| Summary of Significant Accounting Policies | NOTE 2 –SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The
unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of
the United States Securities and Exchange Commission. Accordingly, they do not contain all information and footnotes required
by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of
the Company’s management, the accompanying unaudited financial statements contain all the adjustments necessary (consisting
only of normal recurring adjustments) to present the financial position of the Company as of June 30, 2018 and the results of
operations and cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2018
are not necessarily indicative of the operating results for the full fiscal year. These financial statements should be read in
conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2017. Notes to the financial statements which would substantially duplicate the disclosure contained
in the audited financial statements for the most recent year ended December 31, 2017 have been omitted. Stock-based Compensation In
the second quarter of 2018 the Company elected to adopt ASU 2018-07 which simplifies the accounting for share-based payments granted
to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned
with the requirements for share-based payments granted to employees. ASU 2018-07 requires an entity to use a modified retrospective
transition approach, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year. Upon adoption
the Company recorded an adjustment to the first quarter of 2018 of $188,165. Inventories Inventory
is manufactured at third party facilities. Inventories are stated at the lower of cost or net realizable value, using the first-in,
first-out method. The Company reviews its inventory for obsolescence and any inventory identified as obsolete is reserved or written
off. The Company’s determination of obsolescence is based on assumptions about the demand for its products, product expiration
dates, estimated future sales, and management’s future plans. As of June 30, 2018
and December 31, 2017 inventory consists of the following components:
June 30, 2018 December 31, 2017
Raw materials and supplies $ 28,806 $ –
Finished products 44,593 –
Total inventory $ 73,399 $ – Revenue Recognition The
Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which was adopted on
January 1, 2018. All revenue is recognized when the performance obligations under a contract are satisfied. Product sales are
recognized when the products are delivered and title passes to the customer. Net revenues comprise gross revenues less customer
discounts and allowances, actual and expected returns. Shipping charges billed to members are included in net sales. Various taxes
on the sale of products and enrollment packages to members are collected by the Company as an agent and remitted to the respective
taxing authority. These taxes are presented on a net basis and recorded as a liability until remitted to the respective taxing
authority. Deferred Revenue The
Company may at times receive payment by credit card at the time customer places an order. Amounts received for undelivered product
are considered a contract liability and are recorded as deferred revenue. As of June 30, 2018 and December 31, 2017 the Company
had no deferred revenue. Cost of Sales Cost
of sales includes all of the costs to manufacture the Company’s products. Products are manufactured for the Company by third-party
contractors, such costs represent the amounts invoiced by the contractors. Additionally, shipping costs are included in Cost of
Sales in the Statements of Operations. Selling, General
and Administrative Expenses Selling,
general and administrative expenses include advertising and promotional costs and research and development costs. Also included
in Selling, general and administrative expenses are share-based compensation, certain warehousing fees, non-manufacturing overhead,
personnel and related expenses, rent on operating leases, and professional fees. Advertising
and promotional costs are expensed as incurred and totaled $16,183 and $0 in the six months ended June 30, 2018
and 2017, respectively. Research and development costs are expensed as incurred and totaled $1,698 and $0 for the six months ended
June 30, 2018 and 2017, respectively. Website Development
Cost We
capitalize certain development costs associated with internal use software incurred during the application development stage.
We expense costs associated with preliminary project phase activities, training, maintenance and any post-implementation period
costs as incurred. Capitalization of qualifying application development cost begins when management authorized and commits to
funding the project and it is probable that the project will be completed for the function intended. Capitalized internal use
software costs are normally amortized over estimated useful lives ranging from 2 to 5 years once the related project has been
completed and deployed for customer use. At the time the software is considered to have be an indefinite lived asset in which
case it is evaluated for impairment at least annually. For the six months ending June 30, 2018 we have capitalized $99,513 related
to software under the criteria discussed in this paragraph. These cost are
related to the development of our website and customer portal and have not been placed in service as of June 30, 2018. |
