Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
Intelligent
Cloud Resources Inc. (the “Company”) was incorporated on March 27, 2014 in the state of Nevada. The Company is engaged
in providing IT solutions, Cloud based and telecommunication services
.
The
Company’s principal place of business is located at 6418 Ambrosia Dr., #5301, San Diego, CA, 92124.
These financial statements have been prepared
assuming the Company will continue on a going concern basis. The Company has incurred losses since inception and has not yet established
a history of revenue producing activities which raises substantial doubt about its ability to continue as a going concern. The
ability of the Company to continue as a going concern depends upon its ability to develop profitable operations and to continue
to raise adequate financing. In order for the Company to meet its liabilities as they become due and to continue its operations,
the Company is solely dependent upon its ability to generate such financing.
There
can be no assurance that the Company will be able to continue to raise funds, in which case the Company may be unable to meet
its obligations. Should the Company be unable to realize its assets and discharge its liabilities in the normal course of business,
the net realizable value of its assets may be materially less than the amounts recorded in these financial statements.
These
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts
and classification of liabilities that might be necessary should the Company be unable to continue in existence.
|
3.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
Basis
of Presentation
The
Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America (“US GAAP”) and are expressed in US dollars.
The
Company’s fiscal year-end is December 31. The Company’s functional currency is Canadian (“CDN”) dollars.
The Company’s reporting currency is the U.S. dollar.
Use
of Estimates
The
preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting periods. Areas involving significant estimates
and assumptions include accruals, going concern assessment and valuation allowance for deferred tax asset. These estimates are
reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become
known. Actual results could materially differ from those estimates.
INTELLIGENT
CLOUD RESOURCES INC.
Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
3.
|
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(continued)
|
Earnings
(Loss) Per Share
The
Company has adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”)
Topic 260-10 which provides for calculation of “basic” and “diluted” earnings per share. Basic earnings
per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted
average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities
that could share in the earnings of an entity. Diluted earnings per share exclude all potentially dilutive shares if their effect
is anti-dilutive. There were no potentially dilutive shares outstanding as at December 31, 2016.
Revenue Recognition
The Company recognizes revenue on arrangements
when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability
is reasonably assured.
Valuation
of Derivatives
The
Company evaluates its convertible instruments, options, warrants or other contracts to determine if those contracts or embedded
components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and
Hedging.” The result of this accounting treatment is that the fair value of the derivative is marked-to-market each balance
sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value
is recorded in the statement of operations as other income (expense). Upon conversion or exercise of a derivative instrument,
the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments
that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liabilities
at the fair value of the instrument on the reclassification date. We analyzed the derivative financial instruments in accordance
with ASC 815. The objective is to provide guidance for determining whether an equity-linked financial instrument is indexed to
an entity’s own stock. This determination is needed for a scope exception which would enable a derivative instrument to
be accounted for under the accrual method. The classification of a non-derivative instrument that falls within the scope of ASC
815-40-05 “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own
Stock” also hinges on whether the instrument is indexed to an entity’s own stock. A non-derivative instrument that
is not indexed to an entity’s own stock cannot be classified as equity and must be accounted for as a liability. There is
a two-step approach in determining whether an instrument or embedded feature is indexed to an entity’s own stock. First,
the instrument's contingent exercise provisions, if any, must be evaluated, followed by an evaluation of the instrument's settlement
provisions. The Company utilized multinomial lattice models that value the derivative liability based on a probability weighted
discounted cash flow model. The Company utilized the fair value standard set forth by the Financial Accounting Standards Board,
defined as the amount at which the assets (or liability) could be bought (or incurred) or sold (or settled) in a current transaction
between willing parties, that is, other than in a forced or liquidation sale.
The
derivative liabilities result in a reduction of the initial carrying amount (as unamortized discount) of the Convertible Notes.
This derivative liability is marked-to-market each quarter with the change in fair value recorded in the income statement. Unamortized
discount is amortized to interest expense using the effective interest method over the life of the Convertible Note.
INTELLIGENT
CLOUD RESOURCES INC.
Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
3.
|
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(continued)
|
Fair
Value of Financial Instruments
The
Company includes fair value information in the notes to financial statements when the fair value of its financial instruments
is different from the book value. When the book value approximates fair value, no additional disclosure is made
The
Company’s financial instruments consist of cash, due from/to a shareholder, due from/to a related party, accounts payable,
accrued liabilities and convertible debt. The estimated fair value of cash, accounts payable and accrued liabilities approximate
their carrying amounts due to the short-term nature of these instruments.
The
Company utilizes various types of financing to fund its business needs, including convertible debt. The Company reviews its conversion
features of securities issued as to whether they are freestanding or contain an embedded derivative and, if so, whether they are
classified as a liability at each reporting period until the amount is settled and reclassified into equity with changes in fair
value recognized in current earnings. At December 31, 2016, the Company had convertible debt. The fair value of the embedded conversion
feature of the convertible debt is classified as a liability. Some of these units have embedded conversion features that are treated
as a discount on the notes. Such financial instruments are initially recorded at fair value and amortized to interest expense
over the life of the debt using the effective interest method.
