10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C.  20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarter Ended: June 30, 2017 Commission File Number 000-55019

HOME TREASURE FINDERS, INC. AND SUBSIDIARY

(Exact name of registrant as specified in its charter)

COLORADO	26-3119496
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)
4316 Tennyson Street, Denver, Colorado	80212
(Address of principal executive offices)	(Zip code)

(720) 273-2398

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the 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 past 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.   ý Yes           o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   ý Yes                      o No (Not required)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or, an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company", in Rule 12b-2 of the Exchange Act.

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

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

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

As of August 14, 2017, registrant had outstanding 13,205,450 shares of common stock, no par value.

Index

	Page
PART I  FINANCIAL INFORMATION
Item 1. Financial Statements for the period ended June30, 2017
Consolidated Balance Sheets (Unaudited)	3
Consolidated Statements of Operations (Unaudited)	4
Consolidated Statements of Cash Flows (Unaudited)	5
Notes to Unaudited Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3. Quantitative and Qualitative Disclosures About Market Risk	10
Item 4. Controls and Procedures	10
PART II  OTHER INFORMATION
Item 1. Legal Proceedings	11
Item 1A.  Risk Factors	11
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	11
Item 3. Defaults Upon Senior Securities	11
Item 4. Submission of Matters to a Vote of Security Holders	11
Item 5. Other Information	11
Item 6. Exhibits	12
Signatures	13

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PART I  FINANCIAL INFORMATION

Item 1.  Financial Statements

HOME TREASURE FINDERS, INC. AND SUBSIDIARY

 Consolidated Balance Sheets

	June 30,			December 31,
	2017			2016
	(unaudited)
Assets
Current Assets:
Cash	$	38,830		$	60,202
Rent receivable		4,101			500
Prepaid expenses		5,633			1,737
Total current assets		48,564			62,439
Property and equipment, net		808,549			820,203
Other assets:
Security deposits		1,400			1,400
Total assets	$	858,513		$	884,042
Liabilities and Shareholders' Deficit
Liabilities:
Accounts payable	$	18,094		$	18,336
Accrued wages		28,612			28,612
Accrued liabilities		50,968			56,672
Accrued interest – related party		4,051			3,305
Note payable, current portion		11,229			10,790
Related party note payable		15,900			17,590
Total current liabilities		128,854			135,305
Long term debt, net of current portion		795,137			800,864
Total liabilities		923,991			936,169
Commitments and Contingencies
Shareholders' deficit:
Common stock, no par value; 100,000,000 shares authorized,
13,205,450 and 13,205,450 shares issued and outstanding, respectively		215,267			215,267
Additional paid in capital		96,476			96,476
Accumulated deficit		(377,221	)		(363,870	)
Total shareholder's deficit		(65,478	)		(52,127	)
Total liabilities and shareholders' deficit	$	858,513		$	884,042

See accompanying notes to consolidated financial statements.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

 Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Commission income	$	20,822		$	72,492		$	70,299		$	120,518
Rental and property and rental management income		66,072			60,025			126,911			116,930
Revenue	$	86,894		$	132,517		$	197,210		$	237,448
Operating expenses:
Commission expense		1,898			42,919			6,464			47,722
Professional fees		6,563			9,939			13,393			26,218
General and Administrative		93,508			81,668			172,139			145,665
Total operating expenses		101,969			134,526			191,996			219,605
Operating income (loss)		(15,075	)		(2,009	)		5,214			17,843
Other income (expense)
Gain on legal settlement		14,560			-			14,560			-
Interest expense		(16,540	)		(14,367	)		(33,125	)		(28,951	)
Total other income (expense)		(1,980	)		(14,367	)		(18,565	)		(28,951	)
Net loss	$	(17,055	)	$	(16,376	)	$	(13,351	)	$	(11,108	)
Basic and diluted loss per share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Basic and diluted weighted average
common shares outstanding		13,205,450			13,205,450			13,205,450			13,205,450

See accompanying notes to consolidated financial statements.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

