Cover
Cover - shares | 9 Months Ended | |
Jan. 31, 2022 | Mar. 08, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | BOXXY INC. | |
Entity Central Index Key | 0001680689 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jan. 31, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 4,190,000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-213553 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 32-0500871 | |
Entity Address Address Line 1 | 9980 S 300 W Suite 200 | |
Entity Address City Or Town | Sandy | |
Entity Address State Or Province | UT | |
Entity Address Postal Zip Code | 84070 | |
City Area Code | 415 | |
Local Phone Number | 968-5642 | |
Entity Interactive Data Current | Yes |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Jan. 31, 2022 | Apr. 30, 2021 |
Current Assets | ||
Total Current Assets | $ 0 | $ 0 |
Non-current assets | ||
Mining Property Rights | 125,000 | 125,000 |
TOTAL ASSETS | 125,000 | 125,000 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 36,493 | 39,921 |
Accrued interest | 1,596 | 1,279 |
Accrued interest - related party | 1,917 | 0 |
Loan payable - related party | 175,206 | 153,913 |
Total Current Liabilities | 215,212 | 195,113 |
Loan payable | 6,973 | 6,973 |
Total Liabilities | 222,185 | 202,086 |
Stockholders' Deficit | ||
Common stock, par value $0.001; 75,000,000 shares authorized, 4,190,000 shares issued and outstanding | 4,190 | 4,190 |
Additional paid-in capital | 22,610 | 22,610 |
Accumulated deficit | (123,985) | (103,886) |
Total Stockholders' Deficit | (97,185) | (77,086) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 125,000 | $ 125,000 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 31, 2022 | Apr. 30, 2021 |
Stockholders' Deficit | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 4,190,000 | 4,190,000 |
Common stock, shares outstanding | 4,190,000 | 4,190,000 |
CONDENSED STATEMENT OF OPERATIO
CONDENSED STATEMENT OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
OPERATING EXPENSES | ||||
General and administrative expenses | $ 5,297 | $ 6,742 | $ 17,866 | $ 13,824 |
Total Operating Expenses | 5,297 | 6,742 | 17,866 | 13,824 |
Loss from operations | (5,297) | (6,742) | (17,866) | (13,824) |
OTHER INCOME (EXPENSES) | ||||
Interest expense | (105) | (112) | (316) | (560) |
Interest expense - related party | (874) | 0 | (1,917) | 0 |
Gain on extinguishment of debt | 0 | 4,293 | 0 | 33,871 |
Other income (expense), net | (979) | 4,181 | (2,233) | 33,311 |
Income (Loss) before income taxes | (6,276) | (2,561) | (20,099) | 19,487 |
Provision for income taxes | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | $ (6,276) | $ (2,561) | $ (20,099) | $ 19,487 |
NET INCOME (LOSS) PER SHARE: BASIC AND DILUTED | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 4,190,000 | 4,190,000 | 4,190,000 | 4,190,000 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS DEFICIT (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance, shares at Apr. 30, 2020 | 4,190,000 | |||
Balance, amount at Apr. 30, 2020 | $ (82,888) | $ 4,190 | $ 22,610 | $ (109,688) |
Net income | 1,261 | $ 0 | 0 | 1,261 |
Balance, shares at Jul. 31, 2020 | 4,190,000 | |||
Balance, amount at Jul. 31, 2020 | (81,627) | $ 4,190 | 22,610 | (108,427) |
Balance, shares at Apr. 30, 2020 | 4,190,000 | |||
Balance, amount at Apr. 30, 2020 | (82,888) | $ 4,190 | 22,610 | (109,688) |
Net income | 19,487 | |||
Balance, shares at Jan. 31, 2021 | 4,190,000 | |||
Balance, amount at Jan. 31, 2021 | (63,401) | $ 4,190 | 22,610 | (90,201) |
Balance, shares at Jul. 31, 2020 | 4,190,000 | |||
Balance, amount at Jul. 31, 2020 | (81,627) | $ 4,190 | 22,610 | (108,427) |
Net income | 20,787 | $ 0 | 0 | 20,787 |
Balance, shares at Oct. 31, 2020 | 4,190,000 | |||
Balance, amount at Oct. 31, 2020 | (60,840) | $ 4,190 | 22,610 | (87,640) |
Net income | (2,561) | $ 0 | 0 | (2,561) |
Balance, shares at Jan. 31, 2021 | 4,190,000 | |||
Balance, amount at Jan. 31, 2021 | (63,401) | $ 4,190 | 22,610 | (90,201) |
Balance, shares at Apr. 30, 2021 | 4,190,000 | |||
Balance, amount at Apr. 30, 2021 | (77,086) | $ 4,190 | 22,610 | (103,886) |
Net income | (7,130) | $ 0 | 0 | (7,130) |
Balance, shares at Jul. 31, 2021 | 4,190,000 | |||
Balance, amount at Jul. 31, 2021 | (84,216) | $ 4,190 | 22,610 | (111,016) |
Balance, shares at Apr. 30, 2021 | 4,190,000 | |||
Balance, amount at Apr. 30, 2021 | (77,086) | $ 4,190 | 22,610 | (103,886) |
Net income | (20,099) | |||
Balance, shares at Jan. 31, 2022 | 4,190,000 | |||
Balance, amount at Jan. 31, 2022 | (97,185) | $ 4,190 | 22,610 | (123,985) |
Balance, shares at Jul. 31, 2021 | 4,190,000 | |||
Balance, amount at Jul. 31, 2021 | (84,216) | $ 4,190 | 22,610 | (111,016) |
Net income | (6,693) | $ 0 | 0 | (6,693) |
Balance, shares at Oct. 31, 2021 | 4,190,000 | |||
Balance, amount at Oct. 31, 2021 | (90,909) | $ 4,190 | 22,610 | (117,709) |
Net income | (6,276) | $ 0 | 0 | (6,276) |
Balance, shares at Jan. 31, 2022 | 4,190,000 | |||
Balance, amount at Jan. 31, 2022 | $ (97,185) | $ 4,190 | $ 22,610 | $ (123,985) |
CONDENSED STATEMENT OF CASH FLO
CONDENSED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (20,099) | $ 19,487 |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Gain on extinguishment of debt | 0 | (33,871) |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued liabilities | (3,428) | 9,144 |
