Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Apr. 10, 2014 | Jun. 30, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'Eurocan Holdings Ltd. | ' | ' |
Entity Central Index Key | '0001534708 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $92,500 |
Entity Common Stock, Shares Outstanding | ' | 32,910,000 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash | $618 | $5,899 |
Accounts receivable | 0 | 300 |
Total Current Assets | 618 | 6,199 |
Security Deposit | 0 | 3,075 |
Total Assets | 618 | 9,274 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ' | ' |
Accounts payable | 37,640 | 37,771 |
Accrued liabilities | 31,199 | 9,583 |
Deferred revenue | 730 | 0 |
Due to related party | 1,214 | 0 |
Notes payable | 7,150 | 155,000 |
Total Liabilities | 77,933 | 202,354 |
Stockholders' Deficit | ' | ' |
Preferred Stock, 100,000,000 shares authorized, par value $0.0001; None issued and outstanding | 0 | 0 |
Common Stock, 900,000,000 shares authorized, par value $0.0001; 32,910,000 and 12,710,000 shares issued and outstanding, respectively | 3,291 | 1,271 |
Additional Paid-In Capital | 246,691 | 46,711 |
Deficit | -327,297 | -241,062 |
Total Stockholders' Deficit | -77,315 | -193,080 |
Total Liabilities and Stockholders' Deficit | $618 | $9,274 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Deficit | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, Authorized | 100,000,000 | 100,000,000 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, Authorized | 900,000,000 | 900,000,000 |
Common stock, Issued | 32,910,000 | 12,710,000 |
Common stock, outstanding | 32,910,000 | 12,710,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ' | ' |
Revenue | $64,036 | $122,320 |
Cost of sales | 8,216 | 9,285 |
Gross Margin | 55,820 | 113,035 |
Expenses | ' | ' |
Rent | 10,631 | 18,750 |
General and administrative | 38,649 | 44,991 |
Management fees | 14,275 | 20,665 |
Professional fees | 74,032 | 79,678 |
Total operating expenses | 137,587 | 164,084 |
Loss from operations | -81,767 | -51,049 |
Other Income (Expenses) | ' | ' |
Other income | 10,742 | 8,805 |
Interest and bank charges | -15,210 | -14,774 |
Total Other Income (Expense) | -4,468 | -5,969 |
Net Loss | ($86,235) | ($57,018) |
Net Loss Per Share - Basic and Diluted | ($0.02) | $0 |
Weighted Average Shares Outstanding - Basic and Diluted | 15,034,384 | 12,710,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Activities | ' | ' |
Net loss for the period | ($86,235) | ($57,018) |
Adjustment to reconcile net loss to net cash used in operating activities: | ' | ' |
Gain on sale of property and equipment | -4,405 | 0 |
Bad debt expense | 490 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -190 | 365 |
Prepaid expenses and other current assets | 0 | 2,800 |
Security deposits | 3,075 | -3,075 |
Deferred revenue | 730 | -1,200 |
Accounts payable and accrued liabilities | 21,485 | -9,101 |
Net Cash Used In Operating Activities | -65,050 | -67,229 |
Cash Flows From Investing Activities | ' | ' |
Proceeds from sale of property and equipment | 4,405 | 0 |
Net Cash Provided By Investing Activities | 4,405 | 0 |
Financing Activities | ' | ' |
Proceeds from related party debt | 1,214 | 0 |
Principal payments on related party debt | 0 | -4,610 |
Proceeds from notes payable | 54,150 | 75,000 |
Net Cash Provided By (Used In) Financing Activities | 55,364 | 70,390 |
Net Increase (Decrease) in Cash | -5,281 | 3,161 |
Cash - Beginning of Period | 5,899 | 2,738 |
Cash - End of Period | 618 | 5,899 |
Supplemental Disclosures: | ' | ' |
Income taxes paid | 50 | 2,110 |
Interest paid | 8,935 | 10,263 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ' | ' |
Assignment of debt between creditors | 202,000 | 0 |
Conversion of debt for common stock | $202,000 | $0 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (Deficit) (USD $) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Total |
Beginning balance, value at Dec. 31, 2011 | $1,271 | $46,711 | ($184,044) | ($136,062) |
Beginning balance, shares at Dec. 31, 2011 | 12,710,000 | ' | ' | ' |
Net loss | ' | ' | -57,018 | -57,018 |
Ending balance, value at Dec. 31, 2012 | 1,271 | 46,711 | -241,062 | -193,080 |
Beginning balance, shares at Dec. 31, 2012 | 12,710,000 | ' | ' | ' |
Issuance of common stock - note conversion, shares | 20,200,000 | ' | ' | ' |
Issuance of common stock - note conversion, value | 2,020 | 199,980 | ' | 202,000 |
Net loss | ' | ' | -86,235 | -86,235 |
Ending balance, value at Dec. 31, 2013 | $3,291 | $246,691 | ($327,297) | ($77,315) |
Ending balance, shares at Dec. 31, 2013 | 32,910,000 | ' | ' | ' |
1_Nature_of_Operations_and_Con
1. Nature of Operations and Continuance of Business | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
1. Nature of Operations and Continuance of Business | ' |
