0001493152-18-013035.txt : 20180910 0001493152-18-013035.hdr.sgml : 20180910 20180910092931 ACCESSION NUMBER: 0001493152-18-013035 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 31 CONFORMED PERIOD OF REPORT: 20180630 FILED AS OF DATE: 20180910 DATE AS OF CHANGE: 20180910 FILER: COMPANY DATA: COMPANY CONFORMED NAME: USA EQUITIES CORP. CENTRAL INDEX KEY: 0000856984 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 112655906 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-19041 FILM NUMBER: 181061575 BUSINESS ADDRESS: STREET 1: 40 WALL STREET, 28TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 212-400-7198 MAIL ADDRESS: STREET 1: 40 WALL STREET, 28TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10005 FORMER COMPANY: FORMER CONFORMED NAME: USA EQUITY CORP. DATE OF NAME CHANGE: 20151116 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN BIOGENETIC SCIENCES INC DATE OF NAME CHANGE: 19940426 10-Q 1 form10-q.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended June 30, 2018

 

Commission file number 0-19041

 

USA EQUITIES CORP.

(Exact Name Of Registrant As Specified In Its Charter)

 

Delaware   30-1104301
(State of Incorporation)   (I.R.S. Employer Identification No.)
     
3801 PGA Boulevard, Suite 102, Palm Beach Gardens, FL   33401
(Address of Principal Executive Offices)   (ZIP Code)

 

Registrant’s Telephone Number, Including Area Code: (929) 379-6503

 

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 [  ] No [X]

 

On September 10, 2018, the Registrant had 3,590,135 shares of common stock outstanding.

 

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

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act).

 

Large accelerated filer [  ] Accelerated filer [  ] Non-Accelerated filer [  ] Smaller reporting company [X]

 

 

 

 
 

 

TABLE OF CONTENTS

 

Item   Description   Page
         
    PART I - FINANCIAL INFORMATION    
         
ITEM 1.   FINANCIAL STATEMENTS.   3
ITEM 2.   MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.   9
ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.   11
ITEM 4.   CONTROLS AND PROCEDURES.   11
         
    PART II - OTHER INFORMATION    
         
ITEM 1.   LEGAL PROCEEDINGS.   12
ITEM 1A.   RISK FACTORS.   12
ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.   12
ITEM 3.   DEFAULT UPON SENIOR SECURITIES.   12
ITEM 4.   MINE SAFETY DISCLOSURE.   12
ITEM 5.   OTHER INFORMATION.   12
ITEM 6.   EXHIBITS.   12

 

 2 
 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

Consolidated Balance Sheets - June 30, 2018 (Unaudited) and December 31, 2017 4
Consolidated Statements of Operations –Three and Six Months Ended June 30, 2018 and 2017 (Unaudited) 5
Consolidated Statements of Cash Flows - Six Months Ended June 30, 2018 and 2017 (Unaudited) 6
Notes to Unaudited Interim Consolidated Financial Statements 7

 

 3 
 

 

USA Equities Corp.

Consolidated Balance Sheets

As of June 30, 2018 and December 31, 2017

 

   June 30, 2018   December 31, 2017 
   (Unaudited)   (Audited) 
Assets          
           
Total Assets  $-   $- 
           
Liabilities and Stockholders’ Deficit          
Current Liabilities:          
Accounts payable - trade  $-   $10,943 
Accrued interest expenses   89,895    84,316 
Advances from and accruals due to related party   99,541    70,444 
Total current liabilities   189,436    165,703 
           
Total long-term liabilities   329,181    329,181 
           
Total liabilities   518,617    494,884 
           
Stockholders’ Deficit:          
           
Preferred stock, 10,000,000 shares authorized, $0.0001 par value; none issued and outstanding   -    - 
Common stock, 900,000,000 shares authorized, $0.0001 par value; 3,590,135 shares issued and outstanding at June 30, 2018 and 3,588,740 shares issued and outstanding at December 31, 2017   359    359 
Additional paid-in capital   720,941    720,941 
Accumulated deficit   (1,239,917)   (1,216,184)
Total stockholders’ deficit   (518,617)   (494,884)
Total liabilities and stockholders’ deficit  $-   $- 

 

See accompanying notes to unaudited interim consolidated financial statements.

 

 4 
 

 

USA Equities Corp.

