Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Feb. 28, 2018 | Apr. 13, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | MIKROCOZE INC. | |
Entity Central Index Key | 1,697,587 | |
Document Type | 10-Q | |
Document Period End Date | Feb. 28, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 75,000,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Feb. 28, 2018 | Nov. 30, 2017 |
CURRENT ASSETS | ||
Cash | $ 1,806 | $ 1,086 |
Inventory | 920 | |
TOTAL CURRENT ASSETS | 2,726 | 1,086 |
CURRENT LIABILITIES | ||
Accounts payable | 4,332 | 1,218 |
Due to related party | 21,659 | 11,900 |
TOTAL CURRENT LIABILITIES | 25,991 | 13,118 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' DEFICIT | ||
Common stock Authorized 200,000,000 shares of common stock, $0.001 par value,Issued and outstanding 75,000,000 and 75,000,000 shares of common stock (refer Note 3) | 75,000 | 75,000 |
Subscription receivable from officer | (2,144) | (2,144) |
Additional paid-in capital | (51,000) | (51,000) |
Accumulated deficit | (45,121) | (33,888) |
TOTAL STOCKHOLDERS' DEFICIT | (23,265) | (12,032) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 2,726 | $ 1,086 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 28, 2018 | Nov. 30, 2017 |
STOCKHOLDERS' DEFICIT | ||
Common Stock; Par Value | $ 0.001 | $ 0.001 |
Common Stock; Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock; Shares Issued | 75,000,000 | 75,000,000 |
Common Stock; Shares Outstanding | 75,000,000 | 75,000,000 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
REVENUE | ||
Product sales | $ 820 | |
Cost of goods | (362) | |
GROSS PROFIT | 458 | |
OPERATING EXPENSES | ||
General and administrative | 5,441 | 755 |
Professional fees | 6,250 | 8,250 |
TOTAL OPERATING EXPENSES | (11,691) | (9,005) |
NET LOSS | $ (11,233) | $ (9,005) |
NET LOSS PER COMMON SHARE - BASIC AND DILUTED | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 75,000,000 | 450,000,000 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss for the period | $ (11,233) | $ (9,005) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Expenses paid on behalf of the Company by related party | 9,759 | 1,339 |
Changes in operating assets and liabilities | ||
Inventory | (920) | |
Accounts payable | 3,114 | 570 |
NET PROVIDED BY (CASH USED) IN OPERATING ACTIVITIES | 720 | (7,096) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
NET CHANGE IN CASH | 720 | (7,096) |
CASH, BEGINNING OF PERIOD | 1,086 | 9,020 |
CASH, END OF PERIOD | 1,806 | 1,924 |
SUPPLEMENTAL CASH FLOW INFORMATION AND NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Cash paid during the period for: Interest | ||
Cash paid during the period for: Income taxes |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 3 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION | Mikrocoze Inc. was incorporated in the State of Nevada as a for-profit Company on August 17, 2016 and established a fiscal year end of November 30. The Company is organized to sell micro-furniture that is designed to maximize any small space and to sell its products via the internet. Going concern To date the Company has generated no revenues from its business operations and has incurred operating losses since inception of $45,121. As at February 28, 2018, the Company has a working capital deficit of $23,265. The Company will require additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Companys ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. As of February 28, 2018, the Company has issued 75,000,000 shares of common stock for cash of $21,856 (an additional $2,144 was received subsequent to February 28, 2018). These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation Unaudited Financial Statements The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the fiscal year ended November 30, 2017 included in the Companys year-end financial statements on Form 10-K filed with the Securities and Exchange Commission. The unaudited financial statements should be read in conjunction with those financial statements included in the Form S-1. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended February 28, 2018 are not necessarily indicative of the results that may be expected for the year ending November 30, 2018. Use of Estimates and Assumptions Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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 period. Accordingly, actual results could differ from those estimates. Commitments and Contingencies On August 26, 2017 the Company signed (renewed) its lease for office space in Chesapeake, Virginia. The term of the lease is for one year at $70 per month. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Inventory We value our inventories at the lower of cost, determined on a first-in, first-out method, or market value. Our inventory consists solely of finished goods. We review inventories on hand at least quarterly and record provisions for estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and obsolete finished product. Revenue Recognition The Company recognizes revenue in accordance with ASC topic 606 Revenue from Contracts with Customers, and other applicable revenue recognition guidance under US GAAP. Sales revenue is recognized for our retail and wholesale customers when: (i) persuasive evidence of a sales arrangement exists, (ii) the sales terms are fixed or determinable, (iii) title and risk of loss have transferred, and (iv) collectability is reasonably assured generally when products are shipped to the customer and goods are shipped, except in situations in which title passes upon receipt of the products by the customer. Revenue consists of revenue earned for the sale of furniture and revenue is recognized at the time the payment is received from the customer. Foreign Currency Translation The Company translates the foreign currency financial statements into US Dollars using the year or reporting period end of average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (ASC 830-10). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders equity (deficit). Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses of the statement of operations. Fair Value of Financial Instruments The carrying amount of the Companys financial assets and liabilities approximates their fair values due to their short term maturities. Loss per Common Share The basic loss per share is calculated by dividing the Companys net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Companys net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted loss per share is the same as basic loss per share due to the lack of dilutive items in the Company. As of February 28, 2018, there were no common stock equivalents outstanding. Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment. Stock-based Compensation The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company has not adopted a stock option plan and has not granted any stock options. As at February 28, 2018 the Company had not adopted a stock option plan nor had it granted any stock options. Accordingly no stock-based compensation has been recorded to date. Recent Accounting Pronouncements The Company has adopted ASC 606 on January 1, 2018, Revenue from Contracts and Customers, and supersedes the existing revenue recognition of Topic 605. ASC 606 directs entities to recognize revenue when the promised goods or services are transferred to the customer. The amount of revenue recognized equals the total consideration an entity expects to receive in return for the goods. The Company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements. |
COMMON STOCK
COMMON STOCK | 3 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
NOTE 3 - COMMON STOCK | The Company is authorized to issue 200,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued. On October 27, 2017, the directors of the Company approved a special resolution to undertake a forward split of the common stock of the company on a basis of 50 new common shares for 1 old common share. All references in these financial statements to number of common shares, price per share and weighted average number of shares outstanding prior to the 50:1 forward split have been adjusted to reflect the stock split on a retroactive basis, unless otherwise noted. On November 16, 2016, the Company issued 450,000,000 common shares at $0.00002 per share (9,000,000 common shares at $0.001-pre-spit) to the sole director and President of the Company for cash proceeds of $9,000. Between August 8 and September 1, 2017, the Company sold 25,000,000 shares of its common stock at $0.0006 per share (500,000 common shares at $0.03- pre-split) for $15,000 net proceeds to the Company. As of February 28, 2018, $2,144 from these stock subscriptions remained in a bank account in India controlled by the Companys CEO. This amount is reported as a subscription receivable from officer on the balance sheet. The full amount was received into the Companys US bank account prior to issuing these financial statements. On October 27, 2017, the founding shareholder returned 400,000,000 (8,000,000 pre-split) restricted shares of common stock to treasury and the shares were subsequently cancelled by the Company. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
NOTE 4 - RELATED PARTY TRANSACTIONS | During the period ended November 30, 2017 the Company consummated a private placement as a result of which $15,000 was raised through the purchase of 25,000,000 shares of the Companys common stock by third party investors. To facilitate the transfer of funds from the investors to the Company, the proceeds from the private placement were held in an account owned by Mikrocoze Private Limited., a private company owned by Sukmanjit Singh, the Companys CEO. As of February 28, 2018, $12,856 of the funds were transferred to the Companys account. The full amount was received subsequent to period end. During the period ended February 28, 2018, the CEO paid expenses of $9,759 on behalf of the Company. The total amount owed to the CEO as of February 28, 2018 is $21,659 (November 30, 2017 - $11,900). The amounts due to related party are unsecured and non- interest-bearing with no set terms of repayment. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
NOTE 5 - SUBSEQUENT EVENTS | On March 13, 2018, the Company received funds for the stock subscription receivable from officer ($2,144). |
SUMMARY OF SIGNIFICANT ACCOUN11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Feb. 28, 2018 | |
Summary Of Significant Accounting Policies Policies | |
Basis of Presentation - Unaudited Financial Statements | The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the fiscal year ended November 30, 2017 included in the Companys year-end financial statements on Form 10-K filed with the Securities and Exchange Commission. The unaudited financial statements should be read in conjunction with those financial statements included in the Form S-1. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended February 28, 2018 are not necessarily indicative of the results that may be expected for the year ending November 30, 2018. |
Use of Estimates and Assumptions | Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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 period. Accordingly, actual results could differ from those estimates. |
Commitments and Contingencies | On August 26, 2017 the Company signed (renewed) its lease for office space in Chesapeake, Virginia. The term of the lease is for one year at $70 per month. |
