Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Aug. 31, 2013 | |
Document and Entity Information: | ' |
Entity Registrant Name | 'Innocent, Inc. |
Document Type | '10-K |
Document Period End Date | 31-Aug-13 |
Amendment Flag | 'false |
Entity Central Index Key | '0001421865 |
Current Fiscal Year End Date | '--08-31 |
Entity Common Stock, Shares Outstanding | 20,000,000 |
Entity Filer Category | 'Smaller Reporting Company |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Well-known Seasoned Issuer | 'No |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Entity Public Float | $700,000 |
Balance_Sheets
Balance Sheets (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Current assets | ' | ' |
Cash | $11,667 | $9,894 |
Notes receivable, net of allowance $878,354 | 0 | 0 |
Total current assets | 11,667 | 9,894 |
Oil and Natural Gas Property, Unproved (successful efforts method) | 210,000 | 210,000 |
Total assets | 221,667 | 219,894 |
Current liabilities | ' | ' |
Accounts payable | 0 | 200 |
Notes payable (current portion) | 768,466 | 733,276 |
Related party payables | 591,950 | 341,450 |
Accrued interest | 261,537 | 164,162 |
Accrued expenses and other liabilities | 114,050 | 49,400 |
Total current liabilities | 1,736,003 | 1,288,488 |
Notes payable (non-current portion) | 0 | 0 |
Total liabilities | 1,736,003 | 1,288,488 |
Stockholders' Deficit | ' | ' |
Common stock, $0.001 par value; 75,000,000 shares authorized; 20,000,000 issued and outstanding at May 31, 2013 and August 31, 2012 | 20,000 | 20,000 |
Additional paid in capital | 27,000 | 27,000 |
Deficit accumulated during the development stage | -1,561,336 | -1,115,594 |
Total stockholders' deficit | -1,514,336 | -1,068,594 |
Total liabilities and stockholders' deficit | $221,667 | $219,894 |
Balance_Sheets_Parentheticals
Balance Sheets Parentheticals (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Parentheticals | ' | ' |
Notes receivable, net of allowance | $878,354 | $878,354 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 20,000,000 | 20,000,000 |
Common Stock, shares outstanding | 20,000,000 | 20,000,000 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | 83 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | |
Revenues: | ' | ' | ' |
Revenues | $0 | $0 | $0 |
Operating expenses | ' | ' | ' |
Professional fees | 70,252 | 59,035 | 255,750 |
Travel and promotion | 15,522 | 18,307 | 88,623 |
Bad debt | 250,000 | 290,010 | 878,354 |
Other general & administrative | 12,594 | 16,726 | 102,292 |
Total operating expenses | 348,368 | 384,078 | 1,325,019 |
Loss from operations | -348,368 | -384,078 | -1,325,019 |
Other income (expense) | ' | ' | ' |
Other income | 0 | 15,128 | 22,468 |
Interest expense | -97,374 | -93,465 | -261,637 |
Total other income (expense) | -97,374 | -78,337 | -239,169 |
Loss from continuing operations | -445,742 | -462,415 | -1,564,188 |
Income from discontinued operations | 0 | 0 | 2,852 |
Net loss | ($445,742) | ($462,415) | ($1,561,336) |
Basic and diluted loss per common share | ($0.02) | ($0.02) | ' |
Weighted average shares outstanding, basic and diluted | 20,000,000 | 20,000,000 | ' |
Statement_of_Changes_in_Stockh
Statement of Changes in Stockholders' Equity (Deficit) (USD $) | Common Stock Shares | Common Stock Amount | Additional Paid-In Capital | Shares Held in Escrow | Subscription Receivable | Accumulated Deficit | Total |
Balance at Sep. 27, 2006 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net loss, period ended August 31, 2007 | ' | $0 | $0 | $0 | $0 | ($3,980) | ($3,980) |
Common stock subscription, $0.001 at Aug. 31, 2007 | 4,000,000 | 4,000 | 0 | 0 | -4,000 | 0 | ' |
Balance at Aug. 31, 2007 | 4,000,000 | 4,000 | 0 | 0 | -4,000 | -3,980 | -3,980 |
Collection of subscription receivable | ' | 0 | 0 | 0 | 4,000 | 0 | 4,000 |
Common stock issued for cash | 3,000,000 | 3,000 | 27,000 | 0 | 0 | 0 | 30,000 |
Net loss, year ended August 31, 2008 | ' | 0 | 0 | 0 | 0 | -58,947 | -58,947 |
Balance at Aug. 31, 2008 | 7,000,000 | 7,000 | 27,000 | 0 | 0 | -62,927 | -28,927 |
Net loss, year ended August 31, 2009 | ' | 0 | 0 | 0 | 0 | -27,886 | -27,886 |
Balance at Aug. 31, 2009 | 7,000,000 | 7,000 | 27,000 | 0 | 0 | -90,813 | -56,813 |
Common stock issued for conversion of debt | 10,000,000 | 10,000 | 0 | 0 | 0 | 0 | 10,000 |
Common stock held in escrow | 10,000,000 | 10,000 | 0 | -10,000 | 0 | 0 | 0 |
Common stock issued for services | 3,000,000 | 3,000 | 0 | 0 | 0 | 0 | 3,000 |
Net loss, year ended August 31, 2010 | ' | 0 | 0 | 0 | 0 | -139,582 | -139,582 |