Eurocan Holdings Ltd. (the “Company”) was incorporated in the state of Nevada on February 11, 2004. Effective September 1, 2006, the Company acquired 100% of the issued and outstanding common stock of Michael Williams Web Design Inc. (“MWWD”); a private US based company, in exchange for 7,500,000 shares of common stock of the Company. MWWD was incorporated in the State of New York on February 26, 2004 and was owned by the President of the Company. | |
The acquisition resulted in the sole shareholder of MWWD having voting and operating control of the combined company, and, prior to the acquisition, the Company was a non-operating shell corporation with nominal net assets. The acquisition was considered a capital transaction in substance and therefore has been accounted for as a recapitalization. Under recapitalization accounting MWWD is considered the acquirer for accounting and financial reporting purposes, and acquired the assets and assumed the liabilities of the Company. Assets acquired and liabilities assumed are reported at their historical amounts. These consolidated financial statements include the accounts of the Company since the effective date of the recapitalization being September 1, 2006 and the historical accounts of the business of MWWD since inception being February 26, 2004. | |
On November 13, 2013, Building 400 Ltd (“The Investor”) exercised its right under a convertible debenture dated October 28, 2013 to convert $202,000 in debt secured by the debenture into 20,200,000 shares of the Company’s common stock. As a result of the Issuance of stock, the investor’s beneficial ownership is 61.4% of The Company’s common stock. | |
The Company’s principal business is web site design for corporate customers. These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. See Note 3 for further discussion. |
2_Summary_of_Significant_Accou
2. Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
2. Summary of Significant Accounting Policies | ' |
a. Basis of Presentation and Fiscal Year | |
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S, dollars. The Company’s fiscal years-end is December 31. | |
b. Consolidation | |
The accompanying consolidated financial statements represent the consolidated operations of Eurocan Holdings. Ltd. and its wholly-owned subsidiary MWWD. Intercompany balances and transactions have been eliminated in consolidation. | |
c. Use of Estimates | |
The preparation of these consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to recoverability of long-lived assets, and deferred income tax asset valuations. The Company bases its estimates and assumptions on currents facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costa and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | |
d. Cash and Cash Equivalents | |
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. | |
e. Accounts Receivable: | |
The Company considers accounts receivable to be fully collectible: accordingly, no allowance for doubtful accounts is required. Management reviews accounts annually and if amounts are considered uncollectible, they are charged to operations. | |
f. Property and Equipment | |
Property and equipment consists of computer hardware. These assets are recorded at cost and are being amortized on the straight-line basis over the estimated life of three years. Repair and maintenance expenditures, which do not result in improvements, are charged to expense as incurred. | |
g. Financial Instruments | |
The Company’s financial instruments consist principally of cash, accounts receivable, accounts payable, notes payable and amounts due to a related party. The Company believes that the recorded values of all of other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. | |
h. Long-Lived Assets | |
In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to; significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flow expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. No impairment losses were recognized for the years ended December 31, 2013 and 2012. | |
i. Basic and Diluted Net Income (Loss) per Share | |
The Company computes earnings (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding the period including stock options, using the treasury stock method, and convertible preferred stock, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. There were no common stock equivalents as of December 31, 2013 and 2012. Therefore, basic and diluted EPS are the same for the periods then ended. | |
j. Fair Value Measurements | |
The fair value of assets and liabilities approximate the carrying amount because of the short maturity of these instruments. | |
k. Income Taxes | |
The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Income Taxes, Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company is required to compute tax assets benefits for net operating losses carried forward. | |
