Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document and Entity Information: | |
Entity Registrant Name | JAREX SOLUTIONS CORP. |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2015 |
Amendment Flag | false |
Entity Central Index Key | 1,627,452 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 6,565,000 |
Entity Filer Category | Smaller Reporting Company |
Entity Current Reporting Status | No |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Statement of Financial Position
Statement of Financial Position - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Assets, Current | ||
Cash and Cash Equivalents, at Carrying Value | $ 12,586 | $ 6,030 |
Assets, Current | 12,586 | 6,030 |
Assets, Noncurrent | ||
Other Assets, Noncurrent | 1,150 | |
Assets | 13,736 | 6,030 |
Liabilities, Noncurrent | ||
Deferred Revenue and Credits, Noncurrent | 2,000 | |
Due to Related Parties, Noncurrent | 3,274 | 274 |
Liabilities | 5,274 | 274 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | ||
Common Stock, Value, Issued | 6,565 | 6,000 |
Additional Paid in Capital, Common Stock | 10,735 | |
Retained Earnings (Accumulated Deficit) | (8,838) | (244) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 8,462 | $ 5,756 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 6,565,000 | 6,000,000 |
Liabilities and Equity | $ 13,736 | $ 6,030 |
Statement of Income
Statement of Income - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Amortization of Deferred Charges | ||
General and Administrative Expense | $ 1,676 | $ 8,594 |
Operating Expenses | 1,676 | 8,594 |
Operating Income (Loss) | (1,676) | (8,594) |
Income Tax Expense (Benefit) | ||
Net Income (Loss) Attributable to Parent | $ (1,676) | $ (8,594) |
Earnings Per Share | ||
Earnings Per Share, Basic | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding, Basic | 6,124,121 | 6,062,403 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2015 - USD ($) | Common Stock | Additional paid-in-capital | Retained Earnings | Total |
Shares issued starting balance at Dec. 31, 2014 | 6,000,000 | 6,000,000 | ||
Stockholders' equity starting balance at Dec. 31, 2014 | $ 6,000 | $ (244) | $ 5,756 | |
Shares issued during period | 565,000 | 565,000 | ||
Net (loss) | (8,594) | $ (8,594) | ||
Adjustment to additional paid-in-capital | $ 0 | $ 10,735 | $ 10,735 | |
Shares issued ending balance at Jun. 30, 2015 | 6,565,000 | 6,565,000 | ||
Stockholders' equity ending balance at Jun. 30, 2015 | $ 6,565 | $ 10,735 | $ (8,838) | $ 8,462 |
Statement of Cash Flows
Statement of Cash Flows | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Net Cash Provided by (Used in) Operating Activities | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (8,594) |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | |
Depreciation | 157 |
Recognition of Deferred Revenue | 2,000 |
Increase (Decrease) in Operating Liabilities | |
Net Cash Provided by (Used in) Operating Activities | (6,437) |
Net Cash Provided by (Used in) Investing Activities | |
Payments to Acquire Property, Plant, and Equipment | (1,307) |
Net Cash Provided by (Used in) Investing Activities | (1,307) |
Net Cash Provided by (Used in) Financing Activities | |
Proceeds from Issuance of Common Stock | 11,300 |
Proceeds from loans | 3,000 |
Net Cash Provided by (Used in) Financing Activities | 14,300 |
Cash and Cash Equivalents, Period Increase (Decrease) | 6,556 |
Cash and Cash Equivalents, at Carrying Value | 6,030 |
Cash and Cash Equivalents, at Carrying Value | $ 12,586 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements: | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | JAREX SOLUTIONS CORP. NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2015 NOTE 1 ORGANIZATION AND DESCRIPTION OF BUSINESS JAREX SOLUTIONS CORP. (the Company, we, us or our) was incorporated under the laws of the State of Nevada, U.S. on October 28, 2014 (Inception). We intend to commence operations in the business of Automatic Number Plate Recognition (ANPR) software development for businesses which have parking zones or access control on their sites. We intend to develop a software based on the ANPR technologies in Latvia. NOTE 2 - GOING CONCERN The financial statements have been prepared 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 has incurred a loss since Inception (October 28, 2014) resulting in an accumulated deficit of $8,838 as of June 30, 2015 and further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the Companys ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating 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. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and/or private placement of common stock. NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited financial statements of Jarex Solutions Corp. have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 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 June 30, 2015 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2015. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the period from October 28, 2014 (inception) to December 31, 2015 included in our Form S-1 filed with the SEC. 