Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Feb. 29, 2020 | Apr. 13, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | Photozou Holdings, Inc. | |
Entity Central Index Key | 0001627469 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Filer Category | Non-accelerated Filer | |
Is Entity's Reporting Status Current? | Yes | |
Document Type | 10-Q | |
Document Period End Date | Feb. 29, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Common Stock, Shares Outstanding | 8,000,000 | |
Entity Emerging Growth Company | true | |
Smaller Reporting Company | true | |
Transition Period | false | |
Entity Shell Company | false | |
Interactive Data Current | Yes | |
File Number | 000-55806 | |
State of Incorporation | DE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Feb. 29, 2020 | Nov. 30, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 33,561 | $ 28,398 |
Accounts receivable - trade | 12,710 | 18,840 |
Prepaid and other current assets | 9,936 | 3,133 |
Inventories | 145,131 | 69,142 |
TOTAL CURRENT ASSETS | 201,338 | 119,513 |
Property, plant and equipment | ||
Software | 1,999 | 1,972 |
Less accumulated depreciation and amortization | (1,066) | (953) |
TOTAL PROPERTY, PLANT AND EQUIPMENT | 933 | 1,019 |
TOTAL ASSETS | 202,271 | 120,532 |
Current liabilities: | ||
Accrued expenses | 337 | 389 |
Due to related party | 433,391 | 319,336 |
TOTAL LIABILITIES | 433,728 | 319,725 |
Stockholders' Deficit: | ||
Preferred stock ($.0001 par value, 20,000,000 shares authorized; none issued and outstanding as of February 29, 2020 and November 30, 2019) | ||
Common stock ($.0001 par value, 500,000,000 shares authorized, 8,000,000 shares and 8,000,000 shares issued and outstanding as of February 29, 2020 and November 30, 2019, respectively) | 800 | 800 |
Additional paid-in capital | 50,030 | 50,030 |
Accumulated deficit | (277,685) | (248,489) |
Accumulated other comprehensive loss | (4,602) | (1,534) |
Total stockholders' deficit | (231,457) | (199,193) |
Total liabilities and stockholders' deficit | $ 202,271 | $ 120,532 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Feb. 29, 2020 | Nov. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ .0001 | $ .0001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ .0001 | $ .0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 8,000,000 | 8,000,000 |
Common stock, shares outstanding | 8,000,000 | 8,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Revenues | ||
Revenue from cameras sold | $ 58,343 | $ 60,532 |
Service revenue | 2,611 | 8,602 |
Total revenues | 60,954 | 69,134 |
Cost of revenues | 53,007 | 58,666 |
Gross profit | 7,947 | 10,468 |
Operating Expenses: | ||
General and administrative expenses | 37,210 | 27,733 |
Total operating expenses | 37,210 | 27,733 |
Other Income | 67 | |
Net loss | (29,196) | (17,265) |
Foreign currency translation adjustment | (3,068) | (2,168) |
TOTAL COMPREHENSIVE LOSS | $ (32,264) | $ (19,433) |
BASIC AND DILUTED NET LOSS PER COMMON STOCK | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF COMMON STOCK OUTSTANDING, BASIC AND DILUTED | 8,000,000 | 8,000,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders Deficit (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Other Comprehensive Income | Total |
Beginning Balance (Shares) at Nov. 30, 2018 | 8,000,000 | ||||
Beginning Balance (Monetary) at Nov. 30, 2018 | $ 800 | $ 32,396 | $ (158,721) | $ 2,626 | $ (122,899) |
Net loss | (17,265) | (17,265) | |||
Foreign currency translation | (2,168) | (2,168) | |||
Ending Balance (Shares) at Feb. 28, 2019 | 8,000,000 | ||||
Ending Balance (Monetary) at Feb. 28, 2019 | $ 800 | 32,396 | (175,986) | 458 | (142,332) |
Beginning Balance (Shares) at Nov. 30, 2019 | 8,000,000 | ||||
Beginning Balance (Monetary) at Nov. 30, 2019 | $ 800 | 50,030 | (248,489) | (1,534) | (199,193) |
Net loss | (29,196) | (29,196) | |||
Foreign currency translation | (3,068) | (3,068) | |||
Ending Balance (Shares) at Feb. 28, 2020 | 8,000,000 | ||||
Ending Balance (Monetary) at Feb. 28, 2020 | $ 800 | $ 50,030 | $ (277,685) | $ (4,602) | $ (231,457) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (29,196) | $ (17,265) |
Adjustments to reconcile net loss to net cash: | ||
Depreciation and amortization expenses | 99 | 107 |
Changes in operating assets and liabilities: | ||
Accounts receivable - trade | 6,301 | (423) |
Prepaid and other current assets | (6,688) | 69 |
Inventories | (74,124) | (15,355) |
Accrued expenses | 26,131 | (74) |
Deferred Revenue | 12,730 | |
