0001550737
2017-01-01
2017-03-31
0001550737
2016-12-31
0001550737
2017-03-31
0001550737
2016-01-01
2016-03-31
0001550737
2018-01-30
0001550737
sect:SectorFiveIncMember
2016-03-01
2016-03-22
0001550737
sect:SectorFiveIncMember
2016-03-22
0001550737
sect:KirklandHoldingsIncMember
2016-12-31
0001550737
us-gaap:SeriesAPreferredStockMember
2016-12-31
0001550737
us-gaap:SeriesAPreferredStockMember
2016-11-01
2016-11-02
0001550737
us-gaap:CommonStockMember
2016-11-01
2016-11-02
0001550737
2016-11-01
2016-11-02
0001550737
2015-12-31
0001550737
2016-03-31
0001550737
sect:SectorFiveIncMember
2017-03-31
0001550737
2016-01-01
2016-12-31
0001550737
sect:KirklandHoldingsIncMember
2017-03-31
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
Sector 5, Inc.
0001550737
10-Q
2017-03-31
false
--12-31
No
No
No
Smaller Reporting Company
Q1
2017
18000000
18000000
18000000
18000000
18000000
0.001
0.001
245000000
245000000
0.001
0.001
5000000
5000000
1000000
1000000
1000000
1000000
1000000
14000000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">SECTOR
5, INC. ("Sector 5" or the "Company") was incorporated in the State of Nevada on April 11, 2012. On March
18, 2016 there was a change in control of the Company as a result of a private sale of the Company’s common stock. The
change in control includes plans to relaunch the Company to sell branded electronic products targeting the educational and consumer
electronics markets.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i><u>Basis
of Presentation</u></i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements
reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair
statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected
for the full year ending December 31, 2017. These unaudited condensed financial statements should be read in conjunction with
the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2016.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i><u>Use
of Estimates</u></i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i><u>Revenue
and cost recognition</u></i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company will
recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned
when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped
or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is
reasonably assured.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i><u>Accounts
Receivable</u></i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Revenues
that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when
it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized
to reduce the amount of receivables to its net realizable value. Any allowance for uncollectible amounts is evaluated quarterly.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i><u>Recently
issued accounting pronouncements</u></i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02—<i>Leases (Topic 842)</i>. The guidance
in ASU 2016-02 supersedes the lease recognition requirements in ASC 840, <i>Leases (FAS 13)</i>. ASU 2016-02 requires an entity
to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative
and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption
permitted. The Company is currently evaluating the effect this standard will have on its financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
June 2016, the FASB issued ASU 2016-15—Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and
Cash Payments (a consensus of the FASB’s Emerging Issues Task Force). The new guidance is intended to reduce diversity in
practice in how certain transactions are classified in the statement of cash flows. The ASU is effective for public companies
for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted,
including interim periods within those fiscal years. An entity that elects early adoption must adopt all of the amendments in
the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating
the effects, if any, that the adoption of this guidance will have on its cash flows.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2014, August 2015, April 2016 and May 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09
(ASC Topic 606), Revenue from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers, Deferral
of the Effective Date, ASU 2016- from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers,
Deferral of the Effective Date, ASU 2016-10 (ASC Topic 10 (ASC Topic 606) Revenue from Contracts with Customers, Identifying Performance
Obligations and Licensing, and ASU 2016-12 (ASC Topic 606) Revenue from Contracts with 606) Revenue from Contracts with Customers,
Identifying Performance Obligations and Licensing, and ASU 2016-12 (ASC Topic 606) Revenue from Contracts with accounting for
revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific
guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements
users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
The amendments in these ASUs are effective for fiscal years, and interim periods within those years, beginning after December
15, 2017. Early adoption is permitted for annual periods beginning after December 15, 2016. This standard may be applied process
of assessing the impact, if any, on its consolidated financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact
on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting
pronouncements that have been issued that might have a material impact on its financial position or results of operations.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
reflected in the accompanying financial statements, the Company has an accumulated deficit of $389,028 at March 31, 2017 and had
a net loss of $75,640 for the three month ended March 31, 2017. These factors raise substantial doubt about our ability to continue
as a going concern. The financial statements have been prepared assuming that the Company will continue as a going concern. These
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts
or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">While
the Company is attempting to increase operations and revenues, our cash position may not be significant enough to support our
daily operations. Management intends to raise additional funds by way of debt and equity financing. Management believes that the
actions presently being taken to further implement our business plan and generate increased revenues provide the opportunity for
the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate increased
revenues and in its ability to raise additional funds, there can be no assurances to that effect. The Company’s ability
to continue as a going concern is dependent upon the ability to further implement its business plan and generate increased revenues.
