Nevada
|
27-4592289
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
5540 Fifth Avenue #18, Pittsburgh, PA
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15232
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer o
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Smaller reporting company ý
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PART I
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Page
|
|
Item 1
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Financial Statements (Unaudited)
|
3 |
Item 2
|
Management’s Discussion and Analysis of Financial Condition and
Results of Operations
|
13 |
Item 3
|
Quantitative and Qualitative Disclosures About Market Risk
|
17 |
Item 4
|
Controls and Procedures
|
17 |
PART II
|
||
Item 1
|
Legal Proceedings
|
18 |
Item 1A
|
Risk Factors
|
18 |
Item 2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
18 |
Item 3
|
Defaults Upon Senior Securities
|
18 |
Item 4
|
Mine Safety Disclosures
|
18 |
Item 5
|
Other Information
|
18 |
Item 6
|
Exhibits
|
19 |
Signatures
|
20 |
Item 1
|
Financial Statements
|
June 30, 2013
|
December 31, 2012
|
|||||||
ASSETS
|
Unaudited
|
|||||||
Current assets
|
||||||||
Cash
|
$ | 1,464 | $ | 3,777 | ||||
Total current assets
|
1,464 | 3,777 | ||||||
Deposits
|
1,090 | 1,090 | ||||||
Property and equipment, net
|
4,667 | 5,528 | ||||||
Total noncurrent assets
|
5,757 | 6,618 | ||||||
Total assets
|
$ | 7,221 | $ | 10,395 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
Current liabilities
|
||||||||
Accounts payable and accrued liabilities
|
$ | 3,060 | $ | 4,974 | ||||
Note payable
|
5,252 | 9,236 | ||||||
Total current liabilities
|
8,312 | 14,210 | ||||||
Notes payable
|
20,109 | - | ||||||
Total liabilities
|
28,421 | 14,210 | ||||||
Stockholders' deficit
|
||||||||
Common stock $0.001 par value;
|
||||||||
75,000,000 shares authorized,
|
||||||||
25,477,500 shares issued and outstanding
|
25,478 | 25,478 | ||||||
Additional paid-in capital
|
129,448 | 129,408 | ||||||
Accumulated deficit during the development stage
|
(176,126 | ) | (158,701 | ) | ||||
Total stockholders' deficit
|
(21,200 | ) | (3,815 | ) | ||||
Total liabilities and stockholders' deficit
|
$ | 7,221 | $ | 10,395 |
INDIA ECOMMERCE CORPORATION
|
|||||||||||
(A DEVELOPMENT STAGE COMPANY)
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|||||||||||
STATEMENTS OF OPERATIONS
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|||||||||||
UNAUDITED
|
For the Period From
|
||||||||||||||||||||
For the Three Months Ended
|
For the Six Months Ended
|
January 19, 2011 (Inception) to
|
||||||||||||||||||
June 30, 2013
|
June 30, 2012
|
June 30, 2013
|
June 30, 2012
|
June 30, 2013
|
||||||||||||||||
Operating expenses
|
||||||||||||||||||||
General and administrative
|
$ | 7,610 | $ | 12,033 | $ | 15,899 | $ | 18,253 | $ | 168,174 | ||||||||||
Depreciation
|
431 | 430 | 861 | 848 | 3,947 | |||||||||||||||
Loss on impairment of website
|
- | - | - | - | 3,104 | |||||||||||||||
Total operating expenses
|
8,041 | 12,463 | 16,760 | 19,101 | 175,225 | |||||||||||||||
Loss from operations
|
(8,041 | ) | (12,463 | ) | (16,760 | ) | (19,101 | ) | (175,225 | ) | ||||||||||
Interest expense
|
(358 | ) | - | (665 | ) | - | (901 | ) | ||||||||||||
Net loss
|
$ | (8,399 | ) | $ | (12,463 | ) | $ | (17,425 | ) | $ | (19,101 | ) | $ | (176,126 | ) | |||||
Net loss per common share -
|
||||||||||||||||||||
basic and diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||
Weighted average common
|
||||||||||||||||||||
shares outstanding -
|
||||||||||||||||||||
basic and diluted
|
25,477,500 | 25,287,500 | 25,477,500 | 25,179,876 |
(A DEVELOPMENT STAGE COMPANY)
|
||||||||
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||
UNAUDITED
|
Total | ||||||||||||||||||||||||||||
Common Stock
|
Additional
|
Common Stock Payable
|
Accumulated
|
Stockholders'
|
||||||||||||||||||||||||
Shares
|
Amount
|
Paid-in Capital
|
Shares
|
Amount
|
Deficit
|
Equity (Deficit)
|
||||||||||||||||||||||
Balance, January 19, 2011 (Inception)
|
- | $ | - | $ | - | - | $ | - | $ | - | $ | - | ||||||||||||||||
Issuance of common stock for non-employee services
|
||||||||||||||||||||||||||||
at $0.001 per share
|
6,750,000 | 6,750 | - | - | - | - | 6,750 | |||||||||||||||||||||
