Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Feb. 28, 2017 | Apr. 04, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Gala Global Inc. | |
Entity Central Index Key | 1,513,403 | |
Document Type | 10-Q | |
Document Period End Date | Feb. 28, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,247,936 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Feb. 28, 2017 | Nov. 30, 2016 |
Current assets | ||
Cash | $ 0 | $ 10,841 |
Inventory | 2,241 | 2,241 |
Total assets | 2,241 | 13,082 |
Current liabilities | ||
Bank overdraft | 62 | 0 |
Accounts payable and accrued liabilities | 15,136 | 20,052 |
Accounts payable and accrued liabilities - related party | 103,127 | 94,039 |
Due to related parties | 266,135 | 249,835 |
Loans payable | 75,200 | 75,200 |
Loans payable to related parties | 22,064 | 22,064 |
Total liabilities | 481,724 | 461,190 |
STOCKHOLDERS' DEFICIT | ||
Preferred stock authorized: 10,000,000 shares with a par value of $0.001 per share Issued and outstanding: 500,000 shares, respectively. | 500 | 500 |
Common stock authorized: 500,000,000 shares with a par value of $0.001 per share issued and outstanding: 1,369,224 shares, respectively | 1,369 | 1,369 |
Additional paid-in capital | 786,736 | 786,736 |
Accumulated Deficit | (1,268,088) | (1,236,713) |
Total stockholders' deficit | (479,483) | (448,108) |
Total liabilities and stockholders' deficit | $ 2,241 | $ 13,082 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Nov. 30, 2016 | Nov. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 500,000 | 500,000 |
Preferred stock, shares outstanding | 500,000 | 500,000 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares issued | 1,369,224 | 1,369,224 |
Common stock, shares outstanding | 1,369,224 | 1,369,224 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Operating expenses | ||
Consulting fees | $ 0 | $ 17,500 |
Consulting fees - related party | 0 | 6,458 |
General and administrative | 10,652 | 11,919 |
General and administrative - related party | 19,000 | 9,000 |
Rent | 1,050 | 0 |
Total operating expenses | 30,702 | 44,877 |
Loss before other expense | (30,702) | (44,877) |
Other expense | ||
Interest expense | (673) | (316) |
Net loss | $ (31,375) | $ (45,193) |
Net loss per share, basic and diluted | $ (.02) | $ (.03) |
Weighted average common shares outstanding | 1,369,224 | 1,352,036 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 3 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Operating activities | ||
Net loss | $ (31,375) | $ (45,193) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 0 | 17,500 |
Changes in operating assets and liabilities: | ||
Inventory | 0 | 460 |
Prepaid expenses | 0 | 6,458 |
Bank overdraft | 62 | 0 |
Accounts payable and accrued liabilities | (416) | 9,595 |
Accounts payable and accrued liabilities - related party | 9,088 | 9,213 |
Net cash used in operating activities | (22,641) | (1,967) |
Financing activities | ||
Proceeds from (due to) related party | 11,800 | 0 |
Repayments of related party debt | 0 | (5,960) |
Proceeds from note payable - related party | 0 | 20,000 |
Net cash provided by financing activities | 11,800 | 14,040 |
Increase (decrease) in cash | (10,841) | 12,073 |
Cash, beginning of period | 10,841 | 1,804 |
Cash, end of period | 0 | 13,877 |
Non-cash investing and financing activities: | ||
Expenses paid with related party advances | 4,500 | 0 |
Common shares issued for compensation to a related party | 0 | 17,500 |
Preferred shares issued to settle related party payables | 0 | 24,167 |
Preferred shares issued to settle related party debt | 0 | 48,453 |
Supplemental disclosures: | ||
Interest paid | 0 | 0 |
Income tax paid | $ 0 | $ 0 |
1. Organization And Nature Of O
1. Organization And Nature Of Operations | 3 Months Ended |
Feb. 28, 2017 | |
Organization And Nature Of Operations | |
Organization and Nature of Operations | Gala Global Inc. (the “Company”) was incorporated in the State of Nevada on March 10, 2010. The Company was formed to provide garment tailoring and alteration services. The Company has has expanded into the Hemp and Cannabidiol (“CBD”) industry. The expansion is focusing on the development, research, and commercialization of products derived from the Hemp and Cannabis plant. The Company currently is finalizing its marketing strategy for a new CBD flavored thin-film strip. The film strip delivery system uses a dissolving film strip that is absorbed in the mouth. The film-strip method is an advanced method of providing CBD for dietary supplement. The Company also is seeking acquisition candidates in this area of interest in the nutraceutical and pharmaceutical industries. The Company also plans to enter into the medical marijuana cultivation industry as approved in the United States and Canada to build legalized cultivation operations. The Company’s services include the development of cannabinoid based health and wellness products; the development of medical grade compounds; the licensing of proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal herb industry. Going Concern These consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As at February 28, 2017, the Company has a working capital deficit of $479,483 and an accumulated deficit of $1,268,088. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
2. Summary Of Significant Accou
2. Summary Of Significant Accounting Policies | 3 Months Ended |
