Cover
Cover - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Dec. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Oct. 31, 2021 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --10-31 | |
Entity File Number | 000-56122 | |
Entity Registrant Name | New World Technologies, Inc. | |
Entity Central Index Key | 0001756574 | |
Entity Tax Identification Number | 37-1913081 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1393 Veterans Memorial Highway | |
Entity Address, Address Line Two | Suite 100S | |
Entity Address, City or Town | Hauppauge | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11788 | |
City Area Code | 888 | |
Local Phone Number | 605-3510 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Public Float | $ 7,142,855 | |
Entity Common Stock, Shares Outstanding | 3,518,571 | |
Documents Incorporated by Reference | List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1980). | |
ICFR Auditor Attestation Flag | false | |
Auditor Firm ID | 5041 | |
Auditor Name | BF Borgers CPA PC | |
Auditor Location | Lakewood, CO |
Balance Sheet
Balance Sheet - USD ($) | Oct. 31, 2021 | Oct. 31, 2020 |
CURRENT ASSETS | ||
Cash | $ 262,368 | $ 701 |
Accounts receivable | ||
Prepaid expenses | ||
Total Current Assets | 262,368 | 701 |
Fixed assets, net | ||
OTHER ASSETS | ||
Security deposits | ||
Total Other Assets | ||
Long-term Assets - Operating Lease Right of Use Asset | 525,101 | 126,249 |
TOTAL ASSETS | 787,469 | 126,950 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 459,374 | 247,123 |
Current portion of notes payable | ||
Liability for common stock to be issued | 3,375,000 | |
Liability for preferred stock to be issued | ||
Total Current Liabilities | 3,834,374 | 247,123 |
Long-term Liabilities - Operating Lease | 561,257 | 133,477 |
TOTAL LIABILITIES | 4,395,631 | 380,600 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.0001 par value, 20,000,000 shares authorized, -0- shares issued and outstanding, respectively | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized, 3,518,571 and 3,518,571 shares issued and outstanding, respectively | 352 | 352 |
Additional paid in capital | 212,698 | 212,698 |
Accumulated Deficit | (3,821,212) | (466,700) |
Total Stockholders’ Equity | (3,608,162) | (253,650) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 787,469 | $ 126,950 |
Balance Sheet (Parenthetical)
Balance Sheet (Parenthetical) - $ / shares | Oct. 31, 2021 | Oct. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 3,518,571 | 3,518,571 |
Common stock, shares outstanding | 3,518,571 | 3,518,571 |
Statement of Operations
Statement of Operations - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Income Statement [Abstract] | ||
REVENUE | ||
OPERATING EXPENSES | ||
Payroll, consulting and professional fees | 3,091,000 | 214,600 |
Rent | 123,284 | 35,716 |
Selling, general and administrative | 154,640 | 51,751 |
Depreciation and amortization | ||
Cost of Device Units | ||
Total | 3,368,924 | 302,067 |
NET LOSS BEFORE OTHER INCOME (EXPENSE) | (3,368,924) | (302,067) |
OTHER INCOME (EXPENSE) | ||
Gain on Operating Lease Termination | 14,412 | |
TOTAL | 14,412 | |
LOSS BEFORE INCOME TAXES | (3,354,512) | (302,067) |
INCOME TAXES | ||
NET LOSS | $ (3,354,512) | $ (302,067) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC & DILUTED | 3,518,571 | 3,518,571 |
NET INCOME (LOSS) PER SHARE - BASIC & DILUTED | $ (0.95) | $ (0.09) |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,354,512) | $ (302,067) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | ||
Share-based compensation | 2,625,000 | |
Gain on Operating Lease Termination | (14,412) | |
Reduction of right of use asset, net - Operaitng lease | 36,156 | 1,056 |
Change in operating assets and liabilities | ||
Prepaid expenses | ||
Accounts receivable | ||
Accounts payable and accrued expenses | 219,435 | 212,168 |
Total adjustments | 2,866,179 | 213,224 |
Net cash used in operating activities | (488,333) | (88,843) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Security deposits | ||
Acquisition of fixed assets | ||
Disposition of fixed assets | ||
Net cash used in investing activities | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of preferred and common stock for cash (including liability for shares to be issued) | 750,000 | |
Proceeds received from notes payable | ||
Repayments of notes payable | ||
Net cash provided by financing activities | 750,000 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 261,667 | (88,843) |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 701 | 89,544 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 262,368 | 701 |
Cash paid during the period for: | ||
Interest | ||
Taxes | 3,701 | |
NON-CASH SUPPLEMENTAL INFORMATION: | ||
Issuance of common stock for liability of stock to be issued | ||
