Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 12, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-177792 | |
Entity Registrant Name | THE TEARDROPPERS, INC | |
Entity Central Index Key | 0001615780 | |
Entity Tax Identification Number | 20-4168979 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 620 Newport Center Drive Suite 1100 | |
Entity Address, City or Town | Newport Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92660 | |
City Area Code | 949 | |
Local Phone Number | 751-2173 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,920,000 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 34,305 | $ 29,158 |
Lease receivable - related party (current portion) | 60,012 | 54,309 |
Interest receivable | 2,258 | 1,053 |
Total current assets | 96,575 | 84,520 |
Property and equipment: | ||
Cost | 129,114 | 129,114 |
Less accumulated depreciation | (96,394) | (90,088) |
Property and equipment, net | 32,720 | 39,026 |
Lease receivable - related party (net) | 101,785 | 116,178 |
Total Assets | 231,080 | 239,724 |
Current liabilities | ||
Accounts payable | 377,825 | 358,625 |
Accounts payable - related parties | 476,170 | 453,176 |
Customer deposits | 14,500 | 14,500 |
Current portion of notes payable | 5,861 | 5,695 |
Accrued interest - unrelated parties | 1,028 | 1,051 |
Lines of credit from related parties | 1,154,060 | 1,104,060 |
Accrued interest payable-related parties | 353,783 | 326,224 |
Total current liabilities | 2,383,227 | 2,263,331 |
Long-term liabilities: | ||
Note payable | 56,009 | 57,516 |
Total Liabilities | 2,439,236 | 2,320,847 |
Stockholders' Deficit | ||
Preferred stock, par value $0.001, authorized 20,000,000 shares, issued shares 0 | 0 | 0 |
Common stock, par value $0.001, authorized 200,000,000 shares issued 45,920,000 | 45,920 | 45,920 |
Additional paid in capital | 828,558 | 828,558 |
Accumulated deficit | (3,082,634) | (2,955,601) |
Total Stockholders' Deficit | (2,208,156) | (2,081,123) |
Total Liabilities and Stockholders' Deficit | $ 231,080 | $ 239,724 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 45,920,000 | 45,920,000 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | ||
Total revenues | $ 0 | $ 13,275 |
Operating expenses: | ||
Consulting to related party | 43,500 | 36,000 |
Consulting to unrelated party | 5,000 | 22,500 |
General and administrative | 38,606 | 55,177 |
Professional fees | 16,193 | 18,113 |
Total operating expenses | 103,299 | 131,790 |
Operating loss | (103,299) | (118,515) |
Other income (expense): | ||
Interest income - related parties | 5,372 | 7,023 |
Interest expense - unrelated parties | (1,547) | (1,676) |
Interest expense - related parties | (27,559) | (22,582) |
Total other income (expense) | (23,734) | (17,235) |
Net loss before taxes | (127,033) | (135,750) |
Income tax provision | 0 | 0 |
Net loss | $ (127,033) | $ (135,750) |
Net loss per share | ||
(Basic and fully diluted) | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 45,920,000 | 45,920,000 |
Lease Revenue Unrelated Parties [Member] | ||
Revenues | ||
Total revenues | $ 0 | $ 1,275 |
Lease Revenue Related Parties [Member] | ||
Revenues | ||
Total revenues | $ 0 | $ 12,000 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 45,920 | $ 828,558 | $ (2,496,953) | $ (1,622,475) | |
Balance at beginning, shares at Dec. 31, 2020 | 45,920,000 | ||||
Net loss for the period | (135,750) | (135,750) | |||
Ending balance, value at Mar. 31, 2021 | $ 45,920 | 828,558 | (2,632,703) | (1,758,225) | |
Balance at ending, shares at Mar. 31, 2021 | 45,920,000 | ||||
Beginning balance, value at Dec. 31, 2021 | $ 45,920 | 828,558 | (2,955,601) | (2,081,123) | |
Balance at beginning, shares at Dec. 31, 2021 | 45,920,000 | ||||
Net loss for the period | (127,033) | (127,033) | |||
Ending balance, value at Mar. 31, 2022 | $ 45,920 | $ 828,558 | $ (3,082,634) | $ (2,208,156) | |
Balance at ending, shares at Mar. 31, 2022 | 45,920,000 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (127,033) | $ (135,750) |
Adjustments to reconcile net loss to net cash used for operating activities | ||
Depreciation | 6,306 | 15,358 |
Changes in Operating Assets and Liabilities | ||
(Increase) decrease in interest receivable - related party | (1,205) | 10 |
Decrease in prepaid expenses | 413 | |
Decrease in lease receivable - related party | 8,690 | 10,826 |
Increase in other receivable | 0 | (2,000) |
Increase in accounts payable - unrelated parties | 19,200 | 25,914 |
Increase in accounts payable - related parties | 22,994 | 17,510 |
Increase in accrued interest-related parties | 27,559 | 19,989 |
Decrease in accrued interest - unrelated parties | (23) | (11) |
