E-Smart 10-K 12 Dec 24 2024 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Aug. 31, 2024	Dec. 12, 2024
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Aug. 31, 2024
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--08-31
File Number	333-275161
Registrant Name	E-SMART CORP.
Entity Central Index Key	0001995920
Tax Identification Number	35-2810816
Incorporation State Country Code	NV
address	7311 Oxford Ave
Address City	Philadelphia
Address State	PA
Address Postal Zip Code	19111
City Area Code	1620
Local Phone Number	3079197
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Filer Category	Non-accelerated Filer
Smaller reporting company	true
Emerging growth company	true
extended transition period	false
Shell Company	false
Public Float	$ 0
Common Stock Shares Outstanding		5,799,469
Document Financial Statement Error Correction [Flag]	false
Auditor Firm ID	6771
Auditor Name	Victor Mokuolu , CPA PLLC
auditor	Houston, Texas

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Aug. 31, 2024	Aug. 31, 2023
Current Asset
Cash	$ 546	$ 225
Total Current Assets	546	225
Other Assets
Intangible Assets	173,800	16,500
Accumulated Amortization	(24,858)
Total Other Assets	148,942	16,500
Total Assets	149,488	16,725
Current Liabilities
Accounts Payable		1,500
Total Current Liabilities		1,500
Long-Term Liabilities
Director Loan	180,297	11,704
Total Long-Term Liabilities	180,297	11,704
Total Liabilities	180,297	13,204
Stockholders’ Equity / (Deficit)
Common stock, par value $0.001; 45,000,000 shares authorized,  4,500,000 and 4,500,000 shares issued and outstanding	4,500	4,500
Additional Paid-in Capital	6,905
Retained Deficit	(42,215)	(979)
Total Stockholders’ Equity/ (Deficit)	(30,810)	3,521
Total Liabilities and Stockholders’ Equity/ (Deficit)	$ 149,488	$ 16,725

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Aug. 31, 2024	Aug. 31, 2023
Statement of Financial Position [Abstract]
Stated Value Per Share	$ 0.001	$ 0.001
CommonStockSharesAuthorized	45,000,000	45,000,000
CommonStockSharesIssued	4,500,000	4,500,000
CommonStockSharesOutstanding	4,500,000	4,500,000

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended	12 Months Ended
	Aug. 31, 2023	Aug. 31, 2024
Income Statement [Abstract]
REVENUES		$ 11,935
Discounts given		373
GROSS PROFIT		11,562
OPERATING EXPENSES
General and Administrative Expenses	990	45,925
TOTAL OPERATING EXPENSES	(990)	(45,925)
INCOME (LOSS) FROM OPERATIONS	(990)	(34,363)
Interest Income	11	32
Interest Expense		(6,905)
TOTAL OTHER INCOME (LOSS)	11	(6,873)
PROVISION FOR INCOME TAXES
NET PROFIT/LOSS	$ (979)	$ (41,236)
NET LOSS PER SHARE: BASIC AND DILUTED	$ 0	$ (0.01)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED	4,500,000	4,500,000

Statements of Stockholders' Equ

Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Jun. 06, 2023
Common shares issued for cash at $0.001	4,500			$ 4,500
?Common shares issued for cash at $0.001				4,500,000
Net loss			(979)	$ (979)
Ending balance, value at Aug. 31, 2023	4,500		(979)	$ 3,521
Balance, shares				4,500,000
Net loss			41,236	$ 41,236
Imputed Interest		6,905		6,905
Ending balance, value at Aug. 31, 2024	$ 4,500	$ 6,905	$ (42,215)	$ (30,810)
Balance, shares				4,500,000

