JERRICK MEDIA HOLDINGS, INC., 10-Q filed on 11/10/2014
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2014
Oct. 29, 2014
Document and Entity Information
 
 
Entity Registrant Name
Great Plains Holdings, Inc. 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2014 
 
Amendment Flag
false 
 
Entity Central Index Key
0001357671 
 
Current Fiscal Year End Date
--12-31 
 
Entity Common Stock, Shares Outstanding
 
8,040,625 
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
2014 
 
Document Fiscal Period Focus
Q3 
 
Entity Incorporation, State Country Name
Nevada 
 
Entity Incorporation, Date of Incorporation
Dec. 30, 1999 
 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
Sep. 30, 2014
Dec. 31, 2013
Current Assets
 
 
Cash and Cash Equivalents
$ 1,151,442 
$ 1,479,152 
Accounts Receivable
258 
285 
Inventory
12,632 
15,712 
Prepaid Expenses
 
2,875 
Total Current Assets
1,164,332 
1,498,024 
Property and Equipment
 
 
Property and Equipment
254,982 
58,057 
Less: Accumulated Depreciation
(10,054)
(3,645)
Land
22,380 
5,651 
Net Property and Equipment
267,308 
60,063 
Other Assets
 
 
Cost Method Investments
30,000 
 
Total Other Assets
30,000 
 
Total Assets
1,461,640 
1,558,087 
Current Liabilities
 
 
Accounts Payable and Accrued Expenses
685 
7,504 
Convertible Debt (net of discount of $36,194 and $0)
31,806 
 
Total Current Liabilities
32,491 
7,504 
Long-Term Liabilities
 
 
Refundable Deposits
950 
 
Total Long-Term Liabilities
950 
 
Total Liabilities
33,441 
7,504 
Stockholders' Equity
 
 
Preferred stock, 20,000,000 shares authorized, $.001 par value, 10,000 and 0 shares issued and outstanding, respectively
10 
 
Common stock, 300,000,000 shares authorized, $.001 par value, 8,040,625 and 7,993,125 shares issued and outstanding, respectively
8,041 
7,993 
Additional Paid in Capital
1,918,581 
1,856,489 
Accumulated deficit
(498,433)
(313,899)
Total Stockholders' Equity
1,428,199 
1,550,583 
Total Liabilities and Stockholders' Equity
$ 1,461,640 
$ 1,558,087 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2014
Dec. 31, 2013
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical)
 
 
Convertible Debt Discount
$ 36,194 
 
Preferred stock par value
$ 0.001 
$ 0.001 
Preferred stock shares authorized
20,000,000 
20,000,000 
Preferred stock shares issued
10,000 
 
Preferred stock shares outstanding
10,000 
 
Common stock par value
$ 0.001 
$ 0.001 
Common stock shares authorized
300,000,000 
300,000,000 
Common stock shares issued
8,040,625 
7,993,125 
Common stock shares outstanding
8,040,625 
7,993,125 
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Sales
 
 
 
 
Sales Revenue
$ 6,682 
$ 558 
$ 17,563 
$ 13,269 
Total Sales
6,682 
558 
17,563 
13,269 
Cost of Goods Sold
 
 
 
 
Cost of Sales
1,549 
42 
4,851 
1,056 
Total Cost of Goods Sold
1,549 
42 
4,851 
1,056 
Gross Profit
5,133 
516 
12,712 
12,213 
Operating Expenses
 
 
 
 
Royalties
(73)
 
115 
Depreciation and Amortization
2,420 
85 
6,409 
255 
General and Administrative
49,770 
6,832 
183,156 
32,752 
Total Operating Expenses
52,117 
6,923 
189,565 
33,122 
Operating Loss
(46,984)
(6,407)
(176,853)
(20,909)
Other Income (Expenses)
 
 
 
 
Interest expense
(7,977)
(592)
(7,977)
(1,735)
Investment Income
296 
 
296 
 
Total Other Income (Expenses)
(7,681)
(592)
(7,681)
(1,735)
Net Loss Before Taxes
(54,665)
(6,999)
(184,534)
(22,644)
Net Loss
$ (54,665)
$ (6,999)
$ (184,534)
$ (22,644)
Loss per share of common stock (basic and diluted)
$ (0.01)
$ 0.00 
$ (0.02)
$ (0.01)
Weighted average shares outstanding (basic and diluted)
8,030,625 
2,960,000 
8,030,625 
2,744,000 
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash Flows From Operating Activities
 