Net cash used for operating activities | (43,512) | (47,741) |
Cash Flows From Investing Activities: | ||
Purchase of vehicle | 0 | (36,113) |
Cash Flows From Financing Activities: | ||
Proceeds from line of credit to related parties | 75,000 | 163,500 |
Repayments on line of credit to related party | (25,000) | (72,509) |
Repayments on notes payable - unrelated parties | (1,341) | (1,227) |
Repayments on notes payable - related parties | (8,584) | |
Repayments on lease payable - related parties | 0 | (593) |
Net cash provided by financing activities | 48,659 | 80,587 |
Net Decrease In Cash | 5,147 | (3,267) |
Cash At The Beginning Of The Period | 29,158 | 49,473 |
Cash At The End Of The Period | 34,305 | 46,206 |
Non-cash investing and financing activities: | ||
Asset transferred for cancellation of shares | 0 | 0 |
Interest | 1,569 | 4,280 |
Franchise and income tax | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS On June 3, 2013, Teardroppers, Inc. (the “Company”), was incorporated under the laws of the state of Nevada. We are in the business of mobile billboard advertising providing billboard advertising space on custom designed "Teardrop Trailers" and various sizes of cargo type trailers. Teardrop Trailers, are usually designed for short-period accommodations for vacationers and travelers. Teardrop Trailers are designed to be towed behind new and vintage vehicles and pickup trucks. In addition, we own cargo trailers with flat non rivet panel siding that can be used for hauling and transportation. These trailers range in size from 15 feet to 53 feet. We lease these trailers for transportation of goods and for advertising of their respective business or the businesses of lessee clients. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three months ended March 31, 2022 is not necessarily indicative of the final results that may be expected for the year ended December 31, 2022. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2021 filed with the SEC on April 15, 2022. Use of estimates The preparation of financial statements in conformity with U.S. 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. Accordingly, actual results could differ from those estimates. Such estimates include management’s assessments of the carrying value of certain assets, lease liabilities, useful lives of assets and related depreciation, and valuation of deferred tax assets. Cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At March 31, 2022 and December 31, 2021, the Company had no Fair value of financial instruments The Company adopted the provisions of FASB Accounting Standards Codification (“ASC”) 820 (the “Fair Value Topic”) which defines fair value, establishes a framework for measuring fair value under U.S. GAAP, and expands disclosures about fair value measurements. The Fair Value Topic defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. It also establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels. The carrying amount of the Company’s financial assets and liabilities, such as cash, accounts payable, and accrued expenses, approximate their fair value because of the short maturity of those instruments. The Company’s loans payable approximates, the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at March 31, 2022 and December 31, 2021. The Company had no Property and equipment Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method over the assets estimated useful life of three ( 3 5 7 Revenue recognition On January 1, 2018, the Company adopted the provisions of ASC 606 Revenue from Contracts with Customers, and related Accounting Standards Updates. This new revenue recognition standard has a five step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied. The impact of the Company’s initial application of ASC 606 did not have a material impact on its financial statements and disclosures. The primary source of revenue and performance obligation is from the rental of advertising space on custom designed Teardrop Trailers. The length of the rental agreements varies from one to thirty days. Customers pay in advance and revenue is recognized based on the number of days of each contract that have expired. For the three months ended March 31, 2022 and 2021, the Company recognized no In March 2018, the Company entered into a four-year agreement to lease equipment to an unrelated shareholder. In September 2018, the son of the shareholder became the Chief Financial Officer. At that point the shareholder is considered a related party. For the three months ended March 31, 2022 and 2021, related party lease income was $ 0 12,000 In January 2019, the Company entered into a two-year agreement to lease a