Cannonau (CNNC) 10-Q 24 May 21 2021 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2021	May 24, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	333-145876
Entity Registrant Name	Cannonau Corp.
Entity Central Index Key	0001410187
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	937 Old Seneca Turnpike Road
Entity Address, City or Town	Skaneateles
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	13252-9318
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		241,377,178

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Assets, Current
Cash and Cash Equivalents, at Carrying Value	$ 948	$ 164
Inventory	19,174	19,174
Total current assets	20,122	19,338
TOTAL ASSETS	20,122	19,338
Current Liabilities
Accounts payable and accrued liabilities	18,928	17,326
Due to related party	183,862	150,833
Total current liabilities	202,790	168,159
Stockholders' Equity
Preferred stock authorized 10,000,000 shares, par value $.001, issued and oustanding 0 shares.
Common stock authorized 290,000,000 shares, par value $.001, issued and oustanding 241,377,179 shares as of March 31, 2021 and December 31, 2020	241,377	241,377
Common stock issuable	27,000	27,000
Additional paid-in capital	3,136,382	3,136,382
Accumulated deficit	(3,587,427)	(3,553,580)
Total stockholders' equity	(182,668)	(148,821)
Total liabilities and stockholders' equity	$ 20,122	$ 19,338

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
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	241,377,178	241,377,178
Common Stock, shares outstanding	241,377,178	241,377,178

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenues	$ 30	$ 748
Cost of Sales	65	193
Gross Profit	(35)	555
Operating expenses:
General and administrative	15,064	2,268
Compensation	15,466	16,151
Professional fees	3,282	3,200
Total operating expenses	33,812	21,619
Other expenses (income)
Net Loss	$ (33,847)	$ (21,064)
Net loss per share (basic and diluted)	$ 0	$ (0.12)
Weighted average shares outstanding	241,377,179	182,735

Consolidated Statement of Stock

Consolidated Statement of Stockholders Deficit - USD ($)	Common Stock	Additional Paid-In Capital	Common Stock Issuable	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2019	$ 183	$ 3,361,585	$ 27,000	$ (3,467,047)	$ (78,279)
Beginning Balance, Shares at Dec. 31, 2019	182,734
Net loss				(21,064)	(21,064)
Ending Balance, Amount at Mar. 31, 2020	$ 183	3,361,585	27,000	(3,445,983)	(57,215)
Enidng Balance, shares at Mar. 31, 2020	182,734
Beginning Balance, Amount at Dec. 31, 2020	$ 241,377	3,136,382	27,000	(3,553,580)	(148,821)
Beginning Balance, Shares at Dec. 31, 2020	241,377,178
Net loss				(33,847)	(33,847)
Ending Balance, Amount at Mar. 31, 2021	$ 241,377	$ 3,136,382	$ 27,000	$ (3,587,427)	$ (182,668)
Enidng Balance, shares at Mar. 31, 2021	241,377,178

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities:
Net loss	$ (33,847)	$ (21,064)
Adjustments to reconcile net loss Changes in operatig assets and liabiities
Inventory
Accounts payable and accrued liabilities	1,602	2,070
Net Cash used in Operating Activities	(32,245)	(18,994)
Cash Flows From financing Activities:
Proceeds from related party	33,029	19,085
Repurchase of common stock
Cash proceeds from common stocks
Net Cash Provided by Financing Activities	33,029	19,085
Increase (decrease) in cash	784	91
Cash, beginning of period	164	70
Cash, end of period	948	161
Supplemental Disclosures:
Cash paid for interest
Cash paid for Taxes
Non-Cash financing activities
Shares issued to convert amounts due to related party

Formation and Business of the C

Formation and Business of the Compnay	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Formation and Business of the Compnay	NOTE 1. FORMATION AND BUSINESS OF THE COMPANY Business Description Cannonau Corp. (the “Company”) was incorporated under the laws of the State of Nevada on April 3, 2007 as Pacific Blue Energy Corp 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 March 31, 2021, the Company had minimal revenues and an accumulated deficit of $3,587,427. 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	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Basis of Presentation and Principles of Consolidation 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) Use of Estimates 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) Interim Financial Statements Report on Form 10-K. Operating results for the three months ended March 31, 2020 and 2021, may not necessarily be indicative of results to be expected for any other interim period or for the full year. d) Cash and Cash Equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. e) 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 control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. The Company does not have material contract assets or liabilities that fall under the scope of ASC 606. f) Basic and Diluted Net Loss Per Share The Company computes net loss per share in accordance with ASC 260, Earnings Per Share, g) Financial Instruments ASC 820, “Fair Value Measurements”, Level 1 Level 2 - Level 3 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. h) Inventory 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. i) Reclassification Certain prior period amounts have been reclassified to conform to current presentation.

Stockholders Equity

Stockholders Equity	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Stockholders Equity	NOTE 3. STOHOLDERS’ DEFICIT There are no stock issuance nor any transactions affecting outstanding stocks or paid in capital during the first quarter ending March 31, 2021.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 4 RELATED PARTY TRANSACTION During the first quarter ending March 31,2021 the company received a total of $33,031 from the legal custodian of the company for operating expenses and is treated as advances and short-term loans. As of March 31, 2021, and December 31, 2020, the total accumulated loans and advances were $183,862 and 150,833 respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 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	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	NOTE 7. SUBSEQUENT EVENTS The company has evaluated subsequent events for recognition and disclosure through May 23, 22021 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)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Priniciples of Consolidation	a) Basis of Presentation and Principles of Consolidation 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)Use of Estimates	b) Use of Estimates 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)Interim Financial Statements	c) Interim Financial Statements Report on Form 10-K. Operating results for the three months ended March 31, 2020 and 2021, may not necessarily be indicative of results to be expected for any other interim period or for the full year.
d)Cash and Cash Equivalents	d) Cash and Cash Equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.
e)Revenue Recognition	e) 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 control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. The Company does not have material contract assets or liabilities that fall under the scope of ASC 606.
f)Basic and Diluted Net Loss Per Share	f) Basic and Diluted Net Loss Per Share The Company computes net loss per share in accordance with ASC 260, Earnings Per Share,
g)Financial Instruments	g) Financial Instruments ASC 820, “Fair Value Measurements”, Level 1 Level 2 - Level 3 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.
h)Inventory	h) Inventory 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.
i)Reclassification	i) Reclassification Certain prior period amounts have been reclassified to conform to current presentation.

Formation and Business of the_2

Formation and Business of the Compnay (Details Narrative) - USD ($)	Apr. 05, 2010	Mar. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Acquisition of investment, amount	$ 300,000
Acquisition of investment, shares	1,000,000
Accumulated deficit		$ (3,587,427)	$ (3,553,580)

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Related Party Transactions [Abstract]
Proceeds from related party	$ 33,031
Due to related party	$ 183,862	$ 150,833

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards. 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.