Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Details | ||
Registrant CIK | 0001832161 | |
Fiscal Year End | --06-30 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 333-252983 | |
Entity Registrant Name | KeyStar Corp. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 85-0738656 | |
Entity Address, Address Line One | 9620 Las Vegas Blvd. S STE E4-98 | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89118 | |
City Area Code | 702 | |
Local Phone Number | 800-2511 | |
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 | 29,000,000 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash | $ 62,114 | $ 37,918 |
Inventory, net | 10,722 | 45,122 |
Prepaid expenses | 0 | 468 |
Total current assets | 72,836 | 83,508 |
Other assets: | ||
Security deposit | 1,523 | 0 |
Total other assets | 1,523 | 0 |
Total assets | 74,359 | 83,508 |
Current liabilities: | ||
Accounts payable and accrued expenses | 2,004 | 4,572 |
Accounts payable and accrued expenses - related party | 22,635 | 26,529 |
Notes payable - related party | 65,000 | 35,000 |
Convertible debt - related party | 10,000 | 10,000 |
Total current liabilities | 99,639 | 76,101 |
Total liabilities | 99,639 | 76,101 |
Stockholders' equity (deficit): | ||
Preferred stock, series A, $0.0001 par value, 25,000,000 shares authorized 2,000,000 and 2,000,000 shares issued and outstanding as of March 31, 2021 and June 30, 2020, respectively | 200 | 200 |
Common stock, $0.0001 par value, 475,000,000 shares authorized 29,000,000 shares issued and outstanding as of March 31, 2021 and June 30, 2020, respectively | 2,900 | 2,900 |
Additional paid-in capital | 13,400 | 13,400 |
Stock subscriptions receivable | 0 | (1,500) |
Accumulated deficit | (41,780) | (7,593) |
Total stockholders' equity (deficit) | (25,280) | 7,407 |
Total liabilities and stockholders' equity (deficit) | $ 74,359 | $ 83,508 |
BALANCE SHEETS - Parenthetical
BALANCE SHEETS - Parenthetical - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Preferred Stock, Shares Issued | 2,000,000 | 2,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 475,000,000 | 475,000,000 |
Common Stock, Shares, Issued | 29,000,000 | 29,000,000 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Mar. 31, 2021 | |
Details | ||
Revenues | $ 14,263 | $ 40,375 |
Cost of goods sold | 12,038 | 40,136 |
Gross profit | 2,225 | 239 |
Operating expenses: | ||
General and administrative | 3,000 | 29,893 |
Selling expenses | 0 | 407 |
Total operating expenses | 3,000 | 30,300 |
Other expense: | ||
Interest expense - related party | (1,849) | (4,126) |
Total other expense | (1,849) | (4,126) |
Net loss | $ (2,624) | $ (34,187) |
Earnings Per Share, Basic and Diluted | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 29,000,000 | 29,000,000 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Deferred Compensation, Share-based Payments | Retained Earnings | Total |
Equity Balance at Jun. 30, 2020 | $ 200 | $ 2,900 | $ 13,400 | $ (1,500) | $ (7,593) | $ 7,407 |
Equity Balance, Shares at Jun. 30, 2020 | 2,000,000 | 29,000,000 | ||||
Stock issued for cash, value | $ 0 | $ 0 | 0 | 1,500 | 0 | 1,500 |
Net income (loss) for the period | $ 0 | $ 0 | 0 | 0 | (17,997) | (17,997) |
Equity Balance, Shares at Sep. 30, 2020 | 2,000,000 | 29,000,000 | ||||
Equity Balance at Sep. 30, 2020 | $ 200 | $ 2,900 | 13,400 | 0 | (25,590) | (9,090) |
Net income (loss) for the period | $ 0 | $ 0 | 0 | 0 | (13,566) | (13,566) |
Equity Balance, Shares at Dec. 31, 2020 | 2,000,000 | 29,000,000 | ||||
Equity Balance at Dec. 31, 2020 | $ 200 | $ 2,900 | 13,400 | 0 | (39,156) | (22,656) |
Net income (loss) for the period | $ 0 | $ 0 | 0 | 0 | (2,624) | (2,624) |
Equity Balance, Shares at Mar. 31, 2021 | 2,000,000 | 29,000,000 | ||||
Equity Balance at Mar. 31, 2021 | $ 200 | $ 2,900 | $ 13,400 | $ 0 | $ (41,780) | $ (25,280) |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS | 9 Months Ended |
Mar. 31, 2021USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |
Net loss | $ (34,187) |
Adjustments to reconcile to net loss to net cash provided by operating activities: | |
Expenses paid on behalf of the company by related party | 2,218 |
Changes in operating assets and liabilities: | |
Inventory: | 34,400 |
Prepaid expenses: | (1,055) |
Accounts payable and accrued expenses: | (2,568) |
Accounts payable and accrued expenses - related party: | 4,126 |
Net cash provided by operating activities | 2,934 |
CASH FLOWS FROM INVESTING ACTIVITIES | |
Net cash from investing activities | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | |
Proceeds from notes payable, related party | 30,000 |
Repayment of amounts due to related party | (10,238) |
Cash received in satisfaction of stock subscriptions receivable | 1,500 |
Net cash provided by financing activities | 21,262 |
NET CHANGE IN CASH | 24,196 |
CASH AT BEGINNING OF PERIOD | 37,918 |
CASH AT END OF PERIOD | 62,114 |
SUPPLEMENTAL INFORMATION: | |
Interest paid | 0 |
Income taxes paid | $ 0 |
