Document and Entity Information
Document and Entity Information | 3 Months Ended |
Nov. 30, 2015shares | |
Document And Entity Information | |
Entity Registrant Name | Emerald Data Inc |
Entity Central Index Key | 1,622,231 |
Document Type | 10-Q |
Document Period End Date | Nov. 30, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --08-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 4,000,000 |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2,015 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) | Nov. 30, 2015 | Aug. 31, 2015 |
CURRENT ASSETS | ||
Cash | $ 1,003 | $ 4,795 |
FIXED ASSETS | ||
Buildings and Land | 14,000 | 14,000 |
Accumulated Depreciation | (1,180) | (947) |
TOTAL ASSETS | 13,823 | 17,848 |
Current Liabilities: | ||
Accrued salary | 53,333 | 43,333 |
Related party loan | $ 670 | $ 670 |
Income tax payable | ||
Total Liabilities | $ 54,003 | $ 44,003 |
STOCKHOLDERS' EQUITY | ||
Common stock: authorized 75,000,000; $0.001 par value; 4,000,000 shares issued and outstanding at Nov 30, 2015 and Aug 31, 2015 | 4,000 | 4,000 |
Income (Deficit) accumulated during the development stage | (44,180) | (30,155) |
Total Stockholders' Equity | (40,180) | (26,155) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 13,823 | $ 17,848 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Nov. 30, 2015 | Aug. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 75,000,000 | 75,000,000 |
Common stock, issued | 4,000,000 | 4,000,000 |
Common stock, outstanding | 4,000,000 | 4,000,000 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 16 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2015 | |
Income | |||
Revenue | $ 30,035 | $ 30,861 | $ 193,216 |
Cost of Goods Sold: | |||
Furniture Purchases | 29,513 | 15,626 | 160,639 |
Gross Profit | 522 | 15,235 | 32,577 |
Operating Expenses: | |||
General and administrative | 4,547 | 4,368 | 23,423 |
Payroll | 10,000 | 10,000 | 53,333 |
Total Expenses | 14,547 | 14,368 | 76,756 |
Net income before income tax provision | $ (14,025) | 867 | $ (44,180) |
Provision for income tax | 429 | ||
Net gain (loss) for the period | $ (14,025) | $ 438 | $ (44,180) |
Net earnings (loss) per share: | |||
Basic and diluted | $ (0.0035) | $ 0.0001 | $ (0.0110) |
Weighted average number of shares outstanding: Basic and diluted | 4,000,000 | 4,000,000 | 4,000,000 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | 16 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Aug. 31, 2015 | Aug. 31, 2014 | Nov. 30, 2015 | |
Operating activities: | |||||
Net gain (loss) | $ (14,025) | $ 438 | $ (37,037) | $ 0 | $ (44,180) |
Changes in assets and liabilities: | |||||
Accrued salary | $ 10,000 | $ 10,000 | 53,333 | ||
Related party loan | $ 670 | ||||
Income tax payable | $ 429 | ||||
Building and Land | $ (14,000) | ||||
Accumulated Depreciation | $ 233 | $ 233 | 13 | 933 | 1,180 |
Net cash provided by operating activities | $ (3,792) | $ 11,100 | (2,997) | ||
Financing activities: | |||||
Proceeds from issuance of common stock | 4,000 | ||||
Net cash provided by financing activities | 4,000 | ||||
Net increase in cash | $ (3,792) | $ 11,100 | $ 1,003 | ||
Cash, beginning of period | 4,795 | 228 | 228 | ||
Cash, end of period | $ 1,003 | $ 11,328 | $ 4,795 | $ 228 | $ 1,003 |
Supplemental disclosure of cash flow information: | |||||
Cash paid during the period Taxes | |||||
Cash paid during the period Interest |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 1 - Organization and Basis of Presentation | Emerald Data Inc. (the "Company") is a for profit corporation established under the corporate laws of the State of Nevada on August 15, 2014. The Company is in the development phase and intends to be in the business of distributing Outdoor, Wicker, Patio and Garden Rattan Furniture. As such, the Company is subject to all risks inherent to the establishment of a start-up business enterprise. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 2 - Significant Accounting Policies and Recent Accounting Pronouncements | Interim Financial Statements The accompanying unaudited financial statements have been prepared in accordance with the instructions from Regulation S-X and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim period(s), and to make the financial statements not misleading, have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim period(s) are not necessarily indicative of operations for a full year. Use of Estimates and Assumptions 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 period. Actual results could differ from those estimates. Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern. 