Global Cosmetics 10-Q 20 Feb 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	3 Months Ended
	Dec. 31, 2017	Feb. 16, 2018
Document And Entity Information
Entity Registrant Name	Global Cosmetics Inc.
Entity Central Index Key	1,670,961
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	Yes
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 0
Entity Common Stock, Shares Outstanding		6,868,518
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Sep. 30, 2017
Current Assets
Cash	$ 47,084	$ 54
Inventory
Total Current Assets	47,084	54
TOTAL ASSETS	47,084	54
Current Liabilities
Accounts payable	54,680	59,594
Advances from related party	168,559	161,255
Total Current Liabilities	223,239	220,849
Stockholders' Deficit
Common stock, $0.001 par value, 150,000,000 shares authorized; 6,868,518 and 4,484,444 shares issued and outstanding as of December 31, 2017 and September 30, 2017 respectively	6,869	4,484
Additional paid-in capital	79,026	17,160
Accumulated deficit	(260,143)	(241,049)
Other comprehensive income	(1,907)	(1,389)
Total Stockholders' Deficit	(176,155)	(220,795)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 47,084	$ 54

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 04, 2017	Sep. 30, 2017	Sep. 04, 2017	Sep. 30, 2016	Nov. 20, 2015	Sep. 17, 2015
STOCKHOLDERS' EQUITY
Common stock, par value	$ 0.001		$ 0.001
Common stock, shares authorized	150,000,000		150,000,000
Common stock, shares issued	6,868,518	2,141,667		40,000	4,484,444	444,444	4,000,000
Common Stock, shares outstanding	6,868,518		4,484,444

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenues
Cost of Revenue
Gross Profit
Operating Expenses
General and administrative expenses	15,578	23,208
Professional Fees	3,515	17,905
Total Operating Expenses	19,094	41,113
Loss before Provision for Income Taxes	(19,094)	(41,113)
Provision for Income Taxes
Net Loss	(19,094)	(41,113)
Other Comprehensive Income/(Loss)
Foreign currency translation adjustment	(1,907)	5,225
Total Comprehensive Loss	$ (21,000)	$ (35,888)
Net Loss per Share: Basic and Diluted	$ 0	$ (0.01)
Weighted Average Number of Shares Outstanding: Basic and Diluted	5,169,923	4,444,444

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (19,094)	$ (41,113)
Changes in:
Accounts payable	(4,914)	15,584
Inventories		(6,255)
Net cash used in operating activities	(24,008)	(103,459)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from (repayment to) related party	7,304	74,558
Proceeds from sale of common stock	64,250	20,000
Net cash provided by financing activities	71,554	94,558
Effect of exchange rate changes on cash	(516)	8,907
Changes in cash during the period	47,030	6
Cash at beginning of period	54
Cash at end of period	47,084	6
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for taxes
Cash paid for interest

