Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Aug. 31, 2015 | Jan. 22, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | MICROCHANNEL TECHNOLOGIES CORP | |
Entity Central Index Key | 1,413,488 | |
Document Type | 10-K | |
Document Period End Date | Aug. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Period Focus | FY | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 256,725 | |
Entity Common Stock, Shares Outstanding | 53,864,600 | |
Document Fiscal Year Focus | 2,015 |
Statement - BALANCE SHEETS
Statement - BALANCE SHEETS - USD ($) | Aug. 31, 2015 | Aug. 31, 2014 |
Current Assets: | ||
Cash | $ 5,850 | $ 51,744 |
Total Current Assets | 5,850 | 51,744 |
TOTAL ASSETS | 5,850 | 51,744 |
Current Liabilities: | ||
Accounts Payable | 615 | 3,315 |
Accrued Interest | 8,041 | 3,141 |
Note Payable to Shareholder | 70,000 | 70,000 |
Total Current Liabilities | 78,656 | 76,456 |
Total Liabilities | 78,656 | 76,456 |
Stockholder's Deficit | ||
Common Stock, par value $0.0001, 300,000,000 shares Authorized, 53,864,600 shares Issued and Outstanding at August 31, 2015 and August 31, 2014 | 5,386 | 5,386 |
Additional Paid-In Capital | 556,711 | 556,711 |
Accumulated Deficit | (634,903) | (586,809) |
Total Stockholder's Deficit | (72,806) | (24,712) |
TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT | $ 5,850 | $ 51,744 |
Statement - BALANCE SHEETS (Par
Statement - BALANCE SHEETS (Parenthetical) - $ / shares | Aug. 31, 2015 | Aug. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 53,864,600 | 53,864,600 |
Common stock, shares outstanding | 53,864,600 | 53,864,600 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Income Statement [Abstract] | ||
Revenues | ||
Expenses: | ||
Director and Officer fees | 6,750 | 9,000 |
Professional fees | 35,829 | 31,424 |
General and administrative expense | 615 | 1,707 |
Total Operating Expenses | 43,194 | 42,131 |
Operating Loss | (43,194) | (42,131) |
Other Expense | ||
Interest expense | 4,900 | 3,141 |
Net Loss | $ (48,094) | $ (45,272) |
Basic & Diluted Loss per Common Share | $ 0 | $ 0 |
Weighted Average Common Shares Outstanding | 53,864,600 | 53,864,600 |
STATEMENT OF STOCKHOLDERS DEFIC
STATEMENT OF STOCKHOLDERS DEFICIT - USD ($) | Common Stock | Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Aug. 31, 2013 | 53,864,600 | |||
Beginning Balance, Amount at Aug. 31, 2013 | $ 5,386 | $ 556,711 | $ (541,537) | $ 20,560 |
Net loss | (45,272) | (45,272) | ||
Ending Balance, Shares at Aug. 31, 2014 | 53,864,600 | |||
Ending Balance, Amount at Aug. 31, 2014 | $ 5,386 | 556,711 | (586,809) | (24,712) |
Net loss | (48,094) | (48,094) | ||
Ending Balance, Shares at Aug. 31, 2015 | 53,864,600 | |||
Ending Balance, Amount at Aug. 31, 2015 | $ 5,386 | $ 556,711 | $ (634,903) | $ (72,806) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Loss | $ (48,094) | $ (45,272) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Prepaid Expenses | 241 | |
Accounts Payable | (2,700) | 2,499 |
Accrued Interest | 4,900 | 3,141 |
Net Cash Used in Operating Activities | (45,894) | (39,391) |
CASH FLOWS FROM FINANCING | ||
Proceeds from Note Payable | 70,000 | |
Net Cash Provided by Financing Activities | 70,000 | |
Net (Decrease) Increase in Cash | (45,894) | 30,609 |
Cash at Beginning of Period | 51,744 | 21,135 |
Cash at End of Period | 5,850 | 51,744 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid during the year for: Interest | ||
Cash paid during the year for: Franchise Taxes |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Aug. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | Note 1. Organization and Description of Business MicroChannel Technologies Corporation (the “Company”) was formed as a wholly-owned subsidiary of New Energy Technologies, Inc. (“New Energy”). New Energy spun off its issued and outstanding shares to New Energy’s shareholders on December 18, 2007. The Company was incorporated under the name MultiChannel Technologies Corporation on February 28, 2005 in the State of Nevada, and changed to its existing name on April 4, 2005. The Company is not currently engaged in any business operations. It is, however, in the process of attempting to identify, locate, and if warranted, acquire new commercial opportunities. |
Going Concern Uncertainties
Going Concern Uncertainties | 12 Months Ended |
