Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | Global Diversified Marketing Group Inc. | ||
Entity Central Index Key | 0001725911 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 13,575,376 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 62,555 | $ 22,291 |
Accounts receivable | 134,570 | 52,284 |
Prepaid expenses | 31,444 | 34,176 |
Inventory | 350,615 | 224,375 |
Other assets | 10,890 | 4,384 |
Total current assets | 590,074 | 337,509 |
Property and equipment, net | 1,389 | 1,945 |
Operating lease right of use assets | 14,257 | 30,477 |
Other assets-security deposit | 1,600 | 1,600 |
Total assets | 607,320 | 371,531 |
Current liabilities: | ||
Accounts payable and accrued expense | 472,514 | 332,059 |
Current portion of operating lease payable | 15,732 | 20,517 |
Government loans payable | 149,900 | |
Loans payable | 20,540 | 98,471 |
Total current liabilities | 658,686 | 451,047 |
Government loans payable-long term | ||
Long term liability- operating lease | 15,732 | |
Total liabilities | 658,686 | 466,779 |
Commitments and contingencies | ||
Stockholders' Equity(Deficit): | ||
Preferred stock, Series A $.0001 par value, 1,000,000 shares authorized, 1,000 issued and outstanding | ||
Common stock, $0.001 par value, 100,000,000 shares authorized;13,132,518 and 13,010,200 issued and outstanding as of December 31, 2020 and December 31, 2019, respectively | 1,423 | 1,301 |
Additional paid-in capital | 26,267,098 | 78,169 |
Accumulated deficit | (26,329,779) | (174,718) |
Accumulated other comprehensive income | 9,892 | |
Total stockholders' equity(deficit) | (51,366) | (95,248) |
Total liabilities and equity | $ 607,320 | $ 371,531 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Series A preferred stock, par value | $ .0001 | $ .0001 |
Series A preferred stock, authorized | 1,000,000 | 1,000,000 |
Series A preferred stock, issued | 1,000 | 1,000 |
Series A preferred stock, outstanding | 1,000 | 1,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 13,132,518 | 13,010,200 |
Common stock, outstanding | 13,132,518 | 13,010,200 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Sales, net | $ 1,660,726 | $ 1,317,092 |
Cost of goods sold | 999,911 | 946,090 |
Gross margin | 660,815 | 371,002 |
Operating expenses: | ||
General and administrative expense -related party | 26,020,400 | |
Payroll and taxes | 241,018 | 248,084 |
Legal and professional fees | 242,892 | 55,131 |
Rent | 16,225 | 28,896 |
General and administrative | 301,126 | 159,920 |
Total operating expenses | 26,821,661 | 492,031 |
Income (loss) from operations | (26,160,846) | (121,029) |
Other (expense) | ||
Interest expense | (34,299) | (29,955) |
Miscellaneous income | 40,084 | |
Total other (expense) | 5,785 | (29,955) |
Income (loss) before income taxes | (26,155,061) | (150,984) |
Provision for income taxes (benefit) | ||
Net loss | $ (26,155,061) | $ (150,984) |
Basic and diluted earnings (loss) per common share | $ (2) | $ (0.01) |
Weighted-average number of common shares outstanding: | ||
Basic and diluted | 13,076,590 | 12,944,088 |
Comprehensive income (loss): | ||
Net income(loss) | $ (26,155,061) | $ (150,984) |
Unrealized gain on foreign exchange | 9,892 | |
Comprehensive income (loss) | $ (26,145,169) | $ (150,984) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2018 | $ 1,334 | $ 77,966 | $ (23,734) | $ 55,566 | ||
Balance, shares at Dec. 31, 2018 | 13,340,200 | |||||
Change in foreign currency translation | ||||||
Private placement of common shares | $ 17 | 153 | 170 | |||
Private placement of common shares, shares | 170,000 | |||||
Common shares returned by founders | $ (50) | 50 | ||||
Common shares returned by founders, shares | (500,000) | |||||
Net income (loss) | (150,984) | (150,984) | ||||
Balance at Dec. 31, 2019 | $ 1,301 | 78,169 | (174,718) | (95,248) | ||
Balance, shares at Dec. 31, 2019 | 13,010,200 | |||||
Issuance of super voting preferred stock | 26,020,400 | 26,020,400 | ||||
Issuance of super voting preferred stock, shares | 1,000 | |||||
Common stock issued for services | $ 122 | 168,529 | 168,651 | |||
Common stock issued for services,shares | 122,318 | |||||
Change in foreign currency translation | 9,892 | 9,892 | ||||
Net income (loss) | (26,155,061) | (26,155,061) | ||||
Balance at Dec. 31, 2020 | $ 1,423 | $ 26,267,098 | $ (26,329,779) | $ 9,892 | $ (51,366) | |
Balance, shares at Dec. 31, 2020 | 1,000 | 13,132,518 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities of continuing operations: | ||
Net income (loss) | $ (26,155,061) | $ (150,984) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation | 556 | 556 |
Stock-based compensation -related party | 26,020,400 | |
Common stock issued for services | 168,529 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (82,286) | (50,279) |
Prepaid expenses | 2,732 | (25,122) |
Right of use assets | 16,220 | (30,477) |
Inventory | (126,240) | 228,627 |
Other assets | (6,507) | (4,384) |
Operating lease payable | (20,517) | 36,250 |
Accounts payable and accrued expenses | 140,577 | (25,850) |
Net cash provided by (used in) operating activities | (41,597) | (21,663) |
