NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS
March 31, 2018
(Unaudited)
NOTE 1. GENERAL ORGANIZATION AND BUSINESS
Inspired Builders, Inc. (the “Company”) was incorporated in the State of Nevada in February
2010. Until August 15, 2017 the Company was directing it’s focus on acquiring, investing in, developing and managing real
estate properties and related investments. On August 15, 2017, pursuant to a change in control transaction, we relocated to Miami,
Florida and ceased all operations as a real estate company. On February 15, 2018, Inspired Builders (the “Company”),
the majority shareholders of the Company (the “Sellers”) and Santa Alba, LLC (the “Purchaser”) entered
into a stock purchase agreement (the “Stock Purchase Agreement”), whereby the Purchaser purchased from the Sellers
95,643,929 shares of common stock, par value $0.001 per share, of the Company (the “Shares”), representing approximately
94.58% of the issued and outstanding shares of the Company, for an aggregate purchase price of $300,000 (the “Purchase Price”).
On February 15, 2018, the closing of the transaction occurred (“Closing Date”). Also, in connection therewith, Scott
Silverman, the Company’s sole officer and Director, resigned from his positions and named Kai Zhao as sole director and to
the positions of CEO, CFO, Chief Accounting Officer and Secretary.
The accompanying unaudited condensed financial statements have been prepared in accordance with accounting
principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission
for interim financial information. Accordingly, they do not include all of the information necessary for a comprehensive presentation
of financial position and results of operations. The unaudited interim financial statements should be read in conjunction with
the financial statements and related notes included in our Annual Report on form 10-K for the year ended September 30, 2017, filed
with the SEC on November 22, 2017. The interim results for the period ended March 31, 2018 are not necessarily indicative of expected
results for the full fiscal year. It is management’s opinion, however that all material adjustments (consisting of normal
recurring adjustments) have been made which are necessary for a fair financial statements presentation.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Use of Estimates
The preparation of financial statements
in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the
following; estimates of the probability and potential magnitude of contingent liabilities, the valuation allowance for deferred
tax assets due to continuing operating losses, valuation of shares issued in connection with the purchase of real estate, the valuation
of the real estate and the evaluation of any impairment on the real estate.
Making estimates requires management to
exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or
set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate
could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly
from our estimates.
Cash and Cash Equivalents
Cash and cash equivalents are reported
in the balance sheet at cost, which approximates fair value. For the purpose of the financial statements cash equivalents include
all highly liquid investments with an original maturity of three months or less when purchased. There were no cash equivalents
at March 31, 2018 and September 30, 2017.
Earnings (Loss) per Share
In accordance with accounting guidance
now codified as FASB ASC Topic 260, “Earnings per Share,” basic earnings (loss) per share is computed by dividing net
income (loss) by weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss) per
share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents
and potentially dilutive securities outstanding during the period. The Company has 0 and 20,833 shares issuable upon conversion
of convertible notes payable that were not included in the computation of dilutive loss per share because their inclusion is anti-dilutive
for the periods ended March 31, 2018 and March 31, 2017, respectively.
Inspired Builders, Inc.
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS
March 31, 2018
(Unaudited)
Income Taxes
The Company accounts for income taxes in
accordance with generally accepted accounting principles, which requires an asset and liability approach to financial accounting
and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between financial
statement and income tax bases of assets and liabilities that will result in taxable income or deductible expenses in the future
based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation
allowances are established when necessary to reduce deferred tax assets and liabilities to the amount expected to be realized.
Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets
and liabilities.
The Company follows the accounting requirements
associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (FASB) ASC 740, Income
Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than
not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification,
interest and penalties, accounting in interim periods, disclosure and transition. As of March 31, 2018, the Company has no uncertain
tax positions that qualify for either recognition or disclosure in the financial statements. All tax returns from fiscal years
2010 to 2017 are subject to IRS audit.
Fair Value of Financial Investments
The fair value of cash and cash equivalents,
accounts payable, accrued liabilities, and notes payable approximates the carrying amount of these financial instruments due to
their short-term maturity.
Use of Estimates
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.
Recent accounting pronouncements
The Company has reviewed the Accounting
Standards Updates through ASU No. 2018-05 and these updates have no current applicability to the Company or their effect on the
financial statements would not have been significant.
NOTE 3. GOING CONCERN
As reflected in the accompanying financial
statements, the Company has a net loss of $114,687 and a working capital deficit of $9,345 as of March 31, 2018. In addition, the
Company has not had construction revenues since May 2011 and the only prospect for positive cash flow is through the issuance of
common stock or debt. If the Company does not begin to generate sufficient revenue or raise additional funds through a financing,
the Company may need to incur additional liabilities with certain related parties to sustain the Company’s existence. There
are currently no plans or agreements in place to provide such funding. The Company will require additional funding to finance the
growth of its future operations as well as to achieve its strategic objectives. This raises substantial doubt about its ability
to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability
to raise additional capital and generate revenue. The financial statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going concern.
Inspired Builders, Inc.