1. ORGANIZATION, DESCRIPTION OF

1. ORGANIZATION, DESCRIPTION OF BUSINESSAND PRINCIPLESOF CONSOLIDATION	3 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, DESCRIPTION OF BUSINESSAND PRINCIPLESOF CONSOLIDATION	Global Cosmetics, Inc. was incorporated on September 17, 2015 in the State of Nevada for the purpose of developing, marketing and distributing cosmetics and beauty products for purchase and consumption by retailers, wholesalers and end consumers.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2017
Summary Of Significant Accounting Policies
SUMMARY OF SIGNIFICANTACCOUNTINGPOLICIES	The Company was incorporated, for the purpose of developing, marketing and distributing cosmetics and beauty products for purchase and consumption by retailers, wholesalers and end consumers. The consolidated financial statements include the financial statements of Global Cosmetics, Inc., and its wholly-owned subsidiary Global Cosmetics Ltd. All significant inter-company balances and transactions have been eliminated upon consolidation. The Company has elected September 30 as its fiscal year end. Basis of presentation These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included. Operating results for the interim periods are not necessarily indicative of financial results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited condensed consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2017. In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates Certain amounts in the prior year condensed consolidated financial statements have been reclassified to conform to the current year presentation. Earnings (Loss) Per Share Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of any common share rights unless the exercise becomes antidilutive and then only the basic per share amounts are shown in the report. Estimates and Assumptions Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were assumed in preparing these financial statements. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Revenue Recognition We recognize revenue for sales in accordance with ASC 605-10 when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, prices are fixed or determinable, and collectability is reasonably assured. Revenue is recognized for sales transacted when the customer receives and pays for the merchandise at the register. For sales where we ship the merchandise to the customer revenue is recognized at the time the customer receives the product. Amounts related to shipping and handling that are billed to customers are recorded in net sales, and the related costs are recorded in cost of goods sold in the Consolidated Statement of Operations. Revenues are presented net of estimated returns and any taxes collected from customers and remitted to governmental authorities. Classification of Expenses Cost of goods sold and occupancy expenses include the following: ● the cost of merchandise; ● inventory shortage and valuation adjustments; ● freight charges; ● shipping and handling costs; ● costs associated with our sourcing operations, including payroll and related benefits; ● production costs; ● insurance costs related to merchandise; and ● rent, occupancy, depreciation, and amortization related to our store operations, distribution centers, and certain corporate functions Inventory Inventories are stated at lower of cost or market value. Cost is determined on a weighted average method. We have a commitment to purchase $437,552 of inventory over the next 3 years under the terms of our licensing agreement. Income Taxes The Company accounts for its income taxes in accordance with ASC No. 740, “Income Taxes”. Under Statement 740, a liability method is used whereby deferred tax assets and liabilities are determined based on temporary differences between basis used for financial reporting and income tax reporting purposes. Income taxes are provided based on tax rates in effect at the time such temporary differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not, that the Company will not realize the tax assets through future operations. Foreign Currency Translation The functional currency of the Company is Great British Pounds (GBP). Assets and liabilities of our operations are translated into United States dollar equivalents using the exchange rates in effect at the balance sheet date. Revenues and expenses are translated using the average exchange rates during each period. Adjustments resulting from the process of translating foreign functional currency financial statements into U.S. dollars are included in accumulated other comprehensive income in common shareholders’ equity. Foreign currency transaction gains and losses are included in other comprehensive loss and totaled $1,907 as at December 31, 2017. Recent Accounting Pronouncements The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements.

3. COMMITMENTS AND CONTINGENCIE

3. COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2017
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES	The Company is not presently involved in any litigation. The Company neither owns nor leases any real or personal property.

4. GOING CONCERN

4. GOING CONCERN	3 Months Ended
	Dec. 31, 2017
Going Concern
GOING CONCERN	As set forth on the Company’s balance sheet, its current assets total $47,084. This amount does not provide adequate working capital for the Company to successfully operate its business and to service its debt. Expenses incurred to the date of this prospectus are being recorded on the Company’s books as they occur. This raises substantial doubt about its ability to continue as a going concern. Continuation of the Company as a going concern is dependent upon obtaining additional working capital. Management believes that the Company will be able to operate for the coming year from equity funding via proceeds raised from the offering of our shares of common stock pursuant to the Form S-1 Registration Statement which became effective on March 10, 2017 (the “offering”). However, there can be no assurances that management’s plans to complete the offering will be successful, and there is no agreement, commitment or understanding by Mr. Ridding, who is the Company CEO and sole director, or any other person to provide any funding or additional loans to the Company. However, we have an understanding with Mr. Ridding that he will provide, assuming his personal circumstance allow him) additional loans up to $50,000 to allow us to operate for the coming year, among other finance activities, by obtaining additional loans from Mr. Ridding.

