Amazonas Florestal Ltd (AZFL)

[Penny Profit Pro]

AMAZONAS FLORESTAL, LTD.
Quarterly Report
For The Period Then Ended
As of: June 30, 2017
1) Name of Issuer and its predecessors if any)
Amazonas Florestal Ltd. (“AZFL” for the Company) formerly known as Ecologic Systems Inc., Amazonas Florestal Ltd. is a
Nevada corporation. The name change occurred on April 11th, 2012.
2) Address of the issuers principal executive offices:
Company Headquarters
Amazonas Florestal, Ltd. 40 SW 13th Street, Suite 404 Miami, FL 33131 Telephone: [phone] [e-mail]
website: www.azflusa.com
3) Security Information
Trading Symbol: AZFL
Exact title and class of securities outstanding:
AZFL Common Stock CUSIP: 02314H109 par value: $0.001
Total shares authorized: 3,000,000,000 as of: 6/30/2017
Total shares outstanding: 2,021,001,184 as of: 6/30/2017
Amazonas Florestal Ltd. Preferred Shares par value $0.001
Total shares authorized: 10,000,000 as of: 6/30/2017
Total shares outstanding: 0 as of: 6/30/2017
Transfer Agent:
V Stock Transfer, LLC. 18 Lafayette Place Woodmere, NY 11598 [phone] or (855)9-VSTOCK Fax No [phone]
Email: [e-mail]
Is the Transfer Agent registered under the Exchange Act? X Yes: No:
To be included in the OTC Pink Current Information tier, the transfer agent must be registered under the Exchange Act. List any
restrictions on the transfer of security: There are no restrictions on the transfer of security. Describe any trading suspension orders
issued by the SEC in the past 12 months.
There has been no trading-suspension orders issued in the past three (3) months, nor listed any stock dividends, recapitalizations,
mergers, spin-offs, or reorganizations either currently anticipated or that occurred within the past three (3) months:
As of: June 30
th, 2017.
4) Market Price Range of Common Equity
The Company's Common Stock trades on the OTC Bulletin Board under the symbol “AZFL”. The Company's stock has been previously
quoted in the National Quotation Bureau "Pink Sheets" under the symbol "AZFL." The following table sets forth the high and low bid
quotations for the Company's common stock for the period September 30, 2015 through June 30, 2017, as follows:
Quarters High Low Volume
30-Sep-15 0.10 0.01 24,783
31-Dec-15 0.10 0.10 1,150
31-Mar-16 0.12 0.04 1,350
30-Jun-16 0.02 0.02 11,019
30-Sep-16 0.03 0.03 5,500
29-Dec-16 0.01 0.01 1,008
31-Mar-17 0.0019 0.0020 48,898,609
30-Jun-17 0.0019 0.0020 48,898,609
1
5) Issuance History during the Quarter:
Shares Amount Capital Total
Ending Balance December 31, 2016 99,595,935 99,596 1,520,893 1,620,489
Cede & Co 134,287,000 134,287 (34,786) 99,501
Ending Balance June 30, 2017 233,882,935 233,883 1,486,107 1,719,990
6) Financial Statements
Currently, the company submits its unaudited and audited financial statements with the OTC Markets as a member.
7) Describe the Issuer’s Business, Products and Services
The AZFL management team and its shareholders, some of whom have owned large tracts of land in the Amazon Rain Forest for
over fifty years are committed to sustainable forest management and the bio-diversity of the Amazon Rain Forest. AZFL is
building a business strategy that will enable its development into a profitable enterprise, as well as preserve the balance
environmental integrity and consumer needs.
Timber Market
Since inception, AZFL has acted as Timber Agent providers of various species of wood products from the Amazon Rain Forest.
As Timber Agents, AZFL acts as originating broker and sales agent for various timber products. Current operations focus on the
sale of wood products Current operations focus on the sale of wood products procured from third-party timberland owners and
producers in Brazil.
Employees
AZFL has 3 full time employees. Two operate in the USA and one in Brazil. AZFL currently has no key employees, other than
Peter W Stebbins, AZFL’s COO and Chairman Mr. Ricardo Cortez, also Director/Secretary/treasurer and shareholder in AZFL.
Employees do not currently receive stock benefits for their performance and shareholders are donating their time to many of the
company’s efforts.
8) Describe the Issuer’s Facilities
The Company’s corporate operations, sales, & marketing and accounting are conducted at its Miami Florida location at: 60 SW
13th Street, Suite 404 Miami, FL 33131.
9) Officers, Directors, and Control Person.
