0001213900-14-001278.txt : 20140306 0001213900-14-001278.hdr.sgml : 20140306 20140305204430 ACCESSION NUMBER: 0001213900-14-001278 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20130930 FILED AS OF DATE: 20140306 DATE AS OF CHANGE: 20140305 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Inspired Builders, Inc. CENTRAL INDEX KEY: 0001509786 STANDARD INDUSTRIAL CLASSIFICATION: GEN BUILDING CONTRACTORS - RESIDENTIAL BUILDINGS [1520] IRS NUMBER: 271989147 STATE OF INCORPORATION: NV FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-171636 FILM NUMBER: 14671183 BUSINESS ADDRESS: STREET 1: 233 WILSHIRE BOULEVARD, SUITE 830 CITY: SANTA MONICA STATE: CA ZIP: 90401 BUSINESS PHONE: 310-526-8400 MAIL ADDRESS: STREET 1: 233 WILSHIRE BOULEVARD, SUITE 830 CITY: SANTA MONICA STATE: CA ZIP: 90401 10-K 1 f10k2013_inspiredbuilders.htm ANNUAL REPORT f10k2013_inspiredbuilders.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K
 
(Mark One)
x     ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, 2013

o       TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________
 
Commission file number 333-171636

Inspired Builders, Inc.
 (Name of small business issuer in its charter
 
Nevada
 
27-1989147
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
233 Wilshire Boulevard, Suite 830
Santa Monica, California
 
90401
(Address of principal executive offices)
 
(Zip Code)

(310) 526-8400
 (Registrant’s telephone number, including area code)
 
Securities registered under Section 12(b) of the Exchange Act:
 
Title of each class:
 
Name of each exchange on which registered:
None
 
None
 
Securities registered pursuant to 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 o    No x
 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.  Yes o     No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter 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 x   No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x    No  o

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.   x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
 Large accelerated filer  o
 
  Accelerated filer                   o
 Non-accelerated filer    o (Do not check if a smaller reporting company)
 
 Smaller reporting company  x

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

The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant, as of March 1, 2013, was approximately $0. All executive officers and directors of the registrant have been deemed, solely for the purpose of the foregoing calculation, to be "affiliates" of the registrant.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date, February 28, 2014: 11,125,000.
 


 
 

 
 
FORM 10-K
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013

INDEX

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

 

STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, some of the statements in this Report contain forward-looking statements that involve risks and uncertainties. These statements are found in the sections entitled "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Risk Factors." They include statements concerning: our business strategy; expectations of market and customer response; liquidity and capital expenditures; future sources of revenues; expansion of our product lines; addition of new product lines; and trends in industry activity generally. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expect," "plan," "could," "anticipate," "intend," "believe," "estimate," "predict," "potential," "goal," or "continue" or similar terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including, but not limited to, the risks outlined under "Risk Factors," that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. For example, assumptions that could cause actual results to vary materially from future results include, but are not limited to: our ability to successfully develop and market our products to customers; our ability to generate customer demand for our products in our target markets; the development of our target markets and market opportunities; our ability to produce and deliver suitable products at competitive cost; market pricing for our products and for competing products; the extent of increasing competition; technological developments in our target markets and the development of alternate, competing technologies in them; and sales of shares by existing shareholders. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Unless we are required to do so under U.S. federal securities laws or other applicable laws, we do not intend to update or revise any forward-looking statements.
 
PART I
 
Item 1.   Business.

Overview

Inspired Builders, Inc., a Nevada Corporation, was located in Boston, Massachusetts. On January 13, 2012, pursuant to the change of control transaction, we relocated to Santa Monica, California. Until the change of control transaction, we focused on the real estate construction services business through a residential property repair and home improvement business. .

Since then we have redirected the Company’s focus to acquiring, investing in, developing and managing real estate properties and related investments.  We have evaluated numerous real estate investment opportunities emphasizing commercial real estate development. Any such efforts in real estate will require substantial financial and management resources, which the Company does not currently possess.  Therefore, while we will seek to acquire these resources as a part of our business plans, there can be no assurance of our success, and therefore, in our ability to enter the real estate investment or any other market.

Agreement to Purchase of Duval Property

On June 24, 2013 the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida.  The purchase price for the Duval property was $1,350,000, payable as to $750,000 by the Company’s delivery of a 3% mortgage in the amount of $750,000, which is due June 15, 2014.   The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock, $0.001 par value per share, which was valued by the parties at $6.00 per share.  Due to the related party nature of this transaction, the Company’s carrying value was deemed to be the historical basis of the property, $307,504.  The difference between the purchase price and the historical basis was treated as a deemed distribution and recorded against Additional Paid In Capital.
 
Joint Venture with Development Property Holdings, Inc.

As previously disclosed on Form 8-K filed on December 31, 2013, on December 10, 2013, we entered into a joint venture with Development Property Holdings, Inc. a California corporation, (the “Joint Venture”) to enter into and become a Florida joint venture for the purpose of acquiring certain commercial real property in the State of Florida. The Joint Venture will be vested 50% by each partner and all decisions, costs, expenses and profits will be divided evenly between the two partners. A copy of the Joint Venture Agreement is attached hereto as Exhibit 10.6.

To date, the Joint Venture has not executed and closed on any properties and is still searching for its first project.
 
 
3

 
 
Employees

As of January 7, 2014, other than our Chief Executive Officer, we have 0 employees.

Item 1A.  Risk Factors.

Smaller reporting companies are not required to provide the information required by this item.

Item 1B.  Unresolved Staff Comments.

None.

Item 2.  Properties.

Our principal executive office is now located at 233 Wilshire Boulevard, Suite 830, Santa Monica, California 90401, and our telephone number is (310) 526-8400. We do not have a lease agreement for this property. This property is owned by our sole officer and director and he allows us to use the space to run the business.
 
 
4

 
 
Item 3.  Legal Proceedings.

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company, threatened against or affecting our company, our common stock, or of our companies officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Item 4. Mine Safety Disclosures.

Not applicable.
  
PART II

Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock commenced quotation on the OTC Bulletin Board under the trading symbol “ISRB” on April 8, 2011. The OTC Bulletin Board is generally considered to be a less active and efficient market than the NASDAQ Global Market, the NASDAQ Capital Market or any national exchange and will not provide investors with the liquidity that the NASDAQ Global Market, the NASDAQ Capital Market or a national exchange would offer.  Since being listed on the OTCBB in April 2011 our common stock has not been traded.

Recent Sales of Unregistered Securities

None.

Holders

As of February 25, 2014, we had approximately 27 record holders.

Dividends

No dividends were declared on our common stock in the year ended September 30, 2013, and it is anticipated that cash dividends will not be declared on our common stock in the foreseeable future.  Our dividend policy is subject to the discretion of our board of directors and depends upon a number of factors, including operating results, financial condition and general business conditions.  Holders of common stock are entitled to receive dividends as, if and when declared by our board of directors out of funds legally available therefor.  We may pay cash dividends if net income available to stockholders fully funds the proposed dividends, and the expected rate of earnings retention is consistent with capital needs, asset quality and overall financial condition.

Securities Authorized for Issuance under Equity Compensation Plan

None.

Item 6.  Selected Financial Data.

Smaller reporting companies are not required to provide the information required by this item.

Item 7.  Management’s Discussion and Analysis of Financial Conditions and Results Of Operations.

The following plan of operation provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto. This section includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

 
5

 
 
Plan of Operations

We have commenced limited operations and we will require outside capital to implement our business model.

Inspired Builders, Inc., a Nevada Corporation, was located in Boston, Massachusetts. On January 13, 2012, pursuant to the change of control transaction, we relocated to Santa Monica, California. Until the change of control transaction, we focused on repairing and providing home improvements for the homeowners.

Going forward, we expect to redirect the Company’s focus to acquiring, investing in, developing and managing real estate properties and related investments.  Any such efforts will require substantial financial and management resources, which the Company does not currently possess.  Therefore, while we will seek to acquire these resources as a part of our business plans, there can be no assurance of our success, and therefore, in our ability to enter the real estate investment or any other market.

Limited Operating History

We have generated no independent financial history and have not previously demonstrated that we will be able to expand our business. Our business is subject to risks inherent in growing an enterprise, including limited capital resources and possible rejection of our business model and/or sales methods.

Results of Operations

Comparison of the year ended September 30, 2013 and 2012

For the fiscal year ended September 30, 2013, we had revenues of $0, as compared to $0 in the same period in 2012. Operating expenses for the year ended September 30, 2013 totaled $97,748 resulting in a net loss of $132,799, as compared to operating expenses of $212,539 and a net loss of $228,980 for the year ended September 30, 2012. Expenses for the year ended September 30, 2013 consisted of $97,748 in general and administrative expenses, as compared to $212,539 of general administrative expenses for the same period in 2012.

Liquidity and Capital Resources

Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. We have been funding our operations through the sale of our common stock.

Our net revenues are not sufficient to fund our operating expenses. At September 30, 2013, we had a cash balance of $857.   Since inception, we raised $6,500 from the sale of common stock to fund our operating expenses, pay our obligations, and grow our company. We currently have no material commitments for capital expenditures. We may be required to raise additional funds, particularly if we are unable to generate positive cash flow as a result of our operations. We estimate that based on current plans and assumptions, that our available cash will not be sufficient to satisfy our cash requirements under our present operating expectations, without further financing, for up to 12 months. We do not have sufficient working capital to fund the expansion of our operations and to provide working capital necessary for our ongoing operations and obligations. We will need to raise significant additional capital to fund our operating expenses, pay our obligations, and grow our company. We do not anticipate that we will be profitable in 2014. Therefore our future operations will be dependent on our ability to secure additional financing. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. However, the trading price of our common stock and a downturn in the U.S. equity and debt markets could make it more difficult to obtain financing through the issuance of equity or debt securities. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect amounts owed to us, or experience unexpected cash requirements that would force us to seek alternative financing. Furthermore, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock. The inability to obtain additional capital will restrict our ability to grow and may reduce our ability to continue to conduct business operations. If we are unable to obtain additional financing, we will likely be required to curtail our marketing and development plans and possibly cease our operations.
 
 
6

 

We anticipate that depending on market conditions and our plan of operations, we may incur operating losses in the foreseeable future. Therefore, our auditors have raised substantial doubt about our ability to continue as a going concern.

Our liquidity may be negatively impacted by the significant costs associated with our public company reporting requirements, costs associated with newly applicable corporate governance requirements, including requirements under the Sarbanes-Oxley Act of 2002 and other rules implemented by the Securities and Exchange Commission. We expect all of these applicable rules and regulations to significantly increase our legal and financial compliance costs and to make some activities more time consuming and costly.

Critical Accounting Policies and Estimates

While our significant accounting policies are more fully described in Note 1 to our financial statements for the period ended September 30, 2013, we believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis.

Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related to bad debts, recovery of long-lived assets, income taxes, and the valuation of real estate and equity transactions. We base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of the financial statements.

Revenue recognition

We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and collectability is reasonably assured.  For all revenue sources discussed below, in accordance with ASC 605-45 “Principal Agent Considerations”, we recognize revenue net of amounts retained by third party entities pursuant to revenue sharing agreements. Our specific revenue recognition policies are as follows:

We recognize revenue from the acceptance of a home remodeling contract and the signing of the contract when the project is completed and collection is reasonably assured.

 
7

 
 
Stock-based compensation

We account for stock-based instruments issued to employees in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees. There were no options outstanding as of September 30, 2013. We account for non-employee share-based awards in accordance with ASC Topic 505-50.
 
Recent Accounting Pronouncements
 
Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC, did not, or are not believed by management, to have a material impact on the Company’s present or future financial statements.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk.

Smaller reporting companies are not required to provide the information required by this item.
 
 
8

 
 
Item 8.  Financial Statements and Supplementary Data.
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors of:
Inspired Builders, Inc.