The Company does not file a consolidated tax return with its Subsidiary company. The Company evaluates tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authorities. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as tax benefits or expenses in the current year. Management has analyzed the company’s tax positions taken on Federal tax returns for all open tax years and has concluded that no provision for federal income tax is required in the Company’s financial statement. The Company files a Nevada state return which has no state corporation tax. | |
The Subsidiary has elected to be treated as an “S” Corporation for Federal and New York State income tax purposes. The stockholders of an S Corporation include their respective shares of the corporation’s income or loss in their individual income tax returns. Accordingly, the Subsidiary pays no federal and New York State income taxes, and pays de minims New York City taxes. | |
The Company and Subsidiary’s prior tax returns remain open for examination by tax authorities. | |
l. Revenue Recognition | |
Revenue consists of web designing, web hosting, and maintenance services and is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exist, the service is delivered, and collectability is reasonably assured. | |
Revenue from fixed-price contracts are recognized using the completed-contract method. A contract is considered complete when all costs except insignificant items have been incurred and the final product is delivered to the customer according to specifications. Revenues from time-and-material contracts are recognized as the work is performed. | |
m. Deferred Revenue | |
The Company typically receives payments as certain milestones are completed on individual contracts. These advance payments are recorded as deferred revenue on the balance sheet and reclassified as revenue on the statement of operations only after the contract is considered completed and the revenue has been earned. | |
n. Recently Adopted Accounting Pronouncements | |
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 position or results of operations. | |
o. Subsequent Events | |
The Company and Affiliate have evaluated subsequent events and transactions for potential recognition or disclosure through the date of the accountants’ compilation report, which is the date the financial statements were available to be issued. |
3_Going_Concern
3. Going Concern | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
3. Going Concern | ' |
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Since inception, the Company has incurred losses of $327,297. In addition, the Company generated negative cash flows from operations during the years ended December 31, 2013 and 2012. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time. | |
If necessary, the Company will pursue additional equity and/or debt financing while managing cash flows from operations in an effort to provide funds to meet its obligations on a timely basis and to support future business development. | |
The consolidated financial statements do not contain any adjustments to reflect the possible future effects on the classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. |
4_Notes_Payable
4. Notes Payable | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
4. Notes Payable | ' |
As of December 31, 2012 the Company had received advances totaling $155,000 of which $125,000 earned interest at 5%, was unsecured and due on demand. The remaining $30,000 promissory note was non-interest bearing, unsecured and due on demand. These were assigned to the holder of the convertible debenture on October 18, 2013. | |
During the nine months ended September 30, 2013 the Company received advances totaling $47,000 and issued promissory notes to non-related parties. The notes bear interest at 5%, are unsecured and are due on demand. These were assigned to the holder of the convertible debenture on October 18, 2013. | |
On October 18, 2013, the Company issued an unsecured convertible note debenture in the principal amount of $202,000 to an unrelated party. Notes payable in the amount of $202,000 were assigned to the holder of the debenture. The convertible debenture agreement allowed the holder to convert any or the entire principal into fully paid and non-assessable common shares of the Company at a conversion rate equal to one common share for each $0.01 of indebtedness. The debenture was converted into 20,200,000 shares of common stock on November 13, 2013. | |
During October, 2013 the Company received advances totaling $7,150 and issued non-interest bearing promissory notes, unsecured and due on demand. |
5_Related_Party_Transactions
5. Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
5. Related Party Transactions | ' |
