Document and Entity Information
Document and Entity Information | 6 Months Ended |
Dec. 31, 2018shares | |
Details | |
Registrant Name | Hawkeye Systems, Inc. |
Registrant CIK | 1,750,777 |
SEC Form | 10-Q |
Period End date | Dec. 31, 2018 |
Fiscal Year End | --06-30 |
Trading Symbol | TBD |
Tax Identification Number (TIN) | 830,799,093 |
Number of common stock shares outstanding | 8,886,416 |
Filer Category | Non-accelerated Filer |
Current with reporting | Yes |
Small Business | true |
Emerging Growth Company | true |
Ex Transition Period | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2,019 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 333-180954 |
Entity Incorporation, State Country Name | Nevada |
Entity Address, Address Line One | 7119 W. Sunset Blvd. |
Entity Address, Address Line Two | Suite 468 |
Entity Address, City or Town | Los Angeles |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90,046 |
City Area Code | (310) |
Local Phone Number | 606-2054 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 166,867 | $ 334,650 |
Total current assets | 166,867 | 334,650 |
Investment in joint venture | 472,201 | 150,000 |
Total Assets | 639,069 | 484,650 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 0 | 12,800 |
Total current liabilities | 0 | 12,800 |
Total liabilities | 0 | 12,800 |
Preferred stock | 0 | 0 |
Common stock | 889 | 889 |
Additional paid-in capital | 655,836 | 655,836 |
Stock subscription receivable | 0 | 142,500 |
Stock subscription received | 340,000 | 0 |
Accumulated deficit | (357,656) | (42,375) |
Total stockholders' equity | 639,069 | 471,850 |
Total Liabilities and Stockholders' Equity | $ 639,069 | $ 484,650 |
Condensed Balance Sheets - Pare
Condensed Balance Sheets - Parenthetical - $ / shares | Dec. 31, 2018 | Jun. 30, 2018 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 8,886,416 | 8,886,416 |
Common Stock, Shares, Outstanding | 8,886,416 | 8,886,416 |
Condensed Statement of Operatio
Condensed Statement of Operations - USD ($) | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | ||
Details | |||
Revenue | $ 0 | $ 0 | |
Expenses: | |||
General and administrative expenses | 626 | 1,374 | |
Legal and professional expenses | 12,065 | 45,815 | |
Regulatory filing expenses and fees | 26,400 | 33,400 | |
Escrow Fees | 2,100 | 11,893 | |
Total expenses | 41,192 | 92,483 | |
Operating loss | (41,192) | (92,483) | |
Unrealized loss on joint venture | (99,291) | (222,799) | |
Net loss | $ (140,482) | $ (315,281) | |
Net loss per share - basic and diluted * | [1] | $ (0.02) | $ (0.04) |
Basic and diluted weighted average shares outstanding | 8,886,416 | 8,886,416 | |
[1] | *Excludes all anti-dilutive potential shares |
Statement of Cash Flows
Statement of Cash Flows | 6 Months Ended | |
Dec. 31, 2018USD ($) | ||
Cash flows from operating activities: | ||
Net loss | $ (315,281) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Unrealized loss on joint venture | (222,799) | |
Changes in operating assets and liabilities: | ||
Increase in accounts payable and accrued liabilities | (12,800) | |
Net cash used in operating activities | (105,283) | |
Cash flows from investing activities: | ||
Investment in joint venture | 345,000 | |
Net cash used in investing activities | (345,000) | [1] |
Cash flows from financing activities: | ||
Issuance of common stock for cash | 142,500 | |
Stock subscriptions received | 240,000 | |
Net cash from financing activities | 482,500 | [1] |
Net decrease in cash | (167,783) | |
Cash, beginning of period | 334,650 | |
Cash, end of period | 166,867 | |
Supplemental disclosure of cash flow information | ||
Interest | 0 | |
Income taxes | $ 0 | |
[1] | Refer to Note 2 in the financial statements for disclosures over all non-cash investing and financing activities during the period. |
Nature of Operations and Organi
Nature of Operations and Organization of the Company | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Nature of Operations and Organization of the Company | 1. Nature of Operations and Organization of the Company Hawkeye Systems, Inc., a Nevada corporation incorporated on May 15, 2018, is a technology company that is developing cutting edge optical imaging products for military and law enforcement markets to assist with intelligence, surveillance and reconnaissance (“ISR”). Other potential markets include commercial entertainment and outdoor sportsmanship activities. This “SOCOM to Commercial” (United States Special Operations Command to Commercial) model has worked well for other companies. On June 7, 2018, the Company entered into a joint-venture partnership with Insight Engineering, LLC (“Insight”). On