Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 30, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Madison Technologies Inc. | ||
Entity Central Index Key | 1,318,268 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 706,875 | ||
Entity Common Stock, Shares Outstanding | 11,302,000 | ||
Trading Symbol | MDEX | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash | $ 501 | $ 3,230 |
Total Assets | 501 | 3,230 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 36,315 | 30,456 |
Notes Payable and accrued interest - Note 3 | 107,592 | 107,300 |
Convertible notes payable - Note 4 | 122,083 | 97,333 |
Related party advance - Note 5 | 261 | 261 |
TOTAL LIABILITIES | 266,251 | 235,350 |
STOCKHOLDERS’ DEFICIT | ||
Common Stock - Note 6 Par Value:$0.0001 Authorized 500,000,000 shares Issued and outstanding: 11,302,000 shares | 11,302 | 11,302 |
Additional Paid in Capital | 224,600 | 199,600 |
Accumulated other comprehensive income (loss) | 3,109 | (2,746) |
Accumulated deficit | (504,761) | (440,276) |
Total stockholders’ deficiency | (265,750) | (232,120) |
Total liabilities and stockholders’ deficiency | $ 501 | $ 3,230 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 11,302,000 | 11,302,000 |
Common stock, shares outstanding | 11,302,000 | 11,302,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Revenues | ||
Operating expenses | ||
General and administrative | $ 33,588 | $ 55,324 |
Operating expenses, total | 33,588 | 55,324 |
Loss before other expense | (33,588) | (55,324) |
Other expense - interest | (30,897) | (26,392) |
Net loss | (64,485) | (81,716) |
Other comprehensive income | ||
Translation gain | 5,854 | 3,068 |
Total comprehensive loss | $ (58,631) | $ (78,648) |
Net loss per share - Basic and diluted | $ (0.005) | $ (0.007) |
Average number of shares of common stock outstanding | 11,302,000 | 11,302,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficiency - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Common Stock [Member] | ||
Balance | $ 11,302 | $ 11,302 |
Balance, shares | 11,302,000 | 11,302,000 |
Foreign currency adjustments | ||
Convertible debt - Note 4 | ||
Net Loss | ||
Balance | $ 11,302 | $ 11,302 |
Balance, shares | 11,302,000 | 11,302,000 |
Additional Paid-In Capital [Member] | ||
Balance | $ 199,600 | $ 174,600 |
Foreign currency adjustments | ||
Convertible debt - Note 4 | $ 25,000 | $ 25,000 |
Net Loss | ||
Balance | $ 224,600 | $ 199,600 |
Accumulated Other Comprehensive Income [Member] | ||
Balance | (2,746) | (5,814) |
Foreign currency adjustments | $ 5,855 | $ 3,068 |
Convertible debt - Note 4 | ||
Net Loss | ||
Balance | $ 3,109 | $ (2,746) |
Accumulated Deficit [Member] | ||
Balance | $ (440,276) | $ (358,560) |
Foreign currency adjustments | ||
Convertible debt - Note 4 | ||
Net Loss | $ (64,485) | $ (81,716) |
Balance | (504,761) | (440,276) |
Balance | (232,120) | (178,472) |
Foreign currency adjustments | 5,855 | 3,068 |
Convertible debt - Note 4 | 25,000 | 25,000 |
Net Loss | (64,485) | (81,716) |
Balance | $ (265,750) | $ (232,120) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from operating activities: | ||
Net loss | $ (64,485) | $ (81,716) |
Amortization of convertible debt discount recorded as interest | 24,750 | 21,333 |
Changes assets and liabilities | ||
Accounts payable and accruals | 5,859 | (1,386) |
Net cash used in operating activities | $ (27,729) | (56,711) |
Cash Flows from financing activities: | ||
Notes payable | 25,000 | |
Proceeds of convertible notes payable | $ 25,000 | 25,000 |
Net Cash provided by financing activities | 25,000 | 50,000 |
Net increase (decrease) in cash | (2,729) | (6,711) |
Cash, beginning of period | 3,230 | 9,941 |
Cash, end of period | 501 | 3,230 |
SUPPLEMENTAL DISCLOSURE | ||
Interest | $ 6,147 | $ 5,058 |
Taxes paid |
Nature and Continuance of Opera
Nature and Continuance of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature and Continuance of Operations | Note 1 Nature and Continuance of Operations The Company was incorporated on June 15, 1998 in the State of Nevada, USA and the Companys common shares are publicly traded on the OTC Bulletin Board. Up until fiscal 2014, the Company was in the business of mineral exploration. On May 28, 2014, the Company formalized an agreement whereby it purchased assets associated with a smokeless cannabis delivery system. The Company planned to develop this system for commercial purposes. On December 14, 2014, this asset purchase agreement was terminated. On January 21, 2015, a majority of the Companys stockholders approved a consolidation of the issued and outstanding shares of common stock, on a 10 for 1 basis, thereby decreasing the issued and outstanding share capital from 113,020,000 to 11,302,000. On March 11, 2015, the Company effectively changed its name from Madison Explorations, Inc. to Madison Technologies Inc. and effected the stock consolidation. These financial statements give retroactive effect to both these changes. These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next twelve months. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At December 31, 2015, the Company had not yet achieved profitable operations, has accumulated losses of $504,761 since its inception and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Companys ability to continue as a going concern. The Companys ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances. That said, there is no assurance of additional funding being available. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies a) Year end The Company has elected a December 31st fiscal year end. b) Cash and cash equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. As at December 31, 2015, the Company did not have any cash equivalents (2014 $nil), and $0 was deposited in accounts that were federally insured (2014 - $0). c) Revenue Recognition The Company recognizes revenue when a contract is in place, goods or services are delivered to the purchaser and collectability is reasonably assured. d) Stock-Based Compensation The Company follows the guideline under FASB ASC Topic 718 Compensation-Stock Compensation e) Basic and Diluted Net Income (Loss) per Share The Company reports basic loss per share in accordance FASB ASC Topic 260, Earnings per share f) Comprehensive Income In accordance with FASB ASC Topic 220 Comprehensive Income g) 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 the amounts reported in the financial statements and accompanying disclosures. Although these estimates are based on managements best knowledge of current events and actions the Company may undertake in the future, actual results may ultimately differ from the estimates. Management believes such estimates to be reasonable. h) Fair Value Measurements The Company follows FASB ASC 820, Fair Value Measurements and Disclosures Financial Instruments, i) Financial Instruments Fair Value The Companys financial instruments consisting of cash, account payable and accrued liabilities, notes payable and accrued interest and related party advances are carried at face which approximates fair value because of their short term nature. The fair value of the convertible notes payable is based on the fair value of both the host debt and the embedded equity component at the time of commitment. Based on the concept that a promissory note without any interest rate or any conversion feature would have no fair value, the total value of the instruments was allocated to the equity component and included in additional paid-in capital. The balance of nil was allocated to the host debt. The resulting discounts are being amortized to income over 60 months. Risks: Financial instruments that potentially subject the Company to credit risk consist principally of cash. Management does not believe the Company is exposed to significant credit risk. Management, as well, does not believe the Company is exposed to significant interest rate risks during the period presented in these financial statements. The accompanying financial statements do not include any adjustments that might result from the eventual outcome of the risks and uncertainties described above. j) Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Companys financial statements or tax returns. In estimating future tax consequences, all expected future events other than enactment of changes in the tax laws or rates are considered. Due to the uncertainty regarding the Companys future profitability, the future tax benefits of its losses have been fully reserved. k) Impairment of Long-Lived Assets Impairment losses on long-lived assets, such as mining claims, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. l) Foreign Currency Translation and Transactions The Companys functional currency is US dollars. Foreign currency balances are translated into US dollars as follows: Monetary assets and liabilities are translated at the period-end exchange rate. Non-monetary assets are translated at the rate of exchange in effect at their acquisition, unless such assets are carried at market or nominal value, in which case they are translated at the period-end exchange rate. Revenue and expense items are translated at the average exchange rate for the period. Foreign exchange gains and losses in the period are included in operations. The functional currency of the wholly owned subsidiary is Canadian dollars. The assets and liabilities arising from these operations are translated at current exchange rates and related revenues and expenses at the exchange rates in effect at the time the revenue or expense is incurred. Resulting translation adjustments, if material, are accumulated as a separate component of accumulated other comprehensive income in the statement of stockholders deficit while foreign currency transaction gains and losses are included in operations. m) Consolidation The consolidated financial statements include the accounts of the Company and its subsidiary, Scout Resources Inc. All significant inter-company balances and transactions have been eliminated. n) Recent Accounting Pronouncements The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. Management does not believe that any pronouncement not yet effective but recently issued would, if adopted, have a material effect on the accompanying financial statements. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 3 Notes Payable The Company has two notes payable to Paleface Holdings Inc. Each note is unsecured and payable on demand. a) $25,000 note with annual interest payable at 8%. As at December 31, 2015, accrued interest on the note was $21,797 (December 31, 2014 - $19,797). The note payable balance including accrued interest was $46,797 as at December 31, 2015 (December 31, 2014 - $44,797). Interest on the debt for each of the nine years ended December 31 was $2,000. b) $21,627 ($30,000 CDN) with annual interest payable at 5% As at December 31, 2015, accrued interest on the note was $9,462 (December 31, 2014 - $11,294). The note payable balance including accrued interest was $31,089 as at December 31, 2015 (December 31, 2014 - $35,793). Interest on debt for the year ended December 31 was $1,150 in 2015 and $1,349 in 2014. The company also has an unsecured note payable on demand to Gens Incognito Inc. for $25,000. As |
Convertible Note Payable
Convertible Note Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Note Payable | Note 4 Convertible Notes Payable In total there are eight convertible notes payable. All notes are non-interest bearing, unsecured and payable on demand. The notes are convertible into common stock at the discretion of the holder on four different conversion rate: $0.01 debt to 1 common share, $0.045 to 1; $0.005 to $1 and $0.15 to 1. The effect that conversion would have on earnings per share has not been disclosed due to the anti-dilutive effect. There are four convertible notes payable convertible on the basis of $0.01 of debt to 1 common share. The balance of the first convertible note payable convertible on the basis of $0.01 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 40,000 $ 40,000 Value allocated to additional paid-in capital 40,000 40,000 Balance allocated to convertible note payable - - Amortized discount 40,000 40,000 Balance, convertible note payable $ 40,000 $ 40,000 The total discount of $40,000 was amortized over 5 years starting April, 2008. No interest was recorded in either the year ended December 31, 2015 or 2014. The balance of the second convertible note payable convertible on the basis of $0.01 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 20,000 $ 20,000 Value allocated to additional paid-in capital 20,000 20,000 Balance allocated to convertible note payable - - Amortized discount 20,000 18,000 Balance, convertible note payable $ 20,000 $ 18,000 The total discount of $20,000 was amortized over 5 years starting June, 2010. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2014, $2,000 was recorded as interest expense. No interest was recorded for the year ended December 31, 2015. The balance of the third convertible note payable convertible on the basis of $0.01 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 25,000 $ 25,000 Value allocated to additional paid-in capital 25,000 25,000 Balance allocated to convertible note payable - - Amortized discount 17,750 12,500 Balance, convertible note payable $ 17,750 $ 12,500 The total discount of $25,000 is being amortized over 5 years starting July, 2012. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2015 and 2014, $5,000 was recorded as interest expense. As at December 31, 2015 the unamortized discount is $7,500. The balance of the fourth convertible note payable convertible on the basis of $0.01 of debt to 1 common share at is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 25,000 $ 25,000 Value allocated to additional paid-in capital 25,000 25,000 Balance allocated to convertible note payable - - Amortized discount 13,750 8,750 Balance, convertible note payable $ 13,750 $ 8,750 The total discount of $25,000 is being amortized over 5 years starting April, 2013. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2015 and 2014, $5,000 was recorded as interest expense. As at December 31, 2015 the unamortized discount is $11,250. There are two convertible notes payable convertible on the basis of $0.005 of debt to 1 common share The balance of the first convertible note payable convertible on the basis of $0.005 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 10,000 $ 10,000 Value allocated to additional paid-in capital 10,000 10,000 Balance allocated to convertible note payable - - Amortized discount 9,500 7,500 Balance, convertible note payable $ 9,500 $ 7,500 The total discount of $10,000 is being amortized over 5 years starting April, 2011. Accordingly, the annual interest rate is 20% and for the years ended December 31, 2015 and 2014, $2,000 was recorded as interest expense. As at December 31, 2015, the unamortized discount is $500. The balance of the second convertible note payable convertible on the basis of $0.005 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 10,000 $ 10,000 Value allocated to additional paid-in capital 10,000 10,000 Balance allocated to convertible note payable - - Amortized discount 9,250 7,250 Balance, convertible note payable $ 9,250 $ 7,250 The total discount of $10,000 is being amortized over 5 years starting May, 2011. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2015 and 2014, $2,000 was recorded as interest expense. As at December 31, 2015, the unamortized discount is $750. There is one convertible notes payable convertible on the basis of $0.045 of debt to 1 common share The balance of this convertible note payable is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 25,000 $ 25,000 Value allocated to additional paid-in capital 25,000 25,000 Balance allocated to convertible note payable - - Amortized discount 8,333 3,333 Balance, convertible note payable $ 8,333 $ 3,333 The total discount of $25,000 is being amortized over 5 years starting May, 2014. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2015 $5,000 was recorded as interest expense. For the year ended December 31, 2014, $3,333 was recorded as interest expense. As at December 31, 2015 the unamortized discount was $16,667. There is one convertible notes payable convertible on the basis of $0.15 of debt to 1 common share The balance of this convertible note payable is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 25,000 $ - Value allocated to additional paid-in capital 25,000 - Balance allocated to convertible note payable - - Amortized discount 3,750 - Balance, convertible note payable $ 3,750 $ - The total discount of $25,000 is being amortized over 5 years starting April, 2015. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2015 $3,750 was recorded as interest expense. As at December 31, 2015 the unamortized discount was $21,250. |
Related Party Advance
Related Party Advance | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Advance | Note 5 Related Party Advance In 2008 the President advanced the Company $561 repayable without interest or any other terms. The unpaid balance as at December 31, 2015 is $261. There were no related party transactions during the year ended December 31, 2015. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Common Stock | Note 6 Common Stock On January 21, 2015, a majority of the Companys stockholders approved a consolidation of the issued and outstanding shares of common stock, on a 10 for 1 basis, thereby decreasing the issued and outstanding share capital from 113,020,000 to 11,302,000. This was effected on March 11, 2015. This consolidation has been applied retroactively and all references to the number of shares issued reflect this consolidation. On June 15, 1998 the Company authorized and issued 5,375,000 shares of its common stock in consideration of $430 in cash. ($.00008 per share). On June 7, 2004 the Company issued 5,907,000 in consideration of $472 in cash. ($.00008 per share). On June 14, 2001 the Company approved a forward stock split of 5,000:1. These financial statements have been retroactively adjusted to effect this split. On March 30, 2006 the Company entered into a private placement agreement whereby the Company issued 20,000 Regulation-S shares in exchange for $50,000. ($2.50 per share). There are no shares subject to warrants, options or other agreements as December 31, 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 Income Taxes Income tax recovery differs from that which would be expected from applying the effective tax rates to the net income (loss) as follows: December 31, 2015 December 31, 2014 Net income (loss) for the period $ (64,485 ) $ (81,716 ) Statutory and effective tax rates 26.0 % 26.0 % Income taxes expenses (recovery) at the effective rate $ (16,766 ) $ (21,246 ) Effect of permanent differences 6,435 5,547 Benefit not recognized 10,331 15,700 Income tax expense (recovery) and income tax liability (asset) $ - $ - As at December 31, 2015 the tax effect of the temporary timing differences that give rise to significant components of deferred income tax asset are noted below. A valuation allowance has been recorded as management believes it is more likely than not that the deferred income tax asset will not be realized. December 31, 2015 December 31, 2014 Tax loss carried forward $ 382,678 $ 342,943 Deferred tax assets $ 99,496 $ 89,165 Valuation allowance (99 496) (89,165 ) Deferred taxes recognized $ - $ - The tax losses will expire between 2016 and 2036. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Year End | a) Year end The Company has elected a December 31st fiscal year end. |
