10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C.  20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarter Ended: June 30, 2016 Commission File Number 000-55019

HOME TREASURE FINDERS, INC. AND SUBSIDIARY

(Exact name of registrant as specified in its charter)

COLORADO	26-3119496
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)
4318 Tennyson Street, Denver, Colorado	80221
(Address of principal executive offices)	(Zip code)

(720) 273-2398

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   ý Yes           o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   ý Yes                      o No (Not required)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company ý

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes   ý No

As of August 15, 2016,  registrant had outstanding 13,205,450 shares of common stock, no par value.

	Page
PART I  FINANCIAL INFORMATION
Item 1. Financial Statements for the period ended June 30, 2016
Consolidated Balance Sheets (Unaudited)	3
Consolidated Statements of Operations (Unaudited)	4
Consolidated Statements of Cash Flows (Unaudited)	5
Notes to Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	8
Item 3. Quantitative and Qualitative Disclosures About Market Risk	10
Item 4. Controls and Procedures	10
Item 4T. Controls and Procedures	10
PART II  OTHER INFORMATION
Item 1. Legal Proceedings	11
Item 1A. Risk Factors	11
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	11
Item 3. Defaults Upon Senior Securities	11
Item 4. Mine Safety	11
Item 5. Other Information	11
Item 6. Exhibits	12
Signatures	13

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PART I  FINANCIAL INFORMATION

Item 1.  Financial Statements

HOME TREASURER FINDERS, INC. AND SUBSIDIARY

 Consolidated Balance Sheets

	June 30,			December 31,
	2016			2015
	(unaudited)
Assets
Current Assets:
Cash	$	49,402		$	45,210
Rent receivable		500			500
Prepaid expenses		5,445			706
Total current assets		55,347			46,416
Property and equipment, net		832,175			843,106
Other assets:
Security deposits		1,050			1,050
Total assets	$	888,572		$	890,572
Liabilities and Shareholders' Equity (Deficit)
Liabilities:
Accounts payable	$	19,277		$	-
Accrued wages		18,612			18,612
Accrued liabilities		72,617			68,187
Accrued interest – related party		2,965			2,781
Note payable, current portion		11,704			13,265
Related party note payable		1,258			9,193
Total current liabilities		126,433			112,038
Long term debt, net of current portion		806,367			811,654
Total liabilities		932,800			923,692
Shareholders' equity (deficit):
Common stock, no par value; 100,000,000 shares authorized,
13,205,450 and 13,205,450 shares issued and outstanding, respectively		215,267			215,267
Additional paid in capital		96,476			96,476
Accumulated deficit		(355,971	)		(344,863	)
Total shareholders' equity (deficit)		(44,228	)		(33,120	)
Total liabilities and shareholders' equity (deficit)	$	888,572		$	890,572

See accompanying notes to consolidated financial statements.

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HOME TREASURER FINDERS, INC. AND SUBSIDIARY

 Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Commission income	$	72,492		$	56,137		$	120,518		$	73,542
Rental and property and rental management income		60,025			58,904			116,930			110,742
Revenue	$	132,517		$	115,041		$	237,448		$	184,284
Operating expnses:
Commision expense		42,919			27,177			47,722			30,417
Professional fees		9,939			8,349			26,218			22,341
General and administrative		81,668			59,994			145,665			123,732
Total operating expenses		134,526			95,520			219,605			176,490
Operating (loss) income		(2,009	)		19,521			17,843			7,794
Other expense
Interest expense		(14,367	)		(14,764	)		(28,951	)		(29,579	)
Total other expense		(14,367	)		(14,764	)		(28,951	)		(29,579	)
Net income (loss) income	$	(16,376	)	$	4,757		$	(11,108	)	$	(21,785	)
Basic and diluted (loss) income per share	$	(0.00	)	$	0.00		$	(0.00	)	$	(0.00	)
Basic and diluted weighted average
common shares outstanding		13,205,450			13,205,450			13,205,450			13,205,450

See accompanying notes to consolidated financial statements.

