Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2016 | May. 20, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | Terafox Corp. | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Trading Symbol | trfx | |
Amendment Flag | false | |
Entity Central Index Key | 1,626,696 | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 6,440,000 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
TERAFOX CORP. CONDENSED BALANCE
TERAFOX CORP. CONDENSED BALANCE SHEETS (Interim period unaudied) - USD ($) | Mar. 31, 2016 | Sep. 30, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 254 | |
Assets of discontinued operations | 10,000 | |
Total Current Assets | 10,254 | |
Total Assets | 10,254 | |
Current Liabilities | ||
Liabilities of discontinued operations | 6,420 | |
Loan from director | 14,325 | |
Total Current Liabilities | 20,745 | |
Total Liabilities | 20,745 | |
Shareholders' Deficit | ||
Common stock, par value $0.001; 75,000,000 shares authorized, 6,440,000 shares issued and outstanding respectively | $ 6,440 | 6,440 |
Additional paid-in capital | 26,208 | 21,479 |
Accumulated deficit | $ (32,648) | (38,410) |
Total Shareholders' Deficit | (10,491) | |
Total Liabilities and Shareholders' Deficit | $ 10,254 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - $ / shares | Mar. 31, 2016 | Sep. 30, 2015 |
Statement of financial position | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 6,440,000 | 6,440,000 |
Common Stock, Shares Outstanding | 6,440,000 | 6,440,000 |
TERAFOX CORP. CONDENSED STATEME
TERAFOX CORP. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Income statement | |||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 | |
Cost of goods sold | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Operating Expenses | |||||
General and administrative expenses | 2,617 | 19,509 | 9,041 | 25,991 | |
Total operating expenses | 2,617 | 19,509 | 9,041 | 25,991 | |
Loss from continuing operations | (2,617) | (19,509) | (9,041) | (25,991) | |
Discontinued operations | |||||
Income (loss) from discontinued operations (including $0 gain or loss on disposal) | 10,446 | (1,000) | 14,803 | (1,000) | |
Loss before taxes | 7,829 | (20,509) | 14,803 | (26,991) | |
Provision for income taxes | 0 | 0 | |||
Net income (loss) | $ 7,829 | $ (20,509) | $ 5,762 | $ (26,991) | |
Net Income (Loss) Per Share: Basic and Diluted from continuing operations | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Net Income (Loss) Per Share: Basic and Diluted from discontinued operations | [1] | 0 | 0 | 0 | 0 |
Net Loss Per Share: Basic and Diluted | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Number of Common Shares Outstanding: Basic and Diluted | 6,440,000 | 4,899,722 | 6,440,000 | 4,444,918 | |
[1] | denotes income (loss) per share of less than $0.01 / (0.01) |
TERAFOX CORP. CONDENSED STATEM5
TERAFOX CORP. CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 5,762 | $ (26,991) |
(Income) loss from discontinued operations | (14,803) | 1,000 |
Adjustments to reconcile net income (loss) from continuing operations to net cash (used in) continuing operating activities: | ||
Changes in operating assets and liabilities of continuing operations: | 0 | 0 |
Net cash used in operating activities - continuing operations | (9,041) | (25,991) |
Income (loss) from discontinued operations | 14,803 | (1,000) |
Adjustments to reconcile net income (loss) from discontinued operatiions to net cash provided by (used in) discontinued operating activities: | ||
Depreciation expense | 744 | |
Gain on settlement of rent payable | (8,157) | |
Changes in operating assets and liabilities of discontinued operations : | ||
Inventory | (340) | |
Rent payable | 1,737 | 1,000 |
Net cash provided by (used in) operating activities - discontinued operations | 8,787 | |
Cash flows used in operating activities | (254) | (25,991) |
Cash flows from financing activities | ||
Proceeds from sale of common stock | 22,219 | |
Cash flows provided by (used in) financing activities | 22,219 | |
Net increase (decrease) in cash | (254) | (3,672) |
Cash, beginning of the period | 254 | 7,649 |
Cash, end of the period | 3,977 | |
Supplemental Cash Flow Information: | ||
Interest paid | 0 | 0 |
Income taxes paid | 0 | 0 |
Non Cash Investing and Financing Activities | ||
Inventory purchase by way of loan from director | 466 | |
Forgiveness of rent payable | 8,157 | |
Forgiveness of loan from director | 14,791 | $ 14,791 |
