Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jul. 31, 2018USD ($)shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | Jul. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | LEPOTA INC. |
Entity Central Index Key | 1,617,351 |
Current Fiscal Year End Date | --07-31 |
Entity Filer Category | Smaller Reporting Company |
Entity Public Float | $ | $ 0 |
Entity Common Stock, Shares Outstanding | shares | 6,090,000 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Jul. 31, 2018 | Jul. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 1,378 | $ 7,781 |
Total Current Assets | 1,378 | 7,781 |
Total Assets | 1,378 | 7,781 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Loan from director | 5,475 | 5,475 |
Checking/Savings account (overdraft) | 0 | 0 |
Related party loans | 4,210 | 4,210 |
Accrued Expenses | 2,500 | |
Deferred Revenue | 0 | 0 |
Total Liabilities | $ 12,185 | $ 9,685 |
Common stock, par value $0.001; 75,000,000 shares authorized, 6,090,000 and 5,970,000 shares issued and outstanding respectively; | 6,090 | 5,970 |
Additional Paid-in Capital | $ 9,810 | $ 8,730 |
Accumulated deficit | (26,706) | (16,604) |
Total Stockholders' Equity | (10,806) | (1,904) |
Total Liabilities and Stockholders' Equity | $ 1,379 | $ 7,781 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - shares | Jul. 31, 2018 | Jul. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock shares authorized | 75,000,000 | 75,000,000 |
Common stock shares issued and outstanding | 6,090,000 | 5,970,000 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Income Statement [Abstract] | ||
REVENUES (Consulting Services) | $ 0 | $ 5,730 |
OPERATING EXPENSES | ||
General and Administrative Expenses | 10,102 | 7,206 |
TOTAL OPERATING EXPENSES | 10,102 | 7,206 |
NET LOSS FROM OPERATIONS | (10,102) | (1,476) |
NET LOSS | $ (10,102) | $ (1,476) |
NET LOSS PER SHARE: BASIC AND DILUTED | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 5,970,328 | 5,766,548 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Common Stock Amount | Additional Paid-in Capital | Accumulated Deficit |
Balance, July 31, 2018 at Jul. 31, 2014 | $ (349) | $ 5,000,000 | $ 5,000 | $ (5,349) | |
Net loss for the year 2015 | (8,423) | (8,423) | |||
Balance, July 31, 2017 at Jul. 31, 2015 | (8,772) | 5,000,000 | 5,000 | (13,772) | |
Balance, July 31, 2017 at Jul. 31, 2016 | (7,728) | 5,290,000 | 5,290 | $ 2,610 | (15,128) |
Net loss for the year 2016 | (1,355) | (1,355) | |||
Balance, July 31, 2018 at Jul. 31, 2015 | (8,772) | 5,000,000 | 5,000 | (13,772) | |
Balance, July 31, 2017 at Jul. 31, 2017 | $ (1,904) | $ 6,020,000 | $ 6,020 | $ 9,180 | (16,604) |
Shares issued for cash at $0.01 per share as of July 31, 2017 | 2,900 | 240,000 | 290 | 2,610 | |
Stock Subscription Receivable | $ (500) | $ 50,000 | |||
Balance, July 31, 2018 at Jul. 31, 2016 | (7,728) | 5,290,000 | $ 5,290 | $ 2,610 | (15,128) |
Balance, July 31, 2017 at Jul. 31, 2017 | $ (1,904) | $ 6,020,000 | $ 6,020 | $ 9,180 | (16,604) |
Shares issued for cash at $0.01 per share as of July 31, 2017 | 6,800 | 680,000 | 680 | 6,120 | |
Stock Subscription Receivable | $ 500 | $ 50,000 | $ 50 | $ 450 | |
Net loss for the year 2017 | (1,476) | (1,476) | |||
Balance, July 31, 2017 at Jul. 31, 2018 | (11,306) | 6,090,000 | 6,090 | 9,810 | (26,706) |
Shares issued for cash at $0.01 per share as of July 31, 2018 | 1,200 | 120,000 | 120 | 1,080 | |
Stock Subscription Receivable | (500) | $ (50,000) | $ (50) | $ (450) | |
Net loss for the year 2018 | $ (10,102) | $ (10,102) |
STATEMENTS OF STOCKHOLDERS' E_2
STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | 48 Months Ended |
Jul. 31, 2018USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Shares issued for cash, dividends per share | $ 0.001 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) for the period | $ (10,102) | $ (1,476) |
Deferred Revenue | 0 | (1,730) |
Accrued Expenses | 2,500 | |
CASH FLOWS USED IN OPERATING ACTIVITIES | (7,602) | (3,206) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Loans | 0 | (150) |
Bank overdraft | 0 | 0 |
Sale of common shares | 1,200 | 6,800 |
Stock Subcription Receivable | 0 | 500 |
CASH FLOWS PROVIDED FROM FINANCING ACTIVITIES | 1,200 | 7,150 |
NET INCREASE (DECREASE) IN CASH | 6,402 | 3,944 |
Cash, beginning of period | 7,781 | 3,837 |
Cash, end of period | 1,379 | 7,781 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 0 | $ 0 |
- ORGANIZATION AND NATURE OF BU
- ORGANIZATION AND NATURE OF BUSINESS | 12 Months Ended |
Jul. 31, 2018 | |
- ORGANIZATION AND NATURE OF BUSINESS [Abstract] | |
- ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS Lepota Inc. (the "Company" or “Lepota”) was incorporated under the laws of the State of Nevada on December 9, 2013. Our primary business is in the import of cosmetics into the Russian Federation and distribution of the products through shops and drugstores. We have concluded agreements with InterBeauty, LLC and South Distribution |
