NOTE 1 – NATURE OF OPERATIONS AND BASIS OF
PRESENTATION
SED
INTELLIGENT HOME INC. was incorporated in the State of Nevada as a
for-profit Company on December 10, 2009 and established a fiscal
year end of January 31st. The Company was organized to enter into
the home equity lease/rent to own business. On December 31, 2013,
the Company’s sole director and officer and nine other
shareholders sold their interest in the Company to Cloud Biz
International Pte, Ltd (“CloudBiz”), a Singapore
corporation. The total number of shares purchased was 15,730 which
represented a 69% interest in the Company (the
“Transaction”). Along with the Transaction, the sole
director and officer resigned and a new officer director was named.
On July 7, 2014 CloudBiz invested $37,000 in the Company. For such
investment, CloudBiz received an additional 74 million shares. In
October 2014, the Company issued 20,534 shares to 30 new investors
for total proceeds of $2,053. On December 22, 2016 Cloudbiz
International Pte. Ltd transferred 74,015,730 common shares to
Singapore eDevelopment Ltd. Such shares are presently owned by SeD
Home International, Inc., a wholly-owned subsidiary of Singapore
eDevelopment Ltd. On March 10, 2017, our board of directors
approved and ratified a change in the Company's fiscal year end
from January 31st to December 31st, effective immediately as
of the date of the board approval. On September 5, 2017, the
Company changed its name to SeD Intelligent Home Inc., and
increased its number of authorized shares to 1,000,000,000 (the par
value per share remains $.001). The Company is currently looking
into potential business plan opportunities, including the potential
to enter into a reverse merger transaction, but has not yet entered
into an agreement.
Going concern
To date the Company has generated no revenues from its business
operations and has incurred operating losses since inception of
$
211,176. The Company requires
additional funding to meet its ongoing obligations and to fund
anticipated operating losses. The ability of the Company to
continue as a going concern is dependent on raising capital to fund
its initial business plan and ultimately to attain profitable
operations. Accordingly, management has concluded that due to these
factors described above, there is substantial doubt as to the
Company’s ability to continue as a going concern through
October 2018. The Company intends to continue to fund its
business by way of private placements and advances from related
parties as may be required. These financial statements do not
include any adjustments relating to the recoverability and
classification of recorded asset amounts, or amounts and
classification of liabilities that might result from this
uncertainty.
Currently we are a shell company. Most of our expenses are audit,
tax and SEC filing expenses, which total approximately $36,000
annually. The Company does not pay salaries or other compensation
to its officers and directors. The Company’s majority
shareholder has provided advances for the Company’s operating
costs as additional paid in capital. We will require additional
advances from our majority shareholders or other parties to
continue operations through October 2018.
Basis of Presentation
The
financial statements present the condensed balance sheets, the
condensed statements of operations, the condensed statement of
stockholders’ deficit and the condensed statements of cash
flows of the Company. These financial statements are presented in
the United States dollars and have been prepared in accordance with
accounting principles generally accepted in the United
States.
Unaudited Financial Statements
The
accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for
financial information and with the instructions to Form 10-Q. They
do not include all information and footnotes required by United
States generally accepted accounting principles for complete
financial statements. However, except as disclosed herein, there
has been no material changes in the information disclosed in the
notes to the financial statements for the year ended December 31,
2016 included in the Company’s Annual Report on Form 10-K
filed with the Securities and Exchange Commission. The unaudited
financial statements should be read in conjunction with those
financial statements included in the Form 10-K. In the opinion of
Management, all adjustments considered necessary for a fair
presentation, consisting solely of normal recurring adjustments,
have been made. Operating results for the nine months ended
September 30, 2017 are not necessarily indicative of the results
that may be expected for the year ending December 31,
2017.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Loss per Common Share
Basic
loss per share is computed by dividing the net loss attributable to
the common stockholders by weighted average number of shares of
common stock outstanding during the period. Fully diluted loss per
share is computed similar to basic loss per share except that the
denominator is increased to include the number of additional common
shares that would have been outstanding if the potential common
shares had been issued and if the additional common shares were
dilutive. There were no dilutive financial instruments issued or
outstanding for the periods ended September 30, 2017 or September
30, 2016.
