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Mclane Aceounting & Tax Servieen Inc519 Bench St., PO Box 45Taylors Falls, MN 55084
651-465-4832651-465-64O3 (faxf
Independent Accountant's Review Report
To Management and Board ofDirectorsGreen Olive Collective. IncSt Paul, MN
We have reviewed the accompanying balance sheet of Green Olive Collective, Inc. as of December 31,2017and 2018, and the related statements of income, retained eamings, and cash flows for the years then ended andthe related notes to the financial statements. A review includes primarily applylng analytical procedures tomanagement's financial dala and making inquiries of company management. A review is substantially less inscope than an audit the objective of which is the expression of an opinion regarding the financial stiatements asa whole. Accordingly, we do not express such an opinion.
Managemenfs Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in the United States of Americ4 this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement whether due to fraud or error-
Accountant's Responsibitity
Oru responsibility is to conduct the review in accordance with Statements of Standards for Accounting andReview Services issued be the American Institute of Certified Public Accountants. Those standards riquire usto perform procedures to obtain limited assurance that there are no material modifications that should be madeto the financial statements. We believe that the results of my procedures provide a reasonable basis for ourreport.
Accountant's Conclusion
Based on ourreview, we arc not aware of any material modifications that should be made to the accompanyingfinancial statements in order for them to be in conformity with accounting principles generally accepted in theUnited State of America.
? uhn-u u Kutli@ , LpAPatricia A Radich CPATaylors Falls, MNAugust 6,2OL9
GREEN OTIVE COLIECTIVE, INC.Unaudited Financial statements for the years Ended December 3L,2oL7 and 201g
August 6,2OI9
GREEN OTIVE COLLECTIVE, INC.BALANCE SHEET
AS OF DECEMBER 31,2018 AND 2017
ASSETSCURRENTASSETSCASH
CHECKING AND PAYPAL ACCOUNTSSAVINGS-RESERVE ACCOUNT
TOTAL CASH
ACCOUNTS RECIEVABLE
INVENTORYPREPAID EXPENSES
FIXED ASSETSBUILDING & IMPROVEMENTSEQUIPMENTFURNITURE, FIXTURES & COMPUTERSLESS: ACCUMUTATED DEPREC & AMORTIZATION
TOTAL FIXED ASSETS
OTHER ASSETS
TOTAL ASSETS
LIABILITES AND EQUITYCURRENT LIABILITIES
ACCOUNTS PAYABLE
EQUITY
TOTAL CURRENT LIABILITIES
LONG TERM LIABILIT]ES
TOTAL LIABILITES
ADDITIONAL PAID IN CAPITALcoMMoN srocK-crAss A (voTlNG)coMMoN sTocK-cl-Ass B (NoN-voTlNG)RETAINED EARNINGSNET INCOME
TOTAL EQUITY
TOTAL LIABILITIES AI{D EQUITY
2018
12,8O2.0751,990.33
2017
29,751.8922,890.33
64,792.40 52,642.22
u,792.40 52,il2.22
3,475.001,t185'(x)
33,990.009,526.22
16,316.1864,792.40
u,792.40
3,475.001,r185.00
33,990.00(13,808.44)27,500.6652,642.22
52,642.22
Unaudited Statement - See accompanying notes
GREEN OLIVE COIIECTIVE, INC.INCOME STATEMENT
AS OF DECEMBER 31, 2018 AND 2017
2018 20t7Income
Tours - lsrael -Palestine/ordanSales of Product Income
Discount, Refunds & AllowancesTotal Income
Cost of Goods Sold
Subcontractorc - Tourc GuidesAccommodation Costs-Home stays
Total Cost of Goods SoldGross Profit
ExpensesAdvertising & Promotional
Advertising - contractorOnline AdvertisingPrint Advertising
Total Advertising & Promotion
Bank ChargesCredit card & PayPal processing feesCommissions & feesCharitable DonationsDues & SubscriptionsInterest ExpenseLegal & Professional FeesBusiness Meetings & staff MealsOffice Expenses
Online ServicesRent or LeaseRepair & MaintenanceSuppliesTaxes & LicensesTelephoneTravel
Total Expenses
Net Operating Income
Net Income
656,999.443,126.03
505,876.345,776.73
(1,510.00) (3,470.00)658,615.47 $ 508,183.07
580,077.372,342.53
4LL,232.061,670.00
582,359.!t0 S 4t2,9/J,2.0676,255.57 s
18,688.26M9.35
95 281.01
1,200.00
L6,647.O9630.80
t9,137.61 $ t8,477.89
3,5L7.9715,852.813,000.00
0.00L2t.96
25.201,091.994,396.09
904.333,233.83
0.0020.67
1,682.690.00
864.58
1,542.95L7,577.83
301.2240.00
0.0043.71
940.2L920.88
2,2L4.332,82L.782,630.252,961.33
859.17624.65799.29
1.18
59,935.39 S 67.780.35
15,319.18 $ 27.s(n.ffi16,319.18 S
Unaudited Statement - See accompanying notes
27,500.66
GREEN OUVE COLLECTTVE, tNC.STATEMENT OF CASH FLOWS
AS OF DECEMBER 31, 2018 AND 2017
CASH FLOWS FROM OPERATING AGTIVITIES:NET INCOMECHANGE IN PREPAID EXPENSES
CHANGE IN INTEREST PAYABLECHANGE IN INVENTORYCHANGE IN SALES TAX PAYABLE
NET CASH FLOW FROM OPERATING ACTIVITIES
CASH FLOWS . ASSETS & INVESTISENT AGTIVITIES:INVESTMENTS-BUILDING & IMPROVEMENTSINVESTMENT - EQUIPMENTINVESTMENTS.FURNITURE, FIXTURES & COMPUTERS
DEPRECIATION AND AMORTIZATION\IET CASH FLOW FROM INVESTING ACTIVTTTES
CASH FLOWS FROT FINANCING ACTIVITIES:CHANGE IN RETAINED EARNINGS-FEDERAL INCOME TAX PAYM
l{ET TNCREASE (DECREASE) tN CASH
CASH AT BEGINNING OF YEAR
CASH AT END OF YEAR
Unaudited Statement - See accompanying notes
2018
16,315.18
20L7
27,500.-66
16,316.18
(4,166.00)
12,150.18
52,642.22
64,792.40
27,500.66
27,500.66
32,14L.56
59,642.22
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NOTE 1.
