NOTES TO FINANCIAL STATEMENTS
As of September 30, 2016 and 2015
NOTE 1. GENERAL ORGANIZATION AND BUSINESS
Inspired Builders, Inc. (the “Company”)
was incorporated in the State of Nevada in February 2010. Until August 15, 2017 the Company was directing it’s focus on acquiring,
investing in, developing and managing real estate properties and related investments. On August 15, 2017, Inspired Builders (the
“Company”), the majority shareholders of the Company (the “Sellers”) and JJL Capital Management, LLC (the
“Purchaser”) entered into a stock purchase agreement (the “Stock Purchase Agreement”), whereby the Purchaser
purchased from the Sellers 5,643,979 shares of common stock, par value $0.001 per share, of the Company (the “Shares”),
representing approximately 50.73% of the issued and outstanding shares of the Company, for an aggregate purchase price of $564.39
(the “Purchase Price”). On August 16, 2017, the closing of the transaction occurred (“Closing Date”). Pursuant
to the change in control transaction, we relocated to Miami, Florida and ceased all operations as a real estate company. Also,
in connection therewith, Matthew Nordgren, the Company’s sole officer and Director, resigned from his positions and named
Scott Silverman as sole director and to the positions of CEO, CFO, Chief Accounting Officer and Secretary.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Use of Estimates
The preparation of financial statements
in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the
following; estimates of the probability and potential magnitude of contingent liabilities, the valuation allowance for deferred
tax assets due to continuing operating losses, valuation of shares issued in connection with the purchase of real estate, the valuation
of the real estate and the evaluation of any impairment on the real estate.
Making estimates requires management to
exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or
set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate
could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly
from our estimates.
Cash and Cash Equivalents
Cash and cash equivalents are reported
in the balance sheet at cost, which approximates fair value. For the purpose of the financial statements cash equivalents include
all highly liquid investments with an original maturity of three months or less when purchased. There were no cash equivalents
at September 30, 2016 and September 30, 2015.
Earnings (Loss) per Share
In accordance with accounting guidance
now codified as FASB ASC Topic 260, “Earnings per Share,” basic earnings (loss) per share is computed by dividing net
income (loss) by weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss) per
share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents
and potentially dilutive securities outstanding during the period. The Company has 20,833 and 20,833 shares issuable upon conversion
of convertible notes payable that were not included in the computation of dilutive loss per share because their inclusion is anti-dilutive
for the periods ended September 30, 2016 and September 30, 2015, respectively.
Inspired Builders, Inc.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2016 and 2015
Income Taxes
The Company accounts for income taxes in
accordance with generally accepted accounting principles which requires an asset and liability approach to financial accounting
and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between financial
statement and income tax bases of assets and liabilities that will result in taxable income or deductible expenses in the future
based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation
allowances are established when necessary to reduce deferred tax assets and liabilities to the amount expected to be realized.
Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets
and liabilities.
The Company follows the accounting requirements
associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (FASB) ASC 740, Income
Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than
not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification,
interest and penalties, accounting in interim periods, disclosure and transition. As of September 30, 2016, the Company has no
uncertain tax positions that qualify for either recognition or disclosure in the financial statements. All tax returns from fiscal
years 2011 to 2016 are subject to IRS audit.
Fair Value of Financial Investments
The fair value of cash and cash equivalents,
accounts payable, accrued liabilities, and notes payable approximates the carrying amount of these financial instruments due to
their short-term maturity.
Revenue and Cost Recognition
The Company has no current source of revenue;
therefore, the Company has not yet adopted any policy regarding the recognition of revenue or cost.
Recent accounting pronouncements
In May 2014, the Financial Accounting Standards
Board (“FASB”) issued ASU No. 2014-09, which creates Accounting Standards Codification (“ASC”) Topic 606,
“Revenue from Contracts with Customers,” and supersedes the revenue recognition requirements in Topic 605, “Revenue
Recognition,” including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification.
We do not expect the adoption of this standard to have any effect on our financial statements.
