RealSource
Residential, Inc.
Balance
Sheets
|
|
March
31, 2018
|
|
|
December
31, 2017
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
3,837
|
|
|
$
|
7,161
|
|
|
|
|
|
|
|
|
|
|
Total
Current Assets
|
|
|
3,837
|
|
|
|
7,161
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
3,837
|
|
|
$
|
7,161
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
8,362
|
|
|
$
|
3,774
|
|
|
|
|
|
|
|
|
|
|
Total
Current Liabilities
|
|
|
8,362
|
|
|
|
3,774
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
8,362
|
|
|
|
3,774
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
par value $0.001: 100,000,000 shares authorized; none issued or outstanding
|
|
|
-
|
|
|
|
-
|
|
Common stock par
value $0.001: 100,000,000 shares authorized; 15,719,645 shares issued and outstanding
|
|
|
15,719
|
|
|
|
15,719
|
|
Additional paid-in
capital
|
|
|
7,586,426
|
|
|
|
7,586,426
|
|
Accumulated
deficit
|
|
|
(7,606,669
|
)
|
|
|
(7,598,758
|
)
|
|
|
|
|
|
|
|
|
|
Total
Stockholders’ Equity
|
|
|
(4,524
|
)
|
|
|
3,387
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Stockholders’ Equity
|
|
$
|
3,837
|
|
|
$
|
7,161
|
|
See
accompanying notes to the financial statements.
RealSource
Residential, Inc.
Statements
of Operations (Unaudited)
|
|
For the 3 Months Ended
|
|
|
For the 3 Months Ended
|
|
|
|
March
31, 2018
|
|
|
March
31, 2017
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Professional
fees
|
|
$
|
6,524
|
|
|
$
|
7,050
|
|
General
and administrative expenses
|
|
|
1,388
|
|
|
|
2,086
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses
|
|
|
7,913
|
|
|
|
9,136
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(7,913
|
)
|
|
|
(9,136
|
)
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
Interest and finance
charges
|
|
|
-
|
|
|
|
|
|
Interest
income
|
|
|
(1
|
)
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
Other
(income) expense, net
|
|
|
(1
|
)
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
Loss before income tax provision
|
|
|
(7,912
|
)
|
|
|
(9,127
|
)
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(7,912
|
)
|
|
$
|
(9,127
|
)
|
|
|
|
|
|
|
|
|
|
Earings per share:
|
|
|
|
|
|
|
|
|
-
Basic and diluted
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
-
Basic and diluted
|
|
|
15,719,645
|
|
|
|
15,719,645
|
|
See
accompanying notes to the financial statements.
RealSource
Residential, Inc.
Statement
of Changes in Stockholders’ Equity
For
the Interim Period Ended March 31, 2018
|
|
Common
Stock
Par Value $0.001
|
|
|
Additional
|
|
|
|
|
|
Total
|
|
|
|
Number of
|
|
|
|
|
|
Paid-in
|
|
|
Accumulated
|
|
|
Stockholders’
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Deficit
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2016
|
|
|
15,719,645
|
|
|
$
|
15,719
|
|
|
$
|
7,586,426
|
|
|
$
|
(7,573,180
|
)
|
|
$
|
28,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(25,578
|
)
|
|
|
(25,578
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2017
|
|
|
15,719,645
|
|
|
|
15,719
|
|
|
|
7,586,426
|
|
|
|
(7,598,758
|
)
|
|
|
3,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,912
|
)
|
|
|
(7,912
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2018 (Unaudited)
|
|
|
15,719,645
|
|
|
$
|
15,719
|
|
|
$
|
7,586,426
|
|
|
$
|
(7,606,669
|
)
|
|
$
|
(4,524
|
)
|
See
accompanying notes to the financial statements.
RealSource
Residential, Inc.
