Cover
Cover - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Aug. 12, 2020 | Oct. 31, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | DIAMOND CARTEL INC | ||
Entity Central Index Key | 0001347491 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 333-215884 | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | true | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 895,750 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Balance Sheets
Balance Sheets - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
ASSETS | ||
Total Assets | $ 0 | $ 0 |
Current Liabilities | ||
Account payable and accrued liabilities | 7,062 | 11,680 |
Due to related party | 77,544 | 43,368 |
Advances payable | 42,336 | 42,220 |
Total Liabilities | 126,942 | 97,268 |
Stockholders' Deficit | ||
Preferred stock, value | ||
Common stock, 200,000,000 shares authorized, $0.0001 par value; 895,750 shares issued and outstanding at April 30, 2020 and 2019 | 90 | 90 |
Additional paid-in capital | 454,126 | 454,126 |
Accumulated deficit | (581,158) | (551,484) |
Total Stockholders' Deficit | (126,942) | (97,268) |
Total Liabilities and Stockholders' Deficit | 0 | 0 |
Series A Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred stock, value |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2020 | Apr. 30, 2019 |
Preferred stock, shares authorized | 946,000 | 946,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 895,750 | 895,750 |
Common stock, shares outstanding | 895,750 | 895,750 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized | 54,000 | 54,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 0.48 | 0.48 |
Preferred stock, shares outstanding | 0.48 | 0.48 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Statement [Abstract] | ||
Revenue | ||
Expenses | ||
General and administrative | 29,674 | 27,283 |
Net Loss before provision for income tax | (29,674) | (27,283) |
Provision for income tax | ||
Net Loss | $ (29,674) | $ (27,283) |
Net Loss Per Common Share - Basic and Diluted | $ (0.03) | $ (0.03) |
Weighted Average Number of Common Shares Outstanding | 895,750 | 895,750 |
Statements of Shareholders' Def
Statements of Shareholders' Deficit - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Apr. 30, 2018 | $ 90 | $ 454,126 | $ (524,201) | $ (69,985) | |
Balance, shares at Apr. 30, 2018 | 0.48 | 895,750 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss for the year | (27,283) | (27,283) | |||
Balance at Apr. 30, 2019 | $ 90 | 454,126 | (551,484) | (97,268) | |
Balance, shares at Apr. 30, 2019 | 0.48 | 895,750 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss for the year | (29,674) | (29,674) | |||
Balance at Apr. 30, 2020 | $ 90 | $ 454,126 | $ (581,158) | $ (126,942) | |
Balance, shares at Apr. 30, 2020 | 0.48 | 895,750 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Operating Activities: | ||
Net loss | $ (29,674) | $ (27,283) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Foreign exchange gain on amount due to related party | 268 | (256) |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued liabilities | (17,256) | |
Advances payable | (4,700) | 42,220 |
Net Cash Used in Operating Activities | (34,106) | (2,575) |
Financing Activities: | ||
Proceeds of loan from related party | 34,106 | 2,575 |
Net Cash Provided by Financing Activities | 34,106 | 2,575 |
Change in Cash | ||
Cash - Beginning of Year | ||
Cash - End of Year | ||
Supplemental Disclosures: | ||
Interest paid | ||
Income taxes paid | ||
Supplemental Non-Cash Transactions | ||
Expenses paid on behalf of the Company by third party | $ 42,220 |
Business Description
Business Description | 12 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | 1. Business Description The Diamond Cartel Inc. (the “Company”) was incorporated in the State of Delaware on August 17, 2005. The Company is a Blank Check Company which plans to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business with one or more businesses. On July 14, 2018 the Company had entered into a Letter of Intent with an unrelated third party. Except for this Letter of Intent, the Company has not identified any business combination target and has not, nor has anyone on its behalf, initiated any substantive discussions, directly or indirectly, with any business combination target. |
Going Concern
Going Concern | 12 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | 2. Going Concern These financial statements have been prepared on a going concern basis, which contemplates the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated any revenue since inception. As of April 30, 2020, the Company has a working capital deficiency of $126,942 and has accumulated losses of $581,158 since inception. These factors, among others, raise substantial doubt regarding the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity financing to continue operations. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company intends to fund its activities through debt and equity financing arrangements. There is no assurance that the Company will obtain the necessary financing to complete its objectives. In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or ability to raise funds. Management continues to monitor the situation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies a) Basis of Presentation The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States. The Company has an April 30 year-end. b) Use of Estimates The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. c) Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. d) Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share e) Related Parties The Company follows ASC 850, Related Party Disclosures, f) Comprehensive Loss ASC 220, Comprehensive Income g) Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, Income Taxes ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods presented. h) Fair value Accounting standards regarding fair value of financial instruments define fair value, establish a three-level hierarchy which prioritizes and defines the types of inputs used to measure fair value, and establish disclosure requirements for assets and liabilities presented at fair value on the balance sheets. Fair value is the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants. A liability is quantified at the price it would take to transfer the liability to a new obligor, not at the amount that would be paid to settle the liability with the creditor. The three-level hierarchy is as follows: ● Level 1 inputs consist of unadjusted quoted prices for identical instruments in active markets. ● Level 2 inputs consist of quoted prices for similar instruments. ● Level 3 valuations are derived from inputs which are significant and unobservable and have the lowest priority. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts reported in the balance sheet for amounts due to related party approximate their fair market value based on the short-term maturity of these instruments. i) Recent Accounting Pronouncements The Company has implemented all new pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Advances Payable
Advances Payable | 12 Months Ended |
Apr. 30, 2020 | |
Payables and Accruals [Abstract] | |
Advances Payable | 4. Advances Payable On July 14, 2018, the Company executed a Letter of Intent (the “LOI”) with a Corporation registered in the country of Chile (“Corporation”). Pursuant to the LOI, the Corporation agreed to exchange 100% of its total issued and outstanding shares for 13,056,626 shares of common stock of the Company. In addition, the Corporation agreed to provide funding of $500,000 and to enter into a consulting contract with the President of Company. Of the $500,000 funding, $15,000 shall be payable to the President of the Company immediately upon acceptance of the LOI. The $15,000 is refundable in the event the terms of the LOI are not met. Of the $500,000 funding, $135,000 is to be deposited to a trust account with the Company’s legal counsel for payment of outstanding payables, closing costs associated with the transaction and costs associated with raising capital for the Corporation. Once the Corporation raised a minimum of $4,500,000 after the completion of transaction, the President of the Company shall receive the remaining $350,000. As at April 30, 2020, the Corporation provided $42,336 (2019 - $42,220) representing professional fees paid on behalf of the Company. The Company has recognized them in advances payable as at April 30, 2020 and 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 5. Related Party Transactions As at April 30, 2020 and 2019, the Company was indebted to the President of the Company for $77,544 and $43,368, respectively, for expenses incurred on behalf of the Company. These amounts are non-interest bearing, unsecured, and are due on demand. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The reconciliation of income tax benefit at the U.S. statutory rate of 21% for the period ending April 30, 2020 and 2019 to the Company’s effective tax rate is as follows: 2020 2019 US Statutory Rate 21 % 21 % Tax benefit at U.S. statutory rate $ 6,231 $ 5,729 Change in valuation allowance (6,231 ) (5,729 ) Net deferred income tax asset $ – $ – The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at April 30, 2020 and 2019 are as follows: 2020 2019 Net operating loss: 122,043 115,812 Valuation allowance (122,043 ) (115,812 ) $ – $ – Change in valuation allowance: Balance, prior year $ (115,812 ) $ (183,470 ) Effect of change in tax rate – 73,388 Increase in valuation allowance (6,231 ) (5,730 ) Balance, current year $ (122,043 ) $ (115,812 ) The Company has approximately $581,158 of net operating losses (“NOL”) carried forward to offset taxable income, if any, in future years which expire between fiscal 2025 and 2040. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized. The Company’s net operating loss carryforwards are subject to review and possible adjustment by the Internal Revenue Service and are subject to certain limitations in the event of cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50%. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 7. Subsequent Events Management has evaluated subsequent events through the date that these financial statements were issued. There have been no events that would require adjustment to or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a) Basis of Presentation The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States. The Company has an April 30 year-end. |
Use of Estimates | b) Use of Estimates The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Cash and Cash Equivalents | c) Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. |
Basic and Diluted Net Income (Loss) Per Share | d) Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share |
Related Parties | e) Related Parties The Company follows ASC 850, Related Party Disclosures, |