In February 2016, the FASB issued ASU No.
2016-02, which creates ASC Topic 842, “Leases.” This update increases transparency and comparability among organizations
by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.
This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. We do not expect the adoption
of this standard to have any effect on our financial statements.
In August 2016, the FASB issued an accounting
standards update which provides additional clarity on the classification of specific events on the statement of cash flows. These
events include: debt prepayment and extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration
payments made after a business combination, proceeds from settlement of insurance claims, distributions received from equity method
investees, and beneficial interests in securitization transactions. The update is effective for annual reporting periods beginning
after December 15, 2017, including interim periods within those annual reporting periods, with early application permitted. The
new accounting standard addresses presentation in the statement of cash flows only and we do not expect the standard to have a
material effect on our financial condition, results of operations, cash flows or financial disclosures.
Inspired Builders, Inc.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2016 and 2015
In May 2017, the FASB issued ASU No. 2017-09,
which amends ASC Topic 718, “Compensation – Stock Compensation”. This amendment provides guidance about which
changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard
is effective beginning after December 15, 2017, with early adoption permitted, including adoption for interim periods. This standard
must be applied prospectively upon adoption. We do not expect the standard to have a material effect on our financial condition,
results of operations, cash flows or financial disclosures.
NOTE 3. GOING CONCERN
As reflected in the accompanying financial
statements, the Company has a net loss of $213,818, an accumulated deficit of $1,239,670 and used net cash in operations of $3,447
for the year ended September 30, 2016. In addition, the Company has not had construction revenues since May 2011 and the only prospect
for positive cash flow is through the issuance of common stock or debt. If the Company does not begin to generate sufficient revenue
or raise additional funds through a financing, the Company may need to incur additional liabilities with certain related parties
to sustain the Company’s existence. There are currently no plans or agreements in place to provide such funding. The Company
will require additional funding to finance the growth of its future operations as well as to achieve its strategic objectives.
This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going
concern is dependent on the Company’s ability to raise additional capital and generate revenue. The financial statements
do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 4. REAL ESTATE
On June 24, 2013, the Company entered
into an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida. The purchase price for
the Duval property was $1,350,000, payable by the Company’s delivery of a $750,000 mortgage at 3%, which was due on June
24, 2014 and has been extended to June 24, 2015. As of today the note is currently past due. The $600,000 balance of the purchase
price was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock. The $0.001 par value
per share was valued by the parties at $6.00 per share, based on the closing price of the stock on the date of the closing. The
note is secured by a lien on the real estate. In accordance with ASC 845-10-S99, transfers of nonmonetary assets for stock or
other consideration of the registrant are recorded at the predecessor cost. Accordingly, the Company recorded the value of the
real estate acquired at the historical basis of $307,504. The Company became aware that there is a real estate tax lien for unpaid
taxes at September 30, 2016 and September 30, 2015 of $23,714 and $25,307, respectively. On July 17, 2017, the Company assigned
all interests in the property to a related party in exchange for an assumption of the mortgage principal and interest of $750,000
and $90,370 respectively, and the real estate taxes payable of $23,714.
NOTE 5. EMPLOYMENT AGREEMENT
On September 1, 2013 the Company entered
into a three-year employment contract with its CEO. The CEO is to be paid $10,000 per month plus reimbursement for expenses and
bonuses as determined by the board. The CEO will be entitled to one week paid vacation and is subject to a one year non-compete
agreement at the end of the employment contract. As of June 30, 2014, the Company has paid the CEO a total of $10,000 and has accrued
$90,000 for amounts due to the CEO. On June 30, 2014 the Company’s CEO converted $90,000 of accrued salary into an unsecured promissory
note. The Note accrues interest at a rate of 5% per annum and is due June 30, 2015. As of September 30, 2016 and September 30,
2015 Company recorded $270,000 and $150,000, respectively of accrued salary. On November 15, 2016, the CEO and the Company entered
into a Release and Settlement Agreement whereby the employment contract was terminated and $290,000 in accrued salary was forgiven.
