SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
| 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 reporting period. Actual results could differ from those estimates.
Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern and the determination, described in note 9, of whether the extinguishment of debt with each creditor constituted a capital transaction with a related party or an extinguishment with an unrelated party. |
| Fair Value of Financial Instruments | ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2026. |
| Extinguishment of Debt | The Company accounts for the extinguishment of debt in accordance with ASC 470-50. When debt is extinguished with an unrelated party, the difference between the reacquisition price and the net carrying amount of the extinguished debt, including accrued interest, is recognized in the statement of operations as a gain or loss in the period of extinguishment and is identified as a separate item. When debt owed to a related party is forgiven by that party acting in its capacity as an owner, the transaction is, in substance, a capital transaction, and the carrying amount forgiven is credited to additional paid-in capital with no gain recognized in earnings. A liability is derecognized when the Company is legally released from its obligation in accordance with ASC 405-20-40-1. |
| Earnings per Share | ASC No. 260, “Earnings Per Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260.
Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding. For the three and six months ended June 30, 2026, the convertible notes described in note 8 were convertible into common stock at $0.04 per share and represented potentially dilutive common shares until their termination on June 10, 2026. Applying the if-converted method, diluted earnings per share for the three and six months ended June 30, 2026 was $0.01, which is the same as basic earnings per share. For the three and six months ended June 30, 2025, potentially dilutive shares were excluded from the computation of diluted loss per share because their effect would have been anti-dilutive. |
| Revenue Recognition | In May 2014, the FASB issued guidance on the recognition of Revenue from Contracts with Customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs. |
| Income Taxes | The Company follows the guideline under ASC Topic 740 Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Since the Company is in the developmental stage and has losses, no deferred tax asset or income taxes have been recorded in the financial statements.
There are no uncertain tax positions as at June 30, 2026. |
| Foreign Currency Translation and Balances | Transactions in foreign currencies are initially recorded by the Company at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date. Exchange gains or losses arising from translation are recognized in the statement of operation.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.
Foreign operations
The assets and liabilities of foreign operations are translated to U.S. dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated into U.S. dollars at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income in the accumulated other comprehensive income (loss).
Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative amount of foreign currency translation differences. |
| Recent Accounting Pronouncements | In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU enhances segment disclosure requirements, including new disclosures of significant segment expenses, management performance measures, and interim segment profit or loss. It also requires public companies to disclose the title and position of the chief operating decision maker (CODM) and clarify the basis of measurement used in evaluating segments.
ASU 2023-07 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted.
The Company adopted ASU 2023-07 in fiscal 2024. At present, the adoption has no material impact to the Company’s financial statements. The Company currently reports as a single operating segment. However, if in future periods the Company determines it operates more than one reportable segment, ASU 2023-07 requires expanded disclosures, including the nature of significant expenses and any internal management performance metrics. Management will continue to monitor its segment structure and evaluate the ASU’s disclosure requirements accordingly. |
| Recently Issued Accounting Guidance | The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the company’s financial statements. |