Issuance of preferred stock for liability of stock to be issued |
Statement of Changes in Stockho
Statement of Changes in Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Oct. 31, 2019 | $ 352 | $ 212,698 | $ (164,633) | $ 48,417 | |
Beginning balance, shares at Oct. 31, 2019 | 3,518,571 | ||||
Shares issued under agreements with consultants and employees | |||||
Shares issued under agreements with consultants and employees, shares | |||||
Shares issued for services rendered and liability for stock to be issued | |||||
Net loss | (302,067) | (302,067) | |||
Ending balance, value at Oct. 31, 2020 | $ 352 | 212,698 | (466,700) | (253,650) | |
Ending balance, shares at Oct. 31, 2020 | 3,518,571 | ||||
Shares issued under agreements with consultants and employees | |||||
Shares issued under agreements with consultants and employees, shares | |||||
Shares issued for services rendered and liability for stock to be issued | |||||
Shares issued for services rendered and liability for stock to be issued, shares | |||||
Net loss | (3,354,512) | (3,354,512) | |||
Ending balance, value at Oct. 31, 2021 | $ 352 | $ 212,698 | $ (3,821,212) | $ (3,608,162) | |
Ending balance, shares at Oct. 31, 2021 | 3,518,571 |
BASIS OF PRESENTATION AND BUSIN
BASIS OF PRESENTATION AND BUSINESS DESCRIPTION | 12 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND BUSINESS DESCRIPTION | 1. NOTE 1 – BASIS OF PRESENTATION AND BUSINESS DESCRIPTION The accompanying financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Accordingly, management is required to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ materially from those estimates. New World Technologies, Inc. (the “Company”), was formed in the State of Delaware on October 16, 2018. New World Technologies, Inc. is a healthcare and medical technology and device research, development and distribution company with a focus on developing and further providing innovative, cutting edge, technologically advanced products. Such technologies will be developed with an emphasis on diagnostics and screening technology, which potentially allows for the prevention or early detection and mitigation of potentially life-threatening illnesses. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Cash and Cash Equivalents The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”). Circumstances surrounding “checks awaiting deposit” Checks awaiting deposit are checks that are outstanding for a longer than normal period of time and are infrequent and even rare during the normal course of business. Checks awaiting deposits as reported on the balance sheet ending October 31, 2018 were solely due to one single check received by the Company. The check was dated October 29 th Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of ASC 718-10 “Share Based Payments”. The Company recognizes these compensation costs, net of an estimated forfeiture rate, on a pro rata basis over the requisite service period of each vesting tranche of each award. The Company considers voluntary termination behavior as well as trends of actual option forfeitures when estimating the forfeiture rate. Liability For Stock To Be Issued The Company from time to time enters into agreements for the issuance of common and preferred stock for cash and services. When the shares have not been issued, the Company records the amounts as liability for stock to be issued. For cash transactions the Company records the liability for the amount of cash received and for services the Company records the transaction in accordance with ASC 845 Nonmonetary transactions whereby the services are valued based on the fair value of the services or the equity instruments to be issued, whichever is more clearly evident, as of the measurement date. NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2021 and 2020 Recently Issued Accounting Standards The Financial Accounting Standards Board and the Securities Exchange commission have issued certain accounting standards updates and regulations that will become effective in subsequent periods. Except for the changes discussed below, management does not believe that any of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect in 2021 and 2020, and it does not believe that any of those pronouncements will have a significant impact on the Company’s financial statements at the time they become effective. Adoption of ASC 842 On November 1, 2018 (fiscal 2019), we adopted FASB Accounting Standards Codification, or ASC, Topic 842, Leases We adopted ASC 842 using a modified retrospective approach for all leases existing at November 1, 2018. The adoption of ASC 842 had a substantial impact on our balance sheet. