Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Oct. 28, 2013 | |
Document and Entity Information: | ||
Entity Registrant Name | SW China Imports, Inc. | |
Document Type | 10-Q | |
Document Period End Date | 30-Sep-13 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1516559 | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 210,000,000 | |
Entity Public Float | $86,845 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | No | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 |
Balance_Sheet
Balance Sheet (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets, Current | ||
Cash and Cash Equivalents, at Carrying Value | $2,743 | $600 |
Assets | 2,743 | 600 |
Liabilities, Current | ||
Accounts payable | 14,222 | 559 |
Notes payable to stockholder | 50,350 | 39,550 |
Stockholders' (deficit) | ||
Common Stock, Value, Issued | 21,000 | 50,000 |
Additional Paid in Capital, Common Stock | 59,012,867 | 58,954,763 |
(Deficit) accumulated during the development stage | -59,095,696 | -59,044,272 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | -61,829 | -39,509 |
Total liabilities and stockholders' (deficit) | 2,743 | 600 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures | ||
Preferred Stock, Shares Authorized | 25,000,000 | 50,000,000 |
Common Stock, Shares Authorized | 250,000,000 | 500,000,000 |
Common Stock, Shares Issued | 210,000,000 | 500,000,000 |
Common Stock, Shares Outstanding | 210,000,000 | 500,000,000 |
Common Stock, Value, Outstanding | $21,000 | $50,000 |
Statement_of_Operations
Statement of Operations (USD $) | 3 Months Ended | 9 Months Ended | 31 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Operating Income (Loss) | |||||
Revenues, net | $1,077 | $8,148 | $8,148 | ||
Cost of revenues | 178 | 178 | |||
Expenses | |||||
General and Administrative Expense | 15 | 616 | 590 | 2,310 | |
Consulting Fees | 26,000 | 26,000 | 1,000 | 23,539,375 | |
Legal Fees | 7,500 | 15,000 | 22,575 | 24,575 | 131,863 |
Accounting Fees | 1,000 | 1,000 | 5,175 | 4,000 | 15,675 |
Director Fees | 35,400,000 | ||||
Transfer Agent Fees | 422 | 457 | 1,924 | 2,905 | 5,651 |
Operating Income (Loss) | -33,845 | -16,472 | -48,320 | -33,070 | -59,086,904 |
Other income (expense) | |||||
Interest Expense | -1,069 | -1,234 | -3,104 | -3,012 | -8,792 |
Other income (expense), net | -1,069 | -1,234 | -3,104 | -3,012 | -8,792 |
Net (loss) | ($34,914) | ($17,706) | ($51,424) | ($36,082) | ($59,095,696) |
Earnings Per Share | |||||
Earnings Per Share, Basic | $0 | $0 | $0 | $0 | |
Weighted Average Number of Shares Outstanding, Basic | 208,804,348 | 111,961,304 | 334,835,165 | 112,194,088 | |
Earnings Per Share, Diluted | $0 | $0 | $0 | $0 | |
Weighted Average Number of Shares Outstanding, Diluted | 208,804,348 | 111,961,304 | 334,835,165 | 112,194,088 |
Statement_of_Shareholders_Defi
Statement of Shareholders' (Deficit) (USD $) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Feb. 22, 2011 | ||||
Stock Issued During Period, Value, New Issues | $11,157 | $104,543 | $115,570 | |
Stock Issued During Period, Shares, New Issues | 111,570,000 | 111,570,000 | ||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 1,000 | 99,000 | 100,000 | |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 110,000,000 | 110,000,000 | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | -138,206 | -138,206 | ||
Stockholders' Equity, Period Increase (Decrease) | -20,877 | |||
Stock Issued During Period, Shares, Period Increase (Decrease) | 111,570,000 | 111,570,000 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2011 | -20,877 | |||
Shares, Outstanding at Dec. 31, 2011 | 111,570,000 | 111,570,000 | ||
Stock Issued During Period, Value, New Issues | 101 | 20,049 | 20,150 | |
Stock Issued During Period, Shares, New Issues | 1,007,500 | 1,007,500 | ||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 39,242 | 58,824,133 | 58,863,375 | |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 392,422,500 | 392,422,500 | ||
Stock Repurchased and Retired During Period, Value | -500 | 500 | ||
Stock Repurchased and Retired During Period, Shares | 5,000,000 | 5,000,000 | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | -58,906,066 | -58,906,066 | ||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 3,909 | 3,909 | ||
Stockholders' Equity, Period Increase (Decrease) | -18,632 | |||
Stock Issued During Period, Shares, Period Increase (Decrease) | 388,430,000 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2012 | -39,509 | |||
Shares, Outstanding at Dec. 31, 2012 | 500,000,000 | 500,000,000 | ||
Stock Issued During Period, Value, New Issues | 26,000 | 26,000 | ||
