Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Dec. 29, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | PRESTON CORP. | |
Entity Central Index Key | 1,594,219 | |
Document Type | 10-K | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
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 | $ 150,000 | |
Entity Common Stock, Shares Outstanding | 72,400,000 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash | $ 1,503 | $ 5,892 |
Prepaid deposits | 9,474 | 9,499 |
Total current assets | 10,977 | 15,391 |
Capital assets: | ||
Computer | 1,454 | $ 1,454 |
Mining license | 61,000 | |
Total capital assets | 62,454 | $ 1,454 |
Total assets | 73,431 | 16,845 |
Current liabilities: | ||
Accounts payable - related party | 24,200 | $ 6,000 |
Advances | 34,800 | |
Advances - related parties | 65,900 | $ 65,900 |
Total current liabilities | 124,900 | 71,900 |
Total liabilities | 124,900 | 71,900 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.001 par value, 200,000,000 shares authorized, 72,400,000 and 169,400,000 shares issued and outstanding at September 30, 2015 and 2014, respectively | 72,400 | 169,400 |
Additional paid-in capital | 31,700 | (125,800) |
Deficit accumulated during the exploration stage | (156,069) | (98,655) |
Total stockholders' equity (deficit) | (51,469) | (55,055) |
Total liabilities and stockholders' equity (deficit) | 73,431 | $ 16,845 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized; Series A Convertible Preferred, $0.001 par value, 500,000 shares authorized, 500,000 and 0 shares issued and outstanding at September 30, 2015 and 2014 respectively | $ 500 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Sep. 30, 2014 |
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authozied | 5,000,000 | 5,000,000 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authozied | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 72,400,000 | 169,400,000 |
Common Stock, shares outstanding | 72,400,000 | 169,400,000 |
Series A Preferred Stock [Member] | ||
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authozied | 500,000 | 500,000 |
Preferred Stock, shares issued | 500,000 | 0 |
Preferred Stock, shares outstanding | 500,000 | 0 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating expenses: | ||
Exploration | $ 1,320 | |
General and administrative | $ 57,414 | 83,363 |
Total operating expenses | 57,414 | 84,683 |
Net loss | $ (57,414) | $ (84,683) |
Net loss per share: | ||
Basic and diluted | $ 0 | $ 0 |
Weighted average shares outstanding: | ||
Basic and diluted (in shares) | 107,745,205 | 157,858,630 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (57,414) | $ (84,683) |
Net change in Operating Assets and Liabilities: | ||
Prepaid deposits | 25 | (9,499) |
Accounts payable - related party | 18,200 | 6,000 |
CASH FLOWS USED IN OPERATING ACTIVITIES | $ (39,189) | (88,182) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash received from the sale of common stock | 22,600 | |
Proceeds from advances, related party | $ 64,500 | |
Proceeds from advances | $ 34,800 | |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 34,800 | $ 87,100 |
NET INCREASE IN CASH | (4,389) | (1,082) |
Cash, beginning of period | 5,892 | 6,974 |
Cash, end of period | $ 1,503 | $ 5,892 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid on interest expenses | ||
Cash paid for income taxes | ||
Non-cash Investing and Financing Activities: | ||
Reclassification of par value from APIC to Common Stock | $ 31,850 | |
Preferred stock issued for Mining license | $ 61,000 | |
Return and cancellation of common stock |
STATEMENTS OF STOCKHOLDERS' DEF
STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance at Sep. 30, 2013 | $ 98,000 | $ (77,000) | $ (13,972) | $ 7,028 | |
Beginning Balance (in shares) at Sep. 30, 2013 | 98,000,000 | ||||
Issuance of common stock for cash | $ 39,550 | (16,950) | $ 22,600 | ||
Issuance of common stock for cash (in shares) | 39,550,000 | ||||
Reclassification of par value | $ 31,850 | $ (31,850) | |||
Reclassification of par value (in shares) | 31,850,000 | ||||
Preferred stock issued for mining license | |||||
Return and cancellation of common stock | |||||
Net Loss | $ (84,683) | $ (84,683) | |||
Ending Balance at Sep. 30, 2014 | $ 169,400 | $ (125,800) | $ (98,655) | (55,055) | |
Ending Balance (in shares) at Sep. 30, 2014 | 169,400,000 | ||||
Preferred stock issued for mining license | $ 500 | 60,500 | $ 61,000 | ||
Preferred stock issued for mining license (in shares) | 500,000 | 500,000 | |||
Return and cancellation of common stock | $ (97,000) | $ 97,000 | |||
Return and cancellation of common stock (in shares) | (97,000,000) | ||||
Net Loss | $ (57,414) | $ (57,414) | |||
Ending Balance at Sep. 30, 2015 | $ 500 | $ 72,400 | $ 31,700 | $ (156,069) | $ (51,469) |
