Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Aug. 04, 2020 | Oct. 31, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2020 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity File Number | 333-219700 | ||
Entity Registrant Name | Treasure & Shipwreck Recovery, Inc. | ||
Entity Central Index Key | 0001703625 | ||
Entity Tax Identification Number | 37-1844836 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | 13046 Racetrack Road | ||
Entity Address, Address Line Two | #234 Tampa | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33626 | ||
City Area Code | 813 | ||
Local Phone Number | 504-7831 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 21,180,509 | ||
Entity Common Stock, Shares Outstanding | 7,396,502 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Current Assets | ||
Cash | $ 6,678 | |
Total Current Assets | 6,678 | 0 |
Fixed Assets | ||
Fixed assets, net of depreciation | 147,036 | 0 |
Trademarks | 636,000 | 0 |
Security deposit | 1,000 | 0 |
Total Assets | 790,714 | 0 |
Current Liabilities | ||
Accounts Payable | 55,500 | 1,899 |
Customer Deposits | 8,700 | 8,700 |
Short Term Loans | 16,763 | 16,763 |
Related party convertible loan | 46,390 | 17,790 |
Total Current Liabilities | 127,353 | 45,152 |
Total Liabilities | 127,353 | 45,152 |
Commitments and Contingencies | 0 | |
Stockholder's Equity | ||
Common stock, par value $0.001; 75,000,000 shares authorized, 7,396,502 and 5,035,000 shares issued and outstanding | 7,397 | 5,035 |
Common stock to be issued | 79,500 | |
Additional paid in capital | 1,257,553 | 38,665 |
Accumulated deficit | (681,089) | (88,852) |
Total Stockholder's Equity | 663,361 | (45,152) |
Total Liabilities and Stockholder's Equity | $ 790,714 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 30, 2020 | Apr. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 7,396,502 | 5,035,000 |
Common Stock, Shares Outstanding | 7,396,502 | 5,035,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Statement [Abstract] | ||
REVENUES | $ 14,150 | |
Cost of Revenues | ||
Gross Profit | 14,150 | |
OPERATING EXPENSES | ||
Professional Fees | 142,301 | 13,735 |
Research and Development | 120,000 | |
Boat Expenses | 110,586 | |
Consulting and Accounting | 106,000 | 8,523 |
General and Administrative Expenses | 56,329 | 36,908 |
Labor | 41,667 | |
Depreciation | 15,354 | 3,566 |
TOTAL OPERATING EXPENSES | 592,237 | 62,732 |
NET LOSS FROM OPERATIONS | (592,237) | (48,582) |
PROVISION FOR INCOME TAXES | ||
NET LOSS | $ (592,237) | $ (48,582) |
NET LOSS PER SHARE: BASIC AND DILUTED | $ (0.08) | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 7,704,742 | 5,035,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKERS' DEFICIT - USD ($) | Common Stock | Common Stock to be Issued [Member] | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance at Apr. 30, 2018 | $ 5,035 | $ 38,665 | $ (40,270) | $ 3,430 | |
Beginning Balance, Shares at Apr. 30, 2018 | 5,035,000 | ||||
Net (Loss) for the period | (48,582) | (48,582) | |||
Ending Balance at Apr. 30, 2019 | $ 5,035 | 38,665 | (88,852) | (45,152) | |
Ending Balance, Shares at Apr. 30, 2019 | 5,035,000 | ||||
Sale of Stock | $ 3,162 | 480,088 | 483,250 | ||
Sale of Stock, Shares | 3,161,502 | ||||
Stock compensation | $ 100 | 62,500 | 16,900 | 79,500 | |
Stock compensation (in shares) | 100,000 | ||||
Shares issued for purchase of assets | $ 1,700 | 17,000 | 719,300 | 738,000 | |
Shares issued for purchase of assets (in shares) | 1,700,000 | ||||
Share cancellation | $ (2,600) | 2,600 | |||
Share cancellation (in shares) | (2,600,000) | ||||
Net (Loss) for the period | (592,237) | (592,237) | |||
Ending Balance at Apr. 30, 2020 | $ 7,397 | $ 79,500 | $ 1,257,553 | $ (681,089) | $ 663,361 |
Ending Balance, Shares at Apr. 30, 2020 | 7,396,502 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (592,237) | $ (48,582) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 15,354 | 3,566 |
Stock Compensation | 79,500 | |
Loss on disposal of fixed assets | 17,720 | |
Changes in operating assets and liabilities: | ||
Changes in Prepaid Expenses | 950 | |
Changes in Security deposit | (1,000) | |
Changes in Accounts Payable | 53,601 | (6,601) |
Changes in Customer Deposits | 1,700 | |
CASH FLOWS USED IN OPERATING ACTIVITIES | (444,782) | (31,247) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of Equipment | (60,390) | |
CASH FLOWS FROM INVESTING ACTIVITIES | (60,390) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Increase in Short term loans | 6,200 | |
Increase in related party converted loan | 28,600 | 17,790 |
Proceed from sales of common stock | 483,250 | |
CASH FLOWS FROM FINANCING ACTIVITIES | 511,850 | 23,990 |
NET INCREASE (DECREASE) IN CASH | 6,678 | (7,257) |
Cash, beginning of period | 7,257 | |
Cash, end of period | 6,678 | |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | ||
Income taxes paid | ||
NON-CASH OPERATING AND FINANCING ACTIVITIES: | ||
Purchase of trademark and related graphics | 636,000 | |
