Cover
Cover - USD ($) | 7 Months Ended | ||
Mar. 31, 2022 | Jul. 11, 2022 | Sep. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | AGENTIX CORP. | ||
Entity Central Index Key | 0001603345 | ||
Document Type | 10-KT | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Mar. 31, 2022 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity Ex Transition Period | true | ||
Entity Common Stock Shares Outstanding | 38,916,931 | ||
Entity Public Float | $ 30,204,191 | ||
Document Period Start Date | Sep. 01, 2021 | ||
Document Annual Report | false | ||
Document Transition Report | true | ||
Entity File Number | 000-55383 | ||
Entity Incorporation State Country Code | NV | ||
Entity Tax Identification Number | 46-2876282 | ||
Entity Address Address Line 1 | 32932 Pacific Coast Highway | ||
Entity Address Address Line 2 | #14-254 | ||
Entity Address City Or Town | Dana Point | ||
Entity Address State Or Province | CA | ||
Entity Address Postal Zip Code | 92629 | ||
City Area Code | 321 | ||
Icfr Auditor Attestation Flag | false | ||
Local Phone Number | 299-2014 | ||
Security 12g Title | Common Stock, $.001 par value | ||
Entity Interactive Data Current | Yes | ||
Auditor Firm Id | 5525 | ||
Auditor Location | Spokane, Washington | ||
Auditor Name | Fruci & Associates II, PLLC |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) | Mar. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
Current Assets | |||
Cash | $ 145 | $ 1,768 | $ 242,750 |
Inventory | 0 | 49,439 | 0 |
Prepaid expense | 15,833 | 0 | 50,000 |
Total current assets | 15,978 | 51,207 | 292,750 |
Total assets | 15,978 | 51,207 | 292,750 |
Current Liabilities | |||
Accounts payable | 145,119 | 121,239 | 41,318 |
Accounts payable - related party | 947,757 | 485,603 | 27,870 |
Accrued expenses | 100 | 100 | 100 |
Total current liabilities | 1,092,976 | 606,942 | 69,288 |
Long Term Liabilities | 0 | 0 | 0 |
Total liabilities | 1,092,976 | 606,942 | 69,288 |
Commitments and Contingencies | 0 | 0 | 0 |
Stockholders' (Deficit) Equity | |||
Common stock par value $0.001: 50,000,000 shares authorized; 38,916,951, 34,874,605 and 34,489,605 shares issued and outstanding as of March 31, 2022 and August 31, 2021 and 2020, respectively | 38,917 | 34,875 | 34,490 |
Common stock to be issued (520,000 shares at August 31, 2021) | 0 | 180,000 | 0 |
Additional paid-in capital | 2,879,606 | 933,648 | 552,883 |
Accumulated deficit | (3,995,521) | (1,704,258) | (363,911) |
Total stockholders' (deficit) equity | (1,076,998) | (555,735) | 223,462 |
Total liabilities and stockholders' (deficit) equity | $ 15,978 | $ 51,207 | $ 292,750 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
Stockholders' Deficit | |||
Common stock, shares par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Common stock, shares issued | 38,916,951 | 34,874,605 | 34,489,605 |
Common stock, shares outstanding | 38,916,951 | 34,874,605 | 34,489,605 |
Common stock to be issued | 520,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Aug. 31, 2021 | |
Consolidated Statement of Operations | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 1,240 |
Cost of goods sold | 0 | 0 | 0 | 561 |
Gross margin | 0 | 0 | 0 | 679 |
Operating Expenses | ||||
Professional fees | 227,055 | 2,010,442 | 738,382 | 909,483 |
Research and development | 94,100 | 141,000 | 226,220 | 365,132 |
Provision for excess inventory | 0 | 49,439 | 0 | 0 |
General and administrative expenses | 23,234 | 90,382 | 40,382 | 66,416 |
Total operating expenses | 344,389 | 2,291,263 | 1,004,984 | 1,341,031 |
Loss from operations | (344,389) | (2,291,263) | (1,004,984) | (1,340,352) |
Other (income) expense | ||||
Other expense | 19,553 | 0 | 0 | 0 |
Interest income | (31) | 0 | (5) | (5) |
Loss before Income tax provision | (363,911) | (2,291,263) | (1,004,979) | (1,340,347) |
Income tax provision | 0 | 0 | 0 | 0 |
Net loss | $ (363,911) | $ (2,291,263) | $ (1,004,979) | $ (1,340,347) |
Loss per share | ||||
Loss per share Basic and diluted | $ (0.02) | $ (0.06) | $ (0.03) | $ (0.04) |
Weighted average common shares outstanding | ||||
Weighted average common shares- basic and diluted | 23,179,141 | 36,558,010 | 34,549,171 | 34,734,990 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders (Deficit) Equity - USD ($) | Total | Common Stock [Member] | Common Stock to be Issued [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance, amount at Apr. 15, 2020 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Shares issued in reverse merger, shares | 3,806,613 | ||||
Shares issued in reverse merger, amount | 3,807 | $ 3,807 | 0 | 0 | 0 |
Shares issued for cash, shares | 2,750,721 | ||||
Shares issued for cash, amount | 611,508 | $ 2,751 | 608,757 | ||
Shares issued for purchase of GSL Healthcare, Inc., shares | 27,932,271 | ||||
Shares issued for purchase ofGSL Healthcare, Inc., amount | (27,942) | $ 27,932 | (55,874) | ||
Net Loss | (363,911) | (363,911) | |||
Balance, shares at Aug. 31, 2020 | 34,489,605 | ||||
Balance, amount at Aug. 31, 2020 | 223,462 | $ 34,490 | 0 | 552,883 | (363,911) |
Net Loss | (1,340,347) | (1,340,347) | |||
Common stock issued for cash | 180,000 | 180,000 | |||
Common stock issued to consultant, shares | 385,000 | ||||
Common stock issued to consultant, amount | 381,150 | $ 385 | 380,765 | ||
Balance, shares at Aug. 31, 2021 | 34,874,605 | ||||
Balance, amount at Aug. 31, 2021 | (555,735) | $ 34,875 | 180,000 | 933,648 | (1,704,258) |
Net Loss | (2,291,263) | (2,291,263) | |||
Issuance of previous common stock to be issued, shares | 520,000 | ||||
Issuance of previous common stock to be issued, amount | 0 | $ 520 | (180,000) | 179,480 | 0 |
Common stock issued to management, shares | 3,000,000 | ||||
Common stock issued to management, amount | 1,500,000 | $ 3,000 | 1,497,000 | ||
Common stock issued to consultants, shares | 522,346 | ||||
Common stock issued to consultants, amount | 270,000 | $ 522 | 269,478 | ||
Balance, shares at Mar. 31, 2022 | 38,916,951 | ||||
Balance, amount at Mar. 31, 2022 | $ (1,076,998) | $ 38,917 | $ 0 | $ 2,879,606 | $ (3,995,521) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Aug. 31, 2021 | |
Cash Flows from Operating Activities | ||||