Balance at Aug. 31, 2010 | 30,000,000 | 30,000 | 27,000 | -10,000 | 0 | -230,395 | -183,395 |
Cancellation of shares held in escrow | -10,000,000 | -10,000 | 0 | 10,000 | 0 | 0 | 0 |
Net loss, year ended August 31, 2011 | ' | 0 | 0 | 0 | 0 | -422,784 | -422,784 |
Balance at Aug. 31, 2011 | 20,000,000 | 20,000 | 27,000 | 0 | 0 | -653,179 | -606,179 |
Common stock issued for services | ' | ' | ' | ' | ' | ' | 0 |
Net loss, year ended August 31, 2012 | ' | 0 | 0 | 0 | 0 | -462,415 | -462,415 |
Balance at Aug. 31, 2012 | 20,000,000 | 20,000 | 27,000 | 0 | 0 | -1,115,594 | -1,068,594 |
Common stock issued for services | ' | ' | ' | ' | ' | ' | 0 |
Net loss, year ended August 31, 2013 | ' | $0 | $0 | $0 | $0 | ($445,742) | ($445,742) |
Balance at Aug. 31, 2013 | 20,000,000 | 20,000 | 27,000 | 0 | 0 | -1,561,336 | -1,514,336 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | 83 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | |
Cash flows from operating activities | ' | ' | ' |
Net loss | ($445,742) | ($462,415) | ($1,561,336) |
Adjustments to reconcile net loss to net cash used in operating activities | ' | ' | ' |
Common stock issued for services | 0 | 0 | 3,000 |
Bad debt expense | 250,000 | 290,010 | 790,010 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts payable | -200 | 200 | 22,130 |
Interest payable | 97,375 | 93,462 | 261,537 |
Accrued expenses and other liabilities | 64,650 | 43,300 | 114,050 |
Cash provided by (used in) operating activities | -33,917 | -35,443 | -370,609 |
Cash flows from investing activities | ' | ' | ' |
Investment in oil and natural gas property | 0 | 0 | -210,000 |
Note receivable | -250,000 | 0 | -790,010 |
Cash flows used in investing activities | -250,000 | 0 | -1,000,010 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from related party loan | 250,500 | 0 | 617,637 |
Repayments of related party loan | 0 | 0 | -25,687 |
Proceeds from notes payable | 35,190 | 37,250 | 756,336 |
Proceeds from sale of stock | 0 | 0 | 34,000 |
Cash provided by financing activities | 285,690 | 37,250 | 1,382,286 |
Net change in cash | 1,773 | 1,807 | 11,667 |
Cash at beginning of period | 9,894 | 8,087 | 0 |
Cash at end of period | 11,667 | 9,894 | 11,667 |
Supplemental disclosure of non-cash investing activities | ' | ' | ' |
Issuance of note for account payable | 0 | 0 | 22,130 |
Common shares issued for conversion of debt | 0 | 0 | 10,000 |
Allowance for bad debt | 0 | 0 | 540,010 |
Supplemental cash flow Information: | ' | ' | ' |
Cash paid for interest | 0 | 0 | 0 |
Cash paid for income taxes | $0 | $0 | $0 |
Nature_of_Business
Nature of Business | 12 Months Ended |
Aug. 31, 2013 | |
Nature of Business | ' |
Nature of Business | ' |
Note 1 - Nature of Business | |
The Company was incorporated in the State of Nevada, United States of America on September 27, 2006 and its fiscal year end is August 31. The Company was engaged in sales of new food products produced or developed by North American companies to foreign markets and discontinued that business in August 2009. The Company currently operates in the oil and gas industry, focused on the exploration for and development of oil and gas properties. The Company has no operations or realized revenues from its planned principal business purpose, and in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 915 "Development Stage Entities" presents its financial information as a Development Stage Company. |
GOING_CONCERN
GOING CONCERN | 12 Months Ended |
Aug. 31, 2013 | |
GOING CONCERN | ' |
GOING CONCERN | ' |
Note 3 - Going Concern | |
The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. The Company has accumulated deficit since inception of $1,561,336.We have negative working capital of $1,724,336 as of August 31, 2013. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company has minimal cash and no material assets, nor does it have operations or a source of revenue sufficient to cover its operation costs and allow it to continue as a going concern. The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan. There can be no assurance that the Company will be successful in either situation in order to continue as a going concern. The officers and directors have committed to advancing certain operating costs of the Company. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2013 | |
Significant Accounting Policies | ' |
Significant Accounting Policies | ' |
Note 2 - Significant Accounting Policies | |
Basis of Presentation | |
The financial statements present the balance sheet, statements of operations, stockholders' equity and cash flows of the Company. These financial statements are presented in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States. | |
