Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 10-May-14 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'SW China Imports, Inc. | ' |
Entity Central Index Key | '0001516559 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
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 | ' | 210,000,000 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current Assets | ' | ' |
Cash | $0 | $37 |
Total Current Assets | 0 | 37 |
Total Assets | 0 | 37 |
Current Liabilities | ' | ' |
Accounts Payable | 2,882 | 20,198 |
Notes Payable - Related Party | 78,248 | 50,550 |
Total Current Liabilities | 81,130 | 70,748 |
Total Liabilities | 81,130 | 70,748 |
Stockholders' Equity: | ' | ' |
Preferred Stock, $0.0001 par value, 25,000,000 shares authorized, 0 and 0 shares issued and outstanding | 0 | 0 |
Common Stock, $0.0001 par value, 250,000,000 shares authorized, 210,000,000 and 210,000,000 shares issued and outstanding | 21,000 | 21,000 |
Additional Paid In Capital | 59,017,321 | 59,014,061 |
Accumulated Deficit | -59,119,451 | -59,105,772 |
Stockholders' Equity (Deficit) | -81,130 | -70,711 |
Total Liabilities and Stockholders' Equity | $0 | $37 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares outstanding | 210,000,000 | 210,000,000 |
Common stock, shares issued | 210,000,000 | 210,000,000 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 37 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
Income Statement [Abstract] | ' | ' | ' |
Revenues, net | $0 | $4,918 | $8,148 |
Cost of Revenues | 0 | 178 | 178 |
Gross Profit | 0 | 4,740 | 7,970 |
Operating Expenses: | ' | ' | ' |
Other General Expenses | 12,225 | 11,668 | 59,115,981 |
Total Operating Expenses | 12,225 | 11,668 | 59,115,981 |
Net Loss from Operations | -12,225 | -6,928 | -59,108,011 |
Other Income: | ' | ' | ' |
Interest (income) expense | 1,454 | 1,003 | 11,440 |
Total Other Income | 1,454 | 1,003 | 11,440 |
Net Loss Before Income Taxes | -13,679 | -7,931 | -59,119,451 |
Net Loss | ($13,679) | ($7,931) | ($59,119,451) |
Earnings per Share, Basic and Diluted: | ' | ' | ' |
Weighted Average of Outstanding Shares | 210,000,000 | 500,000,000 | ' |
Income (Loss) for Common Stockholders | $0 | $0 | ' |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | 37 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net Loss | ($13,679) | ($7,931) | ($59,119,451) |
Adjustments to reconcile net loss to net cash used (provided) by operating activiites | ' | ' | ' |
Shares Issued for Services | 1,454 | 1,003 | 59,000,815 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts Receivable | 0 | -293 | 0 |
Accounts Payable | 12,188 | 7,524 | 32,386 |
Net Cash Provided (Used) by Operating Acticities | -37 | 303 | -86,250 |
Cash Flows From Financing Activities | ' | ' | ' |
Borrowings on debt | 0 | 0 | 20,000 |
Proceeds from sale of stock | 0 | 0 | 15,700 |
(Payments) Borrowings: Shareholder Advances | 0 | -150 | 50,550 |
Net cash provided by (used in ) financiing activities | 0 | -150 | 86,250 |
Net Change in Cash | -37 | 153 | 0 |
Cash at Begining of Period | 37 | 600 | 0 |
Cash at End of Period | $0 | $753 | $0 |
Shareholders_Equity_Unaudited
Shareholders Equity (Unaudited) (USD $) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Total |
Begining balance, APIC at Feb. 22, 2011 | ' | $0 | ' | ' |
Begining balance, stockholders' equity at Feb. 22, 2011 | ' | ' | 0 | ' |
Begining balance, amount at Feb. 22, 2011 | 0 | ' | ' | ' |
Begining balance, shares at Feb. 22, 2011 | 0 | ' | ' | ' |
Issuance of common stock for services, shares | 110,000,000 | ' | ' | ' |
Issuance of common stock for services, amount | 11,000 | ' | ' | ' |
Issuance of common stock for services, APIC | ' | 89,000 | ' | ' |
Issuance of common stock new issues net, shares | 1,570,000 | ' | ' | ' |
Isssuance of common stock new issues net, value | 157 | ' | ' | ' |
Issuance of common stock new issues net, APIC | ' | 17,172 | ' | ' |
Net income (loss) | ' | ' | -138,206 | ' |
Ending balance, APIC at Dec. 31, 2011 | ' | 106,172 | ' | ' |
Stockholders' Equity (Deficit) at Dec. 31, 2011 | ' | ' | -138,206 | ' |
Common stock, amount at Dec. 31, 2011 | 11,157 | ' | ' | ' |
Common stock, shares outstanding at Dec. 31, 2011 | 111,570,000 | ' | ' | ' |
Issuance of common stock for services, shares | 387,422,500 | ' | ' | ' |
Issuance of common stock for services, amount | 38,742 | ' | ' | ' |
Issuance of common stock for services, APIC | ' | 58,828,542 | ' | ' |
Issuance of common stock new issues net, shares | 1,007,500 | ' | ' | ' |
Isssuance of common stock new issues net, value | 101 | ' | ' | ' |
Issuance of common stock new issues net, APIC | ' | 20,049 | ' | ' |
Net income (loss) | ' | ' | -58,906,066 | ' |
Ending balance, APIC at Dec. 31, 2012 | ' | 58,954,763 | ' | ' |
Stockholders' Equity (Deficit) at Dec. 31, 2012 | ' | ' | -59,044,272 | ' |