	For the Six Months Ended
	June 30,
	2017			2016
Cash flows from operating activities:
Net loss	$	(13,351	)	$	(11,108	)
Adjustments to reconcile net loss to net cash
Provided by (used in) operating activities:
Depreciation and amortization		11,654			11,871
Changes in operating assets and liabilities:
Increase in rent receivable		(3,601	)		—
Increase in prepaid expense		(3,896	)		(4,739	)
Increase in accrued interest		746			184
(Decrease) increase in accrued liabilities		(5,704	)		4,430
(Decrease) increase in accounts payable		(242	)		19,277
Net cash provided by (used in) operating activities		(14,394	)		19,915
Cash flows from investing activities:
Purchase of fixed assets		—			(940	)
Net cash (used in) investing activities		—			(940	)
Cash flows from financing activities:
Proceeds from related party payable		2,310			1,258
Payment of  related party payable		(4,000	)		(9,193	)
Payment of long term debt		(5,288	)		(6,848	)
Net cash (used in) financing activities		(6,978	)		(14,783	)
Net change in cash		(21,372	)		4,192
Cash, beginning of period		60,202			45,210
Cash, end of period	$	38,830		$	49,402
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes	$	—		$	—
Interest	$	32,379		$	28,767

See accompanying notes to consolidated financial statements.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Note 1:  Basis of Presentation

The accompanying financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). The interim financial statements reflect all adjustments, consisting of normal recurring adjustments which, in the opinion of management, are necessary to present a fair statement of the results for the period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the December 31, 2016 financial statements and notes thereto included. The results of operations for the period ended June 30, 2017, are not necessarily indicative of the operating results for the year ended December 31, 2017.

Note 2:  Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As shown in the accompanying financial statements, the Company has not yet generated sufficient net income.  This factor, among others, indicates that there is substantial doubt that the Company will be able to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.  The Company's continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.  The Company intends to seek additional funding through equity offerings to fund its business plan.  There is no assurance that the Company will be successful in raising additional funds. 

Note 3:  Related Party Transactions

During the six months ended June 30, 2017, the related party payable had a net decrease of $1,690.  The balance of the related party payable was $15,900 and $17,590 as of June 30, 2017 and December 31, 2016, respectively.  This payable is due on demand and has an interest rate of 8%.  Accrued interest on this payable was $4,051 and $3,305 at June 30, 2017 and December 31, 2016, respectively.  Interest expense for the six months ended June 30, 2017 and 2016 was $746 and $184, respectively.  Interest expense for the three months ended June 30, 2017 and 2016 was $377 and $13, respectively.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Note 4:  Property and Equipment

The Company's capital assets consist of warehouse units, computer equipment, office furniture and leasehold improvements for the new office.  Depreciation and amortization is calculated using the straight-line method over the estimated useful life of the asset, ranging from 18 months to 39 years.  Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred.  The cost and related accumulated depreciation of any capital assets that are sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.

Fixed assets and related depreciation are as follows: 

	June 30, 2017			December 31, 2016
Computer equipment	$	5,672		$	5,672
Furniture and fixtures		7,777			7,777
Leasehold improvements		4,000			4,000
Warehouse units		861,000			861,000
Accumulated amortization and depreciation		(69,900	)		(58,246	)
Total fixed assets	$	808,549		$	820,203

Depreciation and amortization expense was $11,654 and $11,871 for the six months ended June 30, 2017 and 2016, respectively.  Depreciation and amortization expense was $5,685 and $5,935 for the three months ended June 30, 2017 and 2016, respectively.

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HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Note 5:  Long-Term Debt

On September 15, 2014,  the Company entered into a promissory note for $840,000 on the purchase three warehouse units known as 4420, 4430 and 4440 Garfield Street, Denver, Colorado. The Company is leasing each of the three separate units to licensed third party growers for cannabis cultivation.  The terms of the variable interest 25 year amortization note carried by the seller of the property call for payments to seller as follows:

1 First and Second year interest rate at 7% with 25 year amortization payment at $5,937 per month.

2. Third and Fourth year at 8% with 25 year amortization payment at $6,278 per month.

3. Fifth year at 9% with 25 year amortization payment at $6,640 per month.

4. Balloon payment of $777,255 due at end of the fifth year.

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

As of June 30, 2017, the balance of the note was $806,366 and the annual maturities of the long-term debt were:

Year Ending December 31,
2017	$	5,502
2018		11,090
2019		789,774
	$	806,366

Note 6:  Commitment and Contingencies

On March 28, 2017 an ongoing lawsuit regarding the warehouse owned by the Company was settled.  The Company received $23,092 to cover attorney fees paid over the course of the lawsuit.

