10-Q

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2018

or

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 333-207488 

HOMETOWN INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Nevada	46-5705488
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

25 E. Grant Street 

Woodstown, NJ, 08098

(Address of principal executive offices) (Zip Code)

(856) 759-9034

(Registrant’s telephone number, including area code)

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 preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☒    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 (§232.405 of this chapter) during the preceding 12 months (or for 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, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company” and “emerging growth company” in rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
(Do not check if a smaller reporting company)		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐    No  ☒

As of November 15, 2018, the registrant had 5,235,340 shares of common stock issued and outstanding.

HOMETOWN INTERNATIONAL INC.

QUARTERLY REPORT ON FORM 10-Q

September 30, 2018

TABLE OF CONTENTS

		PAGE
PART I - FINANCIAL INFORMATION		2
Item 1.	Financial Statements	2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
PART II - OTHER INFORMATION		22
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosure	22
Item 5.	Other Information	22
Item 6.	Exhibits	23
SIGNATURES		24

1 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

The following unaudited interim financial statements of Hometown International Inc. (referred to herein as the “Company,” “we,” “us” or “our”) are included in this quarterly report on Form 10-Q:

Hometown International, Inc.

Financial Statements for the Three and Nine Months Ended September 30, 2018 and 2017

Index to the Consolidated Financial Statements

Condensed Consolidated Balance Sheets at September 30, 2018 (Unaudited) and December 31, 2017	3
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2018 and 2017 (Unaudited)	4
Condensed Consolidated Statement of Stockholders’ Deficit for the Nine Months ended September 30, 2018 (Unaudited)	5
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017 (Unaudited)	6
Notes to the Condensed Consolidated Financial Statements (Unaudited)	7

2 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Condensed Consolidated Balance Sheets

ASSETS
	September 30, 2018			December 31, 2017
	(Unaudited)
Current Assets
Cash	$	2,090		$	5,341
Prepaid expenses		—			1,360
Inventory		552			612
Total Current Assets		2,642			7,313
Leasehold improvements and equipment, net		15,197			20,668
Total  Assets	$	17,839		$	27,981
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued expenses	$	143,792		$	122,478
Due to Officers - related parties		27,809			24,951
Note payable - related party		104,318			69,468
Note payable		81,000			81,000
Total  Liabilities		356,919			297,897
Commitments and Contingencies (See Note 7)		—			—
Stockholders’ Deficit
Common stock, $0.0001 par value; 100,000,000 shares authorized, 5,235,340  and 5,242,340 issued and outstanding, respectively		523			524
Additional paid-in capital		296,189			278,296
Accumulated deficit		(635,792	)		(548,736	)
Total Stockholders’ Deficit		(339,080	)		(269,916	)
Total Liabilities and Stockholders’ Deficit	$	17,839		$	27,981

See accompanying notes to condensed consolidated unaudited financial statements.

3 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended			For the Three Months Ended			For the Nine Months Ended			For the Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Sales	$	6,655		$	10,982		$	24,603		$	40,921
Costs and Expenses
Food, beverage and supplies		4,416			8,467			15,466			28,116
Labor		—			269			136			2,797
Direct operating and occupancy		2,172			2,115			6,647			7,530
Depreciation		1,844			1,841			5,471			5,468
Professional fees		7,710			10,081			32,246			32,795
General and administrative		12,610			13,956			37,294			37,104
Total cost and expenses		28,752			36,729			97,260			113,810
Loss from Operations		(22,097	)		(25,747	)		(72,657	)		(72,889	)
Other Expenses
Gain on debt settlement		1,188			—			1,188			—
Interest Expense		(5,544	)		(3,998	)		(15,587	)		(11,460	)
Total Other Income/(Expenses)		(4,356	)		(3,998	)		(14,399	)		(11,460	)
LOSS FROM OPERATIONS BEFORE INCOME TAXES		(26,453	)		(29,745	)		(87,056	)		(84,349	)
Provision for Income Taxes		—			—			—			—
NET LOSS	$	(26,453	)	$	(29,745	)	$	(87,056	)	$	(84,349	)
Net Loss Per Share  - Basic and Diluted	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Weighted average number of shares outstanding during the period - Basic and Diluted		5,235,340			5,242,340			5,235,904			5,242,340

See accompanying notes to condensed consolidated unaudited financial statements.

4 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Condensed Consolidated Statement of Stockholders’ Deficit

For the nine months ended September 30, 2018

(Unaudited)

	Common stock						Additional						Total
							paid-in			Accumulated			Stockholders’
	Shares			Amount			capital			Deficit			Deficit
Balance, December 31, 2017		5,242,340		$	524		$	278,296		$	(548,736	)	$	(269,916	)
Repurchase of common stock		(7,000	)		(1	)		(5,249	)		—			(5,250	)
In kind contribution of services		—			—			23,142			—			23,142
Net loss for the nine months ended September 30, 2018		—			—			—			(87,056	)		(87,056	)
Balance, September 30, 2018		5,235,340		$	523		$	296,189		$	(635,792	)	$	(339,080	)

See accompanying notes to condensed consolidated unaudited financial statements.

5 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	For the Nine Months Ended			For the Nine Months Ended
	September 30, 2018			September 30, 2017
Cash Flows From Operating Activities:
Net Loss	$	(87,056	)	$	(84,349	)
Adjustments to reconcile net loss to net cash used in operations
In-kind contribution of services		23,142			23,142
Depreciation expense		5,471			5,468
Changes in operating assets and liabilities:
Decrease in inventory		60			133
Decrease in prepaid expenses		1,360			—
Increase in accounts payable and accrued expenses		21,314			25,347
Net Cash Used In Operating Activities		(35,709	)		(30,259	)
Net Cash Used In Investing Activities		—			—
Cash Flows From Financing Activities:
Proceeds from/due to officers		2,858			8,603
Repayment of note payable		(5,000	)		(10,000	)
Proceeds from note payable		—			27,608
Proceeds from note payable - related party		34,600			1,460
Net Cash Provided by Financing Activities		32,458			27,671
Net Decrease in Cash		(3,251	)		(2,588	)
Cash at Beginning of Period		5,341			3,845
Cash at End of Period	$	2,090		$	1,257
Supplemental disclosure of cash flow information:
Cash paid for interest	$	164		$	909
Cash paid for taxes	$	—		$	—
Supplemental disclosure of non-cash investing and financing activities:
Repurchase of common stock in exchange for a note payable - related party	$	5,250		$	—

See accompanying notes to condensed consolidated unaudited financial statements.

6 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

(A) Organization

The accompanying condensed consolidated unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.

These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 28, 2018.

It is management’s opinion that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year.

Hometown International, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on May 19, 2014. The Company is the originator of a new “Delicatessen” concept (“Your Hometown Deli”). The Company intends that its delicatessens will feature “home-style” sandwiches and other entrees in a casual friendly atmosphere. Hometown Delis are designed to be comfortable community gathering places for guests of all ages.

On January 18, 2014, Your Hometown Deli, LLC. was formed under the laws of the State of New Jersey. On May 29, 2014, Your Hometown Deli, LLC, entered into a Membership Interest Purchase Agreement with Hometown International, Inc. For accounting purposes, this transaction is being accounted for as a merger of entities under common control and has been treated as a recapitalization of Hometown International, Inc. with Your Hometown Deli, LLC, as the accounting acquirer). The historical financial statements of the accounting acquirer became the financial statements of the registrant. The Company did not recognize goodwill or any intangible assets in connection with the transaction. The 5,000,000 shares issued to the shareholder of Your Hometown Deli, LLC., in conjunction with the share exchange transaction has been presented as outstanding for all periods.

The Company’s accounting year end is December 31, which was the year end of Your Hometown Deli, LLC.

(B) Principles of Consolidation

The accompanying September 30, 2018 and 2017, condensed consolidated financial statements include the accounts of Hometown International, Inc. and its wholly owned subsidiary, Your Hometown Deli, LLC. All intercompany accounts have been eliminated upon consolidation.

7 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

(C) Use of Estimates

In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Significant estimates include valuation of in kind contribution of service and valuation of deferred tax assets. Actual results could differ from those estimates.

(D) Cash and Cash Equivalents

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At September 30, 2018 and December 31, 2017, the Company had no cash equivalents.

(E) Loss Per Share

Basic and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by FASB ASC No. 260, “Earnings Per Share.” Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. The Company has 0 and 484,680 shares issuable upon the exercise of warrants that were not included in the computation of dilutive September 30, 2018 and 2017, respectively.

(F) Income Taxes

The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the Tax Act) was enacted into law and the new legislation contains several key tax provisions that affected us, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation are expected over the next 12 months, we consider the accounting of the transition tax, deferred tax re-measurements, and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance with SAB 118.

8 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

(G) Property and Equipment

Property and equipment is recorded at cost and depreciated or amortized using the straight-line method over the estimated useful life of the asset or the underlying lease term for leasehold improvements, whichever is shorter onset the property and equipment is put into service.

(H) Revenue Recognition

Effective January 1, 2018, the Company recognizes revenue in accordance with Accounting Standards Codification 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2017, and the Company adopted the standard using the modified retrospective approach effective January 1, 2018.