Acquisition of www.flavorfullapps.com | $ 102,000 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | Note 1 – ORGANIZATION AND NATURE OF BUSINESS Treasure& Shipwreck Recovery, Inc (“TSR” or the “Company”). was incorporated in the State of Nevada on October 24, 2016 as Beliss Corp. The Company changed its name to Treasure & Shipwreck Recovery Inc. on June 26, 2019. TSR formed TSR Holdings, Inc., a wholly owned subsidiary, on August 22, 2019 as the Company’s operating vehicle to focus on the recovery of sunken treasure from historic shipwrecks. The Company was originally focused on the development of high impact internet marketing, search engine optimization (“SEO”) software and techniques, and the development of digital properties (collectively “Internet Marketing”). On April 6, 2020, TSR formed TSR Media Group, Inc. (“TSR Media”), a wholly owned subsidiary, in order to develop various digital media properties. TSR Media is in the process of developing, through an outside app developer, a treasure search and salvage gaming app. TSR Media also entered into an agreement to purchase a domain called www.flavorfullapps.com |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Apr. 30, 2020 | |
Going Concern | |
GOING CONCERN | Note 2 – GOING CONCERN These consolidated financial statements have been prepared on a going concern basis, which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred net losses since inception, which raises substantial doubt about the Company’s ability to continue as a going concern. Based on its historical rate of expenditures, the Company expects to expend its available cash in less than one month from August 13, 2020. Management’s plans include raising capital through the equity markets to fund operations and, eventually, the generation of revenue through its business. The Company does not expect to generate any significant revenues for the foreseeable future. At April 30, 2020, the Company had a net working capital deficit of $120,675. The Company is in immediate need of further working capital and is seeking options, with respect to financing, in the form of debt, equity or a combination thereof. Failure to raise adequate capital and generate adequate revenues could result in the Company having to curtail or cease operations. The Company’s ability to raise additional capital through the future issuances of the common stock is unknown. Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurances that the revenue will be sufficient to enable it to develop to a level where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern; however, the accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These consolidated financial statements do not include any adjustments relating to the recovery of the recorded assets or the classifications of the liabilities that might be necessary should the Company be unable to continue as a going concern. Covid-19 Disclosure The Company’s operations may be adversely affected by the ongoing outbreak of the coronavirus disease 2019 (“COVID-19”) which was declared a pandemic by the World Health Organization (“WHO”) in March 2020. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on TSR’s financial position, operations and cash flows. Additionally, it is possible that the Company may face additional challenges in obtaining financing due to COVID-19’s effects on the general economy and the capital markets. If the Company is not able to obtain financing due to COVID-19, then it is highly likely that it will be forced to cease operations. The impact on smaller companies such as TSR of having to cease operations due to the effects of COVID-19 would likely result in the Company not being able to survive and would cause a complete loss of all capital invested in the Company. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation This summary of significant accounting policies of TSR is presented to assist in understanding the Company’s consolidated financial statements. The consolidated financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) and have been consistently applied in the preparation of the consolidated financial statements. The Company’s year-end is April 30. Principles of Consolidation The consolidated financial statements of the Company include the accounts of TSR Holdings, Inc. and TSR Media which are wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The process of preparing consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Significant estimates for the years ended April 30, 2020 and 2019 include useful life of property and equipment, valuation allowances against deferred tax assets and fair value of non cash equity transactions. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. The Company had $6,678 of cash as of April 30, 2020 and $0 as of April 30, 2019. There were no cash equivalents at April 30, 2020 and 2019. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of April 30, 2020, the Company had $0 in excess of the FDIC insured limit. Research and Development Expenses Expenditures for research and development are expensed as incurred. The Company incurred research and development expenses of $120,000 and $0 for the years ended April 30, 2020 and 2019, respectively. Revenue Recognition Effective May 1, 2018, the Company adopted the guidance of ASC 606, Revenue from contracts with customers. The new revenue recognition standard has not had an impact on the Company since the Company has not generated any revenues during the year ended April 30, 2020. For the Company’s service contracts, the services provided are considered to be one single performance obligation. Revenue and expenses are recognized as services are rendered. The average period for satisfying the performance obligation is three months. We have analyzed all of our contracts and can confirm that all the requirements are considered in these contracts: 1) The contracts with customers were identified; 2) The performance obligation was the creation of a website and the provision of SEO-optimization and other services for this site; 3) The transaction price was determined; 4) The Company has only one performance obligation, so the whole transaction price is related to this performance obligation; 5) The revenue was recognized when the performance obligation had been satisfied. The Company offers no discounts, rebates, rights of return, or other allowances to clients which would result in the establishment of reserves against service revenue. Additionally, to date, the Company has not incurred incremental costs in obtaining a client contract. Basic Loss per Share The Company computes loss per share in accordance with Financial Accounting Standards Board (FASB) ASC 260 “ Earnings per Share Fair Value of Financial Instruments The carrying amounts of financial assets and liabilities, such as cash, accounts payable, short term loans, and the Company’s related party loan from a shareholder approximate their fair values because of the short maturity of these instruments. Fixed Assets Fixed assets are recorded at historical cost. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Gains and losses upon disposition are reflected in the consolidated statements of operations in the period of disposition. Maintenance and repair expenditures are charged to expense as incurred. Currently the Company’s only assets are a diving vessel and a magnetometer which were both purchased in fiscal year 2020 and are being depreciated over ten and three year useful lives, respectively. Impairment of Long-Lived and Intangible Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. We periodically evaluate whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, we use market quotes, if available or an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. We did not recognize impairment on its long-lived assets during the years ended April 30, 2020 or 2019. Identified intangible assets are reviewed for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Our existing intangible assets consist solely of a website and related software applications. Stock Based Compensation to Employees and Service Providers We recognize all share-based payments to employees and service providers, including grants of employee stock options, as compensation expense in the financial statements based on their fair values. That expense will be recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period) or immediately if the share-based payments vest immediately. Customer Deposits Customer deposits discloses an amount paid by a customer prior to the Company providing it with goods or services. The Company has an obligation to provide the goods or services to the customer or to return the money. The Company had $8,700 in customer deposits as of April 30, 2020 and 2019. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. Recent Accounting Pronouncements All other recent accounting pronouncements issued by the Financial Accounting Standards Board, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Apr. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | Note 4 – FIXED ASSETS Fixed assets at April 30, 2020 and 2019 are summarized below: Fixed Assets April 30, 2020 April 30, 2019 App $ 102,000 $ - Diving Vessel 36,390 - Magnetometer 24,000 - Accumulated Depreciation (15,354 ) - Fixed Assets, Net $ 147,036 $ - Depreciation expense was $15,354 and $3,566 for the years ended April 30, 2020 and 2019, respectively. Depreciation expense for the year ended April 30, 2020 are related to the diving vessel, the magnetometer, the app. Depreciation expense for the year ended April 30, 2019 was for furniture and office equipment that the Company wrote down to a balance of $0 at April 30, 2019. TSR Media entered into an App Company and App Purchase agreement with an individual on February 12, 2020 to purchase a website, www.flavorfullapps.com |
PURCHASE OF TRADEMARK, GRAPHICS
PURCHASE OF TRADEMARK, GRAPHICS, RELATED MEDIA AND PRODUCT MATERIALS | 12 Months Ended |
Apr. 30, 2020 | |
Business Combinations [Abstract] | |
PURCHASE OF TRADEMARK, GRAPHICS, RELATED MEDIA AND PRODUCT MATERIALS | Note 5 – PURCHASE OF TRADEMARK, GRAPHICS, RELATED MEDIA AND PRODUCT MATERIALS The Company entered into a Trademark and Usage Purchase Agreement with Galleon Quest, LLC (“GQ”), a privately held limited liability company, on March 5, 2020. Under the terms of the Trademark and Usage Purchase Agreement, the Company agreed to issue 1,200,000 shares of its restricted common stock to GQ in exchange for the acquisition of a registered trademark and all other developed graphics, including for gaming, web site and all other material for television, multimedia, gaming, food and products such as beverages, and all other issues. In addition, the Company agreed that GQ shall retain the right to ten percent of the gaming rights and five percent of the television media revenue, which shall be for rights of the gaming name rights, as used in all app, online or other gaming as owned by TSR and any television related media. All shares issued by both parties under the agreement have all rights and entitlements as the common stock of every other shareholder of such share class. The purchase of the trademark and related graphics and materials was valued at $636,000 based on fair value of TSR’s shares on the date of the Trademark and Usage Purchase Agreement. |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Apr. 30, 2020 | |