Common stock, amount at Dec. 31, 2012 | 50,000 | ' | ' | ' |
Common stock, shares outstanding at Dec. 31, 2012 | 500,000,000 | ' | ' | ' |
Issuance of common stock new issues net, shares | -290,000,000 | ' | ' | ' |
Isssuance of common stock new issues net, value | -29,000 | ' | ' | ' |
Issuance of common stock new issues net, APIC | ' | -702 | ' | ' |
Net income (loss) | ' | ' | -61,500 | ' |
Ending balance, APIC at Dec. 31, 2013 | ' | 59,014,061 | ' | ' |
Stockholders' Equity (Deficit) at Dec. 31, 2013 | ' | ' | -59,105,772 | -70,711 |
Common stock, amount at Dec. 31, 2013 | 21,000 | ' | ' | ' |
Common stock, shares outstanding at Dec. 31, 2013 | 210,000,000 | ' | ' | 210,000,000 |
Issuance of common stock new issues net, APIC | ' | 3,260 | ' | ' |
Net income (loss) | ' | ' | -13,679 | -13,679 |
Ending balance, APIC at Mar. 31, 2014 | ' | 59,017,321 | ' | ' |
Stockholders' Equity (Deficit) at Mar. 31, 2014 | ' | ' | -59,119,451 | -81,130 |
Common stock, amount at Mar. 31, 2014 | $21,000 | ' | ' | ' |
Common stock, shares outstanding at Mar. 31, 2014 | 210,000,000 | ' | ' | 210,000,000 |
NOTE_1_Summary_of_Significant_
NOTE 1 Summary of Significant Accounting Policies | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
NOTE 1 Summary of Significant Accounting Policies | ' | |||||||||
NOTE 1 – Summary of Significant Accounting Policies | ||||||||||
Unaudited Interim Financial Information | ||||||||||
The accompanying Balance Sheet as of March 31, 2014, Statements of Operations for the three months ended March 31, 2014 and 2013, and cumulative from February 23, 2011 (Inception) to March 31, 2014, Statement of Stockholder’s (Deficit) for the cumulative period from February 23, 2011 (Inception) to March 31, 2014, and the Statements of Cash Flows for the three months ended March 31, 2014 and 2013, and cumulative from February 23, 2011 (Inception) to March 31, 2014, are unaudited. These unaudited interim financial statements have been prepared in accordance with accounting principles accepted in the United States of America (“GAAP”). In the opinion of the company’s management, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements and included all adjustments necessary for the fair presentation of the Company’s statement of financial position at March 31, 2014 and its results of operations and its cash flows for the period ended March 31, 2014 and cumulative from February 23, 2011 (inception) to March 31, 2014. The results for the period ended March 31, 2014 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2014. | ||||||||||
Organization | ||||||||||
SW China Imports, Inc. (“Company” or “SW China Imports”) is a development stage company with minimal operations. SW China Imports was incorporated under the laws of the State of Nevada on February 23, 2011. | ||||||||||
Basis of Presentation | ||||||||||
The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) for financial information and in accordance with the Securities and Exchange Commission’s (SEC) Regulation S-X. They reflect all adjustments which are, in the opinion of the Company’s management, necessary for a fair presentation of the financial position and operating results as of and for the period ended March 31, 2014 and for the period February 23, 2011 (inception) to March 31, 2014. | ||||||||||
Use of Estimates | ||||||||||
The accompanying financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. Actual results may vary from these 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. As of March 31, 2014, the Company had $0 in cash and equivalents and $37 at December 31, 2013. | ||||||||||
Investments | ||||||||||
The Company accounts for its marketable securities, which are classified as trading securities, in accordance with generally accepted accounting principles for certain investments in debt and equity securities, which requires that trading securities be carried at fair value. Unrealized gains and losses due to changes in fair value as well as realized gains and losses resulting from sales of securities are reported as Other Income/Expenses in the statement of operations. Fair value of the securities is based upon quoted market prices in active markets or estimated fair value when quoted market prices are not available. The cost basis for realized gains and losses is determined on a specific identification basis. As of March 31, 2014 the Company had no investments. | ||||||||||
Fair Value of Financial Instruments | ||||||||||
ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value: | ||||||||||
Level | Description | |||||||||
Level 1 | Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||||||
Level 2 | Applies to assets or liabilities for which there are inputs other than quoted prices 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 | 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. | |||||||||