Accrued interest - related party | 1,917 | 0 |
Accrued interest | 317 | 560 |
Net cash used in operating activities | (21,293) | (4,680) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of mining property rights | 0 | (125,000) |
Net cash used in investing activities | 0 | (125,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of promissory note from director | 21,293 | 129,680 |
Net cash provided by financing activities | 21,293 | 129,680 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents - beginning of period | 0 | 0 |
Cash and cash equivalents - end of period | 0 | 0 |
Supplemental Cash Flow Disclosures | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | 0 | 0 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities | ||
Issuance of promissory note - related party | $ 153,913 | $ 0 |
ORGANIZATION AND BUSINESS OPERA
ORGANIZATION AND BUSINESS OPERATIONS | 9 Months Ended |
Jan. 31, 2022 | |
ORGANIZATION AND BUSINESS OPERATIONS | |
ORGANIZATION AND BUSINESS OPERATIONS | NOTE 1 - ORGANIZATION AND BUSINESS OPERATIONS Boxxy Inc. (the “Company”) was incorporated in Nevada on April 19, 2016. We were a development stage company that intended to develop an online beauty sample subscription service. On November 26, 2020, the Company completed an acquisition of working interests in certain mining properties as discussed in Note 4 below. We are currently focusing on mining business. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jan. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended January 31, 2022 are not necessarily indicative of the results that may be expected for the year ending April 30, 2022. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2020 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended April 30, 2021 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on July 29, 2021. 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 at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments ASC 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: Level 1: defined as observable inputs such as quoted prices in active markets; Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of accounts payable and accrued liabilities, accrued interest, current portion of long-term debt, other party loan and loan from director approximates its fair value due to their short-term maturity. Mining Property Costs of lease, exploration, carrying and retaining unproven mineral properties are expensed as incurred. The Company expenses all mineral exploration costs as incurred as it is still in the exploration stage. If the Company identifies proven and probable reserves in its investigation of its properties and upon development of a plan for operating a mine, it would enter the development stage and capitalize future costs until production is established. When a property reaches the production stage, the related capitalized costs are amortized on a units-of-production basis over the proven and probable reserves following the commencement of production. Interest expense allocable to the cost of developing mining properties and to construct new facilities is capitalized until assets are ready for their intended use. To date, the Company has not established the commercial feasibility of any exploration prospects; therefore, all exploration costs are being expensed. ASC 930-805, “Extractive Activities-Mining: Business Combinations” states that mineral rights consist of the legal right to explore, extract, and retain at least a portion of the benefits from mineral deposits. Mining assets include mineral rights which are considered tangible assets under ASC 930-805. ASC 930-805 requires that mineral rights be recognized at fair value as of the acquisition date. As a result, the direct costs to acquire mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated with acquiring patented and unpatented mining claims. ASC 930-805 provides that in measuring the fair value of mineral assets, an acquirer should take into account both: (a) The value beyond proven and probable reserves (“VBPP”) to the extent that a market participant would include VBPP in determining the fair value of the assets. (b) The effects of anticipated fluctuations in the future market price of minerals in a manner that is consistent with the expectations of market participants. As of January 31, 2022, the Company has capitalized a total of $125,000 in mining property rights. Impairment The Company assesses the carrying costs of the capitalized mineral properties for impairment under ASC 360-10, “Impairment of long-lived assets”, and evaluates its carrying value under ASC 930-360, “Extractive Activities - Mining”, annually. An impairment is recognized when the sum of the expected undiscounted future cash flows is less than the carrying amount of the mineral properties. Impairment losses, if any, are measured as the excess of the carrying amount of the mineral properties over its estimated fair value. Based on the Company’s evaluation, no impairment has been recorded on the unproven mining property for the nine months ended January 31, 2022. Revenue Recognition The