| NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and of its wholly-owned subsidiary, Photozou Koukoku. Intercompany
transactions are eliminated. 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. Actual 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. CASH EQUIVALENTS The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. ACCOUNTS RECEIVABLE AND CREDIT POLICIES Accounts receivable are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate
for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. If there
is a claim for a defect of product after within four days after arrival of goods, the Company shall accept a goods return. Uncollectible
accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a balance
is uncollectible. As of November 30, 2023, the Company expects to collect these balances completely and therefore has not created any
allowance for it. As of November 30, 2023 and 2022, the Company had
account receivable in the amount of $ 4,594 7,981 SALES TAX RECOVERABLE As of November 30, 2023 and 2022, the Company had
sales tax recoverable in the amount of $ 14,771 10,978 INVENTORY Inventories, consisting of used cameras, are primarily
accounted for using the specific identification method, and are valued at the lower of cost or net realizable value. This valuation requires
the Company to make judgments, based on currently-available information, about the likely method of disposition, such as through sales
to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. The
Company routinely evaluates its inventories for their salability and for indications of obsolescence to determine if inventories should
be written down to market value. The write down for obsolescence is charged to cost of revenue from cameras sold in the consolidated statements
of operations and comprehensive loss. At the point of the loss recognition, a new, lower cost basis for that inventory is established,
and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. As of November 30, 2023 and 2022, the Company held inventory
comprised solely of used cameras in the amount of $ 68,466 58,780 7,089 11,900 SOFTWARE The Company capitalizes certain costs related to obtaining or developing computer software for internal use. Costs incurred during the
application development stage internally or externally are capitalized and amortized on a straight-line basis over the expected useful
life of two to five years since the computer software is ready for its intended use. The application development stage includes design
of chosen path, software configuration and integration, coding, hardware installation and testing. Costs incurred during the preliminary
project stage and post implementation-operation stage are expensed as incurred. IMPAIRMENT OF LONG-LIVED ASSETS In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate
that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when
the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured
as the difference between the asset’s estimated fair value and its book value. For the years ended November 30, 2023 and 2022, the
Company did not record any impairment charges on long-lived assets. 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. The gains and losses resulting from translation of financial statements are recorded as a separate component
of accumulated other comprehensive loss within the statements of shareholders’ equity. Translation of amounts from the local currency of
the Company into US$1
November 30, 2023 November 30, 2022
Current JPY: US$1 exchange rate 147.07 138.87
Average JPY: US$1 exchange rate 139.88 129.71 - F8 - Table of Contents 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 loss, as presented in the accompanying consolidated statements of changes in shareholders’ deficit
consists of changes in unrealized gains and losses on foreign currency translation. REVENUE RECOGNITION AND
DEFERRED REVENUE The Company recognizes its revenue in accordance with
ASC 606 - Revenue from contracts with Customers. To determine revenue recognition for agreements within the scope of ASC 606, the Company
performs the following five steps: (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 from cameras sold is recognized at a point
in time when the cameras are delivered to the customer. There are two types of service revenue. Revenue for advertising service is recognized
over time when the service is provided to the customers. Revenue for photo session service is recognized at a point of time when service
is provided to the customers at the photo session. Deferred revenue is recorded when consideration is
received from a customer prior to the goods or services were delivered. There was no deferred revenue as of November 30, 2023 or November
30, 2022. Disaggregated revenue by nature of the Company
For the year Percentage of For the year Percentage of
ended total revenues ended total revenues
November 30, 2023 November 30, 2022
Revenue from cameras sold $ 57,436 77.72% 139,974 75.26%
Service revenue 16,465 22.28% 46,017 24.74%
Total 73,901 100% 185,991 100% Disaggregated revenue by geographic of the Company
For the year Percentage of For the year Percentage of
ended total revenues ended total revenues
November 30, 2023 November 30, 2022
Revenue from US $ 52,888 71.57% 139,974 75.26%
Revenue from Japan 21,013 28.43% 46,017 24.74%
Total 73,901 100% 185,991 100% NET LOSS
PER COMMON SHARE Net income per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per
share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted
net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding
shares of common stock during each period. There were no potentially dilutive shares outstanding as of November 30, 2023 and 2022. INCOME TAX The Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets
and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns.
Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets
and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are
reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in the Statements of operations in the period that includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting
Standards Codification ("Section 740-10-25"). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected
to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax
benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the
taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a
position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon
ultimate settlement. CONCENTRATION OF CREDIT RISKS Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents
and accounts receivable. The Company places its cash and cash equivalents with financial institutions. The Company does not require collateral
or other security to support financial instruments subject to credit risks. With respect to trade receivables, the Company routinely assesses
the financial strength of its customers and, as a consequence, believes that the receivable credit risk exposure is limited. RECENT
ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial
Instruments." ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model
to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial
asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition
of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale
debt securities. ASU 2016-13 is effective for smaller reporting companies for annual periods beginning after December 15, 2022, including
interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained
earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is in the process of evaluating
the impact of the adoption of ASU 2016-13 on the Company's financial statements and disclosures. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does
not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position
or results of operations. |
