| Summary of Significant Accounting Policies | This
summary of significant accounting policies is presented to assist the reader in understanding the Company's
financial statements. The consolidated financial statements and notes are representations of the Company's management, which
is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles
and have been consistently applied in the preparation of the financial
statements. PRINCIPLES
OF CONSOLIDATION The
accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All
intercompany accounts and transactions have been eliminated in consolidation. USE
OF ESTIMATES The preparation of
financial statements in conformity with U.S. generally accepted accounting principles
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 more significant
estimates and assumptions made by management are valuation of equity instruments,
depreciation of property and equipment, and deferred tax asset valuation. Actual results could differ
from those estimates as the current economic environment has increased the degree of uncertainty inherent in these
estimates and assumptions. CASH
AND CASH EQUIVALENTS For
the Balance Sheets and Statements of Cash Flows, all highly liquid investments
with maturity of 90 days or less are considered to be cash equivalents. The Company had a cash balance of $50,798
and $143,423 as of December 31, 2015 and December 31, 2014, respectively. At times such cash balances may be in excess
of the FDIC limit of $250,000. PROPERTY
AND EQUIPMENT Property
and equipment is reviewed for recoverability when events or changes in circumstances indicate that its carrying value may exceed
future undiscounted cash inflows. As of December 31, 2015 and 2014, the Company had not identified any such impairment.
Repairs and maintenance are charged to operations when incurred and improvements and renewals are capitalized. Property
and equipment are stated at cost. Depreciation is calculated using the straight-line method for financial reporting
purposes and accelerated methods for tax purposes. Their estimated useful lives are as follows:
Office
Equipment: 5-7
Years
Laboratory
Equipment 5
Years
Vehicles 5
Years INTELLECTUAL
PROPERTY RIGHTS - PATENTS The
cost of patents acquired is capitalized and will be amortized over the shorter of the term of the patent life, 20 years, or the
remaining life of the underlying patents. The
Company evaluates recoverability of identifiable intangible assets whenever events or changes in circumstances indicate that intangible
assets carrying amount may not be recoverable. Such circumstances include, but are not limited to: (1) a significant decrease
in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an
accumulation of cost significantly in excess of the amount originally expected for the acquisition of an asset. The Company measures
the carrying amount of the assets against the estimated undiscounted future cash flows associated with it. There
was not any impairment loss for the year ended December 31, 2015. Should
the sum of the expected cash flows be less than the carrying amount of assets being evaluated, an impairment loss would be recognized. The
impairment loss would be calculated as the amount by which the carrying amount of the assets, exceed fair value. Estimated
amortization of intangible assets over the next five years is as follows:
December
31,
2016 $ 59,625
2017 59,625
2018 59,625
2019 59,625
2020 59,625
$ 298,125 EARNINGS
PER SHARE The
Company has adopted the Financial Accounting Standards Board (FASB) ASC Topic 260 regarding earnings / loss per share, which provides
for calculation of basic and diluted earnings / loss per share. Basic earnings / loss per
share includes no dilution and is computed by dividing net income / loss available to common shareholders by the weighted average
common shares outstanding for the period. Diluted earnings / loss per share reflect the potential dilution of securities that
could share in the earnings of an entity similar to fully diluted earnings / loss per share. Other
than the automatically convertible promissory notes held by Advanomics Corporation (Advanomics), a related party
(See Notes 4, 10 and 11) there were no potentially dilutive instruments outstanding during the interim period ended December 31,
2015 or the year ended December 31, 2014. INCOME
TAXES In
accordance with ASC 740 - Income Taxes, the provision for income taxes is computed using the asset and liability method. The liability
method measures deferred income taxes by applying enacted statutory rates in effect at the balance sheet date
to the differences between the tax basis of assets and liabilities and their reported amounts on the financial
statements. The resulting deferred tax assets or liabilities have been adjusted to reflect changes in tax laws as they
occur. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized. The
Company expects to recognize the financial statement benefit of an uncertain tax position only after considering the probability
that a tax authority would sustain the position in an examination. For tax positions meeting a "more-likely-than-not"
threshold, the amount to be recognized in the financial statements will be the benefit expected to be realized upon settlement
with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. As
of December 31, 2015, the Company had no uncertain tax positions. The Company recognizes interest and penalties, if