BASIS OF PRESENTATION DISCLOSUR
BASIS OF PRESENTATION DISCLOSURE | 9 Months Ended |
Mar. 31, 2021 | |
Notes | |
BASIS OF PRESENTATION DISCLOSURE | NOTE 1 - BASIS OF PRESENTATION The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements. These unaudited interim financial statements should be read in conjunction with the audited financial statements and the notes thereto included on Form S-1 for the year ended June 30, 2020. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented. Operating results for the nine months period ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending June 30, 2021. The condensed balance sheet at June 30, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements. Going Concern As of March 31, 2021, the Company has a cumulative deficit of $41,780 and working capital deficit of $26,803. The Company had a net loss of $34,187 for the nine months ended March 31, 2020. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. Because of these conditions, the Company will require additional working capital to develop business operations. Management’s plans are to raise additional working capital through the sale of debt and/or equity instruments as well as to generate revenues for other services. There are no assurances that the Company will be able to achieve the level of revenues adequate to generate sufficient cash flow from operations to support the Company’s working capital requirements. To the extent that funds generated are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, the Company may not continue its operations. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. As of the filing date, the Coronavirus (“COVID-19”) has caused significant volatility in global markets, including the market price of our inventory. The demand for our products and services has fluctuated and the ability of our customers to make payments for the products and services they purchased has been impacted. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2021 | |
Notes | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Cash and Equivalents Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, are cash and cash equivalents. Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposits and all highly liquid debt instruments with original maturities of three months or less. Inventory The value of the Company’s inventory was $10,722 and $45,122 as of March 31, 2021 and June 30, 2020, respectively. Inventory is carried at the lower of cost and estimated net realizable value, with cost being determined using the first-in, first-out (FIFO) method. The Company establishes reserves for estimated excess and obsolete inventory equal to the difference between the cost of inventory and estimated net realizable value of the inventory based on estimated reserve percentage, which considers historical usage, known trends, inventory age and market conditions. When the Company dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 3 for additional information. Lease Commitments The Company has no lease commitments. The Company leases a storage facility with terms of month to month for its products. Fair Value of Financial Instruments The Company recognized the fair value of financial instruments in accordance with FASB ASC 820, Fair Value Measurements and Disclosures, “Fair Value Measurements”, which provides a framework for measuring fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also expands disclosures about instruments measured at fair value and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices for identical assets and liabilities in active markets; Level 2 - Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Cash reported on the balance sheet are estimated by management to approximate fair market value due to their short-term nature. The Company has had no transfers between levels of its assets or liabilities as of March 31, 2021. Revenue Recognition The Company recognizes revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which consists of five steps to evaluating contracts with customers for revenue recognition: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation. Revenue recognition occurs at the time we satisfy a performance obligation to our customers, when control transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. We only record revenue when collectability is probable. The Company provides quality merchandise through our online store in the United States of America. Due to the COVID-19 pandemic, the Company is focusing on providing disposable face masks and KN-95 face masks at an affordable price. The customers order and pay the products through our online store, when the Company confirms the order and payment, the Company delivers the product through common carriers, at which point the Company recognizes the revenue, as this is when our performance obligation is satisfied. The Company records actual sales returns when the customers return the products. The transaction price has not been affected by returns as the Company has not had significant returns. As the date of filing, the Company has not recognized any convention services revenue. For the three and nine months ended March 31, 2021, the Company recognized $14,263 and $40,375 in revenue, respectively. Income Taxes The Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Company’s consolidated balance sheets in accordance with ASC 740, which established financial accounting and reporting standards for the effect of income taxes. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. Changes in the Company’s valuation allowance in a period are recorded through the income tax provision on the consolidated statements of operations. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under ASC 740-10, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC 740-10 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740-10, the Company recognized no material adjustment in the liability for unrecognized income tax benefits. Earnings per Share Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. As of March 31, 2021, there were 210,000,000 potentially dilutive shares that need to be considered as common share equivalents and because of the net loss, the effect of these potential common shares is anti-dilutive. Recent Accounting Pronouncements The Company does not expect the adoption of recently issued accounting pronouncements to have a potential impact on the Company’s results of operations, financial position or cash flow. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Stock Based Compensation Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share Based Payment Accounting The Company accounts for stock-based compensation based on the fair value of all option grants or stock issuances made to employees or directors on or after its implementation date (the beginning of fiscal 2006), as well as a portion of the fair value of each option and stock grant made to employees or directors prior to the implementation date that represents the unvested portion of these share-based awards as of such implementation date, to be recognized as an expense, as codified in ASC 718. The Company calculates stock option-based compensation by estimating the fair value of each option as of its date of grant using the Black-Scholes option pricing model. These amounts are expensed over the respective vesting periods of each award using the straight-line attribution method. Compensation expense is recognized only for those awards that are expected to vest, and as such, amounts have been reduced by estimated forfeitures. The Company has not issued any stock options or vested and non-vested stock grants to directors since inception. Debt with Conversion and Other Options Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity There are no other recent accounting pronouncements that are expected to have a material impact on the condensed financial statements. |
INVENTORY DISCLOSURE
INVENTORY DISCLOSURE | 9 Months Ended |
Mar. 31, 2021 | |
Notes | |
INVENTORY DISCLOSURE | NOTE 3 - INVENTORY The value of inventory was $10,722 and $45,122 as of March 31, 2021 and June 30, 2020, respectively, and consists of 100% of finished goods. Inventory reserves are established for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory on estimated reserve percentage, which consider historical usage, known trends, inventory age and market conditions. As of March 31, 2021 and June 30, 2020, inventory reserve was $1,892 and $6,446, respectively. March 31, 2021 June 30, 2020 Disposable Face Masks $ 5,160 $ 39,334 Disinfectant Wipes - 151 KN-95 Face Masks 7,454 12,083 Total inventory 12,614 51,568 Less: inventory reserve (1,892) (6,446) Inventory, net $ 10,722 $ 45,122 |
NOTES PAYABLE - RELATED PARTY D
NOTES PAYABLE - RELATED PARTY DISCLOSURE | 9 Months Ended |
Mar. 31, 2021 | |
Notes | |
NOTES PAYABLE - RELATED PARTY DISCLOSURE | NOTE 4 - NOTES PAYABLE - RELATED PARTY On April 27, 2020, the Company executed a promissory note with a related party for cash proceeds of $35,000. The note bears interest at 10% per annum and is due in two business days after demand for payment. As of March 31, 2021, the principal balance is $35,000 and accrued interest is $3,241. The interest expense for nine months ended March 31, 2021 was $1,603. On December 30, 2020, the Company executed a promissory note with a related party for cash proceeds of $30,000. The note bears interest at 10% per annum and is due in two business days after demand for payment. As of March 31, 2021, the principal balance is $30,000 and accrued interest is $748. |
CONVERTIBLE DEBT - RELATED PART
CONVERTIBLE DEBT - RELATED PARTY DISCLOSURE | 9 Months Ended |
Mar. 31, 2021 | |
Notes | |
