Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2019 | May 08, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | AXELEREX CORP. | |
Entity Central Index Key | 0001724001 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,120,000 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | false |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2019 | Jun. 30, 2018 |
Current Assets | ||
Cash | $ 18,233 | $ 7,598 |
Accounts Receivable | 541 | |
Prepaid expenses | 98 | |
Total Current Assets | 18,331 | 8,139 |
Total Assets | 18,331 | 8,139 |
Current Liabilities | ||
Account Payable | 298 | 200 |
Related Party Loans | 13,264 | 11,096 |
Total Liabilities | 13,562 | 11,296 |
Stockholders' Deficit | ||
Common Stock, $0.001 par value, 75,000,000 shares authorized; 7,120,000 and 5,000,000 shares issued and outstanding | 7,120 | 5,000 |
Additional paid in capital | 19,080 | |
Accumulated deficit | (21,431) | (8,157) |
Total Stockholders' Equity (Deficit) | 4,769 | (3,157) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 18,331 | $ 8,139 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Jun. 30, 2018 |
Stockholders' Deficit | ||
Common Stock, Par value | $ 0.001 | $ 0.001 |
Common Stock, Shares authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares issued | 7,120,000 | 5,000,000 |
Common Stock, Shares outstanding | 7,120,000 | 5,000,000 |
Statements of Operations (unaud
Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 7 Months Ended | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | |
Statements Of Operations | ||||
REVENUE | $ 360 | $ 360 | $ 100 | |
EXPENSES | ||||
General and Administrative | 545 | 381 | 1,521 | 1,835 |
Bad debt expense | 211 | |||
Professional | 3,578 | 4,000 | 4,450 | 11,328 |
Total Expenses | 4,123 | 4,381 | 5,971 | 13,374 |
Loss from Operations | (4,123) | (4,021) | (5,611) | (13,274) |
Income Tax Expense | ||||
NET LOSS AFTER TAX | $ (4,123) | $ (4,021) | $ (5,611) | $ (13,274) |
Basic and Diluted Net Loss per Common Share | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted-Average Number of Common Shares Outstanding | 6,979,222 | 5,000,000 | 3,051,641 | 5,750,182 |
Statements of Shareholders Equi
Statements of Shareholders Equity (unaudited) - USD ($) | Common Stock | Retained Earnings | Total |
Beginning Balance, Amount at Jun. 30, 2018 | $ (3,157) | ||
Net Loss | (13,274) | ||
Ending Balance, Shares at Mar. 31, 2019 | 7,120,000 | ||
Ending Balance, Amount at Mar. 31, 2019 | $ 26,200 | $ (21,431) | 4,769 |
Beginning Balance, Shares at Dec. 31, 2018 | 6,350,000 | ||
Beginning Balance, Amount at Dec. 31, 2018 | $ 18,500 | (17,308) | 1,192 |
Issuance of Common Shares for Cash, Shares | 770,000 | ||
Issuance of Common Shares for Cash, Amount | $ 7,700 | 7,700 | |
Net Loss | (4,123) | (4,123) | |
Ending Balance, Shares at Mar. 31, 2019 | 7,120,000 | ||
Ending Balance, Amount at Mar. 31, 2019 | $ 26,200 | $ (21,431) | $ 4,769 |
Statements of Cash Flows (unaud
Statements of Cash Flows (unaudited) - USD ($) | 7 Months Ended | 9 Months Ended |
Mar. 31, 2018 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITES: | ||
Net Loss After Tax | $ (5,611) | $ (13,274) |
Bad debt expenses | 211 | |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | (300) | 330 |
Prepaid expenses | (98) | |
Accounts Payable | 98 | |
Net Cash from Operating Activities | (5,911) | (12,733) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceed from Related Party Loan | 2,123 | 2,168 |
Proceeds from Sale of Common Shares | 5,000 | 21,200 |
Net Cash Provided by Financing Activities | 7,123 | 23,368 |
Net Increase (Decrease) in Cash | 1,212 | 10,635 |
Cash, Beginning of Period | 7,598 | |
Cash, End of Period | 1,212 | 18,233 |
Supplemental Disclosure of Cash Flow Information | ||
Cash Paid for: Interest | ||
Cash Paid for: Income Taxes |
Organization and Operations
Organization and Operations | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 1 - Organization and Operations | Axelerex Corp. Axelerex Corp. (the “Company”) was incorporated on August 30, 2017 under the laws of the State of Nevada. The Company provides 2D animations and stop-motion animations products. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 2 - Summary of Significant Accounting Policies | The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition and results and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Company’s significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles. Basis of Presentation 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 year ended June 30, 2018 included in the Company’s S-1/A filed with the Securities and Exchange Commission on October 4, 2018. The unaudited financial statements should be read in conjunction with those financial statements included in the Form S-1/A. 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 period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending June 30, 2019. Fiscal Year-End The Company elected June30as its fiscal year ending date. Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s). Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were as follows: (i) Assumption as a going concern These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and accounts payable approximate their fair values because of the short maturity of these instruments. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. Following table lists assets and liabilities measured and recognized at fair market value as of: Level 1 Level 2 Level 3 Total Realized Loss Description $ - $ - $ - $ - Balance at March 31, 2019 $ - $ - $ - $ - Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Related Parties The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include (a) affiliates of the Company; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Commitment and Contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Revenue Recognition The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable and (iv) collectability is reasonably assured. Income Tax Provision The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary 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 the statements of operations in the period that includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. Uncertain Tax Positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the quarter ended March 31, 2019. Net Income (Loss) per Common Share Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. There were no potentially dilutive common shares outstanding for the quarter ended March 31, 2019. Cash Flows Reporting The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. Subsequent Events The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 3 - Going Concern | The financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the financial statements, the Company had little operating revenue with net cash used in operating activities during the reporting quarter ended March 31, 2019. These factors raise doubt about the Company’s ability to continue as a going concern. The Company is attempting to commence full-scale operations and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support the Company’s daily operations long-term. Management intends to raise additional funds by way of a private or public offering. While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 4 - Stockholders' Equity | Shares Authorized Upon formation the total number of shares of all classes of stock which the Company is authorized to issue is Seventy-Five Million (75,000,000) shares of Common Stock, par value $0.001 per share. Common Stock On November 21 st All shares were issued in accordance with the exemption from the registration provisions of the Securities Act of 1933, as amended, provided by Section 4(2) of such Act for issuances not involving any public offering and Rule 506 of Regulation D promulgated thereunder. As of March 31, 2019, the Company has not granted any stock options and has not recorded any stock-based compensation. As of March 31, 2019 7,120,000 common shares of the Company are issued and outstanding. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 5 - Related Party Transactions | Related Parties Related parties with whom the Company had transactions are: Related Parties Relationship Sergey Peredkov President Vladimir Orekhovsky Treasurer Free Office Space The Company has been provided office space by its President at no cost. Management determined that such cost is nominal and did not recognize the rent expense in its financial statement. During nine months ended March 31, 2019, President has lent the company an amount of $2,168 to cover regular operating expenses. The loan balance as of March 31, 2019 was $13,264. The amount due to related party is unsecured and non- interest bearing with no set terms of repayment. |
Income Tax Provision
Income Tax Provision | 9 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 6 - Income Tax Provision | Deferred Tax Assets At March 31, 2019, the Company had net cumulative operating loss (“NOL”) carry–forwards for Federal income tax purposes of $21,431 that may be offset against future taxable income through 2039. No tax benefit has been recorded with respect to these net operating loss carry-forwards in the accompanying financial statements as the management of the Company believes that the realization of the Company’s net deferred tax assets of approximately $4,501 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance. Deferred tax assets consist primarily of the tax effect of NOL carry-forwards which was used to offset tax payable from prior year’s operations. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realization. The current valuation of tax allowance is n/a as of March 31, 2019. Components of deferred tax assets are as follows: March 31, 2019 Net Deferred Tax Asset Non-Current: Net Operating Loss Carry-Forward before income taxes $ (21,431 ) Income tax rate 21 % Expected Income Tax Benefit from NOL Carry-Forward 4,501 Less: Valuation Allowance (4,501 ) Deferred Tax Asset, Net of Valuation Allowance $ - Income Tax Provision in the Statement of Operations A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: March 31, 2019 Federal statutory income tax rate 21.0 % Increase (reduction) in income tax provision resulting from: Net Operating Loss (NOL) carry-forward (21.0 %) Effective income tax rate 0.0 % Tax Returns Remaining subject to IRS Audits The Company has filed its corporation income tax return for the year ended June 30, 2018, which will remain subject to examination by the Internal Revenue Service under the statute of limitations for a period of three (3) years from the date it is filed. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Summary Of Significant Accounting Policies | |
Basis of Presentation | 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 year ended June 30, 2018 included in the Company’s S-1/A filed with the Securities and Exchange Commission on October 4, 2018. The unaudited financial statements should be read in conjunction with those financial statements included in the Form S-1/A. 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 period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending June 30, 2019. |
Fiscal Year-End | The Company elected June30as its fiscal year ending date. |
Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s). Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements were as follows: (i) Assumption as a going concern These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and accounts payable approximate their fair values because of the short maturity of these instruments. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. Following table lists assets and liabilities measured and recognized at fair market value as of: Level 1 Level 2 Level 3 Total Realized Loss Description $ - $ - $ - $ - Balance at March 31, 2019 $ - $ - $ - $ - |
Cash Equivalents | The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. |
Related Parties | The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include (a) affiliates of the Company; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitment and Contingencies | The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Revenue Recognition | The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable and (iv) collectability is reasonably assured. |
Income Tax Provision | The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary 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 the statements of operations in the period that includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. |
Uncertain Tax Positions | The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the quarter ended March 31, 2019. |
Net Income (Loss) per Common Share | Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. There were no potentially dilutive common shares outstanding for the quarter ended March 31, 2019. |
Cash Flows Reporting | The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. |
Subsequent Events | The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Disclosure Summary Of Significant Accounting Policies Tables Abstract | |
Schedule of assets and liabilities measured and recognized at fair market value | Level 1 Level 2 Level 3 Total Realized Loss Description $ - $ - $ - $ - Balance at March 31, 2019 $ - $ - $ - $ - |
Income Tax Provision (Tables)
Income Tax Provision (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Disclosure Income Tax Provision Tables Abstract | |
Components of deferred tax assets | March 31, 2019 Net Deferred Tax Asset Non-Current: Net Operating Loss Carry-Forward before income taxes $ (21,431 ) Income tax rate 21 % Expected Income Tax Benefit from NOL Carry-Forward 4,501 Less: Valuation Allowance (4,501 ) Deferred Tax Asset, Net of Valuation Allowance $ - |
Reconciliation of the federal statutory income tax rate and the effective income tax rate | March 31, 2019 Federal statutory income tax rate 21.0 % Increase (reduction) in income tax provision resulting from: Net Operating Loss (NOL) carry-forward (21.0 %) Effective income tax rate 0.0 % |
Organization and Operations (De
Organization and Operations (Details Narrative) | 9 Months Ended |
Mar. 31, 2019 | |
Organization And Operations | |
State of incorporation | Nevada |
Date of incorporation | Aug. 30, 2017 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value, Inputs, Level 1 [Member] | |
Total Realized Loss | |
Description | |
Balance at March 31, 2019 | |
Fair Value, Inputs, Level 2 [Member] | |
Total Realized Loss | |
Description | |
Balance at March 31, 2019 | |
Fair Value, Inputs, Level 3 [Member] | |
Total Realized Loss | |
Description | |
Balance at March 31, 2019 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | |
Nov. 21, 2017USD ($)$ / sharesshares | Jan. 31, 2019USD ($)Number$ / sharesshares | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)$ / sharesshares | Jun. 30, 2018$ / sharesshares | |
Common Stock, Par value | $ / shares | $ 0.001 | $ 0.001 | |||
Common Stock, Shares authorized | 75,000,000 | 75,000,000 | |||
Common stock, shares issued | 7,120,000 | 5,000,000 | |||
Common stock, shares outstanding | 7,120,000 | 5,000,000 | |||
Proceeds from sale of common stock | $ | $ 5,000 | $ 21,200 | |||
President [Member] | |||||
Common stock, shares sold | 5,000,000 | ||||
Proceeds from sale of common stock | $ | $ 5,000 | ||||
Price per share | $ / shares | $ 0.001 | ||||
Individuals [Member] | |||||
Common stock, shares sold | 2,120,000 | ||||
Proceeds from sale of common stock | $ | $ 21,200 | ||||
Price per share | $ / shares | $ 0.01 | ||||
Number of individuals | Number | 27 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 7 Months Ended | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2019 | Jun. 30, 2018 | |
Proceeds from related party debt | $ 2,123 | $ 2,168 | |
Related Party Loans | 13,264 | $ 11,096 | |
President [Member] | |||
Proceeds from related party debt | $ 2,168 |
Income Tax Provision (Details)
Income Tax Provision (Details) | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Net Deferred Tax Asset Non-Current: | |
Net Operating Loss Carry-Forward before income taxes | $ (21,431) |
Income tax rate | 21.00% |
Expected Income Tax Benefit from NOL Carry-Forward | $ 4,501 |
Less: Valuation Allowance | (4,501) |
Deferred Tax Asset, Net of Valuation Allowance |
Income Tax Provision (Details 1
Income Tax Provision (Details 1) | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Provision Details 1Abstract | |
Federal statutory income tax rate | 21.00% |
Increase (reduction) in income tax provision resulting from: | |
Net Operating Loss (NOL) carry-forward | (21.00%) |
Effective income tax rate | 0.00% |
Income Tax Provision (Details N
Income Tax Provision (Details Narrative) | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Income Tax Provision Details Narrative Abstract | |
Net Operating Loss Carry-Forward before income taxes | $ (21,431) |
Net operating loss carryforward expiry period | through 2039 |
Expected Income Tax Benefit from NOL Carry-Forward | $ 4,501 |