Transfer of equipment and inventory to director | $ 10,062 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Business | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 1 - Organization and Nature of Business | NOTE 1 ORGANIZATION AND NATURE OF BUSINESS Terafox Corp. (Terafox, the Company, we, us or our) was incorporated in the State of Nevada on February 26, 2014 to produce flyers, posters and printing images on multiple surfaces, such as glass, leather, plastic, using automated industrial flatbed printing machine. Effective March 16, 2015, a change of control occurred with respect to the Company. Pursuant to a Securities Purchase Agreement entered into by and among the Company, Mr. Aleksey Gagauz (Seller) and Yik Kei Ong (Buyer, as nominee/agent for Smart Mate Limited, a Republic of Seychelles company), Seller assigned, transferred and conveyed to Buyer, as nominee/agent 4,000,000 shares of common stock of Company (Common Stock). As a result of the transaction, Smart Mate Limited owns 4,000,000 shares of common stock of the Company (or 62% of the total issued and outstanding shares of common stock of the Company). On the closing of the above transaction, Mr. Gagauz, the sole officer and director of the Company, resigned in all officer capacities from the Company and Yik Kei Ong was appointed temporary Chief Executive Officer and Chief Financial Officer of the Company and a temporary Director of the Company. Effective immediately after the closing, Mr. Ong resigned in all capacities and Mr. Brian Patrick Foley then was appointed Chief Executive Officer and sole Director of the Company, and Mr. Jennie Pascual Ednalagium was appointed as the Companys Chief Financial Officer, Secretary and Treasurer of the Company. Similarly, effective immediately after the closing the Company permanently ceased its previous operating activities of producing flyers, posters and printing images on multiple surfaces, such as glass, leather, plastic, using an automated industrial flatbed printing machine. Consequently, the Company is now a shell company seeking to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders. |
Note 2 - Going Concern
Note 2 - Going Concern | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 2 - Going Concern | NOTE 2 GOING CONCERN The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company currently has no assets, no business or recurring income which raises substantial doubt about its ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Companys ability to merger with, or acquire, profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. There is no assurance that this series of events will be satisfactorily completed. |
Note 3 - Summary of Signifcant
Note 3 - Summary of Signifcant Accounting Policies | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 3 - Summary of Signifcant Accounting Policies | NOTE 3 SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited financial statements of Company have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended March 31, 2016 are not necessarily indicative of the final results that may be expected for the year ended September 30, 2016. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended September 30, 2015 included in our Form 10-K filed with the SEC. Accounting Basis The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (GAAP accounting). The Company has adopted a September 30 fiscal year end. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash E ui v lents T e C m a c nsi ers all i ly li i inves m e ts wit t e ori i a m ritie o thre m t les to s e q i a le t Inventory Inventories are stated at the lower of cost or market determined on a first-in, first out basis. Following the termination of all its previous operating activities effective March 16, 2016, the Company transferred its remaining inventory to the former sole officer, director and controlling shareholder of the Company. Fair Value of Financial Instruments Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. Accounting Standards Codification (ASC) 820-10 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. ASC 820 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs which reflect a reporting entitys own assumptions about the assumptions that market participants would use for pricing an asset or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method. The Company had no financial instruments as of March 31, 2016. Historically, the Companys financial instruments consisted of cash and cash equivalents and amounts due to a director. The carrying amount of these financial instruments approximated fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Fixed Assets Fixed assets are stated at net book value, cost less depreciation. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the propertys useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removed from the appropriated accounts and the resultant gain or loss is included in net income(loss). Following the termination of all its previous operating activities effective March 16, 2016, the Company transferred its sole fixed asset to the former sole officer, director and controlling shareholder of the Company. Depreciation is provided using the straight-line method over the estimated useful lives of the asset estimated at 6 years. We recognized a depreciation expense of $327 (2015 - $0) and $744 (2015- $0) during the three and six month periods ended March 31, 2016. Accounting for the Impairment of Long-Lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to forecasted undiscounted net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on discounted cash flows, appraised values or management's estimates, depending upon the nature of the assets. The Company did not record any impairment charges related to long-lived assets during three and six month periods ended March 31, 2016 and 2015. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification No. 605, Revenue Recognition (ASC-605), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on managements judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product or servicers has not been delivered or provided or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. Basic Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Companys net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Companys net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There were no such common stock equivalents issued or outstanding during the three and six months ended March 31, 2016 and 2015. Comprehensive Income The Company has which established standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders Equity (Deficit). Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. Since its inception, the Company has not had any transactions that are required to be reported in other comprehensive income. Recent Accounting Pronouncements The Company does not expect the adoption of recently issued, but not yet effective, accounting pronouncements to have a significant impact on the Companys results of operations, financial position or cash flow. |
Note 4- Discontinued Operations
Note 4- Discontinued Operations | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 4- Discontinued Operations | NOTE 4- DISCONTINUED OPERATIONS Effective March 16, 2016, the Company permanently ceased its previous operating activities of producing flyers, posters and printing images on multiple surfaces, such as glass, leather, plastic, using an automated industrial flatbed printing machine. The components of the discontinued operations are as follows: Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Six Months Ended March 31, 2016 Six Months Ended March 31, 2015 Revenue $ 3,300 $ - $ 10,100 $ - Cost of goods sold (317) - (973) - Gross profit 2,983 - 9,127 - Operating expenses: General and administrative 694 1,000 2,481 1,000 Gain on settlement liability (8,157) - (8,157) - Total operating (income) expenses (7,463) 1,000 (5,676) 1,000 Income (loss) from discontinued operations $ 10,446 $ (1,000) $ 14,803 $ (1,000) Effective February 9, 2016, the landlord of our production facility forgave a balance of rent payable due to him of $8,157 and terminated our outstanding lease with him. Accordingly, there was no balance of rent payable outstanding as of March 31, 2016. We recognized this gain on forgiveness on this debt in the income statement as part of income from discontinued activities Effective March 16, 2016, following our permanent cessation of our previous operating activities of producing flyers, posters and printing images on multiple surfaces, such as glass, leather, plastic, using an automated industrial flatbed printing machine, we transferred our equipment with a net book value of $9,256 and inventory with a cost of $806 to our former sole officer, director and controlling shareholder. As the transfer was to a related party, the loss on the assets transferred has been recognized in additional paid in capital rather than in the income statement |
Note 5- Fixed Assets
Note 5- Fixed Assets | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 5- Fixed Assets | NOTE 5- FIXED ASSETS Effective August 2014, the Company purchased an industrial flatbed printing machine model S-SUN C4300 . We started using the machine to generate revenue in October 2015 and consequently commenced depreciation the cost of the flatbed printing machine from that date over an estimated useful life of 6 years. Effective March 16, 2016, following our permanent cessation of our previous operating activities of producing flyers, posters and printing images on multiple surfaces, such as glass, leather, plastic, using an automated industrial flatbed printing machine, we transferred our equipment with a net book value of $9,256 to our former sole officer, director and controlling shareholder. As the transfer was to a related party, the loss on the transfer of the asset transferred has been recognized in additional paid in capital rather than in the income statement We recognized a depreciation expense of $327 (2015 - $0) and $744 (2015- $0) during the three and six month periods ended March 31, 2016. March 31, 2016 September 30, 2015 Fixed assets: Equipment $ - $ 10,000 Less: accumulated depreciation - - Net fixed assets $ - $ 10,000 |