Consolidated Statements of Operations

For the Three and Six Months ended June 31, 2018 and 2017

 

   Three Months   Three Months   Six Months   Six Months 
   Ended   Ended   Ended   Ended 
   June 30, 2018   June 30, 2017   June 30, 2018   June 30, 2017 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Revenue  $-   $-   $-   $- 
                     
Costs and expenses:                    
General and administrative   19,676    -    19,676    105 
Interest   2,805    2,805    5,579    5,579 
Total general and administrative expenses   22,481    2,805    25,255    5,684 
                     
Net operating loss   (22,481)   (2,805)   (25,255)   (5,684)
Forgiveness of debt   1,522    -    1,522    - 
Income taxes   -    -    -    - 
Net loss  $(20,959)  $(2,805)  $(23,733)  $(5,684)
                     
Basic and diluted net loss  $(0.01)  $(0.00)  $(0.01)  $(0.00)
                     
Weighted average shares outstanding:                    
(Basic and diluted)   3,590,135    3,588,740    3,590,135    3,588,740 

 

See accompanying notes to unaudited interim consolidated financial statements.

 

 5 
 

 

USA Equities Corp.

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2018 and 2017

 

   Six Months Ended   Six Months Ended 
   June 30, 2018   June 30, 2017 
   (Unaudited)   (Unaudited) 
Cash flows used by operating activities  $   $ 
Net loss   (23,733)   (5,684)
Changes in net assets and liabilities:          
Decrease in accounts payable and accrued expenses   (5,364)   5,579 
Cash flows used in operating activities   (29,097)   (105)
           
Cash flows from financing activities:          
Proceeds of related party borrowings   29,097   105 
Cash provided by financing activities   29,097   105 
           
Change in cash   -    - 
Cash - beginning of year   -    - 
Cash - end of year  $-   $- 

 

See accompanying notes to unaudited interim consolidated financial statements.

 

 6 
 

 

USA EQUITIES CORP

Notes to Unaudited Interim Consolidated Financial Statements

June 30, 2018

 

Note 1. The Company

 

USA Equities Corp. (the “Company”, “We” or the “Registrant”) was incorporated in Delaware on September 1, 1983. The Company’s Board of Directors approved the name change from American Biogenetic Sciences, Inc. to USA Equities Corp on May 29, 2015. Prior to ceasing its operations in 2002, the Company was engaged in the research, development and production of bio-pharmaceutical products. On September 19, 2002, the Registrant filed for bankruptcy under the U.S. Bankruptcy Code in the U.S. Bankruptcy Court Eastern District of New York. On November 4, 2005, the Company emerged from Bankruptcy Court. On August 13, 2010, the Company’s sole officer/director transferred and assigned his control stock position to an unrelated third party but remained as the Company’s sole executive officer/director. On April 14, 2015, the Company incorporated a wholly-owned subsidiary in Delaware (USA Equity Trust, Inc.) for the purpose of acquiring real estate.

 

Note 2. Going Concern

 

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses, has negative operational cash flows and has no revenues. The future of the Company is dependent upon Management’s success in its efforts and limited resources to pursue and effect a business combination. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might arise from this uncertainty.

 

Note 3. Basis of Presentation

 

The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2017. The accounting policies are described in the “Notes to the Financial Statements” in the 2017 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three and six months ended June 30, 2018 and 2017 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.

 

Accounting Policies

 

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

 

Principles of Consolidation: The consolidated financial statements include the accounts of USA Equities Corp and as of April 14, 2015, the accounts of its wholly owned subsidiary USA Equity Trust, Inc. All significant inter-company balances and transactions have been eliminated.

 

Cash and Cash Equivalents: For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. As of June 30, 2018 and December 31, 2017, the Company had no cash and cash equivalents

 

 7 
 

 

Fair Value of Financial Instruments: ASC #825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of fair value information about financial instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2018. These financial instruments include accounts payable and accrued expenses. Fair values were assumed to approximate carrying values for these financial instruments since they are short-term in nature and their carrying amounts approximate fair values.

 

Earnings Per Common Share: Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options to purchase common stock (only if those options are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of issued and outstanding preferred stock. Due to the net losses reported, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. There were no common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding as of June 30, 2018 and 2017.

