Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2020 | Mar. 16, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --10-31 | |
Entity File Number | 333-235873 | |
Entity Registrant Name | Freedom Internet Group Inc. | |
Entity Central Index Key | 0001791325 | |
Entity Incorporation, State or Country Code | PR | |
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 | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,076,800 |
Balance Sheets
Balance Sheets - USD ($) | Jan. 31, 2020 | Oct. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 820,300 | $ 1,179,497 |
Due from related party | 2,839 | 2,839 |
Prepaid expenses | 0 | 5,000 |
Total Current Assets | 823,139 | 1,187,336 |
Royalty interests, net of accumulated amortization of $13,791 and $0, respectively | 731,884 | 495,675 |
Total assets | 1,555,023 | 1,683,011 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 6,244 | 7,943 |
Reserve for share-based payment transactions (SAFE convertible contributions) | 1,812,000 | 1,812,000 |
Total Liabilities | 1,818,244 | 1,819,943 |
Stockholders' Deficit | ||
Preferred Stock; $0.01 par value; 5,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock; $0.01 par value; 200,000,000 shares authorized, 3,076,800 shares issued and outstanding | 30,768 | 30,768 |
Accumulated deficit | (293,989) | (167,700) |
Total Stockholders' Deficit | (263,221) | (136,932) |
Total Liabilities and Stockholders' Deficit | $ 1,555,023 | $ 1,683,011 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jan. 31, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Royalty interests, accumulated amortization | $ 13,791 | $ 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 200,000,000 | 200,000,000 |
Common stock, issued | 3,076,800 | 3,076,800 |
Common stock, outstanding | 3,076,800 | 3,076,800 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 0 | $ 0 |
Operating expenses | ||
Professional and consulting fees | 94,395 | 1,200 |
Salaries and payroll taxes | 17,442 | 0 |
Rent expenses | 225 | 25 |
Amortization of royalty interests | 13,791 | 0 |
Other expenses | 4,724 | 1,045 |
Total operating expenses | 130,577 | 2,270 |
Loss from operations | (130,577) | (2,270) |
Other income (expenses) | ||
Interest expense | 0 | 0 |
Interest income | 3,900 | 0 |
Other | 388 | 25 |
Total other income (expenses) | 4,288 | 25 |
Net loss before income taxes | (126,289) | (2,245) |
Income tax provision | 0 | 0 |
Net loss after income taxes | $ (126,289) | $ (2,245) |
Net loss per common share - basic and fully diluted | $ (0.04) | $ 0 |
Weighted average common shares outstanding - basic and diluted | 3,076,800 | 2,076,800 |
Statement of Shareholders Equit
Statement of Shareholders Equity (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, shares at Nov. 14, 2018 | 0 | 0 | |||
Beginning Balance, amount at Nov. 14, 2018 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Shares issued to founders, shares | 2,076,800 | ||||
Shares issued to founders, amount | $ 20,768 | 20,768 | |||
Net loss | (2,245) | (2,245) | |||
Ending Balance, shares at Jan. 31, 2019 | 0 | 2,076,800 | |||
Ending Balance, amount at Jan. 31, 2019 | $ 0 | $ 20,768 | 0 | (2,245) | (18,523) |
Beginning Balance, shares at Oct. 31, 2019 | 0 | 3,076,800 | |||
Beginning Balance, amount at Oct. 31, 2019 | $ 0 | $ 30,768 | 0 | (167,700) | (136,932) |
Net loss | (126,289) | (126,289) | |||
Ending Balance, shares at Jan. 31, 2020 | 0 | 3,076,800 | |||
Ending Balance, amount at Jan. 31, 2020 | $ 0 | $ 30,768 | $ 0 | $ (293,989) | $ (263,221) |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (126,289) | $ (2,245) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of royalty interests | 13,791 | 0 |
Prepaid expenses | 5,000 | 0 |
Accounts payable and accrued liabilities | (1,699) | 0 |
Net cash used in operating activities | (109,197) | (2,245) |
Cash flows from investing activities | ||
Purchase of royalty interest | (250,000) | 0 |
Net cash used in investing activities | (250,000) | 0 |
Cash flows from financing activities | ||
Issuance of founders' shares | 0 | 20,768 |
Net cash provided from financing activities | 0 | 20,768 |
Net change in cash and cash equivalents | (359,197) | 18,523 |
Cash and cash equivalents, at beginning of period | 1,179,497 | 0 |
Cash and cash equivalents, at end of period | 820,300 | 18,523 |
Supplemental cash flow information: | ||
Interest paid | 42 | 0 |
Income taxes paid | $ 0 | $ 0 |
1. ORGANIZATION AND DESCRIPTION
1. ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | On November 15, 2018, (commencement of operations) Freedom Internet Group, Inc. (the “Company”), was organized in Puerto Rico to provide Internet-focused entrepreneurs with business consulting services, centralized management services and revenue-based financing. |
2. SUMMARY OF SIGNIFICANT ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. The accompanying interim unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended January 31, 2020, are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures presented herein is adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the period ended October 31, 2019. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America, and, as such, include amounts based on judgments, estimates, and assumptions made by management that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company is in the development stage, which is defined as an entity devoting substantially all of its efforts to establishing a new business and for which its primary line of business has not yet begun. As of October 31, 2019, the Company was still in the process of developing its accounting policies and procedures. Following is a description of the more significant accounting policies followed by the Company: Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Royalty Interests The Company has a total of $745,675 invested in royalty interests. Royalty interests are passive (non-operating) agreements that provide us with contractual rights to a percentage of revenue produced from companies we provide funds to. The Company amortizes the cost of royalty interests using the straight-line method over a period of 15 years. Royalty interests are considered a long-lived asset that is required to be reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Impairment exists for the royalty interests if the carrying amount exceeds the estimates of future net undiscounted cash flows expected to be generated by such assets. An impairment charge is required to be recognized if the carrying amount of the asset, or asset group, exceeds its fair value. During the three months ended January 31, 2020, the Company amortized $13,791 of the royalty interests. Revenue Recognition We recognize revenue upon collection from amounts due under royalty interest agreements. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers Expenses are recognized when incurred. Income Taxes Income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. 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 income in the period that includes the Enactment date. A valuation allowance is established for deferred tax assets that, based on management ’ Tax benefits of uncertain tax positions are recorded only where the position is “more likely than not” to be sustained based on their technical merits. The amount recognized is the amount that represents the largest amount of tax benefit that is greater than 50% likely of being ultimately realized. A liability is recognized for any benefit claimed or expected to be claimed, in a tax return in excess of the benefit recorded in the financial statements, along with any interest and penalty (if applicable) in such excess. The Company has no uncertain tax positions as of January 31, 2020. |
