $150,000 |
Balance shares submitted for cancellation | 205,000,000 |
Cash_and_Cash_Equivalents_Cons
Cash and Cash Equivalents Consists Of (Details) (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
Cash and Cash Equivalents Consists Of: | ||
Cash and cash equivalents include cash on hand and on deposit | $219,216 | $682,096 |
ALLOWANCE_FOR_DOUBTFUL_ACCOUNT
ALLOWANCE FOR DOUBTFUL ACCOUNTS AS OF (Details) (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
ALLOWANCE FOR DOUBTFUL ACCOUNTS AS OF: | ||
Impaired receivables | $30,023 | $7,444 |
Allowance for impaired receivables | $80,606 | $14,359 |
Recovered_Sheet1
Average useful lives of fixed assets follows (Details) | Feb. 28, 2013 |
Average useful lives of fixed assets follows: | |
Motor vehicles (years) | 6 |
Computer equipment (years) | 3 |
Computer software (years) | 2 |
Leased assets - motor vehicles (years) | 6 |
ADVERTISING_COSTS_INCURRED_Det
ADVERTISING COSTS INCURRED (Details) (USD $) | 6 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
ADVERTISING COSTS INCURRED: | ||
Advertising expense | $34,735 | $34,615 |
Revenueearning_vehicles_consis
Revenue-earning vehicles consist of the following (Details) (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
Revenue-earning vehicles consist of the following: | ||
Revenue-earning vehicles | $5,912,208 | $6,212,677 |
Less accumulated depreciation | -1,305,086 | -1,354,132 |
Total Revenue-earning vehicles | $4,607,122 | $4,858,545 |
Property_and_Equipment_consist
Property and Equipment consist of the following (Details) (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
Property and Equipment consist of the following: | ||
Computer equipment | $25,529 | $23,353 |
Computer software | 5,043 | 2,368 |
Other fixed assets including signage | 8,484 | 8,664 |
Subtotal | 39,056 | 34,385 |
Less accumulated depreciation: | -14,791 | -9,427 |
Property and equipment, net as of | $24,265 | $24,958 |
LOANS_RECEIVABLE_UNDER_AGREEME
LOANS RECEIVABLE UNDER AGREEMENT (Details) (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
LOANS RECEIVABLE UNDER AGREEMENT: | ||
Receivable due under a settlement agreement | $6,343 | $7,037 |
loan is to be repaid with interest | 10.00% | |
Installments | 48 | |
Equal installments amount | $425 |
Debt_and_other_obligations_con
Debt and other obligations consist of the following (Details) (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
Debt and other obligations consist of the following: | ||
Loan payable - individual - unsecured, interest bearing, no fixed repayment terms | $19,414 | $22,625 |
Loan payable - individual - unsecured, interest bearing, no fixed repayment terms. | 9,707 | 11,312 |
Loan payable - individual - unsecured, interest bearing, no fixed repayment terms, | 48,536 | 56,562 |
Loan payable - individual - unsecured, interest bearing, no fixed repayment terms: | 29,364 | 41,008 |
Loan payable - other - unsecured, interest bearing, no fixed repayment terms; | 49,637 | 68,027 |
Loan payable - bank - secured by assets of the bearing interest of JIBAR plus 5% per annum, repayable in quarterly installments beginning 30 September 2012 | 1,617,872 | 2,356,765 |
Loan payable - other - unsecured, interest bearing, no fixed repayment terms | 55,816 | 151,181 |
Loan payable - other - unsecured, interest bearing, no fixed repayment terms. | 23,979 | 27,943 |
Loan payable - other - unsecured, interest bearing, no fixed repayment terms, | 27,500 | 27,489 |
Total: | 1,881,825 | 2,762,912 |
Current portion of loans payable, | 808,936 | -731,271 |
Long-term portion of loans payable, | $1,072,889 | $2,031,641 |
Expected_maturities_of_debt_an1
Expected maturities of debt and other obligations outstanding (Details) (USD $) | Aug. 31, 2013 |
Loan Amounts | |
Loan And Lease Amounts August 31, 2014 | $808,936 |
Loan And Lease Amounts August 31, 2015 | 836,436 |
Loan And Lease Amounts August 31, 2016 | 202,234 |
Loan And Lease Amounts August 31, 2017 | 0 |
Loan And Lease Amounts August 31, 2018 | 0 |
Loan And Lease Amounts Thereafter | 34,219 |
Loan And Lease Amounts Total | 1,881,825 |
Lease Amounts | |
Loan And Lease Amounts August 31, 2014 | 624,010 |
Loan And Lease Amounts August 31, 2015 | 624,042 |
Loan And Lease Amounts August 31, 2016 | 506,585 |
Loan And Lease Amounts August 31, 2017 | 70,145 |
Loan And Lease Amounts August 31, 2018 | 0 |
Loan And Lease Amounts Thereafter | 0 |
Loan And Lease Amounts Total | 1,824,782 |
Total Amount | |
Loan And Lease Amounts August 31, 2014 | 1,432,945 |
Loan And Lease Amounts August 31, 2015 | 1,460,478 |
Loan And Lease Amounts August 31, 2016 | 708,820 |
Loan And Lease Amounts August 31, 2017 | 70,145 |
Loan And Lease Amounts August 31, 2018 | 0 |
Loan And Lease Amounts Thereafter | 34,219 |
Loan And Lease Amounts Total | $3,706,607 |
Installment_sales_and_lease_co
Installment sales and lease contracts (Details) (USD $) | Aug. 31, 2013 |
