XBRL Rendering Preview
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2017
Aug. 10, 2017
Document and Entity Information [Abstract]    
Entity Registrant Name BLACKSTAR ENTERPRISE GROUP, INC.  
Entity Central Index Key 0001483646  
Document Type 10-Q  
Document Period End Date Jun. 30, 2017  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   52,000,000
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2017  
Condensed Balance Sheets - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Current assets    
Cash $ 2,968 $ 14,175
Accrued interest receivable 32,795
Total Current assets 35,763 14,175
Fixed assets    
Furniture and equipment 1,659 1,659
Accumulated depreciation (461) (230)
Total fixed assets 1,198 1,429
Other assets    
Notes receivable 500,000 250,000
Total other assets 500,000 250,000
Total Assets 536,961 265,604
Current liabilities    
Accounts payable 5,067 1,066
Loan payable - related party 440,500 150,000
Total current liabilties 445,567 151,066
Stockholders' Equity    
Preferred stock, 10,000,000 shares authorized with $0.0001 par value. 1,000,000 shares issued outstanding respectively 1,000 1,000
Common stock, 200,000,000 shares authorized with $0.0001 par value. 52,000,000 issued and outstanding at each period respectively 52,000 55,825
Additional paid in capital 1,695,353 1,691,528
Additional paid in capital - warrants 1,360,000 1,360,000
Accumulated deficit (3,016,959) (2,993,815)
Total Stockholders' Equity 91,394 114,538
Total Liabilities and Stockholders' Equity $ 536,961 $ 265,604
Condensed Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]    
Preferred stock, par value per share $ 0.0001 $ 0.0001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 1,000,000 1,000,000
Preferred stock, shares outstanding 1,000,000 1,000,000
Common stock, par value per share $ 0.0001 $ 0.0001
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 52,000,000 52,000,000
Common stock, shares outstanding 52,000,000 52,000,000
Condensed Statements of Operations - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Income Statement [Abstract]        
REVENUE
Cost of revenues
GROSS PROFIT
Operating Expenses:        
Depreciation 115 230
Consulting expense 10,314 10,314
Filing fees 2,250 2,800  
Legal and professional 19,660 34,965  
Registration expense 12,500 12,500  
General and administrative 1,717 229 5,443 839
Total operating expenses 36,242 10,543 55,938 11,153
Income (loss) from operations (36,242) (10,543) (55,938) (11,153)
Other income (expense)        
Interest income (expense) 14,795 (3,750) 32,795 (7,500)
Other income (expense) net 14,795 (3,750) 32,795 (7,500)
Income (loss) before provision for income taxes (21,447) (14,293) (23,143) (18,653)
Provision (credit) for income tax
Net income (loss) $ (21,447) $ (14,293) $ (23,143) $ (18,653)
Net income (loss) per share        
(Basic and fully diluted) $ 0.00 $ 0.00 $ 0.00 $ 0.00
Weighted average number of common shares outstanding 55,187,475 11,112,421 55,642,829 11,112,421
Statements Of Stockholders' Equity - USD ($)
Common Stock [Member]
Preferred Stock [Member]
Paid-in Capital [Member]
Common Stock Subscribed [Member]
Accumulated Deficit [Member]
Total
Balance at Dec. 31, 2014 $ 11,112 $ 1,484,737 $ (1,821,730) $ (325,881)
Balance, shares at Dec. 31, 2014 11,112,421        
Net loss for the period         (17,800) (17,800)
Balance at Dec. 31, 2015 $ 11,112 1,484,737 (1,839,530) (343,681)
Balance, shares at Dec. 31, 2015 11,112,421        
Shares cancelled $ (1,000)   1,000    
Shares cancelled, shares (1,000,000)          
Shares exchanged for debt $ 1,313   51,191     52,504
Shares exchanged for debt, shares 1,312,549          
Shares issued for cash $ 44,400 $ 1,000 154,600     200,000
Shares issued for cash, shares 44,400,000 1,000,000        
Warrants issued     1,328,000     1,328,000
Warrants issued for debt     32,000     32,000
Net loss for the period         (1,154,285) (1,154,285)
Balance at Dec. 31, 2016 $ 55,825 $ 1,000 3,051,528 (2,993,815) 114,538
Balance, shares at Dec. 31, 2016 55,824,970 1,000,000        
Shares cancelled $ (3,825)   3,825    
Shares cancelled, shares (3,825,000)          
Adjust to transfer agent list      
Adjust to transfer agent list, shares 30          
Warrants exercised $ 16,320         16,320
Warrants exercised, shares 16,320,000          
Shares surrendered $ (16,320)         (16,320)
Shares surrendered, shares (16,320,000)          
Net loss for the period         (23,144) (23,143)
Balance at Jun. 30, 2017 $ 52,000 $ 1,000 $ 3,055,353 $ (3,016,959) $ 91,394
Balance, shares at Jun. 30, 2017 52,000,000 1,000,000        
Statements of Cash Flows - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash Flows From Operating Activities:    
Net income (loss) $ (23,143) $ (18,653)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 230
Changes in operating assets and liabilities    
Increase in accounts payable 4,002 1,618
Increase in accrued receivables (32,795)
Accrued interest payable 7,500
NET CASH USED IN OPERATING ACTIVITIES (51,707) (9,535)
CASH FLOWS USED IN INVESTING ACTIVITIES    
Increase in notes receivable (250,000)
NET CASH USED IN INVESTING ACTIVITIES (250,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Common stock subscribed   200,000
Subscrription receivable   (170,000)
Increase in notes payable - related party 290,500
NET CASH PROVIDED BY FINANCING ACTIVITIES 290,500 30,000
Net Increase (Decrease) In Cash (11,207) 20,465
Cash At The Beginning Of The Period 14,175
Cash At The End Of The Period 2,968 20,465
Supplemental Disclosure    
Cash paid for interest
Cash paid for income taxes
NATURE OF OPERATIONS AND BASIS OF PRESENTATION
6 Months Ended
Jun. 30, 2017
Nature Of Operations And Basis Of Presentation  
NATURE OF OPERATIONS AND BASIS OF PRESENTATION

