Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Nov. 07, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Health Advance, Inc. | ' |
Entity Central Index Key | '0001531477 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--07-31 | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Jul-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'FY | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | $0 | ' |
Entity Common Stock, Shares Outstanding | ' | 24,520,000 |
Balance_Sheets
Balance Sheets (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
CURRENT ASSET | ' | ' |
Cash | ' | $526 |
TOTAL ASSET | ' | 526 |
CURRENT LIABILITIES | ' | ' |
Bank indebtedness | 28 | ' |
Accounts payable and accrued liabilities | 46,178 | 29,389 |
Advances from a shareholder (Note 5) | 59,135 | 34,398 |
TOTAL LIABILITIES | 105,341 | 63,787 |
STOCKHOLDERS' DEFICIT | ' | ' |
Authorized: 500,000,000 common stock, par value $0.001 Issued and outstanding: (Note 6) 24,520,000 common stock as at July 31, 2014 (July 31, 2013: 24,520,000 common stock) | 24,520 | 24,520 |
Additional paid-in capital | 168,080 | 144,080 |
Common stock to be issued (Note 6) | 42,500 | 36,500 |
Deficit accumulated during the exploration stage | -340,441 | -268,361 |
TOTAL STOCKHOLDERS' DEFICIT | -105,341 | -63,261 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | ' | $526 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Balance Sheets [Abstract] | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock,shares Authorized | 500,000,000 | 500,000,000 |
Common stock, shares Issued | 24,520,000 | 24,520,000 |
Common stock,shares outstanding | 24,520,000 | 24,520,000 |
Statements_of_Operations_and_C
Statements of Operations and Comprehensive Loss (USD $) | 12 Months Ended | 52 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | |
Statements Of Operations and Comprehensive Loss [Abstract] | ' | ' | ' |
SALES | ' | ' | $100 |
COST OF SALES | ' | ' | 69 |
GROSS PROFIT | ' | ' | 31 |
EXPENSES | ' | ' | ' |
Professional fees | 25,013 | 20,715 | 94,590 |
Office and general | 8,458 | 14,550 | 30,491 |
Rent and occupancy | 14,400 | 14,400 | 51,600 |
Consulting and management fees | 24,000 | 41,000 | 163,000 |
Total expenses | 71,871 | 90,665 | 339,681 |
Foreign exchange loss | -209 | -363 | -791 |
Loss before income taxes | -72,080 | -91,028 | -340,441 |
Income taxes | ' | ' | ' |
NET AND COMPREHENSIVE LOSS FOR THE PERIOD | ($72,080) | ($91,028) | ($340,441) |
Loss per common share, basic and diluted | ($0.00) | ($0.00) | ' |
Weighted average number of common stock outstanding, basic and diluted | 24,520,000 | 24,520,000 | ' |
Statements_of_Stockholders_Def
Statements of Stockholders' Deficit (USD $) | Total | Common Stock | Stock To Be Issued | Additional Paid In Capital | Deficit Accumulated During The Development Stage |
Opening Balance at Apr. 14, 2010 | ' | ' | ' | ' | ' |
Issuance of common stock at inception,value | 1,400 | 14,000 | ' | -12,600 | ' |
Issuance of common stock at inception,shares | ' | 14,000,000 | ' | ' | ' |
Ending Balance at Jul. 31, 2010 | 1,400 | 14,000 | ' | -12,600 | ' |
Ending Balance, shares at Jul. 31, 2010 | ' | 14,000,000 | ' | ' | ' |
Issuance of common stock for cash | 9,200 | 920 | ' | 8,280 | ' |
Issuance of common stock for cash, shares | ' | 920,000 | ' | ' | ' |
Issuance of common stock for services | 65,000 | 6,500 | ' | 58,500 | ' |
Issuance of common stock for services, shares | ' | 6,500,000 | ' | ' | ' |
In-kind contribution of services | 14,000 | ' | ' | 14,000 | ' |
Net loss | -68,177 | ' | ' | ' | -68,177 |
Ending Balance at Jul. 31, 2011 | 21,423 | 21,420 | ' | 68,180 | -68,177 |
Ending Balance, shares at Jul. 31, 2011 | ' | 21,420,000 | ' | ' | ' |
Issuance of common stock for cash | 16,000 | 1,600 | ' | 14,400 | ' |
Issuance of common stock for cash, shares | ' | 1,600,000 | ' | ' | ' |
Issuance of common stock for services | 15,000 | 1,500 | ' | 13,500 | ' |
Issuance of common stock for services, shares | ' | 1,500,000 | ' | ' | ' |
In-kind contribution of services | 24,000 | ' | ' | 24,000 | ' |
Net loss | -109,156 | ' | ' | ' | -109,156 |
Ending Balance at Jul. 31, 2012 | -32,733 | 24,520 | ' | 120,080 | -177,333 |
Ending Balance, shares at Jul. 31, 2012 | ' | 24,520,000 | ' | ' | ' |
Common stock to be issued | 36,500 | ' | 36,500 | ' | ' |
Common stock to be issued, shares | ' | ' | ' | ' | ' |
In-kind contribution of services | 24,000 | ' | ' | 24,000 | ' |
Net loss | -91,028 | ' | ' | ' | -91,028 |
Ending Balance at Jul. 31, 2013 | -63,261 | 24,520 | 36,500 | 144,080 | -268,361 |