August 1, 2018, the Company and Insight incorporated Optical Flow, LLC and entered into an operating agreement (the “Joint Venture” or “Optical Flow”) which superseded the previous joint-venture partnership. Pursuant to the Joint Venture, the Company and Insight will co-develop high resolution imaging systems. Insight is a Nevada limited liability corporation that is led by Lucas Foster, who has two decades of experience working on advanced camera technology for entertainment/motion picture uses. The Company currently owns fifty (50%) percent of the Joint Venture. Pursuant to the terms and conditions of the Joint Venture, the Company must contribute $2,000,000 to the Joint Venture over a 12-month period or it will forfeit its interest in the Joint Venture pro rata to funds raised. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
2. Summary of Significant Accounting Policies | 2. Basis of presentation The financial statements present the balance sheet, statements of operations, stockholders' equity and cash flows of the Company. These financial statements are presented in United States dollars and have been prepared in accordance with U.S. generally accepted accounting principles. Year End The Company has adopted June 30 as its fiscal year end. Use of Estimates Preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents The Company maintains a cash balance in a non-interest-bearing account. The Company considers short-term, highly liquid investments that are readily convertible to known amounts of cash and that are so near their maturity that they present insignificant risk of changes in value because of changes in interest rate to be cash equivalents. This balance includes $166,867 ($334,650 at June 30, 2018) held in a trust account that is legal title of the Company. There were no cash equivalents as at December 31, 2018 (none as at June 30, 2018). 2. Investment in Joint Venture The investment in the Joint Venture is accounted for by the Company using the equity method in accordance with FASB ASC 323. The company currently owns fifty percent of the Joint Venture. Pursuant to the terms and conditions of the Joint Venture, the Company must contribute $2,000,000 to the Joint Venture over a 12-month period or it will forfeit its interest in the Joint Venture pro rata to funds raised. As at December 31, 2018 the Company has contributed $695,000 ($150,000 as at June 30, 3018) to the Joint Venture and will make additional payments over the course of the year as follows: $305,000 USD on or before January 30, 2019, $500,000 USD on or before April 1, 2019, The remaining balance of $500,000 USD on or before June 15, 2019 The Joint Venture is currently developing a wide field of view, single lens virtual reality imaging product. Initially, these products are being designed to be able to be mounted to law enforcement and/or military personnel to record and stream high resolution images to a wifi or Bluetooth network, when required. Through the Joint Venture, the Company is conducting research and development for the further development of this imaging system for the body/head camera platform. The milestones over the next 12-months are: Design the single lens platform; Develop hardware design and source components; Sign a binding agreement with the imaging sensor provider; Produce working prototype(s); and Get user/client feedback on use cases and user requirements. On August 1, 2018, the Company and Insight incorporated Optical Flow, LLC and entered into an operating agreement (the “Joint Venture” or “Optical Flow”) which superseded the previous joint-venture partnership. Pursuant to the Joint Venture, the Company and Insight will co-develop high resolution imaging systems. This includes a worldwide license for military and law enforcement purposes (the “License”) to use and build products derived from all technology, information, intellectual property and other materials for or relevant to the 360 degree visible and infrared spectrum single lens camera platform, including without limitation, all business plans, technical plans, specifications, templates, demonstration versions, hardware, equipment, software, devices, methods, apparatus, and product designs. The License is also subject to a five (5%) percent net sales royalty payable to Insight. The License will allow the Joint Venture to excel in developing a next generation body and head camera that sees behind the user and presents a clear and wide field of view. The Joint Venture will develop and own additional technology that may include further iterations of this system, and all the related mounting and charging technologies that facilitate its