Cash flows from investing activities: | ||
Purchase of fixed assets | ||
Net cash provided by (used in) financing activities | ||
Cash flows from financing activities: | ||
Increase (decrease) in loans payable, net | (77,931) | 22,269 |
Government loans-net | 149,900 | 170 |
Net cash provided by (used in) financing activities | 71,969 | 22,439 |
Effect of exchange rates on cash and cash and cash equivalents | 9,892 | |
Net increase (decrease) in cash and cash equivalents | 40,264 | 776 |
Cash and cash equivalents at beginning of period | 22,291 | 21,515 |
Cash and cash equivalents at end of period | 62,555 | 22,291 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 34,299 | 29,955 |
Cash paid for income taxes |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Global Diversified Marketing Group Inc. (the “Company”), formerly known as Dense Forest Acquisition Corporation, was incorporated in Delaware on December 1, 2017, and changed its name on June 13, 2018, as part of a change in control. As part of the change in control, its then officers and directors resigned and contributed back to the Company 19,500,000 shares of the 20,000,000 outstanding shares of its common stock, and appointed new officers and directors. On June 14, 2018, the new management of the Company issued 12.500,000 shares of its common stock to Paul Adler, the then president of the Company. On November 26, 2018, the Company effected the acquisition of Global Diversified Holdings, Inc. (“GDHI”), a private New York company owned by the Company’s president, with the issuance of 200 shares of the Company’s common stock in exchange for all of the outstanding shares of GDHI. GDHI became a wholly-owned subsidiary of the Company, and its activity for the years 2020 and 2019 is reflected in these financial statements along with the expenses of the Company. Prior to the acquisition of GDHI, the Company had no business and no operations. Pursuant to the acquisition, the Company acquired the operations and business plan of GDHI, which imports and sells snack food products. For accounting purposes, GDHI is considered to be the acquirer, and the equity is presented as if the business combination had occurred on January 1, 2017. Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. Certain prior year amounts have been reclassified to conform to the presentation in the current year. The Company has adopted a December 31 year-end. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. Fair Value of Financial Instruments The Company’s financial instruments consist of cash, accounts receivable from customers, accounts payable, and loans payable. The carrying amounts of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. Stock-Based Compensation The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This Section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. During the year ended December 31, 2020 and December 31, 2019 stock-based compensation was $168,651 and $-0-, respectively. Cash and Cash Equivalents The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. On December 31, 2020, and 2019, the Company had $62,555 and $22,291 of cash. Factoring The Company accounts for the transfer of our accounts receivable to a third party under a factoring agreement in accordance with ASC 860-10-40-5 “ Transfers and Servicing Accounts Receivable Accounts receivable are generated from sales of snack food products to retail outlets throughout the United States. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment and current creditworthiness, as determined by review of their current credit information. The Company continuously monitors credit limits for its customers and maintains a provision for estimated credit losses based on its historical experience and any specific customer issues that have been identified. An allowance for doubtful; accounts are provided against accounts receivable for amounts management believes may be uncollectible. The Company historically has not had issues collecting on its accounts receivable from its customers. The Company factors certain of its receivables to improve its cash flow. Bad debt expense for the years ended December 31, 2020, and 2019 was $5,327 and $0, respectively; the allowance for doubtful accounts on December 31, 2020, and 2019 was $0. Inventory Inventory consists of snack food products and packaging supplies, and are stated at the lower of cost or market. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the assets. Maintenance, repairs, and renewals that do not materially add to the value of the equipment nor appreciably prolong its useful life are charged to expense as incurred. Revenue Recognition Beginning January 1, 2018, the Company implemented ASC 606, Revenue from Contracts with Customers. Although the new revenue standard is expected to have an immaterial impact, if any, on our ongoing net income, we did implement changes to our processes related to revenue recognition and the control activities within them. These included the development of new policies based on the five-step model provided in the new revenue standard, ongoing contract review requirements, and gathering of information provided for disclosures. The Company recognizes revenue from product sales or services rendered when control of the promised goods are transferred to our clients in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. To achieve this core principle we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance obligation. Advertising and Marketing Costs The Company’s policy regarding advertising and marketing is to record the expense when incurred. The Company incurred advertising and marketing expenses of $93,805 and $19,422 during the years ended December 31, 2020, and 2019, respectively. Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. The Company’s income tax returns are open for examination for up to the past three years under the statute of limitations. There are no tax returns currently under examination. Comprehensive Income The Company has established standards for reporting and display of comprehensive income, its components, and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders’ Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. During the year ended December 31, 2020 the Company had a balance of $9,892 in accumulated other comprehensive income which arose from unrealized gain due to foreign currency fluctuations. Basic Income (Loss) Per Share Basic income (loss) per share has been calculated based on the weighted average number of shares of common stock outstanding during the period. Recent Accounting Pronouncements The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position, or cash flow. |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 2 GOING CONCERN As of December 31, 2020, the Company had cash and cash equivalents of $62,555 and had negative stockholders equity of $51,366. Additionally, the Company had negative working capital of $68,612. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financials have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. If the Company is, in fact, unable to continue as a going concern, the shareholders may lose some or all of their investment in the Company. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Capital Stock | NOTE 3 – CAPITAL STOCK The Company has 100,000,000 shares of $.0001 par value common stock authorized. The Company has 13,132,518 and 13,010,000 shares of common stock issued and outstanding as of December 31, 2020, and December 31, 2019, respectively. During the year ended December 31, 2020, the Company issued the following shares: On February 26, 2020, the Company issued 60,000 restricted common shares to a consultant and recorded a charge of $120,000. On July 30, 2020, the Company issued 12,000 restricted common shares to an investment banking firm and recorded a charge of $12,600. On August 14, 2020, the Company issued 30,000 shares to an investment banking firm and recorded a charge of $22,503. On August 19, 2020, the Company issued 15,000 restricted common shares to a consultant and recorded a charge of $11,252. On December 28, 2020 the Company issued 5,318 shares to a consultant and recorded a charge of $2,296. All of these charges were recorded as “professional fees” on the Company’s Consolidated Statements of Operations during the nine months ended December 31, 2020. The Company has 20,000,000 shares of $.0001 par value preferred stock authorized. On February 24, 2020, the Company filed a Certificate of Designation for a class of preferred stock designated Class A Super Voting Preferred Stock (“A Stock”). There are 1,000,000 shares of A Stock designated. Each share of such stock shall vote with the common stock and have 100,000 votes. A Stock has no conversion, dividend, or liquidation rights. Accordingly, the holders of A Stock will, by reason of their voting power, be able to control the affairs of the Company. The Company has issued 1,000 shares of A Stock to Paul Adler, the company’s Chief Executive Officer, and majority shareholder giving him effective voting control over the Registrant’s affairs for the foreseeable future. As a result of the issuance of super-voting rights enabling him to vote 100,000,000 shares, Mr. Adler has effective voting control of approximately 99% of the Company. In conjunction with the issuance of these 1,000 preferred shares, the Company recorded stock compensation expense, related party of $26,020,400 during the year ended December 31, 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 4 – RELATED PARTY TRANSACTIONS During the years ended December 31, 2020, and 2019, the Company incurred salary expense of $210,000 and $198,000 respectively, related to services provided to it by its CEO. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 5 – COMMITMENTS AND CONTINGENCIES The Company entered into a 60-month lease agreement on October 1, 2016, to rent office space. The lease requires monthly payments of $1,600 for the first 24 months and after that increases by 3% each year, and contains one five year renewal option. Rental expenses under this lease for the years ended December 31, 2020, and 2019 was $16,225 and $28,896, respectively. The lease also required advance payment of $1,600 for the last month of rent as well as a $1,600 security deposit. Future minimum lease payments due under this operating lease, including renewal periods, are as follows: Year ended December 31, 2021 15,732 Total minimum lease payments $ 15,372 |