Estimates | |
The preparation of financial statements in conformity with 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. Actual results could differ from those estimates. | |
Cash | |
Cash and cash equivalents include short-term, highly liquid investments with maturities of less than three months when acquired. | |
Oil and Gas Property | |
The Company applies the successful efforts method of accounting for oil and gas properties. When incurred, exploration costs such as exploratory geological and geophysical costs, delay rentals, and exploration overhead will be charged against earnings as incurred. If an exploratory well provides evidence to justify potential completion as a producing well, drilling costs associated with the well will be initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. Acquisition costs of unproved properties are periodically assessed for impairment and will be transferred to proved oil and gas properties to the extent the costs are ultimately associated with successful exploration activities. Any significant undeveloped leases will be assessed individually for impairment, based on the Company’s current exploration plans, and a valuation allowance is provided if impairment is indicated. | |
Income taxes | |
The Company accounts for income taxes under ASC 740 "Income Taxes" which codified SFAS 109, "Accounting for Income Taxes" and FIN 48 “Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. | |
Fair Value of Financial Instruments | |
The Company's financial instruments as defined by FASB ASC 825-10-50 include cash, trade accounts receivable, accounts payable, notes payable and accrued expenses. All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at August 31, 2013. | |
FASB ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: | |
Level 1. Observable inputs such as quoted prices in active markets; | |
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |
Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions. | |
The Company does not have any assets or liabilities measured at fair value on a recurring basis at August 31, 2013. The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the years ended August 31, 2013 or 2012. | |
Depreciation, Depletion, and Amortization | |
Upon beginning exploratory activities, costs of drilling and equipping successful wells, costs to construct or acquire facilities, associated asset retirement costs, and capital lease assets used in oil and gas activities will be depreciated using the unit-of-production (UOP) method based on total estimated proved developed oil and gas reserves. Costs of acquiring proved properties, including leasehold acquisition costs transferred from unproved properties and associated asset retirement costs, will be depleted using the UOP method based on total estimated proved developed and undeveloped reserves. Mineral properties will also deplete using the UOP method. All other properties are stated at historical acquisition cost, net of impairments, and are depreciated using the straight-line method over the useful lives of the assets, which range from 3 to 15 years for furniture and equipment, up to 40 years for buildings, and up to 47 years for gathering facilities. | |
Earnings Per Share Information | |
FASB ASC 260, “Earnings Per Share” provides for calculation of "basic" and "diluted" earnings per share. Basic earnings 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 per share reflect the potential dilution of securities that could share in the earnings of an entity similar to fully diluted earnings per share. Basic and diluted loss per share were the same, at the reporting dates, as there were no common stock equivalents outstanding. | |
Share Based Expenses | |
ASC 718 "Compensation - Stock Compensation" codified SFAS No. 123, which prescribes accounting and reporting standards for all stock-based payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights. , may be classified as either equity or liabilities. | |
Share Based Expenses (continued) | |
The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 "Equity - Based Payments to Non-Employees" which codified SFAS 123 and the Emerging Issues Task Force consensus in Issue No. 96-18 ("EITF 96-18"), "Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring or in Conjunction with Selling, Goods or Services". Measurement of share-based payment transactions with non-employees shall be based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction should be determined at the earlier of performance commitment date or performance completion date. | |
