Investment in LLC

3 Months Ended

Mar. 31, 2013

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 2013 the Company’s ownership interest in MO fell to 24% due to dilution.

During the three months ending March 31, 2013 and 2012, sales to MO were $23,965 and 2,773, respectively. At March 31, 2013 and December 31, 2012 the accounts receivable balance from MO was $16,323 and $12,680.

During the three months ended March 31, 2013, the Company loaned MO $30,000 for working capital purposes. The loan is non-interest bearing, unsecured and is due on June 19, 2013. The balance on the loan at March 31, 2013 was $30,000.

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

Balance Sheet Data
	March 31, 2013			December 31, 2012
Assets
Cash	$	92,910		$	117,777
Accounts receivable		7,121			5,234
Inventory		18,138			14,935
Property & equipment, net		148,258			75,861
Other assets		54,229			60,370
Total Assets	$	320,656		$	274,177
Liabilities and Members’ Equity
Accounts payable	$	34,466		$	25,731
Other current liabilities		36,725			8,354
Total Current Liabilities		71,191			34,085
Members’ Equity		249,465			240,092
Total Liabilities and Members’ Equity	$	320,656		$	274,177
Statement of Operations Data
		March 31, 2013			March 31, 2012
Revenues	$	100,759		$	7,109
Cost of goods sold		36,836			6,865
Expenses		150,414			130,009
Net operating loss		(86,491	)		(129,765	)
Other income (expenses)		(4,136	)		(203	)
Net loss	$	(90,627	)	$	(129,968	)