| Significant and Critical Accounting Policies and Practices | Note 2 – Significant
and Critical Accounting Policies and Practices Basis of Presentation The Company’s consolidated financial statements
have been prepared in accordance with US GAAP. Common Control The transactions between
the Company and Migom Bank and Central, which all three are under common control, resulted in a change in reporting entity and required
retrospective combination of the entities for all periods presented, as if the combination had been in effect since the inception of common
control. Accordingly, the consolidated financial statements of the Company reflect the accounting of the combined acquired subsidiaries
at historical carrying values, except that equity reflects the equity of Migom Global. Principles of Consolidation The accompanying unaudited
consolidated financial statements include all of the accounts of Migom Global Corp. and its wholly owned subsidiaries, Migom Bank and
Central. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates and Assumptions and
Critical Accounting Estimates and Assumptions The preparation of financial
statements in conformity with accounting principles generally accepted in the United States of America 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 of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical accounting estimates
are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account
for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition
or operating performance is material. The Company’s critical accounting estimate(s) and assumption(s) affecting the financial statements
was (were): (i) (ii) These significant accounting
estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions,
and certain estimates or assumptions are difficult to measure or value. Management bases its
estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements
taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets
and liabilities that are not readily apparent from other sources. Management regularly
evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and
circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted
accordingly. Actual results could
differ from those estimates. Fair Value Measurements The Company adopted the
provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting
pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value
of certain financial instruments, including cash and cash equivalents are carried at historical cost basis, which approximates their fair
values because of the short-term nature of these instruments. ASC 820 defines fair
value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820
also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets
or liabilities Level 2 — quoted prices for similar assets
and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for
example cash flow modeling inputs based on assumptions) The carrying amounts
of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts payable, due to related party and
note payable approximate their fair values because of the short maturity of these instruments. Cash, Due from Banks and Cash Equivalents The Company considers
all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The cash and cash
equivalents consist of cash deposits of bank accounts holders and the Company’s operating cash. The Common Wealth of Dominica banking regulators
do not require bank subsidiaries to maintain minimum average reserve balances, either in the form of vault cash or reserve balances held
with central banks or other financial institutes. Negative interest rate The European Central
Bank and the central banks of Denmark, Japan, Sweden, and Switzerland have implemented negative interest rates policy to stimulate their
countries’ economies which essentially making banks pay to park their excess cash at the central bank. The Company is subject to
negative interest rate for its cash deposits in a Switzerland bank account. Negative interest rate expenses were $23,670 and $47,920 for the Three
months ended March 31, 2022 and 2021. Intangible Assets Costs incurred to acquire
intangibles are capitalized when the Company believes that there is a high likelihood that the software will be utilized and there will
be future economic benefit associated with the software. These costs will be amortized on a straight-line basis over a 10 years and 7
years life from the date of acquisition for Migom Bank and Migom Corp, respectively. In accordance with the
provisions of the applicable authoritative guidance, the Company’s long-lived assets and amortizable intangible assets are tested
for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company assesses
the recoverability of such assets by determining whether their carrying value can be recovered through undiscounted future operating cash
flows, including its estimates of revenue driven by assumed market segment share and estimated costs. If impairment is indicated, the
Company measures the amount of such impairment by comparing the fair value to the carrying value. The intangible assets
consists of source code, all the backups therefor, supporting documentation, manuals, schematics, computer graphics and the underlying
custom images, copyrights therefor, URL domain names, as well as all the software technology and knowhow and any and all other worldwide
intellectual property rights in full force and effect currently in perpetuity from the date hereof and all the associated intangible assets
related to as well as involved in the design, reproduction, deployment on servers and in the cloud and exploitation of the following items:
1. Mathematical formulas, technical, programming in any and all programming coding languages and other designs, work papers and any and all developed and implemented and/or under development intellectual property involving core banking and client-facing front end software and back end administrative user interface software, banking and trading cloud-based and server software used under the brand name Migom Bank (www.migom.com).
2. Mathematical formulas, technical, programming in any and all programming coding languages and other designs, work papers and any and all developed and implemented and/or under development intellectual property involving mobile application in Android operating systems deployed in Google Play under the name of Migom Bank.