The Company generates revenue operating a delicatessen. Revenue from the operations of Company-owned delicatessen are recognized when sales occur.

(I) Fair Value of Financial Instruments

The Company measures its financial assets and liabilities in accordance with GAAP. For certain of our financial instruments, including cash, accounts payable, and the short-term portion of long-term debt, the carrying amounts approximate fair value due to their short maturities.

We adopted accounting guidance for financial and non-financial assets and liabilities (ASC 820). The adoption did not have a material impact on our results of operations, financial position or liquidity. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

● Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

9 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

● Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

● Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

(J) Recent Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 affects any entity that enters into a lease, with some specified scope exemptions. The guidance in this Update supersedes Topic 840, Leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For public companies, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact of adopting ASU No. 2016-02 on our consolidated financial statements.

In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. This guidance will be effective for us in the first quarter of 2020 on a prospective basis, and early adoption is permitted. We do not expect the standard to have a material impact on our consolidated financial statements.

All other newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable.

(K) Business Segments

The Company operates in one segment and therefore segment information is not presented.

(L) Inventories

Inventories consist of food and beverages, and are stated at cost of $552.

10 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

(M) Advertising

Advertising costs are expensed as incurred. These costs are included in direct operating & occupancy expenses and totaled $0 and $184 for the nine months ended September 30, 2018 and 2017, respectively.

NOTE 2 LEASEHOLD IMPROVEMENT AND EQUIPMENT

Leasehold improvement and equipment consist of the following at September 30, 2018 and December 31, 2017:

	September 30,			December 31,
	2018			2017
Leasehold Improvements		33,455			33,455
Equipment		3,120			3,120
Leasehold Improvements and Equipment		36,575			36,575
Less: Accumulated Depreciation		(21,378	)		(15,907	)
Leasehold Improvements and Equipment, Net	$	15,197		$	20,668

Depreciation expense was $5,471 and $5,468 for the nine months ended September 30, 2018 and 2017, respectively.

NOTE 3 NOTE PAYABLE – RELATED PARTY

On September 27, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $1,200. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on September 27, 2019. As of September 30, 2018, the Company accrued $1 in interest expense (See Note 8).

On August 23, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $2,400. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 23, 2019. As of September 30, 2018, the Company accrued $25 in interest expense (See Note 8).

On July 26, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $10,500. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 26, 2019. As of September 30, 2018, the Company accrued $190 in interest expense (See Note 8).

On July 9, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $1,500. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 9, 2019. As of September 30, 2018, the Company accrued $34 in interest expense (See Note 8).

On February 22, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $19,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on February 22, 2019. As of September 30, 2018, the Company accrued $1,170 in interest expense (See Note 8).

11 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

On January 22, 2018, we entered into a Stock Repurchase Agreement with Benchmark Capital, LLC, a related party, to repurchase 7,000 shares of common stock, for an aggregate purchase price of $5,250. The transaction closed on January 22, 2018. We funded the repurchase through the issuance of a promissory note to Benchmark Capital, LLC dated January 22, 2018 in the amount of $5,250. Pursuant to the terms of the note, the note is bearing 6% interest, unsecured and is due on or before July 31, 2018. As of September 30, 2018, the Company accrued $242 in interest expense and paid $164 of interest On August 3, 2018, the note was extended to December 31, 2018. (See Note 6(C) and 8).

On December 27, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $5,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on December 27, 2018. As of December 31, 2017, the Company accrued $6 in interest expense. On January 11, 2018, the principal amount was repaid in full (See Note 8).

On November 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $10,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 15, 2018. As of September 30, 2018, the Company accrued $910 in interest expense. This note is currently in default (See Note 8).

On October 26, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $3,400. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on October 26, 2018. As of September 30, 2018, the Company accrued $330 in interest expense. The note is currently in default (See Note 8).

On August 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $2,608. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 15, 2018. As of September 30, 2018, the Company accrued $310 in interest expense. The note is currently in default (See Note 8).

On July 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $341. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 19, 2018. As of September 30, 2018, the Company has accrued $43 in interest expense. The note is currently in default (See Note 8).

On August 9, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $1,119. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 9, 2018. As of September 30, 2018, the Company has accrued $135 in interest expense. The note is currently in default (See Note 8).

On January 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $5,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on January 19, 2018. As of September 30, 2018, the Company accrued $922 in interest expense. The note is currently in default (See Note 8).

On March 21, 2016, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2017. As of September 30, 2018, the Company accrued $5,724 in interest expense. The note is currently in default (See Note 8).

12 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

On November 9, 2015, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 9, 2016. As of September 30, 2018, Company accrued $6,651 in interest expense. The note is currently is in default (See Note 8).

On October 16, 2014, the Company entered into an unsecured promissory note with a related party in the amount of $2,000. Pursuant to the terms of the note, the note is non-interest bearing, unsecured and is due on demand (See Note 8).

NOTE 4 DUE TO OFFICERS – RELATED PARTY

During the nine months ended September 30, 2018, certain officers paid an aggregate $2,858 in expenses on Company’s behalf as an advance. Pursuant to the terms of the note, the note was non-interest bearing, unsecured and was due on demand (See Note 8).

As of December 31, 2017, certain officers paid an aggregate $24,951 in expenses on Company’s behalf as an advance. Pursuant to the terms of the note, the note was non-interest bearing, unsecured and was due on demand (See Note 8).

NOTE 5 NOTE PAYABLE

On March 21, 2017, the Company entered into an unsecured promissory note in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2018. As of September 30, 2018, the Company accrued $3,286 in interest expense. The note is currently in default.

On August 22, 2016, the Company entered into an unsecured promissory note in the amount of $25,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 22, 2017. As of September 30, 2018, the Company accrued $5,848 in interest expense. The note is currently in default.

On March 17, 2016, the Company entered into an unsecured promissory note in the amount of $12,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2017. As of September 30, 2018, the Company accrued $3,451 in interest expense. The note is currently in default.

On February 11, 2016, the Company entered into an unsecured promissory note in the amount of $4,000. Pursuant to the terms of the note, the note is bearing 4% interest, unsecured and is due on demand. As of September 30, 2018, the Company accrued $443 in interest expense.

On November 12, 2015, the Company entered into an unsecured promissory note in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 12, 2016. As of September 30, 2018, the Company accrued $6,651 in interest expense. The note is currently is in default.

13 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

NOTE 6 STOCKHOLDERS’  DEFICIT

(A) Common Stock Issued for Cash

The Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.0001 per share.

(B) In kind contribution of services

For the nine months ended September 30, 2018, the Company recorded $23,142 as in kind contribution of services provided by President and Vice President of the Company (See Note 8).

For the year ended December 31, 2017, the Company recorded $30,855 as in kind contribution of services provided by President and Vice President of the Company (See Note 8).

(C) Common stock repurchase

On January 22, 2018, we entered into a Stock Repurchase Agreement with Benchmark Capital, LLC, a related party, to repurchase 7,000 shares of common stock, for an aggregate purchase price of $5,250. The transaction closed on January 22, 2018. We funded the repurchase through the issuance of a promissory note to Benchmark Capital, LLC dated January 22, 2018 in the amount of $5,250. Pursuant to the terms of the note, the note is bearing 6% interest, unsecured and is due on or before July 31, 2018. As of September 30, 2018, the Company accrued $242 in interest expense and paid $164 of interest. On August 3, 2018, the note was extended to December 31, 2018 (See Note 3 and 8 ).

NOTE 7 COMMITMENTS AND CONTINGENCIES

Operating Lease Agreement

On July 1, 2014, the Company entered into a five-year non-cancelable operating lease with a related party for its store space at a monthly rate of $500. On September 21, 2015, the Company executed the lease and opened the store on October 14, 2015. On December 29, 2015, the Company signed an addendum to the lease for the lease agreement to start 30 days after the opening of the deli. The store opened on October 14, 2015, the first payments would have been due on November 15, 2015, however since the deli was not fully functioning, the first monthly rent payment was due January 1, 2016. For the nine months ended September 30, 2018 and 2017, the Company had a rent expense of $4,500 and $4,500, respectively (See Note 8).

NOTE 8 RELATED PARTY TRANSACTIONS

On July 1, 2014, the Company entered into a five-year non-cancelable operating lease with a related party for its store space at a monthly rate of $500. On September 21, 2015, the Company executed the lease and opened the store on October 14, 2015. On December 29, 2015, the Company signed an addendum to the lease for the lease agreement to start 30 days after the opening of the deli. The store opened on October 14, 2015, the first payments would have been due on November 15, 2015, however since the deli was not fully functioning, the first monthly rent payment was due January 1, 2016. For the nine months ended September 30, 2018 and 2017, the Company had a rent expense of $4,500 and $4,500, respectively (See Note 7(B)).

14 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

On October 16, 2014, the Company entered into an unsecured promissory note with a related party in the amount of $2,000. Pursuant to the terms of the note, the note is non-interest bearing, unsecured and is due on demand (See Note 3).

On January 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $5,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on January 19, 2018. As of September 30, 2018, the Company accrued $922 in interest expense. The note is currently in default (See Note 3).

On July 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $341. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 19, 2018. As of September 30, 2018, the Company accrued $43 in interest expense. The note is currently in default (See Note 3).