Net cash used in operating activities | (77,477) | (20,211) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from due to related party | 82,232 | 22,359 |
Net cash provided by financing activities | 82,232 | 22,359 |
Net effect of exchange rate on cash | 408 | (2,203) |
Net change in cash and cash equivalents | 5,163 | (55) |
Cash and cash equivalents - beginning of period | 28,398 | 5,923 |
Cash and cash equivalents - end of period | 33,561 | 5,868 |
NON-CASH TRANSACTIONS | ||
Expense paid by related party on behalf of the Company | 26,187 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid | ||
Income taxes paid |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 3 Months Ended |
Feb. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | NOTE 1 - ORGANIZATION, DESCRIPTION OF BUSINESS Photozou Holdings, Inc., (the “Company”) was incorporated under the laws of the State of Delaware on September 29, 2014. On May 31, 2018, the Company entered into and consummated a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Koichi Ishizuka, our President, CEO, and Director. At the closing of the Stock Purchase Agreement, Koichi Ishizuka transferred to the Company, 10,000 shares of common stock of Photozou Koukoku Co., Ltd., a Japan corporation (“Photozou Koukoku”), which represented all of its issued and outstanding shares, in consideration of 1,000,000 JPY ($9,190 USD as of the exchange rate May 31, 2018). The Company has since gained a 100% interest in the issued and outstanding shares of Photozou Koukoku’s common stock and Photozou Koukoku is now a wholly owned subsidiary of the Company. The Company and Photozou Koukoku were under common control at the time of the acquisition. Photozou Koukoku was incorporated under the laws of Japan on March 14, 2017. Currently, Photozou Koukoku is headquartered in Tokyo, Japan. The Company offers advertising services and sells used cameras. Our principal executive offices are located at 4-30-4F, Yotsuya, Shinjuku-ku, Tokyo, 160-0004, Japan. The Company has elected November 30th as its fiscal year end. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 3 Months Ended |
Feb. 29, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the financial statements of its wholly-owned subsidiary, Photozou Koukoku. Intercompany transactions are eliminated. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three months period, have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms “Company”, “we”, “us” or “our” mean the Company. Certain information and note disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America has been omitted from these statements pursuant to such accounting principles and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our consolidated financial statements for the year ended November 30, 2019, included in our Form 10-K. USE OF ESTIMATES The presentation 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 disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates and assumptions made by management include going concern, allowance for doubtful accounts, valuation allowance on deferred income tax, inventory obsolescence and sales allowance. Operating results in the future could vary from the amounts derived from management's estimates and assumptions. RELATED PARTY TRANSACTION The Company accounts for related party transactions in accordance with ASC 850 ("Related Party Disclosures"). A related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. FOREIGN CURRENCY TRANSLATION The Company maintains its books and record in its local currency, Japanese YEN (“JPY”), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. Shareholders’ equity is translated at historical exchange rate at the time of transaction. The gains and losses resulting from translation of financial statements are recorded as a separate component of accumulated other comprehensive income within the statements of shareholders’ equity. Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates: February 29, 2020 February 28, 2019 Current JPY: US$1 exchange rate 108.07 111.37 Average JPY: US$1 exchange rate 109.45 110.48 COMPREHENSIVE INCOME OR LOSS ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying consolidated statements of shareholders’ equity consists of changes in unrealized gains and losses on foreign currency translation. REVENUE RECOGNITION AND DEFERRED REVENUE Starting December 1, 2018 the Company adopted ASC 606 - Revenue from contracts with Customers: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. Revenue for used cameras is recognized when the cameras are delivered to the customer. In case of the service for the photo contest, the Company applies the percentage of completion method and unfinished part of collected cash is accounted as a deferred revenue. There is no deferred revenue as of February 29, 2020 or November 30, 2019. Disaggregated revenue of the Company is as follows: For the three months Percentage of For the three months Percentage of ended total revenues ended total revenues February 29, 2020 February 28, 2019 Revenue from cameras sold $ 58,343 95.7% 60,532 87.6% Service revenues 2,611 4.3% 8,602 12.4% Total 60,954 100% 69,134 100% RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and issued subsequent amendments to the initial guidance or implementation guidance including ASU 2017-13, 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively, including ASU 2016-02, “ASC 842”). Under ASC 842, lessees will be required to recognize all leases at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company adopted the standard on December 1, 2019 on a modified retrospective basis and did not restate comparable periods. The Company elected the package of practical expedients permitted under the transition guidance, which allows the Company to carry forward the historical lease classification, the assessment whether a contract is or contains a lease and initial direct costs for any leases that exist prior to adoption of the new standard. The Company also elected the practical expedient not to separate lease and non-lease components for certain classes of underlying assets and the short-term lease exemption for contracts with lease terms of 12 months or less. The Company does not have any operating lease over 12 months. The adoption of this standard did not impact the Company’s consolidated financial statements. |
Note 3 - Going Concern
Note 3 - Going Concern | 3 Months Ended |
Feb. 29, 2020 | |
Going Concern [Abstract] | |
Going Concern | NOTE 3 - GOING CONCERN The accompanying consolidated financial statements are prepared on a basis of accounting assuming that the Company is a going concern that contemplates realization of assets and satisfaction of liabilities in the normal course of business. The Company is in the early stage of operations and has reoccurring net losses and negative cash flows from operating activities. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue-producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Note 4 - Related Party Transact
Note 4 - Related Party Transactions | 3 Months Ended |
Feb. 29, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 4 - RELATED-PARTY TRANSACTIONS For the three months ended February 29, 2020, Photozou Co., Ltd., a company controlled by Koichi Ishizuka, CEO, advanced to the Company $82,232 and paid expense on behalf of the Company in an amount of $26,187. The total due to related party as of February 29, 2020 and November 30, 2019 were $433,391 and $319,336, respectively, and are unsecured, due on demand and non-interest bearing. For the three months ended February 28, 2019, the Company borrowed $22,359 from Photozou Co., Ltd. For the three months ended February 29, 2020 and February 28, 2019, the Company rented office space and storage space from the Company’s officer free of charge. |
Note 5 - Shareholder Equity
Note 5 - Shareholder Equity | 3 Months Ended |
Feb. 29, 2020 | |
Equity [Abstract] | |
Shareholder Equity | NOTE 5 – SHAREHOLDER EQUITY Preferred Stock The authorized preferred stock of the Company consists of 20,000,000 shares with a par value of $0.0001. The Company has not issued any shares for the three months ended February 29, 2020 and February 28, 2019. Common Stock The authorized common stock of the Company consists of 500,000,000 shares with a par value of $0.0001. There were 8,000,000 shares of common stock issued and outstanding as of February 29, 2020 and November 30, 2019. Pertinent Rights and Privileges Holders of shares of common stock are entitled to one vote for each share held to be used at all stockholders’ meetings and for all purposes including the election of directors. Common stock does not have cumulative voting rights. Nor does it have preemptive or preferential rights to acquire or subscribe for any unissued shares of any class of stock. |
Note 6 - Concentration
Note 6 - Concentration | 3 Months Ended |