Stock Issued During Period, Shares, New Issues | 10,000,000 | 10,000,000 | ||
Stock Repurchased and Retired During Period, Value | -30,000 | 30,000 | ||
Stock Repurchased and Retired During Period, Shares | 300,000,000 | 300,000,000 | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | -51,424 | -51,424 | ||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 3,104 | 3,104 | ||
Stockholders' Equity, Period Increase (Decrease) | -22,320 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Sep. 30, 2013 | ($61,829) | |||
Shares, Outstanding at Sep. 30, 2013 | 210,000,000 | 210,000,000 |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 8 Months Ended | 9 Months Ended | 31 Months Ended |
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Net Cash Provided by (Used in) Operating Activities | |||
Net (loss) | ($36,082) | ($51,424) | ($59,095,696) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | |||
Imputed interest on related party loan | -2,958 | -3,104 | -8,792 |
Common stock issued in connection with services provided by consultants | -26,000 | -23,589,375 | |
Common stock issued to officers | -35,400,000 | ||
Increase (Decrease) in Operating Liabilities | |||
Increase (Decrease) in Accounts Payable | -54 | -13,663 | -14,222 |
(Increase) Decrease in Receivables | 184 | ||
Net Cash Provided by (Used in) Operating Activities | -32,886 | -8,657 | -83,307 |
Net Cash Provided by (Used in) Financing Activities | |||
Increase in notes payable to a stockholder | 22,100 | 10,800 | 50,350 |
Proceeds from (Repayments of) Notes Payable | 20,000 | ||
Proceeds from Issuance of Common Stock | 15,700 | ||
Net Cash Provided by (Used in) Financing Activities | 22,100 | 10,800 | 86,050 |
Cash and Cash Equivalents, Period Increase (Decrease) | -10,789 | 2,143 | 2,743 |
Cash and Cash Equivalents, at Carrying Value | 14,773 | 600 | |
Cash and Cash Equivalents, at Carrying Value | $3,987 | $2,743 | $2,743 |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Notes | ||||||||||
Note 1 - Summary of Significant Accounting Policies | NOTE 1 – Summary of Significant Accounting Policies | |||||||||
Unaudited Interim Financial Information | ||||||||||
The accompanying Balance Sheet as of September 30, 2013, Statements of Operations for the three months ended September 30, 2013 and 2012, for the nine months ended September 30, 2013 and 2012, and cumulative from February 23, 2011 (Inception) to September 30, 2013, Statement of Stockholder’s (Deficit) for the cumulative period from February 23, 2011 (Inception) to September 30, 2013, and the Statements of Cash Flows for the nine months ended September 30, 2013 and 2012, and cumulative from February 23, 2011 (Inception) to September 30, 2013, 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 September 30, 2013 and its results of operations and its cash flows for the period ended September 30, 2013 and cumulative from February 23, 2011 (inception) to September 30, 2013. The results for the period ended September 30, 2013 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2013. | ||||||||||
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. The Company’s business plan calls for the Company to import high-end handmade lace wigs and hairpieces, as well as other beauty supplies and products, manufactured in China and South Korea into the United States. SW China Imports intends to sell these products in bulk to beauty supply stores, hair salons, and independent hair stylists. SW China Imports also intends to sell its products directly to the retail consumer via the Internet. | ||||||||||
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 September 30, 2013 and for the period February 23, 2011 (inception) to September 30, 2013. | ||||||||||
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 September 30, 2013 and December 31, 2012, the Company had no cash equivalents. | ||||||||||
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 September 30, 2013 and December 31, 2012 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 as of September 30, 2013 are as follows: | ||||||||||
Fair Value Measurement at September 30, 2013 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | Significant Other Observable Inputs | |||||||||
(Level 1) | (Level 2) | Significant Unobservable Inputs | ||||||||
(Level 3) | ||||||||||
Description | 9/30/13 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | 2,743 | $ | 2,743 | $ | - | $ | - | ||
$ | 2,743 | $ | 2,743 | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 14,222 | $ | 14,222 | $ | - | $ | - | ||
Note payable to stockholder | 50,350 | 50,350 | - | - | ||||||
$ | 64,572 | $ | 64,572 | $ | - | $ | - | |||
