| Basis of Presentation and Summary of Significant Accounting Policies | Note
2 – Basis of Presentation and Summary of Significant Accounting Policies Basis
of Presentation The
financial statements for the years ended May 31, 2021 and 2020 have been prepared by us in accordance with accounting principles
generally accepted in the United States of America (US GAAP) and pursuant to the rules and regulations of the Securities
and Exchange Commission (SEC). Risk
and Uncertainty Concerning COVID-19 Pandemic In
March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic which continues to spread
throughout the United States and the World. We are currently monitoring the outbreak of COVID-19 and the related business and travel
restrictions and changes to behavior intended to reduce its spread. All of our Chinese vendor facilities were temporarily closed for
a period of time. Most of these facilities have been reopened since July 2020. Depending on the progression of the outbreak, our ability
to obtain necessary supplies and ship finished products to customers may be partly or completely disrupted globally. Also, our ability
to maintain appropriate labor levels could be disrupted. If the coronavirus continues to progress, it could have a material negative
impact on our results of operations and cash flow, in addition to the impact on its employees. We have concluded that while it is reasonably
possible that the virus could have a negative impact on the results of operations, the specific impact is not readily determinable as
of the date of these financial statements. The accompanying financial statements do not include any adjustments that might result from
the outcome of this uncertainty. The Company obtained two loans under the Paycheck Protection Program (the PPP) of
the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) and one loan under the Economic Injury Disaster
Loan Program (the EIDL) of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). See
Note- 8 Loans payable. Management is focused on growing the Companys existing products offering, as well as its customer base,
to increase its revenues. The Company cannot give assurance that it can increase its cash balances or limit its cash consumption and
thus maintain sufficient cash balances for its planned operations or future acquisitions. Future business demands may lead to cash utilization
at levels greater than recently experienced. The Company may need to raise additional capital in the future. However, the Company cannot
assure that it will be able to raise additional capital on acceptable terms, or at all. Subject to the foregoing, management believes
that the Company has sufficient capital and liquidity to fund its operations for at least one year from the date of issuance of the accompanying
financial statements. Going
Concern As
reflected in the accompanying financial statements, the Company had a net loss of $ 297,755 172,767 5,108,664 Use
of estimates The preparation of the financial statements in
conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect
the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and
during the reporting period. Actual results could materially differ from these estimates. Significant estimates made by management include,
but are not limited to, the allowance for doubtful accounts, inventory valuations and classifications, the useful life of property
and equipment, the valuation of lease liabilities and related right of use assets, the valuation of deferred tax assets, the value of
stock-based compensation, and the fair value of non-cash common stock issuances. Cash
and cash equivalents The
Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less,
when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at one financial institution
that is insured by the Federal Deposit Insurance Corporation. Accounts
receivable and allowance for doubtful accounts The
Company has a policy of providing on allowance for doubtful accounts based on its best estimate of the amount of probable credit
losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether
an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of
an account may be in doubt. Account balances deemed to be uncollectible are charged to bad debt expense and included
in the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Prepaid
expenses and other current assets Prepaid expenses and other current assets of $ 2,430 13,708 Inventory The Company values inventory, consisting of finished goods and raw
materials, at the lower of cost and net realizable value. Cost is determined using an average cost method. The Company reduces inventory
for the diminution of value, resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference
between the cost of the inventory and its net realizable value. The Company evaluates its current level of inventory considering historical
sales and other factors and, based on this evaluation, classifies inventory markdowns in the statement of operations as a component of
cost of goods sold. These markdowns are estimates, which could vary significantly from actual requirements if future economic conditions,
customer demand or competition differ from expectations. The Company continuously evaluates the levels of inventory held and any inventory
held above the expected level of sales in the next twelve months, is classified as non- current inventory. Property
and Equipment Property
and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method
over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements
and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are
removed, and any resulting gains or losses are included in the statement of operations. Revenue
recognition The Company follows Accounting Standards Codification (ASC)
606, Revenue From Contracts With Customers, which is effective for public business entities with annual reporting periods beginning after
December 15, 2017. This new revenue recognition standard (new guidance) has a five step process: a) Determine whether a contract
exists; b) Identify the performance obligations; c) Determine the transaction price; d) Allocate the transaction price; and e) Recognize
revenue when (or as) performance obligations are satisfied. The
Company sells a variety of hair and skin care products. The Company recognizes revenue for the agreed upon sales price when a purchase
order is received from the customer and subsequently the product is shipped to the customer, which satisfies the performance obligation.
Consideration paid to the customer to promote and sell the Companys products is typically recorded as a reduction in revenues.
