0001554795-19-000043.txt : 20190226 0001554795-19-000043.hdr.sgml : 20190226 20190226120319 ACCESSION NUMBER: 0001554795-19-000043 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 38 CONFORMED PERIOD OF REPORT: 20181231 FILED AS OF DATE: 20190226 DATE AS OF CHANGE: 20190226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRESTIGE CAPITAL CORP CENTRAL INDEX KEY: 0000790179 STANDARD INDUSTRIAL CLASSIFICATION: OIL ROYALTY TRADERS [6792] IRS NUMBER: 930945181 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-52855 FILM NUMBER: 19632381 BUSINESS ADDRESS: STREET 1: 2157 S LINCOLN STREET STREET 2: SUITE 220 CITY: SALT LAKE CITY STATE: UT ZIP: 84106 BUSINESS PHONE: 8013232395 MAIL ADDRESS: STREET 1: 2157 S LINCOLN STREET STREET 2: SUITE 220 CITY: SALT LAKE CITY STATE: UT ZIP: 84106 FORMER COMPANY: FORMER CONFORMED NAME: HOOD VENTURES INC DATE OF NAME CHANGE: 19991201 10-K 1 pgec0223form10k.htm FORM 10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

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

 

For the fiscal year ended December 31, 2018

 

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

 

For the transition period from ___ to ___

 

Commission file number: 000-52855

 

PRESTIGE CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)

Nevada

(State or other jurisdiction of incorporation or organization)

93-0945181

(I.R.S. Employer Identification No.)

2157 S. Lincoln Street, Suite 220, Salt Lake City, Utah

(Address of principal executive offices)

84106

(Zip Code)

 

Registrant’s telephone number, including area code: (801) 323-2395

 

Securities registered under Section 12(b) of the Act: None

 

Securities registered under Section 12(g) of the Act: Common Stock

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☑

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes ☐ No ☑

 

Indicate by check mark whether the registrant (1) 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 period 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 every Interactive Data File required to be submitted 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 such files). Yes ☑ No ☐

 

Indicate by check mark if disclosure of delinquent filers pursuant to item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☑

 

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 the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐

Non-accelerated filer ☐

Emerging growth company ☑

Accelerated filer ☐

Smaller reporting 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 ☐

 

The registrant did not have an active trading market for its common stock as of the last business day of its most recently completed second fiscal quarter; therefore, an aggregate market value of shares of voting and non-voting common equity held by non-affiliates cannot be determined.

 

The number of shares outstanding of the registrant’s common stock as of February 26, 2019, was 3,332,200.

 

Documents incorporated by reference: None

 

 
 

TABLE OF CONTENTS

 

  PART I  
Item 1. Business 4
Item 1A. Risk Factors 8
Item 2. Properties 8
Item 3. Legal Proceedings 8
Item 4. Mine Safety Disclosures 8
     
  PART II  
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 9
Item 6. Selected Financial Data 10
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 10
Item 8. Financial Statements and Supplementary Data 13
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 23
Item 9A. Controls and Procedures  23
Item 9B. Other Information 24
     
  PART III  
Item 10. Directors, Executive Officers and Corporate Governance 24
Item 11. Executive Compensation 25
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 25
Item 13. Certain Relationships and Related Transactions, and Director Independence 26
Item 14. Principal Accounting Fees and Services 26
     
  PART IV  
Item 15. Exhibits, Financial Statement Schedules 27
Signatures 28

 

 
 

In this annual report references to “Prestige,” “we,” “us,” “our” and “the Company” refer to Prestige Capital Corporation.

 

FORWARD LOOKING STATEMENTS

 

The U. S. Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

 

 

PART I

 

ITEM 1. BUSINESS

 

Historical Development

 

Prestige Capital Corporation (the “Company”) was organized under the laws of the State of Utah on February 7, 1986 under the name of Hood Ventures, Inc. On December 31, 1998, Hood Ventures, Inc. of Utah completed a domicile merger with Prestige Capital Corporation, a Nevada Corporation. The Company was inactive from 2002 and was reactivated in June 2006.

 

Our Business Plan

 

Our business plan is to seek, investigate, and, if warranted, acquire an interest in a business opportunity. Our acquisition of a business opportunity may be made by merger, exchange of stock, or otherwise. We have very limited sources of capital, and we probably will only be able to take advantage of one business opportunity. As of the date of this filing we have not reached any preliminary or definitive agreements or understandings with any person concerning an acquisition or merger.

 

Based upon current economic conditions, management believes that it is possible, if not probable, for a company like ours, without many assets or liabilities, to negotiate a merger or acquisition with a viable private company. The opportunity arises principally because of the expensive legal and accounting fees and the length of time associated with the registration process of “going public.”

 

Our search for a business opportunity will not be limited to any particular geographical area or industry and includes both U.S. and international companies. Our management has unrestricted discretion in seeking and participating in a business opportunity, subject to the availability of such opportunities, economic conditions and other factors. Our management believes that companies who desire a public market to enhance liquidity for current stockholders, or plan to acquire additional assets through issuance of securities rather than for cash, will be potential merger or acquisition candidates.

 

The selection of a business opportunity in which to participate is complex and extremely risky and will be made by management in the exercise of his business judgment. Our activities are subject to several significant risks which arise primarily as a result of the fact that we have no operating business and may acquire or participate in a business opportunity based on the decision of management which will, in all probability, act without consent, vote, or approval of our stockholders. We cannot assure you that we will be able to identify and merge with or acquire any business opportunity which will ultimately prove to be beneficial to Prestige and our stockholders. Should a merger or acquisition prove unsuccessful, it is possible management may decide not to pursue further acquisition activities and management may abandon our search and we may become dormant or be dissolved.

 

It is possible that the range of business opportunities that might be available for consideration by us could be limited by the fact that our common stock is quoted on the OTC Bulletin Board and there is not currently an active public trading market for our common stock. We cannot assure you that a market will develop or that a stockholder will be able to liquidate his/her/its investments without considerable delay, if at all. If a market develops, our shares will likely be subject to the rules of the Securities Enforcement Remedies and Penny Stock Reform Act of 1990. The liquidity of penny stock is affected by specific disclosure procedures required by those rules to be followed by all broker-dealers, including but not limited to, determining the suitability of the stock for a particular customer, and obtaining a written agreement from the customer to purchase the stock. This rule may affect the ability of broker-dealers to sell our securities and may affect the ability of purchasers to sell our securities in any market.

 

 4 

 

Investigation and Selection of Business Opportunities

 

We anticipate that business opportunities will come to our attention from various sources, including our sole officer and director, our stockholders, professional advisors, such as attorneys and accountants, securities broker-dealers, investment banking firms, venture capitalists, members of the financial community and others who may present unsolicited proposals. Management expects that prior personal and business relationships may lead to contacts with these various sources.

 

We expect that our due diligence will encompass, among other things, meetings with the target business’s incumbent management and inspection of its facilities, as necessary, as well as a review of financial and other information which is made available to our management. This due diligence review may be conducted either by our management or by unaffiliated third parties we may engage. Our limited funds and the lack of full-time management will likely make it impracticable to conduct a complete and exhaustive investigation and analysis of a target business before we consummate a business combination. We anticipate that we will rely upon funds provided by advances and/or loans from management and significant stockholders to conduct investigation and analysis of any potential target companies or businesses. We may also rely upon the issuance of our common stock in lieu of cash payments for services or expenses related to any analysis. Management decisions, therefore, will likely be made without detailed feasibility studies, independent analysis, market surveys and the like which, if we had more funds available to us, would be desirable. We will be particularly dependent in making decisions upon information provided by the promoters, owners, sponsors or other persons associated with the target business seeking our participation.

 

Our management will analyze the business opportunities; however, Mr. Taylor, our sole Director and President, is not a professional business analyst (See Part III, Item 10, below). He has not had any experience with mergers and acquisitions of business opportunities and has not been involved with an initial public offering. Due to his lack of experience with mergers and acquisitions, he may rely on principal stockholders or associates, or promoters or their affiliates to assist in the investigation and selection of business opportunities.

