Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2015 | Jan. 14, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | FIRST LEVEL ENTERTAINMENT GROUP, INC. | |
Entity Central Index Key | 1,503,227 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 40,000,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) | Nov. 30, 2015 | Aug. 31, 2015 |
CURRENT ASSETS: | ||
Cash and equivalents | $ 43 | $ 227 |
Total Current Assets | 43 | 227 |
Total Assets | 43 | 227 |
CURRENT LIABILITIES: | ||
Accounts payable | 137,500 | 137,500 |
Accrued expenses | 214,250 | 179,750 |
Advance related parties | 250,798 | 249,061 |
Total Current Liabilities | $ 602,548 | $ 566,311 |
STOCKHOLDERS' DEFICIT: | ||
Preferred Stock, par value $.001; 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, par value $.001; 500,000,000 shares authorized; 40,000,000 and 40,000,000 shares issued and outstanding as of November 30, 2015 and August 31, 2015, respectively | $ 40,000 | $ 40,000 |
Additional paid in capital | 2,460,000 | 2,460,000 |
Accumulated deficit | (3,102,505) | (3,066,084) |
Total Stockholders' Deficit | (602,505) | (566,084) |
Total Liabilities and Stockholders' Deficit | $ 43 | $ 227 |
CONSOLIDATED BALANCE SHEETS (u3
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Nov. 30, 2015 | Aug. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ .001 | $ .001 |
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 (in dollars per share) | $ .001 | $ .001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 40,000,000 | 40,000,000 |
Common stock, shares outstanding | 40,000,000 | 40,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Income Statement [Abstract] | ||
Revenue | ||
Operating Expenses: | ||
Advertising and Marketing | $ 29,697 | |
Legal and Accounting | $ 4,500 | 37,971 |
Consulting and Software Development | 30,000 | 68,760 |
General and Administrative | 1,921 | 28,232 |
Total Operating Expenses | 36,421 | 164,660 |
Operating Loss | $ (36,421) | (164,660) |
Other Income (Expense) | ||
Interest Expense | (570) | |
Total Other Income (Expense) | (570) | |
Net loss before Income Taxes | $ (36,421) | $ (165,230) |
Provision for Income Taxes | ||
Net loss | $ (36,421) | $ (165,230) |
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) | 40,000,000 | 36,536,481 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (36,421) | $ (165,230) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Expenses paid by related party on behalf of the company | $ 1,737 | 34,042 |
Common stock issued for services | $ 18,000 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses | ||
Accounts payable and accrued expenses | $ 34,500 | $ (27,669) |
Net cash used in operating activities | $ (184) | $ (140,857) |
INVESTING ACTIVITIES: | ||
FINANCING ACTIVITIES: | ||
Increase/(decrease) in notes payable | $ (48,000) | |
Proceeds from related party advances | 115,500 | |
Payments on related party debt | (15,004) | |
Proceeds from issuance of common stock | 127,200 | |
Net cash provided by financing activities | 179,696 | |
NET INCREASE IN CASH | $ (184) | 38,839 |
CASH BEGINNING BALANCE | 227 | 319 |
CASH ENDING BALANCE | $ 43 | $ 39,158 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Taxes paid | ||
Interest paid | ||
NON-CASH TRANSACTIONS AFFECTING OPERATING, INVESTING AND FINANCING ACTIVITIES: | ||
Common stock issued for forgiveness of debt | $ 34,800 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 3 Months Ended |
Nov. 30, 2015 | |
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. 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 ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Nov. 30, 2015 | |
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, 2015 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 Companys Annual Report on Form 10-K for the year ended August 31, 2015 filed with the SEC on December 15, 2015. 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, 2015. 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. Website Development Costs The Company accounts for website development costs in accordance with Accounting Standards Codification 350-50 Website Development Costs. Accordingly, all costs incurred in the planning stage are expensed as incurred, costs incurred in the website application and infrastructure development stage that meet specific criteria are expensed and costs incurred in the day to day operation of the website are expensed as incurred. Long-lived assets The Company reviews long-lived assets and certain identifiable intangibles held and used for possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating the fair value and future benefits of its intangible assets, management performs an analysis of the anticipated undiscounted future net cash flow of the individual assets over the remaining amortization period. The Company recognizes an impairment loss if the carrying value of the asset exceeds the expected future cash flows. On January 10, 2015 the Company entered into an agreement to purchase intellectual property from Riptide Software Inc. for $258,000. In February 2015, the Company recognized an impairment of $258,000 of this intangible assets. 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 Basic and Diluted Net Loss per Common Share Basic loss per share is calculated by dividing the Companys 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 Companys 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, 2015 or 2014 which were excluded from the calculation of diluted loss per common share as their effect would have been anti-dilutive. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Nov. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3 GOING CONCERN The Companys 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, 2015 of ($3,102,505). 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, 2015, by way of issuing common shares and advances from related parties. As of November 30, 2015, the Company had issued 40,000,000 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, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 4 RELATED PARTY TRANSACTIONS As of August 31, 2015 the Company owed $249,061 to related party (an officer and majority shareholder) for operating expenses paid on the Companys behalf. During the year ended August 31, 2015 this related party advanced $249,061 to the company and paid for $99,015 of additional operating expenses on the Companys behalf. All related party balances bear no interest and are due on demand . During the three months ended November 30, 2015, this related party advanced balance was $250,798 and paid $1,737 of additional operating expenses on the Companys behalf. At the end of the period the balance owed to this related party was $250,798. As of November 31, 2015 the Company accrued professional fees of $4,500. |
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICIT | 3 Months Ended |
Nov. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' DEFICIT | NOTE 5 STOCKHOLDERS DEFICIT On May 31, 2013 the Company authorized a 3:1 reverse stock split the consolidated financial statements have been retroactively adjusted to reflect the stock split. From inception (June 2, 2008) through November 30, 2015, the Company has not granted any stock options and warrants. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Nov. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 6 SUBSEQUENT EVENTS We have evaluated events and transactions that occurred subsequent to November 30, 2015 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 ACCOUN12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Nov. 30, 2015 | |
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, 2015 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 Companys Annual Report on Form 10-K for the year ended August 31, 2015 filed with the SEC on December 15, 2015. 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, 2015. 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. |
Website Development Costs | Website Development Costs The Company accounts for website development costs in accordance with Accounting Standards Codification 350-50 Website Development Costs. Accordingly, all costs incurred in the planning stage are expensed as incurred, costs incurred in the website application and infrastructure development stage that meet specific criteria are expensed and costs incurred in the day to day operation of the website are expensed as incurred. |
Long-lived assets | Long-lived assets The Company reviews long-lived assets and certain identifiable intangibles held and used for possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating the fair value and future benefits of its intangible assets, management performs an analysis of the anticipated undiscounted future net cash flow of the individual assets over the remaining amortization period. The Company recognizes an impairment loss if the carrying value of the asset exceeds the expected future cash flows. On January 10, 2015 the Company entered into an agreement to purchase intellectual property from Riptide Software Inc. for $258,000. In February 2015, the Company recognized an impairment of $258,000 of this intangible assets. |
Revenue and Cost Recognition | Revenue and Cost Recognition The Company has no current source of revenue. The Company recognizes revenue based on Account Standards Codification (ASC) 605 Revenue Recognition |
Basic and Diluted Net Loss per Common Share | Basic and Diluted Net Loss per Common Share Basic loss per share is calculated by dividing the Companys net loss applicable to common stockholders by the weighted average number of common shares during the period. Diluted loss per share is calculated by dividing the Companys net loss available to common stockholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of November 30, 2015 or 2014 which were excluded from the calculation of diluted loss per common share as their effect would have been anti-dilutive. |
SUMMARY OF SIGNIFICANT ACCOUN13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Feb. 10, 2015 | Jan. 10, 2015 |
Impairment of intangible assets | $ 258,000 | |
Riptide Software Inc [Member] | ||
Purchase of intellectual property | $ 258,000 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Nov. 30, 2015 | Aug. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (3,102,505) | $ (3,066,084) |
Common stock, shares issued | 40,000,000 | 40,000,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Aug. 31, 2015 | Nov. 30, 2015 |
Advance related parties | $ 249,061 | $ 250,798 |
Operating expenses paid by related party | 99,015 | 1,737 |
Accrued professional fees | $ 4,500 | |
Officer And Majority Shareholder [Member] | ||
Advance related parties | $ 249,061 |
STOCKHOLDERS' DEFICIT (Details
STOCKHOLDERS' DEFICIT (Details Narrative) | May. 31, 2013 |
Stockholders' Equity Note [Abstract] | |
Description of reverse stock split | The Company authorized a 3:1 reverse stock split the consolidated financial statements have been retroactively adjusted to reflect the stock split. |