JERRICK MEDIA HOLDINGS, INC., 10-K filed on 4/14/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2015
Apr. 13, 2016
Jun. 30, 2015
Document And Entity Information
 
 
 
Entity Registrant Name
Jerrick Media Holdings, Inc. 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2015 
 
 
Amendment Flag
false 
 
 
Entity Central Index Key
0001357671 
 
 
Current Fiscal Year End Date
--12-31 
 
 
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
2015 
 
 
Document Fiscal Period Focus
FY 
 
 
Entity Public Float
 
 
$ 84,286 
Entity Common Stock, Shares Outstanding
 
31,682,896 
 
Consolidated Balance Sheets (USD $)
Dec. 31, 2015
Dec. 31, 2014
Current Assets
 
 
Cash and Cash Equivalents
$ 573,572 
$ 969,094 
Accounts Receivable
125 
   
Assets held for discontinued operations
214 
1,737 
Total Current Assets
573,911 
970,831 
Property and Equipment
 
 
Property and Equipment
412,265 
323,842 
Less: Accumulated Depreciation
(20,553)
(6,814)
Land
72,105 
58,201 
Net Property and Equipment
463,817 
375,229 
Other Assets
 
 
Deposits
   
11,500 
Total Other Assets
   
11,500 
Total Assets
1,037,728 
1,357,560 
Current Liabilities
 
 
Accounts Payable and Accrued Expenses
1,330 
22,726 
Convertible Debt (net of discount of $0 and $44,810)
   
66,190 
Liabilities held for discontinued operations
Total Current Liabilities
1,332 
88,925 
Long-Term Liabilities
 
 
Refundable Deposits
1,350 
1,450 
Total Long-Term Liabilities
1,350 
1,450 
Total Liabilities
2,682 
90,375 
Stockholders' Equity
 
 
Common stock, 300,000,000 shares authorized, $.001 par value, 1,514,119 and 1,461,932 shares issued and outstanding, respectively
1,514 
1,462 
Additional Paid in Capital
2,068,390 
1,957,642 
Accumulated Deficit
(1,034,878)
(691,939)
Total Stockholders' Equity
1,035,046 
1,267,185 
Total Liabilities and Stockholders' Equity
1,037,728 
1,357,560 
Series A Preferred Stock
 
 
Stockholders' Equity
 
 
Preferred stock value
10 
10 
Total Stockholders' Equity
10 
10 
Series B Preferred Stock
 
 
Stockholders' Equity
 
 
Preferred stock value
10 
10 
Total Stockholders' Equity
10 
10 
Series C Convertible Preferred Stock
 
 
Stockholders' Equity
 
 
Preferred stock value
$ 0 
$ 0 
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2015
Dec. 31, 2014
Convertible debt net of discount
$ 0 
$ 44,810 
Common stock, shares authorized
300,000,000 
300,000,000 
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares issued
1,514,119 
1,461,932 
Common stock, shares outstanding
1,514,119 
1,461,932 
Series A Preferred Stock
 
 
Preferred stock, par value
$ 0.001 
$ 0.001 
Preferred stock, shares authorized
20,000,000 
20,000,000 
Preferred stock, shares issued
10,000 
10,000 
Preferred stock, shares outstanding
10,000 
10,000 
Series B Preferred Stock
 
 
Preferred stock, par value
$ 0.001 
$ 0.001 
Preferred stock, shares authorized
20,000,000 
20,000,000 
Preferred stock, shares issued
10,000 
10,000 
Preferred stock, shares outstanding
10,000 
10,000 
Series C Convertible Preferred Stock
 
 
Preferred stock, par value
$ 0.001 
$ 0.001 
Preferred stock, shares authorized
3,500,000 
3,500,000 
Preferred stock, shares issued
   
   
Preferred stock, shares outstanding
   
   
Consolidated Statements of Operations (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Sales
 
 
Sales Revenue
$ 58,253 
$ 11,412 
Total Sales
58,253 
11,412 
Operating Expenses
 
 
Depreciation and Amortization
13,739 
6,814 
General and Administrative
307,765 
280,951 
Impairment loss on investment
17,788 
30,000 
Total Operating Expenses
339,292 
317,765 
Operating Loss
(281,039)
(306,353)
Other Income (Expense)
 
 
Interest Expense
(76,913)
(28,658)
Investment Income
393 
296 
Other Income
1,000 
   
Total Other Income (Expense)
(75,520)
(28,362)
Net Loss from Continuing Operations before Income Taxes
(356,559)
(334,715)
Net Loss from Continuing Operations
(356,559)
(334,715)
Discontinued Operations
 
 
Income (Loss) on discontinued operations - net of tax
13,620 
(43,325)
Net Loss
$ (342,939)
$ (378,040)
Loss per share of common stock (basic and diluted) continuing operations
$ (0.24)
$ (0.23)
Income (Loss) per share of common stock (basic and diluted) discontinued operations
$ 0.01 
$ (0.03)
Total loss per share of common stock (basic and diluted)
$ (0.23)
$ (0.26)
Weighted average shares outstanding (basic and diluted)
1,505,926 
1,460,114 
Consolidated Statement of Stockholders' Equity (USD $)
Total
Series A Preferred Stock
Series B Preferred Stock
Series C Preferred Stock
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Balance at Dec. 31, 2013
$ 1,550,583 
    
    
    
$ 1,453 
$ 1,863,029 
$ (313,899)
Balance (In Shares) at Dec. 31, 2013
 
   
   
   
1,453,296 
 
 
Issuance of common shares for cash at $0.32 (1/6/14)
12,000 
 
 
 
6,818 
11,993 
 
Issuance of common shares for cash at $0.32 (1/6/14) (In Shares)
 
 
 
 
 
 
Issuance of series A preferred shares for cash at $0.10 (3/17/14)
11,000 
10 
 
 
 
990 
 
Issuance of series A preferred shares for cash at $0.10 (3/17/14) (In shares)
 
10,000 
 
 
 
 
 
Issuance of common shares for building improvements at $1.00 (5/9/14)
10,000 
 
 
 
9,998 
 
Issuance of common shares for building improvements at $1.00 (5/9/14) (In shares)
 
 
 
 
1,818 
 
 
Beneficial conversion feature of convertible debt recorded as Additional Paid in Capital (8/22/14)
43,590 
 
 
 
 
43,590 
 
Acquisition of real estate from entity under common control (09/17/14)
(4,440)
 
 
 
 
(4,440)
 
Beneficial conversion feature of convertible debt recorded as Additional Paid in Capital (11/17/14)
27,492 
 
 
 
 
27,492 
 
Issuance of series B preferred shares for cash at $0.50 (11/30/14)
15,000 
 
10 
 
 
4,990 
 
Issuance of series B preferred shares for cash at $0.50 (11/30/14) (In shares)
 
 
10,000 
 
 
 
 
Net operating loss for the year ended
(378,040)
 
