Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Nov. 30, 2013 | Jan. 21, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'HYDRODYNEX, INC. | ' |
Entity Central Index Key | '0001438535 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Nov-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--05-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 2,844,880 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Nov. 30, 2013 | 31-May-13 |
Current Assets | ' | ' |
Cash | $246 | $2,076 |
Prepaid expenses | 1,000 | 1,000 |
Total Current Assets | 1,246 | 3,076 |
Total Assets | 1,246 | 3,076 |
Current Liabilities: | ' | ' |
Accounts payable | 11,175 | 10,818 |
Accrued expenses | 0 | 0 |
License fees payable | 27,212 | 25,977 |
Notes payable | 3,000 | 0 |
Advances from related parties | 0 | 27,250 |
Total Current Liabilities | 41,387 | 64,045 |
Total Liabilities | 41,387 | 64,045 |
Stockholders' Deficit | ' | ' |
Preferred stock, $.001 par value, 5,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $.001 par value, 75,000,000 shares authorized, 2,844,880 and 2,299,980 shares issued and outstanding, respectively | 2,845 | 2,300 |
Additional paid-in capital | 306,898 | 280,193 |
Deficit accumulated during the development stage | -349,884 | -343,462 |
Total Stockholders' Deficit | -40,141 | -60,969 |
Total Liabilities and Stockholders' Deficit | $1,246 | $3,076 |
Balance_Sheets_Unaudited_Paren
Balance Sheets (Unaudited) (Parenthetical) (USD $) | Nov. 30, 2013 | 31-May-13 |
Preferred Stock | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Common Stock | ' | ' |
Common Stock, par value | $0.00 | $0.00 |
Common stock, authorized | 75,000,000 | 75,000,000 |
Common stock, Issued | 2,844,880 | 2,299,880 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | 91 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | |
Operating Expense | ' | ' | ' | ' | ' |
Advertising and promotion | $0 | $0 | $0 | $0 | $5,560 |
Consulting fees - officer | 0 | 0 | 0 | 0 | 61,000 |
Depreciation | 0 | 64 | 0 | 86 | 1,288 |
Board of directors fees | 0 | 0 | 0 | 0 | 2,750 |
General and administrative | 28 | 52 | 145 | 94 | 35,424 |
Impairment of deferred license fees | 0 | 0 | 0 | 0 | 68,175 |
Patent application costs | 0 | 0 | 0 | 0 | 6,997 |
Travel | 0 | 0 | 0 | 0 | 10,996 |
Professional fees | 4,630 | 6,051 | 4,960 | 6,016 | 136,322 |
Total Operating Expenses | 4,658 | 6,167 | 5,105 | 6,195 | 328,512 |
Loss from Operations | -4,658 | -6,167 | -5,105 | -6,195 | -328,512 |
Other (Income) Expenses | ' | ' | ' | ' | ' |
Foreign currency transactions (gain) loss | 765 | 838 | 1,235 | 1,050 | 415 |
Forgiveness of debt | 0 | 0 | 0 | 0 | -10,298 |
Loss of advance on purchases | 0 | 0 | 0 | 0 | 26,991 |
Interest expense | 82 | 0 | 82 | 0 | 4,264 |
Total Other (Income) Expenses | 847 | 838 | 1,317 | 1,050 | 21,372 |
Loss Before Income Taxes | -5,505 | -7,005 | -6,422 | -7,245 | -349,884 |
Income Tax Provision | 0 | 0 | 0 | 0 | 0 |
Net Loss | ($5,505) | ($7,005) | ($6,422) | ($7,245) | ($349,884) |
Net Loss per Common Share - Basic and Diluted | $0 | $0 | $0 | $0 | ' |
Weighted Average Common Shares Outstanding, Basic and Diluted | 2,844,880 | 2,299,880 | 2,575,375 | 2,299,880 | ' |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | 91 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net loss | ($6,422) | ($7,245) | ($349,884) |
Adjustments to reconcile net loss to net cash used in operations | ' | ' | ' |
Depreciation expense | 0 | 86 | 1,288 |
Forgiveness of accounts payable | 0 | 0 | -1,677 |
Write-off of prepaid patent application costs | 0 | 0 | 6,997 |
Loss of advance on purchases | 0 | 0 | 26,991 |
Impairment of deferred license fees | 0 | 0 | 68,175 |
Stock options issued for services | 0 | 0 | 4,250 |
Amortization of discount on convertible notes payable | 0 | 0 | 2,640 |
Changes in operating assets and liabilities: | ' | ' | ' |
Advances on purchases | 0 | 0 | -26,991 |
Accounts payable and accrued expenses | 357 | 4,756 | 19,560 |
Prepaid expenses | 0 | 0 | -1,000 |
Interest payable | 0 | 0 | 720 |
License fees payable | 1,235 | 1,050 | 27,212 |
Net cash used in operating activities | -4,830 | -1,353 | -221,719 |
Cash Flows from Investing Activities | ' | ' | ' |
Purchase of office equipment | 0 | 0 | -1,288 |
Prepaid patent applications costs | 0 | 0 | -6,997 |
Deferred license fees | 0 | 0 | -68,175 |
Net cash used in investing activities | 0 | 0 | -76,460 |
Cash Flows from Financing Activities | ' | ' | ' |
Accrued expenses - related party | 0 | 0 | 37,600 |
Advances from related parties | 0 | 0 | 49,811 |
Repayment of advances from officer | 0 | -200 | -5,986 |
Proceeds from notes payable | 3,000 | 0 | 15,000 |
Repayment of notes payable | 0 | 0 | -3,000 |
Proceeds from sale of common stock and warrants | 0 | 0 | 205,000 |
Net cash provided by (used in) financing activities | 3,000 | -200 | 298,425 |
Net Change in Cash | -1,830 | -1,553 | 246 |
Cash, Beginning of Period | 2,076 | 1,613 | 0 |
Cash, End of Period | 246 | 60 | 246 |
Supplemental Disclosure of Cash Flows Information | ' | ' | ' |
Interest paid | 0 | 0 | 3,680 |
Income tax paid | 0 | 0 | 0 |
Non-Cash Investing and Financing Activities | ' | ' | ' |
Warrants issued in connection with issuance of convertible debt | 0 | 0 | 2,640 |
Warrants issued for conversion of accrued expenses from officer | 0 | 0 | 37,600 |
Forgiveness of advance from officer | 0 | 0 | 275 |
Common shares issued for conversion of advances from officer | 27,250 | 0 | 52,550 |
Warrants issued for conversion of accounts payable | 0 | 0 | 17,385 |
Common shares issued for conversion of interest payable | $0 | $0 | $720 |
Note_1_Organization_and_Operat
Note 1 - Organization and Operations | 6 Months Ended |
Nov. 30, 2013 | |
Note 1 - Organization And Operations | ' |
Organization and Operations | ' |
Note 1 - Organization and Operations | |
Hydrodynex, Inc. (a development stage company) (“Hydrodynex” or the “Company”) was incorporated on May 12, 2006 under the laws of the State of Nevada for the purpose of the marketing and distribution of AO-System (Anodic Oxidation) water treatment units under an exclusive license agreement for the Territory of North America comprising the United States, Canada and Mexico. | |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended | |||||||||
Nov. 30, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Summary of Significant Accounting Policies | ' | |||||||||
Note 2 - Summary of Significant Accounting Policies | ||||||||||
The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition and results, and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Company’s significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles. | ||||||||||
Basis of Presentation - Unaudited Interim Financial Information | ||||||||||
The unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended May 31, 2013 and notes thereto contained in the information as part of the Company’s Annual Report on Form 10-K filed with the SEC on September 30, 2013. | ||||||||||
Development Stage Company | ||||||||||
The Company is a development stage company as defined by section 915-10-20 of the FASB Accounting Standards Codification. The Company is still devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced. All losses accumulated since inception have been considered as part of the Company’s development stage activities. | ||||||||||
Use of Estimates and Assumptions | ||||||||||
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. | ||||||||||
The Company’s significant estimates and assumptions include the fair value of financial instruments; the carrying value, recoverability and impairment, if any, of long-lived assets, including the values assigned to and the estimated useful lives of office equipment, income tax rate, income tax provision and valuation allowance of deferred tax assets; foreign currency exchange rate and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. | ||||||||||
Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. | ||||||||||
Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, if deemed appropriate, those estimates are adjusted accordingly. | ||||||||||
Actual results could differ from those estimates. | ||||||||||
Fair Value of Financial Instruments | ||||||||||
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: | ||||||||||
Level 1 | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. | |||||||||
Level 2 | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | |||||||||
Level 3 | Pricing inputs that are generally observable inputs and not corroborated by market data. | |||||||||
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. | ||||||||||
The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | ||||||||||
The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses, accounts payable, and license fee payable, approximate their fair values because of the short maturity of these instruments. | ||||||||||
Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. | ||||||||||
Fiscal Year | ||||||||||
The Company elected June 30 as its fiscal year ending date upon formation. | ||||||||||
On December 21, 2012, a board resolution authorized the change of the Company’s fiscal year end date from June 30 to May 31. In connection with the change in its fiscal year end, the Company filed its Transition Report which covered the 11 month period beginning July 1, 2012 and ending May 31, 2013 and the historical activities of the fiscal year ended June 30, 2012. | ||||||||||