A. Names of Officers, Directors, and Control Persons.
Peter W. Stebbin – Director/CEO
Juan Carlos Ubieto - Director/IRO
Ricardo R. Cortez - Treasurer /Secretary/ Director
As of June 30th, 2017, officers, directors, control persons and shareholders who owned more than 4.99% of the issued and
outstanding stock in AZFL are: Juan Carlos Ubieto (24.77%); and Green America Properties LLC whose control person is
Salvador Vasquez (41.23%).
B. Legal/Disciplinary History. Please identify whether any of the foregoing persons have, in the last five years, been the subject of:
1. A conviction in a criminal proceeding or named as a defendant in a pending criminal proceeding (excluding traffic violations
and other minor offenses): None
2. The entry of an order, judgment, or decree, not subsequently reversed, suspended or vacated, by a court of competent
jurisdiction that permanently or temporarily enjoined, barred, suspended or otherwise limited such person’s involvement in any
type of business, securities, commodities, or banking activities: None
2
3. A finding or judgment by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission, the
Commodity Futures Trading Commission, or a state securities regulator of a violation of federal or state securities or
commodities law, which finding or judgment has not been reversed, suspended, or vacated: None
4. The entry of an order by a self-regulatory organization that permanently or temporarily barred suspended or otherwise limited
such person’s involvement in any type of business or securities activities: None
C. Beneficial Shareholders. Provide a list of the name, address and shareholdings or the percentage of shares owned by all persons
beneficially owning more than ten percent (10%) of any class of the issuer’s equity securities. If any of the beneficial shareholders
are corporate shareholders, provide the name and address of the person(s) owning or controlling such corporate shareholders and
the resident agents of the corporate shareholders: JC Ubieto (24.77%); and American Green Properties LLC (25.00%).
Third Party Providers
Legal Counsel
Michael H. Hoffman, P.A.
Address: 1521 Alton Road, Suite 284
Email: [e-mail]
Accountant/CPA
Jaspar Pardiwala
Address: 1769 NW 79th Ave. Doral, Florida
Email:[e-mail]
Issuer Certification and Disclosure Statement
I, Ricardo Cortez, Secretary/Treasurer/Director of AZFL hereby certify that, I have reviewed this quarterly report for the quarter
then ended as of December 31st, 2016 to the best of my knowledge, the statements of financial position, operations, cash flows, and
the accompanying notes to the financial statements information being disclosed in this report are fairly presented and stated in all
material respects.
]
/s/Ricardo R Cortez [Chairman/Director/Secretary/Treasurer]
Aug 5
th, 2017
PART I — FINANCIAL INFORMATION
Statements in this Form 10-Q Quarterly Report may be “forward-looking statements.” Forward-looking statements include, but are not limited
to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or
other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based,
in part, on assumptions made by our management. These assumptions are not guarantees of future performance and involve risks, uncertainties
and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted
in the forward-looking statements due to numerous factors, including those risks discussed in this Form 10-Q Quarterly Report, under
“Management’s Discussion and Analysis of Financial Condition or Plan of Operation” and in other documents which we file with the
Securities and Exchange Commission.
In addition, such statements could be affected by risks and uncertainties related to our financial condition, factors that affect our industry,
market and customer acceptance, changes in technology, fluctuations in our quarterly results, our ability to continue and manage our growth,
liquidity and other capital resource issues, competition, fulfillment of contractual obligations by other parties and general economic conditions.
Any forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after the date of this Form 10-Q Quarterly Report, except as required by law.
3
Item 1 Financial Statements
AMAZONAS FLORESTAL, LTD.
Table of Contents
PAGE No.
Accountant’s Compilation and Review Report .............................. 4
Comparative Statements of Financial Position ............................ 5
Comparative Statements of Operations .................................... 6
Comparative Statements of Cash Flows .................................... 7
Notes to Financial Statements ......................................... 8 - 21
4
___________________________
_____________________________
__________________________________
___________________________________
_________________________________
ACCOUNTANT’S COMPILATION AND REVIEW REPORT
To the Board of Directors and Stockholders’
Amazonas Florestal Ltd
60 SW 13th Street, Suite 404
Miami, Florida
I have compiled and reviewed the accompanying Comparative Statements of Financial Position of
Amazonas Florestal, Ltd. as of June 30th, 2017 and March 31st, 2017, and the related statements of operations, changes
in stockholders' deficit and cash flows for the years then ended. I have not audited the accompanying financial
statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements
are in accordance with accounting principles generally accepted in the United States of America.
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America and for designing, implementing, and
maintaining internal control relevant to the preparation and fair presentation of the financial statements.
