| ORGANIZATION AND BASIS OF ACCOUNTING | Organization and Description of Business Precious Investments, Inc. (Formerly FIGO Ventures,
Inc.) (‘The Company’) was incorporated under the laws of the State of Nevada on May 26, 2004. The Company was an Exploration
Stage Company with the principle business being the acquisition and exploration of resource properties. The Company had allowed its charter with the
state of Nevada to be revoked by the Secretary of State for failure to file the required annual lists and pay the required annual
fees. Its last known officers and directors reflected in the records of the Secretary of State were unresponsive or stated they
were no longer involved with the Company. The purported replacement officers and directors were unresponsive. On September 14, 2012, NPNC Management, LLC
filed a petition in the Eighth Judicial District Court in Clark County, Nevada and was appointed custodian of the Company on October
15, 2012. In order to obtain basic operating capital
to pay for the reinstatement of the Company’s good standing with the Nevada Secretary of State, to bring the Company’s
account current with creditors essential for the reorganization of the Company, such as the transfer agent, and for basic general
corporate purposes, on October 24, 2012, the interim board authorized the sale of 55,000,000 (2,200,000 split adjusted) shares
of common stock for $6,000 to NPNC Management, LLC, in a private placement transaction exempt from the Securities Act of 1933,
as amended, pursuant to section 4(2) thereof and the rules and regulations promulgated there under. On October 24, 2012, NPNC Management, LLC appointed
Bryan Clark as director of the Company, to hold office until such time as the shareholders elected a board. The interim board,
consisting of Mr. Clark, further acted to appoint Mr. Clark as president, treasurer, and secretary of the Company, to act on behalf
of the Company, and to hold such offices until removed by any subsequent board elected by the shareholders. On November 13, 2013, Bryan Clark tendered
his resignation from all positions as an Officer and Director of the Company and the Board appointed Anna Wlodarkiewicz as a Director,
President, Secretary and Treasurer of the Company. On October 9, 2014, Ania Wlodarkiewicz tendered
her resignation from all positions as an Officer and Director of the Company and the Board appointed Nataliya Hearn as a Director,
President, Secretary and Treasurer of the Company. On March 28, 2016, Nataliya Hearn resigned
as the Company’s Chief Executive Officer and Director. Mr. Kashif Khan is the Company’s sole officer and director. The Company has completed an asset purchase
agreement dated August 10, 2015 where the Company acquired from Kashif Khan, its sole officer and director, colored diamonds with
a wholesale value of US$4 Million, which he was in control of, in exchange for issuing three secured demand convertible promissory
notes totaling US$4 Million. The Company is in the business of purchasing
and selling colored diamonds. Basis of Presentation and Principles of
Consolidation The accompanying consolidated financial statements
represent the results of operations, financial position and cash flows of Precious Investments, Inc. prepared on the accrual basis
of accounting and conform to accounting principles generally accepted in the United States of America as reported on our fiscal
years ending on July 31, 2017 and 2016. The consolidated financial statements include the financial statements of the Company and
its 75% owned subsidiary Flawless Fund GP, Inc. All inter-company balances and transactions have been eliminated. Cash and cash equivalents The Company considers all highly liquid instruments
purchased with a maturity of three months or less to be cash equivalents. The Company minimizes its credit risk associated with
cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally
insured limits. As of July 31, 2017, and 2016, no cash balances exceeded the federally insured limit. As of July 31, 2017, and
2016, the parent Company Precious Investments, Inc. did not have a bank account and as such the cash transactions for the Company
were run the accounts of entities commonly controlled by the Company’s CEO. Use of Estimates The preparation of financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements
and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those
estimates. Derivative Financial Instruments The Company does not use derivative instruments
to hedge exposures to cash flow, market, or foreign currency risks. The Company reviews the terms of convertible
loans, equity instruments and other financing arrangements to determine whether there are embedded derivative instruments, including
embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument.
Also, in connection with the issuance of financing instruments, the Company may issue freestanding options or warrants to employees
and non-employees in connection with consulting or other services. These options or warrants may, depending on their terms, be
accounted for as derivative instrument liabilities, rather than as equity. Derivative financial instruments are
initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative
instrument is initially recorded at fair value and then re-valued at each reporting date, with changes in the fair value reported
as charges or credits to income. To the extent that the initial fair values of the freestanding and/or bifurcated derivative instrument
liabilities exceed the total proceeds received an immediate charge to income is recognized in order to initially record the derivative
instrument liabilities at their fair value. The discount from the face value of
the convertible debt instruments resulting from allocating some or all of the proceeds to the derivative instruments, together
with the stated rate of interest on the instrument, is amortized over the life of the instrument through periodic charges to income,
using the effective interest method. The classification of derivative instruments,
including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period.
