Indigenous Roots (IRCC) 10-Q 10 Feb 20 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Feb. 28, 2019shares
Document And Entity Information
Entity Registrant Name	Indigenous Roots Corp.
Entity Central Index Key	0001373690
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Feb. 28, 2019
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Entity Common Stock Shares Outstanding	8,237,618
EntityFileNumber	000-55873
EntityAddressAddressLine1	41 Puget Drive
EntityAddressPostalZipCode	98388
EntityTaxIdentificationNumber	205243308
EntityAddressCityOrTown	Steilacoom
LocalPhoneNumber	681-1010
CityAreaCode	250
EntityAddressStateOrProvince	WASHINGTON

INTERIM CONDENSED BALANCE SHEET

INTERIM CONDENSED BALANCE SHEETS - USD ($)	Feb. 28, 2019	Aug. 31, 2018
ASSETS
Cash	$ 64
Current Assets
Total Assets	64
Bank overdraft		103
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable and accrued liabilities	62,712	62,712
Current Liabilities
Due to related parties (Note 5)	78,283	75,283
Convertible loan payable (Note 3)		1,708,588
Total Liabilities	140,995	1,846,686
Common stock 200,000,000 authorized shares, par value $0.001 8,237,618 and 8,237,618 shares issued and outstanding as at February 28, 2019 and August 31, 2018 respectively (Note 4)	8,238	8,238
Additional paid-in-capital (Note 4)	4,430,261	4,430,261
STOCKHOLDERS' DEFICIT
Deficit	(4,579,430)	(6,285,185)
Total Stockholders' Deficit	(140,931)	(1,846,686)
Total Liabilities and Stockholders' Deficit	$ 64

INTERIM CONDENSED BALANCE SHE_2

INTERIM CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Feb. 28, 2019	Aug. 31, 2018
STOCKHOLDERS' DEFICIT
Common stock, shares par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	8,237,618	8,237,618
Common stock, shares outstanding	8,237,618	8,237,618

INTERIM CONDENSED STATEMENT OF

INTERIM CONDENSED STATEMENT OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
EXPENSES
General and administrative expenses	$ 1,518	$ 28,044	$ 2,834	$ 242,338
Operating expenses
Legal and audit fees		12,740		19,290
Loss before other items	1,518	40,784	2,834	261,628
Gain on reversal of debt (Note 3)	(1,756,938)		(1,756,938)
Other (income) expenses
Foreign exchange		(3,186)	(1)	(4,601)
Interest expense	23,907	23,906	48,350	48,349
Net and comprehensive income (loss)	$ 1,731,513	$ (61,504)	$ 1,705,755	$ (305,376)
BASIC AND DILUTED GAIN (LOSS) PER COMMON SHARE	$ 0.21	$ (0.01)	$ 0.21	$ (0.04)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED	8,237,618	8,147,618	8,237,618	7,926,292

INTERIM CONDENSED STATEMENT O_2

INTERIM CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 1,731,513	$ (61,504)	$ 1,705,755	$ (305,376)
Accrued interest			48,350	48,349
Non-cash items:
Gain on reversal of debt	(1,756,938)		(1,756,938)
Shares issued for services				210,000
Accounts payable and accrued liabilities				(3,024)
Change in operating assets and liabilities:
Due to related party			3,000	18,112
NET CASH FLOWS (USED IN) PROVIDED BY OPERATING ACTIVITIES			167	(31,939)
Net change in cash			167	(1,939)
CASH, (BANK OVERDRAFT), BEGINNING OF THE PERIOD			(103)	2,145
CASH, ENDING OF THE PERIOD	$ 64	$ 206	$ 64	$ 206