vehicle to an unrelated third party. For the three months ended March 31, 2022 and 2021, recognized operating lease income of $ 0 1,275 On February 1, 2020, the Company leased a truck and trailer purchased November 2019 for $190,000 to a related party. The lease is classified as a direct financing lease. The cost of the vehicle and related accumulated depreciation has been reclassified to a lease receivable and is reflected on the condensed balance sheet as lease receivable – related party. Interest income is reflected on the condensed statement of operations. For the three months ended March 31, 2022 and 2021, the Company recognized interest income of $ 3,819 5,347 On September 1, 2020, the Company leased a vehicle for $69,000 to a related party. The lease is classified as a direct financing lease. The lease is reflected on the condensed balance sheet as lease receivable – related party. Interest income is reflected on the condensed statement of operations. For the three months ended March 31, 2022 and 2021, the Company recognized interest income of $ 1,553 1,676 In January 2015, the Company received $14,500 as a deposit for advertising space to be provided in the future. As of March 31, 2022 and December 31, 2021, the customer has not utilized the space and no revenue has been recognized as the performance obligations have not been satisfied. At the time the service is provided under the terms of the agreement, the Company will recognize the revenue. Net income (loss) per share The Company computes basic and diluted earnings per share amounts pursuant to ASC 260-10-45. Basic earnings per share is computed by dividing net income (loss) available to common shareholders, by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share is computed by dividing net income (loss) available to common shareholders by the diluted weighted average number of shares of common stock during the period The diluted weighted average number of common shares outstanding is the basic weighted number of shares adjusted as of the first day of the year for any potentially diluted debt or equity. There were no Recently Issued Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3 – GOING CONCERN The Company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company has a minimum cash balance available for payment of ongoing operating expenses. As of March 31, 2022, the Company has an accumulated deficit of $ 3,082,634 43,512 127,033 |
LEASE RECEIVABLE _ RELATED PART
LEASE RECEIVABLE – RELATED PARTY | 3 Months Ended |
Mar. 31, 2022 | |
Lease Receivable Related Party | |
LEASE RECEIVABLE – RELATED PARTY | NOTE 4. LEASE RECEIVABLE – RELATED PARTY On November 12, 2019, the company purchased a truck and trailer from a related party for $190,000. On February 1, 2020, the Company leased the asset back to the same related party. The term of the lease is for 48 5,003 22,800 10 197,442 180,500 The undiscounted cash flow principal payments for the remaining term of the lease will be as follows: Schedule of lease receivable payments 2022 (remainder of year) $ 45,027 2023 60,036 2024 5,003 Total 110,066 Less deferred interest (10,394 ) Less current portion (52,881 ) Long-term lease receivable $ 46,791 On August 1, 2020, the company purchased a vehicle for $69,000 from a related party and leased it to the same related party. The term of the lease is for 60 months with payments of $1,000 per month. At the end of the lease, the related party has the right to purchase the vehicle for $37,000. The lease is classified as a financing lease under ASC 842. The present value of the lease payments, excluding the end of lease provisions, discounted at an interest rate of 10%, is $47,065. The Company is using the net book value of $69,000 of the asset as the initial value of the lease in accordance with ASC 842-30-55-17A. The undiscounted cash flow principal payments for the remaining term of the lease will be as follows: Schedule of lease receivable payments 2022 (remainder of year) $ 11,000 2023 12,000 2024 12,000 2025 8,000 Purchase option 37,000 Total 80,000 Less deferred interest (17,876 ) Less current portion (7,130 ) Long-term lease receivable $ 54,994 Income from both leases is reflected on the statement of operations as interest income – related parties. For the three months ended March 31, 2022 and 2021 interest income of $ 5,372 7,023 |
PROPERTY & EQUIPMENT
PROPERTY & EQUIPMENT | 3 Months Ended |
Mar. 31, 2022 | |
Property and equipment: | |