use. 10 2. Investment in Joint Venture (continued) Joint Venture Balance Sheets As at December 31, 2018 All figures in USD Cash and cash equivalents 171,053 Deposit - Radiant 100,000 Computers (net of accumulated depreciation of $469) 4,350 Total assets 275,403 Accrued liabilities - Accrued liabilities – related party 26,000 Total liabilities 26,000 Venturer contributions 695,000 Retained earnings (445,597) Venturers’ equity 249,403 Total liabilities and venturers’ equity 275,403 As at June 30, 2018 All figures in USD Cash and cash equivalents 150,000 Total assets 150,000 Venturers’ equity 150,000 Joint Venture Income Statement For the three months ended December 31, 2018 All figures in USD Revenue - Expenses: Research and development 60,000 Management fees 81,500 Consulting fees 10,000 Legal and professional fees 6,189 Marketing expenses 7,500 Meals, entertainment and travel expenses 25,909 Project management expenses - General and administrative expenses 7,203 Depreciation 281 Net loss 198,582 2. Summary of Significant Accounting Policies (continued) Investment in Joint Venture (continued) For the six months ended December 31, 2018 All figures in USD Revenue - Expenses: Research and development 140,000 Management fees 161,500 Consulting fees 25,000 Legal and professional fees 19,636 Marketing expenses 18,767 Meals, entertainment and travel expenses 53,374 Project management expenses 13,413 General and administrative expenses 13,439 Depreciation 469 Net loss 445,598 Value of Hawkeye Investment in Joint Venture For the period of May 15, 2018 to June 30, 2018 Investment in Joint Venture as at May 15, 2018 $ - Cash contributions to Joint Venture by Hawkeye 150,000 Company’s share of the Joint Venture net income for the period - Investment in Joint Venture value as at June 30, 2018 $ 150,000 For the three months ended December 31, 2018 Cash contributions to Joint Venture by Hawkeye $ 345,000 Company’s share of the Joint Venture net income for the period $ (99,291) For the six months ended December 31, 2018 Cash contributions to Joint Venture by Hawkeye $ 345,000 Cash contributions to Joint Venture on behalf of Hawkeye 1 200,000 Company’s share of the Joint Venture net income for the period $ (222,799) (1) See “Stock Subscription Received,” below Investment to date at December 31, 2018 Cash contributions to Joint Venture by Hawkeye $ 495,000 Cash contributions to Joint Venture on behalf of Hawkeye 1 200,000 Company’s share of the Joint Venture net income for the period (272,799) Investment in Joint Venture value as at December 31, 2018 $ 472,201 (1) See “Stock Subscription Received,” below 2. Income Taxes The Company applies a more-likely-than-not recognition threshold for all tax uncertainties. As of December 31, 2018, the Company reviewed its tax positions and determined there were no outstanding tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company. The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months. Stock Subscription Receivable This balance relates to capital stock issued during the period for which payment has not been received by the Company at period end. Stock Subscription Received This balance relates to cash received for the purchase of stock that has yet to be issued by the Company at period end. $200,000 was paid via a direct contribution from the investor to Optical flow on behalf of the Company. Net Loss per Share Net income (loss) per common share is computed and presented in both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic loss per share includes no dilution and is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding for the period. Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. Stock Purchase Warrants The Company accounts for warrants issued to purchase shares of its common stock as equity in accordance with FASB ASC 480, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, Distinguishing Liabilities from Equity. Commitments and Contingencies The Company has committed to contribute $2,000,000 to the Joint Venture over a twelve month period as disclosed above. To date the Company has contributed $695,000 ($150,000 at June 30, 2018) and has a commitment of $1,305,000 ($1,850,000 as at June 30, 2018) to the Joint Venture to be paid within the next 6 months. Management of the Company is not aware any other commitments or contingencies that would have a material adverse effect on the Company’s financial condition, results of operations or cash flows. 2. Foreign Currency translation The Company’s functional and reporting currency is the US dollar. Foreign exchange items are translated to US dollars using the exchange rate prevailing at the balance sheet date. Monetary assets and liabilities are translated using the exchange rate at the balance sheet date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average rates for the period. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