Ending Balance (in shares) at Sep. 30, 2015 | 500,000 | 72,400,000 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation The Company was incorporated in the State of Nevada on January 29, 2013. The Company is in the exploration stage, and is in the process of exploring and evaluating its mineral properties and determining whether they contain ore reserves that are economically recoverable. The recoverability of amounts shown for mineral properties is dependent upon the discovery of economically recoverable ore reserves, the ability of the Company to obtain the necessary financing to complete development, confirmation of the Companys interest in the underlying mineral claims and upon future profitable production or proceeds from the disposition of all or part of its mineral properties. Exploration Stage Company The Company is an exploration stage company as defined under the then current Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) 915-205 Development-Stage Entities and among the additional disclosures required as a development stage company are that the financial statements were identified as those of an exploration stage company, and that the statement of operations, stockholders deficit and cash flows disclosed activity since the date of our Inception (January 29, 2013) as an exploration stage company. Effective June 10, 2014, FASB changed its regulations with respect to Development Stage Entities and these additional disclosures are no longer required for annual reporting periods beginning after December 15, 2014 with the option for entities to early adopt these new provisions. The Company has elected to early adopt these provisions and consequently these additional disclosures are not included in these financial statements. The Companys activities are subject to significant risks and uncertainties including failure to secure additional funding to properly execute the Companys business plan. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies The financial statements have, in management's opinion, been properly prepared within the framework of the significant accounting policies summarized below: Going Concern These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At September 30, 2015, the Company had not yet achieved profitable operations, has accumulated losses of $156,069 since its inception, has working capital deficit of $113,923, and expects to incur further losses in the development of its business, all of which raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available. Income Taxes The Company uses the assets and liability method of accounting for income taxes. Under the assets and liability method deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. 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. Basic and Diluted Loss Per Share Basic loss per share is computed using the weighted average number of shares outstanding during the period. Diluted loss per share has not been provided as it would be anti-dilutive. Foreign Currency Translation The Company's functional currency is United States ("U.S.") dollars as substantially all of the Company's operations use this denomination. The Company uses the U.S. dollar as its reporting currency. Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses would be included in Other Income (Expenses) on the Statement of Operations. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original purchase maturity of three months or less to be cash equivalents. Property and Equipment Property and equipment other than oil and natural gas properties is carried at cost. Depreciation is provided principally on the straight-line method over the useful lives as follows: Computer 3 7 years Mineral Interest Mineral property acquisition costs are capitalized in accordance with ASC 930. Mineral property exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. To date the Company has not established any reserves on its mineral properties. Fair Value of Financial Instruments The carrying value of cash, accounts payable and accrued liabilities and related party loan approximate their fair value because of the short maturity of these instruments. 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. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective accounting standards will have a material effect on the accompanying financial statements. |
Mining License
Mining License | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Mining License | Note 3 Mining License On January 27, 2015, pursuant to a License Purchase Agreement, the Company acquired all of the right, title and interest in and to a license to develop and mine for gold on approximately 80.4 square kilometers located southeast of Handeni in eastern Tanzania (the License). The License was acquired from AFGF (Tanzania) Ltd. (AFGF) for 500,000 shares of the Companys Series A Convertible Preferred Stock (the Purchase Price). AFGF is a wholly-owned subsidiary of Kokanee Placer Ltd., a corporation wholly-owned by Laurence Stephenson, the President and Chief Executive Officer and director of the Company. The purchase price of the mining license was $61,000. The Purchase Price was determined based on the historical renewal fees paid to maintain the mining license. |