 

Certain conflicts of interest exist or may develop between the Company and our President. Mr. Taylor has other business interests to which he currently devotes attention, which includes his vehicle leasing business (See Part III, Item 10, below.) He may be expected to continue to devote his attention to this other business interest although management time should be devoted to our business. As a result, conflicts of interest may arise that can be resolved only through his exercise of judgment in a manner which is consistent with his fiduciary duties to us.

 

A decision to participate in a specific business opportunity may be made upon analysis of:

 

the quality of the business opportunity’s management and personnel,
the anticipated acceptability of its new products or marketing concept,
the merit of its technological changes,
the perceived benefit that it will derive from becoming a publicly held entity, and
numerous other factors which are difficult, if not impossible, to analyze through the application of any objective criteria.

 

No one factor described above will be controlling in the selection of a business opportunity. Management will attempt to analyze all factors appropriate to each opportunity and make a determination based upon reasonable investigative measures and available data. Potential business opportunities may occur in many different industries and at various stages of development. Thus, the task of comparative investigation and analysis of such business opportunities will be extremely difficult and complex. Potential investors must recognize that because of our limited capital available for investigation and management’s limited experience in business analysis, we may not discover or adequately evaluate adverse facts about the business opportunity to be acquired.

 

In many instances, we anticipate that the historical operations of a specific business opportunity may not necessarily be indicative of the potential for future operations because of the possible need to substantially shift marketing approaches, significantly expand operations, change product emphasis, change or substantially augment management, or make other changes. We will be dependent upon the owners of a business opportunity to identify any such problems which may exist and to implement, or be primarily responsible for, the implementation of required changes.

 

 5 

 

Form of Acquisition

 

We cannot predict the manner in which we may participate in a business opportunity. Specific business opportunities will be reviewed as well as our needs and desires and those of the promoters of the opportunity. The legal structure or method deemed by management to be suitable will be selected based upon our review and our relative negotiating strength. Such methods may include, but are not limited to, leases, purchase and sale agreements, licenses, joint ventures and other contractual arrangements. We may act directly or indirectly through an interest in a partnership, corporation or other forms of organization. We may be required to merge, consolidate or reorganize with other corporations or forms of business organizations. In addition, our present management and stockholders most likely will not have control of a majority of our voting shares following a merger or reorganization transaction. As part of such a transaction, our existing director may resign and new directors may be appointed to fill those vacancies without any vote by our stockholders.

 

We likely will acquire our participation in a business opportunity through the issuance of common stock or other securities. Although the terms of any such transaction cannot be predicted, it should be noted that in certain circumstances the criteria for determining whether or not an acquisition is a so-called "tax free" reorganization under Section 368(a)(1) of the Internal Revenue Code of 1986, as amended (the "Code") depends upon whether the owners of the acquired business own 80% or more of the voting stock of the surviving entity. If a transaction were structured to take advantage of these provisions rather than other "tax free" provisions provided under the Code, all prior stockholders would in that circumstance retain 20% or less of the total issued and outstanding shares of the surviving entity. Under other circumstances, depending upon the relative negotiating strength of the parties, prior stockholders may retain substantially less than 20% of the total issued and outstanding shares of the surviving entity. This could result in substantial additional dilution to the equity of those persons who were our stockholders prior to such reorganization.

 

In the case of an acquisition, the transaction may be accomplished upon the sole determination of management without any vote or approval by stockholders. In the case of a statutory merger or consolidation directly involving the Company, it will likely be necessary to call a stockholders' meeting and obtain the approval of the holders of a majority of the outstanding securities. The necessity to obtain such stockholder approval may result in delay and additional expense in the consummation of any proposed transaction and will also give rise to certain appraisal rights to dissenting stockholders. Most likely, management will seek to structure any such transaction so as not to require stockholder approval.

 

The time and costs required to select and evaluate a target business and to structure and complete a business combination cannot presently be ascertained with any degree of certainty. Any costs incurred with respect to the indemnification and evaluation of a prospective business combination that is not ultimately completed may result in a loss to the Company. Also, fees may be paid in connection with the completion of all types of acquisitions, reorganizations or mergers. These fees are usually used to pay legal costs, accounting costs, finder’s fees, consultant’s fees and other related expenses. In the event that any such fees are paid, they may become a factor in negotiations regarding any potential acquisition or merger by us. We have no present arrangements or understandings respecting any of these types of fees.

 

Significant stockholders may actively negotiate or otherwise consent to the purchase of all or any portion of their common stock as a condition to, or in connection with, a proposed reorganization, merger or acquisition. It is not anticipated that any such opportunity will be afforded to other stockholders or that such other stockholders will be afforded the opportunity to approve or consent to any particular stock buy-out transaction. We have not adopted any procedures or policies for the review, approval or ratification of any related party transactions.

 

In the event we merge or acquire a business opportunity, the successor company will be subject to our reporting obligations. This is commonly referred to as a “back door registration.” A back door registration occurs when a non-reporting company becomes the successor of a reporting company by merger, consolidation, exchange of securities, acquisition of assets or otherwise. This type of event requires the successor company to file a current report with the SEC which provides the same kind of information about the company to be acquired that would appear in a registration statement, including audited and pro forma financial statements. This regulation may eliminate many of the perceived advantages of these types of transactions. Accordingly, we may incur additional expense to conduct due diligence and present the required information for the business opportunity in any report.

 

Also, the SEC may elect to conduct a full review of the successor company and may issue substantive comments on the sufficiency of disclosure related to the company to be acquired.

 

In addition, regulations also deny the use of Form S-8 for the registration of securities of a shell company, and limit the use of Form S-8 to a reorganized shell company until the expiration of 60 days from when any such entity is no longer considered to be a shell company. This prohibition could further restrict opportunities for the Company to acquire companies that may already have stock option plans in place that cover numerous employees. In such an instance, there may be no exemption from registration for the issuance of securities in any business combination to these employees, thereby necessitating the filing of a registration statement with the SEC to complete any such reorganization, and incurring the time and expense costs that are normally avoided by “back door” registrations.

 

 6 

 

Competition

 

We expect to encounter substantial competition in our effort to locate attractive business opportunities. Business development companies, venture capital partnerships and corporations, venture capital affiliates of large industrial and financial companies, small investment companies, and wealthy individuals will be our primary competition. Many of these entities will have significantly greater experience, resources and managerial capabilities than we do and will be in a better position than we are to obtain access to attractive business opportunities. We also will experience competition from other public reporting companies, many of which may have more funds available for such opportunities.

 

Effect of Existing or Probable Governmental Regulations on Business

 

We are subject to the Sarbanes-Oxley Act of 2002. This Act creates a strong and independent accounting oversight board, the Public Companies Accounting and Oversight Board, to oversee the conduct of auditors of public companies and to strengthen auditor independence. It also requires steps to enhance the direct responsibility of senior members of management for financial reporting and for the quality of financial disclosures made by public companies; establishes clear statutory rules to limit, and to expose to public view, possible conflicts of interest affecting securities analysts; creates guidelines for audit committee members’ appointment, and compensation and oversight of the work of public companies’ auditors; prohibits certain insider trading during pension fund blackout periods; and establishes a federal crime of securities fraud, among other provisions.

 

We are subject to the Exchange Act of 1934 and are required to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC on a regular basis, and will be required to timely disclose certain material events (e.g., changes in corporate control; acquisitions or dispositions of a significant amount of assets other than in the ordinary course of business; and bankruptcy) in a Current Report on Form 8-K. We are also subject to Section 14(a) of the Exchange Act which requires the Company to comply with the rules and regulations of the SEC regarding proxy solicitations, as outlined in Regulation 14A. Matters submitted to our stockholders at a special or annual meeting of stockholders or pursuant to a written consent will require us to provide our stockholders with the information outlined in Schedules 14A or 14C of Regulation 14A; preliminary copies of this information must be submitted to the SEC at least 10 days prior to the date that definitive copies of this information are forwarded to our stockholders.

 

Our securities are subject to open market trading restrictions because we are a shell company. Under subparagraph (i) of Rule 144, no sales of “restricted securities” issued by the Company while we are a shell company can be publicly sold for at least one year from the date when we file the Form 10 information about any acquisition, reorganization or merger that results in the Company no longer being considered a shell company. These restrictions may inhibit our ability to issue common stock in lieu of cash for services.

