| Summary of significant accounting policies | Note
2 – Summary of significant accounting policies Cash
and Cash Equivalents For
purposes of reporting within the balance sheets and the statements of cash flows, the Company considers all cash on hand, cash accounts
not subject to withdrawal restrictions or penalties, cash on deposit in attorney trust accounts, and all highly liquid debt instruments
purchased with a maturity of three months or less to be cash and cash equivalents. Prepaid
Expenses The
Company records amounts which have been paid in advance of receiving future economic benefits anticipated by the payment as prepaid expenses.
Prepaid expenses are recorded as assets and expensed over the period that the benefits are received from the payment. The Company recorded
as prepaid expenses of $ 0 0 Right-of-Use
Assets The
Company recognizes operating lease assets and lease liabilities in accordance with ASU 2016-02, “Leases (Topic 842).” ASU
2016-02 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases and
makes certain changes to the accounting for lease expenses. The Company has adopted this standard starting for the year ending November
30, 2020, the first year the Company had any leased assets. This standard requires us to increase our assets and liabilities by equal
amounts through the recognition of right-of-use assets and lease liabilities for our operating leases and to recognize the initial and
the monthly payments as operating expenses when paid or accrued on our Consolidated Statements of Operations and Consolidated Statements
of Cash Flows. On
November 2, 2020, the Company entered into an operating lease to lease an automobile for a net initial payment of $ 4,029 1,882 1,822 12,545 7,527 5,018 Lease
Contracts Receivable The
Company recognizes its participation as a lessor in direct financing leases in accordance with ASU 2016-02, “Leases (Topic 842).”
Topic 842 is now recognized as ASC 842 and the Company has adopted this new standard effective for all fiscal years starting on and after
December 1, 2021. In
accordance with ASC 842 the Company does not recognize the ownership of assets as a lessor in direct financing lease arrangements. Instead,
when the Company originates the lease, it records a net investment in the lease on the balance sheet. The asset amount is a lease contract
receivable equal to the present value of all the lease payments to be received and listed as both short term and long-term receivables
on the balance sheet. The liability amount is equal to the difference between the present value of the lease contract receivable and
the cost of leased equipment. The liability amount represents the unearned interest income that will be earned by the lessor over the
term of the lease, and it is listed as unearned income on lease contract receivable, a current liability. When the Company receives a
lease payment from a direct financing lease, the lease contract receivable is reduced by the entire payment and a portion of the payment
that represents the interest income is recognized as both interest income on lease receivable and as an equal reduction of the unearned
income on lease receivable. On
December 2, 2021, the Company entered into a direct financing lease as a lessor of $ 68,255 68,255 90,000 21,745 2,416 0 Investments
in Equities ASC
Topic 820, Fair Value Measurements and Disclosures ASC
Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1)
market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s
own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable
inputs). The
fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value
hierarchy under ASC Topic 820 are described as follows:
● Level
1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.
● Level
2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical
or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset
or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
● Level
3 – Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. For
those investments in equities, including equity securities and partnership interests, that have a “readily determinable fair value,”
as defined in ASC Topic 321 and discussed below, or are traded in a verifiable public market and are not restricted for sale in the public
market by a restricted stock legend, or can otherwise be reasonably valued using the three levels of the fair value hierarchy under ASC
Topic 820 discussed above, we present and carry our investments at their estimate of fair value at net asset value (NAV) as of the balance
sheet date. For these equity securities and partnership interests we include the realized and unrealized gains and losses arising from
the changes in the fair values during the period as a component of investment gains in the consolidated statements of operations. For
those investments in equities, including equity securities and partnership interests, that do not have a “readily determinable
fair value,” or are not traded in a verifiable public market or are restricted for sale in the public market by a restricted stock
legend or otherwise, we present and carry our investments using the measurement alternative which is cost minus impairment, if any, plus
or minus changes resulting from observable price changes in “orderly transactions,” as defined in ASC 321, for the identical
or a similar investment of the same issuer. Income
Taxes The
Company accounts for income taxes pursuant to FASB ASC Topic 740, Income Taxes The
Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon
the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and
results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable
income within the carry-forward period under the federal tax laws. Changes
in circumstances, including the Company generating significant taxable income, could cause a change in judgment about the reliability
of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate. Estimates The
financial statements are prepared on the basis of accounting principles generally accepted in the United States of America, also referred
to as U.S. GAAP. The preparation of financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the balance sheets and
the income and expenses for the periods ended as stated in the statements of operations. Revenue
Recognition The
Company recognizes consulting income in accordance with ASC 606. This standard’s stated core principle is that an entity should
recognize revenue to depict the transfer of promised services or goods to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, ASC 606 includes provisions
within a five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract,
determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when, or
as, an entity satisfies a performance obligation. Our
consulting revenues currently consist of consulting contracts for professional services that are performed over a stated period of time.
We recognize income for each contract on a pro-rata basis over the stated period of time as we satisfy a performance obligation. The
Company recognizes loan origination fees in accordance with ASC Topic 310-20, “Receivables Nonrefundable Fees and Other Costs”
and records these fees as “Other Income.” Accordingly, revenue from loan origination fees, net of their direct costs, are
deferred and amortized over the life of the loan to which they relate. Loan origination fees include fees for services and costs to originate,
renew or restructure a loan, including costs directly related to evaluating the financial performance of the potential borrower and preparing
loan documentation. Currently, the Company considers the costs of the loan origination fees to be immaterial for financial reporting
purposes and therefore does not directly allocate the costs of these services. Our
origination fees currently consist of our debtor’s stock that we have received from originating and renewing certain loans to the
debtor. The amount of the origination fee is determined as the value of the stock on the sooner of the first date the Company receives
the debtor’s stock without a restricted stock legend, or the first date the Company can otherwise ascertain the readily determinable
value of the debtor’s stock. In
accordance with “ASC 321 Investments – Equity Securities,” described below, if stock or other equity securities are
received for consulting income or origination fees then the value is measured at the cost of the equity securities minus impairment,
if any, plus or minus changes resulting from observable price changes in “orderly transactions,” as defined, for the identical
or a similar investment of the same issuer. The Company considers equity securities that have a restricted stock legend that restricts
their free trading to have no readily determinable fair value, unless the Company can substantiate that a different value could be received
for the identical or similar investment of the same issuer. Subsequent
Events The
Company evaluated subsequent events through the date when these financial statements are issued for disclosure consideration. Adoption
of Recent Accounting Pronouncements The
Company has implemented all new accounting pronouncements that are in effect and that management of the Company believes may impact its
financial statements, including ASC 842 described above under Right-of-Use Assets Lease Contracts Receivable Recent
Accounting Pronouncements Effective
December 1, 2017, the Company adopted Accounting Standards Update (“ASU”) 2016-01 “Financial Instruments—Recognition
and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 adds a new Topic, “ASC 321 Investments –
Equity Securities” to the FASB Accounting Standards Codification, which provides guidance on accounting for all equity investments. The
guidance in ASC 321 allows a measurement exception for those equity investments that do not have a “readily determinable fair value,”
as defined therein, and do not qualify to be measured using the practical expedient to estimate fair value at net asset value (NAV) of
the investee in accordance with ASC 820-1035-59, Fair Value Measurement and Disclosure. The measurement alternative allows those investments
to be measured at their cost minus impairment, if any, plus or minus changes resulting from observable price changes in “orderly
transactions,” as defined, for the identical or a similar investment of the same issuer. Hestia has elected to use this measurement
exception. See Note 3 below for a detailed listing of the Company’s investment in equities to which the measurement exception applies. |
