| NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation This summary of accounting policies for Gridiron
is presented to assist in understanding the Company’s financial statements. The Company uses the accrual basis of accounting
and accounting principles generally accepted in the United States of America (“GAAP” accounting) and have been consistently
applied in the preparation of the financial statements. Use of Estimates The preparation of financial statements in
conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of
the financial statements. Actual results could differ from those estimates. Estimates are used when accounting for fair value calculations
related to embedded conversion features of outstanding convertible notes payable. Cash For purposes of the statement of cash flows,
the Company considers all highly liquid debt 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 had $774,468 and $25 of cash and no cash equivalents
as of August 31, 2018 and August 31, 2017 respectively. As of August 31, 2018, the Company had cash of $524,443 with one financial
institution in excess of the FDIC insured limit of $250,000. Revenue recognition The Company follows paragraph 605-10-S99 of
the FASB Accounting Standards Codification Fair Value of Financial Instruments Fair value of certain of the Company’s
financial instruments including cash, account payable, accrued expenses, notes payable, and other accrued liabilities approximate
cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value
Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally
accepted accounting principles and expands disclosures about fair value investments. Fair value, as defined in ASC 820, is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or
most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the
risk of nonperformance, which includes, among other things, the Company’s credit risk. Valuation techniques are generally classified
into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or
more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability,
and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use
of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting
measurement as follows: Level 1: Quoted prices (unadjusted) in active
markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Quoted prices for similar assets or
liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs
other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated
by observable market data for substantially the full term of the assets or liabilities; and Level 3: Unobservable inputs for the asset
or liability that are supported by little or no market activity, and that are significant to the fair values. Fair value measurements are required to be
disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value
measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including
a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following:
(i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and
a description of where those gains or losses included in earning are reported in the statement of income. As discussed in Note 7 – Warrants
and Derivative Liability, Income Taxes Income taxes are accounted for under the assets
and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases
and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect
for the year in which those temporary differences are expected to be recovered or settled. Use of net operating loss carry forwards
for income tax purposes may be limited by Internal Revenue Code section 382 if a change of ownership occurs. Principals of Consolidation The consolidated financial statements represent
the results of Gridiron BioNutrients, Inc,; its wholly owned subsidiary, GridIron Ventures and the assets, processes, and results
therefrom. All intercompany transactions and balances have been eliminated. All financial information has been prepared in conformity
with accounting principles generally accepted in the United States of America. Property and Equipment Property and equipment are carried at cost.
Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the
life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation
are removed from the accounts, and any resulting gain or loss is reflected in income for the period. Depreciation is computed for financial statement
purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery
system for federal income tax purposes. The estimated useful lives of depreciable assets are:
Estimated Useful Lives
Computer Equipment 3 years The Company’s property and equipment
consisted of the following as of August 31, 2018 and August 31, 2017:
August 31,
2018 2017
Computer Equipment $ 2,467 $ -
Accumulated depreciation (530 ) -
Net book value $ 1,937 $ - Depreciation expense for the year ended August
31, 2018 and period ended August 31, 2017 was $530 and $0, respectively. Inventories Inventories consist primarily of ready to sell
product and packing materials and are stated at the lower of cost or net realizable value using the first-in, first-out method.
The Company periodically assesses the recoverability of its inventory and reduces the carrying value of the inventory when items
are determined to be obsolete, defective or in excess of forecasted sales requirements. Inventory write-downs for excess, defective
and obsolete inventory are recorded as a cost of revenue. The Company did not have any write downs of inventory during the year
ended August 31, 2018 or period ended August 31, 2017, respectively. Inventory balances were $53,110 and $0 as of August 31, 2018
and August 31, 2017, respectively. Notes Payable As of August 31, 2018, and August 31, 2017,
the Company had two notes payable with a principal balance of $49,500 and $0, respectively, owed to two separate noteholders. Each
note payable is unsecure with one bearing interest at 5% and the other at 0% respectively. As of August 31, 2018, the Company had
an outstanding accrued interest balance of $475, which has been included in accounts payable and accrued expenses. Basic Income (Loss) Per Share Basic income (loss) per share is
calculated by dividing the Company’s 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 Company’s 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, note as they
would have been anti-dilutive. The conversion of preferred shares and warrants to commons shares could potentially bring the amount
of common shares to a total of 183,746,071. The preferred conversion and warrants would account for 50,880,000 additional shares
bringing along with the 132,637,500 outstanding at August 31, 2018 plus an additional 228,571 that have not been issued yet. There
were no potentially dilutive shares outstanding during the periods ended August 31, 2018 and August 31, 2017 respectively.
Dividends As discussed in Note 5 – Stockholders
Equity (Deficit), Advertising Costs The Company’s policy regarding advertising
is to expense advertising when incurred. The Company incurred advertising costs totaling $61,812 during the year ended August 31,
2018 and $0 during the period ended August 31, 2017. Stock-Based Compensation The Company accounts for equity instruments
issued to parties other than employees for acquiring goods or services under guidance of subtopic 505-50 of the FASB Accounting
Standards Codification (“Sub-topic 505-50”) and subtopic 718-20 for awards classified as equity to employees. There
was $0 and $200 of stock based compensation during the year ended August 31, 2018 and period ended August 31, 2017. Related Parties The registrant follows subtopic 850-10 of the
FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the Related parties
include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent
the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted
for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts
that are managed by or under the trusteeship of management; (d) principal owners of the registrant; (e) management of the registrant;
(f) other parties with which the registrant may deal if one party controls or can significantly influence the management or operating
policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate
interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties
or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that
one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures
of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the
ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined
financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s)
involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for
each of the periods for which income statements are presented, and such other information deemed necessary to an understanding
of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods
for which income statements are presented and the effects of any change in the method of establishing the terms from that used
in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if
not otherwise apparent, the terms and manner of settlement. Accounts Receivable Accounts receivable balances are established
for amounts owed to the Company from its customers from the sale of products. The Company closely monitors the collectability of
outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts.
There was $428 and $0 outstanding accounts receivable as of August 31, 2018 and 2017, respectively. Recently Issued Accounting Standards In August 2018, the SEC adopted the final rule
under SEC Release No. 33-10532, “Disclosure Update and Simplification,” In June 2018, the FASB issued ASU 2018-07, “Compensation
– Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” In November 2016, the FASB issued ASU 2016-18, “ Statement
of Cash Flows (Topic 230): Restricted Cash In October 2016, the FASB issued ASU 2016-16,
“ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In June 2016, the FASB issued ASU 2016-13, “Financial
Instruments – Credit Losses (Topic 326)” In February 2016, the FASB issued ASU 2016-02,
“ Leases (Topic 842 ,” “Leases In May 2014, the FASB issued ASU 2014-09, “Revenue
from Contracts with Customers (Topic 606),” “Revenue Recognition.” Trademark During the period ended August 31, 2017, a
related party incurred total costs of $2,800 to acquire a trademark on behalf of the Company. Trademark costs are capitalized
as incurred to the extent the Company expects the costs incurred to result in a trademark being awarded. Trademarks are reviewed
for impairment loss considerations annually. As of August 31, 2018 and 2017, the Company had trademarks totaling $2,800 and recorded
impairment losses of $0 for the periods then ended. Trademarks amortized over the expected useful lives when issued. Amortization
expense from trademarks are included in general and administrative expenses and totaled $0 for the periods ended August 31, 2018
and August 31, 2017, respectively. |
