Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Feb. 17, 2017 | |
Document and Entity Information: | ||
Entity Registrant Name | MEGANET CORP | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 1,527,795 | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 100,000,000 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Date of Incorporation | Mar. 26, 2009 | |
Trading Symbol | mgne |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash | $ 159 | $ 1,627 |
Total current assets | 159 | 1,627 |
Property and equipment, net | 7,383 | 18,104 |
Total assets | 7,542 | 19,731 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,310,915 | 1,139,767 |
Officer loan | 799,823 | 760,285 |
Total current liabilities | 2,110,738 | 1,900,052 |
Total liabilities | 2,110,738 | 1,900,052 |
Stockholders' deficit: | ||
Common stock; $0.001 par value, 100,000,000 shares authorized and 100,000,000 and 100,000,000 shares issued and outstanding, respectively | 100,000 | 100,000 |
Additional paid-in capital | 2,983,886 | 2,925,555 |
Accumulated deficit | (5,187,082) | (4,905,876) |
Total stockholders' deficit | (2,103,196) | (1,880,321) |
Total liabilities and stockholders' deficit | $ 7,542 | $ 19,731 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Mar. 31, 2016 |
Statement of Financial Position | ||
Common Stock Par Value | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock Shares Issued | 100,000,000 | 100,000,000 |
Common Stock Shares Outstanding | 100,000,000 | 100,000,000 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement | ||||
Revenues | $ 486 | $ 120 | $ 82,620 | |
Cost of revenues | ||||
Gross profit | 486 | 120 | 82,620 | |
Operating expenses: | ||||
General and administrative | 8,134 | 7,172 | 31,790 | 66,067 |
Depreciation | 2,945 | 11,208 | 10,721 | 33,178 |
Compensation and related payroll taxes | 30,472 | 30,049 | 90,484 | 98,262 |
Rent | 30,000 | 30,000 | 90,000 | 90,131 |
Total operating expenses | 71,551 | 78,429 | 222,995 | 287,638 |
Loss before other expenses | (71,551) | (77,943) | (222,875) | (205,018) |
Other income (expenses) | ||||
Bitcoin mining income | 7,867 | |||
Bitcoin mining expense | (608) | |||
Interest expense | (19,880) | (20,859) | (58,331) | (53,260) |
Total other income (expenses) | (19,880) | (20,859) | (58,331) | (46,001) |
Loss before income taxes | (91,431) | (98,802) | (281,206) | (251,019) |
Provision for income taxes | ||||
Net loss | $ (91,431) | $ (98,802) | $ (281,206) | $ (251,019) |
Basic loss per common share | $ 0 | $ 0 | $ 0 | $ 0 |
Basic weighted average common shares outstanding | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (281,206) | $ (251,019) |
Adjustments to reconcile net loss to net cash (used) provided by operating activities: | ||
Depreciation | 10,721 | 33,178 |
Imputed interest on officer advance | 58,331 | 53,260 |
Changes in operating assets and liabilities: | ||
Increase in accounts payable and accrued expenses | 171,148 | 120,796 |
Increase (decrease) in deferred revenue | (40,000) | |
Net cash used in operating activities | (41,006) | (83,785) |
Cash flows from investing activities: | ||
Purchase of fixed assets | (3,975) | |
Net cash used by investing activities | (3,975) | |
Cash flows from financing activities: | ||
Advances from officer | 55,042 | 129,575 |
Repayment of officer advances | (15,504) | (41,785) |
Net cash provided by financing activities | 39,538 | 87,790 |
Net change in cash | (1,468) | 30 |
Cash, beginning of period | 1,627 | 94 |
Cash, end of period | 159 | 124 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | ||
Cash paid for taxes |
1. Description of Business and
1. Description of Business and History | 9 Months Ended |
Dec. 31, 2016 | |
Notes | |