The financial statements do not include any adjustments that might be necessary if the Company was unable to continue as a going
concern.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of March 31, 2017, and December 31, 2016, the Company has $1,375 and $57,743, respectively of finished goods inventory. Inventory
consists of Chromebooks and charging carts. Inventory is carried at the lower of cost or market.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
March 22, 2016, Company executed a promissory note with Sector Five, Inc., a privately held Delaware corporation, for the purchase
of inventory in the amount of $120,006. The note is due in one year and bears interest at 5%. The balance of the note was subsequently
reduced by $34,840 for $17,160 of inventory that was returned to the lender and $7,260 that was determined to be obsolete. As
of March 31, 2017, there is $85,166 and $5,853 of principal and interest, respectively, due on this note. This note is currently
past due.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">   </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Since
the change in control, the Company’s CEO and Chairman has loaned funds to the Company in support of its operations by providing
payments to the Company's vendors and advances for operations. These amounts are considered due on demand and are non-interest
bearing. As of March 31, 2017, and December 31, 2016, the balance due for these advances is $168,707 and $185,011, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Since
the change in control, Kirkland Holdings, Inc., a company with common management, has advanced funds to the Company for operations.
The advances are unsecured, non-interest bearing and due on demand. As of March 31, 2017, and December 31, 2016, the balance due
for these advances is $21,716 and $12,431, respectively.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><u>Preferred
Stock</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
company has 5,000,000 shares of preferred stock authorized, 1,000,000 of which have been designed Series A. Shares of Series A
Preferred Stock may be converted at the holder’s election into shares of common stock, at the conversion rate of fifty shares
of fully paid and nonassessable common stock for one share of Series A Preferred Stock. Series A is entitled to votes equal
to the number of common shares into which the preferred could be converted into and has liquidation preferences of $2.00 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
November 2, 2016, the Board approved the exchange of 14,000,000 shares of common stock for the issuance of 1,000,000 shares of
Series A Preferred Stock. In addition, the Board approved a three for one forward stock split immediately following the surrender
of the 14,000,000 common shares.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
above designation and forward split were approved by FINRA on February 14, 2017 and have been retroactively presented in these
financial statements.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
November 2, 2016, the Board approved the exchange of 14,000,000 shares of common stock for the issuance of 1,000,000 shares of
Series A Preferred Stock.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Management
has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the
financial statement were available to be issued, and has determined that there are no additional material subsequent events exist
that require disclosure in these financial statements.</font></p>
Nevada
2012-04-11
168707
185011
34840
17160
7260
12431
21716
2.00
0.05
the Board approved a three for one forward stock split immediately following the surrender of the 14,000,000 common shares.
120006
85166
5853
1000000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements
reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair
statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected
for the full year ending December 31, 2017. These unaudited condensed financial statements should be read in conjunction with
the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2016.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company will
recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned
when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped
or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is
reasonably assured.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Revenues
that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when
it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized
to reduce the amount of receivables to its net realizable value. Any allowance for uncollectible amounts is evaluated quarterly.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02—<i>Leases (Topic 842)</i>. The guidance
in ASU 2016-02 supersedes the lease recognition requirements in ASC 840, <i>Leases (FAS 13)</i>. ASU 2016-02 requires an entity
to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative
and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption
permitted. The Company is currently evaluating the effect this standard will have on its financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
June 2016, the FASB issued ASU 2016-15—Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and
Cash Payments (a consensus of the FASB’s Emerging Issues Task Force). The new guidance is intended to reduce diversity in
practice in how certain transactions are classified in the statement of cash flows. The ASU is effective for public companies
for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted,
including interim periods within those fiscal years. An entity that elects early adoption must adopt all of the amendments in
the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating
the effects, if any, that the adoption of this guidance will have on its cash flows.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2014, August 2015, April 2016 and May 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09
(ASC Topic 606), Revenue from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers, Deferral
of the Effective Date, ASU 2016- from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers,
Deferral of the Effective Date, ASU 2016-10 (ASC Topic 10 (ASC Topic 606) Revenue from Contracts with Customers, Identifying Performance
Obligations and Licensing, and ASU 2016-12 (ASC Topic 606) Revenue from Contracts with 606) Revenue from Contracts with Customers,
Identifying Performance Obligations and Licensing, and ASU 2016-12 (ASC Topic 606) Revenue from Contracts with accounting for
revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific
guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements
users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
The amendments in these ASUs are effective for fiscal years, and interim periods within those years, beginning after December
15, 2017. Early adoption is permitted for annual periods beginning after December 15, 2016. This standard may be applied process
of assessing the impact, if any, on its consolidated financial statements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact
on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting
pronouncements that have been issued that might have a material impact on its financial position or results of operations.</font></p>
89138
4271
-231738
-307378
-313388
-389028
62650
62650
18000
18000
1000
1000
320876
311649
320876
311649
293528
275589
4557
5853
22791
30207
89138
4271
89138
4271
30117
1042
57743
1375
413
18000000
20000000
-0.00
-0.00
-75640
-1970
-1296
1296
-74344
-1970
72292
1970
21898
1970
39252
2695
8447
-2052
91536
89484
865
1854
62
13
989
-49
-7020
22963
-141402
134382
22963
8009
-23012
1296
7416
-21042
45449
29075
413
-75640
-1970