Correction of Previously Issued Financial Statements | Note 9 Correction of Previously Issued Financial Statements As described in Note 2 (i) Financial Instruments, the Company corrected the accounting for convertible debt by adopting the principles in FASB ASC Topic 470, “ Debt with Conversions and Other Options, a) Effect on Balance Sheet – as at December 31, 2016: As Previously As Effect of Stated Adjusted Change Cash $ 14,259 $ 14,259 $ - Intangible assets 42,760 42,760 - Total assets $ 57,019 $ 57,019 $ - Accounts payable and accrued charges $ 36,510 $ 36,510 $ - License fee payable 33,500 33,500 - Notes and accrued interest payable 114,683 114,683 - Convertible notes payable 146,013 241,000 94,987 Related party advance 261 261 - Total liabilities 330,967 425,954 94,987 Common stock 11,302 11,302 - Additional paid in capital 285,600 44,600 (241,000 ) Accumulated deficit (570,850 ) (424,837 ) 146,013 Total stockholders’ deficiency (273,948 ) (368,935 ) (94,987 ) Total liabilities and stockholders’ deficiency $ 57,019 $ 57,019 $ - b) Effect on Statement of Operations – for the Year Ended December 31, 2016: As Previously As Effect of Stated Adjusted Change Sales $ 221 $ 221 $ - Cost of sales 62 62 - Gross margin 159 159 - Operating expenses 38,856 38,856 - Loss before other items (38,697 ) (38,697 ) - Gain on dissolution of subsidiary 2,673 2,673 - Interest expense (30,065 ) (6,135 ) 23,930 Net Loss (66,089 ) (42,159 ) (23,930 ) Translation loss (3,109 ) (3,109 ) - $ (69,198 ) $ (45,268 ) $ 23,930 Net loss per share - basic and diluted $ (0.006 ) $ (0.004 ) $ (0.002 ) c) Effect on Statement of Stockholders’ Deficit – for the Year Ended December 31, 2016: As Previously As Effect of Stated Adjusted Change Stockholders’ deficit Dec 31, 2015 Common shares, Dec 31, 2015 $ 11,302 $ 11,302 $ - Additional paid in capital, Dec 31, 2015 224,600 44,600 (180,000 ) Accumulated other comprehensive income Dec 31, 2015 3,109 3,109 - Accumulated deficit, Dec 31, 2015 (504,761 ) (382,678 ) 122,083 Total stockholders’ deficit Dec 31, 2015 (265,750 ) (323,667 ) (57,917 ) Foreign currency adjustments (3,109 ) (3,109 ) - Net loss for year ended Dec 31, 2016 (66,089 ) (42,159 ) (23,930 ) Convertible debt issued 61,000 - 61,000 Stockholders’ deficit Dec 31, 2016 Common shares, Dec 31, 2016 11,302 11,302 - Additional paid in capital, Dec 31, 2016 285,600 44,600 241,000 Accumulated other comprehensive income Dec 31, 2016 - - - Accumulated deficit, Dec 31, 2016 (570,850 ) (424,837 ) (146,013 ) Total stockholders’ deficit Dec 31, 2016 $ (273,948 ) $ (368,935 ) $ 94,987 d) Effect on Statement of Cash Flows – for the Year Ended December 31, 2016: As Previously As Effect of Stated Adjusted Change Cash flows from operating activities Net loss for the Year $ (66,089 ) $ (42,159 ) $ 23,930 Amortization of convertible debt 23,930 - (23,930 ) Amortization of license 7,240 7,240 - Accrued interest on notes payable 6,135 6,135 - Gain on dissolution of subsidiary (2,673 ) (2,673 ) - Change in accounts payable and accruals 715 715 - Net cash used in operating activities (30,742 ) (30,742 ) - Cash flows from investing activities Purchase of intangible asset (16,500 ) (16,500 ) - Cash flows from financing activities Proceeds of convertible notes 61,000 61,000 - Increase in cash 13,758 13,758 - Cash, beginning of year 501 501 - Cash, end of year $ 14,259 $ 14,259 $ - e) Effect on Specific Convertible Notes Payable – as at December 31, 2016: As Previously As Effect of Stated Adjusted Change Notes convertible on the basis of $0.01 of debt to 1 common share Carrying value, December 31, 2016 $ 101,250 $ 110,000 $ 8,750 Notes convertible on the basis of $0.005 of debt to 1 common share Carrying value, December 31, 2016 20,000 20,000 - Notes convertible on the basis of $0.045 of debt to 1 common share Carrying value, December 31, 2016 13,333 25,000 11,667 Notes convertible on the basis of $0.15 of debt to 1 common share Carrying value, December 31, 2016 8,750 25,000 16,250 Notes convertible on the basis of $0.05 of debt to 1 common share Carrying value, December 31, 2016 2,080 41,000 38,920 Notes convertible on the basis of $0.04 of debt to 1 common share Carrying value, December 31, 2016 600 20,000 19,400 $ 146,013 $ 241,000 $ 94,987 f) Effect on deferred taxes – as at December 31, 2016 As Previously As Effect of Stated Adjusted Change Net loss for the year $ (66,089 ) $ (42,159 ) $ (23,930 ) Statutory and effective tax rate 26.0 % 26.0 % - Recovery at effective rate (17,183 ) (10,961 ) (6,222 ) Tax effect of permanent difference 6,222 - 6,222 Tax benefit not recognized 10,961 10,961 - Income tax recovery and income tax asset $ - $ - $ - |