Net loss | $ (363,911) | $ (2,291,263) | $ (1,004,979) | $ (1,340,347) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Provision for excess inventory | 0 | 49,439 | 0 | 0 |
Stock issued for services | 0 | 1,750,000 | 381,150 | 381,150 |
Changes in operating assets and liabilities: | ||||
Inventory | 0 | 0 | 0 | (49,439) |
Prepayments and other current assets | (50,000) | 4,167 | 0 | 50,000 |
Accounts payable and accounts payable - related party | 25,584 | 486,035 | 226,428 | 537,654 |
Net Cash Provided by (Used in) Operating Activities | (368,774) | (1,623) | (397,401) | (420,982) |
Cash Flows from Investing Activities | ||||
Cash acquired from acquisition | 17 | 0 | 0 | 0 |
Net Cash Used in Investing Activities | 17 | 0 | 0 | 0 |
Cash Flows from Financing Activities | ||||
Proceeds from issuance of common stock | 611,507 | 0 | 180,000 | 180,000 |
Net Cash Provided by Financing Activities | 611,507 | 0 | 180,000 | 180,000 |
Net Change in Cash | 242,750 | (1,623) | (217,401) | (240,982) |
Cash - beginning of reporting period | 0 | 1,768 | 242,750 | 242,750 |
Cash - end of reporting period | 242,750 | 145 | 25,349 | 1,768 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | 0 | 0 | 0 | 0 |
Income tax paid | 0 | 0 | 0 | 0 |
Non Cash Financing and Investing Activities | ||||
Issuance of stock for software subscription | 0 | 20,000 | 0 | 0 |
Issuance of stock for acquisition | $ 110,910 | $ 0 | $ 0 | $ 0 |
Organization and Basis of Prese
Organization and Basis of Presentation | 7 Months Ended |
Mar. 31, 2022 | |
Organization and Basis of Presentation | |
Note 1 - Organization and Basis of Presentation | Note 1 - Organization and Basis of Presentation Description of the Company FairWind Energy, Inc. (the "Company") was incorporated on April 18, 2013 under the laws of the State of Nevada. Effective June 17, 2019, the Company changed its name to Agentix Corp. The Company is a clinical-stage biotechnology company developing therapeutic agents for the treatment of metabolic disease like Type 2 diabetes mellitus, obesity, non-alcoholic fatty liver disease (NAFLD) and non-alcoholic steatohepatitis (NASH). Starting in March 2022, the Company changed its fiscal year end from August to March. Merger with GSL Healthcare, Inc. On May 28, 2020, the Company, entered into a Share Exchange Agreement with GSL Healthcare, Inc., a Nevada corporation (“GSL Healthcare”), and the holders of the common stock of GSL Healthcare, which consisted of two stockholders. Under the terms and conditions of the Share Exchange Agreement, the Company offered and sold 27,932,271 shares of common stock of the Company in consideration for all of the issued and outstanding shares of common stock of GSL Healthcare. The effect of the issuance is that GSL Healthcare became a wholly-owned subsidiary of the Company. The closing date occurred on June 1, 2020. The merger between the Company and GSL Healthcare was treated as a reverse capitalization for financial statement reporting purposes with GSL Healthcare deemed the accounting acquirer and the Company deemed the accounting acquiree. Accordingly, GSL Healthcare’s assets, liabilities and results of operations became the historical financial statements of the Company. GSL Healthcare’s inception date was April 15, 2020. Merger with Applied Biopharma In July 2021, the Company entered into and completed an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, AB Merger LLC, a Nevada limited liability company and wholly-owned subsidiary of the Company (“AB Merger”), and Applied Biopharma, pursuant to which Applied BioPharma merged into AB Merger and the effect of which is that, upon and assuming consummation of the Merger Agreement, Applied Biopharma became a wholly-owned subsidiary of the Company. The Company paid one share of its common stock for the acquisition of Applied Biopharma and thus the acquisition of Applied Biopharma was considered immaterial, as Applied Biopharma had minimal activity and had no assets or liabilities as of the date of merger. As such, the Company has included the activity of Applied Biopharma for the period following the completion of the Merger Agreement. Going Concern The Company’s consolidated financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the consolidated financial statements, the Company had an accumulated deficit on March 31, 2022, a net loss, and net cash used in operating activities. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company is attempting to commence operations and generate sufficient revenue; however, the Company’s cash position is not sufficient to support its daily operations. While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, GSL Healthcare, Inc., AB Merger LLC, and Applied Biopharma, all 100% owned entities. Intercompany transactions and balances have been eliminated in consolidation. |
Significant and Critical Accoun
Significant and Critical Accounting Policies and Practices | 7 Months Ended |
Mar. 31, 2022 | |
Significant and Critical Accounting Policies and Practices | |
Note 2 - Significant and Critical Accounting Policies and Practices | Note 2 - Significant and Critical Accounting Policies and Practices Basis of Presentation The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) to Form 10-K and Article 8 of Regulation S-X. These consolidated financial statements should be read in conjunction with the notes herein. Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions Preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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. Among other things, management estimates include the assumptions made in determining impairment and valuation of investments, accruals for potential liabilities and realization of deferred tax assets. These estimates generally involve complex issues and require judgments, involve analysis of historical information and the prediction of future trends, and are subject to change from period to period. Actual amounts could differ significantly from these estimates. Accounting for Leases The Company follows the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset (“ROU”) and a lease liability for virtually all leases. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company uses an implicit rate of interest to determine the present value of lease payments utilizing its incremental borrowing rate, as the implicit rate of interest in the respective leases is not readily determinable. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. As of March 31, 2022 and August 31, 2021 and 2020, the Company did not have any leases. Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP) and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts payable and accrued expenses approximate their fair values because of the short maturity of these instruments. The Company’s equity investments are considered Level 3, as pricing inputs are generally unobservable and not corroborated by market data. Inventories Inventories are stated at the lower of cost or market. Cost is determined principally on a first-in-first-out average cost basis. Inventories consist of finished goods held for sale. Management regularly reviews inventory quantities on-hand and records an inventory provision for excess or obsolete inventory based on the future expected demand for products. Inventory write-downs are measured as the difference between the cost of the inventory and market value, based upon assumptions about future demand that are inherently difficult to assess. During the seven months March 31, 2022, the Company recorded a provision for excess inventory in the amount of $49,439 for inventory that was deemed not sellable. For the year ended August 31, 2021 and for the period from inception (April 15, 2020) to August 31, 2020, the Company did not record a provision for excess or obsolete inventory. Prepayment As of August 31, 2020, the Company recorded a $50,000 payment as a deposit for inventory, which was reflected in the Company’s balance sheet as Prepayment. During the year ended August 31, 2021, the inventory was received. Prepaid expense at March 31, 2022 related to prepaid software (see note 7). Carrying Value, Recoverability and Impairment of Long-Lived Assets The Company follows Section 360-10-35 of the FASB Accounting Standards Codification for its long-lived assets. Pursuant to ASC Paragraph 360-10-35-17 an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Pursuant to ASC Paragraph 360-10-35-20 if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited. Pursuant to ASC Paragraph 360-10-35-21 the Company’s long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company considers the following to be some examples of such events or changes in circumstances that may trigger an impairment review: (a) significant decrease in the market price of a long-lived asset (asset group); (b) A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; (c) A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; (d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); (e) A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group); and (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. Pursuant to ASC Paragraphs 360-10-45-4 and 360-10-45-5 an impairment loss recognized for a long-lived asset (asset group) to be held and used shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amount of that loss. A gain or loss recognized on the sale of a long-lived asset (disposal group) that is not a component of an entity shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amounts of those gains or losses. Investments The Company follows ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Among other things, this guidance requires certain equity investments to be measured at fair value with changes in fair value recognized in net income. As such, the Company measures its equity investments at their fair value at end of each reporting period. Investments accounted for under the equity method or cost method of accounting above are included in the caption "Equity investments" on the Balance Sheet. Management uses Level 3 inputs, as defined in paragraph 820-10-35-37 of the FASB Accounting Standards Codification, to measure the fair value of its financial instruments. The changes in carrying amount of the equity investment were as follows: Seven Months Ended March 31, 2022 Seven Months Ended March 31, 2021 Year Ended August 31, 2021 Inception (April 15, 2020) to August 31, 2020 Beginning balance $ - $ - $ - $ - Acquisitions - - - 19,553 Dispositions - - - - Impairment - - - (19,553 ) Ending balance $ - $ - $ - $ - Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Commitment and Contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Revenue Recognition The Company follows the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. Under ASC 606, revenue is recognized when control of the promised goods and services is transferred to the Company’s customers, in an amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods and services, net of value-added tax. The Company determines revenue recognition through the following steps: · Identify the contract with a customer; · Identify the performance obligations in the contract; · Determine the transaction price; · Allocate the transaction price to the performance obligations in the contract; and · Recognize revenue when (or as) the entity satisfies a performance obligation. Research and Development The Company follows paragraph 730-10-25-1 of the FASB Accounting Standards Codification (formerly Statement of Financial Accounting Standards No. 2 “Accounting for Research and Development Costs” “Research and Development Arrangements” Related Parties The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include a. affiliates (“Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act) of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Deferred Tax Assets and Income Tax Provision The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. 