Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Document And Entity Information | ' |
Entity Registrant Name | 'NIGHTFOOD HOLDINGS, INC. |
Entity Central Index Key | '0001593001 |
Document Type | '10-K |
Document Period End Date | 30-Jun-14 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--06-30 |
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 | $0 |
Entity Common Stock, Shares Outstanding | 25,108,560 |
Document Fiscal Period Focus | 'FY |
Document Fiscal Year Focus | '2014 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Current assets : | ' | ' |
Cash | $49,028 | $913 |
Accounts receivable ( net of allowance of $0 and $0, respectively) | 30 | 37 |
Other current assets | 72,415 | 0 |
Inventory | 1,500 | 0 |
Total current assets | 122,973 | 950 |
Total assets | 122,973 | 950 |
Current liabilities: | ' | ' |
Accounts payable | 26,555 | 10,907 |
Accrued interest expense -related party | 37,072 | 26,162 |
Deferred revenue | 457 | 0 |
Accrued expenses | 0 | 0 |
Short-term borrowings | 3,649 | 3,374 |
Short-term borrowings-related party | 134,517 | 134,517 |
Total current liabilities | 202,250 | 174,960 |
Long term borrowings | 10,850 | 14,433 |
Commitments and contingencies | 0 | 0 |
Stockholders' deficit: | ' | ' |
Common stock, $0.001 par value, 100,000,000 shares authorized 25,130,560 and 20,000,000 issued and outstanding as of March 31,2013 and June 30, 2013, respectively | 25,131 | 20,000 |
Additional paid in capital | 1,256,816 | 19,307 |
Accumulated deficit | -1,372,074 | -227,750 |
Total stockholders' deficit | -90,127 | -188,443 |
Total Liabilities and Stockholders' Deficit | $122,973 | $950 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
COMMON STOCK | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 25,130,560 | 20,000,000 |
Common stock, outstanding | 25,130,560 | 20,000,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | ' | ' |
Revenues | $2,575 | $5,817 |
Operating expenses | ' | ' |
Cost of product sold | 16,734 | 1,665 |
Advertising & promotional | 26,891 | 596 |
Selling, general and administrative | 14,274 | 14,296 |
Professional Fees | 1,076,721 | 0 |
Total operating expenses | 1,134,620 | 16,557 |
Loss from operations | -1,132,045 | -10,740 |
Interest expense - bank debt | 1,369 | 1,457 |
Interest expense - related party | 10,911 | 10,516 |
Total interest expense | 12,279 | 11,973 |
Provision for income tax | 0 | 0 |
Net loss | ($1,144,325) | ($22,713) |
Basic and diluted net loss per common share | ($0.49) | $0 |
Weighted average shares of capital outstanding - basic | 23,172,482 | 20,000,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net loss | ($1,144,325) | ($22,713) | ($89,803) |
Adjustments to reconcile net loss to net cash used for operations: | ' | ' | ' |
Stock issued for services | 1,019,640 | 0 | ' |
(Increase) decrease in accounts receivable | 7 | -10 | ' |
Decrease in inventory | -72,415 | 1,665 | ' |
(Increase) in other current assets | -1,500 | 0 | ' |
Increase in accounts payable | 15,648 | 6,027 | ' |
Increase in accrued expenses | 10,910 | 10,517 | ' |
Increase in deferred revenue | 457 | 0 | ' |
Net cash used by operating activities | -171,577 | -4,515 | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from the sale of stock | 223,000 | 0 | ' |
Short-term borrowings-related party | 0 | 7,750 | ' |
Repayment of Short-term debt | -3,308 | -3,220 | ' |
Net cash provided by financing activities | 219,692 | 4,530 | ' |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 48,115 | 16 | ' |
Cash and cash equivalents, beginning of period | 913 | 897 | ' |
Cash and cash equivalents, end of period | 49,028 | 913 | 897 |
Interest paid | 1,369 | 1,457 | ' |
Taxes paid | $0 | $0 | ' |
STATEMENT_OF_STOCKHOLDERS_DEFI
STATEMENT OF STOCKHOLDERS' DEFICIT (USD $) | Common Stock | Additional Paid in Capital | Accumulated Deficit | Total |
Beginning Balance, Value at Jun. 30, 2011 | $200 | $39,107 | ($115,234) | ($75,927) |
Beginning Balance, Shares at Jun. 30, 2011 | 200 | ' | ' | ' |
Common Stock exchanged for Acquisition, Shares | 20,000,000 | ' | ' | ' |
Common Stock exchanged for Acquisition, Value | 20,000 | -20,000 | ' | 0 |
