Cover
Cover - shares | 6 Months Ended | |
Apr. 30, 2024 | Jun. 11, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | KHEOBA CORP. | |
Entity Central Index Key | 0001909770 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Apr. 30, 2024 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Entity Ex Transition Period | true | |
Entity Common Stock Shares Outstanding | 8,092,000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-263020 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 98-1636812 | |
Entity Address Address Line 1 | Petonal el Cerezo 8 | |
Entity Address Address Line 2 | 2A Los Realejos | |
Entity Address City Or Town | Tenerife | |
Entity Address Country | ES | |
Entity Address Postal Zip Code | 38410 | |
City Area Code | 702 | |
Local Phone Number | 833-9604 | |
Entity Interactive Data Current | Yes |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Apr. 30, 2024 | Oct. 31, 2023 |
BALANCE SHEETS | ||
Cash on hand | $ 1,385 | $ 16,778 |
ASSETS | ||
Prepaid expenses | 20,000 | 13,000 |
Total current assets | 21,385 | 29,778 |
Software Development Costs, net | 11,917 | 0 |
Website Development Costs, net | 2,333 | 2,917 |
Total Assets | 35,635 | 32,695 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 0 | 2,537 |
Deferred revenue | 0 | 3,300 |
Related party loan | 4,370 | 4,370 |
Total current liabilities | 4,370 | 10,207 |
Commitments and Contingencies | 0 | 0 |
Stockholders' Equity | ||
Common stock, $0.001 par value, 75,000,000 shares authorized; 8,092,000 and 7,295,000 shares issued and outstanding at par | 8,092 | 7,295 |
Additional paid in capital | 39,748 | 24,605 |
Accumulated deficit | (16,575) | (9,412) |
Total Stockholders' Equity | 31,265 | 22,488 |
Total Liabilities and Stockholders' Equity | $ 35,635 | $ 32,695 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 30, 2024 | Oct. 31, 2023 |
BALANCE SHEETS | ||
Common stock, par value | $ 0.001 | $ 0.0001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 8,092,000 | 7,295,000 |
Common stock, shares outstanding | 8,092,000 | 7,295,000 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
STATEMENTS OF OPERATIONS (Unaudited) | ||||
REVENUES | $ 0 | $ 9,400 | $ 10,300 | $ 9,400 |
OPERATING EXPENSES | ||||
General and Administrative Expenses | 10,862 | 1,004 | 17,463 | 1,004 |
TOTAL OPERATING EXPENSES | 10,862 | 1,004 | 17,463 | 1,004 |
NET INCOME (LOSS) FROM OPERATIONS | (10,862) | 8,396 | (7,163) | 8,396 |
PROVISION FOR INCOME TAXES | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | $ (10,862) | $ 8,396 | $ (7,163) | $ 8,396 |
NET LOSS PER SHARE: BASIC AND DILUTED | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 8,092,000 | 6,000,000 | 8,037,712 | 6,000,000 |
STATEMENTS OF STOCKHOLDERS EQUI
STATEMENTS OF STOCKHOLDERS EQUITY (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance, shares at Oct. 31, 2022 | 6,000,000 | |||
Balance, amount at Oct. 31, 2022 | $ (3,365) | $ 6,000 | $ 0 | $ (9,365) |
Net income (loss) | 0 | $ 0 | 0 | 0 |
Balance, shares at Jan. 31, 2023 | 6,000,000 | |||
Balance, amount at Jan. 31, 2023 | (3,365) | $ 6,000 | 0 | (9,365) |
Balance, shares at Oct. 31, 2022 | 6,000,000 | |||
Balance, amount at Oct. 31, 2022 | (3,365) | $ 6,000 | 0 | (9,365) |
Net income (loss) | 8,396 | |||
Balance, shares at Apr. 30, 2023 | 6,000,000 | |||
Balance, amount at Apr. 30, 2023 | 5,031 | $ 6,000 | 0 | (969) |
Balance, shares at Jan. 31, 2023 | 6,000,000 | |||
Balance, amount at Jan. 31, 2023 | (3,365) | $ 6,000 | 0 | (9,365) |
Net income (loss) | 8,396 | $ 0 | 0 | 8,396 |
Balance, shares at Apr. 30, 2023 | 6,000,000 | |||
Balance, amount at Apr. 30, 2023 | 5,031 | $ 6,000 | 0 | (969) |
Balance, shares at Oct. 31, 2023 | 7,295,000 | |||
Balance, amount at Oct. 31, 2023 | 22,488 | $ 7,295 | 24,605 | (9,412) |
Net income (loss) | 3,699 | $ 0 | 0 | 3,699 |
Common shares issued for cash, shares | 797,000 | |||
Common shares issued for cash, amount | 15,940 | $ 797 | 15,143 | |
Balance, shares at Jan. 31, 2024 | 8,092,000 | |||
Balance, amount at Jan. 31, 2024 | 42,127 | $ 8,092 | 39,748 | (5,713) |
Balance, shares at Oct. 31, 2023 | 7,295,000 | |||
Balance, amount at Oct. 31, 2023 | 22,488 | $ 7,295 | 24,605 | (9,412) |
Net income (loss) | (7,163) | |||
Balance, shares at Apr. 30, 2024 | 8,092,000 | |||
Balance, amount at Apr. 30, 2024 | 31,265 | $ 8,092 | 39,748 | (16,575) |
Balance, shares at Jan. 31, 2024 | 8,092,000 | |||
Balance, amount at Jan. 31, 2024 | 42,127 | $ 8,092 | 39,748 | (5,713) |
Net income (loss) | (10,862) | $ 0 | 0 | (10,862) |
Balance, shares at Apr. 30, 2024 | 8,092,000 | |||
Balance, amount at Apr. 30, 2024 | $ 31,265 | $ 8,092 | $ 39,748 | $ (16,575) |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (7,163) | $ 8,396 |
Adjustments to reconcile Net Income (Loss) to net cash provided by operations: | ||
Depreciation Expense | 1,667 | 0 |
Deferred Revenue | (3,300) | 0 |
Prepaid Expenses | (7,000) | 0 |