Feb. 29, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentration | NOTE 6 - CONCENTRATION Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of purchases of inventory, accounts receivable and revenue. Concentration of Purchases Net purchases from suppliers accounting for 10% or more of total purchases are as follows: For the three months ended February 29, 2020, 100% of the inventories of cameras were purchased from one supplier whose name was Digital Reuse in the amount of $132,432. For the three months ended February 28, 2019, 98.3% of the inventories of cameras were purchased from one supplier whose name was Digital Reuse in the amount of $72,125. For the three months ended February 29, 2020 and February 28, 2019, 100% of the purchase of inventory was handled by Mr. Takaharu Ogami who the Company has a service agreement with to sell and buy used cameras on behalf of the Company. Concentration of Revenues Net revenues from customers accounting for 10% or more of total revenues are as follows: For the three months ended February 29, 2020, 67.0% of the revenue from the sale of cameras was generated from Amazon in the amount of $39,088. For the three months ended February 28, 2019, 85.9% of the revenue from the sale of cameras was generated from one customer whose name was Hiroshi Funada in the amount of $51,985. Mr. Funada is an independent businessman for resale business. For the three months ended February 29, 2020 and February 28, 2019, 100% of the revenue from the sale of cameras was handled by Takaharu Ogami who the Company has a service agreement with to sell and buy used cameras on behalf of the Company. |
Note 7 - Commitments
Note 7 - Commitments | 3 Months Ended |
Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 7 – COMMITMENTS On May 1, 2017, the Company entered into an agreement with Mr. Takahara Ogami, whereas he is to act as an independent contractor to Photozou Koukoku. The services he is to provide include, but are not limited to, handling the operations of Photozou Koukoku's used camera retail business through purchasing, selling and delivery of cameras by Mr. Ogami. He is compensated JPY 400,000 ($3,600) a month. Unless either party expresses, in writing, their intention to terminate the agreement then it shall run another three months automatically. Mr. Ogami is responsible for the sale and shipping of the cameras at the expense of Photozou Koukoku. Photozou Koukoku is the legal owner of the camera(s) until the point of sale to the purchaser(s). |
Note 8 - Subsequent Events
Note 8 - Subsequent Events | 3 Months Ended |
Feb. 29, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8 - SUBSEQUENT EVENTS From March 1, 2020 through the current date, the Company borrowed $11,915 from Photozou Co., Ltd., a Company controlled by Koichi Ishizuka, CEO. This debt is non-interest bearing, unsecured, and due on demand. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the financial statements of its wholly-owned subsidiary, Photozou Koukoku. Intercompany transactions are eliminated. |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three months period, have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms “Company”, “we”, “us” or “our” mean the Company. Certain information and note disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America has been omitted from these statements pursuant to such accounting principles and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our consolidated financial statements for the year ended November 30, 2019, included in our Form 10-K. |
USE OF ESTIMATES | USE OF ESTIMATES The presentation 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 disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates and assumptions made by management include going concern, allowance for doubtful accounts, valuation allowance on deferred income tax, inventory obsolescence and sales allowance. Operating results in the future could vary from the amounts derived from management's estimates and assumptions. |
RELATED PARTY TRANSACTION | RELATED PARTY TRANSACTION The Company accounts for related party transactions in accordance with ASC 850 ("Related Party Disclosures"). A related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION The Company maintains its books and record in its local currency, Japanese YEN (“JPY”), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. Shareholders’ equity is translated at historical exchange rate at the time of transaction. The gains and losses resulting from translation of financial statements are recorded as a separate component of accumulated other comprehensive income within the statements of shareholders’ equity. Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates: February 29, 2020 February 28, 2019 Current JPY: US$1 exchange rate 108.07 111.37 Average JPY: US$1 exchange rate 109.45 110.48 |