Share Exchange, Shares | -200 | ' | ' | ' |
Share Exchange, Value | -200 | 200 | ' | ' |
Net Loss | ' | ' | -89,803 | -89,803 |
Ending Balance, Value at Jun. 30, 2012 | 20,000 | 19,307 | -205,037 | -165,730 |
Ending Balance, Shares at Jun. 30, 2012 | 20,000,000 | ' | ' | ' |
Common stock issued for services, Value | ' | ' | ' | 0 |
Net Loss | ' | ' | -22,713 | -22,713 |
Ending Balance, Value at Jun. 30, 2013 | 20,000 | 19,307 | -227,749 | -188,443 |
Beginning Balance, Shares at Jun. 30, 2013 | 20,000,000 | ' | ' | ' |
Common stock issued for services, Shares | 4,078,560 | ' | ' | ' |
Common stock issued for services, Value | 4,079 | 1,015,561 | ' | 1,019,640 |
Common Stock issued for cash, Shares | 1,052,000 | ' | ' | ' |
Common Stock issued for cash, Value | 1,052 | 221,948 | ' | 223,000 |
Net Loss | ' | ' | -1,144,325 | -1,144,325 |
Ending Balance, Value at Jun. 30, 2014 | $25,131 | $1,256,816 | ($1,372,074) | ($90,127) |
Ending Balance, Shares at Jun. 30, 2014 | 25,130,560 | ' | ' | ' |
1_Basis_of_Presentation
1. Basis of Presentation | 12 Months Ended | ||
Jun. 30, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
1. Basis of Presentation | ' | ||
1. Description of Business | |||
· | NightFood Holdings, Inc. (the “Company”) is a New York Corporation organized January 14, 2010 and commenced operations during the first quarter 2010. The Company has acquired the web site nightfood.com. The Company’s business model is to manufacture and distribute nutritional products to provide consumers better & healthier nighttime snack options to support better health and better sleep. | ||
· | The Company’s fiscal year end is June 30. | ||
· | The Company currently maintains its corporate office in Elmsford, New York. | ||
2_Recent_Accounting_Pronouncem
2. Recent Accounting Pronouncements | 12 Months Ended | ||
Jun. 30, 2014 | |||
Notes to Financial Statements | ' | ||
2. Recent Accounting Pronouncements | ' | ||
2. Summary of Significant Accounting Policies | |||
· | Management is responsible for the fair presentation of the Company’s financial statements, prepared in accordance with U.S. generally accepted accounting principles (GAAP). | ||
Use of Estimates | |||
· The preparation of financial statements 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 reporting period. Actual results could differ from those estimates. Estimates are used in the determination of depreciation and amortization, the valuation for non-cash issuances of common stock, and the website, income taxes and contingencies, among others. | |||
Cash and Cash Equivalents | |||
· | The Company classifies as cash and cash equivalents amounts on deposit in the banks and cash temporarily in various instruments with original maturities of three months or less at the time of purchase. | ||
Fair Value of Financial Instruments | |||
· | Statement of financial accounting standard FASB Topic 820, Disclosures about Fair Value of Financial Instruments, requires that the Company disclose estimated fair values of financial instruments. The carrying amounts reported in the statements of financial position for assets and liabilities qualifying as financial instruments are a reasonable estimate of fair value. | ||
Inventory | |||
· | Inventories consisting of packaged food items and supplies are stated at the lower of cost (FIFO) or market, including provisions for spoilage commensurate with known or estimated exposures which are recorded as a charge to cost of sales during the period spoilage is incurred. The Company has no minimum purchase commitments with its vendors. | ||
Advertising Costs | |||
· | Advertising costs are expensed when incurred and are included in advertising and promotional expense in the accompanying statements of operations. The Company incurred advertising costs of $26,891 and $596 for the years ended June 30, 2014 and 2013, respectively. | ||
Income Taxes | |||
· | The Company has not generated any taxable income, and, therefore, no provision for income taxes has been provided. | ||
· | Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with FASB Topic 740, "Accounting for Income Taxes", which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax loss and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not. | ||