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

BlackStar Enterprise Group, Inc. (the Company” or “BlackStar”) was incorporated in the State of Delaware on December 18, 2007 as NPI08, Inc. (“NPI08”). In January 2010, NPI08 acquired an ownership interest in Black Star Energy Group, Inc., a Colorado Corporation. BlackStar Energy then merged into NPI08, with NPI08 being the surviving entity. Concurrently, NPI08 changed its name to BlackStar Energy Group, Inc. On January 25, 2016, International Hedge Group, Inc. signed an agreement to acquire a 95% interest in the Company. The name was changed to BlackStar Enterprise Group, Inc. in August of 2016.

The Company is a Delaware corporation organized for the purpose of engaging in any lawful business. The Company intends to act as a merchant bank as at the date of these financial statements. It currently trades on the Pink Sheets under the symbol “BEGI”.

The Company’s fiscal year end is December 31st. The Company’s financial statements are presented on the accrual basis of accounting.

Basis of presentation – Unaudited Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with United States generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the financial statements for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. These unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.

GOING CONCERN
6 Months Ended
Jun. 30, 2017
Going Concern [Abstract]  
GOING CONCERN

NOTE 2 – GOING CONCERN

The Company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the financial statements for the six months ended June 30, 2017 and the years ended December 31, 2016 and 2015, the Company has generated no revenues capable of sustaining its operations but has incurred losses. . These conditions raise substantial doubt as to the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The continuation of the Company as a going concern is dependent upon the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's planned business. Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2017
Summary Of Significant Accounting Policies  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and cash equivalents

The Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties and all highly liquid investments with an original maturity of three months or less as cash equivalents.

 

Revenue recognition

The Company has realized minimal revenues from operations. The Company recognizes revenues when the sale and/or distribution of products is complete, risk of loss and title to the products have transferred to the customer, there is persuasive evidence of an agreement, acceptance has been approved by the customer, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable. Net sales will be comprised of gross revenues less expected returns, trade discounts, and customer allowances that will include costs associated with off-invoice markdowns and other price reductions, as well as trade promotions and coupons. The incentive costs will be recognized at the later of the date on which the Company recognized the related revenue or the date on which the Company offers the incentive.

Basic and Diluted Loss per Share

The Company computes loss per share in accordance with “ASC-260,” “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common share during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Diluted loss per share excludes all potential common shares if their effect is anti-dilutive.

