| BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (A) Business Description Plyzer Technologies Inc. (the Company), incorporated on February 23, 2005 under the laws of the state of Nevada, and through its subsidiaries, is a provider of custom, real-time, cloud-based business intelligence solutions for brands to analyze critical online price and market data. (B) Basis of Presentation The audited consolidated financial statements for the year ended March 31, 2019 include the accounts of Plyzer Technologies Inc. and the following wholly owned subsidiaries and are presented in accordance with accounting principles generally accepted in the United States (GAAP), and are expressed in U.S. dollars: a. Plyzer Corporation, incorporated in the State of Delaware on December 9, 2016. b. Plyzer Technologies (Canada) Inc., incorporated in Ontario, Canada on April 11, 2017. c. Plyzer Blockchain Technologies Inc., incorporated in Ontario, Canada on November 3, 2017. This subsidiary has not yet commenced any operations. All material intercompany accounts and transactions have been eliminated in consolidation. (C) Use of Estimates The financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of financial position, and revenues and expenses for the year then ended. Actual results may differ significantly from those estimates. (D) Significant Accounting Policies Technology and Content Technology and content costs include charges from third party contractors involved in the research and development of new and existing products and services, development, design, and maintenance of our websites, curation and display of services made available on our websites, and infrastructure costs. Infrastructure costs include servers, networking equipment, rent, utilities, and other expenses necessary to support wideband system. Collectively, these costs reflect the investments we make in order to offer a wide variety of products and services to our customers. Technology and content costs are expensed as incurred. Foreign Currency Translation The Companys functional and reporting currency is the United States Dollar. Assets and liabilities recorded in currencies other than US dollars are translated into USD at the prevailing exchange rates in effect at the end of the reporting period, the historical rate for stockholders equity (deficiency) and revenues, expenses, gains and losses shall be translated at the exchange rate on the dates on which these elements are recognized, or if found to be impractical, the average exchange rate for the period may be used to translate these elements. Adjustments that arise from translation into the reporting currency are recorded as an exchange gain or loss to be included as other comprehensive gain or loss. For the fiscal year 2019, the average exchange rate for the year was CDN$1= US$0.76 (for the fiscal year 2018: CDN$1=US$0.78) and exchange rate as at March 31, 2019 was CDN$1 = US$0.75 (March 31, 2018 was CDN$1 = US$0.78). Transaction gains and losses are recorded in the earnings in the period of settlement. Basic and Diluted Loss Per Share In accordance with ASC Topic 280 - "Earnings Per Share," the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common stock outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common stock had been issued and if the additional shares of common stock were dilutive. Potential common stock consists of the incremental common stock issuable upon the exercise of common stock warrants (using the if-converted method). The computation of basic loss per share for the year ended March 31, 2019 excludes potentially dilutive securities of 19,762,867 shares underlying share purchase warrants and convertible notes, because their inclusion would be antidilutive. As a result, the computations of net loss per share for each period presented is the same for both basic and fully diluted. Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive. March 31, 2019 March31, 2018 Stock purchase warrants 6,800,000 5,900,000 Convertible notes 12,962,867 2,145,573 Total 19,762,867 8,045,573 Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturity of three months or less to be cash equivalents. As of March 31, 2019, and 2018, the Company had no cash equivalents. Furniture and Equipment Furniture and equipment items are stated at cost and depreciated to their estimated residual value over their estimated useful lives, which are presently considered to be three years. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are relieved from the accounts and the resulting gains or losses are included in the Statements of Operations. Repairs and maintenance costs are expensed as incurred. Depreciation is provided using the straight-line method. Convertible Debts and Derivative Liability Convertible loan notes issued by the Company have embedded conversion features where principal liability and accrued interest are convertible, at the option of the loan holder, into common shares of the Company, at a price, based on the quoted market price of the Companys common shares on the date of conversion discounted at an agreed percentage. The derivative liability is segregated and initially carried at fair value and subsequently remeasured on each reporting date at their fair value. The difference is taken to income as derivative gains or losses. The debt discount is amortized over the period of the loan and charged to interest expense. Loans are stated at net of amortized debt discount amount. Income Taxes The Company accounts for income taxes under FASB Codification Topic 740 which requires use of the liability method. Topic 740 provides that deferred tax assets and liabilities are recorded based on the differences between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Share-Based Compensation FASB ASC 718 Compensation - Stock Compensation prescribes accounting and reporting standards for all stock-based payments awarded to employees, including employee stock option, restricted stock, employee stock purchase plans and stock appreciation rights, that may be classified as either equity or liabilities. The Company determines if a present obligation to settle the share-based payment transaction in cash or other assets exists. A present obligation to settle in cash or other assets exists if: (A) the option to settle by issuing equity instruments lacks commercial substance or (B) the present obligation is implied because of an entitys past practice or stated policies. If a present obligation exists, the transaction should be recognized as a liability; otherwise, the transaction should be recognized as equity. Fair Value of Financial Instruments The Companys balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. FASB Accounting Standards Codification (ASC) topic 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entitys own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three-level hierarchy for fair value measurements is defined as follows: Level 1 Level 2 Level 3 The following table provides a summary of the fair value of our derivative liabilities as of March 31, 2019 and March 31, 2018: Fair value measurements on a recurring basis Level 1 Level 2 Level 3 As of March 31, 2019: Liabilities Derivative liabilities $ -- $ -- $ 2,110,425 As of March 31, 2018: Liabilities Derivative liabilities $ -- $ -- $ 933,198 |