· | A valuation allowance has been recorded to fully offset the deferred tax asset even though the Company believes it is more likely than not that the assets will be utilized. | ||
· | The Company’s effective tax rate differs from the statutory rates associated with taxing jurisdictions because of permanent and temporary timing differences as well as a valuation allowance. | ||
Revenue Recognition | |||
· | The Company generates its revenue from products sold from traditional retail outlets along with items distributed from the Company’s and other customer website. | ||
· | All sources of revenue are recorded pursuant to FASB Topic 605 Revenue Recognition, when persuasive evidence of arrangement exists, delivery of services has occurred, the fee is fixed or determinable and collectability is reasonably assured. | ||
Concentration of Credit Risk | |||
· | Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits at financial institutions. At various times during the year, the Company may exceed the federally insured limits. To mitigate this risk, the Company places its cash deposits only with high credit quality institutions. Management believes the risk of loss is minimal. At June 30, 2014 and 2013 the Company did not have any uninsured cash deposits. | ||
Impairment of Long-lived Assets | |||
· | The Company accounts for long-lived assets in accordance with the provisions of FASB Topic 360, Accounting for the Impairment of Long-Lived Assets. This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Fair values are determined based on quoted market value, discounted cash flows or internal and external appraisals, as applicable. | ||
Recent Accounting Pronouncements | |||
· | The Company has assessed all newly issued accounting pronouncements released during the years ended June 30, 2014 and 2013, and have found none of them to have a material impact on the Company’s financial statements. | ||
3_Going_Concern
3. Going Concern | 12 Months Ended | ||
Jun. 30, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
3. Going Concern | ' | ||
3. Going Concern | |||
· | The Company's financial statements are prepared using generally accepted accounting principles, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. Because the business is new and has limited operating history and relatively few sales, no certainty of continuation can be stated. | ||
· | Management is taking steps to raise additional funds to address its operating and financial cash requirements to continue operations in the next twelve months. Management has devoted a significant amount of time in the raising of capital from additional debt and equity financing. However, the Company’s ability to continue as a going concern is dependent upon raising additional funds through debt and equity financing and generating revenue. There are no assurances the Company will receive the necessary funding or generate revenue necessary to fund operations. | ||
4_Accounts_Receivable
4. Accounts Receivable | 12 Months Ended | ||
Jun. 30, 2014 | |||
Accounts Receivable Additional Disclosures [Abstract] | ' | ||
4. Accounts Receivable | ' | ||
4. Accounts receivable | |||
· | The Company’s accounts receivable arise primarily from the sale of the Company’s nutritional bedtime snack bar. On a periodic basis, the Company evaluates each customer account and based on the days outstanding of the receivable, history of past write-offs, collections, and current credit conditions, writes off accounts it considers uncollectible. Invoices are typically due in 60 - 90days. The Company does not accrue interest on past due accounts and the Company does not require collateral. Accounts become past due on an account-by-account basis. Determination that an account is uncollectible is made after all reasonable collection efforts have been exhausted. | ||
5_Inventory
5. Inventory | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Inventory Disclosure [Abstract] | ' | ||||
5. Inventory | ' | ||||
5. Inventory | |||||
· | Inventory consists of the following at June 30, | ||||