Note 7:  Subsequent Events

The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance.

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Part I. Item 2.  Management's Discussion and Analysis of Financial Conditions and Results of Operations

Forward-looking statements

The following discussion should be read in conjunction with the financial statements of Home Treasure Finders, Inc. and Subsidiaries (the "Company"), which are included elsewhere in this Form 10-Q. This Quarterly Report on Form 10-Q contains forward-looking information. Forward-looking information includes statements relating to future actions, future performance, costs and expenses, interest rates, outcome of contingencies, financial condition, results of operations, liquidity, business strategies, cost savings, objectives of management, and other such matters of the Company. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking information to encourage companies to provide prospective information about themselves without fear of litigation so long as that information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. Forward-looking information may be included in this Quarterly Report on Form 10-Q or may be incorporated by reference from other documents filed with the Securities and Exchange Commission (the "SEC") by the Company. You can find many of these statements by looking for words including, for example, "believes", "expects", "anticipates", "estimates" or similar expressions in this Quarterly Report on Form 10-Q or in documents incorporated by reference in this Quarterly Report on Form 10-Q. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events.

We have based the forward-looking statements relating to our operations on our management's current expectations, estimates and projections about our Company and the industry in which we operate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In particular, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Accordingly, our actual results may differ materially from those contemplated by these forward-looking statements. Any differences could result from a variety of factors, including, but not limited to general economic and business conditions, competition, and other factors.

Financial Condition and Results of Operation

Home Treasure Finders, Inc. was formed on July 28, 2008. The founder, sole director and officer of our company is Corey Wiegand. On March 3, 2014 we formed a wholly owned subsidiary, HMTF Cannabis Holdings, Inc. to purchase properties that qualify for legal cultivation of cannabis. 

Our net loss for the six months ended June 30, 2017 was $13,351.  We generated operating revenue from three sources, sales commissions, property management, and commercial real estate for legal cannabis cultivation. We manage approximately 97 rental real estate owned by non-related third parties. In comparison our net loss for the six months ended June 30, 2016 was $11,108.

For the six months ended June 30, 2017 the Company generated a total of $197,210 in revenues, consisting of $70,299 from sales commissions and $126,911 from rental and property management.  During the six months ended June 30, 2016 we generated a total of $237,448 in revenues, consisting of $120,518 from sales commissions and $116,931 from rental and property management.  Commission income decreased over prior year due to a decline in home sales.  The increase in rental and property management is the result of an increase in the number of rentals we manage.

During the six months ending June 30, 2017 we incurred operating expenses totaling $191,996. Such expenses consisted primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  During the six months ended June 30, 2016 we incurred a total of $219,605 of operating expenses consisting primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  The decrease in expenses over prior year was primarily related to decrease in commission expense as a result of the decrease in sales commission.  Also, professional fees decreased over prior year due to decrease in audit and legal fees and the refund of legal fees with the settlement of the lawsuit.  The decrease in these expenses was offset some by an increase in other administrative expenses.

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Our net loss for the three months ended June 30, 2017 and 2016 was $17,055 and $13,351, respectively.  For the three months ended June 30, 2017 the Company generated a total of $86,894 in revenues, consisting of $20,822 from sales commissions and $66,072 from rental and property management.  During the three months ended June 30, 2016 we generated a total of $132,517 in revenues, consisting of $72,492 from sales commissions and $60,025 from rental and property management

During the three months ending June 30, 2017 we incurred operating expenses totaling $101,969. Such expenses consisted primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  During the three months ended June 30, 2016 we incurred a total of $134,526 of operating expenses consisting primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  The decrease in expenses over prior year was primarily related to decrease in commission expense as a result of the decrease in sales commission.  Also, professional fees decreased over prior year due to decrease in audit and legal fees and the refund of legal fees with the settlement of the lawsuit.  The decrease in these expenses was offset some by an increase in other administrative expenses.