Installment sales and lease contracts: | |
Finance lease agreements revenue generating vehicles | $1,974,808 |
Installment sales and lease contracts are repayable in monthly installments | $8,661 |
PROVISION_FOR_INCOME_TAXES_CON
PROVISION FOR INCOME TAXES CONSISTS OF THE FOLLOWING (Details) (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
PROVISION FOR INCOME TAXES CONSISTS OF THE FOLLOWING: | ||
Net losses of approximately | $0 | $524,559 |
Valuation allowance | $0 | $0 |
Common_And_Preferred_Shares_De
Common And Preferred Shares (Details) | Feb. 28, 2013 | Feb. 29, 2012 | Jan. 19, 2012 | Nov. 14, 2011 |
Common And Preferred Shares: | ||||
Increase in authorized common shares | 250,000,000 | |||
Cancelled shares of common stock | 121,500,000 | |||
Common shares outstanding | 112,250,000 | 112,250,000 | ||
Preferred shares authorized | 20,000,000 | 20,000,000 | ||
Preferred shares outstanding | 0 | 0 |
Operating_leases_for_the_perio
Operating leases for the period were as follows (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Operating leases: | ||
Premises | $27,694 | $28,507 |
Total Premises | $27,694 | $28,507 |
Future_minimum_rentals_and_fee1
Future minimum rentals and fees under non-cancelable operating leases (Details) (USD $) | Aug. 31, 2013 |
Future minimum rentals and fees under non-cancelable operating leases | |
Future minimum rentals and fees under non-cancelable operating leases August 31, 2014 | $0 |
Future minimum rentals and fees under non-cancelable operating leases August 31, 2015 | 0 |
Future minimum rentals and fees under non-cancelable operating leases August 31, 2016 | 0 |
Future minimum rentals and fees under non-cancelable operating leases August 31, 2017 | 0 |
Future minimum rentals and fees under non-cancelable operating leases August 31, 2018 | $0 |
RELATED_PARTY_TRANSACTIONS_CON
RELATED PARTY TRANSACTIONS CONSISTS OF THE FOLLOWING (Details) (USD $) | Aug. 31, 2013 | Feb. 28, 2013 |
Loans payable to shareholders/related parties: | ||
G. Hardie | $0 | $4,000 |
Total loans payable to related parties | 0 | 4,000 |
Compensation paid to directors: | ||
G. Hardie. | 1,000 | 4,000 |
John Storey | 0 | 6,787 |
Total Compensation paid to directors | $1,000 | $10,787 |
Restated_to_correct_the_presen
Restated to correct the presentation of the deferred income and deferred costs and to correct the errors (Details) (USD $) | 3 Months Ended | 6 Months Ended |
Aug. 31, 2012 | Aug. 31, 2012 | |
Corrected | ||
Statement of Operations-Rental Income | $965,758 | |
Statement of Operations-Direct motor vehicle costs | 408,808 | |
Statement of Operations-Net Income | 234,007 | |
Statement of Other comprehensive Income-Net Income | 234,007 | |
Statement of Other comprehensive Income-Foreign Currency Translation | -11,875 | |
Income-Direct and Operating Costs | 311,340 | |
Income-Selling and administrative costs | 126,126 | |
Statement of Operations-Rental Income. | 1,590,553 | |
Statement of Operations-Direct motor vehicle costs. | 656,141 | |
Statement of Operations-Net Income. | 263,905 | |
Statement of Other comprehensive Income-Net Income. | 263,905 | |
Statement of Other comprehensive Income-Foreign Currency Translation. | -77,191 | |
Statement of Cash Flows-Net Income | 263,905 | |
Statement of Cash Flows-Increase in deferred costs | -29,557 | |
Statement of Cash Flows-Increase in deferred income | 120,996 | |
Statement of Cash Flows-Cash flows provided by operating activity | 663,877 | |
Statement of Cash Flows-Exchange rate effect on cash and cash equivalents | -77,191 | |
Income-Direct and Operating Costs. | 427,939 | |
Income-Selling and administrative costs. | 367,210 | |
Previously Stated | ||
Statement of Operations-Rental Income | 1,097,212 | |
Statement of Operations-Direct motor vehicle costs | 440,631 | |
Statement of Operations-Net Income | 333,638 | |
Statement of Other comprehensive Income-Net Income | 333,638 | |
Statement of Other comprehensive Income-Foreign Currency Translation | -16,319 | |
Income-Direct and Operating Costs | 408,808 | |
Income-Selling and administrative costs | 28,658 | |
Statement of Operations-Rental Income. | 1,753,362 | |
Statement of Operations-Direct motor vehicle costs. | 695,508 | |
Statement of Operations-Net Income. | 387,347 | |
Statement of Other comprehensive Income-Net Income. | 387,347 | |
Statement of Other comprehensive Income-Foreign Currency Translation. | -109,194 | |
Statement of Cash Flows-Net Income | 387,347 | |
Statement of Cash Flows-Increase in deferred costs | 0 | |
Statement of Cash Flows-Increase in deferred income | 0 | |
Statement of Cash Flows-Cash flows provided by operating activity | 586,686 | |
Statement of Cash Flows-Exchange rate effect on cash and cash equivalents | -109,194 | |
Income-Direct and Operating Costs. | 656,141 | |
Income-Selling and administrative costs. | $139,008 |