 
 
 
 
(378,040)
Balance at Dec. 31, 2014
1,267,185 
10 
10 
   
1,462 
1,957,642 
(691,939)
Balance (In Shares) at Dec. 31, 2014
 
10,000 
10,000 
   
1,461,932 
 
 
Acquisition of real estate from entity under common control (09/17/14)
(1,190)
 
 
 
 
(1,190)
 
Issuance of common shares for convertible debt at $.0427 (2/23/15)
12,000 
 
 
 
51 
11,949 
 
Issuance of common shares for convertible debt at $.0427 (2/23/15) (In shares)
 
 
 
 
51,096 
 
 
Issuance of series C preferred shares for cash at $0.03333 (7/29/15)
3,099,990 
 
 
3,000 
 
96,990 
 
Issuance of series C preferred shares for cash at $0.03333 (7/29/15) (In shares)
 
 
 
3,000,000 
 
 
 
Issuance of common shares upon conversion of series C preferred shares (9/17/15)
(3,000,000)
 
 
(3,000)
2,999 
 
Issuance of common shares upon conversion of series C preferred shares (9/17/15) (In Shares)
 
 
 
(3,000,000)
1,091 
 
 
Net operating loss for the year ended
(342,939)
 
 
 
 
 
(342,939)
Balance at Dec. 31, 2015
$ 1,035,046 
$ 10 
$ 10 
    
$ 1,514 
$ 2,068,390 
$ (1,034,878)
Balance (In Shares) at Dec. 31, 2015
 
10,000 
10,000 
   
1,514,119 
 
 
Consolidated Statement of Stockholders' Equity (Parenthetical)
Dec. 31, 2015
Convertible Debt
Dec. 31, 2014
Building Improvements
Dec. 31, 2014
Series A Preferred Stock
Dec. 31, 2014
Series B Preferred Stock
Dec. 31, 2015
Series C Preferred Stock
Dec. 31, 2014
Common Stock
Shares issued price per share
$ 0.0427 
$ 1.00 
$ 0.10 
$ 0.50 
$ 0.03333 
$ 0.32 
Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash Flows from Operating Activities
 
 
Net Income (Loss)
$ (342,939)
$ (378,040)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
Depreciation and Amortization
13,739 
6,814 
Debt discount amortization
44,809 
26,272 
Impairment loss on investment
17,788 
30,000 
Change in Operating Assets and Liabilities:
 
 
Accounts Receivable
(125)
   
Prepaid Expenses
   
2,875 
Loan Receivable
(88)
   
Accounts Payable and Accrued Expenses
(21,397)
15,222 
Refundable Deposits
(100)
1,450 
Net Cash Used In Continuing Operating Activities:
(288,313)
(295,407)
Net Cash Provided By (Used In) Discontinued Operating Activities
1,516 
28,826 
Net Cash Used In Operating Activities:
(286,797)
(266,581)
Cash Flows from Investing Activities
 
 
Purchases of Property and Equipment
(103,516)
(327,155)
Deposits
   
(11,500)
Investments
   
(30,000)
Loans Advanced
(6,200)
   
Net Cash Used In Continuing Investing Activities
(109,716)
(368,655)
Net Cash Used In Discontinued Investing Activities
   
   
Net Cash Used In Investing Activities:
(109,716)
(368,655)
Cash Flows from Financing Activities
 
 
Repayment of Convertible Debt
(98,999)
111,000 
Proceeds from the Issuance of Preferred Stock
99,990 
6,000 
Proceeds from the Issuance of Common Stock
   
12,000 
Net Cash Provided By (Used In) Continuing Financing Activities
991 
129,000 
Net Cash Used In Discontinued Financing Activities
   
   
Net Cash Provided By Financing Activities:
991 
129,000 
Net Change in Cash & Cash Equivalents
(395,522)
(506,236)
Beginning Cash & Cash Equivalents
969,094 
1,475,330 
Ending Cash & Cash Equivalents
573,572 
969,094 
CASH PAID FOR:
 
 
Interest
34,489 
   
Taxes
   
   
Supplemental Disclosures of Noncash Investing and Financing Activities
 
 
Amount allocated to APIC associated with the purchase of real estate between entities under common control
(1,190)
   
Beneficial conversion feature of convertible debt cleared upon payoff as Additional Paid in Capital
12,000 
   
Issuance of 10,000 common shares for property and equipment
   
10,000 
Amount allocated to APIC associated with the purchase of real estate between entities under common control
   
4,440 
Beneficial conversion feature of convertible debt recorded as Additional Paid in Capital
    
$ 71,082 
Consolidated Statements of Cash Flows (Parenthetical) (Property, Plant and Equipment)
12 Months Ended
Dec. 31, 2014
Property, Plant and Equipment
 
Number of shares Issued for property and equipment
1,000 
Organization
Organization

Note 1 - Organization

 

Great Plains Holdings, Inc. (the “Company”) was incorporated under the laws of the state of Nevada on December 30, 1999 under the name LILM, Inc. The Company changed its name on December 3, 2013 as part of its plans to diversify its business through the acquisition and operation of commercial real estate, including but not limited to self-storage facilities, apartment buildings, 55+ senior manufactured homes communities, and other income producing properties. Historically, the Company has principally engaged in manufacture and marketing of the LiL Marc urinal used in the training of young boys, but is changing its focus to residential and commercial rental real estate as well as exploring other business opportunities.

Summary of Significant Accounting Policies
Summary of Significant Accounting Policies

Note 2 - Summary of Significant Accounting Policies

 

Use of Estimates

We use estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

 

Fair Value Measurements

The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:

 

Level 1 – Quoted prices in active markets for identical assets or liabilities;

 

Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and

 

Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

 

Accounting Method

The Company recognizes income and expenses based on the accrual method of accounting.

 

Advertising

The Company expenses all advertising costs as they are incurred.

 

Cash and Cash Equivalents

Cash and cash equivalents are defined as demand deposits, money market accounts and overnight investments at banks. Cash is maintained in banks insured by the FDIC for an aggregate of up to $250,000. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

 

Concentrations of Risk

Financial Instruments which potentially subject the Company to concentrations of risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents with major financial institutions. At December 31, 2015, the Company has $319,478 in excess of federally insured limits.

 

Dividend Policy

The Company has not yet adopted a policy regarding dividends.

 

Income Taxes

The Company utilizes the liability method of accounting for income taxes. Under the liability method deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases of the assets and liabilities and are measured using the enacted tax rates and laws that will be in effect, when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized.

 

Impairment of Long-lived Assets

The Company reviews long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on the undiscounted future cash flows of the asset. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as applicable. The Company reviews long-lived assets for impairment at the individual asset or the asset group level for which the lowest level of independent cash flows can be identified.  

