Cover
Cover | 3 Months Ended |
Jul. 31, 2021 | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Period End Date | Jul. 31, 2021 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --10-31 |
Entity File Number | 000-56208 |
Entity Registrant Name | World Scan Project, Inc. |
Entity Central Index Key | 0001813744 |
Entity Tax Identification Number | 35-2677532 |
Entity Incorporation, State or Country Code | DE |
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 |
Contact Personnel Email Address | Issuer's telephone number: +81-3-6670-1692 |
consolidated balance sheets
consolidated balance sheets | Jul. 31, 2021USD ($) |
Current Assets | |
Cash and cash equivalents | $ 706,399 |
Accounts receivable, trade | 1,278,752 |
Advance payments and prepaid expenses | 2,235,834 |
Inventories | 256,624 |
TOTAL CURRENT ASSETS | 4,477,609 |
Non-current assets | |
Furniture, fixtures, equipment and software | 184,053 |
Lease asset long | 311,135 |
Long term prepaid expenses and security deposits, net | 79,670 |
TOTAL NON-CURRENT ASSETS | 574,671 |
TOTAL ASSETS | 5,052,467 |
Current Liabilities | |
Accrued expenses and other payables | 223,933 |
Income tax payables | 1,307,049 |
Short-term lease liability | 134,678 |
Due to related parties | 107,296 |
Other current liabilities | 15,769 |
TOTAL CURRENT LIABILITIES | 1,788,725 |
Non Current Liabilities | 107,296 |
Lease liability long term | 69,161 |
TOTAL LIABILITIES | 1,965,182 |
Preferred stock ($.0001 par value, 200,000,000 shares authorized; 10,000,000 shares issued and outstanding as of July 31, 2021 and October 31, 2021) | 1,000 |
Common stock ($.0001 par value, 200,000,000 shares authorized, 10,647,350 shares issued and outstanding as of July 31, 2021 and October 31, 2020) | 1,065 |
Additional paid-in capital | 323,987 |
Accumulated earnings | 2,776,609 |
Accumulated other comprehensive income (loss) | (15,376) |
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) | 3,087,285 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | $ 5,052,467 |
consolidated balance sheets (Pa
consolidated balance sheets (Parenthetical) | Jul. 31, 2021$ / sharesshares |
Statement of Financial Position [Abstract] | |
preferred stock par value | $ / shares | $ 1 |
authorized preferred shares | 200,000,000 |
preferred stock outstanding | 10,000,000 |
common stock par value | $ / shares | $ 1 |
common preferred shares | 200,000,000 |
common stock outstanding | 10,647,350 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 3,126,603 | $ 1,848,894 | $ 7,697,305 | $ 1,874,200 |
Cost of revenues | 1,492,729 | 510,145 | 3,091,595 | 533,074 |
Gross profit | 1,633,874 | 1,338,749 | 4,605,710 | 1,341,126 |
OPERATING EXPENSE | ||||
General and administrative expenses | 827,644 | 593,064 | 2,462,990 | 963,910 |
Total operating Expenses | 827,644 | 593,064 | 2,462,990 | 963,910 |
Income from operations | 806,230 | 745,685 | 2,142,720 | 377,216 |
Other income (expense) | ||||
Other income | 89,698 | (122) | 313,413 | (2,362) |
Translation income (expense) | (1) | 10 | (432) | 13 |
Total other income (expenses) | 89,697 | (112) | 312,981 | (2,349) |
Net income before tax | 895,927 | 745,573 | 2,455,701 | 374,867 |
Income tax expense | 351,343 | 134,014 | 993,001 | 134,014 |
NET INCOME | 544,584 | 611,559 | 1,462,700 | 240,853 |
OTHER COMPREHENSIVE INCOME | ||||
Foreign currency translation adjustment | (4,945) | 11,301 | (97,670) | 33,751 |
TOTAL COMPREHENSIVE INCOME | $ 539,639 | $ 622,860 | $ 1,365,030 | $ 274,604 |
Income per common share | ||||
Basic | $ 0.05 | $ 0.06 | $ 0.14 | $ 0.02 |
Diluted | $ 0.03 | $ 0.03 | $ 0.07 | $ 0.01 |
Weighted average common shares outstanding | ||||
Basic | 10,647,350 | 10,000,000 | 10,647,350 | 10,000,000 |
Diluted | 20,647,350 | 20,000,000 | 20,647,350 | 20,000,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Deficit) (Unaudited) - 12 months ended Oct. 31, 2020 - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Comprehensive Income [Member] | Retained Earnings [Member] | Total |
Balance – July 31, 2021 (unaudited) at Oct. 31, 2019 | $ 1,000 | $ 1,000 | $ (2,000) | $ (189) | $ (189) | |
Net income | 1,314,098 | 1,314,098 | ||||
Imputed Interests | 2,377 | 2,377 | ||||
Stock issuance Sept 2020 | 65 | 323,610 | 323,675 | |||
Foreign currency translation | $ 82,294 | $ 82,294 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,462,700 | $ 240,853 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 8,155 | 33 |
Imputed interest | 2,362 | |
Lease expense | 56,709 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, trade | (453,391) | |
Advance payments and other receivables | (1,754,216) | (931,695) |
Inventories | (253,063) | (258,033) |
Other assets | (75,595) | (6,234) |
Accrued expenses and other payables | 90,981 | 103,877 |
Income tax payables | 819,771 | 194,754 |
Lease liability | (56,709) | |
Deferred revenues | 927,229 | |
Other current liabilities | 112,714 | 7,672 |
Net cash provided by (used in) operating activities | (41,944) | 280,818 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid for purchase of fixed assets | (195,607) | |
