Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2019 | Jan. 21, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | Apawthecary Pets USA | |
Entity Central Index Key | 0001528697 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-31 | |
Entity Small Business | true | |
Entity Shell Company | true | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Nov. 30, 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Ex Transition Period | true | |
Entity Common Stock Shares Outstanding | 24,827,264 | |
EntityFileNumber | 000-55513 | |
EntityAddressAddressLine1 | 619 S. Ridgeley Drive | |
EntityAddressPostalZipCode | 90036 | |
EntityTaxIdentificationNumber | 261679929 | |
EntityAddressCityOrTown | Los Angeles | |
LocalPhoneNumber | 345-4587 | |
CityAreaCode | 323 | |
EntityAddressStateOrProvince | CALIFORNIA |
Balance Sheets
Balance Sheets - USD ($) | Nov. 30, 2019 | Aug. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 10,113 | $ 20,256 |
Total current assets | 10,113 | 20,256 |
Total Assets | 10,113 | 20,256 |
Current liabilities | ||
Accounts payable and accrued liabilities | 5,366 | 9,957 |
Accounts payable - related parties | 2,522 | 2,522 |
Due to related parties | 70,673 | 70,673 |
Total current liabilities | 78,561 | 83,152 |
Total Liabilities | 78,561 | 83,152 |
Stockholders' deficit | ||
Authorized 75,000,000 of common shares, par value $0.001 Issued and outstanding 24,827,264 common shares issued and outstanding as of November 30, 2019, and August 31, 2019 | 24,827 | 24,827 |
Additional paid in capital | 349,223 | 349,223 |
Accumulated deficit | (442,498) | (439,946) |
Total stockholders' deficit | (68,448) | (62,896) |
Total Liabilities and Stockholders' Deficit | $ 10,113 | $ 20,256 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2019 | Aug. 31, 2019 |
Stockholders' deficit | ||
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 24,827,264 | 24,827,264 |
Common Stock, Shares Outstanding | 24,827,264 | 24,827,264 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Operating Expenses | ||
General and administrative | $ 5,552 | $ 5,122 |
Total operating Expenses | 5,552 | 5,122 |
Net loss | $ (5,552) | $ (5,122) |
Basic and diluted net loss per common share - basic and diluted | $ 0 | $ 0 |
Weighted average number of common shares - basic and diluted | 24,827,264 | 24,827,264 |
Statements Of Changes In Stockh
Statements Of Changes In Stockholders Deficit - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance, amount at Aug. 31, 2018 | $ (26,499) | $ 24,827 | $ 349,223 | $ (400,549) |
Balance, shares at Aug. 31, 2018 | 24,827,264 | |||
Net Income (Loss) | $ (5,122) | $ (5,122) | ||
Balance, shares at Nov. 30, 2018 | 24,827,264 | |||
Balance, amount at Nov. 30, 2018 | $ (31,621) | $ 24,827 | $ 349,223 | $ (405,671) |
Balance, amount at Aug. 31, 2019 | $ (62,896) | $ 24,827 | $ 349,223 | $ (436,946) |
Balance, shares at Aug. 31, 2019 | 24,827,264 | |||
Net Income (Loss) | $ (5,552) | $ (5,552) | ||
Balance, shares at Nov. 30, 2019 | 24,827,264 | |||
Balance, amount at Nov. 30, 2019 | $ (68,448) | $ 24,827 | $ 349,223 | $ (442,498) |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (5,552) | $ (5,122) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accounts payable and accrued liabilities | (4,591) | 370 |
Cash flows used in operating activities | (10,143) | (4,752) |
Net decrease in cash | (10,143) | (4,752) |
Cash and cash equivalents, beginning of period | 20,256 | 42,594 |
Cash and cash equivalents, end of period | 10,113 | 37,842 |
Supplemental disclosures of cash flow information | ||
Interest paid | ||
Income tax paid |
Nature and Continuance of Opera
Nature and Continuance of Operations | 3 Months Ended |
Nov. 30, 2019 | |
Nature and Continuance of Operations | |
NOTE - 1. Nature and Continuance of Operations | Apawthecary Pets USA (the ”Company”) was incorporated under the laws of the States of Nevada on December 27, 2007. The Company intends to operate in the pet industry. On July 20, 2017, the Company changed its name from Bookedbyus Inc. to Apawthecary Pets USA. The Company’s financial statements as at November 30, 2019 and for the year then ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company has a loss of $5,552 for the three months ended November 20, 2019 and $5,122 for the three months ended November 30, 2018 and has a working capital deficit at November 30, 2019. These factors raise substantial doubt about the ability of the Company to continue as a going concern. Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. Management believes that the Company’s capital resources should be adequate to continue operating and maintaining its business strategy for the twelve months after the date the audited financial statements were issued. However, if the Company is unable to raise additional capital in the near future, due to the Company’s liquidity problems, management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. As of November 30, 2019, the Company was not engaged in continued business, and had significant expenses from early stage activities. Although management is currently attempting to implement its business plan and is seeking additional sources of financing, there is no assurance the activity will be successful. Accordingly, the Company must rely on its president to perform essential functions without compensation until a business operation can be commenced. The financial statements do not include any adjustments that may result from the outcome of this uncertainty. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Nov. 30, 2019 | |
Significant Accounting Policies | |
NOTE - 2. Significant Accounting Policies | Basis of presentation The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited financial statement for the year ended August 31, 2019, as filed with the SEC on Form 10-K. In the opinion of management, all normal recurring adjustments which are necessary for a fair presentation of financial statements of the results for the interim period ended November 30, 2019, have been included. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2019, as reported in the Form 10-K have been omitted. |
Due to Related Parties and Rela