Liquidity and Capital Resources

At June 30, 2017, we had $38,830 in cash and working capital deficit of $80,290.  At December 31, 2016 we had $60,202 in cash and a working capital deficit of $72,866.

The business plan of our subsidiary, HMTF Cannabis Holdings, Inc. is capital intensive and requires that we raise significant additional capital to acquire and improve real estate. We are negotiating with various sources for an equity infusion to match our long term capital needs.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

No response required.

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the United States Securities and Exchange Commission. Our Chief Executive Officer has reviewed the effectiveness of our "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15d-14(c)) within the end of the period covered by this Quarterly Report on Form 10-Q and has concluded that the disclosure controls and procedures are ineffective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner. There were no changes in our internal controls or in other factors that could materially affect these controls subsequent to the last day they were evaluated by our Chief Executive Officer, who is our principal executive officer and our principal financial officer.

Item 4T.  Changes in Internal Controls over Financial Reporting

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

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Part 2.    Other Information

Item 1 -  Legal Information.

No response required.

Item 1A.  Risk Factors

No response required.

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

None.

Item 3 -  Defaults Upon Senior Securities.

No response required.

Item 4 -  Mine Safety.

No response required.

Item 5 -  Other Information.

No response required.

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Item 6 - Exhibits and Reports on Form 8-K.

(a)       Exhibits:

Exhibit Number	Description
31.1	Certification of CEO/CFO pursuant to Sec. 302
32.1	Certification of CEO/CFO pursuant to Sec. 906
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.INS	XBRL Instance Document
101SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

(b)   Reports on Form 8-K:

None.

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SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	HOME TREASURE FINDERS, INC. AND SUBSIDIARY
	(Registrant)
DATE:   August 14, 2017	BY:	/s/ Corey Wiegand
		Corey Wiegand
		President

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EX-31

 

Exhibit 31.1

CERTIFICATION OF

PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER

PURSUANT TO

SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Corey Wiegand, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Treasure Finders, Inc. and Subsidiary.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

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

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

/s/ Corey Wiegand

Corey Wiegand

Principal Executive Officer and Principal Financial Officer

August 14, 2017

EX-32

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Corey Wiegand, Chief Executive Officer of Home Treasure Finders, Inc. and Subsidiary (the “Company”), certifies, under the standards set forth and solely for the purposes of 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge, the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2017 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in that Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Corey Wiegand

Corey Wiegand

Principal Executive Officer and Principal Financial Officer

August 14, 2017

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 14, 2017
Document And Entity Information
Entity Registrant Name	Home Treasure Finders, Inc.
Entity Central Index Key	0001527102
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		13,205,450
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2017

XML

Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash	$ 38,830	$ 60,202
Rent receivable	4,101	500
Prepaid expenses	5,633	1,737
Total current assets	48,564	62,439
Property and equipment, net	808,549	820,203
Other assets:
Security deposits	1,400	1,400
Total assets	858,513	884,042
Liabilities:
Accounts payable	18,094	18,336
Accrued wages	28,612	28,612
Accrued liabilities	50,968	56,672
Accrued interest - related party	4,051	3,305
Note payable, current portion	11,229	10,790
Related party note payable	15,900	17,590
Total current liabilities	128,854	135,305
Long term debt, net of current portion	795,137	800,864
Total liabilities	923,991	936,169
Shareholders' equity (deficit):
Common stock, no par value; 100,000,000 shares authorized, 13,205,450 and 13,205,450 shares issued and outstanding, respectively	215,267	215,267
Additional paid in capital	96,476	96,476
Accumulated deficit	(377,221)	(363,870)
Total shareholder's equity (deficit)	(65,478)	(52,127)
Total liabilities and shareholders' equity (deficit)	$ 858,513	$ 884,042

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Stockholders Equity
Common Stock par value	$ 0.00	$ 0.00
Common Stock Authorized	100,000,000	100,000,000
Common Stock Issued	13,205,450	13,205,450
Common Stock Outstanding	13,205,450	13,205,450