Income Taxes

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.

The Company maintains a valuation allowance with respect to deferred tax asset. Blackstar Enterprise Group establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under Federal tax laws.

Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the reliability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change estimate.

Carrying Value, Recoverability and Impairment of Long-Lived Assets

The Company has adopted paragraph 360-10-35-17 of FASB Accounting Standards Codification for its long-lived assets. The Company’s long –lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.

The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the assets expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives.

The Company considers the following to be some examples of important indicators that may trigger an impairment review; (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner of use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and

(vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events.

The impairment charges, if any, are included in operating expenses in the accompanying statements of operations.

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 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 period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

The Company’s significant estimates include income taxes provision and valuation allowance of deferred tax assets; the fair value of financial instruments; the carrying value and recoverability of long-lived assets, and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.

Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates.

Fair value of Financial Instruments

The estimated fair values of financial instruments were determined by management using available market information and appropriate valuation methodologies. The carrying amounts of financial instruments including cash approximate their fair value because of their short maturities.

Long Lived Assets

In accordance with ASC 350 the Company regularly reviews the carrying value of intangible and other long lived assets for the existence of facts or circumstances both internally and externally that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long lived asset exceeds its fair value.

Stock-based Compensation

The Company accounts for stock-based compensation issued to employees based on FASB accounting standard for Share Based Payment. It 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 – the requisite service period (usually the vesting period). It requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. The scope of the FASB accounting standard includes a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The Company currently has no stock based compensation plan in place.

Recent pronouncements

Management has evaluated accounting standards and interpretations issued but not yet effective as of June 30, 2017, and does not expect such pronouncements to have a material impact on the Company’s financial position, operations, or cash flows.

PROPERTY, PLANT AND EQUIPMENT
6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 4 – PROPERTY, PLANT AND EQUIPMENT

During the quarter ended September 30, 2016, the Company purchased certain office equipment for a total of $1,659. This equipment is being depreciated over a three-year life and the Company has recorded a depreciation expense of $115 for the current quarter.

NOTE RECEIVABLE
6 Months Ended
Jun. 30, 2017
Note Receivable  
NOTE RECEIVABLE

NOTE 5 – NOTE RECEIVABLE

During the month of October 2016, the Company identified a target company in which management felt it would be beneficial to invest. The target company was looking for an aggregate investment of $2,500,000, of which the Company agreed to provide $500,000 and provide assistance in raising the remaining $2,000,000.

The terms of this investment are the note shall bear an interest rate of 12% and the lender (Company) shall receive 2 shares of Series B Convertible Preferred stock for each one dollar ($1.00) loaned to the target company. Payments on the note shall commence at such time the target company is generating gross revenues. The payment shall consist of 15% of the gross revenues ratably apportioned among the then existing note holders. Said payments to be applied first to accrued interest and then to the outstanding principal. Notwithstanding the aforementioned payment schedule the entire note becomes due and payable on February 1, 2019. Commencing not later than February 1, 2019, the target company shall pay a 15% dividend to the holders of the Series B Convertible Preferred stock until such time as each holder of the Series B Convertible Preferred stock has received an amount equivalent to their original loan. At such time the Series B Convertible Preferred stock shall be converted into common stock of the target company at the rate of one share of common stock for each share of Convertible stock.

During the month of January 2017, the Company advanced the second tranche of these funds.

As of the date of these financial statements, the target company has not begun to generate the revenues required to make the necessary payments to the lenders.

STOCKHOLDER'S DEFICIT
6 Months Ended
Jun. 30, 2017
Stockholders Deficit  
STOCKHOLDERS' DEFICIT

NOTE 6 – STOCKHOLDER’S DEFICIT

The total number of common shares authorized that may be issued by the Company is 200,000,000 shares with a par value of $0.001 per share. The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.001 per share.

On August 25, 2016, the Company issued 1,000,000 shares of its preferred series A stock to IHG in fulfillment of the purchase agreement. As at June 30, 2017 there are 1,000,000 preferred series A shares issued and outstanding. These shares are convertible at a ratio of 100 shares of the common stock of the Company for each share of preferred stock of the Company.

