ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
||Organization and Business:|
Acquisitions XVI, Inc. (the Company) was incorporated in the state of Delaware on October 21, 2011 for the purpose
of raising capital that is intended to be used in connection with its business plan which may include a possible merger, acquisition
or other business combination with an operating business.
July 23, 2012, Sole Comfort Shoes, Inc. (Purchaser) agreed to acquire 23,350,000 shares of the Companys common
stock par value $0.0001 for a price of $0.0001 per share. At the same time, Accelerated Venture Partners, LLC agreed to tender
3,500,000 of their 5,000,000 shares of the Companys common stock par value $0.0001 for cancellation. Following these transactions,
Sole Comfort Shoes, Inc. owned approximately 94% of the Companys 24,850,000 issued and outstanding shares of common stock
par value $0.0001 and the interest of Accelerated Venture Partners, LLC was reduced to approximately 6% of the total issued and
outstanding shares. Simultaneously with the share purchase, Timothy Neher resigned from the Companys Board of Directors
and Onkar Dhaliwal was simultaneously appointed to the Companys Board of Directors. Such action represents a change of control
of the Company. The Purchaser used their working capital to acquire the Shares. The Purchaser did not borrow any funds to acquire
Company is currently in the development stage. All activities of the Company to date relate to its organization, initial funding
and share issuances.
||Basis of Presentation|
accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles
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 amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
Company has been in the development stage since its formation on October 21, 2011. It has primarily engaged in raising
capital to carry out its business plan, as described above. The Company expects to continue to incur significant operating losses
and to generate negative cash flow from operating activities while it develops its operating plan. The Company's ability
to eliminate operating losses and to generate positive cash flows in the future will depend upon a variety of factors, many of
which it is unable to control. If the Company is unable to implement its business plan successfully, it may not be able
to eliminate operating losses, generate positive cash flow, or achieve or sustain profitability, which would materially adversely
affect its business, operations, and financial results, as well as its ability to make payments on any obligations it may incur.
||Cash and Cash Equivalents|
purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of
three months or less to be cash equivalents. The Company had $56 cash at September 30, 2012.
||Loss per Common Share|
loss per share is calculated using the weighted-average number of common shares outstanding during each reporting period. Diluted
per share includes potentially dilutive securities such as outstanding options and warrants, using various methods such as the
treasury stock or modified treasury stock method in the determination of dilutive shares outstanding during each reporting period. The
Company has incurred a loss during the current period, therefore any potentially dilutive shares are excluded, as they would be
anti-dilutive. The Company does not have any potentially dilutive instruments for this reporting period.
||Fair Value of Financial Instruments|
Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair
value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring
basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized
and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements
involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability
to access at the measurement date.
2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
3 inputs are unobservable inputs for the asset or liability.
carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments.
||Recent Accounting Prouncements|
May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in
U.S. GAAP and International Financial Reporting Standards (IFRS) of Fair Value Measurement Topic 820. ASU
2011-04 is intended to provide a consistent definition of fair value and improve the comparability of fair value measurements presented
and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRS. The amendments include those that
clarify the FASBs intent about the application of existing fair value measurement and disclosure requirements, as well as
those that change a particular principle or requirement for measuring fair value or for disclosing information about fair value
measurements. This update is effective for annual and interim periods beginning after December 15, 2011. The adoption
of this ASU did not have a material impact on our financial statements.
December 2011, the FASB issued ASU No. 2011-11: Balance Sheet (topic 210): Disclosures about Offsetting Assets and Liabilities,
which requires new disclosure requirements mandating that entities disclose both gross and net information about instruments and
transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement
similar to a master netting arrangement. In addition, the standard requires disclosure of collateral received and posted
in connection with master netting agreements or similar arrangements. This ASU is effective for annual reporting periods
beginning on or after January 1, 2013, and interim periods within those annual periods. Entities should provide the
disclosures required retrospectively for all comparative periods presented. We are currently evaluating the impact of
adopting ASU 2011-11 on the financial statements.
FASB issued Accounting Standards Update (ASU) No. 2012-02IntangiblesGoodwill and Other (Topic 350): Testing Indefinite-Lived
Intangible Assets for Impairment, on July 27, 2012, to simplify the testing for a drop in value of intangible assets such as
trademarks, patents, and distribution rights. The amended standard reduces the cost of accounting for indefinite-lived intangible
assets, especially in cases where the likelihood of impairment is low. The changes permit businesses and other organizations to
first use subjective criteria to determine if an intangible asset has lost value. The amendments to U.S. GAAP will be effective
for fiscal years starting after September 15, 2012. Early adoption is permitted. The adoption of this ASU will not have a
material impact on our financial statements.
Other recent accounting pronouncements
issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the
United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Companys
present or future financial statements.