On August 9, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $1,119. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 9, 2018. As of September 30, 2018, the Company accrued $135 in interest expense. This note is currently in default (See Note 3).

On September 27, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $1,200. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on September 27, 2019. As of September 30, 2018, the Company accrued $1 in interest expense (See Note 3).

On August 23, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $2,400. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 23, 2019. As of September 30, 2018, the Company accrued $25 in interest expense (See Note 3).

On July 26, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $10,500. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 26, 2019. As of September 30, 2018, the Company accrued $190 in interest expense (See Note 3).

On July 9, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $1,500. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 9, 2019. As of September 30, 2018, the Company accrued $34 in interest expense (See Note 3).

On February 22, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $19,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on February 22, 2019. As of September 30, 2018, the Company accrued $1,170 in interest expense (See Note 3).

15 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

On December 27, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $5,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on December 27, 2018. As of December 31, 2017, the Company accrued $6 in interest expense. On January 11, 2018, the principal amount was repaid in full (See Note 3).

On November 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $10,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 18, 2018. As of September 30, 2018, the Company accrued $910 in interest expense. This note is currently in default (See Note 3).

On October 26, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $3,400. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on October 26, 2018. As of September 30, 2018, the Company accrued $330 in interest expense. This note is currently in default (See Note 3).

On August 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $2,608. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 15, 2018. As of September 30, 2018, the Company accrued $310 in interest expense. This note is currently in default (See Note 3).

On March 21, 2016, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2017. As of September 30, 2018, the Company accrued $5,724 in interest expense. The note is currently in default (See Note 3).

On November 9, 2015, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 9, 2016. As of September 30, 2018, Company accrued $6,651 in interest expense. The note is currently is in default (See Note 3).

On January 22, 2018, we entered into a Stock Repurchase Agreement with Benchmark Capital, LLC, a related party to repurchase 7,000 shares of common stock, for an aggregate purchase price of $5,250. The transaction closed on January 22, 2018. We funded the repurchase through the issuance of a promissory note to Benchmark Capital, LLC dated January 22, 2018 in the amount of $5,250. Pursuant to the terms of the note, the note is bearing 6% interest, unsecured and is due on or before July 31, 2018. . As of September 30, 2018, the Company accrued $242 in interest expense and paid $164 of interest On August 3, 2018, the note was extended to December 31, 2018. (See Notes 3 and 6(C)).

For the nine months ended September 30, 2018, the Company recorded $23,142 as in kind contribution of services provided by President and Vice President of the Company (See Note 6(B)).

For the year ended December 31, 2017, the Company recorded $30,855 as in kind contribution of services provided by President and Vice President of the Company (See Note 6(B)).

16 

HOMETOWN INTERNATIONAL, INC. AND SUBSIDIARY

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2018

(Unaudited)

During the nine months ended September 30, 2018, certain officers paid an aggregate $2,858 in expenses on Company’s behalf as an advance. Pursuant to the terms of the note, the note was non-interest bearing, unsecured and was due on demand (See Note 4).

As of December 31, 2017, certain officers paid an aggregate $24,951 in expenses on Company’s behalf as an advance. Pursuant to the terms of the note, the note was non-interest bearing, unsecured and was due on demand (See Note 4).

NOTE 9 GOING CONCERN

As reflected in the accompanying condensed consolidated financial statements, the Company used cash in operations of $35,709 an accumulated deficit of $635,792 and has a net loss of $87,056 for the nine months ended September 30, 2018. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern.

NOTE 10 SUBSEQUENT EVENT

On October 23, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $9,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on October 23, 2019.

17 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The information set forth in this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among others (i) expected changes in our revenue and profitability, (ii) prospective business opportunities and (iii) our strategy for financing our business. Forward-looking statements are statements other than historical information or statements of current condition. Some forward-looking statements may be identified by use of terms such as “believes”, “anticipates”, “intends” or “expects”. These forward-looking statements relate to our plans, liquidity, ability to complete financing and purchase capital expenditures, growth of our business including entering into future agreements with companies and plans to successfully develop and obtain approval to market our product. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.

Although we believe that our expectations with respect to the forward-looking statements are based upon reasonable assumptions within the bounds of our knowledge of our business and operations, in light of the risks and uncertainties inherent in all future projections, the inclusion of forward-looking statements in this Quarterly Report should not be regarded as a representation by us or any other person that our objectives or plans will be achieved.

We assume no obligation to update these forward-looking statements to reflect actual results or changes in factors or assumptions affecting forward-looking statements.

Our revenues and results of operations could differ materially from those projected in the forward-looking statements as a result of numerous factors, including, but not limited to, the following: the risk of significant natural disaster, the inability of the company to insure against certain risks, inflationary and deflationary conditions and cycles, currency exchange rates, and changing government regulations domestically and internationally affecting our products and businesses.

You should read the following discussion and analysis in conjunction with the Financial Statements and Notes attached hereto, and the other financial data appearing elsewhere in this Quarterly Report.

US Dollars are denoted herein by “USD”, “$” and “dollars”.

Overview

Incorporated on May 19, 2014 under the laws of the State of Nevada, Hometown International, Inc. is the originator of a new Delicatessen concept. Through our wholly-owned subsidiary, Your Hometown Deli Limited Liability Company (“Your Hometown Deli”), we operate a delicatessen store that features “home-style” sandwiches and other entrees in a casual and friendly atmosphere. The stores are designed to offer local patrons of all ages with a comfortable community gathering places. Targeted towards smaller towns and communities, the Company’s first unit is located in Paulsboro, New Jersey.

On January 18, 2014, Your Hometown Deli, LLC was formed under the laws of the State of New Jersey. On May 29, 2014, Your Hometown Deli, LLC, entered into a Membership Interest Purchase Agreement with Hometown International, Inc., pursuant to which Hometown International, Inc. acquired 100% of the membership interests of Your Hometown Deli, LLC in exchange for 5,000,000 shares of Hometown International, Inc.’s common stock. As a result of this share exchange transaction, Your Hometown Deli, LLC became a wholly owned subsidiary of Hometown International, Inc. We introduced the delicatessen concept under the Your Hometown Deli brand name. Based on the Paulsboro unit’s performance, we may consider expanding the concept to other communities throughout the United States.

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In October 2015, we closed a Regulation D Rule 506 offering in which we offered up to 300,000 units (the “Units”), consisting of one (1) share of Common Stock and two (2) warrants each to purchase one (1) share of Common Stock at an exercise price of $2.50 per share. The Units were offered at a price of $0.75 per Unit and there was no minimum subscription requirement for the investors. Upon completion of the offering, we sold 242,340 Units. The warrants have expired as of December 31, 2017.

We began generating revenue from the sales of our food and beverage since our soft opening in mid-October 2015. Besides the equipment, fixtures, and inventories we purchased for our deli store, we have limited assets. We had minimal working capital as of the date of this annual report and used cash in operating activities for the reporting period then ended. These factors raise substantial doubt from our auditor about our ability to continue as a going concern.

During the quarter ended September 30, 2018, we continued to refine our menu and operating hours. We have limited advertising using social media and direct mailing to residents in towns around our store. We expect our losses to continue as we continue to revise our menu and marketing plan to the local taste.

As reflected in the unaudited financial statements, the Company used cash in operations of $35,709 and has an accumulated deficit of $635,792 and a net loss of $87,056 for the nine months ended September 30, 2018. This raises substantial doubt about our ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. However, while we believe in the viability of our strategy to generate sufficient revenues and in our ability to raise additional funds, there can be no assurances to that effect and our cash position may not be sufficient to support our daily operations. Our continued existence is dependent upon our ability to continue to execute our operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available or will be available on terms acceptable to our company.

Results of Operations - Three Months Ended September 30, 2018 Compared to Three Months Ended September 30, 2017

We generated revenue of $6,655 and $10,982 for the three months ended September 30, 2018 and 2017, respectively. The decrease in revenue of $4,327, or approximately 39.4%, is mainly attributed to a reduction in customers during summer months since area schools are not in session. The total cost and expenses were $28,752 for the three months ended September 30, 2018, compared to $36,729 for the three months ended September 30, 2017. The decrease in total cost and expenses of $7,977, or approximately 21.7%, is mainly attributed to decreases in cost of food, beverage and supplies of $4,051, cost of professional fees of $2,371, and general and administrative cost of $1,346. We incurred loss from operations of $22,097 and $25,747 for the three months ended September 30, 2018 and 2017, respectively. The decrease in loss from operations of $3,650, or approximately 14.2%, is mainly attributed to our decrease in total cost and expenses, partially offset by our decrease in revenue, during the three months ended September 30, 2018 as compared to the same period in the prior year.

Due to the described factors above, we had a net loss of $26,453 and $29,745 for the three months ended September 30, 2018 and 2017, respectively.

