Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Mar. 18, 2014 | |
Document and Entity Information: | ' | ' |
Entity Registrant Name | 'Sears Oil & Gas | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001434737 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 181,005 |
Entity Public Float | ' | $181,005 |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and cash equivalents | $18 | $9,995 |
TOTAL ASSETS | 18 | 9,995 |
Accounts payable | 8,818 | 1,040 |
Accrued interest | 17,583 | 11,419 |
Advances from related party | 39,705 | 29,790 |
Notes payable | 15,000 | 15,000 |
Total Current Liabilities | 81,106 | 57,249 |
TOTAL LIABILITIES | 81,106 | 57,249 |
Common stock, $0.001 par value; 100,000,000 shares authorized, 181,005 shares issued and outstanding | 181 | 181 |
Additional paid-in capital | 101,819 | 101,819 |
Deficit accumulated during the development stage | -183,088 | -149,254 |
Total Stockholders' Equity (Deficit) | -81,088 | -47,254 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $18 | $9,995 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | 98 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
REVENUES | ' | ' | ' |
Selling, general and administrative | $27,670 | $20,387 | $165,505 |
Interest expense | 6,164 | 3,450 | 17,583 |
Total Operating Expenses | 33,834 | 23,837 | 183,088 |
NET LOSS BEFORE INCOME TAXES | -33,834 | -23,837 | -183,088 |
NET INCOME (LOSS) | ($33,834) | ($23,837) | ($183,088) |
BASIC NET LOSS PER SHARE | ($0.19) | ($0.13) | ' |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 181,005 | 181,005 | ' |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (USD $) | Common stock | Additional Paid In Capital | Accumulated Deficit | Total |
Stockholders' Equity, beginning balance at Oct. 17, 2005 | ' | ' | ' | ' |
Common stock issued for services, value | $150 | $39,850 | ' | $40,000 |
Common stock issued for services, shares | 150,000 | ' | ' | 150,000 |
NET LOSS | ' | ' | -543 | -543 |
Stockholders' Equity, ending balance at Dec. 31, 2005 | 150 | 39,850 | -543 | 39,457 |
Balance common shares, ending balance at Dec. 31, 2005 | 150,000 | ' | ' | 150,000 |
NET LOSS | ' | ' | -39,186 | -39,186 |
Stockholders' Equity, ending balance at Dec. 31, 2006 | 150 | 39,850 | -39,729 | 271 |
Balance common shares, ending balance at Dec. 31, 2006 | 150,000 | ' | ' | 150,000 |
Common stock issued for cash, value | 25 | 49,975 | ' | 50,000 |
Common stock issued for cash, shares | 25,000 | ' | ' | 25,000 |
Common stock issued for services, value | 6 | 11,994 | ' | 12,000 |
Common stock issued for services, shares | 6,000 | ' | ' | 6,000 |
NET LOSS | ' | ' | -30,048 | -30,048 |
Stockholders' Equity, ending balance at Dec. 31, 2007 | 181 | 101,819 | -69,777 | 32,223 |
Balance common shares, ending balance at Dec. 31, 2007 | 181,000 | ' | ' | 181,000 |
NET LOSS | ' | ' | -40,586 | -40,586 |
Stockholders' Equity, ending balance at Dec. 31, 2008 | 181 | 101,819 | -110,363 | -8,363 |
Balance common shares, ending balance at Dec. 31, 2008 | 181,000 | ' | ' | 181,000 |
NET LOSS | ' | ' | -7,438 | -7,438 |
Stockholders' Equity, ending balance at Dec. 31, 2009 | 181 | 101,819 | -117,801 | -15,801 |
Balance common shares, ending balance at Dec. 31, 2009 | 181,000 | ' | ' | 181,000 |
NET LOSS | ' | ' | -3,516 | -3,516 |
Stockholders' Equity, ending balance at Dec. 31, 2010 | 181 | 101,819 | -121,317 | -19,317 |
Balance common shares, ending balance at Dec. 31, 2010 | 181,000 | ' | ' | 181,000 |
NET LOSS | ' | ' | -4,100 | -4,100 |
Stockholders' Equity, ending balance at Dec. 31, 2011 | 181 | 101,819 | -125,417 | -23,417 |
Balance common shares, ending balance at Dec. 31, 2011 | 181,000 | ' | ' | 181,000 |
NET LOSS | ' | ' | -23,837 | -23,837 |
Stockholders' Equity, ending balance at Dec. 31, 2012 | 181 | 101,819 | -149,254 | -47,254 |
Balance common shares, ending balance at Dec. 31, 2012 | 181,000 | ' | ' | 181,000 |
Fractional shares issued in reverse stock split, shares | 5 | ' | ' | ' |
NET LOSS | ' | ' | -33,834 | -33,834 |
Stockholders' Equity, ending balance at Dec. 31, 2013 | $181 | $101,819 | ($183,088) | ($81,088) |
Balance common shares, ending balance at Dec. 31, 2013 | 181,005 | ' | ' | 181,005 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | 98 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Profit (loss) | ($33,834) | ($23,837) | ($183,088) |
Common stock issued for services rendered | ' | ' | 52,000 |
Accounts payable and accrued expenses | 13,942 | 3,940 | 26,401 |
Net Cash Used by Operating Activities | -19,892 | -19,897 | -104,687 |
Proceeds from issuance of common stock | ' | ' | 50,000 |
Proceeds from notes payable | ' | ' | 15,000 |
Advances from related party | 14,250 | 29,790 | 44,040 |