Ending Balance, shares at Jul. 31, 2013 | ' | 2,452,000 | ' | ' | ' |
Issuance of common stock for cash | ' | ' | ' | ' | ' |
Issuance of common stock for services | 6,000 | ' | 6,000 | ' | ' |
In-kind contribution of services | 24,000 | ' | ' | 24,000 | ' |
Net loss | -72,080 | ' | ' | ' | -72,080 |
Ending Balance at Jul. 31, 2014 | ($105,341) | $24,520 | $42,500 | $168,080 | ($340,441) |
Ending Balance, shares at Jul. 31, 2014 | ' | 24,520,000 | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | 52 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | |
OPERATING ACTIVITIES | ' | ' | ' |
Net loss for the period | ($72,080) | ($91,028) | ($340,441) |
Adjustments for non-cash items | ' | ' | ' |
Common stock issued for services | ' | 15,000 | 95,000 |
In-kind contribution of services | 24,000 | 24,000 | 86,000 |
Net change in non-cash working capital balances: | ' | ' | ' |
Prepaid expenses | ' | 1,164 | ' |
Accounts payable and accrued liabilities | 16,789 | 19,756 | 46,178 |
Net cash used in operating activities | -31,291 | -31,108 | -113,263 |
FINANCING ACTIVITIES | ' | ' | ' |
Bank indebtedness | 28 | ' | 28 |
Proceeds from issuance of common stock | 6,000 | 21,500 | 54,100 |
Advances from a shareholder | 24,737 | 8,932 | 59,135 |
Net cash provided by financing activities | 30,765 | 30,432 | 113,263 |
Net decrease in cash during the period | -526 | -676 | ' |
Cash, beginning of period | 526 | 1,202 | ' |
Cash, end of period | ' | $526 | ' |
Nature_of_Operations_and_Organ
Nature of Operations and Organization | 12 Months Ended |
Jul. 31, 2014 | |
Nature of Operations and Organization [Abstract] | ' |
NATURE OF OPERATIONS AND ORGANIZATION | ' |
1. NATURE OF OPERATIONS AND ORGANIZATION | |
Nature of Operations | |
Health Advance Inc. (the "Company" or "Health Advance") was incorporated in the State of Wyoming on April 14, 2010. The Company is a development stage company and is an online retailer of home medical products with operations in Canada and the US. |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Jul. 31, 2014 | |
Basis of Presentation [Abstract] | ' |
BASIS OF PRESENTATION | ' |
2. BASIS OF PRESENTATION | |
The Company has earned minimal revenues from limited principal operations and accordingly, the Company's activities have been accounted for as those of a "Development Stage Enterprise" as set forth in Accounting Standards Codification 915, Accounting and Reporting by Development Stage Enterprises ("ASC 915"). Among the disclosures required by ASC 915 are that the Company's financial statements be identified as those of a development stage company, and that the statements of operations, stockholders' equity and cash flows disclose activity since the date of the Company's inception. |
Going_Concern
Going Concern | 12 Months Ended |
Jul. 31, 2014 | |
Going Concern [Abstract] | ' |
GOING CONCERN | ' |
3. GOING CONCERN | |
These financial statements have been prepared assuming the Company will continue on a going concern basis. The Company has incurred losses since inception and the ability of the Company to continue as a going concern depends upon its ability to develop profitable operations and to continue to raise adequate financing. Management is actively targeting sources of additional financing to provide continuation of the Company’s operations. In order for the Company to meet its liabilities as they become due and to continue its operations, the Company is solely dependent upon its ability to generate such financing. | |
There can be no assurance that the Company will be able to continue to raise funds, in which case the Company may be unable to meet its obligations. Should the Company be unable to realize its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts recorded in these financial statements. | |
These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Jul. 31, 2014 | |||
Summary of Significant Accounting Policies [Abstract] | ' | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
The accounting policies of the Company are in accordance with accounting principles generally accepted in the United States of America. Presented below are those policies considered particularly significant: | |||
Revenue Recognition | |||
The Company's revenue recognition policies are in compliance with ASC 605, Revenue Recognition. Revenue from sales to customers are recognized at the date a formal arrangement exists, the price is fixed and determinable, the goods are shipped to the customer and no other significant obligation of the Company exists and collectability is reasonably assured. | |||