Revenue recognition | |
The Company recognizes revenue when services are rendered on the accrual basis of accounting in accordance with generally accepted accounting principles in ASC 605. The Company does not recognize revenue until all four of the following criteria are met: (1) Persuasive evidence of an arrangement exists, (2) Services have been rendered, (3) The seller’s price to the buyer is fixed and (4) Collectability is reasonably assured. We have not yet recognized revenue since inception on September 27, 2006. | |
Recent Accounting Pronouncements | |
The company has evaluated all the recent accounting pronouncements and determined there are none having a material effect on the Company’s financial statements. |
OIL_AND_GAS_PROPERTY
OIL AND GAS PROPERTY | 12 Months Ended |
Aug. 31, 2013 | |
OIL AND GAS PROPERTY | ' |
OIL AND GAS PROPERTY | ' |
Note 9 – Oil and Natural Gas Property | |
In December 2010, the Company entered into an agreement granting it the working interest in a currently non-operating oil well in exchange for $150,000 and $60,000 in improvements to the well for a total investment of $210,000. The reserves related to this property are unproved; as such the entire $210,000 is not subject to depreciation. This asset is periodically analyzed by management for impairment. |
NOTES_PAYABLE
NOTES PAYABLE | 12 Months Ended |
Aug. 31, 2013 | |
NOTES PAYABLE | ' |
NOTES PAYABLE | ' |
Note 7– Notes Payable | |
Since inception, the Company has received loans from unrelated parties totaling $768,466 including $35,190 received during the year ended August 31, 2013. The notes carry an annual interest rate of 10%, are due on demand and as such are included in current liabilities. There was $768,466 and $733,276 of principal and $188,469 and $114,006 of accrued interest due at August 31, 2013 and 2012. |
EQUITY
EQUITY | 12 Months Ended |
Aug. 31, 2013 | |
EQUITY | ' |
EQUITY | ' |
Note 4 - Stockholders' Equity | |
The total number of common shares authorized that may be issued by the Company is 75,000,000 shares with a par value of one tenth of one cent ($0.001) per share and no other class of shares is authorized. | |
During the period from September 27, 2006 (inception) to November 30, 2008, the Company issued 4,000,000 shares of common stock at $0.001 per share to its directors for total proceeds of $4,000 and 3,000,000 shares of common stock at $0.010 per share for total proceeds of $30,000. | |
During the year ended August 31, 2010 the Company also issued 3,000,000 shares of its common stock to its president for consideration of services provided. These shares were valued at $.001 per share for total consideration of $3,000. Further during the year ended August 31, 2010, the Company issued 10,000,000 shares valued at $.001 for the conversion of a $10,000 note payable. Also during the year ended August 31, 2011 the Company issued 10,000,000 shares of its common stock which were held in escrow pending the close of a share exchange. These shares were rescinded during the three months ended November 30, 2010. | |
From inception to August 31, 2013 the Company has not granted any stock options. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||
Aug. 31, 2013 | ||||||
Income Taxes | ' | |||||
Income Taxes | ' | |||||
Note 5 - Income Taxes | ||||||
We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. Under ACS 740 “Income Taxes,” when it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period. | ||||||
The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the period ended August 31, 2012, applicable under ACS 740. As a result of the adoption of ACS 740, we did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet. | ||||||
Changes in the net deferred tax assets consist of the following: | ||||||
2013 | 2012 | |||||
Net operating loss carry forward | $ | 445,742 | $ | 462,415 | ||
Valuation allowance | -445,742 | -462,415 | ||||
Net deferred tax asset | $ | - | $ | - | ||
A reconciliation of income taxes computed at the 35% statutory rate to the income tax recorded is as follows: | ||||||
2013 | 2012 | |||||
Net operating loss carry forward | $ | 156,010 | $ | 161,845 | ||
Valuation allowance | -156,010 | -161,845 | ||||
Net deferred tax asset | $ | - | $ | - | ||
The Company did not pay any income taxes during the years ended August 31, 2013 or 2012. | ||||||
The net federal operating loss carry forward will expire in 2031. This carry forward may be limited upon the consummation of a business combination under IRC Section 381. |