As at June 30, 2017 the total number of common shares outstanding was 52,000,000. During the period ended June 30, 2016 the Company entered into a purchase agreement with International Hedge Group, Inc. (“IHG”) whereby certain existing stockholders would surrender their stock and IHG would acquire a 95% working interest in the Company. The decrease was due to the cancellation of 3,825,000 shares that had been previously surrendered. The Company plans a private placement to raise funds to support operations. As at the date of these financial statements all of these shares have been cancelled. IHG’s commitment was to provide at least $200,000 in working capital within 6 months of the date of the agreement. As of the September 30, 2016 financial statements IHG has provided $100,000 of the commitment. On June 30, 2016, the Company signed an extension agreement allowing for an extension to October 30, 2016 for fulfillment of this obligation. During the month of October 2016 International Hedge Group fulfilled the commitment by paying the remaining $100,000.

During the quarter ended September 30, 2016, the Company issued 34,000,000 warrants for the purchase of its common stock at $0.05 per share. Using the Black-Scholes valuation model the Company assigned a value of $1,360,000 to these warrants. The Company recorded an expense of $1,328,000 on the operating statement for the quarter ended March 31, 2016. The Company also used 800,000 of these warrants to satisfy an account payable to a service provider. The value of the debt discharged in this transaction was $20,253. This transaction was with an unrelated party giving the Company a net loss of $11,747 on the debt relief.

Super Majority Voting Rights. The record Holders of the Class A Preferred Convertible Stock shall have the right to vote on any matter with holders of Common Stock and may vote as required on any action, which Delaware law provides may or must be approved by vote or consent of the holders of the specific Class of voting preferred shares and the holders of common shares. The Record Holders of the Class A Preferred Shares shall have the right to vote on any matter with holders of common stock voting together as one (1) class. The Record Holders of the Class A Preferred Shares shall have that number of votes (identical in every other respect to the voting rights of the holders of other Class of voting preferred shares and the holders of common stock entitled to vote at any Regula or Special Meeting of the Shareholders) equal to that number of common shares which is not less than60% of the vote required to approve any action, which Delaware law provides may or must be approved by vote or consent of the holders of other Class of voting preferred shares and the holders of common shares or the holders of other securities entitled to vote, if any.

As at June 30, 2017, IHG is the holder of 54.00% if the outstanding common stock. For purposes of control it is to be noted also that at such time as the Class A Preferred Convertible shares are converted at the designated ratio of 100 shares of common stock for each share of Class A Preferred Convertible then the percentage of ownership will be 84.26%.

WARRANTS
6 Months Ended
Jun. 30, 2017
Compensation Related Costs [Abstract]  
WARRANTS

NOTE 7 – WARRANTS

At the time of the issuance of stocks referenced in Note 8 the Company issued 34,000,000 warrants to purchase the Company’s common stock at an exercise price of $0.05 These warrants have an exercise price of $0.05 per share and an expiration date that is three years from the date of issuance. The warrants were issued to the existing shareholders of International Hedge Group. There are 15 stockholders in IHG and 6 of these represent owners of greater than 5% of IHG stock. These 6 stockholders received 57.35% of the warrants issued. 800,000 of these warrants were issued to satisfy outstanding accounts payable. The payable amounted to $20,253 and the warrants were valued at $32,000 giving rise to a loss of $11,747 on the settlement of debt.

Using the Black-Scholes valuation model a value of $1,328,000 is assigned to these warrants. The parameters used in the Black-Scholes model were as follows: stock price $0.04; strike price $0.05; volatility 172%; risk free rate 1.75% and time to expiration of 3 years. This expense is recorded on the books of the Company as “Warrant expense” with an offsetting entry in the Stockholder’s Deficit section as “Additional paid in capital – Warrants.”

On June 14, 2017, the Company received notice from the holders of 17,000,000 warrants as to their intentions to convert the warrants into shares of common stock of the Company. The Company instructed the transfer agent to proceed with the issuance of 16,320,000 shares of the common stock of the Company. This exercise was carried out on a “cashless exercise” which meant that the actual exercise resulted in no cash being received by the Company. The number of shares of common stock to be issued in exchange for the warrants was calculated by using the closing price of the stock on the last trading day prior to the exchange which was $1.25. The value of the warrant was subtracted from the trading price which was then multiplied by the number of warrants being exercised. This result was then divided by the last trading price to determine the number of shares to be issued. At the same time that these warrants were exercised International Hedge Group agreed to surrender 16,320,000 shares of the common stock of the Company that it holds. This transaction produced no financial consequence to the Company.