Advertising and Marketing Costs | |||
Advertising and marketing costs are expensed as incurred. | |||
Cost of Goods Sold | |||
Costs of goods sold are recognized at the date the goods are shipped to the customer and are matched with revenues. | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist of commercial accounts and interest-bearing bank deposits and are carried at cost, which approximates current value. Items are considered to be cash equivalents if the original maturity is three months or less. | |||
Stock-Based Compensation | |||
The Company accounts for Stock-Based Compensation in accordance with ASC 718, Compensation – Stock Compensation. ASC 718 establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity ’ s equity instruments or that may be settled by the issuance of those equity instruments. ASC 718 focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the consolidated financial statements. That cost is measured based on the fair value of the equity or liability instruments issued. | |||
Comprehensive Income | |||
The Company follows the guidance in ASC 220, Comprehensive Income. ASC 220 establishes standards for the reporting and presentation of comprehensive income and its components in a full set of consolidated financial statements. Comprehensive income is presented in the statements of changes in stockholders' equity (deficit), and consists of unrealized gains (losses) on available for sale marketable securities and foreign currency translation adjustments. ASC 220 requires only additional disclosures in the financial statements and does not affect the Company's financial position or results of operations. | |||
Fair Value of Financial Instruments | |||
The Company adopted Statement of Financial Accounting Standards (“SFAS”) No. 157 Fair Value Measurements (“SFAS 157”), superseded by ASC 820-10, which defines fair value, establishes a framework for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities. The impact of adopting ASC 820-10 was not significant to the Company’s financial statements. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||
● | Level 1 – Valuation based on quoted market prices in active markets for identical assets or liabilities. | ||
● | Level 2 – Valuation based on quoted market prices for similar assets and liabilities in active markets. | ||
● | Level 3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management’s best estimate of what market participants would use as fair value. | ||
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||
Income Taxes | |||
The Company accounts for income taxes pursuant to ASC 740-10, (formerly SFAS No. 109), Accounting for Income Taxes. Deferred tax assets and liabilities are recorded for differences between the financial statements and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. | |||
Foreign Currency Translation | |||
The functional currency of the Company is USD. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. All exchange gains or losses arising from translation of these foreign currency transactions are included in net income (loss) for the year. | |||
Use of Estimates | |||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. | |||
Earnings or Loss Per Share | |||
The Company accounts for earnings per share pursuant to ASC 260-10-02 (formerly SFAS No. 128), Earnings per Share, which requires disclosure on the consolidated financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common stock outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common stock outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. | |||
There were no dilutive financial instruments for the period from inception (April 14, 2010) to July 31, 2014. | |||
Concentration of Credit Risk | |||
ASC 815-10 (formerly SFAS No. 105) Disclosure of Information About Financial Instruments with Off-Balance-Sheet Risk and Financial Instruments with Concentration of Credit Risk, requires disclosure of any significant off-balance-sheet risk and credit risk concentration. The Company does not have significant off-balance-sheet risk or credit concentration. | |||
Recent Accounting Pronouncements | |||
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. | |||
Effective October 1, 2013, the Company adopted the amended guidance in ASC Topic 210, Balance Sheet. The amended guidance addresses disclosure of offsetting financial assets and liabilities. It requires entities to add disclosures showing both gross and net information about instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. The updated disclosures have been implemented retrospectively and do not impact our financial position or results of operations. | |||