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. Accordingly, upon adoption, leases that would be classified as operating leases under ASC 840 were classified as operating leases under ASC 842. During January 2021, we terminated our current lease for office space and as a result, relinquished the space and derecognized a right of use asset of $ 126,249 133,477 7,184 14,412 614,581 The lease liability is based on the present value of the remaining minimum lease payments, discounted using the Small Business Administration (“SBA”) 7(a) loan incremental borrowing rate of 2.25% 3.25% 5.5% We lease all our office space in conducting our business. We adopted ASC 842 effective November 1, 2018 (fiscal 2019). For contracts entered into on or after the effective date, at the inception of a contract we assess whether the contract is, or contains, a lease. Our assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. There were no lease obligations prior to November 1, 2018. NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2021 and 2020 Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. Our current operating lease is an office space lease, and the Company is currently not party to any finance leases. For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, an incremental borrowing rate for the same term as the underlying lease. For our operating lease, we used an incremental borrowing rate of 5.5% Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. Lease expense for our operating lease consists of the lease payments plus any initial direct costs, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases would consists of the amortization of the right-of-use asset on a straight-line basis over the lease term and interest expense determined on an amortized cost basis. The lease payments are allocated between a reduction of the lease liability and interest expense. The Company is currently not party to any finance leases. We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The Company is currently not party to any short-term leases. Changes in Stockholder’s Equity In 2018, the US Securities and Exchange Commission (“SEC”) adopted a release, “Disclosure Update and Simplification” which includes a new requirement that companies must present a reconciliation of changes in stockholders’ equity as a separate statement or footnote in interim financial statements. The SEC made this change by incorporating the requirements of Rule 3-04 of Regulation S-X in the SEC’s interim financial reporting rules. The Company reports its Statement in Changes in Stockholder’s Deficit with the Company’s financial statement reports provided within its interim reporting. These changes will be effective November 1, 2018 (fiscal 2019). |
COMMON STOCK and PREFERRED STOC
COMMON STOCK and PREFERRED STOCK | 12 Months Ended |
Oct. 31, 2021 | |
Equity [Abstract] | |
COMMON STOCK and PREFERRED STOCK | 2. NOTE 2 – COMMON STOCK and PREFERRED STOCK In October 2018, the Company filed a Certificate of Incorporation and organized under the Delaware General Corporation Law. Under this certificate, the Company has 100,000,000 .0001 20,000,000 .0001 Common Stock During October 2018, the Company issued 2,000,000 NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2021 and 2020 During October 2018, the Company raised $ 200,000 1,428,571 During October 2018, the Company entered into various agreements with key executives of the Company, and as a result, 90,000 12,600 During January 2021, the Company raised $ 500,000 100,000 500,000 During March 2021, the Company raised $ 250,000 50,000 250,000 During April 2021, the Company entered into a marketing services agreement. As a result, 500,000 2,500,000 During May 2021, the Company entered into a business advisory services agreement. As a result, 25,000 125,000 Preferred Stock The Company does not have any classes or series of preferred stock designated. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 3. NOTE 3 – INCOME TAXES The Company files U.S. federal and state of New York tax returns that are subject to audit by tax authorities beginning with the calendar year ended December 31, 2018. The Company’s policy is to classify assessments, if any, for tax and related interest and penalties as tax expense. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 4. NOTE 4 – COMMITMENTS Lease Agreement Our current operating lease right-of-use asset and operating lease liability represent our lease for office space used to conduct our business. As of October 31, 2021, the Company is not party to any finance leases. The lease has a remaining lease term of 7 SCHEDULE OF COMPONENTS OF LEASE EXPENSE October 31, October 31, 2021 2020 Operating lease cost (cost resulting from lease payments) $ 101,151 $ 23,630 Operating lease expense 123,284 35,716 The Company calculates its incremental borrowing rates for specific lease terms, used to discount future lease payments, as a function of the Small Business Administration (“SBA”) 7(a) loan incremental borrowing rates. The Company’s discount rate and lease term remaining on its lease liability is approximately 5.50% 7 36,156 1,056 As of October 31, 2021 and 2020, the Company’s right-of-use assets are $ 525,101 126,249 561,257 133,477 The Company has taken advantage of certain practical expedients offered to registrants at adoption of ASC 842. The Company does not apply the recognition requirements of ASC 842 to short-term leases and sub leases. Instead, those lease payments are recognized in profit or loss on a straight-line basis over the lease term. Further, as a practical expedient, all lease contracts are accounted for as one single lease component, as opposed to separating lease and non-lease components to allocate the consideration within a single lease contract. NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2021 and 2020 Maturities of aggregate operating lease liabilities as of October 31, 2021 were as follows: SCHEDULE OF MATURITIES OF AGGREGATE OPERATING LEASE LIABILITIES 2022 $ 106,000 2023 106,000 2024 106,000 2025 106,000 2026 106,000 Thereafter $ 115,000 Total minimum lease payments $ 645,000 Imputed interest $ (118,000 ) Total $ 527,000 The Company previously entered into a 6 February 28, 2025 34,659 3% During January 2021, the Company terminated its current lease for office space and as a result, relinquished the space and derecognized a right of use asset of $ 126,249 133,477 7,184 14,412 The Company entered into a 7 4,250 93,500 $ 123,284 35,716 Any excess of recognized rent expense over scheduled lease payments is included in accounts payable and accrued expenses. Employment Agreements In October 2018 the Company entered into an employment agreement with a key management individual. In accordance with the respective terms of the agreement, the Company is to issue equity compensation to this individual. As a result, 2,000,000 In October 2018 the Company entered into various employment agreements with key management individuals. In accordance with the respective terms of these agreements, the Company is to issue equity compensation to those individuals. As a result, 60,000 8,400 NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2021 and 2020 In October 2018 the Company entered into a Board of Director membership agreement with a key management individual. In accordance with the respective terms of this agreement, the Company is to issue equity compensation to this individual. As a result, 30,000 4,200 Stock Purchase Agreements During October 2018, the Company entered into a stock purchase agreement with a related party for the sale of shares of the Company’s common stock. As a result, 1,428,571 During January 2021, the Company entered into a stock purchase agreement with a related party for the sale of shares of the Company’s common stock. As a result, 100,000 During March 2021, the Company entered into a stock purchase agreement with a related party for the sale of shares of the Company’s common stock. As a result, 50,000 Marketing Services Agreement In April, 2021 the Company entered into a marketing services agreement with a professional marketing firm to establish a global marketing strategy that includes e-marketing, awareness, branding and digital media. The Company anticipates a global exposure initiative led by this firm to be launched by the end of fiscal 2021 and will help advance the business significantly. According to the terms of the agreement, the Company will compensate the consultant with a first payment period being May 15, 2021 to May 15, 2024 at $ 50,000 500,000 2,500,000 100,000 The term of the agreement has an initial term of 36 months and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew Business Advisory Agreement In May, 2021 the Company entered into a business advisory services agreement to assist the Company with establishing a global strategy within current international business, healthcare and finance standards of industry and practice. According to the terms of the agreement, the Company will compensate the consultant $ 5,000 25,000 125,000 2% 1% The term of the agreement is 12 months with termination by either party with 30 days written notice to the other of intent to cancel NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2021 and 2020 |
CREDIT RISK AND OTHER CONCENTRA
CREDIT RISK AND OTHER CONCENTRATIONS | 12 Months Ended |
Oct. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CREDIT RISK AND OTHER CONCENTRATIONS | 5. NOTE 5 – CREDIT RISK AND OTHER CONCENTRATIONS Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade receivables. The Company places its cash with high credit quality financial institutions. At times, such cash and cash equivalents may exceed the FDIC insured limit of $ 250,000 There are no accounts receivable concentrations and no revenue concentrations at October 31, 2021 and 2020. |