Aug. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Uncertainties | Note 2. Going Concern Uncertainties The Company has not generated any revenues, has an accumulated deficit of $634,903 as of August 31, 2015, and does not have positive cash flows from operating activities. The Company expects to incur additional losses as it continues to identify and develop new commercial opportunities. The Company will be subject to the risks, uncertainties, and difficulties frequently encountered by early-stage companies. The Company may not be able to successfully address any or all of these risks and uncertainties. Failure to adequately do so could cause the Company’s business, results of operations, and financial condition to suffer. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance date of these financial statements. The Company’s ability to continue as a going concern is an issue due to its net losses and negative cash flows from operations, and its need for additional financing to fund future operations. Management plans to identify commercial opportunities and to obtain necessary funding from outside sources. There can be no assurance that such funds, if available, can be obtained on terms reasonable to the Company. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that may result from the outcome of this uncertainty. Based on the Company’s current level of expenditures, management believes that cash on hand is adequate to fund operations for at least the next twelve months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with U.S. GAAP. Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from the estimates as additional information becomes known Cash and Cash Equivalents Cash and cash equivalents includes highly liquid investments with original maturities of three months or less. On occasion, the Company has amounts deposited with financial institutions in excess of federally insured limits. Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The carrying value of cash and cash equivalents and accounts payable approximate their fair value because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. Income Taxes Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized. The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of August 31, 2015 and 2014, the Company has not recorded any unrecognized tax benefits. See Note 6. Income Taxes. Segment Reporting The Company’s business currently operates in one segment. Net Loss per Share The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the year. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method. See Note 4. Net Loss Per Share. Recently Issued Accounting Pronouncements The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable to the Company, it has not identified any standards that it believes merit further discussion. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Aug. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 4. Net Loss Per Share During the years ended August 31, 2015 and 2014, the Company recorded a net loss. The Company does not have any potentially dilutive securities outstanding. Therefore, basic and diluted net loss per share is the same for those periods. |
Note Payable to Shareholder
Note Payable to Shareholder | 12 Months Ended |
Aug. 31, 2015 | |
Debt Disclosure [Abstract] | |
Note Payable to Shareholder | Note 5. Note Payable to Shareholder On January 9, 2014, the Company issued a $70,000 note payable to a shareholder of the Company. The note payable bears interest at an annual rate of 7%. Principal and accrued interest on the note payable were due on January 9, 2016, with a default annual rate of 10% interest after that date. The outstanding balance of principal and accrued interest may be prepaid without penalty. During the years ended August 31, 2015 and August 31, 2014, the Company recorded an interest expense of $4,900 and $3,141, respectively, related to the note payable. Accrued interest at August 31, 2015 related to the note payable was $8,041. At August 31, 2015, the original principal balance of $70,000 on the note payable remained outstanding. The note payable was note repaid on January 9, 2016 and is thus in default as of the date of this filing. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6. Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets at August 31, 2015 and 2014 are as follows: Year Ended August 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 165,470 $ 147,538 Capitalized research and development 4,157 5,737 Research and development credit carry forward 1,963 1,963 Total deferred tax assets 171,590 155,238 Less: valuation allowance (171,590 ) (155,238 ) Net deferred tax asset $ — $ — The net increase in the valuation allowance for deferred tax assets was $16,352 and $15,392 for the years ended August 31, 2015 and 2014. The Company evaluates its valuation allowance on an annual basis based on projected future operations. When circumstances change and this causes a change in management’s judgment about the realizability of deferred tax assets, the impact of the change on the valuation allowance is reflected in current operations. For federal income tax purposes, the Company has net U.S. operating loss carry forwards at August 31, 2015 available to offset future federal taxable income, if