Investment in LLC

12 Months Ended

Dec. 31, 2012

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Investment in LLC

Note 6 Investment in LLC

During 2010, the Company advanced $20,090 to an individual. There was an implied agreement that the advance would convert into an equity interest in a new entity.

During 2011 the Company acquired a 34.62% interest in Meatball Obsession, LLC (“MO”) for a total investment of $27,032, which includes the conversion of the $20,090 advance above. This investment is accounted for using the equity method of accounting. Accordingly, investments are recorded at acquisition cost plus the Company’s equity in the undistributed earnings or losses of the entity. At December 31, 2011 the investment was brought down to $0 due to losses incurred by MO.

During 2012 the Company’s ownership interest in MO fell to 28% due to dilution.

During the years ending December 31, 2012 and 2011, sales to MO were $73,768 and 4,124, respectively. At December 31, 2012 and 2011 the accounts receivable balance from MO was $12,680 and $0.

Summarized financial information for Meatball Obsession, LLC is as follows:

Balance Sheet Data
	December 31, 2012		December 31, 2011
Assets
Cash	$	117,777	$	246,100
Accounts receivable		5,234		-
Inventory		14,935		-
Property & equipment		75,861		-
Other assets		60,370		32,500
Total Assets	$	274,177	$	278,600
Liabilities and Members’ Equity
Accounts payable		25,731		-
Other current liabilities		8,354		-
Total Current Liabilities		34,085		-
Members’ Equity		240,092		278,600
Total Liabilities and Members’ Equity	$	274,177	$	278,600

Statement of Operations Data
		December 31, 2012			December 31, 2011
Revenues	$	315,493		$	-
Cost of goods sold		129,571			4,950
Expenses		534,961			143,772
Net operating loss		(349,039	)		(148,721	)
Other income (expenses)		(1,988	)		289
Net loss	$	(351,027	)	$	(148,432	)