any, related to uncertain tax positions as general and administrative expenses. The Company currently has no federal
or state tax examinations nor has it had any federal or state examinations since its inception. To date, the Company
has not incurred any interest or tax penalties. For
federal tax purposes, the Companys 2012 through 2014 tax years remain open for examination by the tax authorities under
the normal three-year statute of limitations. FOREIGN
CURRENCY The
Company has operations in Canada, however the functional and reporting currency is in U.S. dollars. To come to this conclusion
the Company considered the direction of ASC section 830-10-55. Selling
Price and Market Financing
Expenses
Numerous
Intercompany Transactions Due
to the functional and reporting currency both being in U.S. dollars, ASC 830-10-45-17 states that a currency translation is not
necessary. However, a translation gain of $740 resulting from the operations of the Companys Canadian subsidiary
has been realized and recorded as Comprehensive Income. CONCENTRATION
OF CREDIT RISKS Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, notes
receivables, deposits, and trade receivables. The Company places its cash equivalents with high credit quality financial
institutions. As of December 31, 2015 and 2014 there were no trade receivables. FINANCIAL
INSTRUMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS The
Company applies the provisions of accounting guidance, FASB Topic ASC 825, Financial Instruments The
Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which
prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the
lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest
priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements). Level
1 Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting
entity has the ability to access at the measurement date. Level
2 Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be
observable for substantially the full term of the asset or liability. Level
3 Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity
for the asset or liability at the measurement date. The
carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial
assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. The
Company had no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial
assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement
is prepared. NOTES
PAYABLE Borrowings
are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized
cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement
over the period of the borrowings using the effective interest method. ACCOUNTING
FOR DERIVATIVES LIABILITIES The
Company evaluates stock options, stock warrants or other contracts to determine if those contracts or embedded components of those
contracts qualify as derivatives to be separately accounted for under the relevant sections of ASC Topic 815-40, Derivative
Instruments and Hedging: Contracts in Entitys Own Equity Upon
conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that
fair value is reclassified to equity. Financial instruments that are initially classified as equity that become subject
to reclassification under ASC Topic 815-40 are reclassified to a liability account at the fair value of the instrument on the
reclassification date. The Company determined that none of the Companys financial instruments meet the criteria
for derivative accounting as of December 31, 2015 and 2014. EQUITY
INSTRUMENTS ISSUED TO NON-EMPLOYEES FOR AQUIRING GOODS OR SERVICES Issuances
of the Companys common stock or warrants for acquiring goods or services are measured at the fair value of the consideration
received or the fair value of the equity instruments issued, whichever is more reliably measurable. The measurement
date for the fair value of the equity instruments issued to consultants or vendors is determined at the earlier of (i) the date
at which a commitment for performance to earn the equity instruments is reached (a performance commitment which
would include a penalty considered to be of a magnitude that is a sufficiently large disincentive for nonperformance) or (ii)
the date at which performance is complete. When it is appropriate for the Company to recognize the cost of a transaction
during financial reporting periods prior to the measurement date, for purposes of recognition of costs during those periods, the
equity instrument is measured at the then-current fair values at each of those interim financial reporting dates. NONCASH
EQUITY TRANSACTIONS Shares
of equity instruments issued for noncash consideration are recorded at the estimated fair market value of the consideration granted
based on the estimated market value of the equity instrument, or at the estimated value of the goods or services received whichever
is more readily determinable. RELATED
PARTIES A
party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls,
is controlled by, or is under common control with the Company. Related parties also include principal owners of the
Company, its management, members of the immediate families
of principal owners of the Company and its management and other parties with which the Company may deal if one party controls
or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties
might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management
or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can
significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing
its own separate interests is also a related party. GENERAL
AND ADMINISTRATIVE EXPENSES General
