Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 26, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FORGE INNOVATION DEVELOPMENT CORP. | ||
Entity Central Index Key | 0001687919 | ||
Trading Symbol | FGNV | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 45,621,868 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash | $ 653,142 | $ 824,777 |
Note receivable | 110,000 | 200,000 |
Account receivable | 3,000 | |
Total Current Assets | 766,142 | 1,024,777 |
NONCURRENT ASSET | ||
Note receivable | 110,000 | |
Other assets | 18,238 | |
Property and equipment, net | 29,217 | |
Total Noncurrent Asset | 47,455 | 110,000 |
TOTAL ASSETS | 813,597 | 1,134,777 |
CURRENT LIABILITIES: | ||
Accrued consulting expenses | 300,000 | |
Deferred profit | 26,667 | |
Other current liabilities | 4,873 | |
Total Current Liabilities | 4,873 | 326,667 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock ($.0001 par value, 50,000,000 shares authorized; no share issued and outstanding as of December 31, 2018 and 2017) | ||
Common stock ($.0001 par value, 200,000,000 shares authorized, 45,621,868 and 57,621,868 shares issued and outstanding as of December 31, 2018 and 2017) | 4,562 | 5,762 |
Additional Paid in Capital | 1,469,678 | 1,168,478 |
Accumulated Deficit | (665,516) | (366,130) |
Total Stockholders' Equity | 808,724 | 808,110 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 813,597 | $ 1,134,777 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares, issued | 45,621,868 | 57,621,868 |
Common stock, shares, outstanding | 45,621,868 | 57,621,868 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||
Revenue | $ 36,000 | |
Revenue - related party | 15,000 | |
Total Revenues | 36,000 | 15,000 |
Cost of Revenues: | ||
Cost of revenue | ||
Total Cost of Revenues | ||
Gross Profit | 36,000 | 15,000 |
Operating Expenses | ||
Consulting Expenses | 122,099 | 265,250 |
Other Selling, General and Administrative Expenses | 243,424 | 58,541 |
Total Operating Expenses | 365,523 | 323,791 |
Other income | ||
Interest income | 4,270 | 4,650 |
Total Other Income | 4,270 | 4,650 |
Net loss before tax | (325,253) | (304,141) |
Income tax | 800 | |
Net loss | $ (326,053) | $ (304,141) |
Net loss per common share, basic and diluted | $ (0.01) | $ (0.01) |
Weighted average number of common shares outstanding, basic and diluted | 51,786,703 | 57,653,758 |
Statement of Changes in Stockho
Statement of Changes in Stockholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2016 | $ 5,647 | $ 938,495 | $ (61,989) | $ 882,153 |
Balances, shares at Dec. 31, 2016 | 56,471,378 | |||
Common stock issued for cash | $ 130 | 259,968 | 0 | 260,098 |
Common stock issued for cash, shares | 1,300,490 | |||
Cancellation of common stock | $ (15) | (29,985) | (30,000) | |
Cancellation of common stock, shares | (150,000) | |||
Net loss | (304,141) | (304,141) | ||
Balance at Dec. 31, 2017 | $ 5,762 | 1,168,478 | (366,130) | 808,110 |
Balance, shares at Dec. 31, 2017 | 57,621,868 | |||
Implementation of ASU2014-09 (Note 2) | 26,667 | 26,667 | ||
Common stock issued for service | $ 300 | 299,700 | 300,000 | |
Common stock issued for service, shares | 3,000,000 | |||
Cancellation of common stock | $ (1,500) | 1,500 | ||
Cancellation of common stock, shares | (15,000,000) | |||
Net loss | (326,053) | (326,053) | ||
Balance at Dec. 31, 2018 | $ 4,562 | $ 1,469,678 | $ (665,516) | $ 808,724 |
Balance, shares at Dec. 31, 2018 | 45,621,868 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (326,053) | $ (304,141) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 5,607 | |
Change in operating assets and liabilities: | ||
Rent deposit | (13,953) | |
Account receivable | (3,000) | |
Other assets | (4,285) | |
Accrued liability | 4,873 | |
Accrued consulting expenses | 243,750 | |
Net cash used in operating activities | (336,811) | (60,391) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Note receivable | 200,000 | |
Purchase of property and equipment | (34,824) | |
Net cash used in investing activities | 165,176 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 260,098 | |
Cash return to shareholder for cancellation of common stock | (30,000) | |
Repayment to shareholder | (100) | |
Net cash provided by financing activities | 229,998 | |
Net Increase in Cash | (171,635) | 169,607 |
Cash at beginning of period: | 824,777 | 655,170 |
Cash at end of period: | 653,142 | 824,777 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFOR | ||
Interest paid | ||
Income taxes paid | 800 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW FOR NON-CASH TRANSACTION: | ||
Common stock issued to settle with the accrued consulting expenses | $ 300,000 |
Statements of Cash Flows (Paren
Statements of Cash Flows (Parenthetical) | Mar. 17, 2017USD ($) |
Statement of Cash Flows [Abstract] | |
Promissory note receivable | $ 310,000 |
