0001607062-19-000357.txt : 20190906 0001607062-19-000357.hdr.sgml : 20190906 20190906090154 ACCESSION NUMBER: 0001607062-19-000357 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 29 CONFORMED PERIOD OF REPORT: 20190630 FILED AS OF DATE: 20190906 DATE AS OF CHANGE: 20190906 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERDYNE CO CENTRAL INDEX KEY: 0000051011 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 952563023 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-04454 FILM NUMBER: 191078544 BUSINESS ADDRESS: STREET 1: 335 ELAN VILLAGE LANE #420 CITY: SAN JOSE STATE: CA ZIP: 95134-2541 BUSINESS PHONE: 4089438046 10-K 1 itdn063019form10k.htm FORM 10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended June 30, 2019

 

OR

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File No. 0-4454

 

INTERDYNE COMPANY 

(Exact name of registrant as specified in its charter)

 

California 95-2563023
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
26 Briarwood Irvine, CA 92604
(Address of principal executive offices) (Zip Code)

 

Registrant's telephone number, including area code: (805) 322-3883

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
     

 

  Securities registered pursuant to section 12(g) of the Act:  
     
  Common Stock, no par value  
  (Title of class)  

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐  No ☒

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐  No ☒

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒  No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒  No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer ☐   Non-accelerated filer ☒
Accelerated filer ☐   Smaller reporting company ☒
    Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

 

Indicate by check whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☒  No ☐

 

Total revenues for registrants fiscal year ended June 30, 2019 were zero.

 

The aggregate market value of voting Common Stock held by non-affiliates of the Registration on December 31, 2018 was $63,900.

 

As of September 6, 2019,  there were 39,999,942 shares of Common Stock, no par value, issued and outstanding.

 

Transfer Agent for the Company is: OTR Inc., 1050 SW Sixth, Suite 1230, Portland, OR 97204-1153, Tel: 503-225-0375.

 

 1 

 

 

FORM 10-K

INTERDYNE COMPANY, INC.

INDEX 

PART I  
Item 1. Business 4
Item 2. Properties 4
Item 3. Legal Proceedings 4
Item 4. Submission of Matters to a Vote of Security Holders 4
PART II  
Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters 5
Item 6. Selected Financial Data 5
Item 7. Management’s Discussion and Analysis or Plan of Operations 5
Item 7A. Quantitative and Qualitative Disclosures about Market Risk 6
Item 8. Financial Statements and Supplementary Data 6
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 16
Item 9A. Controls and Procedures 16
Item 9B. Other Information 16
PART III  
Item 10. Directors, Executive Officers and Corporate Governance 17
Item 11. Executive Compensation 17
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 18
Item 13. Certain Relationships and Related Transactions, and Director Independence 18
Item 14. Principal Accountant Fees and Services 19
Item 15. Exhibits, Financial Statement Schedules 19
Signatures 20

 

 2 

 

 

For purposes of this report, unless otherwise indicated or the context otherwise requires, all references herein to “Interdyne Company”, “the Company”, “we,” “us,” and “our,” refer to Interdyne Company, a California corporation.

 

Forward-Looking Statements

The following discussion contains forward-looking statements regarding us, our business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward-looking statements include, without limitation: our ability to successfully develop new products and services for new markets; the impact of competition on our revenues, changes in law or regulatory requirements that adversely affect or preclude clients from using us for certain applications; delays our introduction of new products or services; and our failure to keep pace with our competitors.

 

When used in this discussion, words such as “believes”, “anticipates”, “expects”, “intends” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by us in this report and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.

 

 3 

 

 

PART I

 

ITEM 1. BUSINESS

 

The Company is currently dormant and is looking for new opportunities.

 

ITEM 2. PROPERTIES

 

The Company uses the home office of an officer. This officer charges the Company $6,000 per annum during fiscal years 2019 and 2018 for the use of his home office and for providing accounting and other services.

 

ITEM 3. LEGAL PROCEEDINGS

 

The Company is not a party to any pending legal proceedings and no such proceedings are known to be contemplated.

 

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

No matter was submitted to a vote of security holders of the Company during the fiscal year 2019.

 

 4 

 

 

PART II

 

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

 

The following table sets forth the range of low and high bid prices for the Company's common stock, for each fiscal quarter commencing July 1, 2017 and ending June 30, 2019. The prices for year ended June 30, 2019 were extracted from the Nasdaq website. Such quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and do not necessarily represent actual transactions.

 

2017  Low  High
Quarter ended September 30  $0.015   $0.03 
Quarter ended December 31  $0.01   $0.015 
           
2018          
Quarter ended March 31  $0.01   $0.028 
Quarter ended June 30  $0.02   $0.0275 
Quarter ended September 30  $0.01   $0.026 
Quarter ended December 31  $0.0045   $0.01 
           
2019          
Quarter ended March 31  $0.0045   $0.014 
Quarter ended June 30  $0.0085   $0.014 

 

As of August 31, 2019, the high and low bid prices for the Company's Common Stock were $0.022 and $0.022 respectively. There were approximately 1,620 record owners of such Common Stock.  To management's knowledge, the Company has never paid dividends on its common stock. The Company does not intend to pay dividends in the foreseeable future.

 

ITEM 6. SELECTED FINANCIAL DATA

 

Not applicable to smaller reporting companies.

 

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

 

The Company is currently dormant and is looking for new opportunities.

 

Results of Operations

 

The Company is currently dormant and therefore does not generate any revenue.