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 effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. Earnings per Share Earnings per share (“EPS”) are the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. There were no dilutive common shares for the periods presented in the consolidated financial statements. Stock-Based Payments Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). ASC 718 also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. For non-employees, the Company follows ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under the ASU No. 2017-07, most of the guidance on stock payments to nonemployees is aligned with the requirements for share-based payments granted to employees. As such, most of the guidance in ASC 718 associated with employee share-based payments, including most requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. No stock options or warrants were issued or outstanding as of March 31, 2022, August 31, 2021 or August 31, 2020. Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 was effective for the Company beginning in fiscal 2022. Adoption of ASU 2019-12 did not have an impact on the Company’s financial statements. On August 5, 2020 the FASB issued the ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)”. The amendments in this update address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, accounting models for specific features are removed and amendments to the disclosure requirements are included. For contracts in an entity’s own equity, simplifies the settlement assessment by removing some requirements. Additionally, the amendments in this update affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. The amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company is assessing the effects, if any, that the adoption of this accounting pronouncement may have on its financial statements. |
Related Parties
Related Parties | 7 Months Ended |
Mar. 31, 2022 | |
Related Parties | |
Note 3 - Related Parties | Note 3 – Related Parties SBS Management LLC During the seven months ended March 31, 2022, the Company incurred $339,000 of management fees of which $250,000 related to non-cash stock compensation for the issuance of 500,000 shares of the Company’s common stock issued at a fair market value on the date of issuance of $0.50 per share; $35,000 for reimbursement of rent; and $8,530 of advances to the Company to cover certain operating expenses and accounts payable from SBS Management LLC, a company controlled by Mr. Scott Stevens who is a shareholder of the Company. The fair market value of the common stock issued was determined based on the historical market price of the Company’s common stock as of the date of issuance. As of March 31, 2022, $288,419 was included in Accounts payable – related party in the accompanying balance sheet. During the seven months ended March 31, 2021, the Company incurred $88,099 of management fees; $35,000 for reimbursement of rent; and $11,494 of advances to the Company to cover certain operating expenses and accounts payable from SBS Management LLC. As of August 31, 2021, $41,233 was owed to SBS Management LLC and was included in Accounts payable – related party in the accompanying balance sheet. During the year ended August 31, 2021, the Company incurred $150,000 of management fees, $60,000 for reimbursement of rent, $12,093 of advances, and $5,000 advance of working capital to the Company to cover certain operating expenses from SBS Management LLC. As of August 31, 2021, $127,233 was included in Accounts payable – related party in the accompanying balance sheet. During the period from inception (April 15, 2020) to August 31, 2020, SBS Management LLC was paid $53,000 of management fees and the Company reimbursed SBS Management LLC $20,000 for rent expense. The advances are unsecured, non-interest bearing, with no formal terms of repayment. Gray’s Peak Capital Gray’s Peak Capital, a company founded by a shareholder of the Company, made advances to the Company to cover certain operating expenses. As of March 31, 2022 the amount due Gray’s Peak Capital for these advances was $218,620 and as of August 31, 2021 and 2020, the amounts due Grays’s Peak were $120,870 and $27,870, respectively. Amounts owed to Gray’s Peak were included in accounts payable – related party in the accompanying balance sheet. These advances are unsecured, non-interest bearing, with no formal terms of repayment. Consulting Fees During the seven months ended March 31, 2022, the Company incurred $750,000 of consulting fees related to the non-cash issuance of 1,500,000 shares of the Company’s common stock at a fair market value of $0.50 per share on the date of issuance to Emmes Group Consulting LLC (“Emmes”), which the Company’s Chief Scientific Officer is the managing director of Emmes. The fair market value of the common stock issued was determined based on the historical market price of the Company’s common stock as of the date of issuance. Management During the seven months ended March 31, 2022 and 2021, the Company incurred $473,500 and $68,750, respectively, of consulting fees of which $375,000 incurred during the seven months ended March 31, 2022 related to non-cash stock compensation for the issuance of 750,000 shares of the Company’s common stock issued at a fair value on the date of issuance of $0.50 per share, from a consulting agreement with the Company’s SVP Portfolio & Business Development. The fair market value of the common stock issued was determined based on the historical market price of the Company’s common stock as of the date of issuance. As of March 31, 2022 $201,000 was included in accounts payable – related party in the accompanying balance sheet. During the year ended August 31, 2021, the Company incurred $112,500 of consulting fees from a shareholder of the company of which $5,000 was paid and $107,500 was included in accounts payable – related party in the accompanying balance sheet. During the seven months ended March 31, 2022 and 2021, the Company incurred $480,000 and $97,500, respectively of consulting fees of which $375,000 incurred during the seven months ended March 31, 2022 related to the non-cash issuance of the 750,000 shares of the Company’s common stock issued at a fair value on the date of issuance of $0.50 per share, from a consulting and employment agreement with its CEO. The fair market value of the common stock issued was determined based on the historical market price of the Company’s common stock as of the date of issuance. As of March 31, 2022, $232,500 was included in accounts payable – related party in the accompanying balance sheet. During the year ended August 31, 2021, the Company incurred $112,500 of consulting fees from a shareholder of the company of which $5,000 was paid and $107,500 was included in accounts payable – related party in the accompanying balance sheet. During the year ended August 31, 2021, the Company incurred $130,000 from a consulting and employment agreement with its CEO of which $5,000 was paid and $130,000 was included in accounts payable – related party in the accompanying balance sheet. |