 

Income Taxes: The Company accounts for income taxes in accordance with ASC #740, “Accounting for Income Taxes,” which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

 

ASC 740 also clarifies the accounting for uncertainty in tax positions. This guidance prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. There are no uncertain tax positions taken by the Company on its tax returns. Tax years subsequent to 2005 remain open to examination by U.S. federal and state tax jurisdictions.

 

Management of the Company is not aware of any additional needed liability for unrecognized tax benefits at June 30, 2018. The Company has net operating losses of $1,239,917, which begin to expire in 2027. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.

 

Impact of recently issued accounting standards

 

There were no new accounting pronouncements that had a significant impact on the Company’s operating results or financial position.

 

Note 4. Convertible Notes to Related Party

 

On October 2, 2009, we issued a convertible promissory note in the amount of $76,000 to our sole officer/director. The note bears interest at the rate of 12% per annum until paid or the note and accrued interest is converted into shares of the Company’s common stock at a conversion price of $0.001. The convertible note was issued in consideration of cash advances made and for services provided to the Company by the sole officer/director, who was also the Company’s controlling shareholder. On August 13, 2010, the Company’s sole officer/director transferred and assigned his controlling stock position to an unrelated third party but remained as the Company’s sole executive officer/director. In connection with the August 2010 change in control, the convertible note payable to sole officer/director together with accrued interest was also verbally assigned to the new controlling shareholder. A written agreement was entered into between the Company and the controlling shareholder on December 31, 2013 to assign the $76,000 convertible promissory note to the controlling shareholder. On July 31, 2015, our CFO and control shareholder converted $2,500 in principal amount of this note into 2,500,000 restricted shares of common stock. The Company recorded a loss on conversion of $672,500 during the year ended December 31, 2015 in relation to the conversion of the $2,500 in principal amount. On October 2, 2009, we issued a convertible promissory with a current principal amount of $73,500 to our sole officer/director. The note bears interest at the rate of 12% per annum until paid or the note and accrued interest is converted into shares of the Company’s common stock at a conversion price of $0.001. The maturity date of the note was extended to December 31, 2018. As of June 30, 2018 and December 31, 2017, this note had accumulated $78,510 and $74,184, respectively, in accrued interest.

 

 8 
 

 

On December 31, 2013, we issued a convertible promissory note in the amount of $255,681 to our controlling shareholder. The note bears interest at the rate of 1% per annum until paid or the note and accrued interest is converted into shares of the Company’s common stock at a conversion price of $0.25 per share. On March 30, 2016, the maturity date of the note was extended to December 31, 2018. As of June 30, 2018 and December 31, 2017, this note had accumulated $11,385 and $10,132, respectively, in accrued interest.

 

In accordance Accounting Standard Codification (“ASC #815”), “Accounting for Derivative Instruments and Hedging Activities”, we evaluated the holder’s non-detachable conversion right provision and liquidated damages clause, contained in the terms governing the note to determine whether the features qualify as an embedded derivative instruments at issuance. Such non-detachable conversion right provision and liquidated damages clause did not need to be accounted as derivative financial instruments.

 

Note 5. Related Party Transactions

 

Due Related Parties: Amounts due to related parties consist of cash advances received from our controlling shareholder, which items totaled $99,541 at June 30, 2018 and $70,444 at December 31, 2017.

 

Note 6. Commitments and Contingencies

 

There are no pending or threatened legal proceedings as of June 30, 2018. The Company has no non-cancellable operating leases.

 

Note 7. Subsequent Events

 

The Company evaluated its June 30, 2018 interim financial statements for subsequent events and throughout September 10, 2018, the date the financial statements were issued. On August 6, 2018, the Company extended the maturity date of both its convertible notes outstanding to December 31, 2018. There were no other subsequent events that will affect the June 30, 2018 interim financial statements.

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION

 

Some of the statements contained in this quarterly report of USA Equities Corp., a Delaware corporation discuss future expectations, contain projections of our plan of operation or financial condition or state other forward-looking information. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions.

 

Overview

 

USA Equities Corp., a Delaware corporation, is sometimes referred to herein as “we”, “us”, “our”, “Company” and the “Registrant”. The Company’s Board of Directors approved the name change from American Biogenetic Sciences, Inc. to USA Equities Corp on May 29, 2015. The Registrant was formed in 1983 for the purpose of researching, developing and marketing cardiovascular and neurobiology products for commercial development and distributing vaccines. The Registrant’s products were designed for in vitro and in vivo diagnostic procedures and therapeutic drugs, and its products had been identified for use in the treatment of epilepsy, migraine and mania, neurodegenerative diseases, coronary artery diseases and cancer. The Registrant commenced selling its products during the last quarter of 1997 but did not generate any sufficient revenues from operations to fund its operating expenses.