 

For the years ended June 30, 2019 and 2018, the following expenses were incurred:

 

Professional fees of $15,025 for auditing and $600 for tax preparation compared to $14,025 and $600, respectively, in the previous year;
General and administrative expenses totaled $8,710 compared to $9,026 in the previous year;
Management fee of $6,000 remained unchanged compared to the previous year’s.

 

The Company reported a net loss of $31,135 compared to a net loss of $30,451 in the previous year.

 

 5 

 

 

Liquidity and Capital Resources

 

As of June 30, 2019, the Company has a cash balance of $100,392. The Company has sufficient cash in hand to fund its operations for the next twelve months.

 

Off-Balance Sheet Arrangements

 

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

Employees

 

The Company presently has no employees and is managed by the two incumbent directors: Sun Tze Whang, Chairman of the Board and Chief Executive Officer, and Kit Heng Tan, Chief Financial Officer/Principal Accounting Officer and Secretary. Kit Heng Tan charged the Company the sum of $6,000 per annum for fiscal years 2019 and 2018 for providing accounting and other services and also for the use of his home office. Neither of the Company's officers is currently represented by any labor union.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable to smaller reporting companies.

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

The audited financial statements as of June 30, 2019 and 2018 and for the years then ended are set forth on the following pages.

 

 6 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Shareholders and Board of Directors of

Interdyne Company

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of Interdyne Company (the “Company”) as of June 30, 2019 and 2018, and the related statements of operations, stockholders’ equity, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2019 and 2018, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ MaloneBailey, LLP

www.malonebailey.com

We have served as the Company's auditor since 2016.

Houston, Texas

September 6, 2019

 

 7 

 

INTERDYNE COMPANY

BALANCE SHEETS

JUNE 30, 2019 AND 2018

 

   2019  2018
ASSETS          
CURRENT ASSETS:          
Cash  $100,392   $124,604 
Total current assets  $100,392   $124,604 
TOTAL ASSETS  $100,392   $124,604 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES:          
Accrued professional fees  $8,100   $7,100 
Due to related party   15,000    9,000 
Other accrued expenses   3,742    3,819 
Total current liabilities  $26,842   $19,919 
STOCKHOLDERS' EQUITY:          
Preferred stock, no par value; 50,000,000 shares authorized;0 shares issued and outstanding   —      —   
Common stock, no par value; 100,000,000 shares authorized; 39,999,942 shares issued and outstanding as of June 30, 2019 and 2018   500,000    500,000 
Accumulated deficit   (426,450)   (395,315)
Total stockholders' equity  $73,550   $104,685 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $100,392   $124,604 

 

See accompanying notes to financial statements.

 

 8 

 

 

INTERDYNE COMPANY

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED JUNE 30, 2019 AND 2018

 

   2019  2018
OPERATING EXPENSES:          
Professional fees  $15,625   $14,625 
General and administrative   8,710    9,026 
Management fees to related party   6,000    6,000 
Total expenses   30,335    29,651 
           
OPERATING LOSS   (30,335)   (29,651)
           
LOSS BEFORE INCOME TAXES   (30,335)   (29,651)
           
INCOME TAX EXPENSE   (800)   (800)
           
NET LOSS  $(31,135)  $(30,451)
           
NET LOSS PER COMMON SHARE BASIC AND DILUTED  $(0.00)  $(0.00)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC AND DILUTED   39,999,942    39,999,942 

 

 

See accompanying notes to financial statements.

 

 9 

 

INTERDYNE COMPANY

STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE YEARS ENDED JUNE 30, 2019 AND 2018 

 

 

    Common Stock                
    Shares    Amount    

Additional Paid-in

Capital

    

Accumulated

Deficit

    

Total Stockholders’

Equity

 
Balance, June 30, 2017   39,999,942   $500,000   $—     $(364,864)  $135,136 
Net Loss                  (30,451)   (30,451)
Balance, June 30, 2018   39,999,942    500,000    —      (395,315)   104,685 
Net Loss                  (31,135)   (31,135)
Balance, June 30, 2019   39,999,942   $500,000   $—     $(426,450)  $73,550 

 

See accompanying notes to financial statements.

 

 10 

 

INTERDYNE COMPANY

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED JUNE 30, 2019 AND 2018

 

   2019  2018
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(31,135)  $(30,451)
Adjustments to reconcile net loss to net cash used in operating activities:          
Changes in operating assets and liabilities:          
Due to related party   6,000    6,000 
Accrued professional fees   1,000    —   
Other accrued expenses   (52)   1,469 
Net cash used in operating activities   (24,187)   (22,982)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Repayment to related party   (25)   (25)
Net cash used in financing activities   (25)   (25)
           
Net decrease in cash   (24,212)   (23,007)
CASH, BEGINNING OF YEAR   124,604    147,611 
CASH, END OF YEAR  $100,392   $124,604 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION          
Income taxes paid  $800   $800 
Interest paid  $—     $—   
           
NON-CASH TRANSACTIONS          
Operation expenses paid by related party  $25   $25 

 

See accompanying notes to financial statements.

 

 11 

 

 

INTERDYNE COMPANY

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2019 and 2018

 

1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Business - Interdyne Company (the "Company") was incorporated in October 1946 in the state of California. The Company is a dormant shell currently seeking new opportunities. On November 22, 1988, the Company filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California. On May 17, 1990, the Company’s Amended Plan of Reorganization (the “Plan”) was confirmed by Bankruptcy Court, and the Plan became effective May 29, 1990. On July 20, 1990, the Bankruptcy Court approved a stipulation for nonmaterial modifications to the Plan. All claims and interest have been settled in accordance with the terms of the Plan. On August 22, 1990, the Board of Directors approved a change in the Company’s year-end to June 30, pursuant to the Plan.