 

Long Term Investments

Non-marketable equity investments are carried at cost. Investments held by the Company are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the investment may not be recoverable. In the event that facts and circumstances indicate that the cost may be impaired, an evaluation of recoverability would be performed. Impairment expense of $17,788 and $30,000 has been recorded on long term investments for the years ended December 31, 2015 and 2014, respectively.

 

Principles of Consolidation

The accompanying consolidated financials include the accounts of the Company and its subsidiaries from its inception. All significant intercompany accounts and balances have been eliminated in consolidation.

 

Property & Equipment

Property and equipment are stated at cost. The Company provides for depreciation and amortization using the straight-line method over the estimated useful lives of the various classes of property, as follows:

 

Machinery & Equipment 5 to 7 years
Furniture & Fixtures 5 to 7 years
Improvements 10 to 20 years
Building 40 years
Income Producing Properties 40 years

 

Expenditures for additions, improvements and betterments that extend the useful lives of existing assets, if material, are generally capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.

  

Recognition of Rental Income

Revenue from lease of residential and commercial properties is recognized when earned with the passage of time per the terms of the leases in effect.

 

Basic and Diluted Net Income (Loss) Per Share

Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of any common share rights unless the exercise becomes antidilutive and then the basic and diluted per share amounts are the same.  As of December 31, 2015 and 2014, the Company had 0 and 2,021,858 common stock equivalents outstanding related to the convertible notes payable.

 

Recent Accounting Pronouncements

The Company does not expect that the adoption of recent accounting pronouncements will have a material impact on its financial statements.

Property and Equipment
Property and Equipment

Note 3 - Property and Equipment

 

On September 17, 2014, the Company acquired a residential duplex located in Hanahan, South Carolina from DayBreak Capital, LLC, a related party. The real estate was purchased for a price of $83,402. Kent Campbell, the Company’s Chief Executive Officer is the majority shareholder of DayBreak Capital, LLC. Therefore, as this was a transaction between entities under common control, the Company recorded the cost of the land and buildings at historical cost. These amounts were $16,729 for the land, and $62,233 for the buildings (total cost of $78,962). The difference between the agreed upon cost and the historical cost was recorded to additional paid-in capital ($4,440).

 

On October 31, 2014, the Company acquired a mobile home located in Lady Lake, Florida. The real estate and improvements located on it were acquired from an unrelated party for a purchase price of $53,000 plus customary closing costs. The Company paid the purchase price in cash at closing.

 

On December 12, 2014, the Company acquired a mobile home located in Wildwood, Florida. The real estate and improvements located on it were acquired from an unrelated party for a purchase price of $29,000 plus customary closing costs. The Company paid the purchase price in cash at closing.

 

On December 22, 2014, the Company acquired a mobile home located in Wildwood, Florida. The real estate and improvements located on it were acquired from an unrelated party for a purchase price of $27,000 plus customary closing costs.  The Company paid the purchase price in cash at closing.

 

On March 9, 2015, the Company acquired a residential duplex located in Hanahan, South Carolina from DayBreak Capital, LLC, a related party. The real estate was purchased for a price of $66,815. Kent Campbell, the Company’s Chief Executive Officer is the majority shareholder of DayBreak Capital, LLC. Therefore, as this was a transaction between entities under common control, the Company recorded the cost of the land and buildings at historical cost. These amounts were $13,904 for the land, and $51,721 for the buildings (total cost of $65,625). The difference between the agreed upon cost and the historical cost was recorded to additional paid-in capital ($1,190).

  

Property and equipment are stated at cost and consist of the following categories as of December 31, 2015 and December 31, 2014:

 

  Dec. 31,
2015
  Dec. 31,
2014
 
Land  72,105   58,201 
Furniture & Fixtures  21,885   19,832 
Buildings  119,637   119,637 
Improvements  37,308   15,861 
Income Producing Properties  233,435   168,512 
Total Property & Equipment  484,370   382,043 
Less: Accumulated Depreciation & Amortization  (20,553)  (6,814)
         
Net Property and Equipment  463,817   375,229 
Long Term Investments and Deposits
Long Term Investments and Deposits

Note 4 - Long Term Investments and Deposits

 

On April 10, 2014, the Company purchased for a price of $30,000 a 1.67% interest in Texstar Preferred Partner Joint Venture III, LP (“Texstar”). Texstar owns a 60% net revenue interest in the Engleke Lease, an oil and gas lease covering the Austin Chalk, Eagle Ford and Buda reservoirs located in the Luling-Banyon field area in Guadalupe County, Texas. This lease contains 14 oil and gas wells that are employing re-stimulation and secondary recovery efforts with targeted remaining recoverable reserves of 2,990,000 barrels of oil. This investment is accounted for using the cost method of accounting. At December 31, 2014, the Company noted indicators of impairment due to the return on the investment not being what was anticipated. Accordingly, the Company performed an impairment analysis and based on that analysis determined the investment was fully impaired. Therefore, the Company recorded an impairment loss on this investment of $30,000 for the year ended December 31, 2014.

 

On December 10, 2014, the Company entered into a securities purchase (with subsequent amendment dated January 30, 2015) and royalty agreement with Bonjoe Gourmet Chips, LLC, (“Bonjoe”) a Florida limited liability company, and its members Joseph Trudel and Gilbert Hess. The Company delivered $11,500 under the original agreement, which was being held as a deposit until the exchange was complete. Additionally, the Company provided Bonjoe with a $6,200 working capital loan that accrued interest of $88 through March 31, 2015. As of March 31, 2015, the Company determined it would no longer pursue this opportunity and therefore determined an impairment loss was necessary. The Company recorded a related impairment loss of $17,788, as of March 31, 2015.

Convertible Debt
Convertible Debt

Note 5 - Convertible Debt

 

On August 22, 2014, the Company entered into a securities purchase agreement with KBM Worldwide, Inc. (“KBM”), whereby KBM agreed to invest $68,000 into the Company in exchange for the Company’s issuance of a convertible promissory note, which bears interest at 8% per annum. All outstanding principal and accrued interest on the Note is due and payable on the maturity date, which is May 18, 2015. The Note is convertible by KBM into common stock of the Company at any time during the conversion period, which begins February 18, 2015 (180 days after the issuance) and ends May 18, 2015 (at maturity). The conversion price for each share is 61% multiplied by the lowest average three day market price of the Common Stock during the ten trading days prior to the relevant notice of conversion.


On November 17, 2014, the Company entered into a securities purchase agreement with KBM Worldwide, Inc., whereby KBM agreed to invest $43,000 into the Company in exchange for the Company’s issuance of a convertible promissory note, which bears interest at 8% per annum. All outstanding principal and accrued interest on the Note is due and payable on the maturity date, which is August 19, 2015. The Note is convertible by KBM into common stock of the Company at any time during the conversion period, which begins May 16, 2015 (180 days after the issuance) and ends August 19, 2015 (at maturity). The conversion price for each share is 61% multiplied by the lowest average three day market price of the Common Stock during the ten trading days prior to the relevant notice of conversion.