 
Net Income (Loss)
$ (184,534)
$ (22,644)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
Depreciation and Amortization
6,409 
255 
Debt discount amortization
7,396 
 
Contributions to capital - expenses paid by shareholders
 
8,024 
Change in Operating Assets and Liabilities:
 
 
Change in accounts receivable
27 
 
Change in inventory
3,080 
1,056 
Change in prepaid expenses
2,875 
 
Change in accounts payable and accrued expenses
(6,819)
(33,355)
Change in refundable deposits
950 
 
Net Cash Used In Operating Activities:
(170,616)
(46,664)
Cash Flows From Investing Activities
 
 
Purchases of Property and Equipment
(208,094)
 
Patent
   
   
Investments
(30,000)
 
Net Cash Used In Investing Activities:
(238,094)
 
Cash Flows From Financing Activities
 
 
Proceeds from Convertible Debt
68,000 
 
Notes Payable - Related Party
 
16,845 
Payment to Related Party
 
(77,625)
Proceeds from the issuance of preferred stock
1,000 
 
Proceeds from the issuance of common stock
12,000 
1,600,000 
Net Cash Provided By Financing Activities:
81,000 
1,539,220 
Net Change in Cash & Cash Equivalents
(327,710)
1,492,556 
Beginning Cash & Cash Equivalents
1,479,152 
447 
Ending Cash & Cash Equivalents
1,151,442 
1,493,003 
Supplemental Disclosures of Noncash Investing and Financing Activities
 
 
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
$ 43,590 
 
Note 1 - Organization
Note 1 - 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.

 

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 nine months ended September 30, 2014 are not necessarily indicative of the results that can be expected for the year ending December 31, 2014.

Note 2 - Summary of Significant Accounting Policies
Note 2 - 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.

 

Accounts Receivable

Accounts receivable are recorded when invoices are issued and the amount management expects to collect is reported on the balance sheet.  Accounts receivable are written off when they are determined to be uncollectible.  The allowance for doubtful accounts is estimated based on the Company’s historical losses, the existing economic condition in the industry, and the financial stability of its customers.

 

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 September 30, 2014, the Company has $807,603 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.

 

Inventories

Inventories are stated at the lower of cost or market.  Cost is determined on a first-in, first-out (FIFO) basis and market is determined on the basis of replacement cost or net realizable value.

 

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.

 

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

Land Improvements

      20 years

Building

      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.

 

Revenue Recognition

Revenue is recognized upon the completion of the sales and shipment of the product.  The product is sold via the internet and is delivered to customers or to wholesale resellers using a ground courier service.

 

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.

 

Shipping and Handling Costs

The Company classifies freight billed to customers as sales revenue and related freight costs as 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 September 30, 2014 and 2013, there were 87,179 and 0 common stock equivalents outstanding, respectively.

 

Recent Accounting Pronouncements

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

Note 3 - Property and Equipment
Note 3 - Property and Equipment

Note 3 - Property and Equipment

 

On December 26, 2013, the Company acquired two adjacent parcels of land located in Wildwood, Florida totaling approximately 0.90 acres.  The property includes a 1,400 square foot corporate office building and an additional parcel of land that includes a mobile home. The real estate and improvements located on it were acquired from TD Bank, N.A., an unrelated party, for a purchase price of $47,500 plus customary closing costs.  The Company paid the purchase price in cash at closing.

 

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 paid in cash at closing. See Note 6 - Significant Transactions with Related Parties. Since the acquisition of this property 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 purchase price and the historical cost was recorded as a reduction to paid-in capital of $4,440.

 

Property and equipment are stated at cost and consist of the following categories as of September 30, 2014 and December 31, 2013:

   

Sept. 30, 2014

Dec. 31,2013

     Land

22,380

5,651

     Machinery & Equipment

14,380

14,380

     Buildings & Improvements

240,602

43,677

          Total Property & Equipment

277,362

63,708

     Less:  Accumulated Depreciation & Amortization

(10,054)

(3,645)

 

 

 

          Net Property and Equipment

267,308

60,063

Note 4 - Long Term Investments
Note 4 - Long Term Investments

 

Note 4 – Long Term Investments

 

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.  Accordingly, the investment is stated at acquisition cost and distributions are recorded as income when received.  It is not practical to estimate the fair value of this investment; however, management believes that the carrying value at September 30, 2014 was not impaired.

Note 5 - Convertible Debt
Note 5 - Convertible Debt

Note 5 – Convertible Debt

 

Convertible Note to KBM Worldwide, Inc.