- SUMMARY OF SIGNIFCANT ACCOUNT
- SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2018 | |
- SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES [Abstract] | |
- SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES Recent Accounting Pronouncements In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-10, “Development Stage Entities”. The amendments in this update remove the definition of a development stage entity from the Master Glossary of the ASC thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments in this update are applied retrospectively. The adoption of ASU 2014-10 removed the development stage entity financial reporting requirements for the Company. Basis of Presentation The Company's financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. The Company has elected a July 31 fiscal year end. Fair Value of Financial Instruments In accordance with ASC 820, the Company's financial instruments consist of cash and cash equivalents and amounts due to related parties. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Income Taxes The Company accounts for income taxes under the asset/liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. In July 31, 2018, the FASB issued ASC 740, “Accounting for Uncertainty in Income Taxes” , which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. ASC 740 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties. Under this pronouncement, the Company recognizes the financial statement benefit of a tax position only after determining that a position would more likely than not be sustained based upon its technical merit if challenged by the relevant taxing authority and taken by management to the court of the last resort. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority. ASC 740 became effective for the Company as of October 1, 2008 and had no material impact on the Company's financial statements. The Company's policy is to recognize both interest and penalties related to unrecognized tax benefits in income tax expense. Interest and penalties on unrecognized tax benefits expected to result in payment of cash within one year are classified as accrued liabilities, while those expected beyond one year are classified as other liabilities. The Company has not recorded any interest and penalties since its inception. 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. Basic Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Company's net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company's net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of July 31, 2018. Comprehensive Income The Company has which established standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders' Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income. Recent Accounting Pronouncements Lepota Inc. 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. The results for the three months ended July 31, 2018 are not necessarily indicative of the results of operations for the full year. These financial statements and related footnotes should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10K for the year ended July 31, 2017, filed with the Securities and Exchange Commission. |
- GOING CONCERN
- GOING CONCERN | 12 Months Ended |
Jul. 31, 2018 | |
- GOING CONCERN [Abstract] | |
- GOING CONCERN | NOTE 3 - GOING CONCERN The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the Company include (1) obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses, and (2) seeking out and completing mergers with existing operating companies. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
- DIRECTOR'S LOAN
- DIRECTOR'S LOAN | 12 Months Ended |
Jul. 31, 2018 | |
- DIRECTOR'S LOAN [Abstract] | |
- DIRECTOR'S LOAN | NOTE 4 - DIRECTOR'S LOAN In support of the Company's efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note. As of July 31, 2018, the Company had a loan outstanding with the Company's sole director in the amount of $ 5,475. The loan is non-interest bearing, due upon demand and unsecured. |
- RELATED PARTY TRANSACTIONS
- RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 2018 | |
- RELATED PARTY TRANSACTIONS [Abstract] | |
- RELATED PARTY TRANSACTIONS | NOTE 5 - RELATED PARTY TRANSACTIONS As of July 31, 2018 Company had loan outstanding with related parties in amount of $ 4,210. |
- COMMON STOCK
- COMMON STOCK | 12 Months Ended |
Jul. 31, 2018 | |
- COMMON STOCK [Abstract] | |