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended	12 Months Ended
	Aug. 31, 2023	Aug. 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$ (979)	$ (41,236)
Accounts Payable	1,500	(1,500)
Imputed interest		6,905
CASH FLOWS PROVIDED BY / (USED IN) OPERATING ACTIVITIES	521	(10,973)
CASH FLOWS FROM INVESTING ACTIVITIES
Intangible Assets	(16,500)	(157,300)
CASH FLOWS USED IN INVESTING ACTIVITIES	(16,500)	(157,300)
CASH FLOWS FROM FINANCING ACTIVITIES
Director Loan	11,703	168,594
Capital Stock	4,500
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	16,203	168,594
NET CHANGE IN CASH	225	321
Cash, beginning of period		225
Cash, end of period	225	546
Interest paid
Income taxes paid

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	12 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
ORGANIZATION AND NATURE OF BUSINESS	Note 1 – ORGANIZATION AND NATURE OF BUSINESS E-SMART Corp. (“the Company”, “we”, “us” or “our”) was incorporated on June 6, 2023 under the laws of the State of Nevada United States of America. E-SMART Corp. is an innovative digital platform that aims to revolutionize the tattoo industry by efficiently connecting tattoo artists and clients. Our platform is designed to enhance efficiency, simplifying the client-artist interaction process to meet the requirements of both clients and tattoo studios. Our platform ensures a seamless experience for all users, providing a comprehensive database of skilled tattoo artists. Artists can easily showcase their exceptional work, and expand their client base. By including essential information and direct links to their social media profiles, we facilitate convenient access for users to view portfolios and initiate contact with their preferred artists. Masters interested in joining our platform shall contact us through our designated contacts and apply for inclusion in the database.

GOING CONCERN

GOING CONCERN	12 Months Ended
	Aug. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	Note 2 – GOING CONCERN The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company currently has losses and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern. Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it will be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. For the period from June 6, 2023, to August 31, 2023, the Company had no revenue, incurred a net loss of $979, and showed an accumulated deficit of $979. For the year ended August 31, 2024, the Company reported a gross profit of $11,562, incurred a net loss of $41,236, and showed an accumulated deficit of $42,215. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 3 – SUMMARY OF SIGNIFICANT 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 August 31. Use of Estimates The preparation of financial statements in conformity with US GAAP 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. F-6 Fair Value of Financial Instruments FASB ASC Topic 820, "Fair Value Measurement," The three levels are defined as follows: 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. 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. All income tax amounts reflect the use of the liability method under accounting for income taxes. Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes arising primarily from differences between financial and tax reporting purposes. Current year expense represents the amount of income taxes paid, payable or refundable for the period. Deferred income taxes, net of appropriate valuation allowances, are determined using the tax rates expected to be in effect when the taxes are actually paid. Valuation allowances are recorded against deferred tax assets when it is more likely than not that such assets will not be realized. When an uncertain tax position meets the more likely than not recognition threshold, the position is measured to determine the amount of benefit or expense to recognize in the financial statements. The Company’s income tax returns are subject to review and examination by federal, state and local governmental authorities. As of August 31, 2024, there is no year currently under examination with federal, state and local governmental authorities. To the extent penalties and interest are incurred through an examination, they would be included in the income tax section of the statement of operations. 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. F-7 Revenue Recognition Under Accounting Standards Codification No. 606, "Revenue from Contracts with Customers" ("ASC 606"), the Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. ASC 606 establishes a five-step model for revenue recognition: 1. Identify the contract with the customer: The Company enters into subscription agreements for its API services with customers. The Company offers the "AI Powered Tattoo Artist," a subscription-based API service that utilizes artificial intelligence to generate custom tattoo designs. The "AI Powered Tattoo Artist" API is available through both a free trial plan with limited features and paid subscription plans for different amount of API requests. 2. Identify the performance obligations in the contract: The Company's performance obligation is providing access to its API services for the subscription period. 3. Determine the transaction price: The transaction price is the fixed amount agreed upon in the subscription agreement, adjusted for any variable consideration such as discounts or rebates. 4. Allocate the transaction price to the performance obligations: The transaction price is allocated entirely to the performance obligation of API access. 5. Recognize revenue when (or as) the performance obligation is satisfied: Revenue is recognized over time as API access is provided, typically ratably over the subscription period. Provisions for discounts, rebates, estimated returns, and other adjustments are considered variable consideration and are estimated and accounted for in determining the transaction price. Revenue is recognized only to the extent it is probable that a significant reversal will not occur. Recent Accounting Pronouncements We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Aug. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	Note 4 – INTANGIBLE ASSETS Intangible assets relate to the website and API software, which the Company purchased on June 30, 2023. The Website was put on use on August 30, 2023 and amortization is expected to cover a period of 5 years. Amortization expense for the period ended August 31, 2023 was $0. As of August 31, 2023, the amount of intangible assets is $ 16,500 173,800 . Amortization expense for the period ended August 31, 2024 was $ Intangible assets amounts are as follows: Website Development Ai-Powered Tattoo Cost Calculator Api Total Estimated Useful Life (Years) 5 5 Total Cost of the Asset $ 81,000 $ 92,800 $ 173,800 Accumulated Depreciation at August 31, 2024 (13,658) (11,200) (24,858) Net Book Value at August 31, 2024 $ 67,342 $ 81,600 $ 148,942 Depreciation Expense for year ended August 31, 2024 $ 13,658 $ 11,200 $ 24,858 Depreciation Expense from June 6, 2023 (Inception) to August 31, 2023 $ - $ - $ - F-8

