Cannonau (CNNC) 10-K 14 Apr 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Apr. 14, 2021	May 12, 2020
Document And Entity Information
Entity Registrant Name	CANNONAU CORP.
Entity Central Index Key	0001410187
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Shell Business	false
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Interactive Data Current	Yes
Is Entity Emerging Growth Company?	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Public Float			$ 12,721
Entity Common Stock, Shares Outstanding		1,827,350
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current Assets
Cash	$ 164	$ 70
Inventory	19,174	11,044
Total current assets	19,338	11,114
Total assets	19,338	11,114
Current Liabilities
Accounts payable and accrued liabilities	17,327	3,291
Due to related party	150,833	86,102
Total current liabilities	168,160	89,393
Stockholders' Equity
Preferred stock- authorized 10,000,000 shares, par value $0.001, issued and outstanding nil shares
Common stock- authorized 290,000,000 shares, par value $0.001, issued and outstanding 241,377,179 and 182,735 shares as o December 31, 2020 and 2019	241,377	183
Common stock issuable	27,000	27,000
Additional paid-in capital	3,136,382	3,361,585
Accumulated deficit	(3,553,581)	(3,467,047)
Total stockholders' equity	(148,822)	(78,279)
Total liabilities and stockholders' equity	$ 19,338	$ 11,114

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred Stock, par or stated value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	290,000,000	290,000,000
Common Stock, shares issued	241,377,179	182,735
Common Stock, shares outstanding	241,377,179	182,735

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenues	$ 1,835
Cost of sales	1,580
Gross Profit	255
Operating expenses:
General and administrative	33,232	14,241
Compensation	41,380	37,260
Professional fees	12,176	22,778
Total operating expenses	86,788	74,279
Loss from operations	(86,533)	(74,279)
Other expense
Other expense (income)
Net loss	$ (86,533)	$ (74,279)
Net loss per share (basic and diluted)		$ (1.48)
Weighted average shares outstanding	241,377,179	50,049

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTVITIES:
Net loss	$ (86,533)	$ (74,279)
Changes in operating assets and liabilities
Inventory	(8,130)	(11,044)
Accounts payable and accrued liabilities	14,036	(3,709)
Net Cash Used in Operating Activities	(80,627)	(89,032)
CASH FLOWS FROM INVESTING ACTVITIES:
Purchase of equipment
Net Cash Provided by (Used in) Investing Activities
CASH FLOWS FROM FINANCING ACTVITIES:
Proceeds from related party	70,731	91,102
Repurchase of common stock	(6,000)	(2,000)
Cash proceeds from common stocks	15,991
Net Cash Provided by Financing Activities	80,722	89,102
Increase (decrease) in cash	95	70
Cash, beginning of year	70
Cash, end of year	164	70
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest
Cash paid for taxes
SUPPLEMENTAL NON-CASH FINANCING ACTIVITIES
Shares issued to convert amounts due related party		$ 5,000

Consolidated Statements of Stoc

Consolidated Statements of Stockholders Equity (Deficit) - USD ($)	Common Stock	Additional Paid-In Capital	Common Stock Issuable	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2018	$ 140	$ 3,358,628	$ 27,000	$ (3,392,768)	$ (7,000)
Beginning Balance, Shares at Dec. 31, 2018	140,235
Conversion of debt, Amount	$ 50	4,950			5,000
Conversion of debt, shares	50,000
Repurchase and retirement of shares, Amount	$ (7)	(1,993)			(2,000)
Repurchase and retirement of shares, Shares	(7,500)
Net loss				(74,279)	(74,279)
Ending Balance, Amount at Dec. 31, 2019	$ 183	3,361,585	27,000	(3,467,047)	(78,279)
Enidng Balance, shares at Dec. 31, 2019	182,735
Conversion of debt, Amount	$ 241,194	(225,203)			15,991
Conversion of debt, shares	241,194,444
Net loss				(86,533)	(86,533)
Ending Balance, Amount at Dec. 31, 2020	$ 241,377	$ 3,136,382	$ 27,000	$ (3,553,581)	$ (148,822)
Enidng Balance, shares at Dec. 31, 2020	241,377,179

