Notes to Financial Statements
(Unaudited)
Note 1 - Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited interim consolidated
financial statements of Sunrise Holdings Limited have been prepared in accordance with accounting principles generally accepted
in the United States ("US GAAP") and the rules of the Securities and Exchange Commission, and should be read
in conjunction with Sunrise's audited 2013 annual financial statements and notes thereto filed with the SEC on form 10-K. In the
opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial
position and the result of operations for the interim periods presented have been reflected herein. The results of operations for
interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements,
which would substantially duplicate the disclosure required in Sunrise's 2013 annual financial statements have been omitted.
The Company's fiscal year end is September 30.
Use of Estimates
The preparation of financial statements
in conformity with U.S. 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. The Company regularly evaluates estimates
and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions
on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs
and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially
and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results,
future results of operations will be affected.
Interim Financial Statements
These interim unaudited financial statements
have been prepared on the same basis as the annual financial statements and in the opinion of management, reflect all adjustments,
which include only normal recurring adjustments, necessary to present fairly the Company's financial position, results of operations
and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results
expected for a full year or for any future period.
Cash and Cash Equivalents
For purposes of the statement of cash
flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash
equivalents. As of March 31, 2014, there were no cash equivalents.
Income Taxes
The Company has adopted Accounting Standards
Codification subtopic 740-10, Income Taxes ("ASC 740-10") which requires the recognition of deferred tax liabilities
and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns.
Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and
tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary
differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant.
There was no current or deferred income tax expense or benefits
for the periods ending March 31, 2014 and September 30, 2013.
Basic and Diluted Net Loss per Share
The Company computes net loss per share
in accordance with ASC 260,
Earnings per Share
. ASC 260 requires presentation of both basic and diluted earnings per share
("EPS") on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders
(numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all
dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock
using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number
of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares
if their effect is anti dilutive. As at December 31, 2013, the Company had no potentially dilutive shares.
Impairment of Long Lived Assets
The Company has adopted Accounting Standards
Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets
and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long lived assets for impairment
annually or more often if events and circumstances warrant. Events relating to recoverability may include significant
unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results
over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash
flows. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of
future discounted cash flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires
assets to be disposed of be reported at the lower of the carrying amount or the fair value less costs to sell.
Financial Instruments
Pursuant to ASC 820, Fair Value Measurements
and Disclosures and ASC 825, Financial Instruments, an entity is required to maximize the use of observable inputs and minimize
the use of unobservable inputs when measuring fair value. ASC 820 and 825 establishes a fair value hierarchy based on the level
of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within
the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 and
825 prioritizes the inputs into three levels that may be used to measure fair value:
Level 1
Level 1 applies to assets or liabilities
for which there are quoted prices in active markets for identical assets or liabilities.
Level 2
Level 2 applies to assets or liabilities
for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar
assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume
or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can
be derived principally from, or corroborated by, observable market data.
Level 3
Level 3 applies to assets or liabilities
for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value
of the assets or liabilities.
The Company's financial instruments
consist principally of cash, and amounts due to related parties. Pursuant to ASC 820 and 825, the fair value of our cash is determined
based on Level 1 inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values
of all of our other financial instruments approximate their current fair values because of their nature and respective maturity
dates or durations.
Recent Accounting Pronouncements
In July 2013, the Financial Accounting
Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-11: Presentation of an Unrecognized Tax Benefit When a
Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The new guidance requires that unrecognized
tax benefits be presented on a net basis with the deferred tax assets for such carryforwards. This new guidance is effective for
fiscal years and interim periods within those years beginning after December 15, 2013. We do not expect the adoption of the new
provisions to have a material impact on our financial condition or results of operations.
In February 2013, FASB issued ASU No.
2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to
improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially
excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive
income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive
income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in
the financial statements under U.S. GAAP. The new amendments will require an organization to:
Present (either on the face of the statement
where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified
out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified
to net income in its entirety in the same reporting period; and
Cross-reference to other disclosures
currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified
directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified
out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related
amounts) instead of directly to income or expense.
The amendments apply to all public and
private companies that report items of other comprehensive income. Public companies are required to comply with these amendments
for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15,
2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact
on our financial position or results of operations.
In January 2013, the FASB issued ASU
No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies
which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11.
The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed
unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope
of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while
still giving financial statement users sufficient information to analyze the most significant presentation differences between
financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in
this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected
to have a material impact on our financial position or results of operations.
Note 2 - Going Concern
Sunrise's financial statements have
been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments
in the normal course of business for the foreseeable future. Since inception, the Company has accumulated losses aggregating to
$225,530 and has insufficient working capital to meet operating needs for the next twelve months as of March 31, 2014, all of which
raise substantial doubt about Sunrise's ability to continue as a going concern.
Note 3 - Related Party Transactions
For the six months ended March 31, 2014,
an officer of the Company advanced $6,000 to the Company to pay for the general and administrative expenses. These advances are
unsecured, non-interest bearing and have no fixed terms of repayment.
Note 4 - Subsequent Events
There have been no reportable subsequent events through the
date of issuance of this report.
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