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 on establishing
the business and its planned principal operations have not commenced. All losses accumulated since inception have been
considered as part of the Companys exploration stage activities.
financial statements have been prepared assuming that the Company will continue as a going concern. For the periods ended May
31, 2012 and 2011, the Company has had no operations. As of May 31, 2012, the Company has not emerged from the development stage.
In view of these matters, the Companys ability to continue as a going concern is dependent upon the Companys ability
to acquire an operating company and to achieve a level of profitability. The Company intends on financing its future development
activities and its working capital needs largely from the sale of public equity securities with some additional funding from other
traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working
capital requirements. The Company may not be sucessful in acquiring an operating Company or raise sufficient capital or secure
funds for its operating plan purposes. The financial statements of the Company do not include any adjustments relating to the
recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary
should the Company be unable to continue as a going concern.
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
Due to the limited level of operations, the Company has not
had to make material assumptions or estimates other than the assumption that the Company is a going concern.
Fiscal year end
The Company elected May 31 as its fiscal year ending date.
The Company considers all highly liquid investments with maturities
of three months or less at the time of purchase to be cash equivalents.
Basic and diluted net loss per share
Basic loss per share is computed using the weighted average
number of shares of common stock outstanding during each period. Diluted loss per share includes the dilutive effects of common
stock equivalents on an as if converted basis. Basic and diluted loss per share is the same due to the absence of
common stock equivalents.
Deferred tax assets and liabilities are recognized for the
estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which the temporary differences are expected to reverse.
We have net operating loss carryforwards available to reduce
future taxable income. Future tax benefits for these net operating loss carryforwards are recognized to the extent that realization
of these benefits is considered more likely than not. To the extent that we will not realize a future tax benefit, a valuation
allowance is established.
Net loss per common share
Net loss per common share is computed pursuant to section 260-10-45
of the FASB Accounting Standards Codification. 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 potentially dilutive shares outstanding as of May 31, 2012.
Recently issued accounting standards
Except for rules and interpretive
releases of the SEC under authority of federal securities laws and a limited number of grandfathered standards, the FASB Accounting
Standards Codification (ASC) is the sole source of authoritative GAAP literature recognized by the FASB
and applicable to the Company. Management has reviewed the aforementioned rules and releases and believes any effect will not have
a material impact on the Company's present or future financial statements.
Management does not believe
that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying