| Note 1 - NATURE OF BUSINESS, PRESENTATION AND GOING CONCERN | Organization DOCASA, Inc. (the Company, we,
us, our, or DOCASA) was incorporated in the State of Nevada on July 22, 2014, under the
name of FWF Holdings, Inc. The Company changed its name on August 4, 2016. The Company was originally engaged in the business of
commercial production and distribution of hot sauce. On August 4, 2016, the Company changed its year end from July 31 to August
31. On July 8, 2016, the Company experienced a
change in control. Atlantik LP (Atlantik), a related party, acquired a majority of the issued and outstanding common
stock of the Company in accordance with stock purchase agreements by and between Atlantik and Nami Shams (Seller).
On the closing date, July 8, 2016, pursuant to the terms of the Stock Purchase Agreement, Atlantik purchased from the Seller 115,000,000
shares of the Companys outstanding restricted common stock for $200,000, representing 75.8% of the total issued and outstanding
at that time. See Notes 2, 5, 6 and 10. On September 1, 2016, the Company acquired
Department of Coffee and Social Affairs Limited (DEPT-UK), a United Kingdom corporation. DEPT-UK was incorporated
on August 12, 2009. The acquisition of 99.8% of DEPT-UK from Stefan Allesch-Taylor (Allesch-Taylor) was through a
stock exchange whereas the Company is obligated to issue Allesch-Taylor 170,000,000 shares of restricted common stock. The acquisition
required 110,000,000 shares of DOCASA to be issued to Allesch-Taylor and, at a date to be determined by the Board of Directors,
but no later than August 31, 2017, the remaining 60,000,000 shares are to be issued to Allesch-Taylor. See Notes 3, 9 and 13. On September 1, 2016, the Company acquired
115,000,000 shares of the Companys common stock from Atlantik in exchange for a promissory note for $320,000 (the Stock
Acquisition). As a result of the Stock Acquisition and the subsequent issuance to Allesch-Taylor, Allesch-Taylor, the Chairman
of the Company, became the holder of the majority of the issued and outstanding stock of the Company whereas his ownership controls
74.9% of the outstanding common stock of the Company. See Notes 9 and 10. For financial reporting purposes, the Share
Exchange represents a "reverse merger" rather than a business combination and Private Company is deemed to be the accounting
acquirer in the transaction. The Share Exchange is being accounted for as a reverse-merger and recapitalization. Private Company
is the acquirer for financial reporting purposes and the Public Company (DOCASA, Inc., f/k/a FWF Holdings, Inc.) is the acquired
company. Consequently, the assets and liabilities and the operations that will be reflected in the historical financial statements
prior to the Share Exchange will be those of the Private Company and will be recorded at the historical cost basis of the Private
Company, and the financial statements after completion of the Share Exchange will include the assets and liabilities of the Public
Company and the Private Company, and the historical operations of Private Company and operations of both companies from the closing
date of the Share Exchange. Nature of Operations We are currently devoting all of our efforts
in migrating to the specialty coffee industry, specifically with company-operated stores. The Company will generate revenue through
sales at ten existing and five currently under construction, company-operated stores in the United Kingdom. Our objective is to
continue to be recognized as one of the upper tier specialty coffee retail operations. Similar to leading operators, we sell our
proprietary coffee and related products, and complementary food and snacks. Basis of Presentation The accompanying unaudited condensed financial
statements of DOCASA, Inc. before the merger have been prepared in accordance with generally accepted accounting principles for
interim financial information and the instructions to Form 10-Q and done under §240.13(a) of the Securities Act. The results
of operations for the interim period ended August 31, 2016 shown in this report are not necessarily indicative of results to be
expected for the full fiscal year ending August 31, 2017. In the opinion of the Companys management, the information contained
herein reflects all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Companys
results of operations, financial position and cash flows. The unaudited interim financial statements should be read in conjunction
with the audited financial statements in the Companys Form 10-K for the year ended July 31, 2016, filed on October 4, 2016
and Managements Discussion and Analysis of Financial Condition and Results of Operations. Use of Estimates The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of America 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. Actual results
could differ from those estimates. Significant estimates in the accompanying financial statements include the amortization period
for intangible assets, valuation and impairment valuation of intangible assets, allowance for accounts receivable, depreciable
lives of the web site, valuation of warrants and beneficial conversion feature debt discounts, valuation of derivatives, and valuation
of share-based payments. Cash and Cash Equivalents The Company considers all highly liquid investments
with an original maturity of three months or less when purchased to be cash equivalents. Property, Equipment and Depreciation Property and equipment is recorded at cost.
Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets of three years
for computer equipment, five years for office furniture and fixtures, and the lesser of the lease term or the useful life of the
leased equipment. Leasehold improvements, if any, would be amortized over the lesser of the lease term or the useful life of the
improvements. Expenditures for maintenance and repairs along with fixed assets below our capitalization threshold are expensed
as incurred. Accounting for Derivatives The Company evaluates its convertible debt,
options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives
to be separately accounted for. The result of this accounting treatment is that under certain circumstances the fair value of the
derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded
as a liability, the change in fair value is recorded in the statement of operations as other income or expense. Upon conversion
or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value
is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under
this accounting standard are reclassified to liability at the fair value of the instrument on the reclassification date. Impairment of Long-Lived Assets The Company accounts for long-lived assets
in accordance with the provisions of Statement of Financial Accounting Standards ASC 360-10, Accounting for the Impairment
or Disposal of Long-Lived Assets. This statement requires that long-lived assets and certain identifiable intangibles be
reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted
net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized
is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed
of are reported at the lower of the carrying amount or fair value less costs to sell. Fair Value of Financial Instruments The Company measures its financial assets and
liabilities in accordance with generally accepted accounting principles. For certain of our financial instruments, including cash,
accounts payable, accrued expenses, deposits received from customers for layaway sales and short term loans the carrying amounts
approximate fair value due to their short maturities. We follow accounting guidance for financial
and non-financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires
certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting
pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based
payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach
(present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement
cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value
into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted
prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices
that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets
and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs in which
little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that
a market participant would use. Revenue Recognition The Company recognizes revenue for our services
in accordance with ASC 605-10, "Revenue Recognition in Financial Statements." Under these guidelines, revenue is recognized
on transactions when all of the following exist: persuasive evidence of an arrangement did exist, delivery of service has occurred,
the sales price to the buyer is fixed or determinable and collectability is reasonably assured. The Company has one primary revenue
streams as follows:
· Sales of specialty coffee and complementary food products. Stock-Based Compensation The Company accounts for stock-based instruments
issued to employees in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations
the grant-date fair value of stock options and other equity based compensation issued to employees. The value of the portion of
an award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line
attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition
provisions ASC Topic 505-50. The Company estimates the fair value of stock options at the grant date by using the Black-Scholes
option-pricing model. Income Taxes The Company adopted the provisions of ASC 740-10,
Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions
taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of
the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10,
the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence,
management believes it is more likely than not that the position will be sustained upon examination, including the resolution of
appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that
meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent
likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax
positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax benefits
in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities
upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the
Company has not recorded a liability for unrecognized tax benefits. As of July 31, 2016, tax year 2014 remain open for IRS audit.
The Company has received no notice of audit from the IRS for any of the open tax years. The Company adopted ASC 740-10, Net Earnings (Loss) Per Share In accordance with ASC 260-10, Earnings
Per Share, basic net earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by
the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed using
the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. Segment Information In accordance with the provisions of ASC 280-10,
Disclosures about Segments of an Enterprise and Related Information, the Company is required to report financial
and descriptive information about its reportable operating segments. The Company does not have any operating segments as of August
31, 2016 and 2015. Effect of Recent Accounting Pronouncements The Company reviews new accounting standards
and updates as issued. No new standards or updates had any material effect on these unaudited financial statements. The accounting
pronouncements and updates issued subsequent to the date of these audited financial statements that were considered significant
by management were evaluated for the potential effect on these audited financial statements. Management does not believe any of
the subsequent pronouncements will have a material effect on these audited financial statements as presented and does not anticipate
the need for any future restatement of these audited financial statements because of the retro-active application of any accounting
pronouncements issued subsequent to July 31, 2016 through the date these audited financial statements were issued. |
