Background Information | 12 Months Ended |
Feb. 28, 2013 |
Background Information [Abstract] | ' |
Background Information | ' |
1. Background Information |
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On The Move Systems Corp., a Florida corporation ("we", "us", "our", "OMVS", or the "Company"), was formed to provide mobile electronic services to automobile, recreational vehicle and boat dealerships, government agencies as well as individual consumers. The Company installs its inventoried after market electronic products desired by the customer at their location. The Company was incorporated on March 25, 2010 with its corporate headquarters located in Tampa, Florida. |
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On March 25, 2011, Crawford Mobile Installation Corp. ("CMIC"), a wholly owned subsidiary of the Company acquired all of the assets and assumed certain liabilities of Crawford Mobile Install ("CMI"). The assets of CMI included cash, inventory, a vehicle and installation equipment. On the date of the acquisition, a material relationship existed between the parties, because John Crawford was the sole officer and director of both the Company and CMIC as well as being the sole proprietor of CMI. The purchase price for the assets and liabilities of CMI was $100,000. |
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Restatement |
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On June 11, 2014, the Company determined that due to an error in accounting for our acquisition of Crawford Mobile Install ("CMI"), the Company's consolidated financial statements as of and for the years ended February 28, 2013 and February 29, 2012 should no longer be relied upon. The purpose of this restatement is to correct the accounting for our acquisition of Crawford Mobile Install ("CMI"). In the Original Filing, the acquisition of CMI was accounted for as an acquisition of a business. However, since John Crawford was our CEO at the time of the acquisition and also owned all of CMI, the acquisition should have been accounted for as a business acquired from an entity under common control according to ASC 805-50-30. We had originally recognized intangible assets and goodwill as a result of the acquisition of CMI. According to ASC 805-50-30, neither should have been recognized. As a result of the restatement, goodwill in the amount of $108,724 and intangible assets in the amount of $20,000 have be removed from assets. In addition, we recognized a loss on the acquisition of CMI in the amount of $128,724. |
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The Company as a result restated the consolidated financial statements as of and for the years ended February 28, 2013 and February 29, 2012. |
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On The Move Systems Corp. |
RESTATED CONSOLIDATED BALANCE SHEETS |
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| 28-Feb-13 | |
| As originally | | Adjustments | | | As Restated | |
reported |
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ASSETS | | | | | | | | | |
Total current assets | $ | 44,522 | | | | | $ | 44,522 | |
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Fixed assets, net of accumulated depreciation of $26,871 | | 32,625 | | | | | | 32,625 | |
Intangible assets, net of accumulated amortization of $7,667 | | 12,333 | | (12,333 | ) | -1 | | - | |
Goodwill | | 54,724 | | (54,724 | ) | -1 | | - | |
TOTAL ASSETS | $ | 144,204 | | | | | $ | 77,147 | |
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LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | | |
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TOTAL LIABILITIES | | 761,852 | | | | | | 761,852 | |
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Stockholders' Deficit: | | | | | | | | | |
Preferred stock; $0.0001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding | | - | | | | | | - | |
Common stock: 100,000,000 authorized; $0.0001 par value 18,500,000 shares issued and outstanding | | 1,850 | | | | | | 1,850 | |
Additional paid-in capital | | 3,877,150 | | | | | | 3,877,150 | |
Accumulated deficit | | (4,496,648 | ) | (67,057 | ) | -2 | | (4,563,705 | ) |
TOTAL STOCKHOLDERS' DEFICIT | | (617,648 | ) | | | | | (684,705 | ) |
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TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 144,204 | | | | | $ | 77,147 | |
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| 29-Feb-12 | |
| As originally | | Adjustments | | | As Restated | |
reported |
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ASSETS | | | | | | | | | |
Total current assets | $ | 41,527 | | | | | $ | 41,527 | |
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Fixed assets, net of accumulated depreciation of $21,657 | | 37,839 | | | | | | 37,839 | |
Intangible assets, net of accumulated amortization of $3,667 | | 16,333 | | (16,333 | ) | -1 | | - | |
Goodwill | | 108,724 | | (108,724 | ) | -1 | | - | |
TOTAL ASSETS | $ | 204,423 | | | | | $ | 79,366 | |
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LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | | |
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TOTAL LIABILITIES | | 448,895 | | | | | | 448,895 | |
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Stockholders' Deficit: | | | | | | | | | |
Preferred stock; $0.0001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding | | - | | - | | | | - | |
Common stock: 100,000,000 authorized; $0.0001 par value 18,500,000 shares issued and outstanding | | 1,850 | | - | | | | 1,850 | |
Additional paid-in capital | | 3,877,150 | | - | | | | 3,877,150 | |
Accumulated deficit | | (4,123,472 | ) | (125,057 | ) | -3 | | (4,248,529 | ) |
TOTAL STOCKHOLDERS' DEFICIT | | (244,472 | ) | | | | | (369,529 | ) |
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TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 204,423 | | | | | $ | 79,366 | |
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On The Move Systems Corp. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
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| Year Ended February 28, 2013 | | |
| As originally | | Adjustments | | As Restated | | |
reported | |
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GROSS PROFIT | $ | 44,215 | | | | | 44,215 | | |
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Selling, general and administrative expense | | 352,793 | | (4,000 | ) (4) | | 348,793 | | |
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LOSS FROM OPERATIONS | | (308,578 | ) | | | | (304,578 | ) | |
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OTHER EXPENSE: | | | | | | | | | |
Impairment of goodwill | | (54,000 | ) | 54,000 | (5) | | - | | |
Interest expense | | (10,598 | ) | | | | (10,598 | ) | |
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Net loss | $ | (373,176 | ) | | | $ | (315,176 | ) | |
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Net loss per share - basic and fully diluted | $ | (0.02 | ) | | | $ | (0.02 | ) | |
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Weighted average number of common shares outstanding- | | 18,500,000 | | | | | 18,500,000 | | |
basic and fully diluted | |
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| Year Ended February 29, 2012 | | |
| As originally | | Adjustments | | As Restated | | |
reported | |
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GROSS PROFIT | $ | 39,852 | | | | $ | 39,852 | | |
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Selling, general and administrative expense | | 4,113,886 | | (3,667 | ) (4) | | 4,110,219 | | |
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LOSS FROM OPERATIONS | | (4,074,034 | ) | | | | (4,070,367 | ) | |
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OTHER EXPENSE: | | | | | | | | | |
Loss on acquisition of Crawford Mobile Install | | - | | (128,724 | ) (4) | | (128,724 | ) | |
Interest expense | | (14,373 | ) | | | | (14,373 | ) | |
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Net loss | $ | (4,088,407 | ) | | | $ | (4,213,464 | ) | |
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Net loss per share - basic and fully diluted | $ | (0.27 | ) | | | $ | (0.28 | ) | |
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Weighted average number of common shares outstanding- | | 14,987,705 | | | | | 14,987,705 | | |
basic and fully diluted | |
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Adjustments to consolidated financial statements: |
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-1 | Remove intangible assets and goodwill from the consolidated balance sheets. | | | | | | | | |
-2 | Loss on acquisition of CMI for the year ended February 29, 2012 in the amount of $128,724 offset by the reversal of the impairment of goodwill in the amount of $54,000 and amortization of intangibles of $7,667. | | | | | | | | |
-3 | Loss on acquisition of CMI in the amount of $128,724 offset by the reversal of the amortization of intangibles of $3,667. | | | | | | | | |
-4 | Reverse amortization of intangible assets. | | | | | | | | |
-5 | Reverse impairment of goodwill | | | | | | | | |
-6 | Recognize loss on acquisition of CMI. | | | | | | | | |