Net cash used in investing activities | (195,607) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from due to related party | 143,621 | |
Repayment of due to related party | (143,427) | |
Net cash provided by financing activities | 194 | |
Net effect of exchange rate changes on cash | (30,656) | 33,751 |
Net Change in Cash and Cash Equivalents | (268,207) | 314,763 |
Cash and cash equivalents - beginning of period | 974,606 | |
Cash and cash equivalents - end of period | 706,399 | 314,763 |
NON-CASH TRANSACTIONS | ||
ROU asset / liability | 352,250 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Income taxes paid | $ 3,900,822 |
NOTE 1 - ORGANIZATION AND DESCR
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS World Scan Project, Inc., a Delaware corporation (“the Company”) was incorporated under the laws of the State of Delaware on October 25, 2019. On October 25, 2019, Ryohei Uetaki, our officer and director, paid for expenses involved with the incorporation of the Company with personal funds on behalf of the Company, in exchange for 10,000,000 shares of Common Stock, par value $0.0001 per share and 10,000,000 shares of Series A Preferred stock, par value $0.0001 per share, which issuance was exempt from the registration provisions of Section 5 of the Securities Act under Section 4(2) of such same said act. The value of the stock provided to Mr. Uetaki, based on the par value of $.0001 per share of common stock and Series A Preferred Stock, is valued at $2,000. On October 25, 2019, Ryohei Uetaki was appointed as Chief Executive Officer, Chief Financial Officer, President, Director, Secretary, and Treasurer. On November 18, 2019, Yasumasa Ichikawa was appointed as Chief Technology Officer. On January 25, 2020, the Company entered into and consummated a Share Contribution Agreement with Ryohei Uetaki. Pursuant to this agreement Mr. Uetaki gifted to the Company, at no cost, 300 shares of common stock of World Scan Project Corporation, a Japan corporation (“WSP Japan”), which represented all of its issued and outstanding shares. The Company has since gained a 100% interest in the issued and outstanding shares of WSP Japan’s common stock and WSP Japan is now a wholly owned subsidiary of the Company. The Company and WSP Japan were under common control at the time of the acquisition. WSP Japan was incorporated under the laws of Japan on January 22, 2020. Currently, WSP Japan is headquartered in Tokyo, Japan. The Company’s primary business is focused on developing and manufacturing of autonomous aerial vehicles including drones. On February 19, 2020, Ryohei Uetaki gifted 7,000,000 shares of our Common Stock and 10,000,000 shares of our Series A Preferred Stock, which represented all of our issued and outstanding shares of Preferred Stock at the time, to SKYPR LLC, a Delaware Limited Liability Company (referred to herein as “SKYPR LLC”). Our CEO Ryohei Uetaki owns and controls 100% of the membership interests in SKYPR LLC. In September, 2020, the Company entered into subscription agreements with 41 shareholders. Pursuant to these agreements, the Company issued 647,350 shares of common stock in total to these shareholders and received $323,675 as aggregate consideration. At the time of purchase the price paid per share by each shareholder was the equivalent of about 0.50 USD. These shares were sold pursuant to the Company’s effective S-1 Registration Statement deemed effective on August 28, 2020 at 4pm EST. We operate through our wholly owned subsidiary, World Scan Project Corporation, a Japanese Company. We are a start-up stage company currently focused on developing, designing and selling small sized drones which may be used for a variety of purposes. Our principal executive offices are located at 2-18-23, Nishiwaseda, Shinjuku-Ku, Tokyo, 169-0051, Japan. The Company has elected October 31st as its year end. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidations The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company's financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements. Use of Estimates 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. Related party transaction A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of nine months or less when purchased to be cash equivalents. Accounts Receivable and Credit Policies Accounts receivable are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. If there is a claim for a defect of product within four days after arrival of goods, the Company shall accept a goods return. Advance payments and prepaid expenses Advance payments and prepaid expenses are cash paid amounts that represent costs incurred from which a service or benefit is expected to be derived in the future. Inventory Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out ("FIFO") method, and are valued at the lower of cost or market value. This valuation requires the Company to make judgments, based on currently-available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. Fixed assets and depreciation The company recognizes purchased assets with a useful life longer than one year as fixed or non-current assets. These assets are depreciated using the straight-line method of depreciation over the estimated useful life of the assets. F-5 Table of Contents Foreign currency translation The Company maintains its books and records in its local currency, Japanese YEN (“JPY”), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements are recorded as a separate component of accumulated other comprehensive income within the statements of shareholders’ equity. Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates: July 31, 2021 Current JPY: US$1 exchange rate 109.70 Average JPY: US$1 exchange rate 107.60 Comprehensive income or loss ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying consolidated statements of shareholders’ equity consists of changes in unrealized gains and losses on foreign currency translation. Revenue recognition The Company adopted ASC 606 - Revenue from contracts with Customers: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. Revenue for products is recognized when the product are delivered to the customer and the customer complete the product inspection. Cash receipts for undelivered products are recorded as deferred revenues. As of July 31, 2021, the Company had no deferred revenues. Income Taxes The Company accounts for income taxes under ASC 740, “ Income Taxes Basic Earnings (Loss) Per Share The Company computes basic and diluted earnings (loss) per share in accordance with ASC Topic 260, Earnings per Share Fair Value of Financial Instruments The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. ASC 820, Fair Value Measurements and Disclosures - Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. - Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including 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 (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. - Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of July 31, 2021. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. As of July 31, 2021 and October 31, 2020, the Company had no financial instruments. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and issued subsequent amendments to the initial guidance or implementation guidance including ASU 2017-13, 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively, including ASU 2016-02, “ASC 842”). Under ASC 842, lessees will be required to recognize all leases at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The standard was effective for the Company beginning November 1, 2019, with early adoption permitted. The Company adopted the standard on November 1, 2019 on a modified retrospective basis and will not restate comparable periods. The Company elected the package of practical expedients permitted under the transition guidance, which allows the Company to carry forward the historical lease classification, the assessment whether a contract is or contains a lease and initial direct costs for any leases that exist prior to adoption of the new standard. The Company also elected the practical expedient not to separate lease and non-lease components for certain classes of underlying assets and the short-term lease exemption for contracts with lease terms of 12 months or less at October 31, 2010. But the office rent contract is automatically renewed. The Company applied this standard to the Company’s consolidated financial statements at this period. F-6 Table of Contents |
NOTE 3 - GOING CONCERN
NOTE 3 - GOING CONCERN | 3 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NOTE 3 - GOING CONCERN | NOTE 3 - GOING CONCERN The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company demonstrates adverse conditions that raise substantial doubt about the Company's ability to continue as a going concern for one year following the issuance of these financial statements. These adverse conditions are negative financial trends, dependency on a major customer, and other adverse key financial ratios. The Company has established a source of revenue to cover its operating costs but it has depended primarily upon one customer and the sale of one type of product to this primary customer. If our relationship with this primary customer is terminated, we will struggle to continue with our current business plan. In that case, we may be forced to alter, cease, or suspend our business operations entirely in a worst case scenario. Currently, the Company is developing new products and these will be sold to new customers. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern. |
NOTE 4 _ ADVANCE PAYMENTS AND P
NOTE 4 – ADVANCE PAYMENTS AND PREPAID EXPENSES | 3 Months Ended |
Jul. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
NOTE 4 – ADVANCE PAYMENTS AND PREPAID EXPENSES | NOTE 4 - ADVANCE PAYMENTS AND PREPAID EXPENSES Advance payments 2,235,834 540,286 July 31, 2021 October 31, 2020 Purchase of products from G-Force Inc. $ 1,784,667 $ 402,408 Purchase of products from Jumper Technology - 73,736 Purchase of products from Radio Maker 49,911 30,297 Purchase of parts from Solar Samba 144,472 - Purchase of parts from Bluish Co., Ltd 49,544 - Purchase of parts from Team M 50,137 - Other 157,103 33,845 Totals $ 2,235,834 $ 540,286 |