Cash Equivalents | ||||||||||
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | ||||||||||
Related Parties | ||||||||||
The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. | ||||||||||
Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. | ||||||||||
The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. | ||||||||||
Commitments and Contingencies | ||||||||||
The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. | ||||||||||
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. | ||||||||||
Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. | ||||||||||
The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | ||||||||||
Revenue Recognition | ||||||||||
The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned less estimated future doubtful accounts. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. | ||||||||||
The Company will derive its revenue from sales contracts with customers with revenues being generated upon the shipment of goods upon the Company commencing operations. Persuasive evidence of an arrangement is demonstrated via invoice, product delivery is evidenced by warehouse shipping log as well as a signed bill of lading from the trucking company or third party carrier and title transfers upon shipment, based on free on board (“FOB”) warehouse; the sales price to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive. | ||||||||||
Foreign Currency Transactions | ||||||||||
The Company applies the guidelines as set out in Section 830-20-35 of the FASB Accounting Standards Codification (Section 830-20-35) for foreign currency transactions. Pursuant to Section 830-20-35 of the FASB Accounting Standards Codification, foreign currency transactions are transactions denominated in a currency other than U.S. Dollar, the Company’s functional currency. Foreign currency transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is a foreign currency transaction gain or loss that generally shall be included in determining net income for the period in which the exchange rate changes. Likewise, a transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later) realized upon settlement of a foreign currency transaction generally shall be included in determining net income for the period in which the transaction is settled. The exceptions to this requirement for inclusion in net income of transaction gains and losses pertain to certain intercompany transactions and to transactions that are designated as, and effective as, economic hedges of net investments and foreign currency commitments. Pursuant to Section 830-20-25 of the FASB Accounting Standards Codification, the following shall apply to all foreign currency transactions of an enterprise and its investees: (a) At the date the transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be measured and recorded in the functional currency of the recording entity by use of the exchange rate in effect at that date as defined in section 830-10-20 of the FASB Accounting Standards Codification; and (b) At each balance sheet date, recorded balances that are denominated in a currency other than the functional currency of the recording entity shall be adjusted to reflect the current exchange rate. | ||||||||||
Stock-Based Compensation for Obtaining Employee Services | ||||||||||
The Company accounts for its stock based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the FASB Accounting Standards Codification. Pursuant to paragraph 718-10-30-6 of the FASB Accounting Standards Codification, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur. If the Company is a newly formed corporation or shares of the Company are thinly traded the use of share prices established in the Company’s most recent private placement memorandum (PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market. | ||||||||||
The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model. The ranges of assumptions for inputs are as follows: | ||||||||||
· | Expected term of share options and similar instruments: The expected life of options and similar instruments represents the period of time the option and/or warrant are expected to be outstanding. Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and employees’ expected exercise and post-vesting employment termination behavior into the fair value (or calculated value) of the instruments. Pursuant to paragraph 718-10-S99-1, it may be appropriate to use the simplified method, i.e., expected term =(vesting term + original contractual term) / 2), if (i) A company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded; (ii) A company significantly changes the terms of its share option grants or the types of employees that receive share option grants such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term; or (iii) A company has or expects to have significant structural changes in its business such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term. The Company uses the simplified method to calculate expected term of share options and similar instruments as the company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. | |||||||||
· | Expected volatility of the entity’s shares and the method used to estimate it. Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index. The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility. If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market. | |||||||||
· | Expected annual rate of quarterly dividends. An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends. The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments. | |||||||||
· | Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments. | |||||||||
The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. | ||||||||||
Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services | ||||||||||
The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”). | ||||||||||
Pursuant to ASC Section 505-50-30, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur. If the Company is a newly formed corporation or shares of the Company are thinly traded the use of share prices established in the Company’s most recent private placement memorandum (PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market. | ||||||||||
The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model. The ranges of assumptions for inputs are as follows: | ||||||||||
· | Expected term of share options and similar instruments: Pursuant to Paragraph 718-10-50-2 of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holder’s expected exercise behavior into the fair value (or calculated value) of the instruments. The Company uses historical data to estimate holder’s expected exercise behavior. If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. | |||||||||
· | Expected volatility of the entity’s shares and the method used to estimate it. Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index. The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility. If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market. | |||||||||
· | Expected annual rate of quarterly dividends. An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends. The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments. | |||||||||
· | Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments. | |||||||||
Pursuant to ASC paragraph 505-50-25-7, if fully vested, non-forfeitable equity instruments are issued at the date the grantor and grantee enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments), then, because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached. A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement is entered into). Whether the corresponding cost is an immediate expense or a prepaid asset (or whether the debit should be characterized as contra-equity under the requirements of paragraph 505-50-45-1) depends on the specific facts and circumstances. Pursuant to ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return for fully vested, non-forfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments). Such an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof) of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in which equity instruments are transferred to other than employees in exchange for goods or services. Section 505-50-30 provides guidance on the determination of the measurement date for transactions that are within the scope of this Subtopic. | ||||||||||
Pursuant to Paragraphs 505-50-25-8 and 505-50-25-9, an entity may grant fully vested, non-forfeitable equity instruments that are exercisable by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee achieves specified performance conditions. Any measured cost of the transaction shall be recognized in the same period(s) and in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a share option and similar instrument that the counterparty has the right to exercise expires unexercised. | ||||||||||
Pursuant to ASC paragraph 505-50-30-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded. | ||||||||||
Income Tax Provision | ||||||||||
The Company follows paragraph 740-10-30-2 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date. | ||||||||||
The Company adopted the provisions of paragraph 740-10-25-13 of the FASB Accounting Standards Codification. Paragraph 740-10-25-13.addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25-13, the Company may recognize the 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 the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13. | ||||||||||
