Document And Entity Information
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Document And Entity Information
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9 Months Ended | |
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Sep. 30, 2013
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Oct. 31, 2013
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| Document and Entity Information [Abstract] | ||
| Entity Registrant Name | Sunstock, Inc. | |
| Document Type | 10-Q | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Common Stock, Shares Outstanding | 1,974,000 | |
| Amendment Flag | true | |
| Amendment Description | This Amendment No. 1 to the Quarterly Report on Form 10-Q of Sunstock, Inc. (the ?Company?) for the quarter ended September 30, 2013, filed with the Securities and Exchange Commission (?SEC?) on November 14, 2013 (the ?Original Filing?), is filed for the purpose of minor editing and correcting the header information in the Statement of Cash Flows. | |
| Entity Central Index Key | 0001559157 | |
| Entity Current Reporting Status | Yes | |
| Entity Voluntary Filers | No | |
| Entity Filer Category | Smaller Reporting Company | |
| Entity Well-known Seasoned Issuer | No | |
| Document Period End Date | Sep. 30, 2013 | |
| Document Fiscal Year Focus | 2013 | |
| Document Fiscal Period Focus | Q3 |
CONDENSED BALANCE SHEETS
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CONDENSED BALANCE SHEETS (USD $)
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Sep. 30, 2013
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Dec. 31, 2012
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|---|---|---|
| Current assets | ||
| Cash | $ 42,551 | $ 2,000 |
| Total Current Assets | 42,551 | 2,000 |
| Total assets | 42,551 | 2,000 |
| Current liabilities | ||
| Accounts payable | 0 | 350 |
| Loan from Shareholder | 90,004 | 0 |
| Total Current Liabilities | 90,004 | 350 |
| Total liabilities | 90,004 | 350 |
| Stockholders' equity (deficit) | ||
| Preferred stock; $0.0001 par value, 20,000,000 shares authorized; zero shares issued and outstanding | 0 | 0 |
| Common stock, $0.0001 par value, 100,000,000 shares authorized; 1,974,000 shares issued and outstanding | 197 | 2,000 |
| Subscriptions Receivable | (21,000) | 0 |
| Additional paid - in capital | 65,610 | 1,007 |
| Accumulated deficit | (92,260) | (1,357) |
| Total stockholders' equity (deficit) | (47,453) | 1,650 |
| Total liabilities and stockholders' (deficit) equity | $ 42,551 | $ 2,000 |
CONDENSED BALANCE SHEETS (Parentheticals)
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CONDENSED BALANCE SHEETS (Parentheticals) (USD $)
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Sep. 30, 2013
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Dec. 31, 2012
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|---|---|---|
| Preferred stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
| Preferred stock, shares authorized (in Shares) | 20,000,000 | 20,000,000 |
| Preferred stock, shares issued (in Shares) | 0 | 0 |
| Preferred stock, shares outstanding (in Shares) | 0 | 0 |
| Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
| Common stock, shares authorized (in Shares) | 100,000,000 | 100,000,000 |
| Common stock, shares issued (in Shares) | 1,974,000 | 1,974,000 |
| Common stock, shares outstanding (in Shares) | 1,974,000 | 1,974,000 |
CONDENSED STATEMENTS OF OPERATIONS
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CONDENSED STATEMENTS OF OPERATIONS (USD $)
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2 Months Ended | 3 Months Ended | 9 Months Ended | 15 Months Ended |
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Sep. 30, 2012
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Sep. 30, 2013
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Sep. 30, 2013
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Sep. 30, 2013
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| Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
| Operating expenses | 1,007 | 90,103 | 90,903 | 92,260 |
| Operating Loss | (1,007) | (90,103) | (90,903) | (92,260) |
| Loss before income tax | (1,007) | (90,103) | (90,903) | (92,260) |
| Income tax | 0 | 0 | 0 | 0 |
| Net loss | $ (1,007) | $ (90,103) | $ (90,903) | $ (92,260) |
| Loss per share - basic and diluted (in Dollars per share) | $ 0.00 | $ (0.05) | $ (0.01) | |
| Weighted average shares - basic and diluted (in Shares) | 20,000,000 | 1,817,272 | 15,092,267 |
CONDENSED STATEMENTS OF CASH FLOWS
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CONDENSED STATEMENTS OF CASH FLOWS (USD $)
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9 Months Ended | 15 Months Ended |
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Sep. 30, 2013
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Sep. 30, 2013
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| OPERATING ACTIVITIES | ||
| Net loss | $ (90,903) | $ (92,260) |
| Changes in Operating Assets and Liabilities | ||
| Accrued liabilities | (350) | 0 |
| Net cash used in operating activities | (91,253) | (92,260) |
| FINANCING ACTIVITIES | ||
| Due from related parties | 90,004 | 90,004 |
| Subscriptions receivable | (21,000) | (21,000) |
| Proceeds from common stock | (1,803) | 197 |
| Proceeds from paid in capital | 64,603 | 65,610 |
| Net cash provided by financing activities | 131,804 | 134,811 |
| Net increase in cash | 40,551 | 42,551 |
| Cash, beginning of period | 2,000 | 0 |
| Cash, end of period | $ 42,551 | $ 42,551 |
NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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9 Months Ended |
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Sep. 30, 2013
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| Accounting Policies [Abstract] | |
| Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] |
NOTE 1 NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS
Sunstock, Inc. (formerly known as Sandgate Acquisition Corporation) ("Sunstock" or "the Company") was incorporated on July 23, 2012 under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. Sunstock has been in the developmental stage since inception and its operations to date have been limited to issuing shares of its common stock. Sunstock may attempt to locate and negotiate with a business entity for the combination of that target company with Sunstock. The combination will normally take the form of a merger, stock-for-stock exchange or stock-for-assets exchange. In most instances the target company will wish to structure the business combination to be within the definition of a tax-free reorganization under Section 351 or Section 368 of the Internal Revenue Code of 1986, as amended. No assurances can be
given that Sunstock will be successful in locating or negotiating with any target company. Sunstock has been formed to provide a method for a foreign or domestic private company to become a reporting company with a class of securities registered under the Securities Exchange Act of 1934.
On July 18, 2013, the Company has changed its name from Sandgate Acquisition Corporation to Sunstock, Inc. and filed a Form 8-K with the Securities and Exchange Commission noticing such name change.
On July 18, 2013, Jason Chang and Dr. Ramnik S. Clair were named as the directors of the Company.
On October 30, 2013, the Company entered into a Purchase Agreement with Dollar Store Services, Inc. to develop, design and build out a retail store which the Company intends to begin operating in the fourth quarter of 2013. Additionally, the Company entered into a lease agreement on October 30, 2013 for 2,239 square feet of retail shop space for this store. The lease requires monthly payments of $2,613 for thirty six months beginning February 2014.
BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements to be read in conjunction with the 10-K. The accompanying unaudited financial statements include all adjustments, composed of normal recurring adjustments, considered necessary by management to fairly state our results of operations, financial position and cash flows. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year.
USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP 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 revenues and expenses during the reporting periods. Actual results could differ from those estimates.
CONCENTRATION OF RISK
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of September 30, 2013.
INCOME TAXES
Under ASC 740, "Income Taxes", deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will not be realized.
LOSS PER COMMON SHARE
Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of September 30, 2013, there are no outstanding dilutive securities.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for the asset or liability.
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NOTE 2 - GOING CONCERN
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NOTE 2 - GOING CONCERN
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9 Months Ended |
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Sep. 30, 2013
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| Going Concern [Abstract] | |
| Going Concern [Text Block] |
NOTE 2 - GOING CONCERN
The Company has sustained operating losses since inception. It has an accumulated deficit of $92,260 as of September 30, 2013. The Company's continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and /or obtain additional financing from its stockholders and/or other third parties.
These financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations and continue its operations for the next fiscal year. The continuation of the Company as a going concern is dependent upon financial support from its stockholders, the ability of the Company to obtain necessary equity financing to continue operations, successfully locating and negotiate with a business entity for the combination of that target company with the Company.
There is no assurance that the Company will ever be profitable. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.
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NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS
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NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS
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9 Months Ended |
|---|---|
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Sep. 30, 2013
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| New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
| New Accounting Pronouncements and Changes in Accounting Principles [Text Block] |
NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS
In April 2013, the FASB issued ASU No. 2013-07, Presentation of Financial Statements (Top 205): Liquidation Basis of Accounting. The objective of ASU No. 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The amendments in this standard is effective prospectively for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. We are evaluating the effect, if any, adoption of ASU No. 2013-07 will have on our financial statements.
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements.
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NOTE 4 - RELATED PARTY BALANCES
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NOTE 4 - RELATED PARTY BALANCES
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9 Months Ended |
|---|---|
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Sep. 30, 2013
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| Related Party Transactions [Abstract] | |
| Related Party Transactions Disclosure [Text Block] |
NOTE 4 - RELATED PARTY BALANCES
During the three months ended September 30, 2013, a director, who is also a majority shareholder of the company, incurred operating expenses of $90,104 on behalf of the company. This balance was reduced by $100 due from the director for the purchase of the Company’s common stock on July 19, 2013. The net amount of $90,004 is reflected as amount due to related party on the accompanying unaudited financial statements as of September 30, 2013, and is due March 31, 2014. The director intends to convert this amount to common stock prior to December 31, 2013.
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NOTE 5 - SUBSCRIPTIONS RECEIVABLE
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NOTE 5 - SUBSCRIPTIONS RECEIVABLE
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9 Months Ended |
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Sep. 30, 2013
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| Receivables [Abstract] | |
| Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
NOTE 5 – SUBSCRIPTIONS RECEIVABLE
As of September 30, 2013, this director owed $21,000 to the Company related to the issuance of common stock to third parties. This amount is reflected as subscriptions receivable on the equity portion of the balance sheet on the accompanying unaudited financial statements as of September 30, 2013. The director intends to transfer these funds to the company in November 2013.
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NOTE 6 - STOCKHOLDER'S EQUITY /(DEFICIT)
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NOTE 6 - STOCKHOLDER'S EQUITY /(DEFICIT)
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9 Months Ended |
|---|---|
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Sep. 30, 2013
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| Stockholders' Equity Note [Abstract] | |
| Stockholders' Equity Note Disclosure [Text Block] |
NOTE 6 - STOCKHOLDER'S EQUITY / (DEFICIT)
The Company is authorized to issue 100,000,000 shares of common stock and 20,000,000 shares of preferred stock. As of September 30, 2013, 1,974,000 shares of common stock and no preferred stock were issued and outstanding.
In July, 2012, the Company issued 20,000,000 common shares to two directors and officers for an aggregated amount of $2,000 in cash.
As of September 30, 2013, the stockholders made a capital contribution in the amount of totally $2,157 to pay the auditing and operating expenses incurred by the Company.
On July 18, 2013, the Company redeemed an aggregate of 19,500,000 of the then 20,000,000 shares of outstanding stock at a redemption price of $0.0001 per share for an aggregate redemption price of $1,950.
On July 18, 2013, the Company issued 1,000,000 shares of common stock to a director and officer of the Company for an aggregate price of $100.00.
During the quarter ended September 30, 2013, the Company issued 474,000 common shares to third parties at prices from $.01 to $1.00 for an aggregated amount of $63,500.