Effective October 1, 2013, the Company adopted the amended guidance in ASC Topic 220, Comprehensive Income. The amended guidance requires entities to disclose additional information about reclassification adjustments, including (1) changes in accumulated other comprehensive income by component and (2) significant items reclassified out of accumulated other comprehensive income by presenting the amount reclassified and the individual income statement line items affected. The updated disclosures have been implemented prospectively and do not impact our financial position or results of operations. | |||
On May 28, 2014, the FASB issued a new financial accounting standard on revenue from contracts with customers, Update No. 2014-09—Revenue from Contracts with Customers (Topic 606). The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of this accounting standard” | |||
Effective June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915). Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The objective of the amendments is to improve financial reporting by reducing the cost and complexity associated with the incremental reporting requirements for development stage entities. As a result, the amendments in this Update remove all incremental financial reporting requirements from U.S. GAAP for development stage entities. | |||
The amendments also eliminate an exception previously provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity at risk. The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to: | |||
1) present inception-to-date information in the statements of income, cash flows, and shareholder equity; | |||
2) label the financial statements as those of a development stage entity; | |||
3) disclose a description of the development stage activities in which the entity is engaged; and | |||
4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. | |||
The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. | |||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Jul. 31, 2014 | ||
Related Party Transactions [Abstract] | ' | |
RELATED PARTY TRANSACTIONS | ' | |
5. RELATED PARTY TRANSACTIONS | ||
The transactions with related parties were in the normal course of operations and were measured at the exchange value which represented the amount of consideration established and agreed to by the parties. Related party transactions not disclosed elsewhere in these financial statements are as follows: | ||
a. | The Company paid $14,400 ($1,200 per month) each for the years ended July 31, 2014 and 2013 to a shareholder and director in respect of rent and occupancy. The Company also paid $2,400 ($200 per month) each for the years ended July 31, 2014 and 2013 in respect of certain administrative services included in office and general. In addition, the Company has charged $24,000 ($2,000 per month) each for the years ended July 31, 2014 and 2013 representing the costs of estimated services from a shareholder. These amounts have been debited to consulting and management fees with corresponding credit to additional paid in capital. | |
b. | Advances from a shareholder of the Company as at July 31, 2014 were $59,135 (2013 - $34,398). These advances are non interest bearing, unsecured and with no specific terms of repayment. |
Capital_Stock
Capital Stock | 12 Months Ended |
Jul. 31, 2014 | |
Capital Stock [Abstract] | ' |
CAPITAL STOCK | ' |
6. CAPITAL STOCK | |
COMMON STOCK - AUTHORIZED | |
As at July 31, 2014, the Company has 500,000,000 authorized shares of common stock with a par value of $0.001 per share. | |
COMMON STOCK - ISSUED AND OUTSTANDING | |
Company’s outstanding 24,520,000 shares of common stock ($24,520) as at July 31, 2014 consisted of the following: | |
On April 14, 2010 the Company issued 14,000,000 shares of common stock at $0.0001 per share to the founding shareholder for proceeds of $1,400. | |
During fiscal 2011, the Company completed non-brokered private placements of 920,000 shares of common stock at $0.01 per share for proceeds of $9,200. | |
During fiscal 2011, the Company issued 6,500,000 common stock for legal, consulting and web design services and directors fees. These services were valued at $0.01 per share. | |
On November 1, 2011 the Company issued 1,500,000 shares of common stock for professional services rendered. These services were valued at $15,000. | |