 

 9 
 

 

On September 19, 2002, the Registrant filed a petition under the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of New York. On November 4, 2005, the Bankruptcy Court approved an order authorizing a change in control and provided that the Company, subsequent to the bankruptcy proceeding, is free and clear of all liens, claims and other obligations.

 

The Company’s principal business objective is to seek a business combination with an operating company. We intend to use the Company’s limited personnel and financial resources in connection with such activities. The Company will utilize its capital stock, debt or a combination of capital stock and debt, in effecting a business combination. It may be expected that entering into a business combination will involve the issuance of restricted shares of capital stock.

 

On April 17, 2015, the Company organized a Subsidiary, in Delaware for the purpose of acquiring real estate. To date, the control shares have not yet been issued.

 

On May 27, 2015, the Board of Directors of the Registrant appointed Mr. Troy Grogan to the Registrant’s Board of Directors and, at the same time, appointed Mr. Grogan to serve as the Registrant’s chief financial officer. Mr. Grogan has been a principal shareholder of the Registrant since August 2010.

 

On July 31, 2015, the Company through its Delaware wholly-owned subsidiary, USA Equity Trust, Inc., entered into an Asset Purchase Agreement with an unaffiliated third party, Green US Builders, Inc., a Delaware corporation (the “Seller”) for the purchase of a mixed-use investment property located in Bridgeport, CT (the “Property”) consisting of five retail stores and five apartments. At the end of October 2015, the parties decided to rescind the transaction because of the inability to fulfill certain representations regarding the status of the property. The seller, who was issued 2.4 million shares in consideration for the asset, is negotiating with the company to replace the asset with a property of equal value. The shares were valued at $0.27 per share or $648,000, the closing bid at July 31, 2015.

 

On February 1, 2016, the Company and the Seller entered into an Asset Purchase Agreement, as Amended, (the “Amendment”), which provided that the Seller had until March 31, 2016 to replace the asset with a property of equal value, unless the Company and the Seller mutually agreed to extend the Amendment.

 

In May 2016, the Company’s Board of Directors determined not to extend the Amendment beyond the March 31, 2016 date and the Board of Directors of the Company ratified and approved the: (i) termination of the Amendment and the underlying Asset Purchase Agreement; (ii) return to the transfer agent of the certificate evidencing the 2.4 million shares for cancellation; and (iii) cancellation of the common stock subscription receivable, effective at March 31, 2016.

 

On June 28, 2016, the Registrant accepted the resignation of Richard Rubin as its chief executive officer and chairman of the Board of Directors of the Company. The reason for his resignation was to permit him to pursue other business interests. Mr. Rubin had no disagreements with the Registrant’s operations, policies or practices.

 

On June 28, 2016, the Registrant’s Board of Directors appointed Troy Grogan, its controlling shareholder and CFO as CEO and Chairman of the Registrant.

 

 10 
 

 

Results of Operations during the three months ended June 30, 2018 as compared to the three months ended June 30, 2017

 

We have not generated any revenues during the three-months periods ended June 30, 2018 and 2017. We have operating expenses related to general and administrative expenses being a public company and interest expenses. We incurred $20,959 in net loss due to general and administrative expenses of $19,676, interest expense of $2,805 and forgiveness of debt of $1,522 during the three months ended June 30, 2018 as compared to a net loss of $2,805 due to expenses consisting of interest expenses of $2,805 during the three months ended June 30, 2017.

 

Results of Operations during the six month ended June 30, 2018 as compared to the six months ended June 30, 2017

 

We have not generated any revenues during the six-month periods ended June 30, 2018 and 2017. We have operating expenses related to general and administrative expenses being a public company and interest expenses. We incurred $23,733 in net loss due to expenses consisting of general and administrative expenses of $19,676, interest expenses of $5,579 and forgiveness of debt of $1,522 during the six months ended June 30, 2018 as compared to a net loss of $5,684 due to expenses consisting of general and administrative expenses of $105 and interest expenses of $5,579 during the six months ended June 30, 2017.