Results of Operations - Nine Months Ended September 30, 2018 Compared to Nine Months Ended September 30, 2017

We generated revenue of $24,603 and $40,921 for the nine months ended September 30, 2018 and 2017, respectively. The decrease in revenue of $16,318, or approximately 39.9%, in revenue is mainly attributed to the bad weather that ensued during the first six months of 2018, which caused the delicatessen to either close or reduce the hours of operations in the second quarter of 2018, and a reduction in customers during summer months since area schools are not in session. The total cost and expenses were $97,260 for the nine months ended September 30, 2018, compared to $113,810 for the nine months ended September 30, 2017. The decrease in total cost and expenses of $16,550, or approximately 14.5%, is mainly attributed to decreases in cost of food, beverage and supplies of $12,650, cost of labor of $2,661, and direct operating and occupancy cost of $883. We incurred comparable loss from operations of $72,657 and $72,889 for the nine months ended September 30, 2018 and 2017, respectively.

Due to the described factors above, we had a net loss of $87,056 and $84,349 for the nine months ended September 30, 2018 and 2017, respectively.

19 

Liquidity and Capital Resources

As of September 30, 2018, we had total assets of $17,839, consisting of $15,197 in leasehold improvements, $552 in inventory, and $2,090 in cash. Our total liabilities as of September 30, 2018 were $356,919, which were comprised of $143,792 in accounts payable and accrued expenses, $27,809 due to certain officers, $104,318 in notes payable due to related parties and $81,000 in notes payable. As of September 30, 2018, we had a working capital deficit of $354,277.

The following is a summary of our cash flows provided by (used in) operating, investing, and financing activities for the nine months ended September 30, 2018 and 2017:

	For the nine months ended September 30, 2018			For the nine months ended September 30, 2017
Net Cash Used in Operating Activities	$	(35,709	)	$	(30,259	)
Net Cash Used in Investing Activities		—			—
Net Cash Provided by Financing Activities	$	32,458		$	27,671
Net Decrease in Cash and Cash Equivalents	$	(3,251	)	$	(2,588	)

For the nine months ended September 30, 2018, we used cash of $35,709 for operating activities and financing activities provided $32,458. As a result. we had a net decrease in cash and cash equivalents of $3,251 for the nine months ended September 30, 2018. For the nine months ended September 30, 2017, we used cash of $30,259 for operating activities and financing activities provided $27,671. As a result, we had a net decrease in cash and cash equivalents of $2,588 for the nine months ended September 30, 2017.

We are dependent on the sales of product and services and receipt of capital investment or other financing to fund our ongoing operations. If continued funding and capital resources are unavailable at reasonable terms, we may not be able to implement its plan of operations.

Going Concern

The Company used cash in operations of $35,709 and has an accumulated deficit of $635,792 and a net loss of $87,056 for the nine months ended September 30, 2018. This raises substantial doubt about our ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. However, while we believe in the viability of our strategy to generate sufficient revenues and in our ability to raise additional funds, there can be no assurances to that effect and our cash position may not be sufficient to support our daily operations. Our continued existence is dependent upon our ability to continue to execute our operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available or will be available on terms acceptable to our company.

Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern.

20 

Critical Accounting Policies and Estimates

Revenue Recognition

Effective January 1, 2018, the Company recognizes revenue in accordance with Accounting Standards Codification 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2017, and the Company adopted the standard using the modified retrospective approach effective January 1, 2018.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, sales or expenses, results of operations, liquidity or capital expenditures, or capital resources that are material to an investment in our securities.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable because we are a smaller reporting company.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. The framework used by management in making that assessment was the criteria set forth in the document entitled “Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures are not effective as of September 30, 2018 to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure for the reason described below.

Because of our limited operations, we have limited number of employees which prohibits a segregation of duties. In addition, we lack a formal audit committee with a financial expert. As we grow and expand our operations we will engage additional employees and experts as needed. However, there can be no assurance that our operations will expand.

Changes in Internal Control Over Financial Reporting

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

21 

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

Item 1A. Risk Factors.

Not required for smaller reporting companies.

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

None.

Item 3. Defaults Upon Senior Securities.

On January 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $5,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on January 19, 2018. As of September 30, 2018, the Company accrued $922 in interest expense. The note is currently in default.

On July 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $341. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 19, 2018. As of September 30, 2018, the Company accrued $43 in interest expense. The note is currently in default.

On August 9, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $1,119. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 9, 2018. As of September 30, 2018, the Company accrued $135 in interest expense. This note is currently in default.

On November 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $10,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 18, 2018. As of September 30, 2018, the Company accrued $910 in interest expense. This note is currently in default.

On October 26, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $3,400. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on October 26, 2018. As of September 30, 2018, the Company accrued $330 in interest expense. This note is currently in default.

On August 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $2,608. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 15, 2018. As of September 30, 2018, the Company accrued $310 in interest expense. This note is currently in default.

On March 21, 2016, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2017. As of September 30, 2018, the Company accrued $5,724 in interest expense. The note is currently in default.

On November 9, 2015, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 9, 2016. As of September 30, 2018, Company accrued $6,651 in interest expense. The note is currently is in default.

On March 21, 2017, the Company entered into an unsecured promissory note in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2018. As of September 30, 2018, the Company accrued $3,286 in interest expense. The note is currently in default.

On August 22, 2016, the Company entered into an unsecured promissory note in the amount of $25,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 22, 2017. As of September 30, 2018, the Company accrued $5,848 in interest expense. The note is currently in default.

On March 17, 2016, the Company entered into an unsecured promissory note in the amount of $12,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2017. As of September 30, 2018, the Company accrued $3,451 in interest expense. The note is currently in default.

On November 12, 2015, the Company entered into an unsecured promissory note in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 12, 2016. As of September 30, 2018, the Company accrued $6,651 in interest expense. The note is currently is in default.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

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Item 6. Exhibits.

Exhibits #	Title
31.1/31.2	Certification of Principal Executive Officer and Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1/32.2	Certification of Principal Executive and Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	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.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 15, 2018 

HOMETOWN INTERNATIONAL, INC.

/s/ Paul F. Morina

Name: Paul F. Morina

Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer and Principal Financial and Accounting Officer) 

24 

EX-31.1

EXHIBIT 31.1/31.2

CERTIFICATION 

OF CHIEF EXECUTIVE OFFICER and CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Paul F. Morina, certify that:

1.   I have reviewed this Quarterly Report on Form 10-Q of Hometown International, Inc.;

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 registrant’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)) for the registrant 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 registrant, 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 registrant’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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

(a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’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 registrant’s internal control over financial reporting.

Date: November 15, 2018

/s/ Paul F. Morina

Paul F. Morina 

Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer and Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1/32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, 

AS ADOPTED PURSUANT TO SECTION 906 

OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Hometown International, Inc. (the “Company”), does hereby certify, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Form 10-Q.

Date: November 15, 2018

/s/ Paul F. Morina

Paul F. Morina 

Chief Executive Officer and Chief Financial Officer

(Principal Executive Officer and Principal Financial and Accounting Officer) 

The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 15, 2018
Document And Entity Information
Entity Registrant Name	HOMETOWN INTERNATIONAL, INC.
Entity Central Index Key	0001632081
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	No
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		5,235,340
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2018

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets
Cash	$ 2,090	$ 5,341
Prepaid expenses		1,360
Inventory	552	612
Total Current Assets	2,642	7,313
Leasehold improvements and equipment, net	15,197	20,668
Total Assets	17,839	27,981
Current Liabilities
Accounts payable and accrued expenses	143,792	122,478
Due to Officers - related parties	27,809	24,951
Note payable - related parties	104,318	69,468
Note payable	81,000	81,000
Total Liabilities	356,919	297,897
Commitments and Contingencies (See Note 7)
Stockholders' Deficit
Common stock, $0.0001 par value; 100,000,000 shares authorized, 5,235,340 and 5,242,340 issued and outstanding, respectively	523	524
Additional paid-in capital	296,189	278,296
Accumulated deficit	(635,792)	(548,736)
Total Stockholders' Deficit	(339,080)	(269,916)
Total Liabilities and Stockholders' Deficit	$ 17,839	$ 27,981

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	5,235,340	5,242,340

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Sales	$ 6,655	$ 10,982	$ 24,603	$ 40,921
Costs and Expenses
Food, beverage and supplies	4,416	8,467	15,466	28,116
Labor		269	136	2,797
Direct operating and occupancy	2,172	2,115	6,647	7,530
Depreciation	1,844	1,841	5,471	5,468
Professional fees	7,710	10,081	32,246	32,795
General and administrative	12,610	13,956	37,294	37,104
Total cost and expenses	28,752	36,729	97,260	113,810
Loss from Operations	(22,097)	(25,747)	(72,657)	(72,889)
Other Expenses
Gain on debt settlement	1,188		1,188
Interest Expense	(5,544)	(3,998)	(15,587)	(11,460)
Total Other Income/(Expenses)	(4,356)	(3,998)	(14,399)	(11,460)
LOSS FROM OPERATIONS BEFORE INCOME TAXES	(26,453)	(29,745)	(87,056)	(84,349)
Provision for Income Taxes
NET LOSS	$ (26,453)	$ (29,745)	$ (87,056)	$ (84,349)
Net Loss Per Share - Basic and Diluted (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)
Weighted average number of shares outstanding during the period - Basic and Diluted (in shares)	5,235,340	5,242,340	5,235,904	5,242,340