PROPERTY & EQUIPMENT | NOTE 5 – PROPERTY & EQUIPMENT Property and equipment consists of the following at March 31, 2022 and December 31, 2021. Schedule of property and equipment March 31, 2022 December 31, 2021 Property and equipment, purchased $ 129,114 $ 129,114 Less: accumulated depreciation (96,394 ) (90,088 ) Property and equipment, net $ 32,720 $ 39,026 Depreciation expense for the three months ended March 31, 2022 and 2021 was $ 6,306 15,358 |
LINE OF CREDIT FROM RELATED PAR
LINE OF CREDIT FROM RELATED PARTY | 3 Months Ended |
Mar. 31, 2022 | |
Line Of Credit From Related Party | |
LINE OF CREDIT FROM RELATED PARTY | NOTE 6 – LINE OF CREDIT FROM RELATED PARTY On February 25, 2014, the Company entered into a line of credit with DEVCAP Partners, LLC, a California limited liability company (“DEVCAP”), for an amount up to $ 450,000 December 31, 2023 10 202,129 227,129 11,750 6,307 On August 13, 2015, the Company entered into a line of credit with General Pacific Partners, LLC, a California limited liability company, for an amount up to $ 450,000 10 25,000 500,000 .05 0 4,732 During 2014, the Company entered into a line of credit agreement with Gemini Southern, LLC, a related party. The line of credit is a demand loan with a maximum of $ 950,000 10 951,931 876,931 191,669 169,553 |
LONG-TERM LIABILITIES
LONG-TERM LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM LIABILITIES | NOTE 7 – LONG-TERM LIABILITIES On August 1, 2020, the Company borrowed $69,000 from an unrelated party to purchase a 2020 Porsche Maran that was subsequently leased to a related party. See Note 4 for details of the lease agreement. The term of the loan is 60 months with payments of $912 per month with interest at 10%. A final payment of $41,722 is due in August 2025. The loan is secured by the vehicle. Principal payments for the next five years will be as follows: 2022 (remainder of year) $ 4,545 2023 5,458 2024 6,029 2025 45,838 Total 61,870 Less current portion (5,861 ) Long-term liability $ 56,009 |
OTHER RELATED PARTY TRANSACTION
OTHER RELATED PARTY TRANSACTIONS and RELATED PARTIES ACCOUNTS PAYABLE | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
OTHER RELATED PARTY TRANSACTIONS and RELATED PARTIES ACCOUNTS PAYABLE | NOTE 8 – OTHER RELATED PARTY TRANSACTIONS and RELATED PARTIES ACCOUNTS PAYABLE Note payable – Gemini Southern, LLC During 2014, the Company entered into a loan agreement with Gemini Southern, LLC, pursuant to which monies were to be paid to the Company by Gemini Southern, LLC, pursuant to the Consulting Agreement dated September 20, 2013. The balance was to be paid with interest commencing January 1, 2015 at a rate of 10% per annum, with a maturity date of December 12, 2018. On April 1, 2018, the balance of the debt, $525,000, was converted into 4,375,000 shares of common stock of the Company, valued at $0.12 per share. The Company recorded accrued interest on this loan of $145,632 as of March 31, 2022 and December 31, 2021, respectively. The accrued interest was not part of the conversion agreement and continues to be reflected as a liability. Line of credit from related parties The Company has two line of credit agreements with related parties. FinTekk AP, LLC is also the majority shareholder in the Company. DEVCAP Partners, LLC is owned by the same related party that owns Fintekk AP. See Note 6 for further disclosure. Consulting expense to related party (FinTekk AP, LLC) On January 1, 2014, the Company executed a three-year consulting agreement with DEVCAP Partners, LLC, (“DEVCAP”), whereby the Company agreed to pay approximately $ 7,500 22,500 310,335 287,835 Consulting expense to related party (Ray Gerrity) On January 1, 2014, the Company entered into a verbal consulting agreement with its Chief Executive Officer, Ray Gerrity, whereby the Company agreed to pay $2,500 per quarter for consulting services related to his duties as Chief Executive Officer. Mr. Gerrity resigned his position effective March 31, 2018. The amount due but unpaid was $32,500 at March 31, 2022 and December 31, 2021, respectively, and was included on the balance sheet as accounts payable - related parties. Consulting expense to related party (Robert Wilson) On January 1, 2014, the Company entered into a verbal consulting agreement with its Chief Financial Officer, Robert Wilson, whereby the Company agreed to pay $2,500 per quarter for consulting services related to his duties as Chief Financial Officer. Mr. Wilson resigned effective April 1, 2017. The amount due but unpaid was $ 17,500 Consulting expense to related party (Cody Ware) On January 1, 2019, the Company entered into a consulting agreement with its Chief Executive Officer, Cody Ware, whereby the Company agreed to pay $1,500 per month for consulting services related to his duties as Chief Executive Officer. Effective July 2020, the amount was increased to $4,500 per month. The Company recorded consulting fee expense of $ 13,500 54,000 43,500 Expense reimbursements The majority shareholder of the Company pays certain ongoing operating costs from personal funds and is periodically reimbursed. As of March 31, 2022 and December 31, 2021 the amounts due to the shareholder was $ 50,075 Other related party transactions On February 4, 2021, the Company purchased a 1983 Toyota truck from the majority shareholder for use in the business operations. |