Note 6 - Loan From Director
Note 6 - Loan From Director | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 6 - Loan From Director | NOTE 6 LOAN FROM DIRECTOR As of September 2015, our former sole officer, director and controlling shareholder had loaned $14,325 to the Company. The loan is unsecured, non-interest bearing and due on demand. During the six months ended March 31, 2016, the same sole officer, director and controlling shareholder increased his loan to the Company by $466 through payment to a supplier on our behalf for the purchase of inventory. Effective March 16, 2016, the former sole officer, director and controlling shareholder forgave all amounts due to him which amounted to $14,791. The gain on the forgiveness of the loan has been recognized in additional paid in capital rather than in the income statement as the loan was with a related party. |
Note 7 - Shareholders' Deficit
Note 7 - Shareholders' Deficit | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 7 - Shareholders' Deficit | NOTE 7 SHAREHOLDERS DEFICIT Common Stock The Company has 75,000,000, $0.001 par value shares of common stock authorized. On June 27, 2014, the Company issued 4,000,000 shares of common stock to a former officer and director for cash proceeds of $4,000 at $0.001 per share. During January 2015, the Company has issued 285,000 shares of common stock for cash proceeds of $2,759 at $0.01 per share. During February 2015, the Company has issued 1,275,000 shares of common stock for cash proceeds of $12,400 at $0.01 per share. During March 2015, the Company has issued 720,000 shares of common stock for cash proceeds of $7,160 at $0.01 per share. During April 2015, the Company has issued 160,000 shares of common stock for cash proceeds of $1,600 at $0.01 per share. There were 6,440,000 shares of common stock issued and outstanding as of March 31, 2016 and September 2015. Additional Paid in Equity Effective March 16, 2016, following our permanent cessation of our previous operating activities of producing flyers, posters and printing images on multiple surfaces, such as glass, leather, plastic, using automated industrial flatbed printing machine, we transferred our equipment with a net book value of $9,256 and inventory with a cost of $806 to our former sole officer, director and controlling shareholder. As the transfer was to a related party, the loss on the assets transferred has been recognized in additional paid in capital rather than in the income statement Further, on March 16, 2016, our former sole officer, director and controlling shareholder forgave all amounts due to him which amounted to $14,791. The gain on the forgiveness of the loan has been recognized in additional paid in capital rather than in the income statement as the loan was with a related party. |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 8 - Commitments and Contingencies | NOTE 8 COMMITMENTS AND CONTINGENCIES Legal We were not subject to any legal proceedings during the three and six month periods ended March 31, 2016 and none are threatened or pending to the best our knowledge and belief. Contractual Production Space On July 1, 2014, the Company has entered in a two year production space lease agreement started February 1, 2015. Annual rental fees for first year will be $6,000 and $5,400 for the second year. On September 3, 2014, by mutual agreement the parties have decided that the lease agreement will terminate on October 31, 2015. On August 31, 2015, the Company signed a new two years Lease Agreement (the Agreement). For the first and second year of the Agreement, the annual rental fee was $3,360, or $280 per month. Effective February 9, 2016, our landlord forgave the balance of rent payable due to him of $8,157 and terminated our outstanding lease with him. Accordingly, there was no balance of rent payable outstanding as of March 31, 2016. We recognized this gain on forgiveness on this debt in the income statement as part of income from discontinued activities. Office Space The Companys office space has been provided by our former sole officer, director and controlling shareholder without charge. Such costs were immaterial to the financial statements and accordingly are not reflected herein. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 9 - Income Taxes | NOTE 9 INCOME TAXES As of March 31 2016, the Company had net operating loss carry forwards of approximately $32,648 ($38,410 as of September 30, 2015) that may be available to reduce future years taxable income in varying amounts through 2031. Following the Companys change of control effective May 16, 2016, due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $32,648 for Federal income tax reporting purposes may be subject to annual limitations. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. The provision for Federal income tax consists of the following: Six Months Ended March 31, 2016 March 31, 2015 Federal income tax (liability) benefit attributable to: Current Operations $ (1,823) $ 9,177 Less: brought forward tax losses / (valuation allowance) 1,823 (9,177) Net provision for Federal income taxes $ 0 $ 0 The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows: March 31, 2016 September 30, 2015 Deferred tax asset attributable to: Net operating loss carryover $ 11,100 $ 13,059 Less: valuation allowance (11,100) (13,059) Net deferred tax asset $ 0 $ 0 |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 6 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 10 - Subsequent Events | NOTE 10 SUBSEQUENT EVENTS The Company evaluated subsequent events from March 31, 2016 through the date these financial statements were issued. There have been no subsequent events after March 31, 2016 for which disclosure is required. |
Note 3 - Summary of Signifcan16
Note 3 - Summary of Signifcant Accounting Policies: Basis of Presentation (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Basis of Presentation | Basis of presentation The accompanying unaudited financial statements of Company have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended March 31, 2016 are not necessarily indicative of the final results that may be expected for the year ended September 30, 2016. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended September 30, 2015 included in our Form 10-K filed with the SEC. |
Note 3 - Summary of Signifcan17
Note 3 - Summary of Signifcant Accounting Policies: Accounting Basis (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Accounting Basis | Accounting Basis The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (GAAP accounting). The Company has adopted a September 30 fiscal year end. |
Note 3 - Summary of Signifcan18
Note 3 - Summary of Signifcant Accounting Policies: Use of Estimates (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note 3 - Summary of Signifcan19
Note 3 - Summary of Signifcant Accounting Policies: Cash and Cash Equivalents (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash E ui v lents T e C m a c nsi ers all i ly li i inves m e ts wit t e ori i a m ritie o thre m t les to s e q i a le t |
Note 3 - Summary of Signifcan20
Note 3 - Summary of Signifcant Accounting Policies: Inventory (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Inventory | Inventory Inventories are stated at the lower of cost or market determined on a first-in, first out basis. Following the termination of all its previous operating activities effective March 16, 2016, the Company transferred its remaining inventory to the former sole officer, director and controlling shareholder of the Company. |
Note 3 - Summary of Signifcan21
Note 3 - Summary of Signifcant Accounting Policies: Fair Value of Financial Instruments (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. Accounting Standards Codification (ASC) 820-10 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. ASC 820 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs which reflect a reporting entitys own assumptions about the assumptions that market participants would use for pricing an asset or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method. The Company had no financial instruments as of March 31, 2016. Historically, the Companys financial instruments consisted of cash and cash equivalents and amounts due to a director. The carrying amount of these financial instruments approximated fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. |
Note 3 - Summary of Signifcan22
Note 3 - Summary of Signifcant Accounting Policies: Fixed Assets (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Fixed Assets | Fixed Assets Fixed assets are stated at net book value, cost less depreciation. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the propertys useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removed from the appropriated accounts and the resultant gain or loss is included in net income(loss). Following the termination of all its previous operating activities effective March 16, 2016, the Company transferred its sole fixed asset to the former sole officer, director and controlling shareholder of the Company. Depreciation is provided using the straight-line method over the estimated useful lives of the asset estimated at 6 years. We recognized a depreciation expense of $327 (2015 - $0) and $744 (2015- $0) during the three and six month periods ended March 31, 2016. |
Note 3 - Summary of Signifcan23
Note 3 - Summary of Signifcant Accounting Policies: Accounting For The Impairment of Long-lived Assets (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Accounting For The Impairment of Long-lived Assets | Accounting for the Impairment of Long-Lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to forecasted undiscounted net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on discounted cash flows, appraised values or management's estimates, depending upon the nature of the assets. The Company did not record any impairment charges related to long-lived assets during three and six month periods ended March 31, 2016 and 2015. |