The estimated fair values of the Company’s financial instruments are as follows: | ||||||||||
Fair Value Measurement at March 31, 2014 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | ||||||||||
(Level 1) | Significant Other Observable Inputs | |||||||||
(Level 2) | Significant Unobservable Inputs | |||||||||
(Level 3) | ||||||||||
Description | 3/31/14 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | - | $ | - | $ | - | $ | - | ||
$ | - | $ | - | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 2,882 | $ | 2,882 | $ | - | $ | - | ||
Note payable to stockholder | 78,248 | 78,248 | - | - | ||||||
$ | 81,130 | $ | 81,130 | $ | - | $ | - | |||
Fair Value Measurement at December 31, 2013 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | ||||||||||
(Level 1) | Significant Other Observable Inputs | |||||||||
(Level 2) | Significant Unobservable Inputs | |||||||||
(Level 3) | ||||||||||
Description | 12/31/13 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | 37 | $ | 37 | $ | - | $ | - | ||
$ | 37 | $ | 37 | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 20,198 | $ | 20,198 | $ | - | $ | - | ||
Note payable to stockholder | 50,550 | 50,550 | - | - | ||||||
$ | 70,748 | $ | 70,748 | $ | - | $ | - | |||
Net Loss per Share Calculation | ||||||||||
Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per shares is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. During the period ended March 31, 2014 and cumulative from February 23, 2011 (inception) to March 31, 2014 the Company had no dilutive financial instruments issued or outstanding. | ||||||||||
Income Taxes | ||||||||||
The Company accounts for income taxes pursuant to FASB ASC 740, Income Taxes. Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. | ||||||||||
The Company maintains a valuation allowance with respect to deferred tax assets. SW China Imports establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws. | ||||||||||
Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate. | ||||||||||
Fiscal Year | ||||||||||
The Company elected December 31st for its fiscal year end. |
NOTE_2_Development_Stage_Activ
NOTE 2 Development Stage Activities | 3 Months Ended |
Mar. 31, 2014 | |
Development Stage Enterprises [Abstract] | ' |
NOTE 2 Development Stage Activities | ' |
NOTE 2 – Development Stage Activities and Going Concern | |
The Company is in the development stage and has minimal operations, and as such has devoted most of its efforts since its inception to developing its business plan, issuing common stock, attempting to raise capital, establishing its accounting systems and other administrative functions. The Company plans on importing high-end handmade lace wigs and hairpieces manufactured in China and South Korea into the United States. After import, the Company intends to sell its products in bulk to beauty supply stores, hair salons, and independent hair stylists. The Company also intends to sell its products directly to the retail consumer via the Internet. Additionally, the Company intends to conduct additional capital formation activities through the issuance of its common stock to achieve these long-term business growth strategies. | |
While management of the Company believes that SW China Imports will be successful in its planned operating activities under its business plan and capital formation activities, there can be no assurance that it will be able to successfully execute on either of these or that it will be able to generate adequate revenues to earn a profit or sustain its operations. | |
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United State of America, which contemplate continuation of the Company as a going concern. The Company has not established a source of revenues sufficient to cover its operating costs, and as such, has incurred an operating loss since its inception. Further, as of March 31, 2014, the Company had a working capital deficiency of ($81,130). These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments or classifications that may result from the possible inability of the Company to continue as a going concern. |
NOTE_3_Common_Stock
NOTE 3 Common Stock | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
NOTE 3 and 4 Common Stock and Preferred Stock | ' |
NOTE 3 – Common Stock | |
The total number of common shares authorized that may be issued by the Company is 250,000,000 shares with a par value of $0.0001 per share. | |
During the period February 23, 2011 (inception) to March 31, 2014 the Company issued an aggregate of 516,000,000 shares as follows: | |
During the period February 23, 2011 (inception) to March 31, 2014 the Company cancelled an aggregate of 306,000,000 split adjusted shares of its common stock as follows: | |
