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All American Sportpark Inc – ‘10-Q’ for 9/30/19 – ‘EX-101.INS’

On:  Thursday, 11/14/19, at 4:54pm ET   ·   For:  9/30/19   ·   Accession #:  1472375-19-69   ·   File #:  0-24970

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

11/14/19  All American Sportpark Inc        10-Q        9/30/19   30:969K                                   Avantafile Syst… Corp/FA

Quarterly Report   —   Form 10-Q   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report for the Period Ended September     HTML    134K 
                30, 2019                                                         
 2: EX-31       Certification -- §302 - SOA'02                      HTML     18K 
 3: EX-32       Certification -- §906 - SOA'02                      HTML     12K 
23: R1          Document and Entity Information                     HTML     58K 
12: R2          Condensed Balance Sheets (Unaudited)                HTML     55K 
18: R3          Condensed Balance Sheets (Parenthetical)            HTML     31K 
29: R4          Condensed Statements of Operations (Unaudited)      HTML     38K 
24: R5          Statements of Changes In Stockholder's Deficit      HTML     29K 
13: R6          Condensed Statements Of Cash Flows                  HTML     52K 
19: R7          Organizational Structure and Basis of Presentation  HTML     24K 
28: R8          Summary Of Significant Accounting Policies          HTML     27K 
25: R9          Going Concern                                       HTML     16K 
20: R10         Related Party Transactions                          HTML     15K 
26: R11         Stockholders' Deficit                               HTML     17K 
15: R12         Subsequent Events                                   HTML     14K 
10: R13         Summary Of Significant Accounting Policies          HTML     60K 
                (Policies)                                                       
21: R14         Organizational Structure and Basis of Presentation  HTML     36K 
                (Details Narrative)                                              
27: R15         Summary Of Significant Accounting Policies          HTML     23K 
                (Details Narrative)                                              
16: R16         Going Concern (Details Narrative)                   HTML     16K 
11: R17         Related Party Transactions (Details Narrative)      HTML     15K 
22: R18         Stockholders' Deficit (Details Narrative)           HTML     48K 
30: XML         IDEA XML File -- Filing Summary                      XML     46K 
17: EXCEL       IDEA Workbook of Financial Reports                  XLSX     25K 
 4: EX-101.INS  XBRL Instance -- aasp-20190630                       XML    189K 
 6: EX-101.CAL  XBRL Calculations -- aasp-20190630_cal               XML     48K 
 7: EX-101.DEF  XBRL Definitions -- aasp-20190630_def                XML     93K 
 8: EX-101.LAB  XBRL Labels -- aasp-20190630_lab                     XML    304K 
 9: EX-101.PRE  XBRL Presentations -- aasp-20190630_pre              XML    237K 
 5: EX-101.SCH  XBRL Schema -- aasp-20190630                         XSD     40K 
14: ZIP         XBRL Zipped Folder -- 0001472375-19-000069-xbrl      Zip     32K 


‘EX-101.INS’   —   XBRL Instance — aasp-20190630


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<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><b>Note 1. Organizational Structure and Basis of Presentation</b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">a. ORGANIZATION</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">On October 18, 2016, All-American Sportpark, LLC (“AASP” or the “Company”) completed the closing of the <font style="font-family: TmsRmn 12pt">Transfer Agreement for the sale and transfer of the Company’s 51% interest in All American Golf Center, Inc. (“AAGC”), which constituted substantially all of the Company’s assets. As a result of the closing of the Transfer Agreement, the Company now has no or nominal operations and no or nominal assets and is therefore considered to be a “Shell Company” as that term is defined in Rule 12b-2 of the Securities Exchange Act </font>of 1934, as amended (the “Exchange Act”)<font style="font-family: TmsRmn 12pt">.</font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 10, 2016, the Company entered into a Transfer Agreement for the sale and transfer of the Company’s 51% interest in All American Golf Center, Inc. (“AAGC”), which constituted substantially all of the Company’s assets.  On October 18, 2016, the Company completed the closing of the Transfer Agreement pursuant to which the Company transferred the 51% interest in AAGC to Ronald Boreta and John Boreta (the “Boretas”), and also issued to the Boretas 1,000,000 shares of the Company’s common stock, in exchange for the cancellation of promissory notes held by the Boretas and accrued interest of $8,864,255.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the closing of the Transfer Agreement, AAGC assumed the obligation of the Company to pay Ronald Boreta for deferred salary of $342,500. In addition, AAGC cancelled $4,267,802 in advances previously made by it to the Company to fund its operations.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Also in connection with the closing of the Transfer Agreement, entities controlled by the Boretas cancelled $1,286,702 owed to them by the Company. In addition, the Company cancelled $24,523 of amounts due from entities controlled by the Boretas.