| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES Basis of Presentation These financial statements
have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). Accounting Method The Company's financial
statements are prepared using the accrual method of accounting. The Company has elected a fiscal year ending on June 30. Use of Estimates The preparation of financial
statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments
necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. Financial Instruments The carrying amount reported in the balance
sheet for cash, accounts receivable, accounts payable, accrued expenses, interest payable and short-term notes payable approximate
fair value because of the immediate or short-term maturity of these financial instruments. Cash Equivalents The Company considers all highly liquid investments
with maturity of three months or less when purchased to be cash equivalents. Accounts Receivable Accounts' receivable
are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollected
amounts through a charge to earnings and a credit to an allowance for bad debts based on its assessment of the current status of
individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off
through a charge to the allowance for bad debts and a credit to accounts receivable. Our bad debt policy is
determined by the Company's periodic review of each account receivable for reasonable assurance of collection. Factors considered
are the exporter's financial condition, past payment history if any, any conversations with the exporter about the exporter's financial
conditions and any other extenuating circumstances. Based upon the above factors the Company makes a determination whether the
receivable are reasonable assured of collection. Based upon our review if required we adjust the allowance for bad debt. As of
June 30, 2016 and 2015, based upon our limited history, our allowance for bad debt is just above bad debt we anticipate will be
written off for the year. Concentration of
Credit Risk Financial instruments
that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents.
The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. However, management
believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in
which those deposits are held. Property, Plant, and Equipment Property, plant and equipment
are initially recognized recorded at cost. Gains or losses on disposals are reflected as gain or loss in the period of disposal.
The cost of improvements that extend the life of plant and equipment are capitalized. These capitalized costs may include structural
improvements, equipment and fixtures. All ordinary repairs and maintenance costs are expensed as incurred. Depreciation for financial reporting purposes
is provided using the straight-line method over the estimated useful lives of the assets:
Office equipment 5 years For the years ended June 30, 2016 and 2015,
depreciation expense is $0. Income Taxes Income taxes are provided
in accordance with Statement of Financial Accounting Standards ASC 740 Accounting for Income Taxes. A deferred tax asset or liability
is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax
expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced
by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred
tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates
on the date of enactment. The Company was established
under the laws of the State of Delaware and is subject to U.S. federal income tax and Delaware state income tax. Deferred income
tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities
that will result in future taxable or deductible amounts and are based on enacted tax laws and rates applicable to the periods
in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred
income tax assets to the amount expected to be realized. Earnings per Share In February 1997, the
FASB issued ASC 260, "Earnings per Share", which specifies the computation, presentation and disclosure requirements
for earnings (loss) per share for entities with publicly held common stock. ASC 260 supersedes the provisions of APB No. 15, and
requires the presentation of basic earnings (loss) per share and diluted earnings (loss) per share. The Company has adopted the
provisions of ASC 260 effective (inception). Basic earnings or net
loss per share amounts are computed by dividing the net income or loss by the weighted average number of common shares outstanding.
Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company. Impact of New Accounting
Standards The Company does not
expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company's results of operations,
financial position, or cash flow. Pushdown Accounting and Goodwill Pursuant to applicable
rules (FASB ASC 805-50-S99) the Company used push down accounting to reflect AmericaTowne Inc.s purchase of 86% of the shares
of the Company's common stock. Joseph Arcaro, the Company's prior controlling shareholder entered into an agreement to sell an
aggregate of 100,000,000 shares of the Company's common stock to AmericaTowne Inc. effective upon the closing date of the Share
Purchase Agreement dated June 2, 2016. Joseph Arcaro executed the agreement and owned no shares of the Company's common stock.
This transaction resulted in AmericaTowne Inc. retaining rights, title and interest to 86% of issued and outstanding shares of
common stock in the Company. The purchase cost for
the agreement was $175,000. The implied fair value of the Companys net assets is $203,133 which is used as a new accounting
basis for its net assets. Since there was no assets on the company's book on June 6, 2016, to make the company's net assets $203,133
the Company recorded $206,992 in goodwill ($206,992-$3,859=$203,133; $3,859 was a liability of accounts payable). Therefore, in
recognizing push down accounting, the Company's net asset increased by the amount reflected by Goodwill. Revenue Recognition The Company's revenue
recognition policies comply with FASB ASC Topic 605. The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards
Codification for revenue recognition. The Company will recognize revenue when it is realized or realizable and earned. The
Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence
of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales
price is fixed or determinable, and (iv) collectability is reasonably assured. The Company does not
provide unconditional right of return, price protection or any other concessions to its customers. There were no sales returns
and allowances from inception to June 30, 2016. Valuation of Goodwill We assess goodwill for
potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may
not be able to recover the carrying amount of the asset. In evaluating goodwill for impairment, we first assess qualitative factors
to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting
unit is less than its carrying amount. If we conclude that it is not more likely than not that the fair value of a reporting unit
is less than its carrying value, then no further testing of the goodwill assigned to the reporting unit is required. However, if
we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we perform
a two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment to
be recognized, if any. In the first step of
the review process, we compare the estimated fair value of the reporting unit with its carrying value. If the estimated fair value
of the reporting unit exceeds its carrying amount, no further analysis is needed. If the estimated fair value of the reporting
unit is less than its carrying amount, we proceed to the second step of the review process to calculate the implied fair value
of the reporting unit goodwill in order to determine whether any impairment is required. We calculate the implied fair value of
the reporting unit goodwill by allocating the estimated fair value of the reporting unit to all of the assets and liabilities of
the reporting unit as if the reporting unit had been acquired in a business combination. If the carrying value of the reporting
unit's goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss for that excess amount. In allocating
the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit, we use industry and
market data, as well as knowledge of the industry and our past experiences. We base our calculation
of the estimated fair value of a reporting unit on the income approach. For the income approach, we use internally developed discounted
cash flow models that include, among others, the following assumptions: projections of revenues and expenses and related cash flows
based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount
rates. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and
macro general economic condition projections, and our expectations. We have had no goodwill
impairment charges for the year ended June 30, 2016, and as of June 30, 2016, the estimated fair value of each of our reporting
units exceeded its' respective carrying amount by more than 100 percent based on our models and assumptions. |