If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any
previous charges or credits to income for changes in the fair value of the derivative instrument are not reversed. Derivative instrument
liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative
instrument could be required within twelve months of the balance sheet date. Fair value of financial instruments The Company’s financial instruments consist
of its liabilities. The carrying amount of payables and the loan payable – related party approximate fair value because of
the short-term nature of these items. The promissory notes, and convertible notes payables are measured at amortized cost using
the effective interest method, which approximates fair value due to the relationship between the interest rate on long-term debt
and the Company’s incremental risk adjusted borrowing rate. Inventories Inventory consist of loose colored diamond acquired during
the period (See Note 7) and is stated at the lower of cost or net realizable value. The Company writes-down inventory once it has
been determined that conditions exist that may not allow the inventory to be sold for its intended purpose or the inventory is
determined to be excess or obsolete based on our forecasted future sales. Management has also written off inventory that was held
by entities commonly controlled by the CEO and not subsequently sold as of the date of this filing. The charge related to inventory
write-downs is recorded as a loss on inventory valuation as of July 31, 2017 and 2016. Long-lived assets Long-lived assets, including investments to
be held and used or disposed of other than by sale, are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. When required, impairment losses on assets to be held and used or disposed of
other than by sale are recognized based on the fair value of the asset. Long-lived assets to be disposed of by sale are reported
at the lower of the asset’s carrying amount or fair value less cost to sell. Income Taxes The Company accounts for income taxes pursuant
to FASB ASC 740—Income Taxes, which requires recognition of deferred income tax liabilities and assets for the expected future
tax consequences of events that have been recognized in the financial statements or tax returns. The Company provides for deferred
taxes on temporary differences between the financial statements and tax basis of assets using the enacted tax rates that are expected
to apply to taxable income when the temporary differences are expected to reverse. FASB ASC 740 establishes a more-likely-than-not
threshold for recognizing the benefits of tax return positions in the financial statements. Also, the statement implements a process
for measuring those tax positions that meet the recognition threshold of being ultimately sustained upon examination by the taxing
authorities. There are no uncertain tax positions taken by the Company on its tax returns. The Company files tax returns in the
U.S. and states in which it has operations and is subject to taxation. Tax years subsequent to 2014 remain open to examination
by U.S. federal and state tax jurisdictions. Net Loss per Common Share Basic earnings per share (“EPS”)
is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during
the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of
shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using
the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options
or warrants), and convertible debt or convertible preferred stock, using the if-converted method. Recently Issued Accounting Pronouncements In March 2016, the FASB issued
ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross
versus Net). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations and includes indicators
to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. ASU
2016-08 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09. In April 2016, the FASB
issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments
in ASU 2016-10 clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation
guidance, while retaining the related principles for those areas. ASU 2016-10 is effective January 1, 2018 to be in alignment with
the effective date of ASU 2014-09. In May 2016, the FASB
issued ASU 2016-12, Revenue from Contracts from Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The
amendments in this update affect the guidance in ASU 2014-09, which is not yet effective. The core principle of the guidance in
Topic 606 is that an entity should recognize revenue to depict the transfer of 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. The amendments
in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but instead affect only the narrow aspects noted
in Topic 606. ASU 2016-12 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09. Management evaluated
ASU 2016-08, ASU2016-09, ASU 2016-10, and ASU 2016-12 and determined the adoption will not have a material impact on the Company’s
consolidated financial statements. In December 2016, the
FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”.
The effective date and transition requirements for the amendments are the same as the effective date and transition requirements
for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts
with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. In January 2016, the
FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.
ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments including
requirements to measure most equity investments at fair value with changes in fair value recognized in net income, to perform a
qualitative assessment of equity investments without readily determinable fair values, and to separately present financial assets
and liabilities by measurement category and by type of financial asset on the balance sheet or the accompanying notes to the financial
statements. ASU 2016-01 will be effective for the Company beginning on January 1, 2018 and will be applied by means of a cumulative
effect adjustment to the balance sheet, except for effects related to equity securities without readily determinable values, which
will be applied prospectively. Management has reviewed this pronouncement and have determined that it would not have a material
impact to the financial statements. In February 2016, the
FASB issued ASU 2016-02, Leases, which requires an entity to recognize long-term lease arrangements as assets and liabilities on
the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all long-term
leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest
expense for financing leases. The amendments also require certain new quantitative and qualitative disclosures regarding leasing
arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. Lessees must apply a modified retrospective
transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in
the financial statements. Early adoption is permitted. Management does not believe the adoption of ASU 2016-02 will have a material
impact on the Company’s consolidated financial statements. In July 2017, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic
260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this
Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round
features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down
round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own
stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding
equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at
fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the
amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down
round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders
in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized
guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options),
including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral
of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments
do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments
in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years
beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an
entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal
year that includes that interim period. |