The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances as management deems necessary. | ||||||||||
Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. | ||||||||||
Uncertain Tax Positions | ||||||||||
The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the interim period ended November, 2013 or 2012. | ||||||||||
Net Income (Loss) per Common Share | ||||||||||
Net income (loss) per common share is computed pursuant to paragraph of 260-10-45-10 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through stock options and warrants. | ||||||||||
The following table shows number of potentially outstanding dilutive shares excluded from the diluted net income (loss) per share calculation as they were anti-dilutive: | ||||||||||
Potentially Outstanding Dilutive Common Shares | ||||||||||
For the Interim | For the Interim | |||||||||
Period Ended | Period Ended | |||||||||
30-Nov-13 | 30-Nov-12 | |||||||||
Stock Option Shares | ||||||||||
Stock options issued on June 30, 2008 under the 2006 Plan at $0.25 per share expired on June 30, 2013, five (5) years from the date of issuance, vested upon issuance | - | 70,000 | ||||||||
Warrant Shares | ||||||||||
Warrants issued in connection with the conversion of consulting fees on September 30, 2011 with an exercise price of $0.01 per share and expiring three (3) years from the date of issuance | 752,000 | 752,000 | ||||||||
Warrants issued in connection with the conversion of a vendor payable on September 30, 2011 with an exercise price of $0.01 per share and expiring three (3) years from the date of issuance | 167,700 | 167,700 | ||||||||
Total potentially outstanding dilutive common shares | 919,700 | 989,700 | ||||||||
Cash Flows Reporting | ||||||||||
The Company has adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-24 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. | ||||||||||
Subsequent Events | ||||||||||
The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. | ||||||||||
Recently Issued Accounting Pronouncements | ||||||||||
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." The ASUadds new disclosure requirements for items reclassified out of accumulated other comprehensive income by component and their corresponding effect on net income. The ASU is effective for public entities for fiscal years beginning after December 15, 2013. | ||||||||||
In February 2013, the Financial Accounting Standards Board, or FASB, issued ASU No. 2013-04, "Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date." This ASU addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several arrangements including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. | ||||||||||
In March 2013, the FASB issued ASU No. 2013-05, "Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The guidance outlines the events when cumulative translation adjustments should be released into net income and is intended by FASB to eliminate some disparity in current accounting practice. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. | ||||||||||
In March 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.” The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entity’s inception. The amendments require financial statements prepared using the liquidation basis of accounting to present relevant information about an entity’s expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. The entity should include in its presentation of assets any items it had not previously recognized under U.S. GAAP but that it expects to either sell in liquidation or use in settling liabilities (for example, trademarks). The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. | ||||||||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements |
Note_3_Going_Concern
Note 3 - Going Concern | 6 Months Ended |
Nov. 30, 2013 | |
Note 3 - Going Concern | ' |
Note 3 - Going Concern | ' |
Note 3 – Going Concern | |
The financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. | |
As reflected in the financial statements, the Company had a deficit accumulated during the development stage at November 30, 2013 and had a net loss and net cash used in operating activities for the interim period then ended. These factors raise substantial doubt about the Company’s ability to continue as a going concern. | |
The Company is attempting to commence operations and generate revenue; however, the Company’s cash position may not be sufficient to support the Company’s daily operations. While the Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds. | |
The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. | |
Note_4_Exclusive_Technology_Li
Note 4 - Exclusive Technology License | 6 Months Ended |
Nov. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Note 4 - Exclusive Technology License | ' |
Note 5 – Exclusive Technology License | |
On September 3, 2007 (“Effective Date”), the Company acquired an exclusive technology license (“Agreement”) for the Territory of North America, comprising Canada, the United States and Mexico to manufacture or assemble and market the AO-System water treatment system (AO – Anodic Oxidation) from Hydrosystemtechnik, GmbH (“Grantor”), a German corporation. The Company has agreed to pay a licensing fee as follows: (i) €10,000 (equivalent to $13,635 at September 3, 2007) within 120 days of the Effective Date; (ii) €20,000 (equivalent to $27,270 at September 3, 2007) on November 30, 2008; and (iii) €20,000 (equivalent to $27,270 at September 3, 2007) upon AO-System being certified and approved by the United States Environmental Protection Agency (“EPA”) for selling on a commercial basis in the United States, or €50,000 (equivalent to $68,175 at September 3, 2007) in aggregate, all of which are non-refundable and may be recouped from the future Product Royalty in perpetuity at ten percent (10%) of the Net Selling Price on all AO water treatment systems assembled or manufactured by the Company or a subcontract manufacture utilized by the Company and paid for by customers of the Company due and payable quarterly within 30 days from the last day of the quarter provided the Company exercises its right to manufacture or assemble AO-Systems. In the event the Company does not manufacture or assemble AO-Systems, the Company pays no royalty on finished units purchased from the licensor and resold to customers of the Company, the license fees will no longer be considered prepaid royalties and the Company will amortize prepaid royalties over the remaining legal life of the patent of AO System, or estimated useful life, or the term of the contract, whichever is shorter in the event that the Company decides not to manufacture or assemble AO-System. | |
The Company’s exclusive license right to sell finished AO Units in the territory is contingent upon the Company achieving minimum annual sales volume as defined in Table 1 of Appendix B of this Agreement among other terms and conditions at the end of each business year, beginning with the third (3rd) anniversary after the effective date of this Agreement. In the event the objectives defined in years three (3) through five (5) of Table 1 in Appendix B are not attained at the end of each business year, this agreement shall, at the option of the GRANTOR, automatically revert to a non-exclusive marketing agreement and the Company will no longer have the right in manufacturing or assembling of AO Systems. | |
The Company determined that the (iii) payment required under the exclusive license agreement upon approval of U.S. EPA is a contractual liability instead of contingent liability as the AO system has been certified and approved by the European Union for selling on a commercial basis in Europe and the United States Environmental Protection Agency’s certification and approval for selling on a commercial basis in the United States is a matter of procedure and recorded deferred license fees and related license fees payable of $68,175, €50,000 measured in U.S. Dollar at September 3, 2007, the transaction date upon signing of the Exclusive License Agreement. | |
The Company paid the first installment of €10,000 with $14,892 on December 17, 2007 and the second installment of €20,000 due on November 30, 2008 was paid with $26,486 on January 26, 2009. The due date for the third installment of €20,000 is undeterminable pending on EPA approval. | |
The Company determined that since it is currently unable to secure EPA approval of the AO-System in order to begin selling in the United States within the time period specified in the agreement, the agreement has reverted to a non-exclusive marketing agreement. Consequently, the Company impaired the entire balance of $68,175 of the deferred licensing fee on June 30, 2010. | |
Note_5_Stockholders_Deficit
Note 5 - Stockholders' Deficit | 6 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Note 5 - Stockholders' Deficit | ' | |||||||||||||||||||||||
Note 5 – Stockholders’ Deficit | ||||||||||||||||||||||||
Shares Authorized | ||||||||||||||||||||||||
Upon formation the aggregate number of shares which the Company shall have authority to issue is eighty million (80,000,000) shares, consisting of two classes to be designated, respectively, “Common Stock” and “Preferred Stock,” with all of such shares having a par value of $.001 per share. The total number of shares of Preferred Stock that the Company shall have authority to issue is five million (5,000,000) shares. The total number of shares of Common Stock that the Company shall have authority to issue is seventy five million (75,000,000) shares. | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