RELATED_PARTY_NOTES_PAYABLE
RELATED PARTY NOTES PAYABLE | 12 Months Ended |
Aug. 31, 2013 | |
RELATED PARTY NOTES PAYABLE | ' |
RELATED PARTY NOTES PAYABLE | ' |
Note 6 - Related Party Transactions | |
The President of the Company provides management services to the Company. During the years ended August 31, 2013 and 2012 management services of $60,000 and $46,000 were charged to operations as professional fees | |
The Company has also received loans from shareholders totaling $591,950 since inception to fund operations which carry an interest rate of 6.75% per annum. As of August 31, 2013 and 2012, the Company owed $591,950 and $339,450 of principal plus accrued interest of $73,068 and $50,155. The loans are unsecured and due on demand and as such are included in current liabilities. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Aug. 31, 2013 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | ' |
Note 10 – Subsequent Events | |
On 10/30/2013 Innocent Inc. entered into an asset purchase agreement with an entity that is majority owned by our now current COO and Director, Patrick Johnson. The agreement includes the sale of certain oil and gas properties located in Texas and Oklahoma to Innocent, Inc. for a $273,500 note payable by with the annual interest rate of ten percent (10%) and a term of 2 years. | |
On 11/4/ 2013 the company received official communication that Marcus Mueller, was resigning as a Director of Innocent Inc. to pursue other interests. The Board of Directors then appointed Patrick Johnson to serve as a Director of Innocent Inc. | |
On 11/13/2013 the Board of Directors appointed Patrick Johnson (37), Chief Operating Officer (COO). | |
On 11/13/2013 Innocent Inc. signed an exploration agreement with Evergreen Petroleum of Dallas, TX to potentially acquire and if feasible place into production oil and gas leases in Wyoming and South Dakota. Under the terms of this arrangement, Innocent, Inc. will have a 75% interest in the Exploration Project and be responsible for all working capital needs, including an initial cash contribution of $25,000 due in 30 days from the date of this agreement. Evergreen, who has over 150 years’ experience in the oil and gas industry, will be the General Manager of the Exploration Project including selection of areas to lease, drilling exploratory wells, drilling development wells, and producing oil and gas found. | |
On 11/14/2013 the Board of Directors authorized the issuance of five million (5,000,000,000) shares of rule 144 restricted common stock valued at a price of .015 per share paid by the company and issued to Patrick Johnson for accepting the COO position, his service as a Director and his efforts to bring a new venture and funding to the company. This issuance represents ownership of approximately 20% of the current authorized and outstanding shares of the Company. | |
On 11/26/2013 the Board of Directors authorized the conversion of $33,000 of debt at a conversion rate of $.03 cents per share for a total of one million one hundred thousand shares (1,100,000) of Innocent Inc. common stock. | |
On January 6, 2014, the Board of Directors dismissed Sam Kan and Company, its independent registered public accounting firm. On the same date, January 6, 2014, the accounting firm of KLJ and Associates, LLP was engaged as the new independent registered public account firm. | |
The Company has evaluated subsequent events from the balance sheet date through the date of this filing, and determined there are no additional events to disclose. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2013 | |
Accounting Policies | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The financial statements present the balance sheet, statements of operations, stockholders' equity and cash flows of the Company. These financial statements are presented in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States. | |
Estimates | ' |
Estimates | |
The preparation of financial statements in conformity with 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. Actual results could differ from those estimates. | |
Cash Policy | ' |
Cash | |
Cash and cash equivalents include short-term, highly liquid investments with maturities of less than three months when acquired. | |
Oil and Gas Property | ' |
Oil and Gas Property | |