Cash and Cash Equivalents | For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. |
Inventory | We value our inventories at the lower of cost, determined on a first-in, first-out method, or market value. Our inventory consists solely of finished goods. We review inventories on hand at least quarterly and record provisions for estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and obsolete finished product. |
Revenue Recognition | The Company recognizes revenue in accordance with ASC topic 606 Revenue from Contracts with Customers, and other applicable revenue recognition guidance under US GAAP. Sales revenue is recognized for our retail and wholesale customers when: (i) persuasive evidence of a sales arrangement exists, (ii) the sales terms are fixed or determinable, (iii) title and risk of loss have transferred, and (iv) collectability is reasonably assured generally when products are shipped to the customer and goods are shipped, except in situations in which title passes upon receipt of the products by the customer. Revenue consists of revenue earned for the sale of furniture and revenue is recognized at the time the payment is received from the customer. |
Foreign Currency Translation | The Company translates the foreign currency financial statements into US Dollars using the year or reporting period end of average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (ASC 830-10). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders equity (deficit). Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses of the statement of operations. |
Fair Value of Financial Instruments | The carrying amount of the Companys financial assets and liabilities approximates their fair values due to their short term maturities. |
Loss per Common Share | The basic loss per share is calculated by dividing the Companys net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Companys net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted loss per share is the same as basic loss per share due to the lack of dilutive items in the Company. As of February 28, 2018, there were no common stock equivalents outstanding. |
Income Taxes | The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment. |
Stock-based Compensation | The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company has not adopted a stock option plan and has not granted any stock options. As at February 28, 2018 the Company had not adopted a stock option plan nor had it granted any stock options. Accordingly no stock-based compensation has been recorded to date. |
Recent Accounting Pronouncements | The Company has adopted ASC 606 on January 1, 2018, Revenue from Contracts and Customers, and supersedes the existing revenue recognition of Topic 605. ASC 606 directs entities to recognize revenue when the promised goods or services are transferred to the customer. The amount of revenue recognized equals the total consideration an entity expects to receive in return for the goods. The Company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements. |
NATURE OF OPERATIONS AND BASI12
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details Narrative) - USD ($) | 3 Months Ended | 18 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | |
Nature Of Operations And Basis Of Presentation Details Narrative | |||
State or country of incorporation | Nevada | ||
Incorporation date | Aug. 17, 2016 | ||
Operating income loss | $ 45,121 | ||
Working capital deficit | $ 23,265 | $ 23,265 | |
Common stock issued | 75,000,000 | 75,000,000 | |
Common shares issued for cash, amount | $ 21,856 | ||
Subscription received from officer | $ 2,144 | $ 2,144 | $ 2,144 |
SUMMARY OF SIGNIFICANT ACCOUN13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 1 Months Ended |
Aug. 26, 2017USD ($) | |
Summary Of Significant Accounting Policies Details Narrative | |
Term of lease | 1 year |
Rent expenses per month | $ 70 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Oct. 27, 2017 | Nov. 16, 2016 | Feb. 28, 2018 | Nov. 30, 2017 | |
Common Stock; Shares Authorized | 200,000,000 | 200,000,000 | ||
Common Stock; Par Value | $ 0.00002 | $ 0.001 | $ 0.001 | |
Common Stock; Shares Issued | 450,000,000 | 75,000,000 | 75,000,000 | |
Common shares issued for cash, amount | $ 21,856 | |||
Common stock issued | 75,000,000 | |||
Stock split | 50:1 | |||
Restricted stock shares issued | 400,000,000 | |||
Subscription receivable from officer | $ (2,144) | $ (2,144) | ||
Pre Split [Member] | ||||
Restricted stock shares issued | 8,000,000 | |||
August 8 and September 1, 2017 [Member] | ||||
Price per share | $ 0.03 | |||
Common stock shares sold | 25,000,000 | |||
Common shares issued for cash, amount | $ 15,000 | |||
Common stock issued | 500,000 | |||
Sale of common stock price per share | $ 0.0006 | |||
Director And President [Member] | ||||
Common Stock; Shares Issued | 9,000,000 | |||
Price per share | $ 0.001 | |||
Common shares issued for cash, amount | $ 9,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Expenses paid on behalf of the Company by related party | $ 9,759 | $ 1,339 | |
Due to related party | $ 11,900 | $ 21,659 | |
Common stock issued | 75,000,000 | ||
Common shares issued for cash, amount | $ 21,856 | ||
CEO [Member] | |||
Expenses paid on behalf of the Company by related party | 9,759 | ||
Due to related party | $ 11,900 | 21,659 | |
Third Party Investors [Member] | |||
Common stock issued | 25,000,000 | ||
Common shares issued for cash, amount | $ 15,000 | ||
Proceeds on sale of common stock | $ 12,856 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Mar. 13, 2018 | Feb. 28, 2018 | Nov. 30, 2017 |
Subscription received from officer | $ 2,144 | $ 2,144 | |
Subsequent Event [Member] | |||
Subscription received from officer | $ (2,144) |