Notes
to Unaudited Condensed Consolidated Financial Statements
(Unaudited)
NOTE
1 - NATURE OF BUSINESS
GiveMePower
Corporation (the “GMPW,” “Company,” “we,” “us” or “our”) operates and manages
a portfolio of real estate and financial services assets and operations to empower black persons in the United States through financial
tools and resources. Givemepower is primarily focused on: (1) creating and empowering local black businesses in urban America; and (2)
creating real estate properties and businesses in opportunity zones and other distressed neighborhood across America. The Company was
incorporated under the laws of the state of, Nevada on June 7, 2001, to sell software geared to end users and developers involved in
the design, manufacture, and construction of engineered products located in Canada and the United States, through its wholly owned Canadian
subsidiary GiveMePower Inc. On December 31, 2019, the company sold one (1) Special 2019 series A preferred share (one preferred share
is convertible 100,000,000 share of common stocks) of the company for an agreed upon purchase price to Goldstein Franklin, Inc., a California
corporation. The Special preferred share controls 60% of the company’s total voting rights. The issuance of the preferred share
to Goldstein Franklin, Inc. gave to Goldstein Franklin, the controlling vote to control and dominate the affairs of the company going
forward.
The
Company’s operating structure did not change as a result of the change of control, however, following the transaction on December
31, 2019, in which Goldstein Franklin, Inc. acquired control of the Company, Goldstein transferred one of its operating subsidiaries,
Alpharidge Capital LLC into GMPW to become one of the Company’s operating subsidiaries.
Alpharidge
Capital LLC (“Alpharidge”) was formed under the laws of the State of California on August 30, 2019. Alpharidge has two distinct
lines of businesses that comprise: (1) a specialty biopharmaceutical holding company focused on building portfolio of real estate investment
properties and equity positions in select companies within select industries; and (2) an event-driven investment management operation
that invests in equities, warrants, bonds and options of public and private companies in America and across the globe.
Prior
to the transaction, the Company sold software geared to end users and developers involved in the design, manufacture, and construction
of engineered products located in Canada and the United States.
On
September 16, 2020, as part of its sales of unregistered securities to Kid Castle Educational Corporation, company related to, and controlled
by GMPW President and CEO, the Company, for $3 in cash and 1,000,000 shares of its preferred stock, acquired 100% interest in, and control
of Community Economic Development Capital, LLC (“CED Capital”), a California Limited Liability Company, and 97% of the issued
and outstanding shares of Cannabinoid Biosciences, Inc. (“CBDX”), a California corporation. This transaction was accounted
for under the Consolidation Method using the variable interest entity (VIE) model wherein the Company consolidates all investees operating
results if the Company expects to assume more than 50% of another entity’s expected losses or gains. The 1,000,000 shares of our
preferred stock sold to Kid Castle Educational Corporation gave to Kid Castle, approximately 87% voting control of Givemepower Corporation.
On
April 21, 2021, the Company sold Cannabinoid Biosciences, Inc. (“CBDX”), a California corporation, to Premier Information
Management, Inc. for $1 in cash. As further consideration pursuant to the stated sales, CBDX returned Kid Castle Educational Inc., the
parent Company of GMPW, the 100,000 shares of KDCE preferred stock and 900,000,000 shares of KDCE common stock that CBDX bought in October
of 2019. Pursuant to the April 21, 2021 transaction, CBDX ceased from being a subsidiary of GMPW, effective April 1, 2021.
The
consolidated financial statements of the Company therefore include its wholly owned subsidiaries of Alpharidge Capital LLC. (“Alpharidge”),
Community Economic Development Capital, LLC. (“CED Capital”), and subsidiaries, in which GiveMePower has a controlling voting
interest and entities consolidated under the variable interest entities (“VIE”) provisions of ASC 810, “Consolidation”
(“ASC 810”), after elimination of intercompany transactions and accounts.
Principles
of Consolidation
The
consolidated financial statements include the accounts of the Company and its subsidiaries, in which the Company has a controlling voting
interest and entities consolidated under the variable interest entities (“VIE”) provisions of ASC 810, “Consolidation”
(“ASC 810”). Inter-company balances and transactions have been eliminated upon consolidation.
ASC
810 requires that the investor with the controlling financial interest should consolidate the investee/affiliate. ASC 810-10 requires
that an equity interest investor consolidates a VIE when it retains an investment in the entity, is considered a variable interest investor
in the entity, and is the primary beneficiary of the entity. An investor in a VIE is a “variable interest beneficiary” when,
per an arrangement’s governing documents, the investor will absorb a portion of the VIE’s expected losses or will receive
a portion of the entity’s “residual returns.” The variable interest beneficiary retaining a controlling financial interest
in the VIE is designated as its “primary beneficiary” and must consolidate the VIE. A variable interest beneficiary retains
a “controlling financial interest” in a VIE when that beneficiary retains the power to direct the activities of the VIE that
have the greatest influence over the VIE’s economic performance and retains an obligation to absorb the VIE’s significant
losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the ASC 810 test above,
Kid Castle Educational Corporation is the primary beneficiary of GiveMePower Corporation (the “VIE”) because Kid Castle retained
a controlling financial interest in the VIE and has the power to direct the activities of the VIE, having the greatest influence over
the VIE’s economic performance and retains an obligation to absorb the VIE’s significant losses and the right to determine
and receive benefits from the VIE.
Because
GiveMePower Corporation is 87% controlled by Kid Castle Educational Corporation, the consolidation rule requires that the Revenue, Assets
and Liabilities recognized and disclosed on the financial statements of GiveMePower Corporation are also recognized and disclosed on
the financial statements of Kid Castle Educational Corporation pursuant to ASC 810.
Current
Business and Organization - Alpharidge
The
Company, through its three wholly owned subsidiaries, Alpharidge Capital, LLC (“Alpharidge”), Malcom Wingate Cush Franklin
LLC (“MWCF”), and Opportunity Zone Capital LLC (“OZC”), seeks to empower black persons in the United States through
financial tools and resources as follows:
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Alpharidge
and OZC Real estate operations – Real estate operations would consist primarily of rental real estate, affordable housing projects,
opportunity zones, other property development and associated HOA activities. OZC development operations would be primarily through
a real estate investment, management and development subsidiary that focuses primarily on the construction and sale of single-family
and multi-family homes, lots in subdivisions and planned communities, and raw land for residential development; and
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MWCF
financial empowerment – MWCF would utilize operate the tools of financial education/training, mergers and acquisitions, private
equity and business lending to invest and empower young black entrepreneurs, seeding their viable business plans and ideas and creating
jobs in their communities. MWCF is primarily focused on: (1) creating and empowering local black businesses in urban America; and
(2) creating real estate in opportunity zones and other distressed neighborhood across America.
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Cash
Management, Opportunistic and Event-Driven Investments: The Company keeps no more than 10% of its total assets in liquid cash
or investments portfolio, which is actively managed by its directors and officers and invest primarily in equity investments on a
long and short basis. The Company’s cash management policy which requires that the Company actively invests its excess cash
into stocks, bonds and other securities is intended to provide the company greater levels of liquidity and current income. The Company
uses proprietary trading models to capitalize on real-time market anomalies and generate ongoing income in the forms similar to hedge
funds. Where necessary, the Company uses seeded entities to pursue real-time market transactions in publicly traded securities including
but not limited to stocks, bonds, options, futures, forex, warrants, and other instruments.
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Alpharidge’s
Entrepreneurship Development Initiative
In
April of 2021, Alpharidge launched its Entrepreneurship Development Initiative which entails: (1) Portfolio – acquiring OTC trading
shells with stop signs and cleaning them up to become Pink Current, then merging them with emerging businesses controlled by Alpharidge-trained
entrepreneurs; and (2) Custodianship – use the custodianship process in Nevada and Delaware to acquire custodianship of abandoned
OTC-trading shells, clean them up to become Pink Current, then merging them with emerging businesses controlled by Alpharidge-trained
entrepreneurs.