Acquisition of GSL Healthcare I
Acquisition of GSL Healthcare Inc | 7 Months Ended |
Mar. 31, 2022 | |
Acquisition of GSL Healthcare Inc | |
Note 4 - Acquisition of GSL Healthcare, Inc. | Note 4 – Acquisition of GSL Healthcare, Inc. On May 28, 2020, the Company, entered into a Share Exchange Agreement (the “Share Exchange Agreement”), by and among the Company, and GSL Healthcare, Inc., a Nevada corporation (“GSL Healthcare”), and the holders of common stock of GSL Healthcare, which consisted of two stockholders. The closing date occurred on June 1, 2020. Under the terms and conditions of the Share Exchange Agreement, the Company offered and sold 27,932,271 shares of common stock of the Company in consideration for all of the issued and outstanding shares of common stock of GSL Healthcare. The effect of the issuance is that former two GSL Healthcare shareholders now hold approximately 88.0% of the issued shares of common stock of the Company, and GSL Healthcare is now a wholly-owned subsidiary of the Company. The acquisition price consists of the issuance of 27,932,271 shares of the Company’s common stock with an estimated value of $138,852, which consisted of net assets of $17, liabilities of $43,704 and fair value of common stock issued of $95,165. The merger between the Company and GSL Healthcare was treated as a reverse capitalization for financial statement reporting purposes with GSL Healthcare deemed the accounting acquirer and the Company deemed the accounting acquiree. Accordingly, GSL Healthcare’s assets, liabilities and results of operations became the historical financial statements of the Company and no step-up in basis was recorded. As a result, the Company recorded $55,874 as a decrease in paid in capital related to the difference of consideration paid and net amount received. |
Acquisition of Applied Biopharm
Acquisition of Applied Biopharma | 7 Months Ended |
Mar. 31, 2022 | |
Acquisition of Applied Biopharma | |
Note 5 - Acquisition of Applied Biopharma | Note 5 – Acquisition of Applied Biopharma In July 2021, the Company entered into and completed an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, AB Merger LLC, a Nevada limited liability company and wholly-owned subsidiary of the Company (“AB Merger”), and Applied Biopharma, pursuant to which Applied BioPharma merged into AB Merger and the effect of which is that, upon and assuming consummation of the Merger Agreement, Applied Biopharma became a wholly-owned subsidiary of the Company. Under the terms and conditions of the Merger Agreement, the Company offered and sold 1 share of common stock of the Company in consideration for the purchase of Applied Biopharma. The effect of the issuance is that Applied Biopharma is now a wholly-owned subsidiary of the Company. The acquisition price consisted of the issuance of 1 share of the Company’s common stock with an estimated value of $1.15. Applied Biopharma consisted of net assets of nil and had minimal activity. As such, the acquisition of Applied Biopharma was considered immaterial. The Company has included the activity of Applied Biopharma for the period following the completion of the Merger Agreement. |
Equity Investments
Equity Investments | 7 Months Ended |
Mar. 31, 2022 | |
Equity Investments | |
Note 6 - Equity Investments | Note 6 – Equity Investments The Company follows ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, and as such, equity investments are recorded at their market value, with the change in fair value being reflected in the consolidated statement of operations. In conjunction with the merger, the Company purchased a 10% LLC interest in API Holdings Inc., which holds certain equity investments obtained from the purchased shares of stock of four entities with ownership percentages of less than 5%. The LLC interest held by the Company was recorded at the purchase price of $19,553. During the period from inception (April 15, 2020) to August 31, 2020, management determined that the fair value of the equity investment was $nil and as such, management recorded an impairment charge of $19,553. There have been no observable price changes during the periods subsequent to August 31, 2020 to March 31, 2022. As such, the Company has measured the value of the investment at $nil as of March 31, 2022, which management believes approximates market value. |
Equity
Equity | 7 Months Ended |
Mar. 31, 2022 | |
Equity | |
Note 7 - Equity | Note 7 – Equity As of March 31, 2022 and August 31, 2021 and 2020, the Company has authorized 50,000,000 shares of common stock at a par value of $0.001 per share and had issued and outstanding shares of common stock of 38,916,951, 34,874,605 and 34,489,605, respectively. Shares issued for services During the seven months ended March 31, 2022, the Company issued 22,346 shares of the Company’s common stock in exchange for a one year software subscription, which totaled $20,000. The fair value of the common stock issued was $0.89, which was determined based on the historical market price of the Company’s common stock as of the date of issuance. The fair value determined is being amortized ratably over the one year subscription period to general and administrative expenses. During the seven months ended March 31, 2022, the Company issued 3,500,000 shares of its common stock to related parties. See note 3. Shares issued for cash During the year ended August 31, 2021, the Company issued 520,000 shares of its common stock to certain accredited investors for cash of which 320,000 shares were issued at a price of $0.25 per share for total proceeds of $80,000 and 200,000 shares were issued at a price of $0.50 per share for total proceeds of $100,000. As of August 31, 2021, the Company had not issued 520,000 shares previously sold and as such $180,000 was reflected in the accompanying consolidated balance sheet as common stock to be issued. During the seven months ended March 31, 2022, all shares had been issued. On June 15, 2020, the Company sold 317,389 shares of common stock to accredited investors, at a purchase price of $0.01 per share, for aggregate offering proceeds of $3,174. On July 22, 2020, the Company sold 2,433,332 shares of common stock to accredited investors, at a purchase price of $0.25 per share, for aggregate offering proceeds of $608,333. |