Payments on advances from related party | -4,335 | ' | -4,335 |
Net Cash Provided by Financing Activities | 9,915 | 29,790 | 104,705 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -9,977 | 9,893 | 18 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 9,995 | 102 | ' |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $18 | $9,995 | $18 |
Note_1_Organization_and_Histor
Note 1 - Organization and History | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 1 - Organization and History | ' |
NOTE 1 - ORGANIZATION AND HISTORY | |
Sears Oil and Gas Corporation (the Company) was incorporated on October 18, 2005 in the State of Nevada. The Company was formed to use a patented technology to produce crude oil from “tar sands” deposits. The Company will also conduct administrative, correlated transportation and delivery of product, financial management, and the marketing and sales programs of the operation. The Company has not commenced principle operations and is classified as a development stage company. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Notes | ' | ||||
Note 2 - Significant Accounting Policies | ' | ||||
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | |||||
a | |||||
. Accounting Method | |||||
The Company uses the successful efforts method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells that find proved reserves, and to drill and equip development wells are capitalized. Costs to drill exploratory wells that do not find proved reserves, geological and geophysical costs, and costs of carrying and retaining unproved properties are expensed. | |||||
Unproved oil and gas properties that are individually significant are periodically assessed for impairment of value, and a loss is recognized at the time of impairment by providing an impairment allowance. Other unproved properties are amortized based on the Company's experience of successful drilling and average holding period. Capitalized costs of producing oil and gas properties, after considering estimated dismantlement and abandonment costs and estimated salvage values, are depreciated and depleted by the unit-of-production method. Support equipment and other property and equipment are depreciated over their estimated useful lives. | |||||
On the sale or retirement of a complete unit of a proved property, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the property accounts, and the resultant gain or loss is recognized. On the retirement or sale of a partial unit of proved property, the cost is charged to accumulated depreciation, depletion, and amortization with a resulting gain or loss recognized in income. | |||||
b. Basic Loss Per Share | |||||
For the Year Ended | |||||
31-Dec-13 | |||||
Loss | Shares | Per Share | |||
(Numerator) | (Denominator) | Amount | |||
$ (33,834) | 181,005 | $ (0.19) | |||
For the Year Ended | |||||
31-Dec-12 | |||||
Loss | Shares | Per Share | |||
(Numerator) | (Denominator) | Amount | |||
$ (23,837) | 181,005 | $ (0.13) | |||
The computations of basic loss per share of common stock are based on the weighted average number of shares outstanding at the date of the financial statements. There are no common stock equivalents outstanding. | |||||
c. Income Taxes | |||||
The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10. FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than- not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740-10. | |||||
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||
At December 31, 2013 the Company had net operating loss carryforwards of approximately $183,088 that may be offset against future taxable income through 2033. No tax benefits have been reported in the financial statements, because the potential tax benefits of the net operating loss carry forwards are offset by a valuation allowance of the same amount. | |||||
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in the future. | |||||
Net deferred tax assets consist of the following components as of December 31, 2013 and 2012: | |||||
2013 | 2012 | ||||
Deferred tax assets: | |||||
NOL Carryover | $ 71,403 | $ 58,208 | |||
Valuation allowance | (71,403) | (58,208) | |||
Net deferred tax asset | $ - | $ - | |||
The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates of 39% to pretax income from continuing operations for the years ended December 31, 2013 and 2012 due to the following: | |||||
2013 | 2012 | ||||
Current Federal Tax | $ - | $ - | |||
Current State Tax | - | - | |||
Change in NOL Benefit | 13,195 | 9,296 | |||
Valuation allowance | -13,195 | -9,296 | |||
$ - | $ - | ||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||
Year ended December 31, | |||||
2013 | 2012 | ||||
Beginning balance | $ - | $ - | |||
Additions based on tax positions related to current year | - | - | |||