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HOME TREASURER FINDERS, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

(Unaudited)

	For the Six Months Ended
	June 30,
	2016			2015
Cash flows from operating activities:
Net loss	$	(11,108	)	$	(21,785	)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation and amortization		11,871			13,092
Changes in operating assets and liabilities:
Increase in rent receivable		—			(24,000	)
Increase in prepaid expense		(4,739	)		(445	)
Increase in accrued interest - related party		184			345
Increase in accrued liabilities		4,430			8,545
Increase in accounts payable		19,277			21,333
Net cash provided by (used in)
operating activities		19,915			(2,915	)
Cash flows from investing activities:
Purchase of fixed assets		(940	)		—
Net cash used in
investing activities		(940	)		—
Cash flows from financing activities:
Proceeds from related party payable		1,258			1,500
Payment of  related party payable		(9,193	)		-
Payment of long term debt		(6,848	)		(6,445	)
Net cash provided by (used in)
financing activities		(14,783	)		(4,945	)
Net change in cash		4,192			(7,860	)
Cash, beginning of period		45,210			36,848
Cash, end of period	$	49,402		$	28,988
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes	$	—		$	—
Interest	$	28,767		$	29,235
NON CASH FINANCING ACTIVITIES:

See accompanying notes to consolidated financial statements.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARY

Notes to Unaudited Consolidated Financial Statements

Note 1:  Basis of Presentation

The accompanying financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). The interim financial statements reflect all adjustments, consisting of normal recurring adjustments which, in the opinion of management, are necessary to present a fair statement of the results for the period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the December 31, 2015 financial statements and notes thereto included. The results of operations for the period ended June 30, 2016, are not necessarily indicative of the operating results for the year ended December 31, 2016.

Note 2:  Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As shown in the accompanying financial statements, the Company has not yet generated sufficient net income.  This factor, among others, indicates that there is substantial doubt that the Company will be able to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.  The Company's continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.  The Company intends to seek additional funding through equity offerings to fund its business plan.  There is no assurance that the Company will be successful in raising additional funds. 

Note 3:  Related Party Transactions

During the six months ended June 30, 2016, the related party payable had a net decrease of $7,935.  During the three months ended June 30, 2016 the related party payable increased by $1,258.  The balance of the related party payable was $1,258 and $9,193 as of June 30, 2016 and December 31, 2015, respectively.    This payable is due on demand and has an interest rate of 8%.  Accrued interest on this payable was $2,965 and $2,370 at June 30, 2016 and 2015, respectively.  Interest expense for the six months ended June 30, 2016 and 2015 was $184 and $345, respectively.  Interest expense for the three months ended June 30, 2016 and 2015 was $13 and $174, respectively.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARY

Notes to Unaudited Consolidated Financial Statements

Note 4:  Property and Equipment

The Company's capital assets consist of warehouse units, computer equipment, office furniture and leasehold improvements for the new office.  Depreciation and amortization is calculated using the straight-line method over the estimated useful life of the asset, ranging from 18 months to 39 years.  Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred.  The cost and related accumulated depreciation of any capital assets that are sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.

Fixed assets and related depreciation are as follows: 

	June 30, 2016			December 31, 2015
Computer equipment	$	5,672		$	5,672
Furniture and fixtures		7,777			6,837
Leasehold improvements		4,000			4,000
Warehouse units		861,000			861,000
Accumulated amortization and depreciation		(46,274	)		(34,403	)
Total fixed assets	$	832,175		$	843,106

Depreciation and amortization expense was $11,871 and $13,092 for the six months ended June 30, 2016 and 2015, respectively. For the three months ended June 30, 2016 and 2015 depreciation and amortization expense was $5,935 and $6,546, respectively.