 

Basis of Preparation – The accompanying financial statements have been prepared in accordance with generally accepted accounting principles used in the United States of America.

 

Related Party – The Company follows ASC 850, “Related Party Disclosure”, for the identification of related parties and disclosure of related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.

 

Income Taxes – The Company accounts for income taxes in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) codified within Accounting Standards Codification (“ASC”) Topic No. 740-10, Income Taxes. Deferred income taxes are recognized for the temporary differences between the tax basis of assets and liabilities and their financial reporting amounts. The Company assesses, on an annual basis, the realizability of its deferred tax assets. A valuation allowance for deferred tax assets is established if, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized.

 

 12 

 

 

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and the disclosure of contingent assets and liabilities. These estimates and assumptions are based on the Company’s historical results as well as management’s future expectations. The Company’s actual results may vary from those estimates and assumptions.

 

Net Loss per Share – The Company adopted ASC No. 260, “Earnings Per Share”, that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC No. 260, “Earnings Per Share”, any anti-dilutive effects on net income (loss) per share are excluded. The Company has no potentially dilutive securities outstanding for any years presented. Weighted average shares for computing net loss per share were 39,999,942 for each of the years presented.

 

Fair value of Financial Instruments - The Company applies the provisions of accounting guidance, FASB Topic ASC 825 that requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties.

 

Fair value Measurement – The Company’s financial instruments consist principally of cash, accrued professional fees, due to related party and other accrued expenses. ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments establish a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements.

 

Fair Value Hierarchy

 

The Company has categorized its financial instruments, based on the priority of inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

 

Financial assets and liabilities recorded on the balance sheet are categorized based on the inputs to the valuation techniques as follows:

 

Level 1   Financial assets and liabilities for which values are based on unadjusted quoted prices for identical assets or liabilities in an active market that management has the ability to access.

 

Level 2   Financial assets and liabilities for which values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (commodity derivatives and interest rate swaps). 

 

Level 3   Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

 

 13 

 

 

When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. The carrying amounts of cash, accrued professional fees and other accrued expenses approximate fair value because of the short-term nature of these items. Per ASC Topic 820 framework these are considered Level 3 inputs where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company.

 

It is not, however, practical to determine the fair value of amounts due to related party because the transactions cannot be assumed to have been consummated at arm’s length, the terms are not deemed to be market terms, there are no quoted values available for these instruments, and an independent valuation would not be practical due to the lack of data regarding similar instruments, if any, and the associated potential costs.

 

Recent Accounting Pronouncements – In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. In December 2017, January 2018, July 2018, December 2018 and March 2019, the FASB issued ASU 2017-13, ASU 2018-01, ASU 2018-10 & 11, ASU 2018-20 and ASU 2019-01, respectively, which contain modifications and improvements to ASU 2016-02. The amendments provide entities with an additional (and optional) transition method to adopt the new leases standard. Under the Optional Transition Method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.

 

The standard will be effective for the Company beginning July 1, 2019, with early adoption permitted. The Company plans to adopt the standard effective July 1, 2019. The Company does not expect adoption will have a material impact on the Company’s financial statements.

 

2. RELATED PARTY TRANSACTIONS

 

An officer of the Company charged a management fee totaling $6,000 for each of the years ended June 30, 2019 and 2018 for the use of a home office, accounting and other services. During the years ended June 30, 2019 and 2018, the officer also paid operating expense of $25 and $25, respectively, on behalf of the Company to support the Company’s operation and these payments were fully reimbursed to him. The balance due to this officer was $15,000 and $9,000 as of June 30, 2019 and 2018, respectively. The amounts due to this officer are unsecured, bearing no interest and are repayable on demand.

 

 14 

 

 

3. INCOME TAXES

 

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Act 2017”) resulting in significant modifications to existing law. The Company has considered the accounting impact of the effects of the Tax Act 2017 during the year ended June 30, 2018, including a reduction in the corporate tax rate from 34% to 21% among other changes.

 

Income taxes for the years ended June 30, 2019 and 2018 represent state minimum franchise tax of $800. The Company had net operating loss carryovers for federal income tax purposes totaling approximately $160,383 and $129,248, as of the years ended June 30, 2019 and 2018, respectively. The ultimate realization of such loss carryovers will be dependent on the Company attaining future taxable earnings. Based on the level of historical operating results and projections of future taxable earnings, management believes that it is more likely than not that the Company will not be able to utilize the benefits of these carryovers. The effective tax rates for the years ended June 30, 2019 and 2018 were 21%. As of June 30, 2019 and 2018, the Company had full valuation allowances recorded against the deferred tax assets of $33,680 and $27,142, respectively. If not utilized, the carryovers expire beginning in fiscal 2027.

 

The Company files income tax returns in the U.S. federal jurisdiction and in the state of California. With few exceptions, the Company is no longer subject to U.S. federal and state tax examinations by tax authorities for the years ending June 30, 2013  and earlier. According to Section 382 of the Internal Revenue Code of 1986, as amended, ownership changes may limit the amount of the NOL carry forwards that can be utilized annually to offset future taxable income and tax, respectively.