 

We determined the conversion feature associated with these convertible notes should be accounted for under ASC 470, whereby a debt discount is recorded based on the intrinsic value. As such, we recorded a debt discount of $43,590 on August 22, 2014 and $27,492 for the notes described above. Amortization of the beneficial conversion feature triggered by this convertible note is reported as interest expense on the income statement. A total of $28,658 was recorded as interest expense for the year ended December 31, 2014, of which $26,272 related to debt discount amortization and $2,386 related to stated interest. A total of $50,621 was recorded as interest expense through March 19, 2015 (date notes were paid off – see below), of which $18,518 related to debt discount amortization, $1,314 related to stated interest, and $30,789 related to a prepayment premium.

 

On February 23, 2015, the Company issued 51,096 shares of common stock upon receipt of a conversion request from KBM, for $12,000 in convertible debt, associated with the August 22, 2014 promissory note.

 

On March 19, 2015, the Company paid both notes in full (including accrued interest) with available cash in the operating account. The remaining debt discount was amortized to interest expense ($26,291).

Stockholders' Equity
Stockholders' Equity

Note 6 - Stockholders’ Equity

 

As of December 31, 2015, the Company has authorized 320,000,000 shares, of which 300,000,000 are Common Stock, par value $0.001 per share with 1,514,172 shares of Common Stock issued and outstanding and 20,000,000 shares of Preferred Stock, par value $0.001 per share, with 1,000,000 shares designated as Series A Preferred Stock, $0.001 par with 10,000 shares of Series A Preferred Stock issued and outstanding, and 10,000 shares designated as Series B Preferred Stock, $.001 par with 10,000 shares of Series B Preferred issued and outstanding, and 3,500,000 shares designated as Series C Convertible Preferred Stock, $.001 with 0 shares issued and outstanding.

 

The Series A Preferred Stock has the following designations, rights, and preferences:

 

The stated value of each shares is $0.001;
Each share shall entitle the holder thereof to 300 votes on all matters submitted to a vote of the stockholders of the Company;
Except as otherwise provided in the Certificate of Designation, the Company’s Articles, or by law, the holders of Series A Preferred Stock shall have general voting rights and shall vote together as one class, with all holders of shares of any other capital stock of the Company, on all matters submitted to a vote of stockholders of the Company; and,
The holders of the Series A Preferred Stock shall not have any conversion rights.

 

The Series B Preferred Stock has the following designations, rights, and preferences:

 

The stated value of each shares is $0.001;
Each share shall entitle the holder thereof to 10,000 votes on all matters submitted to a vote of the stockholders of the Company. In the event that such votes do not total at least 51% of all votes, then the votes cast by the holders of the Series B preferred stock shall equal to 51% of all votes cast at any meeting of the Company’s stockholders or any issue put to the stockholders for voting;

 

Except as otherwise provided in the Certificate of Designation, the Company’s Articles, or by law, the holders of Series B Preferred Stock shall have general voting rights and shall vote together as one class, with all holders of shares of any other capital stock of the Company, on all matters submitted to a vote of stockholders of the Company; and,
The holders of the Series B Preferred Stock are not entitled to dividends or distributions.

 

The Series C Convertible Preferred Stock has the following designations, rights and preferences:

 

  the shares have no voting rights.
  each share is convertible at the option of the holder into eight shares of the Company’s common stock at any time after the Company merges or consolidates with or into another person. The rate of conversion is subject to adjustment as discussed below.
  each 500 shares are automatically convertible into one share of the Company’s common stock if the Company does not complete a merger within 50 days of the date the shares are issued.
  the conversion price of the Series C Preferred is subject to proportional adjustment in the event of stock splits, stock dividends and similar corporate events.
  the Series C Preferred shares are not convertible to the extent that (a) the number of shares of the Company’s common stock beneficially owned by the holder and (b) the number of shares of the Company’s common stock issuable upon the conversion of the Series C Preferred or otherwise would result in the beneficial ownership by holder of more than 4.99% of the Company’s then outstanding common stock. This ownership limitation can be increased or decreased to any percentage not exceeding 9.99% by the holder upon 61 days notice to us.

 

During the year ended December 31, 2014, the Company issued 6,818 common shares for cash of $12,000; 10,000 series A preferred shares for cash of $1,000; 1,818 common shares for services, valued at $10,000; and 10,000 series B preferred shares for cash of $5,000.

 

On February 23, 2015, the Company issued 51,096 shares of common stock upon receipt of a conversion request from KBM, for $12,000 in convertible debt, associated with the August 22, 2014 promissory note.

 

On July 29, 2015, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which the Company sold to that investor 3,000,000 shares of series C convertible preferred stock for cash of $99,990.00. The merger identified in the designations, rights and preferences of the series C convertible preferred did not occur within the allotted time and triggered the automatic conversion of the series C preferred shares into common shares at a rate of 2,750 to 1. The conversion of the series C preferred stock resulted in the issuance of 1,091shares of common stock on September 17, 2015.  

 

On October 26, 2015, the Company took action by written consent of the Company’s board of directors to approve a 1-for-5.5 reverse stock split of issued and outstanding common stock. The reverse stock split was completed and effective on November 25, 2015. All share references in these financial statements have been retroactively adjusted for this reverse stock split, unless otherwise noted.

Discontinued Operations
Discontinued Operations

Note 8 - Discontinued Operations

 

On December 31, 2014, the Board of Directors committed to a plan to discontinue operations of its subsidiary Lil Marc, Inc. (“Lil Marc”). Lil Marc manufactures, markets and sells the LiL Marc, a plastic boys’ toilet-training device. Due to declining sales and a competitor selling the same product for a price below the Company’s cost, the Company intends to discontinue this business. This decision represents a strategic shift in operations to focus efforts and resources on its real estate operations, oil and gas leasing property, and other business opportunities.

 

The assets and liabilities held for discontinued operations presented on the balance sheet as of December 31, 2015 and December 31, 2014 consisted of the following:

 

  Dec. 31,  Dec. 31 
 2015  2014 
Assets:      
Cash and Cash Equivalents 214  1,200 
Accounts Receivable  0   537 
Total Current Assets  214   1,737 
         
Current Liabilities:        
Accounts Payable  2   9 
Total Current Liabilities  2   9 

  

The income (loss) from discontinued operations presented in the income statement for the year ended December 31, 2015 and 2014, consisted of the following:

 

  Dec. 31,  Dec. 31, 
  2015  2014 
Revenue  33,572   16,074 
Cost of Goods Sold  (15,852)  (12,972)
Gross Profit  17,720   3,102 
Operating Expenses:        
Depreciation and Amortization  -   (2,457)
General and Administrative  (4,100)  (23,863)
Total Operating Expenses  (4,100)  (26,320)
Net Loss on Asset Disposal  -   (20,106)
Net Income (Loss) before Income Taxes  13,620   (43,325)
Income Tax Benefit  -   - 
Net Income (Loss) from Discontinued Operations  13,620   (43,325)
Income Taxes
Income Taxes

Note 9 – Income Taxes

 

On December 31, 2015, the Company had a net operating loss available for carryforward of $982,901. The income tax benefit of approximately $334,189 from the carryforward has been fully offset by a valuation allowance as we have determined the ability to use the future tax benefit is doubtful.  The net operating loss will expire starting in 2020.