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Condensed Consolidated Statement of Stockholders' Deficit (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance beginning at Dec. 31, 2017	$ 524	$ 278,296	$ (548,736)	$ (269,916)
Balance beginning (in shares) at Dec. 31, 2017	5,242,340
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock	$ (1)	(5,249)		(5,250)
Repurchase of common stock (in shares)	(7,000)
In kind contribution of services		23,142		23,142
Net loss			(87,056)	(87,056)
Balance ending at Sep. 30, 2018	$ 523	$ 296,189	$ (635,792)	$ (339,080)
Balance ending (in shares) at Sep. 30, 2018	5,235,340

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities:
Net Loss	$ (87,056)	$ (84,349)
Adjustments to reconcile net loss to net cash used in operations
In-kind contribution of services	23,142	23,142
Depreciation expense	5,471	5,468
Changes in operating assets and liabilities:
Decrease in inventory	60	133
Decrease in prepaid expenses	1,360
Increase in accounts payable and accrued expenses	21,314	25,347
Net Cash Used In Operating Activities	(35,709)	(30,259)
Net Cash Used In Investing Activities
Cash Flows From Financing Activities:
Proceeds from/due to officers	2,858	8,603
Repayment of note payable	(5,000)	(10,000)
Proceeds from note payable		27,608
proceeds from note payable - related party	34,600	1,460
Net Cash Provided by Financing Activities	32,458	27,671
Net Decrease in Cash	(3,251)	(2,588)
Cash at Beginning of Period	5,341	3,845
Cash at End of Period	2,090	1,257
Supplemental disclosure of cash flow information:
Cash paid for interest	164	909
Cash paid for taxes
Supplemental disclosure of non-cash investing and financing activities:
Repurchase of common stock in exchange for a note payable - related party	$ 5,250

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

(A) Organization

The accompanying condensed consolidated unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.

These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 28, 2018.

It is management’s opinion that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year.

Hometown International, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on May 19, 2014. The Company is the originator of a new “Delicatessen” concept (“Your Hometown Deli”). The Company intends that its delicatessens will feature “home-style” sandwiches and other entrees in a casual friendly atmosphere. Hometown Delis are designed to be comfortable community gathering places for guests of all ages.

On January 18, 2014, Your Hometown Deli, LLC. was formed under the laws of the State of New Jersey. On May 29, 2014, Your Hometown Deli, LLC, entered into a Membership Interest Purchase Agreement with Hometown International, Inc. For accounting purposes, this transaction is being accounted for as a merger of entities under common control and has been treated as a recapitalization of Hometown International, Inc. with Your Hometown Deli, LLC, as the accounting acquirer). The historical financial statements of the accounting acquirer became the financial statements of the registrant. The Company did not recognize goodwill or any intangible assets in connection with the transaction. The 5,000,000 shares issued to the shareholder of Your Hometown Deli, LLC., in conjunction with the share exchange transaction has been presented as outstanding for all periods.

The Company’s accounting year end is December 31, which was the year end of Your Hometown Deli, LLC.

(B) Principles of Consolidation

The accompanying September 30, 2018 and 2017, condensed consolidated financial statements include the accounts of Hometown International, Inc. and its wholly owned subsidiary, Your Hometown Deli, LLC. All intercompany accounts have been eliminated upon consolidation.

(C) Use of Estimates

In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Significant estimates include valuation of in kind contribution of service and valuation of deferred tax assets. Actual results could differ from those estimates.

(D) Cash and Cash Equivalents

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At September 30, 2018 and December 31, 2017, the Company had no cash equivalents.

(E) Loss Per Share

Basic and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by FASB ASC No. 260, “Earnings Per Share.” Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. The Company has 0 and 484,680 shares issuable upon the exercise of warrants that were not included in the computation of dilutive September 30, 2018 and 2017, respectively.

(F) Income Taxes

The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the Tax Act) was enacted into law and the new legislation contains several key tax provisions that affected us, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation are expected over the next 12 months, we consider the accounting of the transition tax, deferred tax re-measurements, and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance with SAB 118.

(G) Property and Equipment

Property and equipment is recorded at cost and depreciated or amortized using the straight-line method over the estimated useful life of the asset or the underlying lease term for leasehold improvements, whichever is shorter onset the property and equipment is put into service.

(H) Revenue Recognition

Effective January 1, 2018, the Company recognizes revenue in accordance with Accounting Standards Codification 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2017, and the Company adopted the standard using the modified retrospective approach effective January 1, 2018.

The Company generates revenue operating a delicatessen. Revenue from the operations of Company-owned delicatessen are recognized when sales occur.

(I) Fair Value of Financial Instruments

The Company measures its financial assets and liabilities in accordance with GAAP. For certain of our financial instruments, including cash, accounts payable, and the short-term portion of long-term debt, the carrying amounts approximate fair value due to their short maturities.

We adopted accounting guidance for financial and non-financial assets and liabilities (ASC 820). The adoption did not have a material impact on our results of operations, financial position or liquidity. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

● Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

● Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

● Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

(J) Recent Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 affects any entity that enters into a lease, with some specified scope exemptions. The guidance in this Update supersedes Topic 840, Leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For public companies, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact of adopting ASU No. 2016-02 on our consolidated financial statements.

In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. This guidance will be effective for us in the first quarter of 2020 on a prospective basis, and early adoption is permitted. We do not expect the standard to have a material impact on our consolidated financial statements.

All other newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable.

(K) Business Segments

The Company operates in one segment and therefore segment information is not presented.

(L) Inventories

Inventories consist of food and beverages, and are stated at cost of $552.

(M) Advertising

Advertising costs are expensed as incurred. These costs are included in direct operating & occupancy expenses and totaled $0 and $184 for the nine months ended September 30, 2018 and 2017, respectively.

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LEASEHOLD IMPROVEMENT AND EQUIPMENT

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

LEASEHOLD IMPROVEMENT AND EQUIPMENT

NOTE 2 LEASEHOLD IMPROVEMENT AND EQUIPMENT

Leasehold improvement and equipment consist of the following at September 30, 2018 and December 31, 2017:

	September 30,			December 31,
	2018			2017
Leasehold Improvements		33,455			33,455
Equipment		3,120			3,120
Leasehold Improvements and Equipment		36,575			36,575
Less: Accumulated Depreciation		(21,378	)		(15,907	)
Leasehold Improvements and Equipment, Net	$	15,197		$	20,668

Depreciation expense was $5,471 and $5,468 for the nine months ended September 30, 2018 and 2017, respectively.

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NOTE PAYABLE - RELATED PARTIES

9 Months Ended

Sep. 30, 2018

Due to Related Parties, Current [Abstract]

NOTE PAYABLE - RELATED PARTIES

NOTE 3 NOTE PAYABLE – RELATED PARTY

On September 27, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $1,200. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on September 27, 2019. As of September 30, 2018, the Company accrued $1 in interest expense (See Note 8).

On August 23, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $2,400. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 23, 2019. As of September 30, 2018, the Company accrued $25 in interest expense (See Note 8).

On July 26, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $10,500. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 26, 2019. As of September 30, 2018, the Company accrued $190 in interest expense (See Note 8).

On July 9, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $1,500. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 9, 2019. As of September 30, 2018, the Company accrued $34 in interest expense (See Note 8).

On February 22, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $19,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on February 22, 2019. As of September 30, 2018, the Company accrued $1,170 in interest expense (See Note 8).

On January 22, 2018, we entered into a Stock Repurchase Agreement with Benchmark Capital, LLC, a related party, to repurchase 7,000 shares of common stock, for an aggregate purchase price of $5,250. The transaction closed on January 22, 2018. We funded the repurchase through the issuance of a promissory note to Benchmark Capital, LLC dated January 22, 2018 in the amount of $5,250. Pursuant to the terms of the note, the note is bearing 6% interest, unsecured and is due on or before July 31, 2018. As of September 30, 2018, the Company accrued $242 in interest expense and paid $164 of interest On August 3, 2018, the note was extended to December 31, 2018. (See Note 6(C) and 8).

On December 27, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $5,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on December 27, 2018. As of December 31, 2017, the Company accrued $6 in interest expense. On January 11, 2018, the principal amount was repaid in full (See Note 8).

On November 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $10,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 15, 2018. As of September 30, 2018, the Company accrued $910 in interest expense. This note is currently in default (See Note 8).

On October 26, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $3,400. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on October 26, 2018. As of September 30, 2018, the Company accrued $330 in interest expense. The note is currently in default (See Note 8).

On August 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $2,608. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 15, 2018. As of September 30, 2018, the Company accrued $310 in interest expense. The note is currently in default (See Note 8).

On July 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $341. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 19, 2018. As of September 30, 2018, the Company has accrued $43 in interest expense. The note is currently in default (See Note 8).

On August 9, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $1,119. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 9, 2018. As of September 30, 2018, the Company has accrued $135 in interest expense. The note is currently in default (See Note 8).

On January 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $5,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on January 19, 2018. As of September 30, 2018, the Company accrued $922 in interest expense. The note is currently in default (See Note 8).

On March 21, 2016, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2017. As of September 30, 2018, the Company accrued $5,724 in interest expense. The note is currently in default (See Note 8).

On November 9, 2015, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 9, 2016. As of September 30, 2018, Company accrued $6,651 in interest expense. The note is currently is in default (See Note 8).