3. Going Concern
3. Going Concern | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
3. Going Concern | 3. Going Concern The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company had an accumulated deficit of $357,656 ($42,375 as of June 30, 2018). The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is dependent upon its ability, and will continue to attempt, to secure equity and/or debt financing. There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. |
4. Stockholders' Equity
4. Stockholders' Equity | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
4. Stockholders' Equity | 4. Common Stock The Company has 400,000,000 shares of Common Stock authorized with a par value of $0.0001 per share and 50,000,000 shares of Preferred Stock authorized, with a par value of $0.0001 per share. As of September 30, 2018 and as of June 30, 2018 there were 8,886,416 common shares outstanding and no shares of Preferred Stock are outstanding. Effective May 15, 2018, 3,000,000 shares of common stock were offered and sold to Corby Marshall (Director, CFO and CEO of the Company), at a purchase price of $0.0001 per share. Effective May 22, 2018, 2,362,500 shares of common stock were offered and sold to 14 investors at a purchase price of $0.01 per share. This included 1,250,000 shares to directors of the Company. Effective June 1, 2018, 612,500 shares of common stock were offered and sold to 9 investors at a purchase price of $0.05 per share. Effective June 15, 2018, 2,438,666 shares of common stock were offered and sold to 12 investors at a purchase price of $0.15 per share and include the option to purchase up to 9,754,644 shares via warrants at various exercise prices between $0.30 and $2.00. Effective June 29, 2018, 472,750 shares of common stock were offered and sold to 29 investors at a purchase price of $0.50 per share and include the option to purchase up to 1,891,000 shares via warrants at exercise prices of $1.00 and $2.00. |
5. Related Party Transactions
5. Related Party Transactions | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
5. Related Party Transactions | 5. None noted during the period. |
6. Subsequent Events
6. Subsequent Events | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
6. Subsequent Events | The Company’s Management has reviewed all other material events through the date of this report and there are no additional material subsequent events to report that have not already been disclosed within the aforementioned notes. |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies: Basis of presentation (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Basis of presentation | Basis of presentation The financial statements present the balance sheet, statements of operations, stockholders' equity and cash flows of the Company. These financial statements are presented in United States dollars and have been prepared in accordance with U.S. generally accepted accounting principles. |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies: Year End (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Year End | Year End The Company has adopted June 30 as its fiscal year end. |
2. Summary of Significant Acc_4
2. Summary of Significant Accounting Policies: Use of Estimates (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Use of Estimates | Use of Estimates Preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
2. Summary of Significant Acc_5
2. Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company maintains a cash balance in a non-interest-bearing account. The Company considers short-term, highly liquid investments that are readily convertible to known amounts of cash and that are so near their maturity that they present insignificant risk of changes in value because of changes in interest rate to be cash equivalents. This balance includes $166,867 ($334,650 at June 30, 2018) held in a trust account that is legal title of the Company. There were no cash equivalents as at December 31, 2018 (none as at June 30, 2018). |
2. Summary of Significant Acc_6