Comprehensive Loss | f) Comprehensive Loss ASC 220, Comprehensive Income |
Income Taxes | g) Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, Income Taxes ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods presented. |
Fair value | h) Fair value Accounting standards regarding fair value of financial instruments define fair value, establish a three-level hierarchy which prioritizes and defines the types of inputs used to measure fair value, and establish disclosure requirements for assets and liabilities presented at fair value on the balance sheets. Fair value is the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants. A liability is quantified at the price it would take to transfer the liability to a new obligor, not at the amount that would be paid to settle the liability with the creditor. The three-level hierarchy is as follows: ● Level 1 inputs consist of unadjusted quoted prices for identical instruments in active markets. ● Level 2 inputs consist of quoted prices for similar instruments. ● Level 3 valuations are derived from inputs which are significant and unobservable and have the lowest priority. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts reported in the balance sheet for amounts due to related party approximate their fair market value based on the short-term maturity of these instruments. |
Recent Accounting Pronouncements | i) Recent Accounting Pronouncements The Company has implemented all new pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of income tax benefit | The reconciliation of income tax benefit at the U.S. statutory rate of 21% for the period ending April 30, 2020 and 2019 to the Company’s effective tax rate is as follows: 2020 2019 US Statutory Rate 21 % 21 % Tax benefit at U.S. statutory rate $ 6,231 $ 5,729 Change in valuation allowance (6,231 ) (5,729 ) Net deferred income tax asset $ – $ – |
Schedule of deferred tax assets | The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at April 30, 2020 and 2019 are as follows: 2020 2019 Net operating loss: 122,043 115,812 Valuation allowance (122,043 ) (115,812 ) $ – $ – Change in valuation allowance: Balance, prior year $ (115,812 ) $ (183,470 ) Effect of change in tax rate – 73,388 Increase in valuation allowance (6,231 ) (5,730 ) Balance, current year $ (122,043 ) $ (115,812 ) |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Revenues | ||
Working capital deficiency | 126,942 | |
Accumulated losses | $ (581,158) | $ (551,484) |
Advances Payable (Details Narra
Advances Payable (Details Narrative) - USD ($) | Jul. 14, 2019 | Apr. 30, 2020 | Apr. 30, 2019 |
Common stock, shares issued | 895,750 | 895,750 | |
Common stock, shares outstanding | 895,750 | 895,750 | |
Funding into consulting contract with President | $ 34,106 | $ 2,575 | |
Related Party [Member] | |||
Ownership percentage | 100.00% | ||
Common stock, shares issued | 13,056,626 | ||
Common stock, shares outstanding | 13,056,626 | ||
Consulting contract description | The Corporation agreed to provide funding of $500,000 and to enter into a consulting contract with the President of Company. Of the $500,000 funding, $15,000 shall be payable to the President of the Company immediately upon acceptance of the LOI. The $15,000 is refundable in the event the terms of the LOI are not met. Of the $500,000 funding, $135,000 is to be deposited to a trust account with the Company's legal counsel for payment of outstanding payables, closing costs associated with the transaction and costs associated with raising capital for the Corporation. Once the Corporation raised a minimum of $4,500,000 after the completion of transaction, the President of the Company shall receive the remaining $350,000. | ||
Funding into consulting contract with President | $ 500,000 | ||
Amount deposited to trust for payment of outstanding payables | 135,000 | ||
Amount raised for transaction | 4,500,000 | ||
Professional fees paid behalf of company | $ 42,336 | $ 42,220 | |
President [Member] | Related Party [Member] | |||
Payable after the acceptance of LOI | 15,000 | ||
Refundable amount | 15,000 | ||
Receive based on minimum transaction completion | $ 350,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Due to related party | $ 77,544 | $ 43,368 |
President [Member] | ||
Due to related party | $ 77,544 | $ 43,368 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
US Statutory Rate | 21.00% | 21.00% |
Tax benefit at U.S. statutory rate | $ 6,231 | $ 5,729 |
Change in valuation allowance | (6,231) | (5,729) |
Net deferred income tax asset |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Net operating loss: | $ 122,043 | $ 115,812 | ||
Valuation allowance | $ (115,812) | $ (183,470) | (122,043) | (115,812) |
Net deferred tax assets | ||||
Change in valuation allowance: | ||||
Balance, prior year | (115,812) | (183,470) | ||
Effect of change in tax rate | 73,388 | |||
Increase in valuation allowance | (6,231) | (5,729) | ||
Balance, current year | $ (122,043) | $ (115,812) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit, statutory rate | 21.00% | 21.00% |
Net operating losses | $ 581,158 | |
Operating loss carryforwards, description | The Company has approximately $581,158 of net operating losses (“NOL”) carried forward to offset taxable income, if any, in future years which expire between fiscal 2025 and 2040. | |
Operating loss carryforwards, expire year | Expire between fiscal 2025 and 2040. |