Statement Of Stockholder's Equi

Statement Of Stockholder's Equity - USD ($)	Total	Share Capital [Member]	Shares to be Issued [Member]	Additional Paid-in Capital [Member]	Deficit
Balance, shares at Aug. 31, 2016		7,612,618
Balance, amount at Aug. 31, 2016	$ (1,631,054)	$ 7,613	$ 476,191	$ 3,552,370	$ (5,667,228)
Shares to be issued	36,925		36,925
Net Income (Loss)	$ (192,570)				$ (192,570)
Balance, shares at Aug. 31, 2017		76,126,618
Balance, amount at Aug. 31, 2017	$ (1,786,699)	$ 7,613	$ 513,116	$ 3,552,370	$ (5,859,798)
Net Income (Loss)	$ (425,387)				$ (425,387)
Share issued for cash, shares		300,000
Share issued for cash, amount	$ 30,000	$ 300		29,700
Shares issued for services, shares		200,000
Shares issued for services, amount	$ 210,000	$ 200		209,800
Shares issued for prior period, shares		125,000
Shares issued for prior period, amount		$ 125	(476,191)	476,066
Debt forgiven	125,400			125,400
Reversal of shares to be issued		$ 125	$ (36,925)	$ 36,925
Balance, shares at Aug. 31, 2018		8,237,618
Balance, amount at Aug. 31, 2018	$ (1,846,686)	$ 8,238		$ 4,430,261	$ (6,285,185)
Net Income (Loss)	$ 1,705,755				$ 1,705,755
Balance, shares at Feb. 28, 2019		8,237,618
Balance, amount at Feb. 28, 2019	$ (140,931)	$ 8,238		$ 4,430,261	$ (4,579,430)

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	6 Months Ended
	Feb. 28, 2019
ORGANIZATION AND NATURE OF BUSINESS
Note 1 - ORGANIZATION AND NATURE OF BUSINESS	Indigenous Roots Corp. (the "Company") was incorporated in the State of Nevada on July 20, 2006 and is listed on the OTCQB under the symbol “IRCC”. The Company is currently seeking acquisitions in the renewable energy field. Basis of presentation The unaudited interim financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the financial statements included in the Annual Report on Form 10-K of the Company for the year ended August 31, 2018. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended February 28, 2019 are not necessarily indicative of the results that may be expected for the year ended August 31, 2019. For further information, these unaudited interim financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended August 31, 2018, included in the Company’s report on Form 10-K. Going concern The accompanying unaudited interim financial statements have been prepared assuming the Company will continue as a going concern. Continuation as a going concern is dependent upon the ability of the Company to obtain the necessary financing to meet obligations and pay its liabilities arising from normal business operations when they come due and ultimately upon its ability to achieve profitable operations. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. Management intends to obtain additional funding by borrowing funds from its directors and officers, issuing promissory notes and/or a private placement of common stock.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Feb. 28, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Basis of presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and are presented in US dollars. Accounting estimates The preparation of these financial statements in conformity with US GAAP 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. 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 from 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. Fair Value Measurements The book value of cash, accounts payable, due to related parties and convertible loan approximate their fair values due to the short term maturity of those instruments. The fair value hierarchy under US GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level I, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a nonrecurring basis during the periods ended February 28, 2019 and 2018.

CONVERTIBLE LOAN

CONVERTIBLE LOAN	6 Months Ended
	Feb. 28, 2019
CONVERTIBLE LOAN
Note 3 - CONVERTIBLE LOAN	On April 22, 2010, and as amended December 17, 2010, the Company entered into an agreement with Monaco Capital Inc. (“the Lender”), a majority shareholder at the time, for a principal amount of up to $5,000,000. The loan is unsecured and bears interest at the rate of 10% per annum calculated on the principal balance. The Company may at any time during the term of the loan prepay any sum up to the full amount of the loan and accrued interest then outstanding at any time for the sum plus an additional 10% of such amount. The loan (including accrued interest) is convertible into securities of the Company at a conversion price calculated as the mean volume weighted average price for the Company’s common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. At any time after the advancement date, if the Company has not paid the loan and accrued interest in full, the Lender may, by providing written notice to the Company, exercise its rights of conversion in respect of either a portion of the total outstanding amount of the loan as of that date into shares of the Company. The amounts advanced plus accrued interest are due one year following the date advanced. On February 28, 2019, the obligation to repay the debt reached the Statute of Limitations, the Company reversed the debt and the corresponding accrued interest of $1,756,938.