Notes Payable | |
NOTES PAYABLE | Note 6 – NOTES PAYABLE Related Party Convertible Loan As of April 30, 2020, an officer of the Company has provided a loan to TSR under a convertible promissory note. This convertible promissory note is unsecured, non-interest bearing, and is convertible into common shares of the Company stock at $2.75 per share and due on demand. The balance due to the officer was $46,390 as of April 30, 2020, and $17,790 as of April 30, 2019. Short Term Loans As of April 30, 2020 and 2019, the Company had loans totaling $16,763 with two non-related parties, a loan in the amount of $14,063 and a loan in the amount of $2,700. These loans are unsecured, non-interest bearing and due on demand. |
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICIT | 12 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' DEFICIT | Note 7 – STOCKHOLDERS’ DEFICIT Common Stock The Company is authorized to issue 75,000,000 shares of common stock, $0.001 par value per share. Common Stock Issuances During the year ended April 30, 2020, the Company issued or was to issue the following shares of restricted common stock: - 3,161,502 shares under subscription agreements for total proceeds of $483,250. - 100,000 restricted shares of common stock valued at $17,000 were issued to a consultant for work related to website development, Internet hosting and related development and programming work. The Company determined the fair value of the shares issued using the stock price on date of grant or issuance. Compensation expense is recognized as the services are provided to the Company. For the year ended April 30, 2020, the $17,000 stock compensation for expense was included in General and administrative expenses. - 250,000 shares remaining to be issued at April 30, 2020 under an agreement with an individual who agreed to perform services as TSR's interim CEO. - A total of 1,700,000 shares issued for purchase of assets. 1,200,000 shares of the Company’s restricted common stock were issued under a Trademark and Usage Purchase Agreement dated March 5, 2020, See Note 5 Purchase of Trademark, Graphics, Related Media and Product Materials. 500,000 shares of the Company’s restricted common stock were issued purchase of a website and associated apps, see Note 4 Fixed Assets, with 100,000 shares remaining to be issued. - 2,600,000 shares of common stock were returned and cancelled. The shares were owned by one of the principals involved in the Southern Amusement transaction which was unwound and were originally acquired in a private transaction. There was no consideration paid for these shares. During the year ended April 30, 2019, the Company issued the following shares of restricted common stock: - 6,071,429 shares issued to two individuals in relation to the transaction involving the acquisition of Southern Amusement. Effective April 28, 2019, such transaction was cancelled and such shares changed control to Mr. Craig A. Huffman, the Escrow Agent and Counsel for the Company for later transaction, via agreement. The shares continued under Mr. Brammers name on book form with the transfer agent, but all rights to such shares were surrendered by Mr. Brammer. In order to purchase the control of Southern Amusement, an additional 571,429 shares of restricted common stock were issued to Vicki Ferrell who was part owner of Southern Amusement for the Company to receive her shares. At the cancellation of the transaction, those shares were also under the control of Craig A. Huffman for cancellation as required in the immediate future upon direction of the board of directors. The Company did not have any other classes of stock issued or outstanding as of April 30, 2020 and 2019. The Company did not have any warrants or options outstanding as of April 30, 2020 and 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 8 – COMMITMENTS AND CONTINGENCIES Treasure Game App Development and Ownership Memorandum of Understanding and Agreement On February 10, 2020, TSR Media entered into an agreement with a game app developer to develop a gaming app based on treasure search and salvage. The gaming developer agreed to provide programmers and developers to complete the game. Under the terms of the agreement TSR Media agreed to pay the gaming developer a total fee of $240,000. TSR Media also agreed that the developer would receive thirty percent of the profits from the game with profits being defined as revenues calculated after distribution platforms receive their portion of gross sales and costs paid for game hosting services. TSR Media and the app developer agreed that the game will be developed for a final product within four to six months, with a launch goal in the year 2020. TSR Media and the app developer agreed that they will pay a continuing development fee to expand, improve and upgrade the game. If the game does not generate sufficient revenues