The accrued salary was accounted for as contributed capital.
Inspired Builders,
Inc.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2016 and 2015
NOTE 6. MORTGAGE PAYABLE – RELATED PARTY
On June 24, 2013, the Company entered into
an agreement with a related party to purchase a parcel of undeveloped land in Duval County, Florida. The purchase price for the
Duval property was $1,350,000, payable by the Company’s delivery of a $750,000 mortgage at 3%, which was due on June 24,
2014 and has been extended to June 24, 2015. As of today the note is currently past due. The $600,000 balance of the purchase price
was paid by approving the issuance to the seller of 100,000 shares of the Company’s common stock. The $0.001 par value per
share was valued by the parties at $6.00 per share, based on the closing price of the stock on the date of the closing. As of September
30, 2016 and September 30, 2015 the Company has accrued interest of $73,603 and $50,979, respectively, due on the mortgage. On
July 17, 2017, the Company assigned all interests in the property to a related party in exchange for an assumption of the mortgage
principal and interest of $750,000 and $90,370 respectively.
NOTE 7. CONVERTIBLE NOTES PAYABLE – RELATED PARTY
On January 24, 2014, a related party loaned
the Company $10,000, which is evidenced by a secured note payable with an interest rate of 12% and a maturity of January 24, 2015.
These funds were used to pay 1 months’ salary to our Chief Executive Officer. If the loan in not repaid by January 24, 2015
it is convertible at the option of the holder into common stock at a share price of $.48 per share. Accrued interest at September
30, 2016 and September 30, 2015 amounted to $3,222 and $2,015, respectively. Subsequently, the related party agreed to extend the
promissory note maturity date to January 24, 2017. On November 15, 2016, the Company and the related party entered into a Release
and Settlement Agreement whereby $10,000 in principal and $3,373 in accrued interest was forgiven. The transaction was accounted
for as contributed capital.
NOTE 8. NOTES PAYABLE – RELATED PARTIES
On January 13, 2012 the Company entered into
a 12-month unsecured promissory note in the amount of $211,000. Interest accrues in arrears on the outstanding principal at the
rate of ten percent (10.00%) per annum. Interest shall be payable on the last day of each quarter, commencing March 30, 2012,
and continuing until the maturity date. Should the maker fail to pay the entire principal and accrued interest by the maturity
date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company
and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014. The loan maturity
dates were further extended to January 13, 2016. On May 22, 2012, the Company borrowed an additional $32,714 from the related
party, with the same terms, the loan maturity dates were extended to January 13, 2016. On September 17, 2012, the Company borrowed
an additional $22,032 from the related party, with the same terms, the loan maturity dates were extended to January 13, 2016.
On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013,
the Company borrowed an additional $30,000 from the related party, with the same terms. The loans maturity dates were further
extended to February 7, 2016 and July 31, 2016, respectively. On December 20, 2013, the Company borrowed $2,500, on January 7,
2014, the Company borrowed $5,000, on February 6, 2014, the Company borrowed $5,520, the loans maturity dates were further extended
to December 20, 2015 and January 7, 2016. On February 17, 2014, the Company borrowed $4,400 and on June 26, 2014, the Company
borrowed $3,080, the loans maturity dates were further extended to February 6, 2016 and February 17, 2016, respectively. Accrued
interest at September 30, 2016 and September 30, 2015, amounted to $145,401 and $111,191, respectively. On November 15, 2016,
the Company and the related party entered into a Release and Settlement Agreement whereby $342,519 in principal and $149,256 in
accrued interest was forgiven. The transaction was accounted for as contributed capital.
On November 13, 2013, a related party entered
into an unsecured note payable for $25,000 with an interest rate of 5% due November 13, 2014, the maturity date on the loan was
further extended to November 11, 2015. Accrued interest at September 30, 2016 and September 30, 2015 amounted to $3,603 and $2,346.
On November 15, 2016, the Company and the related party entered into a Release and Settlement Agreement whereby $25,000 in principal
and $3,760 in accrued interest was forgiven. The transaction was accounted for as contributed capital.