Company recognized revenue from the sales of mineral products produced from mining operations in accordance with ASC 606,”Revenue Recognition” following the five steps procedure: Step 1: The contract has been signed by both parties or when the invoice has been generated and provided to the customer Step 2: The performance obligations are stated or implied in the contract or invoice Step 3: The transaction price has been identified in the contract or invoice Step 4: The Company has allocated the transaction price to the performance obligations pursuant to the contract or invoice Step 5: The Company satisfied the performance obligations when the mineral products delivered to the purchaser The Company recognized revenue from the royalty revenue in accordance with ASC 606,”Revenue Recognition” following the five steps procedure: Step 1: The contract has been signed by both parties for royalty fees Step 2: The performance obligations are stated or implied in the contract Step 3: The transaction price has been identified in the contract Step 4: The Company has allocated the transaction price to the performance obligations pursuant to the contract Step 5: The Company has satisfied the performance obligations at the same period as the sales that generate the royalty payment Asset Retirement Obligations The Company records a liability for asset retirement obligations (“ARO”) associated with its mining properties when those assets are placed in service. The corresponding cost is capitalized as an asset and included in the carrying amount of mining properties and is depleted over the useful life of the properties. Subsequently, the ARO liability is accreted to its then-present value. Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the mining property balance. Settlements greater than or less than amounts accrued as ARO are recorded as a gain or loss upon settlement. Income Tax The Company is governed by the Income Tax Law of the U.S. Internal Revenue Code. ASC 740-10-50, “Accounting for Uncertainty in Income Taxes,” which provides clarification related to the process associated with accounting for uncertain tax positions should be recognized in the Company’s financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. Related Party Balances and Transactions The Company follows FASB ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transaction. (See Note 5) Basic and Diluted Income (Loss) Per Share The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. As of January 31, 2022 and April 30, 2021, the Company has no dilutive instruments. Recent accounting pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 on a prospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on the Company’s financial statements. Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Jan. 31, 2022 | |
GOING CONCERN | |
GOING CONCERN | NOTE 3 - GOING CONCERN The Company’s financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the financial statements, the Company had an accumulated deficit of $123,985, and working capital deficit of $215,212 at January 31, 2022. The Company is attempting to commence operations and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support the Company’s daily operations. Management intends to raise additional funds by way of a private or public offering. While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
MINING PROPERTY
MINING PROPERTY | 9 Months Ended |
Jan. 31, 2022 | |
MINING PROPERTY | |
MINING PROPERTY | NOTE 4 - MINING PROPERTY On November 26, 2020, the Company entered into an Asset Purchase Agreement with a vendor to acquire undivided 100% right, title and interest in and to unpatented mining claims located in the “Territoire d’Eeyou Istchee Baie-James” Québec, for a purchase price of $125,000. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jan. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 5 - RELATED PARTY TRANSACTIONS On July 1, 2021, the Company issued a promissory note of $153,913 to the Company’s director for previous operating expenses of $28,913 and acquisition of mining interest of $125,000 which were paid by the director on the Company’s behalf as of April 30, 2021. The note is unsecured with annual interest rate of 2% and will mature on December 31, 2022. On July 31, 2021, the Company issued a promissory note of $2,822 for the amount the related party paid to the vendors on behalf of the Company during the three months ended July 31, 2021. The note is unsecured with annual interest rate of 2% and will mature on December 31, 2022. On October 31, 2021, the Company issued a promissory note of $11,450 for the amount the related party paid to the vendors on behalf of the Company during the three months ended October 31, 2021. The note is unsecured with annual interest rate of2% and will mature on December 31, 2022. On January 31, 2022, the Company issued a promissory note of $7,021 for the amount the related party paid to the vendors on behalf of the Company during the three months ended October 31, 2021. The note is unsecured with annual interest rate of2% and will mature on December 31, 2022. During the nine months ended January 31, 2022, the accrued interest on the notes was $1,917. As of January 31, 2022, the loan payable to the related party was $175,206 and accrued interest payable was $1,917. |