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS
March 31, 2018
(Unaudited)
NOTE 4. LOAN PAYABLE – RELATED PARTY
On October 17, 2017, our CEO loaned the
Company $14,300. The loan is interest free and is payable on demand. On February 15, 2018, the loan was forgiven. The transaction
was accounted for as contributed capital.
On October 20, 2017, our CEO loaned the
Company $825. The loan is interest free and is payable on demand. On February 15, 2018, the loan was forgiven. The transaction
was accounted for as contributed capital.
On January 7, 2018, our CEO loaned the
Company $3,000. The loan is interest free and is payable on demand. On February 15, 2018, the loan was forgiven. The transaction
was accounted for as contributed capital.
On January 25, 2018 our CEO loaned the Company $1,562. The loan is interest free and is payable on demand.
On April 6, 2018, the loan was repaid.
On January 26, 2018, our CEO loaned the
Company $109. The loan is interest free and is payable on demand. On February 15, 2018, the loan was forgiven. The transaction
was accounted for as contributed capital.
On February 13, 2018, our CEO loaned the
Company $3,884. The loan is interest free and is payable on demand. On February 15, 2018, the loan was forgiven. The transaction
was accounted for as contributed capital.
On February 22, 2018, our CEO loaned the
Company $342. The loan is interest free and is payable on demand. On April 6, 2018, the loan was repaid.
On February 28, 2018, our CEO loaned the
Company $346. The loan is interest free and is payable on demand.
On February 28, 2018, our CEO loaned the Company $865. The loan is interest free and is payable on demand.
On April 6, 2018, the loan was repaid.
NOTE 5. NOTES PAYABLE – RELATED PARTIES
On January 13, 2012, the Company entered
into a 12-month unsecured promissory note in the amount of $211,000. Interest accrues in arrears on the outstanding principal at
the rate of ten percent (10.00%) per annum. Interest shall be payable on the last day of each quarter, commencing March 30, 2012,
and continuing until the maturity date. Should the maker fail to pay the entire principal and accrued interest by the maturity
date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company
and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014. The loan maturity
dates were further extended to January 13, 2016. On May 22, 2012, the Company borrowed an additional $32,714 from the related party,
with the same terms, the loan maturity dates were extended to January 13, 2016. On September 17, 2012, the Company borrowed an
additional $22,032 from the related party, with the same terms, the loan maturity dates were extended to January 13, 2016. On February
7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company
borrowed an additional $30,000 from the related party, with the same terms. The loans maturity dates were further extended to February
7, 2016 and July 31, 2016, respectively. On December 20, 2013, the Company borrowed $2,500, on January 7, 2014, the Company borrowed
$5,000, on February 6, 2014, the Company borrowed $5,520, the loans maturity dates were further extended to December 20, 2015 and
January 7, 2016. On February 17, 2014, the Company borrowed $4,400 and on June 26, 2014, the Company borrowed $3,080, the loans
maturity dates were further extended to February 6, 2016 and February 17, 2016, respectively. On November 15, 2016, the Company
and the related party entered into a Release and Settlement Agreement whereby $342,519 in principal and $149,258 in accrued interest
was forgiven. The transaction was accounted for as contributed capital. The total outstanding principal at March 31, 2018 and September
30, 2017 amounted to $2,500 and $2,500, respectively. Accrued interest at March 31, 2018 and September 30, 2017, amounted to $535
and $473, respectively.
NOTE 6. COMMITMENTS AND CONTINGENCIES
From time to time, the Company may become
involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject
to inherent uncertainties, and an adverse result in these or other matters may arise that may harm its business. The Company is
currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material
adverse effect on its business, financial condition or operating results.
Inspired Builders, Inc.
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS
March 31, 2018
(Unaudited)
NOTE 7. SHAREHOLDERS’ EQUITY
On October 17, 2017, our CEO loaned the
Company $14,300. The loan is interest free and is payable on demand. On February 15, 2018, the loan was forgiven. The transaction
was accounted for as contributed capital.
On October 20, 2017, our CEO loaned the
Company $825. The loan is interest free and is payable on demand. On February 15, 2018, the loan was forgiven. The transaction
was accounted for as contributed capital.
On January 7, 2018, our CEO entered into
an unsecured note payable for $3,000 with an interest rate of 0% due upon demand by the holder. On February 15, 2018, the loan
was forgiven. The transaction was accounted for as contributed capital.
On January 26, 2018, our CEO entered into
an unsecured note payable for $109, with an interest rate of 0% due upon demand by the holder. On February 15, 2018, the loan was
forgiven. The transaction was accounted for as contributed capital.
On February 13, 2018, our CEO entered into
an unsecured note payable for $3,884, with an interest rate of 0% due upon demand by the holder. On February 15, 2018, the loan
was forgiven. The transaction was accounted for as contributed capital.
On February 15, 2018, our CEO contributed $57,034 to the Company to pay for certain outstanding liabilities.
The transaction was accounted for as contributed capital.