Nature of Operations and Contin

Nature of Operations and Continuance of Business	12 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Continuance of Business	1. Nature of Operations and Continuance of Business Cannonau Corp. (the “Company”) was incorporated under the laws of the State of Nevada on April 3, 2007 as Pacific Blue Energy Corp. On April 5, 2010, the Company acquired a 100% interest of Ship Ahoy LLC, a limited liability company in Arizona, in exchange for $300,000 and 1,000,000 common shares of the Company. This investment was subsequently abandoned by the Company. The Company is currently developing CBD based products. On August 22, 2019, the Company changed its' name to Cannonau Corp. to reflect its' focus on its new CBD based products. Going Concern These consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated no revenues to date and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future.As of December 31, 2020, the Company had no revenues and an accumulated deficit of $3,553,581. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's future business. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern for a period of one year from the issuance of these consolidated financial statements. These consolidated 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies a) These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are expressed in US dollars. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Ship Ahoy LLC. All intercompany transactions have been eliminated. The Company’s fiscal year-end is December 31. b) The preparation of financial statements in conformity with generally accepted accounting principles in the United States 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 the recoverability of its long-lived assets, stock-based compensation, 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 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) The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As of September 30, 2020, and December 31, 2019, the Company had no cash equivalents. d)Revenue Recognition During the year ended December 31, 2020 our revenue recognition policy was in accordance with ASC 605, “Revenue Recognition”, which requires the recognition of sales when there is evidence of a sales agreement, the delivery of goods has occurred, the sales price is fixed or determined, and the collectability of revenue is reasonably assured. On January 1, 2019, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers” and all the related amendments, which are also codified into ASC 606. The adoption of this guidance did not have a material effect on the Company’s financial position, results of operations or cash flows. The Company does not have material contract assets or liabilities that fall under the scope of ASC 606. e) The Company computes net loss per share in accordance with ASC 260, Earnings Per Share, f) ASC 820, “Fair Value Measurements”, 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 Company’s financial instruments consist principally of cash, accounts payable, and amounts due to related parties. Pursuant to ASC 820, 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. g) Inventories, which are comprised of finished goods, are stated at the lower of cost (based on the first in, first out method) or market. h) Certain prior period amounts have been reclassified to conform to current presentation.

Stockholders Equity

Stockholders Equity	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
Stockholders Equity	3. Stockholders’ Deficit On May 21, 2019, the Company issued 100,000,000 shares of common stock to settle $5,000 in debt with a related party. On November 5, 2019, the Company purchased and retired into treasury 15,000,000 Common Shares from Luniel De Beer for $2,000. On January 23, 2020, the Company executed a 2,000 to 1 reverse stock split. All share and per share information has been retroactively adjusted to reflect this reverse stock split. On February 25, 2020, convertible notes to related parties of $3,260 were converted into 9,055,556 shares of common stock. On March 20, 2020, convertible notes of $4,370 were converted into 12,138,888 shares of common stock. On May 29, 2020, convertible notes to related parties of $1,142 were converted into 30,000,000 shares of common stock. On July 6, 2020, convertible notes to related parties of $6,858 were converted into 180,473,684 shares of common stock. On July 21, 2020, convertible notes to related parties of $362 were converted into 9,526,316 shares of common stock. On October 2020, the Company issued 10,597,222 to the legal custodian in a private placement for $5,299.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	4. Income Taxes The Company has a net operating loss carried forward of approximately $3,553,581 available to offset taxable income in future years which commence expiring in fiscal 2027. The Company is subject to United States federal and state income taxes at an approximate rate of 21%. As of December 31, 2020, and 2019, the Company had no uncertain tax positions. The tax effects of temporary differences that give rise to the Company’s net deferred tax liability as of December 31, 2020 and 2019 are as follows: The significant components of deferred income tax assets and liabilities at December 31, 2020 and 2019 are as follows: 2020 2019 Net operating loss carried forward 746,200 728,500 Valuation allowance (746,200) (728,500) Net deferred income tax asset – –