LOAN PAYABLE
LOAN PAYABLE | 9 Months Ended |
Jan. 31, 2022 | |
LOAN PAYABLE | |
LOAN PAYABLE | NOTE 6 - LOAN PAYABLE The Company has outstanding long-term loan payable of $6,973 and $6,973 as of January 31, 2022 and April 30, 2021, respectively. The loan payable is unsecured with annual interest rate of 6% and had an original maturity date of April 20, 2020. The maturity date is extended through April 20, 2025. Interest expense was $316 and $560 for the nine months ended January 31, 2022 and 2021, respectively. As of January 31, 2022 and April 30, 2021, accrued interest was $1,596 and $1,279, respectively. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 9 Months Ended |
Jan. 31, 2022 | |
Stockholders' Deficit | |
STOCKHOLDERS EQUITY | NOTE 7 - STOCKHOLDER’S EQUITY The Company has 75,000,000, $0.001 par value shares of common stock authorized. As of January 31, 2022 and April 30, 2021, the Company had 4,190,000 shares issued and outstanding. |
RISK AND UNCERTAINTIES
RISK AND UNCERTAINTIES | 9 Months Ended |
Jan. 31, 2022 | |
RISK AND UNCERTAINTIES | |
RISK AND UNCERTAINTIES | NOTE 8 - RISK AND UNCERTAINTIES In early 2020, the World Health Organization declared the rapidly spreading coronavirus disease (COVID-19) outbreak a pandemic. This pandemic has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no retroactive material adverse impacts on the Company’s results of operations and financial position at January 31, 2022. The full extent of the future impacts of COVID-19 on the Company’s operations is uncertain. A prolonged outbreak could have a material adverse impact on financial results and business operations of the Company in the future. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jan. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 9 - SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations subsequent to January 31, 2022 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jan. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended January 31, 2022 are not necessarily indicative of the results that may be expected for the year ending April 30, 2022. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2020 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended April 30, 2021 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on July 29, 2021. |
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 at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | ASC 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: Level 1: defined as observable inputs such as quoted prices in active markets; Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of accounts payable and accrued liabilities, accrued interest, current portion of long-term debt, other party loan and loan from director approximates its fair value due to their short-term maturity. |
Mining Property | Costs of lease, exploration, carrying and retaining unproven mineral properties are expensed as incurred. The Company expenses all mineral exploration costs as incurred as it is still in the exploration stage. If the Company identifies proven and probable reserves in its investigation of its properties and upon development of a plan for operating a mine, it would enter the development stage and capitalize future costs until production is established. When a property reaches the production stage, the related capitalized costs are amortized on a units-of-production basis over the proven and probable reserves following the commencement of production. Interest expense allocable to the cost of developing mining properties and to construct new facilities is capitalized until assets are ready for their intended use. To date, the Company has not established the commercial feasibility of any exploration prospects; therefore, all exploration costs are being expensed. ASC 930-805, “Extractive Activities-Mining: Business Combinations” states that mineral rights consist of the legal right to explore, extract, and retain at least a portion of the benefits from mineral deposits. Mining assets include mineral rights which are considered tangible assets under ASC 930-805. ASC 930-805 requires that mineral rights be recognized at fair value as of the acquisition date. As a result, the direct costs to acquire mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated with acquiring patented and unpatented mining claims. ASC 930-805 provides that in measuring the fair value of mineral assets, an acquirer should take into account both: (a) The value beyond proven and probable reserves (“VBPP”) to the extent that a market participant would include VBPP in determining the fair value of the assets. (b) The effects of anticipated fluctuations in the future market price of minerals in a manner that is consistent with the expectations of market participants. As of January 31, 2022, the Company has capitalized a total of $125,000 in mining property rights. |