 

4. COMMITMENTS AND CONTINGENCIES

 

In March 2017, the Company received a letter from the County of Santa Clara, California, which claimed that the Company is delinquent on its property taxes relating to tax year 1988/1989 in the amount of $80,238.07 including penalties which should be paid immediately. The Company believes that these property taxes were related to the period prior to the filing of the reorganization of the Company under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California on November 22, 1988 and the eventual confirmation of the Company’s Amended Plan of Reorganization (the “Plan”) by the Bankruptcy Court on May 17, 1990, and thus have been settled in accordance with the terms of the Plan and are therefore invalid. The Company has informed the County of Santa Clara that if it wants to assert its claim, it would have to petition to the Bankruptcy Court for relief. The Company does not recognize the said claim and therefore has not recorded any tax liabilities related to this claim. If the County of Santa Clara claim is adjudicated to be valid and the Company is liable, the tax liabilities imposed could have a material effect on the Company’s result of operations and financial position.

 

 15 

 

 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

 

None.

 

ITEM 9A. CONTROLS AND PROCEDURES

 

Disclosure Controls - The Company’s management, comprising the Chief Executive Officer and Chief Financial Officer/Principal Accounting Officer, are responsible for establishing and maintaining disclosure controls and procedures for the Company. Management has designed such disclosure controls and procedures to ensure that material information is made known to them, particularly during the period in which this report was prepared. As of the end of the period covered by this report, our management carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (or Exchange Act)). Based on this evaluation, as of the end of the period covered by this report, our management has concluded that our disclosure controls and procedures are not effective considering the fact that the Company, being dormant, has only one person on staff, the Chief Financial Officer/Principal Accounting Officer, to (1) handle all accounting transactions (consisting of primarily collecting funds from a related party and paying all expenses, including fees to this same officer); (2) reconcile the bank account, and (3) prepare all financial statement disclosures. The above duties have no supervision or review to insure proper segregation of duties and review of disclosures. As a result, material weaknesses over disclosure controls and procedures exist.

 

Management's Report on Internal Control Over Financial Reporting – The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company’s management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of June 30, 2019 based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organization of the Treadway Commission. Based on this evaluation, our management has concluded that our internal control over financial reporting was not effective as of June 30, 2019 because of the following material weaknesses as of June 30, 2019: (i) lack of supervision or review to insure proper internal control over financial reporting, (ii) inadequate segregation of duties and effective risk assessment, (iii) lack of well-established procedures to authorize and approve related party transactions. As a result, material weaknesses over internal control over financial reporting exist.

 

This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only management’s report in this annual report on Form 10-K.

 

Changes in Internal Controls - During the quarter ended June 30, 2019, there has not been any change in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

ITEM 9B. OTHER INFORMATION

 

None.

 

 16 

 

 

PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

The following table sets forth the names and ages of the directors and executive officers of the Company as of the date of this report, and indicates all positions and offices with the Company held by each person:

 

Name Age Position
Dr. Sun Tze Whang 75 Chairman of the Board and Chief Executive Officer 
Kit Heng Tan 69 Chief Financial Officer/Principal Accounting Officer and Secretary 

 

The terms of office of each director of the Company ends at the next annual meeting of the Company's shareholders or when his or her successor is elected and qualified. No date for the next annual meeting of shareholders has been fixed by the Board of Directors. The term of office of each officer of the Company ends at the next annual meeting of the Company's Board of Directors which is expected to take place immediately after the next annual meeting of shareholders. Except as otherwise indicated below, no organization by which any officer or director previously has been employed is an affiliate, parent, or subsidiary of the Company. The Company's Bylaws provide that the number of directors of the Company shall be not less than five nor more than nine. The exact number of directors is set at five unless changed within the foregoing limits by a bylaw adopted by the Board of Directors or the shareholders. At present, there are two persons serving as directors and three vacancies on the Board of Directors.

 

Dr. Sun Tze Whang has been Chairman of the Board and Chief Executive Officer since August 17, 1990. From December 1994 to the present, Dr. Whang has been a director of Metal Containers Pte Ltd ("Metal Containers"), a company incorporated in the Republic of Singapore, which engaged in the manufacturing and sale of metal containers and in investment activities. From January 1985 to the present, Dr. Whang has also been a director of Riviera Development Pte. Ltd. ("Riviera"), a company incorporated in the Republic of Singapore, whose principal business is investment holding. Riviera is a 53.2% owned subsidiary of Metal Containers. From May 1985 to the present, Dr. Whang has also been the Chairman and a director of Carlee Electronics Pte. Ltd. ("Carlee Electronics"), a company incorporated in the Republic of Singapore, whose principal business is the manufacture and sale of industrial electronic products. Carlee is a 64.3% owned subsidiary of Riviera and the controlling shareholder of the Company. From October 1972 to the present, Dr. Whang has been a director of Lam Soon (Hong Kong) Limited, a company incorporated in Hong Kong and listed on the Stock Exchange of Hong Kong.

 

Kit Heng Tan has been Chief Financial Officer/Principal Accounting Officer, Secretary and a director of the Company since August 17, 1990. On June 8, 2006, Mr. Tan was appointed as director of Metal Containers. From January 16, 2008 to the present, Mr. Tan has also been a director of Riviera, a company incorporated in the Republic of Singapore, whose principal business is investment holding. Riviera is a 53.2% owned subsidiary of Metal Containers. Carlee is a 64.3% owned subsidiary of Riviera and the controlling shareholder of the Company. Mr. Tan is a Chartered Accountant of England & Wales and a Chartered Accountant of Singapore.