I conducted my compilation and review in accordance with the standards of the American Institute of Certified
Public Accountants (United States). Those standards require that I plan and perform the compilation and review in order to
obtain reasonable assurance about whether the comparative financial statements are free of material misstatements,
irregularities, errors, and omissions. A review includes examining, on a test basis, evidence supporting the amounts and
disclosures in the comparative financial statements. A review also includes assessing the overall comparative financial
statements presentation. I believe that my compilation and review provides a reasonable basis for my presentation.
My responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting
and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation
is to assist management in presenting financial information in the form of financial statements without undertaking to
obtain or provide any assurance that there are no material modifications that should be made to the financial statements.
______________________
Aug 11th, 2017
5
6
Amazonas Florestal, Ltd
Comparative Statements of Financial Position
For The Quarter Ended
As of: June 30, 2017
ASSETS
Current Assets Cash and Checking
Total Current Assets
Other Current Assets
Accounts Receivable
Prepaid Expenses
Loans to the Officers
Inventory-Timber
Investments
Total Other Current Assets
Fixed Assets
Lands - Manuel Nazareno Alves Da Silva
Lands - Earth Pass
Total Fixed Assets
Other Assets
Organization Costs
Less: Accumulated Amortization
Total Other Assets
TOTAL ASSETS
LIABILITIES & EQUITY
Current Liabilities
Unaudited Unaudited
June 30,2017 March 31,2017
7,180 340,643
7,180 340,643
187,500 187,500
59,720 59,720
565,014 565,014
758,500 365,000
1,386,234 989,734
368,919 368,919
2,783,686 2,782,686
3,152,605 3,151,605
47,000 47,000
- -
19,056 16,448
27,944 30,552
4,758,463 4,700,034
Accounts Payable 5,625 5,625
Notes Payable to: Empire Wireless Group LLC 300,000 300,000
Notes Payable to: 303 Farms LLC 246,733 246,733
Notes Payable to: Alex Luis Ripalda 225,000 225,000
Due to Joint Venture- Think Green LLC 113,800 113,800
7
Notes Payable - Canaway, Inc
Notes Payable - Green America Properties, Llc
Notes Payable - Gianfranco Matu
Note Payable - Maya Melendez
Notes Payable - Raquel Fernandez
Total Current Liabilities
Long Term Liabilities
Loan Payable - Manuel Nazareno Alves Da Silva
Total Long Term Liabilities
Stockholder's Equity Section
Common Stock
Par value ($0.001), 3,000,000,000 Shares Authorized
233,882,935 and 233,882,935 Issued and
Outstanding as of March 31, 2017; and June 30,
2017, respectively.
Additional Paid-In Capital
Retained Earnings
Total Stockholder's Equity
TOTAL LIABILITIES & EQUITY
972,875 972,875
732,155 732,875
105,875 105,875
50,000 50,000
105,875 105,875
3,057,938 2,857,938
231,449 368,919
231,449 368,919
233,833 233,883
1,486,107 1,486,107
-425,774 -246,814
1,291,606 1,473,786
4,758,463 4,700,034
8
Sales of Timberlands Less:
Cost of Goods Sold:
Forest Management Services
Freight-Out
Purchases of Timber
Other Costs
Total Cost of Goods
Sold Gross Margin
Expense
Auto Expense
Bank Service Charges
Consulting Services
General and Administrative
Interest Expense
Insurance
Licenses and Taxes
Meals and Entertainment
Miscellaneous Exp
Officers Compensation
Office Rent Expense
Postage and Delivery
Public Relations
Professional Fees
Telephone Expense
Travel, Hotel and Entertainment
Utilities
Amazonas Florestal, Ltd
Comparative Statements of Net Income
For The Quarter Ended
As of: March 31, 2017
Unaudited Unaudited
June 30,2017 March 31,2017
96 20
320 148
1,450
17,390 9,700
1,000 1,000
3,206 2,317
1,441 334
6,015 5,915
1,000
85,199 115,074
14,595 16,005
50 150
701 3,704
9,170 7,900
1,870 59
38,288 27,057
1,622 623
9
Total Expense 180,962 192,456
Net Income Before Depreciation - -
180,962 49,142
and Amortization Expense
Less: Depreciation and Amortization - -
2,608 2,608
Net Income - -
183,570 195,064
Weighted Average No. of Shares
Earnings Per Share
10
OPERATING ACTIVITIES
Net Income
Adjustments to reconcile Net Income
to net cash provided by operations:
Add: Amortization and Depreciation
Accounts Payable
Inventory-Timber
Investments
Loans to the Officers
Prepaid Expenses/
Accounts Payable
Net cash used by Operating Activities
INVESTING ACTIVITIES
Investments
Lands - Earth Pass, Llc
Lands - Manuel Nazareno A. Da Silva
Net cash used by Investing Activities
FINANCING ACTIVITIES
Due to Think Green, Inc.