Loans Payable
Loans Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Loans Payable | NOTE 6 – LOANS PAYABLE The Company had various loans outstanding on December 31, 2020, and 2019 – all were short-term in nature, with varying rates of interest and fees, and no set minimum monthly payments, as follows: 2020 2019 Credit Line - BlueVine 14,072 12,287 Credit Line – Loan Builder 6,468 86,184 Total loans payable $ 20,540 $ 98,471 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7 – INCOME TAXES For the period ended December 31, 2020, the Company has incurred net losses and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The net operating loss carry forward is approximately 409,000 on December 31, 2020. The provision for Federal income tax consists of the following on December 31, 2020, and 2019: 2020 2019 Federal income tax benefit attributable to: Current Operations $ 33,990 $ 86,000 Less: NOL carryforward in 2020, and valuation allowance in 2019 (33,900 ) (86,000 ) Net provision for Federal income taxes $ - $ - |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 8 – CONCENTRATIONS The Company does substantially all of its business with 4 customers. These customers accounted for % and 91% of revenues for the years ended December 31, 2020, and 2019, respectively. 2020 2019 Customer A 34 29 % Customer B 24 25 % Customer C 22 20 % Customer D 11 17 % Total 91 % 91 % |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 9 – SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations subsequent to December 31, 2020, to the date these financial statements were issued, and has determined that it does not have any other material subsequent events to disclose in these financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Global Diversified Marketing Group Inc. (the “Company”), formerly known as Dense Forest Acquisition Corporation, was incorporated in Delaware on December 1, 2017, and changed its name on June 13, 2018, as part of a change in control. As part of the change in control, its then officers and directors resigned and contributed back to the Company 19,500,000 shares of the 20,000,000 outstanding shares of its common stock, and appointed new officers and directors. On June 14, 2018, the new management of the Company issued 12.500,000 shares of its common stock to Paul Adler, the then president of the Company. On November 26, 2018, the Company effected the acquisition of Global Diversified Holdings, Inc. (“GDHI”), a private New York company owned by the Company’s president, with the issuance of 200 shares of the Company’s common stock in exchange for all of the outstanding shares of GDHI. GDHI became a wholly-owned subsidiary of the Company, and its activity for the years 2020 and 2019 is reflected in these financial statements along with the expenses of the Company. Prior to the acquisition of GDHI, the Company had no business and no operations. Pursuant to the acquisition, the Company acquired the operations and business plan of GDHI, which imports and sells snack food products. For accounting purposes, GDHI is considered to be the acquirer, and the equity is presented as if the business combination had occurred on January 1, 2017. |
Basis of Presentation | Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. Certain prior year amounts have been reclassified to conform to the presentation in the current year. The Company has adopted a December 31 year-end. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash, accounts receivable from customers, accounts payable, and loans payable. The carrying amounts of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. |
Stock-based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This Section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. During the year ended December 31, 2020 and December 31, 2019 stock-based compensation was $168,651 and $-0-, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. On December 31, 2020, and 2019, the Company had $62,555 and $22,291 of cash. |
Factoring | Factoring The Company accounts for the transfer of our accounts receivable to a third party under a factoring agreement in accordance with ASC 860-10-40-5 “ Transfers and Servicing |
Accounts Receivable | Accounts Receivable Accounts receivable are generated from sales of snack food products to retail outlets throughout the United States. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment and current creditworthiness, as determined by review of their current credit information. The Company continuously monitors credit limits for its customers and maintains a provision for estimated credit losses based on its historical experience and any specific customer issues that have been identified. An allowance for doubtful; accounts are provided against accounts receivable for amounts management believes may be uncollectible. The Company historically has not had issues collecting on its accounts receivable from its customers. The Company factors certain of its receivables to improve its cash flow. Bad debt expense for the years ended December 31, 2020, and 2019 was $5,327 and $0, respectively; the allowance for doubtful accounts on December 31, 2020, and 2019 was $0. |