XML

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Commission income	$ 20,822	$ 72,492	$ 70,299	$ 120,518
Rental and property and rental management income	66,072	60,025	126,911	116,930
Revenues	86,894	132,517	197,210	237,448
Operating expenses:
Commision expense	1,898	42,919	6,464	47,722
Professional fees	6,563	9,939	13,393	26,218
General and Administrative	93,508	81,668	172,139	145,665
Total operating expenses	101,969	134,526	191,996	219,605
Operating income (loss)	(15,075)	(2,009)	5,214	17,843
Other income (expense)
Gain on legal settlement	14,560		14,560
Interest expense	(16,540)	(14,367)	(33,125)	(28,951)
Total other income (expense)	(1,980)	(14,367)	(18,565)	(28,951)
Net loss	$ (17,055)	$ (16,376)	$ (13,351)	$ (11,108)
Basic and diluted loss per share	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Basic and diluted weighted average common shares outstanding	13,205,450	13,205,450	13,205,450	13,205,450

XML

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (13,351)	$ (11,108)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Depreciation and amortization	11,654	11,871
Changes in operating assets and liabilities:
Increase in rent receivable	(3,601)
Increase in prepaid expense	(3,896)	(4,739)
Increase in accrued interest - related party	746	184
Increase in accrued liabilities	(5,704)	4,430
Increase in accounts payable	(242)	19,277
Net cash provided by (used in) operating activities	(14,394)	19,915
Cash flows from investing activities:
Purchase of fixed assets		(940)
Net cash used by investing activities		(940)
Cash flows from financing activities:
Proceeds from related party payable	2,310	1,258
Payment of related party payable	(4,000)	(9,193)
Payment of long term debt	(5,288)	(6,848)
Net cash provided by (used in) financing activities	(6,978)	(14,783)
Net change in cash	(21,372)	4,192
Cash, beginning of period	60,202	45,210
Cash, end of period	38,830	49,402
Supplemental disclosure of cash flow information:
Cash paid during the period for Income taxes
Cash paid during the period for Interest	$ 32,379	$ 28,767

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1 Basis of Presentation

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

Note 1:  Basis of Presentation

The accompanying financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). The interim financial statements reflect all adjustments, consisting of normal recurring adjustments which, in the opinion of management, are necessary to present a fair statement of the results for the period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the December 31, 2016 financial statements and notes thereto included. The results of operations for the period ended June 30, 2017, are not necessarily indicative of the operating results for the year ended December 31, 2017.

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2 Going Concern

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

Note 2:  Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As shown in the accompanying financial statements, the Company has not yet generated sufficient net income.  This factor, among others, indicates that there is substantial doubt that the Company will be able to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.  The Company's continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.  The Company intends to seek additional funding through equity offerings to fund its business plan.  There is no assurance that the Company will be successful in raising additional funds. 

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3 Related Party Transaction

6 Months Ended

Jun. 30, 2017

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

Note 3:  Related Party Transactions

During the six months ended June 30, 2017, the related party payable had a net decrease of $1,690.  The balance of the related party payable was $15,900 and $17,590 as of June 30, 2017 and December 31, 2016, respectively.  This payable is due on demand and has an interest rate of 8%.  Accrued interest on this payable was $4,051 and $3,305 at June 30, 2017 and December 31, 2016, respectively.  Interest expense for the six months ended June 30, 2017 and 2016 was $746 and $184, respectively.  Interest expense for the three months ended June 30, 2017 and 2016 was $377 and $13, respectively.

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4 Property and Equipment

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Note 4:  Property and Equipment

The Company's capital assets consist of warehouse units, computer equipment, office furniture and leasehold improvements for the new office.  Depreciation and amortization is calculated using the straight-line method over the estimated useful life of the asset, ranging from 18 months to 39 years.  Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred.  The cost and related accumulated depreciation of any capital assets that are sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.

