NOTES
TO THE FINANCIAL STATEMENTS
FEBRUARY
28, 2018
NOTE
1 - ORGANIZATION AND NATURE OF BUSINESS
TOUCAN
INTERACTIVE Corp. was incorporated under the laws of the State of Nevada on January 28, 2014. It was initially set up as a company
in the business of providing credit information options on all major banks located in Costa Rica, Canada, United States and other
countries located in North, Central and South America. On April 22, 2016, the Company experienced a change in control and ceased
operations as a provider of credit option services; and changed the address of its principal executive offices to 25 E. Foothill
Blvd., Arcadia, California 91006. The Company currently serves as a vehicle to investigate and, if such investigation warrants,
acquire a target company or business seeking the perceived advantages of being a publicly held corporation.
NOTE
2 – BASIS OF PRESENTATION
Basis
of Presentation
The
accompanying audited financial statements of the Company have been prepared in accordance with accounting principles generally
accepted in the United States of America (“GAAP” accounting), the rules and regulations of the Securities and Exchange
Commission (the “SEC”) for financial reporting, and are presented in US dollars. In the opinion of management, all
adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial position,
results of operations and cash flows as of February 28, 2018 presented herein have been reflected in these financial statements
and the notes thereto.
Accounting
Basis
The
Company uses the accrual basis of GAAP accounting. The Company has adopted a February 28 fiscal year end.
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 $39,720 of cash as of February 28, 2018.
Fair
Value of Financial Instruments
The
Company’s financial instruments consist of cash and cash equivalents and amounts due to related parties. 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
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.
Use
of Estimates
The
preparation of financial statements in conformity with GAAP accounting 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.
Revenue
Recognition
The
Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.
StockBased
Compensation
Stockbased
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.
Basic
Income (Loss) Per Share
Basic
income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted
average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net
income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted
weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt
or equity. There are no such common stock equivalents outstanding as of February 28, 2018.
Recent
Accounting Pronouncements
The
Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s
results of operations, financial position or cash flow.
NOTE
3 – GOING CONCERN
The
financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets
and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses resulting
in an accumulated deficit of $70,061 as of February 28, 2018 and further losses are anticipated in the development of its business
raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going
concern is dependent upon the Company generating profitable operations in the future and, or, to obtain the necessary financing
to meet its obligations and repay its liabilities arising from normal business operations when they come due. In November 2017,
the controlling stockholder advanced $50,000 to the Company to demonstrate its continued support to finance the Company’s
ongoing operation. These financials do not include any adjustments relating to the recoverability and reclassification of recorded
asset amounts, or amounts and classifications of liabilities that might result from this uncertainty.
NOTE
4 – ADVANCES FROM RELATED PARTIES
Advances
from related parties for the periods ended February 28, 2018 and February 28, 2017 were $76,738 and $19,033, respectively.
NOTE
5 – CAPITAL STOCK
The
Company has 75,000,000, $0.001 par value shares of common stock authorized.
On
February 6, 2014, the Company issued 4,000,000 shares of common stock for cash proceeds of $4,000 at $0.001 per share.
From
October 3, 2014 to November 24, 2014 the company issued 1,100,000 shares of common stock for cash proceeds of $22,000 at $0.02
per share.
On
April 22, 2016, the Company issued 6,000,000 shares of common stock for cash proceeds of $243,605 at $0.04 per share.
On
April 22, 2016, the Company repurchased 4,000,000 shares of common stock for cash payments of $240,605 at $0.06 per share.
There
were 7,100,000 shares of common stock issued and outstanding as of February 28, 2018.
NOTE
6 – COMMITMENTS AND CONTINGENCIES
The
Company neither owns nor leases any real or personal property. An officer has provided office services without charge. There is
no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly
are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved
in other business activities in the future.
NOTE
7 – INCOME TAXES
As
of February 28, 2018, the Company had net operating loss carry forwards of approximately $70,061 that may be available to reduce
future years’ taxable income in varying amounts through 2034. Future tax benefits which may arise as a result of these losses
have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly,
the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The
provision for Federal income tax consists of the following for the periods ended February 28, 2018 and February 28, 2017:
|
|
2018
|
|
|
2017
|
|
Federal income tax benefit attributable to:
|
|
|
|
|
|
|
|
|
Current Operations
|
|
$
|
1,847
|
|
|
$
|
7,212
|
|
Less: valuation allowance
|
|
|
(1,847
|
)
|
|
|
(7,212
|
)
|
Net provision for Federal income taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
The
cumulative tax effect at the expected rate of 21% of significant items comprising our net deferred tax amount is as follows
as of February 28, 2018 and February 28, 2017:
|
|
2018
|
|
|
2017
|
|
Deferred tax asset attributable to:
|
|
|
|
|
|
|
|
|
Net operating loss carryover
|
|
$
|
14,713
|
|
|
$
|
12,866
|
|
Less: valuation allowance
|
|
|
(14,713
|
)
|
|
|
(12,866
|
)
|
Net deferred tax asset
|
|
$
|
-
|
|
|
$
|
-
|
|
Due
to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $70,061for
Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss
carry forwards may be limited as to use in future years.
NOTE
8 – SUBSEQUENT EVENTS
In
accordance with SFAS 165 (ASC 855-10), the Company has analyzed its operations subsequent to February 28, 2018 to the date these
financial statements were available to be issued as of December 13, 2018, and has determined that it does not have any material
subsequent events to disclose in these financial statements.