 

Year Ended Estimated 
NOL 
Carryforward
 NOL 
Expires
 Estimated 
Tax Benefit 
from NOL
 Valuation
Allowance
  Net
Tax Benefit
 
2000 8,867 2020 3,015  (3,015)  - 
2001 13,537 2021 4,603  (4,603)  - 
2002 13,858 2022 4,712  (4,712)  - 
2003 18,081 2023 6,148  (6,148)  - 
2004 1,731 2024 589  (589)  - 
2005 12,692 2025 4,315  (4,315)  - 
2006 15,821 2026 5,379  (5,379)  - 
2007 19,881 2027 6,760  (6,760)  - 
2008 14,674 2028 4,989  (4,989)  - 
2009 16,971 2029 5,770  (5,770)  - 
2010 13,493 2030 4,558  (4,558)  - 
2011 11,825 2031 4,021  (4,021)  - 
2012 20,263 2032 6,889  (6,889)  - 
2013 80,228 2033 27,278  (27,278)  - 
2014 378,040 2034 128,534  (128,534)  - 
2015 342,939 2035 116,599  (116,599)  - 
 $982,901  $334,189 $(334,189) $- 

  

The total valuation allowance as of December 31, 2015 was $334,189, which increased by $116,599 for the year ended December 31, 2015.

 

As of December 31, 2015 and 2014, the Company has no unrecognized income tax benefits. The Company’s policy for classifying interest and penalties associated with unrecognized income tax benefits is to include such items as tax expense. No interest or penalties have been recorded during the years ended December 31, 2015, and 2014 and no interest or penalties have been accrued as of December 31, 2015 and 2014. As of December 31, 2015 and 2014, the Company did not have any amounts recorded pertaining to uncertain tax positions.

 

Federal and state laws impose substantial restrictions on the utilization of tax attributes in the event of an “ownership change,” as defined in Section 382 of the Internal Revenue Code. Currently, the Company is analyzing the change of control as a result of the February 5, 2016 subsequent event transaction (See Note 10). As a result of the ownership change, potential near term utilization of these assets will be reduced.

 

The tax years from 2013 and forward remain open to examination by federal and state authorities due to net operating loss and credit carryforwards. The Company is currently not under examination by the Internal Revenue Service or any other taxing authorities .

Subsequent Events
Subsequent Events

Note 10- Subsequent Events

 

On February 1, 2016, the Company issued 268,333 shares of its restricted common stock to its Placement Agent. Such shares were issued pursuant to a Placement Agent Agreement with the Company and services rendered in connection with a private placement of the Company’s securities.

 

On February 5, 2016, The Company, GPH Merger Sub, Inc., a Nevada corporation and wholly-owned subsidiary of GTPH (“Merger Sub”), and Jerrick Ventures, Inc., a privately-held Nevada corporation headquartered in New Jersey (“Jerrick”), entered into an Agreement and Plan of Merger (the “Agreement”) pursuant to which the Merger Sub was merged with and into Jerrick, with Jerrick surviving as a wholly-owned subsidiary of the Company (the “Merger”). The transaction (the “Closing”) took place on February 5, 2016 (the “Closing Date”). The Company acquired, through a reverse triangular merger, all of the outstanding capital stock of Jerrick in exchange for issuing Jerrick’s shareholders (the “Jerrick Shareholders”), pro-rata, a total of 28,500,000 shares of the Company’s common stock. GTPH shall assume 33,414 shares of Jerrick’s Series A Convertible Preferred Stock (the “Series A Preferred”) and 8,064 shares of Series B Convertible Preferred Stock (the “Series B Preferred”) and file the appropriate certificates of designation to reflect the rights, preferences and privileges of the Jerrick’s Series A Preferred and Series B Preferred. Jerrick shareholders that hold either Series A Preferred or Series B Preferred will be able to exchange such shares for the equivalent in GTPH on a one for one basis. Additionally, GTPH shall assume 12,391,667 outstanding common stock purchase warrants of Jerrick such that each Jerrick shareholder that holds a warrant to purchase shares of Jerrick common stock will by virtue of the Merger, be able to purchase the equivalent number of shares of GTPH Common Stock under the same terms and conditions.

   

In connection with the Merger, on February 5, 2016, the Company and Kent Campbell entered into a Spin-Off Agreement (the “Spin-Off Agreement”), pursuant to which Mr. Campbell purchased from the Company (i) all of the Company’s interest in Ashland Holdings, LLC, a Florida limited liability company, and (ii) all of the Company’s interest in Lil Marc, Inc., a Utah corporation, in exchange for the cancellation of 781,818 shares of the Parent Company’s Common Stock held by Mr. Campbell. In addition, Mr. Campbell assumed all debts, obligations and liabilities of the Company existing prior to the Merger, pursuant to the terms and conditions of the Spin-Off Agreement.


On February 5, 2016 and in conjunction with the Merger, the Company entered into a Share Exchange Agreement with Kent Campbell, Denis Espinoza and Sarah Campbell (the “Exchange Agreement”). Pursuant to the Exchange Agreement, (i) Kent Campbell cancelled 363,636 shares of the Company’s common stock, 6,000 shares of the Company’s Series A Preferred Stock and 10,000 shares of the Company’s Series B Preferred Stock in exchange for 1,648,881 shares of the Company’s Series D Preferred Stock, (ii) Denis Espinoza cancelled 58,951 shares of the Company’s common stock and 4,000 shares of the Company’s Series A Preferred Stock in exchange for 265,676 shares of the Company’s Series D Preferred Stock, and (iii) Sarah Campbell cancelled 21,818 shares of the Company’s common stock in exchange for 98,933 shares of the Company’s Series D Preferred Stock. 

 

In addition, on February 6, 2016, the Company entered into Stock Purchase Agreements (the “Purchase Agreements”) with three investors providing for the issuance and sale of an aggregate of 2,626,308 shares of the Company’s common stock, par value $0.001 per share, for an aggregate purchase price of $2,626.

 

The directors of GTPH have approved the Agreement and the transactions contemplated under the Agreement. The directors of Jerrick have approved the Agreement and the transactions contemplated thereunder and as of the Closing Date the shareholders of Jerrick will own approximately 92% of the Company’s common stock.

Summary of Significant Accounting Policies (Policies)

Use of Estimates

We use estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

Fair Value Measurements

The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:

 

Level 1 – Quoted prices in active markets for identical assets or liabilities;

 

Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and

 

Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

Accounting Method

The Company recognizes income and expenses based on the accrual method of accounting.