Cash and Cash Equivalents | b) Cash and cash equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. As at December 31, 2015, the Company did not have any cash equivalents (2014 $nil), and $0 was deposited in accounts that were federally insured (2014 - $0). |
Revenue Recognition | c) Revenue Recognition The Company recognizes revenue when a contract is in place, goods or services are delivered to the purchaser and collectability is reasonably assured. |
Stock-Based Compensation | d) Stock-Based Compensation The Company follows the guideline under FASB ASC Topic 718 Compensation-Stock Compensation |
Basic and Diluted Net Income (Loss) Per Share | e) Basic and Diluted Net Income (Loss) per Share The Company reports basic loss per share in accordance FASB ASC Topic 260, Earnings per share |
Comprehensive Income | f) Comprehensive Income In accordance with FASB ASC Topic 220 Comprehensive Income |
Use of Estimates | g) 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 the amounts reported in the financial statements and accompanying disclosures. Although these estimates are based on managements best knowledge of current events and actions the Company may undertake in the future, actual results may ultimately differ from the estimates. Management believes such estimates to be reasonable. |
Fair Value Measurements | h) Fair Value Measurements The Company follows FASB ASC 820, Fair Value Measurements and Disclosures Financial Instruments, |
Financial Instruments | i) Financial Instruments Fair Value The Companys financial instruments consisting of cash, account payable and accrued liabilities, notes payable and accrued interest and related party advances are carried at face which approximates fair value because of their short term nature. The fair value of the convertible notes payable is based on the fair value of both the host debt and the embedded equity component at the time of commitment. Based on the concept that a promissory note without any interest rate or any conversion feature would have no fair value, the total value of the instruments was allocated to the equity component and included in additional paid-in capital. The balance of nil was allocated to the host debt. The resulting discounts are being amortized to income over 60 months. Risks: Financial instruments that potentially subject the Company to credit risk consist principally of cash. Management does not believe the Company is exposed to significant credit risk. Management, as well, does not believe the Company is exposed to significant interest rate risks during the period presented in these financial statements. The accompanying financial statements do not include any adjustments that might result from the eventual outcome of the risks and uncertainties described above. |
Income Taxes | j) Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Companys financial statements or tax returns. In estimating future tax consequences, all expected future events other than enactment of changes in the tax laws or rates are considered. Due to the uncertainty regarding the Companys future profitability, the future tax benefits of its losses have been fully reserved. |
Impairment of Long-Lived Assets | k) Impairment of Long-Lived Assets Impairment losses on long-lived assets, such as mining claims, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. |
Foreign Currency Translation and Transactions | l) Foreign Currency Translation and Transactions The Companys functional currency is US dollars. Foreign currency balances are translated into US dollars as follows: Monetary assets and liabilities are translated at the period-end exchange rate. Non-monetary assets are translated at the rate of exchange in effect at their acquisition, unless such assets are carried at market or nominal value, in which case they are translated at the period-end exchange rate. Revenue and expense items are translated at the average exchange rate for the period. Foreign exchange gains and losses in the period are included in operations. The functional currency of the wholly owned subsidiary is Canadian dollars. The assets and liabilities arising from these operations are translated at current exchange rates and related revenues and expenses at the exchange rates in effect at the time the revenue or expense is incurred. Resulting translation adjustments, if material, are accumulated as a separate component of accumulated other comprehensive income in the statement of stockholders deficit while foreign currency transaction gains and losses are included in operations. |
Consolidation | m) Consolidation The consolidated financial statements include the accounts of the Company and its subsidiary, Scout Resources Inc. All significant inter-company balances and transactions have been eliminated. |
Recent Accounting Pronouncements | n) Recent Accounting Pronouncements The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. Management does not believe that any pronouncement not yet effective but recently issued would, if adopted, have a material effect on the accompanying financial statements. |