COMMON STOCK

COMMON STOCK	12 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
COMMON STOCK	Note 5 – COMMON STOCK The Company has 4,500,000, $0.001 par value shares of common stock authorized. There were 4,500,000 Voting Common Stock All shares of common stock have voting rights and are identical. All holders of shares of voting common stock shall at every meeting of the stockholders be entitled to one vote for each share of the capital stock held by such stockholder. Non-voting Common Stock All of the other terms of the Non-Voting Common Stock shall be identical to the Voting Common Stock, except for the right of first refusal that attaches to the Non-Voting Common Stock, as explained in the Company’s Bylaws.

RELATED PARTY

RELATED PARTY	12 Months Ended
	Aug. 31, 2024
Related Party Transactions [Abstract]
RELATED PARTY	Note 6 – RELATED PARTY Effective June 6, 2023, the Company entered a Loan Agreement with its CEO. The lender agreed to lend a total of $70,000 payable in applicable installments over the Term of the loan. The CEO agreed to an interest rate of 0% and a Term of 5 years. Effective November 14, 2023, the CEO agreed to increase maximum amount of the Loan to $220,000. The amount due under the Loan was $ 180,297 11,704

INCOME TAXES

INCOME TAXES	12 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
INCOME TAXES	Note 7 – INCOME TAXES The Company adopted the provisions of uncertain tax positions as addressed in ASC 740 “Income Taxes” (“ASC 740”). As a result of the implementation of ASC 740, the Company recognized no increase in the liability for unrecognized tax benefits. As of November 30, 2023, the Company had net operating loss carry forwards of approximately $979. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. The valuation allowance at August 31, 2023 was approximately $206. The net change in valuation allowance during year ended August 31, 2024 was $42,215. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The provision for Federal income tax As of August 31, 2024 As of August 31, 2023 Non-current deferred tax assets: Net operating loss carry forward $ (42,215) $ (979) Total deferred tax assets (8,865) (206) Valuation allowance $ 8,865 $ 206 Net deferred tax assets $ - $ - The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of August 31, 2024. All tax years since inception remain open for examination by taxing authorities. F-9 The related deferred tax benefit on the above unutilized tax losses has a full valuation allowance not recognized against it as there is no certainty of its realization. Management has evaluated tax positions in accordance with ASC 740 and has not identified any significant tax positions, other than those disclosed. The actual tax benefit at the expected rate of 21% differs from the expected tax benefit for the year ended August 31, 2024 as follows: Year ended August 31, 2024 Year ended August 31, 2023 Computed “expected” tax expense (benefit) $ 8,865 $ (206) Change in valuation allowance $ (8,865) $ 206 Actual tax expense (benefit) $ - $ -

