NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
December
31, 2017
(Unaudited)
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.
The accompanying unaudited condensed financial statements have been prepared in accordance with accounting
principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission
for interim financial information. Accordingly, they do not include all of the information necessary for a comprehensive presentation
of financial position and results of operations. The unaudited interim financial statements should be read in conjunction with
the financial statements and related notes included in our Annual Report on form 10-K for the year ended September 30, 2017, filed
with the SEC on November 11, 2017. The interim results for the period ended December 31, 2017 are not necessarily indicative of
expected results for the full fiscal year. It is management’s opinion, however that all material adjustments (consisting
of normal recurring adjustments) have been made which are necessary for a fair financial statements presentation.
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 December 31, 2017 and 2016, respectively.
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 0 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 December 31, 2017 and September 30, 2017, respectively.
Inspired
Builders, Inc.
NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
December
31, 2017
(Unaudited)
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 December 31, 2017, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial
statements. All tax returns from fiscal years 2010 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.
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ from those estimates.
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
The
Company has reviewed the Accounting Standards Updates through ASU No. 2016-01 and these updates have no current applicability
to the Company or their effect on the financial statements would not have been significant.
NOTE
3. GOING CONCERN
As
reflected in the accompanying financial statements, the Company has a net loss of $112,539 and a working capital deficit of $86,352
as of December 31, 2017. 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. LOAN PAYABLE – RELATED PARTY
On
October 17, 2017, our CEO loaned the Company $14,300. The loan is interest free and is payable on demand.
On
October 20, 2017, our CEO loaned the Company $825. The loan is interest free and is payable on demand.
Inspired
Builders, Inc.
NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
December
31, 2017
(Unaudited)
NOTE
5. 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. On November 15, 2016, the Company and the related party entered into a Release and Settlement
Agreement whereby $342,519 in principal and $149,258 in accrued interest was forgiven. The transaction was accounted for as contributed
capital. The total outstanding principal at December 31, 2017 and September 30, 2017 amounted to $2,500 and $2,500, respectively.
Accrued interest at December 31, 2017 and September 30, 2017, amounted to $505 and $473, respectively.
NOTE
6. 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 7. SHAREHOLDERS’
EQUITY
On December 18, 2017, the Company
increased its authorized common shares from 50,000,000 shares to 250,000,000.
On December 18, 2017, the Company issued 90,000,000
common shares with a fair value of $90,000 to JJL Capital Management, LLC, a company beneficially owned and controlled by our
CEO for services rendered to the Company by our CEO.
NOTE
8. 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
9. 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. On November 15, 2016, the Company and the related party entered into a Release and Settlement
Agreement whereby $342,519 in principal and $149,258 in accrued interest was forgiven. The transaction was accounted for as contributed
capital. The total outstanding principal at December 31, 2017 and September 30, 2017 amounted to $2,500 and $2,500, respectively.
Accrued interest at December 31, 2017 and September 30, 2017, amounted to $505 and $473, respectively.
On
October 17, 2017, our CEO loaned the Company $14,300. The loan is interest free and is payable on demand.
On
October 20, 2017, our CEO loaned the Company $825. The loan is interest free and is payable on demand.
On December
18, 2017, the Company issued 90,000,000 common shares with a fair value of $90,000 to JJL Capital Management, LLC, a company beneficially
owned and controlled by our CEO for services rendered to the Company by our CEO.
NOTE
10. SUBSEQUENT EVENT
On January
8, 2018, our CEO entered into an unsecured note payable for $3,000 with an interest rate of 0% due upon demand by the holder.
On January
12, 2018, the Company entered into a settlement and release agreement with Anslow & Jaclin, LLP and Richard Anslow to settle
an outstanding legal invoice for a total of $8,000 to be paid when the Company completes a change in control.
On January 25, 2018, our CEO entered into an unsecured note payable for
$109, with an interest rate of 0% due upon demand by the holder.