Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2016 | Nov. 14, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | HEAVENSTONE CORP | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Trading Symbol | hvsc | |
Amendment Flag | false | |
Entity Central Index Key | 1,624,025 | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 71,159,423 | |
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 | 2,017 | |
Document Fiscal Period Focus | Q1 |
BALANCE SHEET
BALANCE SHEET - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 |
Current assets | ||
Cash and cash equivalents | $ 128,664 | $ 52,592 |
Prepaid and other current assets | 179,391 | 156,340 |
Total current assets | 308,055 | 208,932 |
Fixed assets | ||
Land and land development cost | 4,232,521 | 3,888,846 |
Office furniture and equipment | 14,047 | 14,047 |
Accumulated depreciation | (5,150) | (4,448) |
Total fixed assets | 4,241,418 | 3,898,445 |
Total assets | 4,549,473 | 4,107,377 |
Current liabilities | ||
Accounts payable | 42,920 | 155,538 |
Interest payable | 225,412 | 185,509 |
Short-term notes payable | 15,673 | 38,846 |
Short-term related party debt | 2,100,000 | 2,100,000 |
Total current liabilities | 2,384,005 | 2,479,893 |
Non-current liabilities | ||
Long-term related party debt | 1,169,975 | 629,975 |
Long-term notes payable | 1,050,000 | 1,050,000 |
Total non-current liabilities | 2,219,975 | 1,679,975 |
Total liabilities | 4,603,980 | 4,159,868 |
Stockholders' deficit | ||
Preferred stock, $.0001 par value: 50,000,000 shares authorized; zero and zero shares issued and outstanding at September 30, 2016, and June 30, 2016, respectively | 0 | |
Common stock, $.0001 par value: 200,000,000 shares authorized; 71,159,423 shares issued and outstanding at September 30, 2016, and June 30, 2016, respectively | 7,116 | 7,116 |
Additional paid-in capital | 394,386 | 394,386 |
Accumulated deficit | (456,009) | (453,993) |
Total stockholders' deficit | (54,507) | (52,491) |
Total liabilities and stockholders' deficit | $ 4,549,473 | $ 4,107,377 |
BALANCE SHEET PARENTHETICALS
BALANCE SHEET PARENTHETICALS - $ / shares | Sep. 30, 2016 | Jun. 30, 2016 |
Parentheticals | ||
Preferred Stock, par value | $ 0.0001 | $ 0.0001 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.0001 | $ 0.0001 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 71,159,423 | 71,159,423 |
Common Stock, shares outstanding | 71,159,423 | 71,159,423 |
STATEMENT OF OPERATIONS
STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||
Operating expenses (Income) | $ (6,058) | $ 32,241 |
Operating Income (loss) | 6,058 | (32,241) |
Interest expense | (8,074) | (35,625) |
Net loss | $ (2,016) | $ (67,866) |
Loss per share: Basic and diluted | $ 0 | $ 0 |
Weighted average number of shares outstanding:Basic and diluted | 71,159,423 | 71,159,423 |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS - USD ($) | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,016) | $ (67,866) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation expense | 702 | 702 |
Changes in operating assets and liabilities: | ||
Prepaid and other current assets | (23,051) | (5,000) |
Accounts payable | (112,618) | (11,092) |
Interest payable | (2,517) | 26,250 |
Net cash used in operating activities | (139,500) | (57,006) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid for land development costs | (301,255) | (42,593) |
Net cash used in investing activities | (301,255) | (42,593) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings on loans from related parties | 540,000 | |
Repayments on loans to third parties | (23,173) | |
Net cash provided by financing activities | 516,827 | |
NET INCREASE (DECREASE) IN CASH | 76,072 | (99,599) |
Cash, beginning of period | 52,592 | 271,101 |
Cash, end of period | 128,664 | 171,502 |
Non-cash investing the financing activities | ||
Capitalized interest to land development cost | 42,420 | |
Supplemental disclosure of cash flow information | ||
Cash paid for income taxes | 0 | |
Cash paid for interest | $ 10,050 | $ 9,375 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2016 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION The accompanying unaudited interim financial statements of Heavenstone Corp. ("Heavenstone" or the "Company"), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (the "SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended June 30, 2016, filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the Financial Statements which substantially duplicate the disclosure contained in the audited financial statements for fiscal 2016 as reported in the Company's Annual Report on Form 10-K have been omitted. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Sep. 30, 2016 | |
GOING CONCERN | |
