Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.Financial_Report.xls
10-Q - NOVAGEN 10-Q - Novagen Ingenium Inc.novagen_10q-093012.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R6.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R8.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R2.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R22.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R29.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R28.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R30.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R25.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R31.htm
EX-31.2 - CERTIFICATION - Novagen Ingenium Inc.novagen_10q-ex3102.htm
EX-32.1 - CERTIFICATION - Novagen Ingenium Inc.novagen_10q-ex3201.htm
EX-31.1 - CERTIFICATION - Novagen Ingenium Inc.novagen_10q-ex3101.htm
EX-32.2 - CERTIFICATION - Novagen Ingenium Inc.novagen_10q-ex3202.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R5.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R7.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R3.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R4.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R1.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R11.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R14.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R12.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R24.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R26.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R23.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R20.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R21.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R19.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R18.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R27.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R10.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R16.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R15.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R17.htm
XML - IDEA: XBRL DOCUMENT - Novagen Ingenium Inc.R13.htm
v2.4.0.6
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Sep. 30, 2012
Summary Of Significant Accounting Policies  
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates that have been made using careful judgment. The financial statements have, in management’s opinion been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below:

 

Accounting Method

 

The Company’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America and reported in US Dollars.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles 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 for the reporting period. The Company reviews its estimates on an ongoing basis. The estimates were based on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from these estimates. The Company believes the judgments and estimates required in its accounting policies to be critical in the preparation of the Company’s financial statements.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. As at September 30, 2012 and December 31, 2011, there were no cash equivalents.

 

Property and Equipment

 

The Company has property and equipment being depreciated over the period between two to thirty-five years. Depreciation on property and equipment is provided on a straight line basis over their expected useful lives as follows:

 

Computer equipment 2 years straight line
Property improvements 10 to 35 years straight line
Plant & Equipment 7 years straight line
Motor Vehicles     7 years diminishing value
Office Furniture & Equipment 5 years straight line

 

Inventories

 

Inventories are measured at the lower of cost and net realizable value. The cost of manufactured products includes direct materials, direct labour and an appropriate portion of variable and fixed overheads. Overheads are applied on the basis of normal operating capacity. Costs are assigned on the basis of weighted average costs.

 

Concentration of Credit Risk

 

The Company places its cash and cash equivalents with high credit quality financial institutions in uninsured accounts.

 

Consolidation Policy

 

In January, March, June and September 2012, the Company incorporated three subsidiaries and acquired two wholly-owned subsidiaries, and as such, the consolidated financial statements include the accounts of Novagen Solar Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation.

 

Reclassifications

 

Certain financial statement amounts for the prior period have been reclassified to conform to the current period presentation. These reclassifications had no effect on the net loss or accumulated deficit as previously reported.

 

Foreign Currency Translations

 

Novagen maintains its accounting records in US Dollars. The Company’s subsidiaries are located and operating outside of the United States of America. They maintain their accounting records in Australian Dollars. For reporting purposes the Company reports its financial information in US Dollars.

 

Transactions in a currency other than the functional currency are measured in the respective functional currencies of the Company and its subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transaction dates. Exchange gains and losses are recorded in the statements of income and comprehensive income.

 

Assets and liabilities of the Company and its subsidiaries are translated into the U.S. dollars at exchange rates at the balance sheet date, equity accounts are translated at historical exchange rate and revenues and expenses are translated by using the average exchange rates. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statements of stockholders’ equity.

 

Fair Value of Financial Instruments

 

The Company's financial instruments as defined by Accounting Standards Codification (“ASC”) 825, "Disclosures about Fair Value of Financial Instruments," include accounts payable and accrued liabilities and notes payable. Fair values were assumed to approximate carrying value for these financial instruments, except where noted. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. The Company is operating outside the United States of America and has significant exposure to foreign currency risk due to the fluctuation of currency in which the Company operates and U.S. dollars.

 

Long-lived assets impairment

 

Long-lived assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets.

 

Management considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations (undiscounted and without interest charges). If impairment is deemed to exist, the assets will be written down to fair value. Fair value is generally determined using a discounted cash flow analysis.

 

Going Concern

 

These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America applicable to a going concern which assumes that the Company will realize its assets and discharge its liabilities in the normal course of business. As of December 31, 2011, the Company has incurred accumulated losses of $520,964 since inception and has not generated any revenue. In the first nine months of fiscal 2012 the Company had incurred a loss of $89,143. The future of the Company is dependent upon its ability to develop profitable sales and distribution operations. These factors create doubt as to the ability of the Company to continue as a going concern. Realization values may be substantially different from the carrying values as shown in these financial statements should the Company be unable to continue as a going concern. Management is in the process of identifying sources for additional financing, or will provide the necessary financial support, to fund the ongoing development of the Company's businesses.

 

Stock-Based Compensation

 

The Company adopted ASC 718, "Share-Based Payment", to account for its stock options and similar equity instruments issued. Accordingly, compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. ASC 718 requires excess tax benefits be reported as a financing cash inflow rather than as a reduction of taxes paid. The Company did not grant any stock options during the year ended December 31, 2011 or the nine months ended September 30, 2012.

 

Comprehensive Income

 

The Company adopted ASC 220, "Reporting Comprehensive Income", which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Statement of Stockholders' Equity and its Statements of Operations and Comprehensive Income. The Company’s comprehensive income consists of net earnings for the period and currency translation adjustments.

 

Income Taxes

 

The Company has adopted ASC 740, "Accounting for Income Taxes", which requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns using the liability method. Under this method, deferred tax liabilities and assets are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.

 

Basic and Diluted Loss Per Share

 

In accordance with ASC 260 – “Earnings Per Share”, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would be outstanding if the potential common shares had been issued and if the additional common shares were dilutive. At September 30 2011, the basic loss per share was equal to diluted loss per share as there were no dilutive instruments.

 

Business Combinations

 

ASC 805 applies the acquisition method of accounting for business combinations established in ASC 805 to all acquisitions where the acquirer gains a controlling interest, regardless of whether consideration was exchanged. ASC 805 establishes principles and requirements for how the acquirer: a) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree; b) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and c) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination.

 

Development Stage Enterprise

 

With the control change in December 2011, the Company entered into a new development stage prior to establishing profitable operations. During the development stage all equity transactions, operations and cash flows will be reported on a cumulative basis until sales are recognized in the normal course of the Company’s planned business. Losses accumulated in prior exploration stage and development stage activities are accumulated separately and reported on the balance sheet as a separate component of stockholders’ equity.

 

Fair Value Measurement and Disclosures

 

The Company adopted ASC 820 Fair Value Measurements and Disclosures (“ASC 820”). As defined in ASC 820, fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

 

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

 

Level 2: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly.

 

Level 3: Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

 

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

 

The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, payroll withholding payable, and notes payable. Pursuant to ASC 820, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

 

New Accounting Pronouncements

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations.