Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Mar. 16, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Praco Corp | |
Entity Central Index Key | 1,498,122 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 6,902,500 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Current Assets | ||
Cash | $ 1,216 | $ 29 |
Total Current Assets | 1,216 | 29 |
TOTAL ASSETS | 1,216 | 29 |
Current Liabilities | ||
Accounts payable and accured expenses | 55,412 | 14,119 |
Note payable | 9,000 | 9,000 |
Notes payable - related parties | 333,162 | 313,300 |
Total Current Liabilities | 397,574 | 336,419 |
Stockholders' Deficit | ||
Preferred stock, $.0001 par value, 5,000,000 shares authorized, none issued and outstanding | ||
Common Stock, $.0001 par value, 100,000,000 shares authorized, 6,902,500 shares issued and outstanding | 690 | 690 |
Additional paid-in capital | 343,257 | 343,257 |
Accumulated deficit | (740,305) | (680,337) |
Total Stockholders' Deficit | (396,358) | (336,390) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 1,216 | $ 29 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Dec. 31, 2016 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 6,902,500 | 6,902,500 |
Common stock, shares outstanding | 6,902,500 | 6,902,500 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Expenses | ||||
Professional fees | $ 12,170 | $ 10,740 | $ 29,670 | $ 27,770 |
General and administrative | 29,797 | 3,866 | 30,275 | 8,147 |
Total Operating Expenses | 41,967 | 14,606 | 59,945 | 35,917 |
Loss Before Other Expenses | (41,967) | (14,606) | (59,945) | (35,917) |
Other Expenses | ||||
Interest expense | (5,885) | (23) | (11,419) | |
Total Other Expense | (5,885) | (23) | (11,419) | |
Net Loss | $ (41,967) | $ (20,491) | $ (59,968) | $ (47,336) |
Net Loss Per Share-Basic and Diluted | $ (0.01) | $ (0.01) | $ (0.01) | |
Weighted average number of shares outstanding during the period-Basic and Diluted | 6,902,500 | 6,902,500 | 6,902,500 | 6,902,500 |
Condensed Statement of Changes
Condensed Statement of Changes in Stockholder's Deficit Unaudited) - 6 months ended Dec. 31, 2016 - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Jun. 30, 2016 | $ (336,390) | $ 690 | $ 343,257 | $ (680,337) | |
Balance, shares at Jun. 30, 2016 | 6,902,500 | ||||
Net loss | (59,968) | (59,968) | |||
Balance at Dec. 31, 2016 | $ (396,358) | $ 690 | $ 343,257 | $ (740,305) | |
Balance, shares at Dec. 31, 2016 | 6,902,500 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (59,968) | $ (47,336) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
In-kind contribution of services and interest | 14,019 | |
Changes in operating assets and liabilities: | ||
Increase (decrease) in accounts payable and accrued expenses | 41,293 | (7,519) |
Net cash used in operating activities | (18,675) | (40,836) |
Cash flows from financing activities | ||
Proceeds from notes payable - related party | 19,862 | 40,000 |
Net cash provided by financing activities | 19,862 | 40,000 |
Net increase (decrease) in cash | 1,187 | (836) |
Cash, beginning of period | 29 | 953 |
Cash, end of period | 1,216 | 117 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | $ 60 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Organization | 6 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies and Organization [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION Hunt for Travel, Inc. (the "Company") was incorporated in Nevada on December 15, 2009 to design and market enrichment excursions for U.S. travelers. The enrichment component of these trips can be educational, informational or experiential and is tailored to the travelers’ specific interests and tastes. Enrichment travel can also be referred to as adventure travel. Effective February 21, 2012, the Company filed with the State of Nevada a Certificate of Amendment to the Articles of Incorporation changing the Company’s name from Hunt for Travel, Inc. to Praco Corporation. At the same time the Company ceased being a travel agency and became a Public Shell. The Company is available for another operational company to acquire. On February 22, 2017, the Company entered into a Letter of Intent (“LOI”) with Arista Capital LTD. (“Arista”) whereby the shareholders of Arista will acquire eighty percent (80%) of the issued and outstanding shares of the Company. In consideration for the above, Arista will pay $75,000 and will assume all of the liabilities of the Company. This transaction is contingent upon the Company and Arista executing a formal “Merger Agreement” which is expected to occur on or about March 31, 2017. The closing of the transaction is expected to occur sixty (60) days from the execution of the Merger Agreement. The LOI may be terminated by (a) mutual consent of the parties, (b) by the Company if (i) a definitive Merger Agreement is not executed and delivered by the parties, (ii) the Merger Agreement is enjoined by a court or any governmental body, or (iii) by Arista if they are not satisfied with the results of their due diligence investigation of the Company. (A) Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations. While the Company believes that the disclosures presented are adequate to make the information not misleading, these financial statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s annual Report on Form 10-K for the year ended June 30, 2016. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of a full year. (B) Use of Estimates In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates include valuation of equity based transactions and the valuation of deferred tax assets. (C) Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At December 31, 2016 and June 30, 2016, the Company had no cash equivalents. (D) Loss Per Share Basic and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by Financial Accounting Standards Board (“FASB”) ASC No. 260, “Earnings Per Share.” As of December 31, 2016 and 2015, there were no common share equivalents outstanding. (E) Fair Value of Financial Instruments The carrying amounts on the Company’s financial instruments including accounts payable and notes payable, approximate fair value due to the relatively short period to maturity for these instruments. (F) Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15 “Presentation of Financial Statements—Going Concern,” outlining management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern, along with the required disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter with early adoption permitted. The Company is currently assessing the impact of ASU 2014-15 on its financial statements. |
Going Concern
Going Concern | 6 Months Ended |
Dec. 31, 2016 | |
Going Concern [Abstract] | |
GOING CONCERN | NOTE 2 GOING CONCERN As reflected in the accompanying financial statements, the Company has minimal operations, used cash in operating activities of $18,675 and has a net loss of $59,968 for the six months ended December 31, 2016. The Company also has a working capital deficit and stockholders’ deficit of $396,358 as of December 31, 2016. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. |
Note Payable
Note Payable | 6 Months Ended |
Dec. 31, 2016 | |
Note Payable [Abstract] | |
NOTE PAYABLE | NOTE 3 NOTE PAYABLE On June 5, 2012 the Company received $9,000 from a third party. Pursuant to the terms of the note, the note is non-interest bearing, unsecured and is due on demand. Total balance due at December 31, 2016 and June 30, 2016 was $9,000. |
Commitments
Commitments | 6 Months Ended |
Dec. 31, 2016 | |
Commitments [Abstract] | |
COMMITMENTS | NOTE 4 COMMITMENTS On April 1, 2012, the Company entered into a consulting agreement with Europa Capital Investments, LLC for administrative and other miscellaneous services. The agreement is to remain in effect unless either party desired to cancel the agreement. During the six months ended , 2016 and 2015, the fees incurred were $-0- and $10,000, respectively. On October 1, 2016, the Company signed two employment agreements, one with the CEO/President and the other with one of the Directors. Both agreements are the same which are effective October 1, 2016 to September 30, 2019. The agreements call for an annual salary of $48,000 and if not paid by the end of the year, the compensation would be paid in Company stock at a 25% discount to the market value. All refinancing, fund raising, debt or equity sales, and acquisitions when completed by the individuals would be subject to a bonus payment of 10% of the gross proceeds. In connection with the two employment agreements, the Company recorded $24,000 in compensation expense in the current period and is also included in accrued expense as of December 31, 2016 on the accompanying balance sheet. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 5 RELATED PARTY TRANSACTIONS On January 29, 2015, the Company received $7,000 from an entity owned by a stockholder of the Company. Pursuant to the terms of the note, the note is non-interest bearing, unsecured and is due on demand. Total balance due at December 31, 2016 and June 30, 2016 was $7,000. The Company received $30,000 on April 30, 2013, $30,000 on July 12, 2013, $25,000 on October 9, 2013, $25,000 on January 9, 2014, $25,000 on April 11, 2014 and $25,000 on July 10, 2014 from an entity owned by a stockholder of the Company. Total balance due at December 31, 2016 and June 30, 2016 was $160,000. Pursuant to the terms of the notes, the notes are non-interest bearing, unsecured and are due on demand. The Company received $8,500 on June 25, 2012, $20,000 on September 14, 2012 and $27,578 on January 17, 2013 from Hawk Opportunity Fund, LP, an entity indirectly owned by a stockholder of the Company. Total balance due at December 31, 2016 and June 30, 2016 was $56,078. Pursuant to the terms of the notes, the notes are non-interest bearing, unsecured and are due on demand. As needed, Green Homes Real Estate, LP, an entity indirectly owned by a stockholder of the Company transfers funds to the Company to cover operating expenses. Those transfers are as follows: $20,722 on November 13, 2014, $10,000 on March 17, 2015, $4,500 on May 22, 2015, $20,000 on July 27, 2015, $20,000 on November 30, 2015, $15,000 on February 11, 2016, $5,000 on July 26, 2016, $3,831 on August 25, 2016 and $600 on December 31, 2016, in exchange for various notes payable. Total balance due at December 31, 2016 and June 30, 2016 was $99,653 and $90,222, respectively. Pursuant to the terms of the notes, the notes are non-interest bearing, unsecured and due on demand. As needed, Philly Residential Acquisition LP, an entity indirectly owned by a stockholder of the Company transfers funds to the Company to cover operating expenses. Those transfers are as follows: $3,831 on August 25, 2016, $1,000 on October 19, 2016, $5,000 on December 1, 2016 and $600 on December 15, 2016. Total balance due at December 31, 2016 and June 30, 2016 was $10,431 and $-0-, respectively. Pursuant to the terms of the notes, the notes are non-interest bearing, unsecured and are due on demand. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 6 INCOME TAXES The Company recorded no income tax expense for the six months ended December 31, 2016 and 2015 because the estimated annual effective tax rate was zero. As of December 31, 2016, the Company continues to provide a valuation allowance against its net deferred tax assets especially since the Company believes it is more than likely than not that its deferred tax assets will not be realized. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 7 SUBSEQUENT EVENTS On January 11, 2017, the Company received $10,500 from Hawk Opportunity Fund, L.P. This brings the total balance due to Hawk Opportunity Fund, L.P. to $66,578. Pursuant to the terms of the notes, the notes are non-interest bearing, unsecured and are due on demand. On January 17, 2017, the Company received $12,500 from HWC, LLC, a subsidiary of Hawk Opportunity Fund, L.P. Pursuant to the terms of the note, the note is non-interest bearing, unsecured and is due on demand. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies and Organization (Policies) | 6 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies and Organization [Abstract] | |
Basis of Presentation | (A) Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations. While the Company believes that the disclosures presented are adequate to make the information not misleading, these financial statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s annual Report on Form 10-K for the year ended June 30, 2016. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of a full year. |
Use of Estimates | (B) Use of Estimates In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates include valuation of equity based transactions and the valuation of deferred tax assets. |
Cash and Cash Equivalents | (C) Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At December 31, 2016 and June 30, 2016, the Company had no cash equivalents. |
Loss Per Share | (D) Loss Per Share Basic and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by Financial Accounting Standards Board (“FASB”) ASC No. 260, “Earnings Per Share.” As of December 31, 2016 and 2015, there were no common share equivalents outstanding. |
