Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Nov. 30, 2014 | Dec. 30, 2014 | |
Document And Entity Information | ||
Entity Registrant Name | FIRST LEVEL ENTERTAINMENT GROUP, INC. | |
Entity Central Index Key | 1503227 | |
Document Type | 10-Q | |
Document Period End Date | 30-Nov-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -23 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 37,000,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONSOLIDATED_BALANCE_SHEETS_un
CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Nov. 30, 2014 | Aug. 31, 2014 |
CURRENT ASSETS: | ||
Cash and equivalents | $39,158 | $319 |
Total Current Assets | 39,158 | 319 |
CURRENT LIABILITIES: | ||
Accounts payable | 162,500 | 222,989 |
Accrued expenses | 235,083 | 202,263 |
Advance from related parties | 99,738 | |
Notes payable | 22,000 | 70,000 |
Total Current Liabilities | 519,321 | 495,252 |
STOCKHOLDERS' DEFICIT: | ||
Preferred Stock, par value $.001; 10,000,000 shares authorized; 0 issued and outstanding at November 30, 2014 and August 31, 2014 | ||
Common stock , par value $.001; 500,000,000 shares authorized; 37,000,000 shares issued as of November 30, 2014 and 36,000,000 shares issued as of August 31, 2014 | 37,000 | 36,000 |
Additional paid in capital | 1,923,000 | 1,744,000 |
Accumulated deficit | -2,440,163 | -2,274,933 |
Total Stockholders' Deficit | -480,163 | -494,933 |
Total Liabilities and Stockholders' Deficit | $39,158 | $319 |
CONSOLIDATED_BALANCE_SHEETS_un1
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Nov. 30, 2014 | Aug. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 37,000,000 | 36,000,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $) | 3 Months Ended | |
Nov. 30, 2014 | Nov. 30, 2013 | |
Income Statement [Abstract] | ||
Revenue | ||
Operating Expenses: | ||
Advertising and Marketing | 29,697 | |
Legal and Accounting | 37,971 | 6,550 |
Consulting and Software Development | 68,760 | 132,500 |
General and Administrative | 28,232 | 2,225 |
Total Operating Expenses | 164,660 | 141,275 |
Operating Loss | -164,660 | -141,275 |
Other Income(expense) | ||
Interest Expense | -570 | |
Total Other Income(Expense) | -570 | |
Net loss before Income Taxes | -165,230 | -141,275 |
Provision for Income Taxes | ||
Net loss | ($165,230) | ($141,275) |
Basic and diluted net loss per common share (in dollars per share) | $0 | $0 |
Basic and diluted weighted average number of common shares outstanding (in shares) | 36,536,481 | 30,013,187 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 3 Months Ended | |
Nov. 30, 2014 | Nov. 30, 2013 | |
OPERATING ACTIVITIES: | ||
Net loss | ($165,230) | ($141,275) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Expenses paid on behalf of the company | 34,042 | 34,825 |
Stock issued for services | 18,000 | 30,000 |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued expenses | -27,669 | 76,450 |
Net cash used in operating activities | -140,857 | |
INVESTING ACTIVITIES: | ||
FINANCING ACTIVITIES: | ||
Payments on notes payable | -48,000 | |
Cash increase due to related party notes payable | 115,500 | |
Payments on related party debt | -15,004 | |
Issuance of common stock for cash | 127,200 | |
Net cash provided by financing activities | 179,696 | |
NET INCREASE IN CASH | 38,839 | |
CASH BEGINNING BALANCE | 319 | 253 |
CASH ENDING BALANCE | 39,158 | 253 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Taxes paid | ||
Interest paid | ||
NON-CASH TRANSACTIONS AFFECTING OPERATING, INVESTING AND FINANCING ACTIVITIES: | ||
Stock issued for debt | $34,800 |
NATURE_OF_OPERATIONS_AND_BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 3 Months Ended |
Nov. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION |
First Level Entertainment Group, Inc. (“the Company”), formerly known as Sound Kitchen Entertainment Group, Inc., commenced operations in February 1, 2012 and has incurred losses totaling $2,440,163. The Company was incorporated on June 2, 2008 in the State of Florida and established a fiscal year end of August 31. The Company is in the entertainment business presently focusing on mobile applications. The Company has the following wholly-owned subsidiaries: i) Mobile Sonars Inc.; ii) Am I There Inc.; iii) Message Attic Corp; VIP Wink Corp. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Nov. 30, 2014 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of the Company and the notes thereto have been prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The August 31, 2014 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited financial statements and the notes thereto that are included in the Company’s Annual Report on form 10-K for the year ended August 31, 2014 filed with the SEC on December 12, 2014. | |
The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended August 31, 2014. The quarterly information presented should be read in conjunction with the annual report filed on Form 10-K with the Securities and Exchange Commission. | |
Principles of Consolidation | |
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions within the Company and subsidiary have been eliminated upon consolidation. | |
Use of Estimates and Assumptions | |
Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. | |
Cash and Cash Equivalents | |
For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. | |