Deferred Tax Assets and Income
Deferred Tax Assets and Income Tax Provision | 7 Months Ended |
Mar. 31, 2022 | |
Deferred Tax Assets and Income Tax Provision | |
Note 8 - Deferred Tax Assets and Income Tax Provision | Note 8 – Deferred Tax Assets and Income Tax Provision At March 31, 2022, no tax benefit has been recorded with respect to the net operating loss in the accompanying consolidated financial statements as the management of the Company believes that the realization of the Company’s net deferred tax assets would be considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance. Deferred tax assets consist primarily of the tax effect of Net Operating Loss (“NOL”) carry-forwards. The Company estimated the expected income tax benefit from NOL carry-forwards of $827,000, $353,000 and $71,000 as of March 31, 2022 and August 31, 2021 and 2020, respectively, of which the Company provided a full valuation allowance of $827,000, $353,000 and $71,000, respectively, and thus had a deferred tax asset, net of valuation allowance of $nil as of March 31, 2022, August 31, 2021 and 2020, respectively. The Company’s blended federal statutory income tax rate was 21% of which a NOL carry-forwards blended rate of 21% offset this rate and thus the effective income tax rate was nil% for all periods presented. The Company’s income tax filings are subject to audit by various taxing authorities. The Company’s open audit periods include from Inception (April 15, 2020) to the current tax year. |
Subsequent Events
Subsequent Events | 7 Months Ended |
Mar. 31, 2022 | |
Subsequent Events | |
Note 9 - Subsequent Events | Note 9 – Subsequent Events In accordance with ASC 855, the Company has analyzed its operations subsequent to March 31, 2022 through the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements. |
Significant and Critical Acco_2
Significant and Critical Accounting Policies and Practices (Policies) | 7 Months Ended |
Mar. 31, 2022 | |
Significant and Critical Accounting Policies and Practices | |
Basis of Presentation | The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) to Form 10-K and Article 8 of Regulation S-X. These consolidated financial statements should be read in conjunction with the notes herein. |
Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions | Preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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. Among other things, management estimates include the assumptions made in determining impairment and valuation of investments, accruals for potential liabilities and realization of deferred tax assets. These estimates generally involve complex issues and require judgments, involve analysis of historical information and the prediction of future trends, and are subject to change from period to period. Actual amounts could differ significantly from these estimates. |
Accounting for Leases | The Company follows the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset (“ROU”) and a lease liability for virtually all leases. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company uses an implicit rate of interest to determine the present value of lease payments utilizing its incremental borrowing rate, as the implicit rate of interest in the respective leases is not readily determinable. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. As of March 31, 2022 and August 31, 2021 and 2020, the Company did not have any leases. |
Fair Value of Financial Instruments | The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP) and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts payable and accrued expenses approximate their fair values because of the short maturity of these instruments. The Company’s equity investments are considered Level 3, as pricing inputs are generally unobservable and not corroborated by market data. |
Inventories | Inventories are stated at the lower of cost or market. Cost is determined principally on a first-in-first-out average cost basis. Inventories consist of finished goods held for sale. Management regularly reviews inventory quantities on-hand and records an inventory provision for excess or obsolete inventory based on the future expected demand for products. Inventory write-downs are measured as the difference between the cost of the inventory and market value, based upon assumptions about future demand that are inherently difficult to assess. During the seven months March 31, 2022, the Company recorded a provision for excess inventory in the amount of $49,439 for inventory that was deemed not sellable. For the year ended August 31, 2021 and for the period from inception (April 15, 2020) to August 31, 2020, the Company did not record a provision for excess or obsolete inventory. |
Prepayment | As of August 31, 2020, the Company recorded a $50,000 payment as a deposit for inventory, which was reflected in the Company’s balance sheet as Prepayment. During the year ended August 31, 2021, the inventory was received. Prepaid expense at March 31, 2022 related to prepaid software (see note 7). |
