JERRICK MEDIA HOLDINGS, INC., 10-Q filed on 8/14/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2015
Aug. 8, 2015
Document And Entity Information
 
 
Entity Registrant Name
Great Plains Holdings, Inc. 
 
Entity Central Index Key
0001357671 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2015 
 
Amendment Flag
false 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Smaller Reporting Company 
 
Entity Common Stock, Shares Outstanding
 
8,321,655 
Document Fiscal Period Focus
Q2 
 
Document Fiscal Year Focus
2015 
 
Condensed Consolidated Balance Sheets (USD $)
Jun. 30, 2015
Dec. 31, 2014
Current Assets
 
 
Cash and Cash Equivalents
$ 611,189 
$ 969,094 
Assets held for discontinued operations
6,648 
1,737 
Total Current Assets
617,837 
970,831 
Property and Equipment
 
 
Property and Equipment
390,950 
323,842 
Less: Accumulated Depreciation
(13,393)
(6,814)
Construction in Progress
4,355 
   
Land
72,105 
58,201 
Net Property and Equipment
454,017 
375,229 
Other Assets
 
 
Deposits
   
11,500 
Total Other Assets
   
11,500 
Total Assets
1,071,854 
1,357,560 
Current Liabilities
 
 
Accounts Payable and Accrued Expenses
195 
22,726 
Convertible Debt (net of discount of $0 and $44,810)
   
66,190 
Liabilities held for discontinued operations
20 
Total Current Liabilities
215 
88,925 
Long-Term Liabilities
 
 
Refundable Deposits
1,950 
1,450 
Total Long-Term Liabilities
1,950 
1,450 
Total Liabilities
2,165 
90,375 
Stockholders' Equity
 
 
Common stock, 300,000,000 shares authorized, $.001 par value, 8,321,655 and 8,040,625 shares issued and outstanding, respectively
8,322 
8,041 
Additional Paid in Capital
1,961,592 
1,951,063 
Accumulated Deficit
(900,245)
(691,939)
Total Stockholders' Equity
1,069,689 
1,267,185 
Total Liabilities and Stockholders' Equity
1,071,854 
1,357,560 
Series A Preferred Stock [Member]
 
 
Stockholders' Equity
 
 
Preferred stock, 20,000,000 shares authorized
10 
10 
Series B Preferred Stock [Member]
 
 
Stockholders' Equity
 
 
Preferred stock, 20,000,000 shares authorized
$ 10 
$ 10 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2015
Dec. 31, 2014
Convertible debt net of discount
$ 0 
 
Preferred stock, par value
$ 0.001 
 
Preferred stock, shares authorized
20,000,000 
 
Preferred stock, shares issued
10,000 
 
Preferred stock, shares outstanding
10,000 
 
Common stock, shares authorized
300,000,000 
300,000,000 
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares issued
8,321,655 
8,040,625 
Common stock, shares outstanding
8,321,655 
8,040,625 
Series A Preferred Stock [Member]
 
 
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 [Member]
 
 
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 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Sales
 
 
 
 
Sales Revenue
$ 13,606 
$ 684 
$ 24,703 
$ 2,034 
Total Sales
13,606 
684 
24,703 
2,034 
Operating Expenses
 
 
 
 
Depreciation and Amortization
3,393 
1,659 
6,579 
2,761 
General and Administrative
41,932 
52,846 
141,910 
123,183 
Impairment loss on investment
   
   
17,788 
   
Total Operating Expenses
45,325 
54,505 
166,277 
125,944 
Operating Loss
(31,719)
(53,821)
(141,574)
(123,910)
Other Income (Expenses)
 
 
 
 
Interest Expense
   
   
(76,912)
   
Investment Income
   
   
281 
   
Other Income
1,000 
   
1,000 
   
Total Other Income (Expenses)
1,000 
   
(75,631)
   