COMPREHENSIVE INCOME OR LOSS | COMPREHENSIVE INCOME OR LOSS ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying consolidated statements of shareholders’ equity consists of changes in unrealized gains and losses on foreign currency translation. |
REVENUE RECOGNITION AND DEFERRED REVENUE | REVENUE RECOGNITION AND DEFERRED REVENUE Starting December 1, 2018 the Company adopted ASC 606 - Revenue from contracts with Customers: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. Revenue for used cameras is recognized when the cameras are delivered to the customer. In case of the service for the photo contest, the Company applies the percentage of completion method and unfinished part of collected cash is accounted as a deferred revenue. There is no deferred revenue as of February 29, 2020 or November 30, 2019. Disaggregated revenue of the Company is as follows: For the three months Percentage of For the three months Percentage of ended total revenues ended total revenues February 29, 2020 February 28, 2019 Revenue from cameras sold $ 58,343 95.7% 60,532 87.6% Service revenues 2,611 4.3% 8,602 12.4% Total 60,954 100% 69,134 100% |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and issued subsequent amendments to the initial guidance or implementation guidance including ASU 2017-13, 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively, including ASU 2016-02, “ASC 842”). Under ASC 842, lessees will be required to recognize all leases at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company adopted the standard on December 1, 2019 on a modified retrospective basis and did not restate comparable periods. The Company elected the package of practical expedients permitted under the transition guidance, which allows the Company to carry forward the historical lease classification, the assessment whether a contract is or contains a lease and initial direct costs for any leases that exist prior to adoption of the new standard. The Company also elected the practical expedient not to separate lease and non-lease components for certain classes of underlying assets and the short-term lease exemption for contracts with lease terms of 12 months or less. The Company does not have any operating lease over 12 months. The adoption of this standard did not impact the Company’s consolidated financial statements. |
Foreign Currency Translation (T
Foreign Currency Translation (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Foreign Currency Translation | |
Foreign Currency Translation Table | Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates: February 29, 2020 February 28, 2019 Current JPY: US$1 exchange rate 108.07 111.37 Average JPY: US$1 exchange rate 109.45 110.48 |
Disaggregated Revenue (Tables)
Disaggregated Revenue (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Disaggregated Revenue | |
Disaggregated revenue of the Company | Disaggregated revenue of the Company is as follows: For the three months Percentage of For the three months Percentage of ended total revenues ended total revenues February 29, 2020 February 28, 2019 Revenue from cameras sold $ 58,343 95.7% 60,532 87.6% Service revenues 2,611 4.3% 8,602 12.4% Total 60,954 100% 69,134 100% |
Due to Related Party (Details)
Due to Related Party (Details) - USD ($) | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | |
Due To Related Party | |||
Due to related party | $ 433,391 | $ 319,336 | |
Amount Advanced/Borrowed from Photozou Co., Ltd | $ 82,232 | $ 22,359 |
Concentration of Purchases (Det
Concentration of Purchases (Details) - USD ($) | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Concentration Of Purchases Of Inventory | ||
Percentage of Inventory Purchased from One Supplier (Digital Reuse) | 100.00% | 98.30% |
Dollar Value of Cameras Purchased from One Supplier (Digital Reuse) | $ 132,432 | $ 72,125 |
Concentration of Revenues (Deta
Concentration of Revenues (Details) - USD ($) | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Concentration Of Revenues For May 31 2019 | ||
Percentage of net revenues from customers accounting for 10% or more of total revenues | 67.00% | 85.90% |
Revenues from sales of Cameras from customers accounting for 10% or more of total revenues | $ 39,088 | $ 51,985 |
Borrowings (Details)
Borrowings (Details) | 1 Months Ended |
Apr. 13, 2020USD ($) | |
Borrowings | |
Borrowings from Photozou Co., Ltd | $ 11,915 |