 

Employees

 

We currently have no employees. Our management expects to confer with consultants, attorneys and accountants as necessary. We do not anticipate a need to engage any full-time employees so long as we are seeking and evaluating business opportunities. We will determine the need for employees based upon a specific business opportunity, if any.

 

Available Information

 

We currently do not have a Company website.

 

 7 

 

ITEM 1A. RISK FACTORS

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, we are not required to provide the information for this Item.

 

 

ITEM 2. PROPERTIES

 

We do not currently own or lease any property. Until we pursue a viable business opportunity and recognize income we will not seek office space.

 

 

ITEM 3. LEGAL PROCEEDINGS

 

We are not a party to any legal proceedings as of the date of this filing.

 

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable to our operations.

 

 8 

 

PART II

 

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 

Market Information

 

Our common stock is listed on the OTC Bulletin Board under the symbol “PGEC.” There has been minimal trading activity of our shares of common stock during the past two fiscal years. Any over-the-counter market quotations in this trading system reflect inter-dealer prices, without retail mark-up, mark-downs or commissions, and may not necessarily represent actual transactions.

 

Management does not expect any viable market to develop in our common stock unless and until we complete an acquisition or merger. In any event, no assurance can be given that any market for our common stock will develop or be maintained.

 

In addition to the open market trading restrictions because we are a shell company, our shares of common stock are subject to Section 15(g) and Rule 15g-9 of the Securities and Exchange Act, commonly referred to as the “penny stock” rule. The rule defines penny stock to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. These rules may restrict the ability of broker-dealers to trade or maintain a market in our common stock and may affect the ability of stockholders to sell their shares. Broker-dealers who sell penny stocks to persons other than established customers and accredited investors must make a special suitability determination for the purchase of the security. Accredited investors, in general, include individuals with assets in excess of $1,000,000 (excluding their primary residence) or annual income exceeding $200,000 or $300,000 together with their spouse, and certain institutional investors. The rules require the broker-dealer to receive the purchaser’s written consent to the transaction prior to the purchase and require the broker-dealer to deliver a risk disclosure document relating to the penny stock prior to the first transaction. A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, and current quotations for the security. Finally, monthly statements must be sent to customers disclosing recent price information for the penny stocks.

 

Holders

 

We had 96 stockholders of record of our common stock as of February 26, 2019; not including an indeterminate number of shareholders who may hold shares in “street name.”

 

Dividends

 

We have not declared any cash dividends with respect to our common stock and do not intend to declare dividends in the foreseeable future. Our future dividend policy cannot be ascertained with any certainty, and if and until we complete any acquisition, reorganization or merger, no such policy will be formulated. There are no material restrictions limiting, or that are likely to limit, our ability to pay dividends on our securities.

 

Recent Sales of Unregistered Securities

 

On December 31, 2018, the Company issued a total of 800,000 common shares to repay two promissory notes and related accrued interest totaling $166,696. The Board issued 400,000 shares to Maestro Investments, LLC to convert debt of $82,947 and issued 400,000 shares to Compass Equity Partners, LLC to convert debt of $82,949. We relied on an exemption from the registration requirements provided by Section 4(a)(2) of the Securities Act.

 

Issuer Purchase of Securities

 

None.

 

 9 

 

ITEM 6. SELECTED FINANCIAL DATA

 

Not applicable to smaller reporting companies.

 

 

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Executive Overview

 

We are an emerging growth company that has not recorded revenues for the past two fiscal years. In the past we have relied upon management to provide funding for our operations and we are dependent upon financing to continue basic operations. Management intends to rely upon advances or loans from management, significant stockholders or third parties to meet our cash requirements, but we have not entered into written agreements guaranteeing funds and, therefore, no one is obligated to provide funds to us in the future. These factors raise doubt as to our ability to continue as a going concern. Our plan is to combine with an operating company to generate revenue.

 

Any target business that is selected may be a financially unstable company or an entity in its early stages of development or growth, including entities without established records of sales or earnings. In that event, we will be subject to numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. In addition, we may effect a business combination with an entity in an industry characterized by a high level of risk, and, although our management will endeavor to evaluate the risks inherent in a particular target business, there can be no assurance that we will properly ascertain or assess all significant risks.

 

We anticipate that the selection of a business opportunity will be complex and extremely risky. Because of general economic conditions, rapid technological advances being made in some industries and shortages of available capital, our management believes that there are numerous firms seeking the perceived benefits of becoming a publicly traded corporation. Such perceived benefits of becoming a publicly traded corporation include, among other things, facilitating or improving the terms on which additional equity financing may be obtained, providing liquidity for the principals of and investors in a business, creating a means for providing incentive stock options or similar benefits to key employees, and offering greater flexibility in structuring acquisitions, joint ventures and the like through the issuance of securities. Potentially available business combinations may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.

 

If we obtain a business opportunity, then it may be necessary to raise additional capital. We likely will sell our common stock to raise this additional capital. We anticipate that we would issue such stock pursuant to exemptions to the registration requirements provided by federal and state securities laws. The purchasers and manner of issuance will be determined according to our financial needs and the available exemptions to the registration requirements of the Securities Act. We do not currently intend to make a public offering of our stock. We also note that if we issue more shares of our common stock, then our stockholders may experience dilution in the value per share of their common stock.

 

Liquidity and Capital Resources

 

We have not recorded revenues from operations since inception and we have not established an ongoing source of revenue sufficient to cover our operating costs. We intend to obtain capital from management, significant stockholders and third parties to cover minimal operations; however, there is no assurance that additional funding will be available. Our ability to continue as a going concern during the long term is dependent upon our ability to find a suitable business opportunity and acquire or enter into a merger with such company. The type of business opportunity we acquire or merge with will affect our profitability for the long term.

 

 10 

 

Our cash decreased to $201 at December 31, 2018 compared to $572 at December 31, 2017. Our total liabilities decreased to $179,390 at December 31, 2018 compared to $315,104 at December 31, 2017. The decrease in total liabilities for 2018 is primarily due to conversion of loans payable of $93,962, with accrued interest of $72,734, to common stock (See Part II, Item 5, above).

 

During the next 12 months we anticipate incurring additional costs related to the filing of Exchange Act reports. We believe we will be able to meet these costs through advances and loans provided by management, significant stockholders or third parties. We may also rely on the issuance of our common stock in lieu of cash to convert debt or pay for expenses.

 

Results of Operations

 

We did not record revenues in either 2018 or 2017. General and administrative expense consisting primarily of professional fees incurred to maintain our SEC reporting requirements remained consistent at $13,471 for 2018 compared to $13,496 for 2017.

 

Total other expense increased to $17,882 for 2018 compared to $12,748 for 2017 due to interest expense related to loans.

 

Accordingly, our net loss increased to $31,353 for 2018 compared to $26,244 for 2017. Management expects net losses to continue until we acquire or merge with a business opportunity.

 

Commitments and Obligations

 

In prior years, the Company had borrowed $37,800 from First Equity Holdings Corp, a stockholder (“First Equity”) and an additional $5,400 during 2018 in the form of loans payable–related party. At December 1, 2017, the Company converted an additional $58,100 in accounts payable owed First Equity to notes payable-related party. In 2018, First Equity acquired a promissory note from a non-related party in the amount of $39,215. Also, $6,600 of accounts payable to First Equity were converted to promissory notes–related party. These resulted in a $147,115 aggregate note payable–related party balance. The notes are unsecured, due on demand, and bear interest at 8% per annum. Accrued interest through December 31, 2018 and December 31, 2017 was $24,575 and $16,642, respectively. No payments on principle or interest have been made to date. Interest expense on these related party loans for the year ended December 31, 2018 was $7,933.

 

During 2017, the Company borrowed $4,000 from a non-related party and interest expense for the loans for 2018 was $320.

 

Off-Balance Sheet Arrangements

 

We have not entered into 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, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources and would be considered material to investors.