 

Liquidity and Capital Resources

 

We will use our limited personnel and financial resources in connection with seeking new business opportunities, including seeking an acquisition or merger with an operating company. It may be expected that entering into a new business opportunity or business combination will involve the issuance of a substantial number of restricted shares of common stock. If such additional restricted shares of common stock are issued, our shareholders will experience a dilution in their ownership interest in the Registrant. If a substantial number of restricted shares are issued in connection with a business combination, a change in control may be expected to occur.

 

On June 30, 2018, we had no assets. We had total current liabilities of $189,436 consisting of accrued interest expenses of $89,895 and $99,541 in advances from and accruals due to related party. The long term liabilities consisted of two convertible notes totaling $329,181. As of June 30, 2018, we had total liabilities of $518,617.

 

On December 31, 2017, we had no assets. We had total current liabilities of $165,703 consisting of $10,943 in accounts payable, accrued interest expenses of $84,316, and $70,444 in advances from and accruals due to related party. The long term liabilities consisted of two convertible notes totaling $329,181. As of December 31, 2017, we had total liabilities of $494,884.

 

We financed our negative cash flows from operations of $29,097 during the six months ended June 30, 2018, which was due to a net loss of $23,733 offset by a decrease in account payable and accrued expenses of $5,364 through related party borrowings in the same amount.

 

We financed our negative cash flows from operations of $105 during the six months ended June 30, 2017, which was due to a net loss of $5,684 offset by an increase in account payable and accrued expenses of $5,579 through related party borrowings in the same amount.

 

In connection with our potential new business, we may determine to seek to raise funds from the sale of restricted stock or debt securities. We have no agreements to issue any debt or equity securities and cannot predict whether equity or debt financing will become available at terms acceptable to us, if at all.

 

Our limited resources may make it difficult to borrow funds or raise capital. To the extent that debt financing ultimately proves to be available, any borrowing will subject us to various risks traditionally associated with indebtedness, including the risks of interest rate fluctuations and insufficiency of cash flow to pay principal and interest, including debt of an acquired business.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We have not entered into, and do not expect to enter into, financial instruments for trading or hedging purposes.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of disclosure controls and procedures.

 

As of June 30, 2018, the Company’s chief executive officer and chief financial officer conducted an evaluation regarding the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act. Based upon the evaluation of these controls and procedures as provided under the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013), our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this report. Management has identified corrective actions for the weakness and will periodically reevaluate the need to add personnel and implement improved review procedures during fiscal year 2018.

 

 11 
 

 

Changes in internal controls.

 

During the quarterly period covered by this report, no changes occurred in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None.

 

ITEM 1A. RISK FACTORS

 

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1. Description of Business, subheading Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017, which could materially affect our business, financial condition or future results.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURE

 

None.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

(a) The following documents are filed as exhibits to this report on Form 10-Q or incorporated by reference herein. Any document incorporated by reference is identified by a parenthetical reference to the SEC filing that included such document.

 

Exhibit No.   Description
31   Certification of CEO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32   Certification of CEO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 12 
 

 

SIGNATURES

 

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

 

By: /s/ Troy Grogan  
  Troy Grogan  
  Chief Executive Officer and Chief Financial Officer  
     
Date: September 10, 2018  

 

 13 
 

 

EX-31 2 ex31.htm

 

CERTIFICATION

 

I, Troy Grogan, certify that:

 

1. I have reviewed this quarterly report of USA Equity Corp.;

 

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 issuer as of, and for, the periods presented in this report;

 

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

 

5. The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the 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 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 issuer’s internal control over financial reporting.

 

Date: September 10, 2018  
   
/s/ Troy Grogan  
CEO and CFO  

 

 
 

 

EX-32 3 ex32.htm

 

Exhibit 32

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of USA Equity Corp. (the “Company”) on Form 10-Q for the period ended June 30, 2018 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Troy Grogan, CEO and CFO of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 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, as amended; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Troy Grogan  
Troy Grogan  
CEO and CFO  
   
Dated: September 10, 2018  

 

A signed original of this written statement required by Section 906 has been provided to USA Equity Corp. and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 
 

 

 