Inventory | Inventory Inventory consists of snack food products and packaging supplies, and are stated at the lower of cost or market. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the assets. Maintenance, repairs, and renewals that do not materially add to the value of the equipment nor appreciably prolong its useful life are charged to expense as incurred. |
Revenue Recognition | Revenue Recognition Beginning January 1, 2018, the Company implemented ASC 606, Revenue from Contracts with Customers. Although the new revenue standard is expected to have an immaterial impact, if any, on our ongoing net income, we did implement changes to our processes related to revenue recognition and the control activities within them. These included the development of new policies based on the five-step model provided in the new revenue standard, ongoing contract review requirements, and gathering of information provided for disclosures. The Company recognizes revenue from product sales or services rendered when control of the promised goods are transferred to our clients in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. To achieve this core principle we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance obligation. |
Advertising and Marketing Costs | Advertising and Marketing Costs The Company’s policy regarding advertising and marketing is to record the expense when incurred. The Company incurred advertising and marketing expenses of $93,805 and $19,422 during the years ended December 31, 2020, and 2019, respectively. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. |
Income Taxes | Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. The Company’s income tax returns are open for examination for up to the past three years under the statute of limitations. There are no tax returns currently under examination. |
Comprehensive Income | Comprehensive Income The Company has established standards for reporting and display of comprehensive income, its components, and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders’ Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. During the year ended December 31, 2020 the Company had a balance of $9,892 in accumulated other comprehensive income which arose from unrealized gain due to foreign currency fluctuations. |
Basic Income (Loss) Per Share | Basic Income (Loss) Per Share Basic income (loss) per share has been calculated based on the weighted average number of shares of common stock outstanding during the period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position, or cash flow. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments of Operating Lease Liability | Future minimum lease payments due under this operating lease, including renewal periods, are as follows: Year ended December 31, 2021 15,732 Total minimum lease payments $ 15,372 |
Loans Payable (Tables)
Loans Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Loans Outstanding | The Company had various loans outstanding on December 31, 2020, and 2019 – all were short-term in nature, with varying rates of interest and fees, and no set minimum monthly payments, as follows: 2020 2019 Credit Line - BlueVine 14,072 12,287 Credit Line – Loan Builder 6,468 86,184 Total loans payable $ 20,540 $ 98,471 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Statement of Provision for Federal Income Tax | The provision for Federal income tax consists of the following on December 31, 2020, and 2019: 2020 2019 Federal income tax benefit attributable to: Current Operations $ 33,990 $ 86,000 Less: NOL carryforward in 2020, and valuation allowance in 2019 (33,900 ) (86,000 ) Net provision for Federal income taxes $ - $ - |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration of Risk | The Company does substantially all of its business with 4 customers. These customers accounted for % and 91% of revenues for the years ended December 31, 2020, and 2019, respectively. 2020 2019 Customer A 34 29 % Customer B 24 25 % Customer C 22 20 % Customer D 11 17 % Total 91 % 91 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Nov. 26, 2018 | Jun. 14, 2018 | Jun. 13, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Entity incorporation, date of incorporation | Dec. 1, 2017 | ||||
Entity incorporation, state or country code | DE | ||||
Common stock share outstanding | 13,132,518 | 13,010,200 | |||
Stock-based compensation | $ 168,651 | $ 0 | |||
Cash and cash equivalents | 62,555 | 22,291 | |||
Loan payable - due to factors | 20,540 | 98,471 | |||
Bad debts expense | 5,327 | 0 | |||
Allowance for doubtful accounts | 0 | 0 | |||
Advertising and marketing expenses | $ 93,805 | 19,422 | |||