 

 11 

 

Emerging Growth Company

 

We qualify as an emerging growth company as that term is used in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). A company qualifies as an emerging growth company if it has total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year and, as of December 8, 2011, had not sold common equity securities under a registration statement. Under the JOBS Act we are permitted to, and intend to, rely on exemptions from certain disclosure requirements

 

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

 

Tax Cuts and Jobs Act

 

The Company has evaluated Staff Accounting Bulletin No. 118 regarding the impact of the decreased tax rates of the Tax Cuts & Jobs Act. See “Note 6 – Income Taxes” in the notes to our financial statements for schedules that describe the new rates adjusted in the period enacted.


 12 

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

 

PRESTIGE CAPITAL CORPORATION

 

Financial Statements

 

December 31, 2018 and 2017

 

 

INDEX

 

Report of Pinnacle Accountancy Group of Utah, PLLC 14
   
Balance Sheets 15
   
Statements of Operations 16
   
Statements of Stockholders’ Deficit 17
   
Statements of Cash Flows 18
   
Notes to the Financial Statements 19 - 22

 

 13 

 

Pinnacle Accountancy Group of Utah

(a DBA of Heaton & Co., PLLC)

1438 N. Hwy 89, Ste. 120

Farmington, UT 84025

Ph. 801-447-9572

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and Stockholders

Prestige Capital Corporation

Salt Lake City, Utah

 

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Prestige Capital Corporation (the Company) as of December 31 2018 and 2017, and the related statements of operations, stockholders’ deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Emphasis of Matter

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has suffered recurring losses and has no operations which raise substantial doubt about its ability to continue as a going concern.  Management’s plans in regard to these matters are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ Pinnacle Accountancy Group of Utah

 

We have served as the Company’s auditor since 2017.

 

Pinnacle Accountancy Group of Utah

Farmington, Utah

February 22, 2019

 

 14 

 

PRESTIGE CAPITAL CORPORATION

Balance Sheets

 

   December 31, 2018  December 31, 2017
       
ASSETS          
Current Assets          
Cash  $201   $572 
Total Current Assets   201    572 
Total Assets  $201   $572 
Liabilities and Stockholders' Equity (Deficit)          
Liabilities          
Current Liabilities          
Accounts Payable – related party  $6,600   $6,600 
Accounts Payable   1,100    —   
Accrued interest – related party   24,575    16,642 
Accrued interest   —      71,600 
Loans Payable – related parties   147,115    95,900 
Loans Payable – other   —      124,362 
Total Current Liabilities   179,390    315,104 
Total Liabilities   179,390    315,104 
Stockholders' Equity (Deficit)          
Preferred stock - 10,000,000 shares authorized - None issued and outstanding   —      —   
Common Stock - 100,000,000 shares authorized having a par value of $0.001 per share, 3,332,200 shares issued and outstanding at December 31, 2018 and 2,532,200 shares issued and outstanding at December 31,2017   3,332    2,532 
Additional Paid in Capital   713,573    547,677 
Accumulated Retained Deficit   (896,094)   (864,741)
Total Stockholders' Equity (Deficit)   (179,189)   (314,532)
Total Liabilities and Stockholders' Equity (Deficit)  $201   $572 

 

The accompanying notes are an integral part of these financial statements.

 15 

 

PRESTIGE CAPITAL CORPORATION

Statements of Operations

 

   Year Ended
December 31, 2018
  Year Ended December 31, 2017
       
Revenues  $—     $—   
Operating Expenses          
General and administrative   13,471    13,496 
Loss from Operations   (13,471)   (13,496)
           
Other Income (Expense)          
Related party interest expense   (7,933)   (2,890)
Other interest expense   (9,949)   (9,858)
Total other Income (Expense)   (17,882)   (12,748)
           
Net Loss before income taxes   (31,353)   (26,244)
Income taxes   —      —   
           
Net Loss  $(31,353)  $(26,244)
           
Basic and Diluted Loss Per Share  $(0.01)  $(0.01)
           
Basic and Diluted Weighted Average Number of Common Shares Outstanding   2,534,192    2,532,200 

 

The accompanying notes are an integral part of these financial statements.

 16 

 

PRESTIGE CAPITAL CORPORATION

Statements of Stockholders’ Deficit

For the Years Ended December 31, 2017 and 2018

 

   Common Stock  Additional Paid-in  Accumulated  Total Shareholders’
   Shares  Amount  Capital  Deficit  Deficit
                
Balance December 31, 2016   2,532,200   $2,532    547,677    (838,497)   (288,288)
Net loss for the year ended December 31, 2017   —      —      —      (26,244)   (26,244)
Balance December 31, 2017   2,532,200   $2,532    547,677    (864,741)   (314,532)
Conversion of loans and accrued interest into common stock   800,000    800    165,896    —      166,696 
Net loss for the year ended December 31, 2018   —      —      —      (31,353)   (31,353)
Balance December 31, 2018   3,332,200   $3,332   $713,573   $(896,094)  $(179,189)

 

The accompanying notes are an integral part of these financial statements.

 17 

 

PRESTIGE CAPITAL CORPORATION

Statements of Cash Flows

 

   Year Ended December 31,
2018
  Year Ended December 31,
2017
    
CASH FLOWS FROM OPERATING ACTIVITIES          
Net Loss  $(31,353)  $(26,244)
Adjustments to reconcile Net Loss to Net Cash (used in) operations:   —      —   
           
Changes in assets and liabilities          
Expenses paid by related party   6,600    6,600 
Increase in accounts payable   1,100    —   
Increase in accrued interest – related party   7,933    2,890 
Increase in accrued interest   9,949    9,858 
Net cash (used in) Operating Activities   (5,771)   (6,896)
           
CASH FLOWS FROM INVESTING ACTIVITIES   —      —   
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from loans – related party   5,400    2,300 
Proceeds from loans   —      4,000 
Net cash provided by Financing Activities   5,400    6,300 
           
Net Increase (Decrease) in Cash   (371)   (596)
Beginning Cash Balance   572    1,168 
Ending Cash Balance  $201   $572 
           
Supplemental Disclosures          
Cash paid for:          
Interest expense  $—     $—   
Income taxes  $—     $—   
           
Conversion of accounts payable – related party to loans payable – related party  $6,600   $58,100 
Reclassification of loans payable – related party to loans payable  $—     $63,962 
Reclassification of accrued interest on loans payable – related party to accrued interest  $—     $65,217 
Conversion of loans and accrued interest to common stock  $166,696   $—   
Reclassification of loans payable and accrued interest to loans payable – related party  $39,215   $—   

The accompanying notes are an integral part of these financial statements.

 18 

 

Prestige Capital Corporation

Notes to the Financial Statements

December 31, 2018 and 2017

 

NOTE 1 – ORGANIZATION

 

Prestige Capital Corporation (the “Company”) was organized under the laws of the State of Utah on February 7, 1986 under the name of Hood Ventures, Inc. On December 31, 1998, the name was changed to Prestige Capital Corporation. On December 31, 1998, Hood Ventures, Inc. of Utah merged with Prestige Capital Corporation, a Nevada Corporation, leaving the Nevada Corporation as the surviving company. After a period of dormancy, the Company experienced a significant change in shareholder ownership on June 21, 2006 and is considered to be reactivated as of that date and is currently seeking business opportunities or potential business acquisitions. The Company currently has no revenue-generating activities. The Company does not intend to pay dividends in the foreseeable future.

 

 

NOTE 2 – GOING CONCERN

 

The Company's financial statements have been prepared assuming that the Company will continue as a going concern. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. The Company has negative working capital of $179,189 and has incurred losses of $896,094 since inception. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management’s plan to acquire or merge with other operating companies.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

 

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

The accompanying financial statements are prepared on the basis of accounting principles generally accepted in the United States of America.

 

Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

 

 19 

 

Concentration of Credit Risk

Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash.   Our cash balances are maintained in accounts held by major banks and financial institutions located in the United States.  The Company does not maintain amounts on deposit with a financial institution that are in excess of the federally insured limit of $250,000. The Company had $0 of cash balances in excess of federally insured limits at December 31, 2018 and 2017.