Additions for tax positions of prior years | - | - | |||
Reductions for tax positions of prior years | - | - | |||
Reductions in benefit due to income tax expense | - | - | |||
Ending balance | $ - | $ - | |||
At December 31, 2013, the Company had no unrecognized tax benefits that, if recognized, would affect the effective tax rate. | |||||
The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. | |||||
The Company includes interest and penalties arising from the underpayment of income taxes in the consolidated statements of operations in the provision for income taxes. As of December 31, 2013 and 2012, the Company had no accrued interest or penalties related to uncertain tax positions. | |||||
The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended December 31, 2013, 2012 and 2011. | |||||
d. Estimates | |||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. | |||||
e. Fair Value of Financial Instruments | |||||
On January 1, 2008, the Company adopted FASB ASC 820-10-50, “Fair Value Measurements.” This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: | |||||
Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |||||
Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. | |||||
The carrying amounts reported in the balance sheets for the cash and cash equivalents, receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. | |||||
f. Recently Issued Accounting Pronouncements | |||||
We have reviewed accounting pronouncements issued during the past two years and have adopted any that are applicable to our company. We have determined that none had a material impact on our financial position, results of operations, or cash flows for the years ended December 31, 2013 and 2012. | |||||
g. Long-lived Assets | |||||
The Company’s long lived assets are recorded at its cost. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. | |||||
h | |||||
. Concentration of Risk | |||||
Cash - The Company at times may maintain a cash balance in excess of insured limits. At December 31, 2013, the Company has no cash in excess of insured limits. | |||||
i. Revenue Recognition | |||||
The Company will determine its revenue recognition policy when it determines a business model and achieves successful operations. | |||||
j. Accounts Receivable | |||||
Accounts receivable are carried at the expected net realizable value. The allowance for doubtful accounts is based on management's assessment of the collectability of specific customer accounts and the aging of the accounts receivables. If there were a deterioration of a major customer's creditworthiness, or actual defaults were higher than historical experience, our estimates of the recoverability of the amounts due to us could be overstated, which could have a negative impact on operations. | |||||
k. Cash and Cash Equivalents | |||||
For purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. | |||||
l. Property and Equipment | |||||
Property and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed straight-line over periods to be determined based on the nature of the assets. | |||||
Note_3_Going_Concern
Note 3 - Going Concern | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 3 - Going Concern | ' |
NOTE 3 - GOING CONCERN | |
The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company does not have significant cash or other current assets, nor does it have an established source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. The Company intends to raise additional capital when required to produce crude oil from tar sands. When and if these activities provide sufficient revenues it would allow it to continue as a going concern. In the interim the Company is working toward raising operating capital through the private placement of its common stock or debt instruments. | |
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern. | |
Note_4_Advances_From_Related_P
Note 4 - Advances From Related Party | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 4 - Advances From Related Party | ' |
NOTE 4 – ADVANCES FROM RELATED PARTY | |
During the year ended December 31, 2013, the President of the Company advanced money to the Company in order to pay for expenses and continue the reporting requirements with the Securities and Exchange Commission. The advances are non-interest bearing. As of December 31, 2013, the balance due on these advances was $39,705. | |
Note_5_Notes_Payable
Note 5 - Notes Payable | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 5 - Notes Payable | ' |
NOTE 5 - NOTES PAYABLE | |
Notes payable for the years ended December 31, 2013 and 2012 consisted of the following: | |
Note payable to an individual dated February 15, 2009, interest at 10% per annum, due on February 15, 2010, in default. | |