CONVERTIBLE DEBT - RELATED PARTY DISCLOSURE | NOTE 5 - CONVERTIBLE DEBT - RELATED PARTY On April 20, 2020, the Company executed a convertible promissory note with a related party for cash proceeds of $10,000. The note bears interest at 10% per annum and is due in two business days after demand for payment. This note is convertible at $0.001 per common share and can be converted by Notice of Conversion. As of March 31, 2021, the principal balance is $10,000 and accrued interest is $945. The interest expense for the nine months ended March 31, 2021 was $751. |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) DISCLOSURE | 9 Months Ended |
Mar. 31, 2021 | |
Notes | |
STOCKHOLDERS' EQUITY (DEFICIT) DISCLOSURE | NOTE 6 - STOCKHOLDERS’ EQUITY (DEFICIT) The Company is authorized to issue 475,000,000 shares of its $0.0001 par value common stock and 25,000,000 shares of its $0.0001 par value preferred stock. The Series A convertible preferred stock have a liquidation preference of $0.10 per share, have super voting rights of 100 votes per share, and each share of Series A may be converted into 100 shares of common stock. Preferred Stock The Company has 2,000,000 and 2,000,000 shares of its $0.0001 par value preferred stock issued and outstanding as of March 31, 2021 and June 30, 2020, respectively. During the nine months ended March 31, 2021, there was no preferred stock issued. Common Stock The Company has 29,000,000 and 29,000,000 shares of its $0.0001 par value common stock issued and outstanding as of March 31, 2021 and June 30, 2020, respectively. On September 8, 2020, the Company received $1,500 from a related party for stock subscription receivable. As of March 31, 2021, the balance of stock subscription receivable was $0. During the nine months ended March 31, 2021, there was no common stock issued. |
COMMITMENTS AND CONTINGENCIES D
COMMITMENTS AND CONTINGENCIES DISCLOSURE | 9 Months Ended |
Mar. 31, 2021 | |
Notes | |
COMMITMENTS AND CONTINGENCIES DISCLOSURE | NOTE 7 - COMMITMENTS AND CONTINGENCIES As of March 31, 2021, the Company did not have any known commitments or contingencies. Legal matter contingencies The Company believes, based on current knowledge and after consultation with counsel, that it is not currently party to any material pending proceedings, individually or in the aggregate, the resolution of which would have a material effect on the Company. Provisions for losses are established in accordance with ASC 450, “Contingencies” when warranted. Once established, such provisions are adjusted when there is more information available of when an event occurs requiring a change. |
RELATED PARTY TRANSACTIONS DISC
RELATED PARTY TRANSACTIONS DISCLOSURE | 9 Months Ended |
Mar. 31, 2021 | |
Notes | |
RELATED PARTY TRANSACTIONS DISCLOSURE | NOTE 8 - RELATED PARTY TRANSACTIONS As of March 31, 2020 and June 30, 2020, the Company owes $22,635 and $26,529, respectively, to the Company’s officers, for the funding of its current operating expenses. The amount owed is unsecured, non-interest bearing, and due on demand. During the nine months period ended March 31, 2021, the Company officer paid $2,218 of expenses on behalf of the Company and demanded repayment of $10,238. The Company has two notes payable and a convertible note payable with the related party, see Note 4 and 5 for further discussion on accrued notes interest and accrued convertible note interest. |
SUBSEQUENT EVENTS DISCLOSURE
SUBSEQUENT EVENTS DISCLOSURE | 9 Months Ended |
Mar. 31, 2021 | |
Notes | |
SUBSEQUENT EVENTS DISCLOSURE | NOTE 9 - SUBSEQUENT EVENTS In accordance with ASC 855-10, the Company has analyzed its operations subsequent to March 31, 2021 to the date these financial statements were issued, and there were no other material subsequent events to disclose in these financial statements, except as noted. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates, Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Policies | |
Use of Estimates, Policy | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents, Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Policies | |
Cash and Cash Equivalents, Policy | Cash and Equivalents Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, are cash and cash equivalents. Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposits and all highly liquid debt instruments with original maturities of three months or less. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventory, Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Policies | |
Inventory, Policy | Inventory The value of the Company’s inventory was $10,722 and $45,122 as of March 31, 2021 and June 30, 2020, respectively. Inventory is carried at the lower of cost and estimated net realizable value, with cost being determined using the first-in, first-out (FIFO) method. The Company establishes reserves for estimated excess and obsolete inventory equal to the difference between the cost of inventory and estimated net realizable value of the inventory based on estimated reserve percentage, which considers historical usage, known trends, inventory age and market conditions. When the Company dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 3 for additional information. |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease Commitments, Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Policies | |