Note 3 - Summary of Signifcan24
Note 3 - Summary of Signifcant Accounting Policies: Income Taxes (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Income Taxes | Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. |
Note 3 - Summary of Signifcan25
Note 3 - Summary of Signifcant Accounting Policies: Revenue Recognition (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification No. 605, Revenue Recognition (ASC-605), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on managements judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product or servicers has not been delivered or provided or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. |
Note 3 - Summary of Signifcan26
Note 3 - Summary of Signifcant Accounting Policies: Stock-based Compensation (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Stock-based Compensation | Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. |
Note 3 - Summary of Signifcan27
Note 3 - Summary of Signifcant Accounting Policies: Basic Income (loss) Per Share (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Basic Income (loss) Per Share | Basic Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Companys net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Companys net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There were no such common stock equivalents issued or outstanding during the three and six months ended March 31, 2016 and 2015. |
Note 3 - Summary of Signifcan28
Note 3 - Summary of Signifcant Accounting Policies: Comprehensive Income (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Comprehensive Income | Comprehensive Income The Company has which established standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders Equity (Deficit). Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. Since its inception, the Company has not had any transactions that are required to be reported in other comprehensive income. |
Note 3 - Summary of Signifcan29
Note 3 - Summary of Signifcant Accounting Policies: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company does not expect the adoption of recently issued, but not yet effective, accounting pronouncements to have a significant impact on the Companys results of operations, financial position or cash flow. |
Note 4- Discontinued Operatio30
Note 4- Discontinued Operations: Disposal Groups, Including Discontinued Operations (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Disposal Groups, Including Discontinued Operations | Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Six Months Ended March 31, 2016 Six Months Ended March 31, 2015 Revenue $ 3,300 $ - $ 10,100 $ - Cost of goods sold (317) - (973) - Gross profit 2,983 - 9,127 - Operating expenses: General and administrative 694 1,000 2,481 1,000 Gain on settlement liability (8,157) - (8,157) - Total operating (income) expenses (7,463) 1,000 (5,676) 1,000 Income (loss) from discontinued operations $ 10,446 $ (1,000) $ 14,803 $ (1,000) |
Note 5- Fixed Assets_ Property,
Note 5- Fixed Assets: Property, Plant and Equipment (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Property, Plant and Equipment | March 31, 2016 September 30, 2015 Fixed assets: Equipment $ - $ 10,000 Less: accumulated depreciation - - Net fixed assets $ - $ 10,000 |
Note 9 - Income Taxes_ Schedule
Note 9 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | Six Months Ended March 31, 2016 March 31, 2015 Federal income tax (liability) benefit attributable to: Current Operations $ (1,823) $ 9,177 Less: brought forward tax losses / (valuation allowance) 1,823 (9,177) Net provision for Federal income taxes $ 0 $ 0 |
Note 9 - Income Taxes_ Schedu33
Note 9 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | March 31, 2016 September 30, 2015 Deferred tax asset attributable to: Net operating loss carryover $ 11,100 $ 13,059 Less: valuation allowance (11,100) (13,059) Net deferred tax asset $ 0 $ 0 |
Note 3 - Summary of Signifcan34
Note 3 - Summary of Signifcant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 |
Details | ||
Cash and cash equivalents | $ 254 | $ 254 |
Note 3 - Summary of Signifcan35
Note 3 - Summary of Signifcant Accounting Policies: Fixed Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2016 | Mar. 31, 2016 | |
Details | ||
Depreciation expense | $ 327 | $ 744 |
Note 4- Discontinued Operatio36
Note 4- Discontinued Operations: Disposal Groups, Including Discontinued Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||||
Disposal Group, Including Discontinued Operation, Revenue | $ 3,300 | $ 10,100 | ||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | (317) | (973) | ||