 

ITEM 11. EXECUTIVE COMPENSATION

 

For the fiscal years ended June 30, 2019 and 2018, there was no cash compensation paid to executive officers of the Company other than a sum of $6,000 per annum charged by an officer of the Company for each of the fiscal years 2019 and 2018 for providing accounting and other services and for the use of a home office.

 

 17 

 

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

The following sets forth information, as of June 30, 2019, with respect to the beneficial ownership of the Company's Common Stock, no par value, by each person known by the Company to be the beneficial owner of more than five percent (5%) of the outstanding Common Stock, by each of the Company's directors, and by the officers and directors of the Company as a group:

 

Beneficial Owner  Shares Owned Beneficially and of Record  Percent of Class
Carlee Electronics Pte. Ltd.   25,800,000    64.5%
159 Gul Circle          
Singapore 629617          
Officers and directors as a group (two persons)   (1)   (1)

 

(1) By virtue of Dr. Sun Tze Whang's direct and indirect ownership of Carlee Electronics Pte. Ltd., he may be deemed the beneficial owner of the shares held by Carlee Electronics Pte. Ltd. in the Company.

 

The Company is not aware of any voting trusts.

 

The Company's capital consists of 100,000,000 shares of Common Stock, no par value and 50,000,000 shares of Preferred Stock, no par value. As of the date hereof, 39,999,942 shares of Common Stock have been issued and are outstanding.

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

 

The Company uses the home office of an officer at 26 Briarwood, Irvine, CA 92604, and was charged management fees of $6,000 per annum by the officer for each of the fiscal years 2019 and 2018 for the use of the home office and for providing accounting and other services. During the years ended June 30, 2019 and 2018, the officer also paid operating expense of $25 and $25, respectively, on behalf of the Company to support the Company’s operation and these payments were fully reimbursed to him. The balance due to this officer was $15,000 and $9,000 as of June 30, 2019 and 2018, respectively. The amounts due to the officer are unsecured, bearing no interest and are repayable on demand.

 

Dr. Sun Tze Whang may be considered to be the indirect beneficial owner of the shares of the Company's stock owned by Carlee Electronics, and thus Dr. Whang would be considered a control person of the Company.

 

 18 

 

 

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

Audit Fees

 

The aggregate fees billed to the Company for professional services rendered for the audit of the Company's annual financial statements, review of the Company's quarterly financial statements, and other services normally provided in connection with statutory and regulatory filings or engagements was $15,025 in the fiscal year ended June 30, 2019, and $14,025 in the fiscal year ended June 30, 2018.

 

Other Fees

 

Other fees billed to the Company by its independent registered public accounting firm for the preparation of its required federal and state income tax returns totaled $600 and $600 for the fiscal years ended June 30, 2019, and 2018, respectively.

 

ITEM 15. Exhibits, Financial Statement Schedules.

 

a. The following financial statements are filed as part of this report:

 

Report of Independent Registered Public Accounting Firm

 

Interdyne Company Balance Sheets at June 30, 2019 and 2018

 

Interdyne Company Statements of Operations for the Years Ended June 30, 2019 and 2018

 

Interdyne Company Statements of Stockholders’ Equity for the Years Ended June 30, 2019 and 2018

 

Interdyne Company Statements of Cash Flows for the Years Ended June 30, 2019 and 2018

 

Notes to Financial Statements

 

b. No financial statement schedules are filed as part of this report.

 

 

c. The following exhibits are filed as part of this report:

 

Exhibit No. Description
31.1 Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
31.2 Certification of Chief Financial Officer/Principal Accounting Officer pursuant to Section302 of Sarbanes-Oxley Act of 2002
32 Section 1350 Certification

d. The  following XBRL documents are filed as part of this report:

 

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

 

 19 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    INTERDYNE COMPANY
    (Registrant)
     
Dated: September 6, 2019  By:  /s/ Kit H. Tan
    Kit H. Tan
    Chief Financial Officer/Principal Accounting Officer

 

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated.

 

Signature & Title Capacity Date
     
/s/ Sun Tze Whang   September 6, 2019
Sun Tze Whang  
Chief Executive Officer Director and Chief Executive Officer  
     
     
/s/ Kit H. Tan   September 6, 2019
Kit H. Tan    
Chief Financial Officer/ Principal Accounting Officer Director and Chief Financial Officer/Principal Accounting Officer  

 

 20 

 

EX-31.1 2 ex31_1.htm EXHIBIT 31.1

Exhibit 31.1

 

Certification of the Company’s Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Sun Tze Whang, certify that:

 

1.I have reviewed this Annual Report Form 10-K for the fiscal year ended June 30, 2019 of Interdyne Company;

 

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.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financing reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

 

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.Designed such internal control over financing reporting, or caused such internal control over financing reporting to be designed under our 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 our 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;

 

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.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the 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.

 

 

Dated: September 6, 2019 By:  /s/ Sun Tze Whang
    Sun Tze Whang
    Chief Executive Officer

EX-31.2 3 ex31_2.htm EXHIBIT 31.2

Exhibit 31.2

 

Certification of the Company’s Chief Financial Officer/Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Kit H. Tan, certify that:

 

1.I have reviewed this Annual Report Form 10-K for the fiscal year ended June 30, 2019 of Interdyne Company;

 

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.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financing reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f) for the registrant and have:

 

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.Designed such internal control over financing reporting, or caused such internal control over financing reporting to be designed under our 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 our 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;

 

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.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the 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.