Inspired Builders, Inc.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2016 and 2015
On January 13, 2014 and January 20, 2014,
a related party entered into two unsecured note payables for a total of $25,632 with an interest rate of 5% due January 20, 2015,
the loans maturity dates were further extended to January 13, 2016 and January 20, 2016, respectively. Accrued interest at September
30, 2016 and September 30, 2015 amounted to $6,461 and $4,053. On November 15, 2016, the Company and the related party entered
into a Release and Settlement Agreement whereby $25,632 in principal and $6,763 in accrued interest was forgiven. The transaction
was accounted for as contributed capital.
On June 19, 2014 the Company’s CEO
entered into an unsecured note payable of $30,000 with an interest rate of 10% due on June 19, 2015, the loans maturity was further
ended to June 16, 2016. Accrued interest at September 30, 2016 and September 30, 2015 amounted to $6,855 and $3,838 respectively.
On November 15, 2016, the Company and the related party entered into a Release and Settlement Agreement whereby $30,000 in principal
and $7,233 in accrued interest was forgiven. The transaction was accounted for as contributed capital.
On October 14, 2014 the Company’s
CEO loaned the Company $3,482, which is evidenced by an unsecured note payable with an interest rate of 5% and a maturity of October
13, 2015. Accrued interest at September 30, 2016 and September 30, 2015 amounted to $342 and $167. On November 15, 2016, the Company
and the related party entered into a Release and Settlement Agreement whereby $3,482 in principal and $364 in accrued interest
was forgiven. The transaction was accounted for as contributed capital.
On October 14, 2014 a related party loaned
the Company $3,320, which is evidenced by an unsecured note payable with an interest rate of 5% and a maturity of October 13, 2015.
Accrued interest at September 30, 2016 and September 30, 2015 amounted to $326 and $159. On November 15, 2016, the Company and
the related party entered into a Release and Settlement Agreement whereby $3,320 in principal and $347 in accrued interest was
forgiven. The transaction was accounted for as contributed capital.
On June 30, 2014 the Company’s CEO converted
$90,000 of accrued salary into an unsecured promissory note. The Note accrues interest at a rate of 5% per annum and is due June
30, 2015. Accrued interest at September 30, 2016 and September 30, 2015 was $10,147 and $5,622, respectively. On November 15, 2016,
the CEO and the Company entered into a Release and Settlement Agreement whereby the Note, comprising of $90,000 of principal and
$10,714 of interest was forgiven. The transaction was accounted for as contributed capital.
On February 20, 2015, a related party entered
into an unsecured note payable for $55,000 with an interest rate of 10% due February 20, 2016. Accrued interest as of June 30,
2015 amounted to $2,214. Accrued interest at September 30, 2016 and September 30, 2015 amounted to $8,860 and $3,600. On November
15, 2016, the Company and the related party entered into a Release and Settlement Agreement whereby $55,000 in principal and $9,553
in accrued interest was forgiven. The transaction was accounted for as contributed capital.
NOTE 9. COMMITMENTS AND CONTINGENCIES
From time to time, the Company may become involved in various
lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise that may harm its business. The Company is currently not aware of any
such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse effect on its
business, financial condition or operating results.
NOTE 10. STOCKHOLDERS’ EQUITY
During the year ended September 30, 2016, a related party paid
expenses on behalf of the Company of $3,203.
Inspired Builders, Inc.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2016 and 2015
NOTE 11. CONCENTRATION OF CREDIT RISK
The Company relies heavily on the support of its president and
majority shareholder. A withdrawal of this support, for any reason, will have a material adverse effect on the Company’s
financial position and its operations.