and administrative expenses consisted of professional service fees, rent and utility expenses, meals, travel and entertainment
expenses, and other general and administrative overhead costs. Expenses are recognized when incurred. BASIC
AND DILUTED NET GAIN (LOSS) PER SHARE The
Company computes loss per share in accordance with ASC 260, Earnings per Share. Basic
net income (loss) per share is calculated by dividing net (loss) by the weighted-average common shares outstanding. Diluted
net income per share is calculated by dividing net income by the weighted-average common shares outstanding during the period
using the treasury stock method or the two-class method, whichever is more dilutive. As the Company incurred net losses
for the year ended December 31, 2015 no potentially dilutive securities were included in the calculation of diluted earnings per
share as the impact would have been anti-dilutive. Therefore,
basic and dilutive net (loss) per share were the same as of December 31, 2015 and 2014. REVENUE
RECOGNITION The
Company is focused on the research, development and commercialization of drugs for the treatment of various forms of cancer. The
Company does not expect to generate revenues until clinical trials of its proposed products are completed. Once completed,
revenues would be recognized as its technology is licensed or sold or its products become marketable. IMPACT
OF NEW ACCOUNTING STANDARDS In
June 2014 FASB issued Accounting Standards Update (ASU), ASU 2014-10 regarding development stage entities. The ASU
removes the definition of development stage entity, as was previously defined under generally accepted accounting principles in
the United States (U.S. GAAP), from the accounting standards codification, thereby removing the financial reporting distinction
between development stage entities and other reporting entities from U.S. GAAP. In
addition, the ASU eliminates the requirements for development stage entities to (i) present inception-to-date information in the
statement of income, cash flow and stockholders' equity, (ii) label the financial statements as those of a development stage entity,
(iii) disclose a description of the development stage activities in which the entity is engaged, and (iv) disclose in the first
year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The
Company has chosen to adopt the ASU early for the Companys financial statements as of September 30, 2014. The
adoption of this pronouncement impacted the Company by eliminating the requirement to report inception to date financial information
previously required. In
May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the existing accounting standards
for revenue recognition. ASU
2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products
are transferred to customers. ASU 2014-09 will be effective for the Company beginning in its first quarter of 2017. The
new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect
recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard
on its financial statements. In
August 2014, FASB issued guidance that requires management to evaluate whether there are conditions or events that raise substantial
doubt about an entity's ability to continue as a going concern. If such conditions or events exist, disclosures are
required that enable users of the financial statements to understand the nature of the conditions or events, management's evaluation
of the circumstances and management's plans to mitigate the conditions or events that raise substantial doubt about the entity's
ability to continue as a going concern. The Company will be required to perform an annual assessment of its ability
to continue as a going concern when this standard becomes effective on January 1, 2017. The adoption of this guidance
is not expected to impact our financial position, results of operations or cash flows. GOING
CONCERN The
accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates,
among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The
Company had an accumulated deficit of approximately $9,081,267 and $7,428,359 at December 31, 2015 and 2014, respectively, had
a net loss of approximately, $1,652,908 for the year ended December 31, 2015 and a net loss of $1,934,210 for the fiscal year
ended December 31, 2014, and negative Shareholders Equity of approximately $597,045 and $387,580 at December 31, 2015 and
2014, respectively. These
matters, among others, raise substantial doubt about our ability to continue as a going concern. While the Companys
cash position may not be significant enough to support the Companys daily operations, Management intends to raise additional
funds by way of equity and/or debt financing to fund operations. DIRECTOR
AND OFFICER COMPENSATION Through
the period ended December 31, 2015, the Company issued 500,000 shares of Series B Preferred Stock to an Officer
valued at $50,000 or $0.10 per share and paid $20,000 in cash to another Officer. For the period ended December 31,
2014, a Director received $15,000 in cash compensation. LEGAL
FEES During
the years ended December 31, 2015 and 2014, legal fees were incurred largely as a result of services provided to the Company to
assist with its regulatory requirements with the Securities and Exchange Commission and litigation in which it was involved. DATE
OF MANAGEMENTS REVIEW Subsequent
events have been evaluated through March 21, 2016, which is the date the Financial Statements were available to be issued. |