2014 | 2013 | ||||
Finished Goods | $ | 47,424 | $ | - | |
Deposits on Product | 23,000 | - | |||
Packaging | 1,991 | - | |||
TOTAL | $ | 72,415 | $ | - | |
· | Inventories are stated at the lower of cost or market. The company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions and the products relative shelf life. Write-downs and write-offs are charged to loss on inventory write down. | ||||
6_Other_Current_Liabilities
6. Other Current Liabilities | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
6. Other Current Liabilities | ' | ||||
6. Other Current Liabilities | |||||
· | Other current liabilities consist of the following at June 30, | ||||
2014 | 2013 | ||||
Imputed interest on related party note-Sean Folkson | $ | 37,072 | $ | 26,161 | |
TOTAL | $ | 37,072 | $ | 26,161 | |
7_Short_Term_Borrowings
7. Short Term Borrowings | 12 Months Ended | ||
Jun. 30, 2014 | |||
Debt Disclosure [Abstract] | ' | ||
7. Short Term Borrowings | ' | ||
7. Short Term Borrowings | |||
· | On November 24, 2010, the Company entered into a Small Business Working Capital Loan with a well-established Bank. The loan is personally Guaranteed by the Company’s Chief Executive Officer, which is further Guaranteed for 90% by the United States Small Business Administration (SBA). | ||
· | The term of the loan is seven years until full amortization and currently carries an 8% interest rate, which is based upon Wall Street Journal (“WSJ”) Prime 3.75 % Plus 4.75% and is adjusted quarterly. Monthly principal payments are required during this 84 month period. | ||
· | Interest expense for the years ended June 30, 2014 and 2013, totaled $1,369 and $1,457, respectively. | ||
8_Capital_Stock_Activity
8. Capital Stock Activity | 12 Months Ended | ||
Jun. 30, 2014 | |||
Equity [Abstract] | ' | ||
8. Capital Stock Activity | ' | ||
8. Capital Stock Activity | |||
· | On October 16, 2013, the NightFood, Inc. became a wholly-owned subsidiary of NightFood Holdings, Inc. Accordingly, the stockholders’ equity has been revised to reflect the share exchange on a retroactive basis. | ||
· The Company is authorized to issue One Hundred Million (100,000,000) shares of $0.001 par value per share Common Stock. Holders of Common Stock are each entitled to cast one vote for each Share held of record on all matters presented to shareholders. Cumulative voting is not allowed; hence, the holders of a majority of the outstanding Common Stock can elect all directors. Holders of Common Stock are entitled to receive such dividends as may be declared by the Board of Directors out of funds legally available therefore and, in the event of liquidation, to share pro-rata in any distribution of the Company's assets after payment of liabilities. The Board of Directors is not obligated to declare a dividend and it is not anticipated that dividends will be paid unless and until the Company is profitable. Holders of Common Stock do not have pre-emptive rights to subscribe to additional shares if issued by the Company. There are no conversion, redemption, sinking fund or similar provisions regarding the Common Stock. All of the outstanding Shares of Common Stock are fully paid and non-assessable and all of the Shares of Common Stock offered thereby will be, upon issuance, fully paid and non-assessable. Holders of Shares of Common Stock will have full rights to vote on all matters brought before shareholders for their approval, subject to preferential rights of holders of any series of Preferred Stock. Holders of the Common Stock will be entitled to receive dividends, if and as declared by the Board of Directors, out of funds legally available, and share pro-rata in any distributions to holders of Common Stock upon liquidation. The holders of Common Stock will have no conversion, pre-emptive or other subscription rights. Upon any liquidation, dissolution or winding-up of the Company, assets, after the payment of debts and liabilities and any liquidation preferences of, and unpaid dividends on, any class of preferred stock then outstanding, will be distributed pro-rata to the holders of the common stock. The holders of the common stock have no right to require the Company to redeem or purchase their shares. Holders of shares of common stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in that event, the holders of the remaining shares will not be able to elect any of our directors. | |||