2. Summary of Significant Accounting Policies: Investment in Joint Venture (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Investment in Joint Venture | Investment in Joint Venture The investment in the Joint Venture is accounted for by the Company using the equity method in accordance with FASB ASC 323. The company currently owns fifty percent of the Joint Venture. Pursuant to the terms and conditions of the Joint Venture, the Company must contribute $2,000,000 to the Joint Venture over a 12-month period or it will forfeit its interest in the Joint Venture pro rata to funds raised. As at December 31, 2018 the Company has contributed $695,000 ($150,000 as at June 30, 3018) to the Joint Venture and will make additional payments over the course of the year as follows: $305,000 USD on or before January 30, 2019, $500,000 USD on or before April 1, 2019, The remaining balance of $500,000 USD on or before June 15, 2019 The Joint Venture is currently developing a wide field of view, single lens virtual reality imaging product. Initially, these products are being designed to be able to be mounted to law enforcement and/or military personnel to record and stream high resolution images to a wifi or Bluetooth network, when required. Through the Joint Venture, the Company is conducting research and development for the further development of this imaging system for the body/head camera platform. The milestones over the next 12-months are: Design the single lens platform; Develop hardware design and source components; Sign a binding agreement with the imaging sensor provider; Produce working prototype(s); and Get user/client feedback on use cases and user requirements. On August 1, 2018, the Company and Insight incorporated Optical Flow, LLC and entered into an operating agreement (the “Joint Venture” or “Optical Flow”) which superseded the previous joint-venture partnership. Pursuant to the Joint Venture, the Company and Insight will co-develop high resolution imaging systems. This includes a worldwide license for military and law enforcement purposes (the “License”) to use and build products derived from all technology, information, intellectual property and other materials for or relevant to the 360 degree visible and infrared spectrum single lens camera platform, including without limitation, all business plans, technical plans, specifications, templates, demonstration versions, hardware, equipment, software, devices, methods, apparatus, and product designs. The License is also subject to a five (5%) percent net sales royalty payable to Insight. The License will allow the Joint Venture to excel in developing a next generation body and head camera that sees behind the user and presents a clear and wide field of view. The Joint Venture will develop and own additional technology that may include further iterations of this system, and all the related mounting and charging technologies that facilitate its use. 10 2. Investment in Joint Venture (continued) Joint Venture Balance Sheets As at December 31, 2018 All figures in USD Cash and cash equivalents 171,053 Deposit - Radiant 100,000 Computers (net of accumulated depreciation of $469) 4,350 Total assets 275,403 Accrued liabilities - Accrued liabilities – related party 26,000 Total liabilities 26,000 Venturer contributions 695,000 Retained earnings (445,597) Venturers’ equity 249,403 Total liabilities and venturers’ equity 275,403 As at June 30, 2018 All figures in USD Cash and cash equivalents 150,000 Total assets 150,000 Venturers’ equity 150,000 Joint Venture Income Statement For the three months ended December 31, 2018 All figures in USD Revenue - Expenses: Research and development 60,000 Management fees 81,500 Consulting fees 10,000 Legal and professional fees 6,189 Marketing expenses 7,500 Meals, entertainment and travel expenses 25,909 Project management expenses - General and administrative expenses 7,203 Depreciation 281 Net loss 198,582 2. Summary of Significant Accounting Policies (continued) Investment in Joint Venture (continued) For the six months ended December 31, 2018 All figures in USD Revenue - Expenses: Research and development 140,000 Management fees 161,500 Consulting fees 25,000 Legal and professional fees 19,636 Marketing expenses 18,767 Meals, entertainment and travel expenses 53,374 Project management expenses 13,413 General and administrative expenses 13,439 Depreciation 469 Net loss 445,598 Value of Hawkeye Investment in Joint Venture For the period of May 15, 2018 to June 30, 2018 Investment in Joint Venture as at May 15, 2018 $ - Cash contributions to Joint Venture by Hawkeye 150,000 Company’s share of the Joint Venture net income for the period - Investment in Joint Venture value as at June 30, 2018 $ 150,000 For the three months ended December 31, 2018 Cash contributions to Joint Venture by Hawkeye $ 345,000 Company’s share of the Joint Venture net income for the period $ (99,291) For the six months ended December 31, 2018 Cash contributions to Joint Venture by Hawkeye $ 345,000 Cash contributions to Joint Venture on behalf of Hawkeye 1 200,000 Company’s share of the Joint Venture net income for the period $ (222,799) (1) See “Stock Subscription Received,” below Investment to date at December 31, 2018 Cash contributions to Joint Venture by Hawkeye $ 495,000 Cash contributions to Joint Venture on behalf of Hawkeye 1 200,000 Company’s share of the Joint Venture net income for the period (272,799) Investment in Joint Venture value as at December 31, 2018 $ 472,201 (1) See “Stock Subscription Received,” below |