On March 19, 2018, our former CEO contributed
$170 to the Company to pay for certain outstanding liabilities. The transaction was accounted for as contributed capital.
NOTE 8. CONCENTRATION OF CREDIT RISK
The Company relies heavily on the support
of its president and majority shareholder. A withdrawal of this support, for any reason, will have a material adverse effect on
the Company’s financial position and its operations.
NOTE 9. RELATED PARTY TRANSACTIONS
On January 13, 2012, the Company entered
into a 12-month unsecured promissory note in the amount of $211,000. Interest accrues in arrears on the outstanding principal at
the rate of ten percent (10.00%) per annum. Interest shall be payable on the last day of each quarter, commencing March 30, 2012,
and continuing until the maturity date. Should the maker fail to pay the entire principal and accrued interest by the maturity
date, the maker agrees that the interest rate shall increase to twelve percent (12.00%) per annum. On May 10, 2013, the Company
and the related party agreed to extend the maturity of the loan for an additional year or until January 13, 2014. The loan maturity
dates were further extended to January 13, 2016. On May 22, 2012, the Company borrowed an additional $32,714 from the related party,
with the same terms, the loan maturity dates were extended to January 13, 2016. On September 17, 2012, the Company borrowed an
additional $22,032 from the related party, with the same terms, the loan maturity dates were extended to January 13, 2016. On February
7, 2013, the Company borrowed an additional $28,773 from the related party, with the same terms, and on July 31, 2013, the Company
borrowed an additional $30,000 from the related party, with the same terms. The loans maturity dates were further extended to February
7, 2016 and July 31, 2016, respectively. On December 20, 2013, the Company borrowed $2,500, on January 7, 2014, the Company borrowed
$5,000, on February 6, 2014, the Company borrowed $5,520, the loans maturity dates were further extended to December 20, 2015 and
January 7, 2016. On February 17, 2014, the Company borrowed $4,400 and on June 26, 2014, the Company borrowed $3,080, the loans
maturity dates were further extended to February 6, 2016 and February 17, 2016, respectively. On November 15, 2016, the Company
and the related party entered into a Release and Settlement Agreement whereby $342,519 in principal and $149,258 in accrued interest
was forgiven. The transaction was accounted for as contributed capital. The total outstanding principal at March 31, 2018 and September
30, 2017 amounted to $2,500 and $2,500, respectively. Accrued interest at March 31, 2018 and September 30, 2017, amounted to $535
and $473, respectively.
Inspired Builders, Inc.
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS
March 31, 2018
(Unaudited)
On October 17, 2017, our CEO loaned the
Company $14,300. The loan is interest free and is payable on demand. On February 15, 2018, the loan was forgiven. The transaction
was accounted for as contributed capital.
On October 20, 2017, our CEO loaned the
Company $825. The loan is interest free and is payable on demand. On February 15, 2018, the loan was forgiven. The transaction
was accounted for as contributed capital.
On December 18, 2017, the Company issued
90,000,000 common shares with a fair value of $90,000 to JJL Capital Management, LLC, a company beneficially owned and controlled
by our CEO for services rendered to the Company by our CEO.
On January 8, 2018, our CEO entered into
an unsecured note payable for $3,000 with an interest rate of 0% due upon demand by the holder. On February 15, 2018, the loan
was forgiven. The transaction was accounted for as contributed capital.
On January 25, 2018 our CEO loaned the
Company $1,562. The loan is interest free and is payable on demand. On April 6, 2018 the loan was repaid.
On January 26, 2018, our CEO entered into
an unsecured note payable for $109, with an interest rate of 0% due upon demand by the holder. On February 15, 2018, the loan was
forgiven. The transaction was accounted for as contributed capital.
On February 13, 2018, our CEO entered into
an unsecured note payable for $3,884, with an interest rate of 0% due upon demand by the holder. On February 15, 2018, the loan
was forgiven. The transaction was accounted for as contributed capital.
On February 15, 2018, our CEO contributed $57,034 to the Company to pay for certain outstanding liabilities.
The transaction was accounted for as contributed capital.
On February 22, our CEO loaned $342 to
the Company, with an interest rate of 0% and due on demand. The loan was repaid on April 6, 2018.
On February 28, 2018, our CEO loaned the
Company $346. The loan is interest free and is payable on demand.
On February 28, 2018, our CEO loaned the
Company $865. The loan is interest free and is payable on demand. On April 6, 2018 the loan was repaid.
On March 19, 2018, our former CEO contributed
$170 to the Company to pay for certain outstanding liabilities. The transaction was accounted for as contributed capital.
NOTE 10. SUBSEQUENT EVENT
On January 25, 2018 our CEO loaned the
Company $1,562. The loan is interest free and is payable on demand. On April 6, 2018 the loan was repaid.
On February 22, 2018 our CEO loaned $342
to the Company, with an interest rate of 0% and due on demand. The loan was repaid on April 6, 2018.
On February 28, 2018, our CEO loaned $865
to the Company, with an interest rate of 0% and due on demand. The loan was repaid on April 6, 2018.