Feb. 28, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | a) Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and are expressed in U.S. dollars. b) Principles of Consolidation These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Cannabis Ventures Inc. (USA), Cannabis Ventures Inc. (Canada), from the date of their acquisition by the Company effective June 26, 2014 and CBD Life, Inc. from June 26, 2014 (date of acquisition) to December 30, 2016 (date of dissolution). All inter-company transactions and balances have been eliminated on consolidation . c) Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the valuation of inventory, share-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. d) Interim Financial Statements The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management’s opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three months ended February 28, 2017 are not necessarily indicative of the results that may be expected for the year ended November 30, 2016. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended November 30, 2016 included in our Form 10-K filed with the SEC. e) Inventory Inventory is comprised of Vape Mods purchased for resale, and is recorded at the lower of cost or net realizable value on a first-in first-out basis. The Company establishes inventory reserves for estimated obsolete or unsaleable inventory equal to the difference between the cost of inventory and the estimated realizable value based upon assumptions about future market conditions. f) Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. As of February 28, 2017 and November 30, 2016, there were no cash equivalents. g) Financial Instruments The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, loans payable to related parties, loans payable, and amounts due to related parties. The recorded values of all these financial instruments approximate their current fair values because of the short term nature of these financial instruments. h) Revenue Recognition The Company earns revenue from the sale of Vape Mods, which are modified electronic cigarettes and vape pens. Revenue will be recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service has been provided, and collectability is assured. The Company is not exposed to any credit risks as amounts are prepaid prior to performance of services. i) Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation j) Basic and Diluted Net Loss per Share The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share k) Recent Issued Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
3. Related Party Transactions
3. Related Party Transactions | 3 Months Ended |
Feb. 28, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | a) As at February 28, 2017, the Company owed $266,135 (November 30, 2016 - $249,835) to a company controlled by a significant shareholder of the Company to fund payment of operating expenditures. The amount owed is unsecured, non-interest bearing, and due on demand. b) As at February 28, 2017, the Company owed $10,000 (November 30, 2016 - $10,000) to a company controlled by a significant shareholder of the Company. The amount owed in unsecured, non-interest bearing, and due on demand. c) As at February 28, 2017, the Company owed $2,064 (November 30, 2016 - $2,064) to a significant shareholder of the Company. The amount is unsecured, bears interest at 3% per annum, and due 180 days from the date of issuance. As at February 28, 2017, accrued interest of $35 (November 30, 2016 - $15) has been included in accounts payable and accrued liabilities - related parties. d) As at February 28, 2017, the Company owed $10,000 (November 30, 2016 - $10,000) to the former spouse of a significant shareholder of the Company for a note issued on September 21, 2016. Under the terms of the note, the amount due is unsecured, bears interest at 3% per annum, and is due 180 days from the date of issuance. As at February 28, 2017, accrued interest of $134 (November 30, 2016 - $58) has been included in accounts payable and accrued liabilities - related party. e) As at February 28, 2017, the Company owed $97,333 (November 30, 2016 - $88,333) to a significant shareholder of the Company, which has been recorded in accounts payable and accrued liabilities - related parties. The amount is unsecured, non-interest bearing, and due on demand. During the period ended February 28, 2017, the Company incurred legal fees of $19,000 (2016 - $9,000) to this significant shareholder. |
4. Stockholders' Equity
4. Stockholders' Equity | 3 Months Ended |
Feb. 28, 2017 | |
Common Stock | |
Stockholders' Equity | (a) As at February 28, 2017, the Company had 1,875 of shares of common stock with a fair value of $5,625 (November 30, 2016 - $5,625) issuable to the Chief Financial Officer as compensation for consulting services, which has been included in accounts payable and accrued liabilities – related parties. |
5. Subsequent Events
5. Subsequent Events | 3 Months Ended |