As at June 30, 2017 the Company has not received any further notifications with respect to any exercise of any outstanding warrants

   Shares Under Warrant  Exercise Price  Remaining Life
 Balance at December 31, 2015    0    0    0 
 Granted    34,000,000   $0.05    3.00 
 Exercised    17,000,000    0    0 
 Expired    0    0    0 
 Balance at June 30, 2016    17,000,000   $0.05    2.17 

 

INCOME TAXES
6 Months Ended
Jun. 30, 2017
Income Taxes  
INCOME TAXES

NOTE 8 – INCOME TAXES

A reconciliation of the provision for income taxes at the United States federal statutory rate of 34% and a Colorado state rate of 5% compared to the Company’s income tax expense as reported is as follows:

   June 30,  December 31,  December 31,
   2017  2016  2015
Net loss before income taxes  $(24,870)  $(1,154,285)  $(15,000)
  Adjustments to net loss               
     Warrant expense   —      1,328,000    —   
     Gain on exchange of debt for stock   —      (270,822)   —   
Net taxable income (loss)   (24,870)   (97,107)   (15,000)
Income tax rate   39%   39%   39%
Income tax recovery   9,699    37,870    5,850 
Valuation allowance change   (9,699)   (37,870)   (5,850)
Provision for income taxes  $—     $—     $—   
                

 

The significant components of deferred income tax assets at June 30, 2017, December 31, 2016 and 2015 are as follows:

   June 30,  December 31,  December 31,
   2017  2016  2015
Net operating loss carryforward  $121,977   $97,107   $—   
                
Valuation allowance   (121,977)   (97,107)   —   
                
Net deferred income tax asset  $—     $—     $—   

 

As of June 30, 2017, the Company has no unrecognized income tax benefits. Based on management’s understanding of IRC Sec 383 the substantial change in ownership and change in business activities precludes any carryforward of the accumulated net operating losses. The Company’s policy for classifying interest and penalties associated with unrecognized income tax benefits is to include such items as tax expense. No interest or penalties have been recorded during the years ended December 31, 2016 and 2015, and no interest or penalties have been accrued as of June 30, 2017. As of December 31, 2016 and 2015, the Company did not have any amounts recorded pertaining to uncertain tax positions.

As at June 30, 2017 the current management of the Company has been unable to ascertain when the last corporation income tax returns were filed. Management will use its best efforts to bring current all the necessary filings. The Company is currently not under examination by the Internal Revenue Service or any other taxing authorities. The Company has not recorded any liability for an uncertain tax position related to the lack of return filings since the Company records show a continuing pattern of losses for the periods in question. Since penalties are commonly assessed based on tax amounts owed management has deemed in unnecessary to record any liability.

LOAN PAYABLE
6 Months Ended
Jun. 30, 2017
Loan Payable  
LOAN PAYABLE

NOTE 9 – LOAN PAYABLE

As of the quarter ended June 30, 2017, International Hedge Group, the holder of a majority of the common stock and all of the preferred stock of the Company has advanced a total of $440,500 to the Company. This loan is not secured, bears no interest, is not documented in writing and is payable on demand of the lender.

GENERAL AND ADMINISTRATIVE EXPENSES
6 Months Ended
Jun. 30, 2017
General And Administrative Expenses  
GENERAL AND ADMINISTRATIVE EXPENSES

NOTE 10 – GENERAL AND ADMINISTRATIVE EXPENSES

Components of General and Administrative Expenses   
       
   Three Months Ended
   June 30,
   2017  2016
       
Consulting expense   —        
Investor relations   829      
Meals and entertainment   28      
Office expense   58    36 
Rent expense   340    —   
Transfer Agent   214    193 
Utilities   248      
           
   $1,717   $229 
           

 

       
       
   Six Months Ended
   June 30,
   2017  2016
       
Consulting expense   1,275      
Investor relations   829      
Meals and entertainment   292      
Office expense   58    35 
Rent expense   862    —   
Transfer Agent   920    804 
Utilities   757      
Website   450    —   
   $5,443   $839 
           

 

SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 11 - SUBSEQUENT EVENTS

As at the date of the filing of these financial statements management has determined that there are no events requiring reporting.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Cash and cash equivalents

Cash and cash equivalents

The Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties and all highly liquid investments with an original maturity of three months or less as cash equivalents.