Statements
of Cash (Unaudited)
|
|
For the 3 Months Ended
|
|
|
For the 3 Months Ended
|
|
|
|
March
31, 2018
|
|
|
March
31, 2017
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(7,912
|
)
|
|
$
|
(9,127
|
)
|
Adjustments to reconcile net loss to
net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued interest
|
|
|
4,588
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
|
(3,324
|
)
|
|
|
(8,802
|
)
|
|
|
|
|
|
|
|
|
|
Net change in cash
|
|
|
(3,324
|
)
|
|
|
(8,802
|
)
|
|
|
|
|
|
|
|
|
|
Cash at beginning
of reporting period
|
|
|
7,161
|
|
|
|
28,640
|
|
|
|
|
|
|
|
|
|
|
Cash at end of
reporting period
|
|
$
|
3,837
|
|
|
$
|
19,838
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flows
information:
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
-
|
|
|
$
|
-
|
|
Income
tax paid
|
|
$
|
-
|
|
|
$
|
-
|
|
See
accompanying notes to the financial statements.
RealSource
Residential, Inc.
March
31, 2018 and 2017
Notes
to the Financial Statements
(Unaudited)
Note
1 - Organization and Operations
Upstream
Biosciences, Inc.
Upstream
Biosciences, Inc. (“Upstream Biosciences”) was incorporated on March 20, 2002 under the laws of the State of Nevada.
Upstream Biosciences engaged in developing technology relating to biomarker identification, disease susceptibility and drug response
areas of cancer.
Change
in Control
On
May 24, 2013, Charles El-Moussa and Six Capital Limited (“Six Capital”) (collectively, the “Sellers”),
as majority stockholders of Upstream Biosciences, Inc., a Nevada corporation, and RealSource Acquisitions Group, LLC, a Utah limited
liability company, and Chesterfield Faring Ltd., a New York corporation (collectively, the “Purchasers”), entered
into a Securities Purchase Agreement (the “Agreement”) pursuant to which the Sellers agreed to sell to the Purchasers
an aggregate of 10,778,081 shares (representing approximately 90% of the issued and outstanding voting securities of the Company)
of common stock of the Company (the “Common Stock”) for $175,000 in cash from the personal funds of the Purchasers.
RealSource
Residential, Inc.
On
July 11, 2013, Upstream Biosciences entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant
to which Upstream Biosciences merged with its newly formed, wholly owned subsidiary, RealSource Residential, Inc., a Nevada corporation
(“Merger Sub” and such merger transaction, the “Merger”), with the Company remaining as the surviving
corporation under the name “RealSource Residential, Inc.” (the “Surviving Company” or the “Company”).
Upon the consummation of the Merger, the separate existence of Merger Sub ceased and shareholders of the Company became shareholders
of the surviving company named RealSource Residential, Inc. The Merger was effective on Monday, July 15, 2013 and was approved
by the Financial Industry Regulatory Authority on August 5, 2013.
Note
2 - Significant and Critical Accounting Policies and Practices
The
Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness
of accounting policies and their application. Critical accounting policies and practices are those that are both most important
to the portrayal of the Company’s financial condition and results and require management’s most difficult, subjective,
or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain.
The Company’s significant and critical accounting policies and practices are disclosed below as required by generally accepted
accounting principles.
Basis
of presentation
The
Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) and the rules of the Securities Exchange Commission.
Use
of Estimates and Assumptions and Critical Accounting Estimates and Assumptions
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses
during the reporting period(s).
Critical
accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and
judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact
of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates
and assumptions affecting the financial statements were:
|
(i)
|
Assumption
as a going concern
: Management assumes that the Company will continue as a going
concern, which contemplates continuity of operations, realization of assets, and liquidation
of liabilities in the normal course of business;
|
|
(ii)
|
Valuation
allowance for deferred tax assets
: Management assumes that the realization of the
Company’s net deferred tax assets resulting from its net operating loss (“NOL”)
carry–forwards for Federal income tax purposes that may be offset against future
taxable income was not considered more likely than not and accordingly, the potential
tax benefits of the net loss carry-forwards are offset by a full valuation allowance.