Issuance of common stock for reimbursement
|
||||||||||||||||||||||||||||
of expenditures paid by stockholders prior
|
||||||||||||||||||||||||||||
to incorporation at $0.001539 per share
|
||||||||||||||||||||||||||||
categorized as follows:
|
||||||||||||||||||||||||||||
Cash
|
64,996 | 65 | 35 | - | - | - | 100 | |||||||||||||||||||||
Prepaid expenses and deposits
|
1,553,394 | 1,553 | 837 | - | - | - | 2,390 | |||||||||||||||||||||
Property and equipment
|
4,666,033 | 4,666 | 2,513 | - | - | - | 7,179 | |||||||||||||||||||||
Website development
|
2,017,463 | 2,017 | 1,087 | - | - | - | 3,104 | |||||||||||||||||||||
General and administrative expenses
|
4,948,114 | 4,949 | 2,664 | - | - | - | 7,613 | |||||||||||||||||||||
Issuance of common stock for cash pursuant
|
||||||||||||||||||||||||||||
to a private placement at $0.02 per share
|
4,750,000 | 4,750 | 92,150 | 100,000 | 100 | - | 97,000 | |||||||||||||||||||||
Net loss
|
- | - | - | - | - | (109,973 | ) | (109,973 | ) | |||||||||||||||||||
Balance, December 31, 2011
|
24,750,000 | 24,750 | 99,286 | 100,000 | 100 | (109,973 | ) | 14,163 | ||||||||||||||||||||
Issuance of common stock payable
|
100,000 | 100 | - | (100,000 | ) | (100 | ) | - | - | |||||||||||||||||||
Issuance of common stock for cash pursuant
|
||||||||||||||||||||||||||||
to a private placement at $0.02 to $0.10
|
||||||||||||||||||||||||||||
per share
|
527,500 | 528 | 20,222 | - | - | - | 20,750 | |||||||||||||||||||||
Issuance of common stock for non-employee services
|
||||||||||||||||||||||||||||
at $0.10 per share
|
100,000 | 100 | 9,900 | - | - | - | 10,000 | |||||||||||||||||||||
Net loss
|
- | - | - | - | - | (48,728 | ) | (48,728 | ) | |||||||||||||||||||
Balance, December 31, 2012
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25,477,500 | 25,478 | 129,408 | - | - | (158,701 | ) | (3,815 | ) | |||||||||||||||||||
Accrued interest waived by stockholders
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- | - | 40 | - | - | - | 40 | |||||||||||||||||||||
Net loss
|
- | - | - | - | - | (17,425 | ) | (17,425 | ) | |||||||||||||||||||
Balance, June 30, 2013
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25,477,500 | $ | 25,478 | $ | 129,448 | $ | - | $ | - | $ | (176,126 | ) | $ | (21,200 | ) |
INDIA ECOMMERCE CORPORATION
|
||||||||
(A DEVELOPMENT STAGE COMPANY)
|
||||||||
STATEMENTS OF CASH FLOWS
|
||||||||
UNAUDITED
|
For the Period From
|
||||||||||||
For the Six Months Ended
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January 19, 2011 (Inception) to
|
|||||||||||
June 30, 2013
|
June 30, 2012
|
June 30, 2013
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net loss
|
$ | (17,425 | ) | $ | (19,101 | ) | $ | (176,126 | ) | |||
Adjustments to reconcile net loss to net
|
||||||||||||
cash used by operating activities:
|
||||||||||||
Depreciation
|
861 | 848 | 3,947 | |||||||||
Issuance of common stock for non-employee services
|
- | - | 26,753 | |||||||||
Loss on impairment of website
|
- | - | 3,104 | |||||||||
Accrued interest on notes payable
|
665 | - | 901 | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Deposits
|
- | - | (1,090 | ) | ||||||||
Accounts payable and accrued liabilities
|
(1,914 | ) | (860 | ) | 3,060 | |||||||
Net cash used by operating activities
|
(17,813 | ) | (19,113 | ) | (139,451 | ) | ||||||
Cash flows from investing activities:
|
||||||||||||
Property and equipment acquisitions
|
- | (1,435 | ) | (1,435 | ) | |||||||
Net cash used by investing activities
|
- | (1,435 | ) | (1,435 | ) | |||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from notes payable
|
20,000 | - | 33,500 | |||||||||
Repayments of notes payable
|
(4,500 | ) | - | (9,000 | ) | |||||||
Proceeds from issuance of common stock
|
- | 16,750 | 117,850 | |||||||||
Net cash provided by financing activities
|
15,500 | 16,750 | 142,350 | |||||||||
Net change in cash
|
(2,313 | ) | (3,798 | ) | 1,464 | |||||||
Cash, beginning of period
|
3,777 | 8,676 | - | |||||||||
Cash, end of period
|
$ | 1,464 | $ | 4,878 | $ | 1,464 | ||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Interest paid
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$ | - | $ | - | $ | - | ||||||
Income taxes paid
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$ | - | $ | - | $ | - | ||||||