Accounts payable | (2,537) | (4,500) |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES | (18,333) | 3,896 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Software Development Costs | (13,000) | 0 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES | (13,000) | 0 |
Proceeds from the Sale of Common Stock | 15,940 | 0 |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 15,940 | 0 |
Net increase (decrease) in cash and equivalents | (15,393) | 3,896 |
Cash and equivalents at beginning of the period | 16,778 | 2,005 |
Cash and equivalents at end of the period | 1,385 | 5,901 |
Cash paid for: | ||
Interest | 0 | 0 |
Taxes | $ 0 | $ 0 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Apr. 30, 2024 | |
ORGANIZATION AND BASIS OF PRESENTATION | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Kheoba Corp. (referred as the “Company”, “we”, “our”) was Incorporated in the State of Nevada and established on July 27, 2021. The Company is developing in software development and travel industry. We are offering group adventures in Georgia, Caucasus mountains region and Tenerife, Spain. We intend to develop and provide an online platform for private and group adventures in Georgia, Caucasus mountains region and Tenerife, Spain. We have launched two websites: https://georgiahikewinetours.com/ and https://tenerifesurfwinetours.com/ to promote our activity. Additionally, we have launched our website (kheoba.com). It is tailored for perspective Kheoba guides. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Apr. 30, 2024 | |
GOING CONCERN | |
GOING CONCERN | NOTE 2 – GOING CONCERN The Company’s financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the financial statements, the Company had an accumulated deficit of $16,575 at April 30, 2024, revenue of $10,300 for the six-month ended April 30, 2024. The Company has Related party loan of $4,370 on a balance sheet at April 30, 2024. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company is attempting to commence operations and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support the Company’s daily operations. Management intends to raise additional funds by way of a private or public offering. While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
SUMMARY OF SIGNIFCANT ACCOUNTIN
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | 6 Months Ended |
Apr. 30, 2024 | |
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company’s year-end is October 31. The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. The results of operations for the six months ended April 30, 2024 are not necessarily indicative of the results to be expected for the year ending October 31, 2024. 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company owes $4,370 in Related Party Loan currently to director as per incorporation expenses of April 30, 2024. Website Development Costs The Company amortizes these costs using the straight-line method over a period of three years, which is the remaining estimated economic life of the costs. At the end of each reporting period, the Company writes down any excess of the unamortized balance over the net realizable value. In May 2022 the Company capitalized website development costs of $3,500 which will be amortized over three years. As of April 30, 2024, the total amount of website development cost was $3,500 and the amortization expense was $1,167. The Company expects to recognize amortization expense of $584 for the remainder of the fiscal year ending October 31, 2024, amortization expense of $1,167 for the fiscal year ending October 31, 2025, and amortization expense of $583 for the fiscal year ending October 31, 2026. During the Website Application and Infrastructure Development Stage, the Company relied on Codification 350-50-25-7, which states “Costs to obtain and register an internet domain shall be capitalized under Section 350-30-25”. Codification 350-50-25-6 states “Costs incurred to purchase software tools, or costs incurred during the application development stage for internally developed tools, shall be capitalized”. Based on the above, the Company website costs are capitalized. Software Development Costs The Company amortizes these costs using the straight-line method over a period of three years, which is the remaining estimated economic life of the costs. At the end of each reporting period, the Company writes down any excess of the unamortized balance over the net realizable value. In January 2024 the Company capitalized website development costs of $13,000 which will be amortized over three years. As of April 30, 2024, the total amount of website development cost was $13,000 and the amortization expense was $1,083. The Company expects to recognize amortization expense of $2,167 for the fiscal year ending October 31, 2024, amortization expense of $4,333 for the fiscal year ending October 31, 2025, amortization expense of $4,333 for the fiscal year ending October 31, 2026 and amortization expense of $1,084 for the fiscal year ending October 31, 2027. Fair Value of Financial Instruments AS topic 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: Level 1: defined as observable inputs such as quoted prices in active markets; Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of cash and the Company’s loan from shareholder approximates its fair value due to their short-term maturity. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Update (ASU) 2014-09, Revenue from contracts with customers (Topic 606). Revenue is recognized when a customer obtains control of promised goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the considerations that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. The Company derives revenues from selling tourism programs and certain modules of our Customer Relationship Management (CRM) Software (the "Software"). Tourism Programs We have sold six 'Caucasus Mountains Retreat' tourism programs to six sets of participants. Some of these participants opted for additional tours, including the 'Old Tbilisi One Day Tour' and the 'Old Tbilisi 3 Days Tour'. The 'Caucasus Mountains Retreat' is a 5-day guided tour priced at $550 per person. The 'Old Tbilisi One Day Tour' is available at $50 per person, while the 'Old Tbilisi 3 Days Tour' costs $200 per person. Our primary offering is the 'Caucasus Mountains Retreat' program. At our company, customers pay us for our guided tours, which are thoughtfully designed to include tailored sightseeing, immersive local experiences, and a range of outdoor activities. We have curated a network of trusted providers who specialize in offering high-quality meals, comfortable accommodation, and convenient transportation. Customers have the flexibility to select and pay for these services directly with the respective providers, in addition to the tour fee they pay to our company. The tour includes customized tourist attractions and viewpoints in the Caucasus Mountains region. The company can arrange comfortable accommodations for the duration of the tour, such as hotels or lodges situated in picturesque locations near the Caucasus Mountains. The company handles transportation logistics, including airport transfers and transportation between various destinations throughout the tour. As stated, the tour is guided, so the company provides experienced guides who are knowledgeable about the region's history, culture, and natural beauty. The company organizes suitable activities for participants, taking into account their preferences and fitness levels. The company can organize breakfast, lunch, and dinner at selected restaurants or provide packed meals for outdoor excursions, ensuring that participants have access to nourishing and delicious food. Our company provides customer support throughout the tour, addressing any concerns or issues that participants may have. In determining the transaction price, we utilize various sources of information, including historical data, market conditions, contractual terms, customer-specific factors, and estimates of variable consideration, where applicable. These considerations enable us to make a reasonable estimate of the transaction price based on the information available at the time of revenue recognition. The transaction price is contractual. No other party can recognize revenue or issue refunds because the Kheoba director is the only party involved. Based on fair market price we allocate the transaction price as follows: 20% is planning/arranging, 30% is assistance and 50% is guide service. The Company collects payment from customers before the service is provided. When deposits are collected before the service is provided, the Company recognizes deferred income until the customer signs the act of acceptance. The Our performance obligation to plan and arrange trip are met when we finished with planning and arranging for the customers. Our performance obligation to perform assistance during the tour if needed is met when the tour is over in case no assistance is requested. Our obligation to perform the guided tours is met when we finish the guided tour and indication that guided tour is finished is signed by customers the act of acceptance of our services. The company determines that the obligation for guided tour is satisfied when the customer signs the act of acceptance. We consider the signing of the act of acceptance as the point in time when promised services is transferred to the customer. As of April 30, 2024 and October 31, 2023, deferred revenue was $0 and $3,300, respectively. CRM Software We have CRM software comprising various components, modules, or blocks. Buyers might be interested in purchasing certain modules of our Software, to meet its business requirements. Task Report, Revenue Graph, My Deals by Milestones and Daily sales comparison modules were purchased on 10/26/2023. Following the guidelines of the relevant accounting standards (ASC 606), we recognize revenue when we satisfy a performance obligation. In our case, this occurs at the point of product delivery