On July 18, 2012 the Company issued 1,600,000 shares at $0.01 per share for a total of $16,000. | |
COMMON STOCK – TO BE ISSUED | |
The Company’s 6,290,000 common stock to be issued amounting to $42,500 as at July 31, 2014 consist of the following: | |
On November 14, 2012, the Company received $10,000 in exchange for 2,000,000 shares of common stock at $0.005 per share. | |
In December 2012, the Company agreed to issue 1,000,000 shares of common stock valued at $0.01 per share for a total of $10,000 for web design services and repairs. | |
In January 2013, the Company agreed to issue 500,000 shares of common stock valued at $0.01 per share for a total of $5,000 for consulting services. | |
In March 2013, the Company agreed to issue 800,000 shares of common stock at an issue price of $0.01 per share for a total of $8,000. | |
In June 2013, the Company agreed to issue 350,000 shares of common stock at an issue price of $0.01 per share for a total of $3,500. | |
In October 2013, the Company received $4,000 in exchange of 1,600,000 shares of common stock at an issue price of $0.0025 per share. | |
In April 2014, the Company received $2,000 in exchange of 40,000 shares of common stock at an issue price of $0.05 per share. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended |
Jul. 31, 2014 | |
Supplemental Cash Flow Information [Abstract] | ' |
SUPPLEMENTAL CASH FLOW INFORMATION | ' |
7. SUPPLEMENTAL CASH FLOW INFORMATION | |
During the period from inception to July 31, 2014, there were no interests or taxes paid by the Company. | |
During the year ended July 31, 2014 the controlling shareholder contributed management services of $2,000 per month totaling $24,000. (2013 - $24,000). |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
8. INCOME TAXES | |||||||||
The Company accounts for income taxes in accordance with ASC 740-20. ASC 740-20 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates. The effects of future changes in tax laws or rates are not anticipated. | |||||||||
Under ASC 740-20 income taxes are recognized for the following: a) amount of tax payable for the current year, and b) deferred tax liabilities and assets for future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. | |||||||||
The Company has income tax losses available to be applied against future years income as a result of the losses incurred since inception. However, due to the losses incurred in the period and expected future operating results, management determined that it is more likely than not that the deferred tax asset resulting from the tax losses available for carry forward will not be realized through the reduction of future income tax payments. Accordingly a 100% valuation allowance has been recorded for income tax losses available for carry forward. | |||||||||
The provision for income taxes reconciles to the amount obtained by applying the statutory income tax rates of 38% (2013: 38%) to income before provision for taxes as follows: | |||||||||
2014 | 2013 | ||||||||
Computed expected tax | $ | (27,390 | ) | $ | (34,591 | ) | |||
Expenses not deductible for tax purposes | 9,120 | 9,120 | |||||||
Tax losses available for carry forward | 18,270 | 25,471 | |||||||
Provision for income taxes | $ | - | $ | - | |||||
The components of deferred income taxes, have been determined at the US federal statutory rate of 38% (2013: 38%) and are as follows: | |||||||||
2014 | 2013 | ||||||||
Deferred income tax assets: | |||||||||
Income tax losses available for carry forward | $ | 71,608 | $ | 49,157 | |||||
Valuation allowance | (71,608 | ) | (49,157 | ) | |||||
Deferred income taxes | $ | - | $ | - |
Financial_Instruments
Financial Instruments | 12 Months Ended |
Jul. 31, 2014 | |
Financial Instruments [Abstract] | ' |
FINANCIAL INSTRUMENTS | ' |
9. FINANCIAL INSTRUMENTS | |
Credit Risk | |
Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company is not significantly exposed to this risk as generally it does not have any significant amount of cash. | |
Currency Risk | |
The Company is exposed to financial risk related to the fluctuation of foreign exchange rates. The Company's functional currency is U.S. dollars. A significant change in the currency exchange rates between the U.S. dollar relative to the Canadian dollar could have an effect on the Company's results of operations, financial position and cash flows. The Company has not entered into any derivative financial instruments to manage exposures to currency fluctuations. | |
Liquidity Risk | |
