Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 12, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | FIRST EQUITY PROPERTIES INC | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Trading Symbol | fepi | |
Amendment Flag | false | |
Entity Central Index Key | 726,516 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 1,057,628 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
BALANCE SHEET (unaudited)
BALANCE SHEET (unaudited) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Assets {1} | ||
Notes receivable and accrued interest - related parties | $ 2,156,887 | $ 2,106,229 |
Cash and cash equivalents | 602 | 867 |
Total assets | 2,157,489 | 2,107,096 |
Liabilities and Shareholders' Equity | ||
Notes payable and accrued interest - related parties | 857,083 | 836,953 |
Accounts payable - other | 2,513 | 669 |
Accounts payable - related parties | 419,608 | 381,958 |
Total liabilities | 1,279,204 | 1,219,580 |
Shareholders' equity | ||
Common stock, $0.01 par value; 40,000,000 shares authorized; 1,057,628 issued and outstanding | 10,576 | 10,576 |
Preferred stock, $0.01 par value; 4,960,000 shares authorized; none issued or outstanding | 0 | 0 |
Paid in capital | 1,376,682 | 1,376,682 |
Retained earnings (deficit) | (508,973) | (499,742) |
Total shareholders' equity | 878,285 | 887,516 |
Total liabilities and shareholders' equity | $ 2,157,489 | $ 2,107,096 |
BALANCE SHEET PARENTHETICALS
BALANCE SHEET PARENTHETICALS - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Parentheticals | ||
Preferred Stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 4,960,000 | 4,960,000 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 40,000,000 | 40,000,000 |
Common Stock, shares issued | 1,057,628 | 1,057,628 |
Common Stock, shares outstanding | 1,057,628 | 1,057,628 |
STATEMENT OF OPERATIONS (unaudi
STATEMENT OF OPERATIONS (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue | ||||
Revenue from operations | $ 0 | $ 0 | $ 0 | $ 0 |
Total revenue | 0 | 0 | 0 | 0 |
Operating Expenses | ||||
Administrative fees - related parties | 15,000 | 15,000 | 30,000 | 30,000 |
General and administrative | 7,418 | 16,401 | 40,965 | 36,899 |
Total operating expenses | 22,418 | 31,401 | 70,965 | 66,899 |
Income (loss) before interest expense and taxes | (22,418) | (31,401) | (70,965) | (66,899) |
Other income (expense) | ||||
Interest income - related parties | 51,221 | 52,356 | 102,441 | 104,446 |
Interest expense - related parties | (20,354) | (20,353) | (40,707) | (42,145) |
Net income (loss) applicable to common shareholders | $ 8,449 | $ 602 | $ (9,231) | $ (4,598) |
Earnings (loss) per share | $ 0.01 | $ 0 | $ (0.01) | $ 0 |
Weighted average shares outstanding | 1,057,628 | 1,057,628 | 1,057,628 | 1,057,628 |
STATEMENT OF CHANGES IN SHAREHO
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - 6 months ended Jun. 30, 2016 - USD ($) | Common Stock Shares | Common Stock Amount | Paid-in Capital | Retained Earningd (Deficit) | Total Equity |
Balance at Jan. 01, 2016 | 1,057,628 | 10,576 | 1,376,682 | (499,742) | 887,516 |
Net Income (Loss) | $ 0 | $ 0 | $ (9,231) | $ (9,231) | |
Balance at Jun. 30, 2016 | 1,057,628 | 10,576 | 1,376,682 | (508,973) | 878,285 |
STATEMENT OF CASH FLOWS (Unaudi
STATEMENT OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net Income (Loss) | $ (9,231) | $ (4,598) |
(Increase) decrease in | ||
Interest receivable - related parties | (50,658) | (50,794) |
Accounts payable - other | 1,844 | (2,516) |
Accounts payable - related parties | 37,650 | 64,483 |
Interest payable - related parties | 20,130 | 19,416 |
Net cash provided by (used for) operating activities | (265) | 25,991 |
Cash Flows from Investing Activities | ||
Notes receivable - related parties | 0 | 19,100 |
Net cash provided by (used for) investing activities | 0 | 19,100 |
Cash Flows from Financing Activities | ||
Notes payable - related parties | 0 | (39,765) |
Net cash provided by (used for) financing activities | 0 | (39,765) |
Net increase (decrease) in cash and cash equivalents | (265) | 5,326 |
Cash and cash equivalents at the beginning of period | 867 | 1,776 |
Cash and cash equivalents at the end of period | 602 | 7,102 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest expense to related parties | 20,577 | 22,730 |