 

On August 22, 2014 (the “Issuance Date”), the Company entered into a securities purchase agreement (the “Purchase Agreement”) with KBM Worldwide, Inc. (“KBM”), whereby KBM agreed to invest $68,000 (“Note Purchase Price”) into the Company in exchange for the Company’s issuance of a convertible promissory note, in the original principal amount of $68,000.00, which bears interest at 8% per annum (the “Note”).  All outstanding principal and accrued interest on the Note is due and payable on the maturity date, which is May 18, 2015 (the “Maturity Date”).  The Note Purchase Price was paid in cash to the Company by KBM on August 22, 2014.  Any amount of principal or interest that is due under the Note, which is not paid by the Maturity Date, will bear interest at the rate of 22% per annum until it is paid (“Default Interest”).  The Note is convertible by KBM into common stock of the Company (“Common Stock”) at any time during the conversion period, which begins 180 days after the Issuance Date and ends on the later of (i) the Maturity Date and the (ii) date of payment of the default amount (“Conversion Period”).  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.

 

The Note can be prepaid by the Company at a premium as follows: (a) between 0 and 30 days after issuance – 110% of the total outstanding amount; (b) between 31 and 60 days after issuance – 115% of the total outstanding amount; (c) between 61 and 90 days after issuance – 120% of the total outstanding amount; (d) between 91 and 120 days after issuance – 125% of the total outstanding amount; and (e) between 121 and 150 days after issuance – 130% of the total outstanding amount; and (f) between 151 and 180 days after issuance – 135% of the total outstanding amount.  After the initial 180 period from the Issuance Date, the Company does not have a right of prepayment.

 

All amounts due under the Note become immediately due and payable by the Company upon the occurrence of an event of default, including but not limited to (i) the Company’s failure to pay the amounts due at maturity, (ii) the Company’s failure to issue shares of Common Stock upon any conversion of the Note, (iii) a breach of the covenants, representations or warranties under the Note, (iv) the appointment of a trustee, a judgment against the Company in excess of $50,000 (subject to a cure period), a liquidation of the Company or the filing of a bankruptcy petition, (v) failure to remain current in our reporting obligations under the Securities Exchange Act of 1934 or the removal of the Common Stock from quotation on an over the counter quotation service or equivalent exchange, (vi) any restatement of our financial statements, or (vii) a reverse stock split without prior notice to KBM.

 

We determined the conversion feature associated with this convertible note 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. Amortization of the beneficial conversion feature triggered by this convertible note is reported as interest expense on the income statement.  A total of $7,977 was recorded as interest expense for the nine month period ended September 30, 2014 ($0 for 2013), of which $7,396 related to debt discount amortization and $581 related to stated interest.

Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity

Note 6 - Stockholders’ Equity

 

The company has authorized 320,000,000 shares, of which 300,000,000 are Common Stock, par value $0.001 per share with 8,040,625 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 at September 30, 2014.

 

The Series A Preferred Stock have 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.

 

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).

Note 8 - Subsequent Events
Note 8 - Subsequent Events

Note 8 – Subsequent Events

 

Orangeburg Property

 

On October 11, 2014 the Company entered into a purchase and sale agreement with unrelated parties to purchase the residential mobile home park located at 1197 Cannon Bridge Rd., Orangeburg, South Carolina 29115 (the “Property”) for $115,000.00 payable in cash at closing. The material terms of the agreement to acquire this property include: (i) an initial deposit from the Company in the amount of $2,500 which amount has been paid and shall be credited to the purchase price of the property at closing; (ii) a property inspection period that expires 60 days after the Sellers deliver documents requested by the Company during which time Company can terminate the agreement at any time within the period by delivering written notice to the Sellers; and (iii) a closing date for the sale of the Property that shall occur on or before 30 days after the inspection period. The agreement also contains additional covenants, representations and warranties that are customary of real estate purchase and sale agreements.

 

Lady Lake Property

 

On October 31, 2014, the Company completed the purchase of a 960 square foot residential located at 13537 County Road 109E-1, Lady Lake, Florida 32159 for $53,000 which amount was paid in cash at closing. The amount of the purchase price was reduced by $1,500 from the previously reported price of $54,500 to cover plumbing repairs to the property.

Note 2 - Summary of Significant Accounting Policies: Use of Estimates (Policies)
Use of Estimates

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.

Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
Fair Value of Financial Instruments

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.

