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: March 31, 2018 Commission File Number 333-176154

HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

(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)
4316 Tennyson Street, Denver, Colorado	80212
(Address of principal executive offices)	(Zip code)

(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 issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months, and (2) has been subject to such filing requirements for the past 90 days.  Yes þ     NO o

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(Section 232.405 of this chapter) during the preceding 12 months(or such shorter period that the registrant was required to submit and post such files. Yes ☑  No ☐

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 definitions of “large accelerated filer,”  “accelerated filer,” and “smaller reporting company” in Rule 12(b) of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller Reporting Company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):  Yes o     No  þ

As of May 15, 2018, there were 13,205,450 shares of our common stock, no par value outstanding.

Index

	Page
PART I  FINANCIAL INFORMATION
Item 1. Financial Statements for the period ended March 31, 2018
Consolidated Balance Sheets	3
Consolidated Statements of Operations (Unaudited)	4
Consolidated Statements of Cash Flows (Unaudited)	5
Notes to Consolidated Financial Statements (Unaudited)	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
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. Submission of Matters to a Vote of Security Holders	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 TREASURE FINDERS, INC. AND SUBSIDIARY

 Consolidated Balance Sheets

	March 31,			December 31,
	2018			2017
	(unaudited)
Assets
Current Assets:
Cash	$	39,463		$	49,437
Rent receivable		1,210			4,176
Related party receivable		1,398			-
Prepaid expenses		1,248			-
Total current assets		43,319			53,613
Property and equipment, net		792,060			797,557
Other assets:
Security deposits		1,400			1,400
Total assets	$	836,779		$	852,570
Liabilities and Shareholders' Equity (Deficit)
Liabilities:
Accounts payable	$	16,992		$	21,017
Accrued wages		64,612			43,612
Accrued liabilities		55,906			61,788
Accrued interest – related party		1,218			4,505
Note payable, current portion		8,255			11,090
Related party note payable		-			9,397
Total current liabilities		146,983			151,409
Long term debt, net of current portion		789,774			789,774
Total liabilities		936,757			941,183
Commitments and Contingencies
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		(411,721	)		(400,356	)
Total shareholders' deficit		(99,978	)		(88,613	)
Total liabilities and shareholders' deficit	$	836,779		$	852,570

See accompanying notes to unaudited consolidated financial statements.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

 Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended
	March 31,
	2018			2017
Commission income	$	48,004		$	49,477
Rental and property management income		70,907			60,839
Total revenue	$	118,911		$	110,316
Operating expenses:
Commission expense		31,860			4,566
Professional fees		6,810			6,830
General and administrative		75,530			78,631
Total operating expenses		114,200			90,027
Operating income		4,711			20,289
Other expense
Interest expense		(16,076	)		(16,585	)
Total other expense		(16,076	)		(16,585	)
Income before taxes		(11,365	)		3,704
Income tax expense		—			—
Net income (loss)	$	(11,365	)	$	3,704
Basic and diluted income (loss) per share	$	(0.00	)	$	0.00
Basic and diluted weighted average
common shares outstanding		13,205,450			13,205,450

See accompanying notes to unaudited consolidated financial statements.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

	For the Three Months Ended
	March 31,
	2018			2017
Cash flows from operating activities:
Net income (loss)	$	(11,365	)	$	3,704
Adjustments to reconcile net income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization expense		5,497			5,969
Changes in operating assets and liabilities:
Decrease in rent receivable		2,966			-
Increase in prepaid expense		(1,248	)		(10,677	)
Increase (decrease) in accrued interest		(3,287	)		369
Increase in accrued salary		21,000			-
Increase (decrease) in accrued liabilities		(5,882	)		(9,170	)
Increase (decrease) in accounts payable		(4,025	)		763
Net cash provided by (used in) operating activities		3,656			(9,042	)
Cash flows from financing activities:
Proceeds from related party payable		40			1,405
Payment of  related party payable		(10,835	)		(3,000	)
Payment of long term debt		(2,835	)		(2,617	)
Net cash used in financing activities		(13,630	)		(4,212	)
Net change in cash		(9,974	)		(13,254	)
Cash, beginning of period		49,437			60,202
Cash, end of period	$	39,463		$	46,948
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes	$	-		$	-
Interest	$	15,998		$	16,216
NON CASH FINANCING ACTIVITIES:
None

See accompanying notes to unaudited consolidated financial statements.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

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 consolidated or omitted. It is suggested that these financial statements be read in conjunction with the December 31, 2017 financial statements and notes thereto included in our December 31, 2017 Annual Report on Form 10-K filed with the SEC. The results of operations for the period ended March 31, 2018, are not necessarily indicative of the operating results for the year ended December 31, 2018.

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.   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. 

Note 3:  Related Party Transaction

During the three months ended March 31, 2018, the related party payable had a net decrease of $9,398.  The balance of the related party payable was $0 and $9,398 as of March 31, 2018 and December 31, 2017, respectively.  This payable was due on demand and has an interest rate of 8%.  Accrued interest on this payable was $1,218 and $4,505 at March 31, 2018 and December 31, 2017, respectively.  Interest expense for the three months ended March 31, 2018 and 2017 was $78 and $369, respectively.  At March 31, 2018 there was a receivable due from the related party to the Company of $1,398 which was paid back to the Company on May 2, 2018.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

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 office leasehold improvements.  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.

