SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
| Basis of accounting | The financial statements of the Company have been prepared on the accrual basis of accounting, which conforms to accounting principles generally accepted in the United States of America (U.S. GAAP). |
| Use of estimates | The preparation of financial statements in conformity with U.S. GAAP 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. |
| Financial instruments | The Company’s balance sheets may include the following financial instruments: cash, related-party payables, and related-party note payables. The carrying amount of current assets and current liabilities approximate their fair value due to the relatively short period of time between the origination of these instruments and their expected realization. |
| Revenue recognition | As of June 30, 2026, and December 31, 2025, the Company had no revenue-producing activities. The Company recognizes revenue as it satisfies contractual performance obligations by transferring promised goods or services to its customers. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for those promised goods or services. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. |
| Earnings per share | Basic earnings per share are computed using the weighted average number of common shares outstanding at June 30, 2026 and December 31, 2025, respectively. Diluted earnings per share reflect the potential dilutive effects of common stock equivalents such as options, warrants and convertible securities. Given the historical and projected future losses of the Company, all potentially dilutive common stock equivalents are considered anti-dilutive. |
| Concentrations of credit risk | The Company maintains cash in bank accounts at high credit quality United States financial institutions. At various times during the six months ended June 30, 2026 and the year ended December 31, 2025, the Company may have had cash on deposit with financial institutions in excess of federal depository insurance limits. The Company has not experienced and does not anticipate any credit losses on these deposits. |
| Subsequent events | CTT Pharma received approval for a CIP Application from the United States Patent Office utilizing CTT’s technology for a Nicotine Strip.
CTT Pharma signed an LOI with a company in Europe to potentially form a partnership. It’s important to note that discussions are in the early stages and may or may not move towards a partnership.
The Company has evaluated subsequent events occurring through August 7, 2026, which is the date the financial statements were issued. |
| Cash and cash equivalents | For purposes of reporting cash flows, the Company considers all liquid instruments purchased with an original maturity of three months or less to be cash equivalents. There were no cash equivalents as of June 30, 2026 and December 31, 2025. |
| Related-party payables | Related-party payables consist of funds advanced from a related party to the Company on terms equivalent to those that prevail in arm’s length transactions. During the six months ended June 30, 2026, the company repaid funds which were advanced by Ryan Khouri, as working capital and as part of a management contract, on an as-needed basis. The ending payable to Ryan Khouri at June 30, 2026 was $21,949. |
| Related-party note payable | Related-party notes consist of uncollateralized obligations of funds advanced to the Company by a related party on terms equivalent to those that prevail in arm’s length transactions. There were no such advances during the first six months of 2026 or 2025. The advances are planned to be repaid through the issuance of common restricted shares and are not formalized nor interest bearing. |
| Share-based compensation | The Company, from time to time, may issue stock options, warrants and restricted stock as compensation to employees, directors, officers and affiliates, as well as to acquire goods or services from third parties. ln all cases, the Company calculates share-based compensation using the Black-Scholes option pricing model and expenses awards based on fair value at the grant date, which in the case of third-party suppliers is the shorter of the period over which services are to be received or the vesting period, and for employees, directors, officers and affiliates is typically the vesting period. Share-based compensation is included in consulting fees on the income statements. |
| Advertising | Advertising costs are expensed as incurred and are included in operating expenses on the income statements. |
| Income taxes | The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires an asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. Deferred tax assets, if any, include tax loss and credit carryforwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
| Intangible assets | The Company’s intangible assets consist of trademarks and patents held across multiple countries. The patents are amortized over their useful lives, typically up to 20 years, which is the standard patent expiration period. The trademarks are amortized over their useful lives, typically up to 15 years. Costs associated with patents that have not yet received a grant number are typically recorded as deferred patent costs, and upon receipt of a grant number, are amortized. |