 

Dated: September 6, 2019 By:  /s/ Kit H. Tan
    Kit H. Tan
    Chief Financial Officer/Principal Accounting Officer

EX-32 4 ex32.htm EXHIBIT 32

Exhibit 32

 

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Annual Report of Interdyne Company (the "Company") on Form 10-KSB for the fiscal year ending June 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certify, pursuant to and for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: September 6, 2019 By:  /s/ Sun Tze Whang
    Sun Tze Whang
    Chief Executive Officer

 

Dated: September 6, 2019 By:  /s/ Kit H. Tan
    Kit H. Tan
    Chief Financial Officer/Principal Accounting Officer

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Statements of Cash Flows - USD ($)
12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (31,135) $ (30,451)
Changes in operating assets and liabilities    
Due to related party 6,000 6,000
Accrued professional fees 1,000
Other accrued expenses (52) 1,469
Net cash used in operating activities (24,187) (22,982)
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment to related party (25) (25)
Net cash used in financing activities (25) (25)
NET DECREASE IN CASH (24,212) (23,007)
CASH, BEGINNING OF PERIOD 124,604 147,611
CASH, END OF PERIOD 100,392 124,604
Supplemental Cash Flow Disclosures    
Income taxes paid 800 800
Interest paid
Non-Cash Transactions    
Operation expenses paid by related party $ 25 $ 25
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Balance Sheets - USD ($)
Jun. 30, 2019
Jun. 30, 2018
CURRENT ASSETS    
Cash $ 100,392 $ 124,604
Total current assets 100,392 124,604
TOTAL ASSETS 100,392 124,604
CURRENT LIABILITIES    
Accrued professional fees 8,100 7,100
Due to related party 15,000 9,000
Other accrued expenses 3,742 3,819
Total current liabilities 26,842 19,919
STOCKHOLDERS' EQUITY    
Preferred stock, no par value, 50,000,000 shares authorized, 0 shares issued and outstanding
Common stock, no par value, 100,000,000 shares authorized, 39,999,942 shares issued and outstanding as of March 31, 2018 and June 30, 2018 500,000 500,000
Accumulated deficit (426,450) (395,315)
TOTAL STOCKHOLDERS' EQUITY 73,550 104,685
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 100,392 $ 124,604
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Nature of Business and Summary of Significant Accounting Policies (Policies)
12 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Nature of Business

Nature of Business - Interdyne Company (the "Company") was incorporated in October 1946 in the state of California. The Company is a dormant shell currently seeking new opportunities. On November 22, 1988, the Company filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California. On May 17, 1990, the Company’s Amended Plan of Reorganization (the “Plan”) was confirmed by Bankruptcy Court, and the Plan became effective May 29, 1990. On July 20, 1990, the Bankruptcy Court approved a stipulation for nonmaterial modifications to the Plan. All claims and interest have been settled in accordance with the terms of the Plan. On August 22, 1990, the Board of Directors approved a change in the Company’s year-end to June 30, pursuant to the Plan.

Basis of Preparation

Basis of Preparation – The accompanying financial statements have been prepared in accordance with generally accepted accounting principles used in the United States of America.

Related Party

Related Party – The Company follows ASC 850, “Related Party Disclosure”, for the identification of related parties and disclosure of related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.

Income Taxes

Income Taxes – The Company accounts for income taxes in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) codified within Accounting Standards Codification (“ASC”) Topic No. 740-10, Income Taxes. Deferred income taxes are recognized for the temporary differences between the tax basis of assets and liabilities and their financial reporting amounts. The Company assesses, on an annual basis, the realizability of its deferred tax assets. A valuation allowance for deferred tax assets is established if, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized.

Use of Estimates

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and the disclosure of contingent assets and liabilities. These estimates and assumptions are based on the Company’s historical results as well as management’s future expectations. The Company’s actual results may vary from those estimates and assumptions.

Net Loss Per Share

Net Loss per Share – The Company adopted ASC No. 260, “Earnings Per Share”, that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC No. 260, “Earnings Per Share”, any anti-dilutive effects on net income (loss) per share are excluded. The Company has no potentially dilutive securities outstanding for any years presented. Weighted average shares for computing net loss per share were 39,999,942 for each of the years presented.

Fair Value of Financial Instruments

Fair value of Financial Instruments - The Company applies the provisions of accounting guidance, FASB Topic ASC 825 that requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties.

Fair Value Measurement

Fair value Measurement – The Company’s financial instruments consist principally of cash, accrued professional fees, due to related party and other accrued expenses. ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments establish a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements.

Fair Value Hierarchy

Fair Value Hierarchy

 

The Company has categorized its financial instruments, based on the priority of inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

 

Financial assets and liabilities recorded on the balance sheet are categorized based on the inputs to the valuation techniques as follows:

 

Level 1   Financial assets and liabilities for which values are based on unadjusted quoted prices for identical assets or liabilities in an active market that management has the ability to access.

 

Level 2   Financial assets and liabilities for which values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (commodity derivatives and interest rate swaps). 

 

Level 3   Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

Recent Accounting Pronouncements

Recent Accounting Pronouncements – In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. In December 2017, January 2018, July 2018, December 2018 and March 2019, the FASB issued ASU 2017-13, ASU 2018-01, ASU 2018-10 & 11, ASU 2018-20 and ASU 2019-01, respectively, which contain modifications and improvements to ASU 2016-02. The amendments provide entities with an additional (and optional) transition method to adopt the new leases standard. Under the Optional Transition Method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.