STOCKHOLDERS_ DEFICIT
STOCKHOLDERS’ DEFICIT | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ DEFICIT | NOTE 9 – STOCKHOLDERS’ DEFICIT At the time of incorporation, the Company was authorized to issue 10,000 shares of common stock and 1,000 shares of preferred stock with a par value of $ 0.001 200,000,000 20,000,000 0.001 |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENTS | NOTE 10 – CONTINGENCIES AND COMMITMENTS The Company’s ability to collect on receivables and pay liabilities is connected to NASCAR race schedule. The 2020 and 2021 NASCAR schedules were severely disrupted by Covid, which caused delays in both collections and payments. Management believes the 2022 NASCAR schedule will not be disrupted. This will allow collections on receivables and payments on liabilities to be timely made. There are no other commitments or contingencies related to the assets and liabilities that are not disclosed above. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS The COVID-19 outbreak in 2020 had a significant impact on business in general. The NASCAR race schedule was severely disrupted. The Company’s operations are directly connected to the NASCAR schedule. Due to the disruption in NASCAR events, collection of revenues and payment of expenses was delayed in some cases. Revenues declined significantly in 2021 versus 2020. Expenses for 2021 were consistent with prior periods. The Company did not experience a significant detrimental change. Management believes the 2022 NASCAR race schedule will not be significantly impacted and should not have a material impact on future operations. Due to the level of risk this virus may have on the global economy, it is at least reasonably possible that it could have an impact on the operations of the Company in the near term that could materially impact the Company’s financials. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three months ended March 31, 2022 is not necessarily indicative of the final results that may be expected for the year ended December 31, 2022. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2021 filed with the SEC on April 15, 2022. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. 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. Accordingly, actual results could differ from those estimates. Such estimates include management’s assessments of the carrying value of certain assets, lease liabilities, useful lives of assets and related depreciation, and valuation of deferred tax assets. |
Cash equivalents | Cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At March 31, 2022 and December 31, 2021, the Company had no |
Fair value of financial instruments | Fair value of financial instruments The Company adopted the provisions of FASB Accounting Standards Codification (“ASC”) 820 (the “Fair Value Topic”) which defines fair value, establishes a framework for measuring fair value under U.S. GAAP, and expands disclosures about fair value measurements. The Fair Value Topic defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. It also establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels. The carrying amount of the Company’s financial assets and liabilities, such as cash, accounts payable, and accrued expenses, approximate their fair value because of the short maturity of those instruments. The Company’s loans payable approximates, the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at March 31, 2022 and December 31, 2021. The Company had no |
Property and equipment | Property and equipment Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method over the assets estimated useful life of three ( 3 5 7 |