- COMMON STOCK | NOTE 6 - COMMON STOCK The Company has 75,000,000, $0.001 par value shares of common stock authorized. The Company issued 5,000,000 common shares at par value of $0.001 t o Rene Lawrence , for a total price of $5,000. As of July 31, 2017 there were 240,000 shares of common stock issued at $0.01 per share for a total price of $2,400. The company issued 50,000 additional shares at $0.01 to a shareholder Vesna Pujic as per Stock Subscription Receivable on July 15, 2016. During the quarter ended January 31, 2017, the company issued 680,000 common shares at $0.01 for a total price of $6,800. In July 2018, the Company issued 120,000 common shares at $0.01 per share for a total price of $1,200. As of July 31, 2018, there were total of 6,090,000 shares of common stock issued and outstanding. |
- COMMITMENTS AND CONTINGENCIES
- COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jul. 31, 2018 | |
- COMMITMENTS AND CONTINGENCIES [Abstract] | |
- COMMITMENTS AND CONTINGENCIES | NOTE 7 - COMMITMENTS AND CONTINGENCIES The Company neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future. The Company was not subject to any legal proceedings during the period from December 9, 2013 to July 31, 2018 and no proceedings are threatened or pending to the best of our knowledge and belief. |
- INCOME TAXES
- INCOME TAXES | 12 Months Ended |
Jul. 31, 2018 | |
- INCOME TAXES [Abstract] | |
- INCOME TAXES | NOTE 8 - INCOME TAXES As of July 31, 2018, the Company had net operating loss carry forwards of approximately $16,604 that may be available to reduce future years' taxable income in varying amounts through 2032. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. The provision for Federal income tax consists of the following: July 31, 2018 July 31, 2017 Federal income tax benefit attributable to: Current Operations $ 2,121 $ 502 Less: valuation allowance (2,121) (502) Net provision for Federal income taxes $ 0 $ 0 The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows: July 31, 2018 July 31, 2017 Deferred tax asset attributable to: Net operating loss carryover $ 5,608 $ 5,645 Less: valuation allowance (5,608) (5,645) Net deferred tax asset $ 0 $ 0 Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $ 26,706 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years. |
- COMMITMENTS AND CONTINGENCI_2
- COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jul. 31, 2018 | |
- COMMITMENTS AND CONTINGENCIES [Abstract] | |
- COMMITMENTS AND CONTINGENCIES | NOTE 9 - COMMITMENTS AND CONTINGENCIES The Company neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future. |
- SUBSEQUENT EVENTS
- SUBSEQUENT EVENTS | 12 Months Ended |
Jul. 31, 2018 | |
- SUBSEQUENT EVENTS [Abstract] | |
- SUBSEQUENT EVENTS | NOTE 10 - SUBSEQUENT EVENTS In accordance with ASC 855-10 we have analyzed our operations subsequent to October 25, 2018 to the date that the financial statements were issued and have determined that we do not have any material subsequent events to disclose. In August 2018 the Company issued 540,000 common shares at $0.01 for a total price of $5,400. Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure None. Item 9A(T). Controls and Procedures Management's Report on Disclosure Controls and Procedures Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)). The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of the Company's internal control over financial reporting as of July 31, 2018 using the criteria established in “ Internal Control - Integrated Framework ” issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. In its assessment of the effectiveness of internal control over financial reporting as of July 31, 2018, the Company determined that there were control deficiencies that constituted material weaknesses, as described below. We do not have an Audit Committee - While not being legally obligated to have an audit committee, it is the management's view that such a committee, including a financial expert member, is an utmost important entity level control over the Company's financial statement. Currently the Board of Directors acts in the capacity of the Audit Committee, and does not include a member that is considered to be independent of management to provide the necessary oversight over management's activities. We did not maintain appropriate cash controls - As of July 31, 2018, the Company has not maintained sufficient internal controls over financial reporting for the cash process, including failure to segregate cash handling and accounting functions, and did not require dual signature on the Company's bank accounts. Alternatively, the effects of poor cash controls were mitigated by the fact that the Company had limited transactions in their bank accounts. We did not implement appropriate information technology controls - As at July 31, 2018, the Company retains copies of all financial data and material agreements; however there is no formal procedure or evidence of normal backup of the Company's data or off-site storage of data in the event of theft, misplacement, or loss due to unmitigated factors. Accordingly, the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by the company's internal controls. As a result of the material weaknesses