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 2,983 | 9,127 | ||
Disposal Group, Including Discontinued Operation, General and Administrative Expense | 694 | $ 1,000 | 2,481 | $ 1,000 |
Disposal Group, Including Discontinued Operation, Other Income | (8,157) | (8,157) | ||
Disposal Group, Including Discontinued Operation, Operating Expense | (7,463) | 1,000 | (5,676) | 1,000 |
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | $ 10,446 | $ (1,000) | $ 14,803 | $ (1,000) |
Note 4- Discontinued Operatio37
Note 4- Discontinued Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2016 | Mar. 31, 2016 | |
Details | ||
Forgiveness of rent payable | $ 8,157 | $ 8,157 |
Equipment transferred to related party, net value | 9,256 | |
Equipment transferred to related party, inventory cost | $ 806 |
Note 5- Fixed Assets (Details)
Note 5- Fixed Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2016 | Mar. 31, 2016 | |
Details | ||
Equipment transferred to related party, net value | $ 9,256 | |
Depreciation expense | $ 327 | $ 744 |
Note 6 - Loan From Director (De
Note 6 - Loan From Director (Details) - USD ($) | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | |
Loan from director | $ 14,325 | ||
Forgiveness of loan from director | $ 14,791 | $ 14,791 | |
Loans from related party | |||
Loan from director | $ 466 | 14,325 | |
Forgiveness | |||
Forgiveness of loan from director | $ 14,791 |
Note 7 - Shareholders' Deficit
Note 7 - Shareholders' Deficit (Details) - USD ($) | Jun. 27, 2014 | Apr. 30, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Jan. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 |
Details | |||||||||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 | 75,000,000 | ||||||
Common Stock, Par Value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Stock Issued During Period, Shares, New Issues | 4,000,000 | 160,000 | 720,000 | 1,275,000 | 285,000 | ||||
Stock Issued During Period, Value, New Issues | $ 4,000 | $ 1,600 | $ 7,160 | $ 12,400 | $ 2,759 | ||||
Shares Issued, Price Per Share | $ 0.001 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common Stock, Shares Outstanding | 6,440,000 | 6,440,000 | 6,440,000 | ||||||
Equipment transferred to related party, net value | $ 9,256 | ||||||||
Equipment transferred to related party, inventory cost | $ 806 | ||||||||
Forgiveness of loan from director | $ 14,791 | $ 14,791 |
Note 8 - Commitments and Cont41
Note 8 - Commitments and Contingencies (Details) | 6 Months Ended |
Mar. 31, 2016 | |
Legal | |
Description of Legal Proceedings | Legal We were not subject to any legal proceedings during the three and six month periods ended March 31, 2016 and none are threatened or pending to the best our knowledge and belief. |
Contractual - Production Space | |
Description of Lessee Leasing Arrangements, Capital Leases | Production Space On July 1, 2014, the Company has entered in a two year production space lease agreement started February 1, 2015. Annual rental fees for first year will be $6,000 and $5,400 for the second year. On September 3, 2014, by mutual agreement the parties have decided that the lease agreement will terminate on October 31, 2015. On August 31, 2015, the Company signed a new two years Lease Agreement (the Agreement”). For the first and second year of the Agreement, the annual rental fee was $3,360, or $280 per month. Effective February 9, 2016, our landlord forgave the balance of rent payable due to him of $8,157 and terminated our outstanding lease with him. Accordingly, there was no balance of rent payable outstanding as of March 31, 2016. We recognized this gain on forgiveness on this debt in the income statement as part of income from discontinued activities. |
Office Space | |
Description of Related Party Leasing Arrangements | Office Space The Company’s office space has been provided by our former sole officer, director and controlling shareholder without charge. Such costs were immaterial to the financial statements and accordingly are not reflected herein. |
Note 9 - Income Taxes (Details)
Note 9 - Income Taxes (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Details | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 32,648 | $ 38,410 |
Deferred Tax Assets, Operating Loss Carryforwards | $ 32,648 | $ 38,410 |
Statutory Federal income tax rate | 34.00% |
Note 9 - Income Taxes_ Schedu43
Note 9 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ (1,823) | $ 9,177 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 1,823 | (9,177) |
Provision for Income Taxes | $ 0 | $ 0 |
Note 9 - Income Taxes_ Schedu44
Note 9 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | Mar. 31, 2016 | Sep. 30, 2015 |
Details | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 11,100 | $ 13,059 |
Deferred Tax Assets, Valuation Allowance | (11,100) | (13,059) |
Deferred Tax Assets, Net of Valuation Allowance | $ 0 | $ 0 |