The Company was incorporated on May 12, 2006. In May 2006, 200,000 shares of its common stock were sold to the Company’s founder and President at $0.01 per share for $2,000 in cash. | ||||||||||||||||||||||||
During the fiscal year ended June 30, 2007, the Company sold 300,000 shares of its common stock to the Company’s founder and President at $0.01 per share for $3,000 in cash. | ||||||||||||||||||||||||
During the fiscal year ended June 30, 2008, the Company sold 1,000,000 shares of its common stock at $0.10 per share for $100,000 in cash. | ||||||||||||||||||||||||
On November 25, 2008, the Company’s Board of Directors authorized a Regulation D, Rule 504 stock sale and entered into a definitive agreement relating to the private placement of $7,500 of its securities through the sale of 15,000 shares of its common stock at $0.50 per share inclusive of a stock warrant to purchase 15,000 shares of its common stock exercisable at $1.00 expiring three (3) years from the date of issuance with Ryan Edington, the brother of Jerod Edington, the Vice-president and Chief Operating Officer of the Company. The fair value of these warrants granted, estimated on the date of grant, was $3,300, which has been recorded as additional paid-in capital, using the Black-Scholes option-pricing model with the following weighted-average assumptions: | ||||||||||||||||||||||||
Expected option life (year) | 3 | |||||||||||||||||||||||
Expected volatility | 163 | % | ||||||||||||||||||||||
Risk-free interest rate | 3.34 | % | ||||||||||||||||||||||
Dividend yield | 0 | % | ||||||||||||||||||||||
On January 23, 2009, the Company sold 250,000 shares of its common stock at $0.20 per share to Ron Kunisaki, the then president of the company, for $50,000 in cash. | ||||||||||||||||||||||||
On July 25, 2009, pursuant to the Bridge Loan Agreement entered into by an entity and Hydrodynex, Inc., dated July 24, 2008, Triax Capital Management exercised the conversion rights of the promissory note at the agreed rate of $0.25 per share. The original loan to the Company was in the amount of $4,000, and the 365 days of interest at 8% per annum of $320, equates to a conversion value of 17,280 shares. | ||||||||||||||||||||||||
On August 23, 2009, pursuant to the Bridge Loan Agreement entered into by a non-affiliated individual and Hydrodynex, Inc., dated August 22, 2008, the loaner exercised the conversion rights of the promissory note at the agreed rate of $0.25 per share. The original loan to the Company was in the amount of $5,000, and the 365 days of interest at 8% per annum of $400, equates to a conversion value of 21,600 shares. | ||||||||||||||||||||||||
On September 26, 2009, the Company sold 30,000 shares of common stock at $0.25 per share for $7,500 in cash. | ||||||||||||||||||||||||
On November 9, 2009, the Company sold 140,000 shares of common stock at $0.25 per share for $35,000 in cash. | ||||||||||||||||||||||||
On September 30, 2011, the Company converted $16,300 in advances from an officer into 326,000 shares of common stock at $0.05 per share. | ||||||||||||||||||||||||
On September 30, 2011, the Chief Operating Officer of the company forgave a debt of $275 which was recorded as additional paid in capital. | ||||||||||||||||||||||||
On August 30, 2013, two creditors of the Company converted their loans due in the aggregate of $27,250 into common shares of the Company at $0.05 per share. A total of 545,000 shares were issued in exchange for the loans | ||||||||||||||||||||||||
Stock Option Plan | ||||||||||||||||||||||||
On May 19, 2006, the Company’s board of directors approved the adoption of the “2006 Non-Qualified Stock Option and Stock Appreciation Rights Plan” (“2006 Plan”) by unanimous consent. The 2006 Plan was initiated to encourage and enable officers, directors, consultants, advisors and key employees of the Company to acquire and retain a proprietary interest in the Company by ownership of its common stock. A total of 1,000,000 of the authorized shares of the Company’s common stock may be subject to, or issued pursuant to, the terms of the plan. The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. Additionally, the Company’s policy is to issue new shares of common stock to satisfy stock option exercises. | ||||||||||||||||||||||||
There are no outstanding and exercisable stock options as of November 30, 2013: | ||||||||||||||||||||||||
As of November 30, 2013, there were 1,000,000 shares remaining available for issuance under the 2006 Plan. | ||||||||||||||||||||||||
Warrants | ||||||||||||||||||||||||
(i) Warrants issued in 2011 | ||||||||||||||||||||||||
On September 30, 2011, the Company converted $37,600 in accrued expenses - officer into warrants to purchase 752,000 shares of its common stock exercisable at $0.01 per share and expiring three (3) years from the date of issuance. The Company valued these warrants issued at $30,080 on the date of grant using the Black-Scholes Option Pricing Model, and recorded both (i) the fair value of warrants of $30,080 and (ii) the difference between the fair value of warrants and accrued expenses – officer, the forgiveness of debt from officer of $7,520 as additional paid-in capital. | ||||||||||||||||||||||||
On September 30, 2011, the Company converted $8,385 in accounts payable into warrants to purchase 167,700 shares of its common stock exercisable at $0.01 per share, expiring thee (3) years from the date of issuance. The Company valued these warrants issued at $6,708 on the date of grant using the Black-Scholes Option Pricing Model, and recorded (1) the fair value of warrants of $6,708 as additional paid-in capital and (2) the difference between the fair value of warrants and accounts payable of $1,677 forgiveness of debt. | ||||||||||||||||||||||||
The fair value of each warrant grant estimated on the date of grant uses the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||||||||||||||
30-Sep-11 | ||||||||||||||||||||||||
Expected option life (year) | 3 | |||||||||||||||||||||||
Expected volatility | 100 | % | ||||||||||||||||||||||
Risk-free interest rate | 0.42 | % | ||||||||||||||||||||||
Dividend yield | 0 | % | ||||||||||||||||||||||
The table below summarizes the Company’s warrants activity though November 30, 2013: | ||||||||||||||||||||||||
Number of | Exercise Price Range | Weighted | Fair Value at Date of Issuance | Aggregate | ||||||||||||||||||||
Warrant Shares | Per Share | Average Exercise Price | Intrinsic | |||||||||||||||||||||
Value | ||||||||||||||||||||||||
Balance, June 30, 2008 | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Granted | 27,000 | 1 | 1 | 5,940 | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, June 30, 2009 | 27,000 | 1 | 1 | 5,940 | - | |||||||||||||||||||
Granted | - | - | - | - | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, June 30, 2010 | 27,000 | 1 | 1 | 5,940 | - | |||||||||||||||||||
Granted | - | - | - | - | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, June 30, 2011 | 27,000 | 1 | 1 | 5940 | - | |||||||||||||||||||
Granted | 919,700 | 0.01 | 0.01 | 36,788 | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | -27,000 | 1 | 1 | -5,940 | - | |||||||||||||||||||
Balance, June 30, 2012 | 919,700 | $ | 0.01 | $ | 0.01 | $ | 36,788 | $ | - | |||||||||||||||
Granted | - | - | - | - | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, May 31, 2013 | 919,700 | $ | 0.01 | $ | 0.01 | $ | 36,788 | $ | - | |||||||||||||||
Granted | - | - | - | - | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, November 30, 2013 | 919,700 | $ | 0.01 | $ | 0.01 | $ | 36,788 | $ | - | |||||||||||||||
Earned and exercisable, November 30, 2013 | 919,700 | $ | 0.01 | $ | 0.01 | $ | 36,788 | $ | - | |||||||||||||||
Unvested, November 30, 2013 | - | $ | 0.01 | $ | 0.01 | $ | - | $ | - | |||||||||||||||
The following table summarizes information concerning outstanding and exercisable warrants as of August 31, 2013: | ||||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | Number Exercisable | Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | ||||||||||||||||||
$0.01 | 919,700 | 0.83 | $ | 0.01 | 919,700 | 0.83 | $ | 0.01 | ||||||||||||||||
Note_6_Related_Party_Transacti
Note 6 - Related Party Transactions | 6 Months Ended |
Nov. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Note 6 - Related Party Transactions | ' |
Note 6 – Related Party Transactions | |
Advances from Officer | |
On October 11, 2011, the Chief Executive Officer of the Company advanced the Company $2,000 with no interest and an extended maturity date to June 30, 2013. $200 of this advance was paid back on November 9, 2012. | |
On February 17, 2012, a related party of the Company advanced the Company $5,000 with no interest and a maturity date of June 30, 2012, which was subsequently extended to December 31, 2013. | |
On April 3, 2012, the Chief Executive Officer of the Company advanced the Company $10,000 with no interest and an extended maturity date to December 31, 2013. | |
On December 28, 2012, the Chief Executive Officer of the Company advanced the Company $1,000 with no interest and a maturity date of December 31, 2013. | |
On January 22, 2013, $500 was repaid on the advances due to the Chief Executive Officer. | |