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NOTE 7 - SUBSEQUENT EVENTS
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NOTE 7 - SUBSEQUENT EVENTS
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9 Months Ended |
|---|---|
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Sep. 30, 2013
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| Subsequent Events [Abstract] | |
| Subsequent Events [Text Block] |
NOTE 7 - SUBSEQUENT EVENTS
On October 30, 2013, the Company entered into a Purchase Agreement with Dollar Store Services, Inc. to develop, design and build out a retail store which the Company intends to begin operating in the fourth quarter of 2013. Additionally, the Company entered into a lease agreement on October 30, 2013 for 2,239 square feet of retail shop space for this store. The lease requires monthly payments of $2,613 for thirty six months beginning February 2014.
The Company plans to open an additional retail store in the first quarter of 2014.
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Accounting Policies, by Policy (Policies)
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Accounting Policies, by Policy (Policies)
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9 Months Ended |
|---|---|
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Sep. 30, 2013
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| Accounting Policies [Abstract] | |
| Basis of Accounting, Policy [Policy Text Block] | BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements to be read in conjunction with the 10-K. The accompanying unaudited financial statements include all adjustments, composed of normal recurring adjustments, considered necessary by management to fairly state our results of operations, financial position and cash flows. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. |
| Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP 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 revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
| Concentration Risk, Credit Risk, Policy [Policy Text Block] | CONCENTRATION OF RISK
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of September 30, 2013. |
| Income Tax, Policy [Policy Text Block] | INCOME TAXES
Under ASC 740, "Income Taxes", deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will not be realized. |
| Earnings Per Share, Policy [Policy Text Block] | LOSS PER COMMON SHARE
Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of September 30, 2013, there are no outstanding dilutive securities. |
| Fair Value Measurement, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for the asset or liability. |
NOTE 2 - GOING CONCERN (Details)
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NOTE 2 - GOING CONCERN (Details) (USD $)
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Sep. 30, 2013
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|---|---|
| Going Concern [Abstract] | |
| Development Stage Enterprise, Deficit Accumulated During Development Stage | $ 92,260 |
NOTE 4 - RELATED PARTY BALANCES (Details)
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NOTE 4 - RELATED PARTY BALANCES (Details) (USD $)
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9 Months Ended | ||||
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Sep. 30, 2013
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Dec. 31, 2012
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Sep. 30, 2013
Operating Expenses Incurred [Member]
Director [Member]
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Sep. 30, 2013
Purchase of Common Stock [Member]
Director [Member]
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Sep. 30, 2013
Director [Member]
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| NOTE 4 - RELATED PARTY BALANCES (Details) [Line Items] | |||||
| Related Party Transaction, Amounts of Transaction | $ 90,104 | $ 100 | |||
| Due to Related Parties, Current | $ 90,004 | $ 0 | $ 90,004 | ||
NOTE 5 - SUBSCRIPTIONS RECEIVABLE (Details)
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NOTE 5 - SUBSCRIPTIONS RECEIVABLE (Details) (USD $)
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Sep. 30, 2013
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Dec. 31, 2012
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|---|---|---|
| NOTE 5 - SUBSCRIPTIONS RECEIVABLE (Details) [Line Items] | ||
| Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | $ 21,000 | $ 0 |
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Director [Member]
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| NOTE 5 - SUBSCRIPTIONS RECEIVABLE (Details) [Line Items] | ||
| Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | $ 21,000 |
NOTE 6 - STOCKHOLDER'S EQUITY /(DEFICIT) (Details)
NOTE 7 - SUBSEQUENT EVENTS (Details)
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NOTE 7 - SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], USD $)
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0 Months Ended |
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Oct. 30, 2013
sqft
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Subsequent Event [Member]
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| NOTE 7 - SUBSEQUENT EVENTS (Details) [Line Items] | |
| Description of Lessee Leasing Arrangements, Operating Leases | Company entered into a lease agreement on October 30, 2013 for 2,239 square feet of retail shop space for this store.The lease requires monthly payments of $2,613 for thirty six months beginning February 2014. |
| Area of Real Estate Property (in Square Feet) | 2,239 |
| Operating Leases, Rent Expense, Minimum Rentals (in Dollars) | $ 2,613 |
| Lessee Leasing Arrangements, Operating Leases, Term of Contract | 36 months |