or service completion. The process begins with the issuance of an invoice to our client. This step signifies our formal request for payment for the services agreed upon or products to be delivered. Subsequent to issuing an invoice, we receive payment from the client. This step demonstrates the client's commitment and willingness to pay for our services or products. The pivotal moment in our revenue recognition process is the delivery of the product or the completion of the service to our client. This is when we have fulfilled our performance obligation. The delivery marks the transfer of control of the software product or service from our company to the client, which is the critical event for revenue recognition. For pricing our software, we start by understanding all costs involved (both direct and indirect) to ensure our pricing covers expenses and secures profitability. Additionally, we assess the value our software delivers to customers, focusing on the benefits and solutions it provides. We investigate competitor pricing and market expectations to inform our pricing strategy. We select a model that fits our product and market, such as flat rate, subscription, usage-based, or feature-based tiering. Segment Reporting The following table presents the Company’s revenue disaggregated based on revenue source for the three and six months ended April 30, 2024 and 2023: Three Months Ended Six Months Ended April 30 April 30 2024 2023 2024 2023 CRM Software $ - $ - $ 7,000 $ - Tourism Programs $ - $ 9,400 $ 3,300 $ 9,400 Total Revenue $ - $ 9,400 $ 10,300 $ 9,400 Revenue Concentration The following is a summary of customers that represent greater than 10% of total sales for the periods presented: Six months ended April 30, 2024 2023 Customer A 68 % - Customer B 32 % - Customer C - 23 % Customer D - 45 % Customer E - 32 % For the six months ended April 30, 2024, revenue concentration was low due to the fact that our customers are not regular customers. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. Basic Income (Loss) Per Share The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. As of April 30, 2024, there were no potentially dilutive debt or equity instruments issued or outstanding. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements. |
LOAN FROM DIRECTOR
LOAN FROM DIRECTOR | 6 Months Ended |
Apr. 30, 2024 | |
LOAN FROM DIRECTOR | |
LOAN FROM DIRECTOR | NOTE 4 – LOAN FROM DIRECTOR As of April 30, 2024, the Company owed $4,370 to the Company’s sole director, Gaga Gvenetadze for the Company’s working capital purposes. The amount is outstanding and payable upon request. |
COMMON STOCK
COMMON STOCK | 6 Months Ended |
Apr. 30, 2024 | |
COMMON STOCK | |
COMMON STOCK | NOTE 5 – COMMON STOCK The Company has 75,000,000, $0.001 par value shares of common stock authorized. On August 1, 2021 the Company issued 6,000,000 shares of common stock to a director for consideration of $6,000 at par value $0.001 per share. During September 2023 the Company issued 427,000 shares of common stock for cash proceeds of $8,540 at $0.02 per share. During October 2023 the Company issued 868,000 shares of common stock for cash proceeds of $17,360 at $0.02 per share. During November 2023 the Company issued 755,000 shares of common stock for cash proceeds of $15,100 at $0.02 per share. During December 2023 the Company issued 42,000 shares of common stock for cash proceeds of $840 at $0.02 per share. There were 8,092,000 shares of common stock issued and outstanding as of April 30, 2024. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Apr. 30, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 – COMMITMENTS AND CONTINGENCIES Our sole officer and director, Gaga Gvenetadze, has agreed to provide his own premise under office needs. He will not take any fee for these premises; it is for free use. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Apr. 30, 2024 | |
INCOME TAXES | |
INCOME TAXES | NOTE 7 – INCOME TAXES The components of the Company’s provision for federal income tax for the six months ended April 30, 2024 and the year ended October 31, 2023 consists of the following: April 30, 2024 October 31, 2023 Federal income tax benefit attributable to: Current operations $ 16,575 $ 9,412 Less: valuation allowance (16,575 ) (9,412 ) Net provision for federal income taxes $ - $ - The cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows: April 30, 2024 October 31, 2023 Deferred tax asset attributable to: Net operating loss carryover $ 3,481 $ 1,977 Less: valuation allowance (3,481 ) (1,977 ) Net deferred tax asset $ - $ - Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $16,575 as of April 30, 2024, for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Apr. 30, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 8 – SUBSEQUENT EVENTS In accordance with ASC 855-10 the Company has analyzed its operations subsequent to April 30, 2024 through June 11, 2024, and has determined that it does not have any material subsequent events to disclose in these financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Apr. 30, 2024 | |