As of March 31, 2014, the Company had 210,000,000 shares of its common stock issued and outstanding. | |
NOTE 4 – Preferred Stock | |
The total number of preferred shares authorized that may be issued by the Company is 25,000,000 shares with a par value of $0.0001 per share. | |
As of March 31, 2014, the Company had no shares of its preferred stock issued and outstanding. |
NOTE_5_Income_Taxes
NOTE 5 Income Taxes | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Income Tax Disclosure [Abstract] | ' | ||||||
NOTE 5 Income Taxes | ' | ||||||
The provision (benefit) for income taxes for the period from February 23, 2011 (inception) to March 31, 2014 was as follows, assuming a 35 percent effective tax rate: | |||||||
For the period | |||||||
For the three | 23-Feb-11 | ||||||
months ended | (inception) to | ||||||
3/31/14 | 3/31/14 | ||||||
Current tax provision: | |||||||
Federal | |||||||
Taxable income | $ | - | $ | ||||
Total current tax provision | $ | - | $ | ||||
Deferred tax provision: | |||||||
Federal | |||||||
Loss carryforwards | $ | 42,084 | $ | 37,296 | |||
Change in valuation allowance | -42,084 | -37,296 | |||||
Total deferred tax provision | $ | - | $ | - | |||
As of March 31, 2014, the Company had approximately $171,284 in tax loss carryforwards that can be utilized in future periods to reduce taxable income through 2032. | |||||||
The Company provided a valuation allowance equal to the deferred income tax assets for the period from February 23, 2011 (inception) to March 31, 2014 because it is not presently known whether future taxable income will be sufficient to utilize the tax loss carryforwards. | |||||||
The Company has no uncertain tax positions. | |||||||
NOTE_6_Change_of_Control
NOTE 6 Change of Control | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
NOTE 6 Change of Control | ' |
NOTE 6 – Change of Control | |
On March 27, 2014 the shareholders of SW China Imports, Inc. sold their shares, 210,000,000, to Big Sky Oil, Inc. and another investor, resulting in a change of control. |
NOTE_7_Related_Parties
NOTE 7 Related Parties | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
NOTE 7 Related Parties | ' |
NOTE 7 – Related Party Transactions | |
For the period February 23, 2011 (inception) to March 31, 2014 the Company’s rent expense was zero. This is because of the short time period and the minimal level of operating activities that have transpired during this period of time. | |
As of March 31, 2014, the Company had notes payable to a related party stockholder in the amount of $78,248. These notes were assumed during the change of control transaction and are payable on demand and do not bear interest. During the three months ended March 31, 2014 the imputed interest expense on the notes was $1,454. | |
In the change of control agreements dated March 27, 2014, $1,806 of related party debt was forgiven by a former shareholder. |
NOTE_8_Recent_Accounting_Prono
NOTE 8 Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
NOTE 8 Recent Accounting Pronouncements | ' |
NOTE 8 – Recent Accounting Pronouncements | |
The Company does not expect the impact of recent accounting pronouncements to have a material effect on the Company’s financial statements. |
NOTE_9_Subsequent_Events
NOTE 9 Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
NOTE 9 Subsequent Events | ' |
NOTE 9 – Subsequent Events | |
No other material events or transactions have occurred during this subsequent event reporting period which required recognition or disclosure in the financial statements |
NOTE_1_Summary_of_Significant_1
NOTE 1 Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Basis of Presentation | ' | |||||||||
Basis of Presentation | ||||||||||
The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) for financial information and in accordance with the Securities and Exchange Commission’s (SEC) Regulation S-X. They reflect all adjustments which are, in the opinion of the Company’s management, necessary for a fair presentation of the financial position and operating results as of and for the period ended March 31, 2014 and for the period February 23, 2011 (inception) to March 31, 2014. | ||||||||||
Use of Estimates | ' | |||||||||
Use of Estimates | ||||||||||
The accompanying financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. Actual results may vary from these 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. As of March 31, 2014, the Company had $0 in cash and equivalents and $37 at December 31, 2013. | ||||||||||
Investments | ' | |||||||||
Investments | ||||||||||