On
April 22, 2021, Alpharidge retained a Nevada based Attorney to petition for custodianship of Mondial Ventures, Inc. Alpharidge later
lost the attempt and expensed all related cost as Professional fees – legal. On May 5, 2021, Alpharidge purchase from the open
market, Labwire, Inc., (LBWR) and Waypoint Biomedical, Inc., both of which it brought Pink Current in record time. As at the date
of this reports, Alpharidge’s Entrepreneurship Development Initiative Portfolio has bought also purchase Nano Mobile Healthcare,
Inc. and 3 others to make it 6 shells. The Custodianship has petitioned for MNVN, HMLA, TONR, ECMH, ABWN, FPMI, NTGL, CGUD,
ICOA, SRBT, USWF, NWTT, USBC, WRMA, WWRL, HERF, NRCD, TGMR, ITRX, AFFN, UTDE, AOBI, SRCX, ADCV, DVFI, APWL, CIVX, NHLG, ILIM, CCWF, TMXN,
MNDP, JPEX, SVLT, MTEI, CAMG, CDBT, ERGO, NOUV, ICNM, PRDL, OCLG, ILST and FCGD, altogether 44 petitions filed within 8 weeks. Of the
44, Alpharidge lost, walked-away, or withdrew from 9 petitions.” Cost related to the successful petitions were capitalized on the
Company’s balance sheet as “Entrepreneurship Development” and those related to failed petitions were expensed in the
period incurred as “Professional Fees - legal.”
Current
Business and Organization - CED Capital
Community
Economic Development Capital, LLC. (“CED Capital”), a California limited liability company, is a
specialty real estate holding company for specialized assets including, affordable housing, opportunity zones properties, hemp and cannabis
farms, dispensaries facilities, CBD related commercial facilities, industrial and commercial real estate, and other real estate related
services. CED Capital principal business objective is to maximize returns through a combination of (1) generating good profit
while making substantial social impact, (2) sustainable long-term growth in cash flows from increased rents, and (3) potential long-term
appreciation in the value of its properties from capital gains upon future sale. The Company is engaged primarily in the ownership, operation,
management, acquisition, development and redevelopment of predominantly multifamily housing and specialized industrial properties in
the United States. This strategy includes the following components:
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Owning
Specialized Real Estate Properties and Assets for Income. The Company intends to acquire multifamily housings, economic development
real estate properties. The Company expects to hold acquired properties for investment and to generate stable and increasing rental
income from leasing these properties to licensed growers.
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Owning
Specialized Real Estate Properties and Assets for Appreciation. The Company intends to lease its acquired properties under
long-term, triple-net leases. However, from time to time, the Company may elect to sell one or more properties if the Company believes
it to be in the best interests of its stockholders. Accordingly, the Company will seek to acquire properties that it believes also
have potential for long-term appreciation in value.
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Affordable
Housing. Its motto is: “acquiring distressed/troubled properties, securing generous government subsidies, empowering
low-income families, and generating above-market returns to investors.”
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Preserving
Financial Flexibility on the Company’s Balance Sheet. The Company intends to focus on maintaining a conservative capital
structure, in order to provide us flexibility in financing its growth initiatives.
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NOTE
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
accompanying financial statements have been prepared using the accrual basis of accounting in accordance with generally accepted accounting
principles (“GAAP”) promulgated in the United States of America. Inter-company balances and transactions have been eliminated
upon consolidation.
Principles
of Consolidation
The
Consolidated Financial Statements include the accounts of GiveMePower Corporation and all of its controlled subsidiary companies. All
significant intercompany accounts and transactions have been eliminated. Investments in business entities in which the company does not
have control, but it has the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership)
are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements
of Income from the date of acquisition. The company consolidates variable interest entities if it is deemed to be the primary beneficiary
of the entity. Operating results for variable interest entities in which the company is determined to be the primary beneficiary are
included in the Consolidated Statements of Income from the date such determination is made. For convenience and ease of reference, the
company refers to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income”
throughout the Notes to the Consolidated Financial Statements.
COVID-19
Risks, Impacts and Uncertainties
COVID-19
Risks, Impacts and Uncertainties — the company is subject to the risks arising from COVID-19’s impacts on the residential
real estate industry. The Company’s management believes that these impacts, which include but are not limited to the following,
could have a significant negative effect on its future financial position, results of operations, and cash flows: (i) prohibitions or
limitations on in-person activities associated with residential real estate transactions; (ii) lack of consumer desire for in-person
interactions and physical home tours; and (iii) deteriorating economic conditions, such as increased unemployment rates, recessionary
conditions, lower yields on individuals’ investment portfolios, and more stringent mortgage financing conditions. In addition,
the company has considered the impacts and uncertainties of COVID-19 in its use of estimates in preparation of its consolidated financial
statements. These estimates include, but are not limited to, likelihood of achieving performance conditions under performance-based equity
awards, net realizable value of inventory, and the fair value of reporting units and goodwill for impairment.
In
April 2020, following the government lockdown order, the company asked all employees to begin to work from their homes and the company
also reduced the number of hours available to each of its employees by approximately by approximately 75%. These actions taken in response
to the economic impact of COVID-19 on its business resulted in a reduction of productivity for the three and nine months ended September
30, 2021. All cost related to these actions are included in general and administrative expenses, as these costs were determined to be
direct and incremental.
Cash
and Cash Equivalents
The
Company considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. Negative
cash balances (bank overdrafts) are reclassified on the balance sheet to “Other current liabilities.” The Company has $218,707
and $1,630 in cash and cash equivalents as at September 30, 2021 and December 31, 2020 respectively.
Use
of Estimates and Assumptions
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 certain reported amounts and disclosures. Accordingly, actual results could materially
differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and
in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant
judgment in this process. In addition, other factors may affect estimates, including: expected business and operational changes, sensitivity
and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative
of future trends. This process may result in actual results differing materially from those estimated amounts used in the preparation
of the financial statements.
Acquisitions
of Businesses
We
account for business combinations under the acquisition method of accounting (other than acquisitions of businesses under common control),
which requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair
values. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition
date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement.
Accounting
for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date including our
estimates for intangible assets, contractual obligations assumed, pre-acquisition contingencies, and contingent consideration, where
applicable. In valuing our acquisitions, we estimate fair values based on industry data and trends and by reference to relevant market
rates and transactions, and discounted cash flow valuation methods, among other factors. The discount rates used were commensurate with
the inherent risks associated with each type of asset and the level and timing of cash flows appropriately reflect market participant
assumptions. The primary items that generate goodwill include the value of the synergies between the acquired company and our existing
businesses and the value of the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset.
Acquisition,
Investments and Disposition of Entities under Common Control
Acquisitions
or investments of entities under common control are reflected in a manner similar to pooling of interests. The non-controlling interests,
as applicable, are charged or credited for the difference between the consideration we pay for the entity and the related entity’s
basis prior to our acquisition or investment. Net gains or losses of an acquired entity prior to its acquisition or investment date are
allocated to the non-controlling interests, as applicable. In allocating gains and losses upon the sale of a previously acquired common
control entity, we allocate a gain or loss for financial reporting purposes by first restoring the non-controlling interests, as applicable,
for the cumulative charges or credits relating to prior periods recorded at the time of our acquisition or investment and then allocating
the remaining gain or loss (“Common Control Gains or Losses”) among non-controlling interests, as applicable, in accordance
with their respective ownership percentages. In the case of acquisitions of entities under common control, such Common Control Gains
or Losses are allocated in accordance with their respective ownership partnership percentages.
Investments
Investment
Transactions and Related Investment Income (Loss). Investment transactions of the Investment Funds are recorded on a trade date basis.
Realized gains or losses on sales of investments are based on the first-in, first-out or the specific identification method. Realized
and unrealized gains or losses on investments are recorded in the consolidated statements of operations. Interest income and expenses
are recorded on an accrual basis and dividends are recorded on the ex-dividend date. Premiums and discounts on fixed income securities
are amortized using the effective yield method.
Investments
held by our Investment segment are carried at fair value. Our Investment segment applies the fair value option to those investments that
are otherwise subject to the equity method of accounting.
Valuation
of Investments. Securities of the Investment Funds that are listed on a securities exchange are valued at their last sales price
on the primary securities exchange on which such securities are traded on such date. Securities that are not listed on any exchange but
are traded over-the-counter are valued at the mean between the last “bid” and “ask” price for such security on
such date. Securities and other instruments for which market quotes are not readily available are valued at fair value as determined
in good faith by the Investment Funds.
Foreign
Currency Transactions. The books and records of the Investment Funds are maintained in U.S. dollars. Assets and liabilities denominated
in currencies other than U.S. dollars are translated into U.S. dollars at the rate of exchange in effect at the balance sheet date. Transactions
during the period denominated in currencies other than U.S. dollars are translated at the rate of exchange applicable on the date of
the transaction. Foreign currency translation gains and losses are recorded in the consolidated statements of operations. The Investment
Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in the market prices of securities. Such fluctuations are reflected in net gain (loss) from investment
activities in the consolidated statements of operations.
Fair
Values of Financial Instruments. The fair values of the Investment Funds’ assets and liabilities that qualify as financial
instruments under applicable U.S. GAAP approximate the carrying amounts presented in the consolidated balance sheets.
Securities
Sold, Not Yet Purchased. The Investment Funds may sell an investment they do not own in anticipation of a decline in the fair value
of that investment. When the Investment Funds sell an investment short, they must borrow the investment sold short and deliver it to
the broker-dealer through which they made the short sale. A gain, limited to the price at which the Investment Funds sold the investment
short, or a loss, unlimited in amount, will be recognized upon the cover of the short sale.
Due
From Brokers. Due from brokers represents cash balances with the Investment Funds’ clearing brokers. These funds as well as
fully-paid for and marginable securities are essentially restricted to the extent that they serve as collateral against securities sold,
not yet purchased. Due from brokers may also include unrestricted balances with derivative counterparties.
Due
To Brokers. Due to brokers represents margin debit balances collateralized by certain of the Investment Funds’ investments in securities.
Other
Segments and Holding Company
Investments
in equity and debt securities are carried at fair value with the unrealized gains or losses reflected in the consolidated statements
of operations. For purposes of determining gains and losses, the cost of securities is based on specific identification. Dividend income
is recorded when declared and interest income is recognized when earned.
Stock
Based Compensation
ASC
718 “Compensation - Stock Compensation” which codified SFAS No. 123 prescribes accounting and reporting standards for all
stock-based payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock
appreciation rights, may be classified as either equity or liabilities. Transactions include incurring liabilities, or issuing or offering
to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. The Company
determines if a present obligation to settle the share-based payment transaction in cash or other assets exists. A present obligation
to settle in cash or other assets exists if: (a) the option to settle by issuing equity instruments lacks commercial substance
or (b) the present obligation is implied because of an entity’s past practices or stated policies. If a present obligation
exists, the transaction is recognized as a liability; otherwise, the transaction is recognized as equity.
Share-based
payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements
based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange
for the award, known as the requisite service period (usually the vesting period).
The
Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50
“Equity - Based Payments to Non-Employees” which codified SFAS 123 and the Emerging Issues Task Force consensus in
Issue No. 96-18 (“EITF 96-18”), “Accounting for Equity Instruments that are Issued to Other Than Employees
for Acquiring or in Conjunction with Selling, Goods or Services.” Measurement of share-based payment transactions with non-employees
is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments
issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance
completion date. The company did not record any share-based compensation during three and nine months ended September 30, 2021.
Sale
and Repurchase of Common Stock
Sales
of Common Stock for Cash: We account for common stock sales for cash under the par value method. Common Stock account is credited for
the number of shares sold times the par value per share, and the Paid in Capital account is credited for the remainder.
Treasury
Stock Repurchase: We account for repurchased common stock under the cost method and include such Treasury stock as a component of our
Common shareholders’ equity.
Retirement
of Treasury stock is recorded as a reduction of Common stock and Additional paid-in capital at the time such retirement is approved by
our Board of Directors.
Receivables
from Sale of Stock: Receivables from the sale of capital stock constitute unpaid capital subscriptions and are reported as deductions
from stockholders’ equity, rather than as assets. However, a receivable from the sale of stock to officers or directors may be
reflected as an asset if the receivable was paid in cash before the financial statements were issued and the payment date is disclosed
in a note to the financial statements.
Expenses
of Offering: Specific incremental costs directly attributable to an offering of securities are deferred and applied to the gross proceeds
of the offering through additional paid-in capital. Management salaries and other general and administrative expenses are not included
in costs of an offering. Deferred costs of an aborted offering, which would include a postponement of 90 days or greater, are expensed
in the period incurred.
The
company has no treasury stock and no receivables from sales of stock during three and nine months ended September 30, 2021 and 2020.
Revenue
Recognition
The
Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) 606, Revenue from Contracts with Customers, which requires that five basic steps be followed to recognize revenue:
(1) a legally enforceable contract that meets criteria standards as to composition and substance is identified; (2) performance obligations
relating to provision of goods or services to the customer are identified; (3) the transaction price, with consideration given to any
variable, noncash, or other relevant consideration, is determined; (4) the transaction price is allocated to the performance obligations;
and (5) revenue is recognized when control of goods or services is transferred to the customer with consideration given, whether that
control happens over time or not. Determination of criteria (3) and (4) are based on our management’s judgments regarding the fixed
nature of the selling prices of the products and services delivered and the collectability of those amounts. The adoption of ASC 606
did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded.
The
Company generates revenue primarily from: (1) the sale of homes/properties, (2) commissions and fees charged on each real estate services
transaction closed by our lead agents or partner agents, and (3) sales of trading securities using its broker firm, less original purchase
cost. Net trading revenues primarily consist of revenues from trading securities earned upon completion of trade, net of any trading
fees. A trading is completed when earned and recognized at a point in time, on a trade-date basis, as the Company executes trades. The
Company records trading revenue on a net basis, trading sales less original purchase cost. Net realized gains and losses from securities
transactions are determined for federal income tax and financial reporting purposes on the first-in, first-out method and represent proceeds
on disposition of investments less the cost basis of investments. Sale of real estate properties are recognized at the sales price/amount
and the total cost (including cost of rehabilitations) associated with the property acquisition and rehabilitation are classified in
Cost of Goods Sold (COGS).
During
three and nine months ended September 30, 2021, the Company did recognized revenue of $1,998,489 and $6,040,683 from operations, and
$0 and $62 in dividend income respectively.
Real
Estate
Revenue
Recognition: Revenue from real estate sales and related costs are recognized at the time of closing primarily by specific identification.
We shall account for our leases as follows: (i) for operating leases, revenue is recognized on a straight line basis over the lease term
and (ii) for financing leases (x) minimum lease payments to be received plus the estimated value of the property at the end of the lease
are considered the gross investment in the lease and (y) unearned income, representing the difference between gross investment and actual
cost of the leased property, is amortized to income over the lease term so as to produce a constant periodic rate of return on the net
investment in the lease. We recorded $0.00 and $700,385 in real estate sales for the three and nine months ended September
30, 2021
Alpharidge’s
Entrepreneurship Development Initiative (EDI)
EDI
Program Summary
Alpharidge’s
Entrepreneurship Development Initiative comprises of entrepreneurship and financial capability training that facilitates economic development,
train former-servicemen/veterans to become entrepreneurs, transform and empower at-risk youths, improved economic outcomes for participants,
help low-income families to create jobs for friends and family members, train young low-income persons to become self-sufficiency and
achieve economic independence through financial capability training. Enrolment eligibility is determined at the start. We recruit aspiring
entrepreneurs, focusing specifically on young-persons from low-income backgrounds. Although all Low-income Persons are eligible to participate,
we prioritize veterans in our program enrolment because most of them have been well-trained in the areas of discipline, punctuality,
perseverance, hard-working and patience. Many of the veterans that we have served had faced barriers to employment such as lack of civilian
work skills and experience, length of time out of the labor force, current and/or past histories of physical or emotional disability,
homelessness, and/or lack of resources for engaging in job skills training for today’s job market. Alpharidge work with local business
incubators are in place to provide support infrastructure to growing firms in California, Arizona, Nevada, Georgia and Maryland. Additional
states would be added in the future as EDI grows.
In
April of 2021, Alpharidge launched its Entrepreneurship Development Initiative which entails: (1) Portfolio – acquiring OTC trading
shells with stop signs and cleaning them up to become Pink Current, then merging them with emerging businesses controlled by Alpharidge-trained
entrepreneurs; and (2) Custodianship – use the custodianship process in Nevada and Delaware to acquire custodianship of abandoned
OTC-trading shells, clean them up to become Pink Current, then merging them with emerging businesses controlled by Alpharidge-trained
entrepreneurs.