STOCKHOLDERS DEFICIT

STOCKHOLDERS DEFICIT	6 Months Ended
	Feb. 28, 2019
STOCKHOLDERS DEFICIT
Note 4 - STOCKHOLDERS' DEFICIT	Share Issuances There were no share issuances during the six-month period ended February 28, 2019.

RELATED PARTIES TRANSACTIONS

RELATED PARTIES TRANSACTIONS	6 Months Ended
	Feb. 28, 2019
RELATED PARTIES TRANSACTIONS
Note 5 - RELATED PARTIES TRANSACTIONS	As at February 28, 2019, the Company owed $53,960 (August 31, 2018 - $53,960) to a former President of the Company for cash advances made to the Company. As at February 28, 2019, the Company owed $24,323 (August 31, 2018 - $21,323) to the Controller of the Company for cash and services provided to the Company. During the six-month period ended February 28, 2019, the Company paid $3,000 (August 31, 2018 - $Nil) in accounting fees to the Controller of the Company.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Feb. 28, 2019
SUBSEQUENT EVENT
Note 6 - SUBSEQUENT EVENTS	On April 1, 2019, the Company acquired 100% of the issued and outstanding shares of Edison Power Company (‘Edison Power”), a Nevada corporation, in exchange for 6,849,239 common shares of the Company. 6,739,739 common shares were issued on April 1, 2019 and the remaining 109,500 common shares were issued on July 3, 2019. Edison Power owns a 100% interest in Edison Delaware 2 LLC, a Delaware registered limited liability corporation that owns and operates a 140 kW/h solar power generating facility in Georgetown, Delaware. The facility was completed in March, 2019 and began generating power in April, 2019.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Feb. 28, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
Basis of presentation	The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and are presented in US dollars.
Accounting estimates	The preparation of these financial statements in conformity with US GAAP 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. 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 from 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.
Fair Value Measurements	The book value of cash, accounts payable, due to related parties and convertible loan approximate their fair values due to the short term maturity of those instruments. The fair value hierarchy under US GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level I, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a nonrecurring basis during the periods ended February 28, 2019 and 2018.

ORGANIZATION AND NATURE OF BU_2

ORGANIZATION AND NATURE OF BUSINESS (Details Narratvie)	6 Months Ended
	Feb. 28, 2019
ORGANIZATION AND NATURE OF BUSINESS (Details Narratvie)
State of incorporation	Nevada
Date of Incorporation	Jul. 20, 2006

CONVERTIBLE LOAN (Details Narra

CONVERTIBLE LOAN (Details Narrative) - Monaco Capital Inc [Member] - USD ($)	1 Months Ended
	Dec. 17, 2010	Feb. 28, 2019
Principal Amount	$ 5,000,000
Interest rate	10.00%
Loan Prepayment description	The Company may at any time during the term of the loan prepay any sum up to the full amount of the loan and accrued interest then outstanding at any time for the sum plus an additional 10% of such amount.
Accrued interest		$ 1,756,938

RELATED PARTIES TRANSACTIONS (D

RELATED PARTIES TRANSACTIONS (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2019	Aug. 31, 2018
Due to related parties	$ 78,283	$ 75,283
Former President [Member]
Due to related parties	53,960	53,960
Controller [Member]
Due to related parties	24,323	21,323
Accounting fees	$ 3,000	$ 0

SUBSEQUENT EVENT (Details Narra

SUBSEQUENT EVENT (Details Narrative) - shares	Apr. 01, 2019	Jul. 03, 2019	Feb. 28, 2019	Aug. 31, 2018
Common shares issued			8,237,618	8,237,618
Subsequent Event [Member] | Edison Power [Member]
Exchange shares of common stock	6,849,239
Ownersip percentage	100.00%
Common shares issued	6,739,739	109,500