Revenue recognition

Revenue recognition

The Company has realized minimal revenues from operations. The Company recognizes revenues when the sale and/or distribution of products is complete, risk of loss and title to the products have transferred to the customer, there is persuasive evidence of an agreement, acceptance has been approved by the customer, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable. Net sales will be comprised of gross revenues less expected returns, trade discounts, and customer allowances that will include costs associated with off-invoice markdowns and other price reductions, as well as trade promotions and coupons. The incentive costs will be recognized at the later of the date on which the Company recognized the related revenue or the date on which the Company offers the incentive.

Basic and Diluted Loss per Share

Basic and Diluted Loss per Share

The Company computes loss per share in accordance with “ASC-260,” “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common share during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Diluted loss per share excludes all potential common shares if their effect is anti-dilutive.

Income Taxes

Income Taxes

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.

The Company maintains a valuation allowance with respect to deferred tax asset. Blackstar Enterprise Group establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under Federal tax laws.

Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the reliability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change estimate.

Carrying Value, Recoverability and Impairment of Long-Lived Assets

Carrying Value, Recoverability and Impairment of Long-Lived Assets

The Company has adopted paragraph 360-10-35-17 of FASB Accounting Standards Codification for its long-lived assets. The Company’s long –lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.

The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the assets expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives.

The Company considers the following to be some examples of important indicators that may trigger an impairment review; (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner of use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and

(vi) regulatory changes. The Company evaluates acquired assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events.

The impairment charges, if any, are included in operating expenses in the accompanying statements of operations.

Use of Estimates

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 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 period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

The Company’s significant estimates include income taxes provision and valuation allowance of deferred tax assets; the fair value of financial instruments; the carrying value and recoverability of long-lived assets, and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.

Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates.

Fair value of Financial Instruments

Fair value of Financial Instruments

The estimated fair values of financial instruments were determined by management using available market information and appropriate valuation methodologies. The carrying amounts of financial instruments including cash approximate their fair value because of their short maturities.

Long Lived Assets

Long Lived Assets

In accordance with ASC 350 the Company regularly reviews the carrying value of intangible and other long lived assets for the existence of facts or circumstances both internally and externally that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long lived asset exceeds its fair value.

Stock-based Compensation

Stock-based Compensation

The Company accounts for stock-based compensation issued to employees based on FASB accounting standard for Share Based Payment. It 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 – the requisite service period (usually the vesting period). It requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. The scope of the FASB accounting standard includes a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The Company currently has no stock based compensation plan in place.

Recent Pronouncements

Recent pronouncements

Management has evaluated accounting standards and interpretations issued but not yet effective as of June 30, 2017, and does not expect such pronouncements to have a material impact on the Company’s financial position, operations, or cash flows.

WARRANTS (Tables)
6 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Warrants Activity

   Shares Under Warrant  Exercise Price  Remaining Life
 Balance at December 31, 2015    0    0    0 
 Granted    34,000,000   $0.05    3.00 
 Exercised    17,000,000    0    0 
 Expired    0    0    0 
 Balance at June 30, 2016    17,000,000   $0.05    2.17 

 

INCOME TAXES (Tables)
6 Months Ended
Jun. 30, 2017
Income Taxes Tables  
Reconciliation of the Provision for Income Taxes to Reported Income Tax Expense

   June 30,  December 31,  December 31,
   2017  2016  2015
Net loss before income taxes  $(24,870)  $(1,154,285)  $(15,000)
  Adjustments to net loss               
     Warrant expense   —      1,328,000    —   
     Gain on exchange of debt for stock   —      (270,822)   —   
Net taxable income (loss)   (24,870)   (97,107)   (15,000)
Income tax rate   39%   39%   39%
Income tax recovery   9,699    37,870    5,850 
Valuation allowance change   (9,699)   (37,870)   (5,850)
Provision for income taxes  $—     $—     $—   
                