Cash received for interest on notes receivable | $ 51,783 | $ 53,653 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
ORGANIZATION AND BASIS OF PRESENTATION: | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Organization and business First Equity Properties, Inc. is a Nevada based corporation organized in December 19, 1996 and the Company is headquartered in Dallas, TX. The Company's principal line of business and source of revenue is currently investments and interest on notes receivable. The Company is currently in the business of real estate investing. FEPI is a publicly traded company however, no trading market presently exists for the shares of common stock and its value is therefore not determinable. Basis of presentation The unaudited financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present such information. All such adjustments are of a normal recurring nature. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2015. Operating results for the six month period ended June 30, 2016 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2016. Newly issued accounting pronouncements We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted. We do not believe that any such guidance will have a material effect on our financial position or results of operation |
FEDERAL INCOME TAXES
FEDERAL INCOME TAXES | 6 Months Ended |
Jun. 30, 2016 | |
FEDERAL INCOME TAXES: | |
FEDERAL INCOME TAXES | NOTE 2. FEDERAL INCOME TAXES The Company accounts for income taxes in accordance with Accounting Standards Codification, ("ASC") No. 740, "Accounting for Income Taxes". ASC 740 requires an asset and liability approach to financial accounting for income taxes. In the event differences between the financial reporting basis and the tax basis of the Company's assets and liabilities result in deferred tax assets, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated. Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years. |
NOTES RECEIVABLE AND ACCRUED IN
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES | 6 Months Ended |
Jun. 30, 2016 | |
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES: | |
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES | NOTE 3. NOTES RECEIVABLE AND ACCRUED INTEREST RELATED PARTIES Receivables from related parties primarily consist of two notes of $1,565,292 and $489,154 which are payable in quarterly installments of interest only. The notes accrue interest at 10% per annum. The maturity date of these notes has been extended to December 31, 2017. A payment was received in March 2016 for $51,783 which paid the remaining interest balance due in 2015. 2016 2015 Notes receivable related parties Unsecured, due on demand, interest rate of 10%, due monthly $ 2,054,446 $ 2,054,446 Accrued interest related parties 102,441 51,783 Total notes and accounts receivable related parties $ 2,156,887 $ 2,106,229 Subsequent payments for interest on notes receivable were received in July 2016 for $102,441 which makes the notes and interest receivable balances current. |
NOTES PAYABLE AND ACCRUED INTER
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES | 6 Months Ended |
Jun. 30, 2016 | |
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES: | |
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES | NOTE 4. NOTES PAYABLE AND ACCRUED INTEREST RELATED PARTIES 2016 2015 Uncollateralized notes payable related parties due on demand, interest rate of 10%, payable quarterly $ 816,376 $ 816,376 Accrued interest and intercompany related parties 40,707 20,577 Total notes payable related parties $ 857,083 $ 836,953 Long term debt and accrued interest is due December 31, 2017. Subsequent payments for interest on notes payable were made in July 2016 totaling $40,707 which makes the notes and interest payable balances current. |
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS | 6 Months Ended |
Jun. 30, 2016 | |
RELATED PARTIES TRANSACTIONS: | |
RELATED PARTIES TRANSACTIONS | NOTE 5. RELATED PARTIES TRANSACTIONS Transactions involving related parties The Company has an administrative agreement with Pillar Income Asset Management, Inc., an affiliated entity, for accounting and administrative services. The total expense of the six months ended June 30, 2016 was $30,000 which is included in General and Administrative expenses of the Statements of Operations. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2016 | |
