Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Oct. 18, 2016 | Dec. 31, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | First Priority Tax Solutions Inc. | ||
Entity Central Index Key | 1,622,408 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
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 | ||
Public Float | $ 34,800 | ||
Entity Common Stock, Shares Outstanding | 5,740,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Current Assets | ||
Cash | $ 8,675 | $ 7,275 |
Accounts receivable | 441 | |
Deferred rent asset | 17,422 | |
Total current assets | 26,538 | |
Real Estate | ||
Land | 15,000 | |
Building | 60,000 | |
Accumulated depreciation | (4,000) | |
Real estate, net | 71,000 | |
Total Assets | 97,538 | |
Current Liabilities | ||
Accrued expenses | 42,461 | |
Note payable | 85,000 | |
Total current liabilities | 127,461 | |
Non-current Liabilities | ||
Note payable, related party | 10,000 | |
Lease deposits from customers | 4,500 | |
Total non-current liabilities | 14,500 | |
Total liabilities | 141,961 | |
Stockholders' Deficit | ||
Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding | ||
Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding | 6 | |
Additional paid-in capital | 59,849 | |
Accumulated deficit | (104,278) | (74,791) |
Total Stockholders' Equity (Deficit) | (44,423) | (14,936) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 97,538 | |
Restated [Member] | ||
Current Assets | ||
Cash | 7,275 | |
Accounts receivable | ||
Deferred rent asset | ||
Total current assets | 7,275 | |
Real Estate | ||
Land | 15,000 | |
Building | 60,000 | |
Accumulated depreciation | (2,000) | |
Real estate, net | 73,000 | |
Total Assets | 80,275 | |
Current Liabilities | ||
Accrued expenses | 10,211 | |
Note payable | 85,000 | |
Total current liabilities | 95,211 | |
Non-current Liabilities | ||
Note payable, related party | ||
Lease deposits from customers | ||
Total non-current liabilities | ||
Total liabilities | 95,211 | |
Stockholders' Deficit | ||
Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding | ||
Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding | 6 | |
Additional paid-in capital | 59,849 | |
Accumulated deficit | (74,791) | |
Total Stockholders' Equity (Deficit) | (14,936) | |
Total Liabilities and Stockholders' Equity (Deficit) | $ 80,275 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Stockholders' Equity | ||
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 8,000,000 | 8,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 92,000,000 | 92,000,000 |
Common stock, shares issued | 5,740,000 | 5,740,000 |
Common stock, shares outstanding | 5,740,000 | 5,740,000 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue | $ 28,767 | ||
Cost of revenue | 4,252 | ||
Gross margin | 24,514 | ||
Operating Expenses | |||
Depreciation expense | 2,000 | $ 2,000 | |
Professional fees | 41,289 | ||
General and administrative | 12,041 | ||
Total operating expenses | 55,330 | ||
Loss from Operations | (30,815) | ||
Other (Income) Expense | |||
Other income | (4,738) | ||
Interest Income | |||
Interest expense | 3,409 | ||
Other (income) expense, net | (1,329) | ||
Loss before Income Tax Provision | (29,487) | ||
Income Tax Provision | |||
Net Loss | $ (29,487) | (54,982) | |
Earnings per share | |||
Basic and Diluted | $ (0.01) | ||
Weighted average common shares outstanding | |||
Basic and Diluted | 5,740,000 | ||
Restated [Member] | |||
Revenue | |||
Cost of revenue | |||
Gross margin | |||
Operating Expenses | |||
Depreciation expense | 2,000 | ||
Professional fees | 18,000 | 45,681 | |
General and administrative | 1,530 | 5,071 | |
Total operating expenses | 19,530 | 52,752 | |
Loss from Operations | (19,530) | (52,752) | |
Other (Income) Expense | |||
Other income | (940) | ||
Interest Income | (230) | ||
Interest expense | 279 | 3,400 | |
Other (income) expense, net | 279 | 2,230 | |
Loss before Income Tax Provision | (19,809) | (54,982) | |
Income Tax Provision | |||
Net Loss | $ (19,809) | $ (54,982) | |
Earnings per share | |||
Basic and Diluted | $ 0 | $ (0.01) | |
Weighted average common shares outstanding | |||
Basic and Diluted | 4,000,000 | 5,740,000 |
Statement of Changes in Stockho
Statement of Changes in Stockholders' Equity (Deficit) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning balance, shares at Jun. 30, 2014 | 5,740,000 | |||
Beginning balance, amount at Jun. 30, 2014 | $ 6 | $ 50,949 | $ (19,809) | $ 31,146 |
Contributed capital | 8,900 | 8,900 | ||
Net loss | (54,982) | (54,982) | ||
Ending balance, shares at Jun. 30, 2015 | 5,740,000 | |||
Ending balance, amount at Jun. 30, 2015 | $ 6 | 59,849 | (74,791) | (14,936) |
Net loss | (29,487) | (29,487) | ||
Ending balance, shares at Jun. 30, 2016 | 5,740,000 | |||
Ending balance, amount at Jun. 30, 2016 | $ 6 | $ 59,849 | $ (104,278) | $ (44,423) |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net loss | $ (29,487) | $ (54,982) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 2,000 | 2,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (441) | |
Deferred rent asset | (17,422) | |
Accrued expenses | 28,841 | |
Accrued interest | 3,409 | |
Lease deposits from customers | 4,500 | |
Net Cash Used in Operating Activities | (8,600) | |
Cash Flows from Investing Activitites | ||
Dsposit on acquisition of real estate | ||
Purchase of real estate | ||
Net cash used in investing activities | ||
Cash Flows from Financing Activities | ||
Proceeds from note payable | 10,000 | |
Contribution to capital | ||
Proceeds from sales of stock for cash | ||
Net Cash Provided by Financing Activities | 10,000 | |
Net Change in Cash | 1,400 | |
Cash - beginning of reporting period | 7,275 | |
Cash - end of reporting period | 8,675 | 7,275 |
Supplemental disclosure of cash flow information: | ||
Interest paid | ||
Income tax paid | ||
Restated [Member] | ||
Cash Flows from Operating Activities | ||
Net loss | (54,982) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 2,000 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | ||
Deferred rent asset | ||
Accrued expenses | 2,532 | |
Accrued interest | 3,400 | |
Lease deposits from customers | ||
Net Cash Used in Operating Activities | (47,050) | |
Cash Flows from Investing Activitites | ||
Dsposit on acquisition of real estate | 5,000 | |
Purchase of real estate | (75,000) | |
Net cash used in investing activities | (70,000) | |
Cash Flows from Financing Activities | ||
Proceeds from note payable | ||
Contribution to capital | 8,900 | |
Proceeds from sales of stock for cash | 36,951 | |
Net Cash Provided by Financing Activities | 45,851 | |
Net Change in Cash | (71,199) | |
Cash - beginning of reporting period | $ 7,275 | 78,474 |
Cash - end of reporting period | 7,275 | |
Supplemental disclosure of cash flow information: | ||
Interest paid | ||
Income tax paid |
Organization, Operations and Re
Organization, Operations and Restatement of Previously Issued Financial Statements | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 1 - Organization, Operations and Restatement of Previously Issued Financial Statements | First Priority Tax Solutions, Inc. (First Priority or the Company) was incorporated on March 31, 2014 under the laws of the State of Delaware. The Company engages in the business of acquiring, developing and managing residential and commercial income-producing properties in the Cincinnati and Dayton, Ohio metropolitan areas. Revenue is generated primarily from rental income. Overview of Restatement In this annual report on Form 10-K, the Company: (a) restates its audited balance sheets as of June 30, 2014 and June 30, 2015; (b) restates its audited statements of operations from March 31, 2014 (inception) through June 30, 2014 and for the year ended June 30, 2015; (c) restates its audited statements of changes in stockholders deficit from March 31, 2014 (inception) through June 30, 2014 and for the year ended June 30, 2015; and (d) restates its audited statements of cash flows from March 31, 2014 (inception) through June 30, 2014 and for the year ended June 30, 2015 Background on the Restatement As previously disclosed in the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on October 5, 2016, management concluded that, because of errors identified in the Companys previously issued financial statements from March 31, 2014 (inception) through June 30, 2014 and for the year ended June 30, 2015, the Company would restate its previously issued financial statements. These errors were discovered by management during the Companys normal closing process in the course of the Companys regularly scheduled audit by its newly appointed independent registered public accountants. The restatements reflect adjustments to correct errors in the Companys revenues, accounting expenses and contributed capital. The restated financial statements correct the following errors: Revenues/Contributed Capital Contributed capital in the amount of $8,900 was recorded as revenues for the year ended June 30, 2015. Accrued Property Taxes For the year ended June 30, 2015, $58,801 was accrued for property taxes due to a higher assessed value that the city had assigned to the property purchased by the Company. The Company was contesting the value of the property of which the city settled and assigned a value that is closer to the purchase price of the property in March 2016. Accordingly, the Company reversed the property taxes that were accrued as of June 30, 2015 of $58,801 instead of in the audit year ended June 30, 2016. Professional Fees During the audit for the year ended June 30, 2016 financial statements, the Company identified certain expenses that were recorded in the incorrect period. $4,000 of professional fees were recorded as expense for the year ended June 30, 2015 instead of June 30, 2014. For the year ended June 30, 2015 $2,500 of professional fees were recorded in the year ended June 30, 2016 instead of June 30, 2015. |