Net Loss from Continuing Operations before Income Taxes
(30,719)
(53,821)
(217,205)
(123,910)
Net Loss from Continuing Operations
(30,719)
(53,821)
(217,205)
(123,910)
Income (Loss) on discontinued operations - net of tax
5,951 
208 
8,899 
(5,959)
Net Loss
$ (24,768)
$ (53,613)
$ (208,306)
$ (129,869)
Loss per share of common stock (basic and diluted) continuing operations
$ 0.00 
$ (0.01)
$ (0.03)
$ (0.02)
Loss per share of common stock (basic and diluted) discontinued operations
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Total loss per share of common stock (basic and diluted)
$ 0.00 
$ (0.01)
$ (0.03)
$ (0.02)
Weighted average shares outstanding (basic and diluted)
8,321,655 
8,030,625 
8,239,364 
8,030,625 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash Flows from Operating Activities
 
 
Net Income (Loss)
$ (208,306)
$ (129,869)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
Depreciation and Amortization
6,579 
2,761 
Debt discount amortization
44,809 
   
Impairment loss on investment
17,788 
   
Change in Operating Assets and Liabilities:
 
 
Prepaid Assets
   
2,875 
Loan Receivable
(88)
   
Accounts Payable and Accrued Expenses
(22,511)
(7,488)
Refundable Deposits
500 
500 
Net Cash Used In Continuing Operating Activities
(161,229)
(131,221)
Net Cash Provided By (Used In) Discontinued Operating Activities
(4,920)
5,959 
Net Cash Used In Operating Activities:
(166,149)
(125,262)
Cash Flows from Investing Activities
 
 
Purchases of Property and Equipment
(86,557)
(124,691)
Investments
   
(34,000)
Loans Advanced
(6,200)
   
Net Cash Used In Continuing Investing Activities
(92,757)
(158,691)
Net Cash Used In Discontinued Investing Activities
   
   
Net Cash Used In Investing Activities:
(92,757)
(158,691)
Cash Flows from Financing Activities
 
 
Repayment of Convertible Debt
(98,999)
   
Proceeds from the Issuance of Preferred Stock
   
1,000 
Proceeds from the Issuance of Common Stock
   
12,000 
Net Cash Provided By (Used In) Continuing Financing Activities
(98,999)
13,000 
Net Cash Used In Discontinued Financing Activities
   
   
Net Cash Provided By (Used In) Financing Activities:
(98,999)
13,000 
Net Change in Cash & Cash Equivalents
(357,905)
(270,953)
Beginning Cash & Cash Equivalents
969,094 
1,475,331 
Ending Cash & Cash Equivalents
611,189 
1,204,378 
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 against Additional Paid in Capital
$ 12,000 
$ 0 
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 changed its focus to residential and commercial rental real estate as well as exploring other business opportunities.

 

The accompanying unaudited consolidated financial statements have been prepared by the Company’s management in conformity with accounting principles generally accepted in the United States of America. The consolidated financial statements are prepared in accordance with the requirements for unaudited interim periods, and consequently, do not include all disclosures required to be made in conformity with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.

 

Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that can be expected for the year ending December 31, 2015.

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 of Financial Instruments

 

The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than a forced sale or liquidation. Significant differences can arise between the fair value and carrying amount of financial instruments that are recognized at historical cost amounts. The carrying value of the company’s financial assets and liabilities approximate the fair value of the short maturity of those instruments.

 

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 June 30, 2015, the Company has $347,954 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 $0 has been recorded on long-lived assets for the periods ended June 30, 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.

 

Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In the event that facts and circumstances indicate that the cost of any long-lived assets may be impaired, an evaluation of recoverability would be performed.

 

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.

 

Sales Taxes

 

The State of Florida imposes a sales tax ranging from 6.0% to 7.5% on all of the Company’s sales delivered within the State. The Company collects that sales tax from customers and remits the entire amount to the State. The Company’s accounting policy is to exclude the tax collected and remitted to the State from revenue and cost of sales.

 

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 June 30, 2015 and 2014, there were no common stock equivalents outstanding.

 

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 June 30, 2015 and December 31, 2014:

 

    June 30, 2015   December 31, 2014
Land     72,105       58,201  
Furniture & Fixtures     21,885       19,832  
Buildings     119,637       119,637  
Improvements     24,705       15,861  
Income Producing Properties     224,723       168,512  
Total Property & Equipment     463,055       382,043  
Construction in Progress     4,355       0  
Less: Accumulated Depreciation & Amortization     (13,393 )     (6,814 )
                 
Net Property and Equipment     454,017       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 281,080 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 June 30, 2015, the Company has authorized 320,000,000 shares, of which 300,000,000 are Common Stock, par value $0.001 per share with 8,321,655 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 as of December 31, 2014.