Note_6_stockholders_Equity
Note 6 -stockholders Equity | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 6 -stockholders Equity | ' |
NOTE 6 –STOCKHOLDERS EQUITY | |
In March 2013 the Company completed a 200 for 1 reverse stock split. Prior to the reverse split there were 36,200,000 shares outstanding. Following the reverse split there were 181,005 shares outstanding including 5 fractional shares issued. The financial statements have been retroactively restated to reflect the reverse split. | |
Note_7_subsequent_Events
Note 7 -subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 7 -subsequent Events | ' |
NOTE 7 –SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events for the period of December 31, 2013 through the date the financial statements were issued, and concluded there were no other events or transactions occurring during this period that required recognition or disclosure in its financial statements. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies: A. Accounting Method (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
A. Accounting Method | ' |
. Accounting Method | |
The Company uses the successful efforts method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells that find proved reserves, and to drill and equip development wells are capitalized. Costs to drill exploratory wells that do not find proved reserves, geological and geophysical costs, and costs of carrying and retaining unproved properties are expensed. | |
Unproved oil and gas properties that are individually significant are periodically assessed for impairment of value, and a loss is recognized at the time of impairment by providing an impairment allowance. Other unproved properties are amortized based on the Company's experience of successful drilling and average holding period. Capitalized costs of producing oil and gas properties, after considering estimated dismantlement and abandonment costs and estimated salvage values, are depreciated and depleted by the unit-of-production method. Support equipment and other property and equipment are depreciated over their estimated useful lives. | |
On the sale or retirement of a complete unit of a proved property, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the property accounts, and the resultant gain or loss is recognized. On the retirement or sale of a partial unit of proved property, the cost is charged to accumulated depreciation, depletion, and amortization with a resulting gain or loss recognized in income. | |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies: B. Basic Loss Per Share (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Policies | ' | ||
B. Basic Loss Per Share | ' | ||
b. Basic Loss Per Share | |||
For the Year Ended | |||
31-Dec-13 | |||
Loss | Shares | Per Share | |
(Numerator) | (Denominator) | Amount | |
$ (33,834) | 181,005 | $ (0.19) | |
For the Year Ended | |||
31-Dec-12 | |||
Loss | Shares | Per Share | |
(Numerator) | (Denominator) | Amount | |
$ (23,837) | 181,005 | $ (0.13) | |
The computations of basic loss per share of common stock are based on the weighted average number of shares outstanding at the date of the financial statements. There are no common stock equivalents outstanding. |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies: C. Income Taxes (Policies) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Policies | ' | ||||
C. Income Taxes | ' | ||||
c. Income Taxes | |||||
The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10. FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than- not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740-10. | |||||
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||
At December 31, 2013 the Company had net operating loss carryforwards of approximately $183,088 that may be offset against future taxable income through 2033. No tax benefits have been reported in the financial statements, because the potential tax benefits of the net operating loss carry forwards are offset by a valuation allowance of the same amount. | |||||
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in the future. | |||||
Net deferred tax assets consist of the following components as of December 31, 2013 and 2012: | |||||
2013 | 2012 | ||||
Deferred tax assets: | |||||
NOL Carryover | $ 71,403 | $ 58,208 | |||
Valuation allowance | (71,403) | (58,208) | |||
Net deferred tax asset | $ - | $ - | |||
The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates of 39% to pretax income from continuing operations for the years ended December 31, 2013 and 2012 due to the following: | |||||
2013 | 2012 | ||||
Current Federal Tax | $ - | $ - | |||
Current State Tax | - | - | |||
Change in NOL Benefit | 13,195 | 9,296 | |||