Lease Commitments, Policy | Lease Commitments The Company has no lease commitments. The Company leases a storage facility with terms of month to month for its products. |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair Value of Financial Instruments, Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Policies | |
Fair Value of Financial Instruments, Policy | Fair Value of Financial Instruments The Company recognized the fair value of financial instruments in accordance with FASB ASC 820, Fair Value Measurements and Disclosures, “Fair Value Measurements”, which provides a framework for measuring fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also expands disclosures about instruments measured at fair value and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices for identical assets and liabilities in active markets; Level 2 - Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Cash reported on the balance sheet are estimated by management to approximate fair market value due to their short-term nature. The Company has had no transfers between levels of its assets or liabilities as of March 31, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition, Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Policies | |
Revenue Recognition, Policy | Revenue Recognition The Company recognizes revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which consists of five steps to evaluating contracts with customers for revenue recognition: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation. Revenue recognition occurs at the time we satisfy a performance obligation to our customers, when control transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. We only record revenue when collectability is probable. The Company provides quality merchandise through our online store in the United States of America. Due to the COVID-19 pandemic, the Company is focusing on providing disposable face masks and KN-95 face masks at an affordable price. The customers order and pay the products through our online store, when the Company confirms the order and payment, the Company delivers the product through common carriers, at which point the Company recognizes the revenue, as this is when our performance obligation is satisfied. The Company records actual sales returns when the customers return the products. The transaction price has not been affected by returns as the Company has not had significant returns. As the date of filing, the Company has not recognized any convention services revenue. For the three and nine months ended March 31, 2021, the Company recognized $14,263 and $40,375 in revenue, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Income Tax, Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Policies | |
Income Tax, Policy | Income Taxes The Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Company’s consolidated balance sheets in accordance with ASC 740, which established financial accounting and reporting standards for the effect of income taxes. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. Changes in the Company’s valuation allowance in a period are recorded through the income tax provision on the consolidated statements of operations. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under ASC 740-10, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC 740-10 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740-10, the Company recognized no material adjustment in the liability for unrecognized income tax benefits. |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Earnings Per Share, Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Policies | |
Earnings Per Share, Policy | Earnings per Share Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. As of March 31, 2021, there were 210,000,000 potentially dilutive shares that need to be considered as common share equivalents and because of the net loss, the effect of these potential common shares is anti-dilutive. |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: New Accounting Pronouncements, Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Policies | |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements The Company does not expect the adoption of recently issued accounting pronouncements to have a potential impact on the Company’s results of operations, financial position or cash flow. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Stock Based Compensation Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share Based Payment Accounting The Company accounts for stock-based compensation based on the fair value of all option grants or stock issuances made to employees or directors on or after its implementation date (the beginning of fiscal 2006), as well as a portion of the fair value of each option and stock grant made to employees or directors prior to the implementation date that represents the unvested portion of these share-based awards as of such implementation date, to be recognized as an expense, as codified in ASC 718. The Company calculates stock option-based compensation by estimating the fair value of each option as of its date of grant using the Black-Scholes option pricing model. These amounts are expensed over the respective vesting periods of each award using the straight-line attribution method. Compensation expense is recognized only for those awards that are expected to vest, and as such, amounts have been reduced by estimated forfeitures. The Company has not issued any stock options or vested and non-vested stock grants to directors since inception. Debt with Conversion and Other Options Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity There are no other recent accounting pronouncements that are expected to have a material impact on the condensed financial statements. |
INVENTORY DISCLOSURE_ Schedule
INVENTORY DISCLOSURE: Schedule of Inventory, Current (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Inventory, Current | March 31, 2021 June 30, 2020 Disposable Face Masks $ 5,160 $ 39,334 Disinfectant Wipes - 151 KN-95 Face Masks 7,454 12,083 Total inventory 12,614 51,568 Less: inventory reserve (1,892) (6,446) Inventory, net $ 10,722 $ 45,122 |
BASIS OF PRESENTATION DISCLOS_2
BASIS OF PRESENTATION DISCLOSURE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | |
Details | |||
Accumulated deficit | $ 41,780 | $ 41,780 | $ 7,593 |
Working capital deficit | 26,803 | 26,803 | |
Net loss | $ 2,624 | $ 34,187 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventory, Policy (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Details | ||
Inventory, net | $ 10,722 | $ 45,122 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition, Policy (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Mar. 31, 2021 | |
Details | ||
Revenues | $ 14,263 | $ 40,375 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Earnings Per Share, Policy (Details) | 9 Months Ended |
Mar. 31, 2021shares | |
Details | |
Potentially dilutive shares | 210,000,000 |
INVENTORY DISCLOSURE (Details)
INVENTORY DISCLOSURE (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Details | ||
Inventory, net | $ 10,722 | $ 45,122 |
Inventory reserves | $ 1,892 | $ 6,446 |
INVENTORY DISCLOSURE_ Schedul_2
INVENTORY DISCLOSURE: Schedule of Inventory, Current (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Inventory, gross | $ 12,614 | $ 51,568 |
Inventory reserves | (1,892) | (6,446) |
Inventory, net | 10,722 | 45,122 |
Disposable Face Masks | ||
Inventory, gross | 5,160 | 39,334 |
Disinfectant Wipes | ||
Inventory, gross | 0 | 151 |
KN-95 Face Masks | ||
Inventory, gross | $ 7,454 | $ 12,083 |
NOTES PAYABLE - RELATED PARTY_2
NOTES PAYABLE - RELATED PARTY DISCLOSURE (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2020 | Mar. 31, 2021 | |
Proceeds from notes payable, related party | $ 35,000 | $ 30,000 |
Interest rate per annum | 10.00% | 10.00% |
Notes payable - related party | $ 35,000 | $ 65,000 |
April 27, 2020 Promissory Note | ||
Notes payable - related party | 35,000 | |
Accrued interest payable - related party | 3,241 | |
Interest expense | 1,603 | |
Dec 30, 2020 Promissory Note | ||
Notes payable - related party | 30,000 | |
Accrued interest payable - related party | $ 748 |
CONVERTIBLE DEBT - RELATED PA_2
CONVERTIBLE DEBT - RELATED PARTY DISCLOSURE (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2020 | Mar. 31, 2021 | |
Proceeds from convertible promissory note, related party | $ 10,000 | |
Interest rate per annum | 10.00% | 10.00% |
Conversion price | $ 0.001 | |
Convertible debt - related party | $ 10,000 | $ 10,000 |
April 20, 2020 Convertible Note | ||
Accrued interest payable - related party | 945 | |
Interest expense | $ 751 |
STOCKHOLDERS' EQUITY (DEFICIT_2
STOCKHOLDERS' EQUITY (DEFICIT) DISCLOSURE (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Details | ||
Common stock shares authorized | 475,000,000 | 475,000,000 |
Common stock par value | $ 0.0001 | $ 0.0001 |
Preferred stock shares authorized | 25,000,000 | 25,000,000 |
Preferred stock par value | $ 0.0001 | $ 0.0001 |
Preferred stock liquidation preference | $ 0.10 | |
Amount of common stock that each preferred can be converted to | 100 | |
Preferred stock shares issued | 2,000,000 | 2,000,000 |
Common stock shares issued | 29,000,000 | 29,000,000 |
Cash received in satisfaction of stock subscriptions receivable | $ 1,500 | |
Stock subscriptions receivable | $ 0 | $ 1,500 |
RELATED PARTY TRANSACTIONS DI_2
RELATED PARTY TRANSACTIONS DISCLOSURE (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Details | ||
Accounts payable and accrued expenses - related party | $ 22,635 | $ 26,529 |
Expenses paid on behalf of the company by related party | 2,218 | |
Repayment of amounts due to related party | $ 10,238 |