any, of $486,676, which will fully expire by the fiscal year ended August 31, 2035. Accordingly, there is no current tax expense for the years ended August 31, 2015 and 2014. In addition, the Company has research and development tax credit carry forwards of $1,963 at August 31, 2015, which are available to offset federal income taxes and fully expire by August 31, 2028. The utilization of the tax net operating loss carry forwards may be limited due to ownership changes that have occurred as a result of sales of common stock. The effects of state income taxes were insignificant for the years ended August 31, 2015 and 2014. The following is a reconciliation between expected income tax benefit and actual, using the applicable statutory income tax rate of 34% for the years ended August 31, 2015 and 2014: Year Ended August 31, 2015 2014 Income tax benefit at statutory rate $ 16,352 $ 15,392 Change in valuation allowance (16,352 ) (15,392 ) $ — $ — The fiscal years 2012 through 2015 remain open to examination by federal authorities and other jurisdictions in which the Company operates. On December 22, 2017, the Tax Cuts and Jobs Act was enacted. This law substantially amended the Internal Revenue Code, including reducing the U.S. corporate tax rates. Upon enactment, the Company’s deferred tax asset and related valuation allowance decreased by $64,857 to $106,733. As the deferred tax asset is fully allowed for, this change in rates had no impact on the Company’s financial position or results of operations. |
Summary of Significant Accoun13
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with U.S. GAAP. |
Estimates | Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates. Actual results and outcomes may differ materially from the estimates as additional information becomes known |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes highly liquid investments with original maturities of three months or less. On occasion, the Company has amounts deposited with financial institutions in excess of federally insured limits. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized. The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of August 31, 2015 and 2014, the Company has not recorded any unrecognized tax benefits. See Note 6. Income Taxes. |
Segment Reporting | Segment Reporting The Company’s business currently operates in one segment. |
Net Loss per Share | Net Loss per Share The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the year. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding using the treasury stock method. See Note 4. Net Loss Per Share. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable to the Company, it has not identified any standards that it believes merit further discussion. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Deferred income taxes | Year Ended August 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 165,470 $ 147,538 Capitalized research and development 4,157 5,737 Research and development credit carry forward 1,963 1,963 Total deferred tax assets 171,590 155,238 Less: valuation allowance (171,590 ) (155,238 ) Net deferred tax asset $ — $ — |
Income Tax Benefit | Year Ended August 31, 2015 2014 Income tax benefit at statutory rate $ 16,352 $ 15,392 Change in valuation allowance (16,352 ) (15,392 ) $ — $ — |
Going Concern Uncertainties (De
Going Concern Uncertainties (Details Narrative) - USD ($) | Aug. 31, 2015 | Aug. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated Deficit | $ (634,903) | $ (586,809) |
Note Payable to Shareholder (De
Note Payable to Shareholder (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Note Payable | $ 70,000 | $ 70,000 |
Interest Rate | 7.00% | |
Default annual rate | 10.00% | |
Interest Expense | $ 4,900 | $ 3,141 |
Accrued interest | $ 8,041 |
Income Taxes - Deferred income
Income Taxes - Deferred income taxes (Details) - USD ($) | Aug. 31, 2015 | Aug. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 165,470 | $ 147,538 |
Capitalized research and development | 4,157 | 5,737 |
Research and development credit carry forward | 1,963 | 1,963 |
Total deferred tax assets | 171,590 | 155,238 |
Less: valuation allowance | (171,590) | (155,238) |
Net deferred tax asset |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Aug. 31, 2015 | Aug. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at statutory rate | $ 16,352 | $ 15,392 | |
Change in valuation allowance | $ 106,733 | (16,352) | (15,392) |
Income tax benefit |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Aug. 31, 2015 | Aug. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Net operating loss carry forward | $ 486,676 | ||
Tax credit carry forward | 1,963 | ||
Decrease in deferred tax asset | $ 64,857 | ||
Decrease in tax valuation | $ 106,733 | $ (16,352) | $ (15,392) |