LIQUIDITY AND CAPITAL RESOURCES
LIQUIDITY AND CAPITAL RESOURCES | 12 Months Ended |
Oct. 31, 2021 | |
Liquidity And Capital Resources | |
LIQUIDITY AND CAPITAL RESOURCES | 6. NOTE 6 – LIQUIDITY AND CAPITAL RESOURCES The Company has recently incorporated and has not yet commenced operations. As the Company is currently jumpstarting its medical technology and device research, development and distribution business, there will be concerted, focused efforts on raising capital. During October 2018, we were successful in raising net proceeds of $ 200,000 750,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Oct. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 7. NOTE 7 – RELATED PARTY TRANSACTIONS During October 2018, the Company entered into a stock purchase agreement and sold 1,428,571 200,000 During January 2021, the Company entered into a stock purchase agreement and sold 100,000 500,000 During March 2021, the Company entered into a stock purchase agreement and sold 50,000 250,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 8. NOTE 8 – SUBSEQUENT EVENTS COMMITMENTS Marketing Services Agreement In November, 2021 the Company entered into an addendum to the marketing services agreement it entered into during April, 2021 to establish a global marketing strategy that includes e-marketing, awareness, branding and digital media. The Company anticipates a global exposure initiative led by this firm to now be launched by the end of first calendar quarter 2022. According to the terms of the addendum, the Company will compensate the consultant with a first payment period estimated to be during the first calendar quarter 2022 at $ 50,000 500,000 2,500,000 100,000 The term of the agreement has an initial term of 36 months which shall commence following the Company completing an IPO capital raise, as defined, and the Company becoming a registered publicly trading company and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2021 and 2020 Marketing Services Agreement In November 2021, the Company entered into a marketing services agreement with a professional marketing firm to establish a marketing strategy for e-marketing, awareness, social media platforms, branding, digital media and on-line presence. The Company anticipates these services to be an integral part of its global exposure initiative. According to the terms of the agreement, the Company will compensate the consultant $ 5,000 The term of the agreement is 12 months with termination by either party with 30 days written notice to the other of intent to cancel RELATED PARTY TRANSACTION Related Party Transaction / Acquisition The Company’s management continues to negotiate an asset purchase and sale transaction to acquire right, title and interest in certain business assets from a company that owns common shares in the Company and in which the Chief Executive Officer participates in. The Company is anticipating acquiring a medical technology, which also includes the assignment of any related FDA submittals, licenses, blueprints, test machines, schematics, or permits, as the case may be, and a predetermined amount of cash. The Company also anticipates the assignment and assumption of certain obligations and liabilities from that company as a result of the contemplated transaction. |
BASIS OF PRESENTATION AND BUS_2
BASIS OF PRESENTATION AND BUSINESS DESCRIPTION (Policies) | 12 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”). |
Circumstances surrounding “checks awaiting deposit” | Circumstances surrounding “checks awaiting deposit” Checks awaiting deposit are checks that are outstanding for a longer than normal period of time and are infrequent and even rare during the normal course of business. Checks awaiting deposits as reported on the balance sheet ending October 31, 2018 were solely due to one single check received by the Company. The check was dated October 29 th |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of ASC 718-10 “Share Based Payments”. The Company recognizes these compensation costs, net of an estimated forfeiture rate, on a pro rata basis over the requisite service period of each vesting tranche of each award. The Company considers voluntary termination behavior as well as trends of actual option forfeitures when estimating the forfeiture rate. |