NOTE 5 _ FIXED ASSETS
NOTE 5 – FIXED ASSETS | 3 Months Ended |
Jul. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
NOTE 5 – FIXED ASSETS | NOTE 5 - FIXED ASSETS The company recognizes purchased assets with a useful life longer than one year as fixed or non-current assets. These assets are depreciated using the straight-line method of depreciation over the estimated useful life of the assets. During the nine months ended July 31, 2021, the Company purchased long-term assets, including a 360 laser scanner and various tools, furniture and fixtures, totaling $ 184,053 |
NOTE 6 - INCOME TAXES
NOTE 6 - INCOME TAXES | 3 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
NOTE 6 - INCOME TAXES | NOTE 6 - INCOME TAXES For the nine months ended July 31, 2021, the Company had income tax expense in the amount of $ 993,001 Japan The Company conducts its major businesses in Japan and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the local tax authority. The Company is subject to a number of income taxes, which, in aggregate, represent a statutory tax rate approximately as follows: Company’s assessable profit For the year ended October 31, Up to JPY 8 million Over JPY 8 million 2021 15.0% 23.2% As of July 31, 2021 and October 31, 2020, the Company had the income tax payable amount of $1,307,049 and $527,283. |
NOTE 7 - SHAREHOLDERS EQUITY
NOTE 7 - SHAREHOLDERS EQUITY | 3 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
NOTE 7 - SHAREHOLDERS EQUITY | NOTE 7 - SHAREHOLDERS EQUITY Preferred Stock The authorized preferred stock of the Company consists of 200,000,000 shares with a par value of $0.0001. The authorized Series A Preferred Stock of the Company consists of 100,000,000. There were 10,000,000 shares of Series A Preferred Stock issued and outstanding as of July 31, 2021 and October 31, 2020. The rights, preferences, privileges, restrictions and other matters relating to the Series A Preferred Stock are as follows: (a) Each share of Series A Preferred Stock shall have no voting rights; (b) Each shareholder of Series A Preferred Stock may convert their shares at the option of the holder thereof into an equal amount of shares of any other class or series of the Company’s stock on a one to one basis. Common Stock The authorized common stock of the Company consists of 200,000,000 shares with a par value of $0.0001. There were 10,647,350 shares of common stock issued and outstanding as of July 31, 2021 and October 31, 2020. On October 25, 2019, 10,000,000 shares of common stock and 10,000,000 shares of Series A Preferred Stock were issued to Ryohei Uetaki. In September, 2020, the Company entered into subscription agreements with 41 shareholders. Pursuant to these agreements, the Company issued 647,350 shares of common stock in total to these shareholders and received $323,675 as aggregate consideration. At the time of purchase the price paid per share by each shareholder was the equivalent of about 0.50 USD. These shares were sold pursuant to the Company’s effective S-1 Registration Statement deemed effective on August 28, 2020 at 4pm EST. |
NOTE 8 - RELATED-PARTY TRANSACT
NOTE 8 - RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2021 | |
Note 8 - Related-party Transactions | |
NOTE 8 - RELATED-PARTY TRANSACTIONS | NOTE 8 - RELATED-PARTY TRANSACTIONS Equity On October 25, 2019, 10,000,000 shares of common stock and 10,000,000 shares of Series A Preferred Stock were issued to Ryohei Uetaki. These shares are considered to be founder shares and were issued for services rendered to the Company. Ryohei Uetaki is our CEO and director. Due to related party For the nine months ended July 31, 2021, the Company borrowed $ 107,296 |
NOTE 9 _ VAT TAX CREDIT
NOTE 9 – VAT TAX CREDIT | 3 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
NOTE 9 – VAT TAX CREDIT | NOTE 9 - VAT TAX CREDIT For the period ended July 31, 2021, VAT taxes collected on sales transactions were exempted from payment under the Japanese consumption tax rules, resulting in a gain on VAT tax is recognized as credited in the P&L total $ 313,413 |
NOTE 10 _ LEASE ASSETS AND LIAB
NOTE 10 – LEASE ASSETS AND LIABILITIES | 3 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