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. Fair Value of Financial Instruments ASC 825, "Disclosures about Fair Value of Financial Instruments", requires disclosure of fair value information about financial instruments. ASC 820, "Fair Value Measurements" defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of November 30, 2015. The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accrued liabilities and notes payable. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value. Basic and Diluted Loss Per Share The Company computes earnings (loss) per share in accordance with ASC 260-10-45 "Earnings per Share", which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted earnings (loss) per share are equal. Revenue Recognition The Company follows the guidelines of ASC 605-15 for revenue recognition. Revenue is recognized when the product has been prepaid by the customer, shipped from either our office or one of our vendors and the product has been delivered to, or picked up by, the customer. Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. 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 results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. Recent Accounting Pronouncements 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. |
Concentrations
Concentrations | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 3 - Concentrations | Initial sales are concentrated with one client. Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts. |
Legal Matters
Legal Matters | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 4 - Legal Matters | The Company has no known legal issues pending. |
Capital Stock
Capital Stock | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 5 - Capital Stock | On August 15, 2015 the Company authorized 75,000,000 shares of common stock with a par value of $0.001 per share. On August 25, 2014 the Company issued 4,000,000 shares of common stock for a purchase price of $0.001 per share to its sole director. The Company received proceeds of $4,000.00 from the sale of the common stock. As of November 30, 2015 there were no outstanding stock options or warrants. |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 6 - Income Taxes | The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. 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 results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. The Company showed an income tax expense of $2,700 for the year ended August 31, 2014, there was no income tax expense for the year ended August 31, 2015. The rate was as follows: Federal 34 % State 5 % 39 % The significant components of deferred tax assets and liabilities are as follows: Three months Ending 11/30/2015 Year Ending 8/31/2015 Year Ending 8/31/2014 From Inception (Aug 15, 2014) to (Nov 30, 2015) Deferred tax assets Net operating losses $ (14,025 ) $ (37,037 ) 0 $ (44,180 ) Deferred tax liability - Net deferred tax assets $ 4,769 * $ 12,593 0 $ 15,021 Less valuation allowance $ (4,769 ) $ (12,593 ) 0 $ (15,021 ) Deferred tax asset - net valuation allowance $ - |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 7 - Related Party Transactions | The director of the Company provides office space and services free of charge. The Company's sole officer and director is involved in other business activities and may in the future, become involved in other business opportunities as they become available. |
Fixed Assets
Fixed Assets | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 8 - Fixed Assets | Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any subsidy/reimbursement/contribution received for installation and acquisition of any fixed assets is shown as deduction in the year of receipt. Capital work- in progress is stated at cost. Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repairs and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred. Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets derecognized. We purchased our principal executive offices at Atbrivosanas Aleja 5, Rezekne, Latvia, on August 26, 2014 for $14,000. For the three months ended November 30, 2015 the company recorded $233 in depreciation expense. For the year ended August 31, 2015 the company recorded $933 in depreciation expense. For the year ended August 31, 2014 the company recorded $13 in depreciation expense. |
Going Concern
Going Concern | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 9 - Going Concern | The accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern. The Company had limited operations during the period from August 15, 2014 (date of inception) to November 30, 2015 with a net loss of $44,180. There is no guarantee that the Company will continue to generate revenues. This condition raises substantial doubt about the Company's ability to continue as a going concern. The Company is currently in the development stage. Management believes that the Company's current cash of $1,003, the proceeds from the proposed offering pursuant to the Registration Statement on Form S-1 and anticipated revenues will be sufficient to cover the expenses they will incur during the next twelve months. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Nov. 30, 2015 | |