Supplemental disclosure of noncash investing
|
||||||||||||
and financing activities:
|
||||||||||||
Issuance of common stock to acquire
|
||||||||||||
property and equipment
|
$ | - | $ | - | $ | 7,179 | ||||||
Issuance of common stock for
|
||||||||||||
website development
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$ | - | $ | - | $ | 3,104 | ||||||
Accrued interest waived by stockholders
|
$ | 40 | $ | - | $ | 40 |
Furniture and fixtures
|
7 years
|
Computers and office equipment
|
3-5 years
|
|
·
|
The expected option term is computed using the “simplified” method.
|
|
·
|
The expected volatility is based on the historical volatility of its common stock using the daily quoted closing trading prices.
|
|
·
|
The risk-free interest rate assumption is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant.
|
|
·
|
The Company has not paid any dividends on common stock since its inception and does not anticipate paying dividends on our common stock in the foreseeable future.
|
|
·
|
The forfeiture rate is based on the historical forfeiture rate for its unvested stock options.
|
June 30, 2013
|
December 31, 2012
|
|||||||
Computer and office equipment
|
$ | 8,614 | $ | 8,614 | ||||
Accumulated depreciation
|
(3,947 | ) | (3,086 | ) | ||||
Property and equipment, net
|
$ | 4,667 | $ | 5,528 |
June 30, 2013
|
December 31, 2012
|
|||||||
Note payable - 24% interest, unsecured and due January 2013 (1)
|
$ | 5,252 | $ | 4,716 | ||||
Note payable - 2% interest, unsecured and due October 2013 (2)
|
- | 4,520 | ||||||
Line of credit - 2% interest, unsecured and due January 2015 (3)
|
20,109 | - | ||||||
Total notes payable
|
25,361 | 9,236 | ||||||
Less current maturities
|
(5,252 | ) | (9,236 | ) | ||||
Net long-term note payable
|
$ | 20,109 | $ | - |
Item 1
|
Legal Proceedings
|
Item 1A
|
Risk Factors
|
Item 2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3
|
Defaults upon Senior Securities
|
Item 4
|
Mine Safety Disclosures
|
Item 5
|
Other Information
|
Item 6
|
Exhibits
|
Number
|
Exhibit
|
31.1
|
Certification of Principal Executive and Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification of Principal Executive and Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS*
|
XBRL Instance Document
|
101.SCH*
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB*
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase Document
|
India Ecommerce Corporation
|
||
Date: August 13, 2013
|
/s/ Ashish Badjatia
|
|
Ashish Badjatia
President, Chief Executive Officer (Principal Executive
Officer) and Interim Chief Financial Officer (Interim Principal
Accounting and Financial Officer)
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
As the registrant’s sole certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
As the registrant’s sole certifying officer, I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 13, 2013
|
/s/ Ashish Badjatia
|
|
Ashish Badjatia
President, Chief Executive Officer (Principal Executive
Officer) and Interim Chief Financial Officer (Interim
Principal Financial Officer)
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: August 13, 2013
|
/s/ Ashish Badjatia
|
|
Ashish Badjatia
President, Chief Executive Officer (Principal Executive
Officer) and Interim Chief Financial Officer (Interim
Principal Financial Officer)
|
PROPERTY AND EQUIPMENT (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment consist of the following as of June 30, 2013 and December 31, 2012:
|
STATEMENTS OF OPERATIONS (USD $)
|
3 Months Ended | 6 Months Ended | 29 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
|
Operating expenses | |||||
General and administrative | $ 7,610 | $ 12,033 | $ 15,899 | $ 18,253 | $ 168,174 |
Depreciation | 431 | 430 | 861 | 848 | 3,947 |
Loss on impairment of website | 3,104 | ||||
Total operating expenses | 8,041 | 12,463 | 16,760 | 19,101 | 175,225 |
Loss from operations | (8,041) | (12,463) | (16,760) | (19,101) | (175,225) |
Interest expense | (358) | (665) | (901) | ||
Net loss | $ (8,399) | $ (12,463) | $ (17,425) | $ (19,101) | $ (176,126) |
Net loss per common share - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 | |
Weighted average common shares outstanding - basic and diluted | 25,477,500 | 25,287,500 | 25,477,500 | 25,179,876 |