Impairment | The Company assesses the carrying costs of the capitalized mineral properties for impairment under ASC 360-10, “Impairment of long-lived assets”, and evaluates its carrying value under ASC 930-360, “Extractive Activities - Mining”, annually. An impairment is recognized when the sum of the expected undiscounted future cash flows is less than the carrying amount of the mineral properties. Impairment losses, if any, are measured as the excess of the carrying amount of the mineral properties over its estimated fair value. Based on the Company’s evaluation, no impairment has been recorded on the unproven mining property for the nine months ended January 31, 2022. |
Revenue Recognition | The Company recognized revenue from the sales of mineral products produced from mining operations in accordance with ASC 606,”Revenue Recognition” following the five steps procedure: Step 1: The contract has been signed by both parties or when the invoice has been generated and provided to the customer Step 2: The performance obligations are stated or implied in the contract or invoice Step 3: The transaction price has been identified in the contract or invoice Step 4: The Company has allocated the transaction price to the performance obligations pursuant to the contract or invoice Step 5: The Company satisfied the performance obligations when the mineral products delivered to the purchaser The Company recognized revenue from the royalty revenue in accordance with ASC 606,”Revenue Recognition” following the five steps procedure: Step 1: The contract has been signed by both parties for royalty fees Step 2: The performance obligations are stated or implied in the contract Step 3: The transaction price has been identified in the contract Step 4: The Company has allocated the transaction price to the performance obligations pursuant to the contract Step 5: The Company has satisfied the performance obligations at the same period as the sales that generate the royalty payment |
Asset Retirement Obligations | The Company records a liability for asset retirement obligations (“ARO”) associated with its mining properties when those assets are placed in service. The corresponding cost is capitalized as an asset and included in the carrying amount of mining properties and is depleted over the useful life of the properties. Subsequently, the ARO liability is accreted to its then-present value. Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the mining property balance. Settlements greater than or less than amounts accrued as ARO are recorded as a gain or loss upon settlement. |
Income Tax | The Company is governed by the Income Tax Law of the U.S. Internal Revenue Code. ASC 740-10-50, “Accounting for Uncertainty in Income Taxes,” which provides clarification related to the process associated with accounting for uncertain tax positions should be recognized in the Company’s financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. |
Related Party Balances and Transactions | The Company follows FASB ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transaction. (See Note 5) |
Per Share | The Company computes income (loss) per share in accordance with FASB ASC 260, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. As of January 31, 2022 and April 30, 2021, the Company has no dilutive instruments. |
Recent accounting pronouncements | In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 on a prospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on the Company’s financial statements. Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Jan. 31, 2022 | Apr. 30, 2021 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Mining Property Rights | $ 125,000 | $ 125,000 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Jan. 31, 2022 | Apr. 30, 2021 |
GOING CONCERN | ||
Accumulated deficit | $ (123,985) | $ (103,886) |
Working capital deficit | $ 215,212 |
MINING PROPERTY (Details Narrat
MINING PROPERTY (Details Narrative) | 1 Months Ended |
Nov. 26, 2020USD ($) | |
MINING PROPERTY | |
Percentage of right and interest in unpatented mining claims to be acquired under agreement | 100.00% |
Purchase price of right and interest in unpatented mining claims to be acquired under agreement | $ 125,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2022 | Jul. 01, 2021 | |
Accrued interest | $ 1,917 | ||||
Promissory note payable | $ 11,450 | 7,021 | $ 153,913 | ||
Loan payable | 175,206 | ||||
Accrued interest payable | 1,917 | ||||
Director [Member] | |||||
Promissory note payable | $ 2,822 | $ 11,450 | |||
Maturity date | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | ||
Interest rate | 2.00% | 2.00% | 2.00% | ||
Operating expenses | $ 28,913 | ||||
Acquisition of mining interest | $ 125,000 |
LOAN PAYABLE (Details Narrative
LOAN PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Apr. 30, 2021 | |
Interest expenses | $ 105 | $ 112 | $ 316 | $ 560 | |
Accrued interest | 1,596 | 1,596 | $ 1,279 | ||
Loan Payable | 6,973 | 6,973 | 6,973 | ||
Long term debt-current portion [Member] | |||||
Loan Payable | $ 6,973 | $ 6,973 | $ 6,973 | ||
Interest rate | 6.00% | ||||
Debt maturity date | Apr. 20, 2020 | ||||
Debt maturity date, extended | Apr. 20, 2025 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - $ / shares | Jan. 31, 2022 | Apr. 30, 2021 |
STOCKHOLDERS EQUITY (Details Narrative) | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 4,190,000 | 4,190,000 |
Common stock, shares outstanding | 4,190,000 | 4,190,000 |