Income Taxes
The
Company accounts for income taxes pursuant to FASB ASC 740.
Deferred tax assets and liabilities are determined based on
temporary differences between the bases of certain assets and
liabilities for income tax and financial reporting purposes. The
deferred tax assets and liabilities are classified according to the
financial statement classification of the assets and liabilities
generating the differences.
The
Company maintains a valuation allowance with respect to deferred
tax assets. The Company establishes a valuation allowance based
upon the potential likelihood of realizing the deferred tax asset
and taking into consideration the Company’s financial
position and results of operations for the current period. Future
realization of the deferred tax benefit depends on the existence of
sufficient taxable income within the carry-forward period under the
Federal tax laws.
Changes
in circumstances, such as the Company generating taxable income,
could cause a change in judgment about the realizability of the
related deferred tax asset. Any change in the valuation allowance
will be included in income in the year of the change in
estimate.
Fair Value of Financial Instruments
The
Company estimates the fair value of financial instruments using the
available market information and valuation methods. Considerable
judgment is required in estimating fair value. Accordingly, the
estimates of fair value may not be indicative of the amounts the
Company could realize in a current market exchange. As of September
30, 2017 the carrying value of accounts payable-trade and accrued
liabilities approximated fair value due to the short-term nature
and maturity of these instruments.
Estimates
The
financial statements are prepared on the basis of accounting
principles generally accepted in the United States. The preparation
of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities. Actual results could differ from those estimates made
by management.
Recent Accounting Pronouncements
In
August 2016, FASB issued ASU No. 2016-15, “Classification of
Certain Cash Receipts and Cash Payments” (“ASU
2016-15”). ASU 2016-15 clarifies the presentation and
classification of certain cash receipts and cash payments in the
statement of cash flows. ASU 2016-15 is effective for fiscal years,
and interim periods within those years beginning after December 15,
2017. Early adoption is permitted. The Company does not expect the
adoption of ASU No. 2016-15 to have a material impact on its
financial statements.
The
Company has implemented all new accounting pronouncements that are
in effect and that may impact its financial statements and does not
believe that there are any other new accounting pronouncements that
have been issued that might have a material impact on its financial
position or results of operations.
NOTE 3 – CAPITAL STOCK
On
August 28, 2017 the Company increased its authorized shares from
75,000,000 to 1,000,000,000 common shares with a par value of
$0.001 per share. No preferred shares have been authorized or
issued.
On July
7, 2014 CloudBiz invested $37,000 in the Company. For such
investment, CloudBiz received an additional 74 million common
shares. The 74 million common shares were issued below par at a
discount. The discount of $37,000 was recorded as a “discount
on common stock” in equity.
During
October 2014, the Company issued 20,534 common shares to 30
individual investors for total proceeds of $2,053.
In
February of 2016, the Company received an additional $18,000 from
Cloudbiz International Pte. Ltd., its majority shareholder, to
assist the company in paying for operating expenses. The $18,000
was applied to "discount on common stock". In October of 2016, The
Company received an additional $40,000 from Cloudbiz International
Pte. Ltd., its majority shareholder, to assist the Company in
paying for operating expenses. Of the $58,000 of proceeds received
from Cloudbiz International Pte. Ltd, $37,000 were applied to
"discount on common stock" and the remaining proceeds were applied
to additional paid-in-capital.
On
December 22, 2016 Cloudbiz International Pte. Ltd transferred
74,015,730 common shares to Singapore eDevelopment Ltd. Such shares
are presently owned by SeD Home International, Inc., a wholly-owned
subsidiary of Singapore eDevelopment Ltd.
NOTE 4 – RELATED PARTY
On July
20, 2017 the Company borrowed $20,000 from SeD USA, LLC, one of the
subsidiaries of SeD Home International, Inc., to pay for its
operating expenses. This debt does not bear any interest. The
Company expects to repay the debt by the end of 2017.
NOTE 5 – SUBSEQUENT EVENTS
None.