The estimated fair values of the Company’s financial instruments as of December 31, 2012 are as follows: | ||||||||||
Fair Value Measurement at December 31, 2012 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | Significant Other Observable Inputs | |||||||||
(Level 1) | (Level 2) | Significant Unobservable Inputs | ||||||||
(Level 3) | ||||||||||
Description | 12/31/12 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | 600 | $ | 600 | $ | - | $ | - | ||
$ | 600 | $ | 600 | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 559 | $ | 559 | $ | - | $ | - | ||
Note payable to stockholder | 39,550 | 39,550 | - | - | ||||||
$ | 40,109 | $ | 40,109 | $ | - | $ | - | |||
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 September 30, 2013 and cumulative from February 23, 2011 (inception) to September 30, 2013 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 and Going Concern | 9 Months Ended |
Sep. 30, 2013 | |
Notes | |
Note 2 - Development Stage Activities and Going Concern | 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 September 30, 2013, the Company had a working capital deficiency of ($59,095,696). 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 | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Notes | |||||
Note 3 - Common 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 September 30, 2013 the Company issued an aggregate of 516,000,000 shares as follows: | |||||
Date of Issue | Description of Issuance | Shares Issued | |||
2/23/11 | Issuance of Founder’s Shares to original officers and directors | 100,000,000 | |||
2/23/11 | Issuance of common stock to consultants (non-related) for assistance with early stage development services. These shares were valued at $100,000, or $0.01 per share, based on the value of the services provided | ||||
10,000,000 | |||||
10/27/11 | Sale of shares to investors in an offering of the Company’s common stock for $15,700 in cash, or $0.01 a share. | ||||
1,570,000 | |||||
2/22/12 | Subscribed shares by an investor. These shares were priced at $0.01 per share, or an aggregate of $10,000. | ||||
1,000,000 | |||||
11/27/12 | Shares issued to retire an outstanding convertible promissory note with M-Stocks, LLC aggregating $20,150 in principal and accrued interest at a fixed price of $0.02 a share | ||||
1,007,500 | |||||
11/27/12 | Shares issued to the Company’s directors valued at $35,376,400, or $0.15 a share, which was the closing price of the Company’s stock as reported by the OTC Bulletin Board on the date of issue | ||||
236,000,000 | |||||
11/27/12 | Shares issued to consultants valued at $23,463,375, or $0.15 a share, which was the closing price of the Company’s stock as reported by the OTC Bulletin Board on the date of issue | ||||
156,422,500 | |||||
7/11/13 | Shares issued to a consultant valued at $26,000, or $0.0026 a share, which was the closing price of the Company’s stock as reported by the OTC Bulletin Board on the date of issue | ||||
10,000,000 | |||||
Aggregate shares issued | 516,000,000 | ||||
During the period February 23, 2011 (inception) to September 30, 2013 the Company cancelled an aggregate of 306,000,000 split adjusted shares of its common stock as follows: | |||||
Date of Cancellation | |||||
Description of Cancellation | Shares Cancelled | ||||
8/6/12 | After making numerous attempts to collect cash due for subscribed stock, the Company cancelled and returned to its treasury subscribed shares of common stock | ||||
1,000,000 | |||||
10/27/12 | The Company and Arctic Eyes, LLC mutually agreed to rescind their February 23, 2011 Consulting Agreement. Arctic Eyes returned the shares it was holding which were subsequently cancelled by the Company. | ||||
5,000,000 | |||||
4/30/13 | Certain shareholders of the Company returned shares of the Company’s common stock for cancellation and return to treasury | ||||
300,000,000 | |||||
Aggregate shares cancelled | 306,000,000 | ||||
As of September 30, 2013, the Company had 210,000,000 shares of its common stock issued and outstanding. |
Note_4_Preferred_Stock
Note 4 - Preferred Stock | 9 Months Ended |
Sep. 30, 2013 | |
Notes | |
Note 4 - Preferred Stock | 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 September 30, 2013, the Company had no shares of its preferred stock issued and outstanding. |
Note_5_Income_Taxes
Note 5 - Income Taxes | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Notes | |||||||
Note 5 - Income Taxes | NOTE 5 – Income Taxes | ||||||
The provision (benefit) for income taxes for the period from February 23, 2011 (inception) to September 30, 2013 was as follows, assuming a 35 percent effective tax rate: | |||||||