to cover the continuing development fees, then the continuing fees will not be paid and they may be postponed or canceled by TSR Media Group. As of April 30, 2020, the Company has recorded $120,000 of expense, included within research and development in the consolidated statements of operations. Of this amount, $42,500 is still due at April 30, 2020 and is included within accounts payable on the consolidated balance sheets. Additional TSR has agreed to pay a fee of 5% of TSR’s net profits from the app to a third party who assisted in bringing the app developer and TSR together for the purposes of developing the treasure gaming app. Trademark and Usage Purchase Agreement Gaming and Media Rights Payments TSR entered into a Trademark and Usage Purchase Agreement on March 5, 2020, see Note 5 Purchase of Trademark, Graphics, Related Media and Product Materials. Under the terms of the agreement TSR is obligated to pay ten percent of the gaming rights and five percent of television media revenue, which shall be for rights of the gaming name rights, as used in all such app, online or other gaming as owned by TSR and any television related media. Interim Chief Executive Officer Engagement Agreement On March 1, 2020, TSR entered into an agreement with a limited liability company to designate one of its members to provide services to the Company as an interim CEO. The term of the agreement is for six months. Under the terms of the agreement, the interim CEO shall receive a five percent bonus of investment paid when the Company receives funding, be responsible for the technical and intellectual property development of the gaming side of the businesses, including overseeing the gaming production, values, and marketing partners, be responsible for overseeing the proposed television or multimedia production of a reality television series pilot, potential series production, agreements and other matters as related, actively engage as required for all necessary funding presentations, gaming presentations, television and multi-media presentations and all other necessary public or publicized appearances, act as a conduit for any necessary technology applications for sea search and recovery and advise on presented or available technologies for the sea research, finding and recovery side of the Company, and review of necessary matters as determined by the Board of Directors and the Chairman. TSR agreed to pay the limited liability company $10,000 per month and if the game and/or television component creates enough additional revenue for the Company in profit within the first eighteen months to equal such compensation at 5% as achieved by the Company, then such compensation shall be increased up to that amount or up to twice the monthly amount of compensation, whichever is greater. TSR additionally agreed to grant to the limited liability company common stock of TSR as follows: 1) 250,000 shares of common stock of TSR on execution of this agreement, however, if this agreement is terminated for any reason other than termination with cause by the Company, change in control of the Company or death during the six months the limited liability company shall return to the Company the shares of common stock on a pro rata basis for every month not completed by the limited liability company. 2) An additional 250,000 shares of common stock of TSR, will be issued and vested upon the fielding of the game envisioned and contracted with the third party app developer, and for marketing with game roll out within six months of the date of this agreement, or any extension granted there under. 3) In year two and three of such agreement, if applicable, the limited liability company shall be granted an additional 250,000 shares of common stock of TSR upon the anniversary of this Agreement. 4) Additional compensation for game production and revenues, television or multi-media performance, and other indicators shall be considered liberally for success of the Company in revenue including, if within two months of game deployment and success, the amount of 100,000 common shares for each the game and the television pilot, if it leads to a sale or marketing of such pilot. 5) Additional compensation for matters as decided by the compensation part of the Board. 6) An additional amount of shares equal to 5% of such required game monies needed and raised through the Interim CEO for game development and an additional amount of shares at market value on each level of money raised for such game and marketing, if limited liability company is directly involved in such gaming development. 7) If the limited liability company is involved, past one year, of the creation of the game then the limited liability company shall have a one percent game revenue that will exist for three years from game release. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 9 – INCOME TAXES The Company adopted the provisions of uncertain tax positions as addressed in ASC 740-10-65-1. As a result of the implementation of ASC 740-10-65-1, the Company recognized no increase in the liability for unrecognized tax benefits. The Company has no tax position at April 30, 2020 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company does not recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the period presented. The Company had no accruals for interest and penalties at April 30, 2020. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended activities. The valuation allowance at April 30, 2020 was $143,029. The net change in valuation allowance during the year ended April 30, 2020 was $124,370. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of April 30, 2020 and 2019. All tax years since inception remains open for examination only by taxing authorities. Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 21% for 2020 and 2019: For the Year Ended For the Year Ended April 30, 2020 April 30, 2019 Income tax at federal statutory rate 21.00 % 21.00 % Valuation allowance (21.00 )% (21.00 )% Income tax expense - - The Company has a net operating loss carryforward for tax purposes totaling $681,089 at April 30, 2020, expiring through 2035. There is a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). Temporary differences, which give rise to a net deferred tax asset, are as follows: As of April 30, 2020 As of April 30, 2019 Non-current deferred tax assets: Net operating loss carryforward $ 681,089 $ 88,852 Tax rate 21 % 21 % Deferred tax asset 143,029 18,659 Valuation allowance (143,029 ) (18,659 ) Net deferred tax assets $ - $ - The Company is currently in the process of gathering the information necessary for filing tax returns for past years, due to the Company’s lack of revenue since inception management does not believe that there is any income tax liability for past years |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Apr. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 10 – SUBSEQUENT EVENTS Subsequent to April 30, 2020 the Company: (i) The Company’s Board authorized the creation of Series A preferred shares with 100 Series A shares authorized to be issued and entered into agreements to issue 50 shares of the Series A preferred shares in exchange for $200,000 in proceeds. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation This summary of significant accounting policies of TSR is presented to assist in understanding the Company’s consolidated financial statements. The consolidated financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) and have been consistently applied in the preparation of the consolidated financial statements. The Company’s year-end is April 30. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of TSR Holdings, Inc. and TSR Media, which are wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | Use of Estimates The process of preparing consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Significant estimates for the years ended April 30, 2020 and 2019 include useful life of property and equipment, valuation allowances against deferred tax assets and fair value of non cash equity transactions. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. The Company had $6,678 of cash as of April 30, 2020 and $0 as of April 30, 2019. There were no cash equivalents at April 30, 2020 and 2019. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of April 30, 2020, the Company had $0 in excess of the FDIC insured limit. |
Research and Development Expenses | Research and Development Expenses Expenditures for research and development are expensed as incurred. The Company incurred research and development expenses of $120,000 and $0 for the years ended April 30, 2020 and 2019, respectively. |
Revenue Recognition | Revenue Recognition Effective May 1, 2018, the Company adopted the guidance of ASC 606, Revenue from contracts with customers. The new revenue recognition standard has not had an impact on the Company since the Company has not generated any revenues during the year ended April 30, 2020. For the Company’s service contracts, the services provided are considered to be one single performance obligation. Revenue and expenses are recognized as services are rendered. The average period for satisfying the performance obligation is three months. We have analyzed all of our contracts and can confirm that all the requirements are considered in these contracts: 1) The contracts with customers were identified; 2) The performance obligation was the creation of a website and the provision of SEO-optimization and other services for this site; 3) The transaction price was determined; 4) The Company has only one performance obligation, so the whole transaction price is related to this performance obligation; 5) The revenue was recognized when the performance obligation had been satisfied. The Company offers no discounts, rebates, rights of return, or other allowances to clients which would result in the establishment of reserves against service revenue. Additionally, to date, the Company has not incurred incremental costs in obtaining a client contract. |
Basic Loss per Share | Basic Loss per Share The Company computes loss per share in accordance with Financial Accounting Standards Board (FASB) ASC 260 “ Earnings per Share |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of financial assets and liabilities, such as cash, accounts payable, short term loans, and the Company’s related party loan from a shareholder approximate their fair values because of the short maturity of these instruments. |