SUBSEQUENT EVENTS: | |
SUBSEQUENT EVENTS | NOTE 6. SUBSEQUENT EVENTS The Company has evaluated subsequent events through August 12, 2016, the date the financial statements were available to be issued, and has determined that there has been subsequent payments received in July 2016 for interest on notes receivable and subsequent payments made in July 2016 for interest owed on notes payable. |
ACCOUNTIING POLICIES (Policies)
ACCOUNTIING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies: | |
Organization and business | Organization and business First Equity Properties, Inc. is a Nevada based corporation organized in December 19, 1996 and the Company is headquartered in Dallas, TX. The Company's principal line of business and source of revenue is currently investments and interest on notes receivable. The Company is currently in the business of real estate investing. FEPI is a publicly traded company however, no trading market presently exists for the shares of common stock and its value is therefore not determinable. |
Basis of presentation | Basis of presentation The unaudited financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present such information. All such adjustments are of a normal recurring nature. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2015. Operating results for the six month period ended June 30, 2016 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2016. |
Newly issued accounting pronouncements | Newly issued accounting pronouncements We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted. We do not believe that any such guidance will have a material effect on our financial position or results of operation |
NOTES RECEIVABLE AND ACCRUED 14
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables): | |
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables) | A payment was received in March 2016 for $51,783 which paid the remaining interest balance due in 2015. 2016 2015 Notes receivable related parties Unsecured, due on demand, interest rate of 10%, due monthly $ 2,054,446 $ 2,054,446 Accrued interest related parties 102,441 51,783 Total notes and accounts receivable related parties $ 2,156,887 $ 2,106,229 |
NOTES PAYABLE AND ACCRUED INT15
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables): | |
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables) | 2016 2015 Uncollateralized notes payable related parties due on demand, interest rate of 10%, payable quarterly $ 816,376 $ 816,376 Accrued interest and intercompany related parties 40,707 20,577 Total notes payable related parties $ 857,083 $ 836,953 |
NOTES RECEIVABLE AND ACCRUED 16
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (DETAILS) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Notes receivable - related parties {1} | ||
Unsecured, due on demand, interest rate of 10%, due monthly | $ 2,054,446 | $ 2,054,446 |
Accrued interest - related parties | 102,441 | 51,783 |
Total notes and accounts receivable - related parties | $ 2,156,887 | $ 2,106,229 |
RECEIVABLES RELATED PARTIES (DE
RECEIVABLES RELATED PARTIES (DETAILS) | Jun. 30, 2016USD ($) |
Receivables Related Parties Details | |
Receivable related parties primary note 1 mature on December 31, 2017 | $ 1,565,292 |
Receivable related parties primary note 2 | $ 489,154 |
Notes accrued interest per annum at | 10.00% |
Payment received in March 2016 | $ 51,783 |
Subsequent payments for interest on notes receivable were received in July 2016 | $ 102,441 |
NOTES PAYABLE AND ACCRUED INT18
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (DETAILS) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES DETAILS | ||
Uncollateralized notes payable - related parties due on demand, interest rate of 10%, payable quarterly | $ 816,376 | $ 816,376 |
Accrued interest and intercompany - related parties | 40,707 | 20,577 |
Total notes payable - related parties | 857,083 | 836,953 |
Subsequent payments for interest on notes payable were made in July 2016 totaling | $ 40,707 | $ 0 |
RELATED PARTIES TRANSACTIONS (D
RELATED PARTIES TRANSACTIONS (DETAILS) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Related Parties Transactions Details | |
Total expense | $ 30,000 |