Note 5:  Long-Term Debt

On September 15, 2014,  the Company entered into a promissory note for $840,000 on the purchase three warehouse units known as 4420, 4430 and 4440 Garfield Street, Denver, Colorado. The Company is leasing each of the three separate units to licensed third party growers for cannabis cultivation.  The terms of the variable interest 25 year amortization note carried by the seller of the property call for payments to seller as follows:

1  First and Second year interest rate at 7% with 25 year amortization payment at $5,937 per month.

2.  Third and Fourth year at 8% with 25 year amortization payment at $6,278 per month.

3.  Fifth year at 9% with 25 year amortization payment at $6,640 per month.

4.  Balloon payment of $777,255 due at end of the fifth year.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARY

Notes to Unaudited Consolidated Financial Statements

The note to seller is secured by the three warehouse units.

As of June 30, 2016, the balance of the note was $818,071 and the annual maturities of the long-term debt were:

Year Ending December 31,
2016	$	6,417
2017		10,790
2018		11,090
2019		789,774
	$	818,071

Note 6:  Subsequent Events

The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance.

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Part I. Item 2.  Management's Discussion and Analysis of Financial Conditions and Results of Operations

Forward-looking statements

The following discussion should be read in conjunction with the financial statements of Home Treasure Finders, Inc. and Subsidiaries (the "Company"), which are included elsewhere in this Form 10-Q. This Quarterly Report on Form 10-Q contains forward-looking information. Forward-looking information includes statements relating to future actions, future performance, costs and expenses, interest rates, outcome of contingencies, financial condition, results of operations, liquidity, business strategies, cost savings, objectives of management, and other such matters of the Company. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking information to encourage companies to provide prospective information about themselves without fear of litigation so long as that information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. Forward-looking information may be included in this Quarterly Report on Form 10-Q or may be incorporated by reference from other documents filed with the Securities and Exchange Commission (the "SEC") by the Company. You can find many of these statements by looking for words including, for example, "believes", "expects", "anticipates", "estimates" or similar expressions in this Quarterly Report on Form 10-Q or in documents incorporated by reference in this Quarterly Report on Form 10-Q. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events.

We have based the forward-looking statements relating to our operations on our management's current expectations, estimates and projections about our Company and the industry in which we operate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In particular, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Accordingly, our actual results may differ materially from those contemplated by these forward-looking statements. Any differences could result from a variety of factors, including, but not limited to general economic and business conditions, competition, and other factors.

Financial Condition and Results of Operation

Home Treasure Finders, Inc. was formed on July 28, 2008. The founder, sole director and officer of our company is Corey Wiegand. On March 3, 2014 we formed a wholly owned subsidiary, HMTF Cannabis Holdings, Inc. to purchase properties that qualify for legal cultivation of cannabis. 

Our net loss for the six months ended June 30, 2016 was $11,108.  We generated operating revenue from three sources, sales commissions, property management, and commercial real estate for legal cannabis cultivation. We manage approximately 60 rental real estate owned by non-related third parties. In comparison our net loss for the six months ended June 30, 2015 was $21,785.

For the six months ended June 30, 2016 the Company generated a total of $237,448 in revenues, consisting of $120,518 from sales commissions and $116,931 from rental and property management.  During the six months ended June 30, 2015 we generated a total of $184,284 in revenues, consisting of $73,542 from sales commissions and $110,742 from rental and property management.

During the six months ending June 30, 2016 we incurred operating expenses totaling $219,605. Such expenses consisted primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  During the six months ended June 30, 2015 we incurred a total of $176,490 of operating expenses consisting primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  The increase in expenses over prior year was primarily related to increase in audit and legal fees and increase in property management expenses and other administrative expenses.

Our net loss for the three months ended June 30, 2016 was $16,376.  For the three months ended June 30, 2015 we had net income of $4,757.For the three months ended June 30, 2016 the Company generated a total of $132,517 in revenues, consisting of $72,492 from sales commissions and $60,025 from rental and property management.  During the three months ended June 30, 2015 we generated a total of $115,041 in revenues, consisting of $56,137 from sales commissions and $58,904 from rental and property management.