 

The standard will be effective for the Company beginning July 1, 2019, with early adoption permitted. The Company plans to adopt the standard effective July 1, 2019. The Company does not expect adoption will have a material impact on the Company’s financial statements.

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Commitments and Contingencies (Details Narrative)
Mar. 31, 2017
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Santa Clara County property tax claim related to pre-1990 Chapter 11 filing, settled under Plan and unaccrued $ 8,023,807
XML 17 R10.htm IDEA: XBRL DOCUMENT v3.19.2
Commitments and Contingencies
12 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

4. COMMITMENTS AND CONTINGENCIES

 

In March 2017, the Company received a letter from the County of Santa Clara, California, which claimed that the Company is delinquent on its property taxes relating to tax year 1988/1989 in the amount of $80,238.07 including penalties which should be paid immediately. The Company believes that these property taxes were related to the period prior to the filing of the reorganization of the Company under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California on November 22, 1988 and the eventual confirmation of the Company’s Amended Plan of Reorganization (the “Plan”) by the Bankruptcy Court on May 17, 1990, and thus have been settled in accordance with the terms of the Plan and are therefore invalid. The Company has informed the County of Santa Clara that if it wants to assert its claim, it would have to petition to the Bankruptcy Court for relief. The Company does not recognize the said claim and therefore has not recorded any tax liabilities related to this claim. If the County of Santa Clara claim is adjudicated to be valid and the Company is liable, the tax liabilities imposed could have a material effect on the Company’s result of operations and financial position.

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Nature of Business and Summary of Significant Accounting Policies
12 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Nature of Business and Summary of Significant Accounting Policies

1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Business - Interdyne Company (the "Company") was incorporated in October 1946 in the state of California. The Company is a dormant shell currently seeking new opportunities. On November 22, 1988, the Company filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California. On May 17, 1990, the Company’s Amended Plan of Reorganization (the “Plan”) was confirmed by Bankruptcy Court, and the Plan became effective May 29, 1990. On July 20, 1990, the Bankruptcy Court approved a stipulation for nonmaterial modifications to the Plan. All claims and interest have been settled in accordance with the terms of the Plan. On August 22, 1990, the Board of Directors approved a change in the Company’s year-end to June 30, pursuant to the Plan.

 

Basis of Preparation – The accompanying financial statements have been prepared in accordance with generally accepted accounting principles used in the United States of America.

 

Related Party – The Company follows ASC 850, “Related Party Disclosure”, for the identification of related parties and disclosure of related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

 

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.

 

Income Taxes – The Company accounts for income taxes in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) codified within Accounting Standards Codification (“ASC”) Topic No. 740-10, Income Taxes. Deferred income taxes are recognized for the temporary differences between the tax basis of assets and liabilities and their financial reporting amounts. The Company assesses, on an annual basis, the realizability of its deferred tax assets. A valuation allowance for deferred tax assets is established if, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized.

 

  12  

 

 

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and the disclosure of contingent assets and liabilities. These estimates and assumptions are based on the Company’s historical results as well as management’s future expectations. The Company’s actual results may vary from those estimates and assumptions.

 

Net Loss per Share – The Company adopted ASC No. 260, “Earnings Per Share”, that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC No. 260, “Earnings Per Share”, any anti-dilutive effects on net income (loss) per share are excluded. The Company has no potentially dilutive securities outstanding for any years presented. Weighted average shares for computing net loss per share were 39,999,942 for each of the years presented.

 

Fair value of Financial Instruments - The Company applies the provisions of accounting guidance, FASB Topic ASC 825 that requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties.

 

Fair value Measurement – The Company’s financial instruments consist principally of cash, accrued professional fees, due to related party and other accrued expenses. ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments establish a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements.

 

Fair Value Hierarchy

 

The Company has categorized its financial instruments, based on the priority of inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

 

Financial assets and liabilities recorded on the balance sheet are categorized based on the inputs to the valuation techniques as follows:

 

Level 1   Financial assets and liabilities for which values are based on unadjusted quoted prices for identical assets or liabilities in an active market that management has the ability to access.

 

Level 2   Financial assets and liabilities for which values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (commodity derivatives and interest rate swaps). 

 

Level 3   Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

 

  13  

 

 

When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. The carrying amounts of cash, accrued professional fees and other accrued expenses approximate fair value because of the short-term nature of these items. Per ASC Topic 820 framework these are considered Level 3 inputs where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company.

 

It is not, however, practical to determine the fair value of amounts due to related party because the transactions cannot be assumed to have been consummated at arm’s length, the terms are not deemed to be market terms, there are no quoted values available for these instruments, and an independent valuation would not be practical due to the lack of data regarding similar instruments, if any, and the associated potential costs.

 

Recent Accounting Pronouncements – In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. In December 2017, January 2018, July 2018, December 2018 and March 2019, the FASB issued ASU 2017-13, ASU 2018-01, ASU 2018-10 & 11, ASU 2018-20 and ASU 2019-01, respectively, which contain modifications and improvements to ASU 2016-02. The amendments provide entities with an additional (and optional) transition method to adopt the new leases standard. Under the Optional Transition Method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.

 

The standard will be effective for the Company beginning July 1, 2019, with early adoption permitted. The Company plans to adopt the standard effective July 1, 2019. The Company does not expect adoption will have a material impact on the Company’s financial statements.