Carrying Value, Recoverability and Impairment of Long-Lived Assets | The Company follows Section 360-10-35 of the FASB Accounting Standards Codification for its long-lived assets. Pursuant to ASC Paragraph 360-10-35-17 an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Pursuant to ASC Paragraph 360-10-35-20 if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited. Pursuant to ASC Paragraph 360-10-35-21 the Company’s long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company considers the following to be some examples of such events or changes in circumstances that may trigger an impairment review: (a) significant decrease in the market price of a long-lived asset (asset group); (b) A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; (c) A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; (d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); (e) A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group); and (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. Pursuant to ASC Paragraphs 360-10-45-4 and 360-10-45-5 an impairment loss recognized for a long-lived asset (asset group) to be held and used shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amount of that loss. A gain or loss recognized on the sale of a long-lived asset (disposal group) that is not a component of an entity shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amounts of those gains or losses. |
Investments | The Company follows ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Among other things, this guidance requires certain equity investments to be measured at fair value with changes in fair value recognized in net income. As such, the Company measures its equity investments at their fair value at end of each reporting period. Investments accounted for under the equity method or cost method of accounting above are included in the caption "Equity investments" on the Balance Sheet. Management uses Level 3 inputs, as defined in paragraph 820-10-35-37 of the FASB Accounting Standards Codification, to measure the fair value of its financial instruments. The changes in carrying amount of the equity investment were as follows: Seven Months Ended March 31, 2022 Seven Months Ended March 31, 2021 Year Ended August 31, 2021 Inception (April 15, 2020) to August 31, 2020 Beginning balance $ - $ - $ - $ - Acquisitions - - - 19,553 Dispositions - - - - Impairment - - - (19,553 ) Ending balance $ - $ - $ - $ - |
Cash Equivalents | The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. |
Commitment and Contingencies | The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. |
Revenue Recognition | The Company follows the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. Under ASC 606, revenue is recognized when control of the promised goods and services is transferred to the Company’s customers, in an amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods and services, net of value-added tax. The Company determines revenue recognition through the following steps: · Identify the contract with a customer; · Identify the performance obligations in the contract; · Determine the transaction price; · Allocate the transaction price to the performance obligations in the contract; and · Recognize revenue when (or as) the entity satisfies a performance obligation. |
Research and Development | The Company follows paragraph 730-10-25-1 of the FASB Accounting Standards Codification (formerly Statement of Financial Accounting Standards No. 2 “Accounting for Research and Development Costs” “Research and Development Arrangements” |
Related Parties | The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include a. affiliates (“Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act) of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Deferred Tax Assets and Income Tax Provision | The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. 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 effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. |
Earnings per Share | Earnings per share (“EPS”) are the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. There were no dilutive common shares for the periods presented in the consolidated financial statements. |
Stock-Based Payments | Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). ASC 718 also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. For non-employees, the Company follows ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under the ASU No. 2017-07, most of the guidance on stock payments to nonemployees is aligned with the requirements for share-based payments granted to employees. As such, most of the guidance in ASC 718 associated with employee share-based payments, including most requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. No stock options or warrants were issued or outstanding as of March 31, 2022, August 31, 2021 or August 31, 2020. |
Recent Accounting Pronouncements | In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 was effective for the Company beginning in fiscal 2022. Adoption of ASU 2019-12 did not have an impact on the Company’s financial statements. On August 5, 2020 the FASB issued the ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)”. The amendments in this update address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, accounting models for specific features are removed and amendments to the disclosure requirements are included. For contracts in an entity’s own equity, simplifies the settlement assessment by removing some requirements. Additionally, the amendments in this update affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. The amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company is assessing the effects, if any, that the adoption of this accounting pronouncement may have on its financial statements. |
Significant and Critical Acco_3
Significant and Critical Accounting Policies and Practices (Tables) | 7 Months Ended |
Mar. 31, 2022 | |
Significant and Critical Accounting Policies and Practices | |
Schedule of equity investment | Seven Months Ended March 31, 2022 Seven Months Ended March 31, 2021 Year Ended August 31, 2021 Inception (April 15, 2020) to August 31, 2020 Beginning balance $ - $ - $ - $ - Acquisitions - - - 19,553 Dispositions - - - - Impairment - - - (19,553 ) Ending balance $ - $ - $ - $ - |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Narrative) - GSL Healthcare [Member] - shares | 1 Months Ended | 7 Months Ended |
May 28, 2020 | Mar. 31, 2022 | |