 

Significant Components of Deferred Income Tax Assets

   June 30,  December 31,  December 31,
   2017  2016  2015
Net operating loss carryforward  $121,977   $97,107   $—   
                
Valuation allowance   (121,977)   (97,107)   —   
                
Net deferred income tax asset  $—     $—     $—   

 

GENERAL AND ADMINISTRATIVE EXPENSES (Tables)
6 Months Ended
Jun. 30, 2017
General And Administrative Expenses Tables  
Schedule of General and Administrative Expenses

Components of General and Administrative Expenses   
       
   Three Months Ended
   June 30,
   2017  2016
       
Consulting expense   —        
Investor relations   829      
Meals and entertainment   28      
Office expense   58    36 
Rent expense   340    —   
Transfer Agent   214    193 
Utilities   248      
           
   $1,717   $229 
           

 

       
       
   Six Months Ended
   June 30,
   2017  2016
       
Consulting expense   1,275      
Investor relations   829      
Meals and entertainment   292      
Office expense   58    35 
Rent expense   862    —   
Transfer Agent   920    804 
Utilities   757      
Website   450    —   
   $5,443   $839 
           

 

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details)
Jun. 30, 2016
International Hedge Group, Inc. [Member]  
Percentage of Company purchased 95.00%
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Sep. 30, 2016
Jun. 30, 2016
Property, Plant and Equipment [Line Items]          
Purchases of office equipment       $ 1,659  
Depreciation expense $ 115 $ 230  
Office Equipment [Member]          
Property, Plant and Equipment [Line Items]          
Useful life     3 years    
Depreciation expense     $ 115    
NOTE RECEIVABLE (Details) - USD ($)
6 Months Ended
Jun. 30, 2017
Dec. 31, 2016
Debt Instrument [Line Items]    
Note receivable $ 500,000 $ 250,000
Loan To Target Company [Member]    
Debt Instrument [Line Items]    
Amount of investment sought 2,500,000  
Agreed amount of investment 500,000  
Remaining amount the company will provide assistance in raising $ 2,000,000  
Interest rate 12.00%  
Number of shares of Series B Convertible Preferred stock received for each dollar loaned to Target 2  
Maturity date Feb. 01, 2019  
Dividend rate 15.00%  
STOCKHOLDER'S DEFICIT (Details) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended 8 Months Ended 12 Months Ended
Jun. 14, 2017
Aug. 25, 2016
Oct. 31, 2016
Jun. 30, 2016
Sep. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Sep. 30, 2016
Dec. 31, 2016
Class of Stock [Line Items]                  
Common stock, par value per share           $ 0.0001     $ 0.0001
Common stock, shares authorized           200,000,000     200,000,000
Common stock, shares outstanding           52,000,000     52,000,000
Preferred stock, par value per share           $ 0.0001     $ 0.0001
Preferred stock, shares authorized           10,000,000     10,000,000
Preferred stock, shares issued           1,000,000     1,000,000
Preferred stock, shares outstanding           1,000,000     1,000,000
Preferred stock, conversion ratio           100      
Proceeds from purchase agreement             $ 200,000    
Shares exchanged for debt                 $ 52,504
Gain (loss) on debt relief                
Number of warrants issued         34,000,000     34,000,000  
Warrants, exercise price per share         $ 0.05     $ 0.05  
Value of warrants         $ 1,360,000     $ 1,360,000  
Warrant expense                 $ 1,328,000
Voting right of Chass A Preferred Shareholders           The Record Holders of the Class A Preferred Shares shall have that number of votes (identical in every other respect to the voting rights of the holders of other Class of voting preferred shares and the holders of common stock entitled to vote at any Regular or Special Meeting of the Shareholders) equal to that number of common shares which is not less than 60% of the vote required to approve any action      
Warrant [Member]                  
Class of Stock [Line Items]                  
Shares exchanged for debt, shares 17,000,000       800,000        
Value of debt discharged         $ 20,253        
Gain (loss) on debt relief         (11,747)        
Value of warrants         $ 32,000 $ 1,328,000   32,000  