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | |
Basis of Presentation | The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company’s year-end is October 31. The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. The results of operations for the six months ended April 30, 2024 are not necessarily indicative of the results to be expected for the year ending October 31, 2024. |
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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company owes $4,370 in Related Party Loan currently to director as per incorporation expenses of April 30, 2024. |
Website Development Costs | The Company amortizes these costs using the straight-line method over a period of three years, which is the remaining estimated economic life of the costs. At the end of each reporting period, the Company writes down any excess of the unamortized balance over the net realizable value. In May 2022 the Company capitalized website development costs of $3,500 which will be amortized over three years. As of April 30, 2024, the total amount of website development cost was $3,500 and the amortization expense was $1,167. The Company expects to recognize amortization expense of $584 for the remainder of the fiscal year ending October 31, 2024, amortization expense of $1,167 for the fiscal year ending October 31, 2025, and amortization expense of $583 for the fiscal year ending October 31, 2026. During the Website Application and Infrastructure Development Stage, the Company relied on Codification 350-50-25-7, which states “Costs to obtain and register an internet domain shall be capitalized under Section 350-30-25”. Codification 350-50-25-6 states “Costs incurred to purchase software tools, or costs incurred during the application development stage for internally developed tools, shall be capitalized”. Based on the above, the Company website costs are capitalized. |
Software Development Costs | The Company amortizes these costs using the straight-line method over a period of three years, which is the remaining estimated economic life of the costs. At the end of each reporting period, the Company writes down any excess of the unamortized balance over the net realizable value. In January 2024 the Company capitalized website development costs of $13,000 which will be amortized over three years. As of April 30, 2024, the total amount of website development cost was $13,000 and the amortization expense was $1,083. The Company expects to recognize amortization expense of $2,167 for the fiscal year ending October 31, 2024, amortization expense of $4,333 for the fiscal year ending October 31, 2025, amortization expense of $4,333 for the fiscal year ending October 31, 2026 and amortization expense of $1,084 for the fiscal year ending October 31, 2027. |
Fair Value of Financial Instruments | AS topic 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: Level 1: defined as observable inputs such as quoted prices in active markets; Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of cash and the Company’s loan from shareholder approximates its fair value due to their short-term maturity. |
Revenue Recognition | The Company recognizes revenue in accordance with Accounting Standards Update (ASU) 2014-09, Revenue from contracts with customers (Topic 606). Revenue is recognized when a customer obtains control of promised goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the considerations that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. The Company derives revenues from selling tourism programs and certain modules of our Customer Relationship Management (CRM) Software (the "Software"). Tourism Programs We have sold six 'Caucasus Mountains Retreat' tourism programs to six sets of participants. Some of these participants opted for additional tours, including the 'Old Tbilisi One Day Tour' and the 'Old Tbilisi 3 Days Tour'. The 'Caucasus Mountains Retreat' is a 5-day guided tour priced at $550 per person. The 'Old Tbilisi One Day Tour' is available at $50 per person, while the 'Old Tbilisi 3 Days Tour' costs $200 per person. Our primary offering is the 'Caucasus Mountains Retreat' program. At our company, customers pay us for our guided tours, which are thoughtfully designed to include tailored sightseeing, immersive local experiences, and a range of outdoor activities. We have curated a network of trusted providers who specialize in offering high-quality meals, comfortable accommodation, and convenient transportation. Customers have the flexibility to select and pay for these services directly with the respective providers, in addition to the tour fee they pay to our company. The tour includes customized tourist attractions and viewpoints in the Caucasus Mountains region. The company can arrange comfortable accommodations for the duration of the tour, such as hotels or