For the nine | For the period | ||||||
months ended | 23-Feb-11 | ||||||
9/30/13 | (inception) to | ||||||
9/30/13 | |||||||
Current tax provision: | |||||||
Federal | |||||||
Taxable income | $ | - | $ | - | |||
Total current tax provision | $ | - | $ | - | |||
Deferred tax provision: | |||||||
Federal | |||||||
Loss carryforwards | $ | 8,898 | $ | 51,635 | |||
Change in valuation allowance | -8,898 | -51,635 | |||||
Total deferred tax provision | $ | - | $ | - | |||
As of September 30, 2013, the Company had approximately $147,529 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 September 30, 2013 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_Related_Party_Transacti
Note 6 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Notes | |
Note 6 - Related Party Transactions | NOTE 6 – Related Party Transactions |
As of September 30, 2013, the Company operated out of office space that is being provided to us by our former treasurer and secretary, Jae Hwang, free of charge. There is no written agreement or other material terms relating to this arrangement. | |
For the period February 23, 2011 (inception) to September 30, 2013 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 September 30, 2013, the Company had notes payable to a related party stockholder in the amount of $50,350. These notes are payable on demand and are non-interest bearing. As of September 30, 2013 these notes had accrued $8,792 in imputed interest that has been recorded in the financial statements as additional paid-in capital. During the three months ended September 30, 2013 these notes accrued $1,069 in imputed interest. |
Note_7_Recent_Accounting_Prono
Note 7 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Notes | |
Note 7 - Recent Accounting Pronouncements | NOTE 7 – Recent Accounting Pronouncements |
In December 2011, the FASB issued ASU 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This update defers the requirement to present items that are reclassified from accumulated other comprehensive income to net income in both the statement of income where net income is presented and the statement where other comprehensive income is presented. The adoption of ASU 2011-12 has not had a material impact on the Company’s financial position or results of operations. | |
In December 2011, the FASB issued ASU No. 2011-11 “Balance Sheet: Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). This Update requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. The amended guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The adoption of ASU 2011-11 has not had a material impact on the Company’s financial position or results of operations. | |
In July 2012, the FASB issued ASU 2012-02, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” in Accounting Standards Update No. 2012-02. This update amends ASU 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment and permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles - Goodwill and Other - General Intangibles Other than Goodwill. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 has not had a material impact on the Company’s financial position or results of operations. | |
In August 2012, the FASB issued ASU 2012-03, “Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 114, Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22 (SEC Update)” in Accounting Standards Update No. 2012-03. This update amends various SEC paragraphs pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 has not had a material impact on the Company’s financial position or results of operations. | |
In October 2012, the FASB issued Accounting Standards Update ASU 2012-04, “Technical Corrections and Improvements” in Accounting Standards Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification. These amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 has not had a material impact on the Company’s financial position or results of operations. | |
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 has not had a material impact on the Company’s financial position or results of operations. | |
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to: | |
Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and | |
Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | |
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 has not had a material impact on the Company’s financial position or results of operations. | |
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 statements. |
Note_8_Subsequent_Events
Note 8 - Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Notes | |
