| Summary of Significant Accounting Policies | Basis of Presentation The financial
statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States
of America (“US GAAP”). This basis of accounting involves the application of accrual accounting and consequently,
revenues and gains are recognized when earned, and expenses and losses or recognized when incurred. Forward Stock Split On December
22, 2015, the Company’s board of directors authorized a forward split of the Company’s issued and outstanding Common
Stock whereby each share of Common Stock was exchanged for 1.2847603145 shares, with fractional shares rounded to the nearest
round number. In connection therewith, Company shareholders of record as of the close of business on December 22, 2015 the
record date, received an additional 1.2847603145 shares of the Company’s Common Stock for each share of Common Stock held
by them on the record date. Under the guidelines of Staff Accounting Bulletin 4c, a capital structure change such as a stock split
that occurs after the date of the most recent balance sheet must be given retroactive effect in the balance sheet. Accordingly,
all references to the numbers of common shares and per share data in the accompanying financial statements have been adjusted
to reflect this forward split on a retroactive basis, unless indicated otherwise. Use of Estimates The
preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect
the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to revenue
recognition, valuation of accounts receivable and inventories, purchase price allocation of acquired businesses, impairment of
long lived assets and goodwill, valuation of financial instruments, income taxes, and contingencies. The Company bases its estimates
on historical experience, known or expected trends and various other assumptions that are believed to be reasonable given the
quality of information available as of the date of these financial statements. The results of these assumptions provide the basis
for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual
results could differ from these estimates. Cash and
Cash Equivalents The Company
considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents.
At December 31, 2016 and December 31, 2015, the Company cash equivalents totaled $2,407 and $107,763 respectively. Accounts
Receivable We record
accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts
to reflect any loss anticipated on the accounts receivable balances and is charged to Other income (expense) in the consolidated
statements of operations. We calculate this allowance based on our history of write-offs, the level of past-due accounts based
on the contractual terms of the receivables, and our relationships with, and the economic status of, our customers. As of December
31, 2016 and 2015, an allowance for estimated uncollectible accounts was determined to be unnecessary. Stock
Purchase Warrants The
Company accounts for warrants issued to purchase shares of its common stock as equity in accordance with FASB ASC 480, Accounting
for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, Distinguishing Liabilities
from Equity Net Loss
per Share Net loss
per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined
by Financial Accounting Standards, ASC Topic 260, "Earnings per Share." Basic earnings per common share (“EPS”)
calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during
the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number
of common shares and dilutive common share equivalents outstanding. Revenue
Recognition We recognize
revenue when the four revenue recognition criteria are met, as follows:
· Persuasive evidence of an arrangement exists
· Delivery
· The price is fixed or determinable
· Collectability is reasonably assured Refunds and
returns, which are minimal, are recorded as a reduction of revenue. Payments received by customers prior to our satisfying the
above criteria are recorded as unearned income in the consolidated balance sheets. To date, substantially all of the Company’s
revenue has come from the sale of LED tubes and fixtures. If the Company enters into a project requiring installation, this installation
is performed by the client or from a third party contractor and no revenue is recognized on the installation since the third party
directly bills the client. Fair Value
of Financial Instruments The Company
applies the accounting guidance under Financial Accounting Standards Board (“FASB”) ASC 820-10, “Fair Value
Measurements”, as well as certain related FASB staff positions. This guidance defines fair value as the price that would
be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value,
the Company considers the principal or most advantageous market in which it would transact business and considers assumptions
that marketplace participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and
risk of nonperformance. The guidance
also establishes a fair value hierarchy for measurements of fair value as follows:
☐ Level 1 - quoted market prices in active markets for identical
assets or liabilities.
☐ Level 2 - inputs other than Level 1 that are observable, either
directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical
or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated
by observable market data for substantially the full term of the assets or liabilities.
☐ Level 3 - unobservable inputs that are supported by little or
no market activity and that are significant to the fair value of the assets or liabilities. The carrying
amount of the Company's financial instruments approximates their fair value as of December 31, 2016 and December 31, 2015, due
to the short-term nature of these instruments. Recent
Accounting Pronouncements 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. |