NOTE 12. INCOME TAXES
Provision for income taxes is comprised
of the following:
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
|
|
|
|
|
|
Current tax expense:
|
|
|
|
|
|
|
Federal
|
|
$
|
0
|
|
|
$
|
0
|
|
State
|
|
|
0
|
|
|
|
0
|
|
Total
|
|
$
|
0
|
|
|
$
|
0
|
|
A reconciliation of provision for income taxes at the statutory
rate to provision for income taxes at the Company’s effective tax rate is as follows:
Statutory U.S. federal rate
|
|
|
34
|
%
|
|
|
34
|
%
|
Statutory state income tax
|
|
|
5.83
|
%
|
|
|
5.83
|
%
|
Less valuation allowance
|
|
|
(39.83
|
%)
|
|
|
(39.83
|
%)
|
Effective rate
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
Deferred income taxes are comprised of the following:
|
|
|
|
|
|
|
|
|
Deferred Tax Asset
|
|
$
|
148,538
|
|
|
|
100,737
|
|
Tax loss carryforwards
|
|
|
344,821
|
|
|
|
308,302
|
|
Less valuation allowance
|
|
|
(493,359
|
)
|
|
|
(409,039
|
)
|
Deferred tax benefit
|
|
$
|
0
|
|
|
$
|
0
|
|
As of September 30, 2016 and 2015, the Company net operating
loss carryforward of approximately $$732,600 and $641,000, respectively.
The increase in the valuation allowance
for the years ended September 30, 2016 and 2015 was an increase of $84,320 and $114,001 respectively.
NOTE 13. RELATED PARTY TRANSACTIONS
On January 13, 2012 the Company entered into
a 12-month unsecured promissory note in the amount of $211,000. Interest accrues in arrears on the outstanding principal at the
rate of ten percent (10.00%) per annum. Interest shall be payable on the last day of each quarter, commencing March 30, 2012,
and continuing until the maturity date. Should the maker fail to pay the entire principal and accrued interest by the maturity
date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company
and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014. The loan maturity
dates were further extended to January 13, 2016. On May 22, 2012, the Company borrowed an additional $32,714 from the related
party, with the same terms, the loan maturity dates were extended to January 13, 2016. On September 17, 2012, the Company borrowed
an additional $22,032 from the related party, with the same terms, the loan maturity dates were extended to January 13, 2016.
On February 7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013,
the Company borrowed an additional $30,000 from the related party, with the same terms. The loans maturity dates were further
extended to February 7, 2016 and July 31, 2016, respectively. On December 20, 2013, the Company borrowed $2,500, on January 7,
2014, the Company borrowed $5,000, on February 6, 2014, the Company borrowed $5,520, the loans maturity dates were further extended
to December 20, 2015 and January 7, 2016. On February 17, 2014, the Company borrowed $4,400 and on June 26, 2014, the Company
borrowed $3,080, the loans maturity dates were further extended to February 6, 2016 and February 17, 2016, respectively. Accrued
interest at September 30, 2016 and September 30, 2015, amounted to $145,400 and $111,191, respectively. On November 15, 2016,
the Company and the related party entered into a Release and Settlement Agreement whereby $342,519 in principal and $149,256 in
accrued interest was forgiven. The transaction was accounted for as contributed capital.
Inspired Builders,
Inc.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2016 and 2015
On June 24, 2013, the Company entered into an agreement with
a related party to purchase a parcel of undeveloped land in Duval County, Florida. The purchase price for the Duval property was
$1,350,000, payable by the Company’s delivery of a $750,000 mortgage at 3%, which was due on June 24, 2014 and has been extended
to June 24, 2015. As of today the note is currently past due. The $600,000 balance of the purchase price was paid by approving
the issuance to the seller of 100,000 shares of the Company’s common stock. The $0.001 par value per share was valued by
the parties at $6.00 per share, based on the closing price of the stock on the date of the closing. As of September 30, 2016 and
September 30, 2015 the Company has accrued interest of $73,603 and $50,979, respectively, due on the mortgage. On July 17, 2017,
the Company assigned all interests in the property to a related party in exchange for an assumption of the mortgage principal and
interest of $750,000 and $90,370 respectively.
On November 13, 2013, a related party entered
into an unsecured note payable for $25,000 with an interest rate of 5% due November 13, 2014, the maturity date on the loan was
further extended to November 11, 2015. Accrued interest at September 30, 2016 and September 30, 2015 amounted to $3,603 and $2,346.