Due to Related Parties and Related Party Transactions | 3 Months Ended |
Nov. 30, 2019 | |
Due to Related Parties and Related Party Transactions | |
NOTE - 3. Due to Related Parties and Related Party Transactions | The outstanding balance of management fees payable is $2,522 and $2,552 as of November 30, 2019 and August 31, 2019 respectively. As of November 30, 2019, related parties of the Company have provided a series of loans, totaling $70,673 (August 31, 2019 - $70,673). On August 24, 2017 Apawthecary Pets USA entered into a license agreement with Solace Management Group Inc. a British Columbia corporation. The material terms of such license agreement are: 1. Upon execution of the Agreement, the Apawthecary Pets USA shall provide a non-refundable license fee in the amount of $100,000 (the “License Fee”) to be held in an escrow account pursuant and subject to the terms of an escrow agreement whereby the License Fee will remain in the escrow account until the earlier of a $3,000,000 raise by the Licensee or after the Set-up Period. 2. Term of the License Agreement is 10 years with a 5 year renewal term. The license is an exclusive, non-transferable, non-sub licensable license to manufacture, sell, represent, market, distribute and advertise the Licensed Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Management Group Inc.’s Licensed Products and Services, Marks, Manuals, brands, and the business format, formulations, methods, specifications, standards, and operating procedures. 3. Apawthecary Pets USA shall pay the Solace Management Group Inc. for all packaging and shipment expenses to the Licensee at the then current market rate plus 20%. 4. Royalties will commence to accrue when the Licensed Products are accepted by the Apawthecary Pets USA. Apawthecary Pets USA shall pay quarterly royalties in addition to the yearly royalty fee, 10% of sales based on the wholesale price of each item. Solace Management Group Inc. owns the brand and intellectual property rights to Apawthecary Pets. Apawthecary Pets Inc., a Canadian corporation licensed the brand and distribution rights for Apawthecary Pets for use in Canada from Solace Management Group Inc. Solace Management Group Inc. and Apawthecary Pets USA have a common officer and director, Bradley Kersch. Apawthecary Pets USA has negotiated a licensing and distribution agreement with Solace Management Group Inc. The $100,000 License fee has not been paid, and the agreement was not effective as of November 30, 2019. Aerock Fox provides consulting service to the Company without compensation. Digital Pilot Inc., a company that has a common director (Aerock Fox) with Apawthecary Pets USA, provides an office located in 619 S. Ridgley, Los Angeles CA for an indefinite period of time. |
Capital Stock
Capital Stock | 3 Months Ended |
Nov. 30, 2019 | |
Capital Stock | |
NOTE - 4. Capital Stock | The total authorized capital is 75,000,000 common shares with a par value of $0.001 per common share. Issued and outstanding The Company had 24,827,264 common shares issued and outstanding as at November 30, 2019 and August 31, 2019 respectively. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 2019 | |
Significant Accounting Policies (Policies) | |
Basis of presentation | The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited financial statement for the year ended August 31, 2019, as filed with the SEC on Form 10-K. In the opinion of management, all normal recurring adjustments which are necessary for a fair presentation of financial statements of the results for the interim period ended November 30, 2019, have been included. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2019, as reported in the Form 10-K have been omitted. |
Nature and Continuance of Ope_2
Nature and Continuance of Operations (Details Narrative) - USD ($) | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Nature and Continuance of Operations (Details Narrative) | ||
State of incorporation | Nevada | |
Date of incorporation | Dec. 27, 2007 | |
Net loss | $ (5,552) | $ (5,122) |
Due to Related Parties and Re_2
Due to Related Parties and Related Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | ||
Aug. 24, 2017 | Nov. 30, 2019 | Aug. 31, 2019 | |
Unpaid license fee | $ 100,000 | ||
Outstanding balance of management fees payable | 2,522 | $ 2,552 | |
Due to related parties | $ 70,673 | $ 70,673 | |
License Agreement [Member] | Solace Management Group Inc [Member] | |||
Current market rate | 20.00% | ||
Material terms of license agreement description | 1. Upon execution of the Agreement, the Apawthecary Pets USA shall provide a non-refundable license fee in the amount of $100,000 (the “License Fee”) to be held in an escrow account pursuant and subject to the terms of an escrow agreement whereby the License Fee will remain in the escrow account until the earlier of a $3,000,000 raise by the Licensee or after the Set-up Period. 2. Term of the License Agreement is 10 years with a 5 year renewal term. 3. The license is an exclusive, non-transferable, non-sub licensable license to manufacture, sell, represent, market, distribute and advertise the Licensed Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Products within the Territory on the terms and conditions set forth in the License Agreement and shall include access to, and use of, the Solace Management Group Inc.’s Licensed Products and Services, Marks, Manuals, brands, and the business format, formulations, methods, specifications, standards, and operating procedures. 4. Apawthecary Pets USA shall pay the Solace Management Group Inc. for all packaging and shipment expenses to the Licensee at the then current market rate plus 20%. 5. Royalties will commence to accrue when the Licensed Products are accepted by the Apawthecary Pets USA. Apawthecary Pets USA shall pay quarterly royalties in addition to the yearly royalty fee, 10% of sales based on the wholesale price of each item. | ||
Royalty fee | 10.00% |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - $ / shares | Nov. 30, 2019 | Aug. 31, 2019 |
Capital Stock (Details Narrative) | ||
Common Stock, Per Share Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 24,827,264 | 24,827,264 |
Common Stock, Shares Outstanding | 24,827,264 | 24,827,264 |