To
launch its Entrepreneurship Development Initiative, Alpharidge Capital, LLC drew $0.9 million from its $1.5 million LOC with LA Community
Capital. On April 22, 2021, Alpharidge retained a Nevada based Attorney to petition for custodianship of Mondial Ventures, Inc. Alpharidge
later lost the attempt and expensed all related cost as Professional fees – legal. On May 5, 2021, Alpharidge purchase from the
open market, Labwire, Inc., (LBWR) and Waypoint Biomedical, Inc., both of which it has brought Pink Current. As at the date of this reports,
Alpharidge’ Entrepreneurship Development Initiative Portfolio has bought also purchase Nano Mobile Healthcare, Inc. to make it
3 shells. The Custodianship has petitioned for MNVN, HMLA, TONR, ECMH, ABWN, FPMI, NTGL, CGUD, ICOA, SRBT, USWF, NWTT, USBC, WRMA, WWRL,
HERF, NRCD, TGMR, ITRX, AFFN, UTDE, AOBI, SRCX, ADCV, DVFI, APWL, CIVX, NHLG, ILIM, CCWF, TMXN, MNDP, JPEX, SVLT, MTEI, CAMG, CDBT, ERGO,
NOUV, ICNM, PRDL, OCLG, ILST and FCGD, altogether 44 petitions filed within 8 weeks. Of the 44, Alpharidge lost, walked-away, or withdrew
from 9 petitions.” Cost related to the successful petitions were capitalized on the Company’s balance sheet as “Entrepreneurship
Development” and those related to failed petitions were expensed in the period incurred as “Professional Fees - legal.”
EDI
Long-Term Goals
Alpharidge
Capital LLC anticipates its Entrepreneurship Development to be an ongoing business. It expects to generate income and expense cost related
to this line of business.
Accounting
and Reporting for EDI
Costs
are accumulated by shells as follows: (1) legal cost to petition court for custodianship of an abandoned shell; (2) State taxes and fees
to revive or reinstate company into good standing; (3) payment to Transfer agents to clear outstanding balance; and (4) fees paid to
consultants, SEC and OTC Market group for systems access and compliance reporting. The total expenses attracted by each custodianship
or portfolio investments are itemized to the named shell/investment for better cost-recovery analysis. Total accumulated fees are expensed
at the time each shell is sold. As of September 30, 2021, Alpharidge has sold two such shells and expensed the total accumulated costs
related to each shell sold. As of September 30, 2021, EDI stood at $2.945 million comprising of the following:
SCHEDULE OF ENTREPRENEURSHIP DEVELOPMENT CAPITAL
Name
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Descriptions
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Amount
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EDI Capital
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Statutory Equity at cost
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$
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1,435,295
|
|
Compliance filings
|
|
Cash paid to Consultants
|
|
$
|
63,000
|
|
Legal fees
|
|
Cash paid for court filings
|
|
$
|
229,175
|
|
NV Secretary of States
|
|
Cash paid to NV to reinstate
|
|
$
|
793,300
|
|
OTCIQ Access Fees
|
|
Cash paid to OTCM
|
|
$
|
57,000
|
|
Buyouts and Settlements
|
|
Cash paid to previous management
|
|
$
|
238,541
|
|
Transfer Agents
|
|
Cash paid to Transfer Agents
|
|
$
|
157,822
|
|
Entrepreneurship development capital:
The initial equity investment required by the State Statute
to be eligible to seek custodianship of each target, and other additional equity investments is accounted for at cost and booked
into an assets account classified as “Entrepreneurship Development Capital.” Each of these shells is available to
be sold within 12 months.
As
at the date of this report, Alpharidge Capital has successfully cleaned 21 of the 35 shells; paid all the most of the State’s minimum
tax and fees for reinstatement and revival; cleared most of the outstanding balances with the respective shell’s Transfer Agents;
brought the 21 into compliance with the minimum reporting requirements using the alternative reporting systems available through the
OTC Market Groups systems. The remaining 14 are waiting for access to the Edgar filing systems to start making necessary report available
to meet the requirements. Of those 21, Alpharidge Capital has executed definite agreements to sell two of the shells for profit. In addition,
except for minor disagreements of a unique merger clause that is of particular interest to Alpharidge, agreements for the sale of additional
three shells are almost complete. Alpharidge is also incompliance with the Nevada court custodianship process reporting requirements.
As
of September 30, 2021, total value of Investment – Entrepreneurship Development was $2,974,133,
comprising of $0.3
million in capitalized legal fees, $1.4
million statutory equity stake and additional
investments, $0.7
million in State charter reinstatement fees paid,
and $0.5
million in other costs.
Comprehensive
Income
The
Company adopted SFAS No. 130, “Reporting Comprehensive Income,” which requires that an enterprise report, by major components
and as a single total, the changes in equity. The other comprehensive income items result from mark-to-market analysis of the company’s
Marketable Securities. The company has zero other comprehensive income items during three and nine months ended September 30, 2021 and
2020.
Selling,
General and Administrative Expenses
Selling,
general and administrative expenses include general operating expenses, costs incurred for activities which serve securing sales, administrative
and advertising expenses.
Disputed
Liabilities
The
Company is involved in a variety of disputes, claims, and proceedings concerning its business operations and certain liabilities. We
determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably
estimated. We assess our potential liability by analyzing our litigation and regulatory matters using available information. We develop
our views on estimated losses in consultation with outside counsel handling our defense in these matters, which involves an analysis
of potential results, assuming a combination of litigation and settlement strategies. Should developments in any of these matters cause
a change in our determination as to an unfavorable outcome and result in the need to recognize a material accrual, or should any of these
matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on our results
of operations, cash flows and financial position in the period or periods in which such change in determination, judgment or settlement
occurs. As of September 30, 2021 and 2020, the Company has $0 in disputed liabilities on its balance sheet.
Income
Taxes
The
Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, “Accounting for Income
Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current
year; and, (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s
financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation
allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence,
it is more likely than not that some portion or all of the deferred tax assets will not be realized.
ASC
740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or
expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may
be recognized only if it is “more likely than not” that the position is sustainable upon examination, based on its technical
merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than
50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information.
A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a
tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties,
if any, are included as components of income tax expense and income taxes payable.
As
of January 1, 2021, the Company had analyzed its filing positions in each of the federal and state jurisdictions that required the filing
of income tax returns, as well as all open tax years in these jurisdictions. The U.S. federal and California are identified as the “major”
tax jurisdictions. Generally, the Company remains subject to Internal Revenue Service and California Franchise Board examination of our
2018 through 2020 Tax Returns. However, the Company has certain tax attribute carry forwards, which will remain subject to review and
adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes
are utilized.
Management
believed that the income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will
result in a material change to the financial position. Therefore, no reserves for uncertain income tax position have been recorded pursuant
to ASC 740. In addition, the Company not record a cumulative effect adjustment related to the adoption of ASC 740. Related interest and
penalties, if any, are included as components of income tax expense and income taxes payable.
Property
and Equipment
Property
and equipment are stated at cost and consist solely of computer equipment. Depreciation is calculated using the straight-line method
based on the estimated useful lives of the related assets and starts when the asset is available for use as intended by management. When
significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate components
of property, plant and equipment. Land is not depreciated.
The
useful lives of tangible fixed assets are as follows:
SCHEDULE OF USEFUL LIVES OF TANGIBLE FIXED ASSETS
|
●
|
Buildings
|
33
to 50 years
|
|
●
|
Permanent
installations
|
3
to 25 years
|
|
●
|
Machinery
and equipment
|
3
to 14 years
|
|
●
|
Furniture,
fixtures, equipment and vehicles
|
5
to 10 years
|
|
●
|
Leasehold
improvements
|
Over
the term of the lease
|
Gains
and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within “Other operating
income” or “Other operating expenses” in the income statement. Residual values, useful lives and methods of depreciation
are reviewed at each financial year-end and adjusted prospectively, if appropriate. As of September 30, 2021 the company has little property,
equipment and one Crypto Currency mining rig.
Earnings
(Loss) per Share
The
Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on
the face of the annual and interim income statement and requires a reconciliation of the numerator and denominator of the basic EPS computation.
In the accompanying financial statements, basic loss per share is computed by dividing Net income available to common stockholders by
the weighted average number of shares of common stock outstanding during the period. The Company’s dilutive loss per share is computed
by taking basic EPS and adjusting for the assumed issuance of all potentially dilutive securities such as options, warrants, share-based
payments, convertible debt and convertible preferred stock for each period since they were issued. This is calculated by dividing Net
income available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted weighted
average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. On
December 31, 2019, the company sold to Goldstein Franklin, Inc., a California corporation, one (1) Special 2019 series A preferred share
(one preferred share is convertible 100,000,000 share of common stocks) of the company, which controls 60% of the company’s total
voting rights. Similarly, on September 16, 2020, the Company sold 1,000,000 shares of its preferred stock to Kid Castle Educational Corporation,
in exchange for 100% interest in, and control of Community Economic Development Capital, LLC (“CED Capital”). Apart from
the above mentioned preferred shares, the Company has no potentially dilutive securities, such as options or warrants, currently issued
and outstanding during three and nine months ended September 30, 2021.