We have audited the accompanying balance sheet of Inspired Builders, Inc. (the “Company”) as of  September 30, 2013, and the related statement of operations, statement of stockholders’ deficit and cash flows for the year then ended.  These financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these financial statements based on our audit. 

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of Inspired Builders, Inc. as of September 30, 2013 and the results of its operations and its cash flows for the period then ended,  in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 3 in the financial statements, the Company has a net loss of $132,799, an accumulated deficit of $432,974 and a negative cash flow from continuing operations of $ 61,628. These factors raise substantial doubt about the Company's ability to continue as a going concern.  Management's plans concerning these matters are also described in Note 3.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
 
Liggett, Vogt & Webb, P.A.
Certified Public Accountants
 
Boynton Beach, Florida
February 28, 2014
 
 
 
F-1

 
 
Report of Independent Registered Public Accounting Firm
 
To the Board of Directors and Stockholders of Inspired Builders Inc.
 
We have audited the accompanying balance sheet of Inspired Builders Inc. as of September 30, 2012 and the related statements of operations, stockholders' deficit, and cash flows for the year in the period ended September 30, 2012. These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
 
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.
 
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Inspired Builders Inc. as of September 30, 2012, and the results of its operations and its cash flows for the year in the period ended September 30, 2012, in conformity with U.S. generally accepted accounting principles.
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 3 to the financial statements, the Company has suffered recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern.  Management’s plans in regard to these matters are also discussed in Note 3.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
 
Donahue Associates LLC
Monmouth Beach, N.J.
January 15, 2013
 
 
 
F-2

 
 
INSPIRED BUILDER, INC.
 
BALANCE SHEETS
 
   
ASSETS
 
             
   
As of September 30,
 
   
2013
   
2012
 
ASSETS
           
             
Current Assets:
           
Cash
  $ 857     $ -  
Prepaid expenses
    -       4,000  
Total current assets
    857       4,000  
                 
Real estate
    307,504       -  
                 
Total assets
  $ 308,361     $ 4,000  
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
 
   
Current Liabilities:
               
Accounts payable and accrued expenses
  $ 74,600     $ 17,429  
Accrued salary
    10,000          
Due to related parties
    3,711       54,746  
Mortgage payable - related party
    750,000          
Notes payable - related parties
    324,520       211,000  
Total current liabilities
    1,162,831       283,175  
                 
Commitments and Contingencies: (See Note 10)
               
                 
Stockholders' deficit:
               
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding
    -       -  
Common stock, $0.001 par value, 50,000,000 shares authorized, 11,125,000 and 11,025,000 shares outstanding, and 11,025,000 shares issued, respectively
    11,125       11,025  
Additional paid in capital
    (432,621 )     9,975  
Accumulated deficit
    (432,974 )     (300,175 )
Total Stockholders’ deficit
    (854,470 )     (279,175 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
  $ 308,361     $ 4,000  
 
See accompanying notes to financial statements.
 
 
F-3

 
 
INSPIRED BUILDERS, INC.
STATEMENTS OF OPERATIONS
             
   
For the Years Ended September 30,
 
   
2013
   
2012
 
             
OPERATING EXPENSES
           
General and administrative
  $ 97,748     $ 212,539  
      Total operating expenses
    97,748       212,539  
                 
LOSS FROM OPERATIONS
    (97,748 )     (212,539 )
                 
Other expenses
               
Interest expense
    35,051       16,441  
                 
Net Loss before provision for income taxes
    (132,799 )     (228,980 )
                 
Provision for income taxes
    -       -  
                 
NET LOSS
  $ (132,799 )   $ (228,980 )
                 
Net loss per share - basic and diluted
  $ (0.01 )   $ (0.02 )
                 
Weighted average number of shares outstanding during the period - basic and diluted
    11,051,849       11,025,000  
 
See accompanying notes to financial statements.
 
 
F-4

 
 
INSPIRED BUILDERS, INC
 
STATEMENTS OF CASH FLOWS
 
             
   
For the Years Ended September 30,
 
   
2013
   
2012
 
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net loss
  $ (132,799 )   $ (228,980 )
Adjustments to reconcile net loss to net cash used in operating activities:
         
Changes in operating assets and liabilities:
               
(Increase) / Decrease in prepaid expenses
    4,000       (4,000 )
Increase / (Decrease) in accounts payable and accrued interest
    57,171       (30,971 )
Increase in accrued salary
    10,000       -  
Net Cash Used In Operating Activities
    (61,628 )     (263,951 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Advances - related parties
    3,711       54,746  
Proceeds from notes payable - related parties
    58,774       208,000  
Net Cash Provided By Financing Activities
    62,485       262,746  
                 
NET INCREASE / DECREASE IN CASH
    857       (1,205 )
                 
CASH AT BEGINNING OF YEAR
    -       1,205  
                 
CASH AT END OF YEAR
  $ 857     $ -  
                 
Supplemental disclosure of non cash investing & financing activities:
         
Cash paid for income taxes
  $ -     $ -  
Cash paid for interest expense
  $ -     $ -  
 
On June 24, 2013 the Company authorized the issuance of 100,000 shares of common stock and a note payable of $750,000 as consideration for the purchase of real estate from a related party. The real estate was recorded at its historical cost and the difference between the historical costs and the consideration paid was treated as a return of capital of $442,496.
 
See accompanying notes to financial statements.
 
 
F-5

 
 
INSPIRED BUILDERS, INC
STATEMENT OF STOCKHOLDERS' DEFICIT
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
 
                           
Additional
         
Total
 
   
Preferred Stock
   
Common Stock
   
Paid-in
   
Accumulated
   
Stockholders'
 
   
Shares
   
Par Value
   
Shares
   
Par Value
   
Capital
   
Deficit
   
Deficit
 
                                           
Balance, September 30, 2011
    -     $ -       11,025,000     $ 11,025     $ 9,975     $ (71,195 )   $ (50,195 )
                                                         
Net Loss for the year ended September 30, 2012
    -       -       -       -       -       (228,980 )     (228,980 )
                                                         
Balance, September 30, 2012
    -       -       11,025,000       11,025       9,975       (300,175 )     (279,175 )
                                                         
Net Loss for year ended September 30, 2013
    -       -       -       -       -       (132,799 )     (132,799 )
                                                         
Common stock approved for issuance for purchase of real estate
    -       -       100,000       100       (442,596 )     -       (442,496 )
                                                         
Balance September 30, 2013
    -     $ -       11,125,000     $ 11,125     $ (432,621 )   $ (432,974 )   $ (854,470 )
 
See accompanying notes to financial statements.
 
 
F-6

 
 
Inspired Builders, Inc.
Notes to Financial Statements
For the Years Ended September 30, 2013 and 2012
 
1.   Nature of Operations

Inspired Builders, Inc. (the “Company”) was incorporated in the State of Nevada in February 2010.  The Company is a construction company that specializes in residential home repair and home improvements.  The Company contracts with homeowners to build custom home improvements, including shelving for closets, bathroom remodeling, upgrading home entertainment centers and replacing flooring.  In May 2013, the Company’s board of directors determined that conversion of the Company’s corporate status to that of a real estate investment trust (a “REIT”) would best support the company’s strategic direction.  Accordingly, the board passed and adopted a resolution for the Company to be treated as a REIT.  As of February 28, 2014, the Company has not completed the necessary filings to change its status with the Internal Revenue Services.
 
2. Summary of Significant Accounting Policies
 
Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the following; estimates of the probability and potential magnitude of contingent liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, valuation of shares issued in connection with the purchase of real estate, the valuation of the real estate and the evaluation of any impairment on the real estate.
 
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.

Cash

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.  There were no cash equivalents at September 30, 2013 and 2012.
The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits.
 
Fair Value of Financial Instruments
 
For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amounts of cash, loan payable, accounts payable and accrued expenses reported in the balance sheets are estimated by management to approximate fair value at September 30, 2013 and 2012.
 
Revenue Recognition
 
The Company records revenue for services rendered when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) the product/service is delivered, (3) the sales price to the customer is fixed or determinable, and (4) collectability of the related customer receivable is reasonably assured. 
 
Income Taxes

The Company accounts for income taxes in accordance with generally accepted accounting principles which requires an asset and liability approach to financial accounting and reporting for income taxes.  Deferred income tax assets and liabilities are computed annually for differences between financial statement and income tax bases of assets and liabilities that will result in taxable income or deductible expenses in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets and liabilities to the amount expected to be realized.  Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities.
 
The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (FASB) ASC 740,   Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the positions will be sustained upon examination by the tax authorities.  It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  As of September 30, 2013 and September 30, 2012, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.  All tax returns from fiscal years 2010 to 2013 are subject to IRS audit.

 
 
F-7

 
 
Earnings per share

In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,”  basic earnings (loss) per share is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period.  Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period.
 
The Company did not have any potential common stock equivalents at September 30, 2013 and 2012.

Recent accounting pronouncements

Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC, did not, or are not believed by management, to have a material impact on the Company’s present or future financial statements.

3. Going Concern

As reflected in the accompanying financial statements, the Company has a net loss of $137,399 and net cash used in operations of $61,628 for the year ended September 30, 2013. In addition, the Company has not had construction revenues since May 2011 and the only prospect for positive cash flow is through the issuance of common stock or debt.  If the Company does not begin to generate sufficient revenue or raise additional funds through a financing, the Company may need to incur additional liabilities with certain related parties to sustain the Company’s existence. The Company will require additional funding to finance the growth of its future operations as well as to achieve its strategic objectives.   This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and generate revenue. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

4. Real Estate

On June 24, 2013, the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida. The purchase price for the Duval property was $1,350,000, payable as $750,000 by the Company’s delivery of its 3% note and mortgage, due June 15, 2014. The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock. The $0.001 par value per share was valued by the parties at $6.00 per share, based on the closing price of the stock on the date of the closing. In accordance with SAB 7310.1, transfers of nonmonetary assets for stock or other consideration of the registrant are recorded at the predecessor cost. Accordingly, the Company recorded the value of the real estate acquired at the historical basis of $307,504.
 
5. Employment Agreement

On September 1, 2013 the Company entered into a three year employment contract with its CEO. The CEO is to be paid $10,000 per month plus reimbursement for expenses and bonuses as determined by the board.  The CEO will be entitled to one week paid vacation and is subject to a one year non-compete agreement at the end of the employment contract.  As of September 30, 2013, the Company has accrued $10,000, for amounts due to the CEO.

6. Mortgage Payable – Related Party

On June 24, 2013 the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida. The purchase price for the Duval property was $1,350,000, payable as $750,000 by the Company’s delivery of its 3% note and mortgage, due June 15, 2014. The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock. The $0.001 par value per share was valued by the parties at $6.00 per share, based on the closing price of the stock on the date of the closing. As of September 30, 2013 the Company has accrued interest of $6,125 due on the mortgage.
 
7. Notes Payable – Related Parties
  
On January 13, 2012 the Company entered into a 12 month unsecured promissory note in the amount of $211,000.  Interest accrues in arrears on the outstanding principal at the rate of ten percent (10.00%) per annum.  Interest shall be payable on the last day of each quarter, commencing March 30, 2012, and continuing until the maturity date.  Should the maker fail to pay the entire principal and accrued interest by the maturity date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014.   The loan maturity dates were further extended to January 13, 2015 on January 13, 2014.  On May 22, 2012, the Company borrowed an additional $32,714 from the related party, with the same terms. On September 17, 2012, the Company borrowed an additional $22,033 from the related party, with the same terms.  On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company borrowed an additional $30,000 from the related party, with the same terms.  The total outstanding principal at September 30, 2013 amounted to $324,529. Accrued interest at September 30, 2013, and September 30, 2012, amounted to $45,768 and $16,341, respectively.
 
 
F-8

 
 
8. Stockholders’ Equity
 
On June 24, 2013, the Company approved the issuance of 100,000 shares of common stock to a related party as partial consideration for the purchase of real estate.  The shares were valued at the historical cost of the consideration given.  The difference between the historical cost and the consideration paid was treated as a return of capital of $442,496.
  