Income Taxes | |
The Company follows the liability method of accounting for income taxes in accordance with ASC Topic 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment. | |
Revenue and Cost Recognition | |
The Company has no current source of revenue. The Company recognizes revenue based on Account Standards Codification (“ASC”) 605 “Revenue Recognition” which contains Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements’ and No. 104, “Revenue Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, shipment has occurred, price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Revenues transacted from on-line platforms are recognized at the point of sale. Cost of sales includes any labor cost and the amortization of intellectual property. | |
Basic and Diluted Net Loss per Common Share | |
Basic loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the weighted average number of common shares during the period. Diluted loss per share is calculated by dividing the Company’s net loss available to common stockholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of November 30, 2014 or 2013 which were excluded from the calculation of diluted loss per common share as their effect would have been anti-dilutive. | |
Recently Issued Accounting Pronouncements | |
In June 2014, the FASB issued ASU 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. The guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from U.S. GAAP for development or exploration stage entities, primarily presentation of inception to date financial information. The provisions of the amendments are effective for annual reporting periods beginning after December 15, 2014, and the interim periods therein. However, early adoption is permitted. Accordingly, the Company has adopted this standard as of August 31, 2014. |
GOING_CONCERN
GOING CONCERN | 3 Months Ended |
Nov. 30, 2014 | |
GOING CONCERN [Abstract] | |
GOING CONCERN | NOTE 3 – GOING CONCERN |
The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company does not have material assets, nor does it have operations or a source of revenue sufficient to cover its operation costs and allow it to continue as a going concern. The Company has a deficit accumulated since inception (June 2, 2008) through November 30, 2014 of $2,440,163. The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan. There can be no assurance that the Company will be successful in either situation in order to continue as a going concern. The Company has funded its initial operations, from inception to November 30, 2014, by way of issuing common shares and advances from related parties. As of November 30, 2014, the Company had issued 37,000,000 (post stock-split) common shares. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Nov. 30, 2014 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 4 – RELATED PARTY TRANSACTIONS |
As of August 31, 2013 the Company owed $50,000 to related parties for operating expenses paid on the Company’s behalf. During the year ended August 31, 2014 this related party advanced $38,250 to the company and paid for $148,234 of additional operating expenses on the Company’s behalf. The Company paid $36,250 in cash against the outstanding payable and paid 320,000 shares of common stock at $0.025 per share in settlement of $8,000 of the outstanding payable and 580,000 shares of common stock at $0.18 per share in settlement of $104,400 leaving an ending balance due of $-0-. All related party balances bear no interest and are due on demand. | |
During the three months ended November 30, 2014, this related party advanced $115,500 to the company and paid $34,042 of additional operating expenses on the Company’s behalf. The Company paid $15,004 in cash against the outstanding payable and paid 193,336 shares of common stock at $0.18 per share in settlement of $34,800 of the outstanding payable. At the end of the period the balance owed to this related party was $99,738. |
STOCKHOLDERS_DEFICIT
STOCKHOLDERS' DEFICIT | 3 Months Ended |
Nov. 30, 2014 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' DEFICIT | NOTE 5 – STOCKHOLDERS’ DEFICIT |
On May 31, 2013 the Company authorized a 3:1 Reverse Stock Split the financial statements have been retroactively adjusted to reflect the stock split. From inception (June 2, 2008) through November 30, 2014, the Company has not granted any stock options and warrants. | |
During the three months ended November 30, 2014, the Company issued 1,000,000 shares of common stock valued at $0.18 per share. The company received $127,200 of cash, $18,000 in services, and issued stock of $34,800 for settlement of advances from a related party. |
NOTES_PAYABLE
NOTES PAYABLE | 3 Months Ended |
Nov. 30, 2014 | |
Notes Payable [Abstract] | |
NOTE PAYABLE | NOTE 6 – NOTES PAYABLE |
On April 10, 2014, the Company entered into a note agreement with an unrelated third party to borrow a maximum amount of $150,000 (determined from time to time as advances are made) having a stated interest rate of six (6) percent and is convertible into common shares at fair market value at the discretion of the note holder both principal and interest are due April 10, 2015 and can be prepaid without penalty. At November 2014, the principal balance of the note outstanding was $22,000 with accrued interest of $570. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Nov. 30, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 7 – SUBSEQUENT EVENTS |
