Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 13, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FORGE INNOVATION DEVELOPMENT CORP. | |
Entity Central Index Key | 1,687,919 | |
Trading Symbol | cik0001687919 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 60,621,868 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash | $ 841,709 | $ 824,777 |
Note receivable | 210,000 | 200,000 |
Rent deposit | 13,953 | |
Total Current Assets | 1,065,662 | 1,024,777 |
NONCURRENT ASSET | ||
Note receivable | 110,000 | |
Property and equipment | 26,644 | |
Total Non-Current Assets | 26,644 | 110,000 |
TOTAL ASSETS | 1,092,306 | 1,134,777 |
CURRENT LIABILITIES: | ||
Accrued liability | 2,500 | |
Other payable | 2,805 | |
Accrued consulting expenses | 300,000 | 300,000 |
Total Current Liabilities | 305,305 | 300,000 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock ($.0001 par value, 50,000,000 shares authorized; no share issued and outstanding as of March 31, 2018 and December 31, 2017) | ||
Common stock ($.0001 par value, 200,000,000 shares authorized, 57,621,868 shares issued and outstanding as of March 31, 2018 and December 31, 2017) | 5,762 | 5,762 |
Additional Paid in Capital | 1,168,478 | 1,168,478 |
Accumulated Deficit | (387,239) | (339,463) |
Total Stockholders' Equity | 787,001 | 834,777 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,092,306 | $ 1,134,777 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, share issued | ||
Preferred stock, share outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares, issued | 57,621,868 | 57,621,868 |
Common stock, shares, outstanding | 57,621,868 | 57,621,868 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 9,000 | |
Cost of revenue | ||
Gross Profit | 9,000 | |
Operating Expenses | ||
Consulting Expenses | 18,000 | 90,000 |
Other Selling, General and Administrative Expenses | 40,326 | 5,892 |
Total Operating Expenses | 58,326 | 95,892 |
Other income | 1,550 | |
Net loss | $ (47,776) | $ (95,892) |
Net loss per common share, basic and diluted | $ 0 | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 57,621,868 | 57,353,425 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (47,776) | $ (95,892) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 90,000 | |
Depreciation expense | 472 | |
Change in operating assets and liabilities: | ||
Rent deposit | (13,953) | |
Prepaid expenses | (300) | |
Accrued liability | 2,500 | |
Other payable | 2,805 | |
Rent payable - related party | 1,000 | |
Net cash used in operating activities | (55,952) | (5,192) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Note receivable | 100,000 | |
Purchase of property and equipment | (27,116) | |
Net cash used in investing activities | 72,884 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 260,098 | |
Net cash provided by financing activities | 260,098 | |
Net Increase in Cash | 16,932 | 254,906 |
Cash at beginning of period: | 824,777 | 655,170 |
Cash at end of period: | 841,709 | 910,076 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFOR | ||
Interest paid | ||
Income taxes paid |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2018 | |
Organization and Description of Business [Abstract] | |
Organization and Description of Business | Note 1 - Organization and Description of Business Forge Innovation Development Corp., or the “Company”, was initially incorporated in the State of Nevada on January 15, 2016 under the name of You-Go enterprises, LLC (the “Company Predecessor”). On November 3, 2016, the Company filed an amendment to its Articles of Incorporation in the State of Nevada to change the Company’s name to Forge Innovation Development Corp. Our current principle executive office is located at 17800 Castleton Street, Suite 583 City of Industry, CA 91748. Tel: 626-986-4566. The Company’s main business will be focus on real estate development, land purchasing and selling and property management. Development Stage Company The Company is considered to be in the development stage as defined in Statement of Financial Accounting Standards (SFAS) ASC 915, “Development Stage Entities”. The Company has devoted substantially all of its efforts to establishing a new business and for which either of the following conditions exists: planned principal operations have not commenced; or the planned principal operations have commenced, but there has been no significant revenue there from. The Company’s first sales activity was in March 2017 by the sale of real estate in Desert Springs, California. There were revenue from real estate management services during the three months ended March 31, 2018. There is no assurance of any future revenues. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim financial statements of 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, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. 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 period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. Property and equipment Property and equipment are carried at cost and are depreciated on a straight-line basis (after taking into account their respective estimated residual value) over 5 years, the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. During the three months ended March 31, 2018 and 2017, the depreciation expense were $472and $0, respectively. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (ASC 606)”. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The new standard was effective for us beginning January 1, 2018, with early adoption permitted. The Company elected to adopt the new standard effective January 1, 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company elected adopting the standard using the modified retrospective method. The Company has identified its revenue streams and assessed each for the impacts. (See Note 3 for additional information) In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessees may not apply a full retrospective transition approach. The standard will be effective for us beginning January 1, 2019, with early adoption permitted. We plan to adopt the standard effective January 1, 2019. We anticipate this standard will have a material impact on our balance sheets. However, we do not expect adoption will have a material impact on our income statements. While we are continuing to assess potential impacts of the standard, we currently expect the most significant impact will be the recognition of ROU assets and lease liabilities for operating leases. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 3 - Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective approach, which applies the new standard to contracts that are not completed as of the date of adoption. Under the new standard, revenue is recognized upon transfer of control of promised goods and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods and services. The Company concluded that the adoption of the new standard requires an adjustment to increase the opening balance of retained earnings in an amount of $ 26,667 since control of real estate was transferred and profit on a real estate sale should be recognized under the new standard. Revenue streams that are scoped into ASU 2014-09 include: Property management services: The Company deals directly with prospects and tenants for the owners of properties, which mainly includes marketing property, collecting rent, handling maintenance, repairing issues and responding to tenant complaints. The Company recognizes revenue as earned on a monthly basis and has concluded this is appropriate under the new standard. Real estate sales: The Company accounts for the sale of real estate assets and any related gain recognition in accordance with the accounting guidance applicable to sales of real estate, which establishes standards for recognition of profit on all real estate sales transactions, other than retail land sales. The Company recognizes the sale, and associated gain or loss from the disposition, provided that the earnings process is complete, and the Company does not have significant continuing involvement. Subsequent to the adoption of the new standard, the Company may recognize a gain on a real estate disposition that previously did not qualify as a sale or for full profit recognition due to the timing of the transfer of control. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Note 4 - Income Taxes The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the period presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. As of March 31, 2018 and 2017, the Company has incurred a net loss of $47,776 and $95,892 which resulted in a net operating loss for income tax purposes. NOLs begin expiring in 2036. The loss results in a deferred tax asset of approximately $23,920 and $3,954 at the effective tax rate of 21% and 34% respectively. The deferred tax asset has been off-set by an equal valuation allowance. |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Mar. 31, 2018 | |
Concentration of Risk [Abstract] | |
Concentration of Risk | Note 5 - Concentration of Risk The Company maintains cash in one account within one local commercial bank located in Southern California. The standard insurance amount is $250,000 per depositors under the FDIC’s general deposit insurance rules. At March 31, 2018, uninsured cash balances in any domestic U.S. financial institution is $595,451. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6 - Related Party Transactions On February 1, 2017, the Company entered into a lease for office space (the “Office Lease”) with Glory Investment International Inc. (“Glory Investment”) whose CEO is an immediate family of the Company. Pursuant to the Office Lease, the Company subleased 200 square feet office from Glory Investment, and the monthly rent of $500 is due within first five business days of each month. The term of the Office Lease is renewable from year-to-year, and was terminated on March 31, 2018. We believe that the rent is at or below market for the space we are occupying. For the three months ended and as of March 31, 2018 and 2017, rent expense was $250 and $1,000. |
Notes Receivable
Notes Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Notes Receivable [Abstract] | |
Notes Receivable | Note 7 -Notes Receivable On March 17, 2017, the Company entered into a Land Transaction Agreement with Steven Zhi Qin, a third party individual. Pursuant to the agreement, the Company sold the undeveloped land located in Desert Hot Spring with value of $283,333, to Steven Zhi Qin in exchange for a Promissory Note in the amount of $310,000. The Promissory Note is secured by a Deed of Trust to Chicago Title Company, a California corporation and an independent institution insuring the Company’s collection right, and was due on March 17, 2018, with interest at the rate of 2% per annum, payable in monthly installment of interest only, in the amount of $517. The Promissory Note also applies to Steven Zhi Qin’s personal property located at 1715 East Cortez Street, West Covina, CA 91791 as additional collateral, of which a lien will be recorded against said property. On March 6, 2018, the Company reached an agreement with Steven Zhi Qin, pursuant to which the Company agreed and approved the amendment of the Promissory Note to extend maturity date to March 17, 2019. Subsequently, the Company received first payment of $100,000 on March 17, 2018, and the remaining $100,000 will be due on September 17, 2018 and $110,000 on March 17, 2019, respectively. For the three months ended March 31, 2018 and 2017, total interest income was $1,550 and $0, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 8 - Commitments and Contingencies The Company follows ASC 450-20, Loss Contingencies, Advisory Agreement On November 05, 2016, the Company entered into a Consulting Agreement with Speedlight Consulting Services Inc. (the “Consultant”), pursuant to which the Company agrees to compensate the Consultant 3,000,000 shares of Company’s 144 restricted stock when the Company been quoted on OTC Market. As agreed by Company and Consultant, the compensation will be followed as below schedules: a. 2,000,000 shares shall be issued to the Consultant on the date of service completion ( quoted on OTC Market b. 1,000,000 shares shall be issued to the Consultant on the date of service completion ( quoted on OTC Market On September 25, 2017, the Company entered into another Consulting Agreement (the “Second Agreement”) with the Consultant, pursuant to which the Company agrees to compensate the Consultant $6,000 monthly effective from October 1, 2017 in exchange for the Consultant’s investor relationship service. For the three months ended and as of March 31, 2018 and 2017, the consulting expense of $18,000 and $90,000 were recognized, respectively. As of March 31, 2018 and December 31, 2017, accrued consulting expenses were $300,000 and $300,000, respectively. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 9 - Subsequent Event On May 1, 2018, the Company was quoted on OTC Market with trading symbol FGNV. According to the Consulting Agreement with Speedlight Consulting Services Inc. dated on November 05, 2016, the Company issued 3,000,000 shares to Speedlight Consulting Services Inc. on May 9, 2018. (See Note 8 for additional information). The Company has evaluated all other subsequent events through the date these unaudited condensed financial statements were issued and determine that there were no other subsequent events or transactions that require recognition or disclosures in the unaudited condensed financial statements. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim financial statements of 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, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. 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 period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. |
Property and equipment | Property and equipment Property and equipment are carried at cost and are depreciated on a straight-line basis (after taking into account their respective estimated residual value) over 5 years, the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. During the three months ended March 31, 2018 and 2017, the depreciation expense were $472and $0, respectively. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (ASC 606)”. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The new standard was effective for us beginning January 1, 2018, with early adoption permitted. The Company elected to adopt the new standard effective January 1, 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company elected adopting the standard using the modified retrospective method. The Company has identified its revenue streams and assessed each for the impacts. (See Note 3 for additional information) In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessees may not apply a full retrospective transition approach. The standard will be effective for us beginning January 1, 2019, with early adoption permitted. We plan to adopt the standard effective January 1, 2019. We anticipate this standard will have a material impact on our balance sheets. However, we do not expect adoption will have a material impact on our income statements. While we are continuing to assess potential impacts of the standard, we currently expect the most significant impact will be the recognition of ROU assets and lease liabilities for operating leases. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Summary of Significant Accounting Policies (Textual) | ||
Depreciation expense | $ 472 |
Revenue Recognition (Details)
Revenue Recognition (Details) | Mar. 31, 2018USD ($) |
Revenue Recognition [Textual] | |
Adjustment to increase the opening balance of retained earnings | $ 26,667 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes (Textual) | ||
Net loss | $ (47,776) | $ (95,892) |
Expiration date for tax operating loss carryforwards | Dec. 31, 2036 | |
Deferred tax asset | $ 23,920 | $ 3,954 |
Deferred tax asset effective statutory rate | 21.00% | 34.00% |
Concentration of Risk (Details)
Concentration of Risk (Details) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Concentration of Risk (Textual) | |
FDIC's standard insurance amount | $ 250,000 |
Uninsured cash balances | $ 595,451 |
Related Party Transactions (Det
Related Party Transactions (Details) | Feb. 01, 2017USD ($)ft² | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Related Party Transactions (Textual) | |||
Rent expense | $ 250 | $ 1,000 | |
Chief Executive Officer [Member] | |||
Related Party Transactions (Textual) | |||
Subleased area | ft² | 200 | ||
Monthly rent payments | $ 500 | ||
Lease renewable term | The term of the Office Lease is renewable from year-to-year, and was terminated on March 31, 2018. |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Mar. 06, 2018 | Mar. 17, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Notes Receivable (Textual) | ||||
Promissory note due date | Mar. 17, 2019 | |||
Total interest income | $ 1,550 | $ 0 | ||
Promissory Note payment, descriprtion | The Company received first payment of $100,000 on March 17, 2018, and the remaining $100,000 will be due on September 17, 2018 and $110,000 on March 17, 2019, respectively. | |||
Land Transaction Agreement [Member] | Steven Zhi Qin [Member] | ||||
Notes Receivable (Textual) | ||||
Sold undeveloped land located in Desert Hot Spring | $ 283,333 | |||
Promissory note amount | $ 310,000 | |||
Promissory note due date | Mar. 17, 2018 | |||
Promissory note interest rate | 2.00% | |||
Promissory note monthly installment of interest amount | $ 517 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Sep. 25, 2017 | Nov. 05, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Commitments and Contingencies (Textual) | |||||
Accrued consulting expense recognized | $ 300,000 | $ 300,000 | |||
Monthly compensation | $ 6,000 | ||||
Consulting Expenses | $ 18,000 | $ 90,000 | |||
Advisory Agreement [Member] | Consultant [Member] | |||||
Commitments and Contingencies (Textual) | |||||
Consultant shares | 3,000,000 | ||||
Restricted stock | 144 | ||||
Consulting agreement, description | a. 2,000,000 shares shall be issued to the Consultant on the date of service completion ( quoted on OTC Market b. 1,000,000 shares shall be issued to the Consultant on the date of service completion ( quoted on OTC Market |
Subsequent Event (Details)
Subsequent Event (Details) | 1 Months Ended |
Nov. 05, 2016shares | |
Speedlight Consulting Services Inc. | Advisory Agreement [Member] | |
Subsequent Event (Textual) | |
Company issued shares to consulting services | 3,000,000 |