5. SIGNIFICANT TRANSACTIONS WIT

5. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES	3 Months Ended
	Dec. 31, 2017
Significant Transactions With Related Parties
SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES	As of December 31, 2017, the balance of the amounts due to the director was $168,559. The amounts loaned from the director were unsecured, non-interest bearing, and had no specific terms of repayment. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future. On September 17, 2015, the Company’s founder, President and CEO, Benjamin Ridding, acquired 4,000,000 common shares, at a price of $0.005 per share for cash. On November 20, 2015, the Company entered into an Agreement (the ‘Licensing Agreement”) with Colorcos Company Limited (“Colorcos”), Bel-Air Cosmetics Corp. (“Bel-Air Cosmetics”), and J J Holand Limited (“JJH”). The Licensing Agreement provides that (i) JJH has granted the Company the exclusive user and exclusive importation and distribution rights for the FOR YOU TOO/4U2 trademark and designs of JJH in the territories of North America, Europe and Australasia; (ii) the Company has granted to Colorcos the exclusive supply rights for the cosmetics and personal care products bearing the JJH Trademarks (and subject to the ability of Colorcos to fulfill the supply requirements); and (iii) JJH and Bel-Air shall develop new products and make such products available to the Company for evaluation. The License Agreement provides that the parties shall negotiate and agree upon pricing for the products. The License Agreement also provides that after the commencement of the first renewal period of the License Agreement, the Company will be granted a 50% beneficial ownership of the 4U2 trademarks that are registered in the territory, with JJH owning the other 50%. The trademark registrations will remain in JJH’s ownership on the various registers and JJH will remain responsible for the management and continued existence of the various trademarks. In the event that the trademarks are sold, each party will be entitled to 50% of the net purchase proceeds from the sale. The term of the License Agreement is five years, with automatic renewal for additional periods of five years, unless one party provides 6 months prior written notice to the other party of termination. The License Agreement may also be terminated due to the material breach by the other party, and may be terminated by Bel-Air, Colorcos and JJH in the event the Company does not purchased a minimum amount of products during the term as follows: US $50,000 during the first 12 months; US $150,000 during the second 12 months; and $250,000 during the third 12 months. The License Agreement also contains certain representations, warranties, indemnity obligations and rights of termination. The foregoing is only a brief description of the material terms of the License Agreement, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such description is qualified in its entirety by reference to the License Agreement which was filed as an exhibit to our Form S-1. JJH is owned by Keith McCulloch, who is also a director (Chairman of the Board) of the Company. The Company issued 444,444 shares of Company common stock to Mr. McCulloch under the terms of the License Agreement. The License Agreement also provides that Mr. McCulloch has a right to receive additional shares at no additional cost to him to maintain his 10% ownership interest in the Company. JJH owns 100% of Bel-Air Cosmetics. On December 4, 2017, the Company issued 242,407 shares of common stock to Keith McCulloch to maintain his 10% holding per his license agreement as a result of the issuance of 2,141,667 shares of common stock under its registration statement.

6. CAPITAL STOCK

6. CAPITAL STOCK	3 Months Ended
	Dec. 31, 2017
Capital Stock
CAPITAL STOCK	The Company was incorporated on September 17, 2015 in Nevada with authorized capital of 150,000,000 shares of $0.001 par value common stock and 10,000,000 shares of $0.001 par value preferred stock. On September 17, 2015, the Company issued 4,000,000 shares of common stock to our founder for cash proceeds of $20,000. On November 20, 2015, the Company issued 444,444 shares of common stock under the terms of the Licensing Agreement. On September 4, 2017, the Company issued 40,000 shares of common stock for cash proceeds of $1,200 under its registration statement that went effective on March 10, 2017. On December 4, 2017, the Company issued 2,141,667 shares of common stock for cash proceeds of $64,250 under its registration statement that went effective on March 10, 2017. On December 4, 2017, the Company issued 242,407 shares of common stock to Keith McCulloch to maintain his 10% holding per his license agreement as a result of the issuance of 2,141,667 shares of common stock under its registration statement. There were 6,868,518 shares of common stock issued and outstanding at December 31, 2017. There were no shares of preferred stock issued and outstanding at December 31, 2017.

7. SUBSEQUENT EVENTS

7. SUBSEQUENT EVENTS	3 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	In accordance with ASC 855-10, the Company has analyzed its operations subsequent to December 31, 2017, and has determined that it does not have any material subsequent events to disclose in these financial statements.