A
basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of shares outstanding
for the year. Dilutive earnings per share include the effect of any potentially dilutive debt or equity under the treasury stock method,
if including such instruments is dilutive. The Company’s diluted earnings (loss) per share is the same as the basic earnings/loss
per share for the period three and nine months ended September 30, 2021, as there are no potential shares outstanding that would have
a dilutive effect.
SCHEDULE OF EARNINGS (LOSS) PER SHARE
|
|
Three months ended September 30, 2021
|
|
|
Nine months ended September 30, 2021
|
|
Net income
|
|
$
|
79,734
|
|
|
$
|
946,677
|
|
Dividends
|
|
|
|
|
|
$
|
62
|
|
Adjusted Net income attribution to stockholders
|
|
$
|
79,734
|
|
|
$
|
946,677
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of common stock outstanding
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
|
42,724,687
|
|
|
|
42,724,687
|
|
Net income per share
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
$
|
0.0019
|
|
|
$
|
0.0222
|
|
Accumulated
Deficit
As
of September 30, 2021 and December 31, 2020, the Company has accumulated deficit of $5,151,069 and $6,351,470, respectively. This deficit
will expire 20 years from the date the loss was incurred.
Concentrations
of Credit Risk
The
Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents.
The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company maintains cash balances
at financial institutions within the United States which are insured by the Federal Deposit Insurance Corporation (“FDIC”)
up to limits of approximately $250,000. The Company has not experienced any losses with regard to its bank accounts and believes it is
not exposed to any risk of loss on its cash bank accounts. It is possible that at times, the company’s cash and cash equivalents
with a particular financial institution may exceed any applicable government insurance limits. In such situation, the Company’s
management would assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes
that any associated credit risk exposures would be addressed and mitigated.
Fair
Value of Financial Instruments
The
Company’s financial instruments as defined by FASB ASC 825, “Financial Instruments” include cash, trade accounts
receivable, and accounts payable and accrued expenses. All instruments are accounted for on a historical cost basis. The fair value option
gives entities the option to measure eligible financial assets, financial liabilities and firm commitments at fair value (i.e., the fair
value option), on an instrument-by-instrument basis, that are otherwise not permitted to be accounted for at fair value pursuant to the
provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic
825, Financial Instruments. The election to use the fair value option is available when an entity first recognizes a financial
asset or financial liability or upon entering into a firm commitment. Subsequent changes in fair value must be recorded in earnings.
In estimating the fair value for financial instruments for which the fair value option has been elected, we use the valuation methodologies
in accordance to where the financial instruments are classified within the fair value hierarchy as discussed in Note 5, “Fair Value
Measurements.” For our Investment segment, we apply the fair value option to our investments that would otherwise be accounted
under the equity method.
FASB
ASC 820 “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value
in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 establishes
a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
|
●
|
Level
1. Observable inputs such as quoted prices in active markets;
|
|
●
|
Level
2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
|
|
●
|
Level
3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.
|
The
Company’s financial instruments consisted of cash, accounts payable and accrued liabilities, and line of credit. The estimated
fair value of cash, accounts payable and accrued liabilities, due to or from affiliated companies, and notes payable approximates its
carrying amount due to the short maturity of these instruments.
Investment
Investments
and securities purchased, not yet sold consist of equities, bonds, bank debt and other corporate obligations, all of which are reported
at fair value in our consolidated balance sheets. These investments are considered trading securities. In addition, our Investment segment
has certain derivative transactions which are discussed below in “Financial Instruments.”
Investment
Securities (Trading): The Company applied the fair value accounting treatment for trading securities per ASC 320, with unrealized
gains and losses recorded in net income each period. Debt securities classified as trading should be measured at fair value in the currency
in which the debt securities are denominated and remeasured into the investor’s functional currency using the spot exchange rate
at the balance sheet date.
Financial
Instruments
In
the normal course of business, the Investment Funds may trade various financial instruments and enter into certain investment activities,
which may give rise to off-balance-sheet risks, with the objective of capital appreciation or as economic hedges against other securities
or the market as a whole. The Investment Funds’ investments may include futures, options, swaps and securities sold, not yet purchased.
These financial instruments represent future commitments to purchase or sell other financial instruments or to exchange an amount of
cash based on the change in an underlying instrument at specific terms at specified future dates. Risks arise with these financial instruments
from potential counterparty non-performance and from changes in the market values of underlying instruments.
Credit
concentrations may arise from investment activities and may be impacted by changes in economic, industry or political factors. The Investment
Funds routinely execute transactions with counterparties in the financial services industry, resulting in credit concentration with respect
to the financial services industry. In the ordinary course of business, the Investment Funds may also be subject to a concentration of
credit risk to a particular counterparty. The Investment Funds seek to mitigate these risks by actively monitoring exposures, collateral
requirements and the creditworthiness of its counterparties.
The
Investment Funds have entered into various types of swap contracts with other counterparties. These agreements provide that they are
entitled to receive or are obligated to pay in cash an amount equal to the increase or decrease, respectively, in the value of the underlying
shares, debt and other instruments that are the subject of the contracts, during the period from inception of the applicable agreement
to its expiration. In addition, pursuant to the terms of such agreements, they are entitled to receive or obligated to pay other amounts,
including interest, dividends and other distributions made in respect of the underlying shares, debt and other instruments during the
specified time frame. They are also required to pay to the counterparty a floating interest rate equal to the product of the notional
amount multiplied by an agreed-upon rate, and they receive interest on any cash collateral that they post to the counterparty at the
federal funds or LIBOR rate in effect for such period.
The
Investment Funds may trade futures contracts. A futures contract is a firm commitment to buy or sell a specified quantity of a standardized
amount of a deliverable grade commodity, security, currency or cash at a specified price and specified future date unless the contract
is closed before the delivery date. Payments (or variation margin) are made or received by the Investment Funds each day, depending on
the daily fluctuations in the value of the contract, and the whole value change is recorded as an unrealized gain or loss by the Investment
Funds. When the contract is closed, the Investment Funds record a realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it was closed.
The
Investment Funds may utilize forward contracts to seek to protect their assets denominated in foreign currencies and precious metals
holdings from losses due to fluctuations in foreign exchange rates and spot rates. The Investment Funds’ exposure to credit risk
associated with non-performance of such forward contracts is limited to the unrealized gains or losses inherent in such contracts, which
are recognized in other assets and accrued expenses and other liabilities in our consolidated balance sheets.
The
Investment Funds may also enter into foreign currency contracts for purposes other than hedging denominated securities. When entering
into a foreign currency forward contract, the Investment Funds agree to receive or deliver a fixed quantity of foreign currency for an
agreed-upon price on an agreed-upon future date unless the contract is closed before such date. The Investment Funds record unrealized
gains or losses on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into
such contracts and the forward rates at the reporting date.
Furthermore,
the Investment Funds may also purchase and write option contracts. As a writer of option contracts, the Investment Funds receive a premium
at the outset and then bear the market risk of unfavorable changes in the price of the underlying financial instrument. As a result of
writing option contracts, the Investment Funds are obligated to purchase or sell, at the holder’s option, the underlying financial
instrument. Accordingly, these transactions result in off-balance-sheet risk, as the Investment Funds’ satisfaction of the obligations
may exceed the amount recognized in our consolidated balance sheets.
Certain
terms of the Investment Funds’ contracts with derivative counterparties, which are standard and customary to such contracts, contain
certain triggering events that would give the counterparties the right to terminate the derivative instruments. In such events, the counterparties
to the derivative instruments could request immediate payment on derivative instruments in net liability positions.
Derivatives
From
time to time, our subsidiaries enter into derivative contracts, including purchased and written option contracts, swap contracts, futures
contracts and forward contracts. U.S. GAAP requires recognition of all derivatives as either assets or liabilities in the balance sheet
at their fair value. The accounting for changes in fair value depends on the intended use of the derivative and its resulting designation.
For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument,
based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. Gains
and losses related to a hedge are either recognized in income immediately to offset the gain or loss on the hedged item or are deferred
and reported as a component of accumulated other comprehensive loss and subsequently recognized in earnings when the hedged item affects
earnings. The change in fair value of the ineffective portion of a financial instrument, determined using the hypothetical derivative
method, is recognized in earnings immediately. The gain or loss related to financial instruments that are not designated as hedges are
recognized immediately in earnings. Cash flows related to hedging activities are included in the operating section of the consolidated
statements of cash flows. For further information regarding our derivative contracts, see Note 6, “Financial Instruments.”