Property and equipment as of March 31, 2018 and December 31, 2017 consisted of the following: 

	March 31, 2018			December 31, 2017
Computer equipment	$	5,672		$	5,672
Furniture and fixtures		7,777			7,777
Leasehold improvements		4,000			4,000
Warehouse units		861,000			861,000
Accumulated amortization and depreciation		(86,389	)		(80,892	)
Total property and equipment	$	792,060		$	797,557

Depreciation and amortization expense was $5,497 and $5,969 for the three months ended March 31, 2018 and 2017, respectively.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Note 5:  Long-Term Debt

On September 15, 2014, the Company entered into a promissory note for $840,000 on the purchase of 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.

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

As of March 31, 2018 the balance of the note was $798,029. The annual maturities of the long-term debt were:

Year Ending December 31,
2018		8,255
2019		789,774
	$	798,029

Note 6:  Subsequent Events

Effective May 1, the Board of Directors of the Company resolved that at a time of its choosing, management shall cause to be filed all documents necessary to designate 100,000 shares of its 5,000,000 authorized preferred shares to be known as Series A Preferred.  No designation has occurred as of the date of issuance.

Effective June 1, 2018, the base salary of the Company CEO and Managing Director will decrease from $10,000 to $9,000 per month.

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 three months ended March 31, 2018 was $11,365.  We generated operating revenue from three sources, sales commissions, property management, and commercial real estate for legal cannabis cultivation. We manage approximately 115 rental real estate owned by non-related third parties. In comparison we had net income for the three months ended March 31, 2017 of $3,704.

For the three months ended March 31, 2018 the Company generated a total of $118,911 in revenues, consisting of $48,004 from sales commissions and $70,907 from rental and property management.  During the three months ended March 31, 2017 we generated a total of $110,316 in revenues, consisting of $49,477 from sales commissions and $60,839 from rental and property management.

During the three months ending March 31, 2018 we incurred operating expenses totaling $114,200. Such expenses consisted primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  During the three months ended March 31, 2017 we incurred a total of $90,027 of operating expenses consisting primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  The primary reason for the increase in expenses during the current year was due to an increase in commissions being paid and also an increase in our property management expenses.

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Liquidity and Capital Resources

At March 31, 2018, we had $39,463 in cash and working capital deficit of $103,664.  At December 31, 2017 we had $49,437 in cash and a working capital deficit of $97,796.

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.

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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.

None.

Item 4 -  Submission of Matters to a Vote of Security Holders.

None.

Item 5 -  Other Information.

None.

- 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
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

- 12 -

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:  May 15, 2018	BY:	/s/ Corey Wiegand
		Corey Wiegand
		President

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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

May 15, 2018

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 March 31, 2018 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

May 15, 2018

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 15, 2018
Document And Entity Information
Entity Registrant Name	Home Treasure Finders, Inc.
Entity Central Index Key	0001527102
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
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	Q1
Document Fiscal Year Focus	2018

XML

Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 39,463	$ 49,437
Rent receivable	1,210	4,176
Related party receivable	1,398
Prepaid expenses	1,248
Total current assets	43,319	53,613
Property and equipment, net	792,060	797,557
Other assets:
Security deposits	1,400	1,400
Total assets	836,779	852,570
Liabilities:
Accounts payable	16,992	21,017
Accrued wages	64,612	43,612
Accrued liabilities	55,906	61,788
Accrued interest	1,218	4,505
Note payable, current portion	8,255	11,090
Related party note payable		9,397
Total current liabilities	146,983	151,409
Long term debt	789,774	789,774
Total liabilities	936,757	941,183
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	(411,721)	(400,356)
Total shareholders' equity (deficit)	(99,978)	(88,613)
Total liabilities and shareholders' equity (deficit)	$ 836,779	$ 852,570

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
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	13,205,450
Common Stock Outstanding	13,205,450	13,205,450

XML

Consolidated Statements of Operations (Uanudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Commission income	$ 48,004	$ 49,477
Rental and property management income	70,907	60,839
Total revenue	118,911	110,316
Operating expenses:
Commision expense	31,860	4,566
Professional fees	6,810	6,830
General and Administrative	75,530	78,631
Total operating expenses	114,200	90,027
Operating income	4,711	20,289
Other expense
Interest expense	(16,076)	(16,585)
Total other expense	(16,076)	(16,585)
Income before taxes	(11,365)	3,704
Income tax expense
Net income (loss)	$ (11,365)	$ 3,704
Basic and diluted loss per share	$ (0.00)	$ 0.00
Basic and diluted weighted average common shares outstanding	13,205,450	13,205,450