Significant and Critical Accoun
Significant and Critical Accounting Policies and Practices | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 2 - Significant and Critical Accounting Policies and Practices | The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Companys financial condition and results and require managements most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Companys significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles. Basis of Presentation The Companys financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Fiscal Year End The Company elected June 30 th Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Companys critical accounting estimates and assumptions affecting the financial statements were: (i) Assumption as a going concern: (ii) Fair value of long-lived assets (iii) Valuation allowance for deferred tax assets: These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Fair Value of Financial Instrument and Fair Value Measurements The Company adopted ASC 820, Fair Value Measurements . · Level 1 · Level 2 · Level 3 This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not always be available. Carrying Value, Recoverability and Impairment of Long-Lived Assets The Company has adopted Section 360-10-35 of the FASB Accounting Standards Codification for its long-lived assets. Pursuant to ASC Paragraph 360-10-35-17 an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Pursuant to ASC Paragraph 360-10-35-20 if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited. Pursuant to ASC Paragraph 360-10-35-21 the Companys long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company considers the following to be some examples of such events or changes in circumstances that may trigger an impairment review: (a) significant decrease in the market price of a long-lived asset (asset group); (b) A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; (c) A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; (d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); (e) A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group); and (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. Pursuant to ASC Paragraphs 360-10-45-4 and 360-10-45-5 an impairment loss recognized for a long-lived asset (asset group) to be held and used shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amount of that loss. A gain or loss recognized on the sale of a long-lived asset (disposal group) that is not a component of an entity shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amounts of those gains or losses. Foreign Currency Transactions The Company applies the guidelines as set out in Section 830-20-35 of the FASB Accounting Standards Codification (Section 830-20-35) for foreign currency transactions. Pursuant to Section 830-20-35 of the FASB Accounting Standards Codification, foreign currency transactions are transactions denominated in currencies other than U.S. Dollar, the Companys reporting currency or Canadian Dollar, the Companys operating functional currency. Foreign currency transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is a foreign currency transaction gain or loss that generally shall be included in determining net income for the period in which the exchange rate changes. Likewise, a transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later) realized upon settlement of a foreign currency transaction generally shall be included in determining net income for the period in which the transaction is settled. The exceptions to this requirement for inclusion in net income of transaction gains and losses pertain to certain intercompany transactions and to transactions that are designated as, and effective as, economic hedges of net investments and foreign currency commitments. Pursuant to Section 830-20-25 of the FASB Accounting Standards Codification, the following shall apply to all foreign currency transactions of an enterprise and its investees: (a) at the date the transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be measured and recorded in the functional currency of the recording entity by use of the exchange rate in effect at that date as defined in section 830-10-20 of the FASB Accounting Standards Codification; and (b) at each balance sheet date, recorded balances that are denominated in currencies other than the functional currency or reporting currency of the recording entity shall be adjusted to reflect the current exchange rate. Cash Equivalents For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. Real Estate Real Estate is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the respective assets as follows: Estimated Useful Life (Years) Building 30 Land N/A Upon sale or retirement, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations. Related Parties The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include a. affiliates (Affiliate means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act) of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 8251015, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. The disclosures shall include: a. the nature of the relationship(s) involved b. description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Commitment and Contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Companys financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Revenue Recognition The Company follows 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. In addition to the aforementioned general policy, the following are the specific revenue recognition policies for each major category of revenue: Residential property leases will be for terms of generally one year or more. Rental income is recognized on a straight-line basis over the term of the lease. Rent concessions, including free rent if incurred in connection with residential property leases, will be amortized on a straight-line basis over the terms of the related leases and will be charged as a reduction of rental revenue. Deferred Tax Assets and Income Tax Provision The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the current enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (Section 740-10-25). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In managements opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. Tax years that remain subject to examination by major tax jurisdictions The Company discloses tax years that remain subject to examination by major tax jurisdictions pursuant to the ASC Paragraph 740-10-50-15. Earnings per Share Earnings per share ("EPS") are the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260105523). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. There were no potentially dilutive common shares outstanding for the reporting periods ending June 30, 2016 and 2015. Cash Flows Reporting The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (Indirect method) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. Subsequent Events The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. Recently Issued Accounting Pronouncements In May 2014, the FASB issued the FASB Accounting Standards Update No. 2014-09 Revenue from Contracts with Customers (Topic 606) (ASU 2014-09) This guidance amends the existing FASB Accounting Standards Codification, creating a new Topic 606, Revenue from Contracts with Customer. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: 1. Identify the contract(s) with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligations The ASU also provides guidance on disclosures that should be provided to enable financial statement users to understand the nature, amount, timing, and uncertainty of revenue recognition and cash flows arising from contracts with customers. Qualitative and quantitative information is required about the following: 6. Contracts with customers 7. Significant judgments and changes in judgments 8. Assets recognized from the costs to obtain or fulfill a contract. In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, 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 also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. Finally, the amendments remove paragraph 810-10-15-16. Paragraph 810-10-15-16 states that a development stage entity does not meet the condition in paragraph 810-10-15-14(a) to be a variable interest entity if (1) the entity can demonstrate that the equity invested in the legal entity is sufficient to permit it to finance the activities that it is currently engaged in and (2) the entitys governing documents and contractual arrangements allow additional equity investments. The amendments in this Update also eliminate an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided to financial statement users by requiring the application of the same consolidation guidance by all reporting entities. The elimination of the exception may change the consolidation analysis, consolidation decision, and disclosure requirements for a reporting entity that has an interest in an entity in the development stage. The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entitys financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915. In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15 Presentation of Financial StatementsGoing Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (ASU 2014-15). In connection with preparing financial statements for each annual and interim reporting period, an entitys management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entitys ability to continue as a going concern within one year after the date that the financial statements are issued financial statements are available to be issued financial statements are issued financial statements are available to be issued probable When management identifies conditions or events that raise substantial doubt about an entitys ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of managements plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entitys ability to continue as a going concern. If conditions or events raise substantial doubt about an entitys ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of managements plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes): a. Principal conditions or events that raised substantial doubt about the entitys ability to continue as a going concern (before consideration of managements plans) b. Managements evaluation of the significance of those conditions or events in relation to the entitys ability to meet its obligations c. Managements plans that alleviated substantial doubt about the entitys ability to continue as a going concern. If conditions or events raise substantial doubt about an entitys ability to continue as a going concern, and substantial doubt is not alleviated after consideration of managements plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entitys ability to continue as a going concern a. Principal conditions or events that raise substantial doubt about the entitys ability to continue as a going concern b. Managements evaluation of the significance of those conditions or events in relation to the entitys ability to meet its obligations c. Managements plans that are intended to mitigate the conditions or events that raise substantial doubt about the entitys ability to continue as a going concern. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements. |
Going Concern
Going Concern | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 3 - Going Concern | The Company has elected to adopt early application of Accounting Standards Update No. 2014-15, Presentation of Financial StatementsGoing Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (ASU 2014-15) The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has incurred recurring losses and generated negative cash flows from operating activities since inception. As of June 30, 2016 and 2015, the Company had an accumulated deficit of $104,278 and $74,791, respectively. The Company has a working capital deficit (total current liabilities exceeded total current assets) of $100,923 and $87,936 respectively. The Companys cash balance and revenues generated are not currently sufficient and cannot be projected to cover its operating expenses for the next twelve months from the filing date of this report. These factors among others raise substantial doubt about the Companys ability to continue as a going concern for a reasonable period of time. The Companys existence is dependent upon managements ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the Companys efforts will be successful. No assurance can be given that managements actions will result in profitable operations or the resolution of its liquidity problems. The accompanying consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern. In order to improve the Companys liquidity, the Companys management is actively pursuing additional equity financing through discussions with investment bankers and private investors. There can be no assurance that the Company will be successful in its effort to secure additional equity financing. |
Real Estate
Real Estate | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 4 - Real Estate | As of June 30, 2016 and 2015, real estate investment consisted of one commercial property located at 1784 Stanley Avenue, Dayton, Ohio, which was leased in February 2016. Depreciation expense for the year ended June 30, 2016 and 2015 totaled $2,000, respectively. |
Revenue from Rental Income
Revenue from Rental Income | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 5 - Revenue from rental income | On February 1, 2016, the Company entered into an agreement with GSH, LLC. to lease the commercial property it owns at 1784 Stanley Avenue, Dayton, OH. The lease is for the initial term of 24 months. Rental income is recognized on a straight-line basis over the term of the lease. |
Note Payable
Note Payable | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 6 - Note Payable | On June 1, 2014, the Company entered into a note payable with a third-party in the amount of $85,000. The note bears interest at 4% per annum with interest and principal due on June 1, 2016. Accrued interest totaled $3,409 and $3,400 for the reporting period ended June 30, 2016 and 2015, respectively. As of June 30, 2016, this note has been extended. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 7 - Equity Transactions | Shares Authorized Upon formation, the total number of shares of all classes of stock which the Company is authorized to issue is Ninety Two Million (92,000,000) shares of Common Stock, par value $0.000001 per share, and Eight Million (8,000,000) shares of Preferred Stock, par value $0.000001 per share. Common Stock On March 31, 2014, upon formation, the Company issued an aggregate of 4,000,000 shares of the newly formed corporations common stock to its Chief Executive Officer at the par value of $0.000001 per share or $4 for compensation. From March 31, 2014 through June 30, 2014, the Company authorized the issuance of 1,740,000 shares of its common stock for cash at $0.02 per share for a total of $36,951. In June 2014, the Companys president paid $14,000 in legal expenses for the Company which has been treated as a contribution to capital. The Companys president also contributed $8,900 in the form of two promissory notes from fees he obtained from performing services. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 8 - Related Party Transactions | On October 19, 2015, the Company entered into a related party note payable in the amount of $10,000. The note bears no interest, and principal is due on October 19, 2017. A Director of the Company is also the real estate agent for the Company's rental property. |
Concentration