3. Mathematical formulas, technical, programming in any and all programming coding languages and other designs, work papers and any and all developed and implemented and/or under development intellectual property involving mobile application in iOS operating system deployed in Apple App Store under the name of Migom Bank. Related Parties The Company follows subtopic
850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20
the related parties include (a) affiliates of the Company (“Affiliate” means, with respect to any specified Person, any other
Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such
Person, as such terms are used in and construed under Rule 405 under the Securities Act); (b) entities for which investments in their
equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15,
to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing
trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company;
(f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies
of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g)
other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership
interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting
parties might be prevented from fully pursuing its own separate interests. The financial statements
shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other
similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated
or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s)
involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each
of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects
of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements
are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts
due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of
settlement. Leases We determine if an arrangement
is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities
- current, and operating lease liabilities - noncurrent on the balance sheets. Finance leases are included in property and equipment,
other current liabilities, and other long-term liabilities in our balance sheets. The initial lease liability is equal to the future fixed
minimum lease payments discounted using the Company’s incremental borrowing rate, on a secured basis. The initial measurement of
the right-of-use asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any lease incentives. ROU assets represent
our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising
from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments
over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the
estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating
lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or
terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on
a straight-line basis over the lease term. Impairment of Long-lived
Assets The Company follows paragraph
360-10-05-4 of the FASB Accounting Standards Codification for its long-lived assets. The Company’s long-lived assets, such as intellectual
property, are required to be reviewed for impairment annually, or whenever events or changes in circumstances indicate that the carrying
amount of the asset may not be recoverable. The Company assesses
the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived
asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment,
if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the
asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be
recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the
long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company determined
that there were no impairments of long-lived assets at March 31, 2022 and December 31, 2021. Revenue Recognition In 2014, the FASB issued
guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is
to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates
a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying
the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining
the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each
performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will
collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company has concluded that the
new guidance did not require any significant change to its revenue recognition processes. The Company generates
revenue from service fees such as opening of bank account, currency exchange fee and banking services fee. The banking service fee is
transactional based on deposit and withdrawals and FX conversions. Service fees charged to banking clients are based on standard rates
established by the Company for each category of clients. The Company can also charge customized rates to specific client based on negotiated
terms or other preferences such as volume of transactions, account balances, etc. Cost of Revenue Cost of revenue is comprised
of commissions paid to banking partners, and commissions paid to other financial institutions, such as EMI’s (Electronic Money Institutions),
both partners operating in Europe; and interest on deposits due to negative interest rate paid to our banking partners. Segment Information The Company adopted ASC-280, Disclosures
about Segments of an Enterprise and Related Information Income Taxes Income taxes are provided
in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences
between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change
during the year of deferred tax assets and liabilities. Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred
tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the
date of enactment. Net Income (Loss) per Common Share The Company computes
basic and diluted income (loss) per share amounts pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic loss
per share is computed by dividing net loss available to common shareholders, by the weighted average number of shares of common stock
outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted loss per share is computed by dividing
net loss available to common shareholders by the diluted weighted average number of shares of common stock during the period. The diluted
weighted average number of common shares outstanding is the basic weighted number of shares adjusted as of the first day of the year for
any potentially diluted debt or equity. The dilutive effect of
outstanding convertible securities and preferred stock is reflected in diluted earnings per share by application of the if-converted method. Foreign Currency
Translation and Transactions The Caribbean Dollar
(“XCD) is the functional currency for Migom Bank Ltd operating expenses in Dominica. Whereas the financial statements are reported
in United States Dollar (“USD,” “$”). Assets and liabilities are translated based on the exchange rates at the
balance sheet date, while revenue and expense accounts are translated at the average exchange rates prevailing during the period. Equity
accounts are translated at historical exchange rates. The resulting translation gain and loss adjustments are accumulated as a component
of stockholders’ equity and other comprehensive loss. Comprehensive Income/Loss The Company reports comprehensive
loss and its components in its financial statements. Comprehensive loss consists of net loss on foreign currency translation adjustments
affecting stockholders’ equity that, under U.S. GAAP, are excluded from net loss. Cash Flows Reporting The Company adopted paragraph
230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to
whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect
or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification
to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by
removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash
receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.
The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the
cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation
of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities
not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. Recently Issued Accounting Pronouncements In December 2019, the
FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the
general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year.
This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based
tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the
tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting
purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change
in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard
is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently
in the process of evaluating the impact of the adoption on its consolidated financial statements. In June 2016, the FASB
issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.”
This pronouncement, along with subsequent ASUs issued to clarify provisions of ASU 2016-13, changes the impairment model for most financial
assets and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model,
entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized
cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. In developing
the estimate for lifetime expected credit loss, entities must incorporate historical experience, current conditions, and reasonable and
supportable forecasts. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning
after December 15, 2019. On November 19, 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326),
finalized various effective date delays for private companies, not-for-profit organizations, and certain smaller reporting companies applying
the credit losses (CECL), the revised effective date is January 2023. Management does not believe
that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying
financial statements. |