XML

Consolidated Statements of Cash Flows (Uanudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ (11,365)	$ 3,704
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization expense	5,497	5,969
Changes in operating assets and liabilities:
Decrease in rent receivable	2,966
Increase in prepaid expense	(1,248)	(10,677)
Increase (decrease) in accrued interest	(3,287)	369
Increase in accrued salary	21,000
Increase (decrease) in accrued liabilities	(5,882)	(9,170)
Increase (decrease) in accounts payable	(4,025)	763
Net cash provided by (used in) operating activities	3,656	(9,042)
Cash flows from financing activities
Proceeds from related party payable	40	1,405
Payment of related party payable	(10,835)	(3,000)
Payment of long term debt	(2,835)	(2,617)
Net cash used in financing activities	(13,630)	(4,212)
Net change in cash	(9,974)	(13,254)
Cash, beginning of period	49,437	60,202
Cash, end of period	39,463	46,948
Supplemental disclosure of cash flow information:
Cash paid during the period for Income taxes
Cash paid during the period for Interest	$ 15,998	$ 16,216

XML

1 Basis of Presentation

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 consolidated or omitted. It is suggested that these financial statements be read in conjunction with the December 31, 2017 financial statements and notes thereto included in our December 31, 2017 Annual Report on Form 10-K filed with the SEC. The results of operations for the period ended March 31, 2018, are not necessarily indicative of the operating results for the year ended December 31, 2018.

XML

2 Going Concern

3 Months Ended

Mar. 31, 2018

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.   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 Transaction

3 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

Related Party Transaction

Note 3:  Related Party Transaction

During the three months ended March 31, 2018, the related party payable had a net decrease of $9,398.  The balance of the related party payable was $0 and $9,398 as of March 31, 2018 and December 31, 2017, respectively.  This payable was due on demand and has an interest rate of 8%.  Accrued interest on this payable was $1,218 and $4,505 at March 31, 2018 and December 31, 2017, respectively.  Interest expense for the three months ended March 31, 2018 and 2017 was $78 and $369, respectively.  At March 31, 2018 there was a receivable due from the related party to the Company of $1,398 which was paid back to the Company on May 2, 2018.

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4 Property and Equipment

3 Months Ended

Mar. 31, 2018

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Note 4:  Property and Equipment

The Company's capital assets consist of warehouse units, computer equipment, office furniture and office leasehold improvements.  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.

Property and equipment as of March 31, 2018 and December 31, 2017 consisted of the following: 

	March 31, 2018			December 31, 2017
Computer equipment	$	5,672		$	5,672
Furniture and fixtures		7,777			7,777
Leasehold improvements		4,000			4,000
Warehouse units		861,000			861,000
Accumulated amortization and depreciation		(86,389	)		(80,892	)
Total property and equipment	$	792,060		$	797,557

Depreciation and amortization expense was $5,497 and $5,969 for the three months ended March 31, 2018 and 2017, respectively.

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5 Long-Term Debt

3 Months Ended

Mar. 31, 2018

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 of 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.

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

As of March 31, 2018 the balance of the note was $798,029. The annual maturities of the long-term debt were:
 

Year Ending December 31,
2018		8,255
2019		789,774
	$	798,029

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6 Subsequent Events

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

SUBSEQUENT EVENTS

Note 6:  Subsequent Events

Effective May 1, the Board of Directors of the Company resolved that at a time of its choosing, management shall cause to be filed all documents necessary to designate 100,000 shares of its 5,000,000 authorized preferred shares to be known as Series A Preferred.  No designation has occurred as of the date of issuance.

Effective June 1, 2018, the base salary of the Company CEO and Managing Director will decrease from $10,000 to $9,000 per month.

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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4 Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2018

Property, Plant and Equipment [Abstract]

Depreciation

Property and equipment as of March 31, 2018 and December 31, 2017 consisted of the following: 

	March 31, 2018			December 31, 2017
Computer equipment	$	5,672		$	5,672
Furniture and fixtures		7,777			7,777
Leasehold improvements		4,000			4,000
Warehouse units		861,000			861,000
Accumulated amortization and depreciation		(86,389	)		(80,892	)
Total property and equipment	$	792,060		$	797,557

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3 Related Party Transaction (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Related Party Transactions [Abstract]
Decrease in related party payable	$ 9,398
Balance of the related party payable	0	$ 9,398	$ 9,398
Accrued interest on this payable	1,218		$ 4,505
Interest expense	$ 78	$ 369
Interest Rate	8.00%	8.00%	8.00%

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4 Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 5,497	$ 5,969

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4 Property and Equipment - Depreciation (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Computer equipment	$ 5,672	$ 5,672
Furniture and fixtures	7,777	7,777
Leasehold improvements	4,000	4,000
Warehouse units	861,000	861,000
Accumulated amortization and depreciation	(86,389)	(80,892)
Total property and equipment	$ 792,060	$ 797,557

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5 Long-Term Debt - (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
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)	Dec. 31, 2017 USD ($)
Debt Disclosure [Abstract]
2018	$ 8,255
2019	789,774
Total maturities for note payable outstanding	$ 798,029

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5 Long-Term Debt (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
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		$ 809,037