· | The Company has 25,130,560 and 20,000,000 shares of its $0.001 par value common stock issued and outstanding as of June 30, 2014 and 2013 respectively. | ||
· | During the twelve months ended June 30, 2014: | ||
· | the Company issued 1,052,000 shares of common stock for cash proceeds of $223,000, | ||
· | and issued 4,078,560 shares of common stock for services with a fair value of $1,019,640. | ||
Dividends | |||
· | The Company has never issued dividends. | ||
Warrants | |||
· The Company has never issued any warrants. | |||
Options | |||
· | The Company has never issued options. | ||
9_Advances_by_Affiliates
9. Advances by Affiliates | 12 Months Ended | ||
Jun. 30, 2014 | |||
Notes to Financial Statements | ' | ||
9. Advances by Affiliates | ' | ||
9. Advances by Affiliates | |||
· | The Company received cash from Mr. Folkson, the Company’s Chief Executive Officer and related party, $26,350 and $7,750 in 2014 and 2013, respectively, to supplement the Company’s working capital these short term advances have all been repaid. The amounts included in short term borrowings – related party of $134,517 and 134,517 in 2014 and 2013, respectively represent a Note Payable which is repayable upon Mr. Folkson providing the Borrower with written notice of demand, according to certain terms. However Mr. Folkson may not demand repayment of the Note until the Company is profitable, and in a positive cash flow position. At that time, Mr. Folkson may demand repayment. Company agrees to make payments equal to 10% of the monthly positive cash flow of the Company until balance is paid in full. | ||
· | Imputed interest expense accrued on the note payable to Mr. Folkson totaled $10,911 and $10,516 for the years ended June 30, 2014 and 2013, respectively. | ||
10_Income_Tax
10. Income Tax | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
10. Income Tax | ' | |||||||||
10. Income Tax | ||||||||||
· | A reconciliation of the statutory income tax rates and the Company’s effective tax rate is as follows: | |||||||||
June 30, | ||||||||||
2014 | 2013 | |||||||||
Statutory U.S. federal rate | (34.00 | )% | (34.00 | )% | ||||||
Permanent differences | - | - | ||||||||
Valuation allowance | 34 | % | 34 | % | ||||||
Provision for income tax expense(benefit) | 0 | % | 0 | % | ||||||
· | The tax effects of the temporary differences and carry forwards that give rise to deferred tax assets consist of the following: | |||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Net operating loss carry-forwards | $ | 94,423 | $ | 52,030 | ||||||
Non-cash compensation | 346,678 | |||||||||
Total deferred tax assets | $ | 441,101 | $ | 52,030 | ||||||
Valuation allowance | (441,101 | ) | (52,030 | ) | ||||||
Net deferred tax asset | $ | - | $ | - | ||||||
· | At June 30, 2014 the Company had estimated U.S. federal net operating losses of approximately $278,000 for income tax purposes which will expire between 2022 and 2023. For financial reporting purposes, the entire amount of the net deferred tax assets has been offset by a valuation allowance due to uncertainty regarding the realization of the assets. The net change in the total valuation allowance for the year ended June 30, 2014 was an increase of $389,070. The Company follows FASC 740-10-25 P which requires a company to evaluate whether a tax position taken by the company will “more likely than not” be sustained upon examination by the appropriate tax authority. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company believes that its income tax filing positions and deductions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded. | |||||||||
· | The Company may not be able to utilize the net operating loss carryforwards for its US income taxes in future periods should it experience a change in ownership as defined in Section 382 of the Internal Revenue Code (“IRC”). Under section 382, should the Company experience a more than 50% change in its ownership over a 3 year period, the Company would be limited based on a formula as defined in the IRC to the amount per year it could utilize in that year of the net operating loss carryforwards. | |||||||||
