| NOTE 2 - 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 nine 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, 2023, 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. 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. 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. Translation of amounts from the local currency of
the Company into US$1
May 31, 2024 May
31, 2023
Current JPY: US$1 exchange rate 156.74 139.77
Average JPY: US$1 exchange rate 150.01 133.88 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 other comprehensive income, as presented in the accompanying consolidated statements of 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 for used 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 services are 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 May 31, 2024 or November
30, 2023. Disaggregated revenue by nature of the Company
For the six months Percentage of For the six months Percentage of
ended total revenues ended total revenues
May 31, 2024 May
31, 2023
Revenue from cameras sold $ 36,314 43.6% 32,729 76.9%
Service revenue 46,976 56.4% 9,817 23.1%
Total 83,290 100% 42,546 100% Disaggregated revenue by geographic of the Company
For the six months Percentage For the six months Percentage of
ended of total revenues ended total revenues
May 31, 2024 May
31, 2023
Revenue from US $ 36,314 43.6% 27,978 65.8%
Revenue from Japan 46,976 56.4% 14,568 34.2%
Total 83,290 100% 42,546 100% -F6- Table of Contents |