Fixed Assets | Fixed Assets Fixed assets are recorded at historical cost. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Gains and losses upon disposition are reflected in the consolidated statements of operations in the period of disposition. Maintenance and repair expenditures are charged to expense as incurred. Currently the Company’s only assets are a diving vessel and a magnetometer which were both purchased in fiscal year 2020 and are being depreciated over ten and three year useful lives, respectively. |
Impairment of Long-Lived Assets | Impairment of Long-Lived and Intangible Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. We periodically evaluate whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, we use market quotes, if available or an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. We did not recognize impairment at least annually, or on its long-lived assets during the years ended April 30, 2020 or 2019. Identified intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Our existing intangible assets consist solely of a website and related software applications. |
Stock Based Compensation to Employees and Service Providers | Stock Based Compensation to Employees and Service Providers We recognize all share-based payments to employees and service providers, including grants of employee stock options, as compensation expense in the financial statements based on their fair values. That expense will be recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period) or immediately if the share-based payments vest immediately. |
Customer Deposits | Customer Deposits Customer deposits discloses an amount paid by a customer prior to the Company providing it with goods or services. The Company has an obligation to provide the goods or services to the customer or to return the money. The Company had $8,700 in customer deposits as of April 30, 2020 and 2019. |
Income Taxes | Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements All other recent accounting pronouncements issued by the Financial Accounting Standards Board, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Disclosure Fixed Assets Tables Abstract | |
Schedule of Fixed Assets | Fixed assets at April 30, 2020 and 2019 are summarized below: Fixed Assets April 30, 2020 April 30, 2019 App $ 102,000 $ - Diving Vessel 36,390 - Magnetometer 24,000 - Accumulated Depreciation (15,354 ) - Fixed Assets, Net $ 147,036 $ - |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Disclosure Income Taxes Abstract | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 21% for 2020 and 2019: For the Year Ended For the Year Ended April 30, 2020 April 30, 2019 Income tax at federal statutory rate 21.00 % 21.00 % Valuation allowance (21.00 )% (21.00 )% Income tax expense - - |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Temporary differences, which give rise to a net deferred tax asset, are as follows: As of April 30, 2020 As of April 30, 2019 Non-current deferred tax assets: Net operating loss carryforward $ 681,089 $ 88,852 Tax rate 21 % 21 % Deferred tax asset 143,029 18,659 Valuation allowance (143,029 ) (18,659 ) Net deferred tax assets $ - $ - |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) | Apr. 30, 2020USD ($) |
Disclosure Going Concern Details Narrative Abstract | |
Working Capital Deficit | $ 120,675 |
SIGNIFCANT ACCOUNTING POLICIES
SIGNIFCANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Cash | $ 6,678 | $ 7,257 | |
Research and Development | 120,000 | ||
Customer Deposit | $ 8,700 | $ 8,700 | |
Diving Vessel [Member] | |||
Useful Life of Assets | 10 years | ||
Magnetometer [Member] | |||
Useful Life of Assets | 3 years |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Accumulated Depreciation | $ (15,354) | |
Total Fixed Assets | 147,036 | 0 |
App [Member] | ||
Fixed Assets | 102,000 | |
Diving Vessel [Member] | ||
Fixed Assets | 36,390 | |
Magnetometer [Member] | ||
Fixed Assets | $ 24,000 |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Fixed Assets Disclosure Abstract | ||
Depreciation expenses | $ 15,354 | $ 3,566 |
PURCHASE OF TRADEMARK, GRAPHI_2
PURCHASE OF TRADEMARK, GRAPHICS, RELATED MEDIA AND PRODUCT MATERIALS (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Purchase Of Trademark Graphics Related Media And Product Materials | ||
Purchase of trademark and related graphics | $ 636,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Loan from Related Parties | $ 46,390 | $ 17,790 |
Short-term Loan [Member] | ||
Loan from Non-Related Parties | 16,763 | 16,763 |
Short-term Loan - First Party [Member] | ||
Loan from Non-Related Parties | 14,063 | 14,063 |
Short-term Loan - Second Party [Member] | ||
Loan from Non-Related Parties | 2,700 | 2,700 |
Director [Member] | ||
Loan from Related Parties | $ 46,390 | $ 17,790 |
STOCKHOLDERS' DEFICIT (Details
STOCKHOLDERS' DEFICIT (Details Narrative) - $ / shares | Apr. 30, 2020 | Apr. 30, 2019 |
Stockholders Deficit | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Disclosure Income Taxes Details Abstract | ||
Income tax at federal statutory rate | 21.00% | 21.00% |
Valuation allowance | (21.00%) | (21.00%) |
Income tax expense | 0.00% | 0.00% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Disclosure Income Taxes Details Abstract | ||
Net operating loss carryforward | $ 681,089 | $ 88,852 |
Tax rate | 21.00% | 21.00% |
Deferred tax asset | $ 143,029 | $ 18,659 |
Valuation allowance | (143,029) | (18,659) |
Net deferred tax assets |