Convertible Note Payable (Table
Convertible Note Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes Payable | The balance of the first convertible note payable convertible on the basis of $0.01 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 40,000 $ 40,000 Value allocated to additional paid-in capital 40,000 40,000 Balance allocated to convertible note payable - - Amortized discount 40,000 40,000 Balance, convertible note payable $ 40,000 $ 40,000 The balance of the second convertible note payable convertible on the basis of $0.01 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 20,000 $ 20,000 Value allocated to additional paid-in capital 20,000 20,000 Balance allocated to convertible note payable - - Amortized discount 20,000 18,000 Balance, convertible note payable $ 20,000 $ 18,000 The balance of the third convertible note payable convertible on the basis of $0.01 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 25,000 $ 25,000 Value allocated to additional paid-in capital 25,000 25,000 Balance allocated to convertible note payable - - Amortized discount 17,750 12,500 Balance, convertible note payable $ 17,750 $ 12,500 The balance of the fourth convertible note payable convertible on the basis of $0.01 of debt to 1 common share at is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 25,000 $ 25,000 Value allocated to additional paid-in capital 25,000 25,000 Balance allocated to convertible note payable - - Amortized discount 13,750 8,750 Balance, convertible note payable $ 13,750 $ 8,750 The balance of the first convertible note payable convertible on the basis of $0.005 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 10,000 $ 10,000 Value allocated to additional paid-in capital 10,000 10,000 Balance allocated to convertible note payable - - Amortized discount 9,500 7,500 Balance, convertible note payable $ 9,500 $ 7,500 The balance of the second convertible note payable convertible on the basis of $0.005 of debt to 1 common share is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 10,000 $ 10,000 Value allocated to additional paid-in capital 10,000 10,000 Balance allocated to convertible note payable - - Amortized discount 9,250 7,250 Balance, convertible note payable $ 9,250 $ 7,250 There is one convertible notes payable convertible on the basis of $0.045 of debt to 1 common share The balance of this convertible note payable is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 25,000 $ 25,000 Value allocated to additional paid-in capital 25,000 25,000 Balance allocated to convertible note payable - - Amortized discount 8,333 3,333 Balance, convertible note payable $ 8,333 $ 3,333 There is one convertible notes payable convertible on the basis of $0.15 of debt to 1 common share The balance of this convertible note payable is as follows: Dec 31, 2015 Dec 31, 2014 Balance Proceeds from promissory note $ 25,000 $ - Value allocated to additional paid-in capital 25,000 - Balance allocated to convertible note payable Amortized discount 3,750 - Balance, convertible note payable $ 3,750 $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income tax recovery differs from that which would be expected from applying the effective tax rates to the net income (loss) as follows: December 31, 2015 December 31, 2014 Net income (loss) for the period $ (64,485 ) $ (81,716 ) Statutory and effective tax rates 26.0 % 26.0 % Income taxes expenses (recovery) at the effective rate $ (16,766 ) $ (21,246 ) Effect of permanent differences 6,435 5,547 Benefit not recognized 10,331 15,700 Income tax expense (recovery) and income tax liability (asset) $ - $ - |
Schedule of Deferred Income Tax Asset | As at December 31, 2015 the tax effect of the temporary timing differences that give rise to significant components of deferred income tax asset are noted below. A valuation allowance has been recorded as management believes it is more likely than not that the deferred income tax asset will not be realized. December 31, 2015 December 31, 2014 Tax loss carried forward $ 382,678 $ 342,943 Deferred tax assets $ 99,496 $ 89,165 Valuation allowance (99 496) (89,165 ) Deferred taxes recognized $ - $ - |
Nature and Continuance of Ope17
Nature and Continuance of Operations (Details Narrative) - USD ($) | Jan. 21, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock conversion basis | Issued and outstanding shares of common stock, on a 10 for 1 basis. | ||
Common stock, shares issued | 11,302,000 | 11,302,000 | |
Common stock, shares outstanding | 11,302,000 | 11,302,000 | |
Accumulated losses | $ 504,761 | $ 440,276 | |
Minimum [Member] | |||
Common stock, shares issued | 11,302,000 | ||
Common stock, shares outstanding | 11,302,000 | ||
Maximum [Member] | |||
Common stock, shares issued | 113,020,000 | ||
Common stock, shares outstanding | 113,020,000 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Cash equivalents | $ 0 | $ 0 |