The Company accounts for its marketable securities, which are classified as trading securities, in accordance with generally accepted accounting principles for certain investments in debt and equity securities, which requires that trading securities be carried at fair value. Unrealized gains and losses due to changes in fair value as well as realized gains and losses resulting from sales of securities are reported as Other Income/Expenses in the statement of operations. Fair value of the securities is based upon quoted market prices in active markets or estimated fair value when quoted market prices are not available. The cost basis for realized gains and losses is determined on a specific identification basis. As of March 31, 2014 the Company had no investments. | ||||||||||
Fair Value of Financial Instruments | ' | |||||||||
Fair Value of Financial Instruments | ||||||||||
ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value: | ||||||||||
Level | Description | |||||||||
Level 1 | Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||||||
Level 2 | Applies to assets or liabilities for which there are inputs other than quoted prices 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 | 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. | |||||||||
The estimated fair values of the Company’s financial instruments are as follows: | ||||||||||
Fair Value Measurement at March 31, 2014 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | ||||||||||
(Level 1) | Significant Other Observable Inputs | |||||||||
(Level 2) | Significant Unobservable Inputs | |||||||||
(Level 3) | ||||||||||
Description | 3/31/14 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | - | $ | - | $ | - | $ | - | ||
$ | - | $ | - | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 2,882 | $ | 2,882 | $ | - | $ | - | ||
Note payable to stockholder | 78,248 | 78,248 | - | - | ||||||
$ | 81,130 | $ | 81,130 | $ | - | $ | - | |||
Fair Value Measurement at December 31, 2013 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | ||||||||||
(Level 1) | Significant Other Observable Inputs | |||||||||
(Level 2) | Significant Unobservable Inputs | |||||||||
(Level 3) | ||||||||||
Description | 12/31/13 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | 37 | $ | 37 | $ | - | $ | - | ||
$ | 37 | $ | 37 | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 20,198 | $ | 20,198 | $ | - | $ | - | ||
Note payable to stockholder | 50,550 | 50,550 | - | - | ||||||
$ | 70,748 | $ | 70,748 | $ | - | $ | - | |||
Net Loss per Share Calculation | ' | |||||||||
Net Loss per Share Calculation | ||||||||||
Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per shares is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. During the period ended March 31, 2014 and cumulative from February 23, 2011 (inception) to March 31, 2014 the Company had no dilutive financial instruments issued or outstanding. | ||||||||||
Income Taxes | ' | |||||||||
Income Taxes | ||||||||||
The Company accounts for income taxes pursuant to FASB ASC 740, Income Taxes. Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. | ||||||||||
The Company maintains a valuation allowance with respect to deferred tax assets. SW China Imports establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws. | ||||||||||
Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate. |
NOTE_5_Income_Taxes_Tables
NOTE 5 Income Taxes (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Income Tax Disclosure [Abstract] | ' | ||||||
Deferred Taxes | ' | ||||||
For the period | |||||||
For the three | 23-Feb-11 | ||||||
months ended | (inception) to | ||||||
3/31/14 | 3/31/14 | ||||||
Current tax provision: | |||||||
Federal | |||||||
Taxable income | $ | - | $ | ||||
Total current tax provision | $ | - | $ | ||||
Deferred tax provision: | |||||||
Federal | |||||||
Loss carryforwards | $ | 42,084 | $ | 37,296 | |||
Change in valuation allowance | -42,084 | -37,296 | |||||
Total deferred tax provision | $ | - | $ | - | |||
NOTE_3_Common_Stock_Details_Na
NOTE 3 Common Stock (Details Narrative) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Equity [Abstract] | ' | ' |
Common shares authorized | 250,000,000 | 250,000,000 |
Common par value | $0.00 | $0.00 |
Common shares outstanding | 210,000,000 | 210,000,000 |
Preferred shares authorized | 25,000,000 | 25,000,000 |
Preferred par value | $0.00 | $0.00 |
NOTE_5_Income_Taxes_Deferred_T
NOTE 5 Income Taxes - Deferred Taxes (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Net Operating Loss Carryforward | $42,088 | $37,296 | ' |
Less: Valuation Allowance | ' | -42,088 | -37,296 |
Net Deferred Tax Asset | $0 | $0 | ' |
NOTE_5_Income_Taxes_Details_Na
NOTE 5 Income Taxes (Details Narrative) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Effective tax rate | 3500.00% |
Tax loss carryforwards | $171,284 |
NOTE_7_Related_Parties_Details
NOTE 7 Related Parties (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' | ' |
Related party note payable | $78,248 | $50,550 |
Interest expense | 1,454 | ' |
Debt foregivess | $1,806 | ' |