described above, management has concluded that the Company did not maintain effective internal control over financial reporting as of July 31, 2018 based on criteria established in Internal Control-Integrated Framework issued by COSO. Changes in Internal Control over Financial Reporting There has been no change in our internal control over financial reporting identified in connection with our evaluation we conducted of the effectiveness of our internal control over financial reporting as of July 31, 2018, that occurred during our fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. This annual report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only management's report in this annual report. PART III Item 10. Directors, Executive Officers, Promoters and Control Persons of the Company DIRECTORS AND EXECUTIVE OFFICERS The name, address and position of our present officers and directors are set forth below: Name and Address Age Position(s) Iurii Iurtaev 40 President, Lelushenko 11, Unit 65 Chief Financial Officer, Rostov-on-Don Chief Executive Officer, Russian Federation 344000 Sole Director Rene Lawrence 37 Secretary 80 Whitmore Gardens London NW105HJ England, United Kingdom Our Director Iurii Iurtaev: Held his offices/positions since the inception of our Company and is expected to hold said offices/positions until the next annual meeting of our stockholders. The officers listed are our only officers and control persons. BACKGROUND INFORMATION ABOUT OUR OFFICER AND DIRECTOR Iurii Iurtaev Education: Higher, Don State Technical University 1993-1999 Faculty - Automation and informatics Specialty - programmer Work ( listed in inverse chronology): 1. 2012 up to now “YuDiCom” Ltd. Capacity: Director in sales 1. Identification of needs of drogerie format networks. 2. Finding of products meeting the specified conditions at foreign market. (Search of company producing necessary products is carried out by means of visit to exhibitions and by internet) 3. Focus group realization. Determination of price model of selected products. 4. conducting of negotiations with producing company. Determination of the product positioning at Russian market and its price model. 5. Signing of contract at agreement of the price model and marketing from the both parties. 6. Coordination of the first supply (name, stickering, certificates, custom clearance, delivery). Control over the next supplies. 7. Position in Russia network. Control over brand manager work on the territory. 2. 2007-2012 “YuDiCom” LTD. Capacity: Brand director in product promotion of “Kalina” and “Kalina Décor” concern. Numerous contracts were negotiated during the 2010-2012 time frame. Obligations: 1. Interaction with supplier representative. 2. Control of work of trade representatives. 3. TT monitoring. 4. Planning of annual budget. 5. Development of new territories. 6. Debit indebtedness. 7. TT training 3. 2004-2007 “Crocus” Ltd. Capacity: Trade representative of “YuDiCom” Ltd, “Kalina” division Obligations: Promotion of “Kalina” concern products on the basis of “YuDiCom” Ltd. Distributor · Work at trade sites of retail and wholesale categories, control and making orders with customers, achievement of high-quality distribution, money collection, planning of working week schedule, making of plan of visiting, monitoring of territory, search of new customers. · Since 2995 work with all key networks dedicated for “YuDiCom” Ltd. Entering alterations into specifications, conducting of negotiations with networks on matrix expansion, making of orders with goods managers and heads, goods layout, control of merchandiser, conducting of reconciliation acts, control over debit indebtedness. · Since 2007 Deputy brand director of marketing department on promotion of “Kalina” concern products. Additional obligations: - Maintenance of internal accounts. - Control and analysis of distribution level in TT. - Customer base administration. 4. 2003-2004 “Advertising Space” Ltd. Capacity: Advertising manager of “Advertising Space” Ltd. Obligations: Finding of customers, development of advertising actions, solution of set tasks. 5. 2001-2003 “Metro” Ltd. Capacity: Administrator of shops “Headgear” in “Metro” TC and “21 Century” Obligations: Selection of shop assistants, purchase of equipment, selection of goods group, document execution, conducting of accounting, goods acceptance, payment to suppliers for sale. 6. 