Fixed assets and related depreciation are as follows: 

	June 30, 2017			December 31, 2016
Computer equipment	$	5,672		$	5,672
Furniture and fixtures		7,777			7,777
Leasehold improvements		4,000			4,000
Warehouse units		861,000			861,000
Accumulated amortization and depreciation		(69,900	)		(58,246	)
Total fixed assets	$	808,549		$	820,203

Depreciation and amortization expense was $11,654 and $11,871 for the six months ended June 30, 2017 and 2016, respectively.  Depreciation and amortization expense was $5,685 and $5,935 for the three months ended June 30, 2017 and 2016, respectively.

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5 Long-Term Debt

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

LONG-TERM DEBT

Note 5:  Long-Term Debt

On September 15, 2014,  the Company entered into a promissory note for $840,000 on the purchase three warehouse units known as 4420, 4430 and 4440 Garfield Street, Denver, Colorado. The Company is leasing each of the three separate units to licensed third party growers for cannabis cultivation.  The terms of the variable interest 25 year amortization note carried by the seller of the property call for payments to seller as follows:

1 First and Second year interest rate at 7% with 25 year amortization payment at $5,937 per month.

2. Third and Fourth year at 8% with 25 year amortization payment at $6,278 per month.

3. Fifth year at 9% with 25 year amortization payment at $6,640 per month.

4. Balloon payment of $777,255 due at end of the fifth year.

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

As of June 30, 2017, the balance of the note was $806,366 and the annual maturities of the long-term debt were:

Year Ending December 31,
2017	$	5,502
2018		11,090
2019		789,774
	$	806,366

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6 Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitment and Contingencies

Note 6:  Commitment and Contingencies

On March 28, 2017 an ongoing lawsuit regarding the warehouse owned by the Company was settled.  The Company received $23,092 to cover attorney fees paid over the course of the lawsuit.

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7 Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

Note 7:  Subsequent Events

The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance.

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4 Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Fixed assets and related depreciation

	June 30, 2017			December 31, 2016
Computer equipment	$	5,672		$	5,672
Furniture and fixtures		7,777			7,777
Leasehold improvements		4,000			4,000
Warehouse units		861,000			861,000
Accumulated amortization and depreciation		(69,900	)		(58,246	)
Total fixed assets	$	808,549		$	820,203

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5 Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Annual maturities of long-term debt

Year Ending December 31,
2017	$	5,502
2018		11,090
2019		789,774
	$	806,366

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3 Related Party Transaction (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Related Party Transactions [Abstract]
Net decrease in related party payable			$ 1,690
Balance of the related party payable			15,900	$ 15,900
Accrued interest on this payable			4,051	3,305
Interest expense	$ 377	$ 13	$ 746	$ 184
Interest Rate			8.00%

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4 Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation and ammortization expense	$ 5,685	$ 5,935	$ 11,654	$ 11,871

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4 Property and Equipment - Depreciation (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Computer equipment	$ 5,672	$ 5,672
Furniture and fixtures	7,777	7,777
Leasehold improvements	4,000	4,000
Warehouse units	861,000	861,000
Accumulated amortization and depreciation	(69,900)	(58,246)
Total fixed assets	$ 808,549	$ 820,203

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5 Long-Term Debt - (Details)	12 Months Ended
	Dec. 31, 2016 USD ($)
Debt Disclosure [Abstract]
First and Second year interest rate	7.00%
First and Second year 25 year amortization monthly payment	$ 5,937
Third and Fourth year interest rate	8.00%
Third and Fourth year 25 year amortization monthly payment	$ 6,278
Fifth year interest rate	9.00%
Fifth year 25 year amortization monthly payment	$ 6,640
Balloon payment at end of the fifth year	$ 777,255

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5 Long-Term Debt - (Details Narrative)	Jun. 30, 2017 USD ($)
Debt Disclosure [Abstract]
2017	$ 5,502
2018	11,090
2019	789,774
Total maturities for note payable outstanding	$ 806,366

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5 Long-Term Debt (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2017
Debt Disclosure [Abstract]
Promissory note for purchase three warehouse units	$ 840,000	$ 821,525
Length of time to pay off amortization note	25 years
Balance of the note		$ 806,366

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6 Commitments and Contingencies (Details Narrative)	6 Months Ended
	Jun. 30, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Repayment of attorney fees from lawsuit	$ 23,092