| Summary of Significant Accounting Policies | NOTE 3 – Summary of Significant Accounting Policies Our
discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements,
which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires us to
make estimates and judgments that affect the amounts reported in those statements. We have made our best estimates of certain amounts
contained in our consolidated financial statements. We base our estimates on historical experience and on various other assumptions
that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying
value of assets and liabilities. However, application of our accounting policies involves the exercise of judgment and use of assumptions
as to future uncertainties, and, as a result, actual results could differ materially from these estimates. Management believes
that the estimates, assumptions, and judgments involved in the accounting policies described below have the most significant impact
on our consolidated financial statements. We
cannot predict what future laws and regulations might be passed that could have a material effect on our results of operations.
We assess the impact of significant changes in laws and regulations on a regular basis and update the assumptions and estimates
used to prepare our financial statements when we deem it necessary. Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiariy, Action
Nutraceuticals, Inc. All intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents We consider all highly
liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents are held
in operating accounts at a major financial institution. Inventory Inventory
is primarily comprised of work in progress. Inventory is valued at cost, based on the specific identification method, unless and
until the market value for the inventory is lower than cost, in which case an allowance is established to reduce the valuation
to market value. As of August 31, 2019 and August 31, 2018, market values of all of our inventory were at cost, and accordingly,
no such valuation allowance was recognized. Deposits Deposits is comprised of
advance payments made to third parties, primarily for inventory for which we have not yet taken title. When we take title to inventory
for which deposits are made, the related amount is classified as inventory, then recognized as a cost of revenues upon sale (see
“Costs of Revenues” below). There were no deposits as of August 31, 2019 or August 31, 2018. Prepaid Expenses and Other Current Assets Prepaid expenses and other
current assets is primarily comprised of advance payments made to third parties for independent contractors’ services or
other general expenses. Prepaid services and general expenses are amortized over the applicable periods which approximate the life
of the contract or service period. Accounts Receivable Accounts receivable are
recorded at the net value of face amount less any allowance for doubtful accounts. On a periodic basis, we evaluate our accounts
receivable and, based on a method of specific identification of any accounts receivable for which we deem the net realizable value
to be less than the gross amount of accounts receivable recorded, we establish an allowance for doubtful accounts for those balances.
In determining our need for an allowance for doubtful accounts, we consider historical experience, analysis of past due amounts,
client creditworthiness and any other relevant available information. However, our actual experience may vary from our estimates.
If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay our fees, we
may need to record additional allowances or write-offs in future periods. This risk is mitigated to the extent that we collect
retainers from our clients prior to performing significant services. There were no accounts receivable as of August 31, 2019 for
August 31, 2018. The allowance for doubtful accounts, if any,
is recorded as a reduction in revenue to the extent the provision relates to fee adjustments and other discretionary pricing adjustments.
To the extent the provision relates to a client's inability to make required payments on accounts receivables, the provision is
recorded in operating expenses. As of August 31, 2019 and August 31, 2018, we had $0 and $0 allowance for doubtful accounts, respectively. Property and Equipment, net Property and Equipment
is stated at net book value, cost less depreciation. Maintenance and repairs are expensed as incurred. Depreciation of owned equipment
is provided using the straight-line method over the estimated useful lives of the assets, ranging from two to seven years. Depreciation
of capitalized construction in progress costs, a component of property and equipment, net, begins once the underlying asset is
placed into service and is recognized over the estimated useful life. Property and equipment is reviewed for impairment as discussed
below under “Accounting for the Impairment of Long-Lived Assets.” We did not capitalize any interest as of August 31,
2019, and as of August 31, 2018. Accounting for the Impairment of Long-Lived
Assets We evaluate long-lived
assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset
to forecasted undiscounted net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its
estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds
the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair
value is determined based on discounted cash flows, appraised values or management's estimates, depending upon the nature of the
assets. We have not recorded any impairment charges related to long-lived assets during the year ended August 31, 2019, and August
31, 2018,. Beneficial Conversion Feature If the conversion features
of conventional convertible debt provides for a rate of conversion that is below market value at issuance, this feature is characterized
as a beneficial conversion feature (“BCF”). We record a BCF as a debt discount pursuant to Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ACF”) Topic 470-20 Debt with Conversion
and Other Options Revenue Recognition For annual reporting periods
after December 15, 2017, the Financial Accounting Standards Board (“FASB”) made effective ASU 2014-09 “Revenue