NOTE 10 – LEASE ASSETS AND LIABILITIES | NOTE 10 - LEASE ASSETS AND LIABILITIES Our adoption of ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of November 1, 2020 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients,’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight. We determine if a contract is a lease at the inception of the arrangement. We review all options to extend, terminate, or purchase the ROU assets, and when reasonably certain to exercise, we include the option in the determination of the lease term and lease liability. We have four operating leases related to our office space in Tokyo with a remaining lease terms of 2 years. We recognized $ 56,709 Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term. The tables below present financial information associated with our lease Balance Sheet Classification July 31, 2021 October 31, 2020 Right-of-use assets Lease asset long $ 311,135 $ - Current lease liabilities Short-term lease liability 134,678 - Non-current lease liabilities Lease liability long term 176,457 - Maturities of lease liabilities as of July 31, 2021 are as follows: 2021 $ 13,100 2022 169,152 2023 128,883 Total 311,135 Add (Less): Imputed interest (24,317) Present value of lease liabilities 286,818 |
NOTE 11 - SUBSEQUENT EVENTS
NOTE 11 - SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
NOTE 11 - SUBSEQUENT EVENTS | NOTE 11 - SUBSEQUENT EVENTS From August 1, 2021 through the current date, the Company $107,296 from Kids Cell Technologies, Inc., a Company controlled by Ryohei Uetaki, CEO.. On October 22, 2021, the 20,000 SkyFight-X drones were delivered to Drone Net Co., Ltd. From this transaction the Company recorded revenues of approximately JPY49,500,000 (approximately $430,500). As of September 30, 2021, the Company had collected the full amount of $430,500 from Drone Net Co., Ltd., and no longer recognized any monies from this transaction as accounts receivable. The Company has evaluated subsequent events through October 28, 2021, the date on which the consolidated financial statements were available to be issued. |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidations | Principles of Consolidations The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Basis of Presentation | Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company's financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements. |
Use of Estimates | Use of Estimates 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. |
Related party transaction | Related party transaction A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of nine months or less when purchased to be cash equivalents. |
Accounts Receivable and Credit Policies | Accounts Receivable and Credit Policies Accounts receivable are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. If there is a claim for a defect of product within four days after arrival of goods, the Company shall accept a goods return. |
Advance payments and prepaid expenses | Advance payments and prepaid expenses Advance payments and prepaid expenses are cash paid amounts that represent costs incurred from which a service or benefit is expected to be derived in the future. |
Inventory | Inventory Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out ("FIFO") method, and are valued at the lower of cost or market value. This valuation requires the Company to make judgments, based on currently-available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. |
Fixed assets and depreciation | Fixed assets and depreciation The company recognizes purchased assets with a useful life longer than one year as fixed or non-current assets. These assets are depreciated using the straight-line method of depreciation over the estimated useful life of the assets. F-5 Table of Contents |
Foreign currency translation | Foreign currency translation The Company maintains its books and records in its local currency, Japanese YEN (“JPY”), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations. The reporting currency of the Company is the United States Dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements are recorded as a separate component of accumulated other comprehensive income within the statements of shareholders’ equity. Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates: July 31, 2021 Current JPY: US$1 exchange rate 109.70 Average JPY: US$1 exchange rate 107.60 |
Comprehensive income or loss | Comprehensive income or loss ASC Topic 220, “Comprehensive Income”, establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying consolidated statements of shareholders’ equity consists of changes in unrealized gains and losses on foreign currency translation. |
Revenue recognition | Revenue recognition The Company adopted ASC 606 - Revenue from contracts with Customers: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. Revenue for products is recognized when the product are delivered to the customer and the customer complete the product inspection. Cash receipts for undelivered products are recorded as deferred revenues. As of July 31, 2021, the Company had no deferred revenues. |
Income Taxes | Income Taxes The Company accounts for income taxes under ASC 740, “ Income Taxes |