Management made this assumption based on (a) the Company has incurred recurring losses,
(b) general economic conditions, and (c) its ability to raise additional funds to support
its daily operations by way of a public or private offering, among other factors.
|
|
(iii)
|
Estimates
and assumptions used in valuation of equity instruments
: Management estimates
expected
term of share options and similar instruments, expected volatility of the Company’s
common shares and the method used to estimate it, expected annual rate of quarterly dividends,
and risk free rate(s) to value share options and similar instruments.
|
These
significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached
to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.
Management
bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the
financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from other sources.
Management
regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes
in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those
estimates are adjusted accordingly.
Actual
results could differ from those estimates.
Fair
Value of Financial Instruments
The
Company held no financial instruments as of March 31, 2018 or December 31, 2017.
Cash
Equivalents
The
Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.
At March 31, 2018 and December 31, 2017, the Company held only cash deposits at a financial institution.
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 (“Affiliate” means, with respect to
any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled
by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act);
(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.) a 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.
Commitments
and Contingencies
The
Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain
conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will
only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and
such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that
are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived
merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected
to be sought therein.
If
the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability
can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment
indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be
estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material,
would be disclosed.
Loss
contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would
be disclosed.
Revenue
Recognition
The
Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes
revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all
of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the
services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably
assured.
Deferred
Tax Assets and Income Taxes Provision
The
Company adopted the provisions of paragraph 740-10-25-13 of the FASB Accounting Standards Codification. Paragraph 740-10-25-13
addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the
financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only
if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical
merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based
on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph
740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim
periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income
tax benefits according to the provisions of paragraph 740-10-25-13.
The
estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying
balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred
tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary.
Management
makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous
estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in
these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual
taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.
Tax
years that remain subject to examination by major tax jurisdictions
The
Company discloses tax years that remain subject to examination by major tax jurisdictions pursuant to the ASC Paragraph 740-10-50-15.
Major tax jurisdictions generally have the right to examine and audit the previous three years of tax returns filed.
Earnings
Per Share
Earnings
per share (“EPS”) is the amount of earnings attributable to each share of common stock. For convenience, the term
is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards
Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS shall be computed by dividing income available
to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the
period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred
stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned)
from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation
of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional
common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect
the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options
or warrants.
Pursuant
to ASC Paragraphs 260-10-45-21 through 260-10-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise
price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents)
issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions
of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of
options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions
(see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options,
shall be excluded from diluted EPS. Under the treasury stock method: (a.) Exercise of options and warrants shall be assumed at
the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. (b.) The proceeds
from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs
260-10-45-29 and 260-10-55-4 through 55-5.) (c.) The incremental shares (the difference between the number of shares assumed issued
and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation.
The
Company’s warrants were as follows:
|
|
Contingent
shares issuance arrangement, stock options or warrants
|
|
|
|
|
|
|
|
|
|
|
For
the Reporting Period Ended
Mar 31, 2018
|
|
|
For
the Reporting Period Ended
Dec 31, 2017
|
|
|
|
|
|
|
|
|
Warrant Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
Purchase Warrants (collectively, the “Warrants”) to purchase 10,000 shares (the “Warrant Shares”)
of common stock of the Company (the “Common Stock”) with an exercise price of $.50 per share expiring December
9, 2020.
|
|
|
2,310,000
|
|
|
|
2,310,000
|
|
|
|
|
|
|
|
|
|
|
Total warrants
|
|
|
2,310,000
|
|
|
|
2,310,000
|
|
There
were no incremental common shares under the Treasury Stock Method for the reporting periods shown above.
Cash
Flows Reporting
The
Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, which classifies
cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions
of each category, and uses the indirect or reconciliation method (the “Indirect Method”) as defined by paragraph 230-10-45-25
of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile
it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and
payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income
that do not affect operating cash receipts and payments
Subsequent
Events
The
Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent
events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU
2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when
they are widely distributed to users, such as through filing them on EDGAR.