Federally insured amount | $ 0 | $ 0 |
Amortization period of discount | 60 months |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015CAD | |
Interest on debt | $ 3,000 | ||
Gens Incognito Inc [Member] | |||
Accrued interest on note | 4,706 | $ 1,709 | |
Notes payable balance including accrued interest | 29,706 | 26,709 | |
Unsecured note payable | 25,000 | ||
Notes Payable Annual Interest Payable At 8% [Member] | |||
Notes payable | $ 25,000 | ||
Annual interest payable | 8.00% | ||
Accrued interest on note | $ 21,297 | 19,297 | |
Notes payable balance including accrued interest | 46,297 | 44,797 | |
Interest on debt | 2,000 | ||
Notes Payable Annual Interest Payable At 5% [Member] | |||
Notes payable | $ 21,627 | ||
Annual interest payable | 5.00% | ||
Accrued interest on note | $ 9,462 | 11,294 | |
Notes payable balance including accrued interest | 31,089 | 35,793 | |
Interest on debt | $ 1,150 | $ 1,349 | |
Notes Payable Annual Interest Payable At 5% [Member] | CDN [Member] | |||
Notes payable | CAD | CAD 30,000 |
Convertible Note Payable (Detai
Convertible Note Payable (Details Narrative) | 12 Months Ended | |
Dec. 31, 2015USD ($)Notes | Dec. 31, 2014USD ($) | |
Number of convertible notes payable | Notes | 8 | |
Convertible notes descriptions | The notes are convertible into common stock at the discretion of the holder on four different conversion rate: $0.01 debt to 1 common share, $0.045 to 1; $0.005 to $1 and $0.15 to 1. | |
Amortization of debt discount | $ 24,750 | $ 21,333 |
Interest expense debt | 3,000 | |
First Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Amortization of debt discount | $ 40,000 | $ 40,000 |
Amortization period of discount | 5 years | 5 years |
Second Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Amortization of debt discount | $ 20,000 | $ 20,000 |
Amortization period of discount | 5 years | 5 years |
Annual interest rate of debt | 20.00% | 20.00% |
Interest expense debt | $ 2,000 | $ 2,000 |
Third Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Amortization of debt discount | $ 25,000 | $ 25,000 |
Amortization period of discount | 5 years | 5 years |
Annual interest rate of debt | 20.00% | 20.00% |
Interest expense debt | $ 5,000 | $ 5,000 |
Unamortized discount | 7,500 | |
Fourth Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Amortization of debt discount | $ 25,000 | $ 25,000 |
Amortization period of discount | 5 years | 5 years |
Annual interest rate of debt | 20.00% | 20.00% |
Interest expense debt | $ 5,000 | $ 5,000 |
Unamortized discount | 11,250 | |
First Convertible Note Payable Convertible on Basis of $0.005 of Debt to 1 Common Share [Member] | ||
Amortization of debt discount | $ 10,000 | $ 10,000 |
Amortization period of discount | 5 years | 5 years |
Annual interest rate of debt | 20.00% | 20.00% |
Interest expense debt | $ 2,000 | $ 2,000 |
Unamortized discount | 500 | |
Second Convertible Note Payable Convertible on Basis of $0.005 of Debt to 1 Common Share [Member] | ||
Amortization of debt discount | $ 10,000 | $ 10,000 |
Amortization period of discount | 5 years | 5 years |
Annual interest rate of debt | 20.00% | 20.00% |
Interest expense debt | $ 2,000 | $ 2,000 |
Unamortized discount | 750 | |
Convertible Notes Payable Convertible on Basis of $0.045 of Debt to 1 Common Share [Member] | ||
Amortization of debt discount | $ 25,000 | $ 25,000 |
Amortization period of discount | 5 years | 5 years |
Annual interest rate of debt | 20.00% | 20.00% |
Interest expense debt | $ 5,000 | $ 3,333 |
Unamortized discount | 16,667 | |
Convertible Notes Payable Convertible on Basis of $0.15 of Debt to 1 Common Share [Member] | ||
Amortization of debt discount | $ 25,000 | $ 25,000 |
Amortization period of discount | 5 years | 5 years |
Annual interest rate of debt | 20.00% | 20.00% |
Interest expense debt | $ 3,750 | |
Unamortized discount | $ 21,250 |
Convertible Note Payable - Sche
Convertible Note Payable - Schedule of Convertible Notes Payable (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
First Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Proceeds from promissory note | $ 40,000 | $ 40,000 |
Value allocated to additional paid-in capital | $ 40,000 | $ 40,000 |
Balance allocated to convertible note payable | ||
Amortized discount | $ 40,000 | $ 40,000 |
Balance, convertible note payable | 40,000 | 40,000 |
Second Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Proceeds from promissory note | 20,000 | 20,000 |
Value allocated to additional paid-in capital | $ 20,000 | $ 20,000 |
Balance allocated to convertible note payable | ||
Amortized discount | $ 20,000 | $ 18,000 |
Balance, convertible note payable | 20,000 | 18,000 |
Third Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Proceeds from promissory note | 25,000 | 25,000 |
Value allocated to additional paid-in capital | $ 25,000 | $ 25,000 |
Balance allocated to convertible note payable | ||
Amortized discount | $ 17,750 | $ 12,500 |