Common stock sold | 27,932,271 | 27,932,271 |
Owned entity percentage | 100% |
Significant and Critical Acco_4
Significant and Critical Accounting Policies and Practices (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Aug. 31, 2021 | |
Significant and Critical Accounting Policies and Practices | ||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 0 |
Acquisitions | 19,553 | 0 | 0 | 0 |
Dispositions | 0 | 0 | 0 | 0 |
Impairment | (19,553) | 0 | 0 | 0 |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Significant and Critical Acco_5
Significant and Critical Accounting Policies and Practices (Details Narrative) - USD ($) | 7 Months Ended | ||
Mar. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Significant and Critical Accounting Policies and Practices | |||
Dilutive common shares | $ 0 | ||
Prepayments | $ 15,833 | $ 0 | $ 50,000 |
Outstanding stock options | 0 | ||
Warrant outstanding | $ 0 | ||
Provision for excess inventory | $ 49,439 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Aug. 31, 2021 | Feb. 28, 2022 | |
Value per share | $ 0.89 | ||||
Consulting fees | $ 227,055 | $ 2,010,442 | $ 738,382 | $ 909,483 | |
Emmes Group [Member] | |||||
Non-cash issuance of shares | 1,500,000 | ||||
Value per share | $ 0.50 | ||||
Consulting fees | $ 750,000 | ||||
SBS Management [Member] | |||||
Accounts payable - other related party | $ 288,419 | 41,233 | 127,233 | ||
Non-cash issuance of shares | 500,000 | ||||
Value per share | $ 0.50 | ||||
Rent expense | 20,000 | ||||
Non-cash stock compensation | $ 250,000 | ||||
Management fees | 53,000 | 339,000 | 88,099 | 150,000 | |
Reimbursement of rent | 35,000 | 35,000 | 60,000 | ||
Advances | 8,530 | 11,494 | 12,093 | ||
Working capital advances | 5,000 | ||||
Grays Peak [Member] | |||||
Accounts payable - other related party | 107,500 | $ 5,000 | |||
Advances | 218,620 | 190,750 | |||
Consulting fees | 112,000 | ||||
Due to related party | $ 27,870 | 120,870 | |||
SVP Portfolio And Business Development [Member] | |||||
Accounts payable - other related party | $ 201,000 | 107,500 | |||
Non-cash issuance of shares | 750,000 | ||||
Value per share | $ 0.50 | ||||
Non-cash stock compensation | $ 375,000 | ||||
Consulting fees | 473,500 | 68,750 | 112,500 | ||
Ampunt paid | 5,000 | ||||
CEO [Member] | |||||
Accounts payable - other related party | $ 232,500 | 130,000 | |||
Non-cash issuance of shares | 750,000 | ||||
Value per share | $ 0.50 | ||||
Non-cash stock compensation | $ 375,000 | ||||
Consulting fees | $ 480,000 | $ 97,500 | 130,000 | ||
Ampunt paid | 5,000 | ||||
Employement Agrrement [Member] | |||||
Accounts payable - other related party | 107,500 | ||||
Consulting fees | 112,500 | ||||
Ampunt paid | $ 5,000 |
Acquisition of GSL Healthcare_2
Acquisition of GSL Healthcare Inc (Details Narrative) - USD ($) | 1 Months Ended | 7 Months Ended |
May 28, 2020 | Mar. 31, 2022 | |
Issuance of common stock | 27,932,271 | |
Estimated value of common stock | $ 138,852 | |
Net assets | 17 | |
Liabilities | 43,704 | |
Fair value of common stock | 95,165 | |
Decrease in additional paid in capital | $ 55,874 | |
GSL Healthcare [Member] | ||
Percentage of shares issued | 88% | |
Common stock sold | 27,932,271 | 27,932,271 |
Acquisition of Applied Biopha_2
Acquisition of Applied Biopharma (Details Narrative) - USD ($) | 7 Months Ended | |
Mar. 31, 2022 | Aug. 31, 2021 | |
Issuance of common stock | 27,932,271 | |
Net assets | $ 17 | |
Applied Biopharma [Member] | ||
Issuance of common stock | 1 | |
Estimated value of common stock per share | $ 1.15 | |
Net assets | $ 0 |
Equity Investments (Details Nar
Equity Investments (Details Narrative) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Aug. 31, 2021 | |
Impairment | $ (19,553) | $ 0 | $ 0 | $ 0 |
API Holdings Inc [Member] | ||||
Equity investments purchase price | $ 19,553 | |||
Equity investment purchase percentage | 10% | |||
Equity investments purchase description | Company purchased a 10% LLC interest in API Holdings Inc., which holds certain equity investments obtained from the purchased shares of stock of four entities with ownership percentages of less than 5% |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 1 Months Ended | 7 Months Ended | |||
Jul. 22, 2020 | Jun. 15, 2020 | Mar. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Common stock, shares par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||
Common stock, shares issued | 38,916,951 | 34,874,605 | 34,489,605 | ||
Common stock, shares outstanding | 38,916,951 | 34,489,605 | 34,874,605 | ||
Common stock share issued for service, shares | 22,346 | ||||
Common stock to be issued to related party | 3,500,000 | ||||
Share price | $ 0.89 | ||||
Software Subscription | $ 20,000 | ||||
Common stock to be issued | 180,000 | 520,000 | |||
Common stock to be issued | 520,000 | ||||
Accredited Investors [Member] | |||||
Shares issued price per shares | $ 0.25 | $ 0.01 | |||
Common stock sold | 2,433,332 | 317,389 | |||
Aggregate proceeds of shares | $ 608,333 | $ 3,174 | |||
Common stock to be issued | 520,000 | ||||
Accredited Investors [Member] | Second Issue [Member] | |||||
Shares issued price per shares | $ 0.50 | ||||
Common stock shares issued for cash, shares | 200,000 | ||||
Proceeds from issuance of stock, amount | $ 100,000 | ||||
Accredited Investors [Member] | First Issue [Member] | |||||
Shares issued price per shares | $ 0.25 | ||||
Common stock shares issued for cash, shares | 320,000 | ||||
Proceeds from issuance of stock, amount | $ 80,000 |
Deferred Tax Assets and Incom_2
Deferred Tax Assets and Income Tax Provision (Details Narrative) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Aug. 31, 2021 | |
Net operating loss ("NOL") carry forwards | $ 71,000 | $ 827,000 | $ 353,000 | ||
Operating loss carryforwards, valuation allowance | 71,000 | $ 827,000 | 353,000 | ||
federal statutory income tax rate , description | The Company’s blended federal statutory income tax rate was 21% of which a NOL carry-forwards blended rate of 21% offset this rate and thus the effective income tax rate was nil% | ||||
Income tax provision | 0 | $ 0 | $ 0 | $ 0 | 0 |
Deferred tax assets, valuation allowance | $ 0 | $ 0 | $ 0 |