Advertising

The Company expenses all advertising costs as they are incurred.

Cash and Cash Equivalents

Cash and cash equivalents are defined as demand deposits, money market accounts and overnight investments at banks. Cash is maintained in banks insured by the FDIC for an aggregate of up to $250,000. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Concentrations of Risk

Financial Instruments which potentially subject the Company to concentrations of risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents with major financial institutions. At December 31, 2015, the Company has $319,478 in excess of federally insured limits.

Dividend Policy

The Company has not yet adopted a policy regarding dividends.

Income Taxes

The Company utilizes the liability method of accounting for income taxes. Under the liability method deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases of the assets and liabilities and are measured using the enacted tax rates and laws that will be in effect, when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized.

Impairment of Long-lived Assets

The Company reviews long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on the undiscounted future cash flows of the asset. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as applicable. The Company reviews long-lived assets for impairment at the individual asset or the asset group level for which the lowest level of independent cash flows can be identified.

Long Term Investments

Non-marketable equity investments are carried at cost. Investments held by the Company are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the investment may not be recoverable. In the event that facts and circumstances indicate that the cost may be impaired, an evaluation of recoverability would be performed. Impairment expense of $17,788 and $30,000 has been recorded on long term investments for the years ended December 31, 2015 and 2014, respectively.

Principles of Consolidation

The accompanying consolidated financials include the accounts of the Company and its subsidiaries from its inception. All significant intercompany accounts and balances have been eliminated in consolidation.

Property & Equipment

Property and equipment are stated at cost. The Company provides for depreciation and amortization using the straight-line method over the estimated useful lives of the various classes of property, as follows:

 

Machinery & Equipment5 to 7 years
Furniture & Fixtures5 to 7 years
Improvements10 to 20 years
Building40 years
Income Producing Properties40 years

 

Expenditures for additions, improvements and betterments that extend the useful lives of existing assets, if material, are generally capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.

Recognition of Rental Income

Revenue from lease of residential and commercial properties is recognized when earned with the passage of time per the terms of the leases in effect.

Basic and Diluted Net Income (Loss) Per Share

Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of any common share rights unless the exercise becomes antidilutive and then the basic and diluted per share amounts are the same.  As of December 31, 2015 and 2014, the Company had 0 and 2,021,858 common stock equivalents outstanding related to the convertible notes payable.

Recent Accounting Pronouncements

The Company does not expect that the adoption of recent accounting pronouncements will have a material impact on its financial statements.

Summary of Significant Accounting Policies (Tables)
Schedule of property plant and equipment estimated useful life

 Machinery & Equipment5 to 7 years
 Furniture & Fixtures5 to 7 years
 Improvements10 to 20 years
 Building40 years
 Income Producing Properties40 years

Property and Equipment (Tables)
Summary of property and equipment
  Dec. 31,
2015
  Dec. 31,
2014
 
Land  72,105   58,201 
Furniture & Fixtures  21,885   19,832 
Buildings  119,637   119,637 
Improvements  37,308   15,861 
Income Producing Properties  233,435   168,512 
Total Property & Equipment  484,370   382,043 
Less: Accumulated Depreciation & Amortization  (20,553)  (6,814)
         
Net Property and Equipment  463,817   375,229 
Discontinued Operations (Tables)
  Dec. 31,  Dec. 31 
 2015  2014 
Assets:      
Cash and Cash Equivalents 214  1,200 
Accounts Receivable  0   537 
Total Current Assets  214   1,737 
         
Current Liabilities:        
Accounts Payable  2   9 
Total Current Liabilities  2   9 

  Dec. 31,  Dec. 31, 
  2015  2014 
Revenue  33,572   16,074 
Cost of Goods Sold  (15,852)  (12,972)
Gross Profit  17,720   3,102 
Operating Expenses:        
Depreciation and Amortization  -   (2,457)
General and Administrative  (4,100)  (23,863)
Total Operating Expenses  (4,100)  (26,320)
Net Loss on Asset Disposal  -   (20,106)
Net Income (Loss) before Income Taxes  13,620   (43,325)
Income Tax Benefit  -   - 
Net Income (Loss) from Discontinued Operations  13,620   (43,325)
Income Taxes (Tables)
Summary of Income Taxes

Year Ended Estimated 
NOL 
Carryforward
 NOL 
Expires
 Estimated 
Tax Benefit 
from NOL
 Valuation
Allowance
  Net
Tax Benefit
 
2000 8,867 2020 3,015  (3,015)  - 
2001 13,537 2021 4,603  (4,603)  - 
2002 13,858 2022 4,712  (4,712)  - 
2003 18,081 2023 6,148  (6,148)  - 
2004 1,731 2024 589  (589)  - 
2005 12,692 2025 4,315  (4,315)  - 
2006 15,821 2026 5,379  (5,379)  - 
2007 19,881 2027 6,760  (6,760)  - 
2008 14,674 2028 4,989  (4,989)  - 
2009 16,971 2029 5,770  (5,770)  - 
2010 13,493 2030 4,558  (4,558)  - 
2011 11,825 2031 4,021  (4,021)  - 
2012 20,263 2032 6,889  (6,889)  - 
2013 80,228 2033 27,278  (27,278)  - 
2014 378,040 2034 128,534  (128,534)  - 
2015 342,939 2035 116,599  (116,599)  - 
 $982,901  $334,189 $(334,189) $- 
Summary of Significant Accounting Policies (Details)
12 Months Ended
Dec. 31, 2015
Machinery & Equipment [Member] |
Minimum [Member]
 
Property and equipment estimated useful life
5 years 
Machinery & Equipment [Member] |
Maximum [Member]
 
Property and equipment estimated useful life
7 years 
Furniture & Fixtures [Member] |
Minimum [Member]
 
Property and equipment estimated useful life
5 years 
Furniture & Fixtures [Member] |
Maximum [Member]
 
Property and equipment estimated useful life
7 years 
Improvements [Member] |
Minimum [Member]
 
Property and equipment estimated useful life
10 years 
Improvements [Member] |
Maximum [Member]
 
Property and equipment estimated useful life
20 years 
Buildings [Member]
 
Property and equipment estimated useful life
40 years 
Income Producing Properties [Member]
 
Property and equipment estimated useful life
40 years 
Summary of Significant Accounting Policies (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Summary of Significant Accounting Policies [Abstract]
 
 
FDIC Insured amount
$ 250,000 
 
Impairment expenses
17,788 
30,000 
Cash in excess of federally insured limits
$ 319,478 
 