Note
3 – Going Concern
The
Company’s financial statements have been prepared assuming that it will continue as a going concern, which contemplates
continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.
As
reflected in the financial statements, the Company had an accumulated deficit at March 31, 2018 and a net loss for the reporting
period then ended. These factors raise substantial doubt about the Company’s ability to continue as a going concern.
The
ability of the Company to continue as a going concern is dependent upon the Company’s ability to implement its business
plan and generate sufficient revenue and its ability to execute a business strategy and raise additional funds.
The
financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts
or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
Note
4 – Stockholders’ Equity (Deficit)
Shares
Authorized
Upon
formation the total number of shares of all classes of stock which the Company is authorized to issue is Two Hundred Million (200,000,000)
shares of which One Hundred Million (100,000,000) shares shall be Preferred Stock, par value $0.001 per share, and One Hundred
Million (100,000,000) shares shall be Common Stock, par value $0.001 per share.
Common
Stock
Warrants
Summary
of the Company’s Warrants Activities
The
table below summarizes the Company’s warrants activities for the reporting period ended March 31, 2018:
|
|
Number
of Warrant Shares
|
|
|
Exercise
Price Range Per Share
|
|
|
Weighted
Average Exercise Price
|
|
|
Relative
Fair Value at Date of Issuance
|
|
|
Aggregate
Intrinsic
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2017
|
|
|
2,310,000
|
|
|
$
|
.50
|
|
|
$
|
.50
|
|
|
$
|
*
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Granted
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canceled
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercised
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expired
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2018
|
|
|
2,310,000
|
|
|
$
|
.50
|
|
|
$
|
.50
|
|
|
$
|
*
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned and exercisable,
Mar. 31, 2018
|
|
|
2,310,000
|
|
|
$
|
.50
|
|
|
$
|
.50
|
|
|
$
|
*
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unvested, Mar 31, 2018
|
|
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
*
The relative fair values at date of issuance and subsequent measurement were de minimis.
The
following table summarizes information concerning outstanding and exercisable warrants as of March 31, 2018:
|
|
|
Warrants
Outstanding
|
|
Warrants
Exercisable
|
Range
of Exercise Prices
|
|
|
Number
Outstanding
|
|
Average
Remaining Contractual Life (in years)
|
|
|
Weighted
Average Exercise Price
|
|
|
Number
Exercisable
|
|
Average
Remaining Contractual Life (in years)
|
|
|
Weighted
Average Exercise Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
.50
|
|
|
2,310,000
|
|
|
3.7
|
|
|
$
|
.50
|
|
|
2,310,000
|
|
|
3.7
|
|
|
$
|
.50
|
|
The
Company estimated the relative fair value of the warrants on the date of grant using the Black-Scholes option-pricing model with
the following weighted-average assumptions:
|
|
December
9, 2013
|
|
|
|
|
|
Expected life (year)
|
|
|
3.7
|
|
|
|
|
|
|
Expected volatility (*)
|
|
|
28.7
|
%
|
|
|
|
|
|
Expected annual rate of quarterly dividends
|
|
|
0.00
|
%
|
|
|
|
|
|
Risk-free rate(s)
|
|
|
1.93
|
%
|
|
*
|
As
a thinly traded entity it is not practicable for the Company to estimate the expected
volatility of its share price. The Company selected four (4) comparable public companies
listed on NYSE MKT and NASDAQ Capital Market within real estate brokerage and management
industry which the Company engages in to calculate the expected volatility. The Company
calculated those four (4) comparable companies’ historical volatility over the
expected life of the options or warrants and averaged them as its expected volatility.
|
The
estimated relative fair value of the warrants was de minimus at the date of issuance using the Black-Scholes Option Pricing Model.
Note
5 – Subsequent Events
The
Company has evaluated all events that occur after the balance sheet date through the date when the financial statements were issued
to determine if they must be reported. The Management of the Company determined that there were no reportable subsequent events
to be disclosed.