 

XML 20 R3.htm IDEA: XBRL DOCUMENT v3.19.2
Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2019
Jun. 30, 2018
Statement of Financial Position [Abstract]    
Preferred stock, par value
Preferred stock, shares authorized 50,000,000 50,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 39,999,942 39,999,942
Common stock, shares outstanding 39,999,942 39,999,942
XML 21 R12.htm IDEA: XBRL DOCUMENT v3.19.2
Related Party Transactions (Details Narrative) - USD ($)
12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Related Party Transactions [Abstract]    
Management fees to company officer $ 6,000 $ 6,000
Operation expenses paid by related party 25 25
Accrued management fees to related party $ 15,000 $ 9,000
XML 22 R5.htm IDEA: XBRL DOCUMENT v3.19.2
Statements of Stockholders' Equity - USD ($)
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Total
Beginning Balance, Shares at Jun. 30, 2017 39,999,942      
Beginning Balance, Value at Jun. 30, 2017 $ 500,000 $ (364,864) $ 135,136
Net Loss     (30,451) $ (30,451)
Ending Balance, Shares at Jun. 30, 2018 39,999,942     39,999,942
Ending Balance, Value at Jun. 30, 2018 $ 500,000 (395,315) $ 104,685
Net Loss     (31,135) $ (31,135)
Ending Balance, Shares at Jun. 30, 2019 39,999,942     39,999,942
Ending Balance, Value at Jun. 30, 2019 $ 500,000 $ (426,450) $ 73,550
XML 23 R1.htm IDEA: XBRL DOCUMENT v3.19.2
Document and Entity Information - USD ($)
12 Months Ended
Jun. 30, 2019
Sep. 06, 2019
Dec. 31, 2018
Document And Entity Information      
Entity Registrant Name INTERDYNE CO    
Entity Central Index Key 0000051011    
Current Fiscal Year End Date --06-30    
Entity Filer Category Non-accelerated Filer    
Document Type 10-K    
Document Period End Date Jun. 30, 2019    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Entity Common Stock, Shares Outstanding   39,999,942  
Entity's Reporting Status Current Yes    
Amendment Flag false    
Entity Small Business true    
Entitye Emerging Growth Company true    
Entity Extended Transition Period true    
Entity Well Known Season Issuer No    
Entity Shell Company? true    
Entity Voluntary Filer? No    
Public Float     $ 63,900
XML 24 R9.htm IDEA: XBRL DOCUMENT v3.19.2
Income Taxes
12 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

3. INCOME TAXES

 

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Act 2017”) resulting in significant modifications to existing law. The Company has considered the accounting impact of the effects of the Tax Act 2017 during the year ended June 30, 2018, including a reduction in the corporate tax rate from 34% to 21% among other changes.

 

Income taxes for the years ended June 30, 2019 and 2018 represent state minimum franchise tax of $800. The Company had net operating loss carryovers for federal income tax purposes totaling approximately $160,383 and $129,248, as of the years ended June 30, 2019 and 2018, respectively. The ultimate realization of such loss carryovers will be dependent on the Company attaining future taxable earnings. Based on the level of historical operating results and projections of future taxable earnings, management believes that it is more likely than not that the Company will not be able to utilize the benefits of these carryovers. The effective tax rates for the years ended June 30, 2019 and 2018 were 21%. As of June 30, 2019 and 2018, the Company had full valuation allowances recorded against the deferred tax assets of $33,680 and $27,142, respectively. If not utilized, the carryovers expire beginning in fiscal 2027.

 

The Company files income tax returns in the U.S. federal jurisdiction and in the state of California. With few exceptions, the Company is no longer subject to U.S. federal and state tax examinations by tax authorities for the years ending June 30, 2013  and earlier. According to Section 382 of the Internal Revenue Code of 1986, as amended, ownership changes may limit the amount of the NOL carry forwards that can be utilized annually to offset future taxable income and tax, respectively.

 

XML 25 R8.htm IDEA: XBRL DOCUMENT v3.19.2
Related Party Transactions
12 Months Ended
Jun. 30, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

2. RELATED PARTY TRANSACTIONS

 

An officer of the Company charged a management fee totaling $6,000 for each of the years ended June 30, 2019 and 2018 for the use of a home office, accounting and other services. During the years ended June 30, 2019 and 2018, the officer also paid operating expense of $25 and $25, respectively, on behalf of the Company to support the Company’s operation and these payments were fully reimbursed to him. The balance due to this officer was $15,000 and $9,000 as of June 30, 2019 and 2018, respectively. The amounts due to this officer are unsecured, bearing no interest and are repayable on demand.

XML 26 R4.htm IDEA: XBRL DOCUMENT v3.19.2
Statements of Operations - USD ($)
12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
OPERATING EXPENSES    
Professional fees $ 15,625 $ 14,625
General and administrative 8,710 9,026
Management fees to related party 6,000 6,000
Total expenses 30,335 29,651
OPERATING LOSS (30,335) (29,651)
LOSS BEFORE INCOME TAXES (30,335) (29,651)
INCOME TAX EXPENSE (800) (800)
NET LOSS $ (31,135) $ (30,451)
NET LOSS PER COMMON SHARE    
BASIC AND DILUTED $ (0.00) $ (0.00)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING    
BASIC AND DILUTED 39,999,942 39,999,942
XML 27 R13.htm IDEA: XBRL DOCUMENT v3.19.2
Income Taxes (Details Narrative) - USD ($)
12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]    
Corporate tax rate 21.00%  
State franchise tax $ 800  
Net operating loss carry forwards 160,383 $ 129,248
Valuation allowance $ 33,680 $ 27,142
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