During the years ended December 31, 2013 and 2012, a director of the Company received $14,275 and $20,665, respectively, as compensation for management services provided to the Company. | |
As of December 31, 2013 and 2012 the Company owed $1,214 and $ 0, respectively to the President of the Company. This amount is non-interest bearing, unsecured and due on demand. |
6_Common_Stock_and_Preferred_S
6. Common Stock and Preferred Stock | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
6. Common Stock and Preferred Stock | ' |
The Company has 100,000,000 shares of preferred stock authorized and none issued. The Company has 900,000,000 shares of common stock authorized, of which 32,910,000 and 12,710,000 shares are issued and outstanding for years ended December 31, 2013 and 2012, respectively. All shares of common stock are non-assessable and non-cumulative, with no pre-emptive rights. | |
During the year, ended December 31, 2012 the Company issued 20,200,000 shares of Common stock at $0.01 per share on conversion of a debenture. |
7_Commitment
7. Commitment | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
7. Commitment | ' |
In 2011 the Company renewed its lease agreement for two years with a company to provide office space. The Company agreed to pay equal monthly installments of $1,600 on the first year and $1,625 in the second year as rent expense and related security charges. The Company did not renew its lease agreement in 2013. | |
Rent expense was $10,631 and $18,750 for the years ended December 31, 2013 and 2012, respectively. |
8_Income_Taxes
8. Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
8. Income Taxes | ' | ||||||||
The Company uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. | |||||||||
During the years ended December 31, 2013 and 2012, the Company incurred net losses and, therefore, had no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $391,511 and $305,276 as of December 31, 2013 and 2012, and will expire in the years 2027 through 2033. | |||||||||
As of December 31, 2013 and 2012, deferred tax assets consisted of the following: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
$ | $ | ||||||||
Current Deferred Tax Assets: | |||||||||
Operating loss carry-forwards | 137,029 | 106,847 | |||||||
Less: valuation allowance | (137,029 | ) | (106,847 | ) | |||||
Net Deferred Tax Asset | – | – | |||||||
9_Major_Customers
9. Major Customers | 12 Months Ended |
Dec. 31, 2013 | |
Major Customers | ' |
9. Major Customers | ' |
During the years ended December 31, 2013 and 2012 four customers accounted for approximately 83% and 85% of revenue. |
10_Subsequent_Events
10. Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
10. Subsequent Events | ' |
During the three month period ended March 31, 2014, the Company issued eight promissory notes to non-affiliated investors to secure the repayment of $56,965.35 advanced to the Company and on its behalf by the investor. The promissory notes are payable on demand and do not accrue interest. There has been no repayment of any indebtedness secured by the promissory notes. |
2_Summary_of_Significant_Accou1
2. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Fiscal Year | ' |
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S, dollars. The Company’s fiscal years-end is December 31. | |
Consolidation | ' |
The accompanying consolidated financial statements represent the consolidated operations of Eurocan Holdings. Ltd. and its wholly-owned subsidiary MWWD. Intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | ' |
The preparation of these consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to recoverability of long-lived assets, and deferred income tax asset valuations. The Company bases its estimates and assumptions on currents facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costa and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | |
Cash and Cash Equivalents | ' |
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. | |
Accounts Receivable: | ' |
The Company considers accounts receivable to be fully collectible: accordingly, no allowance for doubtful accounts is required. Management reviews accounts annually and if amounts are considered uncollectible, they are charged to operations. | |
Property and Equipment | ' |
Property and equipment consists of computer hardware. These assets are recorded at cost and are being amortized on the straight-line basis over the estimated life of three years. Repair and maintenance expenditures, which do not result in improvements, are charged to expense as incurred. | |
Financial Instruments | ' |
The Company’s financial instruments consist principally of cash, accounts receivable, accounts payable, notes payable and amounts due to a related party. The Company believes that the recorded values of all of other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. | |