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company's normal operating requirements on an ongoing basis and its expansionary plans. The Company ensures that there are sufficient funds to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash. | |
Fair Values | |
The Company's financial instruments consist of cash, bank indebtedness and accounts payable and accrued liabilities and advances from stockholder and advances from related party. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values due to the short-term maturity of these instruments. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Jul. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
10. SUBSEQUENT EVENTS | |
The Company’s management has evaluated subsequent events through the filing date of these financial statements and has determined that there are no material subsequent events to report. |
Unaudited_Information
Unaudited Information | 12 Months Ended |
Jul. 31, 2014 | |
Unaudited Information [Abstract] | ' |
UNAUDITED INFORMATION | ' |
11. UNAUDITED INFORMATION | |
Effective March 6, 2014 our predecessor auditor, DNTW Toronto LLP, formerly known as DNTW Chartered Accountants, LLP (“DNTW”), is no longer registered with the PCAOB and on May 20, 2014 the Securities and Exchange Commission ("SEC”) denied the two partners of DNTW, the privilege of appearing or practicing before the SEC as accountants. Therefore, the Company is no longer allowed to include any audit report issued by DNTW in any filing with the SEC on or after May 20, 2014. SRCO Professional Corporation, Chartered Accountant, has audited the financial statements for the fiscal years ended July 31, 2014 and 2013. Our statement of operations for the cumulative period from April 14, 2010 (Inception) to July 31, 2014 is therefore deemed to be unaudited. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Jul. 31, 2014 | |||
Summary of Significant Accounting Policies [Abstract] | ' | ||
Revenue Recognition | ' | ||
Revenue Recognition | |||
The Company's revenue recognition policies are in compliance with ASC 605, Revenue Recognition. Revenue from sales to customers are recognized at the date a formal arrangement exists, the price is fixed and determinable, the goods are shipped to the customer and no other significant obligation of the Company exists and collectability is reasonably assured. | |||
Advertising and Marketing Costs | ' | ||
Advertising and Marketing Costs | |||
Advertising and marketing costs are expensed as incurred. | |||
Cost of Goods Sold | ' | ||
Cost of Goods Sold | |||
Costs of goods sold are recognized at the date the goods are shipped to the customer and are matched with revenues. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist of commercial accounts and interest-bearing bank deposits and are carried at cost, which approximates current value. Items are considered to be cash equivalents if the original maturity is three months or less. | |||
Stock-Based Compensation | ' | ||
Stock-Based Compensation | |||
The Company accounts for Stock-Based Compensation in accordance with ASC 718, Compensation – Stock Compensation. ASC 718 establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity ’ s equity instruments or that may be settled by the issuance of those equity instruments. ASC 718 focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the consolidated financial statements. That cost is measured based on the fair value of the equity or liability instruments issued. | |||
Comprehensive Income | ' | ||
Comprehensive Income | |||
The Company follows the guidance in ASC 220, Comprehensive Income. ASC 220 establishes standards for the reporting and presentation of comprehensive income and its components in a full set of consolidated financial statements. Comprehensive income is presented in the statements of changes in stockholders' equity (deficit), and consists of unrealized gains (losses) on available for sale marketable securities and foreign currency translation adjustments. ASC 220 requires only additional disclosures in the financial statements and does not affect the Company's financial position or results of operations. | |||
Fair Value of Financial Instruments | ' | ||
Fair Value of Financial Instruments | |||
The Company adopted Statement of Financial Accounting Standards (“SFAS”) No. 157 Fair Value Measurements (“SFAS 157”), superseded by ASC 820-10, which defines fair value, establishes a framework for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities. The impact of adopting ASC 820-10 was not significant to the Company’s financial statements. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||