See Note 12 for revenue disaggregation disclosures. Cost
of Sales The
primary components of cost of sales include the cost of the product and shipping fees. Shipping
and Handling Costs The
Company accounts for shipping and handling fees in accordance with ASC 606. While amounts charged to customers for shipping products
are included in revenues, the related costs of shipping products to customers are classified in marketing and selling expenses
as incurred. Shipping costs included in marketing and selling expense were $ 133,396 41,424 Marketing,
selling and advertising Marketing,
selling and advertising costs are expensed as incurred. Customer
Deposits Customer
deposits consisted of prepayments from customers to the Company. The Company will recognize the prepayments as revenue upon delivery
of products in compliance with its revenue recognition policy. Fair
value measurements and fair value of financial instruments The
Company adopted Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures
(ASC 820), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common
definition for fair value to be applied to existing generally accepted accounting principles that requires the use of fair value
measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The
adoption of ASC 820 did not have an impact on the Companys financial position or operating results, but did expand
certain disclosures. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. Additionally,
ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable
inputs. These inputs are prioritized below:
Level
1: Observable
inputs such as quoted market prices in active markets for identical assets or liabilities
Level
2: Observable
market-based inputs or unobservable inputs that are corroborated by market data
Level
3: Unobservable
inputs for which there is little or no market data, which require the use of the reporting entitys own
assumptions. The
Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard
Boards (FASB) accounting standard for such instruments. Under this standard, financial assets and liabilities
are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The
estimated fair value of certain financial instruments, including prepaid expenses, deposits, accounts payable and accrued expenses
are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Income
Taxes The
Company accounts for income taxes pursuant to the provision of ASC 740-10, Accounting for Income Taxes (ASC
740-10), which requires, among other things, an asset and liability approach to calculating deferred income taxes. The
asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences
of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided
to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will
not be realized. The
Company follows the provision of ASC 740-10 related to Accounting for Uncertain Income Tax Positions. When tax returns are filed,
there may be uncertainty about the merits of positions taken or the amount of the position that would be ultimately sustained.
In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the
period during which, based on all available evidence, management believes it is more likely than not that the position will be
sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset
or aggregated with other positions. Tax
positions that meet the more likely than not recognition threshold are measured at the largest amount of tax benefit that is more
than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefit associated
with tax positions taken that exceed the amount measured as described above should be reflected as a liability for uncertain tax
benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing
authorities upon examination. The Company believes its tax positions are all more likely than not to be upheld upon examination.
As such, the Company has not recorded a liability for uncertain tax benefits. The
Company has adopted ASC 740-10-25, Definition of Settlement, which provides guidance on how an entity should determine
whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides
that a tax position can be effectively settled upon the completion and examination by a taxing authority without being legally
extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even
if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and
the statute of limitations remains open. The federal and state income tax returns of the Company are subject to examination
by the IRS and state taxing authorities, generally for three years after they are filed. Impairment
of long-lived assets The
Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount
of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected
undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference
between the assets estimated fair value and its book value. The Company recorded impairment loss of $474 as an operating
expense in the accompanying financial statements, during the year ended May 31, 2020. The Company did not record any impairment
loss during the year ended May 31, 2021. Stock-based
compensation Stock-based
compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718, Compensation —
Stock Compensation (ASC 718), which requires recognition in the financial statements of the cost of employee
and director services received in exchange for an award of equity instruments over the period the employee or director is required
to perform the services in exchange for the award (presumptively, the vesting period). ASC 718 also requires measurement of the
cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant
to ASC Topic 505-50, Equity Based Payments to Non-employees, for share-based payments to consultants and other third-parties,
compensation expense is determined at the measurement date. The expense is recognized over the vesting period of the award. Until
the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation
expense based on the fair value of the award at the reporting date. Net
loss per share of common stock Basic
net loss per share is computed by dividing the net loss by the weighted average number of common shares during the period. Diluted
net loss per share is computed using the weighted average number of common shares and potentially dilutive securities outstanding
during the period. At May 31, 2021 and 2020, the Company had no potentially dilutive securities outstanding. Lease
Accounting In
February 2016, the FASB issued ASU No. 2016-02, Leases The
Company renewed lease for its corporate headquarters commencing December 1, 2019, under lease agreements classified as an operating lease.
Please see Note 10 – Commitments and Contingencies under Leases below for more information about the
Companys leases. Recently
Issued Accounting Pronouncements In
August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and
Derivatives and Hedging – Contracts in Entitys Own Equity In
November 2019, the FASB issued ASU No. 2019-08, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts
with Customers (Topic 606): Codification Improvements – Share-based Consideration Payable to a Customer Compensation
– Stock Compensation (Topic 718) – Improvements to Nonemployee Share-based Payment Accounting In
December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income
Taxes In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement
(Topic 820) which modifies the disclosure requirements about fair value measurements under ASC Topic No. 820, Fair Value Measurement,
as amended (ASC 820). For public companies, ASU 2018-13 removes the prior requirement to disclose: (a) the amount and reason
for transfers between Level 1 and Level 2 of the fair value hierarchy contained in ASC 820, (b) the policy for timing of transfers between
levels, and (c) the valuation processes used for level 3 fair value measurements. For public companies, ASU 2018-13 also adds, among other
things, a requirement to disclose the range and weighted average of significant unobservable inputs used in Level 3 fair value measurements.
The Company adopted the provisions of ASU 2018-13 effective March 1, 2020 and such adoption did not have a material impact on its financial
statements. Other
accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected
to have a material impact on the financial statements upon adoption. The Company does not discuss recent pronouncements that are
not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