 

Fair Value of Financial Instruments

The carrying amounts reported on the balance sheets for accounts payable and accrued interest approximate fair value because of the immediate or short-term maturity of these financial instruments.  The carrying amounts reported for notes payable approximate fair value because the underlying instruments are at interest rates, which approximate current market rates.

 

Income Taxes

The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

 

In July, 2006, the FASB issued ASC 740, Accounting for Uncertainty in Income Taxes, which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. ASC 740 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties. ASC 740 became effective as of January 1, 2007 and had no impact on the Company’s financial statements.

 

The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

 

Basic and Diluted Net income (Loss) per Share

The Company computes net income (loss) per share in accordance with ASC 260 which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.  

 

For the years ended December 31, 2018 and 2017, the Company did not have any potentially dilutive securities (warrants, options, and convertible preferred stock) outstanding.

 

 

NOTE 4 – RELATED PARTY TRANSACTIONS

 

Shareholder Loans – A shareholder and prior officer of the Company had covered corporate expenses and loaned cash to the Company amounting to $93,962.  These loans were sold to third parties in 2011. No amounts were repaid to the note holders. As of December 31, 2017, the amount due to the shareholders for the loans and accrued interest was $93,962 and $65,217, respectively. At December 31, 2018 the Company converted these loans and accrued interest to stock (see Note 5). The interest expense on the loans for the year ended December 31, 2018 was $7,517. The above-mentioned shareholder loans are due on demand and had interest imputed at an annual rate of 8%.

 

In prior years, the Company had borrowed $37,800 from a related party and an additional $5,400 during 2018 in the form of loans payable–related party. At December 1, 2017, the Company converted an additional $58,100 in accounts payable to this related party to notes payable-related party. In 2018 this related party acquired a promissory note from a non-related party in the amount of $39,215. Also an additional $6,600 of accounts payable was converted to promissory notes–related party. These resulted in a $147,115 aggregate note payable–related party balance. The notes are unsecured, due on demand, and bear interest at 8% per annum. Accrued interest through December 31, 2018 and December 31, 2017 was $24,575 and $16,642, respectively. No payments on principle or interest have been made to date. Interest expense for the year ended December 31, 2018 was $7,933.

 

As of the year ended December 31, 2018 and 2017, the Company incurred $6,600 and $6,600, respectively in professional fees payable to a related party.

 

 20 

 

NOTE 5 – STOCKHOLDERS’ EQUITY

 

At December 31, 2018 the Company issued a total of 800,000 common shares to convert two promissory notes and related accrued interest totaling $166,696. The issue price was $0.208 per share.

 

No shares were issued in 2017.

 

 

NOTE 6 - INCOME TAXES

 

At December 31, 2018 and 2017, the Company has available unused net operating loss carryforwards of approximately $356,745 and $325,392, respectively, which may be applied against future taxable income and which expire in various years from 2024 through 2037. Due to a substantial change in the Company’s ownership during June 2006, there will be an annual limitation on the amount of previous net operating loss carryforwards that can be utilized.

 

The amount of and ultimate realization of the benefits from the net operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the net operating loss carryforwards, the Company has established a valuation allowance equal to the tax effect of the net operating loss carryforwards and, therefore, no deferred tax asset has been recognized for the net operating loss carryforwards. The net deferred tax assets are approximately $74,916 and $68,332 as of December 31, 2018 and 2017, respectively, with an offsetting valuation allowance of the same amount resulting in a change in the valuation allowance of approximately $(6,584) during the year ended December 31, 2018.

 

The Company has evaluated Staff Accounting Bulletin No. 118 regarding the impact of the decreased tax rates of the Tax Cuts & Jobs Act. The schedules below reflect the Federal tax provision, deferred tax asset and valuation allowance using the new rates adjusted in the period of enactment.

 

Deferred tax assets and the valuation account are as follows:

 

Deferred tax asset:  For the Years Ended
December 31,
   2018  2017
Net operating loss carryforward (at 21%)  $74,916   $68,332 
Valuation allowance    (74,916)   (68,332)
   $0   $0 

 

 

 

A reconciliation of amounts obtained by applying the indicated Federal tax rates to pre-tax income to income tax benefit is as follows:

 

   For the Years Ended
December 31,
   2018  2017
Federal tax benefit (at 21%)  $6,584   $5,511 
Change in valuation allowance   (6,584)   (23,460)
Effect of rate change on Deferred Tax Asset   —      17,949 
   $0   $0 

 

 21 

 

The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.

 

The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations and in the provision for income taxes. As of December 31, 2018 and 2017 the Company had no accrued interest or penalties related to uncertain tax positions.

 

The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended December 31, 2017, 2016 and 2015.

 

 

NOTE 7 – RECENT PRONOUNCEMENTS

 

The Company has evaluated Recent Accounting Pronouncements and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements.

 

 

NOTE 8 – FAIR VALUE OF FINANCIAL INSTRUMENTS

 

If required by authoritative literature, the Company would account for certain assets and liabilities at fair value.

 

The cash, accounts payable, notes payable and accrued interest have fair values that approximate their carrying values due to the short term nature of these instruments.

 

 

NOTE 9 – SUBSEQUENT EVENTS

 

The Company has evaluated events occurring after the date of the accompanying balance sheets through the date the financial statements were issued and did not identify any material subsequent events requiring adjustment to the accompanying financial statements.

 

 22 

 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

On July 27, 2017, KLJ & Associates, LLP resigned as the Company’s independent registered public accounting firm. KLJ & Associates, LLP had audited our financial statements for the fiscal years ended December 31, 2016 and 2015.

 

On July 31, 2017, the Company engaged Pritchett Siler & Hardy, P.C., Certified Public Accountants, as our independent registered public accounting firm and they resigned on January 23, 2018. Pritchett Siler & Hardy, P.C. did not complete an audit for any fiscal year.

 

On January 23, 2018, the Company engaged Heaton & Company, PLLC, dba Pinnacle Accountancy Group of Utah, as our independent registered public accounting firm and they have audited our financial statements for the fiscal year ended December 31, 2018 and 2017.

 

There were no disagreements between the Company and our independent principal accounting firms related to accounting principles or practices, financial statement disclosure, internal controls or auditing scope or procedures during the last two fiscal year. 

 

 

ITEM 9A. CONTROLS AND PROCEDURES

 

Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our filings under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the rules and forms of the SEC. This information is accumulated to allow timely decisions regarding required disclosure. Our President, who serves as our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report and he determined that our disclosure controls and procedures were ineffective due to a control deficiency. During the period covered by this report we did not have additional personnel to allow segregation of duties to ensure the completeness or accuracy of our information. Due to the size and operations of the Company we are unable to remediate this deficiency until we acquire or merge with another company.

 

Management’s Annual Report on Internal Control over Financial Reporting

 

Management is responsible to establish and maintain adequate internal control over financial reporting. Our principal executive officer is responsible to design or supervise a process that provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The policies and procedures include:

 

  • maintenance of records in reasonable detail to accurately and fairly reflect the transactions and dispositions of assets,
  • provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and directors, and
  • provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on our financial statements.

For the year ended December 31, 2018, management has relied on the Committee of Sponsoring Organizations of the Treadway Commission (COSO), “Internal Control - Integrated Framework,” to evaluate the effectiveness of our internal control over financial reporting. Based upon that framework, management has determined that our internal control over financial reporting is ineffective due to the lack of additional personnel to allow segregation of duties to ensure the completeness or accuracy of our information.

 

Our management determined that there were no changes made in our internal controls over financial reporting during the fourth quarter of 2018 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

 

 23 

 

ITEM 9B. OTHER INFORMATION

 

None.

 

 

PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

Directors and Executive Officers

 

The biographical information of our director and executive officer is presented below. Our bylaws require three directors who serve for terms of one year or until they are replaced by a qualified director. We currently have two vacancies on our board of directors. Our executive officers are chosen by our board of directors and serve at its discretion.

 

Name Age Position Held Director Term
Robert C. Taylor 85

Director

President, Secretary and Treasurer

March 2016 until our next annual meeting.