 

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.

 

On May 3, 2014, the Company issued 10,000 shares of its common stock for the acquisition of assets classified as Buildings & Improvements. These shares were valued based on the fair value of service provided ($10,000).

 

During the year ended December 31, 2014, the Company issued 37,500 common shares for cash of $12,000; 10,000 series A preferred shares for cash of $1,000; 10,000 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 281,080 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.

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 June 30, 2015 and December 31, 2014 consisted of the following:

 

    June 30, 2015   December 31, 2014
Assets:                
Cash and Cash Equivalents     6,648       1,200  
Accounts Receivable     0       537  
Total Current Assets     6,648       1,737  
                 
Current Liabilities:                
Accounts Payable     20       9  
Total Current Liabilities     20       9  

 

The losses from discontinued operations presented in the income statement for the three months ended June 30, 2015 and 2014, consisted of the following:

 

    June 30, 2015   June 30, 2014
Revenue     13,892       3,813  
Cost of Goods Sold     (6,582 )     (592 )
Gross Profit     7,310       3,221  
Operating Expenses:                
Depreciation and Amortization     -         (615 )
General and Administrative     (1,359 )     (2,398 )
Total Operating Expenses     (1,359 )     (3,013 )
                 
Net Income (Loss) before Income Taxes     5,951       208  
Income Tax Benefit     -       -  
Net Income (Loss) from Discontinued Operations     5,951       208  

 

The losses from discontinued operations presented in the income statement for the six months ended June 30, 2015 and 2014, consisted of the following:

 

    June 30, 2015   June 30, 2014
Revenue     22,204       8,848  
Cost of Goods Sold     (10,294 )     (2,010 )
Gross Profit     11,910       6,838  
Operating Expenses:                
Depreciation and Amortization     -       (1,229 )
General and Administrative     (3,011 )     (11,568 )
                 
Total Operating Expenses     (3,011 )     (12,797 )
                 
Net Income (Loss) before Income Taxes     8,899       (5,959 )
Income Tax Benefit     -       -  
Net Income (Loss) from Discontinued Operations     8,899       (5,959 )

Subsequent Events
Subsequent Events

Note 9 - Subsequent Events

 

On July 28, 2015, the Company filed a certificate of designation, preferences and rights of Series C preferred stock (the “Certificate of Designation”) with the Secretary of State of the State of Nevada to designate 3,500,000 shares of the Company’s previously authorized preferred stock as Series C preferred stock. The Certificate of Designation and its filing was approved by the Company’s board of directors on July 28, 2015 without shareholder approval as provided for in the Company’s articles of incorporation and under Nevada law.

 

The designations, rights and preferences of the Series C Preferred include:

 

  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 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.

 

On July 29, 2015, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which the Company issued and sold to that investor 3,000,000 shares of the Company’s Series C Convertible Preferred Stock (“Series C Preferred”) at a price of $0.03333 per share for an aggregate of $99,990.00. The issuance of the Series C Preferred was exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance on an exemption provided by Section 4(a)(2) of the Securities Act because, among other things, the transaction did not involve a public offering and the purchaser acquired the securities for investment and not resale.

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 of Financial Instruments

 

The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than a forced sale or liquidation. Significant differences can arise between the fair value and carrying amount of financial instruments that are recognized at historical cost amounts. The carrying value of the company’s financial assets and liabilities approximate the fair value of the short maturity of those instruments.

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 June 30, 2015, the Company has $347,954 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 $0 has been recorded on long-lived assets for the periods ended June 30, 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.

 

Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. In the event that facts and circumstances indicate that the cost of any long-lived assets may be impaired, an evaluation of recoverability would be performed.

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.

Sales Taxes

 

The State of Florida imposes a sales tax ranging from 6.0% to 7.5% on all of the Company’s sales delivered within the State. The Company collects that sales tax from customers and remits the entire amount to the State. The Company’s accounting policy is to exclude the tax collected and remitted to the State from revenue and cost of sales.

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 June 30, 2015 and 2014, there were no common stock equivalents outstanding.

