| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Current Operations and Background AuraMetal TM AuraMoto TM There can be no assurance we will
be able to carry out our development plans for AuraMetals or AuraMoto. Our ability to pursue this strategy is subject to the availability
of additional capital and further development of our technology. We also need to finance the cost of effectively protecting
our intellectual property rights in the United States (“US”) and abroad where we intend to market our technology and products. Going Concern $22,175,394
Management’s Plan to
Continue as a Going Concern In order to continue as a going
concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for
the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of its products, and (3) short-term or long-term
borrowings from banks, stockholders or other party(ies) when needed. However, management cannot provide any assurance that the Company
will be successful in accomplishing any of its plans. The Company plans to look for opportunities to merge with other companies in the
graphite industry. The ability of the Company to
continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and
eventually to secure other sources of financing and attain profitable operations. Revenue Recognition
Identify the contract(s) with a customer Identify the performance obligations in the contract Determine the transaction price Allocate the transaction price to the performance
obligations in the contract Recognize revenue when or as you satisfy a performance
obligation When we are paid in advance
for products or services, we classify these amounts as deferred revenue. Upon the receipt of these products at the destination port, we
recognize revenue. For services, and we amortized the price over the term of the agreement. Basis of Presentation and
Principles of Consolidation The unaudited consolidated financial
statements were prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The
information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion
of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures
normally present in annual consolidated financial statements prepared in accordance with US GAAP was omitted pursuant to such rules and
regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements
and footnotes for the year ended March 31, 2023 included in our Annual Report on Form 10-K. The results of the three and six months ended
September 30, 2023 are not necessarily indicative of the results to be expected for the full year ending March 31, 2024. Use of Estimates Cash and Equivalents Leases The new standard became effective
April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date
of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period
presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements
for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must
also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods.
The Company adopted the new standard on April 1, 2019 using the modified retrospective transition approach as of the effective date of
the initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will
not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition.
The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard
prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the
use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of
the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating
leases and providing significant new disclosures about our leasing activities. The new standard also provides
practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption
for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing
ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to
elect the practical expedient to not separate lease and non-lease components for its leases. The new standard did not have a material
impact. Impairment of Long-Lived
Assets and Long-Lived Assets to Be Disposed Of- Income Taxes “Income Taxes.” Stock-Based Compensation Foreign Currency Translation.
- Net Loss Per Share The
table below presents the computation of basic and diluted earnings per share for the three and six months ended September 30, 2023 and
2022:
For the For the
Numerator:
Net loss $ (283,431 ) $ (233,918 )
Denominator:
Weighted average common shares outstanding—basic 69,398,151 68,491,629
Dilutive common stock equivalents 8,040,000 7,280,000
Weighted average common shares outstanding—diluted 77,438,151 75,771,629
Net loss per share:
Basic $ (0.00 ) $ (0.00 )
Diluted $ (0.00 ) $ (0.00 )
For the For the
Numerator:
Net loss $ (558,100 ) $ (480,191 )
Denominator:
Weighted average common shares outstanding—basic 69,398,151 68,424,981
Dilutive common stock equivalents 8,040,000 7,280,000
Weighted average common shares outstanding—diluted 77,438,151 75,704,981
Net loss per share:
Basic $ (0.01 ) $ (0.01 )
Diluted $ (0.01 ) $ (0.01 ) Concentration of Credit
Risk Financial Instruments and
Fair Value of Financial Instruments The standard describes three levels
of inputs that may be used to measure FV:
Level 1: Quoted prices in active markets for identical or similar assets and liabilities.
Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities.
Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the FV of the assets or liabilities. The Company evaluates
embedded conversion features within convertible debt under ASC Topic 815, “Derivatives and Hedging,” Recently Issued Accounting
Standards On January 1, 2021,
the Company adopted ASU No. 2019-12, Income Taxes— Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This
new standard removes certain exceptions for recognizing deferred taxes of foreign investments, the incremental approach to performing
intra period allocation, and calculating income taxes for year-to-date interim period losses when such losses exceed anticipated full
year losses. The standard also adds guidance to reduce complexity in certain areas, including accounting for franchise taxes that are
partially based on income, transactions with a government that result in a step up in goodwill tax basis, enacted tax law changes impact
during interim periods, and allocation of taxes to members of a consolidated group which are not subject to tax. The adoption of ASU 2019-12
did not have a material impact on the consolidated financial statements. |