1998-2005 “Funky Bit” Ltd. Capacity: Promoter (organization and control over performing artists) Obligations: Organization of corporate parties, promotion actions, exhibitions, festivals, conducting of negotiations with customer, accompanying of promoting artists at shows, participation in show programs. I took part in organization of events of major Russian and international companies, in election campaigns of deputies and governors. AUDIT COMMITTEE We do not have an audit committee financial expert. We do not have an audit committee financial expert because we believe the cost related to retaining a financial expert at this time is prohibitive. Further, because we have no operations, at the present time, we believe the services of a financial expert are not warranted. SIGNIFICANT EMPLOYEES We have no employees other than our Treasurer and a sole director, Iurii Iurtaev ; he currently devotes approximately twenty hours per week to company matters. We intend to hire employees on an as needed basis. Item 11. Executive Compensation The following tables set forth certain information about compensation paid, earned or accrued for services by our President, and Secretary and all other executive officers (collectively, the “Named Executive Officers”) from inception on December 9, 2013 until July 31, 2018. SUMMARY COMPENSATION TABLE Name and Principal Position Year Salary (US$) Bonus (US$) Stock Awards (US$) Option Awards (US$) Non-Equity Incentive Plan Compensation (US$) Nonqualified Deferred Compensation Earnings (US$) All Other Compensation (US$) Total (US$) Iurii Iurtaev 2016 0 0 0 0 0 0 0 0 President, Treasurer, CEO, CFO 2017 0 0 0 0 0 0 0 0 Rene Lawrence 2016 0 0 0 0 0 0 0 0 Director, Secretary 2017 0 0 0 0 0 0 0 0 There are no current employment agreements between the company and its sole officer. The compensation discussed herein addresses all compensation awarded to, earned by, or paid to our named executive officer. There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our officers and directors other than as described herein. CHANGE OF CONTROL As of July 31, 2018, we had no pension plans or compensatory plans or other arrangements that provide compensation in the event of a termination of employment or a change in our control. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The following table provides certain information regarding the ownership of our common stock, as of July 31, 2018 and as of the date of the filing of this annual report by: • each of our executive officers; • each director; • each person known to us to own more than 5% of our outstanding common stock; and • all of our executive officers and directors and as a group. Title of Class Name and Address of Beneficial Owner Amount and Nature of Beneficial Ownership Percentage Common Stock Rene Lawrence 80 Whitmore Gardens London NW 105HJ England, United Kingdom 5,000,000 shares of common stock 82% The percent of class is based on 6,090,000 shares of common stock issued and outstanding as of the date of this annual report. Item 13. Certain Relationships and Related Transactions During the year ended July 31, 2018, we had not entered into any transactions with our sole officer or director, or persons nominated for these positions, beneficial owners of 5% or more of our common stock, or family members of these persons wherein the amount involved in the transaction or a series of similar transactions exceeded the lesser of $120,000 or 1% of the average of our total assets for the last three fiscal years. Item 14. Principal Accountant Fees and Services During fiscal year ended July 31, 2018, we incurred approximately $5,000 in fees to our principal independent accountants for professional services rendered in connection with the audit of our financial statements and for the reviews of our financial statements for the quarters ended January 31, 2017, April 30, 2017, and October 31, 2016. Item 15. Exhibits The following exhibits are filed as part of this Annual Report. Exhibits: 31.1 Certification of Chief Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act 32.1 Certification of Chief Executive Officer and Chief Financial Officer Under Section 1350 as Adopted Pursuant Section 906 of the Sarbanes-Oxley Act SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. LEPOTA INC. Dated: November , 2018 By: /s/ Iurii Iurtaev Iurii Iurtaev, President and Chief Executive Officer and Chief Financial Officer |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2018 | |
Significant Accounting Policies (Policies) [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-10, “Development Stage Entities”. The amendments in this update remove the definition of a development stage entity from the Master Glossary of the ASC thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments in this update are applied retrospectively. The adoption of ASU 2014-10 removed the development stage entity financial reporting requirements for the Company. Basis of Presentation The Company's financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. The Company has elected a July 31 fiscal year end. Fair Value of Financial Instruments In accordance with ASC 820, the Company's financial instruments consist of cash and cash equivalents and amounts due to related parties. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Income Taxes The Company accounts for income taxes under the asset/liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The charge for taxation is based on the results for the year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. In July 31, 2018, the FASB issued ASC 740, “Accounting for Uncertainty in Income Taxes” , which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. ASC 740 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties. Under this pronouncement, the Company recognizes the financial statement benefit of a tax position only after determining that a position would more likely than not be sustained based upon its technical merit if challenged by the relevant taxing authority and taken by management to the court of the last resort. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority. ASC 740 became effective for the Company as of October 1, 2008 and had no material impact on the Company's financial statements. The Company's policy is to recognize both interest and penalties related to unrecognized tax benefits in income tax expense. Interest and penalties on unrecognized tax benefits expected to result in payment of cash within one year are classified as accrued liabilities, while those expected beyond one year are classified as other liabilities. The Company has not recorded any interest and penalties since its inception. 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. Basic Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Company's net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company's net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of July 31, 2018. Comprehensive Income The Company has which established standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders' Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income. Recent Accounting Pronouncements Lepota Inc. 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. The results for the three months ended July 31, 2018 are not necessarily indicative of the results of operations for the full year. These financial statements and related footnotes should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10K for the year ended July 31, 2017, filed with the Securities and Exchange Commission. |
- INCOME TAXES (Tables)
- INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
- INCOME TAXES (Tables) [Abstract] | |
Federal income tax benefit attributable | The provision for Federal income tax consists of the following: July 31, 2018 July 31, 2017 Federal income tax benefit attributable to: Current Operations $ 2,121 $ 502 Less: valuation allowance (2,121) (502) Net provision for Federal income taxes $ 0 $ 0 |
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount | The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows: July 31, 2018 July 31, 2017 Deferred tax asset attributable to: Net operating loss carryover $ 5,608 $ 5,645 Less: valuation allowance (5,608) (5,645) Net deferred tax asset $ 0 $ 0 |
- SUBSEQUENT EVENTS (Tables)
- SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
- SUBSEQUENT EVENTS (Tables) [Abstract] | |
The name, address and position of our present officers and directors | The name, address and position of our present officers and directors are set forth below: Name and Address Age Position(s) Iurii Iurtaev 40 President, Lelushenko 11, Unit 65 Chief Financial Officer, Rostov-on-Don Chief Executive Officer, Russian Federation 344000 Sole Director Rene Lawrence 37 Secretary 80 Whitmore Gardens London NW105HJ England, United Kingdom |
SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE Name and Principal Position Year Salary (US$) Bonus (US$) Stock Awards (US$) Option Awards (US$) Non-Equity Incentive Plan Compensation (US$) Nonqualified Deferred Compensation Earnings (US$) All Other Compensation (US$) Total (US$) Iurii Iurtaev 2016 0 0 0 0 0 0 0 0 President, Treasurer, CEO, CFO 2017 0 0 0 0 0 0 0 0 Rene Lawrence 2016 0 0 0 0 0 0 0 0 Director, Secretary 2017 0 0 0 0 0 0 0 0 |
The following table provides certain information regarding the ownership of our common stock, as of July 31, 2018 | The following table provides certain information regarding the ownership of our common stock, as of July 31, 2018 and as of the date of the filing of this annual report by: • each of our executive officers; • each director; • each person known to us to own more than 5% of our outstanding common stock; and • all of our executive officers and directors and as a group. |
Common Stock of our executive officers and directors | Title of Class Name and Address of Beneficial Owner Amount and Nature of Beneficial Ownership Percentage Common Stock Rene Lawrence 80 Whitmore Gardens London NW 105HJ England, United Kingdom 5,000,000 shares of common stock 82% |
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed | In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. LEPOTA INC. Dated: November , 2018 By: /s/ Iurii Iurtaev Iurii Iurtaev, President and Chief Executive Officer and Chief Financial Officer |