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Document and Entity Information - shares
6 Months Ended
Jun. 30, 2018
Sep. 10, 2018
Document And Entity Information    
Entity Registrant Name USA EQUITIES CORP.  
Entity Central Index Key 0000856984  
Document Type 10-Q  
Document Period End Date Jun. 30, 2018  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   3,590,135
Trading Symbol USAQ  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2018  
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Consolidated Balance Sheets - USD ($)
Jun. 30, 2018
Dec. 31, 2017
Assets    
Total Assets $ 0 $ 0
Current Liabilities:    
Accounts payable - trade 10,943
Accrued interest expenses 89,895 84,316
Advances from and accruals due to related party 99,541 70,444
Total current liabilities 189,436 165,703
Total long-term liabilities 329,181 329,181
Total liabilities 518,617 494,884
Stockholders' Deficit:    
Preferred stock, 10,000,000 shares authorized, $0.0001 par value; none issued and outstanding
Common stock, 900,000,000 shares authorized, $0.0001 par value; 3,590,135 shares issued and outstanding at June 30, 2018 and 3,588,740 shares issued and outstanding at December 31, 2017 359 359
Additional paid-in capital 720,941 720,941
Accumulated deficit (1,239,917) (1,216,184)
Total stockholders' deficit (518,617) (494,884)
Total liabilities and stockholders' deficit $ 0 $ 0
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.10.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]    
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, shares authorized 900,000,000 900,000,000
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares issued 3,590,135 3,588,740
Common stock, shares outstanding 3,590,135 3,588,740
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Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income Statement [Abstract]        
Revenue
Costs and expenses:        
General and administrative 19,676 19,676 105
Interest 2,805 2,805 5,579 5,579
Total general and administrative expenses 22,481 2,805 25,255 5,684
Net operating loss (22,481) (2,805) (25,255) (5,684)
Forgiveness of debt 1,522 1,522
Income taxes
Net loss $ (20,959) $ (2,805) $ (23,733) $ (5,684)
Basic and diluted net loss $ (0.01) $ (0.00) $ (0.01) $ (0.00)
Weighted average shares outstanding: (Basic and diluted) 3,590,135 3,588,740 3,590,135 3,588,740
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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows used by operating activities    
Net loss $ (23,733) $ (5,684)
Changes in net assets and liabilities:    
Decrease in accounts payable and accrued expenses (5,364) 5,579
Cash flows used in operating activities (29,097) (105)
Cash flows from financing activities:    
Proceeds of related party borrowings 29,097 105
Cash provided by financing activities 29,097 105
Change in cash
Cash - beginning of year
Cash - end of year
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.10.0.1
The Company
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company

Note 1. The Company

 

USA Equities Corp. (the “Company”, “We” or the “Registrant”) was incorporated in Delaware on September 1, 1983. The Company’s Board of Directors approved the name change from American Biogenetic Sciences, Inc. to USA Equities Corp on May 29, 2015. Prior to ceasing its operations in 2002, the Company was engaged in the research, development and production of bio-pharmaceutical products. On September 19, 2002, the Registrant filed for bankruptcy under the U.S. Bankruptcy Code in the U.S. Bankruptcy Court Eastern District of New York. On November 4, 2005, the Company emerged from Bankruptcy Court. On August 13, 2010, the Company’s sole officer/director transferred and assigned his control stock position to an unrelated third party but remained as the Company’s sole executive officer/director. On April 14, 2015, the Company incorporated a wholly-owned subsidiary in Delaware (USA Equity Trust, Inc.) for the purpose of acquiring real estate.

XML 16 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
Going Concern
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

Note 2. Going Concern

 

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses, has negative operational cash flows and has no revenues. The future of the Company is dependent upon Management’s success in its efforts and limited resources to pursue and effect a business combination. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might arise from this uncertainty.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Basis of Presentation

Note 3. Basis of Presentation

 

The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2017. The accounting policies are described in the “Notes to the Financial Statements” in the 2017 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three and six months ended June 30, 2018 and 2017 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.

 

Accounting Policies

 

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

 

Principles of Consolidation: The consolidated financial statements include the accounts of USA Equities Corp and as of April 14, 2015, the accounts of its wholly owned subsidiary USA Equity Trust, Inc. All significant inter-company balances and transactions have been eliminated.

 

Cash and Cash Equivalents: For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. As of June 30, 2018 and December 31, 2017, the Company had no cash and cash equivalents

  

Fair Value of Financial Instruments: ASC #825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of fair value information about financial instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2018. These financial instruments include accounts payable and accrued expenses. Fair values were assumed to approximate carrying values for these financial instruments since they are short-term in nature and their carrying amounts approximate fair values.

