| Basis of Preparation | Note 3 - Basis of preparation The accompanying interim condensed consolidated financial
statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the
instructions to Form 10–Q and Rule 10 of Regulation S–X. Accordingly, they do not include all of the information and notes
required by accounting principles generally accepted in the United States of America. However, in the opinion of the management of the
Company, all adjustments necessary for a fair presentation of the financial position and operating results have been included in these
statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements
and notes thereto included in the Company’s Annual Report on Form 10 for the fiscal year ended April 30, 2020. Basis of consolidation The interim condensed consolidated financial statements
include the accounts of RCMW and its subsidiaries as of January 31, 2021 and 2020. The Company has five wholly owned subsidiaries: Hemp
Technology Inc. of Kentucky, Hemp Biotech Inc. of Kentucky, 4033000, 4033001 and 4033002 of Wyoming. Inter-company balances and transactions
are eliminated in preparing the interim condensed consolidated financial statements. The accounting policies of the subsidiaries are consistent
with RCMW. Use of estimates The preparation of interim condensed consolidated
financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make
estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the interim condensed consolidated financial statements and the reported amounts of expenses. We believe that the accounting estimates
employed are appropriate and that the resulting balances are reasonable; however, due to the inherent uncertainty in making estimates,
actual results could differ from the original estimates, resulting in changes to these balances in future periods. Net income (loss) per share We calculate net income (loss) per share in accordance
with Accounting Standards Codification (“ASC”) Topic 260, Earnings per Share Foreign Currency Translation The reporting currency of the Company is the United
States dollar. The financial statements of subsidiaries located outside of the U.S. are measured in their functional currency, which is
the local currency. The functional currency of RCMW is the U.S. dollar. Monetary assets and liabilities of these subsidiaries are translated
at the exchange rates at the balance sheet date. Income and expense items are translated using average monthly exchange rates. Non-monetary
assets are translated at their historical exchange rates. Translation adjustments are included in accumulated other comprehensive loss
in the condensed consolidated balance sheets and net income (loss) on the statement of operations as comprehensive income (loss). Fair Values of Financial Instruments The carrying amounts of cash, accounts receivable,
accounts payable, due to related parties, unearned revenues, loans, and other current liabilities approximate their fair value due to
the short-term nature of these instruments. The Company’s operations and financing activities are conducted primarily in United
States dollars and as a result, the Company is not subject to significant exposure to market risks from changes in foreign currency rates.
The Company is exposed to credit risk through its cash but mitigates this risk by keeping these deposits at major financial institutions. ASC Topic 820, Fair Value Measurements and Disclosures Fair value is defined as an exit price, representing
the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market
participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing
an asset or liability. Income taxes The Company utilizes the liability approach for accounting
and reporting for income taxes. The provision for income taxes is based upon income or loss after adjustment for those permanent items
that are not considered in the determination of taxable income. Deferred income taxes represent the tax effects of differences between
the financial reporting and tax basis of the Company’s assets and liabilities at the enacted tax rates in effect for the years in
which the differences are expected to reverse. The Company evaluates the recoverability of deferred
tax assets and establishes a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will
not be realized. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause
changes to previous estimates of tax liability. In management’s opinion, adequate provisions for income taxes have been made. If
actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. Tax benefits are recognized only for tax positions
that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount
of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits”
is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. The Company’s policy for recording interest
and penalties associated with tax audits is to record such items as a component of general and administrative expense. The Company has
identified its federal tax return and its state tax return in Wyoming as its “major” tax jurisdictions, and all prior year
returns remain subject to examination. The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax
Act reduced the U.S. federal corporate tax rate from 35% to 21%. As December 31, 2017, the Company had made a reasonable estimate of the
effects of the Tax Act. This estimate incorporates assumptions made based upon the Company’s current interpretation of the Tax Act
and may change as the Company may receive additional clarification and implementation guidance and as the interpretation of the Tax Act
evolves. In accordance with SEC Staff Accounting Bulletin No. 118, the Company has finalized the accounting for the effects of the Tax
Act during 2020. Future adjustments made to the provisional effects will be reported as a component of income tax expense in the reporting