Liability For Stock To Be Issued | Liability For Stock To Be Issued The Company from time to time enters into agreements for the issuance of common and preferred stock for cash and services. When the shares have not been issued, the Company records the amounts as liability for stock to be issued. For cash transactions the Company records the liability for the amount of cash received and for services the Company records the transaction in accordance with ASC 845 Nonmonetary transactions whereby the services are valued based on the fair value of the services or the equity instruments to be issued, whichever is more clearly evident, as of the measurement date. NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2021 and 2020 |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The Financial Accounting Standards Board and the Securities Exchange commission have issued certain accounting standards updates and regulations that will become effective in subsequent periods. Except for the changes discussed below, management does not believe that any of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect in 2021 and 2020, and it does not believe that any of those pronouncements will have a significant impact on the Company’s financial statements at the time they become effective. |
Adoption of ASC 842 | Adoption of ASC 842 On November 1, 2018 (fiscal 2019), we adopted FASB Accounting Standards Codification, or ASC, Topic 842, Leases We adopted ASC 842 using a modified retrospective approach for all leases existing at November 1, 2018. The adoption of ASC 842 had a substantial impact on our balance sheet. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. Accordingly, upon adoption, leases that would be classified as operating leases under ASC 840 were classified as operating leases under ASC 842. During January 2021, we terminated our current lease for office space and as a result, relinquished the space and derecognized a right of use asset of $ 126,249 133,477 7,184 14,412 614,581 The lease liability is based on the present value of the remaining minimum lease payments, discounted using the Small Business Administration (“SBA”) 7(a) loan incremental borrowing rate of 2.25% 3.25% 5.5% We lease all our office space in conducting our business. We adopted ASC 842 effective November 1, 2018 (fiscal 2019). For contracts entered into on or after the effective date, at the inception of a contract we assess whether the contract is, or contains, a lease. Our assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. There were no lease obligations prior to November 1, 2018. NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2021 and 2020 Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. Our current operating lease is an office space lease, and the Company is currently not party to any finance leases. For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, an incremental borrowing rate for the same term as the underlying lease. For our operating lease, we used an incremental borrowing rate of 5.5% Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. Lease expense for our operating lease consists of the lease payments plus any initial direct costs, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases would consists of the amortization of the right-of-use asset on a straight-line basis over the lease term and interest expense determined on an amortized cost basis. The lease payments are allocated between a reduction of the lease liability and interest expense. The Company is currently not party to any finance leases. We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The Company is currently not party to any short-term leases. |
Changes in Stockholder’s Equity | Changes in Stockholder’s Equity In 2018, the US Securities and Exchange Commission (“SEC”) adopted a release, “Disclosure Update and Simplification” which includes a new requirement that companies must present a reconciliation of changes in stockholders’ equity as a separate statement or footnote in interim financial statements. The SEC made this change by incorporating the requirements of Rule 3-04 of Regulation S-X in the SEC’s interim financial reporting rules. The Company reports its Statement in Changes in Stockholder’s Deficit with the Company’s financial statement reports provided within its interim reporting. These changes will be effective November 1, 2018 (fiscal 2019). |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE | SCHEDULE OF COMPONENTS OF LEASE EXPENSE October 31, October 31, 2021 2020 Operating lease cost (cost resulting from lease payments) $ 101,151 $ 23,630 Operating lease expense 123,284 35,716 |
SCHEDULE OF MATURITIES OF AGGREGATE OPERATING LEASE LIABILITIES | Maturities of aggregate operating lease liabilities as of October 31, 2021 were as follows: SCHEDULE OF MATURITIES OF AGGREGATE OPERATING LEASE LIABILITIES 2022 $ 106,000 2023 106,000 2024 106,000 2025 106,000 2026 106,000 Thereafter $ 115,000 Total minimum lease payments $ 645,000 Imputed interest $ (118,000 ) Total $ 527,000 |
BASIS OF PRESENTATION AND BUS_3
BASIS OF PRESENTATION AND BUSINESS DESCRIPTION (Details Narrative) - USD ($) | Nov. 02, 2018 | Jan. 31, 2021 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 01, 2021 |
