| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS
OF PRESENTATION The
accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America for interim financial information and with Article 8 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by accounting principles generally accepted in the United States of America for annual
financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for
a fair presentation, have been included, operating results for the six months ended June 30, 2021 are not necessarily indicative of the
results that may be expected for the year ending December 31, 2021 or any other period. For further information, refer to the financial
statements and footnotes thereto, included in the Company’s Annual Report on Form 10-K for the year ending December 31, 2020, filed
with the SEC on April 15, 2021. USE
OF ESTIMATES The
preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management
to make estimates and assumptions which affect the reporting of assets and liabilities as of the dates of the financial statements and
revenues and expenses during the reporting period. These estimates primarily relate to the sales recognition, allowance for doubtful
accounts, inventory obsolescence and asset valuations. Actual results could differ from these estimates. Management’s estimates
and assumptions are reviewed periodically, and the effects of revisions are reflected in the unaudited condensed consolidated financial
statements in the periods they are determined to be necessary. FAIR
VALUE OF FINANCIAL INSTRUMENTS Generally
Accepted Accounting Principles (“GAAP”) requires certain disclosures regarding the fair value of financial instruments. The
fair value of financial instruments is made as of a specific point in time, based on relevant information about financial markets and
specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment,
they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. GAAP
defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required
or permitted to be recorded at fair value, the Company considers the principal, or most advantageous market in which it would transact,
and it considers assumptions that market participants would use when pricing the asset or liability. GAAP
establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the degree of
subjectivity that is necessary to estimate the fair value of a financial instrument. GAAP establishes three levels of inputs that may
be used to measure fair value: Level
1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level
2 – Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are
observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical
assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations
in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level
3 – Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant
to the measurement of the fair value of the assets or liabilities. As
of June 30, 2021 and December 31, 2020, the Company did not have any Level 2 or Level 3 financial instruments. NEW
ACCOUNTING PRONOUNCEMENTS In
August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06,
Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s
Own Equity (Subtopic 815-40) There
are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific
industries and are not expected to a have a material impact on the Company’s financial position, results of operations or cash flows. CASH
AND CASH EQUIVALENTS The
Company considers highly liquid investments with original maturities of three months or less when purchased as cash equivalents. The
Company had no cash equivalents as of June 30, 2021 and December 31, 2020. At times throughout the year, the Company might maintain bank
balances that may exceed Federal Deposit Insurance Corporation insured limits. Periodically, the Company evaluates the credit worthiness
of the financial institutions, and has not experienced any losses in such accounts. At June 30, 2021 and December 31, 2020, the Company
had $0 over the insurable limit. CONVERTIBLE
INSTRUMENTS The
Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards
for FASB Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging Professional
standards generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments
and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic
characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and
risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is
not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported
in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered
a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional
as defined under professional standards as “The Meaning of Conventional Convertible Debt Instrument”. The
Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from
their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion
Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records,
when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon
the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective
conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their
earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded
in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the note
transaction and the effective conversion price embedded in the note. ASC
815 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement,
then the contract shall be classified as an asset or a liability. INCOME
TAXES The
Company is deemed a corporation and thus is a taxable entity. No provision for income taxes was reflected in the accompanying unaudited
condensed consolidated financial statements, as the Company had minimal revenue through through June 30, 2021. There were no uncertain
tax positions that would require recognition in the unaudited condensed consolidated financial statements through June 30, 2021. Generally,
federal, state and local authorities may examine the Company’s tax returns for three years from the date of filing, and the current
and prior three years remain subject to examination as of December 31, 2020. The
Company’s conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing
analyses of tax laws, regulations and interpretations thereof as well as other factors. The
Company accounts for income taxes under ASC 740-10-30, Income Taxes VALUATION OF INTANGIBLE ASSETS The Company assesses intangible assets for potential
impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to
recover the carrying amount of the asset. In evaluating intangible assets for impairment, the Company first assesses qualitative factors
to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit
is less than its carrying amount. If the Company concludes that it is not more likely than not that the fair value of a reporting unit
is less than its carrying value, then no further testing of the intangible assets assigned to the reporting unit is required. However,
if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then
the Company will perform a two-step intangible assets impairment test to identify potential intangible assets impairment and measure the
amount of intangible assets impairment to be recognized, if any. In the first step of the review process, the Company
compares the estimated fair value of the reporting unit with its carrying value. If the estimated fair value of the reporting unit exceeds
its carrying amount, no further analysis is needed. If the estimated fair value of the reporting unit is less than its carrying amount,
the Company proceeds to the second step of the review process to calculate the implied fair value of the reporting unit intangible assets
in order to determine whether any impairment is required. The Company calculates the implied fair value of the reporting unit intangible
assets by allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit as if the
reporting unit had been acquired in a business combination. If the carrying value of the reporting unit's intangible assets exceeds the
implied fair value of the intangible assets, the Company recognizes an impairment loss for that excess amount. In allocating the estimated
fair value of the reporting unit to all of the assets and liabilities of the reporting unit, the Company uses industry and market data,
as well as knowledge of the industry and the Company’s past experiences. The
Company bases its calculation of the estimated fair value of a reporting unit on the income approach. For the income approach, the Company
uses internally developed discounted cash flow models that include, among others, the following assumptions: projections of revenues
and expenses and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new
units; and estimated discount rates. The Company bases these assumptions on its historical data and experience, third-party appraisals,
industry projections, micro and macro general economic condition projections, and its expectations. The Company had no intangible assets impairment charges
for the six months ended June 30, 2021, and as of the date of each of the most recent detailed tests, the estimated fair value of each
of its reporting units exceeded its' respective carrying amount by more than 100% based on its models and assumptions. RECOGNITION
OF REVENUE The
Company recognizes revenue under ASC 606, Revenue from Contracts with Customers ASC
606 prescribes a five step process to achieve its core principle. The Company recognizes revenue from product sales as follows:
I. Identify
the contract with the customer.
II. Identify
the contractual performance obligations.
III. Determine
the amount of consideration/price for the transaction.
IV. Allocate
the determined amount of consideration/price to the contractual obligations.
V. Recognize
revenue when or as the performing party satisfies performance obligations. The
consideration/price for the transaction (performance obligation(s)) is determined as per the invoice for the products. The
Company derives its revenue from sale of gaming products and from fees earned for the use of its online lottery number selecting application.
The Company recognizes revenue from product sales only when there is persuasive evidence of an arrangement, delivery has occurred, the
sale price is determinable and collectability is reasonably assured and from fees as paid for in an online transaction. STOCK
BASED COMPENSATION The
Company follows FASB ASC 718, Compensation – Stock Compensation, which prescribes accounting and reporting standards for all share-based
payment transactions. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments
such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees and non-employees, including
grants of employee stock options, are recognized as compensation expense in the unaudited condensed consolidated financial statements
based on their fair values. That expense is recognized over the period during which an employee or non-employee is required to provide
services in exchange for the award, known as the requisite service period (usually the vesting period). For
the six months ended June 30, 2021 and 2020, the Company had no stock based compensation. |