GREEN OLIVE COLLECTIVE, INC.NOTES TO FTNANCTAL STATEMENTS (UNAUDTTED)
FOR THE YEARS ENDED DECEMBER 31, 2Ot7 AND 2018
ORGANIZTION AND NATURE OF BUSINESS
Green Olive Collective, Inc. ("the Company") is a corporation under the laws ofthe State of Delaware and operates from Minnesota. The Company derives revenue from andthrough organizing tours to lsrael, Palestine and Jordan and caters to people of many culturesand countries around the world. The Company has had continued success and growth since itopening in 2072.
The Company will conduct an equity crowdfund offering during the fourthquarter of 20L9 for the purpose of raising operating capital in an effort to further expand it'stours around the world. The Company's ability to continue as a going concern or to achievemanagement's objectives may be dependent on the outcome of the offering or management'sother efforts to raise operating capital.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POTICIES
Basis of Presentation
The accompanying financial statements have been prepared in accordance withaccounting principles generally accepted in the United States of America ("US GAAP").
Use of Estimates
The preparation of financial statements requires management to makeestimates an assumptions that affect certain reported amounts and disclosures.Accordingly, actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and cash equivalents include all cash balances and any highly liquidinvestments with maturities of three months or less when purchased.
Accounts Receivables
The Company, being cash based, customers and clients pay upon making theirreservations for their selected tours. Therefore, the Company does not have norrecognize any accounts receivable at this time. lf at some time in the future there is anopportunity the add other products or services in order insure continued growth of
Page I I
business, there could be a change in accounting method to accommodate thesechanges.
InventorV
Due to the nature of the business, the Company has no physical inventory.Therefore, it is not necessary to carry any allowances for spoilage nor the need forrecognition or to hold in reserve any losses of such on the financial statements.
Propertv and Equipment
The Company capitalizes long-lived assets with an original purchases price of$1OOO. or more. Depreciation is calculated on a straight-line basis over management'sestimate of the asset's useful life, less a nominal amount for estimated salvage value.However, the Company has no assets that meet the above criteria at this time.
Goodwill
The Company was a startup company in 2OLZ with no additional acquisitions todate. Therefore, the Company has no goodwill to recognize and no requirement forperiodic testing for impairment losses under GAAP.
Extraord inarv ltems-Reven ue
The Company hasn't any nor has had any "extraordinary items" to be or thatwere reported under GAAP. Therefore, an adoption of FASB ASU 2105-01- superfluous.
Cost of Sales
Costs of Sales includes Subcontracted Tour Guides and ln Home Stays directlyrelated to the cost of providing tours purchased by the Company's customers.
Advertising Costs
The Company expenses direct advertising costs as incurred. All advertising 96 to98% of all advertising is done through difference online avenues.
NOTE 3. LEASES
The Company has no leases of buildings or equipment. And no obligations thatwould meet the criteria for "capital lease" under GAAP associated with buildings orequipment. Hence, no liabilities to recognize.
Page l2
NOTE 4. INCOME TAXES
The Company is subject to tax filing requirements in the federaljurisdiction ofthe United States and the State of Minnesota. The Company recorded a net operatinglosses for year ends 2014 and 2015, losses were carried back to 2013 and forward to20L5 and 20t6. There are no remaining unused loss carry forwards. Net operatingincome in 2Ot7 was 527,500.56 and 2018 net operating income was 516,319.18. TheCompany's 2OL7 federal income tax filing will be subject to review by the InternalRevenue Service until 2021. The Company's 20L8 federal income tax filing will besubject to inspection by the Internal Revenue Service until2022.
NOTE 5. EQUIW BASED COMPENSATION
The Company has no employees as all of the tours take place in another country.Therefore, no options or equity based compensation plan is necessary. Much of thework is done and tours given by a related company in lsrael from which the owner alsodraws a salary. The remaining work is contracted out to other approved local andestablished companies in that area where the tour is given.
NOTE 6.
NOTE 7.
NOTES PAYABLE
The Company has no payable obligations. No current or Long-Term debt.
EQUITY AND STOCKS
The Company has Additional Paid In Capital of S 3475.00 from startup in 2Ot2.Shares of Common Stock-Class A (Voting chares) issued total S1485.00 and CommonStock-Class B (Non-voting shares)total S 33990.00.
NOTE 8. CONCENTRATIONS OR RISK
Financial instruments that potentially subject the Company to credit risk consistof cash and cash equivalents. The Company places its cash and cash equivalents with alimited number of high quality financial institutions and at times may exceed theamount of insurance provided on such deposits.
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