On October 16, 2014, the Company entered into an unsecured promissory note with a related party in the amount of $2,000. Pursuant to the terms of the note, the note is non-interest bearing, unsecured and is due on demand (See Note 8).

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DUE TO OFFICERS - RELATED PARTIES

9 Months Ended

Sep. 30, 2018

Due to Related Parties, Current [Abstract]

DUE TO OFFICERS - RELATED PARTIES

NOTE 4 DUE TO OFFICERS – RELATED PARTY

During the nine months ended September 30, 2018, certain officers paid an aggregate $2,858 in expenses on Company’s behalf as an advance. Pursuant to the terms of the note, the note was non-interest bearing, unsecured and was due on demand (See Note 8).

As of December 31, 2017, certain officers paid an aggregate $24,951 in expenses on Company’s behalf as an advance. Pursuant to the terms of the note, the note was non-interest bearing, unsecured and was due on demand (See Note 8).

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NOTE PAYABLE

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

NOTE PAYABLE

NOTE 5 NOTE PAYABLE

On March 21, 2017, the Company entered into an unsecured promissory note in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2018. As of September 30, 2018, the Company accrued $3,286 in interest expense. The note is currently in default.

On August 22, 2016, the Company entered into an unsecured promissory note in the amount of $25,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 22, 2017. As of September 30, 2018, the Company accrued $5,848 in interest expense. The note is currently in default.

On March 17, 2016, the Company entered into an unsecured promissory note in the amount of $12,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2017. As of September 30, 2018, the Company accrued $3,451 in interest expense. The note is currently in default.

On February 11, 2016, the Company entered into an unsecured promissory note in the amount of $4,000. Pursuant to the terms of the note, the note is bearing 4% interest, unsecured and is due on demand. As of September 30, 2018, the Company accrued $443 in interest expense.

On November 12, 2015, the Company entered into an unsecured promissory note in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 12, 2016. As of September 30, 2018, the Company accrued $6,651 in interest expense. The note is currently is in default.

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STOCKHOLDERS' EQUITY (DEFICIT)

9 Months Ended

Sep. 30, 2018

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' DEFICIT

NOTE 6 STOCKHOLDERS’  DEFICIT

(A) Common Stock Issued for Cash

The Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.0001 per share.

(B) In kind contribution of services

For the nine months ended September 30, 2018, the Company recorded $23,142 as in kind contribution of services provided by President and Vice President of the Company (See Note 8).

For the year ended December 31, 2017, the Company recorded $30,855 as in kind contribution of services provided by President and Vice President of the Company (See Note 8).

(C) Common stock repurchase

On January 22, 2018, we entered into a Stock Repurchase Agreement with Benchmark Capital, LLC, a related party, to repurchase 7,000 shares of common stock, for an aggregate purchase price of $5,250. The transaction closed on January 22, 2018. We funded the repurchase through the issuance of a promissory note to Benchmark Capital, LLC dated January 22, 2018 in the amount of $5,250. Pursuant to the terms of the note, the note is bearing 6% interest, unsecured and is due on or before July 31, 2018. As of September 30, 2018, the Company accrued $242 in interest expense and paid $164 of interest. On August 3, 2018, the note was extended to December 31, 2018 (See Note 3 and 8 ).

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 7 COMMITMENTS AND CONTINGENCIES

Operating Lease Agreement

On July 1, 2014, the Company entered into a five-year non-cancelable operating lease with a related party for its store space at a monthly rate of $500. On September 21, 2015, the Company executed the lease and opened the store on October 14, 2015. On December 29, 2015, the Company signed an addendum to the lease for the lease agreement to start 30 days after the opening of the deli. The store opened on October 14, 2015, the first payments would have been due on November 15, 2015, however since the deli was not fully functioning, the first monthly rent payment was due January 1, 2016. For the nine months ended September 30, 2018 and 2017, the Company had a rent expense of $4,500 and $4,500, respectively (See Note 8).

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RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2018

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 8 RELATED PARTY TRANSACTIONS

On July 1, 2014, the Company entered into a five-year non-cancelable operating lease with a related party for its store space at a monthly rate of $500. On September 21, 2015, the Company executed the lease and opened the store on October 14, 2015. On December 29, 2015, the Company signed an addendum to the lease for the lease agreement to start 30 days after the opening of the deli. The store opened on October 14, 2015, the first payments would have been due on November 15, 2015, however since the deli was not fully functioning, the first monthly rent payment was due January 1, 2016. For the nine months ended September 30, 2018 and 2017, the Company had a rent expense of $4,500 and $4,500, respectively (See Note 7(B)).

On October 16, 2014, the Company entered into an unsecured promissory note with a related party in the amount of $2,000. Pursuant to the terms of the note, the note is non-interest bearing, unsecured and is due on demand (See Note 3).

On January 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $5,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on January 19, 2018. As of September 30, 2018, the Company accrued $922 in interest expense. The note is currently in default (See Note 3).

On July 19, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $341. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 19, 2018. As of September 30, 2018, the Company accrued $43 in interest expense. The note is currently in default (See Note 3).

On August 9, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $1,119. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 9, 2018. As of September 30, 2018, the Company accrued $135 in interest expense. This note is currently in default (See Note 3).

On September 27, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $1,200. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on September 27, 2019. As of September 30, 2018, the Company accrued $1 in interest expense (See Note 3).

On August 23, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $2,400. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 23, 2019. As of September 30, 2018, the Company accrued $25 in interest expense (See Note 3).

On July 26, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $10,500. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 26, 2019. As of September 30, 2018, the Company accrued $190 in interest expense (See Note 3).

On July 9, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $1,500. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on July 9, 2019. As of September 30, 2018, the Company accrued $34 in interest expense (See Note 3).

On February 22, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $19,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on February 22, 2019. As of September 30, 2018, the Company accrued $1,170 in interest expense (See Note 3).

On December 27, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $5,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on December 27, 2018. As of December 31, 2017, the Company accrued $6 in interest expense. On January 11, 2018, the principal amount was repaid in full (See Note 3).

On November 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $10,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 18, 2018. As of September 30, 2018, the Company accrued $910 in interest expense. This note is currently in default (See Note 3).

On October 26, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $3,400. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on October 26, 2018. As of September 30, 2018, the Company accrued $330 in interest expense. This note is currently in default (See Note 3).

On August 15, 2017, the Company entered into an unsecured promissory note with a related party in the amount of $2,608. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on August 15, 2018. As of September 30, 2018, the Company accrued $310 in interest expense. This note is currently in default (See Note 3).

On March 21, 2016, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on March 21, 2017. As of September 30, 2018, the Company accrued $5,724 in interest expense. The note is currently in default (See Note 3).

On November 9, 2015, the Company entered into an unsecured promissory note with a related party in the amount of $20,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on November 9, 2016. As of September 30, 2018, Company accrued $6,651 in interest expense. The note is currently is in default (See Note 3).

On January 22, 2018, we entered into a Stock Repurchase Agreement with Benchmark Capital, LLC, a related party to repurchase 7,000 shares of common stock, for an aggregate purchase price of $5,250. The transaction closed on January 22, 2018. We funded the repurchase through the issuance of a promissory note to Benchmark Capital, LLC dated January 22, 2018 in the amount of $5,250. Pursuant to the terms of the note, the note is bearing 6% interest, unsecured and is due on or before July 31, 2018. . As of September 30, 2018, the Company accrued $242 in interest expense and paid $164 of interest On August 3, 2018, the note was extended to December 31, 2018. (See Notes 3 and 6(C)).

For the nine months ended September 30, 2018, the Company recorded $23,142 as in kind contribution of services provided by President and Vice President of the Company (See Note 6(B)).

For the year ended December 31, 2017, the Company recorded $30,855 as in kind contribution of services provided by President and Vice President of the Company (See Note 6(B)).

During the nine months ended September 30, 2018, certain officers paid an aggregate $2,858 in expenses on Company’s behalf as an advance. Pursuant to the terms of the note, the note was non-interest bearing, unsecured and was due on demand (See Note 4).

As of December 31, 2017, certain officers paid an aggregate $24,951 in expenses on Company’s behalf as an advance. Pursuant to the terms of the note, the note was non-interest bearing, unsecured and was due on demand (See Note 4).

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GOING CONCERN

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

NOTE 9 GOING CONCERN

As reflected in the accompanying condensed consolidated financial statements, the Company used cash in operations of $35,709 an accumulated deficit of $635,792 and has a net loss of $87,056 for the nine months ended September 30, 2018. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern.

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 10 SUBSEQUENT EVENT

On October 23, 2018, the Company entered into an unsecured promissory note with a related party in the amount of $9,000. Pursuant to the terms of the note, the note is bearing 10% interest, unsecured and is due on October 23, 2019.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Organization

(A) Organization

The accompanying condensed consolidated unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.

These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 28, 2018.

It is management’s opinion that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year.

Hometown International, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on May 19, 2014. The Company is the originator of a new “Delicatessen” concept (“Your Hometown Deli”). The Company intends that its delicatessens will feature “home-style” sandwiches and other entrees in a casual friendly atmosphere. Hometown Delis are designed to be comfortable community gathering places for guests of all ages.