Revenue recognition | Revenue recognition On January 1, 2018, the Company adopted the provisions of ASC 606 Revenue from Contracts with Customers, and related Accounting Standards Updates. This new revenue recognition standard has a five step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied. The impact of the Company’s initial application of ASC 606 did not have a material impact on its financial statements and disclosures. The primary source of revenue and performance obligation is from the rental of advertising space on custom designed Teardrop Trailers. The length of the rental agreements varies from one to thirty days. Customers pay in advance and revenue is recognized based on the number of days of each contract that have expired. For the three months ended March 31, 2022 and 2021, the Company recognized no In March 2018, the Company entered into a four-year agreement to lease equipment to an unrelated shareholder. In September 2018, the son of the shareholder became the Chief Financial Officer. At that point the shareholder is considered a related party. For the three months ended March 31, 2022 and 2021, related party lease income was $ 0 12,000 In January 2019, the Company entered into a two-year agreement to lease a vehicle to an unrelated third party. For the three months ended March 31, 2022 and 2021, recognized operating lease income of $ 0 1,275 On February 1, 2020, the Company leased a truck and trailer purchased November 2019 for $190,000 to a related party. The lease is classified as a direct financing lease. The cost of the vehicle and related accumulated depreciation has been reclassified to a lease receivable and is reflected on the condensed balance sheet as lease receivable – related party. Interest income is reflected on the condensed statement of operations. For the three months ended March 31, 2022 and 2021, the Company recognized interest income of $ 3,819 5,347 On September 1, 2020, the Company leased a vehicle for $69,000 to a related party. The lease is classified as a direct financing lease. The lease is reflected on the condensed balance sheet as lease receivable – related party. Interest income is reflected on the condensed statement of operations. For the three months ended March 31, 2022 and 2021, the Company recognized interest income of $ 1,553 1,676 In January 2015, the Company received $14,500 as a deposit for advertising space to be provided in the future. As of March 31, 2022 and December 31, 2021, the customer has not utilized the space and no revenue has been recognized as the performance obligations have not been satisfied. At the time the service is provided under the terms of the agreement, the Company will recognize the revenue. |
Net income (loss) per share | Net income (loss) per share The Company computes basic and diluted earnings per share amounts pursuant to ASC 260-10-45. Basic earnings per share is computed by dividing net income (loss) available to common shareholders, by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share is computed by dividing net income (loss) available to common shareholders by the diluted weighted average number of shares of common stock during the period The diluted weighted average number of common shares outstanding is the basic weighted number of shares adjusted as of the first day of the year for any potentially diluted debt or equity. There were no |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
LEASE RECEIVABLE _ RELATED PA_2
LEASE RECEIVABLE – RELATED PARTY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Truck And Trailer [Member] | |
Sale Leaseback Transaction [Line Items] | |
Schedule of lease receivable payments | Schedule of lease receivable payments 2022 (remainder of year) $ 45,027 2023 60,036 2024 5,003 Total 110,066 Less deferred interest (10,394 ) Less current portion (52,881 ) Long-term lease receivable $ 46,791 |
Vehicle [Member] | |
Sale Leaseback Transaction [Line Items] | |
Schedule of lease receivable payments | Schedule of lease receivable payments 2022 (remainder of year) $ 11,000 2023 12,000 2024 12,000 2025 8,000 Purchase option 37,000 Total 80,000 Less deferred interest (17,876 ) Less current portion (7,130 ) Long-term lease receivable $ 54,994 |
PROPERTY & EQUIPMENT (Tables)
PROPERTY & EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property and equipment: | |
Schedule of property and equipment | Schedule of property and equipment March 31, 2022 December 31, 2021 Property and equipment, purchased $ 129,114 $ 129,114 Less: accumulated depreciation (96,394 ) (90,088 ) Property and equipment, net $ 32,720 $ 39,026 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Cash Equivalents | $ 0 | $ 0 | |
Fair value of assets/liabilities | $ 0 | $ 0 | |
Potentially dilutive shares outstanding | 0 | 0 | |
Leased Vehicle [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Revenues from contracts with customers | $ 0 | $ 1,275 | |
Trailer Rental [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Equipment Lease [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Revenues from related parties | 0 | 12,000 | |
Truck And Trailer Lease [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Revenues from related parties | 3,819 | 5,347 | |