Common stock outstanding related to convertible notes payable
2,021,858 
Property and Equipment (Details) (USD $)
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Total Property & Equipment
$ 412,265 
$ 323,842 
Less: Accumulated Depreciation & Amortization
(20,553)
(6,814)
Net Property and Equipment
463,817 
375,229 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total Property & Equipment
72,105 
58,201 
Furniture & Fixtures [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total Property & Equipment
21,885 
19,832 
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total Property & Equipment
119,637 
119,637 
Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total Property & Equipment
37,308 
15,861 
Income Producing Properties [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Total Property & Equipment
$ 233,435 
$ 168,512 
Property and Equipment (Details Textual) (USD $)
0 Months Ended 12 Months Ended 0 Months Ended
Mar. 9, 2015
Sep. 17, 2014
Dec. 31, 2015
Dec. 31, 2014
Mar. 9, 2015
Land [Member]
Sep. 17, 2014
Land [Member]
Mar. 9, 2015
Buildings [Member]
Sep. 17, 2014
Buildings [Member]
Oct. 31, 2014
Lady Lake, FL Mobile Home [Member]
Dec. 12, 2014
Wildwood, FL Mobile Home [Member]
Dec. 22, 2014
Wildwood, FL Mobile Home 2 [Member]
Mar. 9, 2015
Hanahan, SC Residential Duplex [Member]
Purchase price of property
 
$ 83,402 
$ 103,516 
$ 327,155 
 
 
 
 
$ 53,000 
$ 29,000 
$ 27,000 
$ 66,815 
Payments to acquire real estate
65,625 
78,962 
 
 
13,904 
16,729 
51,721 
62,233 
 
 
 
 
Amount allocated to APIC associated with the purchase of real estate between entities under common control
 
 
$ (1,190)
$ (4,440)
 
 
 
 
 
 
 
 
Long Term Investments and Deposits (Details) (USD $)
0 Months Ended 1 Months Ended 12 Months Ended
Dec. 10, 2014
Apr. 10, 2014
Wells
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Long Term Investments and Deposits (Textual)
 
 
 
 
 
Purchase price of investments
$ 11,500 
$ 30,000 
 
 
 
Investment interest rate
 
167.00% 
 
 
 
Net revenue percentage
 
60.00% 
 
 
 
Number of oil and gas wells
 
14 
 
 
 
Secondary recovery efforts with targeted recoverable reserves of barrels
 
2,990,000 
 
 
 
Impairment loss on investment
 
 
 
17,788 
30,000 
Working capital loan
 
 
6,200 
 
 
Accrued interest
 
 
$ 88 
 
 
Convertible Debt (Details) (USD $)
0 Months Ended 12 Months Ended 0 Months Ended
Mar. 19, 2015
Feb. 23, 2015
Dec. 31, 2015
Dec. 31, 2014
Nov. 17, 2014
KBM Worldwide, Inc. [Member]
Aug. 22, 2014
KBM Worldwide, Inc. [Member]
Debt Conversion [Line Items]
 
 
 
 
 
 
Securities purchase agreement of debt
 
 
 
 
$ 43,000 
$ 68,000 
Interest rate of convertible debt
 
 
 
 
8.00% 
8.00% 
Maturity date of convertible debt
 
 
 
 
Aug. 19, 2015 
May 18, 2015 
Debt conversion price
 
 
 
 
61.00% 
61.00% 
Convertible debt net of discount
 
 
44,810 
27,492 
43,590 
Interest expense
50,621 
 
76,913 
28,658 
 
 
Debt discount amortization
18,518 
 
44,809 
26,272 
 
 
Interest expense of debt
1,314 
 
 
2,386 
 
 
Common stock shares issued upon conversion
 
51,096 
 
 
 
 
Conversion value of debt
 
12,000 
 
 
 
 
Interest and debt expense
26,291 
 
 
 
 
 
Debt prepayment premium
$ 30,789 
 
 
 
 
 
Stockholders' Equity (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 1 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Feb. 23, 2015
KBM Worldwide, Inc. [Member]
Dec. 31, 2015
Common Stock [Member]
Dec. 31, 2014
Common Stock [Member]
Dec. 31, 2015
Series A Preferred Stock
Dec. 31, 2014
Series A Preferred Stock
Dec. 31, 2015
Series B Preferred Stock
Dec. 31, 2014
Series B Preferred Stock
Sep. 17, 2015
Series C Convertible Preferred Stock
Dec. 31, 2015
Series C Convertible Preferred Stock
Dec. 31, 2014
Series C Convertible Preferred Stock
Jul. 29, 2015
Series C Convertible Preferred Stock
Investor [Member]
Dec. 31, 2015
Preferred Stock [Member]
Common stock, shares authorized
300,000,000 
300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, par value
$ 0.001 
$ 0.001 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, shares issued
1,514,119 
1,461,932 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, shares outstanding
1,514,119 
1,461,932 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock, shares authorized
 
 
 
 
 
1,000,000 
1,000,000 
10,000 
10,000 
 
3,500,000 
3,500,000 
 
20,000,000 
Preferred stock, par value
 
 
 
 
 
$ 0.001 
$ 0.001 
$ 0.001 
$ 0.001 
 
$ 0.001 
$ 0.001 
 
$ 0.001 
Preferred stock, shares issued
 
 
 
 
 
10,000 
10,000 
10,000 
10,000 
 
 
10,000 
Preferred stock, shares outstanding
 
 
 
 
 
10,000 
10,000 
10,000 
10,000 
 
 
10,000 
Preferred stock voting rights
 
 
 
 
 
Each share shall entitle the holder thereof to 300 votes on all matters submitted to a vote of the stockholders of the Company; 
 
Each share shall entitle the holder thereof to 10,000 votes on all matters submitted to a vote of the stockholders of the Company. In the event that such votes do not total at least 51% of all votes, then the votes cast by the holders of the Series B preferred stock shall equal to 51% of all votes cast at any meeting of the Company?s stockholders or any issue put to the stockholders for voting; 
 
 
 
 
 
 
Number of shares sold during period
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
Aggregate consideration received upon sale of stock
 
 
 
 
 
 
 
 
 
 
 
 
$ 99,990.00 
 
Stock issued for cash
 
 
 
 
12,000 
 
1,000 
 
5,000 
 
 
 
 
 
Stock issued for cash, shares
 
 
 
 
6,818 
 
10,000 
 
10,000 
 
 
 
 
 
Conversion rate
 
 
 
 
 
 
 
 
 
 
500 to 1 
 
 
 
Stock issued for service
 
 
 
 
10,000 
 
 
 
 
 
 
 
 
 
Stock issued for service, shares
 
 
 
 
1,818 
 
 
 
 
 
 
 
 
 
Shares issued upon conversion
 
 
51,096 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common shares for convertible debt
$ 12,000 
 
$ 12,000 
$ 51 
 
 
 
 
 
 
 
 
 
 
Debt conversion rate
 
 
 
 
 
 
 
 
 
series C preferred shares into common shares at a rate of 2,750 to 1 
 
 
 
 
Issuance of common shares for cash
 
 
 
 
 
