| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation The
Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America (“GAAP”) BLUE
CHIP CAPITAL GROUP, INC. NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS Use
of Estimates The
preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ
from those estimates. Principals
of Consolidation The
consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). The consolidated
financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions
have been eliminated. Cash
and Cash Equivalents The
Company accounts for cash and cash equivalents under Accounting Standards Codification (“ASC”) 305, Cash and Cash Equivalents
(“ASC 305”) and considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Software
Application Software
consists of an internally developed information system for use by the Company to allow individuals to invest in various opportunities
as well as present individuals to provide opportunities for potential Investors and accounted for in accordance with ASC 350-40, Intangibles
– Goodwill and Other – Internal-Use Software (“ASC350-40”). Costs incurred up to and including the feasibility
stage of development as well as maintenance costs are expensed as incurred. As of May 31, 2024, the software is within the application
development phase and all costs are currently capitalized. Revenue
Recognition Revenue
for license fees is recognized upon the execution and closing of the contract for the amount of the contract. Contract fees are generally
due based upon various progress milestones. Revenue from contract payments are estimated and accrued as earned. Any adjustments between
actual contract payments and estimates are made to current operations in the period they are determined. Deferred
Income Taxes and Valuation Allowance The
Company accounts for income taxes under ASC 740, Income Taxes (“ASC 740”). Under the asset and liability method of ASC 740,
deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial
statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period
the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company
will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized at May 31, 2021. Based on
its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial
statements. The Company’s evaluation was performed for the tax years ended May 31, 2024, 2023, 2022 and 2021 for U.S. Federal Income
Tax and for the State of Nevada. The Company has net operating loss carry forwards in the amount of approximately $ 1,652,590 347,028 BLUE
CHIP CAPITAL GROUP, INC. NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS Financial
Instruments ASC
820, Fair Value Measurements and Disclosures (ASC “820”) defines fair value 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. ASC 820 also establishes a fair value hierarchy that distinguishes
between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2)
an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances
(unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level
3). The three levels of the fair value hierarchy are described below: Level
1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level
2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly,
including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities
in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates);
and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level
3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based
upon certain market assumptions and pertinent information available to management as of May 31, 2024. The respective carrying value of
certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. The
Company does not have any assets or liabilities measured at fair value on a recurring basis. Warrants On
June 29, 2021, the Company entered into a subscription agreement with a third party who agreed to purchase 1,440,000 45,000 378,000 126,000 .50 126,000 .75 126,000 .90 On
July 3, 2021, the Company entered into a subscription agreement with a third party who agreed to purchase 1,600,000 50,000 420,000 140,000 .50 140,000 .75 140,000 .90 BLUE
CHIP CAPITAL GROUP, INC. NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS During
the year ended May 31, 2024, the Company entered into several subscription agreements with a third parties who agreed to purchase 730,150 257,450 Thousand
six hundred ( 291,600 145,800 .65 145,800 .90 617,600 0.72 3.0 zero Long-lived
Assets Long-lived
assets such as property, equipment and identifiable intangibles are reviewed for impairment whenever facts and circumstances indicate
that the carrying value may not be recoverable. When required impairment losses on assets to be held and used are recognized based on
the fair value of the asset. The fair value is determined based on estimates of future cash flows, market value of similar assets, if
available, or independent appraisals, if required. If the carrying amount of the long-lived asset is not recoverable from its undiscounted
cash flows, an impairment loss is recognized for the difference between the carrying amount and fair value of the asset. When fair values
are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risk
associated with the recovery of the assets. We did not recognize any impairment losses for any periods presented. At May 31, 2024, and
May 31, 2023, the Company does not have any long-lived assets. Property
and Equipment The
Company follows ASC 360, Property, Plant, and Equipment, for its fixed assets. Equipment is stated at cost less accumulated depreciation.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets ( 3 Related
Parties The
Company follows ASC 850, Related Party Disclosures (ASC:850”) for the identification of related parties and disclosure of related
party transactions. At May 31, 2024, and May 31, 2023, the amounts due for related party transactions were $ 72,265 49,898 20,000 85,000 Stock-Based
Compensation ASC
718 Compensation – Stock Compensation, (“ASC 718”) prescribes accounting and reporting standards for all stock-based
payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation
rights, may be classified as either equity or liabilities. The Company determines if a present obligation to settle the share-based payment
transaction in cash or other assets exists. A present obligation to settle in cash or other assets exists if: (a) the option to settle
by issuing equity instruments lacks commercial substance or (b) the present obligation is implied because of an entity’s past practices
or stated policies. If a present obligation exists, the transaction should be recognized as a liability; otherwise, the transaction should
be recognized as equity. BLUE
CHIP CAPITAL GROUP, INC. NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS The
Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50
Equity – Based Payments to Non-Employees (“ASC 505-50”). Measurement of share-based payment transactions with non-employees
is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments
issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance
completion date. For stock-based transaction, as of May 31, 2024, the Company issued shares for services at par value since the stock
is has no established market price at this time. Recently
Issued Accounting Pronouncements We
have reviewed the issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have
effectiveness dates during the periods reported and in future periods. The Company has carefully Considered
the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles
will have a material impact on the corporation’s reported financial position or operations in the near term. The
applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration. Reclassification
of Prior Year Presentation Certain
prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect
on the reported results of prior operations. |