Fair Value of Financial Instruments | (E) Fair Value of Financial Instruments The carrying amounts on the Company’s financial instruments including accounts payable and notes payable, approximate fair value due to the relatively short period to maturity for these instruments. |
Recent Accounting Pronouncements | (F) Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15 “Presentation of Financial Statements—Going Concern,” outlining management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern, along with the required disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter with early adoption permitted. The Company is currently assessing the impact of ASU 2014-15 on its financial statements. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies and Organization (Details) - Arista Capital LTD [Member] - Subsequent Event [Member] | 1 Months Ended |
Feb. 22, 2017USD ($) | |
Summary of significant accounting policies and organization (Textual) | |
Shareholders ownership percentage | 80.00% |
Shareholder will pay assumed liabilities | $ 75,000 |
Business combination merger agreement description | This transaction is contingent upon the Company and Arista executing a formal "Merger Agreement" which is expected to occur on or about March 31, 2017. The closing of the transaction is expected to occur sixty (60) days from the execution of the Merger Agreement. |
Going Concern (Details)
Going Concern (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Going Concern (Textual) | |||||
Cash used in operations | $ (18,675) | $ (40,836) | |||
Net loss | $ (41,967) | $ (20,491) | (59,968) | $ (47,336) | |
Stockholders' deficit | $ (396,358) | $ (396,358) | $ (336,390) |
Note Payable (Details)
Note Payable (Details) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 05, 2012 |
Note Payable Textual [Abstract] | |||
Note payable | $ 9,000 | $ 9,000 | |
Note Payable [Member] | |||
Note Payable Textual [Abstract] | |||
Note payable | $ 9,000 |
Commitments (Details)
Commitments (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments (Textual) | ||
Consulting fees | $ 0 | $ 10,000 |
Annual salary | $ 48,000 | |
Other commitments, description | The compensation would be paid in Company stock at a 25% discount to the market value. All refinancing, fund raising, debt or equity sales, and acquisitions when completed by the individuals would be subject to a bonus payment of 10% of the gross proceeds. | |
Compensation expense | $ 24,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Dec. 31, 2016 | Dec. 01, 2016 | Oct. 19, 2016 | Aug. 25, 2016 | Aug. 25, 2016 | Jul. 26, 2016 | Feb. 11, 2016 | Nov. 30, 2015 | Jul. 27, 2015 | May 22, 2015 | Mar. 17, 2015 | Nov. 13, 2014 | Dec. 15, 2016 | Jun. 30, 2016 | Jan. 29, 2015 | Jul. 10, 2014 | Apr. 11, 2014 | Jan. 09, 2014 | Oct. 09, 2013 | Jul. 12, 2013 | Apr. 30, 2013 | Jan. 17, 2013 | Sep. 14, 2012 | Jun. 25, 2012 |
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Notes payable - related parties | $ 333,162 | $ 313,300 | ||||||||||||||||||||||
Stockhoder One [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Notes receivable - related party | $ 7,000 | |||||||||||||||||||||||
Notes payable - related parties | 7,000 | 7,000 | ||||||||||||||||||||||
Shareholder Two [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Notes receivable - related party | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 30,000 | $ 30,000 | ||||||||||||||||||
Notes payable - related parties | 160,000 | 160,000 | ||||||||||||||||||||||
Hawk [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Notes receivable - related party | $ 27,578 | $ 20,000 | $ 8,500 | |||||||||||||||||||||
Notes payable - related parties | 56,078 | 56,078 | ||||||||||||||||||||||
Green Homes Real Estate, LP [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Transfers funds to cover operating expenses | 600 | $ 3,831 | $ 5,000 | $ 15,000 | $ 20,000 | $ 20,000 | $ 4,500 | $ 10,000 | $ 20,722 | |||||||||||||||
Notes payable - related parties | 99,653 | 90,222 | ||||||||||||||||||||||
Philly Residential Acquisition LP [Member] | ||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||
Transfers funds to cover operating expenses | $ 5,000 | $ 1,000 | $ 3,831 | $ 600 | ||||||||||||||||||||
Notes payable - related parties | $ 10,431 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Hawk Opportunity Fund Lp [Member] - USD ($) | Jan. 17, 2017 | Jan. 11, 2017 |
Subsequent Events (Textuals) | ||
Company received amount | $ 12,500 | $ 10,500 |
Total balance due to related party | $ 66,578 |