Kelvin Medical (KVMD) 10-Q 15 May 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2017	May 08, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Kelvin Medical, Inc.
Entity Central Index Key	1,679,836
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		63,000,000

Balance Sheets

Balance Sheets - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Current assets
Cash and cash equivalents	$ 8,506	$ 1,076
Other receivable	3,000
Deferred offering costs	60,000	60,000
Total current assets	71,506	61,076
TOTAL ASSETS	71,506	61,076
Current liabilities
Accounts payable	3,379
Accounts payable, related parties	16,833	2,583
Advances, related parties	4,890	1,830
Customer deposit	120	120
Liability for unissued shares	7,400
Total current liabilities	32,622	4,533
Total liabilities	32,622	4,533
Commitments and Contingencies
Stockholders' equity
Common stock, $0.001 par value: shares authorized 100,000,000; 63,000,000 shares issued and outstanding	63,000	63,000
Additional paid in capital	57,000	57,000
Retained deficit	(81,116)	(63,457)
Total stockholders' equity	38,884	56,543
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$ 71,506	$ 61,076

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Jun. 30, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	100,000,000	100,000,000
Common stock, shares issued	63,000,000	63,000,000
Common stock, shares, outstanding	63,000,000	63,000,000

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2017
Income Statement [Abstract]
Net sales
Cost of goods sold
Gross profit
Operating expenses:
Management fees	3,000	9,000
Patent license fees	1,750	5,250
Professional fees	2,093	2,093
General and administrative expenses	1,286	1,316
Total operating expenses	8,129	17,659
Loss from operations	(8,129)	(17,659)
Net (loss)	$ (8,129)	$ (17,659)
Net (loss) per common shares (basic and diluted)	$ 0	$ 0
Weighted average shares outstanding - Basic and diluted	63,049,611	63,016,296

Statement of Cash Flows (Unaudi

Statement of Cash Flows (Unaudited)	9 Months Ended
	Mar. 31, 2017USD ($)
Cash Flows from Operating Activities
Net loss	$ (17,659)
Changes in operating assets and liabilities:
Other receivable	(3,000)
Liability for unissued shares	7,400
Subscriptions received	(7,400)
Accounts payable	3,379
Accounts payable - related parties	14,250
Net cash provided by operating activities	(3,030)
Cash Flows from Investing Activities
Net cash provided from (used by) investing activities
Cash Flows from Financing Activities
Advances - related parties	3,060
Net cash provided from (used by) financing activities	3,060
Increase (decrease) in cash and cash equivalents	30
Cash and cash equivalents at beginning of period	1,076
Cash and cash equivalents at end of period	8,506
Cash paid (received) during year for:
Interest
Income taxes

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Mar. 31, 2017
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Activity: To date, our activities have been limited to formation and the development of a business plan. We engaged a legal consulting firm to assist us in registering securities for trading by filing a Form S-1 with the U.S. Securities and Exchange Commission and by applying for a listing on the OTC Pink Markets. We have commenced raising capital under the Form S-1 offering at a price of $0.02 per share for up to 30,000,000 shares or $600,000 in gross proceeds. We are now exploring other sources of capital to fund our operations until our offering is complete. In the current start up stage, we anticipate incurring operating losses as we implement our business plan. Financial Statement Presentation: The unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Fiscal year end: Use of Estimates: Cash Equivalents: Revenue recognition and related allowances: Accounts Receivable and Allowance for Doubtful Accounts: Inventories: Warranty: Advertising and Marketing Costs: Income taxes: Basic and Diluted Loss Per Share New Accounting Pronouncements: In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, . In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740): This update simplifies the accounting for the income tax consequences of transfers of assets from one unit of a corporation to another unit or subsidiary by eliminating an accounting exception that prevents the recognition of current and deferred income tax consequences for such “intra-entity transfers” until the assets have been sold to an outside party. The amendment should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment directly to retained earnings as of the beginning of the period In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15). The Company has evaluated all new accounting standards that are in effect and may impact its condensed consolidated financial statements and does not believe that there are any other new accounting standards that have been issued that might have a material impact on its financial position or results of operations.

Going Concern

Going Concern	9 Months Ended
	Mar. 31, 2017
Going Concern [Abstract]
GOING CONCERN	2. GOING CONCERN The Company has experienced net losses to date, and it has not generated revenue from operations. We will need additional working capital to service debt and for ongoing operations, which raises substantial doubt about its ability to continue as a going concern. Management of the Company has developed a strategy to meet operational shortfalls which may include equity funding, short-term or long-term financing or debt financing, to enable the Company to reach profitable operations.

