NOTE 2 - Summary of Significant
Interim financial information
The financial statements included herein, which
have not been audited pursuant to the rules and regulations of the Securities and Exchange Commission, reflect all adjustments
which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and cash
flows for the interim periods on a basis consistent with the annual audited statements. All such adjustments are of a normal recurring
nature. The results of operations for interim periods are not necessarily indicative of the results that may be expected for any
other interim period or for a full year. Certain information, accounting policies and footnote disclosures normally included in
financial statements prepared in conformity with accounting principles generally accepted in the United States of America have
been omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information
presented not misleading. These financial statements should be read in conjunction with our audited financial statements included
in our Form 10-K for the year ended June 30, 2011, filed with the Securities and Exchange Commission on October 6, 2011.
Basis of Presentation
These financial statements are presented on
the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America, whereby
revenues are recognized in the period earned and expenses when incurred. The Company also follows the accounting guidelines for
accounting for and reporting in Development Stage Enterprise in preparing its financial statements.
Statement of Cash Flows
For purposes of the statement of cash flows,
we consider all highly liquid investments (i.e., investments which, when purchased, have original maturities of three months or
less) to be cash equivalents.
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 reported amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.
Loss Per Ordinary Share
Basic loss per ordinary share is based on the
weighted effect of ordinary shares issued and outstanding, and is calculated by dividing net loss by the weighted average shares
outstanding during the period. Diluted loss per ordinary share is calculated by dividing net loss by the weighted average number
of ordinary shares used in the basic loss per share calculation plus the number of ordinary shares that would be issued assuming
exercise or conversion of all potentially dilutive ordinary shares outstanding. The Company does not present diluted earnings per
share for years in which it incurred net losses as the effect is antidilutive.
At December 31, 2011 and June 30, 2011, there were no potentially
dilutive ordinary shares outstanding.
Transatlantic Acquisition Corporation
was registered as an Exempted Company in the Cayman Islands, and therefore, is not subject to Cayman Islands income taxes for
20 years from the Date of Inception. While the Company has no intention of conducting any business activities in the
United States, the Company would be subject to United States income taxes based on such activities that would occur in the
The Company accounts for income taxes using
the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial
reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect
when the differences are expected to reverse. In assessing the realization of deferred tax assets, management considers whether
it is likely that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets
is dependent upon the Company attaining future taxable income during periods in which those temporary differences become deductible.
Fair Value of Financial Instruments
Our financial instruments consist of accounts
payable and payables to an affiliate. We believe the fair value of our payables reflects their carrying amounts.
The fair value of the Companys financial instruments reflects the amounts that
the Company estimates to receive in connection with the sale of an asset or paid in connection with the transfer of a liability
in an orderly transaction between market participants at the measurement date (exit price). The guidance also established a fair
value hierarchy that prioritizes the use of inputs used in valuation techniques into the following three levels:
Level 1 quoted prices in active markets for identical assets and liabilities.
Level 2 observable inputs other than quoted prices in active markets
for identical assets and liabilities.
Level 3 unobservable inputs.
As of December 31, 2011 and June 30, 2011,
the Company did not have financial assets or liabilities that would require measurement on a recurring basis based on this guidance.
Recently Issued Accounting
Accounting standards that have been issued
or proposed by the Financial Accounting Standards Board or other standards-setting bodies are not expected to have a material impact
on the Companys financial position, results of operations and cash flows.