| Summary of Significant Accounting Policies | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES Basis of Presentation The Company represents its financial statements were
prepared in accordance with GAAP and the rules of the Securities and Exchange Commission and that, in the opinion of management, all adjustments,
consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for
the interim period presented have been reflected herein. The results of operations are historical and not necessarily indicative of the
results to be expected for any future period. Use of estimates The preparation of financial statements in conformity
with GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and
expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information,
information that is currently available to the Company, and on various other assumptions that the Company believes to be reasonable under
the circumstances. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents consist of cash and short-term
investments with original maturities of less than three months. Cash equivalents are placed with high credit quality financial institutions
and are primarily in money market funds. As of January 31, 2021, and 2020, the Company had $9,945 and $46 in cash and no cash equivalents,
respectively. Convertible Financial Instruments The Company bifurcates conversion options from their
host instruments and accounts for them as free-standing derivative financial instruments if certain criteria are met. The criteria include
circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related
to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument
and the host contract is not remeasured at fair value under otherwise applicable generally accepted accounting principles with changes
in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument
would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional, as that
term is described under applicable GAAP. When the Company has determined that the embedded
conversion options should not be bifurcated from their host instruments, discounts are recorded for the intrinsic value of conversion
options embedded in the instruments based upon the differences between the fair value of the underlying common stock at the commitment
date of the transaction and the effective conversion price embedded in the instrument. Common stock purchase warrants and derivative
financial instruments - Revenue Recognition Revenues are recognized when control of the promised
goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange
for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be
recognized as it fulfills its obligations under each of its agreements:
● identify the contract with a customer;
● identify the performance obligations in the contract;
● determine the transaction price;
● allocate the transaction price to performance obligations in the contract; and
● recognize revenue as the performance obligation is satisfied. During years ended January 31, 2021, and 2020, the
following customers represented more than 10% of the company’s sales:
Customer Year ended January 31, 2021 Year ended January 31, 2020
Customer A $ - - $ 4,500 100 %
Total concentration $ - - $ 4,500 100 % Share-Based Compensation Employees Nonemployees Compensation-Stock
Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Income Taxes The asset and liability method is used in the Company’s
accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial
reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect
when the differences are expected to reverse. Deferred tax assets and liabilities are determined
based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using
the enacted tax rates in effect in the years in which the differences are expected to reverse. In estimating future tax consequences,
all expected future events are considered other than enactment of changes in the tax law or rates. The Company adopted ASC 740 “Income Taxes,” The determination of recording or releasing tax valuation
allowance is made, in part, pursuant to an assessment performed by management regarding the likelihood that the Company will generate
future taxable income against which benefits of its deferred tax assets may or may not be realized. Long-Lived Assets Long-lived assets are evaluated for impairment whenever
events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful
lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash flows to
the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. Property and Equipment Property and equipment is recorded at cost reduced
by accumulated depreciation and impairment, if any. Depreciation expense is recognized over the assets’ estimated useful lives.
Major additions and improvements are capitalized as additions to the property and equipment accounts, while replacements, maintenance
and repairs that do not improve or extend the life of the respective assets, are expensed as incurred. Estimated useful lives are periodically
reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives
may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Fair Value Measurements The Company uses a three-tier fair value hierarchy
to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured
at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use
observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined
as follows:
● Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;
● Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and
● Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. The Company’s financial
instruments, including cash, prepaid expense, accounts payable, note payable, due to related parties and accrued liabilities, are carried
at historical cost. At January 31, 2021 and 2020, the carrying amounts of these instruments approximated their fair values because of
the short-term nature of these instruments. See note 5 for the fair value of these derivative liabilities. This valuation technique involves
management’s estimates and judgment based on unobservable inputs and is classified in level 3. Basic and Diluted Net Loss Per Common Share Basic earnings (loss) per common share is computed
by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during
the period. Diluted earnings per common share is computed by dividing income available to common shareholders by the weighted-average
number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that
would have been outstanding if potentially dilutive securities had been issued. For the years ended January 31, 2021, and 2020, the
following common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was
anti-dilutive.
Year Ended
January 31,
2021 2020
(Shares) (Shares)
Warrants 291,775 -
Convertible Notes 518,588
Stock payable 20,000 -
Total 830,363 - Recently Issued Accounting Pronouncements In August 2020, the FASB
issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40
“Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible
debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those
with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative,
and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial
premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning
after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal
years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact
of the adoption of this standard on its financial statements. The Company has considered all other recently issued
accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements. |