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Aug. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Note 8 – COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company may become a party to litigation matters involving claims against it. From August 31, 2024 through December 6, 2024, there are no current matters that would have a material effect on the Company’s financial position or results of operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Aug. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Note 9 – SUBSEQUENT EVENTS

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
Basis of presentation	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 August 31.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with US GAAP 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. F-6
Fair Value of Financial Instruments	Fair Value of Financial Instruments FASB ASC Topic 820, "Fair Value Measurement," The three levels are defined as follows: 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.
Income Taxes	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. All income tax amounts reflect the use of the liability method under accounting for income taxes. Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes arising primarily from differences between financial and tax reporting purposes. Current year expense represents the amount of income taxes paid, payable or refundable for the period. Deferred income taxes, net of appropriate valuation allowances, are determined using the tax rates expected to be in effect when the taxes are actually paid. Valuation allowances are recorded against deferred tax assets when it is more likely than not that such assets will not be realized. When an uncertain tax position meets the more likely than not recognition threshold, the position is measured to determine the amount of benefit or expense to recognize in the financial statements. The Company’s income tax returns are subject to review and examination by federal, state and local governmental authorities. As of August 31, 2024, there is no year currently under examination with federal, state and local governmental authorities. To the extent penalties and interest are incurred through an examination, they would be included in the income tax section of the statement of operations.
Basic Income (Loss) Per Share	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. F-7
Revenue Recognition	Revenue Recognition Under Accounting Standards Codification No. 606, "Revenue from Contracts with Customers" ("ASC 606"), the Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. ASC 606 establishes a five-step model for revenue recognition: 1. Identify the contract with the customer: The Company enters into subscription agreements for its API services with customers. The Company offers the "AI Powered Tattoo Artist," a subscription-based API service that utilizes artificial intelligence to generate custom tattoo designs. The "AI Powered Tattoo Artist" API is available through both a free trial plan with limited features and paid subscription plans for different amount of API requests. 2. Identify the performance obligations in the contract: The Company's performance obligation is providing access to its API services for the subscription period. 3. Determine the transaction price: The transaction price is the fixed amount agreed upon in the subscription agreement, adjusted for any variable consideration such as discounts or rebates. 4. Allocate the transaction price to the performance obligations: The transaction price is allocated entirely to the performance obligation of API access. 5. Recognize revenue when (or as) the performance obligation is satisfied: Revenue is recognized over time as API access is provided, typically ratably over the subscription period. Provisions for discounts, rebates, estimated returns, and other adjustments are considered variable consideration and are estimated and accounted for in determining the transaction price. Revenue is recognized only to the extent it is probable that a significant reversal will not occur.
Recent Accounting Pronouncements	Recent Accounting Pronouncements

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Aug. 31, 2024
Accounting Policies [Abstract]
income tax	The provision for Federal income tax As of August 31, 2024 As of August 31, 2023 Non-current deferred tax assets: Net operating loss carry forward $ (42,215) $ (979) Total deferred tax assets (8,865) (206) Valuation allowance $ 8,865 $ 206 Net deferred tax assets $ - $ -

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	Oct. 31, 2024	Aug. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
intangible assets	$ 173,800	$ 16,500

COMMON STOCK (Details Narrative

COMMON STOCK (Details Narrative) - shares	Aug. 31, 2024	Aug. 31, 2023
Accounting Policies [Abstract]
common stock issued and outstanding	4,500,000	4,500,000

RELATED PARTY (Details Narrativ

RELATED PARTY (Details Narrative) - USD ($)	Aug. 31, 2024	Aug. 31, 2023
Related Party Transactions [Abstract]
loan	$ 180,297	$ 11,704

income tax (Details)

income tax (Details) - USD ($)	Aug. 31, 2024	Aug. 31, 2023
Accounting Policies [Abstract]
Net operating loss carry forward	$ (42,215)	$ (979)
Total deferred tax assets	(8,865)	(206)
Valuation allowance	8,865	206
Net deferred tax assets