Summary of Significant Accounting Policies (Policies) |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Aug. 31, 2026 | |||||||
| Accounting Policies [Abstract] | |||||||
| Basis of presentation | Basis of presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company’s year end is August 31.
|
||||||
| Use of Estimates | 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.
|
||||||
| Foreign Currency | Foreign Currency
The Company’s functional and reporting currency is the U.S. dollar. Transactions denominated in currencies other than the U.S. dollar (principally the euro) are remeasured into U.S. dollars at the exchange rates in effect on the transaction dates, and monetary assets and liabilities denominated in foreign currencies are remeasured at period-end exchange rates. Foreign currency transaction gains and losses are included in the statements of operations.
Fair Value of Financial Instruments FASB ASC Topic 820, "Fair Value Measurement," defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standards apply to recurring and nonrecurring fair value measurements of financial and non-financial assets and liabilities. The Company determines the fair values of its assets and liabilities based on a fair value hierarchy that includes three levels of inputs that may be used to measure fair value.
F-7 The three levels are defined as follows:
|
||||||
| Cash | Cash and Cash Equivalents The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $601 and $6,825 of cash as August 31, 2026 and 2025, respectively.
|
||||||
| Prepaid Expenses | Prepaid Expenses
Prepaid expenses consist of amounts paid in advance for services and lease payments and are expensed on a straight-line basis over the related service periods. As of August 31, 2026 and 2025, prepaid expenses were $9,891 and $20,274, respectively. The August 31, 2026 balance consists of $6,875 of the OTCQB annual market fee for the period ending January 31, 2027 and $3,016 of prepaid server lease payments for the period ending October 23, 2026.
|
||||||
| Accounts Payable | Accounts Payable Accounts Payable discloses a liability to a creditor, carried on open account, usually for purchases of goods and services. As of August 31, 2026, the Company had accounts payable of $298.
|
||||||
| Intangible Assets and Impairment of Long-Lived Assets | Intangible Assets and Impairment of Long-Lived Assets Intangible assets consist of the Company’s website and AI Tattoo Idea Generator API software, which were acquired from a third party. Costs to acquire internal-use software and website development costs incurred during the application development stage are capitalized in accordance with ASC 350-40, Internal-Use Software, and ASC 350-50, Website Development Costs; costs incurred during the preliminary project and post-implementation/operating stages, including website maintenance are expensed as incurred. Capitalized costs are amortized on a straight-line basis over an estimated useful life of five years from the date the asset is placed in service. As of August 31, 2026, the Company had accumulated amortization of $94,378.
F-8 The Company reviews long-lived assets, including intangible assets subject to amortization, for impairment in accordance with ASC 360-10 whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability is assessed by comparing the carrying amount of the asset group with the undiscounted future cash flows expected to result from its use and eventual disposition. If the carrying amount is not recoverable, an impairment loss is recognized for the amount by which the carrying amount exceeds fair value. No impairment was recognized for the years ended August 31, 2026 and 2025.
|
||||||
| Income Taxes | Income Taxes
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. All income tax amounts reflect the use of the liability method under accounting for income taxes. Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes arising primarily from differences between financial and tax reporting purposes. Current year expense represents the amount of income taxes paid, payable or refundable for the period.
Deferred income taxes, net of appropriate valuation allowances, are determined using the tax rates expected to be in effect when the taxes are actually paid. Valuation allowances are recorded against deferred tax assets when it is more likely than not that such assets will not be realized. When an uncertain tax position meets the more likely than not recognition threshold, the position is measured to determine the amount of benefit or expense to recognize in the financial statements.
The Company’s income tax returns are subject to review and examination by federal, state and local governmental authorities. As of August 31, 2026, no tax year is under examination by federal, state or local governmental authorities. Because the Company is a U.S. corporation that is more than 25% owned by a foreign person, it must file IRS Form 5472 with its federal income tax return to report reportable transactions with its foreign related party, including the related party loans described in Note 6. The Company has filed its U.S. corporate income tax returns on Form 1120, together with the required Forms 5472, for each tax year since inception: the periods ended August 31, 2023, 2024 and 2025. The Company has not been assessed any penalties for these filings and has not accrued any amounts for penalties or interest. If penalties and interest are incurred as a result of an examination, they will be included in the income tax section of the statement of operations.