On February 12, 2013, the Chief Executive Officer of the Company advanced the Company $2,000 with no interest and a maturity date of December 31, 2013. | |
On May 9, 2013, the Chief Executive Officer of the Company advanced the Company $5,600 with no interest and a maturity date of December 31, 2013. | |
On May 17, 2013, the Chief Executive Officer of the Company advanced the Company $300 with no interest and a maturity date of December 31, 2013. | |
On May 29, 2013, a related party of the Company advanced the Company $2,000 with no interest and a maturity date of December 31, 2013. | |
On August 30, 2013, the Company issued 545,000 unregistered shares of its common stock to its two creditors in exchange for all of the aforementioned outstanding loans in the aggregate of $27,250. There was no accrued interest due. | |
Notes Payable | |
On September 20, 2013, the Chief Executive Officer of the Company advanced the Company $1,000 with no interest and a maturity date of September 20, 2014. | |
On October 23, 2013, the Chief Executive Officer of the Company advanced the Company $2,000 with no interest and a maturity date of October 23, 2014. | |
Free Office Space from Its Stockholder and Chief Operating Officer | |
The Company has been provided office space by its stockholder and Chief Executive Officer at no cost. The management determined that such cost is nominal and did not recognize the rent expense in its financial statements. | |
Note_7_Subsequent_Events
Note 7 - Subsequent Events | 6 Months Ended |
Nov. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Note 7 - Subsequent Events | ' |
Note 7 – Subsequent Events | |
The Company has evaluated all events that occur after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there were no reportable subsequent events to be disclosed. |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |||||||||
Nov. 30, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Basis of Presentation | ' | |||||||||
Basis of Presentation - Unaudited Interim Financial Information | ||||||||||
The unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended May 31, 2013 and notes thereto contained in the information as part of the Company’s Annual Report on Form 10-K filed with the SEC on September 30, 2013. | ||||||||||
Development Stage Company | ' | |||||||||
Development Stage Company | ||||||||||
The Company is a development stage company as defined by section 915-10-20 of the FASB Accounting Standards Codification. The Company is still devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced. All losses accumulated since inception have been considered as part of the Company’s development stage activities. | ||||||||||
Use of Estimates and Assumptions | ' | |||||||||
Use of Estimates and Assumptions | ||||||||||
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. | ||||||||||
The Company’s significant estimates and assumptions include the fair value of financial instruments; the carrying value, recoverability and impairment, if any, of long-lived assets, including the values assigned to and the estimated useful lives of office equipment, income tax rate, income tax provision and valuation allowance of deferred tax assets; foreign currency exchange rate and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. | ||||||||||
Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. | ||||||||||
Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, if deemed appropriate, those estimates are adjusted accordingly. | ||||||||||
Actual results could differ from those estimates. | ||||||||||
Fair Value of Financial Instruments | ' | |||||||||
Fair Value of Financial Instruments | ||||||||||
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: | ||||||||||
Level 1 | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. | |||||||||
Level 2 | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | |||||||||
Level 3 | Pricing inputs that are generally observable inputs and not corroborated by market data. | |||||||||
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. | ||||||||||
The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | ||||||||||
The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses, accounts payable, and license fee payable, approximate their fair values because of the short maturity of these instruments. | ||||||||||
Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. | ||||||||||
Fiscal Year | ' | |||||||||
Fiscal Year | ||||||||||
The Company elected June 30 as its fiscal year ending date upon formation. | ||||||||||
On December 21, 2012, a board resolution authorized to change its fiscal year from June 30 to May 31. In connection with the change in fiscal year, the Company is filing this Transition Report and the accompanying financial statements which cover the 11 month period beginning July 1, 2012 and ending May 31, 2013 and the historical activities of the year ended June 30, 2012. The Company’s next fiscal year will cover the period from June 1, 2013 through May 31, 2014. | ||||||||||
Cash Equivalents | ' | |||||||||
Cash Equivalents | ||||||||||
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | ||||||||||
Related Parties | ' | |||||||||
Related Parties | ||||||||||
The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. | ||||||||||
Pursuant to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. | ||||||||||
The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. | ||||||||||
Commitments and Contingencies | ' | |||||||||
Commitments and Contingencies | ||||||||||
The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. | ||||||||||
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. | ||||||||||
Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. | ||||||||||
The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | ||||||||||
Revenue Recognition | ' | |||||||||
Revenue Recognition | ||||||||||
The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned less estimated future doubtful accounts. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. | ||||||||||
The Company will derive its revenue from sales contracts with customers with revenues being generated upon the shipment of goods upon the Company commencing operations. Persuasive evidence of an arrangement is demonstrated via invoice, product delivery is evidenced by warehouse shipping log as well as a signed bill of lading from the trucking company or third party carrier and title transfers upon shipment, based on free on board (“FOB”) warehouse; the sales price to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive. | ||||||||||
Foreign Currency Transactions | ' | |||||||||
Foreign Currency Transactions | ||||||||||
The Company applies the guidelines as set out in Section 830-20-35 of the FASB Accounting Standards Codification (Section 830-20-35) for foreign currency transactions. Pursuant to Section 830-20-35 of the FASB Accounting Standards Codification, foreign currency transactions are transactions denominated in a currency other than U.S. Dollar, the Company’s functional currency. Foreign currency transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is a foreign currency transaction gain or loss that generally shall be included in determining net income for the period in which the exchange rate changes. Likewise, a transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later) realized upon settlement of a foreign currency transaction generally shall be included in determining net income for the period in which the transaction is settled. The exceptions to this requirement for inclusion in net income of transaction gains and losses pertain to certain intercompany transactions and to transactions that are designated as, and effective as, economic hedges of net investments and foreign currency commitments. Pursuant to Section 830-20-25 of the FASB Accounting Standards Codification, the following shall apply to all foreign currency transactions of an enterprise and its investees: (a) At the date the transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be measured and recorded in the functional currency of the recording entity by use of the exchange rate in effect at that date as defined in section 830-10-20 of the FASB Accounting Standards Codification; and (b) At each balance sheet date, recorded balances that are denominated in a currency other than the functional currency of the recording entity shall be adjusted to reflect the current exchange rate. | ||||||||||
Stock-Based Compensation for Obtaining Employee Services | ' | |||||||||
Stock-Based Compensation for Obtaining Employee Services | ||||||||||
The Company accounts for its stock based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the FASB Accounting Standards Codification. Pursuant to paragraph 718-10-30-6 of the FASB Accounting Standards Codification, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur. If the Company is a newly formed corporation or shares of the Company are thinly traded the use of share prices established in the Company’s most recent private placement memorandum (PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market. | ||||||||||
The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model. The ranges of assumptions for inputs are as follows: | ||||||||||