9.  Income Taxes
 
Provision for income taxes is comprised of the following:
           
             
   
September 30, 2013
   
September 30, 2012
 
             
Current tax expense:
               
  Federal
 
$
0
   
$
0
 
  State
   
0
     
0
 
  Total
 
$
0
   
$
0
 
 
A reconciliation of provision for income taxes at the statutory rate to provision for income taxes at the Company's effective tax rate is as follows:
           
Statutory U.S. federal rate
   
34
%
   
34
%
Statutory state  income tax
   
5.83
%
   
0%
 
Less valuation allowance
   
(39.83
)%
   
(34
)%
Effective rate
   
0
%
   
0
%
                 
Deferred income taxes are comprised of the following:
               
                 
Tax loss carryforwards
 
$
172,232
   
$
119,332
 
Less valuation allowance
   
(172,232
)
   
(119,332
)
Deferred tax benefit
 
$
0
   
$
0
 
 
The increase in the valuation allowance for the year ended September 30, 2013 was an increase of $52,900.

10. Commitments and Contingencies

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.  However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise that may harm its business. The Company is currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.
 
11. Concentration of Credit Risk

The Company relies heavily on the support of its president and majority shareholder.  A withdrawal of this support, for any reason, will have a material adverse effect on the Company’s financial position and its operations.
 
12.  Related Party Transaction

On January 13, 2012 the Company entered into a 12 month unsecured promissory note in the amount of $211,000.  Interest accrues in arrears on the outstanding principal at the rate of ten percent (10.00%) per annum.  Interest shall be payable on the last day of each quarter, commencing March 30, 2012, and continuing until the maturity date.  Should the maker fail to pay the entire principal and accrued interest by the maturity date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014.  The loan maturity dates were further extended to January 13, 2015 on January 13, 2014.  On May 22, 2012, the Company borrowed an additional $32,714 from the related party, with the same terms. On September 17, 2012, the Company borrowed an additional $22,033 from the related party, with the same terms.  On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company borrowed an additional $30,000 from the related party, with the same terms Total outstanding principal at September 30, 2013 amounted to $324,529. Accrued interest at September 30, 2013, and September 30, 2012, amounted to $45,768 and $16,341, respectively.
 
 
F-9

 
 
On June 24, 2013 the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida. The purchase price for the Duval property was $1,350,000, payable as $750,000 by the Company’s delivery of its 3% note and mortgage, due June 15, 2014. The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock. In accordance with SAB 7310.1, transfers of nonmonetary assets for stock or other consideration of the registrant are recorded at the predecessor cost. Accordingly, the Company recorded the value of the real estate acquired at the historical basis of $307,504. As of September 30, 2013 the Company recorded accrued interest of $6,125
 
On September 1, 2013 the Company entered into a three year employment contract with its CEO. The CEO is to be paid $10,000 per month plus reimbursement for expenses and bonuses as determined by the board.  The CEO will be entitled to one week paid vacation and is subject to a one year non-compete agreement at the end of the employment contract.  As of September 30, 2013, the Company has accrued $10,000, for amounts due to the CEO.
 
13. Subsequent Events
 
On November 14, 2013, a related party advanced the Company $19,960 for working capital.

On November 13, 2013, a related party entered into an unsecured note payable for $25,000 with an interest rate of 10% due November 13, 2014.

On December 20, 2013, a related party advanced the Company $2,500 for working capital.

On January 13, 2014, a related party entered into an unsecured note payable for $3,352 with an interest rate of 5% due January 13, 2015.

On January 7, 2014, a related party advanced the Company $5,000 for working capital.

On January 24, 2014, a related party advanced the Company $10,000 to pay for 1 months salary to our Chief Executive Officer.
 
In December 2013 the Company entered into a Joint Venture Agreement with Development Property Holdings, Inc. a California corporation, to enter into and become a Florida joint venture for the purpose of acquiring certain commercial real property in the State of Florida. The Joint Venture will be vested 50% by each partner and all decisions, costs, expenses and profits will be divided evenly between the two partners. To date, the Joint Venture has not executed and closed on any properties and is still searching for its first project.

On February 7, 2014, the Company issued 100,000 shares to the seller of the property, a related party, which closed on June 24, 2013.
 
 
F-10

 
 
Item 9.  Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

None.

Item 9A.  Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) (the Company’s principal executive officer) and Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures are not effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Management's Annual Report on Internal Control Over Financial Reporting.

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting for the Company.  Our internal control system was designed to, in general, provide reasonable assurance to the Company’s management and board regarding the preparation and fair presentation of published financial statements, but because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of September 30, 2013.  The framework used by management in making that assessment was the criteria set forth in the document entitled “ Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment, our management has determined that as of September 30, 2013, the Company’s internal control over financial reporting was not effective for the purposes for which it is intended.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. In its assessment of the effectiveness of internal control over our financial reporting as of September 30, 2013 the Company determined that the following items constituted a material weakness:
 
 
·
The Company does not currently have an active Chief Financial Officer to oversee the day to day transactions and operations, which ensures the timely and accurate identification and reporting of all necessary transactions.
     
 
·
The Company does not have an independent audit committee that can review and approve significant transactions and the reporting process and provide independent oversight of the Company.
     
 
·
The Company is dependent on related parties for funding and decision making, which is provided on a very limited basis, therefore accurate accounting, record retention and financial disclosures are not performed in a timely and efficient manner.
     
 
·
The Company failed to issue shares approved for issuance as part of the purchase of property, which closed in June 2013.

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm as we are a smaller reporting company and not required to provide the report.
 
 
9

 
 
Changes in Internal Controls over Financial Reporting

No change in our system of internal control over financial reporting occurred during the period covered by this report, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information.

In December 2013 the Company entered into a Joint Venture Agreement with Development Property Holdings, Inc. a California corporation, to enter into and become a Florida joint venture for the purpose of acquiring certain commercial real property in the State of Florida. The Joint Venture will be vested 50% by each partner and all decisions, costs, expenses and profits will be divided evenly between the two partners. To date, the Joint Venture has not executed and closed on any properties and is still searching for its first project.
 
PART III

Item 10.  Directors, Executive Officers and Corporate Governance
 
The following table sets forth the name and age of officers and director as of September 30, 2013. Our Executive Officers are appointed by our Board of Directors and hold their offices until they resign or are removed by the Board. Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws.
 
Name
 
Age
 
Position
Matthew Nordgren
 
30
 
Chief Executive Officer, Chief Operating Officer and Director

Set forth below is a brief description of the background and business experience of our executive officer and director for the past five years.

Matthew Nordgren, age 30, has served as the Chief Executive Officer of Nordco Consulting since he founded it in February 2009.  From 2007 to 2010, Mr. Nordgren has been a partner and Vice President of Schlegel Woy Management.  Since 2008, Mr. Nordgren has been the Texas President of VEEV, where he is responsible for marketing, distribution, and sales within the State of Texas.  Since 2002, Mr. Nordgren has served as an executive at Nordco, Inc., where he is responsible for corporate development and marketing strategies. Mr. Nordgren received his B.A. in government from the University of Texas.
 
Director Independence and Board Committees

We do not have any independent directors on our board of directors. Our board of directors solely consists of Brendan Powderly, our Chief Executive Officer, who is not independent. Our board of directors does not have any committees, as companies whose securities are traded on the OTC Bulletin Board are not required to have board committees. However, if, at such time in the future, we appoint independent directors on our board we expect to form the appropriate board committees.

We currently do not have a standing audit, nominating or compensation committee.  Our board of directors handles functions that would otherwise be handled by each of the committees.  We believe that there is not a need for a nominating committee at this time because our board of directors consists of solely one director who is not independent and who is the only decision maker. At such point when we have independent board of directors we will need to establish a nomination committee.
 
Term of Office

Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. Our officers are appointed by our board of directors and hold office until removed by the board.

Code of Ethics

We have not adopted a code of ethics that applies to our principal executive officer and principal financial officer. We intend to adopt a Code of Ethics as we develop our business.
 
 
10

 
 
Item 11.  Executive Compensation.

The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officers paid by us for fiscal year 2013 and fiscal year 2012.
 
SUMMARY COMPENSATION TABLE
 
Name and Principal Position
 
Year
 
Salary
($)
 
Bonus
($)
 
Stock
 Awards
($)
 
Option
Awards
($)
 
Non-Equity
Incentive Plan
Compensation
($)
 
Non-Qualified
Deferred
Compensation
Earnings
($)
 
  All Other
Compensation
($)
 
Totals
($)
 
Matthew Nordgren,
 
2013
 
$
10,000
 
0
   
0
 
0
   
0
 
0
 
$
0
 
$
10,000
 
Chief Executive Officer (1)
 
2012
 
$
0
 
0
   
0
 
0
   
0
 
0
 
$
0
 
$
0
 
                                                 
Carlos Salas,
 
2013
 
$
0
 
0
   
0
 
0
   
0
 
0
 
$
0
 
$
0
 
Chief Executive Officer, Chief Operating Officer (2)
 
2012
 
$
0
 
0
   
0
 
0
   
0
 
0
 
$
0
 
$
0
 

(1)
 
Matthew Nordgren was appointed as the Chief Executive Officer on February 22, 2013.
(2)
 
Carlos Salas resigned on February 22, 2013 as the Chief Executive Officer and director of the Company.

Compensation of Directors

Directors are permitted to receive fixed fees and other compensation for their services as directors. The Board of Directors has the authority to fix the compensation of directors. No amounts have been paid to, or accrued to, directors in such capacity.

Employment Agreements
 
On September 1, 2013, the Company approved an employment agreement for Matthew Nordgren. Pursuant to the employment agreement, Mr. Nordgren shall be paid $10,000 per month and is eligible for an annual bonus in stock or cash. The term of the employment agreement is for 3-years. A copy of the Employment Agreement is attached hereto as Exhibit 10.1.

Pursuant to the terms of the change of control, Mr. Powderly terminated any employment agreement he had with the Company and waived any rights to any payments due to him under this employment agreement.

 
11

 
 
Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following table provides the names and addresses of each person known to us to own more than 5% of our outstanding shares of common stock as of February 25, 2014, and by the officers and directors, individually and as a group. Except as otherwise indicated, all shares are owned directly and the shareholders listed possesses sole voting and investment power with respect to the shares shown.

Name
 
Number of
Shares
Beneficially
Owned
   
Percent
of
Class (1)
 
Matthew Nordgren; 233 Wilshire Boulevard, Suite 830, Santa Monica, CA 90401
   
0
       
*
All Executive Officers and Directors as a group (1 person)
   
0
     
*
%
Swan Associates Group, LLC
   
3,508,333
     
31.536
%

* denotes ownership of less than 1%.

(1)
Based on 11,125,000 shares of common stock outstanding as of February 25, 2014.

Item 13.  Certain Relationships and Related Transactions, and Director Independence.
 
Other than the above, none of the following persons has any direct or indirect material interest in any transaction to which we are a party since our incorporation or in any proposed transaction to which we are proposed to be a party:

 
(A)
Any of our directors or officers;
 
(B)
Any proposed nominee for election as our director;
 
(C)
Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our common stock; or
 
(D)
Any relative or spouse of any of the foregoing persons, or any relative of such spouse, who has the same house as such person or who is a director or officer of any parent or subsidiary of our company.
 