Basic Earnings (Loss) Per Share | Basic Earnings (Loss) Per Share The Company computes basic and diluted earnings (loss) per share in accordance with ASC Topic 260, Earnings per Share |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. ASC 820, Fair Value Measurements and Disclosures - Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. - Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including 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 (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. - Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of July 31, 2021. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. As of July 31, 2021 and October 31, 2020, the Company had no financial instruments. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and issued subsequent amendments to the initial guidance or implementation guidance including ASU 2017-13, 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively, including ASU 2016-02, “ASC 842”). Under ASC 842, lessees will be required to recognize all leases at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The standard was effective for the Company beginning November 1, 2019, with early adoption permitted. The Company adopted the standard on November 1, 2019 on a modified retrospective basis and will not restate comparable periods. The Company elected the package of practical expedients permitted under the transition guidance, which allows the Company to carry forward the historical lease classification, the assessment whether a contract is or contains a lease and initial direct costs for any leases that exist prior to adoption of the new standard. The Company also elected the practical expedient not to separate lease and non-lease components for certain classes of underlying assets and the short-term lease exemption for contracts with lease terms of 12 months or less at October 31, 2010. But the office rent contract is automatically renewed. The Company applied this standard to the Company’s consolidated financial statements at this period. F-6 Table of Contents |
NOTE 10 _ LEASE ASSETS AND LI_2
NOTE 10 – LEASE ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
financial information associated with our lease | The tables below present financial information associated with our lease Balance Sheet Classification July 31, 2021 October 31, 2020 Right-of-use assets Lease asset long $ 311,135 $ - Current lease liabilities Short-term lease liability 134,678 - Non-current lease liabilities Lease liability long term 176,457 - Maturities of lease liabilities as of July 31, 2021 are as follows: 2021 $ 13,100 2022 169,152 2023 128,883 Total 311,135 Add (Less): Imputed interest (24,317) Present value of lease liabilities 286,818 |
NOTE 4 _ ADVANCE PAYMENTS AND_2
NOTE 4 – ADVANCE PAYMENTS AND PREPAID EXPENSES (Details Narrative) - USD ($) | Jul. 31, 2021 | Oct. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
advance payments | $ 2,235,834 | $ 540,286 |
NOTE 5 _ FIXED ASSETS (Details
NOTE 5 – FIXED ASSETS (Details Narrative) | 9 Months Ended |
Jul. 31, 2021USD ($) | |
Business Combination and Asset Acquisition [Abstract] | |
long term assets | $ 184,053 |
NOTE 6 - INCOME TAXES (Details
NOTE 6 - INCOME TAXES (Details Narrative) | 9 Months Ended |
Jul. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
income tax expense | $ 993,001 |
NOTE 8 - RELATED-PARTY TRANSA_2
NOTE 8 - RELATED-PARTY TRANSACTIONS (Details Narrative) | 9 Months Ended |
Jul. 31, 2021USD ($) | |
Note 8 - Related-party Transactions | |
borrowed from Kids Cell Technologies | $ 107,296 |
NOTE 9 _ VAT TAX CREDIT (Detail
NOTE 9 – VAT TAX CREDIT (Details Narrative) | 3 Months Ended |
Jul. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
vat tax credit | $ 313,413 |
NOTE 10 _ LEASE ASSETS AND LI_3
NOTE 10 – LEASE ASSETS AND LIABILITIES (Details Narrative) | 9 Months Ended |
Jul. 31, 2021USD ($) | |
Leases [Abstract] | |
operating lease costs | $ 56,709 |
Uncategorized Items - worldscan
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 1,722,255 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 3,087,285 |
Foreign currency translation | us-gaap_GoodwillForeignCurrencyTranslationGainLoss | (97,670) |
Comprehensive Income [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 82,294 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | (15,376) |
Foreign currency translation | us-gaap_GoodwillForeignCurrencyTranslationGainLoss | (97,670) |
NET INCOME | us-gaap_NetIncomeLoss | |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 1,313,909 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 2,776,609 |
Foreign currency translation | us-gaap_GoodwillForeignCurrencyTranslationGainLoss | |
NET INCOME | us-gaap_NetIncomeLoss | 1,462,700 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 1,065 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 1,065 |
Foreign currency translation | us-gaap_GoodwillForeignCurrencyTranslationGainLoss | |
NET INCOME | us-gaap_NetIncomeLoss | |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 323,987 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 323,987 |
Foreign currency translation | us-gaap_GoodwillForeignCurrencyTranslationGainLoss | |
NET INCOME | us-gaap_NetIncomeLoss | |
Preferred Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 1,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 1,000 |
Foreign currency translation | us-gaap_GoodwillForeignCurrencyTranslationGainLoss | |
NET INCOME | us-gaap_NetIncomeLoss |