lodges situated in picturesque locations near the Caucasus Mountains. The company handles transportation logistics, including airport transfers and transportation between various destinations throughout the tour. As stated, the tour is guided, so the company provides experienced guides who are knowledgeable about the region's history, culture, and natural beauty. The company organizes suitable activities for participants, taking into account their preferences and fitness levels. The company can organize breakfast, lunch, and dinner at selected restaurants or provide packed meals for outdoor excursions, ensuring that participants have access to nourishing and delicious food. Our company provides customer support throughout the tour, addressing any concerns or issues that participants may have. In determining the transaction price, we utilize various sources of information, including historical data, market conditions, contractual terms, customer-specific factors, and estimates of variable consideration, where applicable. These considerations enable us to make a reasonable estimate of the transaction price based on the information available at the time of revenue recognition. The transaction price is contractual. No other party can recognize revenue or issue refunds because the Kheoba director is the only party involved. Based on fair market price we allocate the transaction price as follows: 20% is planning/arranging, 30% is assistance and 50% is guide service. The Company collects payment from customers before the service is provided. When deposits are collected before the service is provided, the Company recognizes deferred income until the customer signs the act of acceptance. The Our performance obligation to plan and arrange trip are met when we finished with planning and arranging for the customers. Our performance obligation to perform assistance during the tour if needed is met when the tour is over in case no assistance is requested. Our obligation to perform the guided tours is met when we finish the guided tour and indication that guided tour is finished is signed by customers the act of acceptance of our services. The company determines that the obligation for guided tour is satisfied when the customer signs the act of acceptance. We consider the signing of the act of acceptance as the point in time when promised services is transferred to the customer. As of April 30, 2024 and October 31, 2023, deferred revenue was $0 and $3,300, respectively. CRM Software We have CRM software comprising various components, modules, or blocks. Buyers might be interested in purchasing certain modules of our Software, to meet its business requirements. Task Report, Revenue Graph, My Deals by Milestones and Daily sales comparison modules were purchased on 10/26/2023. Following the guidelines of the relevant accounting standards (ASC 606), we recognize revenue when we satisfy a performance obligation. In our case, this occurs at the point of product delivery or service completion. The process begins with the issuance of an invoice to our client. This step signifies our formal request for payment for the services agreed upon or products to be delivered. Subsequent to issuing an invoice, we receive payment from the client. This step demonstrates the client's commitment and willingness to pay for our services or products. The pivotal moment in our revenue recognition process is the delivery of the product or the completion of the service to our client. This is when we have fulfilled our performance obligation. The delivery marks the transfer of control of the software product or service from our company to the client, which is the critical event for revenue recognition. For pricing our software, we start by understanding all costs involved (both direct and indirect) to ensure our pricing covers expenses and secures profitability. Additionally, we assess the value our software delivers to customers, focusing on the benefits and solutions it provides. We investigate competitor pricing and market expectations to inform our pricing strategy. We select a model that fits our product and market, such as flat rate, subscription, usage-based, or feature-based tiering. |
Segment Reporting | The following table presents the Company’s revenue disaggregated based on revenue source for the three and six months ended April 30, 2024 and 2023: Three Months Ended Six Months Ended April 30 April 30 2024 2023 2024 2023 CRM Software $ - $ - $ 7,000 $ - Tourism Programs $ - $ 9,400 $ 3,300 $ 9,400 Total Revenue $ - $ 9,400 $ 10,300 $ 9,400 |
Revenue Concentration | The following is a summary of customers that represent greater than 10% of total sales for the periods presented: Six months ended April 30, 2024 2023 Customer A 68 % - Customer B 32 % - Customer C - 23 % Customer D - 45 % Customer E - 32 % For the six months ended April 30, 2024, revenue concentration was low due to the fact that our customers are not regular customers. |