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

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

Property and Equipment (Tables)
Summary of Property and Equipment

Property and equipment are stated at cost and consist of the following categories as of June 30, 2015 and December 31, 2014:

 

    June 30, 2015   December 31, 2014
Land     72,105       58,201  
Furniture & Fixtures     21,885       19,832  
Buildings     119,637       119,637  
Improvements     24,705       15,861  
Income Producing Properties     224,723       168,512  
Total Property & Equipment     463,055       382,043  
Construction in Progress     4,355       0  
Less: Accumulated Depreciation & Amortization     (13,393 )     (6,814 )
                 
Net Property and Equipment     454,017       375,229  

Discontinued Operations (Tables)
Schedule of Disposal Group Discontinued Operations Presented in Financial Statements

The assets and liabilities held for discontinued operations presented on the balance sheet as of June 30, 2015 and December 31, 2014 consisted of the following:

 

    June 30, 2015   December 31, 2014
Assets:                
Cash and Cash Equivalents     6,648       1,200  
Accounts Receivable     0       537  
Total Current Assets     6,648       1,737  
                 
Current Liabilities:                
Accounts Payable     20       9  
Total Current Liabilities     20       9  

 

The losses from discontinued operations presented in the income statement for the three months ended June 30, 2015 and 2014, consisted of the following:

 

    June 30, 2015   June 30, 2014
Revenue     13,892       3,813  
Cost of Goods Sold     (6,582 )     (592 )
Gross Profit     7,310       3,221  
Operating Expenses:                
Depreciation and Amortization     -         (615 )
General and Administrative     (1,359 )     (2,398 )
Total Operating Expenses     (1,359 )     (3,013 )
                 
Net Income (Loss) before Income Taxes     5,951       208  
Income Tax Benefit     -       -  
Net Income (Loss) from Discontinued Operations     5,951       208  

 

The losses from discontinued operations presented in the income statement for the six months ended June 30, 2015 and 2014, consisted of the following:

 

    June 30, 2015   June 30, 2014
Revenue     22,204       8,848  
Cost of Goods Sold     (10,294 )     (2,010 )
Gross Profit     11,910       6,838  
Operating Expenses:                
Depreciation and Amortization     -       (1,229 )
General and Administrative     (3,011 )     (11,568 )
                 
Total Operating Expenses     (3,011 )     (12,797 )
                 
Net Income (Loss) before Income Taxes     8,899       (5,959 )
Income Tax Benefit     -       -  
Net Income (Loss) from Discontinued Operations     8,899       (5,959 )

Summary of Significant Accounting Policies (Details Narrative) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Mar. 31, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Cash, FDIC Insured Amount
$ 250,000 
 
 
$ 250,000 
 
 
Cash in excess of federally insured limits
347,954 
 
 
347,954 
 
 
Impairment expenses
    
$ 17,788 
    
$ 17,788 
    
$ 30,000 
Minimum [Member]
 
 
 
 
 
 
State of Florida sales tax
 
 
 
6.00% 
 
 
Maximum [Member]
 
 
 
 
 
 
State of Florida sales tax
 
 
 
7.50% 
 
 
Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment Estimated Useful Life (Details)
6 Months Ended
Jun. 30, 2015
Machinery & Equipment [Member] |
Minimum [Member]
 
Property, Plant and Equipment, Useful Life
5 years 
Machinery & Equipment [Member] |
Maximum [Member]
 
Property, Plant and Equipment, Useful Life
7 years 
Furniture & Fixtures [Member] |
Minimum [Member]
 
Property, Plant and Equipment, Useful Life
5 years 
Furniture & Fixtures [Member] |
Maximum [Member]
 
Property, Plant and Equipment, Useful Life
7 years 
Improvements [Member] |
Minimum [Member]
 
Property, Plant and Equipment, Useful Life
10 years 
Improvements [Member] |
Maximum [Member]
 
Property, Plant and Equipment, Useful Life
20 years 
Building [Member]
 
Property, Plant and Equipment, Useful Life
40 years 
Income Producing Properties [Member]
 