Note 8 - Subsequent Events | NOTE 8 – 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: Unaudited Interim Financial Information (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information |
The accompanying Balance Sheet as of September 30, 2013, Statements of Operations for the three months ended September 30, 2013 and 2012, for the nine months ended September 30, 2013 and 2012, and cumulative from February 23, 2011 (Inception) to September 30, 2013, Statement of Stockholder’s (Deficit) for the cumulative period from February 23, 2011 (Inception) to September 30, 2013, and the Statements of Cash Flows for the nine months ended September 30, 2013 and 2012, and cumulative from February 23, 2011 (Inception) to September 30, 2013, 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 September 30, 2013 and its results of operations and its cash flows for the period ended September 30, 2013 and cumulative from February 23, 2011 (inception) to September 30, 2013. The results for the period ended September 30, 2013 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2013. |
Note_1_Summary_of_Significant_2
Note 1 - Summary of Significant Accounting Policies: Organization (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | |
Organization | 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. The Company’s business plan calls for the Company to import high-end handmade lace wigs and hairpieces, as well as other beauty supplies and products, manufactured in China and South Korea into the United States. SW China Imports intends to sell these products in bulk to beauty supply stores, hair salons, and independent hair stylists. SW China Imports also intends to sell its products directly to the retail consumer via the Internet. |
Note_1_Summary_of_Significant_3
Note 1 - Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | |
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 September 30, 2013 and for the period February 23, 2011 (inception) to September 30, 2013. |
Note_1_Summary_of_Significant_4
Note 1 - Summary of Significant Accounting Policies: Use of Estimates (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | |
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. |
Note_1_Summary_of_Significant_5
Note 1 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | |
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 September 30, 2013 and December 31, 2012, the Company had no cash equivalents. |
Note_1_Summary_of_Significant_6
Note 1 - Summary of Significant Accounting Policies: Investments (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | |
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 September 30, 2013 and December 31, 2012 the Company had no investments. |
Note_1_Summary_of_Significant_7
Note 1 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Policies | ||||||||||
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 as of September 30, 2013 are as follows: | ||||||||||
Fair Value Measurement at September 30, 2013 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | Significant Other Observable Inputs | |||||||||
(Level 1) | (Level 2) | Significant Unobservable Inputs | ||||||||
(Level 3) | ||||||||||
Description | 9/30/13 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | 2,743 | $ | 2,743 | $ | - | $ | - | ||
$ | 2,743 | $ | 2,743 | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 14,222 | $ | 14,222 | $ | - | $ | - | ||
Note payable to stockholder | 50,350 | 50,350 | - | - | ||||||
$ | 64,572 | $ | 64,572 | $ | - | $ | - | |||
The estimated fair values of the Company’s financial instruments as of December 31, 2012 are as follows: | ||||||||||
Fair Value Measurement at December 31, 2012 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | Significant Other Observable Inputs | |||||||||
(Level 1) | (Level 2) | Significant Unobservable Inputs | ||||||||
(Level 3) | ||||||||||
Description | 12/31/12 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | 600 | $ | 600 | $ | - | $ | - | ||
$ | 600 | $ | 600 | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 559 | $ | 559 | $ | - | $ | - | ||
Note payable to stockholder | 39,550 | 39,550 | - | - | ||||||
$ | 40,109 | $ | 40,109 | $ | - | $ | - | |||
Note_1_Summary_of_Significant_8
Note 1 - Summary of Significant Accounting Policies: Net Loss Per Share Calculation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | |
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 September 30, 2013 and cumulative from February 23, 2011 (inception) to September 30, 2013 the Company had no dilutive financial instruments issued or outstanding. |
Note_1_Summary_of_Significant_9
Note 1 - Summary of Significant Accounting Policies: Income Taxes (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | |
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. |
Recovered_Sheet1
Note 1 - Summary of Significant Accounting Policies: Fiscal Year (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | |
Fiscal Year | Fiscal Year |
The Company elected December 31st for its fiscal year end. |
Recovered_Sheet2
Note 1 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments: Fair Value Measurement Table as of September 30, 2013 (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Tables/Schedules | ||||||||||
Fair Value Measurement Table as of December 31, 2012 | ||||||||||
Fair Value Measurement at December 31, 2012 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | Significant Other Observable Inputs | |||||||||
(Level 1) | (Level 2) | Significant Unobservable Inputs | ||||||||
(Level 3) | ||||||||||
Description | 12/31/12 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | 600 | $ | 600 | $ | - | $ | - | ||
$ | 600 | $ | 600 | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 559 | $ | 559 | $ | - | $ | - | ||
Note payable to stockholder | 39,550 | 39,550 | - | - | ||||||
$ | 40,109 | $ | 40,109 | $ | - | $ | - |
Recovered_Sheet3
Note 1 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments: Fair Value Measurement Table as of December 31, 2012 (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Tables/Schedules | ||||||||||
Fair Value Measurement Table as of December 31, 2012 | ||||||||||
Fair Value Measurement at December 31, 2012 Using: | ||||||||||
Quoted Prices In Active Markets For Identical Assets | Significant Other Observable Inputs | |||||||||
(Level 1) | (Level 2) | Significant Unobservable Inputs | ||||||||
(Level 3) | ||||||||||
Description | 12/31/12 | |||||||||
Assets | ||||||||||
Cash and equivalents | $ | 600 | $ | 600 | $ | - | $ | - | ||
$ | 600 | $ | 600 | $ | - | $ | - | |||
Liabilities | ||||||||||
Accounts payable | $ | 559 | $ | 559 | $ | - | $ | - | ||
Note payable to stockholder | 39,550 | 39,550 | - | - | ||||||
$ | 40,109 | $ | 40,109 | $ | - | $ | - |
Note_5_Income_Taxes_Deferred_T
Note 5 - Income Taxes: Deferred Tax Assets and Liabilities Table (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Tables/Schedules | |||||||
Deferred Tax Assets and Liabilities Table | |||||||
For the nine | For the period | ||||||
months ended | 23-Feb-11 | ||||||
9/30/13 | (inception) to | ||||||
9/30/13 | |||||||
Current tax provision: | |||||||
Federal | |||||||
Taxable income | $ | - | $ | - | |||
Total current tax provision | $ | - | $ | - | |||
Deferred tax provision: | |||||||
Federal | |||||||
Loss carryforwards | $ | 8,898 | $ | 51,635 | |||
Change in valuation allowance | -8,898 | -51,635 | |||||
Total deferred tax provision | $ | - | $ | - | |||
Recovered_Sheet4
Note 1 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments: Fair Value Measurement Table as of September 30, 2013 (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jan. 30, 2012 |
Investment Owned, at Fair Value | $40,109 | |||
Cash and Cash Equivalents, at Carrying Value | 2,743 | 600 | 3,987 | 14,773 |
Fair Value, Inputs, Level 1 | ||||
Investment Owned, at Fair Value | $40,109 |
Recovered_Sheet5
Note 1 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments: Fair Value Measurement Table as of December 31, 2012 (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jan. 30, 2012 |
Investment Owned, at Fair Value | $40,109 | |||
Cash and Cash Equivalents, at Carrying Value | 2,743 | 600 | 3,987 | 14,773 |
Fair Value, Inputs, Level 1 | ||||
Investment Owned, at Fair Value | $40,109 |
Note_2_Development_Stage_Activ1
Note 2 - Development Stage Activities and Going Concern (Details) (USD $) | Sep. 30, 2013 |
Details | |
Development Stage Enterprise, Deficit Accumulated During Development Stage | ($59,095,696) |
Note_3_Common_Stock_Details
Note 3 - Common Stock (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Details | ||
Common Stock, Shares Authorized | 250,000,000 | 500,000,000 |
Common Stock, Shares Outstanding | 210,000,000 | 500,000,000 |
Note_4_Preferred_Stock_Details
Note 4 - Preferred Stock (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Details | ||
Preferred Stock, Shares Authorized | 25,000,000 | 50,000,000 |
Note_5_Income_Taxes_Details
Note 5 - Income Taxes (Details) (USD $) | Sep. 30, 2013 |
Details | |
Deferred Tax Assets, Operating Loss Carryforwards | $147,529 |
Note_6_Related_Party_Transacti1
Note 6 - Related Party Transactions (Details) (USD $) | Sep. 30, 2013 |
Details | |
Notes Payable, Related Parties | $50,350 |
Unrecorded Unconditional Purchase Obligation, Imputed Interest | $1,069 |