· | As of June 30, 2014 the Company had not performed an analysis to determine if the Company was subject to the provisions of Section 382. The Company is subject to U.S. federal income tax including state and local jurisdictions. Currently, no federal or state income tax returns are under examination by the respective taxing jurisdictions. | |||||||||
· | The Company's accounting policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. The Company has not accrued interest for any periods. | |||||||||
11_Fair_Value_of_Financial_Ins
11. Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
11. Fair Value of Financial Instruments | ' | |||||||||||||||
11. Fair Value of Financial Instruments | ||||||||||||||||
Cash and Equivalents, Receivables, Other Current Assets, Accounts Payable, Accrued and Other Current Liabilities | ||||||||||||||||
· | The carrying amounts of these items approximated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, Financial Accounting Standards Board (“FASB”) ASC Topic 820-10-35 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). | |||||||||||||||
Level 1 - Valuations based on quoted prices for identical assets and liabilities in active markets. | ||||||||||||||||
Level 2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||
Level 3 - Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | ||||||||||||||||
· | The application of the three levels of the fair value hierarchy under Topic 820-10-35 to our assets and liabilities are described below: | |||||||||||||||
Fiscal 2014 Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
Assets | ||||||||||||||||
Other assets | $ | - | $ | - | $ | - | $ | - | ||||||||
Total | $ | - | $ | - | $ | - | $ | - | ||||||||
Liabilities | ||||||||||||||||
Short and long-term debt | $ | 149,016 | $ | - | $ | - | $ | 149,016 | ||||||||
Total | $ | 149,016 | $ | - | $ | - | $ | 149,016 | ||||||||
Fiscal 2013 Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
Assets | ||||||||||||||||
Other assets | $ | - | $ | - | $ | - | $ | - | ||||||||
Total | $ | - | $ | - | $ | - | $ | - | ||||||||
Liabilities | ||||||||||||||||
Short and long-term debt | $ | 152,324 | $ | - | $ | - | $ | 152,324 | ||||||||
Total | $ | 152,324 | $ | - | $ | - | $ | 152,324 | ||||||||
12_Net_Loss_per_Share_of_Commo
12. Net Loss per Share of Common Stock | 12 Months Ended | ||
Jun. 30, 2014 | |||
Earnings Per Share [Abstract] | ' | ||
12. Net Loss per Share of Common Stock | ' | ||
12. Net Loss per Share of Common Stock | |||
· The Company has adopted FASB Topic 260, "Earnings per Share," which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year. Basic net loss per common share is based upon the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. However, shares associated with convertible debt, stock options and stock warrants are not included because the inclusion would be anti-dilutive (i.e. reduce the net loss per common share). There were no anti-dilutive instruments. | |||
2014 | 2013 | ||
Numerator - basic and diluted loss per share net loss | ($1,144,325) | ($22,713) | |
Net loss available to common stockholders | ($1,144,325) | ($22,713) | |
Denominator – basic and diluted loss per share – weighted average common shares outstanding | 23,172,482 | 20,000,000 | |
Basic and diluted earnings per share | ($0.05) | ($0.00) | |
13_Subsequent_Events
13. Subsequent Events | 12 Months Ended | ||
Jun. 30, 2014 | |||
Subsequent Events [Abstract] | ' | ||
13. Subsequent Events | ' | ||
13. Subsequent Events | |||
· | Management of the Company has assessed all significant subsequent events through the date upon which the financial statements first became available for public release. | ||
· | The Company entered into a twelve month consulting agreement, beginning July 1, 2014 whereas the Company is required to issue 50,000 shares of it $0.001 common stock in return for the sundry services which will be provided. | ||