Property, Plant and Equipment, Useful Life
40 years 
Property and Equipment (Details Narrative) (USD $)
0 Months Ended 6 Months Ended 0 Months Ended
Mar. 9, 2015
Sep. 17, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Dec. 10, 2014
Mar. 9, 2015
Land [Member]
Sep. 17, 2014
Land [Member]
Mar. 9, 2015
Building [Member]
Sep. 17, 2014
Building [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]
Purchases of property and equipment
 
$ 83,402 
$ 86,557 
$ 124,691 
 
 
 
 
 
 
$ 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 
 
 
 
 
Additional paid in capital
$ 1,190 
$ 4,440 
$ 1,961,592 
 
$ 1,951,063 
$ 6,200 
 
 
 
 
 
 
 
 
Property and Equipment - Summary of Property and Equipment (Details) (USD $)
Jun. 30, 2015
Dec. 31, 2014
Jun. 30, 2015
Land [Member]
Dec. 31, 2014
Land [Member]
Jun. 30, 2015
Furniture & Fixtures [Member]
Dec. 31, 2014
Furniture & Fixtures [Member]
Jun. 30, 2015
Building [Member]
Dec. 31, 2014
Building [Member]
Jun. 30, 2015
Improvements [Member]
Dec. 31, 2014
Improvements [Member]
Jun. 30, 2015
Income Producing Properties [Member]
Dec. 31, 2014
Income Producing Properties [Member]
Jun. 30, 2015
Total Property Equipment [Member]
Jun. 30, 2014
Total Property Equipment [Member]
Jun. 30, 2015
Construction in Progress [Member]
Dec. 31, 2014
Construction in Progress [Member]
Total Property & Equipment
$ 390,950 
$ 323,842 
$ 72,105 
$ 58,201 
$ 21,885 
$ 19,832 
$ 119,637 
$ 119,637 
$ 24,705 
$ 15,861 
$ 224,723 
$ 168,512 
$ 463,055 
$ 382,043 
$ 4,355 
$ 0 
Less: Accumulated Depreciation & Amortization
(13,393)
(6,814)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Property and Equipment
$ 454,017 
$ 375,229 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long Term Investments and Deposits (Details Narrative) (USD $)
0 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Dec. 10, 2014
Apr. 10, 2014
Wells
Jun. 30, 2015
Mar. 31, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Mar. 19, 2015
Mar. 9, 2015
Sep. 17, 2014
Debt Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Investments
$ 11,500 
$ 30,000 
 
 
 
 
 
 
 
 
 
Investment interest rate percentage
 
1.67% 
 
 
 
 
 
 
 
 
 
Net revenue percentage
 
60.00% 
 
 
 
 
 
 
 
 
 
Additional paid in capital
6,200 
 
1,961,592 
 
 
1,961,592 
 
1,951,063 
 
1,190 
4,440 
Accrued interest
88 
 
 
 
 
 
 
 
26,291 
 
 
Productive oil wells, number of wells, net
 
14 
 
 
 
 
 
 
 
 
 
Barrels of oil
 
2,990,000  
 
 
 
 
 
 
 
 
 
Impairment loss on investment
 
 
    
$ 17,788 
    
$ 17,788 
    
$ 30,000 
 
 
 
Convertible Debt (Details Narrative) (USD $)
0 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 0 Months Ended
Mar. 19, 2015
Feb. 23, 2015
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Dec. 10, 2014
Nov. 17, 2014
KBM Worldwide, Inc. [Member]
Aug. 22, 2014
KBM Worldwide, Inc. [Member]
Proceeds from convertible debt
 
 
 
 
 
 
 
 
$ 43,000 
$ 68,000 
Convertible debt interest rate
 
 
 
 
 
 
 
 
8.00% 
8.00% 
Convertible debt maturity date
 
 
 
 
 
 
 
 
Aug. 19, 2015 
May 18, 2015 
Debt conversion price percentage
 
 
 
 
 
 
 
 
61.00% 
61.00% 
Convertible debt discount
 
 
 
 
 
 
27,492 
43,590 
Interest expense
50,621 
 
   
   
(76,912)
   
28,658 
 
 
 
Debt discount amortization
18,518 
 
 
 
44,809 
   
26,272 
 
 
 
Debt stated interest
1,314 
 
 
 
 
 
2,386 
 
 
 
Debt prepayment premium
30,789 
 
 
 
 
 