3. ROYALTY INTERESTS
3. ROYALTY INTERESTS | 3 Months Ended |
Jan. 31, 2020 | |
Research and Development [Abstract] | |
ROYALTY INTERESTS | Wiz Motions, LLC On October 10, 2019, the Company acquired a royalty interest from Wiz Motions, LLC (“Wiz”) a limited liability company formed in the State of Wyoming. Wiz provides their clients with custom video animation explainer videos. The Company purchased a royalty interest from Wiz for $300,000 which provides it with a perpetual 10% of all future gross sales generated by Wiz through www.WizMotions.com and all other sources. The Company recognized no revenue during the three months ended January 31, 2020. The Company amortized $5,833 of the original royalty purchase into royalty expense for the three months ended January 31, 2020. Offito, LLC On October 15, 2019, the Company acquired a royalty interest from Offito, LLC (“Offito”) a limited liability company formed in the State of Wyoming. Offito provides their clients with an application to help monetize their website traffic. The Company purchased a royalty interest from Offito for $195,000 which provides it with a percentage of all future Net Sales as follows: 50% of the first $10,000, 35% of the next $10,000 and 25% of any amount over $20,000. The Company had no revenue from Offito, during the three months ended January 31, 2020. The Company amortized $3,791 of the original royalty purchase into royalty expense for the three months ended January 31, 2020. Growth Stack, Inc. On November 22, 2019, the Company acquired a royalty interest from Growth Stack, Inc., (“Growth Stack”) a corporation formed in the State of Nevada. Growth Stack provides their clients with various Internet applications, website tools and information services. The Company purchased a royalty interest from Growth Stack for $250,000, which provides us with a percentage of all future Net Sales (defined below) as follows: 5% of the first $100,000 of Net Sales per month, and 3% of the next $100,000 of Net Sales per month. The Company will also receive 1% of the Net Sales in excess of $200,000 per month, until it receives a total of $500,000 in aggregate royalty payments from Growth Stack. The Company is also entitled to a payment of between $500,000 and $1 million in the event (i) Growth Stack elects to buy-out the royalty interest or (ii) Growth Stack undergoes a change of control. In addition, the Company has the right of first refusal to acquire Growth Stack assets in the event the operator decides to sell, and we have received a personal guarantee for royalty payments due by the principal shareholder of Growth Stack. Royalty payments will be due monthly. During the three months ended January 31, 2020, the Company recognized no revenue related to Growth Stack, Inc. The Company amortized $4,167 of the original purchase of the royalty into royalty expense during the three months ended January 31, 2020. |
2. SUMMARY OF SIGNIFICANT ACC_2
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. The accompanying interim unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information in accordance with Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended January 31, 2020, are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures presented herein is adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the period ended October 31, 2019. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America, and, as such, include amounts based on judgments, estimates, and assumptions made by management that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company is in the development stage, which is defined as an entity devoting substantially all of its efforts to establishing a new business and for which its primary line of business has not yet begun. As of October 31, 2019, the Company was still in the process of developing its accounting policies and procedures. Following is a description of the more significant accounting policies followed by the Company: |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Royalty Interests | Royalty Interests The Company has a total of $745,675 invested in royalty interests. Royalty interests are passive (non-operating) agreements that provide us with contractual rights to a percentage of revenue produced from companies we provide funds to. The Company amortizes the cost of royalty interests using the straight-line method over a period of 15 years. Royalty interests are considered a long-lived asset that is required to be reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Impairment exists for the royalty interests if the carrying amount exceeds the estimates of future net undiscounted cash flows expected to be generated by such assets. An impairment charge is required to be recognized if the carrying amount of the asset, or asset group, exceeds its fair value. During the three months ended January 31, 2020, the Company amortized $13,791 of the royalty interests. |
Revenue Recognition | Revenue Recognition We recognize revenue upon collection from amounts due under royalty interest agreements. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers Expenses are recognized when incurred. |
Income Taxes | Income Taxes ’ Tax benefits of uncertain tax positions are recorded only where the position is “more likely than not” to be sustained based on their technical merits. The amount recognized is the amount that represents the largest amount of tax benefit that is greater than 50% likely of being ultimately realized. A liability is recognized for any benefit claimed or expected to be claimed, in a tax return in excess of the benefit recorded in the financial statements, along with any interest and penalty (if applicable) in such excess. The Company has no uncertain tax positions as of January 31, 2020. |
2. SUMMARY OF SIGNIFICANT ACC_3
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)) - USD ($) | 3 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Summary Of Significant Accounting Policies | ||
Amortization of royalty interests | $ 13,791 | $ 0 |