Marginal
Loan Payable
The
Company entered into a marginal loan agreement as part of its new trading account process in 2019 with brokerage firms, the Company’s
brokerage to continue the purchase of securities and to fund the underfunded balance. The marginal loan payable bears interest at 0%
per annum and interest and unpaid principal balance is payable on the maturity date. The balance of this account as of September 30,
2021 is $0.00.
Leases
As
discussed below, on January 1, 2019, we adopted FASB ASC Topic 842, Leases, using the modified retrospective approach, which does not
require the application of this Topic to periods prior to January 1, 2019. The application of this Topic requires the recognition of
right-of-use assets and related lease liabilities on the balance sheet for operating leases in which we are the lessee beginning in 2019.
Financing leases under current U.S. GAAP are classified and accounted for in substantially the same manner as capital leases under prior
U.S. GAAP and therefore, we do not distinguish between financing leases and capital leases unless the context requires. The determination
of whether an arrangement is or contains a lease occurs at inception. We account for arrangements that contain lease and non-lease components
as a single lease component for all classes of underlying assets. The Company does not have operating and financing leases as of September
30, 2021. The adoption of ASC 842 did not materially impact our results of operations, cash flows, or presentation thereof.
All
Segments and Holding Company
Leases
are classified as either operating or financing by the lessee depending on whether or not the lease terms provide for control of the
underlying asset to be transferred to the lessee. When control transfers to the lessee, we classify the lease as a financing lease. All
other leases are recorded as operating leases. Effective January 1, 2019, for all leases with an initial lease term in excess of twelve
months, we record a right-of-use asset with a corresponding liability in the consolidated balance sheet. Right-of-use assets represent
our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising
from the lease. Right-of-use assets and lease liabilities are recognized at commencement of the lease based on the present value of the
lease payments over the lease term. Right-of-use assets are adjusted for any lease payments made on or before commencement of the lease,
less any lease incentives received. As most of our leases do not provide an implicit rate, we use the incremental borrowing rate with
respect to each of our businesses based on the information available at commencement of the lease in determining the present value of
lease payments. We use the implicit rate when readily determinable. The lease terms used in the determination of our right-of-use assets
and lease liabilities reflect any options to extend or terminate the lease when it is reasonably certain that we will exercise such option.
We and our subsidiaries, independently of each other, apply a portfolio approach to account for the right-of-use assets and lease liabilities
when we or our subsidiaries do not believe that applying the portfolio approach would be materially different from accounting for right-of-use
assets and lease liabilities individually.
Operating
lease costs are recorded as a single expense recognized on a straight-line basis over the lease term. Operating lease right-of-use assets
are amortized for the difference between the straight-line expense less the accretion of interest of the related lease liability. Financing
lease costs consists of interest expense on the financing lease liability as well as amortization of the right-of-use financing lease
assets on a straight-line basis over the lease term.
Real
Estate
Leases
are classified as either operating, sales-type or direct financing by the lessor which are account for in accordance with FASB ASC Topic
842. These assets leased to others are recorded at cost, net of accumulated depreciation, and are included in property, plant and equipment,
net on our consolidated balance sheets. Assets leased to others are depreciated on a straight-line basis over the useful lives of the
assets, ranging from 5 years to 39 years. Lease revenue is recognized on a straight-line basis over the lease term. Cash receipts for
all lease payments received are included in net cash flows from operating activities in the consolidated statements of cash flows.
Current
Holdings of Real Estate Investments:
As
of September 30, 2021, the Company has no available-for-sale real estate properties.
Environmental
Liabilities
We
recognize environmental liabilities when a loss is probable and reasonably estimable. Estimates of these costs are based upon currently
available facts, internal and third-party assessments of contamination, available remediation technology, site-specific costs, and currently
enacted laws and regulations. In reporting environmental liabilities, no offset is made for potential recoveries. Loss contingency accruals,
including those for environmental remediation, are subject to revision as further information develops or circumstances change, and such
accruals can take into account the legal liability of other parties. Environmental expenditures are capitalized at the time of the expenditure
when such costs provide future economic benefits.
Litigation
On
an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very
difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that
we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such
probable loss, if any, can be made. In assessing probable losses, we make estimates of the amount of insurance recoveries, if any. We
accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties
related to the eventual outcome of litigation and potential insurance recovery, it is possible that certain matters may be resolved for
amounts materially different from any provisions or disclosures that we have previously made.
Lending
Investments
The
company intends to invest through loans and equity in targeted community-anchored businesses, properties and other viable assets. These
investments and loans are short-term and long-term in nature. The firm makes investments in debt securities and loans, public and private
equity securities, and real estate. As at September 30, 2021, the Company owns and holds no investments.
Research
and Development
Research
and development costs are expensed as incurred.
Related
Parties
The
Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure
of related party transactions. Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for
which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option
Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit
of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners
of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly
influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from
fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies
of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other
to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.
The
financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense
allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the
preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the
nature of the relationship(s) involved b. description of the transactions, including transactions to which no amounts or nominal amounts
were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding
of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which
income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding
period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent,
the terms and manner of settlement.
Related
Party Transactions
Affiliate
Receivables and Payables
The
Company considers its officers, managing directors, employees, significant shareholders and the Portfolio Companies to be affiliates.
In addition, companies controlled by any of the above named is also classified as affiliates. As at September 30, 2021 and December 31,
2020, the Company’s controlling firm and significant stockholder advanced $903,248
and $604,156
respectively, to the Company for working capital.
These advances are non-interest bearing and payable on demand. Details of Due from Affiliates and Due to Affiliates were comprised of
the following:
SCHEDULE OF AFFILIATE RECEIVABLES AND PAYABLES
|
|
September 30, 2021
|
|
|
December 31, 2020
|
|
Due from Affiliates
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Due to Affiliates
|
|
|
|
|
|
|
|
|
Due to Goldstein Franklin who have been lending operating capital to the company
|
|
$
|
0
|
|
|
$
|
63,632
|
|
Due to Los Angeles Community Capital – advance used to acquire Investment Real Estate and Entrepreneurship Development
|
|
|
903,248
|
|
|
|
540,524
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
903,248
|
|
|
$
|
604,156
|
|
Affiliate
Receivables and Payables - Other Accrued Liabilities
Other
accrued liabilities entail licensing fees owed to Poverty Solutions, Inc., a control entity that owns 11.70%
of the outstanding shares of Company’s
common stock. The related party is a California nonprofit corporation that specialized in developing and deploying programs that help
low-income persons and families to divest poverty, through affordable housing, real estate development, financial capability training,
venture capital initiatives, private equity operations, and algorithmic trading models designs. The transaction is arm-length and 20/80
distribution is standard practice in the hedge-fund and private-equity industry.
NOTE
3 - INCOME TAXES
As
of September 30, 2021 and December 31, 2020, the Company had a net operating loss carry forward of $5,151,069
and $6,351,470
respectively, which may be available to reduce
future years’ taxable income through 2040. The company uses the tax rate of 38.5%
for tax-assets estimates.
The
provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision
for income taxes. The sources and tax effects of the differences for the periods presented are as follows:
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION
|
|
Percent
|
|
|
30-Sep-21
|
|
|
31-Dec-20
|
|
|
|
|
|
|
|
|
|
|
|
Federal statutory rates
|
|
|
34
|
%
|
|
$
|
(1,751,363
|
)
|
|
$
|
(2,159,500
|
)
|
State income taxes
|
|
|
5
|
%
|
|
|
(257,553
|
)
|
|
|
(317,573
|
)
|
Permanent differences
|
|
|
-0.5
|
%
|
|
|
25,755
|
|
|
|
31,757
|
|
Valuation allowance against net deferred tax assets
|
|
|
-38.5
|
%
|
|
|
1,983,161
|
|
|
|
2,445,316
|
|
Effective rate
|
|
|
0
|
%
|
|
$
|
-
|
|
|
$
|
-
|
|
At
September 30, 2021 and December 31, 2020, the significant components of the deferred tax assets are summarized below:
SCHEDULE OF DEFERRED TAX ASSETS
|
|
30-Jun-21
|
|
|
31-Dec-20
|
|
Deferred income tax asset
|
|
|
|
|
|
|
|
|
Net operation loss carryforwards
|
|
|
5,151,069
|
|
|
|
6,351,470
|
|
Total deferred income tax asset
|
|
|
1,983,161
|
|
|
|
2,445,316
|
|
Less: valuation allowance
|
|
|
(1,983,161
|
)
|
|
|
(2,445,316
|
)
|
Total deferred income tax asset
|
|
$
|
-
|
|
|
$
|
-
|
|
Realization
of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and
carry-forwards are expected to be available to reduce taxable income. Due to the change in ownership provisions of the Income Tax laws
of the United States, the 2021 and December 31, 2020 net operating loss carry forwards of $5,151,069
and $6,351,470
respectively, for federal income tax reporting
purposes may be subject to annual limitations. As the realization of required future taxable income is uncertain, the Company recorded
a valuation allowance.