Director Independence

We do not have any independent directors. Because our common stock is not currently listed on a national securities exchange, we have used the definition of “independence” of The NASDAQ Stock Market to make this determination.  NASDAQ Listing Rule 5605(a)(2) provides that an “independent director” is a person other than an officer or employee of the company or any other individual having a relationship which, in the opinion of the Company’s Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.  The NASDAQ listing rules provide that a director cannot be considered independent if:

the director is, or at any time during the past three years was, an employee of the company;
   
the director or a family member of the director accepted any compensation from the company in excess of $120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain exclusions, including, among other things, compensation for board or board committee service);
   
a family member of the director is, or at any time during the past three years was, an executive officer of the company;
   
the director or a family member of the director is a partner in, controlling stockholder of, or an executive officer of an entity to which the company made, or from which the company received, payments in the current or any of the past three fiscal years that exceed 5% of the recipient’s consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain exclusions);
   
the director or a family member of the director is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officers of the company served on the compensation committee of such other entity; or
   
the director or a family member of the director is a current partner of the company’s outside auditor, or at any time during the past three years was a partner or employee of the company’s outside auditor, and who worked on the company’s audit.

Matthew Nordgren is not considered independent because he is an executive officer of the Company.

 
12

 
 
We do not currently have a separately designated audit, nominating or compensation committee.

Item 14.  Principal Accounting Fees and Services.

Audit Fees

For the Company’s fiscal year ended September 30, 2013 and 2012, we have incurred $25,000 and $6,000, respectively, for professional services rendered for the audit and reviews of our financial statements.

All Other Fees (including, Audit Related Fees and Tax Fees)

None.

Effective May 6, 2003, the Securities and Exchange Commission adopted rules that require that before our auditor is engaged by us to render any auditing or permitted non-audit related service, the engagement be:
 
approved by our audit committee; or
   
entered into pursuant to pre-approval policies and procedures established by the audit committee, provided the policies and procedures are detailed as to the particular  service,  the  audit committee is informed of each service, and such policies and procedures do not include delegation of the audit committee’s responsibilities to management.

We do not have an audit committee.  Our entire board of directors pre-approves all services provided by our independent auditors.

The pre-approval process has just been implemented in response to the new rules. Therefore, our board of directors does not have records addressing the percentage of pre-approved audit fees.  However, all of the above services and fees were reviewed and approved by the entire board of directors either before or after the respective services were rendered.
 
PART IV
 
Item 15.  Exhibits, Financial Statement Schedules.
 
(a) Documents filed as part of this Annual Report

1. Financial Statements

2. Financial Statement Schedules

3. Exhibits
 
10.1
   
Employment Agreement for Matthew Nordgren
10.2
   
Purchase and Sale Agreement between the Company for the Duval property (1)
10.3
   
Assignment of Special Warranty Deed to the Duval Property (1)
10.4
   
Secured $750,000 promissory note of the Company (1)
10.5
   
Mortgage and Security Agreement on the Duval property (1)
10.6    
Joint Venture Agreement between Inspired Builders, Inc. and Development Property Holdings, Inc. dated December 10, 2013.
31.1
   
Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
   
Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
       
101.INS
 
 
XBRL Instance Document
101.SCH
 
 
XBRL Taxonomy Schema
101.CAL
 
 
XBRL Taxonomy Calculation Linkbase
101.DEF
 
 
XBRL Taxonomy Definition Linkbase
101.LAB
 
 
XBRL Taxonomy Label Linkbase
101.PRE
 
 
XBRL Taxonomy Presentation Linkbase

 
(1)
Referred to and incorporated by reference to the Current Report on Form 8-K filed on June 24, 2013.

In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.
 
 
13

 
 
SIGNATURES
 
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
INSPIRED BUILDERS, INC.
 
       
Date : March 5, 2014
By:
/s/ Matthew Nordgren
 
   
Matthew Nordgren
Chief Executive Officer and Chief Financial Officer
 
 
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
 
Signature
 
Capacity
 
Date
         
/s/ Matthew Nordgren
 
Chief Executive Officer and Chief Financial Officer
 
March 5, 2014
Matthew Nordgren
  (Principal Executive Officer and Principal Financial Officer) and Sole Director     
 
 
14

EX-10.1 2 f10k2013ex10i_inspired.htm EMPLOYMENT AGREEMENT Unassociated Document
Exhibit 10.1
 
INSPIRED BUILDERS, INC.

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT made as of this 1st day of September, by and between Inspired Builders, Inc., a Nevada corporation, having an office at 233 Wilshire Boulevard, Suite 830, Santa Monica, CA, 90401  (hereinafter referred to as "Employer") and Matthew Nordgren, an individual residing at 2651 N. Herwood #440, Dallas, Texas 75201 (hereinafter referred to as "Employee").

W I T N E S E T H:

WHEREAS, Employer desires to employ Employee as the Chief Executive Officer (“CEO”); and

WHEREAS, Employee is willing to be employed as the in the manner provided for herein, and to perform the duties of the CEO upon the terms and conditions herein set forth;

NOW, THEREFORE, in consideration of the promises and mutual covenants herein set forth it is agreed as follows:

1.           Employment of the CEO. Employer hereby employs Employee as CEO

2.           Term.

a.           Subject to Section 9 below and further to Section 2(b) below, the term of this Agreement shall commence upon the execution hereof (the “Commencement Date”) and expire 3 years from such date (“Initial Term”).  Each 12-month period after the end of the initial term forward during the term hereof shall be referred to as an “Annual Period.”

b.           Subject to Section 10 below, unless the Board of Directors of the Company (the "Board") of Employer shall determine to the contrary and shall so notify Employee in writing on or before the end of the Initial Term or any Annual Period or unless the Employee notifies Employer in writing thirty (30) days before the end of the Initial Term or any Annual Period of his desire not to renew this Agreement, then at the end of either the Initial Term or the Annual Period, as the case maybe, the term of this Agreement shall be automatically extended for one (1) additional Annual Period to be added at the end of the then current term of this Agreement.

3.           Duties. The Employee shall perform those functions generally performed by persons of such title and position, shall attend all meetings of the stockholders and the Board when possible and shall perform any and all related duties and shall have any and all powers as may be prescribed by resolution of the Board, and shall be available to confer and consult with and advise the officers and directors of Employer at such times that may be required by Employer.  Employee shall report directly and solely to the Board.
 
 
-1-

 

4.           Compensation.

(i)  Employee shall be paid $10,000.00 per month.  Employee shall be paid periodically in accordance with the policies of the Employer during the term of this Agreement, but not less than monthly.

(ii) Employee is eligible for an annual bonus in stock or cash payable, if any, which will be determined and paid in accordance with policies set from time to time by the Board, in its sole discretion.
 
5.           Expenses. Employee shall submit to Employer reasonably detailed receipts or credit card statements with respect thereto which substantiate the Employee’s expenses.  Employee shall use his own credit cards and be reimbursed each month for his business expenses.

6.           Vacation. Employee shall be entitled to receive one week vacation time during each year of employment upon dates agreed upon by Employer.  Upon separation of employment, for any reason, vacation time accrued and not used shall be paid at the salary rate of Employee in effect at the time of employment separation.

        7.           Secrecy. At no time shall Employee disclose to anyone any confidential or secret information (not already constituting information available to the public) concerning (a) internal affairs or proprietary business operations of Employer or its affiliates or (b) any trade secrets, new product developments, patents, programs or programming, especially unique processes or methods (c) research done on behalf of company (d) contracts and meetings on behalf of company (e) financial information of the company.

                8.           Covenant Not to Compete. Employee will not, at any time, anywhere in the areas where Employer does business during the term of this Agreement, and for one (1) year thereafter, either directly or indirectly, engage in, with or for any enterprise, institution, whether or not for profit, business, or company, competitive with the business of Employer as such business may be conducted on the date thereof, as a creditor, guarantor, or financial backer, stockholder, director, officer, consultant, advisor, employee, member, inventor, producer, director, or otherwise of or through any corporation, partnership, association, sole proprietorship or other entity; provided, that an investment by Employee, his spouse or his children is permitted if such investment is not more than five percent (5%) of the total debt or equity capital of any such competitive enterprise or business and further provided that said competitive enterprise or business is a publicly held entity whose stock is listed and traded on an international or national stock exchange.
 
 
-2-

 

9.           Termination.

a.           Termination by Employer
 
(i)           Employer may terminate this Agreement immediately for Cause.  For purposes hereof, "Cause" shall mean (A) engaging by the Employee in conduct that constitutes activity in competition with Employer; (B) the conviction of Employee for the commission of a felony against the Employer; and/or (C) the habitual abuse of alcohol or controlled substances.   In no event shall alleged incompetence of Employee in the performance of Employee's duties be deemed grounds for termination for Cause.

(ii)          This Agreement shall automatically terminate upon the death of Employee, except that Employee's estate shall be entitled to receive any amount accrued under Section 4 for the period prior to Employee's death and any other amount to which Employee was entitled of the time at his death.

b.           Termination by Employee or Employer without Cause

(i)           Employee or Employer shall have the right to terminate Employee’s employment under this Agreement upon thirty (30) days' notice to either party.

 
10.
Consequences of Breach by Employer;
Employment Termination

a.           If this Agreement is terminated pursuant to Section 9(b)(i) hereof, or if Employer shall terminate Employee's employment under this Agreement in any way that is a breach of this Agreement by Employer, the following shall apply:

(i)           Employee shall be entitled to payment of any previously declared bonus and compensation as provided in Section 4 above.

b.           In the event that Employee’s employment is terminated for any of the following (i) for cause as set forth in Section 9(a)(i) of this Agreement, (ii) the expiration of the term of this Agreement, or (iii) resignation by the Employee in accordance with Section 9(b)(i), then the provisions of Section 8 shall apply to Employee.
 
 
-3-

 

11.         Remedies. Employer recognizes that because of Employee's special talents, stature and opportunities in the industry, in the event of termination by Employer hereunder (except under Section 9(a)(i) or (ii), or in the event of termination by Employee under Section 9(b)(i) before the end of the agreed term), the Employer acknowledges and agrees that the provisions of this Agreement regarding further payments of base salary, bonuses and the exercisability of rights constitute fair and reasonable provisions for the consequences of such termination, do not constitute a penalty, and such payments and benefits shall not be limited or reduced by amounts' Employee might earn or be able to earn from any other employment or ventures during the remainder of the agreed term of this Agreement.

12.         Excise Tax. In the event that any payment or benefit received or to be received by Employee in connection with a termination of his employment with Employer would constitute a "parachute payment" within the meaning of Internal Revenue Code Section 280G or any similar or successor provision to 280G and/or would be subject to any excise tax imposed by Internal Revenue Code Section 4999 or any similar or successor provision then Employer shall assume all liability for the payment of any such tax and Employer shall immediately reimburse Employee on a "grossed-up" basis for any income taxes attributable to Employee by reason of such Employer payment and reimbursements.
 
13.         Arbitration. Any controversies between Employer and Employee involving the construction or application of any of the terms, provisions or conditions of this Agreement, save and except for any breaches arising out of Sections 7 and 8 hereof, shall on the written request of either party served on the other be submitted to arbitration.  Such arbitration shall comply with and be governed by the rules of the American Arbitration Association.  An arbitration demand must be made within one (1) year of the date on which the party demanding arbitration first had notice of the existence of the claim to be arbitrated, or the right to arbitration along with such claim shall be considered to have been waived.  An arbitrator shall be selected according to the procedures of the American Arbitration Association.  The cost of arbitration shall be borne by the losing party unless the arbitrator shall determine otherwise.  The arbitrator shall have no authority to add to, subtract from or otherwise modify the provisions of this Agreement, or to award punitive damages to either party.

14.         Attorneys' Fees and Costs. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled.
 
 
-4-

 
 
15.         Entire Agreement; Survival. This Agreement contains the entire agreement between the parties with respect to the transactions contemplated herein and supersedes, effective as of the date hereof any prior agreement or understanding between Employer and Employee with respect to Employee's employment by Employer. The unenforceability of any provision of this Agreement shall not effect the enforceability of any other provision.  This Agreement may not be amended except by an agreement in writing signed by the Employee and the Employer, or any waiver, change, discharge or modification as sought.  Waiver of or failure to exercise any rights provided by this Agreement and in any respect shall not be deemed a waiver of any further or future rights.  The provisions of Sections 4, 7, 8, 9(a)(ii), 10, 11, 12, 13, 14, 16, 17, 18 and 19 shall survive the termination of this Agreement.