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Also, as a result of the Transfer Agreement, on October 18, 2016, the Company derecognized the assets and liabilities of AAGC.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0">The sale and transfer of the Company’s 51% interest in AAGC to the controlling shareholders of the Company is a common control transaction and recorded at book value. Any difference between the proceeds received by the Company and the book value of assets and liabilities of AAGC, cancellation of promissory notes and accrued interest, assumption of deferred salary, cancellation of amounts due to and due from entities controlled by the Boretas is recognized as a capital transaction with no gain or loss recorded</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0">b. BASIS OF PRESENTATION</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The unaudited condensed interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by All-American SportPark, Inc. (the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these unaudited condensed interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2018 and notes thereto included in the Company's Form 10-K. The Company follows the same accounting policies in the preparation of interim reports.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Results of operations for interim periods may not be indicative of annual results.</p> <p style="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">c. BUSINESS ACTIVITIES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">At this time, the Company’s purpose is to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to the Company by persons or firms who or which desire to seek the perceived advantages of a corporation whose securities are registered pursuant to the Exchange Act. The Company will not restrict our search to any specific business or geographical location.</p>
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<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><b>Note 2</b>. <b>Summary of Significant Accounting Policies</b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">a. USE OF ESTIMATES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, the determination of the provision for income taxes. The Company bases the estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ from those estimates.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">b. CASH AND CASH EQUIVALENTS</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">All highly liquid investments with original maturities of three months or less are classified as cash and cash equivalents. The fair value of cash and cash equivalents approximates the amounts shown on the financial statements. Cash and cash equivalents consist of unrestricted cash in accounts maintained with major financial institutions.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">c. INCOME TAXES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. A valuation allowance is established against deferred tax assets that do not meet the criteria for recognition. In the event the Company were to determine that it would be able to realize deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance which would reduce the provision for income taxes.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company follows the accounting guidance which provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized initially and in subsequent periods. Also included is guidance on measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">d<font style="font-size: 10pt">. </font>STOCK-BASED COMPENSATION</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company accounts for all compensation related to stock, options or warrants in accordance with ASC topic 718 “Compensation- stock compensation” which requires companies to recognize in the statement of operations using a fair value based method whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. The Company uses the Black-Scholes pricing model to calculate the fair value of options and warrants issued to both employees and non-employees. Stock issued for compensation is valued using the market price of the stock on the date of the related agreement.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">e. LEASEHOLD IMPROVEMENTS AND EQUIPMENT</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Leasehold improvements and equipment are stated at cost. Depreciation and amortization is provided for on a straight-line basis over the lesser of the lease term (including renewal periods, when the Company has both the intent and ability to extend the lease) or the following estimated useful lives of the assets:</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 67%; padding: 0.75pt; font: 12pt Times New Roman, Times, Serif; text-align: justify">Furniture and equipment </td> <td style="width: 33%; padding: 0.75pt; font: 12pt Times New Roman, Times, Serif; text-align: justify">3-10 years </td></tr> <tr style="vertical-align: bottom"> <td style="font: 12pt Times New Roman, Times, Serif; padding: 0.75pt; text-align: justify"> </td> <td style="font: 12pt Times New Roman, Times, Serif; padding: 0.75pt; text-align: justify"> </td></tr> </table> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">f. REVENUES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company earned no revenues for the three and nine months ended September 30, 2019 and 2018, respectively.