1. Description of Business and History | 1. DESCRIPTION OF BUSINESS AND HISTORY Meganet Corporation was incorporated in Nevada on March 26, 2009 (the "Company" or "Meganet"). Prior to the formation of the current entity, a now dissolved entity under the name Meganet Corporation was incorporated in California with common ownership and similar business objectives. The integration of the Company's operations from the now dissolved California company to the Nevada company is considered a recapitalization due to the common ownership resulting in the assets and liabilities being recorded at a carryover basis as determined under accounting principles generally accepted in the United States of America. The former entity had been dissolved before incorporation on March 26, 2009. Meganet is focused on the development of data security solutions for enterprise, large organizations and corporations around the globe, including the U.S. Department of Defense, Military Intelligence and the Federal Government. The Company's data security solutions include a patented encryption algorithm which enhances security exponentially. The Company out-sources the manufacture of its counter-IED products, including bomb jammers, dismounted backpack portable jammers and facility jammers. The Company also develops and sells cell phone, satellite and wireless interceptors. Other data security solutions include encrypted cell phones, land lines, fax, PDA, radio, and satellites. Intelligence and counter-intelligence solutions include the development of SPY and RAT phones and devices for intelligence gathering. Counter-intelligence solutions include bugs, bug detectors, bomb sniffers, miniature cameras and digital video recorders. The Company maintains technology development, executive and sales offices in Las Vegas, Nevada. The accompanying unaudited financial statements have been prepared by Meganet pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim consolidated financial statements include normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim consolidated financial statements be read in conjunction with Meganet's most recent audited financial statements. Operating results for the nine months ended December 31, 2016 are not necessarily indicative of the results that may be expected for the year ending March 31, 2017. |
2. Going Concern
2. Going Concern | 9 Months Ended |
Dec. 31, 2016 | |
Notes | |
2. Going Concern | 2. GOING CONCERN The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses since inception and has an accumulated deficit of $5,187,082 as of December 31, 2016. The Company requires capital for its contemplated operational and marketing activities. The Company's ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company's contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties. There can be no surety that there will be sales sufficient to cover the next 12 months of cash operating expenses. In order to mitigate the risk related with this uncertainty, the CEO has agreed to contribute additional amounts to capital as needed to cover operating expenses. |
3. Related Party Transactions
3. Related Party Transactions | 9 Months Ended |
Dec. 31, 2016 | |
Notes | |
3. Related Party Transactions | 3. RELATED PARTY TRANSACTIONS Officer loan In accordance with FASB ASC 835-30 "Imputation of Interest", interest has been imputed on all advances made to Company by the president. During the nine month period ending December 31, 2016 and 2015, interest has been imputed and charged to additional paid-in capital in the amount of $58,331 and $53,260, respectively. Employment agreements |
1. Description of Business and9
1. Description of Business and History (Details) | 9 Months Ended |
Dec. 31, 2016 | |
Details | |
Date of Incorporation | Mar. 26, 2009 |
2. Going Concern (Details)
2. Going Concern (Details) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Details | ||
Accumulated deficit | $ (5,187,082) | $ (4,905,876) |
3. Related Party Transactions (
3. Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2016 | Dec. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Advances from officer | $ 55,042 | $ 129,575 | ||||
Repayment of officer advances | 15,504 | 41,785 | ||||
Officer loan | $ 799,823 | 799,823 | $ 760,285 | |||
Imputed interest on officer advance | 58,331 | 53,260 | ||||
Compensation and related payroll taxes | 30,472 | $ 30,049 | 90,484 | 98,262 | ||
Accounts payable and accrued liabilities | 1,310,915 | 1,310,915 | 1,139,767 | |||
President | ||||||
Advances from officer | 23,700 | 55,042 | ||||
Repayment of officer advances | $ 5,600 | 15,504 | ||||
Officer loan | 799,823 | 799,823 | 760,285 | |||
Imputed interest on officer advance | 58,331 | 53,260 | ||||
Officers' Compensation | $ 120,000 | |||||
Sales Commission Rate | 10.00% | |||||
Compensation and related payroll taxes | $ 90,012 | $ 98,262 | ||||
Accounts payable and accrued liabilities | $ 961,329 | $ 961,329 | $ 871,317 |