| Summary of Significant Accounting Policies | 2.
Summary of Significant Accounting Policies
a) Basis of Presentation The
unaudited interim condensed financial statements of the Company as of September 30, 2015 and for the three month periods ended
September 30, 2015 and 2014 included herein, have been prepared in accordance with accounting principles generally accepted in
the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the Securities
and Exchange Commission ("SEC"). The year-end condensed balance sheet dated as of June 30, 2015 is also unaudited and is
presented here as a basis for comparison and reflective of our transition period balance sheet for our new year end which was
changed on June 15, 2015. The Companys fiscal year-end was January 31 but has been changed to June 30 by vote of a
majority of the Companys board of directors. Although the financial statements and related information included herein have
been prepared without audit, and certain information and note disclosures normally included in financial statements prepared in
accordance with GAAP have been condensed or omitted, the Company believes that the note disclosures are adequate to make the information
presented not misleading. These unaudited condensed financial statements should be read in conjunction with the Companys
audited consolidated financial statements and the notes thereto included in the Companys Annual Report on Form 10-K as of
January 31, 2015. In the opinion of management, the unaudited interim financial statements included herein reflect all adjustments,
consisting of normal recurring adjustments, considered necessary for a fair presentation of the Companys financial position,
results of operations, and cash flows for the periods presented. The results of operations for interim periods are not necessarily
indicative of the results expected for the full year or any future period.
b) Use of Estimates The
financial statements and related notes are prepared in conformity with GAAP which requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly
evaluates estimates and assumptions related to valuation and impairment of long-lived assets, asset retirement obligations, fair
value of share-based payments, and deferred income tax asset valuation allowances. 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 Companys estimates. To the extent there are material differences between the estimates and the actual
results, future results of operations will be affected.
c) Basic and Diluted Net Loss Per Share The
Company computes net loss per share in accordance with Accounting Standard Codification (ASC) 260, Earnings Per
Share,
d) Oil and Gas Property Costs During
the year ended January 31, 2015, the Company decided to discontinue its oil and gas business and the relevant assets have been
impaired. In June 2015, the Company assigned its interest in the Quinlan wells to the operator of those wells in exchange for
the cancellation of all amounts due to the operator, including any future liabilities related to the Quinlan wells.
e) Accounts Receivable Accounts
receivables are amounts due from customers of our medical products division and our financial services division. The amount is
reported at fair value, net of any expected allowance for bad debts.
f) Inventory Inventory
consist of purchased thermometers held for resale and are stated at the lower of cost or market utilizing the first-in, first-out
method.
i) 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,
j) Comprehensive Loss ASC
220, Comprehensive Income
k) Financial Instruments Pursuant
to ASC 820, Fair Value Measurements and Disclosures Level
1 Level
1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level
2 Level
2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability
such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in
markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant
inputs are observable or can be derived principally from, or corroborated by, observable market data. Level
3 Level
3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to
the measurement of the fair value of the assets or liabilities. The
Companys financial instruments consist principally of cash, accounts payable and accrued liabilities, and amounts due to
related parties. Pursuant to ASC 820 and ASC 825, the fair value of our cash is determined based on Level 1 inputs,
which consist of quoted prices in active markets for identical assets. We
believe that the recorded values of all of our other financial instruments approximate their current fair values because of their
nature and respective maturity dates or durations.
l) Reclassifications Certain
financial statement items may have been reclassified to conform to current period financial reporting requirements. These reclassifications
had no effect on total assets, liabilities, equity or net loss.
m) Recent Accounting
Pronouncements Development
Stage The
Company has limited operations and is considered to be in the development stage. During the year ended January 31, 2015, the Company
elected to early adopt Accounting Standards Update (ASU) No. 2014-10, Development Stage Entities (Topic 915): Elimination
of Certain Financial Reporting Requirements Revenue
Recognition In
May 2014, the Financial Accounting Standards Board ("FASB") issued new guidance intended to change the criteria for recognition
of revenue. The new guidance establishes a single revenue recognition model for all contracts with customers, eliminates industry
specific requirements and expands disclosure requirements. The core principle of the guidance is that an entity should recognize
revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply
the following five steps: (1) identify contracts with customers, (2) identify the performance obligations in the contracts, (3)
determine the transaction price, (4) allocate the transaction price to the performance obligation in the contract, and (5) recognize
revenue as the entity satisfies performance obligations. The amendments are effective for annual reporting periods beginning after
December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual reporting
periods beginning after December 15, 2016, including interim periods within that reporting period. We are currently evaluating
what impact adoption of this guidance would have on our financial position, results of operations, cash flows and disclosures. Going
Concern In
August 2014, the FASB issued guidance on disclosures of uncertainties about an entity's ability to continue as a going concern.
The guidance requires management's evaluation of whether there are conditions or events that raise substantial doubt about the
entity's ability to continue as a going concern within one year after the date that the financial statements are issued. This
assessment must be made in connection with preparing financial statements for each annual and interim reporting period. Management's
evaluation should be based on the relevant conditions and events that are known and reasonably knowable at the date the financial
statements are issued. If conditions or events raise substantial doubt about the entity's ability to continue as a going concern,
but this doubt is alleviated by management's plans, the entity should disclose information that enables the reader to understand
what the conditions or events are, management's evaluation of those conditions or events and management's plans that alleviate
that substantial doubt. If conditions or events raise substantial doubt and the substantial doubt is not alleviated, the entity
must disclose this in the footnotes. The entity must also disclose information that enables the reader to understand what the
conditions or events are, management's evaluation of those conditions or events and management's plans that are intended to alleviate
that substantial doubt. The amendments are effective for annual periods and interim periods within those annual periods beginning
after December 15, 2016. We do not expect that adoption will have a material impact on our financial position, results of operations,
cash flows or disclosures. Debt
Issuance Costs In
April 2015, the FASB issued new guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction
from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The new guidance
does not affect the recognition and measurement of debt issuance costs. Therefore, the amortization of such costs will continue
to be calculated using the interest method and be reported as interest expense. The new guidance does not specifically address,
and therefore does not affect, the balance sheet presentation of debt issuance costs for revolving debt arrangements. The new
guidance is effective for financial statements issued in fiscal years beginning after December 15, 2015, and will be applied
on a retrospective basis. Early adoption is permitted for financial statements that have not been previously issued.
n) New Accounting Pronouncements The
Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material
impact on its consolidated financial statements. |