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">g. GENERAL AND ADMINISTRATIVE EXPENSES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">General and administrative expenses consisted principally of management, accounting and other administrative employee payroll and benefits.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">h. IMPAIRMENT OF LONG-LIVED ASSETS</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Long-lived assets, including property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable. If the long-lived asset or group of assets is considered to be impaired, an impairment charge is recognized for the amount by which the carrying amount of the asset or group of assets exceeds its fair value. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">i. FAIR VALUE OF FINANCIAL INSTRUMENTS</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company adopted the ASC-820 “Fair Value Measurement” related to fair value measurement at inception. The standard defines fair value, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The standard applies under other accounting pronouncements that require or permit fair value measurements and, accordingly, does not require any new fair value measurements. The standard clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The recorded values of long-term debt approximate their fair values, as interest approximates market rates. As a basis for considering such assumptions, the standard established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:</p> <ul> <li style="margin: 0pt 0 12pt">Level 1: Observable inputs such as quoted prices in active markets;</li> <li style="margin: 0pt 0 12pt">Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and</li> <li style="margin: 0pt 0 12pt">Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</li> </ul> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">At each of September 30, 2019 and December 31, 2018, the carrying amount of accounts payable and accrued liabilities approximates fair value because of the short term nature of these items..</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">j. EARNINGS (LOSS) PER SHARE</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Basic earnings (loss) per share excludes any dilutive effects of options, warrants, and convertible securities. Basic earnings per share is computed using the weighted average number of shares of common stock and common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is antidilutive. The Company did not have any stock equivalent shares for the nine months ended September 30, 2019 and 2018.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Loss per share is computed by dividing reported net loss by the weighted average number of common shares outstanding during the period. The weighted-average number of common shares used in the calculation of basic loss per share was 5,658,123 for the three and nine months ended September 30, 2019 and September 30, 2018, respectively.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">k. RECENT ACCOUNTING POLICIES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company believes there was no new accounting guidance adopted but not yet effective that either has not already been disclosed in prior reporting periods or is relevant to the readers of the Company’s financial statements.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0; color: #252525">The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change.</p>
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<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><b>Note 3 – Going concern</b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><b> </b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0">As of September 30, 2019, we had an accumulated deficit of $29,029,742. In addition, the Company’s current liabilities exceed its current assets by $295,172 as of September 30, 2019.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company’s management believes that its operations may not be sufficient to fund operating cash needs and debt service requirements over at least the next 12 months. As described in Note 1, the Company’s Board of Directors determined that it was in the best interests of the Company to enter into the Transfer Agreement with the Boretas. The closing of that agreement eliminated nearly all of the debt of the Company. However, the Company has no significant assets and continues to depend on affiliates to provide funds to pay its ongoing expenses. These factors raise substantial doubt about the company’s ability to continue as a going concern within one year after the date that the financials are issued.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0">The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.</p>
