REPORT OF INDEPENDENT REG
ISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders
Premier Pacific Construction, Inc.
Poway, California
We have audited the accompanying balance sheets of Premier Pacific Construction, Inc. as of December 31, 2016 and 2015 and the related statements of operations, stockholders' equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Premier Pacific Construction, Inc. as of December 31, 2016 and 2015, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that Premier Pacific Construction, Inc. will continue as a going concern. As discussed in Note 1 to the financial statements, the Company's income has come from five major clients and there can be no assurance that there will be a continuance in their business, which raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to this matter are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ MaloneBailey, LLP
www.malonebailey.com
Houston, Texas
April 17, 2017
PREMIER PACIFIC
CONSTRUCTION INC.
Statements of Cash Flows
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Year Ended
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Year Ended
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December 31,
2016
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December 31,
2015
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net income (loss)
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$
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(30,236
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)
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$
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(32,230
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)
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Adjustments to reconcile net income(loss) to net cash provided by
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(used in) operations
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Depreciation expense
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532
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-
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Contribution from shareholder
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11,100
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11,100
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|
Changes in operating assets and liabilities:
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Accrued interest
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(888
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)
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888
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Accounts payable
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5,052
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-
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Net cash used in operating activities
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(14,440
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)
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(20,242
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)
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INVESTING ACTIVITIES
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Additional of property and equipment
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-
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(532
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)
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Net cash provided by (used) in investing activities
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-
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(532
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)
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CASH FLOWS FROM FINANCING ACTIVITIES
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Issuance of common stock for cash
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25,000
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-
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Proceeds from loans payable
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-
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21,193
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Repayment of loan payable
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(21,193
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)
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-
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Proceeds from shareholder loans
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19,586
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14,642
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Repayments of shareholder loans
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(12,988
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)
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(18,805
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)
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Net cash provided by financing activities
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10,405
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17,030
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Net change in cash
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(4,035
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)
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(3,744
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)
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Cash and cash equivalents at beginning of period
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4,244
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7,988
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Cash and cash equivalents at end of period
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$
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209
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$
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4,244
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Cash paid for interest
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$
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888
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$
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-
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Cash paid for taxes
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$
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-
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$
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-
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The accompanying notes are an integral part of these financial statements.
PREMIER PACIFIC CONST
RUCTION, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
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1. ORGANIZATION AND BASIS OF PRESENTATION
Premier Pacific Construction, Inc. ("The Company") was originally incorporated in the State of California on July 28, 2000 in the name of Francella's Kitchen and Bath Refinishing Inc. to engage in the business of small scale construction, repairs and alterations for residential clients. On August 8, 2008 the Company changed its name to Premier Pacific Construction, Inc., a California Corporation ("PPC-CA"). The Company merged with Premier Pacific Construction Inc., a Nevada Corporation ("PPC-NV") in March of 2012.
Going Concern Consideration
These financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company anticipates future losses in the development of its business raising substantial doubt about the Company's ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and/or issuance of common shares.
The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Recently issued Accounting Pronouncements
We have reviewed the FASB issued Accounting Standards Update ("ASU") accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation's reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.
Basis of Presentation
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company's year -end is December 31.
Cash and Cash Equivalents
The Company considers all highly liquid investments with original maturity of three months or less to be cash equivalents. As of December 31, 2016, the Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit. As of December 31, 2016, the Company did not have any cash equivalents.
Use of Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles requires that management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates
Revenue Recognition
The Company recognizes revenue from the sale of products or services in accordance with ASC 605-35-25-1" Revenue Recognition in Financial Statements". The Company has adopted the "Completed Contract Method of Accounting". Revenue will consist of services income and will be recognized only when the following criteria have been met: i) Persuasive evidence of an agreement has been met; ii) Service has occurred; iii) The fee is fixed or determinable; iv) the collection is reasonably assured.
PREMIER PACIFIC CONSTRUCTION, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
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We receive payments from customers as down payments and record them as progress billings. The revenue related to these progress billings is recognized as revenue in accordance with our revenue recognition policies as above. The revenue for the year ending December 31, 2016 is from two customers.
Income Taxes
The Company follows the accrual method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on the deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. At December 31, 2016 a full deferred tax asset valuation allowance has been provided and no deferred tax asset has been recorded.
Loss per Common Shares
The Company computes net income (loss) per share in accordance with ASC 260, "Earnings per Share" which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible preferred stock, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. As of December 31, 2016, there are no dilutive securities.
3. INCOME TAXES
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December 31,
2016
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December 31,
2015
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Deferred tax assets:
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Net operating tax carry-forward
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$
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95,725
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$
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65,489
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Tax rate
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34
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%
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34
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%
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Gross deferred tax assets
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32,546
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22,266
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Valuation allowance
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(32,546
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))
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(22,266
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)
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Net deferred tax assets
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$
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-0-
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-0-
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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. As the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance.
The tax return that is open for IRS examination is for the year ending December 31, 2016.
As of December 31, 2016, the Company has a net operating loss of $95,725. A net operating loss expires twenty years from the date the loss was incurred.
4. STOCKHOLDERS' EQUITY
On March 12, 2016, the Company's Board of Directors approved the sale of 25,000 common shares of $0.001 par value for net proceeds to the Company of $25,000.
On March 1, 2016, the Company agreed to pay its outstanding Note Payable being the principal sum of $21, 193 plus the accrued interest of 5% ($888) totalling $21,081 in full payment of all outstanding loans made to the Company between March and June, 2015.
As of December 31, 2016, there are 75,000,000 shares authorized and 5,169,000 issued and outstanding.
PREMIER PACIFIC CONSTRUCTION, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 2016 and 2015
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5. NOTES PAYABLE
On March 1, 2016, the Company agreed to pay its outstanding Note Payable being the principal sum of $21, 193 plus the accrued interest of 5% ($888) totalling $21,081 in full payment of all outstanding loans made to the Company between March and June, 2015.
6. RELATED PARTY TRANSACTIONS
During the year ending December 31, 2016, the President of the Company provided management fees and office premises to the Company for a fee of $925 per month, the right to which the President agreed to assign to the Company until such time as the Company closes on an equity or debt financing of not less than $200,000. The $11,100 for donated management fees were charged to operating and general expenses and recorded as donated capital (Additional Paid in Capital). .
In the year ending December 31, 2016, the majority shareholder loaned the Company an amount of $19,586, in order for the Company to remain in business. $12,988 was repaid in 2016 and at December 31, 2016 $6,958 is outstanding. These loans carry no interest and no time repayment.