NOTE
4 – RECENTLY ACCOUNTING PRONOUNCEMENTS
Adoption
of New Accounting Standards
Lease
Accounting Standards Updates
In
February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which supersedes FASB
ASC Topic 840, Leases. This ASU requires the recognition of right-of-use assets and lease liabilities by lessees for those leases classified
as operating leases under previous guidance. In addition, among other changes to the accounting for leases, this ASU retains the distinction
between finance leases and operating leases. The classification criteria for distinguishing between financing leases and operating leases
are substantially similar to the classification criteria for distinguishing between capital leases and operating leases under previous
guidance. Furthermore, quantitative and qualitative disclosures, including disclosures regarding significant judgments made by management,
will be required. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal
years. The amendments in this ASU should be applied using a modified retrospective approach. In addition, in July 2018, the FASB issued
ASU 2018-11, Leases (Topic 842), which provides an additional (and optional) transition method to adopt the new leases standard. We adopted
the new leases standards using the new transition method option effective January 1, 2019, which required a cumulative-effect adjustment
recognized in equity at such date. No adjustment to prior period presentation and disclosure were required. The adoption of this standard
did not have a significant impact on our consolidated financial statements.
Other
Accounting Standards Updates
In
March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which amends FASB ASC Sub-Topic
310-20, Receivables-Nonrefundable Fees and Other Costs. This ASU amends the amortization period for certain purchased callable
debt securities held at a premium by shortening the amortization period for the premium to the earliest call date. This ASU is effective
for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We have adopted this standard on January
1, 2019 using the modified retrospective application method. The adoption of this standard did not have a significant impact on our consolidated
financial statements.
In
August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which amends FASB ASC Topic
815, Derivatives and Hedging. This ASU includes amendments to existing guidance to better align an entity’s risk management activities
and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging
relationships and the presentation of hedge results. This ASU is effective for fiscal years beginning after December 15, 2018, and interim
periods within those fiscal years. We have adopted this standard on January 1, 2019. The adoption of this standard did not have a significant
impact on our consolidated financial statements.
In
February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,
which amends FASB ASC Topic 220, Income Statement - Reporting Comprehensive Income. This ASU allows a reclassification out of
accumulated other comprehensive loss within equity for standard tax effects resulting from the Tax Cuts and Jobs Act and consequently,
eliminates the stranded tax effects resulting from the Tax Cuts and Jobs Act. This ASU is effective for fiscal years beginning after
December 15, 2018, and interim periods within those fiscal years. The adoption of this standard did not have a significant impact on
our consolidated financial statements.
Recently
Issued Accounting Standards
In
June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which amends FASB ASC Topic 326,
Financial Instruments - Credit Losses. In addition, in May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief,
which updates FASB ASU 2016-13. These ASU’s require financial assets measured at amortized cost to be presented at the net amount
to be collected and broadens the information, including forecasted information incorporating more timely information, that an entity
must consider in developing its expected credit loss estimate for assets measured. These ASU’s are effective for fiscal years beginning
after December 15, 2019, including interim periods within those fiscal years. Early application is permitted for fiscal years beginning
after December 15, 2018. Most of our financial assets are excluded from the requirements of this standard as they are measured at fair
value or are subject to other accounting standards. In addition, certain of our other financial assets are short-term in nature and therefore
are not likely to be subject to significant credit losses beyond what is already recorded under current accounting standards. As a result,
we currently do not anticipate this standard to have a significant impact on our consolidated financial statements.
In
August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements,
which amends FASB ASC Topic 820, Fair Value Measurements. This ASU eliminates, modifies and adds various disclosure requirements
for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those
fiscal years. Certain disclosures are required to be applied using a retrospective approach and others using a prospective approach.
Early adoption is permitted. The various disclosure requirements being eliminated, modified or added are not significant to us. As a
result, we currently do not anticipate this standard to have a significant impact on our consolidated financial statements.
In
August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement
That is a Service Contract, which amends FASB ASC Subtopic 350-40, Intangibles-Goodwill and Other-Internal-Use Software. This
ASU adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements.
The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract
with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements
that include an internal-use software license). This ASU is effective for fiscal years beginning after December 15, 2019, and interim
periods within those fiscal years. The amendments in this ASU should be applied either using a retrospective or prospective approach.
Early adoption is permitted. We currently do not anticipate this standard to have a significant impact on our consolidated financial
statements.
In
August 2014, the FASB issued ASU 2014-15 on “Presentation of Financial Statements Going Concern (Subtopic 205-40) –
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. Currently, there is no guidance
in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to
continue as a going concern or to provide related footnote disclosures. The amendments in this update provide such guidance. In doing
so, the amendments are intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management
to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently
in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation
every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s
plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans,
(5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a
period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update
are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted. We currently
do not anticipate this standard to have a significant impact on our consolidated financial statements.
In
January 2013, the FASB issued ASU No. 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting
Assets and Liabilities.” This ASU clarifies that the scope of ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures
about Offsetting Assets and Liabilities.” applies only to derivatives, repurchase agreements and reverse purchase agreements,
and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in
FASB Accounting Standards Codification or subject to a master netting arrangement or similar agreement. The amendments in this ASU are
effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. We currently do not anticipate
this standard to have a significant impact on our consolidated financial statements.
In
February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive Income.” The ASU adds new disclosure requirements for items reclassified out of accumulated
other comprehensive income by component and their corresponding effect on net income. The ASU is effective for public entities for fiscal
years beginning after December 15, 2013. We currently do not anticipate this standard to have a significant impact on our consolidated
financial statements.
In
February 2013, the Financial Accounting Standards Board, or FASB, issued ASU No. 2013-04, “Liabilities (Topic 405): Obligations
Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date.”
This ASU addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several arrangements
including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for public
entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. We currently do not anticipate
this standard to have a significant impact on our consolidated financial statements.
In
March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative
Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in
a Foreign Entity.” This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a
part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets
that is a nonprofit activity or a business within a foreign entity. The guidance outlines the events when cumulative translation adjustments
should be released into net income and is intended by FASB to eliminate some disparity in current accounting practice. This ASU is effective
prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. We currently do not anticipate
this standard to have a significant impact on our consolidated financial statements.
In
March 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.”
The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent.
Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation
is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution
of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary
bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for
example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation
differs from the plan for liquidation that was specified at the entity’s inception. The amendments require financial statements
prepared using the liquidation basis of accounting to present relevant information about an entity’s expected resources in liquidation
by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. The entity should include in its presentation
of assets any items it had not previously recognized under U.S. GAAP but that it expects to either sell in liquidation or use in settling
liabilities (for example, trademarks). The amendments are effective for entities that determine liquidation is imminent during annual
reporting periods beginning after December 15, 2013, and interim reporting periods therein. We currently do not anticipate this standard
to have a significant impact on our consolidated financial statements.
We
have reviewed all the recently issued, but not yet effective, accounting pronouncements. Management does not believe that any recently
issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting
pronouncements are issued, we will adopt those that are applicable under the circumstances.
NOTE
5 - STOCKHOLDERS’ EQUITY
The
Company is authorized to issue 50,000,000 shares of common stock, $0.001 par value and 10,000,000 preferred stocks, $0.001 par value.
Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they chose to do so, elect
all of the directors of the Company.
As
of September 30, 2021 and 2020, there were 42,724,687
shares of common stock respectively, issued and outstanding held by 407 stockholders of record. The company had no transactions in
its common stock during three and nine months ended September 30, 2021 and 2020. As of September 30, 2021, there were 1,000,001
and 1
share of preferred stock issued and outstanding held by 2 stockholder of record.
