Nature of Business
Avante Systems, Inc. (Avante
and the Company) is a development stage company and was incorporated in Nevada on August 12, 2010. The Company was
formed for the purpose of developing, manufacturing, and selling a video camera integrated with a 3G mobile phone module specifically
for use in schools, child/eldercare facilities, and residences in Asia.
Development Stage Company
The accompanying financial statements have
been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage
company is one in which planned principal operations have not commenced or if its operations have commenced, and there has been
no significant revenues there from.
Basis of Presentation
The financial statements of the Company have
been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in
The Company uses the accrual basis of accounting
and accounting principles generally accepted in the United States of America (GAAP accounting). The Company
has adopted an October 31 fiscal year end.
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 the financial statements
and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
For 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.
Cash totaling $44,088 is being held in trust by a company owned by the sole officer of Avante Systems, Inc. as of October 31, 2013.
The ownership of the company holding the cash was transferred in full to Avante Systems, Inc. on January 28, 2014. All funds withdrawn
from that account were used for Avante expenses through October 31, 2013.
Fair Value of Financial Instruments
Avantes financial instruments consist
of cash and cash equivalents, prepaid expenses, accrued expenses and an amount due to an officer. The carrying amount of these
financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market
rates unless otherwise disclosed in these financial statements.
Income taxes are computed using the asset and
liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the
differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted
tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence,
are not expected to be realized.
The Company will recognize revenue when products are fully delivered
or services have been provided and collection is reasonably assured.
Loss Per Common Share
Basic loss per share is calculated using the
weighted-average number of common shares outstanding during each reporting period. Diluted loss 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 does not have any potentially
Stock-based compensation is accounted for at fair value in accordance
with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.
As of October 31, 2013, the Company has not issued any stock-based
payments to its employees.
Recent Accounting Pronouncements
Avante does not expect the adoption of recently
issued accounting pronouncements to have a significant impact on the Companys results of operations, financial position
or cash flow.