Concentration | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 9 - Concentration | The Company operates in the Real Estate industry and owns one property in Dayton, Ohio. Deferred Tax Assets At June 30, 2016 and 2015, the Company had net operating loss (NOL) carryforwards for Federal income tax purposes of $104,278 and $74,791 that may be offset against future taxable income through 2036. No tax benefit has been recorded with respect to these net operating loss carry-forwards in the accompanying financial statements as the management of the Company believes that the realization of the Companys net deferred tax assets of approximately $35,454 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance. Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realization. The valuation allowance increased approximately $10,025 for the fiscal year ended June 30, 2016 and $18,694 for the fiscal year ended June 30, 2015. Components of deferred tax assets are as follows: June 30, 2016 June 30, 2015 Net deferred tax assets Non-current: Expected income tax benefit from NOL carry-forwards $ 35,454 $ 25,429 Less valuation allowance (35,454 ) (25,429 ) Deferred tax assets, net of valuation allowance $ - $ - Income Tax Provision in the Statement of Operations A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: For the fiscal year ended June 30, 2016 For the fiscal year ended June 30, 2015 Federal statutory income tax rate 34.0 % 34.0 % Increase (reduction) in income tax provision resulting from: Net operating loss (NOL) carry-forwards (34.0 ) (34.0 ) Effective income tax rate 0.0 % 0.0 % Tax Returns Remaining subject to IRS Audits The Company has not yet filed its corporation income tax return for the reporting period ended June 30, 2016. The Company's corporation income tax returns for the reporting periods ended June 30, 2016 and 2015 will remain subject to audit under the statute of limitations by the Internal Revenue Service for a period of three (3) years from the date they are filed. Ohio - Commercial Activity Tax (CAT) The Commercial Activity Tax (CAT) is an annual tax imposed on the privilege of doing business in Ohio, measured by gross receipts from business activities in Ohio. Businesses with Ohio taxable gross receipts of $150,000.00 per calendar year are subject to the CAT tax. Such "taxable gross receipts", include 1) gross rents and royalties from real property located in Ohio, and 2) gross receipts from the sale of real property located in Ohio. For calendar years 2006 and thereafter, the first $1 million in taxable gross receipts are taxed at $150, thereafter at a rate of 0.2600%. For tax years prior to December 31, 2013, there is an annual minimum tax (AMT) of $150.00. Since the Company has not had gross receipts for the periods ended June 30, 2016 and 2015, the CAT tax is not applicable to the Company for the periods indicated. |
Restatements of Previously Issu
Restatements of Previously Issued Financial Statements | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 10 - Restatements of Previously Issued Financial Statements | Subsequent to the original issuance of First Priority Tax Solutions' financial statements as of and for the period from March 31, 2014 (inception) through June 30, 2014 and for the year ended June 30, 2015, the management of the Company identified certain misstatements during the periods. As a result of certain misstatements identified, management concluded that its previously issued financial statements for the periods should no longer be relied upon because of certain misstatements identified. The impact of this restatement on the Company's financial statements for the year from inception through June 30, 2014 and for the year ended June 30, 2015 is reflected in the totals below. June 30, 2014 June 30, 2014 June 30, 2014 (previously reported) (adjustments) (restated) Assets Current Assets Cash $ 78,474 $ - $ 78,474 Stock subscription receivable 36,951 - 36,951 Dsposit on acquisition of real estate 5,000 - 5,000 Total current assets 120,425 - 120,425 Real Estate Land - - - Building - - - Accumulated depreciation - - - Real estate, net - - - Total Assets $ 120,425 $ - $ 120,425 Liabilities and Stockholders' Equity (Deficit) Current Liabilities Accrued expenses $ 279 $ 4,000 $ 4,279 Note payable, current maturity - - - Total current liabilities 279 4,000 4,279 Non-current Liabilities Note payable, net of current maturity 85,000 - 85,000 Total non-current liabilities 85,000 - 85,000 Total liabilities 85,279 4,000 89,279 Stockholders' Equity (Deficit) Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding - - - Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding 6 - 6 Additional paid-in capital 50,949 - 50,949 Accumulated deficit (15,809 ) (4,000 ) (19,809 ) Total Stockholders' Equity (Deficit) 35,146 (4,000 ) 31,146 Total Liabilities and Stockholders' Equity (Deficit) $ 120,425 $ - $ 120,425 For the Period from March 31, 2014 (Inception) through June 30, 2014 For the Period from March 31, 2014 (Inception) through June 30, 2014 For the Period from March 31, 2014 (Inception) through June 30, 2014 (previously reported) (adjustments) (restated) Rental Revenue $ - $ - $ - Cost of revenue - - - Gross margin - - - Operating Expenses Professional fees 14,000 4,000 18,000 General and administrative 1,530 - 1,530 Total operating expenses 15,530 4,000 19,530 Loss from Operations (15,530 ) (4,000 ) (19,530 ) Other (Income) Expense Other income - - - Interest Income - - - Interest expense 279 - 279 Other (income) expense, net 279 - 279 Loss before Income Tax Provision (15,809 ) (4,000 ) (19,809 ) Income Tax Provision - - - Net Loss $ (15,809 ) $ (4,000 ) $ (19,809 ) Earnings per share - Basic and Diluted $ (0.00 ) $ - $ (0.00 ) Weighted average common shares outstanding - Basic and Diluted 4,000,000 - 4,000,000 For the Period from March 31, 2014 (Inception) through June 30, 2014 For the Period from March 31, 2014 (Inception) through June 30, 2014 For the Period from March 31, 2014 (Inception) through June 30, 2014 (prevoiusly stated) (adjustments) (restated) Cash Flows from Operating Activities Net loss $ (15,809 ) $ (4,000 ) $ (19,809 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation - - - Stock compensation 4 - 4 Changes in operating assets and liabilities: Accrued expenses - 4,000 4,000 Accrued interest 279 - 279 Net Cash Used in Operating Activities (15,526 ) - (15,526 ) Cash Flows from Investing Activitites Deposit on acquisition of real estate (5,000 ) - (5,000 ) Purchase of real estate - - - Net cash used in investing activities (5,000 ) - (5,000 ) Cash Flows from Financing Activities Proceeds from note payable 85,000 - 85,000 Contribution to capital 14,000 - 14,000 Proceeds from sales of stock for cash - - - Net Cash Provided by Financing Activities 99,000 - 99,000 Net Change in Cash 78,474 - 78,474 Cash - beginning of reporting period - - - Cash - end of reporting period $ 78,474 $ - $ 78,474 Supplemental disclosure of cash flow information: Interest paid $ - $ - $ - Income tax paid $ - $ - $ - Supplemental disclosure of non-cash investing and financing activities: Stock subscription receivable $ 36,951 $ - $ 36,951 June 30, 2015 June 30, 2015 June 30, 2015 (previously reported) (adjustments) (restated) Assets Current Assets Cash $ 7,275 $ - $ 7,275 Stock subscription receivable - - - Dsposit on acquisition of real estate - - - Total current assets 7,275 - 7,275 Real Estate Land 15,000 - 15,000 Building 60,000 - 60,000 Accumulated depreciation (2,000 ) - (2,000 ) Real estate, net 73,000 - 73,000 Total Assets $ 80,275 $ - $ 80,275 Liabilities and Stockholders' Equity (Deficit) Current Liabilities Accrued expenses $ 66,512 $ (56,301 ) $ 10,211 Note payable, current maturity 85,000 - 85,000 Total current liabilities 151,512 (56,301 ) 95,211 Non-current Liabilities Note payable, net of current maturity - - - Total non-current liabilities - - - Total liabilities 151,512 (56,301 ) 95,211 Stockholders' Equity (Deficit) Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding - - - Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding 6 - 6 Additional paid-in capital 53,349 6,500 59,849 Accumulated deficit (124,592 ) 49,801 (74,791 ) Total Stockholders' Equity (Deficit) (71,237 ) 56,301 (14,936 ) Total Liabilities and Stockholders' Equity (Deficit) $ 80,275 $ - $ 80,275 For the fiscal year ended June 30, 2015 For the fiscal year ended June 30, 2015 For the fiscal year ended June 30, 2015 (previously reported) (adjustments) (restated) Revenue $ 8,900 $ (8,900 ) $ - Cost of revenue 2,400 (2,400 ) - Gross margin 6,500 (6,500 ) - Operating Expenses Depreciation expense - 2,000 2,000 Professional fees 47,181 (1,500 ) 45,681 General and administrative 65,872 (60,801 ) 5,071 Total operating expenses 113,053 (60,301 ) 52,752 Loss from Operations (106,553 ) 53,801 (52,752 ) Other (Income) Expense Other income (940 ) - (940 ) Interest Income (230 ) - (230 ) Interest expense 3,400 - 3,400 Other (income) expense, net 2,230 - 2,230 Loss before Income Tax Provision (108,783 ) 53,801 (54,982 ) Income Tax Provision - - - Net Loss $ (108,783 ) $ 53,801 $ (54,982 ) Earnings per share -Basic and Diluted $ (0.02 ) $ - $ (0.01 ) Weighted average common shares outstanding -Basic and Diluted 5,740,000 - 5,740,000 For the fiscal year ended June 30, 2015 For the fiscal year ended June 30, 2015 For the fiscal year ended June 30, 2015 (previously reported) (adjustments) (restated) Cash Flows from Operating Activities Net loss $ (108,783 ) $ 53,801 $ (54,982 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 2,000 - 2,000 Stock compensation - - - Changes in operating assets and liabilities: Accrued expenses 62,833 (60,301 ) 2,532 Accrued interest 3,400 - 3,400 Net Cash Used in Operating Activities (40,550 ) (6,500 ) (47,050 ) Cash Flows from Investing Activitites Deposit on acquisition of real estate - 5,000 5,000 Purchase of real estate (70,000 ) (5,000 ) (75,000 ) Net cash used in investing activities (70,000 ) - (70,000 ) Cash Flows from Financing Activities Proceeds from note payable - - - Contribution to capital 2,400 6,500 8,900 Proceeds from sales of stock for cash 36,951 - 36,951 Net Cash Provided by Financing Activities 39,351 6,500 45,851 Net Change in Cash (71,199 ) - (71,199 ) Cash - beginning of reporting period 78,474 - 78,474 Cash - end of reporting period $ 7,275 $ - $ 7,275 Supplemental disclosure of cash flow information: Interest paid $ - $ - $ - Income tax paid $ - $ - $ - Supplemental disclosure of non-cash investing and financing activities: Stock subscription receivable $ - $ - $ - |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 11 - Subsequent Events | The Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there were no reportable subsequent events to be disclosed. |