16.         AssignmentThis Agreement shall not be assigned to other parties.

17.         Governing Law. This Agreement and all the amendments hereof, and waivers and consents with respect thereto shall be governed by the internal laws of the State of California, without regard to the conflicts of laws principles thereof.

18.         Notices. All notices, responses, demands or other communications under this Agreement shall be in writing and shall be deemed to have been given when

a.           delivered by hand;
b.           sent be telex or telefax, (with receipt confirmed), provided that a copy is mailed by registered or certified mail, return receipt requested; or
c.           received by the addressee as sent by express delivery service (receipt requested) in each case to the appropriate addresses, telex numbers and telefax numbers as the party may designate to itself by notice to the other parties:

 
(i)
if to the Employer:
9595 Wilshire Blvd. #440
Beverly Hills, CA 90212
Telephone:  (310) 795-2919
 
 
-5-

 

 
Copy to:
Szaferman, Lakind, Blumstein & Blader, P.C.
101 Grovers Mill Road, Suite 200
Lawrenceville, New Jersey 08648
Attention: Gregg Jaclin, Esq.
Telefax: (732) 577-1188
Telephone: (732) 409-1212

 
(ii)
if to the Employee:

Matthew Nordgren
2651 N. Harwood, #440
Dallas, Texas 75210
                            Telephone: (214) 605-2779
 
19.           Severability of Agreement. Should any part of this Agreement for any reason be declared invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion, which remaining provisions shall remain in full force and effect as if this Agreement had been executed with the invalid portion thereof eliminated, and it is hereby declared the intention of the parties that they would have executed the remaining portions of this Agreement without including any such part, parts or portions which may, for any reason, be hereafter declared invalid.
 
 
-6-

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first
above written.

INSPIRED BUILDERS, INC.

/s/ Matthew Nordgren                                        
By:   Matthew Nordgren
Title: Chief Executive Officer
 
EMPLOYEE
 
/s/ Matthew Nordgren                                        
Matthew Nordgren
By: Matthew Nordgren, individually
 
-7-

EX-10.6 3 f10k2013ex10vi_inspired.htm JOINT VENTURE AGREEMENT f10k2013ex10vi_inspired.htm
Exhibit 10.6
 
JOINT VENTURE AGREEMENT
 
THIS AGREEMENT, made and entered into this 10 day of December 2013, by and between INSPIRED BUILDERS, INC., a Nevada corporation (hereinafter referred to as "ISRB"), and DEVELOPMENT PROPERTY HOLDINGS, INC., a California corporation (hereinafter referred to as "DPH"); and hereinafter sometimes referred to collectively as the "Venturers" or singularly as a "Venturer."
 
WITNESSETH:
 
   In consideration of the mutual covenants set forth herein, the parties hereto agree as follows:
 
Section 1.   Formation of Venture. Venturers hereby enter into and establish a Florida joint venture (the "Venture"), to be known as the SAVANNAH OAKS Joint Venture (hereinafter referred to as "Savannah Oaks") for the purposes set forth in this Agreement. The term of the Venture shall be from the date hereof through and including a date sixty (60) months from the date of this Agreement, unless mutually extended or sooner terminated as provided in this Agreement, or until all or substantially all of the lands and other property of the Venture shall have been sold or otherwise transferred and conveyed, whichever occurs first. The parties hereto shall file a Fictitious Name Affidavit to reflect the name of this Venture and the parties therein.
 
Section 2.   Purposes and Scope of Venture.
 
(a)  Venturers will acquire control in the name of SAVANNAH OAKS of certain commercial real property consisting of 9.705 acres located in the State of Florida (the "Property").
 
(b)  The purpose for which this Venture is established is to acquire, construct improvements upon and develop the Property in accordance with the development plan to be approved by the Venturers, and to sell at a profit the subject properties as improved or unimproved as determined by the Venturers.
 
(c)  Nothing in this Agreement shall restrict in any manner whatsoever the freedom of any Venturer and its officers, employees, partners or affiliates to engage in or conduct any other business or activity whatsoever (including the acquisition, development and exploitation of real property other than the Property) without any accountability to the Venture or any party hereto, even if such business or activity competes with the business of the Venture.
 
Section 3.   Scope of Venturers' Authority. Except as otherwise provided in this Agreement or in a separate writing signed by all of the Venturers, no Venturer shall have any authority to act for or to assume any obligation, or responsibility on behalf of, any other Venturer or for the Venture. The Venturers shall not be considered partners of each other. Any liability resulting from the death or injury of any person or property occurring on the Property after the date of this Agreement shall be a liability of the Venturers, to be shared in proportion to their individual interest in the Venture as reflected by individual "Term Sheets" referenced in Section 26 herein below. ISRB and DPH shall equally share the determination of major decisions set forth below.

 
 

 
 
Section 4.   Development Fee. ISRB and DPH shall be paid the total sum of $450,000.00 as a development fee from the construction budget, which shall be split evenly after payment of ordinary expenses. The construction budget shall be approved by ISRB and its representative, George Baker.
 
Section 5.   Powers of the Venture. This Venture shall have the authority and power to conduct all business necessary to the successful accomplishment of its purposes. Specifically, the Venture may:
 
(a)      Establish bank accounts with banks and other institutions and make investments of the funds and monies of the Venture;
 
(b)     Acquire real and personal property and interests and rights therein incidental to operation of the business of the Venture;
 
(c)      Borrow money and, as security therefor, mortgage or otherwise impose liens on all or any part of the Property, or other real or personal property of the Venture, prepay any mortgage or note secured thereby, in whole or in part, refinance, increase, or modify any indebtedness of the Venture and any mortgages or security affecting the Property;
 
(d)     Sell, assign, convey, dedicate, grant easements, with respect to, impose restrictions upon and otherwise deal with all or any part of the Property or other assets of the Venture;
 
(e)     Lend its funds or make guaranties of obligations of others upon such terms as the Venturers shall determine;
 
(f)      Employ such persons, firms or companies as the Venturers shall determine for the operation or management of the business of the Venture on such terms and for such compensation as the Venturers shall determine;
 
(g)     Engage architects, engineers, building contractors, land planners, legal counsel, accountants, consultants, financial advisors, underwriters and any other professional personnel; and
 
(h)     Engage in such other activities, incur such other expenses and enter into all such negotiations and contracts as may be necessary or appropriate for enhancing the profitability of the Venture, and execute, acknowledge and deliver any and all instrument necessary or convenient to the accomplishment of any of the foregoing.
 
 
2

 
 
Section 6.   Management of Venture.
 
(a)  Except as otherwise herein provided, the development of the Property and the business and affairs of the Venture shall be managed by ISRB, which powers and duties include, but shall not necessarily be limited to, the following:
 
(i)         The management of the day to day affairs and business of the Venture, including the collection of income and payment of expenses, and make all decisions regarding the operation and ownership of the business and property of the Venture which are not herein defined as "Major Decisions";
 
(ii)        To maintain or cause to be maintained the books and records of the Venture; prepare or cause to be prepared periodic operating and financial reports of the Venture; prepare and file or cause to be prepared and filed all necessary tax and information returns;
 
(iii)       To invest, for interest, cash owned by the Venture in financial institutions or in other liquid investments in accordance with reasonably prudent cash management practices; an
 
(iv)       ISRB shall be obligated to solicit competitive bids for goods or services purchased by the Venture and to engage in contracts only with persons who submit the lowest competitive bids. ISRB shall furnish to the other Venturer an accounting quarterly of all receipts and expenditures of the Joint Venture no later than the 20th day of the following month of each quarter. Professional fees incurred by the Joint Venture shall be expenses of the Joint Venture, including attorney's fees and accountant's fees
 
(v)        Notwithstanding anything to the contrary, DPH shall have full control over the marketing, sales and leasing of the Property. A standard leasing and sales commission shall be charged to the Venture, which commission shall be paid in equal amounts to DPH and ISRB.
 
(b)  Major Management Decisions. The power to make Major Management Decisions for the Venture is vested 50% to ISRB and 50% to DPH.
 
A Venturer which is in default under this Agreement shall have no right to participate in Major Management Decisions or other Venture action. Provided, however, that the limitation set forth in the immediately preceding sentence shall not apply to a Venturer unless it has received written notice of default and has failed to cure same as provided by this Agreement prior to the time that the vote on a Major Management Decision or other action is taken.
 
Decisions with respect to the following shall constitute Major Management Decisions within the meaning of this subsection:
 
(i)           Matters pertaining to the sale of the Property, the sales price of the properties, and the improvements, if any, thereon, or the optioning, leasing or purchase of lands in addition to the Property; and
 
(ii)          The adoption of the Initial Development Budget of the Venture and the adoption and modification of budgets subsequent to the Initial Development Budget. Prior to commencement of construction of improvements and the closing of the construction loan or loans for improvements, the Joint Venturers shall agree in writing on a final proposed budget for construction costs and for the marketing of completed lots.
 
 
3

 
 
It is contemplated that the Venture will borrow the funds necessary for the development of the project(s) (sometimes referred to as the "Development Loan") to be secured by a first mortgage lien on the Property previously acquired in the name of Savannah Oaks.
 
Section 7.   Reimbursement of Expenses. No Venturer shall be entitled to reimbursement from the Venture or for expenditures made on behalf of the Venture, except for such expenditures as are approved for reimbursement by the Venturers in accordance with a duly adopted budget.
 
Section 8.   Obligations and Liabilities of Venturers. As additional consideration for this Agreement ISRB and DPH agree to use their best efforts and expertise to develop and market (either directly or through its agent) the Property during the term of the Venture. ISRB and DPH shall make or cause to be made all of the improvements within a reasonable time. The Venture shall borrow funds as needed pursuant to an acquisition and development loan agreement.
 
ISRB and DPH shall be obligated to use their best efforts to cause such a loan to be made to the Venture in a total amount of not less than the total costs of the improvements to be approved by the Venture.
 
Section 9.   Additional Contributions. It is recognized that additional contributions to capital of the Venture ("Additional Contributions") may be required by ISRB to discharge the following obligations as the same from time to time arise:
 
 
(i) 
All ad valorem real property taxes on property owned by the Venture;
 
(ii) 
Insurance premiums incurred pursuant to this Agreement; and
 
 
(iii)
Sums required to fund expenditures or obligations included in a duly adopted budget or otherwise approved as a Major Management Decision of the Venturers.
 
Except as herein above provided, no further capital contributions shall be required. Any Additional Contributions made by ISRB shall be repaid as set forth in Section 11(c).
 
Section 10.   Capital Accounts. A capital account shall be established for each Venturer on the books of the Venture. Each Venturer shall receive a credit to its capital account for any Additional Contributions made under this Section 10 and a credit for its share of profits of the Venture in the manner set forth in Section 13 below. There shall be charged against each Venturer's capital account its share of any losses of the Venture in the manner set forth in Section 14 below.
 
 
4

 
 
Section 11.        Distribution of Proceeds and Profits. Net cash proceeds from each sale of the Property shall be distributed in the following manner: (net cash proceeds is defined as the sale price less usual and customary Seller's closing costs and pro-rations, including sales commissions not to exceed five percent (5%) of the sales price, which may be shared with other brokers or agents.)
 
(a)  First, to pay closing costs, lien releases or mortgage releases and any accrued and unpaid interest on the Development or Construction Loan, if any, and then
 
(b)  To the Joint Venture to the extent of ten percent (10%) of proceeds after payment under subparagraph (a) for creation of a reserve account (but which account shall not exceed in the aggregate One Hundred Thousand and no/100 Dollars ($100,000.00), which account shall be used to pay for any unanticipated development expenses and/or income taxes, and then
 
(c)  Any unpaid principal balance or any other obligation encumbering the Property, including paying the debt of $250,000.00, plus interest, on property commonly referred to as the "corner lot," and any Additional Contributions made by ISRB, and then
 
(d)  Senior equity in the amount of $1,800,000.00, and then
 
(e)  Former equity in the amount of $1,500,000.00, and then
 
(f)  (1) To senior equity holder ten percent (10%),
          (2) To PRLLC thirty percent (30%),
          (3) To ISRB sixty percent (60%).
 