 

Robert C. Taylor: Since October 1996 Mr. Taylor has been the President and directs the operations of HTS Leasing Co., a Utah corporation that leases cars and trucks. Mr. Taylor’s experience owning and operating his own vehicle leasing business may prove helpful in our search and selection of a business opportunity.

 

During the past ten years Mr. Taylor has not: (1) filed a petition under federal bankruptcy laws or any state insolvency laws, nor had a receiver, fiscal agent or similar officer appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing; (2) been convicted in a criminal proceeding or named subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting his involvement in any type of business, securities or banking activities; or (4) been found by a court of competent jurisdiction in a civil action, by the SEC or the Commodity Futures Trading Commission to have violated any federal or state securities law, and the judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended, or vacated.

 

Compliance with Section 16(a) of the Exchange Act

 

Section 16(a) of the Securities Exchange Act of 1934 requires our directors, executive officers and persons who own more than ten percent of a registered class of our equity securities, to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and our other equity securities. Officers, directors and greater than ten percent beneficial owners are required by SEC regulations to furnish us with copies of all Section 16(a) reports they file. We believe no reports were required to be filed for the year ended December 31, 2018.

 

Code of Ethics

 

We adopted a Code of Ethics for our principal executive and financial officers in 2007. Our Code of Ethics was filed as Exhibit 14 to our Annual Report for the year ended December 31, 2007.

 

Corporate Governance

 

We are a smaller reporting company with minimal operations and only one director and executive officer. As a result, we do not have a standing nominating committee for directors, nor do we have an audit committee with an audit committee financial expert serving on that committee. Our sole director acts as our nominating and audit committee.

 

 24 

 

ITEM 11. EXECUTIVE COMPENSATION

 

Executive Officer Compensation

 

Our principal executive officer, Mr. Taylor, did not receive any compensation from the Company during the year ended December 31, 2018 and he has not received any cash nor non-cash compensation from us during the past two fiscal years. In addition he has no outstanding equity awards at year end.

 

We have not entered into an employment contract with any executive officer and compensation, if any, will be determined at the discretion of our board of directors. In addition, we do not offer retirement benefit plans to our executive officers, nor have we entered into any contract, agreement, plan or arrangement, whether written or unwritten, that provides for payments to a named executive officer at, or in connection with, the resignation, retirement or other termination of a named executive officer, or a change in control of the company or a change in the named executive officer’s responsibilities following a change in control.

 

Compensation of Directors

 

We have no standard arrangements pursuant to which our directors are compensated for any services provided as director, including services for committee participation or for special assignments. We did not pay any compensation to our directors during the year ended December 31, 2018.

 

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

Securities under Equity Compensation Plans

 

None.

 

Beneficial Ownership

 

The following tables set forth the beneficial ownership of our outstanding common stock of our management and of each person or group known by us to own beneficially more than 5% of our voting stock. We have not issued any shares of preferred stock. Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Except as indicated by footnote, the persons named in the table below have sole voting power and investment power with respect to all shares of common stock shown as beneficially owned by them. The percentage of beneficial ownership is based on 3,332,200 shares of common stock outstanding as of February 26, 2019.

 

CERTAIN BENEFICIAL OWNERS

 

Name and address of beneficial owner

Amount and nature

of beneficial ownership

Percent

of class

Tryant, LLC (1)

1608 W 2225 S

Woods Cross, UT 84067

520,000 15.6

Compass Equity Partners, LLC

455 East 400 South

Salt Lake City, UT 84106

400,000 12.0

Maestro Investments, LLC

369 East 900 South, Suite 281

Salt Lake City, UT 84111

400,000 12.0
(1)  Mr. Daniel Drummond is the managing director of Tryant, LLC and these shares are considered beneficially controlled by Mr. Drummond.

 

 

MANAGEMENT

 

Name of beneficial owner

Amount and nature

of beneficial ownership

Percent

of class

Robert C. Taylor 94,572 2.8
Directors and officers as a group 94,572 2.8

 

 25 

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 

Transactions with Related Parties

 

On December 31, 2018, the Company issued 800,000 common shares to two third parties to repay two promissory notes and related accrued interest totaling $166,696. The Board issued 400,000 shares to Maestro Investments, LLC to convert debt of $82,947 and issued 400,000 shares to Compass Equity Partners, LLC to convert debt of $82,949. As a result of this transaction, both companies became more than 10% shareholders.

 

Director Independence

 

Our sole director is not an independent director as defined by NASDAQ Stock Market Rule 5605(a)(2). This rule defines persons as “independent” who are neither officers nor employees of the company and have no relationships that, in the opinion of the board, would interfere with the exercise of independent judgment in carrying out their responsibilities as directors.

 

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

Auditor Fees

 

The following table presents the aggregate fees billed by our principal accounting firms, Pinnacle Accountancy Group of Utah, PLLC, Pritchett Siler & Hardy, P.C. and KLJ & Associates, LLP, for each of the last two fiscal years in connection with the audit of our financial statements and other professional services.

 

   Pinnacle Accountancy Group of Utah, PLLC  Pritchett Siler & Hardy, P.C.  KLJ & Associates, LLP
   2018  2017  2017
Audit fees  $5,400   $1,600   $3,600 
Audit-related fees   0    0    0 
Tax fees   0    0    0 
All other fees  $0   $0   $0 

 

Audit fees represent fees for professional services rendered by our principal accountant for the audit of our annual financial statements and review of the financial statements included in our Forms 10-Q or services that are normally provided by our principal accountant in connection with statutory and regulatory filings or engagements.

 

Audit-related fees represent professional services rendered for assurance and related services by the accounting firm that are reasonably related to the performance of the audit or review of our financial statements that are not reported under audit fees.

 

Tax fees represent professional services rendered by the accounting firm for tax compliance, tax advice, and tax planning.

 

All other fees represent fees billed for products and services provided by the accounting firm, other than the services reported for the other three categories.

 

Pre-approval Policies

 

We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee. Our board of directors will evaluate and approve in advance the scope and cost of the engagement of an auditor. All services rendered by our principal accountant are performed pursuant to a written engagement letter between us and the principal accountant. We do not rely on pre-approval policies and procedures.

  

 26 

 

PART IV

 

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

(a)(1) Financial Statements

 

The audited financial statements of Prestige Capital Corporation are included in this report under Item 8 on pages 13 through 22.

 

(a)(2) Financial Statement Schedules

 

All financial statement schedules are included in the footnotes to the financial statements or are inapplicable or not required.

 

(a)(3) Exhibits

 

The following documents have been filed as part of this report.

 

Exhibits

No. Description
3(i).1 Articles of Incorporation (Incorporated  by reference to exhibit 3(i) to Form 10-KSB, filed December 3, 1999)
3(i).2 Amended Articles of Incorporation (Incorporated  by reference to exhibit 3(i)(a) to Form 10-KSB, filed April 15, 2008)
3(ii) Bylaws  (Incorporated  by reference to exhibit 3(ii) to Form 10-KSB, filed December 3, 1999)
14.1 Code of Ethics (Incorporated  by reference to exhibit 14.1 to Form 10-KSB, filed April 15, 2008)
31.1 Principal Executive Officer Certification
31.2 Principal Financial Officer Certification
32.1 Section 1350 Certification
101.INS XBRL Instance Document
101.SCH XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Calculation Linkbase Document
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
101.LAB XBRL Taxonomy Label Linkbase Document
101.PRE XBRL Taxonomy Presentation Linkbase Document

 

 27 

 

SIGNATURES

 

Pursuant to the requirements of the Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized

 

PRESTIGE CAPITAL CORPORATION

 

 

By:  /s/ Robert C. Taylor

Robert C. Taylor, President

 

Date: February 26, 2019

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

/s/Robert C. Taylor

Robert C. Taylor

President and Director

Principal Financial Officer

 

Date: February 26, 2019

 

28

EX-31.1 2 pgec0223form10kexh31_1.htm EXHIBIT 31.1

Exhibit 31.1

 

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

 

I, Robert C. Taylor, certify that:

 

1.I have reviewed this annual report on Form 10-K of Prestige Capital Corporation;

 

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 statement made, in light of the circumstances under which 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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 registrant’s 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 registrant’s board of directors (or persons performing the equivalent function):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the 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:  February 26, 2019