On January 18, 2014, Your Hometown Deli, LLC. was formed under the laws of the State of New Jersey. On May 29, 2014, Your Hometown Deli, LLC, entered into a Membership Interest Purchase Agreement with Hometown International, Inc. For accounting purposes, this transaction is being accounted for as a merger of entities under common control and has been treated as a recapitalization of Hometown International, Inc. with Your Hometown Deli, LLC, as the accounting acquirer). The historical financial statements of the accounting acquirer became the financial statements of the registrant. The Company did not recognize goodwill or any intangible assets in connection with the transaction. The 5,000,000 shares issued to the shareholder of Your Hometown Deli, LLC., in conjunction with the share exchange transaction has been presented as outstanding for all periods.

The Company’s accounting year end is December 31, which was the year end of Your Hometown Deli, LLC.

Principles of Consolidation

(B) Principles of Consolidation

The accompanying September 30, 2018 and 2017, condensed consolidated financial statements include the accounts of Hometown International, Inc. and its wholly owned subsidiary, Your Hometown Deli, LLC. All intercompany accounts have been eliminated upon consolidation.

Use of Estimates

(C) Use of Estimates

In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Significant estimates include valuation of in kind contribution of service and valuation of deferred tax assets. Actual results could differ from those estimates.

Cash and Cash Equivalents

(D) Cash and Cash Equivalents

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At September 30, 2018 and December 31, 2017, the Company had no cash equivalents.

Loss Per Share

(E) Loss Per Share

Basic and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by FASB ASC No. 260, “Earnings Per Share.” Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. The Company has 0 and 484,680 shares issuable upon the exercise of warrants that were not included in the computation of dilutive September 30, 2018 and 2017, respectively.

Income Taxes

(F) Income Taxes

The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the Tax Act) was enacted into law and the new legislation contains several key tax provisions that affected us, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation are expected over the next 12 months, we consider the accounting of the transition tax, deferred tax re-measurements, and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance with SAB 118.

Property and Equipment

(G) Property and Equipment

Property and equipment is recorded at cost and depreciated or amortized using the straight-line method over the estimated useful life of the asset or the underlying lease term for leasehold improvements, whichever is shorter onset the property and equipment is put into service.

Revenue Recognition

(H) Revenue Recognition

Effective January 1, 2018, the Company recognizes revenue in accordance with Accounting Standards Codification 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2017, and the Company adopted the standard using the modified retrospective approach effective January 1, 2018.

The Company generates revenue operating a delicatessen. Revenue from the operations of Company-owned delicatessen are recognized when sales occur.

Fair Value of Financial Instruments

(I) Fair Value of Financial Instruments

The Company measures its financial assets and liabilities in accordance with GAAP. For certain of our financial instruments, including cash, accounts payable, and the short-term portion of long-term debt, the carrying amounts approximate fair value due to their short maturities.

We adopted accounting guidance for financial and non-financial assets and liabilities (ASC 820). The adoption did not have a material impact on our results of operations, financial position or liquidity. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

● Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

● Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

● Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

Recent Accounting Pronouncements

(J) Recent Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 affects any entity that enters into a lease, with some specified scope exemptions. The guidance in this Update supersedes Topic 840, Leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For public companies, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact of adopting ASU No. 2016-02 on our consolidated financial statements.

In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. This guidance will be effective for us in the first quarter of 2020 on a prospective basis, and early adoption is permitted. We do not expect the standard to have a material impact on our consolidated financial statements.

All other newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable.

Business Segments

(K) Business Segments

The Company operates in one segment and therefore segment information is not presented.

Inventories

(L) Inventories

Inventories consist of food and beverages, and are stated at cost of $552.

Advertising

(M) Advertising

Advertising costs are expensed as incurred. These costs are included in direct operating & occupancy expenses and totaled $0 and $184 for the nine months ended September 30, 2018 and 2017, respectively.

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LEASEHOLD IMPROVEMENT AND EQUIPMENT (Tables)

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Schedule of leasehold improvement and equipment

Leasehold improvement and equipment consist of the following at September 30, 2018 and December 31, 2017:

	September 30,			December 31,
	2018			2017
Leasehold Improvements		33,455			33,455
Equipment		3,120			3,120
Leasehold Improvements and Equipment		36,575			36,575
Less: Accumulated Depreciation		(21,378	)		(15,907	)
Leasehold Improvements and Equipment, Net	$	15,197		$	20,668

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (Details Narrative)	9 Months Ended
	Sep. 30, 2018 USD ($) Number $ / shares shares	Sep. 30, 2017 USD ($) $ / shares	Dec. 31, 2017 USD ($)
Cash equivalents	$ 0		$ 0
State statutory income tax rates	21.00%
Number of operating segments | Number	1
Inventory, net, total	$ 552		$ 612
Direct operating & occupancy expenses[Member]
Advertising expense	$ 0	$ 184
Warrant [Member]
Number of antidilutive securities excluded from computation of net income | $ / shares	$ 0	$ 484,680
Your Hometown Deli, LLC [Member]
Stock issued in connection with intangible assets | shares	5,000,000

XML

LEASEHOLD IMPROVEMENT AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Leasehold Improvements and Equipment	$ 36,575	$ 36,575
Less: Accumulated Depreciation	(21,378)	(15,907)
Leasehold Improvements and Equipment, Net	15,197	20,668
Equipment [Member]
Property, Plant and Equipment [Line Items]
Leasehold Improvements and Equipment	3,120	3,120
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Leasehold Improvements and Equipment	$ 33,455	$ 33,455

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LEASEHOLD IMPROVEMENT AND EQUIPMENT (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 5,471	$ 5,468

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NOTE PAYABLE - RELATED PARTIES (Details Narrative) - USD ($)								1 Months Ended											9 Months Ended		12 Months Ended
	Aug. 03, 2018	Jul. 09, 2018	Jan. 11, 2018	Aug. 15, 2017	Aug. 09, 2017	Mar. 21, 2016	Nov. 09, 2015	Sep. 27, 2018	Aug. 23, 2018	Jul. 26, 2018	Feb. 22, 2018	Jan. 22, 2018	Dec. 27, 2017	Nov. 15, 2017	Oct. 26, 2017	Jun. 19, 2017	Jan. 19, 2017	Mar. 21, 2016	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Oct. 16, 2014
Note payable - related party																			$ 104,318		$ 69,468
Repayment of related party debt																			2,288		$ 24,951
Interest paid																			164	$ 909
Stock Repurchase Agreement [Member] | Benchmark Capital, LLC [Member]
Accrued interest expense																			242
Debt instrument interest rate, stated percentage												6.00%
Debt instrument, maturity date												Dec. 31, 2018
Repurchase of common stock												7,000
Value of stock repurchased												$ 5,250
Issuance of promissory note												$ 5,250
Interest paid	$ 164
Unsecured Promissory Note Sixteen [Member]
Note payable - related party											$ 19,000
Interest Rate											10.00%
Due date											Feb. 22, 2019
Accrued interest expense																			1,170
Unsecured Promissory Note Nine [Member]
Note payable - related party													$ 5,000
Interest Rate													10.00%
Due date													Dec. 27, 2018
Accrued interest expense																			6
Repayment of related party debt			$ 5,000
Unsecured Promissory Note Eight [Member]
Note payable - related party														$ 10,000
Interest Rate														10.00%
Due date														Nov. 15, 2018
Accrued interest expense																			910
Unsecured Promissory Note Seven [Member]
Note payable - related party															$ 3,400
Interest Rate															10.00%
Due date															Oct. 26, 2018
Accrued interest expense																			330
Unsecured Promissory Note Six [Member]
Note payable - related party				$ 2,608
Interest Rate				10.00%
Due date				Aug. 15, 2018
Accrued interest expense																			310
Unsecured Promissory Note Four [Member]
Note payable - related party																$ 341
Interest Rate																10.00%
Due date																Jul. 19, 2018
Accrued interest expense																			43
Unsecured Promissory Note Five [Member]
Note payable - related party					$ 1,119
Interest Rate					10.00%
Due date					Aug. 09, 2018
Accrued interest expense																			135
10% Unsecured Promissory Note Two [Member]
Note payable - related party																	$ 5,000
Interest Rate																	10.00%
Due date																	Jan. 19, 2018
Accrued interest expense																			922
Unsecured Promissory Note One [Member]
Note payable - related party						$ 20,000	$ 20,000											$ 20,000
Interest Rate						10.00%	10.00%
Due date						Mar. 21, 2017	Nov. 09, 2016
Accrued interest expense																			6,651
Unsecured Promissory Note Three [Member]
Note payable - related party						$ 20,000												$ 20,000
Interest Rate																		10.00%
Due date																		Mar. 21, 2017
Accrued interest expense																			5,724
Unsecured Promissory Note [Member]
Note payable - related party																						$ 2,000
Unsecured Promissory Note Seventeen [Member]
Note payable - related party								$ 1,200
Interest Rate								10.00%
Due date								Sep. 27, 2019
Accrued interest expense																			1
Unsecured Promissory Note Eighteen [Member]
Note payable - related party									$ 2,400
Interest Rate									10.00%
Due date									Aug. 23, 2019
Accrued interest expense																			25
Unsecured Promissory Note Nineteen [Member]
Note payable - related party										$ 10,500
Interest Rate										10.00%
Due date										Jul. 26, 2019
Accrued interest expense																			190
Unsecured Promissory Note Twenty [Member]
Note payable - related party		$ 1,500
Interest Rate		10.00%
Due date		Jul. 09, 2019
Accrued interest expense																			$ 34