During the three months ending June 30, 2016 we incurred operating expenses totaling $134,526. Such expenses consisted primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  During the three months ended June 30, 2015 we incurred a total of $95,520 of operating expenses consisting primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  The increase in expenses over prior year was primarily related to increase in commissions paid and increase in property management expenses and other administrative expenses.

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Liquidity and Capital Resources

At June 30, 2016, we had $49,402 in cash and working capital deficit of $71,086.  At December 31, 2015 we had $45,210 in cash and a working capital deficit of $65,622.

The business plan of our subsidiary, HMTF Cannabis Holdings, Inc. is capital intensive and requires that we raise significant additional capital to acquire and improve real estate. We are negotiating with various sources for an equity infusion to match our long term capital needs.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

No response required.

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the United States Securities and Exchange Commission. Our Chief Executive Officer has reviewed the effectiveness of our "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15d-14(c)) within the end of the period covered by this Quarterly Report on Form 10-Q and has concluded that the disclosure controls and procedures are ineffective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner. There were no changes in our internal controls or in other factors that could materially affect these controls subsequent to the last day they were evaluated by our Chief Executive Officer, who is our principal executive officer and our principal financial officer.

Item 4T.  Changes in Internal Controls over Financial Reporting

There have been no changes in our internal control over financial reporting during the last quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

- 10 -

Part 2.    Other Information

Item 1 -  Legal Information.

No response required.

Item 1A.  Risk Factors

No response required.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3 -  Defaults Upon Senior Securities.

No response required.

Item 4 -  Mine Safety.

No response required.

Item 5 -  Other Information.

No response required.

- 11 -

Item 6 -  Exhibits and Reports on Form 8-K.

(a)       Exhibits:

Exhibit Number	Description
31.1	Certification of CEO/CFO pursuant to Sec. 302
32.1	Certification of CEO/CFO pursuant to Sec. 906
99.1	Settlement Agreement And Mutual Release
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document*
101.INS	XBRL Instance Document
101SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

(b)           Reports on Form 8-K:

None.

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SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	HOME TREASURE FINDERS, INC. AND SUBSIDIARY
	(Registrant)
DATE:  August 15, 2016	BY:	/s/ Corey Wiegand
		Corey Wiegand
		President

- 13 -

EX-31

 

Exhibit 31.1

CERTIFICATION OF

PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER

PURSUANT TO

SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Corey Wiegand, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Treasure Finders, Inc. and Subsidiary.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

5. The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

/s/ Corey Wiegand

Corey Wiegand

Principal Executive Officer and Principal Financial Officer

August 15, 2016

EX-32

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Corey Wiegand, Chief Executive Officer of Home Treasure Finders, Inc. and Subsidiary (the “Company”), certifies, under the standards set forth and solely for the purposes of 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge, the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in that Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Corey Wiegand

Corey Wiegand

Principal Executive Officer and Principal Financial Officer

August 15, 2016

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 14, 2015
Document And Entity Information
Entity Registrant Name	Home Treasure Finders, Inc.
Entity Central Index Key	0001527102
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		13,205,450
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2015

XML

Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current Assets:
Cash	$ 28,988	$ 36,848
Rent receivable	24,000
Prepaid asset	1,198	753
Total current assets	54,186	37,601
Property and equipment, net	854,455	867,547
Other assets:
Security deposits	1,050	1,050
Total assets	909,691	906,198
Liabilities:
Accounts payable	30,795	9,462
Accrued wages	18,612	18,612
Accrued liabilities	60,673	52,128
Accrued interest	2,370	2,025
Note payable, current portion	13,406	13,003
Related party note payable	10,193	8,693
Total current liabilities	136,049	103,923
Long term debt	818,071	824,919
Total liabilities	954,120	928,842
Shareholders' equity (deficit):
Common stock, no par value; 100,000,000 shares authorized, 13,205,450 and 11,725,450 shares issued and outstanding, respectively	215,267	215,267
Additional paid in capital	96,476	96,476
Accumulated deficit	(356,172)	(334,387)
Total shareholder's equity (deficit)	(44,429)	(22,644)
Total liabilities and shareholders' equity (deficit)	$ 909,691	$ 906,198