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. Development Stage Company The Company is in the development stage as defined under the then current Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 915-205 Development-Stage Entities and among the additional disclosures required as a development stage company are that its financial statements were identified as those of a development stage company, and that the statements of operations, stockholders deficit and cash flows disclosed activity since the date of its Inception (October 28, 2014) as a development stage company. Effective June 10, 2014 FASB changed its regulations with respect to Development Stage Entities and these additional disclosures are no longer required for annual reporting periods beginning after December 15, 2014 with the option for entities to early adopt these new provisions. Consequently these additional disclosures have not been presented in these financial statements. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At June 30, 2015 the Company's bank deposits did not exceed the insured amounts. Fair Value of Financial Instruments ASC 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: Level 1: defined as observable inputs such as quoted prices in active markets; Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of cash, deferred revenue and the Company's loan from shareholder approximates fair value due to their short-term maturity. Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. Property and Equipment Property and equipment are stated at cost and depreciated on the straight line method over the estimated life of the asset, which is 3 years. Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Revenue Recognition The Company will recognize 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 management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Advertising Costs The Companys policy regarding advertising is to expense advertising when incurred. The Company incurred advertising expense of $0 during the three and six month periods ended June 30, 2015. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. As June 30, 2015, the Company has not adopted a stock option plan and has not granted any stock options. Basic Income (Loss) Per Share The Company computes loss per share in accordance with ASC-260, Earnings per Share which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. For the period from October 28, 2014 (Inception) to June 30, 2015 there were no potentially dilutive debt or equity instruments issued or outstanding and any such shares would have been excluded from the computation because they would have been anti-dilutive as the Company incurred losses in this period. Dividends The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during the period presented. Recent Accounting Pronouncements The Company has reviewed all the recent accounting pronouncements issued to date of the issuance of these financial statements, and does not believe any of these pronouncements will have a material impact on the company other than those relating to Development Stage Entities discussed above. NOTE 4 COMMON STOCK The Company has 75,000,000 common shares authorized with a par value of $ 0.001 per share. On December 12, 2014 the Company issued 6,000,000 shares of its common stock at $0.001 per share for total proceeds of $6,000. In June 2015, the Company issued 565,000 shares of its common stock at $0.02 per share to 12 shareholders for total proceeds of $11,300. As of June 30, 2015, the Company had 6,565,000 shares issued and outstanding. NOTE 5 RELATED PARTY TRANSACTIONS In support of the Companys efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders or directors. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances were considered temporary in nature and were not formalized by a promissory note. As of June 30, 2015 the shareholder of the Company advanced the Company $3,274 to cover the Companys operating expenses. The loan is non-interest bearing, due upon demand and unsecured. On December 12, 2014, the Company sold 6,000,000 shares of common stock at a price of $0.001 per share to its director. NOTE 6 UNEARNED REVENUE The Company signed a Software Development Agreement (the Agreement) with a customer, dated February 26, 2015. Jarex Solutions Corp (the Developer) is developing ANPR software for the parking, entry/exit access zone of SIA PIT-STOP.LV (the Client). The Developer is contracted to develop and deliver the ANPR software to the Client, on or before July 31, 2015. The total anticipated software development period is 5 months and the total consideration for the Agreement is $4,000. The consideration for the Agreement is payable as follows $2,000 (50%) on signature of the Agreement and the balance of $2,000 is due upon delivery of the software on or before July 31, 2015. The Developer has to provide additional services and support for the three months following delivery of the software and the Client has until December 31, 2015 to request modifications or extra options. As a result of this Agreement, we have received a cash payment $2,000 during the six month period ended June 30, 2015 which we have recorded as unearned revenue in the period. As of the date of this report, it is believed that the software will not be completed by the scheduled date of July 31, 2015 and that we will require an extra two months, through to September 30, 2015, before the software will be completed for client use. NOTE 7 SUBSEQUENT EVENTS The Company has evaluated subsequent events from June 30, 2015 to the date the financial statements were issued and has determined that there are no items to disclose. |
Uncategorized Items - jarex-201
Label | Element | Value |
Shares issued during period | us-gaap_StockIssuedDuringPeriodSharesOther | 6,000,000 |
Common Stock | ||
Shares issued during period | us-gaap_StockIssuedDuringPeriodSharesOther | 6,000,000 |
Retained Earnings | ||
Net (loss) | us-gaap_NetIncomeLoss | $ (244) |