Minority
Interest
Noncontrolling
interests in consolidated subsidiaries in the consolidated balance sheets represent minority stockholders’ proportionate share
of the equity (deficit) in such subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. As at
September 30, 2021 there is zero minority shareholders and zero minority shareholders’ interest reflected in the
equity section of the balance sheet.
NOTE
6 – GOING CONCERN
The
Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable
to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The
ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses
until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. As at September
30, 2021, the Company had sufficient capital to sustain its operation for the next 24 months.
Management
intends to focus on raising additional funds for the following months and quarters going forward. We cannot provide any assurance or
guarantee that we will be able to generate significant revenues. Potential investors must be aware that if the Company were unable to
raise additional funds through its operation and the sale of our common stock and generate sufficient revenues, any investment made into
the Company could be lost in its entirety.
The
Company has net has accumulated deficit for the years ended September 30, 2021 and December 31, 2020 of $5,151,069 and $6,351,470 respectively.
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described
in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial
statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE
7 – LONG TERM LOAN
As
at September 30, 2021, the Company has only related party long term loan, which is discussed in Note 9 under Related Parties Line of
Credit.
NOTE
8 - RELATED PARTY TRANSACTIONS
The
managing member, CEO and director of the Company is involved in other business activities and may, in the future, become involved in
other business opportunities. If a specific business opportunity becomes available, he may face a conflict in selecting between the Company
and his other business interests. The Company is formulating a policy for the resolution of such conflicts.
The
Company had the following related party transactions:
|
●
|
Line
of Credit – On September 15, 2019, the Company entered into a line of credit agreement in the amount of $41,200 with Goldstein
Franklin, Inc. which is owned and operated by Frank I. Igwealor, Chief Executive Officer of the Company. The maturity date of the
line of credit is February 15, 2020. The line of credit agreement was amended to the amount of $190,000 and maturity date of September
14, 2022. The line of credit bears interest at 0% per annum and interest and unpaid principal balance is payable on the maturity
date. As of September 30, 2021, the Company had repaid the entire balance on the LOC.
|
|
|
|
|
●
|
Line
of credit - On May 5, 2020, the Company entered into a line of credit agreement in the amount of $ with Los Angeles Community
Capital, which is owned and operated by Frank I. Igwealor, Chief Executive Officer of the Company. The maturity date of the line
of credit is . The line of credit bears interest at per annum and interest and unpaid principal balance is payable
on the maturity date. The Company has drawn $ from the line of credit as of September 30, 2021.
|
|
|
|
|
●
|
Long-term
liabilities – Effective December 31, 2020, Alpharidge Capital LLC entered a proprietary model licensing agreement, pursuant
it would pay certain percent of such revenue generated by designated activities to Poverty Solutions Inc. As at September 30, 2021,
pursuant to the agreement, the Company has accrued a total of $1,382,374
long term liability payable to the entity
that also controls 11.70%
of the Company’s voting common stock and voting control.
|
The
company’s principal shareholder has advanced the Company most of the money it uses to fund working capital expenses. This advance
is unsecured and does not carry an interest rate or repayment terms. As of September 30, 2021 and December 31, 2020, the Company has
$903,248 and $540,524, respectively, in long-term loans obligation from related parties.
The
Company does not own any property. It currently shares a leased office with two other organizations that are affiliated to its principal
shareholder at 370 Amapola Ave., Suite 200A, Torrance, California 90501. Its principal shareholder and seasonal staff use this location.
The approximate cost of the shared office space varies between $650 and $850 per month.
NOTE
9 – LINE OF CREDIT – RELATED PARTY
The
Company considers its founders, managing directors, employees, significant shareholders, and the portfolio Companies to be affiliates.
In addition, companies controlled by any of the above named is also classified as affiliates.
Line
of credit from related party consisted of the following:
SCHEDULE OF LINE OF CREDIT RELATED PARTY
|
|
September 30, 2021
|
|
|
December 31, 2020
|
|
September 2019 (line of credit)
- Line of
credit with maturity date of September 14, 2022 with 0% interest per annum with unpaid principal balance and accrued interest payable
on the maturity date.
|
|
$
|
0
|
|
|
$
|
63,632
|
|
May 20, 2020 (line of credit)
Line of credit with maturity date of May 4, 2025 with 0% interest per annum with unpaid principal balance and accrued interest
payable on the maturity date.
|
|
|
903,248
|
|
|
|
540,524
|
|
Total Line of credit - related party
|
|
|
903,248
|
|
|
|
604,156
|
|
Less: current portion
|
|
|
|
|
|
|
(63,632
|
)
|
Total Long-term Line of credit - related party
|
|
$
|
903,248
|
|
|
$
|
540,524
|
|
Goldstein
Franklin, Inc. - $190,000 line of credit
On
February 28, 2020, the Company amended its line of credit agreement to increase it to the amount of $190,000 with maturity date of September
14, 2022. The line of credit bears interest at 0% per annum and interest and unpaid principal balance is payable on the maturity date.
As of September 30, 2021, the Company had $0 balance due on this LOC.
Los
Angeles Community Capital - $1,500,000 line of credit
On
May 5, 2020, the Company amended its line of credit agreement to increase it to the amount of $ with maturity date of . The line of credit bears interest at per annum and interest and unpaid principal balance is payable on the maturity date.
Other
accrued liabilities entail licensing fees owned to Poverty Solutions, Inc., a control entity. The related party is a California nonprofit
corporation that specialized in developing and deploying programs that help low-income persons and families to divest poverty, through
affordable housing, real estate development, financial capability training, venture capital initiatives, private equity operations, and
algorithmic trading models designs. The transaction is arm-length and 20/80 distribution is standard practice in the hedge-fund and private-equity
industry.
10.
SALES – INVESTMENT PROPERTY
Sales
and other disposition of properties from Real Estate Investments holdings:
SCHEDULE
OF REAL ESTATE INVESTMENTS SALES
Dispositions
|
|
30-Sep-21
|
|
|
31-Dec-20
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
|
|
|
|
Sales - Investment property
|
|
$
|
700,385
|
|
|
$
|
1,205,000
|
|
Cost:
|
|
|
|
|
|
|
|
|
Closing costs
|
|
|
|
|
|
|
(11,522
|
)
|
Commissions Paid
|
|
|
(35,019
|
)
|
|
|
(60,645
|
)
|
Developer Fees
|
|
|
|
|
|
|
(95,750
|
)
|
Escrow & Title
|
|
|
(3,617
|
)
|
|
|
(6,714
|
)
|
Investment property sold
|
|
|
(674,846
|
)
|
|
|
(917,825
|
)
|
Mortgage Payoff
|
|
|
|
|
|
|
(51,879
|
)
|
Property Taxes
|
|
|
(1,386
|
)
|
|
|
(20,064
|
)
|
Recording Charges
|
|
|
(4,213
|
)
|
|
|
(7,048
|
)
|
Seller Credit
|
|
|
|
|
|
|
(8,380
|
)
|
Miscellaneous Debits/Credits
|
|
|
(3,261
|
)
|
|
|
(8,380
|
)
|
Total costs
|
|
|
(722,341
|
)
|
|
|
(1,179,827
|
)
|
|
|
|
|
|
|
|
|
|
Gain on real estate investment sales
|
|
$
|
(21,956
|
)
|
|
$
|
25,173
|
|
NOTE
11 – COMMITMENTS AND CONTINGENCIES
The
Company has no real property and do not presently owned any interests in real estate. 30% of the total office space was allocated for
its office use and the rent would be shared with two other related organizations controlled by the director. At present, there is no
written lease with the landlord and the rent is on a month-to-month basis. The Company’s executive, administrative and operating
offices are located at 370 Amapola Ave., Suite 200A, Torrance, California 90501. Its principal shareholder and seasonal staff use this
location. The approximate cost of the shared office space varies between $650 and $850 per month. The Company intends to start recording
rent expense of $7,800 for the year that would end December 31, 2022. Management believed that the current facilities are adequate and
that any additional suitable space will be available as maybe required. The anticipated rental obligation for office space through 2022
is $7,800.
From
time to time, the Company may be involved in certain legal actions and claims arising in the normal course of business. Management is
of the opinion that such matters will be resolved without material effect on the Company’s financial condition or results of operations.
NOTE
12 – SUBSEQUENT EVENTS
In
accordance with ASC 855, Subsequent Events, the Company has evaluated subsequent events occurring after September 30, 2021 through
November 10, 2021.
Management
has reviewed subsequent events through November 10, 2021, the date at which Financial Statements were issued, and determined there were
no other items to disclose.