Significant and Critical Acco18
Significant and Critical Accounting Policies and Practices (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Significant And Critical Accounting Policies And Practices Policies | |
Basis of Presentation | The Companys financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). |
Fiscal Year End | The Company elected June 30th as its fiscal year end date upon its formation. |
Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions | 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Companys critical accounting estimates and assumptions affecting the financial statements were: (i) Assumption as a going concern: (ii) Fair value of long-lived assets (iii) Valuation allowance for deferred tax assets: These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Fair Value of Financial Instrument and Fair Value Measurements | The Company adopted ASC 820, Fair Value Measurements . · Level 1 · Level 2 · Level 3 This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not always be available. |
Carrying Value, Recoverability and Impairment of Long-Lived Assets | The Company has adopted Section 360-10-35 of the FASB Accounting Standards Codification for its long-lived assets. Pursuant to ASC Paragraph 360-10-35-17 an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Pursuant to ASC Paragraph 360-10-35-20 if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited. Pursuant to ASC Paragraph 360-10-35-21 the Companys long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company considers the following to be some examples of such events or changes in circumstances that may trigger an impairment review: (a) significant decrease in the market price of a long-lived asset (asset group); (b) A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; (c) A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; (d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); (e) A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group); and (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. Pursuant to ASC Paragraphs 360-10-45-4 and 360-10-45-5 an impairment loss recognized for a long-lived asset (asset group) to be held and used shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amount of that loss. A gain or loss recognized on the sale of a long-lived asset (disposal group) that is not a component of an entity shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amounts of those gains or losses. |
Foreign Currency Transactions | The Company applies the guidelines as set out in Section 830-20-35 of the FASB Accounting Standards Codification (Section 830-20-35) for foreign currency transactions. Pursuant to Section 830-20-35 of the FASB Accounting Standards Codification, foreign currency transactions are transactions denominated in currencies other than U.S. Dollar, the Companys reporting currency or Canadian Dollar, the Companys operating functional currency. Foreign currency transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is a foreign currency transaction gain or loss that generally shall be included in determining net income for the period in which the exchange rate changes. Likewise, a transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later) realized upon settlement of a foreign currency transaction generally shall be included in determining net income for the period in which the transaction is settled. The exceptions to this requirement for inclusion in net income of transaction gains and losses pertain to certain intercompany transactions and to transactions that are designated as, and effective as, economic hedges of net investments and foreign currency commitments. Pursuant to Section 830-20-25 of the FASB Accounting Standards Codification, the following shall apply to all foreign currency transactions of an enterprise and its investees: (a) at the date the transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be measured and recorded in the functional currency of the recording entity by use of the exchange rate in effect at that date as defined in section 830-10-20 of the FASB Accounting Standards Codification; and (b) at each balance sheet date, recorded balances that are denominated in currencies other than the functional currency or reporting currency of the recording entity shall be adjusted to reflect the current exchange rate. |
Cash Equivalents | For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. |
Real Estate | Real Estate is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the respective assets as follows: Estimated Useful Life (Years) Building 30 Land N/A Upon sale or retirement, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations. |
Related Parties | The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include a. affiliates (Affiliate means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act) of the Company; b. entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 8251015, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. The disclosures shall include: a. the nature of the relationship(s) involved b. description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitment and Contingencies | The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Companys financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. |
Revenue Recognition | The Company follows 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. In addition to the aforementioned general policy, the following are the specific revenue recognition policies for each major category of revenue: Residential property leases will be for terms of generally one year or more. Rental income is recognized on a straight-line basis over the term of the lease. Rent concessions, including free rent if incurred in connection with residential property leases, will be amortized on a straight-line basis over the terms of the related leases and will be charged as a reduction of rental revenue. |
Deferred Tax Assets and Income Tax Provision | The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the current enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (Section 740-10-25). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In managements opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. |
Tax years that remain subject to examination by major tax jurisdictions | The Company discloses tax years that remain subject to examination by major tax jurisdictions pursuant to the ASC Paragraph 740-10-50-15. |
Earnings per Share | Earnings per share ("EPS") are the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260105523). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. There were no potentially dilutive common shares outstanding for the reporting periods ending June 30, 2016 and 2015. |
Cash Flows Reporting | The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (Indirect method) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. |
Subsequent Events | The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR. |
