preparation of the Companys 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 and the reported amount of revenues and expenses
during the reporting period. Actual results could differ from those estimates. The Companys periodic filings with the Securities
and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could
affect the financial statements and future operations of the Company.
AND CASH EQUIVALENTS
and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than
three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are
subject to an insignificant risk of loss in value. The Company had $186,602 and $3,697 in cash and cash equivalents as of June
30, 2012 and June 30, 2011, respectively.
intangible assets have been capitalized as per SC 350-35 General Intangibles Other than Goodwill.
In July, 2010, the Company entered into an assignment agreement with its Director, whereby the Companys Director assigned
to the Company all title, right, and interest in and to the Lighted Ratcheting Wrench invention in exchange for 30,000,000 shares
of the Companys common stock, par value $0.001 (see Note 3). During the year ended June 30, 2012, the Company elected to
suspend its pursuit of the patent protection of the Lighted Ratcheting Wrench. Accordingly, previously capitalized patent costs,
totaling $6,485 have been written off and recorded in sales, general and administrative expense, totaling $71,272 for the year
ended June 30, 2012.
intangible assets also consist of proprietary technology relating to the online procurement of certain goods, which technology
was acquired by the Company in June, 2012 in exchange for 3,456,960 restricted shares of common stock, par value $0.001, and 400,000
shares of preferred stock, par value $0.001 (see Note 3).
Company recognizes revenue under ASC 605 Revenue Recognition. Under ASC 605-45, the Company determined that
revenues should be recognized on the net revenue reporting method, where the Company only reports the net revenues from the drop
shipped transactions. Revenue is recognized when revenues have been collected and the product has been shipped FOB shipper.
Company accounts for income taxes under FASB ASC 740 "Income Taxes." Under the asset and liability method of
FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between
the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. 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. Under FASB ASC 740, the effect on deferred tax assets and liabilities of
a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain
deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.
VALUE OF FINANCIAL INSTRUMENTS
Company's financial instruments as defined by FASB ASC 825-10-50 include cash, trade accounts receivable, and accounts payable
and accrued expenses. All instruments are accounted for on a historical cost basis, which, due to the short maturity of these
financial instruments, approximates fair value at June 30, 2012, and June 30, 2011.
ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting
principles, and expands disclosures about fair value measurements. FASB ASC 820 establishes a three-tier fair value hierarchy,
which prioritizes the inputs used in measuring fair value as follows:
1. Observable inputs such as quoted prices in active markets;
2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.
Company does not have any assets or liabilities measured at fair value on a recurring basis at June 30, 2012 and June 30, 2011.
The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis
at June 30, 2012 and June 30, 2011.
ASC 718 "Compensation - Stock Compensation" prescribes accounting and reporting standards for all stock-based
payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation
rights, may be classified as either equity or liabilities. The Company should determine if a present obligation to settle the
share-based payment transaction in cash or other assets exists. A present obligation to settle in cash or other assets exists
if: (a) the option to settle by issuing equity instruments lacks commercial substance or (b) the present obligation
is implied because of an entity's past practices or stated policies. If a present obligation exists, the transaction should be
recognized as a liability; otherwise, the transaction should be recognized as equity.
Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of FASB
ASC 505-50 "Equity - Based Payments to Non-Employees." Measurement of share-based payment transactions with non-employees
shall be based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b)
the equity instruments issued. The fair value of the share-based payment transaction should be determined at the earlier of performance
commitment date or performance completion date.
INCOME OR (LOSS) PER SHARE OF COMMON STOCK
Company has adopted ASC 260 Earnings per Share, (EPS) which requires presentation of basic
and diluted EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation
of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation.
In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average
number of shares of common stock outstanding during the period.
Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.
OF CREDIT RISK
Companys financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash
equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents
with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution
may exceed any applicable government insurance limits. The Companys management plans to assess the financial strength and
credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures
ISSUED ACCOUNTING PRONOUNCEMENTS
Management believes recently issued accounting pronouncements
will have no impact on the financial statements of Delaine Corporation.