Notes Payable - Maya Melendez
Common Stock
Net cash provided by Financing Act.
Notes Payable - Canaway Inc
Notes Payable - BPA
Notes Payable - Green American
Properties
Loans from Shareholders
Empire Wireless Group LLC
Amazonas Florestal, Ltd
Comparative Statements of Cash Flow
For The Quarter Then Ended
As of: June 30, 2017
Unaudited Unaudited
June 30,2017 March 31,2017
- -
183,570 195,064
2,608 1,308
- -
187,500
-37,319
-393,500 -352000
-
59,720
1,000 500
- -
573,462 829,795
-
717,314
-
230,000
-
947,314
- -
- -

- -
10,000
-50,000
-210,720
-1,599
200,000 300,000
11
303 Farms LLC 246,733
Alex Luis Ripalda 225,000
Loan Payable - Manuel Nazareno Alves
Da Silva 40,000 -130,000
Net cash provided by Financing Act.
Stock Distributions
240,000 389,414
4,599,259
Additional Paid-In Capital -
34,786 12,950,920
Common Stock 134,286
-
17,718,080
Non- cash supplemented by Financing
Activities 3,058,733 -167,901
Net cash increase for period -
333,462 339,032
Cash at beginning of period 340,642 1,610
Cash at end of period 7,180 340,642
12
13
AMAZONAS FLORESTAL, LTD.
Notes to the Financial Statements
For The Quarter Ended
As of: June 30, 2017
Description of Business
Headquartered in Miami, Florida (60 SW 13th Street, Suite 404, Miami, FL 33131) and with operations in Amazonas, Brazil (Rua Sao Salvador
120 Andar Vierialves, Business Center Manaus, Amazonas, Brazil) Amazonas Florestal Inc., (“AMZO”), is a Florida corporation founded in
2010 as a diversified timber company, with a focus on sustainable practices in the management of its forestry holdings in the Brazilian state of
Amazonas. The AMZO management team and its shareholders, some of whom have owned large tracts of land in the Amazon Rain Forest for
over fifty years, are committed to sustainable forest management and the biodiversity of the Amazon Rain Forest. AMZO intends to build a
business strategy that will enable its development into a profitable enterprise, as well as preserve the balance between environmental integrity
and consumer needs.
Summary of significant Accounting Policies:
Basis of Presentation
The accompanying unaudited comparative quarterly financial statements have been prepared on a basis consistent with newly adapted
International Financial Reporting Standards (IFRS) that is replacing generally accepted accounting principles in the United States (“GAAP”)
for interim financial information for companies reporting operations in other countries with respect to reporting requirements and rules of the
Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited financial statements reflect all
adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the results of operations, financial
position and cash flows for the periods presented. The results of operations for the periods are not necessarily indicative of the results expected
for the full year or any future period. These statements should be read in conjunction with the Entity’s Annual Report on Form 10-K for the
year ended December 31, 2016 as filed with the SEC. (the “2016 Annual Report”).
Long-Lived Assets
In accordance with Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360 Property, Plant,
and Equipment, the Company records impairment losses on long-lived assets used in operations when indicators of impairment are present and
the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. There were no impairment
charges during the quarter ended June 30, 2017 and the year ended December 31, 2016.
Fair Value of Financial Instruments
The fair values of the Company’s assets and liabilities that qualify as financial instruments under FASB ASC Topic 825, Financial
Instruments, approximate their carrying amounts presented in the accompanying consolidated statements of financial condition as of June 30,
2017 and December 31, 2016, respectively.
Revenue Recognition
In accordance with the FASB ASC Topic 605, Revenue Recognition, the Company recognizes revenue when persuasive evidence of an
arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured.
Income Taxes
The Company accounts for income taxes in accordance with FASB ASC Topic 740 Income Taxes, which requires accounting for deferred
income taxes under the asset and liability method. Deferred income tax asset and liabilities are computed for differences between the financial
statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on the 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 the deferred income tax assets to the amount expected to be realized.
Comprehensive Income
The Company complies with FASB ASC Topic 220, Comprehensive Income, which establishes rules for the reporting and display of
comprehensive income (loss) and its components. FASB ASC Topic 220 requires the Company’s change in foreign currency
translation adjustments to be included in other comprehensive loss, and is reflected as a separate component of stockholders’ equity.
14
AMAZONAS FLORESTAL, LTD.
Notes to the Financial Statements
For The Quarter Ended
As of: June 30, 2017
Stock-Based Compensation
The Company complies with FASB ASC Topic 718 Compensation – Stock Compensation, which establishes standards for the accounting for
transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs
liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the
issuance of those equity instruments. FASB ASC Topic 718 focuses primarily on accounting for transactions in which an entity obtains
employee services in share-based payment transactions. FASB ASC Topic 718 requires an entity to measure the cost of employee services
received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost
will be recognized over the period during which an employee is required to provide service in exchange for the award (usually the vesting
period). No compensation costs are recognized for equity instruments for which employees do not render the requisite service. The grant-date
fair value of employee share options and similar instruments will be estimated using option-pricing models adjusted for the unique
characteristics of those instruments (unless observable market prices for the same or similar instruments are available). If an equity award is
modified after the grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair value of the
modified award over the fair value of the original award immediately before the modification. There were no employee stock options or stock
awards vested under FASB ASC 718 during the quarter ended as of June 30, 2017.
Nonemployee awards
The fair value of equity instruments issued to a nonemployee is measured by using the stock price and other measurement assumptions as of
the date of either: (i) a commitment for performance by the nonemployee has been reached; or (ii) the counterparty’s performance is complete.
Expenses related to nonemployee awards are generally recognized in the same period as the Company incurs the related liability for goods and
services received. The Company recorded stock compensation of approximately $-0- during the three months ended June 30, 2017 that related
to consulting services.
Recently Adopted Accounting Pronouncements
ASU 2011-04 In May 2011, the FASB issued Accounting Standards Update 2011-14, Fair Value Measurement (Topic 820). This Update will
improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with US GAAP
and International Financial Reporting Standards (“IFRS”). The amendments in this Update result in common fair value measurement and
disclosure requirements in U.S. GAAP and IFRSs and they explain how to measure fair value and they do not require additional fair value
measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The amendments
in this Update apply to all reporting entities that are required or permitted to measure or disclose the fair value of an asset, a liability, or an
instrument classified in a reporting entity’s shareholders’ equity in the financial statements.
The amendments in this update are to be applied prospectively. For public entities, the amendments are effective during interim and annual
periods beginning after December 15, 2011. Early application by public entities is not permitted. The adoption of ASU 2011-04 is not expected
to have any material impact on our financial position, results of operations and (or) cash flows.
ASC 480, In March of 2012, the FASB issued Accounting Standards Update, Distinguishing Liabilities from Equity ; primarily originated from
FAS 150 and related interpretations. This subtopic establishes standards for how an issuer classifies and measures certain financial instruments
with characteristics of both liabilities and equity. The guidance applies to freestanding financial instruments, thus reinforcing the importance of
this determination.
The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its
results of operation, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have
a significant effect on its consolidated financial statements.
Contingent liabilities
The Company reports contingent liabilities in accordance with IAS 37 which defines a contingent liability differently than US GAAP;
Under IAS 37, the reporting entity is not to give formal recognition to a contingent liability, but it should disclose in the notes to the
financial statements the following information:
1. An estimate of its financial effect;
2. An indication of the uncertainties relating to the amount or timing of any outflow; and
3. The possibility of any reimbursement.
Earnings per share
The Company complies with the accounting and disclosure requirements of FASB ASC 260, earnings per share. Basic loss per common share
is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the
period. Diluted loss per common share incorporates the dilutive effect of common stock equivalents on an average basis during the period.
15
AMAZONAS FLORESTAL, LTD.
Notes to the Financial Statements
For The Quarter Ended
As of: June 30, 2017
NOTE 1: RECENT CORPORATE HISTORY
Amazonas Florestal, Ltd. (formerly Ecologic Systems, Inc.), (“the Company”) was originally
incorporated on December 18, 2008 under the name of Ecologic Rentals, Inc. in the State of Nevada.
NOTE 2: NATURE OF BUSINESS
Timber Activities
Headquartered in Miami, Florida (60 SW 13th Street, Suite 404, Miami, FL 33131) and having
forest operations located in Brazil.
NOTE 3: SUMMARY OF SIGNFICANT ACCOUNTING POLICIES
This summary of significant accounting policies is presented to assist in understanding the
Company’s financial statements. These accounting policies have been revised to conform to
accounting principles that are in accordance with International Financial Reporting Standards
(IFRS) IAS 39, and have been consistently applied in the preparation of the Statements of
Financial Position IAS 1 for the quarter ended as of March 31, 2017.
Use of Estimates
In the preparation of the Company’s financial statements have adapted to IAS 34 that
recognizes preparation of interim financial statements will require greater use of estimates
than annual financial statements.
Fiscal or Calendar Year End
The Company has a calendar year ending December 31st.
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.
Fair Value of Financial Instruments
The carrying amounts reported in the balance sheet for cash, accounts payable and accrued
expenses approximate fair value based on the short-term maturity of these instruments.
Earnings (Loss) per Share
Basic earnings (loss) per share are computed by dividing net income, or loss, by the weighted
average number of shares of common stock outstanding for the period. Diluted earnings (loss)
per share is computed by dividing net income, or loss, by the weighted average number of shares
of both common and preferred stock outstanding for the period.
Inventories
Inventories of logs, lumber, and supplies are stated at the lower of cost or market within the
Company’s Operating areas, primarily using the average cost method. Log costs include harvest
and transportation cost as appropriate. Lumber costs include materials, labor, and production
overhead. (For additional information, see Note 4 – Inventories.)
Timber and Timberlands
Timber and timberlands, which include timberland, fee timber, purchased stumpage inventory, and
logging facilities, are stated at cost, less the cost of fee timber harvested and accumulated
depreciation of logging facilities, and includes no estimated future reforestation cost. The cost of
timber consists of fee timber acquired from government approved timber extraction projects. The cost
of fee timber harvested is based on the volume of timber approved to be harvested. Logging
16
AMAZONAS FLORESTAL, LTD.
Notes to the Financial Statements
For The Quarter Ended
As of: June 30, 2017
facilities, which consist primarily of pathways constructed and other land improvements, are
depreciated using the straight-line method over a ten-year estimated life. The Company
estimates the fees for timber inventory using statistical information and data obtained from
physical measurements and other information gathering techniques from government engineers. Fee
timber carrying costs, commercial thinning, engineering fees, and timberland management costs
are capitalized.
Property, Plant, and Equipment
Property, plant, and equipment assets are stated at cost less accumulated depreciation. Depreciation
of buildings, equipment, and other depreciable assets is primarily determined using the straight-line
method. Expenditures that substantially improve and/or increase the life of facilities or equipment
are capitalized. Maintenance and repair costs are expensed as incurred. Gains and losses on disposals
or retirements are recognized in the period they occur. Property, plant, and equipment assets are
evaluated for possible impairment on a specific asset basis or in groups of similar assets, as
applicable, whenever events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of
the carrying amount of an asset to estimated undiscounted future net cash flows to be generated by
the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment
loss is recognized for the amount by which the carrying amount of the asset exceeds the fair value of
the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value
less costs to sell, and depreciation ceases.
Revenue Recognition
The Company recognizes revenue when the following criteria are met: (1) persuasive evidence of
an agreement exists, (2) delivery has occurred or services have been rendered, (3) the price to
the buyer is fixed and determinable, and (4) collectability is reasonably assured. Delivery is
not considered to have occurred until the customer takes title and assumes the risks and
rewards of ownership. Revenue from the sale of lumber and wood by-products is recorded at the
time of shipment due to terms of such sale being designated free on board (“f.o.b.”) shipping
point. Revenue from the sale of timber-cutting rights to third parties is recorded when legal
title passes to the purchaser, which is generally upon delivery of a legally executed timber
deed and receipt of payment for the timber. These revenue recognition procedures meet the five
conditions in order to be in accordance with IAS 18 with respect to the sale of goods.
Unearned Revenues
The Company employed the use of from customer prepayments for either performance of services or
delivery of product, and classified in accordance with IAS 1 as current liabilities at the end
of the reporting period if the services are to be performed or the products are to be delivered
within one year of the operating cycle, whichever is longer.
Income Taxes
The Company uses the asset and liability method of accounting for income taxes in accordance
with ASC740-10, “Accounting for Income Taxes.” Under this method, income tax expense is
recognized for the amount of: (i) taxes payable or refundable for the current year; and, (ii)
deferred tax consequences of temporary differences resulting from matters that have been
recognized in an entity’s financial statements or tax returns.
Deferred Tax Liability
Deferred tax liabilities and benefits on deferred income, assets and liabilities will be
measured and netted using the applicable enacted tax rates attributable to taxes owed on
deferred taxable income and offset by deferred tax credits attributable to deferred tax assets
and liabilities in future years due to the temporary differences of net income and taxable
income are accounted for as deferred tax liabilities and deferred tax credits.
Property Taxes
Property taxes applicable to the Company’s assets are estimated and accrued in the period of
assessment. The company is liable to reimburse the original owners of the lands who assigned them
17
AMAZONAS FLORESTAL, LTD.
Notes to the Financial Statements
For The Quarter Ended
As of: June 30, 2017
to the Company for the right to use them for payment of the rural land taxes in Brazil, known
as Imposto Territorial Rural (ITR). The property taxes are based on approximately 2% of the
historical value of the property.
Net Change in Purchased Stumpage Inventory
Purchased stumpage inventory consists of timber-cutting rights and ownership of the actual trees
purchased from third parties specifically for use in the Company’s production and milling operations.