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Stockholders Equity
Common Stock par value	$ 0.00	$ 0.00
Common Stock Authorized	100,000,000	100,000,000
Common Stock Issued	13,205,450	11,725,450
Common Stock Outstanding	13,205,450	11,725,450

XML

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Commission income	$ 56,137	$ 25,691	$ 73,542	$ 56,744
Property management income	58,904	14,274	110,742	26,737
Revenue	115,041	39,965	184,284	83,481
Operating expenses:
Commision expense	27,177	11,815	30,417	25,040
Professional fees	8,349	10,830	22,341	21,897
General and Administrative	59,994	80,000	123,732	131,595
Total operating expenses	95,520	102,645	176,490	178,532
Operating loss	19,521	(62,680)	7,794	(95,051)
Other Expense
Interest expense	(14,764)	(315)	(29,579)	(465)
Total other expense	(14,764)	(315)	(29,579)	(465)
Net Income (loss)	$ 4,757	$ (62,995)	$ (21,785)	$ (95,516)
Basic and diluted loss per share	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.01)
Basic and diluted weighted average common shares outstanding	13,205,450	13,005,450	13,205,450	12,408,669

XML

Shareholders Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, shares at Dec. 31, 2012	11,725,800
Beginning Balance, value at Dec. 31, 2012	$ 57,302	$ 96,476	$ (190,115)	$ (36,337)
Net Income (loss)			(4,790)	(4,790)
Ending Balance, shares at Dec. 31, 2013	11,725,800
Ending Balance, value at Dec. 31, 2013	$ 57,302	96,476	(194,115)
Common stock issued for services, shares	83,650
Common stock issued for services, value	$ 8,365
Common stock issued for cash, shares	1,196,000
Common stock issued for cash, value	$ 119,600
Net Income (loss)			(95,516)	(95,516)
Ending Balance, shares at Jun. 30, 2014	13,005,450
Ending Balance, value at Jun. 30, 2014	$ 185,267	$ 96,476	$ (290,421)
Beginning Balance, value at Dec. 31, 2014				(22,644)
Net Income (loss)				(21,785)
Ending Balance, value at Jun. 30, 2015				$ (44,429)

XML

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (21,785)	$ (95,516)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Depreciation and amortization	13,092	631
Common stock issued for services		8,365
Changes in operating assets and liabilities:
Increase in prepaid expense	(24,000)
Increase in other current assets and other assets	(445)	(4,972)
Decrease in accrued salary		(1,050)
Increase in accrued interest	345	465
Increase in accrued liabilities	8,545	1,624
Increase (decrease) in accounts payable	21,333	1,775
Net cash (used in) operating activities	(2,915)	(88,678)
Cash flows from investing activities:
Cash paid for fixed assets		(14,925)
Net cash used in investing activities		(14,925)
Cash flows from financing activities:
Proceeds from common stock sales		119,600
Proceeds from related party payable	1,500	3,350
Payment of related party payable	(6,445)
Net cash provided by financing activities	(4,945)	122,950
Net change in cash	(7,860)	19,347
Cash, beginning of period	36,848	14,205
Cash, end of period	28,988	33,552
Supplemental disclosure of cash flow information:
Cash paid during the period for Income taxes
Cash paid during the period for Interest
NON CASH FINANCING ACTIVITIES:
Common stock issued for services		$ 8,365

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1 Basis of Presentation

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

Note 1:  Basis of Presentation

The accompanying financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The interim financial statements reflect all adjustments, consisting of normal recurring adjustments which, in the opinion of management, are necessary to present a fair statement of the results for the period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the December 31, 2014 financial statements and notes thereto included. The results of operations for the period ended June 30, 2015, are not necessarily indicative of the operating results for the year ended December 31, 2015.