Recently Issued Accounting Pronouncements | In May 2014, the FASB issued the FASB Accounting Standards Update No. 2014-09 Revenue from Contracts with Customers (Topic 606) (ASU 2014-09) This guidance amends the existing FASB Accounting Standards Codification, creating a new Topic 606, Revenue from Contracts with Customer. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: 1. Identify the contract(s) with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligations The ASU also provides guidance on disclosures that should be provided to enable financial statement users to understand the nature, amount, timing, and uncertainty of revenue recognition and cash flows arising from contracts with customers. Qualitative and quantitative information is required about the following: 6. Contracts with customers 7. Significant judgments and changes in judgments 8. Assets recognized from the costs to obtain or fulfill a contract. In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, 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 also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. Finally, the amendments remove paragraph 810-10-15-16. Paragraph 810-10-15-16 states that a development stage entity does not meet the condition in paragraph 810-10-15-14(a) to be a variable interest entity if (1) the entity can demonstrate that the equity invested in the legal entity is sufficient to permit it to finance the activities that it is currently engaged in and (2) the entitys governing documents and contractual arrangements allow additional equity investments. The amendments in this Update also eliminate an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided to financial statement users by requiring the application of the same consolidation guidance by all reporting entities. The elimination of the exception may change the consolidation analysis, consolidation decision, and disclosure requirements for a reporting entity that has an interest in an entity in the development stage. The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entitys financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915. In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15 Presentation of Financial StatementsGoing Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (ASU 2014-15). In connection with preparing financial statements for each annual and interim reporting period, an entitys management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entitys ability to continue as a going concern within one year after the date that the financial statements are issued financial statements are available to be issued financial statements are issued financial statements are available to be issued probable When management identifies conditions or events that raise substantial doubt about an entitys ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of managements plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entitys ability to continue as a going concern. If conditions or events raise substantial doubt about an entitys ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of managements plans, the entity should disclose information that enables users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the footnotes): a. Principal conditions or events that raised substantial doubt about the entitys ability to continue as a going concern (before consideration of managements plans) b. Managements evaluation of the significance of those conditions or events in relation to the entitys ability to meet its obligations c. Managements plans that alleviated substantial doubt about the entitys ability to continue as a going concern. If conditions or events raise substantial doubt about an entitys ability to continue as a going concern, and substantial doubt is not alleviated after consideration of managements plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entitys ability to continue as a going concern a. Principal conditions or events that raise substantial doubt about the entitys ability to continue as a going concern b. Managements evaluation of the significance of those conditions or events in relation to the entitys ability to meet its obligations c. Managements plans that are intended to mitigate the conditions or events that raise substantial doubt about the entitys ability to continue as a going concern. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements. |
Significant and Critical Acco19
Significant and Critical Accounting Policies and Practices (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Significant And Critical Accounting Policies And Practices Tables | |
Real Estate | Estimated Useful Life (Years) Building 30 Land N/A |
Concentration (Tables)
Concentration (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Concentration Tables | |
Schedule of Deferred Tax Assets | June 30, 2016 June 30, 2015 Net deferred tax assets Non-current: Expected income tax benefit from NOL carry-forwards $ 35,454 $ 25,429 Less valuation allowance (35,454 ) (25,429 ) Deferred tax assets, net of valuation allowance $ - $ - |
Income Tax Provision in the Statement of Operations | For the fiscal year ended June 30, 2016 For the fiscal year ended June 30, 2015 Federal statutory income tax rate 34.0 % 34.0 % Increase (reduction) in income tax provision resulting from: Net operating loss (NOL) carry-forwards (34.0 ) (34.0 ) Effective income tax rate 0.0 % 0.0 % |
Restatements of Previously Is21
Restatements of Previously Issued Financial Statements (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Restatements Of Previously Issued Financial Statements Tables | |
Restatements of Previously Issued Financial Statements | June 30, 2014 June 30, 2014 June 30, 2014 (previously reported) (adjustments) (restated) Assets Current Assets Cash $ 78,474 $ - $ 78,474 Stock subscription receivable 36,951 - 36,951 Dsposit on acquisition of real estate 5,000 - 5,000 Total current assets 120,425 - 120,425 Real Estate Land - - - Building - - - Accumulated depreciation - - - Real estate, net - - - Total Assets $ 120,425 $ - $ 120,425 Liabilities and Stockholders' Equity (Deficit) Current Liabilities Accrued expenses $ 279 $ 4,000 $ 4,279 Note payable, current maturity - - - Total current liabilities 279 4,000 4,279 Non-current Liabilities Note payable, net of current maturity 85,000 - 85,000 Total non-current liabilities 85,000 - 85,000 Total liabilities 85,279 4,000 89,279 Stockholders' Equity (Deficit) Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding - - - Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding 6 - 6 Additional paid-in capital 50,949 - 50,949 Accumulated deficit (15,809 ) (4,000 ) (19,809 ) Total Stockholders' Equity (Deficit) 35,146 (4,000 ) 31,146 Total Liabilities and Stockholders' Equity (Deficit) $ 120,425 $ - $ 120,425 For the Period from March 31, 2014 (Inception) through June 30, 2014 For the Period from March 31, 2014 (Inception) through June 30, 2014 For the Period from March 31, 2014 (Inception) through June 30, 2014 (previously reported) (adjustments) (restated) Rental Revenue $ - $ - $ - Cost of revenue - - - Gross margin - - - Operating Expenses Professional fees 14,000 4,000 18,000 General and administrative 1,530 - 1,530 Total operating expenses 15,530 4,000 19,530 Loss from Operations (15,530 ) (4,000 ) (19,530 ) Other (Income) Expense Other income - - - Interest Income - - - Interest expense 279 - 279 Other (income) expense, net 279 - 279 Loss before Income Tax Provision (15,809 ) (4,000 ) (19,809 ) Income Tax Provision - - - Net Loss $ (15,809 ) $ (4,000 ) $ (19,809 ) Earnings per share - Basic and Diluted $ (0.00 ) $ - $ (0.00 ) Weighted average common shares outstanding - Basic and Diluted 4,000,000 - 4,000,000 For the Period from March 31, 2014 (Inception) through June 30, 2014 For the Period from March 31, 2014 (Inception) through June 30, 2014 For the Period from March 31, 2014 (Inception) through June 30, 2014 (prevoiusly stated) (adjustments) (restated) Cash Flows from Operating Activities Net loss $ (15,809 ) $ (4,000 ) $ (19,809 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation - - - Stock compensation 4 - 4 Changes in operating assets and liabilities: Accrued expenses - 4,000 4,000 Accrued interest 279 - 279 Net Cash Used in Operating Activities (15,526 ) - (15,526 ) Cash Flows from Investing Activitites Deposit on acquisition of real estate (5,000 ) - (5,000 ) Purchase of real estate - - - Net cash used in investing activities (5,000 ) - (5,000 ) Cash Flows from Financing Activities Proceeds from note payable 85,000 - 85,000 Contribution to capital 14,000 - 14,000 Proceeds from sales of stock for cash - - - Net Cash Provided by Financing Activities 99,000 - 99,000 Net Change in Cash 78,474 - 78,474 Cash - beginning of reporting period - - - Cash - end of reporting period $ 78,474 $ - $ 78,474 Supplemental disclosure of cash flow information: Interest paid $ - $ - $ - Income tax paid $ - $ - $ - Supplemental disclosure of non-cash investing and financing activities: Stock subscription receivable $ 36,951 $ - $ 36,951 June 30, 2015 June 30, 2015 June 30, 2015 (previously reported) (adjustments) (restated) Assets Current Assets Cash $ 7,275 $ - $ 7,275 Stock subscription receivable - - - Dsposit on acquisition of real estate - - - Total current assets 7,275 - 7,275 Real Estate Land 15,000 - 15,000 Building 60,000 - 60,000 Accumulated depreciation (2,000 ) - (2,000 ) Real estate, net 73,000 - 73,000 Total Assets $ 80,275 $ - $ 80,275 Liabilities and Stockholders' Equity (Deficit) Current Liabilities Accrued expenses $ 66,512 $ (56,301 ) $ 10,211 Note payable, current maturity 85,000 - 85,000 Total current liabilities 151,512 (56,301 ) 95,211 Non-current Liabilities Note payable, net of current maturity - - - Total non-current liabilities - - - Total liabilities 151,512 (56,301 ) 95,211 Stockholders' Equity (Deficit) Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding - - - Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding 6 - 6 Additional paid-in capital 53,349 6,500 59,849 Accumulated deficit (124,592 ) 49,801 (74,791 ) Total Stockholders' Equity (Deficit) (71,237 ) 56,301 (14,936 ) Total Liabilities and Stockholders' Equity (Deficit) $ 80,275 $ - $ 80,275 For the fiscal year ended June 30, 2015 For the fiscal year ended June 30, 2015 For the fiscal year ended June 30, 2015 (previously reported) (adjustments) (restated) Revenue $ 8,900 $ (8,900 ) $ - Cost of revenue 2,400 (2,400 ) - Gross margin 6,500 (6,500 ) - Operating Expenses Depreciation expense - 2,000 2,000 Professional fees 47,181 (1,500 ) 45,681 General and administrative 65,872 (60,801 ) 5,071 Total operating expenses 113,053 (60,301 ) 52,752 Loss from Operations (106,553 ) 53,801 (52,752 ) Other (Income) Expense Other income (940 ) - (940 ) Interest Income (230 ) - (230 ) Interest expense 3,400 - 3,400 Other (income) expense, net 2,230 - 2,230 Loss before Income Tax Provision (108,783 ) 53,801 (54,982 ) Income Tax Provision - - - Net Loss $ (108,783 ) $ 53,801 $ (54,982 ) Earnings per share -Basic and Diluted $ (0.02 ) $ - $ (0.01 ) Weighted average common shares outstanding -Basic and Diluted 5,740,000 - 5,740,000 For the fiscal year ended June 30, 2015 For the fiscal year ended June 30, 2015 For the fiscal year ended June 30, 2015 (previously reported) (adjustments) (restated) Cash Flows from Operating Activities Net loss $ (108,783 ) $ 53,801 $ (54,982 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 2,000 - 2,000 Stock compensation - - - Changes in operating assets and liabilities: Accrued expenses 62,833 (60,301 ) 2,532 Accrued interest 3,400 - 3,400 Net Cash Used in Operating Activities (40,550 ) (6,500 ) (47,050 ) Cash Flows from Investing Activitites Deposit on acquisition of real estate - 5,000 5,000 Purchase of real estate (70,000 ) (5,000 ) (75,000 ) Net cash used in investing activities (70,000 ) - (70,000 ) Cash Flows from Financing Activities Proceeds from note payable - - - Contribution to capital 2,400 6,500 8,900 Proceeds from sales of stock for cash 36,951 - 36,951 Net Cash Provided by Financing Activities 39,351 6,500 45,851 Net Change in Cash (71,199 ) - (71,199 ) Cash - beginning of reporting period 78,474 - 78,474 Cash - end of reporting period $ 7,275 $ - $ 7,275 Supplemental disclosure of cash flow information: Interest paid $ - $ - $ - Income tax paid $ - $ - $ - Supplemental disclosure of non-cash investing and financing activities: Stock subscription receivable $ - $ - $ - |
Significant and Critical Acco22
Significant and Critical Accounting Policies and Practices (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Building [Member] | |
Estimated Useful Life (Years) | 30 years |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Going Concern Details Narrative | ||
Accumulated deficit | $ (104,278) | $ (74,791) |
Working capital deficit | $ 100,923 | $ 87,936 |
Real Estate (Details Narrative)
Real Estate (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Real Estate Details Narrative | ||
Depreciation expense | $ 2,000 | $ 2,000 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Note Payable Details Narrative | ||
Accrued interest | $ 3,409 | $ 3,400 |
Equity Transactions (Details Na
Equity Transactions (Details Narrative) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Equity Transactions Details Narrative | ||
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 92,000,000 | 92,000,000 |
Concentration (Details)
Concentration (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Net deferred tax assets – Non-current: | ||
Expected income tax benefit from NOL carry-forwards | $ 35,454 | $ 25,429 |
Less valuation allowance | (35,454) | (25,429) |
Deferred tax assets, net of valuation allowance |
Concentration (Details 1)
Concentration (Details 1) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Concentration Details 1 | ||
Federal statutory income tax rate | 34.00% | 34.00% |
Increase (reduction) in income tax provision resulting from: | ||
Net operating loss (“NOL”) carry-forwards | (34.00%) | (34.00%) |
Effective income tax rate | 0.00% | 0.00% |
Concentration (Details Narrativ
Concentration (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Concentration Details Narrative | ||
Net operating loss ("NOL") carry-forwards for Federal income tax | $ 104,278 | $ 74,791 |
Valuation allowance | $ 10,025 | $ 18,694 |
Net operating loss carry-forwards expire | 2,036 |
Restatements of Previously Is30
Restatements of Previously Issued Financial Statements (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 |
Current Assets | ||||
Cash | $ 8,675 | $ 7,275 | ||
Total current assets | 26,538 | |||
Real Estate | ||||
Land | 15,000 | |||
Building | 60,000 | |||
Accumulated depreciation | (4,000) | |||
Real estate, net | 71,000 | |||
Total Assets | 97,538 | |||
Current Liabilities | ||||
Accrued expenses | 42,461 | |||
Note payable, current maturity | 85,000 | |||
Total current liabilities | 127,461 | |||
Non-current Liabilities | ||||
Note payable, net of current maturity | 10,000 | |||
Total Noncurrent liabilities | 14,500 | |||
Total liabilities | 141,961 | |||
Stockholders' Equity (Deficit) | ||||
Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding | ||||
Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding | 6 | |||
Additional paid-in capital | 59,849 | |||
Accumulated deficit | (104,278) | (74,791) | ||
Total Stockholders' Equity (Deficit) | (44,423) | (14,936) | $ 31,146 | |
Total Liabilities and Stockholders' Equity (Deficit) | $ 97,538 | |||
Previously Reported [Member] | ||||
Current Assets | ||||
Cash | 7,275 | 78,474 | ||
Stock subscription receivable | 36,951 | |||
Deposit on acquisition of real estate | 5,000 | |||
Total current assets | 7,275 | 120,425 | ||
Real Estate | ||||
Land | 15,000 | |||
Building | 60,000 | |||
Accumulated depreciation | (2,000) | |||
Real estate, net | 73,000 | |||
Total Assets | 80,275 | 120,425 | ||
Current Liabilities | ||||
Accrued expenses | 66,512 | 279 | ||
Note payable, current maturity | 85,000 | |||
Total current liabilities | 151,512 | 279 | ||
Non-current Liabilities | ||||
Note payable, net of current maturity | 85,000 | |||
Total Noncurrent liabilities | 85,000 | |||
Total liabilities | 151,512 | 85,279 | ||
Stockholders' Equity (Deficit) | ||||
Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding | ||||
Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding | 6 | 6 | ||
Additional paid-in capital | 53,349 | 50,949 | ||
Accumulated deficit | (124,592) | (15,809) | ||
Total Stockholders' Equity (Deficit) | (71,237) | 35,146 | ||
Total Liabilities and Stockholders' Equity (Deficit) | 80,275 | 120,425 | ||
Adjustments [Member] | ||||
Current Assets | ||||
Cash | ||||
Stock subscription receivable | ||||
Deposit on acquisition of real estate | ||||
Total current assets | ||||
Real Estate | ||||
Land | ||||
Building | ||||
Accumulated depreciation | ||||
Real estate, net | ||||
Total Assets | ||||
Current Liabilities | ||||
Accrued expenses | (56,301) | 4,000 | ||
Note payable, current maturity | ||||
Total current liabilities | (56,301) | 4,000 | ||
Non-current Liabilities | ||||
Note payable, net of current maturity | ||||
Total Noncurrent liabilities | ||||
Total liabilities | (56,301) | 4,000 | ||
Stockholders' Equity (Deficit) | ||||
Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding | ||||
Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding | ||||
Additional paid-in capital | 6,500 | |||
Accumulated deficit | 49,801 | (4,000) | ||
Total Stockholders' Equity (Deficit) | 56,301 | (4,000) | ||
Total Liabilities and Stockholders' Equity (Deficit) | ||||
Restated [Member] | ||||
Current Assets | ||||
Cash | 7,275 | 78,474 | ||
Stock subscription receivable | 36,951 | |||
Deposit on acquisition of real estate | 5,000 | |||
Total current assets | 7,275 | 120,425 | ||
Real Estate | ||||
Land | 15,000 | |||
Building | 60,000 | |||
Accumulated depreciation | (2,000) | |||
Real estate, net | 73,000 | |||
Total Assets | 80,275 | 120,425 | ||
Current Liabilities | ||||
Accrued expenses | 10,211 | 4,279 | ||
Note payable, current maturity | 85,000 | |||