Income Taxes | Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. |
Basic Income (Loss) Per Share | The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. As of April 30, 2024, there were no potentially dilutive debt or equity instruments issued or outstanding. |
Stock-Based Compensation | Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. |
Recent Accounting Pronouncements | Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Table) | 6 Months Ended |
Apr. 30, 2024 | |
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | |
Summary of disaggregation of revenue | Three Months Ended Six Months Ended April 30 April 30 2024 2023 2024 2023 CRM Software $ - $ - $ 7,000 $ - Tourism Programs $ - $ 9,400 $ 3,300 $ 9,400 Total Revenue $ - $ 9,400 $ 10,300 $ 9,400 |
Summary of revenue concentration | Six months ended April 30, 2024 2023 Customer A 68 % - Customer B 32 % - Customer C - 23 % Customer D - 45 % Customer E - 32 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Apr. 30, 2024 | |
INCOME TAXES | |
Schedule of provision for federal income tax | April 30, 2024 October 31, 2023 Federal income tax benefit attributable to: Current operations $ 16,575 $ 9,412 Less: valuation allowance (16,575 ) (9,412 ) Net provision for federal income taxes $ - $ - |
Schedule of deferred tax asset | April 30, 2024 October 31, 2023 Deferred tax asset attributable to: Net operating loss carryover $ 3,481 $ 1,977 Less: valuation allowance (3,481 ) (1,977 ) Net deferred tax asset $ - $ - |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | Oct. 31, 2023 | |
GOING CONCERN | |||||
Related party loan | $ 4,370 | $ 4,370 | $ 4,370 | ||
Accumulated deficit | (16,575) | (16,575) | $ (9,412) | ||
Revenues | $ 0 | $ 9,400 | $ 10,300 | $ 9,400 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Revenue | $ 0 | $ 9,400 | $ 10,300 | $ 9,400 |
CRM Software [Member] | ||||
Revenue | 0 | 0 | 7,000 | 0 |
Tourism Programs[Member] | ||||
Revenue | $ 0 | $ 9,400 | $ 3,300 | $ 9,400 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 6 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Customer A [Member] | ||
Revenue Concentration | 68% | 0% |
Customer B [Member] | ||
Revenue Concentration | 32% | 0% |
Customer C [Member] | ||
Revenue Concentration | 0% | 23% |
Customer D [Member] | ||
Revenue Concentration | 0% | 45% |
Customer E [Member] | ||
Revenue Concentration | 0% | 32% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | |||
Apr. 30, 2024 | Jan. 31, 2024 | Oct. 31, 2023 | May 31, 2022 | |
Deferred revenue | $ 0 | $ 3,300 | ||
Website Development Costs [Member] | ||||
Amortization expense for remainder of fiscal year | 584 | |||
2025 | 1,167 | |||
2026 | 583 | |||
Capitalized software development costs | 3,500 | $ 3,500 | ||
Amortization expense | 1,167 | |||
Software Development [Member] | ||||
Amortization expense for remainder of fiscal year | 1,083 | |||
2025 | 4,333 | |||
2026 | 4,333 | |||
Capitalized software development costs | 13,000 | $ 13,000 | ||
2024 | 2,167 | |||
2027 | 1,084 | |||
5 Day Guide Tour [Member] | ||||
Tour guided price per person | 550 | |||
Old Tbilisi One Day Tour [Member] | ||||
Tour guided price per person | 50 | |||
Old Tbilisi 3 Days Tour [Member] | ||||
Tour guided price per person | 200 | |||
Director [Member] | ||||
Related party loan | $ 4,370 |
LOAN FROM DIRECTOR (Details Nar
LOAN FROM DIRECTOR (Details Narrative) - USD ($) | Apr. 30, 2024 | Oct. 31, 2023 |
Related party loan | $ 4,370 | $ 4,370 |
Sole Director Gaga Gvenetadze [Member] | ||
Related party loan | $ 4,370 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | |||||
Aug. 01, 2021 | Dec. 31, 2023 | Nov. 30, 2023 | Oct. 31, 2023 | Sep. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 | |||||
Common Stock, Par Value | $ 0.0001 | $ 0.001 | |||||
Common stock, shares issued | 7,295,000 | 8,092,000 | |||||
Common stock, shares outstanding | 7,295,000 | 8,092,000 | |||||
Share price | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | |||
Stock issued during period, shares | 42,000 | 755,000 | 868,000 | 427,000 | |||
Proceeds from issuance of common stock | $ 840 | $ 15,100 | $ 17,360 | $ 8,540 | $ 15,940 | $ 0 | |
Director [Member] | |||||||
Share price | $ 0.001 | ||||||
Common shares issued for consideration, shares | 6,000,000 | ||||||
Common shares issued for consideration, value | $ 6,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2024 | Oct. 31, 2023 | |
Federal income tax benefit attributable to: | ||
Current operations | $ 16,575 | $ 9,412 |
Less: valuation allowance | (16,575) | (9,412) |
Net provision for federal income taxes | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Jan. 31, 2024 | Oct. 31, 2023 |
Deferred tax asset attributable to: | ||
Net operating loss carryover | $ 3,481 | $ 1,977 |
Less: valuation allowance | (3,481) | (1,977) |
Net deferred tax asset | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | Jan. 31, 2024 USD ($) |
INCOME TAXES | |
Net operating loss carry forwards | $ 16,575 |