2. Summary of Significant Acc_7
2. Summary of Significant Accounting Policies: Income Taxes (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Income Taxes | Income Taxes The Company applies a more-likely-than-not recognition threshold for all tax uncertainties. As of December 31, 2018, the Company reviewed its tax positions and determined there were no outstanding tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company. The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months. |
2. Summary of Significant Acc_8
2. Summary of Significant Accounting Policies: Stock Subscription Receivable (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Stock Subscription Receivable | Stock Subscription Receivable This balance relates to capital stock issued during the period for which payment has not been received by the Company at period end. |
2. Summary of Significant Acc_9
2. Summary of Significant Accounting Policies: Stock Subscription Received (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Stock Subscription Received | Stock Subscription Received This balance relates to cash received for the purchase of stock that has yet to be issued by the Company at period end. $200,000 was paid via a direct contribution from the investor to Optical flow on behalf of the Company. |
2. Summary of Significant Ac_10
2. Summary of Significant Accounting Policies: Net Loss per Share (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Net Loss per Share | Net Loss per Share Net income (loss) per common share is computed and presented in both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic loss per share includes no dilution and is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding for the period. Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. |
2. Summary of Significant Ac_11
2. Summary of Significant Accounting Policies: Stock Purchase Warrants (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Stock Purchase Warrants | Stock Purchase Warrants The Company accounts for warrants issued to purchase shares of its common stock as equity in accordance with FASB ASC 480, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, Distinguishing Liabilities from Equity. |
2. Summary of Significant Ac_12
2. Summary of Significant Accounting Policies: Commitments and Contingencies (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Commitments and Contingencies | Management of the Company is not aware any other commitments or contingencies that would have a material adverse effect on the Company’s financial condition, results of operations or cash flows. |
2. Summary of Significant Ac_13
2. Summary of Significant Accounting Policies: Foreign Currency Translation (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Foreign Currency Translation | Foreign Currency translation The Company’s functional and reporting currency is the US dollar. Foreign exchange items are translated to US dollars using the exchange rate prevailing at the balance sheet date. Monetary assets and liabilities are translated using the exchange rate at the balance sheet date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average rates for the period. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. |
2. Summary of Significant Ac_14
2. Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
2. Summary of Significant Ac_15
2. Summary of Significant Accounting Policies: Investment in Joint Venture: Joint Venture Balance Sheets (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Joint Venture Balance Sheets | Joint Venture Balance Sheets As at December 31, 2018 All figures in USD Cash and cash equivalents 171,053 Deposit - Radiant 100,000 Computers (net of accumulated depreciation of $469) 4,350 Total assets 275,403 Accrued liabilities - Accrued liabilities – related party 26,000 Total liabilities 26,000 Venturer contributions 695,000 Retained earnings (445,597) Venturers’ equity 249,403 Total liabilities and venturers’ equity 275,403 As at June 30, 2018 All figures in USD Cash and cash equivalents 150,000 Total assets 150,000 Venturers’ equity 150,000 |
2. Summary of Significant Ac_16