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<us-gaap:RelatedPartyTransactionsDisclosureTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><b>Note 4 – Related party transactions</b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><i>Due to related parties</i></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0">Prior to October 18, 2016, the Company’s employees provided administrative/accounting support for three golf retail stores, named Saint Andrews Golf Shop ("SAGS"), Las Vegas Golf and Tennis ("Boca Store") and Las Vegas Golf and Tennis Superstore (“Westside 15 Store”), owned by Ronald Boreta, the Company's President, and his brother, John Boreta, a Director of the Company. The SAGS store is the retail tenant in the Taylor Made Golf Experience.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0">AAGC has advanced funds to pay certain expenses of the Company.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0">At September 30, 2019 and December 31, 2018, the total amounts owed to AAGC were $291,750 and $237,354, respectively.</p>
</us-gaap:RelatedPartyTransactionsDisclosureTextBlock>
<us-gaap:StockholdersEquityNoteDisclosureTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt TmsRmn 12pt; margin: 0; text-align: justify"><b>Note 5 – Stockholders' deficit</b></p> <p style="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">PREFERRED STOCK</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Preferred stock, Series "B", $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of September 30, 2019 and December 31, 2018. The Company’s Board of Directors shall determine the rights, preferences, privileges and restrictions of the preferred stock, including dividends rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of any series.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">COMMON STOCK</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Common stock, $0.001 par value, 50,000,000 shares authorized, 5,658,123 and 5,658,123 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively. There were no shares issued for the three and nine months ended September 30, 2019.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">On August 15, 2017, the Company granted 34,000 shares of restricted common stock to one employee for services. The restricted common stock granted to the employee was valued at $33,660 and will vest as follows: 33% of the shares on January 1, 2018, an additional 33% of the shares on January 1, 2019, and the remaining 34% of the shares on January 1, 2020. The share-based compensation will be amortized ratably over the three year vesting period. The Company recorded share-based compensation expense of $10,596 and $10,575 for the nine months ended September 30, 2019 and 2018, respectively. The Company recorded share-based compensation expense of $3,543 and $3,509 for the three months ended September 30, 2019 and 2018, respectively.</p>
</us-gaap:StockholdersEquityNoteDisclosureTextBlock>
<us-gaap:SubsequentEventsTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><b>Note 6 – Subsequent Events</b></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0">Management has evaluated all subsequent events through the date of the filing and determined that there were none.</p>
</us-gaap:SubsequentEventsTextBlock>
<us-gaap:UseOfEstimates contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">a. USE OF ESTIMATES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, the determination of the provision for income taxes. The Company bases the estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ from those estimates.</p>
</us-gaap:UseOfEstimates>
<us-gaap:CashAndCashEquivalentsPolicyTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">b. CASH AND CASH EQUIVALENTS</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">All highly liquid investments with original maturities of three months or less are classified as cash and cash equivalents. The fair value of cash and cash equivalents approximates the amounts shown on the financial statements. Cash and cash equivalents consist of unrestricted cash in accounts maintained with major financial institutions.</p>
</us-gaap:CashAndCashEquivalentsPolicyTextBlock>
<us-gaap:IncomeTaxPolicyTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">c. INCOME TAXES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. A valuation allowance is established against deferred tax assets that do not meet the criteria for recognition. In the event the Company were to determine that it would be able to realize deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance which would reduce the provision for income taxes.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company follows the accounting guidance which provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized initially and in subsequent periods. Also included is guidance on measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.</p>
</us-gaap:IncomeTaxPolicyTextBlock>
<us-gaap:CompensationRelatedCostsPolicyTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">d<font style="font-size: 10pt">. </font>STOCK-BASED COMPENSATION</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company accounts for all compensation related to stock, options or warrants in accordance with ASC topic 718 “Compensation- stock compensation” which requires companies to recognize in the statement of operations using a fair value based method whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. The Company uses the Black-Scholes pricing model to calculate the fair value of options and warrants issued to both employees and non-employees. Stock issued for compensation is valued using the market price of the stock on the date of the related agreement.</p>
</us-gaap:CompensationRelatedCostsPolicyTextBlock>