Shipping and Handling Costs
Shipping and handling costs, such as freight to the customers’ destinations, are included in
cost of sales in the Company’s statements of operations. These costs, when included in the
amount invoiced to customers, are also recognized in net sales.
Off-Balance Sheet Arrangements the Company evaluates its transactions to determine if any variable
interest entities exist. If it is determined that the Company is the primary beneficiary of a variable
interest entity, then the entity will be consolidated in to the Company’s financial statements.
Recently Adopted Accounting Standards the Company evaluates the pronouncements of various
authoritative accounting organizations, primarily the Financial Accounting Standards Board
(“FASB”), the US Securities and Exchange Commission (“SEC”), and the Emerging Issues Task Force
(“EITF”), to determine the impact of new pronouncements on US GAAP and the impact on the
Company. The Company has adopted the following new accounting standards:
Fair Value Measurements: – Accounting Standards Update (“ASU”) No.2010-06 amended existing disclosure
requirements about fair value measurements by adding required disclosures about items transferring in
to and out of levels 1 and 2in the fair value hierarchy; adding separate disclosures about purchase,
sales, issuances, and settlements relative to level 3 measurements; and clarifying, among other
things, the existing fair value disclosures about the level of disaggregation. The ASU was adopted
during the period ended March 31, 2010, and its adoption had no impact on the Company’s consolidated
financial position, results of operations or cash flows.
Consolidations: – ASU No.2009-17 revised the consolidation guidance for variable-interest entities.
The modifications include the elimination of the exemption for qualifying special purpose entities,
a new approach for determining who should consolidate a variable-interest entity, and changes
to when it is necessary to reassess who should consolidate variable-interest entity. The ASU
was adopted during the period ended March 31, 2010, and its adoption had no impact on the
Company’s consolidated financial position, results of operations or cash flows.
Embedded Derivatives: – ASU No. 2010-11 clarified that the transfer of credit risk that is only
in the form of subordination of one financial instrument to another is an embedded derivative
feature that should not be subject to potential bifurcation and separate accounting. This ASU
was adopted during the period ended September 30, 2010, and its adoption had no impact on the
Company’s consolidated financial position, results of operations or cash flows.
Recently Issued Accounting Standards Updates The following accounting standards updates were recently
issued and have not yet been adopted by the Company. These standards are currently under review to
determine their impact on the Company’s financial position, results of operations, or cash flows.
Stock Compensation: - Issued in April 2010, ASU No.2010-13 clarifies the classification of how
an employee based payment award with an exercise price denominated in the currency of a market
in which the underlying security trades. This ASU was effective for the first fiscal quarter
beginning after December 15, 2010.
Business Combinations: Issued in December 2010, ASU 2010-29 requires a public entity to disclose pro
forma information for business combinations that occurred in the current reporting period. The
disclosures include pro forma revenue and earnings of the combined entity for the current reporting
18
AMAZONAS FLORESTAL, LTD.
Notes to the Financial Statements
For The Quarter Ended
As of: June 30, 2017
period as though the acquisition date for all business combinations that occurred during the
year had been as of the beginning of the annual reporting period. This ASU was effective for
business combinations for which the acquisition date is on or after the beginning of the first
annual reporting period beginning on or after December 15, 2010.
There were various other updates recently issued, most of which represented technical
corrections to the accounting literature or application to specific industries. None of the
updates are expected to have a material impact on the Company's consolidated financial
position, results of operations or cash flows.
Going Concern We have incurred debts since inception and our ability to continue as a going
concern depends upon our ability to develop profitable operations and to continue to raise
adequate financing. We are actively targeting sources of additional financing to provide
continuation of our operations. In order for us to meet our liabilities as they come due and to
continue our operations, we are solely dependent upon our ability to generate such financing.
There can be no assurance that the Company will be able to continue to raise funds, in which
case we may be unable to meet our obligations and we may cease operations. These factors, among
others, raise substantial doubt about the Company’s ability to continue as a going concern.
NOTE 4: INVENTORIES
According to IAS 2 Inventories are assets held, either for sale in the ordinary course of
business or in the process of production for such sale, or in the form of materials or supplies
to be consumed in the production process or in the rendering of services. The basis of
valuation is now limited to FIFO or weighted-average cost, should be disclosed.
Inventories consist of nine (9) land management areas totaling 10.074 Hectares of forest that is
estimated to yield approximately 506,914,275 cubic meters of 46 various species having various
densities of timber having a market value of 40.00 Brazilian Reals per cubic meter, according to the
Consultoria Florestal E Ambiental Da Amazonia, Ltd appraisal on November 25, 2015.