Sales of undeveloped land | $ 283,333 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [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. The Company’s common stock is currently traded on OTCQB under the symbol “FGNV”. 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 was revenue from real estate management services for the year ended December 31, 2018 but there is no assurance of any future revenues. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. Cash The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash at December 31, 2018 and 2017 were $653,142 and $824,777, representing cash deposited in bank. Real Estate Investment Real Estate Investment is recorded at cost. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. All costs related to the improvement or replacement of real estate properties are capitalized. Additions, renovations and improvements that enhance and/or extend the useful life of a property are also capitalized. Expenditures for ordinary maintenance, repairs and improvements that do not materially prolong the normal useful life of an asset are charged to operations as incurred. Income Taxes The Company accounts for income taxes under ASC 740, “ Income Taxes Basic Earnings (Loss) Per Share The Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, Earnings per Share The Company does not have any potentially dilutive instruments as of December 31, 2018 and 2017 and, thus, anti-dilution issues are not applicable. Fair Value of Financial Instruments The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. ASC 820, Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2018 and 2017. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash and cash equivalent. Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the statement of operations on a straight-line basis over the lease period. Related Parties The Company follows ASC 850, Related Party Disclosures, Share-based Compensation ASC 718, “ Compensation - Stock Compensation The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, “ Equity - Based Payments to Non-Employees. The company had no stock-based compensation plans as of December 31, 2018 and 2017. Property and equipment Property and equipment are carried at cost. Equipment 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 years ended December 31, 2018 and 2017, the depreciation expense were $5,607 and $nil, respectively. Impairment of long-lived assets Long-lived assets are tested for impairment in accordance with ASC 360-10-45 “Impairment or Disposal of Long-Lived Assets”. The Company periodically evaluates potential impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No impairment of long-lived assets was recognized for the years ended December 31, 2018 and 2017. 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. Recently Issued Accounting Pronouncements Not Yet Adopted 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 3 - 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. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. As of December 31, 2018 and 2017, the Company has incurred a net loss of $326,053 and $304,141 which resulted in a net operating loss for income tax purposes. NOLs begin expiring in 2036. The deferred tax asset has been off-set by an equal valuation allowance. December 31, 2018 December 31, 2017 Deferred tax asset: Net operating loss at statutory rates $ 189,699 76,887 Depreciation expense (7,943 ) - Accrued consulting expense - (64,179 ) Total deferred tax asset 181,756 12,708 Valuation allowance (181,756 ) (12,708 ) Net deferred tax asset $ - - The reconciliation of the effective income tax rate to the federal statutory rate is as follows: December 31, 2018 December 31, 2017 Federal income tax rate 21.0 % 21.0 % Increase in valuation allowance (21.0 )% (21.0 )% Effective income tax rate 0.0 % 0.0 % The Company has evaluated and concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company may from time to time be assessed interest or penalties by major tax jurisdictions. In the event it receives an assessment for interest and/or penalties, it will be classified in the financial statements as tax expense. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Note 4 - 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 December 31, 2018 and 2017, uninsured cash balances in any domestic U.S. financial institution were $415,490 and $572,937, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5 - Related Party Transactions On August 1, 2017, the Company entered into an agreement with Bloomage Beverly Hills Investment Inc., (“Bloomage”) whose secretary is an immediate family member of the Company’s CEO. Pursuant to the agreement, the Company provided property management services for Bloomage Beverly Hills Investment Inc. for the period from August 1, 2017 to December 31, 2017, in exchange for the compensation of $3,000 per month. On October 23, 2017, the immediate family member of the Company’s CEO resigned as the secretary of Bloomage. During the year ended December 31, 2018 and 2017, the Company recognized service revenue—related party in the amount of $nil and $15,000, respectively. 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 years ended December 31, 2018 and 2017, rent expense from our related party was $250 and $5,500. |
Shareholder Equity
Shareholder Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholder Equity | Note 6 - Shareholder Equity In January 2017, the Company issued 700,340 shares of its $0.0001 par value common stock at the price of $0.2 per share to four investors for $140,068 in cash. In February 2017, the Company issued 600,150 shares of its $0.0001 par value common stock at the price of $0.2 per share to two investors for $120,030 in cash. In November 2017, the Company cancelled 150,000 shares and returned $30,000 to a shareholder. 