 

Earnings Per Common Share: Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options to purchase common stock (only if those options are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of issued and outstanding preferred stock. Due to the net losses reported, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. There were no common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding as of June 30, 2018 and 2017.

 

Income Taxes: The Company accounts for income taxes in accordance with ASC #740, “Accounting for Income Taxes,” which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

 

ASC 740 also clarifies the accounting for uncertainty in tax positions. This guidance prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. There are no uncertain tax positions taken by the Company on its tax returns. Tax years subsequent to 2005 remain open to examination by U.S. federal and state tax jurisdictions.

 

Management of the Company is not aware of any additional needed liability for unrecognized tax benefits at June 30, 2018. The Company has net operating losses of $1,239,917, which begin to expire in 2027. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.

 

Impact of recently issued accounting standards

 

There were no new accounting pronouncements that had a significant impact on the Company’s operating results or financial position.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Convertible Notes to Related Party
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Convertible Notes to Related Party

Note 4. Convertible Notes to Related Party

 

On October 2, 2009, we issued a convertible promissory note in the amount of $76,000 to our sole officer/director. The note bears interest at the rate of 12% per annum until paid or the note and accrued interest is converted into shares of the Company’s common stock at a conversion price of $0.001. The convertible note was issued in consideration of cash advances made and for services provided to the Company by the sole officer/director, who was also the Company’s controlling shareholder. On August 13, 2010, the Company’s sole officer/director transferred and assigned his controlling stock position to an unrelated third party but remained as the Company’s sole executive officer/director. In connection with the August 2010 change in control, the convertible note payable to sole officer/director together with accrued interest was also verbally assigned to the new controlling shareholder. A written agreement was entered into between the Company and the controlling shareholder on December 31, 2013 to assign the $76,000 convertible promissory note to the controlling shareholder. On July 31, 2015, our CFO and control shareholder converted $2,500 in principal amount of this note into 2,500,000 restricted shares of common stock. The Company recorded a loss on conversion of $672,500 during the year ended December 31, 2015 in relation to the conversion of the $2,500 in principal amount. On October 2, 2009, we issued a convertible promissory with a current principal amount of $73,500 to our sole officer/director. The note bears interest at the rate of 12% per annum until paid or the note and accrued interest is converted into shares of the Company’s common stock at a conversion price of $0.001. The maturity date of the note was extended to December 31, 2018. As of June 30, 2018 and December 31, 2017, this note had accumulated $78,510 and $74,184, respectively, in accrued interest.

 

On December 31, 2013, we issued a convertible promissory note in the amount of $255,681 to our controlling shareholder. The note bears interest at the rate of 1% per annum until paid or the note and accrued interest is converted into shares of the Company’s common stock at a conversion price of $0.25 per share. On March 30, 2016, the maturity date of the note was extended to December 31, 2018. As of June 30, 2018 and December 31, 2017, this note had accumulated $11,385 and $10,132, respectively, in accrued interest.

 

In accordance Accounting Standard Codification (“ASC #815”), “Accounting for Derivative Instruments and Hedging Activities”, we evaluated the holder’s non-detachable conversion right provision and liquidated damages clause, contained in the terms governing the note to determine whether the features qualify as an embedded derivative instruments at issuance. Such non-detachable conversion right provision and liquidated damages clause did not need to be accounted as derivative financial instruments.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions
6 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

Note 5. Related Party Transactions

 

Due Related Parties: Amounts due to related parties consist of cash advances received from our controlling shareholder, which items totaled $99,541 at June 30, 2018 and $70,444 at December 31, 2017.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 6. Commitments and Contingencies

 

There are no pending or threatened legal proceedings as of June 30, 2018. The Company has no non-cancellable operating leases.

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Subsequent Events
6 Months Ended
Jun. 30, 2018
Subsequent Events [Abstract]  
Subsequent Events

Note 7. Subsequent Events

 

The Company evaluated its June 30, 2018 interim financial statements for subsequent events and throughout September 10, 2018, the date the financial statements were issued. On August 6, 2018, the Company extended the maturity date of both its convertible notes outstanding to December 31, 2018. There were no other subsequent events that will affect the June 30, 2018 interim financial statements.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation (Policies)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Use of Estimates

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

Principles of Consolidation

Principles of Consolidation: The consolidated financial statements include the accounts of USA Equities Corp and as of April 14, 2015, the accounts of its wholly owned subsidiary USA Equity Trust, Inc. All significant inter-company balances and transactions have been eliminated.

