| Description of Business and Summary of Significant Accounting Policies | Organization The
Company has secured exclusive distribution rights to represent equipment manufactured by one of Chinas top HVAC (heating,
ventilation and air conditioning) manufacturers, Mammoth China, for the countries of the Philippines and the United Arab Emirates.
Such products and technologies represented include geothermal and water source heat pumps, commercial roof top units, fan coils
and variable air volume systems. In addition, the Company is endeavoring to facilitate the establishment of an internationally
recognized industry association (IGHSPA the International Ground Source Heat Pump Association) in both of these countries
to enhance certain product reputation and credibility. Interim Period Financial Statements The
accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles
in the United States (GAAP) for interim financial information and with the Securities and Exchange Commissions
instructions. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial
statements. The results of operations reflect interim adjustments, all of which are of a normal recurring nature and,
in the opinion of management, are necessary for a fair presentation of the results for such interim period. The results
reported in these interim financial statements should not be regarded as necessarily indicative of results that may be expected
for the entire year. Certain information and note disclosure normally included in financial statements prepared in
accordance with GAAP have been condensed or omitted pursuant to the Securities and Exchange Commissions rules and regulations. These
unaudited interim financial statements should be read in conjunction with the audited financial statements for the year ended
October 31, 2015, as filed with the Securities and Exchange Commission on February 12, 2016. Going
Concern The
Companys financial statements have been prepared in conformity with accounting principles generally accepted in the United
States applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal
course of business. The Company has not generated any revenue since commencement of the development stage, has an accumulated
deficit, and has had no positive cash flows from operations. It is the Companys intention to raise additional equity to
finance development of a market for its products until positive cash flows can be generated from its operations. However, there
can be no assurance that such additional funds will be available to the Company when required or on terms acceptable to the Company.
Such limitations could have a material adverse effect on the Companys business, financial condition or operations, and
these financial statements do not include any adjustment that could result. Failure to obtain sufficient additional funding would
necessitate the Company to reduce or limit its operating activities or even discontinue operations. Basis
of presentation These
financial statements have been prepared in accordance accounting principles generally accepted in the United States of America
(GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Advertising
Expenses Advertising
costs are expensed as incurred. The Company did not incur any advertising costs during the three months ended January 31, 2016
and 2015. Income
Taxes Deferred
income tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets
and liabilities, operating loss, and tax credit carryforwards, and are measured using the enacted income tax rates and laws that
will be in effect when the differences are expected to be recovered or settled. Realization of certain deferred income
tax assets is dependent upon generating sufficient taxable income in the appropriate jurisdiction. The Company records
a valuation allowance to reduce deferred income tax assets to amounts that are more likely than not to be realized. The
initial recording and any subsequent changes to valuation allowances are based on a number of factors (positive and negative evidence). The
Company considers its actual historical results to have a stronger weight than other, more subjective, indicators when considering
whether to establish or reduce a valuation allowance. The
Company continually evaluates its uncertain income tax positions and may record a liability for any unrecognized tax benefits
resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest
and penalties are recorded as a component of interest expense and other expense, respectively. Because
tax laws are complex and subject to different interpretations, significant judgment is required. As a result, the Company
makes certain estimates and assumptions in: (1) calculating its income tax expense, deferred tax assets, and deferred tax liabilities;
(2) determining any valuation allowance recorded against deferred tax assets; and (3) evaluating the amount of unrecognized tax
benefits, as well as the interest and penalties related to such uncertain tax positions. The Companys estimates
and assumptions may differ significantly from tax benefits ultimately realized. Net
Loss Per Share Basic
net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted average number of
common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under
basic loss per share) and potentially dilutive securities. For the three months ended January 31, 2016 and 2015, outstanding
stock options and warrants are antidilutive because of net losses, and as such, their effect has not been included in the calculation
of diluted net loss per share. Common shares issuable are considered outstanding as of the original approval date for purposes
of earnings per share computations. Comprehensive
Income (Loss) The
Company has no components of other comprehensive income (loss) and accordingly, no statement of comprehensive income (loss) is
included in the accompanying financial statements. Use
of Estimates The
preparation of financial statements in conformity with accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the fiscal
year. The Company bases its estimates on historical experience, current conditions and on other assumptions that it believes to
be reasonable under the circumstances. Actual results could differ from those estimates and assumptions. Financial
Instruments The
Company has the following financial instruments: cash, accounts payable, accrued expenses and compensation, and amounts due to
stockholders. The carrying value of these financial instruments approximates their fair value due to their liquidity or their
short-term nature. Share-Based
Compensation The
Company accounts for stock-based awards at fair value on date of grant and recognition of compensation over the service period
for awards expected to vest. The fair value of stock options is determined using the Black-Scholes valuation model,
which is consistent with the Companys valuation techniques previously utilized for options in footnote disclosures. Recent
Accounting Pronouncements In
May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU)
2014-09 Revenue From Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under
U.S. GAAP. The core principal of this ASU is that an entity should recognize revenue when it transfers promised goods or services
to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods
or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash
flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs
incurred to obtain or fulfill a contract. The
original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter 2017. In July
2015, the FASB voted to amend ASU 2014-09 by approving a one year deferral of the effective date as well as providing the option
to early adopt the standard on the original effective date. Accordingly, the Company may adopt the standard in either its first
quarter of 2017 or 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively
with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption
and the impact of adopting the new revenue standard on its financial statements. In
June 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-10, which eliminated certain financial
reporting requirements of companies previously identified as "Development Stage Entities" (Topic 915). The amendments
in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities.
The amendments also reduce data maintenance and, for those entities subject to audit, audit costs by eliminating the requirement
for development stage entities to present inception-to-date information in the statements of income, cash flows, and shareholder
equity. Early application of each of the amendments is permitted for any annual reporting period or interim period
for which the entity's financial statements have not yet been issued (public business entities) or made available for issuance
(other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915. The
Company has adopted this standard. In
April 2015, the FASB issued ASU2015-03, Imputation of Interest, requiring entities to present debt issuance costs related to a
debt liability as a reduction of the carrying amount of the liability. In August 2015, the FASB issued ASU 2015-15 to provide
additional guidance related to debt issuance costs related to line-of-credit arrangements. The guidance is effective for annual
and interim periods beginning after December 15, 2015, and early adoption is permitted. The Company has adopted this standard. In February
2016, the FASB issued ASU2016-02, Leases (Topic 842), requiring entities to a right-of-use asset and a lease liability for virtually
all of their leases. This standard is effective for annual and interim periods beginning after December 15, 2018, and early adoption
is permitted. The Company is currently evaluating the timing of its adoption and the impact of adopting the new standard on its
financial statements. |
