| Summary of Significant Accounting Policies | NOTE 3 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
(a) Cash Cash includes cash equivalents, which the
Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.
Cash and cash equivalents consist primarily of cash deposits maintained in the United Kingdom. From time to time, the Company's
cash account balances exceed amounts covered by the Financial Services Compensation Scheme. The Company has never suffered a loss
due to such excess balances.
(b) Fixed rate cash accounts: From time to time the Company invests funds
in fixed rate cash savings accounts. These accounts, at the time of the initial investment, provide a higher interest rate
than other bank accounts, and also require the Company to maintain the funds in the accounts for a period of time, $1,352,000 through
December 2017 and $4,735,000 through December 2018. Early withdrawal may generally be made for liquidity needs. (c) Fair value of financial instruments The Company's financial instruments primarily
consist of cash, fixed rate cash accounts, and accounts payable. As of the balance sheet dates, the estimated fair values
of non-related party financial instruments were not materially different from their carrying values as presented, due to their
short maturities. The fair value of amounts payable to related parties are not practicable to estimate due to the related party
nature of the underlying transactions. (d) Property and equipment Property and equipment is stated at cost
and depreciated using the straight-line method over the estimated useful lives of the assets, generally four years for fixtures
and fittings. (e) Intangible assets Intangible assets consist of licenses and
patents associated with the sugarBEAT device and are amortized on a straight-line basis, generally over their legal lives of up
to 20 years. (f) Revenue recognition Revenue is recognized when the four basic
criteria of revenue recognition are met: (1) a contractual agreement exists; (2) transfer of rights has been completed; (3)
the fee is fixed or determinable; and (4) collectability is reasonably assured. The Company may enter into product development
and other agreements and with collaborative partners. The terms of the agreements may include nonrefundable signing and licensing
fees, milestone payments and royalties on any product sales derived from collaborations. The Company recognizes up front license
payments as revenue upon delivery of the license only if the license has stand alone value to the customer. However, where further
performance criteria must be met, revenue is deferred and recognized on a straight line basis over the period the Company is expected
to complete its performance obligations. Royalty revenue will be recognized upon
the sale of the related products provided the Company has no remaining performance obligations under the agreement. (g) Research and development expenses The Company charges research and development
expenses to operations as incurred. Research and development expenses primarily consist of salaries and related expenses for personnel
and outside contractor and consulting services. Other research and development expenses include the costs of materials and supplies
used in research and development, prototype manufacturing, clinical studies, related information technology and an allocation of
facilities costs. (h) Income taxes Income taxes are accounted for under the
asset and liability method. Deferred income tax assets and liabilities 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 operating loss carry forwards. Deferred income 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 effect
on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the
enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered
more likely than not that some portion, or all, of the deferred income tax assets will not be realized.
(i) Earnings per share Basic earnings per share is computed by
dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period.
There were no potentially dilutive securities as of September 30, 2017 and 2016. For the three month and six month periods ended
September 30, 2017 and 2016, warrants to purchase 10 million shares of common stock were anti-dilutive and were excluded from the
calculation of diluted loss per share. (j) Use of estimates The preparation of financial statements
in conformity with accounting principles generally accepted in the United States 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 year. Actual results may differ from those estimates. (k) Foreign currency translation The functional currency of the Company
is the Great Britain Pound Sterling ("GBP"). The reporting currency is the United States dollar (US$). Stockholders'
equity is translated into United States dollars from GBP at historical exchange rates. Assets and liabilities are translated
at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rates prevailing
during the reporting period. The translation rates are as follows:
Six months ended September 30, 2017 (unaudited)
Six months ended September 30, 2016 (unaudited)
Three months ended September 30, 2017 (unaudited)
Three months ended September 30, 2016 (unaudited)
Twelve months ended March 31, 2017
Period end GBP : US$ exchange rate 1.340 1.325 1.340 1.325 1.245
Average period/yearly GBP : US$ exchange rate 1.279 1.382 1.283 1.370 1.315 Adjustments resulting from translating
the financial statements into the United States dollar are recorded as a separate component of accumulated other comprehensive
loss in stockholders' equity. (l) Recent accounting pronouncements The Company continually assesses any new
accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the
Company's financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial
statements and assures that there are proper controls in place to ascertain that the Company's consolidated financial statements
properly reflect the change. In May 2014, the Financial Accounting
Standards Board ("FASB") issued Accounting Standards Updates ("ASU") No. 2014-09, Revenue from Contracts with
Customers. ASU 2014-09 has been modified multiple times since its initial release. This ASU outlines a single comprehensive model
for entities to use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition
guidance in U.S. GAAP when it becomes effective. ASU 2014-09, as amended, becomes effective for annual reporting periods beginning
after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have
on its financial statements and related disclosures. The impact is expected to be insignificant until the Company begins to generate
revenue, except as to the possible impact related to the deferred revenue recorded in connection with the licensing agreement
described in Note 4 which the Company is currently evaluating. The standard permits the use of either the retrospective or cumulative
effect transition method. The Company has not yet selected a transition method. In March 2016, the FASB issued ASU No.