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	5 . Related Party Transaction On February 18, 2020, the Company executed a promissory note of $1,500 with the legal custodian of the Company. The note is due August 18, 2020. If the Company defaults on the due date, the promissory note shall be convertible into shares of common stock at the conversion price of $.00036 per share. On February 25, 2020, the Company executed a promissory note of $1,760 with the legal custodian of the Company. The note is due August 25, 2020. If the Company defaults on the due date, the promissory note shall be convertible into shares of common stock at the conversion price of $.00036 per share. On March 13, 2020, the Company executed a promissory note of $2,610 with the legal custodian of the Company. The note is due September 13, 2020. If the Company defaults on the due date, the promissory note shall be convertible into shares of common stock at the conversion price of $.00036 per share. On March 20, 2020, the Company executed a promissory note of $1,760 with the legal custodian of the Company. The note is due September 25, 2020. If the Company defaults on the due date, the promissory note shall be convertible into shares of common stock at the conversion price of $.00036 per share. During the year ended December 31, 2020, the legal custodian additionally advanced the Company $27,117 to pay operating expenses. These advances are non-interest bearing and payable upon demand, the Company repaid $6,000 of advances to the legal custodian of the Company. On July 2, 2020, the Company executed a promissory note of $3,000 with the Chief Executive Officer of the Company. The note is due August 18, 2020. If the Company defaults on the due date, the promissory note shall be convertible into shares of common stock at the conversion price of $.00038 per share. During the year ended December 31, 2020, the Chief Executive Officer additionally advanced the Company $33,813 to pay operating expenses. These advances are non-interest bearing and payable upon demand. At December 31, 2020, the Company owed its legal custodian $109,018 and its Chief Executive Officer $26,651.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”). Corporate taxpayers may carryback net operating losses (NOLs) originating between 2018 and 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act. In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. The enactment of the CARES Act did not result in any material adjustments to our income tax provision.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	7. Subsequent Events The company has evaluated subsequent events for recognition and disclosure through April 13, 2021 which is the date the financial statements were available to be issued. No other matters were identified affecting the accompanying financial statements and related disclosures.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Basis of presentation and principles of consolidation	a) These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are expressed in US dollars. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Ship Ahoy LLC. All intercompany transactions have been eliminated. The Company’s fiscal year-end is December 31.
Use of Estimates	b) The preparation of financial statements in conformity with generally accepted accounting principles in the United States 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 the recoverability of its long-lived assets, stock-based compensation, 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 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) The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As of September 30, 2020, and December 31, 2019, the Company had no cash equivalents.
Revenue Recognition	d)Revenue Recognition During the year ended December 31, 2020 our revenue recognition policy was in accordance with ASC 605, “Revenue Recognition”, which requires the recognition of sales when there is evidence of a sales agreement, the delivery of goods has occurred, the sales price is fixed or determined, and the collectability of revenue is reasonably assured. On January 1, 2019, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers” and all the related amendments, which are also codified into ASC 606. The adoption of this guidance did not have a material effect on the Company’s financial position, results of operations or cash flows. The Company does not have material contract assets or liabilities that fall under the scope of ASC 606.
Basic and Diluted Net Loss Per Share	e) The Company computes net loss per share in accordance with ASC 260, Earnings Per Share,
Financial Instruments	f) ASC 820, “Fair Value Measurements”, 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 Company’s financial instruments consist principally of cash, accounts payable, and amounts due to related parties. Pursuant to ASC 820, 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.
Inventory	g) Inventories, which are comprised of finished goods, are stated at the lower of cost (based on the first in, first out method) or market. Inventories consist of CBD based products.
Reclassification	h) Certain prior period amounts have been reclassified to conform to current presentation.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Deferred income tax assets and liablities	2020 2019 Net operating loss carried forward 746,200 728,500 Valuation allowance (746,200) (728,500) Net deferred income tax asset – –

Nature of Operations and Cont_2

Nature of Operations and Continuance of Business (Details) - USD ($)	Apr. 05, 2010	Dec. 31, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Acquisition of investment, amount	$ 300,000
Acquisition of investment, shares	1,000,000
Accumulated deficit		$ (3,553,581)	$ (3,467,047)

Stockholders_ Deficit (Details

Stockholders’ Deficit (Details Narrative) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended	5 Months Ended	6 Months Ended	7 Months Ended	10 Months Ended	12 Months Ended		53 Months Ended	58 Months Ended
	Jan. 23, 2020	Feb. 25, 2020	Mar. 20, 2020	May 29, 2020	Jul. 06, 2020	Jul. 21, 2020	Oct. 20, 2020	Dec. 31, 2020	Dec. 31, 2019	May 21, 2019	Nov. 05, 2019
Conversion of related party debt, amount								$ 15,991	$ 5,000
Common Stock [Member]
Reverse stock split	2000 to 1
Common Stock [Member]
Conversion of related party debt, shares		9,055,556	12,138,888	30,000,000	180,473,684	9,526,316				100,000,000
Conversion of related party debt, amount		$ 3,260	$ 4,370	$ 1,142	$ 6,858	$ 362				$ 5,000
Repurchase and retirement of shares, shares											15,000,000
Repurchase and retirement of shares, amount											$ 2,000
Private placement, shares							10,597,222
Private placement, amount							$ 5,299

Income Taxes - Deferred income

Income Taxes - Deferred income tax assets and liablities (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Net operating loss carried forward	$ 746,200	$ 728,500
Valuation allowance	(746,200)	(728,500)
Net deferred income tax asset

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	12 Months Ended
	Dec. 31, 2019USD ($)
Income Tax Disclosure [Abstract]
Net operating loss carried forward	$ 3,553,581
Statutory Rate	21.00%

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Proceeds from related party	$ 70,731	$ 91,102
Due to related party	$ 150,833	$ 86,102
Note 1 [Member]
Date of note	Feb. 18, 2020
Promissory note	$ 1,500
Due date of note	Aug. 18, 2020
Conversion price	$ .00036
Note 2 [Member]
Date of note	Feb. 25, 2020
Promissory note	$ 1,760
Due date of note	Aug. 25, 2020
Conversion price	$ .00036
Note 3 [Member]
Date of note	Mar. 13, 2020
Promissory note	$ 2,610
Due date of note	Sep. 13, 2020
Conversion price	$ .00036
Note 4 [Member]
Date of note	Mar. 20, 2020
Promissory note	$ 1,760
Due date of note	Sep. 25, 2020
Conversion price	$ .00036
Note 5 [Member]
Date of note	Jul. 2, 2020
Promissory note	$ 3,000
Due date of note	Aug. 18, 2020
Conversion price	$ 0.00038
CEO [Member]
Proceeds from related party	$ 33,813
Due to related party	26,651
Legal Custodian [Member]
Proceeds from related party	27,117
Repayment of related party	6,000
Due to related party	$ 109,018