Patent License Agreement

Patent License Agreement	9 Months Ended
	Mar. 31, 2017
Patent License Agreement [Abstract]
PATENT LICENSE AGREEMENT	3. PATENT LICENSE AGREEMENT On May 10, 2016 the Company entered into a patent license agreement with Oasis Medical Solutions, a sole proprietorship controlled by our board of directors and organized in the State of California (“Licensor”) under which the Licensor desires to grant and the Company desires to accept an exclusive license of the Patent for the building of, and use of, machines incorporating the Patent’s technology under certain terms and conditions. Both of the parties agree that the ownership of the Patent and the goodwill relating thereto, and any associated improvements, whether developed by the Company, or both parties jointly, shall remain vested in Licensor both during the term of the agreement and thereafter, and the Company further agrees never to challenge, contest or question the validity of the Licensor’s ownership of the Patent or any associated registrations therewith. As consideration for the exclusive license granted, the Company shall pay to Licensor the following fees: (a) An ongoing maintenance fee of $500 per month plus an additional annual fee of $1,000; (b) Royalty fees of 6% per machine sold or leased under this license, payable within thirty (30) days of agreement reached with the customer/lessee. Payments can be grouped on a monthly occurring basis; (c) This license shall be considered null and void if production is not obtained within a 5-year period of the date stated above and the license, and all rights thereunder, will return to the Licensor. The term of the license agreement shall be for 15 years, but will not extend beyond the full term of the patent. Within a year from the ending of the patent term, parties may negotiate an ongoing arrangement. During the nine months ended March 31, 2017, the Company accrued $5,250 as license fees.

Consulting Agreement

Consulting Agreement	9 Months Ended
	Mar. 31, 2017
Consulting Agreement [Abstract]
CONSULTING AGREEMENT	4. CONSULTING AGREEMENT On June 1, 2016, the Company entered into a consulting agreement with a consultant who is in the business of assisting private companies in the process of going public and getting listed on the OTC Pink through the Form S-1 Registration. Under the terms of the consulting agreement, the Consultant shall provide certain services with respect to the Form S-1 Registration Statement, from commencement and preparation of the Form S-1 to receipt of Notice of Effectiveness, retention and payment of the required legal and accounting professionals, and thereafter to work with a market maker to provide a completed and accepted Form 15c2-11 with FINRA, DTC eligibility, a trading symbol and listing on OTC Pink. As compensation under the consulting agreement S-1 Services LLC, the consultant, received 3,000,000 shares of the Company’s common stock at $0.02 per share for a value of $60,000. The $60,000 in costs relating to such Registration Statement will be charged to capital, if such offering is successful. If the offering is not successful, the costs will be charged to expense. Presently the costs are reflected on the balance sheets of the Company as Deferred offering costs as the Company has received a notice of effectiveness for its registration statement as of January 26, 2017, and has commenced fundraising efforts.

Customer Deposits

Customer Deposits	9 Months Ended
	Mar. 31, 2017
Customer Deposits [Abstract]
CUSTOMER DEPOSITS	5. CUSTOMER DEPOSITS As at March 31, 2017 and June 30, 2016 the Company has received a customer deposit of $120 in respect to the sale of three units of the Therm-N-Ice arm band. The deposit represents a one-third deposit for each of the three units ordered.

Common Stock

Common Stock	9 Months Ended
	Mar. 31, 2017
Common Stock [Abstract]
COMMON STOCK	6. COMMON STOCK The Company has authorized 100,000,000 shares with par value of $0.001. Effective May 15, 2016 the Company issued 30,000,000 shares of common stock as a signing bonus valued at $30,000 or $0.001 per share, to our President, Mr. William Mandel. Effective May 15, 2016 the Company issued 30,000,000 shares of common stock as a signing bonus valued at $30,000 or $0.001 per share, to our Chairman, Dr. Margaret Austin. Effective June 1, 2016 the Company issued 3,000,000 shares of common stock in respect to the S-1 Services agreement valued at $60,000 or $0.02 per share (ref: Note 4). During the nine months ended March 31, 2017, the Company has received proceeds totaling $7,400 from various parties subscribing for a total of 370,000 shares at $0.02 per share under our Form S-1 registration statement. Proceeds collected totaling $7,400 have not yet been deposited to the bank and are recorded on the balance sheet as s