Income tax examination, description | The Company's income tax returns are open for examination for up to the past three years under the statute of limitations. There are no tax returns currently under examination. | ||||
Unrealized gain due to foreign currency fluctuations | $ 9,892 | ||||
Global Diversified Holdings, Inc. [Member] | |||||
Number of shares issued during period | 200 | ||||
Paul Adler [Member] | |||||
Number of shares issued during period | 12,500,000 | ||||
Common Stock [Member] | |||||
Stock redeemed or called during period, shares | 19,500,000 | ||||
Common stock share outstanding | 20,000,000 | ||||
Number of shares issued during period | 170,000 | ||||
Unrealized gain due to foreign currency fluctuations |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash and cash equivalents | $ 62,555 | $ 22,291 | |
Stockholders equity | (51,366) | $ (95,248) | $ 55,566 |
Working capital | $ (68,612) |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) | Dec. 28, 2020USD ($)shares | Aug. 19, 2020USD ($)shares | Aug. 14, 2020USD ($)shares | Jul. 30, 2020USD ($)shares | Feb. 26, 2020USD ($)shares | Feb. 24, 2020shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares |
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||||
Common stock, value per share | $ / shares | $ 0.001 | $ 0.001 | ||||||
Common stock, shares issued | 13,132,518 | 13,010,200 | ||||||
Common stock, shares outstanding | 13,132,518 | 13,010,200 | ||||||
Professional fees | $ | $ 242,892 | $ 55,131 | ||||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||||||
Preferred stock, value per share | $ / shares | $ .0001 | $ .0001 | ||||||
Series A preferred stock, issued | 1,000 | 1,000 | ||||||
Issuance of super voting preferred stock, shares | 1,000 | |||||||
Compensation expense-related party | $ | $ 26,020,400 | |||||||
Class A Super Voting Preferred Stock [Member] | ||||||||
Preferred stock, shares authorized | 1,000,000 | |||||||
Common stock voting rights | Each share of such stock shall vote with the common stock and have 100,000 votes. | |||||||
Preferred Stock [Member] | ||||||||
Preferred stock, shares authorized | 20,000,000 | |||||||
Preferred stock, value per share | $ / shares | $ 0.0001 | |||||||
Consultant [Member] | ||||||||
Number of shares issued for services | 5,318 | 15,000 | 60,000 | |||||
Professional fees | $ | $ 2,296 | $ 11,252 | $ 120,000 | |||||
Investment Banking Firm [Member] | ||||||||
Number of shares issued for services | 30,000 | 12,000 | ||||||
Professional fees | $ | $ 22,503 | $ 12,600 | ||||||
Paul Adler [Member] | ||||||||
Preferred stock voting rights | The issuance of super-voting rights enabling him to vote 100,000,000 shares. | |||||||
Preferred stock voting rights percentage | 0.99 | |||||||
Paul Adler [Member] | Class A Super Voting Preferred Stock [Member] | ||||||||
Series A preferred stock, issued | 1,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Salary expense, CEO | $ 210,000 | $ 198,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | Oct. 01, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease term | 60 months | ||
Monthly payments | $ 1,600 | ||
Lease description | The lease requires monthly payments of $1,600 for the first 24 months and after that increases by 3% each year, and contains one five year renewal option. | ||
Renewal term | 5 years | ||
Rent expenses | $ 16,225 | $ 28,896 | |
Advance payment | 1,600 | ||
Security deposit | $ 1,600 | $ 1,600 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments of Operating Lease Liability (Details) | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Year ended December 31, 2021 | $ 15,732 |
Total minimum lease payments | $ 15,732 |
Loans Payable - Schedule of Loa
Loans Payable - Schedule of Loans Outstanding (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Total loans payable | $ 20,540 | $ 98,471 |
Credit Line - Blue Vine [Member] | ||
Total loans payable | 14,072 | 12,287 |
Loan Builder [Member] | ||
Total loans payable | $ 6,468 | $ 86,184 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Dec. 31, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Net operating loss carry forward | $ 409,000 |
Income Taxes - Statement of Pro
Income Taxes - Statement of Provision for Federal Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current Operations | $ 33,990 | $ 86,000 |
Less: NOL carryforward in 2020, and valuation allowance in 2019 | (33,900) | (86,000) |
Net provision for Federal income taxes |
Concentrations (Details Narrati
Concentrations (Details Narrative) - Customers | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of customers | 4 | 4 |
Sales Revenue [Member] | ||
Concentration risk, percentage | 91.00% | 91.00% |
Concentrations - Schedule of Co
Concentrations - Schedule of Concentration of Risk (Details) - Sales Revenue [Member] | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration risk, percentage | 91.00% | 91.00% |
Customer A [Member] | ||
Concentration risk, percentage | 34.00% | 29.00% |
Customer B [Member] | ||
Concentration risk, percentage | 24.00% | 25.00% |
Customer C [Member] | ||
Concentration risk, percentage | 22.00% | 20.00% |
Customer D [Member] | ||
Concentration risk, percentage | 11.00% | 17.00% |