/s/ Robert C. Taylor

Robert C. Taylor

Principal Executive Officer

EX-31.2 3 pgec0223form10kexh31_2.htm EXHIBIT 31.2

Exhibit 31.2

 

PRINCIPAL FINANCIAL OFFICER CERTIFICATION

 

I, Robert C. Taylor, certify that:

 

1.I have reviewed this annual report on Form 10-K of Prestige Capital Corporation;

 

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 statement made, in light of the circumstances under which 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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 registrant’s 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 registrant’s board of directors (or persons performing the equivalent function):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the 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: February 26, 2019

/s/ Robert C. Taylor

Robert C. Taylor

Principal Financial Officer

EX-32.1 4 pgec0223form10kexh32_1.htm EXHIBIT 32.1

Exhibit 32.1

 

PRESTIGE CAPITAL CORPORATION

 

 

CERTIFICATION OF PERIODIC REPORT

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

18 U.S.C. Section 1350

 

The undersigned executive officer of Prestige Capital Corporation certifies pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

 

the annual report on Form 10-K of the Company for the year ended December 31, 2018, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

the information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

Date: February 26, 2019

 

 

/s/ Robert C. Taylor

Robert C. Taylor

Principal Executive Officer

Principal Financial Officer

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12 Months Ended
Dec. 31, 2018
Feb. 26, 2019
Jun. 30, 2018
Document And Entity Information      
Entity Registrant Name PRESTIGE CAPITAL CORP    
Entity Central Index Key 0000790179    
Document Type 10-K    
Document Period End Date Dec. 31, 2018    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
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Is Entity's Reporting Status Current? Yes    
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Entity Filer Category Non-accelerated Filer    
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Document Fiscal Period Focus FY    
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Entity Shell Company true    
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Dec. 31, 2018
Dec. 31, 2017
Current Assets    
Cash $ 201 $ 572
Total Current Assets 201 572
Total Assets 201 572
Liabilities    
Accounts Payable - related party 6,600 6,600
Accounts Payable 1,100
Accrued interest - related party 24,575 16,642
Accrued interest 71,600
Loans Payable - related party 147,115 95,900
Loans Payable - other 124,362
Total Current Liabilities 179,390 315,104
Total Liabilities 179,390 315,104
Stockholders' Deficit    
Preferred stock - 10,000,000 shares authorized - None issued and outstanding
Common Stock - 100,000,000 shares authorized having a par value of $0.001 per share, 3,332,200 shares issued and outstanding at December 31, 2018 and 2,532,200 shares issued and outstanding at December 31, 2017 3,332 2,532
Additional Paid in Capital 713,573 547,677
Accumulated Retained Deficit (896,094) (864,741)
Total Stockholders' Equity (Deficit) (179,189) (314,532)
Total Liabilities and Stockholders' Equity (Deficit) $ 201 $ 572
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.10.0.1
Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]    
Preferred stock, par value
Preferred stock, authorized 10,000,000 10,000,000
Preferred stock, issued
Preferred stock, outstanding
Common stock, par value $ 0.001 $ 0.001
Common stock, authorized 100,000,000 100,000,000
Common stock, issued 3,332,200 2,532,200
Common stock, outstanding 3,332,200 2,532,200
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.10.0.1
Statements of Operations - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Income Statement [Abstract]    
Revenues
Operating Expense    
General and administrative 13,471 13,496
Loss from Operations (13,471) (13,496)
Other Income (Expense)    
Related party interest expense (7,933) (2,890)
Other interest expense (9,949) (9,858)
Total other Income (Expense) (17,882) (12,748)
Net Loss before income taxes (31,353) (26,244)
Income taxes
Net Loss $ (31,353) $ (26,244)
Basic and Diluted Loss Per Share $ (0.01) $ (0.01)
Basic and Diluted Weighted Average Number of Common Shares Outstanding 2,534,192 2,532,200
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.10.0.1
Statements of Stockholders' Deficit - USD ($)
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Total
Beginning balance, shares at Dec. 31, 2016 2,532,200      
Beginning balance, amount at Dec. 31, 2016 $ 2,532 $ 547,677 $ (838,497) $ (288,288)
Net loss (26,244) (26,244)
Ending balance, shares at Dec. 31, 2017 2,532,200      
Ending balance, amount at Dec. 31, 2017 $ 2,532 547,677 (864,741) (314,532)
Conversion of loans and accrued interest into common stock, shares 800,000      
Conversion of loans and accrued interest into common stock, amount $ 800 165,896 166,696
Net loss (31,353) (31,353)
Ending balance, shares at Dec. 31, 2018 3,332,200      
Ending balance, amount at Dec. 31, 2018 $ 3,332 $ 713,573 $ (896,094) $ (179,189)
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.10.0.1
Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Loss $ (31,353) $ (26,244)
Changes in assets and liabilities:    
Expenses paid by related party 6,600 6,600
Increase in accounts payable 1,100
Increase in accrued interest - related party 7,933 2,890
Increase in accrued interest 9,949 9,858
Net cash (used in) Operating Activities (5,771) (6,896)
CASH FLOWS FROM INVESTING ACTIVITIES    
Net cash provided by Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from loans - related parties 5,400 2,300
Proceeds from loans 4,000
Net cash provided by Financing Activities 5,400 6,300
Net Increase (Decrease) in Cash (371) (596)
Beginning Cash Balance 572 1,168
Ending Cash Balance 201 572
Supplemental Disclosures    
Cash paid for interest expense
Cash paid for income taxes
Conversion of accounts payable - related party to loans payable - related party 6,600 58,100
Reclassification of loans payable - related party to loans payable 63,962
Reclassification of accrued interest on loans payable - related party to accrued interest 65,217
Conversion of loans and accrued interest to common stock 166,696
Reclassification of loans payable and accrued interest to loans payable - related party $ 39,215
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
ORGANIZATION
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION

NOTE 1 – ORGANIZATION

 

Prestige Capital Corporation (the “Company”) was organized under the laws of the State of Utah on February 7, 1986 under the name of Hood Ventures, Inc. On December 31, 1998, the name was changed to Prestige Capital Corporation. On December 31, 1998, Hood Ventures, Inc. of Utah merged with Prestige Capital Corporation, a Nevada Corporation, leaving the Nevada Corporation as the surviving company. After a period of dormancy, the Company experienced a significant change in shareholder ownership on June 21, 2006 and is considered to be reactivated as of that date and is currently seeking business opportunities or potential business acquisitions. The Company currently has no revenue-generating activities. The Company does not intend to pay dividends in the foreseeable future.

XML 18 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
GOING CONCERN
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

NOTE 2 – GOING CONCERN

 

The Company's financial statements have been prepared assuming that the Company will continue as a going concern. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. The Company has negative working capital of $179,189 and has incurred losses of $896,094 since inception. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management’s plan to acquire or merge with other operating companies.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

 

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

The accompanying financial statements are prepared on the basis of accounting principles generally accepted in the United States of America.

 

Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

 

Concentration of Credit Risk

Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash.   Our cash balances are maintained in accounts held by major banks and financial institutions located in the United States.  The Company does not maintain amounts on deposit with a financial institution that are in excess of the federally insured limit of $250,000. The Company had $0 of cash balances in excess of federally insured limits at December 31, 2018 and 2017.

 

Fair Value of Financial Instruments

The carrying amounts reported on the balance sheets for accounts payable and accrued interest approximate fair value because of the immediate or short-term maturity of these financial instruments.  The carrying amounts reported for notes payable approximate fair value because the underlying instruments are at interest rates, which approximate current market rates.

 

Income Taxes

The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

 

In July, 2006, the FASB issued ASC 740, Accounting for Uncertainty in Income Taxes, which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. ASC 740 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties. ASC 740 became effective as of January 1, 2007 and had no impact on the Company’s financial statements.

 

The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

 

Basic and Diluted Net income (Loss) per Share

The Company computes net income (loss) per share in accordance with ASC 260 which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.  

 

For the years ended December 31, 2018 and 2017, the Company did not have any potentially dilutive securities (warrants, options, and convertible preferred stock) outstanding.

