| Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES Unaudited Interim Financial Information The accompanying unaudited condensed
financial statements have been prepared in accordance with the SECs requirements for Form 10-Q and, in the opinion of management,
contain all adjustments, of a normal and recurring nature, which are necessary for a fair statement of (i) the condensed balance
sheets at September 30, 2016 and December 31, 2015; (ii) the condensed statements of operations for the three and nine month periods
ended September 30, 2016 and 2015; and (iii) the condensed statements of cash flows for the nine month periods ended September
30, 2016 and 2015. However, the accompanying unaudited condensed financial statements do not include all information and notes
required by accounting principles generally accepted in the United States of America (U.S. GAAP). The Condensed balance
sheet, included in this report, as of December 31, 2015 was derived from the 2015 audited financial statements, but does not include
all disclosures required by U.S. GAAP. These unaudited interim consolidated
financial statements should be read in conjunction with the consolidated financial statements and related notes included in our
Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on April 6, 2016. 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 amounts of revenues and expenses during the reported period. Actual results
could differ from those estimates. Cash Cash consists of deposits in one large
national bank. Advertising Costs Costs incurred for producing and communicating
advertising are expensed when incurred and included in selling general and administrative expenses. Advertising expense amounted
to $0 for the three and nine months ended September 30, 2016 and 2015, respectively. Property and Equipment Property and equipment are stated at
cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs, which do not
improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise
disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from
retirements or sales are credited or charged to income. Property and equipment are depreciated over the useful lives of the asset
using the straight line method. Depreciation is calculated using straight-line method over
the assets estimated useful lives as follows:
Furniture and fixtures Leasehold 7 years
improvements Vehicles and parts Lessor of lease term or life of related assets
Tools and equipment 3 years
5 years Depreciation for the three and nine
month periods ended September 30, 2016 totaled $9,785 and $29,585, respectively. Depreciation for the three and nine month periods
ended September 30, 2015 totaled $4,735 and $14,050, respectively. Impairment of Long-Lived Assets and Assets The Company reviews long-lived assets
to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may
not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an
impairment loss is recorded. No impairment losses were recognized for the three and nine months ended September 30, 2016 and 2015. Earnings Per Share Basic earnings per share are computed
by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period.
Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period
increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive
securities had been issued. For the three and nine months ended September 30, 2016, and 2015, the Company has incurred losses;
therefore the effect of any Common Stock equivalent would be anti- dilutive during those periods. There were no warrants, options,
or other stock equity outstanding as of September 30, 2016 and 2015. Concentration of Credit Risk Cash is mainly maintained by one highly
qualified institution in the United States. At various times such amounts are in excess of federally insured limits. Management
does not believe that the Company is subject to any unusual financial risk beyond the normal risk associated with commercial banking
relationships. The Company has not experienced any losses on our deposits of cash. Recent Accounting Pronouncement In May 2014, the FASB issued ASU No.
2014-09 Revenue from Contracts with Customers (Topic 606). Topic 606 supersedes the revenue recognition requirements
in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry
Topics of the Codification. In addition, the amendments create a new Subtopic 340-40, Other Assets and Deferred CostsContracts
with Customers. In summary, the core principle of Topic 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. For a public entity, the amendments in this Update are effective for annual reporting
periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted.
Management is currently evaluating the impact this guidance will have on Companys financial position and statement of operations. In June 2014, FASB issued amendment
2014-10 that eliminates certain financial reporting requirements for Development Stage Entities. This amendment is effective for
annual reporting periods beginning after December 15, 2014 and interim periods therein. Early application is permitted. The Company
adopted this amendment effective July 1, 2014 by removing the following disclosures: a) Presentation of inception-to-date information in the statement
of income, cash flows and shareholder equity. b) Labeling the financial statements as those of a development
stage entity. c) Description of the development stage activities in which
the entity is engaged. In August 2014, the Financial Accounting
Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15, Presentation of
Financial Statements Going Concern , Subtopic 205-40, Disclosure of Uncertainties about an Entitys
Ability to Continue as a Going Concern. The amendments in this ASU apply to all entities and require management to assess
an entitys ability to continue as a going concern by incorporating and expanding upon certain principles that are currently
in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an
evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of managements
plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of managements
plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment
for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in
this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter.
Early application is permitted. Management is currently evaluating the impact this guidance will have on Companys financial
position and results of operations. Income Taxes The Company accounts for income taxes
in accordance with ASC 740, Income Taxes. This statement requires an asset and liability approach for accounting for income taxes.
The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about
positions taken by an entity in its tax returns that might be uncertain. The accounting principles generally
accepted in the United States of America provides accounting and disclosure guidance about positions taken by an organization in
its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken
by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company files
income tax returns in the U.S. and various state jurisdictions. The Company is subject to examinations by U.S. Federal and State
tax authorities from 2012 (inception) to the present, generally for three years after they are filed. Foreign Currency Risk Any significant changes in foreign
currency exchange rates may have significant impact on Companys future financial statements upon fulfilling certain purchase
commitments in accordance to the license agreement disclosed in Note 5. |
