NOTES TO THE FINANCIAL STATEMENTS
April 30, 2016
Note 1: Organization and Basis of Presentation
Gold Dynamics Corp. (the “Company”) is a for
profit corporation established under the corporation laws in the State of Nevada, United States of America on April, 2006.
The Company's primary operations began in April 2006 with
an e-commerce focus and intends to become a producer of vitamin infused alcoholic beverages. As part of the change in operations,
the Company has undergone a name change from Revo Ventures Inc. to Vita Spirits Corp to Gold Dynamics Corp. to better reflect the
Company's new focus.
The Financial Statements and related disclosures as of October
31, 2015 are unaudited pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”).
The October 31, 2015, Balance Sheet data was derived from unaudited financial statements and does not include all disclosures required
by accounting principles generally accepted in the United States of America (“U.S.”). Certain information and footnote
disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles
(“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, these financial
statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results
for the period. These financial statements should be read in conjunction with the financial statements included in our Quarterly
Report for the period ended April 30, 2016. Unless the context otherwise requires, all references to “Gold Dynamics,”
“we,” “us,” “our” or the “company” are to Gold Dynamics Corp. and any subsidiaries.
The Company’s fiscal year ends July 31.
Note 2: Recent Accounting Pronouncements
In December 2011, the FASB issued ASU 2011-11, Disclosures
about Offsetting Assets and Liabilities, (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose both gross information
and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments
and transactions subject to an agreement similar to a master netting arrangement. ASU 201111 is effective for annual reporting
periods beginning on or after January 1, 2013, and interim periods within those annual periods. Retrospective disclosure is required
for all comparative periods presented. The adoption of ASU 2011-11 did not have a material impact on the Company’s financial
statements.
In October 2012, the FASB issued ASU No. 2012-04, Technical
Corrections and Improvements, (“ASU 2012-04”). This update includes source literature amendments, guidance clarification,
reference corrections and relocated guidance affecting a variety of topics in the Codification. The update also includes conforming
amendments to the Codification to reflect ASC 820’s fair value measurement and disclosure requirements. The amendments in
this update that will not have transition guidance are effective upon issuance. The amendments in this update that are subject
to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04
did not have a material impact on the Company’s financial statements.
In January 2013, the FASB issued ASU No. 2013-01, Balance
Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”). This
update clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, Balance Sheet (Topic
210): Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). Specifically, ASU 2011-11 applies only to
derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions
that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification or subject
to a master netting arrangement or similar agreement. The Company is required to apply the amendments in ASU 2013-01 beginning
January 1, 2013. The adoption of ASU 2013-01 by the Company did not have a material impact on the consolidated financial statements.
In February 2013, the Financial Accounting Standards Board
issued Accounting Standards Update, or ASU, 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive Income. This update requires companies to provide information regarding the amounts reclassified
out of accumulated other comprehensive income by component. In addition, companies are required to present, either on the face
of the statement where net income is presented or in the accompanying notes, significant amounts reclassified out of accumulated
other comprehensive income by the respective line items of net income. ASU 2013-02 is effective for annual reporting periods beginning
on or after December 15, 2012, and interim periods within those annual periods. ASU 2013-02 was adopted January 1, 2013 and did
not have a significant impact on our financial statements.
Note 3: Commitments and Contingencies
The Company neither owns nor leases any real or personal
property, an officer has provided office services without charge. Such costs are immaterial to the financial statements and accordingly
are not reflected herein. The officer and director are involved in other business activities and most likely will become involved
in other business activities in the future.
Note 4: Legal Matters
The Company has no known legal issues pending.
Note 5: Related Party Transactions
An officer has loaned the Company $15,937 on August 1, 2009,
without a fixed term of repayment and no interest.
Note 6: Capital Stock
On July 14, 2006, the Company sold 5,000,000 common shares
at $0.001 per share to the sole director of the Company for total proceeds of $5,000.
On May 6, 2007, the Company sold 2,100,000 common shares
pursuant to a registration statement at $0.01 per share for total proceeds of $21,000.
On April 22, 2008, the Company approved a forward split of
a 15 for 2 forward stock split to the stockholders of record as of April 23, 2008. The Company increased the authorized shares
from 50,000,000 to 75,000,000. The Company did not change the par value of the shares. All references to share value in these financial
statements have been restated to reflect this split. Subsequent to the forward split, the Company had 53,250,000 common shares
issued and outstanding.
On November 12, 2009, the Company sold 4,000,000 common shares
at $ 0.0125 per share to an investor for total proceeds of $50,000.
On December 15, 2009, the Company authorized a Forward Stock
Split of issued and outstanding Common Stock on a 2.6 for one (2.6:1) basis. As a result of the Forward Stock Split, the Company
increased its issued and outstanding shares of Common Stock to 148,850,000.
The number of shares outstanding of the Registrant's common
stock, par value $.001 per share, at April 30, 2016 was 148,850,000 shares.
As of April 30, 2016 there were no outstanding stock options
or warrants.
Note 7: Income Taxes
The company has not commenced operations and has not generated
any revenue and has not made a provision for income taxes.
The Company’s statutory tax rate is 35%.
The Company does not have any material uncertainties with
respect to its provisions for income taxes.
Note 8: Going Concern
The accompanying financial statements and notes have been
prepared assuming that the Company will continue as a going concern.
The Company’s ability to continue as a going concern
is dependent upon the Company’s ability to generate sufficient revenues to operate profitably or raise additional capital
through debt financing and/or through sales of common stock.
Management has no formal plan in place to address these concerns,
but believes that the Company will be able to obtain additional funds through equity financing and/or related party advances.
The failure to achieve the necessary levels of profitability
or obtain the additional funding would be detrimental to the Company.