| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company uses the accrual basis of accounting and
accounting principles. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles
in the United States of America and are presented in US dollars. The Financial Statements and related disclosures have been prepared pursuant
to the rules and regulations of the Securities and Exchange Commission (“SEC”). The results for the six months ended October 31, 2024,
are not necessarily indicative of the results of operations for the full year. These financial statements and related footnotes should
be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report
on Form 10-K for the year ended April 30, 2024, filed with the Securities and Exchange Commission. 9 MAG MAGNA CORP Notes to the Condensed Financial Statements For the six months ended October 31, 2024 and 2023 (Unaudited) Revenue The Company recognizes revenue in accordance with
Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The core principle of
ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that
core principle by applying the following steps: Step 1: Identify the contract with the customer. Step 2: Identify the performance obligations
in the contract. Step 3: Determine the transaction price. Step 4. Allocate the transaction price. Step 5: Recognize revenue when (or as)
the entity satisfies a performance obligation. The revenue for our Poultry Farming Consultancy and
API requests is acknowledged at a specific moment when the consulting services are completed and delivered in accordance with contractual
terms. The Company assumes no responsibility for any inability to fulfill obligations arising from circumstances beyond reasonable control.
We may request deposits from clients before delivering services upon order placement. If deposits are obtained before providing services,
the Company acknowledges deferred revenue until the service delivery is completed. Payment is typically received prior to the service
delivery. During the six months ended October 31, 2024, we have generated revenue from the sale of Poultry Farming Consultancy in
the amount of $13,739 and revenue from the sale of API requests in the amount of $7,595. During the six months ended October 31,
2023, we have generated revenue from the sale of Poultry Farming Consultancy in the amount of $1,400. The deferred income was $19,388
and $0 as of October 31, 2024 and April 30, 2024. The services were provided by the Company’s CEO. Use of Estimates The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Receivables Receivables are carried at net realizable value, representing
the outstanding balance less an allowance for doubtful accounts based on a review of all outstanding amounts. Management determines the
allowance for doubtful accounts by regularly evaluating individual receivables, and receivables are written off when deemed uncollectible.
Recoveries of receivables previously written off are recorded when received. We had an allowance for doubtful accounts of $0 as of October
31, 2024 and April 30, 2024. Advertising The Company recognizes advertising costs in accordance
with ASC 720-35, Advertising Costs (“ASC 720-35”), which requires that all advertising costs be expensed as incurred. Advertising
expense amounted to approximately $1,450 and $0 for the three and six months ended October 31, 2024 and 2023, respectively. Advertising
costs, which have been paid for but that have not been received, were $15,950 and $0 as of October 31, 2024 and April 30, 2024. 10 MAG MAGNA CORP Notes to the Condensed Financial Statements For the six months ended October 31, 2024 and 2023 (Unaudited) Foreign Currency The Company’s functional and reporting currency
is the U.S. dollar. Transactions may occur in foreign currencies, and management has adopted ASC 830, “Foreign Currency Translation Matters”.
Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet
date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the
date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation
or settlement of foreign currency-denominated transactions or balances are included in the statement. Intangible Asset The Company accounts for its intangible assets in
accordance with ASC Subtopic 350-40, “Internal-Use Software-Computer Software Developed or Obtained for Internal Use”, and
ASC Subtopic 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets”. ASC Subtopic 350-40 requires assets
to be recorded at the cost to develop the asset and requires an intangible asset to be amortized over its useful life and for the useful
life to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of
amortization. If the estimate of useful life is changed the remaining carrying amount of the intangible asset is amortized prospectively
over the revised remaining useful life. Intangible assets
were made up of the following at each balance sheet date:
Estimated Useful Life (years) October 31, 2024 April 30, 2024
Website 3 $ 9,400 $ 9,400
Software 5 75,100 9,000
84,500 18,400
Accumulated amortization (12,101 ) (5,228 )
Net book value $ 72,399 $ 13,172 During the three
months ended October 31, 2024 and 2023, we recognized $4,540 and $783 worth of amortization expense, respectively. During the six months
ended October 31, 2024 and 2023, we recognized $6,875 and $1,567 worth of amortization expense, respectively. The Company
expects to recognize amortization expense for the capitalized website development and software costs of future years as follows:
For the fiscal year ending: Amortization Expense
April 30, 2025 (remaining) $9,076
April 30, 2026 $16,958
April 30, 2027 $15,020
April 30, 2028 $15,020
April 30, 2029 $14,120
April 30, 2030 $2,205 11 MAG MAGNA CORP Notes to the Condensed Financial Statements For the six months ended October 31, 2024 and 2023 (Unaudited) Impairment of Long-Lived Assets The Company continually monitors events and changes
in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances
are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will
be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of
those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets.
Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. Cash and Cash Equivalents The Company considers all highly liquid investments
with remaining maturities at the date of purchase of three months or less to be cash equivalents. Fair Value of Financial Instruments ASC 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. Financial instruments consist of the Company’s
current assets, accounts payable and amounts due to a related party. The recorded values of all financial instruments approximate their
current fair values because of their nature and respective relatively short maturity dates or durations. Basic and Diluted Loss Per Share The Company computes earnings (loss) per share in
accordance with ASC 260-10-45 “Earnings per Share”, which requires the presentation of both basic and diluted earnings per
share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available
to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share
gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential
common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted earnings
(loss) per share are equal. 12 MAG MAGNA CORP Notes to the Condensed Financial Statements For the six months ended October 31, 2024 and 2023 (Unaudited) Income Taxes The Company accounts for income taxes under the asset
and liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement
and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to affect
taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. Financial Statement Reclassification Certain account balances from prior periods have been
reclassified in these condensed financial statements to conform to current period classifications. Recent Accounting Pronouncements The Company reviews new accounting standards as issued.
Management has not identified any new standards that it believes will have a significant impact on the Company’s financial statements. |