2. SUMMARY OF SIGNIFICANT ACC13

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2017
Summary Of Significant Accounting Policies Policies
Basis of presentation	These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included. Operating results for the interim periods are not necessarily indicative of financial results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited condensed consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2017. In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates Certain amounts in the prior year condensed consolidated financial statements have been reclassified to conform to the current year presentation.
Earnings (Loss) Per Share	Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net income (loss) per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of any common share rights unless the exercise becomes antidilutive and then only the basic per share amounts are shown in the report.
Estimates and Assumptions	Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were assumed in preparing these financial statements.
Cash and Cash Equivalents	The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.
Revenue Recognition	We recognize revenue for sales in accordance with ASC 605-10 when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, prices are fixed or determinable, and collectability is reasonably assured. Revenue is recognized for sales transacted when the customer receives and pays for the merchandise at the register. For sales where we ship the merchandise to the customer revenue is recognized at the time the customer receives the product. Amounts related to shipping and handling that are billed to customers are recorded in net sales, and the related costs are recorded in cost of goods sold in the Consolidated Statement of Operations. Revenues are presented net of estimated returns and any taxes collected from customers and remitted to governmental authorities.
Classification of Expenses	Cost of goods sold and occupancy expenses include the following: ● the cost of merchandise; ● inventory shortage and valuation adjustments; ● freight charges; ● shipping and handling costs; ● costs associated with our sourcing operations, including payroll and related benefits; ● production costs; ● insurance costs related to merchandise; and ● rent, occupancy, depreciation, and amortization related to our store operations, distribution centers, and certain corporate functions
Inventory	Inventories are stated at lower of cost or market value. Cost is determined on a weighted average method. We have a commitment to purchase $437,552 of inventory over the next 3 years under the terms of our licensing agreement.
Income Taxes	The Company accounts for its income taxes in accordance with ASC No. 740, “Income Taxes”. Under Statement 740, a liability method is used whereby deferred tax assets and liabilities are determined based on temporary differences between basis used for financial reporting and income tax reporting purposes. Income taxes are provided based on tax rates in effect at the time such temporary differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not, that the Company will not realize the tax assets through future operations.
Foreign Currency Translation	The functional currency of the Company is Great British Pounds (GBP). Assets and liabilities of our operations are translated into United States dollar equivalents using the exchange rates in effect at the balance sheet date. Revenues and expenses are translated using the average exchange rates during each period. Adjustments resulting from the process of translating foreign functional currency financial statements into U.S. dollars are included in accumulated other comprehensive income in common shareholders’ equity. Foreign currency transaction gains and losses are included in other comprehensive loss and totaled $1,907 as at December 31, 2017.
Recent Accounting Pronouncements	The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements.

2. SUMMARY OF SIGNIFICANT ACC14

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Texual)) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Summary Of Significant Accounting Policies Details Texual
Inventory
Other comprehensive income loss	$ (1,907)	$ 5,225

4. GOING CONCERN (Details Textu

4. GOING CONCERN (Details Textual) - USD ($)	Dec. 31, 2017	Sep. 30, 2017
Going Concern Details Textual
Total Assets	$ 47,084	$ 54

5. SIGNIFICANT TRANSACTIONS W16

5. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES (Details Textual) - USD ($)	Dec. 31, 2017	Dec. 04, 2017	Sep. 04, 2017	Sep. 30, 2016	Nov. 20, 2015	Sep. 17, 2015
Significant Transactions With Related Parties Details Textual
Common Stock Shares Issued	6,868,518	2,141,667	40,000	4,484,444	444,444	4,000,000
Ownership interest	10.00%	10.00%
Due to director	$ 168,559
Share price						$ 0.005
Issuance of common stock under registration statement		2,141,667
Issuance of common stock to Keith McCulloch		242,407

6. CAPITAL STOCK (Details Textu

6. CAPITAL STOCK (Details Textual) - USD ($)	1 Months Ended		3 Months Ended
	Dec. 31, 2017	Sep. 17, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 04, 2017	Sep. 30, 2017	Sep. 04, 2017	Sep. 30, 2016	Nov. 20, 2015	Sep. 17, 2015
Capital Stock Details Textual
Common Stock Shares Issued	6,868,518		6,868,518		2,141,667		40,000	4,484,444	444,444	4,000,000
Common Stock Shares Outstanding	6,868,518		6,868,518			4,484,444
Common Stock Shares Authorized	150,000,000		150,000,000			150,000,000
Common Stock Value Per Share	$ 0.001		$ 0.001			$ 0.001
Preferred Stock Issued	10,000,000		10,000,000
Preferred Stock Par Value	$ 0.001		$ 0.001
Preferred stock issued and outstanding	0		0
Cash Proceeds for Common Stock	$ 64,250	$ 20,000	$ 64,250	$ 20,000
Issuance of common stock under registration statement					2,141,667
Issuance of common stock to Keith McCulloch					242,407