Basis of presentation
The Companys financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America (U.S. GAAP).
The unaudited financial statements have been prepared in accordance
with accounting principles generally accepted in the United States for interim financial information in accordance with Securities
and Exchange Commission (SEC) Regulation S-X rule 8-03. In the opinion of management, the unaudited financial statements
have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal
recurring adjustments, necessary to present fairly the Companys financial position, results of operations and cash flows. The
results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent
quarters or for the entire year ending October 31, 2011. The balance sheet at July 31, 2011 has been derived from the
reviewed financial statements at that date. Certain information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant
to the SECs rules and regulations. These unaudited financial statements should be read in conjunction
with our audited financial statements and notes thereto for the year ended October 31, 2010 as included in this Form 10-12G/A.
Development Stage Company
The Company is a development stage company as defined by section
810-10-20 of the FASB Accounting Standards Codification. The Company is still devoting substantially all of its efforts
to establish the business and its planned principal operations have not commenced.
Use of estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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 as
well as the reported amount of revenues and expenses during the reporting period. Actual results could differ from these
Due to the limited level of operations, the Company has not had
to make material assumptions or estimates.
The Company considers all highly liquid investments with maturities
of three months or less at the time of purchase to be cash equivalents.
Fair value of financial instruments
The Company follows paragraph 825-10-50-10 of FASB Accounting Standards
Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of FASB Accounting Standards
Codification (Paragraph 820-10-35-37) to measure the fair value of its financial instruments. Paragraph
820-10-35-37 also establishes a frame work for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. To
increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a
fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The
fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities
and the lowest priority to unobservable inputs to the valuation methodology.
The three (3) levels of fair value hierarchy defined by Paragraph
820-10-35-37 are described below:
Quoted market prices available in active markets for identical assets
or liabilities as of the reporting date.
Pricing inputs other than quoted prices in active markets included
in Level 1, which are either directly or indirectly observable as of the reporting date.
Pricing inputs that are generally unobservable inputs and not corroborated
by market data.
The Company does not have any assets or liabilities measured at
fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets
and liabilities measured at fair value at July 31, 2011, nor gains or losses reported in the statement of operations that are attributable
to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the periods
ended July 31, 2011 or 2010, or for the period from February 6, 2007 (inception) through July 31, 2011.
The Company follows Section 740-10-30 of the
FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future
tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax
assets and liabilities are provided based on the differences between the financial statement and tax bases of assets and liabilities
using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced
by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. 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 the Statements of Operations in the period that includes the enactment date.
The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (Section 740-10-25). Section
740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded
in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position
only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on
the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured
based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement.
Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting
in interim periods and requires increased disclosures. The Company had no liabilities for unrecognized income tax benefits according
to the provisions of Section 740-10-25.
Net loss per common share
Basic net loss per share is computed by dividing net loss by the
weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing
net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each
period. There were no common shares or potentially dilutive shares outstanding as of July 31, 2011.
Recently issued accounting standards
Management does not believe that any recently issued accounting
pronouncements, whether effective or if not effective, to be adopted, will have a material effect on the accompanying financial