NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING
Development Stage Enterprise
The Company is a development stage company
as defined by ASC 915-10-05, Development Stage Entity. The Company is still devoting substantially all of its efforts
on establishing its business and its planned principal operations have not commenced. All losses accumulated, since inception,
have been considered as part of the Companys development stage activities.
Basis of Accounting
The Companys financial statements
are prepared using the accrual method of accounting. The Company has elected a December 31 fiscal year end.
Cash and Cash Equivalents
The Company considers all highly liquid
investments with maturity of three months or less when purchased to be cash equivalents.
The Company had no cash equivalents
as of September 30, 2012.
Use of Estimates and Assumptions
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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Stock Based Compensation
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 determines 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 entitys past
practices or stated policies. If a present obligation exists, the transaction is recognized as a liability; otherwise, the transaction
is recognized as equity.
The Company accounts for stock-based
compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 Equity - Based Payments
to Non-Employees. Measurement of share-based payment transactions with non-employees is 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 is determined at the earlier of performance commitment date or performance completion date.
The Company uses the asset and liability
method of accounting for income taxes in accordance with ASC 740-10, Accounting for Income Taxes. Under this method,
income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year; and, (ii) deferred tax
consequences of temporary differences resulting from matters that have been recognized in an entitys financial statements
or tax returns. 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 results of operations in the period that includes the enactment date. A valuation
allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence,
it is more likely than not that some portion or all of the deferred tax assets will not be realized.
ASC 740-10 prescribes a recognition
threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on
a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only
if it is more likely than not that the position is sustainable upon examination, based on its technical merits. The
tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely
of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability
(including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return
for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any,
are included as components of income tax expense and income taxes payable.
No provision was made for Federal income
Property and Equipment
Property and equipment are stated at cost and consist solely
of computer equipment. Depreciation of computer equipment is computed on the straight-line basis over 3 years, the estimated useful
life of the equipment.
Depreciation is computed for financial statement purposes
on a straight-line basis over estimated useful lives of the related assets.
For the three-month period ended September 30, 2012, we recognized
$477 in depreciation expense on our equipment.
For federal income tax purposes, depreciation
is computed under the modified accelerated cost recovery system. For audit purposes, depreciation is computed under the straight-line
method over the estimated useful lives of the equipment.
Advertising and promotion costs are
expensed as incurred. The Company has not incurred any such expenses since inception.
Earnings (Loss) per Share
The Companys basic earnings (loss)
per share are calculated by dividing its net income (loss) available to common stockholders by the weighted average number of common
shares outstanding for the period. The Companys dilutive earnings (loss) per share is calculated by dividing its net income
(loss) available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted
weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt
Fair Value of Financial Instruments
The Companys financial instruments
as defined by FASB ASC 825, Financial Instruments 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 September 30, 2012.
FASB ASC 820 Fair Value Measurements
and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with generally accepted
accounting principles, and expands disclosures about fair value measurements. ASC 820 establishes a three-tier fair value hierarchy,
which prioritizes the inputs used in measuring fair value as follows:
||Observable inputs such as quoted prices in active markets;|
||Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and|
||Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.|
The Company does not have any assets
or liabilities measured at fair value on a recurring basis at September 30, 2012. The Company did not have any fair value adjustments
for assets and liabilities measured at fair value on a nonrecurring basis during the periods ended September 30, 2012.
The Companys financial statements
are prepared under the accrual method of accounting. Revenues are recognized when evidence of an agreement exists, the price is
fixed or determinable, collectability is reasonably assured and goods have been delivered or services performed.
Research and Development
Research and development costs are expensed
as incurred; however, we did not incur any such costs.
Recent Accounting Pronouncements
In May 2011, the FASB issued guidance
to amend certain measurement and disclosure requirements related to fair value measurements to improve consistency with international
reporting standards. This guidance is effective prospectively for public entities for interim and annual reporting periods beginning
after December 15, 2011, with early adoption by public entities prohibited, and is applicable to the Companys fiscal quarter
beginning January 1, 2012. Adoption of this guidance did not have a material effect on our financial statements.
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 its financial position or results