Related Party Transactions

Related Party Transactions	9 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	7. RELATED PARTY TRANSACTIONS a. Management services: On May 15, 2016, the Company entered into a twelve-month agreement for management services with Mr. William Mandel, our President, Secretary, Treasurer and member of the Board of Directors. Under the terms of the agreement the Company issued 30,000,000 shares as a bonus to Mr. William Mandel valued at $30,000 or par value, and shall pay $1,000 monthly in cash consideration. There has been $9,000 accrued and recorded as Accounts Payable, Related party, in relation to services rendered for the nine months ended March 31, 2017 by Mr. Mandel. b. Advances Oasis Medical Solutions Kelvin Medical LLC Total Balance, June 30, 2016 $ 1,374 $ 456 $ 1,830 Additions during the period $ 3,060 - $ 3,060 Balance, March 31, 2017 $ 4,434 $ 456 $ 4,890 Oasis Medical Solutions is a sole proprietorship controlled by our board of directors. Kelvin Medical LLC is a company controlled by our board of directors. Advances received were used to provide working capital as required by the Company for ongoing operations.

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2017
Income Taxes [Abstract]
INCOME TAXES	8. INCOME TAXES Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Operating loss carry-forwards generated during the period from May 5, 2016 (date of inception) through March 31, 2017 of approximately $81,116, will begin to expire in 2036. The Company applies a statutory income tax rate of 34%. The Company had deferred income tax assets as of March 31, 2017 and June 30, 2016 as follows: March 31, 2017 June 30, 2016 Loss carryforwards $ 27,579 $ 21,575 Less – accrued management fees (3,740 ) (680 ) Less - valuation allowance (23,839 ) (20,895 ) Total net deferred tax assets $ - $ - Tax years from inception to fiscal year ended June 30, 2016 are not yet filed and are open for examination by the taxing authorities.

Subsequent Events

Subsequent Events	9 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	9. SUBSEQUENT EVENTS The Company has evaluated subsequent events from the balance sheet date through the date that the financial statements were issued and determined that there are no additional subsequent events to disclose.

Basis of Presentation and Sum15

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2017
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]
Business Activity	Business Activity: To date, our activities have been limited to formation and the development of a business plan. We engaged a legal consulting firm to assist us in registering securities for trading by filing a Form S-1 with the U.S. Securities and Exchange Commission and by applying for a listing on the OTC Pink Markets. We have commenced raising capital under the Form S-1 offering at a price of $0.02 per share for up to 30,000,000 shares or $600,000 in gross proceeds. We are now exploring other sources of capital to fund our operations until our offering is complete. In the current start up stage, we anticipate incurring operating losses as we implement our business plan.
Financial Statement Presentation	Financial Statement Presentation: The unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Fiscal Year End	Fiscal year end:
Use of Estimates	Use of Estimates:
Cash Equivalents	Cash Equivalents:
Revenue recognition and related allowances	Revenue recognition and related allowances:
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts:
Inventories	Inventories:
Warranty	Warranty:
Advertising and Marketing Costs	Advertising and Marketing Costs:
Income taxes	Income taxes:
Basic and Diluted Loss Per Share	Basic and Diluted Loss Per Share
New Accounting Pronouncements	New Accounting Pronouncements: In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, . In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740): This update simplifies the accounting for the income tax consequences of transfers of assets from one unit of a corporation to another unit or subsidiary by eliminating an accounting exception that prevents the recognition of current and deferred income tax consequences for such “intra-entity transfers” until the assets have been sold to an outside party. The amendment should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment directly to retained earnings as of the beginning of the period In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15). The Company has evaluated all new accounting standards that are in effect and may impact its condensed consolidated financial statements and does not believe that there are any other new accounting standards that have been issued that might have a material impact on its financial position or results of operations.

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule of related party advances	Oasis Medical Solutions Kelvin Medical LLC Total Balance, June 30, 2016 $ 1,374 $ 456 $ 1,830 Additions during the period $ 3,060 - $ 3,060 Balance, March 31, 2017 $ 4,434 $ 456 $ 4,890

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Mar. 31, 2017
Income Taxes [Abstract]
Schedule of deferred income tax assets	March 31, 2017 June 30, 2016 Loss carryforwards $ 27,579 $ 21,575 Less – accrued management fees (3,740 ) (680 ) Less - valuation allowance (23,839 ) (20,895 ) Total net deferred tax assets $ - $ -