Accounting
Standards Codification Topic 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value,
establishes a framework for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities.
ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit
price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that
may be used to measure fair value:
●
|
Level
1 – Valuation based on quoted market prices in active markets for identical assets or liabilities.
|
|
|
●
|
Level
2 – Valuation based on quoted market prices for similar assets and liabilities in active markets.
|
|
|
●
|
Level
3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management’s
best estimate of what market participants would use as fair value.
|
INTELLIGENT
CLOUD RESOURCES INC.
Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
3.
|
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(continued)
|
Fair
Value of Financial Instruments
(continued)
In
instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy,
the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input
that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular
input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.
The Company’s derivative liability is measured at fair value on a recurring basis. The Company classifies the fair value
of these convertible notes and derivative liability under level three.
Fair
value estimates discussed herein are based upon certain market assumptions and pertinent information available to management.
The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term
nature of these instruments or interest rates that are comparable to market rates. These financial instruments include due to
shareholder and related party. The Company's cash, which is carried at fair value, is classified as a Level 1 financial instruments.
The accounts are maintained with financial institutions of reputable credit, therefore, bear minimal credit risk.
Foreign
Currency Translation
The
Company’s functional currency is the Canadian dollar (“CDN”). The Company translates from the functional
currency to U.S. dollars using the current rate method in accordance with FASB ASC 830. The Company uses the U.S. dollar as its
reporting currency for consistency with registrants of the Securities and Exchange Commission and in accordance with FASB ASC
830.
Transactions
undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as
of the transaction date. Any exchange gains and losses would be included in other income (expenses) on the Statement of Operations.
Comprehensive
Income (Loss)
ASC
220 “Comprehensive Income” established standards for reporting and display of comprehensive income, its components
and accumulated balances. The Company is disclosing this information on its statement of operations and comprehensive loss. Comprehensive
income comprised equity except for those transactions resulting from investments by owners and distribution to owners.
Cash
Cash,
includes deposits in banks which are unrestricted as to withdrawal or use.
INTELLIGENT
CLOUD RESOURCES INC.
Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
3.
|
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(continued)
|
Income
taxes
The
Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets
and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax
returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and
tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the temporary differences are
expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance to the extent management concludes
it is more likely than not that the assets will not be realized. The effect on deferred tax assets and liabilities of a change
in tax rates is recognized in income in the period that includes the enactment date.
The
Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”) with regards
to uncertainty in income taxes. Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be
claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the
tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination
by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements
from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of
being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest
and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments
to its assets and/or liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25.
Recently
issued Accounting Pronouncements
The
Company adopted the accounting pronouncement issued by the Financial Accounting Standards Board ("FASB") to update guidance
on how companies account for certain aspects of share-based payments to employees. This pronouncement is effective for fiscal
years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. This guidance
requires all income tax effects of awards to be recognized in the consolidated income statement when the awards vest or are settled
and changes the presentation of excess tax benefits on the consolidated statement of cash flows.
The
Company adopted these provisions on a prospective basis. In addition, this pronouncement changes guidance on: (a) accounting for
forfeitures of share-based awards and (b) employers’ accounting for an employee’s use of shares to satisfy the employer’s
statutory income tax withholding obligation. The adoption of this pronouncement did not have a material impact on the consolidated
financial position and/or results of operations.
INTELLIGENT
CLOUD RESOURCES INC.
Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
3.
|
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(continued)
|
Recently
issued Accounting Pronouncements
(continued)
In
February 2016, an accounting pronouncement was issued by the FASB to replace existing lease accounting guidance. This pronouncement
is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding
lease liabilities on the balance sheet for most leases. Expenses associated with leases will continue to be recognized in a manner
similar to current accounting guidance. This pronouncement is effective for annual and interim periods beginning after December
15, 2018, with early adoption permitted. The adoption is required to be applied on a modified retrospective basis for each prior
reporting period presented. The Company has not yet determined the effect that the adoption of this pronouncement may have on
the consolidated financial position and/or results of operations.
On
January 1, 2016, the Company adopted the accounting pronouncement issued by the FASB which eliminates the requirement that an
acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize
a measurement-period adjustment during the period in which it determines the amount of the adjustment. The adoption of this pronouncement
did not have a material impact on the consolidated financial position and/or results of operations.
On
January 1, 2016, the Company adopted the accounting pronouncement issued by the FASB to update the guidance related to the presentation
of debt issuance costs. This guidance requires debt issuance costs, related to a recognized debt liability, be presented in the
balance sheet as a direct deduction from the carrying amount of the related debt liability rather than being presented as an asset.
The Company adopted this pronouncement on a retrospective basis, and the adoption did not have a material impact on the consolidated
financial position and/or results of operations.
