| Summary of Significant Accounting Policies | Note
2 – Summary of Significant Accounting Policies Basis
of Presentation and Consolidation The
accompanying consolidated financial statements herein contain the operations of VRVR and its wholly-owned subsidiaries AIG Inc and AIG
Ltd (collectively, the “Company”) as of and for the years ended September 30, 2021 and 2020. The
consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States
of America (“US GAAP”). All intercompany transactions have been eliminated. The Company’s headquarters are located
in Denver, Colorado and substantially all of its customers are outside the United States. Fair
Value of Financial Instruments The
Company accounts for fair value measurements in accordance with accounting standard ASC 820-10-50, “ Fair Value Measurements.”
- Level
1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
- Level
2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that
are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
- Level
3 inputs to valuation methodology are unobservable and significant to the fair measurement. The
Company’s consolidated financial instruments consist of cash, royalties receivable, note receivable, convertible note receivable,
interest receivable, accounts payable and accrued expenses, and notes payable. The carrying value of these financial instruments approximates
fair value due to the stated face values and short-term nature of the instruments. Cash
and Cash Equivalents The
Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. The
Company had no Royalties
Receivable The
Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based
on historical collection experience and a review of the current status of accounts receivable. It is reasonably possible that the Company’s
estimate of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts
estimated in determining the allowance. The Company has determined that no Royalty
Contracts and Research and Development Costs The
Company enters into agreements with third-party developers that require us to make payments for game development and production services.
In exchange for our payments, we receive the exclusive publishing and distribution rights to the finished game titles as well as, in
some cases, the underlying intellectual property rights. Such agreements typically allow us to fully recover these payments, plus a profit,
to the developers at an agreed-upon royalty rate earned on the subsequent sales of such software, net of any agreed-upon costs. Prior
to establishing technological feasibility of a product, we record any costs incurred by third-party developers as research and development
expenses. Subsequent to establishing technological feasibility of a product, we capitalize all development and production service payments
to third-party developers as royalty contracts. The Company had no Long-Lived
Assets The
Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate that an asset’s
carrying amount may not be recoverable. Such circumstances could include, but are not limited to, (1) a significant decrease in the market
value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an accumulation of costs
significantly in excess of the amount originally expected for the acquisition of an asset. The Company compares the carrying amount of
the asset against the estimated undiscounted future cash flows associated with it. Should the sum of the expected future net cash flows
be less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated
as the amount by which the carrying value of the asset exceeds its estimated fair value. Impairment loss on long-lived assets for the
years ended September 30, 2021 and 2020 was $ 0 0 Revenue
Recognition The Company follows the
guidance contained in ASC 606, “Revenue Recognition The
Company has several contracts with video game developers that entitle us to royalty streams as a percentage of revenues generated by
the game sales, which vary from contract to contract. As of September 30, 2021, the Company has four royalty contracts with three developers
that are generating royalty revenue, and two royalty contracts for games that are in development. Once
a game has been developed and has met the terms of the underlying royalty agreement, the game is released for commercial sales. Per each
contract, the Company will receive reports on a regular basis from the game developers’ sales platforms that identify the amount
of game sales, from which consideration expected to be collected from the commercial customers is computed based on the applicable royalty
percentages. Royalty revenue is based on a percentage of net receipts as defined in each customer agreement, and is recognized in accordance
with the sale-based royalty provisions of ASC 606, which requires revenue recognition after the subsequent sales occur. The Company’s
performance obligation under each royalty contract as an investor in the game is complete once funds are advanced to the gaming developer.
Subsequent consideration is then received by the Company from the developers in the amount of the Company’s percentage fee of royalty
income (net receipts) received by the customer. Net receipts include all gross revenues received by the customer as a result of sales
of the games or related exploitation less certain taxes, refunds, manufacturing costs, freight, and other items specified in the underlying
contract. Foreign
Currency The
Company’s functional currency is the US dollar. With the exception of stockholders’ equity (deficit), all transactions that
are originally denominated in foreign currency are translated to US dollars by our international customers, on a monthly basis, when
recognized by them and prior to paying royalties to the Company. All royalty revenues that are received and recognized by the Company
are recorded in US dollars. The
Company has a Euro currency bank account located in Bermuda. This account is used for payments to vendors that bill the Company in a
currency other than US dollars and for funds received from shareholders located outside the United States. As of September 30, 2021 and
2020, the Euro account had a balance of $ 0 0 Foreign
currency translation gains/losses are recorded in other accumulated comprehensive income (“AOCI”) based exchange rates prevalent
on reporting dates for balance sheet items, and at weighted average exchange rates during the reporting period for the statement of operations.
Foreign currency transaction gains/losses are recorded as other income (expense) in the period of settlement. No AOCI items were present
during the years ended September 30, 2021 and 2020, as all financial statement items were denominated in the US dollar. Gains from foreign
currency transactions during the years ended September 30, 2021 and 2020 totaled $ 408 331 Use
of Estimates The
preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements,
as well as revenues and expenses reported for the period presented. The most significant estimates relate to the useful life and impairment
of intangible assets and allowance for doubtful accounts. The Company regularly will assess these estimates and, while actual results
may differ, management believes that the estimates are reasonable. Concentration
of Credit Risk Some
of our US dollar balances are held in a Bermuda bank that is not insured. As of September 30, 2021 and 2020, uninsured deposits in the
Bermuda bank totaled $ 20,517 20,649 250,000 Income
Taxes The
Company did not accrue corporate income taxes for AIG Ltd, as it is incorporated in the country of Bermuda where there is no corporate
income tax. The Company has been subject to US Federal and state income taxes commencing the year ended September 30, 2020, due to its
business combinations with two US companies. Deferred
taxes for the VRVR (Nevada) and AIG Inc (Colorado) are provided on a liability method in accordance with ASC 740, “Income Taxes,”
Net
Income (Loss) Per Share In
accordance with ASC 260 “Earnings per Share,” 595,612 595,612 Schedule of Anti-dilutive Securities from Computation of Common Shares
September 30, September 30,
Basic weighted average shares outstanding 6,819,518 6,817,784
If-converted shares, Series B preferred shares 595,612 595,612
Diluted weighted average common shares outstanding 7,415,130 7,413,396 Stock-Based
Compensation The
Company accounts for equity awards issued to employees and non-employees for services rendered in accordance with the provisions of ASC
718, “Compensation - Stock Compensation.” Recent
Account Pronouncements The
Company has evaluated all recently issued or enacted accounting pronouncements, and has determined that all such pronouncements either
do not apply or their impact is insignificant to the financial statements. |