Total current liabilities | 95,211 | 4,279 | ||
Non-current Liabilities | ||||
Note payable, net of current maturity | 85,000 | |||
Total Noncurrent liabilities | 85,000 | |||
Total liabilities | 95,211 | 89,279 | ||
Stockholders' Equity (Deficit) | ||||
Preferred stock par value $0.000001: 8,000,000 shares authorized; none issued or outstanding | ||||
Common stock par value $0.000001: 92,000,000 shares authorized; 5,740,000 shares issued and outstanding | 6 | 6 | ||
Additional paid-in capital | 59,849 | 50,949 | ||
Accumulated deficit | (74,791) | (19,809) | ||
Total Stockholders' Equity (Deficit) | (14,936) | 31,146 | ||
Total Liabilities and Stockholders' Equity (Deficit) | $ 80,275 | $ 120,425 |
Restatements of Previously Is31
Restatements of Previously Issued Financial Statements (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | |
Rental Revenue | $ 28,767 | ||
Cost of revenue | 4,252 | ||
Gross margin | 24,514 | ||
Operating Expenses | |||
Depreciation expense | 2,000 | $ 2,000 | |
Professional fees | 41,289 | ||
General and administrative | 12,041 | ||
Total operating expenses | 55,330 | ||
Loss from Operations | (30,815) | ||
Other (Income) Expense | |||
Other income | (4,738) | ||
Interest Income | |||
Interest expense | 3,409 | ||
Other (income) expense, net | (1,329) | ||
Loss before Income Tax Provision | (29,487) | ||
Income Tax Provision | |||
Net Loss | $ (29,487) | (54,982) | |
Earnings per share | |||
Basic and Diluted | $ (0.01) | ||
Weighted average common shares outstanding | |||
Basic and Diluted | 5,740,000 | ||
Previously Reported [Member] | |||
Rental Revenue | |||
Cost of revenue | |||
Gross margin | |||
Operating Expenses | |||
Depreciation expense | |||
Professional fees | 14,000 | ||
General and administrative | 1,530 | ||
Total operating expenses | 15,530 | ||
Loss from Operations | (15,530) | ||
Other (Income) Expense | |||
Other income | |||
Interest Income | |||
Interest expense | 279 | ||
Other (income) expense, net | 279 | ||
Loss before Income Tax Provision | (15,809) | ||
Income Tax Provision | |||
Net Loss | $ (15,809) | ||
Earnings per share | |||
Basic and Diluted | $ 0 | ||
Weighted average common shares outstanding | |||
Basic and Diluted | 4,000,000 | ||
Adjustments [Member] | |||
Rental Revenue | (8,900) | ||
Cost of revenue | (2,400) | ||
Gross margin | (6,500) | ||
Operating Expenses | |||
Depreciation expense | 2,000 | ||
Professional fees | 4,000 | (1,500) | |
General and administrative | (60,801) | ||
Total operating expenses | 4,000 | (60,301) | |
Loss from Operations | (4,000) | 53,801 | |
Other (Income) Expense | |||
Other income | |||
Interest Income | |||
Interest expense | |||
Other (income) expense, net | |||
Loss before Income Tax Provision | (4,000) | 53,801 | |
Income Tax Provision | |||
Net Loss | $ (4,000) | $ 53,801 | |
Earnings per share | |||
Basic and Diluted | |||
Weighted average common shares outstanding | |||
Basic and Diluted | |||
Restated [Member] | |||
Rental Revenue | |||
Cost of revenue | |||
Gross margin | |||
Operating Expenses | |||
Depreciation expense | 2,000 | ||
Professional fees | 18,000 | 45,681 | |
General and administrative | 1,530 | 5,071 | |
Total operating expenses | 19,530 | 52,752 | |
Loss from Operations | (19,530) | (52,752) | |
Other (Income) Expense | |||
Other income | (940) | ||
Interest Income | (230) | ||
Interest expense | 279 | 3,400 | |
Other (income) expense, net | 279 | 2,230 | |
Loss before Income Tax Provision | (19,809) | (54,982) | |
Income Tax Provision | |||
Net Loss | $ (19,809) | $ (54,982) | |
Earnings per share | |||
Basic and Diluted | $ 0 | $ (0.01) | |
Weighted average common shares outstanding | |||
Basic and Diluted | 4,000,000 | 5,740,000 | |
Previously Stated [Member] | |||
Rental Revenue | $ 8,900 | ||
Cost of revenue | 2,400 | ||
Gross margin | 6,500 | ||
Operating Expenses | |||
Depreciation expense | |||
Professional fees | 47,181 | ||
General and administrative | 65,872 | ||
Total operating expenses | 113,053 | ||
Loss from Operations | (106,553) | ||
Other (Income) Expense | |||
Other income | (940) | ||
Interest Income | (230) | ||
Interest expense | 3,400 | ||
Other (income) expense, net | 2,230 | ||
Loss before Income Tax Provision | (108,783) | ||
Income Tax Provision | |||
Net Loss | $ (15,809) | $ (108,783) | |
Earnings per share | |||
Basic and Diluted | $ (0.02) | ||
Weighted average common shares outstanding | |||
Basic and Diluted | 5,740,000 |
Restatements of Previously Is32
Restatements of Previously Issued Financial Statements (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities | |||
Net loss | $ (29,487) | $ (54,982) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 2,000 | 2,000 | |
Changes in operating assets and liabilities: | |||
Accrued expenses | 28,841 | ||
Accrued interest | (3,409) | ||
Net Cash Used in Operating Activities | (8,600) | ||
Cash Flows from Investing Activitites | |||
Dsposit on acquisition of real estate | |||
Purchase of real estate | |||
Net cash used in investing activities | |||
Cash Flows from Financing Activities | |||
Proceeds from note payable | 10,000 | ||
Contribution to capital | |||
Proceeds from sales of stock for cash | |||
Net Cash Provided by Financing Activities | 10,000 | ||
Net Change in Cash | 1,400 | ||
Cash - beginning of reporting period | 7,275 | ||
Cash - end of reporting period | 8,675 | 7,275 | |
Supplemental disclosure of cash flow information: | |||
Interest paid | |||
Income tax paid | |||
Previously Stated [Member] | |||
Cash Flows from Operating Activities | |||
Net loss | $ (15,809) | (108,783) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | |||
Stock compensation | 4 | ||
Changes in operating assets and liabilities: | |||
Accrued expenses | 62,833 | ||
Accrued interest | 279 | 3,400 | |
Net Cash Used in Operating Activities | (15,526) | (40,550) | |
Cash Flows from Investing Activitites | |||
Dsposit on acquisition of real estate | (5,000) | ||
Purchase of real estate | (70,000) | ||
Net cash used in investing activities | (5,000) | (70,000) | |
Cash Flows from Financing Activities | |||
Proceeds from note payable | 85,000 | ||
Contribution to capital | 14,000 | 2,400 | |
Proceeds from sales of stock for cash | 36,951 | ||
Net Cash Provided by Financing Activities | 99,000 | 39,351 | |
Net Change in Cash | 78,474 | (71,199) | |
Supplemental disclosure of cash flow information: | |||
Interest paid | |||
Income tax paid | |||
Supplemental disclosure of non-cash investing and financing activities: | |||
Stock subscription receivable | 36,951 | ||
Adjustments [Member] | |||
Cash Flows from Operating Activities | |||
Net loss | (4,000) | 53,801 | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 2,000 | ||
Stock compensation | |||
Changes in operating assets and liabilities: | |||
Accrued expenses | 4,000 | (60,301) | |
Accrued interest | |||
Net Cash Used in Operating Activities | (6,500) | ||
Cash Flows from Investing Activitites | |||
Dsposit on acquisition of real estate | 5,000 | ||
Purchase of real estate | (5,000) | ||
Net cash used in investing activities | |||
Cash Flows from Financing Activities | |||
Proceeds from note payable | |||
Contribution to capital | 6,500 | ||
Proceeds from sales of stock for cash | |||
Net Cash Provided by Financing Activities | 6,500 | ||
Net Change in Cash | |||
Cash - beginning of reporting period | |||
Cash - end of reporting period | |||
Supplemental disclosure of cash flow information: | |||
Interest paid | |||
Income tax paid | |||
Supplemental disclosure of non-cash investing and financing activities: | |||
Stock subscription receivable | |||
Restated [Member] | |||
Cash Flows from Operating Activities | |||
Net loss | (19,809) | (54,982) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 2,000 | ||
Stock compensation | 4 | ||
Changes in operating assets and liabilities: | |||
Accrued expenses | 4,000 | 2,532 | |
Accrued interest | 279 | (3,400) | |
Net Cash Used in Operating Activities | (15,526) | (47,050) | |
Cash Flows from Investing Activitites | |||
Dsposit on acquisition of real estate | (5,000) | 5,000 | |
Purchase of real estate | (75,000) | ||
Net cash used in investing activities | (5,000) | (70,000) | |
Cash Flows from Financing Activities | |||
Proceeds from note payable | 85,000 | ||
Contribution to capital | 14,000 | 8,900 | |
Proceeds from sales of stock for cash | 36,951 | ||
Net Cash Provided by Financing Activities | 99,000 | 45,851 | |
Net Change in Cash | 78,474 | (71,199) | |
Cash - beginning of reporting period | $ 7,275 | 78,474 | |
Cash - end of reporting period | 78,474 | 7,275 | |
Supplemental disclosure of cash flow information: | |||
Interest paid | |||
Income tax paid | |||
Supplemental disclosure of non-cash investing and financing activities: | |||
Stock subscription receivable | $ 36,951 |