| Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting
Policies Basis of presentation The unaudited condensed consolidated financial statements
of the Company for the three months ended August 31, 2022 and 2021 have been prepared in accordance with accounting principles generally
accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form 10-Q
and Regulation S-K. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted
in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely
of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position
and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full
fiscal year. The balance sheet information as of May 31, 2022 was derived from the audited financial statements included in the Company's
financial statements as of and for the fiscal year ended May 31, 2022 included in the Company’s Annual Report on Form 10-K filed
with the Securities and Exchange Commission (the “SEC”) on September 29, 2022. These financial statements should be read in
conjunction with that report. Principles of Consolidation The consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiaries (i) PreAxia Health Care Payment Systems Inc., incorporated pursuant to the
laws of the Province of Alberta on January 28, 2008 (ii) PreAxia Canada Inc., incorporated pursuant to the laws of the Province of Alberta
on January 28, 2008 and (iii) PreAxia Health Care Payment Ltd., incorporated pursuant to the laws of the Province of Alberta on November
26, 2015 (collectively, the “Subsidiaries”). All inter-company accounts and transactions have been eliminated in consolidation. Going Concern The accompanying unaudited condensed
consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the
realization of assets and satisfaction of liabilities in the normal course of business. During the three months ended August 31,
2022, the Company incurred a net loss of $ 37,347 13,289 2,177,811 The Company’s ability to continue as a going
concern is dependent upon its ability to develop additional sources of capital and to ultimately achieve profitable operations. Currently,
the Company does not have significant cash or other material assets, nor does it have operations or a source of revenue sufficient to
cover its operating costs and allow it to continue as a going concern. The Company’s officers or principal shareholders have committed
to making advances or loans to pay for certain legal, accounting, and administrative costs. The Company hopes to be able to attract suitable investors
for our business plan, which will not require us to use our cash. There can be no assurance that the Company will be successful in this
situation. The Company is unable to predict the effect, if any, that the COVID-19 global pandemic may have on its access to the financing
markets. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case
of debt financing or cause substantial dilution for our stockholders, in the case of equity financing. Cash and Cash Equivalents The Company considers all highly liquid debt
instruments with an original maturity of three months or less to be cash equivalents. Use of Estimates The preparation of the Company’s
unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial
statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions
that our company may undertake in the future, actual results could differ from those estimates. Foreign Currency Translation The functional currency of the Company is the
United States dollar. The functional currency of the Subsidiaries is the Canadian dollar. Assets and liabilities in the accompanying consolidated
financial statements are translated into United States dollars at the exchange rate in effect at the balance sheet date and capital accounts
are translated at historical rates. Income statement accounts are translated at the average rates of exchange prevailing during the period.
Translation adjustments arising from the use of differing exchange rates from period to period are included in the accumulated other comprehensive
income (loss) account in stockholders’ deficit. Transactions undertaken in currencies other
than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date. Any transaction
exchange gains and losses are included in the statement of operations and comprehensive loss. The Company's reporting currency is the U.S.