● | Level 1 – Valuation based on quoted market prices in active markets for identical assets or liabilities. | ||
● | Level 2 – Valuation based on quoted market prices for similar assets and liabilities in active markets. | ||
● | Level 3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management’s best estimate of what market participants would use as fair value. | ||
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||
Income Taxes | ' | ||
Income Taxes | |||
The Company accounts for income taxes pursuant to ASC 740-10, (formerly SFAS No. 109), Accounting for Income Taxes. Deferred tax assets and liabilities are recorded for differences between the financial statements and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. | |||
Foreign Currency Translation | ' | ||
Foreign Currency Translation | |||
The functional currency of the Company is USD. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. All exchange gains or losses arising from translation of these foreign currency transactions are included in net income (loss) for the year. | |||
Use of Estimates | ' | ||
Use of Estimates | |||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. | |||
Earnings or Loss Per Share | ' | ||
Earnings or Loss Per Share | |||
The Company accounts for earnings per share pursuant to ASC 260-10-02 (formerly SFAS No. 128), Earnings per Share, which requires disclosure on the consolidated financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common stock outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common stock outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. | |||
There were no dilutive financial instruments for the period from inception (April 14, 2010) to July 31, 2014. | |||
Concentration of Credit Risk | ' | ||
Concentration of Credit Risk | |||
ASC 815-10 (formerly SFAS No. 105) Disclosure of Information About Financial Instruments with Off-Balance-Sheet Risk and Financial Instruments with Concentration of Credit Risk, requires disclosure of any significant off-balance-sheet risk and credit risk concentration. The Company does not have significant off-balance-sheet risk or credit concentration. | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. | |||
Effective October 1, 2013, the Company adopted the amended guidance in ASC Topic 210, Balance Sheet. The amended guidance addresses disclosure of offsetting financial assets and liabilities. It requires entities to add disclosures showing both gross and net information about instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. The updated disclosures have been implemented retrospectively and do not impact our financial position or results of operations. | |||
Effective October 1, 2013, the Company adopted the amended guidance in ASC Topic 220, Comprehensive Income. The amended guidance requires entities to disclose additional information about reclassification adjustments, including (1) changes in accumulated other comprehensive income by component and (2) significant items reclassified out of accumulated other comprehensive income by presenting the amount reclassified and the individual income statement line items affected. The updated disclosures have been implemented prospectively and do not impact our financial position or results of operations. | |||
On May 28, 2014, the FASB issued a new financial accounting standard on revenue from contracts with customers, Update No. 2014-09—Revenue from Contracts with Customers (Topic 606). The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of this accounting standard” | |||
Effective June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915). Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The objective of the amendments is to improve financial reporting by reducing the cost and complexity associated with the incremental reporting requirements for development stage entities. As a result, the amendments in this Update remove all incremental financial reporting requirements from U.S. GAAP for development stage entities. | |||
The amendments also eliminate an exception previously provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity at risk. The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to: | |||
1) present inception-to-date information in the statements of income, cash flows, and shareholder equity; | |||
2) label the financial statements as those of a development stage entity; | |||
3) disclose a description of the development stage activities in which the entity is engaged; and | |||