Note 2 - Summary of Significant Accounting Policies: Accounting Method (Policies)
Accounting Method

Accounting Method

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

Note 2 - Summary of Significant Accounting Policies: Accounts Receivable (Policies)
Accounts Receivable

Accounts Receivable

Accounts receivable are recorded when invoices are issued and the amount management expects to collect is reported on the balance sheet.  Accounts receivable are written off when they are determined to be uncollectible.  The allowance for doubtful accounts is estimated based on the Company’s historical losses, the existing economic condition in the industry, and the financial stability of its customers.

Note 2 - Summary of Significant Accounting Policies: Advertising (Policies)
Advertising

Advertising

The Company expenses all advertising costs as they are incurred.

Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)
Cash and Cash Equivalents

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.

Note 2 - Summary of Significant Accounting Policies: Concentrations of Risk (Policies)
Concentrations of Risk

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 September 30, 2014, the Company has $807,603 in excess of federally insured limits.

Note 2 - Summary of Significant Accounting Policies: Dividend Policy (Policies)
Dividend Policy

Dividend Policy

The Company has not yet adopted a policy regarding dividends.

Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies)
Income Taxes

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.

Note 2 - Summary of Significant Accounting Policies: Inventories (Policies)
Inventories

Inventories

Inventories are stated at the lower of cost or market.  Cost is determined on a first-in, first-out (FIFO) basis and market is determined on the basis of replacement cost or net realizable value.

Note 2 - Summary of Significant Accounting Policies: Long Term Investments (Policies)
Long Term Investments

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.

Note 2 - Summary of Significant Accounting Policies: Principles of Consolidation Policy (Policies)
Principles of Consolidation Policy

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.

Note 2 - Summary of Significant Accounting Policies: Property & Equipment (Policies)
Property & Equipment

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

Land Improvements

      20 years

Building

      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.

Note 2 - Summary of Significant Accounting Policies: Revenue Recognition Policy (Policies)
Revenue Recognition Policy

Revenue Recognition

Revenue is recognized upon the completion of the sales and shipment of the product.  The product is sold via the internet and is delivered to customers or to wholesale resellers using a ground courier service.

Note 2 - Summary of Significant Accounting Policies: Shipping and Handling Costs (Policies)
Shipping and Handling Costs

Shipping and Handling Costs

The Company classifies freight billed to customers as sales revenue and related freight costs as cost of sales.

Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Net Income (loss) Per Share Policy (Policies)
Basic and Diluted Net Income (loss) Per Share Policy

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 September 30, 2014 and 2013, there were 87,179 and 0 common stock equivalents outstanding, respectively.

Note 2 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements Policy (Policies)
Recent Accounting Pronouncements Policy

Recent Accounting Pronouncements

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

Note 2 - Summary of Significant Accounting Policies: Property & Equipment: Schedule of Property Plant and Equipment, Useful Life (Tables)
Schedule of Property Plant and Equipment, Useful Life

Machinery & Equipment

5 to 7 years

Furniture & Fixtures

5 to 7 years

Land Improvements

      20 years

Building

      40 years

 

 

Note 3 - Property and Equipment: Property, Plant and Equipment (Tables)
Property, Plant and Equipment

   

Sept. 30, 2014

Dec. 31,2013

     Land

22,380

5,651

     Machinery & Equipment

14,380

14,380

     Buildings & Improvements

240,602

43,677

          Total Property & Equipment

277,362

63,708

     Less:  Accumulated Depreciation & Amortization

(10,054)

(3,645)

 

 

 

          Net Property and Equipment

267,308

60,063

Note 1 - Organization (Details)
9 Months Ended
Sep. 30, 2014
Details
 
Entity Incorporation, State Country Name
Nevada 
Entity Incorporation, Date of Incorporation
Dec. 30, 1999 
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) (USD $)
Sep. 30, 2014
Details
 
Cash, FDIC Insured Amount
$ 250,000 
Note 2 - Summary of Significant Accounting Policies: Concentrations of Risk (Details) (USD $)
Sep. 30, 2014
Details
 
Cash in Excess of Federally Insured Limits
$ 807,603 
Note 2 - Summary of Significant Accounting Policies: Property & Equipment: Schedule of Property Plant and Equipment, Useful Life (Details)
9 Months Ended
Sep. 30, 2014
Machinery and Equipment |
Minimum
 
Property, Plant and Equipment, Useful Life
5 years 
Machinery and Equipment |
Maximum
 