Valuation allowance | -13,195 | -9,296 | |||
$ - | $ - | ||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||
Year ended December 31, | |||||
2013 | 2012 | ||||
Beginning balance | $ - | $ - | |||
Additions based on tax positions related to current year | - | - | |||
Additions for tax positions of prior years | - | - | |||
Reductions for tax positions of prior years | - | - | |||
Reductions in benefit due to income tax expense | - | - | |||
Ending balance | $ - | $ - | |||
At December 31, 2013, the Company had no unrecognized tax benefits that, if recognized, would affect the effective tax rate. | |||||
The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. | |||||
The Company includes interest and penalties arising from the underpayment of income taxes in the consolidated statements of operations in the provision for income taxes. As of December 31, 2013 and 2012, the Company had no accrued interest or penalties related to uncertain tax positions. | |||||
The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended December 31, 2013, 2012 and 2011. |
Note_2_Significant_Accounting_4
Note 2 - Significant Accounting Policies: D. Estimates (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
D. Estimates | ' |
d. Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. |
Note_2_Significant_Accounting_5
Note 2 - Significant Accounting Policies: E. Fair Value of Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
E. Fair Value of Financial Instruments | ' |
e. Fair Value of Financial Instruments | |
On January 1, 2008, the Company adopted FASB ASC 820-10-50, “Fair Value Measurements.” This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows: | |
Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |
Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. | |
The carrying amounts reported in the balance sheets for the cash and cash equivalents, receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. | |
Note_2_Significant_Accounting_6
Note 2 - Significant Accounting Policies: F. Recently Issued Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
F. Recently Issued Accounting Pronouncements | ' |
f. Recently Issued Accounting Pronouncements | |
We have reviewed accounting pronouncements issued during the past two years and have adopted any that are applicable to our company. We have determined that none had a material impact on our financial position, results of operations, or cash flows for the years ended December 31, 2013 and 2012. |
Note_2_Significant_Accounting_7
Note 2 - Significant Accounting Policies: G. Long-lived Assets (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
G. Long-lived Assets | ' |
g. Long-lived Assets | |
The Company’s long lived assets are recorded at its cost. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. |
Note_2_Significant_Accounting_8
Note 2 - Significant Accounting Policies: H. Concentration of Risk (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
H. Concentration of Risk | ' |
. Concentration of Risk | |
Cash - The Company at times may maintain a cash balance in excess of insured limits. At December 31, 2013, the Company has no cash in excess of insured limits. |
Note_2_Significant_Accounting_9
Note 2 - Significant Accounting Policies: I. Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
I. Revenue Recognition | ' |
i. Revenue Recognition | |
The Company will determine its revenue recognition policy when it determines a business model and achieves successful operations. |
Recovered_Sheet1
Note 2 - Significant Accounting Policies: J. Accounts Receivable (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
J. Accounts Receivable | ' |
j. Accounts Receivable | |
Accounts receivable are carried at the expected net realizable value. The allowance for doubtful accounts is based on management's assessment of the collectability of specific customer accounts and the aging of the accounts receivables. If there were a deterioration of a major customer's creditworthiness, or actual defaults were higher than historical experience, our estimates of the recoverability of the amounts due to us could be overstated, which could have a negative impact on operations. |
Recovered_Sheet2
Note 2 - Significant Accounting Policies: K. Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
K. Cash and Cash Equivalents | ' |
k. Cash and Cash Equivalents | |
For purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. |
Recovered_Sheet3
Note 2 - Significant Accounting Policies: L. Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
L. Property and Equipment | ' |
l. Property and Equipment | |
Property and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed straight-line over periods to be determined based on the nature of the assets. |