GOING CONCERN | NOTE 2. GOING CONCERN These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. For the three months ended September 30, 2016, the Company had an accumulated deficit of $456,009 and revenue of $0. The continuation of the Company as a going concern is dependent upon the company's continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company intends to fund operations through equity and debt financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending June 30, 2017. |
LAND AND LAND DEVELOPMENT COSTS
LAND AND LAND DEVELOPMENT COSTS | 3 Months Ended |
Sep. 30, 2016 | |
LAND AND LAND DEVELOPMENT COSTS | |
LAND AND LAND DEVELOPMENT COSTS | NOTE 3. LAND AND LAND DEVELOPMENT COSTS Land and land development costs are carried at cost. Land development costs capitalized include costs associated with the development of the purchased land, including inspection fees and engineering fees. For the three months ended September 30, 2016, the Company had incurred $301,255 in land development costs. Also, the Company capitalized the interest costs of $42,420 incurred for the real estate projects under ASC 835-20, during the three months ended September 30, 2016. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2016 | |
Related Party Disclosures: | |
Related Party Transactions Disclosure | NOTE 4. RELATED-PARTY TRANSACTIONS Loans from Officer's Family During the period ended September 30, 2016, the Company obtained two separate loans from the family of one of its officers, as follows: July 2016 $170,000 August 2016 $100,000 In addition, the total outstanding balance to the family of one of its officer as of June 30, 2016 is $479,975. This balance remained unpaid and outstanding as of September 30, 2016. Loan from Related Party During the period ended September 30, 2016, the Company obtained a single loan from a related party, as follows: September 2016 $270,000 Loans from Majority Shareholder The total outstanding balance to the majority shareholder as of June 30, 2016, is $2,250,000. This balance remained unpaid and outstanding as of September 30, 2016. As of September 30 and June 30, 2016, the total outstanding short-term related party debt was $2,100,000. As of September 30 and June 30, 2016, the total outstanding long-term related party debt was $1,169,975 and $629,975, respectively. |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Sep. 30, 2016 | |
NOTES PAYABLE | |
NOTES PAYABLE | NOTE 5. NOTES PAYABLE In February 2016, the Company delivered a promissory note, face amount $76,587, in payment of certain insurance premiums associated with an officers' and directors' insurance policy obtained by the Company. Unpaid principal on such loan bears interest at 6.95% per annum. Repayment of this promissory note is to be made in ten equal monthly payments of $7,904.80, beginning in March 2016. During the three months ended September 30, 2016, the Company repaid a total of $23,173 in principal and $542 in interest. The outstanding principal as of September 30 and June 30, 2016, are $15,673 and $38,846, respectively. As of September 30 and June 30, 2016, the total outstanding long-term notes payable was $1,050,000. |
GOING CONCERN (DETAILS)
GOING CONCERN (DETAILS) | Sep. 30, 2016USD ($) |
GOING CONCERN DETAILS | |
Accumulated deficit | $ 456,009 |
Company has an revenue | $ 0 |
LAND AND LAND DEVELOPMENT COS12
LAND AND LAND DEVELOPMENT COSTS (DETAILS) | 3 Months Ended |
Sep. 30, 2016USD ($) | |
LAND AND LAND DEVELOPMENT COSTS DETAILS | |
Company had land and land development costs | $ 301,255 |
Compamy capitalized the interest costs for the real estate projects | $ 42,420 |
LOAN FROM MAJORITY SHAREHOLDER
LOAN FROM MAJORITY SHAREHOLDER (DETAILS) - USD ($) | Sep. 30, 2016 | Aug. 31, 2016 | Jul. 31, 2016 | Jun. 30, 2016 |
LOAN FROM MAJORITY SHAREHOLDER DETAILS | ||||
Company obtained this loan pursuant to a loan agreement and delivered a promissory note, face amount | $ 270,000 | $ 100,000 | $ 170,000 | |
Unpaid principal on such loan bears interest per annum | 5.00% | 5.00% | 5.00% | |
Total outstanding balance to the family | $ 479,975 | |||
Total outstanding balance to the majority shareholder | 2,250,000 | |||
Total outstanding short term related party debt | $ 2,100,000 | 2,100,000 | ||
Total outstanding long-term related party debt | $ 1,169,975 | $ 629,975 |
NOTES PAYABLE (DETAILS)
NOTES PAYABLE (DETAILS) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 | Feb. 29, 2016 |
NOTES PAYABLE DETAILS | |||
Company delivered a promissory note, face amount | $ 76,587 | ||
Unpaid principal on such loan bears interest per annum | 6.95% | ||
Repayment of this promissory note is to be made in ten equal monthly payments | $ 7,904.80 | ||
Company repaid a total in principal | $ 23,173 | ||
Company repaid a total in principal in interest | 542 | ||
Outstanding principal | 15,673 | $ 38,846 | |
Total outstanding long-term notes payable | $ 1,050,000 | $ 1,050,000 |