The Company applies the successful efforts method of accounting for oil and gas properties. When incurred, exploration costs such as exploratory geological and geophysical costs, delay rentals, and exploration overhead will be charged against earnings as incurred. If an exploratory well provides evidence to justify potential completion as a producing well, drilling costs associated with the well will be initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. Acquisition costs of unproved properties are periodically assessed for impairment and will be transferred to proved oil and gas properties to the extent the costs are ultimately associated with successful exploration activities. Any significant undeveloped leases will be assessed individually for impairment, based on the Company’s current exploration plans, and a valuation allowance is provided if impairment is indicated. | |
Income taxes Policy | ' |
Income taxes | |
The Company accounts for income taxes under ASC 740 "Income Taxes" which codified SFAS 109, "Accounting for Income Taxes" and FIN 48 “Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The Company's financial instruments as defined by FASB ASC 825-10-50 include cash, trade accounts receivable, accounts payable, notes payable and accrued expenses. All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at August 31, 2013. | |
FASB ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: | |
Level 1. Observable inputs such as quoted prices in active markets; | |
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |
Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions. | |
The Company does not have any assets or liabilities measured at fair value on a recurring basis at August 31, 2013. The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the years ended August 31, 2013 or 2012. | |
Depreciation, Depletion, and Amortization Policy | ' |
Depreciation, Depletion, and Amortization | |
Upon beginning exploratory activities, costs of drilling and equipping successful wells, costs to construct or acquire facilities, associated asset retirement costs, and capital lease assets used in oil and gas activities will be depreciated using the unit-of-production (UOP) method based on total estimated proved developed oil and gas reserves. Costs of acquiring proved properties, including leasehold acquisition costs transferred from unproved properties and associated asset retirement costs, will be depleted using the UOP method based on total estimated proved developed and undeveloped reserves. Mineral properties will also deplete using the UOP method. All other properties are stated at historical acquisition cost, net of impairments, and are depreciated using the straight-line method over the useful lives of the assets, which range from 3 to 15 years for furniture and equipment, up to 40 years for buildings, and up to 47 years for gathering facilities. | |
Earnings Per Share Information | ' |
Earnings Per Share Information | |
FASB ASC 260, “Earnings Per Share” provides for calculation of "basic" and "diluted" earnings per share. Basic earnings 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 per share reflect the potential dilution of securities that could share in the earnings of an entity similar to fully diluted earnings per share. Basic and diluted loss per share were the same, at the reporting dates, as there were no common stock equivalents outstanding. | |
Share-based Compensation, Policy | ' |
Share Based Expenses | |
ASC 718 "Compensation - Stock Compensation" codified SFAS No. 123, which prescribes accounting and reporting standards for all stock-based payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights. , may be classified as either equity or liabilities. | |
The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 "Equity - Based Payments to Non-Employees" which codified SFAS 123 and the Emerging Issues Task Force consensus in Issue No. 96-18 ("EITF 96-18"), "Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring or in Conjunction with Selling, Goods or Services". Measurement of share-based payment transactions with non-employees shall be based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction should be determined at the earlier of performance commitment date or performance completion date. | |
Revenue Recognition | ' |
Revenue recognition | |
The Company recognizes revenue when services are rendered on the accrual basis of accounting in accordance with generally accepted accounting principles in ASC 605. The Company does not recognize revenue until all four of the following criteria are met: (1) Persuasive evidence of an arrangement exists, (2) Services have been rendered, (3) The seller’s price to the buyer is fixed and (4) Collectability is reasonably assured. We have not yet recognized revenue since inception on September 27, 2006. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
The company has evaluated all the recent accounting pronouncements and determined there are none having a material effect on the Company’s financial statements. |
Components_Of_Income_Tax_Expen
Components Of Income Tax Expense Benefit (Tables) | 12 Months Ended | |||||
Aug. 31, 2013 | ||||||
Components Of Income Tax Expense Benefit | ' | |||||
Changes in the net deferred tax assets consist of the following | ' | |||||
Changes in the net deferred tax assets consist of the following: | ||||||
2013 | 2012 | |||||
Net operating loss carry forward | $ | 445,742 | $ | 462,415 | ||
Valuation allowance | -445,742 | -462,415 | ||||
Net deferred tax asset | $ | - | $ | - | ||
Effective Income Tax Rate Reconciliation | ' | |||||
A reconciliation of income taxes computed at the 35% statutory rate to the income tax recorded is as follows: | ||||||
2013 | 2012 | |||||
Net operating loss carry forward | $ | 156,010 | $ | 161,845 | ||
Valuation allowance | -156,010 | -161,845 | ||||
Net deferred tax asset | $ | - | $ | - |
Going_Concern_Details
Going Concern (Details) (USD $) | Aug. 31, 2013 |
Going Concern As Follows | ' |
Accumulated deficit | $1,561,336 |
Negative working capital | $1,724,336 |
NOTES_PAYABLE_Details
NOTES PAYABLE (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
NOTES PAYABLE As Follows: | ' | ' |
loans from unrelated parties | $768,466 | ' |
Received during the year ended | 35,190 | ' |
Annual interest rate | 10.00% | ' |
Principal amount | 768,466 | 733,276 |
Acrued interest | $188,469 | $114,006 |
EQUITY_Details
EQUITY (Details) (USD $) | 12 Months Ended | 26 Months Ended | |
Aug. 31, 2010 | Nov. 30, 2008 | Aug. 31, 2013 | |
Capital stock transactions: | ' | ' | ' |
Issued common shares | ' | ' | 75,000,000 |
Issued common shares par value | ' | ' | $0.00 |
Issued common shares | 3,000,000 | 4,000,000 | ' |
Issued common shares par value | $0.00 | $0.00 | ' |
Common shares to directors for total proceeds | $3,000 | $4,000 | ' |
Issued common shares | 10,000,000 | 3,000,000 | ' |
Issued common shares par value | $0.00 | $0.01 | ' |
Common shares to directors for total proceeds | ' | 30,000 | ' |
Common shares valued for the conversion of note payable | $10,000 | ' | ' |
Common stock which were held in escrow pending the close of a share exchange (Shares) | 10,000,000 | ' | ' |
Deferred_tax_assets_consist_of
Deferred tax assets consist of the following (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Deferred tax assets consist of the following | ' | ' |
Net operating loss carry forward | $445,742 | $462,415 |
Valuation allowance | -445,742 | -462,415 |
Net deferred tax asset | $0 | $0 |
Reconciliation_of_income_taxes
Reconciliation of income taxes computed recorded is as follows (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Reconciliation of income taxes computed recorded is as follows | ' | ' |
Net operating loss carry forward | $156,010 | $161,845 |
Valuation allowance | -156,010 | -161,845 |
Net deferred tax asset | $0 | $0 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
RELATED PARTY NOTES PAYABLE AS FOLLOWS | ' | ' |
Charged to operations as professional fees | $60,000 | $46,000 |
loans from shareholders | 591,950 | 273,500 |
Due to related parties | 591,950 | 339,450 |
Accrued interest | $73,068 | $50,155 |
Interest rate | 6.75% | ' |
Note_Receivable_Details
Note Receivable (Details) (USD $) | Aug. 31, 2013 |
Note Receivable as Follows | ' |
Advanced funds totaling | $540,010 |
Advanced funds to Global Finishing | $338,344 |
Oil_and_Natural_Gas_Property_D
Oil and Natural Gas Property (Details) (USD $) | Aug. 31, 2013 |
Oil and Natural Gas Property as Fillows | ' |
Working interest in a currently non-operating oil well | $150,000 |
Improvements to the well | 60,000 |
Total investment | 210,000 |
Unproved property | $210,000 |
Subsequent_Events_Transactions
Subsequent Events Transactions (Details) (USD $) | Nov. 26, 2013 | Nov. 14, 2013 | Nov. 13, 2013 | Oct. 30, 2013 |
Subsequent Events | ' | ' | ' | ' |
Sale of oil and gas properties | ' | ' | ' | $273,500 |
Annual interest rate | ' | ' | ' | 10.00% |
Initial cash contribution | ' | ' | 25,000 | ' |
Issuance of shares | ' | 5,000,000,000 | ' | ' |
Issuance represents ownership of approximately | ' | 20.00% | ' | ' |
Conversion of debt | $33,000 | ' | ' | ' |
Debt at a conversion rate cents per share | $0.03 | ' | ' | ' |
Conversion of shares | 1,100,000 | ' | ' | ' |