- SUMMARY OF SIGNIFCANT ACCOU_2
- SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Details Text) | Jul. 31, 2018USD ($) |
Summary_ Of Signifcant Accounting Policies [Abstract] | |
For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority | $ 50 |
Interest and penalties on unrecognized tax benefits expected to result in payment of cash within one year are classified as accrued liabilities, while those expected beyond one year are classified as other liabilities | $ 1 |
- DIRECTOR'S LOAN (Details Text
- DIRECTOR'S LOAN (Details Text) | Jul. 31, 2018USD ($) |
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | |
As of July 31, 2018, the Company had a loan outstanding with the Company's sole director in the amount of $ 5,475 | $ 5,475 |
- RELATED PARTY TRANSACTIONS (D
- RELATED PARTY TRANSACTIONS (Details Text) | Jul. 31, 2018USD ($) |
Related Party Transaction, Due from (to) Related Party, Current [Abstract] | |
As of July 31, 2018 Company had loan outstanding with related parties in amount of $ 4,210. | $ 4,210 |
- COMMON STOCK (Details Text)
- COMMON STOCK (Details Text) - USD ($) | Jul. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2017 | Jul. 15, 2016 |
- COMMON STOCK [Abstract] | ||||
The Company issued 5,000,000 common shares at par value of $0.001 to Rene Lawrence, for a total price of $5,000. | $ 5,000,000 | |||
As of July 31, 2017 there were 240,000 shares of common stock issued at $0.01 per share for a total price of $2,400. | $ 240,000 | |||
The company issued 50,000 additional shares at $0.01 to a shareholder Vesna Pujic as per Stock Subscription Receivable on July 15, 2016. | $ 50,000 | |||
During the quarter ended January 31, 2017, the company issued 680,000 common shares at $0.01 for a total price of $6,800. | $ 680,000 | |||
In July 2018, the Company issued 120,000 common shares at $0.01 per share for a total price of $1,200. | 120,000 | |||
As of July 31, 2018, there were total of 6,090,000 shares of common stock issued and outstanding. | $ 6,090,000 |
- INCOME TAXES (Details 1)
- INCOME TAXES (Details 1) - USD ($) | Jul. 31, 2018 | Jul. 31, 2017 |
Income Taxes_ Abstract_ [Abstract] | ||
Current Operations | $ 2,121 | $ 502 |
Less: valuation allowance | (2,121) | (502) |
Net provision for Federal income taxes | $ 0 | $ 0 |
- INCOME TAXES (Details 2)
- INCOME TAXES (Details 2) - USD ($) | Jul. 31, 2018 | Jul. 31, 2017 |
Income Taxes 2018 _ [Abstract] | ||
Net operating loss carryover | $ 5,608 | $ 5,645 |
Less: valuation allowance | (5,608) | (5,645) |
Net deferred tax asset | $ 0 | $ 0 |
- INCOME TAXES (Details Text)
- INCOME TAXES (Details Text) | Jul. 31, 2018USD ($) |
Income_ Taxes_ [Abstract] | |
As of July 31, 2018, the Company had net operating loss carry forwards of approximately $16,604 that may be available to reduce future years' taxable income in varying amounts through 2032 | $ 16,604 |
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows: | 34 |
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $26,706 for Federal income tax reporting purposes are subject to annual limitations | $ 26,706 |
- SUBSEQUENT EVENTS (Details Te
- SUBSEQUENT EVENTS (Details Text) - USD ($) | Aug. 31, 2018 | Jul. 31, 2018 |
Subsequent Events 2018 _ [Abstract] | ||
In August 2018 the Company issued 540,000 common shares at $0.01 for a total price of $5,400. | $ 5,400 | |
During the year ended July 31, 2018, we had not entered into any transactions with our sole officer or director, or persons nominated for these positions, beneficial owners of 5% or more of our common stock, or family members of these persons wherein the amount involved in the transaction or a series of similar transactions exceeded the lesser of $120,000 or 1% of the average of our total assets for the last three fiscal years. | $ 120,000 | |
During fiscal year ended July 31, 2018, we incurred approximately $5,000 in fees to our principal independent accountants for professional services rendered in connection with the audit of our financial statements and for the reviews of our financial statements for the quarters ended January 31, 2017, April 30, 2017, and October 31, 2016. | $ 5,000 |
Uncategorized Items - none-2018
Label | Element | Value |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | $ (5,349) |
Shares Issued_ For Cash At Per Share On July 2014 | none_SharesIssued_ForCashAtPerShareOnJuly2014 | 5,000 |
Retained Earnings [Member] | ||
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | (5,349) |
Common Stock [Member] | ||
Shares Issued_ For Cash At Per Share On July 2014 | none_SharesIssued_ForCashAtPerShareOnJuly2014 | 5,000,000 |
Common Stock Amount [Member] | ||
Shares Issued_ For Cash At Per Share On July 2014 | none_SharesIssued_ForCashAtPerShareOnJuly2014 | $ 5,000 |