Section 12.         Limitation upon Sale and Encumbrance. The Venturers hereby agree that their rights in and powers to sell, lease, exchange, encumber or otherwise dispose of any interests held by them in the Venture, the Property or any other assets of the Venture (which interest in the Property, the Venture, and other assets of the Venture shall be collectively referred to as the "Venture Assets") shall be limited and controlled as follows;
 
(a)  No Venturer shall sell, transfer, exchange or otherwise dispose of its interest in any of the Venture Assets without first having offered same to the Venture and the other Venturer under the provisions of Section 13 herein below. Any such attempted sale, transfer, exchange or other disposition in contravention of the provisions of this Section shall be void and of no effect.
 
(b)  If so requested by unanimous vote of the Venturers, a memorandum shall be recorded in the public records of                           County, Florida, giving notice of the provisions of this Section and other appropriate provisions of this Agreement.
 
(c)  Notwithstanding anything to the contrary, Venturers shall have the right to pledge or encumber their future development fees upon the consent of the other Venturer, which consent shall not be unreasonably withheld.
 
 
5

 
 
Section 13.         Right of First Refusal. No Venturer may sell or transfer any part or all of its interest in the Venture Assets to any person other than to the other Venturer without the prior written consent of the other Venturer, except as otherwise permitted under this Agreement.
 
(a)  If a Venturer (the "Seller") receives a bona fide offer (the "Third-Party Offer") from a Third Party other than the other Venturers to acquire all or any part of the interest of the Seller in the Venture Assets, which the Seller desires to accept, the Seller shall, prior to accepting same, give written notice (the "Section 13 Notice") of the Third-Party Offer to the other Venturers setting forth the name and address of the party making the Third-Party Offer and the price and terms of the Third-Party Offer. The Section 13 Notice shall be accompanied by a complete and accurate copy of any document or contract which embodies the terms of the Third-Party Offer. The Venturers shall have the right to acquire all of the interest of the Seller covered by the Third-Party Offer on the same terms and for the same price set forth in the Third-Party Offer, except that the time for closing shall be within ninety (90) days after the offer is accepted. If the Venturers elect to acquire the Seller's interest in the Venture, it shall give written notice within thirty (30) days after receiving the Section 13 Notice of its election to do so.
 
(b)  If the interest of the Seller is not purchased in accordance with paragraph (a) of this Section 13, then the Seller shall then be free to accept the Third-Party Offer and close the sale to the Third Party at a price not lower than the price and on terms no more favorable to the buyer than the terms offered to the other Venturers. In the event Seller does not close the transfer of its interest pursuant to the Third-Party Offer within ninety (90) days after the end of such thirty (30) day notice period, then Seller shall be deemed again bound by the provisions of this Section 13 with respect to any other or subsequent Third-Party Offer.
 
(c)  The sale or transfer pursuant to this Section 13 shall not relieve the Seller or transferor from its liability under any agreements made herein or otherwise made in connection with the Venture Assets, including, but not limited to, liability for Additional Capital Contributions duly approved but not yet due, liabilities contemplated by approved budgets and any other liabilities, actual or contingent, existing at the time of the sale or transfer. The purchaser or transferee of any interest in the Venture Assets shall be bound by the terms and provisions of this Agreement and shall be deemed to have assumed all of the liabilities of the Seller or transferor in proportion to the Seller's or Transferor's interest in the Venture assets so acquired by the purchaser or transferee. As a condition precedent to the effective consummation of such sale, simultaneously upon purchasing said Venture Interest the purchaser or transferee shall execute a written assumption of such liability in a form acceptable to the other Venturers.
 
(d)  All parties shall be entitled to have specific performance of the obligation to purchase or sell arising pursuant to the procedures described in this Section 13, and shall, in addition, have any and all other remedies in law or in equity available to it in order to enforce provisions of this Section 13.
 
 
6

 
 
Section 14.           Income Taxation and Accounting. The following provisions shall govern the Venture's income tax and accounting practices:
 
(a)          All federal and state income tax returns shall be prepared on an accrual basis. All expenses and costs which are deductible for federal tax purposes shall be deducted and treated as expenses, including, without limitation, taxes and carrying charges.
 
(b)          Depreciation on eligible property shall be taken by the Venture on the Accelerated Cost Recovery System, unless otherwise approved by the Venturers.
 
(c)          The Venture's books and accounts shall be kept and maintained at all times by ISRB. The books shall be maintained on an accrual basis in accordance with the generally accepted accounting principals.
 
(d)          Each Venturer shall have the right at all reasonable times and upon reasonable notice to audit or examine and make copies of the books and accounts of the Venture.
 
Section 15.          Insurance. The Venture shall purchase at the expense of the Venture general liability coverage for the protection of the Venture and all of the Venturers in relation to the business of the Venture and such fire and extended coverage and other insurance coverages as good business practices dictate.
 
Section 16.           Bankruptcy, Failure to Abide by Agreements, Etc. In the event that any Venturer shall make an assignment for the benefit of creditors, file a petition in bankruptcy, become adjudicated bankrupt or insolvent, have a permanent receiver appointed in any judicial proceeding for any portion of its property, or shall fail to perform and abide by any of the terms of this Agreement imposed upon it (after thirty (30) days' advance written notice of such failure to perform or abide is given to such Venturer in default by the other Venture), then the Venturer (the "Non-Withdrawing Venturer") shall have the right, but not the obligation, by written notice to said Venturer, to require said Venturer to withdraw from the Venture. In that event, the Non-Withdrawing Venturer shall either forthwith purchase the interest of said Venturer (the "Offering Venturer") at the purchase price and on the terms set forth in Section 15, or shall terminate and liquidate the Venture.
 
Section 17.           Events of Termination. The Venture shall terminate upon the first to occur of the following events, unless otherwise agreed by the Venturers in writing:
 
(a)          Upon the sale of all of the subject Property and of all other property of the Venture; or
 
(b)          Upon the expiration of the term of the Venture.
 
 
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Section 18.           Notices. All notices required or remitted by this Agreement shall be in writing and shall be sent by Certified, Registered Mail, or hand delivered to the addresses set forth below. Notices shall be deemed delivered and given when mailed if mailed or when delivered if hand delivered.
 
Notices to ISRB shall be sent to:
 
Matthew J. Nordgren
9595 Wilshire Boulevard, Suite 801
Beverly Hills, CA 90212
mnordgm@inspiredbuilders.com
 
With copy to:
 
Daniel D. White, Esq.
Law Office of Daniel D. White
One Corporate Plaza Drive, Suite 110
Newport Beach, CA 92660-7924
dan@ddwlaw.com
 
Notices to DPH shall be sent to:
 
Paul Rohan
Development Property Holdings, Inc.
95 North Roscoe Boulevard
Ponte Vedra, FL 32082
prohan@planet511c.com
 
Section 19.          Benefits and. Obligations. All agreements among the Venturers relative to the Venture shall inure to the benefit of and be binding upon the parties thereto and their respective legal representatives, heirs, successors and assigns.
 
Section 20.          Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Florida.
 
Section 21.          Non-Waiver. The failure on the part of any party to object to any breach or to enforce any covenant or remedy herein contained shall not be construed as a waiver of any subsequent breach or of any such covenant or remedy.
 
Section 22.         Severability. If any provision of this Agreement shall to any extent be finally found by a court of competent jurisdiction to be invalid or unenforceable, neither the remainder of the Agreement, nor the application of the provision to other persons, entities, or circumstances, shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law or equity.
 
Section 23.          Attorney's Fees. In the event that suit be brought to enforce the provisions of this Agreement or any remedy or lien granted hereunder, the prevailing party shall be entitled to reasonable attorneys' fees, including attorneys' fees upon appeal.
 
Section 24.          Assignment. Venturers shall be entitled to assign their respective interest upon notice to the other Venturer.
 
 
8

 
 
Section 25.          Entire Agreement. Subject to Section 26 herein below, the terms and conditions of this Agreement constitute the sole and entire agreement between the Venturers with respect to the subject matter hereof. This Agreement may be modified or altered only by the written agreement of all of the Venturers.
 
Section 26.          Term Sheets: The Venturers shall prepare an individual Term Sheet on each property defining and delineating the duties and obligations of each Venturer as well as the individual(s) proportionate share for the profit made of each particular property.
 
Section 27.          Real Estate Holdings: All properties shall be acquired in the name of Savannah Oaks, subject to the terms and conditions of this Agreement.
 
IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the day first above written.
 
Signed, sealed and delivered in
in the presence of:
 
   
INSPIRED BUILDERS, INC.,
a Nevada corporation
 
 
Matt Nordgren
  By:
/s/ Matthew J. Nordgren
 
 
   
MATTHEW J. NORDGREN
 
12-15-13
  Its:
Chief Executive Officer
 
         
         
   
DEVELOPMENT PROPERTY HOLDINGS, INC.,
a California corporation
 
         
/s/ Rebecca Mendez   By: /s/ Paul B. Rohan   
      PAUL B. ROHAN  
Rebecca Mendez    Its: Chief Executive Officer  
 
9

EX-31.1 4 f10k2013ex31i_inspired.htm CERTIFICATION Unassociated Document
Exhibit 31.1
 
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
AND PRINCIPAL FINANCIAL OFFICER,
PURSUANT TO 18 U.SC. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
 
I, Matt Nordgren, certify that:
 
1. I have reviewed this Annual Report on Form 10-K of Inspired Builders, Inc.;
 
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4. The registrant’s other certifying officer 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 controls 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;
     
 
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;
 
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
 
 
a)
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  
b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
 
Dated: March 5, 2014
By: 
/s/ Matt Nordgren               
   
Matt Nordgren
Chief Executive Officer and Chief Financial Officer
(Principal Executive Officer and Principal Financial Officer)
EX-32.1 5 f10k2013ex32i_inspired.htm CERTIFICATION Unassociated Document
Exhibit 32.1
 
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
AND PRINCIPAL FINANCIAL OFFICER,
PURSUANT TO 18 U.SC. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Inspired Builders, Inc. (the “Company”) on Form 10-K for the period ended September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Matt Nordgren, chief executive officer and chief financial officer of the Company, certifies, pursuant to 18 U.S.C. section 1350 of the Sarbanes-Oxley Act of 2002, that:

(1)  
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
   
(2)  
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Date: March 5, 2014
By: 
/s/ Matt Nordgren
   
Matt Nordgren
Chief Executive Officer and Chief Financial Officer
(Principal Executive Officer and Principal Financial Officer)
 
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
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Subsequent Events (Details Textual) (USD $)
0 Months Ended
Feb. 07, 2014
Subsequent Event [Member]
Jan. 13, 2015
Subsequent Event [Member]
Nov. 13, 2014
Subsequent Event [Member]
Jan. 13, 2014
Subsequent Event [Member]
Jan. 07, 2014
Subsequent Event [Member]
Dec. 31, 2013
Subsequent Event [Member]
Dec. 20, 2013
Subsequent Event [Member]
Nov. 14, 2013
Subsequent Event [Member]
Nov. 13, 2013
Subsequent Event [Member]
Jan. 24, 2014
Chief Executive Officer [Member]
Subsequent Events (Textual)                    
Advances to related party working capital         $ 5,000   $ 2,500 $ 19,960    
Notes payable - related party       3,352         25,000  
Interest rate   5.00% 10.00%              
Joint Venture Discription          
The Joint Venture will be vested 50% by each partner and all decisions, costs, expenses and profits will be divided evenly between the two partners.
       