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2 GOING CONCERN

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

Note 2:  Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As shown in the accompanying financial statements, since inception the Company has incurred losses in all quarters except the quarter ended March 31, 2013 and it has a limited operating history.  These factors, among others, may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.  The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.  The Company intends to seek additional funding through equity offerings to fund its business plan.  There is no assurance that the Company will be successful in raising additional funds.

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3 RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2015

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

Note 3:  Related Party Transactions

During the six months ended June 30, 2015, the related party payable had a net increase of $1,500.  The balance of the related party payable was $10,193 and $8,693 as of June 30, 2015 and December 31, 2014, respectively.  This payable is due on demand and has an interest rate of 8%.  Accrued interest on this payable was $2,370 at June 30, 2015.  Beginning in 2013, the Company began accruing salary of $5,500 per month to the CEO for his services.  Effective April 14, 2014, the base salary to be paid to the CEO increased to $6,000 per month.  The balance accrued at June 30, 2015 was $18,612.

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4 Property and Equipment

6 Months Ended

Jun. 30, 2015

Property, Plant and Equipment [Abstract]

4 Property and Equipment

Note 4:  Property and Equipment

The Company’s capital assets consist of warehouse units, computer equipment, office furniture and leasehold improvements for the new office.  Depreciation and amortization is calculated using the straight-line method over the estimated useful life of the asset, ranging from 18 months to 39 years.  Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred.  The cost and related accumulated depreciation of any capital assets that are sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.

Fixed assets and related depreciation for the six months ended June 30, 2015 are as follows: 

Computer equipment	$	5,672
Furniture and fixtures		5,253
Leasehold improvements		4,000
Warehouse units		861,000
Accumulated amortization and depreciation		(21,470	)
Total fixed assets	$	14,294

Depreciation expense was $11,758 and amortization expense was $1,333 for the six months ended June 30, 2015.

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6 SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

SUBSEQUENT EVENTS

Note 6:  Subsequent Events

The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that the fillowing events require disclosure as of the date of issuance.

On May 27, 2015 we filed eviction suits against both our Garfield warehouse tenants. At the hearing before the County Court, the tenant at 4440 Garfield failed to appear and we were awarded possession of 4440 Garfield.

Counsel for the tenant at 4420/4430 Garfield made an appearance before the County Court and counter-claimed for  damages amounting to $16,000. A possession hearing before the District court was set for August 12, 2015.

On July 30, 2015 parties to the litigation executed a Settlement Agreement and Mutual Release, (the "Settlement"), filed as Exhibit 99.1 herewith, which contains numerous provisions fulfillment of  which is expected to result in dismissal of the litigation. Major terms provide:

1. Tenant will pay Landlord $24,000 as consideration for the Settlement, and landlord will apply such payment to discharge rent due from Tenant for May, June and July. Tenant's check number 1131, dated July, 30, 2015 for $24,000 has been received by landlord and deposited to landlord's checking account.  

2. Tenant will pay landlord $8,000 for August rent before August 3, 2015.  

3. Tenant agrees to continue the lease and lease the remainder of landlord's building, i.e. Tenant agrees to immediately take possession of the additional space known as 4440 Garfield and starting September 1, 2015 pay  landlord additional monthly rent of $4,000 per month. Settlement provides that Landlord and tenant will formalize this agreement by mutually executing an addendum to that present lease in now effect between landlord and tenant for 4420/4430 Garfield.  

4. Various mutual commitments are made and agreed to by tenant and landlord. These include to cooperate and act in good faith to jointly resolve any remaining address issues and disputes regarding the land use regulations of the City and County of Denver. The parties agree to undertake and pay for various property modifications believed by the parties to the litigation to be required by the City and County of Denver with a goal to their mutual efforts to comply with all requirements to obtain a certificate of occupancy for the three units known as 4420/4430/4440 Garfield.