On November 15, 2016, the Company and the related party entered into a Release and Settlement Agreement whereby $25,000 in principal
and $3,760 in accrued interest was forgiven. The transaction was accounted for as contributed capital.
On January 13, 2014 and January 20, 2014,
a related party entered into two unsecured note payables for a total of $25,632 with an interest rate of 5% due January 20, 2015,
the loans maturity dates were further extended to January 13, 2016 and January 20, 2016, respectively. Accrued interest at September
30, 2016 and September 30, 2015 amounted to $6,461 and $4,053. On November 15, 2016, the Company and the related party entered
into a Release and Settlement Agreement whereby $25,632 in principal and $6,763 in accrued interest was forgiven. The transaction
was accounted for as contributed capital.
On January 24, 2014, a related party loaned
the Company $10,000, which is evidenced by a secured note payable with an interest rate of 12% and a maturity of January 24, 2015.
These funds were used to pay 1 months’ salary to our Chief Executive Officer. If the loan in not repaid by January 24, 2015
it is convertible at the option of the holder into common stock at a share price of $.48 per share. Accrued interest at September
30, 2016 and September 30, 2015 amounted to $3,225 and $2,015, respectively. Subsequently, the related party agreed to extend the
promissory note maturity date to January 24, 2017. On November 15, 2016, the Company and the related party entered into a Release
and Settlement Agreement whereby $10,000 in principal and $3,373 in accrued interest was forgiven. The transaction was accounted
for as contributed capital.
On June 19, 2014 the Company’s CEO
entered into an unsecured note payable of $30,000 with an interest rate of 10% due on June 19, 2015, the loans maturity was further
ended to June 16, 2016. Accrued interest at September 30, 2016 and September 30, 2015 amounted to $6,855 and $3,838 respectively.
On November 15, 2016, the Company and the related party entered into a Release and Settlement Agreement whereby $30,000 in principal
and $7,233 in accrued interest was forgiven. The transaction was accounted for as contributed capital.
On October 14, 2014 the Company’s CEO loaned the Company $3,482, which is evidenced by an unsecured
note payable with an interest rate of 5% and a maturity of October 13, 2015. Accrued interest at September 30, 2016 and September
30, 2015 amounted to $342 and $167. On November 15, 2016, the Company and the related party entered into a Release and Settlement
Agreement whereby $3,482 in principal and $364 in accrued interest was forgiven. The transaction was accounted for as contributed
capital.
Inspired Builders,
Inc.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2016 and 2015
On October 14, 2014 a related party loaned
the Company $3,320, which is evidenced by an unsecured note payable with an interest rate of 5% and a maturity of October 13, 2015.
Accrued interest at September 30, 2016 and September 30, 2015 amounted to $326 and $159. On November 15, 2016, the Company and
the related party entered into a Release and Settlement Agreement whereby $3,320 in principal and $347 in accrued interest was
forgiven. The transaction was accounted for as contributed capital.
On June 30, 2014 the Company’s CEO converted
$90,000 of accrued salary into an unsecured promissory note. The Note accrues interest at a rate of 5% per annum and is due June
30, 2015. Accrued interest at September 30, 2016 and September 30, 2015 was $10,147 and $5,622, respectively. On November 15, 2016,
the CEO and the Company entered into a Release and Settlement Agreement whereby the Note, comprising of $90,000 of principal and
$10,714 of interest was forgiven. The transaction was accounted for as contributed capital.
On February 20, 2015, a related party entered
into an unsecured note payable for $55,000 with an interest rate of 10% due February 20, 2016. Accrued interest as of June 30,
2015 amounted to $2,214. Accrued interest at September 30, 2016 and September 30, 2015 amounted to $8,860 and $3,600. On November
15, 2016, the Company and the related party entered into a Release and Settlement Agreement whereby $55,000 in principal and $9,553
in accrued interest was forgiven. The transaction was accounted for as contributed capital.