Balance, convertible note payable | 17,750 | 12,500 |
Fourth Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Proceeds from promissory note | 25,000 | 25,000 |
Value allocated to additional paid-in capital | $ 25,000 | $ 25,000 |
Balance allocated to convertible note payable | ||
Amortized discount | $ 13,750 | $ 8,750 |
Balance, convertible note payable | 13,750 | 8,750 |
First Convertible Note Payable Convertible on Basis of $0.005 of Debt to 1 Common Share [Member] | ||
Proceeds from promissory note | 10,000 | 10,000 |
Value allocated to additional paid-in capital | $ 10,000 | $ 10,000 |
Balance allocated to convertible note payable | ||
Amortized discount | $ 9,500 | $ 7,500 |
Balance, convertible note payable | 9,500 | 7,500 |
Second Convertible Note Payable Convertible on Basis of $0.005 of Debt to 1 Common Share [Member] | ||
Proceeds from promissory note | 10,000 | 10,000 |
Value allocated to additional paid-in capital | $ 10,000 | $ 10,000 |
Balance allocated to convertible note payable | ||
Amortized discount | $ 9,250 | $ 7,250 |
Balance, convertible note payable | 9,250 | 7,250 |
Convertible Notes Payable Convertible on Basis of $0.045 of Debt to 1 Common Share [Member] | ||
Proceeds from promissory note | 25,000 | 25,000 |
Value allocated to additional paid-in capital | $ 25,000 | $ 25,000 |
Balance allocated to convertible note payable | ||
Amortized discount | $ 8,333 | $ 3,333 |
Balance, convertible note payable | 8,333 | $ 3,333 |
Convertible Notes Payable Convertible on Basis of $0.15 of Debt to 1 Common Share [Member] | ||
Proceeds from promissory note | 25,000 | |
Value allocated to additional paid-in capital | $ 25,000 | |
Balance allocated to convertible note payable | ||
Amortized discount | $ 3,750 | |
Balance, convertible note payable | $ 3,750 |
Convertible Note Payable - Sc22
Convertible Note Payable - Schedule of Convertible Notes Payable (Details) (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
First Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | $ 0.01 | $ 0.01 |
Second Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | 0.01 | 0.01 |
Third Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | 0.01 | 0.01 |
Fourth Convertible Note Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | 0.01 | 0.01 |
First Convertible Note Payable Convertible on Basis of $0.005 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | 0.005 | 0.005 |
Second Convertible Note Payable Convertible on Basis of $0.005 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | 0.005 | 0.005 |
Convertible Notes Payable Convertible on Basis of $0.045 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | 0.045 | 0.045 |
Convertible Notes Payable Convertible on Basis of $0.15 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | $ 0.15 | $ 0.15 |
Related Party Advance (Details
Related Party Advance (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2008 | |
Related party transaction | ||
President [Member] | ||
Related party advance due | $ 561 | |
Related party unpaid balance | $ 261 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) | Jan. 21, 2015 | Mar. 30, 2006 | Jun. 07, 2004 | Jun. 14, 2001 | Jun. 15, 1998 | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock conversion basis | Issued and outstanding shares of common stock, on a 10 for 1 basis. | ||||||
Common stock, shares issued | 11,302,000 | 11,302,000 | |||||
Common stock, shares outstanding | 11,302,000 | 11,302,000 | |||||
Common shares issued for cash, shares | 5,907,000 | 5,375,000 | |||||
Common shares issued for cash | $ 472 | $ 430 | |||||
Issuance of stock, price per share | $ 2.50 | $ 0.00008 | $ 0.00008 | ||||
Forward stock split ratio | Forward stock split of 5,000:1 | ||||||
Number of shares issued in private placement agreement | 20,000 | ||||||
Number of shares issued in private placement agreement exchange value | $ 50,000 | ||||||
Maximum [Member] | |||||||
Common stock, shares issued | 113,020,000 | ||||||
Common stock, shares outstanding | 113,020,000 | ||||||
Minimum [Member] | |||||||
Common stock, shares issued | 11,302,000 | ||||||
Common stock, shares outstanding | 11,302,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Tax losses expiration period | expire between 2016 and 2036. |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Net income (loss) for the period | $ (64,485) | $ (81,716) |
Statutory and effective tax rates | 26.00% | 26.00% |
Income taxes expenses (recovery) at the effective rate | $ (16,766) | $ (21,246) |
Effect of permanent differences | 6,435 | 5,547 |
Benefit not recognized | $ 10,331 | $ 15,700 |
Income tax expense (recovery) and income tax liability (asset) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Asset (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Tax loss carried forward | $ 382,678 | $ 342,943 |
Deferred tax assets | 99,496 | 89,165 |
Valuation allowance | $ (99,496) | $ (89,165) |
Deferred taxes recognized |