period in which any such adjustments are determined. Stock based compensation The Company follows ASC Topic 718, Compensation
- Stock Compensation Impairment of Long-Lived Assets Management reviews for impairment whenever events
or changes in circumstances indicate that the carrying amount of property and equipment may not be recoverable under the provisions of
accounting for the impairment of long-lived assets. If it is determined that an impairment loss has occurred based upon expected future
cash flows, the loss is recognized in the Interim Condensed Consolidated Statement of Operations. Inventories Inventories are stated at the lower of cost, determined
principally under the first-in, first-out method, or net realizable value. Inventories include the cost of vape hardware, packaging, and
pet products. Obsolete or excess inventories are reflected at their estimated realizable values. Net realizable value is the estimated
sales revenue for a normal period of activity less expected selling costs. Allowances for excess and obsolete inventory are recognized
for excess amounts, obsolescence and declines in net realizable value below cost. Estimation and judgement are required in determining
the value of the allowance for excess and obsolete inventory at each balance sheet date. Management specifically analyzes estimates of
future demand for products when determining allowances for excess and obsolete inventory. Changes in these estimates could result in revisions
to the valuation of inventory in future periods. Property and Equipment Property, equipment, and improvements to leased premises
are depreciated using the straight-line method over the estimated useful lives of the assets, or when applicable, the term of the lease,
whichever is shorter. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated.
The estimated useful lives are generally as follows:
Machinery and Equipment 20%
Office Equipment 30%
Furniture and Fixtures 20% Revenue Recognition Sales comprise the fair value of the consideration
received or receivable for the sale of goods and rendering of services in the ordinary course of the Company’s activities. Sales
are presented, net of sales tax, rebates and discounts, and after eliminating sales within the Company. The Company recognizes revenue
when the amount of revenue and related cost can be reliably measured, it is probable that the collectability of the related receivables
is reasonably assured and when the specific criteria for each of the Company’s activities are met as follows: Sale of goods – Revenue from these sales is
recognized when an entity has delivered the goods to locations specified by its customers and the customers have accepted the goods in
accordance with the sales contract. Products are sold to certain customers with a volume discount and these customers also have the right
to return faulty goods. Revenue from these sales is recorded based on the contracted price less the estimated volume discount and returns
at the time of sale. Experience and projections are used to estimate the anticipated volume of sales and returns. Deposits received from customers for which the related
goods are not yet delivered represent contract liabilities and are recorded as unearned revenue. Cost of Goods Sold Costs related to expenses incurred to sell the Company’s
products and services are recorded as cost of goods sold when the related revenue is recognized. The Company records inventory costs of
the associated products delivered to customers within cost of goods sold. Acquisitions In accordance with the guidance for business combinations
(ASC Topic 805, Business Combinations Recent Accounting Pronouncements Management does not believe that any recently issued,
but not yet effective, accounting pronouncements, when adopted, will have a material effect on the accompanying interim condensed consolidated
financial statements. In August 2018, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Changes to Disclosure Requirements for Fair
Value Measurements, which will improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements.
The ASU removes, modifies, and adds certain disclosure requirements and is effective for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2019. The Company determined there is no material impact on the adoption of this standard on
its interim condensed consolidated financial statements. In December 2019, the FASB Issued ASU 2019-12, “Income
Taxes (Topic 740): Simplifying the Accounting of Income Taxes”, which is intended to simplify various aspects related to accounting
for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance
to improve consistent application. This guidance is effective for fiscal years and interim periods within those fiscal years, beginning
after December 15, 2020, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may
have on its financial statements. In January 2020, the FASB issued ASU 2020-1, “Investments
- Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) -
Clarifying the Interactions between Topic 321, Topic 323, and Topic 815” (“ASU 2020-1”). ASU 2020-1 is based on a consensus
of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2020-1 made targeted
improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without
a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly
transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should
consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities,
the amendments in ASU 2020-1 are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal
years. The Company is evaluating the potential impact of adoption of this standard on its consolidated financial statements. Other accounting standards have been issued or proposed
by the FASB that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated
financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or
are unrelated to its financial condition, results of operations, cash flows or disclosures. |