Advances
Advances | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Advances | Note 4 Advances During the year ended September 30, 2015, the Company received advances in an aggregate of $34,800. The advances are unsecured, non-interest bearing and have no specific terms for repayment. As of September 30, 2015, the advances totaled $34,800. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5 Related Party Transactions The related party advances are due to the President and Chief Executive Officer of the Company for funds advanced. The advances are unsecured, non-interest bearing and have no specific terms for repayment. As of September 30, 2015, the advances totaled $65,900. The Company was charged management fees by the President and Chief Executive Officer of the Company when funds are available. Effective April 1, 2014, the Company agreed to pay the President and Chief Executive Officer of the Company $2,000 per month for management services if funds are available or to accrue such amount if funds are not available. Accounts payable related party are the fees earned but not yet paid of $24,200 and $6,000 at September 30, 2015 and 2014, respectively. Year ended Year ended Management fees $ 24,000 $ 23,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 Income Taxes A reconciliation of income tax provision to the provision that would be recognized under the statutory rates is as follows: September 30, 2015 September 30, 2014 $ $ Deferred tax asset attributable to: Net operating loss 20,000 28,000 Valuation allowance (20,000 ) (28,000 ) Net The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows: September 30, 2015 September 30, 2014 $ $ Refund attributable to operating loss 53,000 33,000 Valuation allowance (53,000 ) (33,000 ) Net provision The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows: The amount taken into income as deferred tax assets must reflect that portion of the income tax loss carry forwards that is more likely-than-not to be realized from future operations. The Company has chosen to provide an allowance of 100% against all available income tax loss carry forwards, regardless of their time of expiry. No provision for income taxes has been provided in these financial statements due to the net loss. At September 30, 2015, the Company has net operating loss carry forwards, which expire commencing in 2033, totaling approximately $156,000, the benefit of which has not been recorded in the financial statements. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Equity Transactions | Note 7 Equity Transactions On December 29, 2014, the Company filed an Amendment to the Companys Articles of Incorporation (the Certificate of Amendment) with the Nevada Secretary of State. The Certificate of Amendment amended Article 3 of the Companys Articles of Incorporation to: authorize the issuance of up to five million (5,000,000) shares of Preferred Stock, par value $0.001 per share, of which the voting and other powers, preferences and relative, participating, optional and other rights and qualifications, limitations and restrictions of the shares of such series shall be determined by the Board of Directors. As a result of the Certificate of Amendment, the Company now has 205,000,000 authorized shares, par value $0.001 per share, consisting of two classes designated as Common Stock and Preferred Stock. The total number of shares of Common Stock that the Company has authority to issue is 200,000,000 shares and the total number of shares of Preferred Stock that the Company has authority to issue is 5,000,000 shares. On January 7, 2015, pursuant to Article 3 of the Companys Articles of Incorporation, the Board of Directors voted to designate a class of preferred stock entitled Series A Convertible Preferred Stock (Series A Preferred Stock), consisting of 500,000 shares, par value $0.001. Under the Certificate of Designation, holders of Series A Preferred Stock will participate on an equal basis per-share with holders of our common stock in any distribution upon winding up, dissolution, or liquidation. Holders of Series A Preferred Stock may convert their shares into shares of the Companys common stock on the basis of one share of common stock for every one share of Series A Preferred Stock converted. Holders are further entitled to vote together with the holders of the common stock on all matters submitted to shareholders at a rate of 200 votes for each share of Series A Preferred Stock held. On January 30, 2015, the Company issued a total of 500,000 shares of the newly designated Series A Convertible Preferred Stock to AFGF (Tanzania) Ltd., a wholly-owned subsidiary of Kokanee Placer Ltd., a corporation wholly-owned by Laurence Stephenson, the Companys President, in exchange for the acquisition of a License to develop and mine for gold on property located in Tanzania. On February 10, 2015, Laurence Stephenson, President and Chief Executive Officer of the Company, returned 97,000,000 shares of common stock. The Company immediately cancelled the returned shares. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8 Subsequent Events On November 3, 2015, the Company received an advance in the amount of $5,000. The advance is unsecured, non-interest bearing and have no specific terms for repayment. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Going Concern | Going Concern These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At September 30, 2015, the Company had not yet achieved profitable operations, has accumulated losses of $156,069 since its inception, has working capital deficit of $113,923, and expects to incur further losses in the development of its business, all of which raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available. |
Income Taxes | Income Taxes The Company uses the assets and liability method of accounting for income taxes. Under the assets and liability method deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. 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. |
Basic and Diluted Loss Per Share | Basic and Diluted Loss Per Share Basic loss per share is computed using the weighted average number of shares outstanding during the period. Diluted loss per share has not been provided as it would be anti-dilutive. |
Foreign Currency Translation | Foreign Currency Translation The Company's functional currency is United States ("U.S.") dollars as substantially all of the Company's operations use this denomination. The Company uses the U.S. dollar as its reporting currency. Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses would be included in Other Income (Expenses) on the Statement of Operations. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original purchase maturity of three months or less to be cash equivalents. |
Property and Equipment | Property and Equipment Property and equipment other than oil and natural gas properties is carried at cost. Depreciation is provided principally on the straight-line method over the useful lives as follows: Computer 3 7 years |
Mineral Interest | Mineral Interest Mineral property acquisition costs are capitalized in accordance with ASC 930. Mineral property exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. To date the Company has not established any reserves on its mineral properties. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of cash, accounts payable and accrued liabilities and related party loan approximate their fair value because of the short maturity of these instruments. 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective accounting standards will have a material effect on the accompanying financial statements. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | Computer 3 7 years |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of charges by the President of the Company | Year ended Year ended Management fees $ 24,000 $ 23,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Tax Provision under the Statutory Rates | September 30, 2015 September 30, 2014 $ $ Deferred tax asset attributable to: Net operating loss 20,000 28,000 Valuation allowance (20,000 ) (28,000 ) Net |
Schedule of Cumulative Tax Effect comprising Deferred Tax Amount | September 30, 2015 September 30, 2014 $ $ Refund attributable to operating loss 53,000 33,000 Valuation allowance (53,000 ) (33,000 ) Net provision |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Details Narrative) | Sep. 30, 2015USD ($) |
Accounting Policies [Abstract] | |
Accumulated deficit | $ 156,069 |
Working Capital Defecit | $ 113,923 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Details) - Computer [Member] | 12 Months Ended |
Sep. 30, 2015 | |
Minimum [Member] | |
Useful Life of Assets | 3 years |
Maximum [Member] | |
Useful Life of Assets | 7 years |
Mining License (Details Narrati
Mining License (Details Narrative) | 12 Months Ended | |
Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($)km² | |
Notes to Financial Statements | ||
Area of Land licensed to Develop and Mine for Gold | km² | 80.4 | |
Preferred stock issued for mining license | shares | 500,000 | |
Preferred stock issued for mining license | $ | $ 61,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ||
Management fees | $ 24,000 | $ 23,000 |
Related Party Transactions (D23
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Advances by related parties | $ 65,900 | $ 65,900 |
Accounts payable - related party | 24,200 | $ 6,000 |
President [Member] | ||
Management Services Fees per month | $ 2,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Net operating loss | $ 20,000 | $ 28,000 |
Valuation allowance | $ (20,000) | $ (28,000) |
Net |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Income Tax Disclosure [Abstract] | ||
Refund attributable to operating loss | $ 53,000 | $ 33,000 |
Valuation allowance | $ (53,000) | $ (33,000) |
Net provision |