4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. | |||
The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Reconciliation of provision for income taxes | ' | ||||||||
2014 | 2013 | ||||||||
Computed expected tax | $ | (27,390 | ) | $ | (34,591 | ) | |||
Expenses not deductible for tax purposes | 9,120 | 9,120 | |||||||
Tax losses available for carry forward | 18,270 | 25,471 | |||||||
Provision for income taxes | $ | - | $ | - | |||||
Deferred tax assets | ' | ||||||||
2014 | 2013 | ||||||||
Deferred income tax assets: | |||||||||
Income tax losses available for carry forward | $ | 71,608 | $ | 49,157 | |||||
Valuation allowance | (71,608 | ) | (49,157 | ) | |||||
Deferred income taxes | $ | - | $ | - |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Related Party Transactions (Textual) | ' | ' |
Total payment for rent and occupancy costs to a shareholder and director | $14,400 | $14,400 |
Monthly payment for rent and occupancy costs to a shareholder and director | 1,200 | 1,200 |
Total payment for administrative services, office and general | 2,400 | 2,400 |
Monthly payment for administrative services, office and general | 200 | 200 |
Total cost of services | 24,000 | 24,000 |
Monthly payment for cost of services | 2,000 | 2,000 |
Advances from a shareholder (Note 5) | $59,135 | $34,398 |
Capital_Stock_Details
Capital Stock (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jul. 31, 2010 | Jul. 31, 2014 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2010 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | Jul. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Nov. 14, 2012 | |
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Stock To Be Issued | Stock To Be Issued | Stock To Be Issued | Stock To Be Issued | Stock To Be Issued | Stock To Be Issued | Stock To Be Issued | Stock To Be Issued | Stock To Be Issued | ||||||
Capital Stock (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | 500,000,000 | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | $0.00 | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | ' | 24,520,000 | ' | ' | 24,520,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, value outstanding | ' | $24,520 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock at inception,value | 1,400 | ' | ' | ' | ' | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock at inception,shares | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock at inception, per share | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for services | ' | 6,000 | 15,000 | 65,000 | ' | ' | 1,500 | 6,500 | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for services, shares | ' | ' | ' | ' | ' | ' | 1,500,000 | 6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for services, per share | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for cash | ' | ' | 16,000 | 9,200 | ' | ' | 1,600 | 920 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for cash, shares | ' | ' | ' | ' | ' | ' | 1,600,000 | 920,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for cash, per share | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, outstanding | ' | $42,500 | ' | ' | $36,500 | ' | ' | ' | ' | ' | $2,000 | $4,000 | $3,500 | $8,000 | $5,000 | $10,000 | $10,000 |
Common stock issuable shares | ' | 6,290,000 | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | 1,600,000 | 350,000 | 800,000 | 500,000 | 1,000,000 | 2,000,000 |
Common stock issuable, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.05 | $0.00 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | 52 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | |
Supplemental Cash Flow Information (Textual) | ' | ' | ' |
Monthly in-kind contribution by controlling shareholder | $2,000 | ' | ' |
In-kind contribution of services by controlling shareholder | $24,000 | $24,000 | $86,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Reconciliation of provision for income tax | ' | ' |
Computed expected tax | ($27,390) | ($34,591) |
Expenses not deductible for tax purposes | 9,120 | 9,120 |
Tax losses available for carryforward | 18,270 | 25,471 |
Provision for income taxes | $0 | $0 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
Deferred income tax assets: | ' | ' |
Income tax losses available for carry forward | $71,608 | $49,157 |
Valuation allowance | -71,608 | -49,157 |
Deferred income taxes | $0 | $0 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Income Taxes (Textual) | ' | ' |
Percentage of valuation allowance recorded for income tax purposes | 100.00% | ' |
US federal statutory rate | 38.00% | 38.00% |