2016-02, Leases. The main difference between the provisions of ASU No. 2016-02 and previous U.S. GAAP is the recognition of right-of-use
assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. ASU No. 2016-
02 retains a distinction between finance leases and operating leases, and the recognition, measurement, and presentation of expenses
and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP. For leases with a term
of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize
right-of-use assets and lease liabilities. The accounting applied by a lessor is largely unchanged from that applied under previous
U.S. GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period
presented using a modified retrospective approach. This ASU is effective for public business entities in fiscal years, and interim
periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted as of the beginning of any interim
or annual reporting period. The Company has not yet determined the effect of the standard on its ongoing reporting. In August 2016, the FASB issued ASU No.
2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. ASU No. 2016-15 is intended to reduce
diversity in how certain cash receipts and cash payments are presented in the statement of cash flows. The new guidance clarifies
the classification of cash activity related to debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments,
contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds
from the settlement of corporate and bank-owned life insurance policies, distributions received from equity-method investments,
and beneficial interests in securitization transactions. The guidance also describes a predominance principle pursuant to which
cash flows with aspects of more than one class that cannot be separated should be classified based on the activity that is likely
to be the predominant source or use of cash flow. This ASU is effective for public entities for annual and interim periods beginning
after December 15, 2017. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Company
is currently evaluating the impact this standard will have on its financial statements and related disclosures, but does not expect
it to have a material effect on the Company's consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No.
2016-18, Statement of Cash Flows - Restricted Cash. ASU 2016-18 requires entities to show the changes in the total of cash, cash
equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted
cash and restricted cash equivalents are presented in more than one line item on the balance sheet, a reconciliation of the totals
in the statement of cash flows to the related captions in the balance sheet is required. This ASU is effective for public entities
for annual and interim periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of any interim
or annual reporting period. The Company is currently evaluating the impact this standard will have on its financial statements
and related disclosures. (m) Risks and uncertainties The Company is in the development stage
of one primary product that it expects to introduce to the UK market after completion of clinical trials and CE mark approval (European
Union approval of the product). The Company has entered into sales and marketing agreements for the product, but has not yet entered
into manufacturing agreements. These matters raise uncertainties as regulatory acceptance of the Company’s primary
product development efforts and if acceptance is attained, the cost structure to produce the product. (n) Subsequent events In October 2017, the Company’s
board of directors designated 200,000 shares of Series A Convertible Preferred Stock, as authorized by its articles of incorporation.
The par value of the preferred stock is $0.001 per share. Each share of preferred stock is convertible into 1,000 shares of the
Company’s common stock, automatically upon the occurrence of certain triggering events, as set forth in the certificate of
designation, or voluntarily by the holder after February 1, 2019, if these triggering events have not occurred Each holder
of issued and outstanding preferred stock is entitled to a number of votes equal to the number of shares of common stock into which
the preferred stock is convertible. Holders of preferred are entitled to vote on any and all matters presented to stockholders
of the Company, except as provided by law. The preferred stock has preference to the common stock as to dividends or distributions
of assets upon liquidation or winding up of the Company. Currently, no shares of preferred stock have been issued. |