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 to settle with the accrued consulting expenses. In order to meet the new OTCQB standards regarding the public float which became effective on May 20, 2018, the Registrant’s CEO and principal shareholder returned 15,000,000 shares of the Registrant’s common stock (the “Shares”) to the Registrant on June 29, 2018. One of the new standards was that every company trading on the OTCQB that has a market value of less than $2 million must have a freely traded “Public Float” of at least 10% of the company’s total issued and outstanding common stock. The Registrant does not have a market value of $2 million and prior to the return of the shares, its public float was approximately 8%. After the return of the Shares, the Registrant’s public float increased to approximately 10.5%. The 15,000,000 shares were delivered to the Registrant’s Transfer Agent with instructions to remove them from issued and outstanding status and add them to the authorized but not issued status. The above action was completed on June 29, 2018. |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [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 is 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 payment of $100,000 and $100,000 on March 12 and October 31, 2018, respectively. On March 12, 2019, the Company reached another agreement with Steven Zhi Qin, pursuant to which the Company agreed and approved amendment of the Promissory Note to extend maturity date to June 30, 2019, and the remaining $110,000 will be due on June 30, 2019. For the years ended 2018 and 2017, total interest income was $4,270 and $4,650, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 - Commitments and Contingencies The Company follows ASC 450-20, Loss Contingencies, Operating lease The Company has operating leases for its offices. Rental expenses for the years ended December 31, 2018 and 2017 were $59,958 and $5,500, respectively. At December 31, 2018, total future minimum annual lease payments under operating leases were as follows, by years: Twelve months ending December 31, 2019 $ 61,920 Twelve months ending December 31, 2020 64,392 Twelve months ending December 31, 2021 66,972 Twelve months ending December 31, 2022 - Twelve months ending December 31, 2023 - Total $ 193,284 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 9 - Subsequent Event On March 12, 2019, the Company reached an agreement with Steven Zhi Qin, pursuant to which the Company agreed and approved amendment of the Promissory Note of land transaction to extend maturity date to June 30, 2019. and the remaining $110,000 will be due on June 30, 2019. The Company has evaluated all other subsequent events through the date these financial statements were issued and determine that there were no other subsequent events or transactions that require recognition or disclosures in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. |
Cash | Cash The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash at December 31, 2018 and 2017 were $653,142 and $824,777, representing cash deposited in bank. |
Real Estate Investment | Real Estate Investment Real Estate Investment is recorded at cost. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. All costs related to the improvement or replacement of real estate properties are capitalized. Additions, renovations and improvements that enhance and/or extend the useful life of a property are also capitalized. Expenditures for ordinary maintenance, repairs and improvements that do not materially prolong the normal useful life of an asset are charged to operations as incurred. |
Income Taxes | Income Taxes The Company accounts for income taxes under ASC 740, “ Income Taxes |
Basic Earnings (Loss) Per Share | Basic Earnings (Loss) Per Share The Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, Earnings per Share The Company does not have any potentially dilutive instruments as of December 31, 2018 and 2017 and, thus, anti-dilution issues are not applicable. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. ASC 820, Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2018 and 2017. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash and cash equivalent. |
Operating Leases | Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the statement of operations on a straight-line basis over the lease period. |
Related Parties | Related Parties The Company follows ASC 850, Related Party Disclosures, |
Share-based Compensation | Share-based Compensation ASC 718, “ Compensation - Stock Compensation The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, “ Equity - Based Payments to Non-Employees. The company had no stock-based compensation plans as of December 31, 2018 and 2017. |
Property and equipment | Property and equipment Property and equipment are carried at cost. Equipment 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 years ended December 31, 2018 and 2017, the depreciation expense were $5,607 and $nil, respectively. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets are tested for impairment in accordance with ASC 360-10-45 “Impairment or Disposal of Long-Lived Assets”. The Company periodically evaluates potential impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. No impairment of long-lived assets was recognized for the years ended December 31, 2018 and 2017. |
Revenue Recognition | 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. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax asset off-set valuation allowance | December 31, 2018 December 31, 2017 Deferred tax asset: Net operating loss at statutory rates $ 189,699 76,887 Depreciation expense (7,943 ) - Accrued consulting expense - (64,179 ) Total deferred tax asset 181,756 12,708 Valuation allowance (181,756 ) (12,708 ) Net deferred tax asset $ - - |