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 4 – RELATED PARTY TRANSACTIONS

 

Shareholder Loans – A shareholder and prior officer of the Company had covered corporate expenses and loaned cash to the Company amounting to $93,962.  These loans were sold to third parties in 2011. No amounts were repaid to the note holders. As of December 31, 2017, the amount due to the shareholders for the loans and accrued interest was $93,962 and $65,217, respectively. At December 31, 2018 the Company converted these loans and accrued interest to stock (see Note 5). The interest expense on the loans for the year ended December 31, 2018 was $7,517. The above-mentioned shareholder loans are due on demand and had interest imputed at an annual rate of 8%.

 

In prior years, the Company had borrowed $37,800 from a related party and an additional $5,400 during 2018 in the form of loans payable–related party. At December 1, 2017, the Company converted an additional $58,100 in accounts payable to this related party to notes payable-related party. In 2018 this related party acquired a promissory note from a non-related party in the amount of $39,215. Also an additional $6,600 of accounts payable was converted to promissory notes–related party. These resulted in a $147,115 aggregate note payable–related party balance. The notes are unsecured, due on demand, and bear interest at 8% per annum. Accrued interest through December 31, 2018 and December 31, 2017 was $24,575 and $16,642, respectively. No payments on principle or interest have been made to date. Interest expense for the year ended December 31, 2018 was $7,933.

 

As of the year ended December 31, 2018 and 2017, the Company incurred $6,600 and $6,600, respectively in professional fees payable to a related party.

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
STOCKHOLDERS' EQUITY
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 5 – STOCKHOLDERS’ EQUITY

 

At December 31, 2018 the Company issued a total of 800,000 common shares to convert two promissory notes and related accrued interest totaling $166,696. The issue price was $0.208 per share.

 

No shares were issued in 2017.

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
INCOME TAXES
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 6 - INCOME TAXES

 

At December 31, 2018 and 2017, the Company has available unused net operating loss carryforwards of approximately $356,745 and $325,392, respectively, which may be applied against future taxable income and which expire in various years from 2024 through 2037. Due to a substantial change in the Company’s ownership during June 2006, there will be an annual limitation on the amount of previous net operating loss carryforwards that can be utilized.

 

The amount of and ultimate realization of the benefits from the net operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the net operating loss carryforwards, the Company has established a valuation allowance equal to the tax effect of the net operating loss carryforwards and, therefore, no deferred tax asset has been recognized for the net operating loss carryforwards. The net deferred tax assets are approximately $74,916 and $68,332 as of December 31, 2018 and 2017, respectively, with an offsetting valuation allowance of the same amount resulting in a change in the valuation allowance of approximately $(6,584) during the year ended December 31, 2018.

 

The Company has evaluated Staff Accounting Bulletin No. 118 regarding the impact of the decreased tax rates of the Tax Cuts & Jobs Act. The schedules below reflect the Federal tax provision, deferred tax asset and valuation allowance using the new rates adjusted in the period of enactment.

 

Deferred tax assets and the valuation account are as follows:

 

Deferred tax asset:  For the Years Ended
December 31,
   2018  2017
Net operating loss carryforward (at 21%)  $74,916   $68,332 
Valuation allowance    (74,916)   (68,332)
   $0   $0 

 

 

 

A reconciliation of amounts obtained by applying the indicated Federal tax rates to pre-tax income to income tax benefit is as follows:

 

   For the Years Ended
December 31,
   2018  2017
Federal tax benefit (at 21%)  $6,584   $5,511 
Change in valuation allowance   (6,584)   (23,460)
Effect of rate change on Deferred Tax Asset   —      17,949 
   $0   $0 

 

The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.

 

The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations and in the provision for income taxes. As of December 31, 2018 and 2017 the Company had no accrued interest or penalties related to uncertain tax positions.

 

The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended December 31, 2017, 2016 and 2015.

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
RECENT PRONOUNCEMENTS
12 Months Ended
Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]  
RECENT PRONOUNCEMENTS

NOTE 7 – RECENT PRONOUNCEMENTS

 

The Company has evaluated Recent Accounting Pronouncements and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements.

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 8 – FAIR VALUE OF FINANCIAL INSTRUMENTS

 

If required by authoritative literature, the Company would account for certain assets and liabilities at fair value.

 

The cash, accounts payable, notes payable and accrued interest have fair values that approximate their carrying values due to the short term nature of these instruments.

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 9 – SUBSEQUENT EVENTS

 

The Company has evaluated events occurring after the date of the accompanying balance sheets through the date the financial statements were issued and did not identify any material subsequent events requiring adjustment to the accompanying financial statements.

XML 26 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying financial statements are prepared on the basis of accounting principles generally accepted in the United States of America.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash.   Our cash balances are maintained in accounts held by major banks and financial institutions located in the United States.  The Company does not maintain amounts on deposit with a financial institution that are in excess of the federally insured limit of $250,000. The Company had $0 of cash balances in excess of federally insured limits at December 31, 2018 and 2017.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts reported on the balance sheets for accounts payable and accrued interest approximate fair value because of the immediate or short-term maturity of these financial instruments.  The carrying amounts reported for notes payable approximate fair value because the underlying instruments are at interest rates, which approximate current market rates.

Income Taxes

Income Taxes

The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

 

In July, 2006, the FASB issued ASC 740, Accounting for Uncertainty in Income Taxes, which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. ASC 740 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties. ASC 740 became effective as of January 1, 2007 and had no impact on the Company’s financial statements.

 

The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Basic and Diluted Net income (Loss) per Share

Basic and Diluted Net income (Loss) per Share

The Company computes net income (loss) per share in accordance with ASC 260 which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.  

 

For the years ended December 31, 2018 and 2017, the Company did not have any potentially dilutive securities (warrants, options, and convertible preferred stock) outstanding.

XML 27 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Deferred tax assets and valuation account
Deferred tax asset:  For the Years Ended
December 31,
   2018  2017
Net operating loss carryforward (at 21%)  $74,916   $68,332 
Valuation allowance    (74,916)   (68,332)
   $0   $0 
Income tax benefit reconciliation
   For the Years Ended
December 31,
   2018  2017
Federal tax benefit (at 21%)  $6,584   $5,511 
Change in valuation allowance   (6,584)   (23,460)
Effect of rate change on Deferred Tax Asset   —      17,949 
   $0   $0 
XML 28 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
GOING CONCERN (Details Narrative) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Working capital $ (179,189)  
Accumulated deficit $ (896,094) $ (864,741)
XML 29 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Related Party Transactions [Abstract]    
Amount due to shareholders for loans   $ 93,962
Amount due to shareholders for accrued interest   65,217
Interest expense on shareholder loans $ (7,517)  
Notes payable - related party 147,115 95,900
Accrued interest $ 24,575 $ 16,642
Interest rate on notes payable 8.00% 8.00%
Related party interest expense $ (7,933) $ (2,890)
Professional fees payable to related party $ 6,600 $ 6,600
XML 30 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
STOCKHOLDERS' EQUITY (Details Narrative)
12 Months Ended
Dec. 31, 2018
USD ($)
$ / shares
shares
Equity [Abstract]  
Common stock issued in conversion of promissory notes and related accrued interest, shares | shares 800,000
Common stock issued in conversion of promissory notes and related accrued interest, amount | $ $ 166,696
Common stock issued in conversion of promissory notes and related accrued interest, price per share | $ / shares $ 0.208
XML 31 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
INCOME TAXES - Deferred tax assets and valuation account (Details) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Deferred tax asset:    
Net operating loss carryforward (at 21%) $ 74,916 $ 68,332
Valuation allowance (74,916) (68,332)
Net deferred tax assets
XML 32 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
INCOME TAXES - Income tax benefit reconciliation (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]    
Federal tax benefit (at 21%) $ 6,584 $ 5,511
Change in valuation allowance (6,584) (23,460)
Effect of rate change on Deferred Tax Asset 17,949
Tax reconciliation amount, net
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
INCOME TAXES (Details Narrative) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]    
Unused net operating loss carryforwards $ 356,745 $ 325,392
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