dollar. All transactions initiated in Canadian Dollars are translated into U.S. dollars in accordance with Accounting Standards Codification
("ASC") 830-30, "Translation of Financial Statements," as follows: i) assets
and liabilities are translated at the closing rate at the date of the balance sheet of 1.00 1.3101 1.00 0.8600 1.00 1.2632 1.00 0.7925 ii) income
and expenses are translated at average exchange rates for the three months ended August 31, 2022 of 1.00 1.2893 1.00 1.2452 iii) all
resulting exchange differences are recognized as other comprehensive income, a separate component of equity. The exchange differences
during the three months ended August 31, 2022 and 2021 were insignificant and no amounts have been recorded. Fair Value of Financial Instruments The Company 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. Management uses 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 entity’s 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 levels of the fair value hierarchy are described below:
- Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
- Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
- Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon
certain market assumptions and pertinent information available to management as of August 31, 2022 and May 31, 2022. 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. Net Income (Loss) Per Share Net income (loss) per share of common stock is computed
by dividing the net loss by the weighted average number of common shares outstanding during the period. The Company has 10,587,600 Research and Development Costs The Company expenses research and development
costs as incurred in accordance with FASB ASC 730 “Research and Development.” During the three months ended August 31, 2022
and 2021, we incurred $ 3,271 2,081 Software Development Costs The Company accounts for software development
costs in accordance with several accounting pronouncements, including FASB ASC 730, “Research and Development,” FASB ASC 350-40,
“Internal-Use Software,” FASB 985-20, “Costs of Computer Software to be Sold, Leased, or Marketed” and FASB ASC
350-50, “Website Development Costs .” Costs incurred during the period of planning
and design, prior to the period determining technological feasibility, for all software developed for use internal and external, has been
charged to operations in the period incurred as research and development costs. Additionally, costs incurred after determination
of readiness for market have been expensed as research and development. The Company will capitalize certain costs in
the development of our proprietary software (computer software to be sold, leased or licensed) for the period after technological feasibility
was determined and prior to our marketing and initial sales. Website development costs are capitalized under
the same criteria as our marketed software. Impairment of Long-lived Assets Long-lived assets such as property, equipment
and identifiable intangibles are reviewed for impairment whenever facts and circumstances indicate that the carrying value may not be
recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset. The
fair value is determined based on estimates of future cash flows, market value of similar assets, if available, or independent appraisals,
if required. If the carrying amount of the long-lived asset is not recoverable from its undiscounted cash flows, an impairment
loss is recognized for the difference between the carrying amount and fair value of the asset. When fair values are not available,
the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risk associated with
the recovery of the assets. We did not recognize any impairment losses for any periods presented. Commitments and Contingencies The Company follows subtopic 450-20 of the FASB Accounting
Standards Codification to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments,
litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of
the assessment can be reasonably estimated. Revenue Recognition In accordance with ASC 606, “Revenue from Contracts
with Customers,” revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized
reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. ASC 606 requires us to
apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3)
determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize
revenue when, or as, we satisfy the performance obligation. Gross Versus Net Revenue ASC 606 provides guidance on proper recognition of
principal versus agent considerations which is used to determine gross versus net revenue recognition. Under ASC 606, the core objective
of the guidance on gross versus net revenue recognition is to help determine whether an entity is a principal or an agent in a transaction.
In general, the primary difference between these two is the performance obligation being satisfied. The principal has a performance obligation
to provide the desired goods or services to the end customer, whereas the agent arranges for the principal to provide the desired goods
or services. Additionally, a fundamental characteristic of a principal in a transaction is control. A principal substantively controls
the goods and services before they are transferred to the customer as well as controls the price of the good or service being provided.
An agent normally receives a commission or fee for these activities. In addition to control, the level at which an entity controls the
price of the good or service being transferred determines principal versus agent status. The more discretion over setting price a company
has in providing the good or service, the more likely they are considered a principal rather than an agent. Under the guidance when another
party is involved in providing a good or service to a customer, an entity is a principal if the entity obtains control of the asset or
right to a service performed by the other party. The Company provides administrative services for Health
Spending Accounts sponsored by employers (the “customer”). The Company does not take possession of goods or control the services
provided as the employees of customer are free to determine their health care provider. As such, the Company records revenue net of reimbursements
to employees. The Company’s services to the customer consist of reviewing medical costs for eligibility and reimbursing employees
for eligible costs. During the three months ended August 31, 2022 and
2021, the Company had revenue of $ 0 41 10 Income Taxes The Company follows Section 740-10-30 of the FASB
Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities
are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect
for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to
the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements
of Income and Comprehensive Income in the period that includes the enactment date. The Company follows section 740-10-25 of the FASB
Accounting Standards Codification (“Section 740-10-25”) with regards to uncertain income tax positions. Section 740-10-25
addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial
statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely
than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.
The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that
has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance
on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. |