Advances to related party salary expenses                   $ 10,000
Common stock issued for purchase of property 100,000                  

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Real Estate (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Jun. 24, 2013
Sep. 30, 2012
Real Estate (Textual)      
Purchase price of property $ 307,504 $ 1,350,000   
Amount payable for third party $ 750,000     
Percentage of delivery on property 3.00%    
Due date of mortgage Jun. 15, 2014    
Common stock authorized for purchase of property 100,000    
Common stock, par value $ 0.001   $ 0.001
XML 16 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Significant Accounting Policies
12 Months Ended
Sep. 30, 2013
Summary of Significant Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2. Summary of Significant Accounting Policies
 
Use of Estimates
 
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the following; estimates of the probability and potential magnitude of contingent liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, valuation of shares issued in connection with the purchase of real estate, the valuation of the real estate and the evaluation of any impairment on the real estate.
 
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.
 
Cash
 
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.  There were no cash equivalents at September 30, 2013 and 2012.
The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits.
 
Fair Value of Financial Instruments
 
For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amounts of cash, loan payable, accounts payable and accrued expenses reported in the balance sheets are estimated by management to approximate fair value at September 30, 2013 and 2012.
 
Revenue Recognition
 
The Company records revenue for services rendered when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) the product/service is delivered, (3) the sales price to the customer is fixed or determinable, and (4) collectability of the related customer receivable is reasonably assured. 
 
Income Taxes
 
The Company accounts for income taxes in accordance with generally accepted accounting principles which requires an asset and liability approach to financial accounting and reporting for income taxes.  Deferred income tax assets and liabilities are computed annually for differences between financial statement and income tax bases of assets and liabilities that will result in taxable income or deductible expenses in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets and liabilities to the amount expected to be realized.  Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities.
 
The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (FASB) ASC 740,   Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the positions will be sustained upon examination by the tax authorities.  It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  As of September 30, 2013 and September 30, 2012, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.  All tax returns from fiscal years 2010 to 2013 are subject to IRS audit.

Earnings per share
 
In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,”  basic earnings (loss) per share is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period.  Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period.
 
The Company did not have any potential common stock equivalents at September 30, 2013 and 2012.
 
Recent accounting pronouncements
 
Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC, did not, or are not believed by management, to have a material impact on the Company’s present or future financial statements.
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M.3(U,%\Y.&)C93AF,C!A8C<-"D-O;G1E;G0M3&]C871I;VXZ(&9I;&4Z+R\O M0SHO,F)D-#!E9#%?96,Q95\T9C'0O:'1M;#L@ M8VAA&UL;G,Z;STS1")U'1087)T7S)B9#0P960Q7V5C,65?-&8W.%\Y,C4P7SDX8F-E.&8R,&%B %-RTM#0H` ` end XML 18 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stockholders' Equity (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Stockholders' Equity (Textual)  
Common stock authorized for purchase of property 100,000
Common stock approved for issuance for purchase of real estate $ (442,496)
XML 19 R28.htm IDEA: XBRL DOCUMENT v2.4.0.8
Notes Payable - Related Parties (Details) (USD $)
0 Months Ended 12 Months Ended
Jan. 13, 2012
Sep. 30, 2013
Jul. 31, 2013
Feb. 07, 2013
Sep. 30, 2012
Sep. 17, 2012
May 22, 2012
Note Payable - Related Party (Textual)              
Duration of unsecured promissory note 12 months            
Increase interest rate incase of failure in repayment of note payable 12.00%            
Maturity period of loan   Jan. 13, 2014          
Additional notes payable borrowed from related party     $ 30,000 $ 28,773   $ 22,033 $ 32,714
Accrued interest   45,768     16,341    
Related Party Outstanding Principal Value   $ 324,529          
XML 20 R30.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Current tax expense:    
Federal $ 0 $ 0
State 0 0
Total 0 0
A reconciliation of provision for income taxes at the statutory rate to provision for income taxes at the Company's effective tax rate is as follows:    
Statutory U.S. federal rate 34.00% 34.00%
Statutory state income tax 5.83% 0.00%
Less valuation allowance (39.83%) (34.00%)
Effective rate 0.00% 0.00%
Deferred income taxes are comprised of the following:    
Tax loss carryforwards 172,232 119,332
Less valuation allowance (172,232) (119,332)
Deferred tax benefit $ 0 $ 0
XML 21 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes (Details Textual) (USD $)
12 Months Ended
Sep. 30, 2013
Income Taxes Textual [Abstract]  
Increase in valuation allowance $ 52,900
XML 22 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
Nature of Operations
12 Months Ended
Sep. 30, 2013
Nature of Operations [Abstract]  
Nature of Operations
1.   Nature of Operations
 
Inspired Builders, Inc. (the “Company”) was incorporated in the State of Nevada in February 2010.  The Company is a construction company that specializes in residential home repair and home improvements.  The Company contracts with homeowners to build custom home improvements, including shelving for closets, bathroom remodeling, upgrading home entertainment centers and replacing flooring.  In May 2013, the Company’s board of directors determined that conversion of the Company’s corporate status to that of a real estate investment trust (a “REIT”) would best support the company’s strategic direction.  Accordingly, the board passed and adopted a resolution for the Company to be treated as a REIT.  As of February 28, 2014, the Company has not completed the necessary filings to change its status with the Internal Revenue Services.
XML 23 R32.htm IDEA: XBRL DOCUMENT v2.4.0.8
Related Party Transaction (Details) (USD $)
0 Months Ended 12 Months Ended
Jan. 13, 2012
Sep. 30, 2013
Jul. 31, 2013
Jun. 24, 2013
Feb. 07, 2013
Sep. 30, 2012
Sep. 17, 2012
May 22, 2012
Related Party Transaction (Textual)                
Additional notes payable borrowed from related party     $ 30,000   $ 28,773   $ 22,033 $ 32,714
Duration of unsecured promissory note 12 months              
Increase interest rate incase of failure in repayment of note payable 12.00%              
Maturity period of loan   Jan. 13, 2014            
Accrued interest   45,768       16,341    
Total outstanding principal to related party           324,529    
Accrued interest current   6,125            
Purchase price of property   307,504   1,350,000         
Amount payable for third party   750,000             
Percentage of delivery on property   3.00%            
Due date of mortgage   Jun. 15, 2014            
Common stock issued for purchase of property   100,000            
Accrued salary   10,000            
Chief Executive Officer [Member]
               
Related Party Transaction (Textual)                
Accrued salary   10,000            
Reimbursement Expenses   $ 10,000            
Employment contract  
Three year.
           
XML 24 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
BALANCE SHEETS (USD $)
Sep. 30, 2013
Sep. 30, 2012
Current Assets:    
Cash $ 857   
Prepaid expenses    4,000
Total current assets 857 4,000
Real estate 307,504   
Total assets 308,361 4,000
Current Liabilities:    
Accounts payable and accrued expenses 74,600 17,429
Accrued salary 10,000  
Due to related parties 3,711 54,746
Mortgage payable - related party 750,000   
Notes payable - related parties 324,520 211,000
Total current liabilities 1,162,831 283,175
Commitments and Contingencies: ( See Note 10)      
Stockholders' deficit:    
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding      
Common stock, $0.001 par value, 50,000,000 shares authorized, 11,125,000 and 11,025,000 shares outstanding, and 11,025,000 shares issued, respectively 11,125 11,025
Additional paid in capital (432,621) 9,975
Accumulated deficit (432,974) (300,175)
Total Stockholders' deficit (854,470) (279,175)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 308,361 $ 4,000
XML 25 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)
12 Months Ended
Sep. 30, 2013
Statement of Cash Flows [Abstract]  
Common stock authorized for purchase of property 100,000
Notes payable for purchase of real estate $ 750,000
Return of capital $ 442,496
XML 26 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2013
Income Taxes  
Summary of provision for income taxes

 
September 30, 2013
   
September 30, 2012
 
             
Current tax expense:
               
  Federal
 
$
0
   
$
0
 
  State
   
0
     
0
 
  Total
 
$
0
   
$
0
 
 
A reconciliation of provision for income taxes at the statutory rate to provision for income taxes at the Company's effective tax rate is as follows:
           
Statutory U.S. federal rate
   
34
%
   
34
%
Statutory state  income tax
   
5.83
%
   
0%
 
Less valuation allowance
   
(39.83
)%
   
(34
)%
Effective rate
   
0
%
   
0
%
                 
Deferred income taxes are comprised of the following:
               
                 
Tax loss carryforwards
 
$
172,232
   
$
119,332
 
Less valuation allowance
   
(172,232
)
   
(119,332
)
Deferred tax benefit
 
$
0
   
$
0
 
XML 27 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Going Concern (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Going Concern (Textual)    
Net loss $ (132,799) $ (228,980)
Net cash used in operations $ (61,628) $ (263,951)
XML 28 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 29 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
STATEMENT OF STOCKHOLDERS' DEFICIT (USD $)
Total
Common Stock [Member]
Preferred Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Beginning Balance at Sep. 30, 2011 $ (50,195) $ 11,025    $ 9,975 $ (71,195)
Beginning Balance (Shares) at Sep. 30, 2011   11,025,000       
Net Loss for the year ended (228,980)          (228,980)
Balance at Sep. 30, 2012 (279,175) 11,025    9,975 (300,175)
Balance (Shares) at Sep. 30, 2012   11,025,000       
Net Loss for the year ended (132,799)          (132,799)
Common stock approved for issuance for purchase of real estate (442,496) 100    (442,596)   
Common stock approved for issuance for purchase of real estate (Shares)   100,000       
Balance at Sep. 30, 2013 $ (854,470) $ 11,125    $ (432,621) $ (432,974)
Balance (Shares) at Sep. 30, 2013   11,125,000       
XML 30 R3.htm IDEA: XBRL DOCUMENT v2.4.0.8
BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2013
Sep. 30, 2012
Balance Sheets [Abstract]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued      
Preferred stock, shares outstanding      
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 11,025,000 11,025,000
Common stock, shares outstanding 11,125,000 11,025,000
XML 31 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Commitments and Contingencies
12 Months Ended
Sep. 30, 2013
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
10. Commitments and Contingencies
 
From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.  However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise that may harm its business. The Company is currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.
XML 32 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document and Entity Information (USD $)
12 Months Ended
Sep. 30, 2013
Feb. 28, 2014
Mar. 01, 2013
Document and Entity Information [Abstract]      
Entity Registrant Name Inspired Builders, Inc.    
Entity Central Index Key 0001509786    
Document Type 10-K    
Document Period End Date Sep. 30, 2013    
Amendment Flag false    
Document Fiscal Year Focus 2013    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --09-30    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Smaller Reporting Company    
Entity Public Float     $ 0
Entity Common Stock, Shares Outstanding   11,125,000  
XML 33 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Concentration of Credit Risk
12 Months Ended
Sep. 30, 2013
Concentration of Credit Risk [Abstract]  
Concentration of Credit Risk
11. Concentration of Credit Risk
 
The Company relies heavily on the support of its president and majority shareholder. A withdrawal of this support, for any reason, will have a material adverse effect on the Company’s financial position and its operations.
XML 34 R4.htm IDEA: XBRL DOCUMENT v2.4.0.8
STATEMENTS OF OPERATIONS (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
OPERATING EXPENSES    
General and administrative $ 97,748 $ 212,539
Total operating expenses 97,748 212,539
LOSS FROM OPERATIONS (97,748) (212,539)
Other expenses    
Interest expense 35,051 16,441
Net Loss before provision for income taxes (132,799) (228,980)
Provision for income taxes      
NET LOSS $ (132,799) $ (228,980)
Net loss per share - basic and diluted $ (0.01) $ (0.02)
Weighted average number of shares outstanding during the period - basic and diluted 11,051,849 11,025,000
XML 35 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Employment Agreement
12 Months Ended
Sep. 30, 2013
Employment Agreement [Abstract]  
Employment Agreement
5. Employment Agreement
 