 
 
 
 
Shares issued upon receipt of a conversion request
 
281,080 
 
 
 
 
 
 
 
 
Value of shares issued upon receipt of a conversion request
 
12,000 
 
 
 
 
 
 
 
 
Accrued interest on convertible notes
$ 26,291 
 
 
 
 
 
 
$ 88 
 
 
Stockholders' Equity (Details Narrative) (USD $)
0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended
May 3, 2014
Jun. 30, 2015
Dec. 31, 2014
Feb. 23, 2015
KBM Worldwide, Inc. [Member]
Jun. 30, 2015
Series A Preferred Stock [Member]
Dec. 31, 2014
Series A Preferred Stock [Member]
Jun. 30, 2015
Series B Preferred Stock [Member]
Dec. 31, 2014
Series B Preferred Stock [Member]
Dec. 31, 2014
Common Stock [Member]
Total number of shares authorized
 
320,000,000 
 
 
 
 
 
 
 
Common stock, shares authorized
 
300,000,000 
300,000,000 
 
 
 
 
 
 
Common stock, par value
 
$ 0.001 
$ 0.001 
 
 
 
 
 
 
Common stock, shares issued
 
8,321,655 
8,040,625 
 
 
 
 
 
 
Common stock, shares outstanding
 
8,321,655 
8,040,625 
 
 
 
 
 
 
Preferred stock, shares authorized
 
20,000,000 
 
 
20,000,000 
20,000,000 
20,000,000 
20,000,000 
 
Preferred stock, par value
 
$ 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; 
 
 
Shares issued during the period for acquisition
10,000 
 
 
 
 
 
 
 
 
Shares issued during the period for acquisition, value
$ 10,000 
 
 
 
 
 
 
 
 
Stock issued for cash
 
 
 
 
 
1,000 
 
5,000 
12,000 
Stock issued for cash, shares
 
 
 
 
 
10,000 
 
10,000 
37,500 
Stock issued for service
 
 
 
 
 
 
 
 
10,000 
Stock issued for service, shares
 
 
 
 
 
 
 
 
10,000 
Shares issued upon conversion
 
 
 
281,080 
 
 
 
 
 
Value of shares issued upon conversion
 
 
 
$ 12,000 
 
 
 
 
 
Discontinued Operations - Schedule of Disposal Group Discontinued Operations Presented in Balance Sheet (Details) (USD $)
Jun. 30, 2015
Dec. 31, 2014
Discontinued Operations
 
 
Cash and Cash Equivalents
$ 6,648 
$ 1,200 
Accounts Receivable
537 
Total Current Assets
6,648 
1,737 
Accounts Payable
20 
Total Current Liabilities
$ 20 
$ 9 
Discontinued Operations - Schedule of Disposal Group Discontinued Operations Presented in Income Statement (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Discontinued Operations
 
 
 
 
Revenue
$ 13,892 
$ 3,813 
$ 22,204 
$ 8,848 
Cost of Goods Sold
(6,582)
(592)
(10,294)
(2,010)
Gross Profit
7,310 
3,221 
11,910 
6,838 
Depreciation and Amortization
   
(615)
   
(1,229)
General and Administrative
(1,359)
(2,398)
(3,011)
(11,568)
Total Operating Expenses
(1,359)
(3,013)
(3,011)
(12,797)
Net Income (Loss) before Income Taxes
5,951 
208 
8,899 
(5,959)
Income Tax Benefit
   
   
   
   
Net Income (Loss) from Discontinued Operations
$ 5,951 
$ 208 
$ 8,899 
$ (5,959)
Subsequent Events (Details Narrative) (USD $)
0 Months Ended
Jun. 30, 2015
Jul. 28, 2015
Series C Preferred Stock [Member]
Jul. 29, 2015
Series C Preferred Stock [Member]
Preferred stock, shares authorized
20,000,000 
3,500,000 
 
Preferred shares beneficial ownership description
 
Series C Preferred shares are not convertible to the extent that (a) the number of shares of the Company?s common stock beneficially 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. 
 
Number of shares sold to investors
 
 
3,000,000 
Shares sold, price per share
 
 
$ 0.03333 
Aggregate consideration received upon sale of stock
 
 
$ 99,990