Series A Preferred Stock [Member]                  
Class of Stock [Line Items]                  
Shares issued for cash, shares   1,000,000              
International Hedge Group, Inc. [Member]                  
Class of Stock [Line Items]                  
Percentage of Company purchased       95.00%     95.00%    
Percentage of Company owned           54.00%      
Working capital commitment       $ 200,000     $ 200,000    
Proceeds from purchase agreement     $ 100,000         $ 100,000  
Shares cancelled, shares       3,825,000          
International Hedge Group, Inc. [Member] | Upon Conversion of Class A Preferred Convertible Shares [Member]                  
Class of Stock [Line Items]                  
Percentage of Company owned           84.26%      
WARRANTS (Narrative) (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 14, 2017
Sep. 30, 2016
Jun. 30, 2017
Dec. 31, 2016
Number of warrants issued   34,000,000    
Warrants, exercise price per share   $ 0.05    
Warrants, expiration period     3 years  
Proceeds from issuance of shares     52,000,000 52,000,000
Value of warrants   $ 1,360,000    
Loss on debt relief      
Warrant [Member]        
Warrants exchanged for debt, shares 17,000,000 800,000    
Value of warrants   $ 32,000 $ 1,328,000  
Value of debt discharged   20,253    
Loss on debt relief   $ 11,747    
Stock price     $ 0.04  
Strike price     $ 0.05  
Volatility     172.00%  
Risk free rate     1.75%  
Time to expiration     3 years  
Common Stock [Member]        
Warrants, exercise price per share $ 1.25      
Proceeds from issuance of shares 16,320,000      
Warrants exchanged for debt, shares       1,312,549
International Hedge Group, Inc. [Member]        
Ownership percentage of six stockholders     5.00%  
Percentage of warrants issued received by six stockholders     57.35%  
International Hedge Group, Inc. [Member] | Common Stock [Member]        
Common stock surrender 16,320,000      
WARRANTS (Schedule of Warrant Activity) (Details) - Warrant [Member]
6 Months Ended
Jun. 30, 2016
$ / shares
shares
Shares Under Warrant  
Balance | shares 0
Granted | shares 34,000,000
Exercised | shares 17,000,000
Expired | shares 0
Balance | shares 17,000,000
Exercise Price Per Share  
Balance | $ / shares $ 0
Granted | $ / shares 0.05
Exercised | $ / shares 0
Expired | $ / shares 0
Balance | $ / shares $ 0.05
Remaining Life  
Granted 3 years
Exercised 0 years
Expired 0 years
Balance 2 years 2 months 1 day
INCOME TAXES (Narrative) (Details)
6 Months Ended
Jun. 30, 2017
Income Taxes Narrative Details  
Federal income tax rate 34.00%
State income tax rate 5.00%
INCOME TAXES (Reconciliation of the Provision fo Income Taxes to Reported Provision For Income Taxes) (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Dec. 31, 2015
Income Taxes Reconciliation Of Provision Fo Income Taxes To Reported Provision For Income Taxes Details            
Net loss before income taxes $ (21,447) $ (14,293) $ (23,143) $ (18,653) $ (1,154,285) $ (15,000)
Adjustments to net loss            
Warrant expense       1,328,000
Gain on exchange of debt for stock       (270,822)
Net taxable income (loss)     $ (24,870)   $ (97,107) $ (15,000)
Income tax rate     39.00%   39.00% 39.00%
Income tax recovery     $ 9,699   $ 37,870 $ 5,850
Valuation allowance change     (9,699)   (37,870) (5,850)
Provision for income taxes
INCOME TAXES (Schedule of Deferred Tax Assets) (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Dec. 31, 2015
Deferred tax assets:      
Net operating loss carryforwards $ 121,977 $ 97,107
Valuation allowance (121,977) (97,107)
Net deferred tax assets
LOAN PAYABLE (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Loan payable - related party $ 440,500 $ 150,000
International Hedge Group, Inc. [Member]    
Loan payable - related party $ 440,500  
GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
General And Administrative Expenses Details        
Consulting expense $ 10,314 $ 10,314
Investor relations 829   829  
Meals and entertainment 28   292
Office expense 58 36 58 35
Rent expense 340 862
Transfer Agent 214 193 920 804
Utilities 248   757  
Website 450
General and administrative expenses $ 1,717 $ 229 $ 5,443 $ 839