Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - Solo International, IncFinancial_Report.xls
10-K - 10-K - Solo International, Incform10k.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR6.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR7.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR2.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR9.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR1.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR3.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR4.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR15.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR12.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR32.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR33.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR31.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR24.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR19.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR23.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR25.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR17.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR18.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR16.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR22.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR11.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR30.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR14.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR13.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR28.htm
EX-31.2 - CERTIFICATION - Solo International, Incex312.htm
EX-32.1 - CERTIFICATION - Solo International, Incex321.htm
EX-31.1 - CERTIFICATION - Solo International, Incex311.htm
EX-10.05 - AMENDED OPTION AGREEMENT BY AND BETWEEN 9252-4768 QUEBEC INC. AND 9228-6202 QUEBEC INC - Solo International, Incex1005.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR5.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR26.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR34.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR27.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR20.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR21.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR10.htm
XML - IDEA: XBRL DOCUMENT - Solo International, IncR29.htm
EX-23.1 - CONSENT LETTER OF PLS CPA, A PROFESSIONAL CORPORATION - Solo International, Incex231.htm
v2.4.0.6
Summary of Significant Accounting Policies
12 Months Ended
Sep. 30, 2012
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for consolidated financial information and pursuant to the rules and regulations of the SEC. Accordingly; they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. However, management believes that the disclosures made are adequate to make the information not misleading. Management has evaluated subsequent events through the date the financial statements were issued.

 

Going Concern

The consolidated financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses since Inception resulting in an accumulated deficit of $604,827 as of September 30, 2012 and further losses are anticipated in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans as may be negotiated and/or private placement of common stock. These financials do not include any adjustments relating to the recoverability and reclassification of recorded asset amounts, or amounts and classifications of liabilities that might result from this uncertainty.

 

Cash and Cash equivalents

The Company considers all highly liquid debt instruments purchased with a maturity date of three months or less to be cash equivalents.

 

Use of Estimates and Assumptions

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 during the period. Actual results could differ from those estimates.

 

Foreign Currency Translation

The Company's functional currency and its reporting currency is the United States dollar.

 

Fair Value of Financial Instruments

The carrying value of cash and accounts payable and accrued liabilities approximates their fair value because of the short maturity of these instruments. Unless otherwise noted, it is management’s opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

 

Income Taxes

The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

Basic and Diluted Loss Per Share

The Company computes loss per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. Diluted loss per share is the same as basic loss per share for the fiscal year ended September 30, 2012 and 2011. We incurred losses during these periods and the effects of the additional securities would be anti-dilutive.

 

Stock-based Compensation

The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

 

Mineral Property Costs

Mineral exploration and development costs are accounted for using the successful efforts method of accounting.

 

Property acquisition costs - Mineral property acquisition costs are capitalized as mineral exploration properties. Upon achievement of all conditions necessary for reserves to be classified as proved, the associated acquisition costs are reclassified to proven properties

 

Exploration costs - Geological and geophysical costs and the costs of carrying and retaining undeveloped properties are expensed as incurred.

 

Impairment of Mineral Properties

Unproven mineral properties are assessed at each reporting period for impairment of value, and a loss is recognized at the time of the impairment by providing an impairment allowance. An asset would be impaired if the undiscounted cash flows were less than its carrying value. Impairments are measured by the amount by which the carrying value exceeds its fair value. Because the Company uses the successful efforts method, the Company assesses its properties individually for impairment, instead of on an aggregate pool of costs. Impairment of unproven properties is based on the facts and circumstances surrounding each lease and is recognized based on management’s evaluation. Management’s evaluation follows a two-step process where (1) recoverability of the carrying value of the asset is reviewed to determine if there is sufficient value recoverable to support the capitalized value at the report date; and, (2) if assets fail the recoverability test, impairment testing is conducted, including the evaluation of various criteria such as: prior history of successful operations; production currently in place and/or future projected cash flows (if any); reserve reports or evaluations from which management can prepare future cash flow analyses; the Company’s ability to monetize the asset(s) under evaluation; and, Management’s intent regarding future development.

 

During the fiscal year ended September 30, 2012, the Company recognized an impairment charge in respect of its mineral property option agreement of $ $225,000 (2011-$0).

 

Beneficial Conversion Feature

From time to time, the Company may issue convertible notes that may have conversion prices that create an embedded beneficial conversion feature pursuant to the Emerging Issues Task Force guidance on beneficial conversion features. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of any attached equity instruments, if any related equity instruments were granted with the debt. In accordance with this guidance, the intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discounts amortized to interest expense over the life of the note using the effective interest method.