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DUE TO OFFICERS - RELATED PARTIES (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2017
Notes Payable, Other Payables [Member] | Officer [Member]
Related party transaction, amounts of transaction	$ 2,858	$ 24,951

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NOTE PAYABLE (Details Narrative) - USD ($)		1 Months Ended
	Nov. 12, 2015	Jan. 22, 2018	Mar. 21, 2017	Aug. 22, 2016	Mar. 17, 2016	Sep. 30, 2018	Feb. 11, 2016
Unsecured Promissory Note Fifteen[Member]
Debt instrument, face amount	$ 20,000
Debt instrument interest rate, stated percentage	10.00%
Interest payable, current						$ 6,651
Debt instrument, maturity date	Nov. 12, 2016
Unsecured Promissory Note Twelve [Member]
Debt instrument, face amount					$ 12,000
Debt instrument interest rate, stated percentage					10.00%
Interest payable, current						3,451
Debt instrument, maturity date					Mar. 21, 2017
Unsecured Promissory Note Ten [Member]
Debt instrument, face amount			$ 20,000
Debt instrument interest rate, stated percentage			10.00%
Interest payable, current						3,286
Debt instrument, maturity date			Mar. 21, 2018
Unsecured Promissory Note Eleven [Member]
Debt instrument, face amount				$ 25,000
Debt instrument interest rate, stated percentage				10.00%
Interest payable, current						5,848
Debt instrument, maturity date				Aug. 22, 2017
Unsecured Promissory Note Thirteen [Member]
Debt instrument, face amount							$ 4,000
Debt instrument interest rate, stated percentage							4.00%
Interest payable, current						443
Benchmark Capital, LLC [Member] | Stock Repurchase Agreement [Member]
Debt instrument interest rate, stated percentage		6.00%
Interest payable, current						$ 242
Debt instrument, maturity date		Dec. 31, 2018

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STOCKHOLDERS' (DEFICIT) (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended		12 Months Ended
	Jan. 22, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Common stock, authorized		100,000,000		100,000,000
Common stock, par value (in dollars per share)		$ 0.0001		$ 0.0001
Share-based compensation		$ 23,142	$ 23,142
President And Vice President [Member]
Share-based compensation			$ 23,142	$ 30,855
Benchmark Capital, LLC [Member] | Stock Repurchase Agreement [Member]
Repurchase of common stock	7,000
Value of stock repurchased	$ 5,250
Issuance of promissory note	$ 5,250
Debt instrument interest rate, stated percentage	6.00%
Debt instrument, maturity date	Dec. 31, 2018
Interest payable, current		$ 242

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COMMITMENTS AND CONTINGENCIES (Details Narrative) - Operating Lease Agreement [Member] - USD ($)		9 Months Ended
	Jul. 01, 2014	Sep. 30, 2018	Sep. 30, 2017
Operating leases, rent expense, minimum rentals	$ 500
Operating leases, rent expense, net, total		$ 4,500	$ 4,500
Lessee leasing arrangements, operating leases, term of contract	5 years

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)									1 Months Ended														9 Months Ended		12 Months Ended
	Jul. 09, 2018	Jan. 11, 2018	Aug. 15, 2017	Aug. 09, 2017	Mar. 21, 2016	Nov. 12, 2015	Nov. 09, 2015	Jul. 01, 2014	Sep. 27, 2018	Aug. 23, 2018	Jul. 26, 2018	Feb. 22, 2018	Jan. 22, 2018	Dec. 27, 2017	Nov. 15, 2017	Oct. 26, 2017	Jun. 19, 2017	Mar. 21, 2017	Jan. 19, 2017	Aug. 22, 2016	Mar. 21, 2016	Mar. 17, 2016	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Feb. 11, 2016	Oct. 16, 2014
Note payable - related party																							$ 104,318		$ 69,468
Advances from related parties																							2,288		24,951
Share based compensation, total																							23,142	$ 23,142
President And Vice President [Member]
Share based compensation, total																								23,142	$ 30,855
Unsecured Promissory Note One [Member]
Note payable - related party					$ 20,000		$ 20,000														$ 20,000
Interest Rate					10.00%		10.00%
Due date					Mar. 21, 2017		Nov. 09, 2016
Accrued interest expense																							6,651
Unsecured Promissory Note Five [Member]
Note payable - related party				$ 1,119
Interest Rate				10.00%
Due date				Aug. 09, 2018
Accrued interest expense																							135
Unsecured Promissory Note Nine [Member]
Note payable - related party														$ 5,000
Interest Rate														10.00%
Due date														Dec. 27, 2018
Accrued interest expense																							6
Advances from related parties		$ 5,000
Unsecured Promissory Note Fifteen[Member]
Debt instrument interest rate, stated percentage						10.00%
Debt instrument, maturity date						Nov. 12, 2016
Unsecured Promissory Note Eight [Member]
Note payable - related party															$ 10,000
Interest Rate															10.00%
Due date															Nov. 15, 2018
Accrued interest expense																							910
Unsecured Promissory Note Six [Member]
Note payable - related party			$ 2,608
Interest Rate			10.00%
Due date			Aug. 15, 2018
Accrued interest expense																							310
Unsecured Promissory Note Twelve [Member]
Debt instrument interest rate, stated percentage																						10.00%
Debt instrument, maturity date																						Mar. 21, 2017
Unsecured Promissory Note Four [Member]
Note payable - related party																	$ 341
Interest Rate																	10.00%
Due date																	Jul. 19, 2018
Accrued interest expense																							43
10% Unsecured Promissory Note Two [Member]
Note payable - related party																			$ 5,000
Interest Rate																			10.00%
Due date																			Jan. 19, 2018
Accrued interest expense																							922
Unsecured Promissory Note Ten [Member]
Debt instrument interest rate, stated percentage																		10.00%
Debt instrument, maturity date																		Mar. 21, 2018
Unsecured Promissory Note Three [Member]
Note payable - related party					$ 20,000																$ 20,000
Interest Rate																					10.00%
Due date																					Mar. 21, 2017
Accrued interest expense																							5,724
Unsecured Promissory Note Sixteen [Member]
Note payable - related party												$ 19,000
Interest Rate												10.00%
Due date												Feb. 22, 2019
Accrued interest expense																							1,170
Unsecured Promissory Note Eleven [Member]
Debt instrument interest rate, stated percentage																				10.00%
Debt instrument, maturity date																				Aug. 22, 2017
Unsecured Promissory Note Seven [Member]
Note payable - related party																$ 3,400
Interest Rate																10.00%
Due date																Oct. 26, 2018
Accrued interest expense																							330
Unsecured Promissory Note Thirteen [Member]
Debt instrument interest rate, stated percentage																										4.00%
Unsecured Promissory Note [Member]
Note payable - related party																											$ 2,000
Unsecured Promissory Note Seventeen [Member]
Note payable - related party									$ 1,200
Interest Rate									10.00%
Due date									Sep. 27, 2019
Accrued interest expense																							1
Unsecured Promissory Note Eighteen [Member]
Note payable - related party										$ 2,400
Interest Rate										10.00%
Due date										Aug. 23, 2019
Accrued interest expense																							25
Unsecured Promissory Note Nineteen [Member]
Note payable - related party											$ 10,500
Interest Rate											10.00%
Due date											Jul. 26, 2019
Accrued interest expense																							190
Unsecured Promissory Note Twenty [Member]
Note payable - related party	$ 1,500
Interest Rate	10.00%
Due date	Jul. 09, 2019
Accrued interest expense																							34
Operating Lease Agreement [Member]
Operating leases, rent expense, minimum rentals								$ 500
Operating leases, rent expense, net, total																							4,500	$ 4,500
Lessee leasing arrangements, operating leases, term of contract								5 years
Benchmark Capital, LLC [Member] | Stock Repurchase Agreement [Member]
Accrued interest expense																							$ 242
Debt instrument interest rate, stated percentage													6.00%
Debt instrument, maturity date													Dec. 31, 2018
Repurchase of common stock													7,000
Value of stock repurchased													$ 5,250
Issuance of promissory note													$ 5,250

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GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash used in operations			$ (35,709)	$ (30,259)
Accumulated deficit	$ (635,792)		(635,792)		$ (548,736)
Net loss	$ (26,453)	$ (29,745)	$ (87,056)	$ (84,349)

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SUBSEQUENT EVENTS (Details Narrative) - USD ($)	1 Months Ended
	Oct. 23, 2018	Jan. 19, 2017	Sep. 30, 2018	Dec. 31, 2017
Note payable - related party			$ 104,318	$ 69,468
10% Unsecured Promissory Note Two [Member]
Note payable - related party		$ 5,000
Interest Rate		10.00%
Due date		Jan. 19, 2018
Subsequent Event [Member] | 10% Unsecured Promissory Note Two [Member]
Note payable - related party	$ 9,000
Interest Rate	10.00%
Due date	Oct. 23, 2019