During the year ended September 30, 2016, a related party paid
expenses on behalf of the Company of $3,203.
NOTE 14. SUBSEQUENT EVENTS
On November 15, 2016, our CEO and the Company
entered into a Release and Settlement Agreement whereby an Employment Contract was terminated and $290,000 in accrued salary was
forgiven. The accrued salary was accounted for as contributed capital (See Note 5).
On November 15, 2016, the Company and a
related party entered into a Release and Settlement Agreement whereby a Convertible Note Payable in the amount of $10,000 in principal
and $3,373 in accrued interest was forgiven. The transaction was accounted for as contributed capital (See Note 7).
On November 15, 2016, the Company and a related
party entered into a Release and Settlement Agreement whereby multiple notes payable in the aggregate amounts of $342,519 in principal
and $149,256 in accrued interest were forgiven. The transaction was accounted for as contributed capital (See Note 8).
On November 15, 2016, the Company and a
related party entered into a Release and Settlement Agreement whereby a Note Payable in the amounts of $25,000 in principal and
$3,760 in accrued interest was forgiven. The transaction was accounted for as contributed capital (See Note 8).
On November 15, 2016, the Company and a
related party entered into a Release and Settlement Agreement whereby a Note Payable in the amounts of $25,632 in principal and
$6,763 in accrued interest was forgiven. The transaction was accounted for as contributed capital (See Note 8).
On November 15, 2016, the Company and a
related party entered into a Release and Settlement Agreement whereby a Note Payable in the amounts of $30,000 in principal and
$7,233 in accrued interest was forgiven. The transaction was accounted for as contributed capital (See Note 8)
On November 15, 2016, the Company and CEO
entered into a Release and Settlement Agreement whereby a Note Payable in the amounts of $3,482 in principal and $364 in accrued
interest was forgiven. The transaction was accounted for as contributed capital (See Note 8).
Inspired Builders,
Inc.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2016 and 2015
On November 15, 2016, the Company and a
related party entered into a Release and Settlement Agreement whereby a Note Payable in the amounts of $3,320 in principal and
$347 in accrued interest was forgiven. The transaction was accounted for as contributed capital (See Note 8).
On November 15, 2016, the CEO and the Company
entered into a Release and Settlement Agreement whereby a Note Payable, comprising of $90,000 of principal and $10,714 of interest
was forgiven. The transaction was accounted for as contributed capital (See Note 8).
On November 15, 2016, the Company
and a related party entered into a Release and Settlement Agreement whereby a Note Payable, comprising of $55,000 in principal
and $9,553 in accrued interest was forgiven. The transaction was accounted for as contributed capital (See Note 8).
On July 17, 2017, the Company assigned
all interests in the property owned in Duval County, FL to a related party in exchange for an assumption of the mortgage principal
and interest of $750,000 and $90,370 respectively, and of real estate taxes payable of $23,714 (See Notes 4 and 6).
On August 15, 2017, Inspired Builders
(the “Company”), the majority shareholders of the Company (the “Sellers”) and JJL Capital Management,
LLC (the “Purchaser”) entered into a stock purchase agreement (the “Stock Purchase Agreement”), whereby
the Purchaser purchased from the Sellers 5,643,979 shares of common stock, par value $0.001 per share, of the Company (the “Shares”),
representing approximately 50.73% of the issued and outstanding shares of the Company, for an aggregate purchase price of $564.39
(the “Purchase Price”). On August 16, 2017, the closing of the transaction occurred (“Closing Date”).
Pursuant to the change in control transaction, we relocated to Miami, Florida and ceased all operations as a real estate company.
Also, in connection therewith, Matthew Nordgren, the Company’s sole officer and Director, resigned from his positions and
named Scott Silverman as sole director and to the positions of CEO, CFO, Chief Accounting Officer and Secretary (See Note 1).
On October 17, 2017, a related party loaned
the Company $14,300. The loan is interest free and is payable on demand.
On October 20, 2017, a related party loaned
the Company $825. The loan is interest free and is payable on demand.