GOING CONCERN
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
GOING CONCERN [Abstract] | |
GOING CONCERN | 3. GOING CONCERN The Company incurred a net loss of $17,425 during the six months ended June 30, 2013 and has an accumulated net loss of $176,126 since inception. The Company is in the development stage of operations, has not generated any revenues since inception and anticipates that it will continue to generate losses in the near future. These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company's continuation as a going concern is dependent upon its ability to obtain additional financing or sale of its common stock and ultimately to attain profitability. Management's plan, in this regard, is to raise additional financing through a combination of equity and debt financing. Management believes this will be sufficient to finance the continuing development for the next twelve months. However, there is no assurance that the Company will be successful in raising such financing. |
NOTES PAYABLE (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Payable | As of June 30, 2013 and December 31, 2012, the Company had the following notes payable:
(1) Upon maturity, this amount may be converted into 225,000 shares of the Company's common stock at $0.02 per share. (2) Upon repayment of $4,500 in debt, the note holder elected to waive accrued interest totaling $40 which is presented as a contribution on the statement of stockholders' deficit. (3) In March 2013 the Company entered into a line of credit agreement secured by a personal guarantee of 250,000 shares of common stock owned by the Company's President and Chief Executive Officer. The line of credit has a maximum borrowing capacity of $25,000 and under the agreement the Company will pay interest at a rate of 2% per year. As of June 30, 2013, the Company made draws totaling $20,000. |
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) (USD $)
|
1 Months Ended | 10 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Aug. 31, 2012
|
Mar. 31, 2011
|
Dec. 31, 2011
|
Sep. 30, 2012
Minimum [Member]
|
Sep. 30, 2012
Maximum [Member]
|
|
Equity issuance, stock issued for services, price per share | $ 0.10 | $ 0.001 | |||
Equity issuance, stock issued for reimbursement of expenditures paid by stockholders, price per share | $ 0.001539 | ||||
Equity issuance, stock issued for cash pursuant to a private placement, price per share | $ 0.002 | $ 0.02 | $ 0.10 |
DESCRIPTION OF BUSINESS
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
DESCRIPTION OF BUSINESS [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS India Ecommerce Corporation (the "Company") was incorporated under the laws of the state of Nevada on January 19, 2011. The Company plans to build, promote and manage a multitude of ecommerce properties, in both website and mobile application formats, for the Indian market. |
PROPERTY AND EQUIPMENT
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | 4. PROPERTY AND EQUIPMENT Property and equipment consist of the following as of June 30, 2013 and December 31, 2012:
Depreciation expense for the six months ended June 30, 2013 and 2012 was $861 and $848, respectively. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
6 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. These unaudited interim financial statements should be read in conjunction with the Company's Annual Report on Form 10-K which contains audited financial statements and notes covering the year ended December 31, 2012. Certain information or footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted, pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim results for the six months ended June 30, 2013 are not necessarily indicative of results for the full fiscal year. Development Stage Company - The Company's financial statements are presented as those of a development stage enterprise. Activities during the development stage primarily include implementation of the business plan, and obtaining additional debt and/or equity related financing. As development stage enterprise, the Company discloses the deficit accumulated during the exploration stage and the cumulative statements of operations, stockholders' deficit and cash flows from inception to the current balance sheet date. Year-End - The Company has selected December 31 as its year end. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash - The Company considers all highly liquid instruments purchased with a maturity of three months or less at date of acquisition to be cash equivalents. There were no cash equivalents at June 30, 2013 or December 31, 2012, respectively. The Company maintains cash balances at an institution that is insured by the Federal Deposit Insurance Corporation. As of June 30, 2013 and December 31, 2012 no amounts were in excess of the federally insured program. Deposits - Deposits include a security deposit for office space located in Indore, Madhya Pradesh, India. Property and Equipment - Property and equipment are stated at cost less accumulated depreciation. Expenditures for property acquisitions, development, construction, improvements and major renewals are capitalized. The cost of repairs and maintenance is expensed as incurred. Depreciation is provided on the straight-line method over the estimated useful lives of the assets. Upon sale or other disposition of a depreciable asset, the cost and accumulated depreciation are removed from property and equipment and any gain or loss is reflected as a gain or loss from operations. The estimated useful lives are:
Website Development - The Company capitalizes the costs associated with the development of its website. Other costs related to the maintenance of the website are expensed as incurred. Amortization will be provided over the estimated useful life of 3 years using the straight-line method for financial statement purposes. Impairment of Long-lived Assets - The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful lives of property and equipment or whether the remaining balance of property and equipment should be evaluated for possible impairment. Transfers of Nonmonetary Assets by Stockholders - The Company records transfers of nonmonetary assets to the Company by stockholders in exchange for common stock at the stockholders' historical cost basis determined in conformity with generally accepted accounting principles in the United States of America. Revenue Recognition - The Company currently has not generated revenues. Any future revenues earned, primarily through the sale of products, will be recognized utilizing the following general revenue recognition criteria: 1) pervasive evidence of an arrangement exists; 2) delivery has occurred; 3) the price to the buyer is fixed or determinable; and 4) collectability is reasonably assured. Share-based Compensation Expense - The Company recognizes all forms of share-based payments, including stock option grants, warrants, and restricted stock grants, at their fair value on the grant date, which are based on the estimated number of awards that are ultimately expected to vest. Share-based payments, excluding restricted stock, are valued using a Black-Scholes option pricing model. Share-based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. When computing fair value of share-based compensation, the Company considers the following variables:
Income Taxes - Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company's financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate. Earnings (Loss) per Share - Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss), adjusted for changes in income or loss that resulted from the assumed conversion of convertible shares, by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. The computation of basic and diluted loss per share for the periods presented is equivalent since the Company had continuing losses. The Company had no common stock equivalents as of June 30, 2013 or December 31, 2012, respectively. Fair Value of Financial Instruments - The Company's financial instruments consist of cash, accounts receivable, accounts payable, and notes payable. The recorded values of these instruments approximate fair values due to the short maturities of such instruments and the stated or imputed interest rates are commensurate with prevailing market rates for similar obligations. New Accounting Pronouncements - There are no recent accounting pronouncements that are expected to have a material effect on the Company's interim unaudited financial statements. |