 
 
 
1,091 
 
 
 
 
Total number of shares authorized
320,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares conversion merger description
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of beneficial ownership
 
 
 
 
 
 
 
 
 
 
0.0499% 
 
 
 
Percentage of ownership limitation holder
 
 
 
 
 
 
 
 
 
 
0.0999% 
 
 
 
Description of preferred shares
 
 
 
 
 
 
 
 
 
 
 
 
 
Each 500 shares are automatically convertible into one share of the Company's common stock if the Company does not complete a merger within 50 days of the date the shares are issued.
The number of shares of the Company's common stock issuable upon the conversion of the Series C Preferred or otherwise would result in the beneficial ownership by holder of more than 4.99% of the Company?s then outstanding common stock. This ownership limitation can be increased or decreased to any percentage not exceeding 9.99% by the holder upon 61 days notice to us.
Discontinued Operations (Details) (USD $)
Dec. 31, 2015
Dec. 31, 2014
Assets:
 
 
Cash and Cash Equivalents
$ 214 
$ 1,200 
Accounts Receivable
537 
Total Current Assets
214 
1,737 
Current Liabilities:
 
 
Accounts Payable
Total Current Liabilities
$ 2 
$ 9 
Discontinued Operations (Details 1) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Discontinued Operations [Abstract]
 
 
Revenue
$ 33,572 
$ 16,074 
Cost of Goods Sold
(15,852)
(12,972)
Gross Profit
17,720 
3,102 
Operating Expenses:
 
 
Depreciation and Amortization
   
(2,457)
General and Administrative
(4,100)
(23,863)
Total Operating Expenses
(4,100)
(26,320)
Net Loss on Asset Disposal
   
(20,106)
Net Income (Loss) before Income Taxes
13,620 
(43,325)
Income Tax Benefit
   
   
Net Income (Loss) from Discontinued Operations
$ 13,620 
$ (43,325)
Income Taxes (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Dec. 31, 2007
Dec. 31, 2006
Dec. 31, 2005
Dec. 31, 2004
Dec. 31, 2003
Dec. 31, 2002
Dec. 31, 2001
Dec. 31, 2000
Income Taxes [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated NOL Carryforward
$ 342,939 
$ 378,040 
$ 80,228 
$ 20,263 
$ 11,825 
$ 13,493 
$ 16,971 
$ 14,674 
$ 19,881 
$ 15,821 
$ 12,692 
$ 1,731 
$ 18,081 
$ 13,858 
$ 13,537 
$ 8,867 
NOL Expires
Dec. 31, 2035 
Dec. 31, 2034 
Dec. 31, 2033 
Dec. 31, 2032 
Dec. 31, 2031 
Dec. 31, 2030 
Dec. 31, 2029 
Dec. 31, 2028 
Dec. 31, 2027 
Dec. 31, 2026 
Dec. 31, 2025 
Dec. 31, 2024 
Dec. 31, 2023 
Dec. 31, 2022 
Dec. 31, 2021 
Dec. 31, 2020 
Estimated Tax Benefit from NOL
116,599 
128,534 
27,278 
6,889 
4,021 
4,558 
5,770 
4,989 
6,760 
5,379 
4,315 
589 
6,148 
4,712 
4,603 
3,015 
Valuation Allowance
(116,599)
(128,534)
(27,278)
(6,889)
(4,021)
(4,558)
(5,770)
(4,989)
(6,760)
(5,379)
(4,315)
(589)
(6,148)
(4,712)
(4,603)
(3,015)
Net Tax Benefit
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
Total Estimated NOL Carryforward
982,901 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Estimated Tax Benefit from NOL
334,189 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Valuation Allowance
$ (334,189)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes (Details Textual) (USD $)
12 Months Ended
Dec. 31, 2015
Income Taxes (Textual)
 
Net operating loss carryforward
$ 982,901 
Income tax benefit
334,189 
Valuation allowance
(334,189)
Increased valuation allowance
$ 116,599 
Operating loss carryforwards, expiration date
Dec. 31, 2020 
Subsequent Events (Details) (USD $)
12 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2014
Dec. 31, 2015
Feb. 5, 2016
Subsequent Event [Member]
Feb. 6, 2016
Subsequent Event [Member]
Stock Purchase Agreements [Member]
Number
Feb. 5, 2016
Subsequent Event [Member]
Kent Campbell [Member]
Spin-Off Agreement [Member]
Feb. 5, 2016
Subsequent Event [Member]
Kent Campbell [Member]
Exchange Agreement (Member)
Feb. 5, 2016
Subsequent Event [Member]
Denis Espinoza [Member]
Exchange Agreement (Member)
Feb. 5, 2016
Subsequent Event [Member]
Sarah Campbell [Member]
Exchange Agreement (Member)
Feb. 5, 2016
Subsequent Event [Member]
Series A Convertible Preferred Stock (Member)
Kent Campbell [Member]
Exchange Agreement (Member)
Feb. 5, 2016
Subsequent Event [Member]
Series A Convertible Preferred Stock (Member)
Denis Espinoza [Member]
Exchange Agreement (Member)
Feb. 5, 2016
Subsequent Event [Member]
Series B Convertible Preferred Stock (Member)
Kent Campbell [Member]
Exchange Agreement (Member)
Feb. 5, 2016
Subsequent Event [Member]
Series D Preferred Stock [Member]
Kent Campbell [Member]
Exchange Agreement (Member)
Feb. 5, 2016
Subsequent Event [Member]
Series D Preferred Stock [Member]
Denis Espinoza [Member]
Exchange Agreement (Member)
Feb. 5, 2016
Subsequent Event [Member]
Series D Preferred Stock [Member]
Sarah Campbell [Member]
Exchange Agreement (Member)
Feb. 5, 2016
Subsequent Event [Member]
Jerrick Ventures Inc [Member]
Feb. 6, 2016
Subsequent Event [Member]
Jerrick Ventures Inc [Member]
Feb. 5, 2016
Subsequent Event [Member]
Jerrick Ventures Inc [Member]
Series A Convertible Preferred Stock (Member)
Feb. 5, 2016
Subsequent Event [Member]
Jerrick Ventures Inc [Member]
Series B Convertible Preferred Stock (Member)
Subsequent Events (Textual)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common stock
 
 
28,500,000 
2,626,308 
 
 
 
 
 
 
 
 
 
 
 
 
33,414 
8,064 
Issuance of common stock value
$ 12,000 
 
 
$ 2,626 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, par value
$ 0.001 
$ 0.001 
 
$ 0.001 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrants purchase of common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,391,667 
 
 
 
Cancelled of common stock
 
 
 
 
781,818 
363,636 
58,951 
21,818 
6,000 
4,000 
10,000 
1,648,881 
265,676 
98,933 
 
 
 
 
Ownership percentage of common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
92.00% 
 
 
Number of investor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted common stock
 
 
268,333