| ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. ORGANIZATION
AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SYBLEU INC. (“Company”)
was organized June 12, 2020 under the laws of the State of Wyoming. The Company intends
to engage primarily in the development of regenerative medical applications up to the point of successful completion of Phase I
and or Phase II clinical trials after which the Company would either attempt to sell or license those developed applications or,
alternatively, advance the application further to Phase III clinical trials. The primary factor to be considered by us in arriving
at a decision to advance an application further to Phase III clinical trials would be a greater than anticipated indication of
efficacy seen in Phase I trials. A. BASIS OF ACCOUNTING The financial statements
have been prepared using the basis of accounting generally accepted in the United States of America. Under this basis of accounting,
revenues are recorded as earned and expenses are recorded at the time liabilities are incurred. The Company has adopted a June
30 year-end. B. 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. Actual results could differ
from those estimates. C. CASH EQUIVALENTS The Company considers
all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. D. FAIR VALUE OF FINANCIAL
INSTRUMENTS Fair value is the
price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most
advantageous market in an orderly transaction between market participants on the measurement date. A fair value hierarchy
requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs
required by the standard that the Company uses to measure fair value: Level 1: Quoted
prices in active markets for identical assets or liabilities Level 2: Observable
inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not
active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of
the related assets or liabilities. Level 3: Unobservable
inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. E. RESEARCH AND DEVELOPMENT
COSTS Research and development
expenses relate primarily to the cost of discovery and research programs. Research and development costs are charged to expense
as incurred. Research and development expenses consist mainly of evaluating potential Contract Research Organizations and filing
of a provisional patent application. F. STOCK BASED COMPENSATION Stock issued for Employee
Compensation Stock based compensation
to employees is accounted for at the award’s fair value at grant, less the amount (if any) paid by the award recipient. During the quarter
ending September 30, 2020 no stock was issued for employee compensation. Stock issued for Non-Employee
Services Stock Based compensation
to non-employees is accounted for in accordance with ASC 505-50. ASC 505-50 requires entities to account for non-employee equity
transactions based on either the fair value of the services received or the fair value of the equity instrument issued utilizing
whichever measurement is most reliable. Stock issued for compensation to non employees during the quarter ended September 30, 2020
were accounted for at the fair value of the equity instruments issued as there were no dollar amounts billed to the Company for
services rendered by the non employees. In determining the
Fair Value of shares issued as compensation, the Company took into account factors including the financial condition of the Company
at the time of grant, the Company’s lack of profitability, the lack of cash sales of the Company’s stock, and the Company’s
negative working capital as of the time of grant. Pursuant to ASC 505-50-30-11505-50-30-11
an issuer shall measure the fair value of the equity instruments in these transactions using the stock price and other measurement
assumptions as of the earlier of the following dates, referred to as the measurement date:
i. The date at which a commitment for performance by the counterparty to earn the equity instruments is reached (a performance commitment); and
ii. The date at which the counterparty’s performance is complete. The Company has assessed
that the date of issuance of the stock grant constituted commitment for performance therefore stock grants to nonemployees issued
during the period were measured as of the issue date.The following Summarizes the Company’s issuance of stock for nonemployee
services for the quarter ended September 30, 2020:
Balance July 1, 2020
Unvested Shares 0
Vested Shares 0
Total July 1, 2020 0
Shares Issued Vested 65,000
Balance September 30, 2020 65,000 65,000 of the Common
Shares of the Company issued on July 8, 2020:
Fair Value of Intellectual Property as of July 8, 2020 1,545
Notes Payable as of July 8, 2020 13,329
Enterprise Value as of July 8, 2020 14,874
Less: Total Debt (13,329 )
Portion of Enterprise Value available to Common Shareholders 1,545
Per Share Portion of Enterprise Value available to Common Shareholders $ 0.000164 G. INCOME TAXES The Company accounts
for income taxes using the liability method prescribed by ASC 740, “Income Taxes.” Under this method, deferred tax
assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities
using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records
a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that
some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is
recognized as income or loss in the period that includes the enactment date. The Company applied
the provisions of ASC 740-10-50, “Accounting For Uncertainty In Income Taxes”, which provides clarification related
to the process associated with accounting for uncertain tax positions recognized in our financial statements. Audit periods remain
open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations
for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could
be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results
of operations for the given period. As of September 30, 2020 the Company had no uncertain tax positions, and will continue to evaluate
for uncertain positions in the future. The Company generated
a deferred tax credit through net operating loss carry forward. However, a valuation allowance of 100% has been established. Interest and penalties
on tax deficiencies recognized in accordance with ACS accounting standards are classified as income taxes in accordance with ASC
Topic 740-10-50-19. H. BASIC EARNINGS
(LOSS) PER SHARE The Financial Accounting
Standards Board (FASB) issued Accounting Standards Codification (ASC) 260, "Earnings Per Share", which specifies the
computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock.
ASC 260 requires the presentation of basic earnings (loss) per share and diluted earnings (loss) per share. The Company has adopted
the provisions of ASC 260 effective from inception. Basic net loss per
share amounts is computed by dividing the net income by the weighted average number of common shares outstanding. There were no
Common Stock Equivalents as of September 30, 2020. |