Long-Lived Assets | ' |
In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to; significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flow expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. No impairment losses were recognized for the years ended December 31, 2013 and 2012. | |
Basic and Diluted net Income (Loss) per Share | ' |
The Company computes earnings (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding the period including stock options, using the treasury stock method, and convertible preferred stock, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. There were no common stock equivalents as of December 31, 2013 and 2012. Therefore, basic and diluted EPS are the same for the periods then ended. | |
Fair Value Measurements | ' |
The fair value of assets and liabilities approximate the carrying amount because of the short maturity of these instruments. | |
Income Taxes | ' |
The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Income Taxes, Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company is required to compute tax assets benefits for net operating losses carried forward. | |
The Company does not file a consolidated tax return with its Subsidiary company. The Company evaluates tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authorities. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as tax benefits or expenses in the current year. Management has analyzed the company’s tax positions taken on Federal tax returns for all open tax years and has concluded that no provision for federal income tax is required in the Company’s financial statement. The Company files a Nevada state return which has no state corporation tax. | |
The Subsidiary has elected to be treated as an “S” Corporation for Federal and New York State income tax purposes. The stockholders of an S Corporation include their respective shares of the corporation’s income or loss in their individual income tax returns. Accordingly, the Subsidiary pays no federal and New York State income taxes, and pays de minims New York City taxes. | |
The Company and Subsidiary’s prior tax returns remain open for examination by tax authorities. | |
Revenue Recognition | ' |
Revenue consists of web designing, web hosting, and maintenance services and is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exist, the service is delivered, and collectability is reasonably assured. | |
Revenue from fixed-price contracts are recognized using the completed-contract method. A contract is considered complete when all costs except insignificant items have been incurred and the final product is delivered to the customer according to specifications. Revenues from time-and-material contracts are recognized as the work is performed. | |
Deferred Revenue | ' |
The Company typically receives payments as certain milestones are completed on individual contracts. These advance payments are recorded as deferred revenue on the balance sheet and reclassified as revenue on the statement of operations only after the contract is considered completed and the revenue has been earned. | |
Recently Adopted Accounting Pronouncements | ' |
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 position or results of operations. | |
Subsequent Events | ' |
The Company and Affiliate have evaluated subsequent events and transactions for potential recognition or disclosure through the date of the accountants’ compilation report, which is the date the financial statements were available to be issued. |
8_Income_Taxes_Tables
8. Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Deferred tax assets | ' | ||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
$ | $ | ||||||||
Current Deferred Tax Assets: | |||||||||
Operating loss carry-forwards | 137,029 | 106,847 | |||||||
Less: valuation allowance | (137,029 | ) | (106,847 | ) | |||||
Net Deferred Tax Asset | – | – |
5_Related_Party_Transactions_D
5. Related Party Transactions (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transactions [Abstract] | ' | ' |
Compensation for management services | $14,275 | $20,665 |
Amount due to related party | $1,214 | $0 |
7_Commitment_Details_Narrative
7. Commitment (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Rent expense | $10,631 | $18,750 |
8_Income_Taxes_Details
8. Income Taxes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Operating loss carryforward | $137,029 | $106,847 |
Less: valuation allowance | -137,029 | -106,847 |
Net Deferred Tax Asset | 0 | 0 |
Net operating loss carryforward | $391,511 | $305,276 |
9_Major_Customers_Details_Narr
9. Major Customers (Details Narrative) (Revenues, 4 Customers) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | 4 Customers | ' | ' |
Concentration risk | 83.00% | 85.00% |