Ending Inventories of various species of timber costs are estimated using FIFO decrease by
$1,971 from $565,471 to $563,500 (US Dollars) worth of sellable timber allocated with respect
to its land management area under Note 5, accordingly.
NOTE 5: PROPERTY, PLANT AND EQUIPMENT
Property, plant, and equipment consist of the following:
On June 6, 2014, a purchase of nine (9) tracts of rural forest property was made for $589,919. A 3
year loan was signed in order to make the purchase. Estimated value of the inventory of timber
located on this land is worth approximately $1,994,040 as of December 31, 2015, allocated as follows:
Description No. of Hectares Land Values Forest Values Ending Inventory
1) Catuba Area DE 2.667 Hectares $156,176 $527,905 $139,703
2) Santa Cruz Area DE 447 Hectares 26,176 88,480 23,415
3) Jurara Area DE 938 Hectares 54,928 185,667 49,134
4) Santa Cruz II Area DE 900 Hectares 52,703 178,146 47,144
5) Capoeira II Area 910 Hectares 53,288 180,124 47,667
6) Capoeira I Area DE 842 Hectares 49,306 166,664 44,105
7) Canaa Area DE 767 Hectares 44,914 151,818 40,177
8) Yohaohama Area DE 1.240 Hectares 72,613 245,446 64,954
9) Managabeira Area DE 1.363 Hectares 79,815 269,790 71,396
Total Das Areas: 10.074 Hectares $589,919 1,994,040 527,695
19
AMAZONAS FLORESTAL, LTD.
Notes to the Financial Statements
For The Quarter Ended
As of: June 30, 2017
According to a Forest Consultant’s report dated June 4, 2014, these lands contain 46 various
kinds of tree species growing in these forests that can yield approximately 199,660 m3 (cubic
meters) of product having various densities, and valued at 7.986,400.00 in Brazilian Reals.
Actualized conversion rates for Brazilian Reals to US Dollars as of December 31st, 2014, 2015
and 2016 were BR 2.22; and BR 3.96; BR 3.13 according to exchange rate currency charts.
Converting these various species reported in the estimate that evaluated the timber at the 7.986,400
BR would be, valued in terms of US Dollars for the three years ended would be as follows:
December 31, 2016 @ 3.13 BR = $2,551,565
December 31, 2016 @ 2.22 BR = $3,597,477
December 31, 2015 @ 3.96 BR = $1,994,040
These conversions are in accordance with IAS 21 {The Effects of Changes in Foreign Exchange Rates}.
NOTE 6: FOREST MANAGEMENT PLANS PAYABLE
As of June 30, 2017, there were none.
Note 7: CONTINGENT LIABILITIES
As of June 30, 2017, there were none.
NOTE 8: STOCKHOLDERS’ EQUITY
Effective January 18, 2016, the Company amended its articles of incorporation to authorize
3,000,000,000 shares of common stock, having a par value of $0.001 per share. During the
quarter ended as of March 31, 2017, the Company has issued an additional 134,286,000 in
consideration of satisfying outstanding debts with its note holders.
As of June 30, 2017 and March 31, 2017, there were 233,882,935 and 233,882,935 shares issued
and outstanding having a par value of $0.001, respectively, according to the transcript of all
shares that were issued to shareholders by the Company using the par value method.
NOTE 9: NOTES PAYABLE
As of March 31, 2017 and December 31, 2016, the Company has total liabilities of $578,405 and
$105,625, respectively, as follows:
Description June 30, 2017 March 31, 2017
Notes payable to Empire Wireless 300,000 300,000
Notes payable for Colorodo Farm 246,733 246,733
Notes payable to Alex Luis Ripal 225,000 225,000
Totals 771,733 771,733
NOTE 10: SUBSEQUENT EVENTS
As of June 30, 2017, there were no subsequent events.
20
AMAZONAS FLORESTAL, LTD.
Notes to the Financial Statements
For The Quarter Ended
As of: June 30, 2017
NOTE 11: DEBT-CONVERSIONS
During the quarter ended as of June 30, 2017, the Company has participated in the following 3a10
Debt-Conversions requiring disclosure:
21
AMAZONAS FLORESTAL, LTD.
Notes to the Financial Statements
For The Quarter Ended
As of: June 30, 2017
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1933, this registrant has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly authorized in the City of Miami, State of Florida on Aug 5
th, 2017.
Amazonas Florestal, Ltd
(Registrant)
/s/ Ricardo Cortez, Director and Treasurer
By (Signature and Title)
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in
the capacities and on the dates indicated.
/s/ Ricardo Cortez, Director and Treasurer
Dated: August 5
th, 2017
22