<us-gaap:PropertyPlantAndEquipmentPolicyTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">e. LEASEHOLD IMPROVEMENTS AND EQUIPMENT</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Leasehold improvements and equipment are stated at cost. Depreciation and amortization is provided for on a straight-line basis over the lesser of the lease term (including renewal periods, when the Company has both the intent and ability to extend the lease) or the following estimated useful lives of the assets:</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 67%; padding: 0.75pt; font: 12pt Times New Roman, Times, Serif; text-align: justify">Furniture and equipment </td> <td style="width: 33%; padding: 0.75pt; font: 12pt Times New Roman, Times, Serif; text-align: justify">3-10 years </td></tr> </table>
</us-gaap:PropertyPlantAndEquipmentPolicyTextBlock>
<us-gaap:RevenueRecognitionPolicyTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">f. REVENUES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company earned no revenues for the three and nine months ended September 30, 2019 and 2018, respectively.</p>
</us-gaap:RevenueRecognitionPolicyTextBlock>
<us-gaap:SellingGeneralAndAdministrativeExpensesPolicyTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">g. GENERAL AND ADMINISTRATIVE EXPENSES</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">General and administrative expenses consisted principally of management, accounting and other administrative employee payroll and benefits.</p>
</us-gaap:SellingGeneralAndAdministrativeExpensesPolicyTextBlock>
<us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">h. IMPAIRMENT OF LONG-LIVED ASSETS</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Long-lived assets, including property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable. If the long-lived asset or group of assets is considered to be impaired, an impairment charge is recognized for the amount by which the carrying amount of the asset or group of assets exceeds its fair value. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell.</p>
</us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock>
<us-gaap:FairValueOfFinancialInstrumentsPolicy contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">i. FAIR VALUE OF FINANCIAL INSTRUMENTS</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company adopted the ASC-820 “Fair Value Measurement” related to fair value measurement at inception. The standard defines fair value, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The standard applies under other accounting pronouncements that require or permit fair value measurements and, accordingly, does not require any new fair value measurements. The standard clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The recorded values of long-term debt approximate their fair values, as interest approximates market rates. As a basis for considering such assumptions, the standard established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:</p> <ul> <li style="margin: 0pt 0 12pt">Level 1: Observable inputs such as quoted prices in active markets;</li> <li style="margin: 0pt 0 12pt">Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and</li> <li style="margin: 0pt 0 12pt">Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</li> </ul> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">At each of September 30, 2019 and December 31, 2018, the carrying amount of accounts payable and accrued liabilities approximates fair value because of the short term nature of these items.</p>
</us-gaap:FairValueOfFinancialInstrumentsPolicy>
<us-gaap:EarningsPerSharePolicyTextBlock contextRef="From2019-01-01to2019-09-30">
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">j. EARNINGS (LOSS) PER SHARE</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Basic earnings (loss) per share excludes any dilutive effects of options, warrants, and convertible securities. Basic earnings per share is computed using the weighted average number of shares of common stock and common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is antidilutive. The Company did not have any stock equivalent shares for the nine months ended September 30, 2019 and 2018.</p> <p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Loss per share is computed by dividing reported net loss by the weighted average number of common shares outstanding during the period. The weighted-average number of common shares used in the calculation of basic loss per share was 5,658,123 for the three and nine months ended September 30, 2019 and September 30, 2018, respectively.</p>
</us-gaap:EarningsPerSharePolicyTextBlock>
<us-gaap:IncreaseDecreaseInPrepaidExpense contextRef="From2018-01-01to2018-09-30" unitRef="USD" decimals="0"> 40 </us-gaap:IncreaseDecreaseInPrepaidExpense>
<us-gaap:ShareBasedCompensation contextRef="From2019-01-01to2019-09-30" unitRef="USD" decimals="0"> 10596 </us-gaap:ShareBasedCompensation>
<us-gaap:ShareBasedCompensation contextRef="From2018-01-01to2018-09-30" unitRef="USD" decimals="0"> 10575 </us-gaap:ShareBasedCompensation>
<us-gaap:ShareBasedCompensation contextRef="From2019-07-01to2019-09-30" unitRef="USD" decimals="0"> 3543 </us-gaap:ShareBasedCompensation>
<us-gaap:ShareBasedCompensation contextRef="From2018-07-01to2018-09-30" unitRef="USD" decimals="0"> 3509 </us-gaap:ShareBasedCompensation>
</xbrli:xbrl>

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Filing Submission 0001472375-19-000069   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

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