Operating lease, right-of-use assets | $ 525,101 | $ 126,249 | |||
Operating lease liability | 527,000 | ||||
Gain on operating lease termination | $ 14,412 | ||||
Accounting Standards Update 2016-02 [Member] | |||||
Operating lease, right-of-use assets | $ 614,581 | $ 126,249 | |||
Operating lease liability | 133,477 | ||||
Deferred rent | $ 7,184 | ||||
Gain on operating lease termination | $ 14,412 | ||||
Lease liability, description | The lease liability is based on the present value of the remaining minimum lease payments, discounted using the Small Business Administration (“SBA”) 7(a) loan incremental borrowing rate of 2.25% + Prime (3.25%) = 5.5% at May 2020, using the original lease term as the tenor | ||||
Lease liability discount rate | 5.50% | ||||
Accounting Standards Update 2016-02 [Member] | Base Rate [Member] | |||||
Lease liability discount rate | 2.25% | ||||
Accounting Standards Update 2016-02 [Member] | Prime Rate [Member] | |||||
Lease liability discount rate | 3.25% |
COMMON STOCK and PREFERRED ST_2
COMMON STOCK and PREFERRED STOCK (Details Narrative) - USD ($) | 1 Months Ended | ||||||||
Mar. 31, 2021 | Jan. 31, 2021 | Jan. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2018 | Oct. 31, 2021 | May 31, 2021 | Apr. 30, 2021 | Oct. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common Stock, Shares, Issued | 3,518,571 | 3,518,571 | |||||||
Key Executives [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Issuance of common stock | 90,000 | ||||||||
Issuance of common stock, value | $ 12,600 | ||||||||
Employment Agreement [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Issuance of common stock | 2,000,000 | ||||||||
Stock Purchase Agreement [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Issuance of common stock | 1,428,571 | ||||||||
Issuance of common stock, value | $ 200,000 | ||||||||
Proceeds from issuance of common stock | $ 250,000 | $ 500,000 | |||||||
Common Stock, Shares, Issued | 25,000 | 500,000 | |||||||
Common stock, to be issued | $ 125,000 | $ 2,500,000 | |||||||
Stock Purchase Agreement [Member] | Chief Executive Officer [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Issuance of common stock | 50,000 | 100,000 | 100,000 | 100,000 | 1,428,571 | ||||
Issuance of common stock, value | $ 250,000 | $ 500,000 | $ 500,000 | $ 200,000 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost (cost resulting from lease payments) | $ 101,151 | $ 23,630 |
Operating lease expense | $ 123,284 | $ 35,716 |
SCHEDULE OF MATURITIES OF AGGRE
SCHEDULE OF MATURITIES OF AGGREGATE OPERATING LEASE LIABILITIES (Details) | Oct. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 106,000 |
2023 | 106,000 |
2024 | 106,000 |
2025 | 106,000 |
2026 | 106,000 |
Thereafter | 115,000 |
Total minimum lease payments | 645,000 |
Imputed interest | (118,000) |
Total | $ 527,000 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) | 1 Months Ended | 12 Months Ended | |||||||
May 31, 2021USD ($)shares | Apr. 30, 2021USD ($)shares | Mar. 31, 2021USD ($)shares | Jan. 31, 2021USD ($)shares | Jan. 31, 2021USD ($)shares | Jan. 31, 2021USD ($)shares | Oct. 31, 2018USD ($)shares | Oct. 31, 2021USD ($)ft² | Oct. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||||||
Operating lease, right-of-use assets | $ 525,101 | $ 126,249 | |||||||
Operating lease liability | 561,257 | 133,477 | |||||||
Gain on operating lease termination | 14,412 | ||||||||
Lease payment | 93,500 | ||||||||
Rental expense | 123,284 | 35,716 | |||||||
Employment Agreement [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Issuance of common stock | shares | 2,000,000 | ||||||||
Employment Agreements [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Issuance of common stock for equity compensation | shares | 60,000 | ||||||||
Issuance of common stock for equity compensation, value | $ 8,400 | ||||||||
Board of Director Membership Agreement [Member] | Board of Director [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Issuance of common stock for equity compensation | shares | 30,000 | ||||||||
Issuance of common stock for equity compensation, value | $ 4,200 | ||||||||
Stock Purchase Agreement [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Issuance of common stock | shares | 1,428,571 | ||||||||
Issuance of common stock for equity compensation, value | $ 200,000 | ||||||||
Stock Purchase Agreement [Member] | Chief Executive Officer [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Issuance of common stock | shares | 50,000 | 100,000 | 100,000 | 100,000 | 1,428,571 | ||||
Issuance of common stock for equity compensation, value | $ 250,000 | $ 500,000 | $ 500,000 | $ 200,000 | |||||