Property, Plant and Equipment, Useful Life
7 years 
Furniture and Fixtures |
Minimum
 
Property, Plant and Equipment, Useful Life
5 years 
Furniture and Fixtures |
Maximum
 
Property, Plant and Equipment, Useful Life
7 years 
Land Improvements
 
Property, Plant and Equipment, Useful Life
20 years 
Building
 
Property, Plant and Equipment, Useful Life
40 years 
Note 2 - Summary of Significant Accounting Policies (Details)
9 Months Ended
Sep. 30, 2014
Minimum
 
State of Florida Sales Tax
6.00% 
Maximum
 
State of Florida Sales Tax
7.50% 
Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Net Income (loss) Per Share Policy (Details)
Sep. 30, 2014
Sep. 30, 2013
Details
 
 
Common Stock Equivalents Outstanding
87,179 
Note 3 - Property and Equipment (Details) (USD $)
3 Months Ended 9 Months Ended
Dec. 31, 2013
Sep. 30, 2014
Real Estate Owned, Nature and Origin
two adjacent parcels of land located in Wildwood, Florida totaling approximately 0.90 acres. The property includes a 1,400 square foot corporate office building and an additional parcel of land that includes a mobile home 
a residential duplex located in Hanahan, South Carolina 
Payments to Acquire Real Estate
$ 47,500 
 
Amount allocated to APIC associated with the purchase of real estate between entities under common control
 
4,440 
Land, Buildings and Improvements
 
 
Payments to Acquire Real Estate
 
83,402 
Land
 
 
Payments to Acquire Real Estate
 
16,729 
Building
 
 
Payments to Acquire Real Estate
 
$ 62,233 
Note 3 - Property and Equipment: Property, Plant and Equipment (Details) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Net Property and Equipment
$ 267,308 
$ 60,063 
Property, Plant and Equipment, Gross
277,362 
63,708 
Less: Accumulated Depreciation
(10,054)
(3,645)
Land
 
 
Net Property and Equipment
22,380 
5,651 
Machinery and Equipment
 
 
Net Property and Equipment
14,380 
14,380 
Building and Building Improvements
 
 
Net Property and Equipment
$ 240,602 
$ 43,677 
Note 4 - Long Term Investments (Details) (USD $)
9 Months Ended
Sep. 30, 2014
Details
 
Investments
$ 30,000 
Productive Oil Wells, Number of Wells, Net
14 
Barrels of oil
2,990,000 
Note 5 - Convertible Debt (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Proceeds from Convertible Debt
 
 
$ 68,000 
 
Debt Instrument, Payment Terms
 
 
The Note can be prepaid by the Company at a premium as follows: (a) between 0 and 30 days after issuance – 110% of the total outstanding amount; (b) between 31 and 60 days after issuance – 115% of the total outstanding amount; (c) between 61 and 90 days after issuance – 120% of the total outstanding amount; (d) between 91 and 120 days after issuance – 125% of the total outstanding amount; and (e) between 121 and 150 days after issuance – 130% of the total outstanding amount; and (f) between 151 and 180 days after issuance – 135% of the total outstanding amount. After the initial 180 period from the Issuance Date, the Company does not have a right of prepayment. 
 
Convertible Debt Discount
36,194 
 
36,194 
 
Interest expense
7,977 
592 
7,977 
1,735 
Debt discount amortization
 
 
7,396 
 
KBM Worldwide, Inc.
 
 
 
 
Convertible Debt Discount
43,590 
 
43,590 
 
Interest expense
 
 
7,977 
Debt discount amortization
 
 
$ 7,396 
 
Note 6 - Stockholders' Equity (Details) (USD $)
9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Details
 
 
Common stock shares authorized
300,000,000 
300,000,000 
Common stock par value
$ 0.001 
$ 0.001 
Common stock shares issued
8,040,625 
7,993,125 
Common stock shares outstanding
8,040,625 
7,993,125 
Preferred stock shares authorized
20,000,000 
20,000,000 
Preferred stock par value
$ 0.001 
$ 0.001 
Preferred stock shares issued
10,000 
 
Preferred stock shares outstanding
10,000 
 
Stock issued during period for acquisition of assets classified as buildings and improvement
10,000 
 
Issuance of 10,000 common shares for property and equipment
$ 10,000 
 
Note 8 - Subsequent Events (Details) (Land, USD $)
0 Months Ended
Oct. 31, 2014
Oct. 15, 2014
Land
 
 
Payments to Acquire Other Real Estate
$ 53,000 
$ 115,000.00