Vehicle [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Revenues from related parties | $ 1,553 | $ 1,676 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment estimated useful lives | 3 years | ||
Automobiles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment estimated useful lives | 5 years | ||
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment estimated useful lives | 7 years |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Retained Earnings, Appropriated | $ 3,082,634 | |
Net Cash Provided by (Used in) Operating Activities | 43,512 | $ 47,741 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 127,033 |
Schedule of lease receivable pa
Schedule of lease receivable payments (Details) | Mar. 31, 2022USD ($) |
Truck And Trailer [Member] | |
Sale Leaseback Transaction [Line Items] | |
2022 (remainder of year) | $ 45,027 |
2023 | 60,036 |
2024 | 5,003 |
Total | 110,066 |
Less deferred interest | (10,394) |
Less current portion | (52,881) |
Long-term lease receivable | 46,791 |
Vehicle [Member] | |
Sale Leaseback Transaction [Line Items] | |
2022 (remainder of year) | 11,000 |
2023 | 12,000 |
2024 | 12,000 |
Total | 80,000 |
Less deferred interest | (17,876) |
Less current portion | (7,130) |
Long-term lease receivable | 54,994 |
Total | 8,000 |
Purchase option | $ 37,000 |
LEASE RECEIVABLE _ RELATED PA_3
LEASE RECEIVABLE – RELATED PARTY (Details Narrative) - USD ($) | Nov. 12, 2019 | Mar. 31, 2022 | Mar. 31, 2021 |
Sale Leaseback Transaction [Line Items] | |||
Sales-type and Direct Financing Leases, Interest Income | $ 5,372 | $ 7,023 | |
Truck And Trailer [Member] | |||
Sale Leaseback Transaction [Line Items] | |||
Right to purchase asset | $ 22,800 | ||
Finance Lease, Weighted Average Discount Rate, Percent | 10.00% | ||
Direct Financing Lease, Net Investment in Lease, before Allowance for Credit Loss | $ 197,442 | ||
Sale Leaseback Transaction, Net Book Value | $ 180,500 | ||
Truck And Trailer [Member] | |||
Sale Leaseback Transaction [Line Items] | |||
[custom:LeaseReceivableTerm] | 48 months | ||
Lease payment | $ 5,003 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Property and equipment: | ||
Property and equipment, purchased | $ 129,114 | $ 129,114 |
Less: accumulated depreciation | (96,394) | (90,088) |
Property and equipment, net | $ 32,720 | $ 39,026 |
PROPERTY & EQUIPMENT (Details N
PROPERTY & EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property and equipment: | ||
Depreciation expense | $ 6,306 | $ 15,358 |
LINE OF CREDIT FROM RELATED P_2
LINE OF CREDIT FROM RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Credit line balance | $ 1,154,060 | $ 1,104,060 |
Accrued interest | 1,028 | 1,051 |
General Pacific Partners [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt converted, amount converted | $ 25,000 | |
Debt converted, shares issued | 500,000 | |
Conversion price | $ 0.05 | |
FinTekk AP, LLC [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum amount | $ 450,000 | |
Maturity date | Dec. 31, 2023 | |
Interest rate | 10.00% | |
Credit line balance | $ 202,129 | 227,129 |
Accrued interest | 11,750 | 6,307 |
General Pacific Partners [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum amount | $ 450,000 | |
Interest rate | 10.00% | |
Credit line balance | $ 0 | 0 |
Accrued interest | 4,732 | 4,732 |
Gemini Southern [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum amount | $ 950,000 | |
Interest rate | 10.00% | |
Accrued interest | $ 191,669 | 169,553 |
Gemini Southern [Member] | Gemini Southern [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit line balance | $ 951,931 | $ 876,931 |
OTHER RELATED PARTY TRANSACTI_2
OTHER RELATED PARTY TRANSACTIONS and RELATED PARTIES ACCOUNTS PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Consulting fees to related party | $ 43,500 | $ 36,000 | |
Accounts payable - related parties | 476,170 | $ 453,176 | |
Professional and Contract Services Expense | 5,000 | 22,500 | |
FinTekk AP, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Monthly payment | 7,500 | ||
Consulting fees to related party | 22,500 | 22,500 | |
Accounts payable - related parties | 310,335 | 287,835 | |
Wilson [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | 17,500 | 17,500 | |
Cody Ware [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | 54,000 | 43,500 | |
Professional and Contract Services Expense | 13,500 | $ 13,500 | |
Majority Shareholder [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable - related parties | $ 50,075 | $ 50,075 |
STOCKHOLDERS_ DEFICIT (Details
STOCKHOLDERS’ DEFICIT (Details Narrative) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |