| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation The
consolidated financial statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities
and Exchange Commission ("SEC"). The consolidated financial statements have been prepared using the accrual basis of accounting
in accordance with Generally Accepted Accounting Principles ("GAAP") of the United States. Principles
of Consolidation The
consolidated financial statements include the accounts and transactions of the Company and its wholly owned subsidiary, Sunalpha
Green Technologies Private Limited. All significant inter-company accounts and transactions are eliminated in consolidation. Reclassification For
the fiscal year ending March 31, 2018 certain accounts have been reclassified to conform to the current year's presentation. Such
reclassification had no impact on net loss or total assets. Use
of Estimates The
preparation of financial statements in US GAAP requires management to make estimates and assumptions that affect the amounts reported
in the financial statements and footnotes thereto, those estimates, and assumptions affect the reported amounts assets, liabilities
and disclosure of contingent assets and liabilities and revenue. Actual results could differ significantly from those estimates.
Our
significant estimates include elements of revenue recognition, the realization of deferred tax assets, amounts that may be due
under the tax sharing agreement, impairment of long-lived assets, costs to be capitalized as well as the useful life of capitalized
software, and contingent liabilities, including taxes related to hotel occupancy. Actual amounts may differ from these estimates.
The use of different estimates or assumptions in determining the fair value of our goodwill, indefinite-lived and definite-lived
intangible assets may result in different values for these assets, which could result in an impairment or, in the period in which
an impairment is recognized, could result in a materially different impairment charge. The Company has no impairment charge for
the fiscal year ending March 31, 2019. Revenue
Recognition In
May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“Topic 606”): Topic 606 which supersedes
nearly all existing revenue recognition guidance under GAAP. The core principle of Topic 606 is to recognize revenues when promised
goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for
those goods or services. Topic 606 defines a five-step process to achieve this core principle and, in doing so, it is possible
more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP, including
identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction
price and allocating the transaction price to each separate performance obligation, among others. Topic 606 also provides guidance
on the recognition of costs related to obtaining customer contracts. Topic
606 was effective as of April 1, 2018, for the Company, using either of two methods: (1) retrospective application of Topic 606
to each prior reporting period presented with the option to elect certain practical expedients as defined within Topic 606 or
(2) retrospective application of Topic 606 with the cumulative effect of initially applying Topic 606 recognized at the date of
initial application and providing certain additional disclosures as defined per Topic 606. We adopted Topic 606 pursuant to the
method (2) and we determined that any cumulative effect for the initial application did not require an adjustment to accumulated
deficit at April 1, 2018. For revenue recognition arrangements that
we determine are within the scope of Topic 606, we perform the following five steps: (i) identify the contract(s) with a customer,
(ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction
price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance
obligation. We only apply the five-step model to arrangements that meet the definition of a contract under Topic 606, including
when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it
transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we evaluate
the goods or services promised within each contract related performance obligation and assess whether each promised good or service
is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance
obligation when (or as) the performance obligation is satisfied. Air
Ticketing Vacation
Packages. Rail
Ticketing Money
Transfer Other
Revenue. Cash
and Cash Equivalents The
Company maintains its cash in bank deposit accounts in India and USA, Indian bank accounts are not insured. The Company has not
experienced any losses in such accounts. The Company maintains cash balances, which may exceed federally insured limits. Sunalpha
has thirteen and eleven accounts denominated in Indian Rupees at March 31, 2019 and 2018, respectively. As of March 31, 2019,
and 2018, the cash balance in financial institutions in India was USD $303,971 and $478,254, respectively. Accounts
Receivable Accounts
receivable are stated at the amount’s management expects to collect. An allowance for doubtful accounts is recorded, as
a charge to bad debt expense, where collection is doubtful due to credit issues. These allowances together reflect the Company's
estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its
customers. Management has determined the bad debt allowance of $58,507 for the fiscal year ended March 31, 2019 with no bad debt
allowance for the fiscal year ended March 31, 2018. The Company does not accrue interest on past due receivables. The
Company performs periodic analysis of each customer’s outstanding accounts receivable balance and assesses, on an account-by-account
basis, whether the allowance for doubtful accounts needs to be adjusted based on currently available evidence such as historical
collection experience, current economic trends and changes in customer payment terms. In accordance with the Company’s policy,
if collection efforts have been pursued and all reasonable and contractually available avenues for collections exhausted, accounts
receivable would be written off as uncollectible. The Company does use estimate to use a general reserve methodology when estimating
the level of allowance for doubtful accounts because the Company believes, due to the unique circumstances of each customer and
a limited number of customers, a general reserve methodology would not provide a reasonable estimate of potentially uncollectible
accounts. Property
and Equipment Property
and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed on a straight-line
basis over the estimated useful lives of the assets. The Company charges repairs and maintenance costs that do not extend the
lives of the assets to expense as incurred. Intangible
Assets Intangible
assets with definite useful lives are tested for impairment at least annually for their recoverability. We do not have any intangible
assets with indefinite lives. Intangible assets that have limited useful lives are amortized on a straight-line basis over their
useful lives. Impairment
of Long-lived Assets The Company records an impairment of long-lived assets used in
operations, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to
be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value
of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. The Company
did not record any impairment during the years ended March 31, 2019 and recorded $696,949 impairment charge for the fiscal year
ended March 31, 2018. Foreign
Currency Translation The
Company translates the foreign currency of its foreign subsidiary, whose functional currency is Indian rupee, into US Dollars,
the reporting currency using the year or reporting period end or average exchange rates in accordance with the requirements of
ASC subtopic 830, Foreign Currency Matters (“ASC 830”). Assets and liabilities are translated at exchange
rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented.
The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’
equity (deficit). Earnings
and Loss per Share Basic
earnings (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average
common shares outstanding for the period. Potentially dilutive common shares may consist of incremental shares issuable upon the
exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has
been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. Promotion
and Advertising Expense We
incur advertising expense consisting of offline costs, including newspaper and media advertising, and online advertising expense
to promote our brands. We expense the production costs associated with advertisements in the period in which the advertisement
first takes place. We expense the costs of communicating the advertisement (e.g., newspaper, SMS or email campaign) as incurred
each time the advertisement or promotion is performed. Stock-Based
Compensation The
Company accounts for stock-based awards to employees and nonemployee consultants in accordance with applicable accounting principles,
which requires compensation expense related to share-based transactions, including employee stock options, to be measured and
recognized in the financial statements based on a determination of the fair value of the stock options over the instruments vesting
period. Leases Leases
of assets where the Company has assumed substantially all the risks and rewards of ownership are classified as finance leases.
Finance leases are recognized at the lower of the fair value of the leased assets and the present value of the minimum lease payments. Income
Taxes The
Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets
and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under
this method, the Company has determined the deferred tax assets and liabilities based on the differences between the financial
statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are
expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the
period that includes the enactment date. The
Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized.
In making such a determination, the Company considers all available evidence, including future reversals of existing taxable temporary
differences, projected future taxable income, tax-planning strategies, and results of operations. If the Company determines that
it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment
to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. Recent
Accounting Pronouncements New
Accounting Pronouncements Recently Adopted We adopted
Revenue Recognition - Revenue from Contracts with Customers (ASU 2014-09) for the fiscal year ended March 31, 2019, which
amends the guidance in former ASC 605, Revenue Recognition and found no significant impact on the revenue recognition. In
March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting.” This update addresses several aspects of the accounting for share-based compensation transactions including:
(a) income tax consequences when awards vest or are settled, (b) classification of awards as either equity or liabilities, (c)
a policy election to account for forfeitures as they occur rather than on an estimated basis and (d) classification of excess
tax impacts on the statement of cash flows. The Company adopted this guidance in the first quarter of its fiscal year ended March
31, 2019, which did not have a material impact on the consolidated financial statements and related disclosures. The amendments
requiring recognition of excess tax benefits and tax deficiencies in the income statement will be applied prospectively. New
Accounting Pronouncements Not Yet Adopted In
February 2016, the FASB issued ASU No. 2016-02, "Leases” to increase transparency and comparability among organizations
by recognizing lease assets and lease liabilities on the balance sheet with a corresponding liability and disclosing key information
about leasing arrangements. For public business entities, the amendments in this ASU are effective for fiscal years beginning
after December 15, 2018, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company
is evaluating the impact of the adoption of this revised guidance on its consolidated financial statements and related disclosures. In
October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory”,
which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when
the transfer occurs. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning
after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted.
The amendments in this ASU should be adopted on a modified retrospective basis. The Company reviewing adoption and its impact
of this guidance on its consolidated financial statements and related disclosures. In
October 2016, the FASB issued ASU No. 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are
under Common Control”. The amendments affect reporting entities that are required to evaluate whether they should consolidate
a variable interest entity in certain situations involving entities under common control. Specifically, the amendments change
the evaluation of whether a reporting entity is the primary beneficiary of a variable interest entity by changing how a reporting
entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related
parties that are under common control with the reporting entity. As of fiscal year, ending March 31, 2019 and 2018 we have no
variable interest entity under common control with the reporting entity. In
January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies
the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or
disposals) of assets or businesses. In
January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment".
The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment
test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying
amount. The new rules will be effective for the Company in the first quarter of 2021. Early adoption is permitted. The Company
is currently evaluating the impact of adopting this ASU on its consolidated financial statements. In
June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for non-employee share-based payment transactions.
The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services
to be used or consumed in a grantor's own operations by issuing share-based payment awards. The standard will be effective
in the first quarter of fiscal year 2019, although early adoption is permitted. Management believes the effect on the consolidated
financial statements will not be material. No
other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact
on the Company's present or future consolidated financial statements. |