from Contracts with Customers” to supersede previous revenue recognition guidance under current U.S. GAAP. Revenue is now
recognized in accordance with FASB ASC Topic 606, Revenue Recognition. The guidance presents a single five-step model for comprehensive
revenue recognition that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
Two options are available for implementation of the standard which is either the retrospective approach or cumulative effect adjustment
approach. The guidance becomes effective for annual reporting periods beginning after December 15, 2017, including interim periods
within that reporting period, with early adoption permitted. We determined to implement the cumulative effect adjustment approach
to our implementation of FASB ASC Topic 606, with no restatement of the comparative periods presented. We intend to apply this
method to any incomplete contracts we determine are subject to FASB ASC Topic 606 prospectively. As is more fully discussed below,
we are of the opinion that none of our contracts for services or products contain significant financing components that require
revenue adjustment under FASB ASC Topic 606. In accordance with FASB
ASC Topic 606, Revenue Recognition, we will recognize revenue when persuasive evidence of a significant financing component exists
in our consulting and product sales contracts. We examine and evaluate when our customers become liable to pay for goods and services;
how much consideration is paid as compared to the cash selling price of the goods or services; and, the length of time between
our performance and the receipt of payment. Product Sales Revenue from product sales,
including delivery fees, is recognized when an order has been obtained from the customer, the price is fixed and determinable
when the order is placed, the product is shipped, title has transferred and collectibility is reasonably assured. Generally, we
drop-ship orders to our clients with shipping-point or destination terms. For any shipments with destination terms, the Company
defers revenue until delivery to the customer. Given the facts that (1) our customers exercise discretion in determining the timing
of when they place their product order; and, (2) the price negotiated in our product sales is fixed and determinable at the time
the customer places the order, we are not of the opinion that our product sales indicate or involve any significant customer financing
that would materially change the amount of revenue recognized under the sales transaction, or would otherwise contain a significant
financing component for us or the customer under FASB ASC Topic 606. We had no product sales for fiscal years ending August 31,
2019 and August 31, 2018. Costs of Revenues Our policy is to recognize
costs of revenue in the same manner in conjunction with revenue recognition. Cost of revenues include the costs directly attributable
to revenue recognition and includes compensation and fees for services, travel and other expenses for services and costs of products
and equipment. Selling, general and administrative expenses are charged to expense as incurred. We had no product sales for fiscal
years ending August 31, 2019 and August 31, 2018, and thus no cost of revenues. Stock-Based Compensation Restricted shares are awarded
to employees and entitle the grantee to receive shares of restricted common stock at the end of the established vesting period.
The fair value of the grant is based on the stock price on the date of grant. We recognize related compensation costs on a straight-line
basis over the requisite vesting period of the award, which to date has been one year from the grant date. We had no stock-based
compensation during the fiscal year ended August 31, 2019 and August 31, 2018. Income Taxes We recognize deferred tax
assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or
tax returns in accordance with applicable accounting guidance for accounting for income taxes, using currently enacted tax rates
in effect for the year in which the differences are expected to reverse. We record a valuation allowance when necessary to reduce
deferred tax assets to the amount expected to be realized. For the year ended August 31, 2019 and August 31, 2018 we incurred
no income taxes. As of August 31, 2019 and August 31, 2018, we had no liabilities related to federal or state income taxes. Loss Contingencies From time to time the Company
is subject to various legal proceedings and claims that arise in the ordinary course of business. On at least a quarterly basis,
consistent with ASC 450-20-50-1C, if the Company determines that there is a reasonable possibility that a material loss may have
been incurred, or is reasonably estimable, regardless of whether the Company accrued for such a loss (or any portion of that loss),
the Company will confer with its legal counsel, consistent with ASC 450. If the material loss is determinable or reasonably estimable,
the Company will record it in its accounts and as a liability on the balance sheet. If the Company determines that such an estimate
cannot be made, the Company's policy is to disclose a demonstration of its attempt to estimate the loss or range of losses before
concluding that an estimate cannot be made, and to disclose it in the notes to the financial statements under Contingent Liabilities. Net Income (Loss) Per Common Share We report net income (loss)
per common share in accordance with FASB ASC 260, “Earnings per Share”. This statement requires dual presentation of
basic and diluted earnings with a reconciliation of the numerator and denominator of the earnings per share computations. Basic
net income (loss) per share is computed by dividing net income attributable to common stockholders by the weighted average number
of shares of common stock outstanding during the period and excludes the effects of any potentially dilutive securities. Diluted
net income (loss) per share gives effect to any dilutive potential common stock outstanding during the period. The computation
does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. |