Schedule of reconciliation of effective income tax rate to federal statutory rate | December 31, 2018 December 31, 2017 Federal income tax rate 21.0 % 21.0 % Increase in valuation allowance (21.0 )% (21.0 )% Effective income tax rate 0.0 % 0.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum annual lease payments under operating leases | Twelve months ending December 31, 2019 $ 61,920 Twelve months ending December 31, 2020 64,392 Twelve months ending December 31, 2021 66,972 Twelve months ending December 31, 2022 - Twelve months ending December 31, 2023 - Total $ 193,284 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies (Textual) | |||
Estimated useful lives, property and equipment, description | Over 5 years. | ||
Depreciation expense | $ 5,607 | ||
Cash | 653,142 | $ 824,777 | $ 655,170 |
Real estate transferred value | $ 26,667 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax asset: | ||
Net operating loss at statutory rates | $ 189,699 | $ 76,887 |
Depreciation expense | (7,943) | |
Accrued consulting expense | (64,179) | |
Total deferred tax asset | 181,756 | 12,708 |
Valuation allowance | (181,756) | (12,708) |
Net deferred tax asset |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21.00% | 21.00% |
Increase in valuation allowance | (21.00%) | (21.00%) |
Effective income tax rate | 0.00% | 0.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes (Textual) | ||
Net loss | $ (326,053) | $ (304,141) |
Expiration date for tax operating loss carryforwards | Dec. 31, 2036 |
Concentration of Risk (Details)
Concentration of Risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration of Risk (Textual) | ||
FDIC's standard insurance amount | $ 250,000 | |
Uninsured cash balances | $ 415,490 | $ 572,937 |
Related Party Transactions (Det
Related Party Transactions (Details) | Feb. 01, 2017USD ($)ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Related Party Transactions (Textual) | |||
Rent expense | $ 250 | $ 5,500 | |
Service revenue - related party | 15,000 | ||
Compensation | $ 3,000 | ||
CEO [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. |
Shareholder Equity (Details)
Shareholder Equity (Details) - USD ($) | May 01, 2018 | Nov. 30, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Shareholder Equity (Textual) | ||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||
Cancellation of shares | 150,000 | |||||
Amount returned to shareholder | $ 30,000 | |||||
Common stock, description | In order to meet the new OTCQB standards regarding the public float which became effective on May 20, 2018, the Registrant’s CEO and principal shareholder returned 15,000,000 shares of the Registrant’s common stock (the “Shares”) to the Registrant on June 29, 2018. One of the new standards was that every company trading on the OTCQB that has a market value of less than $2 million must have a freely traded “Public Float” of at least 10% of the company’s total issued and outstanding common stock. The Registrant does not have a market value of $2 million and prior to the return of the shares, its public float was approximately 8%. After the return of the Shares, the Registrant’s public float increased to approximately 10.5%. | |||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | ||||
Speedlight Consulting Services Inc [Member] | ||||||
Shareholder Equity (Textual) | ||||||
Common stock issued | 3,000,000 | |||||
Registrant's Transfer Agent [Member] | ||||||
Shareholder Equity (Textual) | ||||||
Common stock, shares authorized | 15,000,000 | |||||
Four Investors [Member] | ||||||
Shareholder Equity (Textual) | ||||||
Common stock issued | 700,340 | |||||
Common stock, par value | $ 0.0001 | |||||
Common stock issued shares, price per share | $ 0.2 | |||||
Common stock issued for cash | $ 140,068 | |||||
Two Investors [Member] | ||||||
Shareholder Equity (Textual) | ||||||
Common stock issued | 600,150 | |||||
Common stock, par value | $ 0.0001 | |||||
Common stock issued shares, price per share | $ 0.2 | |||||
Common stock issued for cash | $ 120,030 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Mar. 12, 2019 | Mar. 06, 2018 | Mar. 17, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Notes Receivable (Textual) | |||||
Promissory note due date | Mar. 17, 2019 | ||||
Promissory note payment, description | The Company received payment of $100,000 and $100,000 on March 12 and October 31, 2018, respectively. | ||||
Total interest income | $ 4,270 | $ 4,650 | |||
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 | ||||
Land Transaction Agreement [Member] | Steven Zhi Qin [Member] | Subsequent Event [Member] | |||||
Notes Receivable (Textual) | |||||
Promissory note amount | $ 110,000 | ||||
Promissory note due date | Jun. 30, 2019 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Twelve months ending December 31, 2019 | $ 61,920 |
Twelve months ending December 31, 2020 | 64,392 |
Twelve months ending December 31, 2021 | 66,972 |
Twelve months ending December 31, 2022 | |
Twelve months ending December 31, 2023 | |
Total | $ 193,284 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expenses | $ 59,958 | $ 5,500 |
Subsequent Event (Details)
Subsequent Event (Details) | Mar. 12, 2019 |
Subsequent Event [Member] | |
Subsequent Event (Textual) | |
Due date, description | The Company reached an agreement with Steven Zhi Qin, pursuant to which the Company agreed and approved amendment of the Promissory Note of land transaction to extend maturity date to June 30, 2019. and the remaining $110,000 will be due on June 30, 2019. |