Basis of Presentation and Sum18

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($)	9 Months Ended
	Mar. 31, 2017	Jun. 30, 2016	Jun. 01, 2016
Basis of Presentation and Summary of Significant Accounting Policies (Textual)
Offering price	$ 0.02		$ 0.02
Shares being offered	30,000,000
Cash equivalent term features	90 days or less from the date of purchase
Gross proceeds under Offering	$ 600,000
Advertising and marketing costs
Allowance for doubtful accounts

Patent License Agreement (Detai

Patent License Agreement (Details) - Patent license agreement [Member]	9 Months Ended
	Mar. 31, 2017USD ($)
Patent License Agreement (Textual)
Monthly maintenance fee	$ 500
Annual license fee	$ 1,000
Payment terms, royalty fee	Royalty fees of 6% per machine sold or leased under this license, payable within thirty (30) days of agreement reached with the customer/lessee.
Term of license in years	15 years
License agreement contingency, terms	This license shall be considered null and void if production is not obtained within a 5-year period of the date stated above and the license, and all rights thereunder, will return to the Licensor.
Accrued license fees	$ 5,250

Consulting Agreement (Details)

Consulting Agreement (Details) - USD ($)	Jun. 01, 2016	Mar. 31, 2017	Jun. 30, 2016
Consulting Agreement (Textual)
Shares issued to consultant for services received	3,000,000
Value of shares issued to consultant for services	$ 60,000
Commn stck par value	$ 0.02	$ 0.02
Deferred offering costs		$ 60,000	$ 60,000

Customer Deposits (Details)

Customer Deposits (Details) - USD ($)	9 Months Ended
	Mar. 31, 2017	Jun. 30, 2016
Customer Deposits (Textual)
Customer deposit	$ 120	$ 120
Deposits description	The deposit represents a one-third deposit for each of the three units ordered.

Common Stock (Details)

Common Stock (Details) - USD ($)	9 Months Ended
	Mar. 31, 2017	Jun. 30, 2016	Jun. 01, 2016	May 15, 2016
Common Stock (Textual)
Common stock, authorized	100,000,000	100,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	63,000,000	63,000,000	3,000,000
Value of shares issued	$ 63,000	$ 63,000	$ 60,000
Per share value	$ 0.02		$ 0.02
Shares issued to various parties during the period	30,000,000
Proceeds from shares issued to various parties during the period	$ 7,400
Subscriptions received	$ 7,400
Mr. William Mandel [Member]
Common Stock (Textual)
Common stock, shares issued				30,000,000
Value of shares issued				$ 30,000
Per share value				$ 0.001
Dr. Margaret Austin [Member]
Common Stock (Textual)
Common stock, shares issued				30,000,000
Value of shares issued				$ 30,000
Per share value				$ 0.001

Related Party Transactions (Det

Related Party Transactions (Details)	9 Months Ended
	Mar. 31, 2017USD ($)
Related Party Transaction [Line Items]
Related parties advances, beginning balance	$ 1,830
Additions during the period	3,060
Related parties advances, ending balance	4,890
Oasis Medical Solutions [Member]
Related Party Transaction [Line Items]
Related parties advances, beginning balance	1,374
Additions during the period	3,060
Related parties advances, ending balance	4,434
Kelvin Medical LLC [Member]
Related Party Transaction [Line Items]
Related parties advances, beginning balance	456
Additions during the period
Related parties advances, ending balance	$ 456

Related Party Transactions (D24

Related Party Transactions (Details Textual) - USD ($)	May 15, 2016	Mar. 31, 2017	Jun. 30, 2016	Jun. 01, 2016
Related Party Transactions (Textual)
Common stock, shares issued		63,000,000	63,000,000	3,000,000
Value of shares issued		$ 63,000	$ 63,000	$ 60,000
Mr. William Mandel [Member]
Related Party Transactions (Textual)
Common stock, shares issued	30,000,000
Value of shares issued	$ 30,000
Monthly cash consideration	$ 1,000
Accounts payable, related party		$ 9,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Income Taxes [Abstract]
Loss carryforwards	$ 27,579	$ 21,575
Less - accrued management fees	(3,740)	(680)
Less - valuation allowance	(23,839)	(20,895)
Total net deferred tax assets

Income Taxes (Details Textual)

Income Taxes (Details Textual)	9 Months Ended
	Mar. 31, 2017USD ($)
Income Taxes (Textual)
Operating loss carry-forward	$ 81,116
Operating losses expiring year	Dec. 31, 2036
Income tax rate	34.00%