Cash and Cash Equivalents

Cash and Cash Equivalents: For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. As of June 30, 2018 and December 31, 2017, the Company had no cash and cash equivalents

Fair Value of Financial Instruments

Fair Value of Financial Instruments: ASC #825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of fair value information about financial instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2018. These financial instruments include accounts payable and accrued expenses. Fair values were assumed to approximate carrying values for these financial instruments since they are short-term in nature and their carrying amounts approximate fair values.

Earnings Per Common Share

Earnings Per Common Share: Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options to purchase common stock (only if those options are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of issued and outstanding preferred stock. Due to the net losses reported, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. There were no common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding as of June 30, 2018 and 2017.

Income Taxes

Income Taxes: The Company accounts for income taxes in accordance with ASC #740, “Accounting for Income Taxes,” which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

 

ASC 740 also clarifies the accounting for uncertainty in tax positions. This guidance prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. There are no uncertain tax positions taken by the Company on its tax returns. Tax years subsequent to 2005 remain open to examination by U.S. federal and state tax jurisdictions.

 

Management of the Company is not aware of any additional needed liability for unrecognized tax benefits at June 30, 2018. The Company has net operating losses of $1,239,917, which begin to expire in 2027. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.

Impact of Recently Issued Accounting Standards

Impact of recently issued accounting standards

 

There were no new accounting pronouncements that had a significant impact on the Company’s operating results or financial position.

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation (Details Narrative) - USD ($)
6 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2016
Accounting Policies [Abstract]        
Cash and cash equivalents
Income tax likelihood percentage, description greater than 50% likelihood of being realized upon ultimate settlement      
Net operating losses $ 1,239,917      
Net operating losses carryforwards, expire date begin to expire in 2027      
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Convertible Notes to Related Party (Details Narrative) - USD ($)
12 Months Ended
Mar. 30, 2016
Jul. 31, 2015
Oct. 02, 2009
Dec. 31, 2015
Jun. 30, 2018
Dec. 31, 2017
Dec. 31, 2013
Accrued interest         $ 89,895 $ 84,316  
Convertible Promissory Note One [Member] | Written Agreement [Member] | Controlling Shareholder [Member]              
Debt instrument, principal amount             $ 76,000
Convertible Promissory Note One [Member] | Sole Officer/Director [Member]              
Debt instrument, principal amount     $ 76,000        
Debt instrument, interest rate     12.00%        
Debt instrument, conversion price     $ 0.001        
Convertible Promissory Note One [Member] | CFO [Member] | Controlling Shareholder [Member]              
Conversion of debt, amount converted   $ 2,500   $ 2,500      
Loss on conversion of debt       $ 672,500      
Convertible Promissory Note One [Member] | CFO [Member] | Controlling Shareholder [Member] | Restricted Stock [Member]              
Conversion of debt restricted share of common stock   2,500,000          
Convertible Promissory Note Two [Member] | Sole Officer/Director [Member]              
Debt instrument, principal amount     $ 73,500        
Debt instrument, interest rate     12.00%        
Debt instrument, conversion price     $ 0.001        
Debt instrument, maturity date     Dec. 31, 2018        
Accrued interest         78,510 74,184  
Convertible Promissory Note Three [Member] | Controlling Shareholder [Member]              
Debt instrument, principal amount             $ 255,681
Debt instrument, interest rate             1.00%
Debt instrument, conversion price             $ 0.25
Debt instrument, maturity date Dec. 31, 2018            
Accrued interest         $ 11,385 $ 10,132  
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions (Details Narrative) - USD ($)
Jun. 30, 2018
Dec. 31, 2017
Related Party Transactions [Abstract]    
Due to related parties $ 99,541 $ 70,444
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Subsequent Events (Details Narrative) - Subsequent Event [Member]
Aug. 06, 2018
Controlling Shareholder [Member]  
Debt instrument, maturity date Dec. 31, 2018
Sole Officer/Director [Member]  
Debt instrument, maturity date Dec. 31, 2018
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