2. Summary of Significant Accounting Policies: Investment in Joint Venture: Joint Venture Income Statement (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Joint Venture Income Statement | Joint Venture Income Statement For the three months ended December 31, 2018 All figures in USD Revenue - Expenses: Research and development 60,000 Management fees 81,500 Consulting fees 10,000 Legal and professional fees 6,189 Marketing expenses 7,500 Meals, entertainment and travel expenses 25,909 Project management expenses - General and administrative expenses 7,203 Depreciation 281 Net loss 198,582 2. Summary of Significant Accounting Policies (continued) Investment in Joint Venture (continued) For the six months ended December 31, 2018 All figures in USD Revenue - Expenses: Research and development 140,000 Management fees 161,500 Consulting fees 25,000 Legal and professional fees 19,636 Marketing expenses 18,767 Meals, entertainment and travel expenses 53,374 Project management expenses 13,413 General and administrative expenses 13,439 Depreciation 469 Net loss 445,598 |
2. Summary of Significant Ac_17
2. Summary of Significant Accounting Policies: Investment in Joint Venture: Joint Venture Balance Sheets (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Cash and cash equivalents | $ 166,867 | $ 334,650 |
Total assets | 166,867 | 334,650 |
Accounts payable and accrued liabilities | 0 | 12,800 |
Total liabilities | 0 | 12,800 |
Accumulated deficit | (357,656) | (42,375) |
Venturers' equity | 639,069 | 471,850 |
Total Liabilities and Stockholders' Equity | 639,069 | 484,650 |
Investment in Joint Venture | ||
Cash and cash equivalents | 171,053 | 150,000 |
Deposit - Radiant | 100,000 | |
Computers (net of accumulated depreciation of $469) | 4,350 | |
Total assets | 275,403 | 150,000 |
Accounts payable and accrued liabilities | 0 | |
Accrued liabilities - related party | 26,000 | |
Total liabilities | 26,000 | |
Venturer contributions | 695,000 | |
Accumulated deficit | (445,597) | |
Venturers' equity | 249,403 | |
Total Liabilities and Stockholders' Equity | $ 275,403 | $ 150,000 |
2. Summary of Significant Ac_18
2. Summary of Significant Accounting Policies: Investment in Joint Venture: Joint Venture Income Statement (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Revenue | $ 0 | $ 0 |
Expenses: | ||
General and administrative expenses | 626 | 1,374 |
Net loss | (140,482) | (315,281) |
Investment in Joint Venture | ||
Revenue | 0 | 0 |
Expenses: | ||
Research and development | 60,000 | 140,000 |
Management fees | 81,500 | 161,500 |
Consulting fees | 10,000 | 25,000 |
Legal and professional fees | 6,189 | 19,636 |
Marketing expenses | 7,500 | 18,767 |
Meals, entertainment and travel expenses | 25,909 | 53,374 |
Project management expenses | 0 | 13,413 |
General and administrative expenses | 7,203 | 13,439 |
Depreciation | 281 | 469 |
Net loss | $ 198,582 | $ 445,598 |
2. Summary of Significant Ac_19
2. Summary of Significant Accounting Policies: Investment in Joint Venture (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 6 Months Ended | 8 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | May 14, 2018 | |
Details | |||||
Investment in joint venture | $ 150,000 | $ 472,201 | $ 472,201 | $ 472,201 | $ 0 |
Investment in joint venture | 150,000 | 345,000 | 345,000 | 495,000 | |
Unrealized loss on joint venture | $ 0 | $ (99,291) | (222,799) | (272,799) | |
Noncash or Part Noncash Acquisition, Value of Assets Acquired | $ 200,000 | $ 200,000 |
4. Stockholders' Equity (Detail
4. Stockholders' Equity (Details) - $ / shares | Jun. 29, 2018 | Jun. 15, 2018 | Jun. 01, 2018 | May 22, 2018 | May 16, 2018 |
Details | |||||
Shares, Issued | 472,750 | 2,438,666 | 612,500 | 2,362,500 | 3,000,000 |
Shares Issued, Price Per Share | $ 0.50 | $ 0.15 | $ 0.05 | $ 0.01 | $ 0.0001 |
6. Subsequent Events (Details)
6. Subsequent Events (Details) | 6 Months Ended |
Dec. 31, 2018 | |
Event 1 | |
Subsequent Event, Description | Subsequent to period end subscriptions of 700,000 shares of common stock were issued at a purchase price of $0.50 per share and include the option to purchase up to 2,800,000 shares via warrants at exercise prices of $1.00 and $2.00 |
Event 2 | |
Subsequent Event, Description | $28,5502 in expenses incurred by the Company subsequent to period end have been agreed to be paid to the providers via issuance of a total of 57,100 shares of stock |
Event 3 | |
Subsequent Event, Description | 1,200,000 stock options were issued subsequent to period end with a range of exercise prices of $0.50 and $0.55 pursuant to the Company’s Directors, Officers, Employees and Consultants Stock Option Plan |