- Expected term of share options and similar instruments: The expected life of options and similar instruments represents the period of time the option and/or warrant are expected to be outstanding. Pursuant to Paragraph 718-10-50-2(f)(2)(i) of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and employees’ expected exercise and post-vesting employment termination behavior into the fair value (or calculated value) of the instruments. Pursuant to paragraph 718-50-S99-1, it may be appropriate to use the simplified method, if (i) A company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded; (ii) A company significantly changes the terms of its share option grants or the types of employees that receive share option grants such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term; or (iii) A company has or expects to have significant structural changes in its business such that its historical exercise data may no longer provide a reasonable basis upon which to estimate expected term. The Company uses the simplified method to calculate expected term of share options and similar instruments as the company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. | ||||||||||
- Expected volatility of the entity’s shares and the method used to estimate it. Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index. The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility. If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market. | ||||||||||
- Expected annual rate of quarterly dividends. An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends. The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments. | ||||||||||
- Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments. | ||||||||||
The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. | ||||||||||
Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services | ' | |||||||||
Equity Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services | ||||||||||
The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance of Sub-topic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”). | ||||||||||
Pursuant to ASC Section 505-50-30, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur. If the Company is a newly formed corporation or shares of the Company are thinly traded the use of share prices established in the Company’s most recent private placement memorandum (PPM”), or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market. | ||||||||||
The fair value of share options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation model. The ranges of assumptions for inputs are as follows: | ||||||||||
- Expected term of share options and similar instruments: Pursuant to Paragraph 718-10-50-2 of the FASB Accounting Standards Codification the expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration of the contractual term of the instruments and holder’s expected exercise behavior into the fair value (or calculated value) of the instruments. The Company uses historical data to estimate holder’s expected exercise behavior. If the Company is a newly formed corporation or shares of the Company are thinly traded the contractual term of the share options and similar instruments is used as the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. | ||||||||||
- Expected volatility of the entity’s shares and the method used to estimate it. Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii) a thinly-traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the Company to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index. The Company uses the average historical volatility of the comparable companies over the expected contractual life of the share options or similar instruments as its expected volatility. If shares of a company are thinly traded the use of weekly or monthly price observations would generally be more appropriate than the use of daily price observations as the volatility calculation using daily observations for such shares could be artificially inflated due to a larger spread between the bid and asked quotes and lack of consistent trading in the market. | ||||||||||
- Expected annual rate of quarterly dividends. An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends. The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the share options and similar instruments. | ||||||||||
- Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used. | ||||||||||
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the share options and similar instruments. | ||||||||||
Pursuant to ASC paragraph 505-50-25-7, if fully vested, non-forfeitable equity instruments are issued at the date the grantor and grantee enter into an agreement for goods or services (no specific performance is required by the grantee to retain those equity instruments), then, because of the elimination of any obligation on the part of the counterparty to earn the equity instruments, a measurement date has been reached. A grantor shall recognize the equity instruments when they are issued (in most cases, when the agreement is entered into). Whether the corresponding cost is an immediate expense or a prepaid asset (or whether the debit should be characterized as contra-equity under the requirements of paragraph 505-50-45-1) depends on the specific facts and circumstances. Pursuant to ASC paragraph 505-50-45-1, a grantor may conclude that an asset (other than a note or a receivable) has been received in return for fully vested, non-forfeitable equity instruments that are issued at the date the grantor and grantee enter into an agreement for goods or services (and no specific performance is required by the grantee in order to retain those equity instruments). Such an asset shall not be displayed as contra-equity by the grantor of the equity instruments. The transferability (or lack thereof) of the equity instruments shall not affect the balance sheet display of the asset. This guidance is limited to transactions in which equity instruments are transferred to other than employees in exchange for goods or services. Section 505-50-30 provides guidance on the determination of the measurement date for transactions that are within the scope of this Subtopic. | ||||||||||
Pursuant to Paragraphs 505-50-25-8 and 505-50-25-9, an entity may grant fully vested, non-forfeitable equity instruments that are exercisable by the grantee only after a specified period of time if the terms of the agreement provide for earlier exercisability if the grantee achieves specified performance conditions. Any measured cost of the transaction shall be recognized in the same period(s) and in the same manner as if the entity had paid cash for the goods or services or used cash rebates as a sales discount instead of paying with, or using, the equity instruments. A recognized asset, expense, or sales discount shall not be reversed if a share option and similar instrument that the counterparty has the right to exercise expires unexercised. | ||||||||||
Pursuant to ASC paragraph 505-50-30-S99-1, if the Company receives a right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments are treated as unissued for accounting purposes until the future services are received (that is, the instruments are not considered issued until they vest). Consequently, there would be no recognition at the measurement date and no entry should be recorded. | ||||||||||
Income Tax Provision | ' | |||||||||
Income Tax Provision | ||||||||||
The Company follows paragraph 740-10-30-2 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date. | ||||||||||
The Company adopted the provisions of paragraph 740-10-25-13 of the FASB Accounting Standards Codification. Paragraph 740-10-25-13.addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25-13, the Company may recognize the 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 the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13. | ||||||||||
The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances as management deems necessary. | ||||||||||
Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. | ||||||||||
Uncertain Tax Positions | ' | |||||||||
Uncertain Tax Positions | ||||||||||
The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the interim period ended November 30, 2013 or 2012. | ||||||||||
Net Income (Loss) Per Common Share | ' | |||||||||
Net Income (Loss) per Common Share | ||||||||||
Net income (loss) per common share is computed pursuant to paragraph of 260-10-45-10 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through stock options and warrants. | ||||||||||
The following table shows number of potentially outstanding dilutive shares excluded from the diluted net income (loss) per share calculation as they were anti-dilutive: | ||||||||||
Potentially Outstanding Dilutive Common Shares | ||||||||||
For the Interim | For the Interim | |||||||||
Period Ended | Period Ended | |||||||||
30-Nov-13 | 30-Nov-12 | |||||||||
Stock Option Shares | ||||||||||
Stock options issued on June 30, 2008 under the 2006 Plan at $0.25 per share expired on June 30, 2013, five (5) years from the date of issuance, vested upon issuance | - | 70,000 | ||||||||
Warrant Shares | ||||||||||
Warrants issued in connection with the conversion of consulting fees on September 30, 2011 with an exercise price of $0.01 per share and expiring three (3) years from the date of issuance | 752,000 | 752,000 | ||||||||
Warrants issued in connection with the conversion of a vendor payable on September 30, 2011 with an exercise price of $0.01 per share and expiring three (3) years from the date of issuance | 167,700 | 167,700 | ||||||||
Total potentially outstanding dilutive common shares | 919,700 | 989,700 | ||||||||
Cash Flows Reporting | ' | |||||||||
Cash Flows Reporting | ||||||||||
The Company has adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-24 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. | ||||||||||
Subsequent Events | ' | |||||||||
Subsequent Events | ||||||||||
The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. | ||||||||||
Recently Issued Accounting Pronouncements | ' | |||||||||
Recently Issued Accounting Pronouncements | ||||||||||
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." The ASUadds new disclosure requirements for items reclassified out of accumulated other comprehensive income by component and their corresponding effect on net income. The ASU is effective for public entities for fiscal years beginning after December 15, 2013. | ||||||||||
In February 2013, the Financial Accounting Standards Board, or FASB, issued ASU No. 2013-04, "Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date." This ASU addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several arrangements including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. | ||||||||||
In March 2013, the FASB issued ASU No. 2013-05, "Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The guidance outlines the events when cumulative translation adjustments should be released into net income and is intended by FASB to eliminate some disparity in current accounting practice. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. | ||||||||||
In March 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.” The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entity’s inception. The amendments require financial statements prepared using the liquidation basis of accounting to present relevant information about an entity’s expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. The entity should include in its presentation of assets any items it had not previously recognized under U.S. GAAP but that it expects to either sell in liquidation or use in settling liabilities (for example, trademarks). The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. | ||||||||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements | ||||||||||
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 11 Months Ended | |||||||||
31-May-13 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Potentially Outstanding Dilutive Shares Excluded From the Diluted Net Income (Loss) Per Share Calculation | ' | |||||||||
Potentially Outstanding Dilutive Common Shares | ||||||||||
For the Interim | For the Interim | |||||||||
Period Ended | Period Ended | |||||||||
31-Aug-13 | 31-Aug-12 | |||||||||
Stock Option Shares | ||||||||||
Stock options issued on June 30, 2008 under the 2006 Plan at $0.25 per share expired on June 30, 2013, five (5) years from the date of issuance, vested upon issuance | - | 70,000 | ||||||||
Warrant Shares | ||||||||||
Warrants issued in connection with the conversion of consulting fees on September 30, 2011 with an exercise price of $0.01 per share and expiring three (3) years from the date of issuance | 752,000 | 752,000 | ||||||||
Warrants issued in connection with the conversion of a vendor payable on September 30, 2011 with an exercise price of $0.01 per share and expiring three (3) years from the date of issuance | 167,700 | 167,700 | ||||||||
Total potentially outstanding dilutive common shares | 919,700 | 989,700 |
Note_5_Stockholders_Deficit_Ta
Note 5 - Stockholders' Deficit (Tables) | 6 Months Ended | |||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Fair Value Assumptions for Warrant Grants | ' | |||||||||||||||||||||||
25-Nov-08 | ||||||||||||||||||||||||
Expected option life (year) | 3 | |||||||||||||||||||||||
Expected volatility | 163 | % | ||||||||||||||||||||||
Risk-free interest rate | 3.34 | % | ||||||||||||||||||||||
Dividend yield | 0 | % | ||||||||||||||||||||||
30-Sep-11 | ||||||||||||||||||||||||
Expected option life (year) | 3 | |||||||||||||||||||||||
Expected volatility | 100 | % | ||||||||||||||||||||||
Risk-free interest rate | 0.42 | % | ||||||||||||||||||||||
Dividend yield | 0 | % | ||||||||||||||||||||||
Warrant Activity | ' | |||||||||||||||||||||||
Number of | Exercise Price Range | Weighted | Fair Value at Date of Issuance | Aggregate | ||||||||||||||||||||
Warrant Shares | Per Share | Average Exercise Price | Intrinsic | |||||||||||||||||||||
Value | ||||||||||||||||||||||||
Balance, June 30, 2008 | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Granted | 27,000 | 1 | 1 | 5,940 | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, June 30, 2009 | 27,000 | 1 | 1 | 5,940 | - | |||||||||||||||||||
Granted | - | - | - | - | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, June 30, 2010 | 27,000 | 1 | 1 | 5,940 | - | |||||||||||||||||||
Granted | - | - | - | - | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, June 30, 2011 | 27,000 | 1 | 1 | 5940 | - | |||||||||||||||||||
Granted | 919,700 | 0.01 | 0.01 | 36,788 | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | -27,000 | 1 | 1 | -5,940 | - | |||||||||||||||||||
Balance, June 30, 2012 | 919,700 | $ | 0.01 | $ | 0.01 | $ | 36,788 | $ | - | |||||||||||||||
Granted | - | - | - | - | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, May 31, 2013 | 919,700 | $ | 0.01 | $ | 0.01 | $ | 36,788 | $ | - | |||||||||||||||
Granted | - | - | - | - | - | |||||||||||||||||||
Canceled | - | - | - | - | - | |||||||||||||||||||
Exercised | - | - | - | - | - | |||||||||||||||||||
Expired | - | - | - | - | - | |||||||||||||||||||
Balance, August 31, 2013 | 919,700 | $ | 0.01 | $ | 0.01 | $ | 36,788 | $ | - | |||||||||||||||
Earned and exercisable, August 31, 2013 | 919,700 | $ | 0.01 | $ | 0.01 | $ | 36,788 | $ | - | |||||||||||||||
Unvested, August 31, 2013 | - | $ | 0.01 | $ | 0.01 | $ | - | $ | - | |||||||||||||||
Schedule Of Warrants Outstanding and Exercisable | ' | |||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | Number Exercisable | Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | ||||||||||||||||||
$0.01 | 919,700 | 1.08 | $ | 0.01 | 919,700 | 1.08 | $ | 0.01 | ||||||||||||||||
Note_2_Potentially_Outstanding
Note 2 - Potentially Outstanding Dilutive Shares Excluded From Diluted Net Income (Loss) Per Share (Details) | 6 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Number of Potentially Outstanding Dilutive Shares | ' | ' |
Stock options issued on June 30, 2008 under the 2006 Plan at $0.25 per share expired on June 30, 2013, five (5) years from the date of issuance, vested upon issuance | 0 | 70,000 |
Warrants issued in connection with the conversion of consulting fees on September 30, 2011 with an exercise price of $0.01 per share and expiring three (3) years from the date of issuance | 752,000 | 752,000 |
Warrants issued in connection with the conversion of a vendor payable on September 30, 2011 with an exercise price of $0.01 per share and expiring three (3) years from the date of issuance | 167,000 | 167,700 |
Total potentially outstanding dilutive common shares | 919,700 | 989,700 |
Note_2_Potentially_Outstanding1
Note 2 - Potentially Outstanding Dilutive Shares Excluded From Diluted Net Income (Loss) Per Share (Details) (Parenthetical) (USD $) | Sep. 30, 2011 |
Notes to Financial Statements | ' |
Warrants exercise price per share, instant | $0.01 |
Warrants expiration period, instant | '3 years |
Note_4_Exclusive_Technology_Li1
Note 4 - Exclusive Technology License (Details Narrative) | Jun. 30, 2010 | Jan. 26, 2009 | Jan. 26, 2009 | Dec. 17, 2007 | Dec. 17, 2007 | Sep. 03, 2007 | Sep. 03, 2007 |
USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' |
License fee #1 due | ' | ' | ' | ' | ' | ' | € 10,000 |
US dollar equivalent for license fee #1 due | ' | ' | ' | ' | ' | 13,635 | ' |
License fee due within period | ' | ' | ' | ' | ' | '120 days | '120 days |
License fee #2 due | ' | ' | ' | ' | ' | ' | 20,000 |
US dollar equivalent for license fee #2 due | ' | ' | ' | ' | ' | 27,270 | ' |
License fee #3 due | ' | ' | ' | ' | ' | ' | 20,000 |
US dollar equivalent for license fee #3 due | ' | ' | ' | ' | ' | 27,270 | ' |
Total license fee due | ' | ' | ' | ' | ' | ' | 50,000 |
US dollar equivalent for total license fee due | ' | ' | ' | ' | ' | 68,175 | ' |
Royalty due to Grantor on net selling price | ' | ' | ' | ' | ' | 10.00% | 10.00% |
Royalty due within certain period after quater end | ' | ' | ' | ' | ' | '30 days | '30 days |
License fee #1 paid | ' | ' | ' | ' | 10,000 | ' | ' |
US dollar equivalent for license fee #1 paid | ' | ' | ' | 14,892 | ' | ' | ' |
License fee #2 paid | ' | ' | 20,000 | ' | ' | ' | ' |
US dollar equivalent for license fee #2 paid | ' | 26,486 | ' | ' | ' | ' | ' |
Deferred licensing fees impaired | $68,175 | ' | ' | ' | ' | ' | ' |
Note_5_Stockholders_Deficit_Fa
Note 5 - Stockholders' Deficit - Fair Value Assumptions for Warrant Grants (Details) | Sep. 30, 2011 | Nov. 25, 2008 |
Equity [Abstract] | ' | ' |
Expected option life (year) | '3 years | '3 years |
Expected volatility | 100.00% | 163.00% |
Risk-free interest rate | 0.42% | 3.34% |
Dividend yield | 0.00% | 0.00% |
Note_5_Stockholders_Deficit_Wa
Note 5 - Stockholders' Deficit - Warrant Activity (Details) (USD $) | Jul. 24, 2008 | Nov. 30, 3013 | Nov. 30, 2013 | Nov. 30, 2013 | 31-May-13 | Jun. 30, 2011 | Jun. 30, 2010 | Jun. 30, 2009 | Jun. 30, 2008 | Nov. 30, 2013 | 31-May-13 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2010 | Jun. 30, 2009 | Nov. 30, 2013 | 31-May-13 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2010 | Jun. 30, 2009 | Nov. 30, 2013 | 31-May-13 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2010 | Jun. 30, 2009 | Nov. 30, 2013 | 31-May-13 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2010 | Jun. 30, 2009 | Jun. 30, 2012 |
Unvested | Earned and Exercisable | Balance | Balance | Balance | Balance | Balance | Balance | Granted | Granted | Granted | Granted | Granted | Granted | Canceled | Canceled | Canceled | Canceled | Canceled | Canceled | Exercised | Exercised | Exercised | Exercised | Exercised | Exercised | Expired | Expired | Expired | Expired | Expired | Expired | Balance | ||
Number of Warrant Shares, instant | ' | 0 | 919,700 | 919,700 | 919,700 | 27,000 | 27,000 | 27,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 919,700 |
Number of Warrant Shares, duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 919,700 | 0 | 0 | 27,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -27,000 | 0 | 0 | 0 | ' |
Exercise Price Range Per Share, instant | ' | $0.01 | $0.01 | $0.01 | $0.01 | $1 | $1 | $1 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 |
Exercise Price Range Per Share, duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0.01 | $0 | $0 | $1 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1 | $0 | $0 | $0 | ' |
Weighted Average Exercise Price, instant | ' | $0.01 | $0.01 | $0.01 | $0.01 | $1 | $1 | $1 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 |
Weighted Average Exercise Price, duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0.01 | $0 | $0 | $1 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1 | $0 | $0 | $0 | ' |
Fair Value at Date of Issuance, instant | $2,640 | $0 | $36,788 | $36,788 | $36,788 | $5,940 | $5,940 | $5,940 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $36,788 |
Fair Value at Date of Issuance, duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 36,788 | 0 | 0 | 5,940 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5,940 | 0 | 0 | 0 | ' |
Aggregate Intrinsic Value, instant | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Aggregate Intrinsic Value, duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ' |
Note_6_Stockholders_Deficit_Sc
Note 6 - Stockholders' Deficit - Schedule Of Warrants Outstanding and Exercisable (Details) (USD $) | Nov. 30, 2013 |
Equity [Abstract] | ' |
Warrants - Range of Exercise Prices | $0.01 |
Warrants - Number Outstanding | 919,700 |
Warrants Outstanding - Average Remaining Contractual Life (in years) | '9 months |
Warrants Outstanding - Weighted Average Exercise Price | $0.01 |
Warrants - Number Exercisable | 919,700 |
Warrants Exercisable - Average Remaining Contractual Life (in years) | '9 months |
Warrants Exercisable - Weighted Average Exercise Price | $0.01 |
Note_5_Stockholders_Deficit_De
Note 5 - Stockholders' Deficit (Details Narrative) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 91 Months Ended | ||||||||||||||
31-May-06 | Nov. 30, 2013 | Nov. 30, 2012 | Jun. 30, 2008 | Jun. 30, 2007 | Nov. 30, 2013 | Aug. 30, 2013 | 31-May-13 | Sep. 30, 2011 | Nov. 09, 2009 | Sep. 26, 2009 | Aug. 23, 2009 | Jul. 25, 2009 | Jan. 23, 2009 | Nov. 25, 2008 | Aug. 22, 2008 | Jul. 24, 2008 | 19-May-06 | |
Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares authorized | ' | 5,000,000 | ' | ' | ' | 5,000,000 | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares authorized | ' | 75,000,000 | ' | ' | ' | 75,000,000 | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued to affiliate for cash, instant | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,000 | 30,000 | ' | ' | 250,000 | ' | ' | ' | ' |
Shares issued to affiliate for cash, duration | 200,000 | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price per share of shares issued to affiliate, instant | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | $0.25 | ' | ' | $0.20 | ' | ' | ' | ' |
Price per share of shares issued to affiliate, duration | $0.01 | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for affiliate shares, instant | ' | ' | ' | ' | ' | ' | ' | ' | ' | $35,000 | $7,500 | ' | ' | $50,000 | ' | ' | ' | ' |
Cash paid for affiliate shares, duration | 2,000 | ' | ' | ' | 3,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued for cash, duration | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price per share of common stock issued, duration | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for common stock, duration | ' | 0 | 0 | 100,000 | ' | 205,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for common stock, instant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500 | ' | ' | ' |
Common shares issued for cash, instant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' |
Price per share of common stock issued, instant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | ' | ' | ' |
Warrant shares issued with common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' |
Warrant shares exercise price | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant expiration period | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300 | ' | ' | ' |
Conversion of loan to common stock, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | $0.25 | ' | ' | ' | ' | ' |
Convertible loan due by company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | 4,000 | ' |
Days of interest accrued on convertible loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '365 days | '365 days | ' | ' | ' | ' | ' |
Interest rate of convertible loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | 8.00% | ' |
Interest due on convertible loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400 | 320 | ' | ' | ' | ' | ' |
Principal and interest of convertible loan converted to common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,600 | 17,280 | ' | ' | ' | ' | ' |
Debt converted to shares by affiliate | ' | ' | ' | ' | ' | ' | ' | ' | 16,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued to affiliate for debt | ' | ' | ' | ' | ' | ' | ' | ' | 326,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt converted to shares by affiliate, price per share | ' | ' | ' | ' | ' | ' | $0.05 | ' | $0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt forgiven by affiliate | ' | ' | ' | ' | ' | ' | ' | ' | 275 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized stock option shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 |
Stock option shares available | ' | 930,000 | ' | ' | ' | 930,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,640 | ' |
Accrued interest converted into warrants | ' | ' | ' | ' | ' | ' | ' | ' | 37,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of affiliate warrants issued | ' | ' | ' | ' | ' | ' | ' | ' | 30,080 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of affiliate warrants recorded as additional paid-in capital | ' | ' | ' | ' | ' | ' | ' | ' | 30,080 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forgiveness of affiliate debt recorded as addition paid-in capital | ' | ' | ' | ' | ' | ' | ' | ' | 7,520 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vendor payable converted to warrants | ' | ' | ' | ' | ' | ' | ' | ' | 8,385 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants issued for vendor payable | ' | ' | ' | ' | ' | ' | ' | ' | 6,708 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants recorded as additional paid in capital | ' | ' | ' | ' | ' | ' | ' | ' | 6,708 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forgiveness of vendor payable debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,677 | ' | ' | ' | ' | ' | ' |
Debt converted to shares by creditor | ' | ' | ' | ' | ' | ' | $27,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued to creditor for debt | ' | ' | ' | ' | ' | ' | 545,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_6_Related_Party_Transacti1
Note 6 - Related Party Transactions (Details Narrative) (USD $) | Oct. 23, 2013 | Aug. 30, 2013 | 29-May-13 | 17-May-13 | 9-May-13 | Feb. 12, 2013 | Jan. 22, 2013 | Dec. 28, 2012 | Nov. 09, 2012 | Apr. 03, 2012 | Feb. 17, 2012 | Oct. 11, 2011 |
Related Party Transactions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan due to affiliate | $2,000 | $1,000 | ' | $300 | $5,500 | $2,000 | ' | $1,000 | ' | $10,000 | ' | $2,000 |
Interest rate of loan due to affiliate | 0.00% | 0.00% | ' | ' | 0.00% | 0.00% | ' | 0.00% | ' | 0.00% | ' | 0.00% |
Loan due to related party | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' |
Interest rate of loan due to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' |
Loan repayment to affiliate | ' | ' | ' | ' | ' | ' | $500 | ' | $200 | ' | ' | ' |
Maturity date of loan | 23-Oct-14 | 20-Sep-14 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | ' | 31-Dec-13 | ' | 31-Dec-13 | 31-Dec-13 | 30-Jun-13 |
Note_7_Subsequent_Events_Detai
Note 7 - Subsequent Events (Details Narrative) (USD $) | Oct. 23, 2013 | Aug. 30, 2013 | 29-May-13 | 17-May-13 | 9-May-13 | Feb. 12, 2013 | Dec. 28, 2012 | Apr. 03, 2012 | Feb. 17, 2012 | Oct. 11, 2011 |
Subsequent Events [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan due to affiliate | $2,000 | $1,000 | ' | $300 | $5,500 | $2,000 | $1,000 | $10,000 | ' | $2,000 |
Interest rate of loan due to affiliate | 0.00% | 0.00% | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | ' | 0.00% |
Maturity date of loan | 23-Oct-14 | 20-Sep-14 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 30-Jun-13 |