Feb. 28, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | (a) On March 15, 2017, the Company issued a promissory note for $88,333 to a significant shareholder. On March 22, 2017, the Company converted the full principal of $88,333 of the promissory note to 490,742 shares of common stock. (b) On March 15, 2017, the Company issued a promissory note for $249,835 to a significant shareholder. On March 22, 2017, the Company converted the full principal of $249,835 of the promissory note to 1,387,970 shares of common stock. (c) On March 30, 2017, the Company entered into a consulting agreement with two significant shareholders. Pursuant to the agreements, each consultant is to be compensated with 10,000,000 shares per annum. In addition, each consultant shall receive 1% of the issued and outstanding stock of the Company every six months during the term of the agreement. Each consultant shall also be paid a commission on any new business transactions introduced to the Company by the consultant at a rate of 10% of the net fee received by the Company from the new businesses. The Company may terminate the agreement upon providing 10 days of written notice to the consultant. The agreements commence on March 30, 2017 and are effective until March 30, 2021. |
2. Summary Of Significant Acc11
2. Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 28, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a) Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and are expressed in U.S. dollars. |
Principles of Consolidation | b) Principles of Consolidation These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Cannabis Ventures Inc. (USA), Cannabis Ventures Inc. (Canada), from the date of their acquisition by the Company effective June 26, 2014 and CBD Life, Inc. from June 26, 2014 (date of acquisition) to December 30, 2016 (date of dissolution). All inter-company transactions and balances have been eliminated on consolidation . |
Use of Estimates | c) Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the valuation of inventory, share-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Interim Financial Statements | d) Interim Financial Statements The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management’s opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three months ended February 28, 2017 are not necessarily indicative of the results that may be expected for the year ended November 30, 2016. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended November 30, 2016 included in our Form 10-K filed with the SEC. |
Inventory | e) Inventory Inventory is comprised of Vape Mods purchased for resale, and is recorded at the lower of cost or net realizable value on a first-in first-out basis. The Company establishes inventory reserves for estimated obsolete or unsaleable inventory equal to the difference between the cost of inventory and the estimated realizable value based upon assumptions about future market conditions. |
Cash and Cash Equivalents | f) Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. As of February 28, 2017 and November 30, 2016, there were no cash equivalents. |
Financial Instruments | g) Financial Instruments The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, loans payable to related parties, loans payable, and amounts due to related parties. The recorded values of all these financial instruments approximate their current fair values because of the short term nature of these financial instruments. |
Revenue Recognition | h) Revenue Recognition The Company earns revenue from the sale of Vape Mods, which are modified electronic cigarettes and vape pens. Revenue will be recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service has been provided, and collectability is assured. The Company is not exposed to any credit risks as amounts are prepaid prior to performance of services. |
Stock-Based Compensation | i) Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation |
Basic and Diluted Net Loss Per Share | j) Basic and Diluted Net Loss per Share The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share |
Recently Issued Accounting Pronouncements | k) Recent Issued Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
1. Organization And Nature Of12
1. Organization And Nature Of Operations (Details Narrative) - USD ($) | Feb. 28, 2017 | Nov. 30, 2016 |
Organization And Nature Of Operations | ||
Working capital | $ (479,483) | |
Accumulated deficit | $ (1,268,088) | $ (1,236,713) |
2. Summary Of Significant Acc13
2. Summary Of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Accounting Policies [Abstract] | ||
Cash equivalents | $ 0 | $ 0 |
Potentially dilutive shares | 0 | 0 |
3. Related Party Transations (D
3. Related Party Transations (Details Narrative) - USD ($) | 3 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Nov. 30, 2016 | |
Related Party Transaction [Line Items] | |||
Due to related party | $ 266,135 | $ 249,835 | |
Accounts payable, related party | 103,127 | 94,039 | |
Company controlled by a Significant Shareholder [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related party | 266,135 | 249,835 | |
Company controlled by a Significant Shareholder 2 [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related party | 10,000 | 10,000 | |
A Company Controlled By A Significant Shareholder [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable, related party | 2,064 | 2,064 | |
Accrued interest | 35 | 15 | |
Former Spouse of a Significant Shareholder [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable, related party | 10,000 | 10,000 | |
Accrued interest | 134 | 58 | |
Significant Shareholder [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable, related party | 97,333 | $ 88,333 | |
Legal fees | $ 19,000 | $ 9,000 |