F-9 |
||||||
| Basic Income (Loss) Per Share |
The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (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.
|
||||||
| Revenue Recognition | Revenue Recognition
Under Accounting Standards Codification No. 606, "Revenue from Contracts with Customers" ("ASC 606"), the Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. ASC 606 establishes a five-step model for revenue recognition: 1. Identify the contract with the customer: The Company enters into subscription agreements for its API services with customers. The Company offers the "AI Powered Tattoo Artist API," a subscription-based API service that utilizes artificial intelligence to generate custom tattoo designs. The "AI Powered Tattoo Artist" API is available through both a free trial plan with limited features and paid monthly plans for different amounts of API requests. Customers may prepay several months at once. 2. Identify the performance obligations in the contract: The Company's performance obligation is providing access to its API services for the subscription period. 3. Determine the transaction price: The transaction price is the fixed amount agreed upon in the subscription agreement, adjusted for any variable consideration such as discounts or rebates. 4. Allocate the transaction price to the performance obligations: The transaction price is allocated entirely to the performance obligation of API access. 5. Recognize revenue when (or as) the performance obligation is satisfied: Revenue is recognized over time as API access is provided, typically ratably over the subscription period. Revenue is recognized regardless of the number of API requests used; unused requests expire at the end of each month. The Company also licenses copies of its API software to customers for their internal use for a fixed fee; revenue from these licenses is recognized at the point in time the software is delivered. During the years ended August 31, 2026 and 2025, the Company recorded revenue, net of discounts, of $42,870 and $29,247, respectively, consisting of subscription revenue of $36,870 and $17,192, respectively, and software license revenue of $6,000 and $12,055, respectively. F-10 Plans are payable in advance. Deferred revenue was $13,865 and $0 as of August 31, 2026 and 2025, respectively. The August 31, 2026 balance related to three customers those prepaid plans for up to three months and was recognized as revenue in the first quarter of fiscal 2027. Because all contracts have a duration of one year or less, the Company does not disclose remaining performance obligations, as permitted by ASC 606-10-50-14. The Company did not recognize accounts receivable as of August 31, 2026 or 2025. During the year ended August 31, 2026, three customers accounted for 31%, 19% and 14% of revenue. During the year ended August 31, 2025, five customers accounted for 21%, 21%, 13%, 10% and 10% of revenue.
|
||||||
| Cost of Revenue | Cost of Revenue Cost of revenue consists of costs directly attributable to providing access to the Company’s API services, comprising server lease costs and amortization of the website and API software. Website maintenance, marketing and other general costs are included in general and administrative expenses.
|
||||||
| Reclassifications | Reclassifications Certain prior-year amounts have been reclassified to conform to the current-year presentation. In fiscal 2026, the Company began presenting cost of revenue and gross profit (loss) in its statements of operations. Accordingly, for the year ended August 31, 2025, server lease costs of $17,384 and amortization of the website and API software of $34,760, totaling $52,144, previously included in general and administrative expenses, have been reclassified to cost of revenue. As a result, general and administrative expenses for fiscal 2025 decreased from $87,388 to $35,244, and a gross loss of $22,897 is presented. The reclassification had no effect on previously reported revenue, loss from operations, net loss, net loss per share, total assets, stockholders’ deficit or cash flows.
|
||||||
| Segment Reporting | Segment Reporting
The Company operates as a single operating and reportable segment, providing access to its AI-powered tattoo design API through subscriptions and, on occasion, software licenses. The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”), who evaluates performance and makes decisions about allocating resources on a consolidated basis. The CODM uses net loss, as reported in the statements of operations, to assess performance, monitor actual results against budget and evaluate funding needs. Accordingly, the CODM considers revenue, cost of revenue, general and administrative expenses and interest expense as reported in the statements of operations, and total assets as reported in the balance sheets. No additional expense or asset information that is supplemental to that disclosed in these financial statements is regularly provided to the CODM.
F-11 |
||||||
| Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently adopted The Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, retrospectively for the fiscal year ended August 31, 2026. The Company has a single reportable segment, and its Chief Executive Officer is the chief operating decision maker. The adoption affected disclosures only. Not yet adopted
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, requires disaggregated rate reconciliation information in percentages and amounts and disclosure of income taxes paid by jurisdiction. As an emerging growth company using the extended transition period, the Company will adopt ASU 2023-09 for the fiscal year ending August 31, 2027.
ASU 2024-03, Expense Disaggregation Disclosures (Subtopic 220-40), as clarified by ASU 2025-01, requires disaggregated disclosure of certain expenses included in each expense caption and is effective for the Company for the fiscal year ending August 31, 2028. ASU 2025-06, Internal-Use Software (Subtopic 350-40): Targeted Improvements, removes the software development project stages and revises the threshold for capitalizing software and website development costs. It is effective for the Company for the fiscal year ending August 31, 2029, with early adoption permitted.
The Company expects ASU 2023-09 and ASU 2024-03 to affect disclosures only and is evaluating the impact of ASU 2025-06 on future website and API development costs. Other recently issued pronouncements are not expected to have a material impact on the Company’s financial statements. |