We have evaluated events and transactions that occurred subsequent to November 30, 2014 through the date of this report, the date the consolidated financial statements were issued, for potential recognition or disclosure in the accompanying consolidated financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Nov. 30, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements of the Company and the notes thereto have been prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The August 31, 2014 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited financial statements and the notes thereto that are included in the Company’s Annual Report on form 10-K for the year ended August 31, 2014 filed with the SEC on December 12, 2014. | |
The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended August 31, 2014. The quarterly information presented should be read in conjunction with the annual report filed on Form 10-K with the Securities and Exchange Commission. | |
Principles of Consolidation | Principles of Consolidation |
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions within the Company and subsidiary have been eliminated upon consolidation. | |
Use of Estimates and Assumptions | Use of Estimates and Assumptions |
Preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. | |
Income Taxes | Income Taxes |
The Company follows the liability method of accounting for income taxes in accordance with ASC Topic 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment. | |
Revenue and Cost Recognition | Revenue and Cost Recognition |
The Company has no current source of revenue. The Company recognizes revenue based on Account Standards Codification (“ASC”) 605 “Revenue Recognition” which contains Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements’ and No. 104, “Revenue Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, shipment has occurred, price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Revenues transacted from on-line platforms are recognized at the point of sale. Cost of sales includes any labor cost and the amortization of intellectual property. | |
Basic and Diluted Net Loss per Common Share | Basic and Diluted Net Loss per Common Share |
Basic loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the weighted average number of common shares during the period. Diluted loss per share is calculated by dividing the Company’s net loss available to common stockholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of November 30, 2014 or 2013 which were excluded from the calculation of diluted loss per common share as their effect would have been anti-dilutive. | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
In June 2014, the FASB issued ASU 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. The guidance eliminates the definition of a development stage entity thereby removing the incremental financial reporting requirements from U.S. GAAP for development or exploration stage entities, primarily presentation of inception to date financial information. The provisions of the amendments are effective for annual reporting periods beginning after December 15, 2014, and the interim periods therein. However, early adoption is permitted. Accordingly, the Company has adopted this standard as of August 31, 2014. |
GOING_CONCERN_Details_Narrativ
GOING CONCERN (Details Narrative) (USD $) | Nov. 30, 2014 | Aug. 31, 2014 |
Going Concern Details Narrative | ||
Accumulated deficit | $2,440,163 | $2,274,933 |
Common shares issued (post stock-split) | 37,000,000 | 36,000,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Advances from related parties | $99,738 | $50,000 | |
Cash increase due to related notes payable | 115,500 | 38,250 | |
Operating expenses paid by related party | 34,042 | 148,234 | |
Payments on related party debt | 15,004 | 36,250 | |
Common stock issued for debt (in shares) | 193,336 | 320,000 | |
Share price (in dollars per share) | 0.18 | 0.025 | |
Common stock issued for debt, value | 34,800 | 8,000 | |
Common stock issued for debt | $580,000 | ||
Share price (in dollars per share) | $0.18 | ||
Common stock issued for debt (in shares) | 104,400 |
STOCKHOLDERS_DEFICIT_Details_N
STOCKHOLDERS' DEFICIT (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2014 | Aug. 31, 2014 | |
Equity [Abstract] | ||
Description of reverse stock split | The Company authorized a 3:1 Reverse Stock Split the financial statements have been retroactively adjusted to reflect the stock split. | |
Common stock issued for cash (in shares) | 1,000,000 | |
Shares issued price per share | $0.18 | |
Common stock issued for cash | $127,200 | |
Common stock issued for services | 18,000 | |
Common stock issued for debt, value | $34,800 | $8,000 |
NOTES_PAYABLE_Details_Narrativ
NOTES PAYABLE (Details Narrative) (Unrelated third party [Member], USD $) | 3 Months Ended |
Nov. 30, 2014 | |
Unrelated third party [Member] | |
Date of agreement for convertible debt | 10-Apr-14 |
Convertible debt | $150,000 |
Percentage of interest (in percent) | 6.00% |
Maturity date of convertible debt | 10-Apr-15 |
Note payable - unrelated party | 22,000 |
Accrued interest on note outstanding | $570 |