On September 1, 2013 the Company entered into a three year employment contract with its CEO. The CEO is to be paid $10,000 per month plus reimbursement for expenses and bonuses as determined by the board.  The CEO will be entitled to one week paid vacation and is subject to a one year non-compete agreement at the end of the employment contract.  As of September 30, 2013, the Company has accrued $10,000, for amounts due to the CEO.
XML 36 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Real Estate
12 Months Ended
Sep. 30, 2013
Real Estate [Abstract]  
Real Estate
4. Real Estate
 
On June 24, 2013, the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida.  The purchase price for the Duval property was $1,350,000, payable as $750,000 by the Company’s delivery of its 3% note and mortgage, due June 15, 2014.   The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock.  The $0.001 par value per share was valued by the parties at $6.00 per share, based on the closing price of the stock on the date of the closing.   In accordance with SAB 7310.1, transfers of nonmonetary assets for stock or other consideration of the registrant are recorded at the predecessor cost.  Accordingly, the Company recorded the value of the real estate acquired at the historical basis of $307,504.
XML 37 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Significant Accounting Policies (Details) (USD $)
Sep. 30, 2013
Sep. 30, 2012
Summary of Significant Accounting Policies (Textual)    
Cash equivalents $ 0 $ 0
Uncertain tax positions 0 0
Potential common stock equivalents $ 0 $ 0
XML 38 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
Related Party Transaction
12 Months Ended
Sep. 30, 2013
Related Party Transaction [Abstract]  
Related Party Transaction
12.  Related Party Transaction
 
On January 13, 2012 the Company entered into a 12 month unsecured promissory note in the amount of $211,000.  Interest accrues in arrears on the outstanding principal at the rate of ten percent (10.00%) per annum.  Interest shall be payable on the last day of each quarter, commencing March 30, 2012, and continuing until the maturity date.  Should the maker fail to pay the entire principal and accrued interest by the maturity date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014.  The loan maturity dates were further extended to January 13, 2015 on January 13, 2014.  On May 22, 2012, the Company borrowed an additional $32,714 from the related party, with the same terms. On September 17, 2012, the Company borrowed an additional $22,033 from the related party, with the same terms.  On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company borrowed an additional $30,000 from the related party, with the same terms Total outstanding principal at September 30, 2013 amounted to $324,529. Accrued interest at September 30, 2013, and September 30, 2012, amounted to $45,768 and $16,341, respectively.
 
On June 24, 2013 the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida.  The purchase price for the Duval property was $1,350,000, payable as $750,000 by the Company’s delivery of its 3% note and mortgage, due June 15, 2014.  The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock.  In accordance with SAB 7310.1, transfers of nonmonetary assets for stock or other consideration of the registrant are recorded at the predecessor cost.  Accordingly, the Company recorded the value of the real estate acquired at the historical basis of $307,504.  As of September 30, 2013 the Company recorded accrued interest of $6,125
 
On September 1, 2013 the Company entered into a three year employment contract with its CEO. The CEO is to be paid $10,000 per month plus reimbursement for expenses and bonuses as determined by the board.  The CEO will be entitled to one week paid vacation and is subject to a one year non-compete agreement at the end of the employment contract.  As of September 30, 2013, the Company has accrued $10,000, for amounts due to the CEO.
XML 39 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stockholders' Equity
12 Months Ended
Sep. 30, 2013
Stockholders' Equity [Abstract]  
Stockholders' Equity
8. Stockholders’ Equity
 
On June 24, 2013, the Company approved the issuance of 100,000 shares of common stock to a related party as partial consideration for the purchase of real estate.  The shares were valued at the historical cost of the consideration given.  The difference between the historical cost and the consideration paid was treated as a return of capital of $442,496.
XML 40 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Mortgage Payable
12 Months Ended
Sep. 30, 2013
Mortgage Payable [Abstract]  
Mortgage Payable
6. Mortgage Payable – Related Party
 
On June 24, 2013 the Company entered into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida.  The purchase price for the Duval property was $1,350,000, payable as $750,000 by the Company’s delivery of its 3% note and mortgage, due June 15, 2014.   The $600,000 balance of the purchase price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock.  The  $0.001 par value per share was valued by the parties at $6.00 per share, based on the closing price of the stock on the date of the closing.   As of September 30, 2013 the Company has accrued interest of $6,125 due on the mortgage.
XML 41 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
Notes Payable - Related Parties
12 Months Ended
Sep. 30, 2013
Notes Payable Related Parties [Abstract]  
Notes Payable - Related Parties
7. Notes Payable – Related Parties
 
On January 13, 2012 the Company entered into a 12 month unsecured promissory note in the amount of $211,000.  Interest accrues in arrears on the outstanding principal at the rate of ten percent (10.00%) per annum.  Interest shall be payable on the last day of each quarter, commencing March 30, 2012, and continuing until the maturity date.  Should the maker fail to pay the entire principal and accrued interest by the maturity date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014.   The loan maturity dates were further extended to January 13, 2015 on January 13, 2014.  On May 22, 2012, the Company borrowed an additional $32,714 from the related party, with the same terms. On September 17, 2012, the Company borrowed an additional $22,033 from the related party, with the same terms.  On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company borrowed an additional $30,000 from the related party, with the same terms.  The total outstanding principal at September 30, 2013 amounted to $324,529. Accrued interest at September 30, 2013, and September 30, 2012, amounted to $45,768 and $16,341, respectively.
XML 42 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes
12 Months Ended
Sep. 30, 2013
Income Taxes  
Income Taxes
9.  Income Taxes
 
Provision for income taxes is comprised of the following:
           
             
   
September 30, 2013
   
September 30, 2012
 
             
Current tax expense:
               
  Federal
 
$
0
   
$
0
 
  State
   
0
     
0
 
  Total
 
$
0
   
$
0
 
 
A reconciliation of provision for income taxes at the statutory rate to provision for income taxes at the Company's effective tax rate is as follows:
           
Statutory U.S. federal rate
   
34
%
   
34
%
Statutory state  income tax
   
5.83
%
   
0%
 
Less valuation allowance
   
(39.83
)%
   
(34
)%
Effective rate
   
0
%
   
0
%
                 
Deferred income taxes are comprised of the following:
               
                 
Tax loss carryforwards
 
$
172,232
   
$
119,332
 
Less valuation allowance
   
(172,232
)
   
(119,332
)
Deferred tax benefit
 
$
0
   
$
0
 
 
The increase in the valuation allowance for the year ended September 30, 2013 was an increase of $52,900.
XML 43 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Sep. 30, 2013
Summary of Significant Accounting Policies [Abstract]  
Use of Estimates
Use of Estimates
 
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the following; estimates of the probability and potential magnitude of contingent liabilities, the valuation allowance for deferred tax assets due to continuing operating losses, valuation of shares issued in connection with the purchase of real estate, the valuation of the real estate and the evaluation of any impairment on the real estate.
 
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates.
Cash
Cash
 
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.  There were no cash equivalents at September 30, 2013 and 2012.
 
The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
 
For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amounts of cash, loan payable, accounts payable and accrued expenses reported in the balance sheets are estimated by management to approximate fair value at September 30, 2013 and 2012.
Revenue Recognition
Revenue Recognition
 
The Company records revenue for services rendered when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) the product/service is delivered, (3) the sales price to the customer is fixed or determinable, and (4) collectability of the related customer receivable is reasonably assured.
Income Taxes
Income Taxes
 
The Company accounts for income taxes in accordance with generally accepted accounting principles which requires an asset and liability approach to financial accounting and reporting for income taxes.  Deferred income tax assets and liabilities are computed annually for differences between financial statement and income tax bases of assets and liabilities that will result in taxable income or deductible expenses in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets and liabilities to the amount expected to be realized.  Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities.
 
The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (FASB) ASC 740,  Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the positions will be sustained upon examination by the tax authorities.  It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  As of September 30, 2013 and September 30, 2012, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.  All tax returns from fiscal years 2010 to 2013 are subject to IRS audit.
Earnings per share
Earnings per share
 
In accordance with accounting guidance now codified as FASB ASC Topic 260,“Earnings per Share,”   basic earnings (loss) per share is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period.  Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period.
 
The Company did not have any potential common stock equivalents at September 30, 2013 and 2012.
Recent accounting pronouncements
Recent accounting pronouncements
 
Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC, did not, or are not believed by management, to have a material impact on the Company’s present or future financial statements.
XML 44 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Employment Agreement (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Employment Agreement (Textual)  
Accrued $ 10,000
Chief Executive Officer [Member]
 
Employment Agreement (Textual)  
Reimbursement Expenses 10,000
Accrued $ 10,000
Employment contract
Three year.
XML 45 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (132,799) $ (228,980)
Changes in operating assets and liabilities:    
(Increase) / Decrease in prepaid expenses 4,000 (4,000)
Increase / (Decrease) in accounts payable and accrued interest 57,171 (30,971)
Increase in accrued salary 10,000   
Net Cash Used In Operating Activities (61,628) (263,951)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Advances - related parties 3,711 54,746
Proceeds from notes payable - related parties 58,774 208,000
Net Cash Provided By Financing Activities 62,485 262,746
NET INCREASE / DECREASE IN CASH 857 (1,205)
CASH AT BEGINNING OF YEAR    1,205
CASH AT END OF YEAR 857   
Supplemental disclosure of non cash investing & financing activities:    
Cash paid for income taxes      
Cash paid for interest expense      
XML 46 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Going Concern
12 Months Ended
Sep. 30, 2013
Going Concern [Abstract]  
Going Concern
3. Going Concern
 
As reflected in the accompanying financial statements, the Company has a net loss of $137,399 and net cash used in operations of $61,628 for the year ended September 30, 2013. In addition, the Company has not had construction revenues since May 2011 and the only prospect for positive cash flow is through the issuance of common stock or debt.  If the Company does not begin to generate sufficient revenue or raise additional funds through a financing, the Company may need to incur additional liabilities with certain related parties to sustain the Company’s existence. The Company will require additional funding to finance the growth of its future operations as well as to achieve its strategic objectives.   This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and generate revenue. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
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Mortgage Payable (Details) (USD $)
12 Months Ended
Sep. 30, 2013
Jun. 24, 2013
Sep. 30, 2012
Mortgage Payable (Textual)      
Purchase price of property $ 307,504 $ 1,350,000   
Amount payable for third party 750,000     
Percentage of delivery on property 3.00%    
Due date of mortgage Jun. 15, 2014    
Common stock authorized for purchase of property 100,000    
Common stock, par value $ 0.001   $ 0.001
Accrued interest, amounted $ 6,125    
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Subsequent Events
12 Months Ended
Sep. 30, 2013
Subsequent Events [Abstract]  
Subsequent Events
13. Subsequent Events
 
On November 14, 2013, a related party advanced the Company $19,960 for working capital.
 
On November 13, 2013, a related party entered into an unsecured note payable for $25,000 with an interest rate of 10% due November 13, 2014.
 
On December 20, 2013, a related party advanced the Company $2,500 for working capital.
 
On January 13, 2014, a related party entered into an unsecured note payable for $3,352 with an interest rate of 5% due January 13, 2015.
 
On January 7, 2014, a related party advanced the Company $5,000 for working capital.
 
On January 24, 2014, a related party advanced the Company $10,000 to pay for 1 months salary to our Chief Executive Officer.
 
In December 2013 the Company entered into a Joint Venture Agreement with Development Property Holdings, Inc. a California corporation, to enter into and become a Florida joint venture for the purpose of acquiring certain commercial real property in the State of Florida. The Joint Venture will be vested 50% by each partner and all decisions, costs, expenses and profits will be divided evenly between the two partners. To date, the Joint Venture has not executed and closed on any properties and is still searching for its first project.
 
On February 7, 2014, the Company issued 100,000 shares to the seller of the property, a related party, which closed on June 24, 2013.