Notes to Financial Statements | |
Note 10 - Subsequent Events | The Company has evaluated events subsequent through the date these financial statements have been issued to assess the need for potential recognition or disclosure in this report. Such events were evaluated through the date these financial statements were available to be issued. Based upon this evaluation, it was determined that no subsequent events occurred that require recognition or disclosure in the financial statements. |
Significant Accounting Polici16
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Nov. 30, 2015 | |
Significant Accounting Policies And Recent Accounting Pronouncements Policies | |
Interim Financial Statements | The accompanying unaudited financial statements have been prepared in accordance with the instructions from Regulation S-X and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim period(s), and to make the financial statements not misleading, have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim period(s) are not necessarily indicative of operations for a full year. |
Use of Estimates and Assumptions | 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 period. Actual results could differ from those estimates. Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern. |
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. |
Fair Value of Financial Instruments | ASC 825, "Disclosures about Fair Value of Financial Instruments", requires disclosure of fair value information about financial instruments. ASC 820, "Fair Value Measurements" defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of November 30, 2015. The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accrued liabilities and notes payable. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value. |
Basic and Diluted Loss Per Share | The Company computes earnings (loss) per share in accordance with ASC 260-10-45 "Earnings per Share", which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted earnings (loss) per share are equal. |
Revenue Recognition | The Company follows the guidelines of ASC 605-15 for revenue recognition. Revenue is recognized when the product has been prepaid by the customer, shipped from either our office or one of our vendors and the product has been delivered to, or picked up by, the customer. |
Income Taxes | We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. 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 results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. |
Recent Accounting Pronouncements | 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Nov. 30, 2015 | |
Income Taxes Tables | |
Income tax expense | Federal 34 % State 5 % 39 % |
Deferred tax assets and liabilities | Three months Ending 11/30/2015 Year Ending 8/31/2015 Year Ending 8/31/2014 From Inception (Aug 15, 2014) to (Nov 30, 2015) Deferred tax assets Net operating losses $ (14,025 ) $ (37,037 ) 0 $ (44,180 ) Deferred tax liability - Net deferred tax assets $ 4,769 * $ 12,593 0 $ 15,021 Less valuation allowance $ (4,769 ) $ (12,593 ) 0 $ (15,021 ) Deferred tax asset - net valuation allowance $ - |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Nov. 30, 2015 | |
Income Taxes Details | |
Federal | 34.00% |
State | 5.00% |
Total | 39.00% |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | 16 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Aug. 31, 2015 | Aug. 31, 2014 | Nov. 30, 2015 | |
Deferred tax assets | |||||
Net operating losses | $ (14,025) | $ 438 | $ (37,037) | $ 0 | $ (44,180) |
Net deferred tax assets | 4,769 | 12,593 | 0 | 15,021 | |
Less valuation allowance | $ (4,769) | $ (12,593) | $ 0 | $ (15,021) | |
Deferred tax asset - net valuation allowance |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Income Taxes Details Narrative | ||
Income tax expense | $ 2,700 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | 16 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Aug. 31, 2015 | Aug. 31, 2014 | Nov. 30, 2015 | |
Fixed Assets Details Narrative | |||||
Depreciation expense | $ 233 | $ 233 | $ 13 | $ 933 | $ 1,180 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | 16 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Aug. 31, 2015 | Aug. 31, 2014 | Nov. 30, 2015 | |
Going Concern Details Narrative | |||||
Net loss | $ (14,025) | $ 438 | $ (37,037) | $ 0 | $ (44,180) |
Cash | $ 1,003 | $ 4,795 | $ 1,003 |