| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES A summary of the significant accounting
policies applied in the preparation of the accompanying financial statements follows. BASIS OF PRESENTATION The financial statements of the Company have been prepared
in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The
Company's year-end is June 30. ESTIMATES The preparation of the financial statement
in conformity with generally accepted accounting principles 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
and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. CUSTOMER AND PURCHASE CONCENTRATION During the quarters ended September 30,
2017 and 2016, the following customers represented more than 10% of the Company’s sales:
September 30, 2017 September 30, 2016
$ % $ %
Total licensing revenue 4,500 4.9 7,100 100
Total Optec Unit product revenue * 88,950 95.1 -
Total revenue $ 93,450 100 $ 7,100 100
Customer Concentration Totals
Customer A $ 4,500 4.9 $ - -
Customer B 7,100 100
Customer C 3,850 4.1 - -
Customer D 31,600 33.8 - -
Customer E 53,500 57.2 - -
Concentration total $ 93,450 100 $ 7,100 100 WEBSITE DEVELOPMENT COSTS Under ASC350-50, Website Development
Costs, OTHER INTANGIBLE ASSETS Under ASC 350-50-1, costs incurred in the
acquisition of an intangible asset are capitalized by the Company. As of September 30, 2017 and 2016, our intangible asset related
to the purchase of our Green Meadow PR formula for natural pain relief for animals and is being amortized to expense over
the formula's estimated useful life or period of benefit which is estimated to be 10 years using straight-line method. IMPAIRMENT OF LONG-LIVED ASSETS The Company evaluates the recoverability
of long-lived assets and the related estimated remaining lives at each balance sheet date. The Company records an impairment or
change in useful life whenever events or changes in circumstances indicate that the carrying amount may not be recoverable or
the useful life has changed. INCOME TAXES We account for income taxes in accordance
with FASB ASC 740, Income Taxes which requires the recognition of deferred tax liabilities and assets for the expected future tax
consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities
and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted
tax rates in effect for the year in which the differences are expected to reverse. Under FASB ASC 740, the effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance
is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through
future operations. The effect on the deferred income tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date. When tax returns are filed, it is highly
certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty
about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with ASC
740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available
evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution
of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions
that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50
percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with
tax positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax
benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing
authorities upon examination. REVENUE RECOGNITION The Company recognizes revenue in accordance
with Accounting Standards Codification No. 605, "Revenue Recognition" ("ASC-605") ASC-605 requires that four basic
criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred;
(3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and
(4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability
of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are
provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not
been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has
been delivered or no refund will be required. The Company's revenues have been generated
primarily through sublicense and distribution agreements related to our PawPal product and our pain relief products as well
as sales of the Optec Fuel Maximizer units. The terms of these agreements generally consist solely of upfront, nonrefundable payments for
licensing and distribution rights. Revenues from non-refundable licensing and distribution fees are recognized upon receipt
of the payment if the license has stand-alone value and we do not have ongoing involvement or obligations. For the quarters ended September 30, 2017
and 2016, all license payments met the above criteria or in the case of one contract, the only continuing involvement was to sell
our products to the distributor at pricing that is consistent with market transactions, thereby allowing for the recognition of
revenue for the licensing and distribution arrangements upon receipt. When non-refundable license fees do not
meet this criteria, the license revenues are recognized over the expected period of performance. We periodically review for
any expected period of substantial involvement under the agreements that provide for non-refundable up-front payments and license
fees. If ever applicable, we will adjust the amortization periods when appropriate to reflect changes in assumptions relating
to the duration of our expected involvement. TRADE RECEIVABLES Trade Receivables are the amount of billed
or unbilled claims or other similar items subject to uncertainty concerning their determination or ultimate realization under contracts
that are expected to be collected in the next rolling twelve months following the latest balance sheet presented. Our policies
on receivables varies per customer, but in no case do we allow for a receivable to be outstanding for more than 12 months. As of
September 30, 2017, we had a receivable totaling $90,900 of which $3,850 was due from Optec Global for an invoice dated September
27, 2017, a receivable of $31,600 from Go Green APU for an invoice dated September 28, 2017 and a receivable of $53,500 from Nektar
for an invoice dated September 28, 2017. We had a receivable from Belu Organics of $1,950 for an invoice dated July 10, 2017 of
$4,500 of which $2,550 was paid leaving a balance due of $1,950. NET INCOME (LOSS) PER SHARE OF COMMON
STOCK The Company computes net income (loss)
per share in accordance with ASC 105, "Earnings per Share" which requires presentation of both basic and diluted earnings
per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income (loss) available
to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives
effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential
common shares if their effect is anti-dilutive. The Company has no potentially dilutive
debt or equity instruments issued and outstanding during the quarters September 30, 2017 and 2016. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption
of any such pronouncements may be expected to cause a material impact on our financial condition or the results of its operations
other than in respect of the early adoption of the new regulations relating to Development Stage Entities as discussed above. |