Marketing Services Agreement [Member] | Consultant [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Compensation paid | $ 50,000 | $ 100,000 | |||||||
Issuance of restricted stock, shares | shares | 500,000 | ||||||||
Issuance of restricted stock, value | $ 2,500,000 | ||||||||
Agreement term, description | The term of the agreement has an initial term of 36 months and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew | The term of the agreement has an initial term of 36 months which shall commence following the Company completing an IPO capital raise, as defined, and the Company becoming a registered publicly trading company and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew | |||||||
Business Advisory Services Agreement [Member] | Consultant [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Compensation paid | $ 5,000 | $ 5,000 | |||||||
Issuance of restricted stock, shares | shares | 25,000 | ||||||||
Issuance of restricted stock, value | $ 125,000 | ||||||||
Agreement term, description | The term of the agreement is 12 months with termination by either party with 30 days written notice to the other of intent to cancel | The term of the agreement is 12 months with termination by either party with 30 days written notice to the other of intent to cancel | |||||||
Cash management fee, percent | 2.00% | ||||||||
Common stock management fee percent | 1.00% | ||||||||
Lease Agreements [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Lease term remaining on lease liability | 7 years | ||||||||
Discount rate | 5.50% | ||||||||
Lease term | 7 years | ||||||||
Operating cash flows from operating leases | $ 36,156 | $ 1,056 | |||||||
Operating lease, right-of-use assets | $ 126,249 | 126,249 | 126,249 | ||||||
Operating lease liability | 133,477 | 133,477 | 133,477 | ||||||
Lease agreement term | 6 years | ||||||||
Lease expiration | Feb. 28, 2025 | ||||||||
Annual rental payments | $ 34,659 | ||||||||
Percentage of real estate taxes increase from base rent | 3.00% | ||||||||
Deferred rent | $ 7,184 | $ 7,184 | 7,184 | ||||||
Gain on operating lease termination | $ 14,412 | ||||||||
New Lease Agreements [Member] | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||
Lease agreement term | 7 years | ||||||||
Area of Land | ft² | 4,250 |
CREDIT RISK AND OTHER CONCENT_2
CREDIT RISK AND OTHER CONCENTRATIONS (Details Narrative) | Oct. 31, 2021USD ($) |
Maximum [Member] | |
FDIC insured amount | $ 250,000 |
LIQUIDITY AND CAPITAL RESOURC_2
LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - USD ($) | 1 Months Ended | ||
Mar. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2018 | |
Liquidity And Capital Resources | |||
Proceeds from issuance of private placement | $ 750,000 | $ 750,000 | $ 200,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - Stock Purchase Agreement [Member] - USD ($) | 1 Months Ended | ||||
Mar. 31, 2021 | Jan. 31, 2021 | Jan. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Issuance of common stock | 1,428,571 | ||||
Issuance of common stock, value | $ 200,000 | ||||
Chief Executive Officer [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Issuance of common stock | 50,000 | 100,000 | 100,000 | 100,000 | 1,428,571 |
Issuance of common stock, value | $ 250,000 | $ 500,000 | $ 500,000 | $ 200,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Consultant [Member] - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
May 31, 2021 | Apr. 30, 2021 | Jan. 31, 2022 | Oct. 31, 2021 | |
Marketing Services Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Compensation paid | $ 50,000 | $ 100,000 | ||
Issuance of restricted stock, shares | 500,000 | |||
Issuance of restricted stock, value | $ 2,500,000 | |||
Agreement term, description | The term of the agreement has an initial term of 36 months and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew | The term of the agreement has an initial term of 36 months which shall commence following the Company completing an IPO capital raise, as defined, and the Company becoming a registered publicly trading company and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew | ||
Marketing Services Agreement [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Compensation paid | $ 50,000 | |||
Issuance of restricted stock, shares | 500,000 | |||
Issuance of restricted stock, value | $ 2,500,000 | |||
Business Advisory Services Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Compensation paid | $ 5,000 | $ 5,000 | ||
Issuance of restricted stock, shares | 25,000 | |||
Issuance of restricted stock, value | $ 125,000 | |||
Agreement term, description | The term of the agreement is 12 months with termination by either party with 30 days written notice to the other of intent to cancel | The term of the agreement is 12 months with termination by either party with 30 days written notice to the other of intent to cancel |