Under terms of the Settlement the attorneys will file a "Joint Motion or Stipulation for Dismissal with Prejudice." Once filed, the litigation is terminated.

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4 Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2015

Property, Plant and Equipment [Abstract]

Fixed assets and related depreciation

Computer equipment	$	5,672
Furniture and fixtures		5,253
Leasehold improvements		4,000
Warehouse units		861,000
Accumulated amortization and depreciation		(21,470	)
Total fixed assets	$	854,455

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5 Long-Term Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

LONG-TERM DEBT

Note 5:  Long-Term Debt

On September 15, 2014,  the Company entered into a promissory note for $840,000 on the purchase three warehouse units known as 4420, 4430 and 4440 Garfield Street, Denver, Colorado. The Company is leasing each of the three separate units to licensed third party growers for cannabis cultivation.  The terms of the variable interest 25 year amortization note carried by the seller of the property call for payments to seller as follows:

1	First and Second year interest rate at 7% with 25 year amortization payment at $5,936.95 per month.
2.	Third and Fourth year at 8% with 25 year amortization payment at $6,277.73 per month.
3.	Fifth year at 9% with 25 year amortization payment at $6,639.64 per month.
4.	Balloon payment of $777,255.49 due at end of the fifth year.

The note to seller is secured by the three warehouse units.

As of June 30, 2015, the balance of the note was $831,477 and the annual maturities of the long-term debt were:

Three months ending June 30,
2016	$	13,406
2017		11,705
2018		11,229
2019		795,137
	$	831,477

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3 RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2013
Related Party Transactions [Abstract]
Payment to related party payable	$ 3,350	$ 17,000
Balance of the related party payable	$ 8,293	$ 4,943
Interest rate	8.00%	8.00%
Accrued interest on this payable	$ 1,711	$ 937
Monthly salary	5,500	2,500
Accrued salary	$ 14,612	$ 22,500

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5 Stock Transactions (Details Narrative)	6 Months Ended
	Jun. 30, 2015 USD ($) $ / shares shares
Notes to Financial Statements
Value of shares issed in private placement | $ / shares	$ 0.10
Private placement revenue generated | $	$ 119,600
Increase in CEO monthly salary | $	$ 6,000
Shares issued for services | shares	83,650
Per share value of shares issued for services | $ / shares	$ 0.10

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4 Property and Equipment - Fixed assets and related depreciation (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Computer equipment	$ 5,672
Furniture and fixtures	5,253
Leasehold improvements	4,000
Warehouse units	861,000
Accumulated amortization and depreciation	(21,470)
Total fixed assets	$ 854,455	$ 867,547

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4 Property and Equipment (Details Narrative)	6 Months Ended
	Jun. 30, 2015 USD ($)
Property, Plant and Equipment [Abstract]
Depreciation	$ 409
Amortization expense	$ 222

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5 Long-Term Debt - (Details)	12 Months Ended
	Dec. 31, 2014 USD ($)
Debt Disclosure [Abstract]
First and Second year interest rate	7.00%
First and Second year 25 year amortization monthly payment	$ 5,937
Third and Fourth year interest rate	8.00%
Third and Fourth year 25 year amortization monthly payment	$ 6,278
Fifth year interest rate	9.00%
Fifth year 25 year amortization monthly payment	$ 6,640
Balloon payment at end of the fifth year	$ 777,255

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5 Long-Term Debt - (Details Narrative)	Mar. 31, 2015 USD ($)
Debt Disclosure [Abstract]
2016	$ 13,406
2017	11,705
2018	11,229
2019	795,137
Total maturities for note payable outstanding	$ 831,477

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5 Long-Term Debt (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2015
Debt Disclosure [Abstract]
Promissory note for purchase three warehouse units	$ 840,000
Length of time to pay off amortization note	25 years
Balance of the note		$ 831,477