In
November 2015, an accounting pronouncement was issued by the FASB to simplify the presentation of deferred income taxes within
the balance sheet. This pronouncement eliminates the requirement that deferred tax assets and liabilities are presented as current
or noncurrent based on the nature of the underlying assets and liabilities. Instead, the pronouncement requires all deferred tax
assets and liabilities, including valuation allowances, be classified as noncurrent. This pronouncement is effective for fiscal
years beginning after December 15, 2016, with early adoption permitted. The Company intends to adopt this pronouncement on January
1, 2017, and the adoption will not have a material impact on the consolidated financial position and/or results of operations.
INTELLIGENT
CLOUD RESOURCES INC.
Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
|
4.
|
CONVERTIBLE
PROMISSORY NOTES
|
In
December 2015, the Company entered into convertible promissory note agreements (the “Agreements”) with certain investors
(referred to as the "the Holders" or “Mini Investors”), whereby the Company issued Convertible Notes (the
“Convertible Notes" or “Notes”) in various principal amounts. The notes bear an interest rate of 10% per
annum. Under the convertible note agreements, the lender has the right to convert all or any part of the outstanding and
unpaid principal and interest into shares of the Company’s common stock; provided however, that in no event shall the lender
be entitled to convert any portion of the notes that would result in the beneficial ownership by it and its affiliates to be more
than 9.99% of the outstanding shares of the Company's common stock.
The
key terms/features of the Mini Investors Convertible Notes are as follows:
|
1.
|
The
Holders have the right from and after the date of issuance, and until any time until
the Notes are fully paid, to convert any outstanding and unpaid principal portion of
the Notes, and accrued interest (10% rate), into fully paid and non–assessable
shares of Common Stock (par value $.0001).
|
|
2.
|
The
Notes are convertible at a fixed conversion price of $0.50 or upon default, the lessor
of fixed conversion price $0.25 and 100% of 10 trading day low VWAP (default condition).
|
|
3.
|
Beneficial
ownership is limited to 4.99% initially and upon the Holders request to 9.99%.
|
|
4.
|
The
Notes may be prepaid in whole or in part, at any time during the period beginning on
the issue date and ending on the date which is maturity, beginning at 100% of the outstanding
principal, accrued interest and certain other amounts that may be due and owing under
the Notes.
|
|
5.
|
In
the event of default the Convertible Notes bear interest at 10% per annum and a 0% penalty
rate.
|
These Convertible Notes, together with interest
accrued on these notes aggregating $102,131, were converted into 633,332 shares of the Company on September 30, 2016. The fair
value of the shares was determined to be $253,333 resulting in a loss of $151,202 during 2016.
Outstanding
convertible promissory notes as at December 31, 2015 and December 31, 2016 are as follows:
Promissory
notes issued during 2015
|
|
$
|
95,000
|
|
Discount
recognized due to embedded derivatives
|
|
|
(2,467
|
)
|
Accretion
on notes during the year ended December 31, 2015
|
|
|
36
|
|
Accreted
value of notes as at December 31, 2015
|
|
|
92,569
|
|
Accretion
on notes during the year ended December 31, 2016
|
|
|
2,431
|
|
Notes
converted during the year ended December 31, 2016
|
|
|
(95,000
|
)
|
Accreted
value of notes as at December 31, 2016
|
|
|
-
|
|
The
embedded conversion features and reset feature in the notes were accounted for as a derivative liability based on FASB guidance
(also refer note 5).
INTELLIGENT
CLOUD RESOURCES INC.
Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
4.
|
CONVERTIBLE PROMISSORY NOTES
(continued)
|
The
details of the convertible promissory notes issued are as follows:
Issue date
|
|
Maturity date
|
|
Note
amount
$
|
|
|
Interest rate per annum
|
|
|
Conversion rate
|
December 8, 2015
|
|
May 8, 2017
|
|
|
25,000
|
|
|
|
10
|
%
|
|
Fixed conversion price $0.50; or lessor of fixed conversion price $0.25 and 100%
of 10 TD low VWAP (default condition)
|
December 30, 2015
|
|
May 31, 2017
|
|
|
70,000
|
|
|
|
10
|
%
|
|
Fixed conversion price $0.50 or lessor of fixed conversion
price $0.25 and 100% of 10 TD low VWAP (default condition)
|
|
|
|
|
|
95,000
|
|
|
|
|
|
|
|
Interest expense for the year ended December
31, 2016 recognized on these convertible promissory notes amounts to $7,131 included in other expenses in the statements of operations.
The interest payable was also converted, together with the principal, into shares of the Company on September 30, 2016. Total
of $102,131 converted into 633,332 common shares.
Loss on conversion of the notes amounts to
$151,202 included in other expenses in the statements of operations. And change in fair value of the derivative liability due
on conversion amounts to $2,578 is written off to other expenses in the statements of operations
|
5.
|
DERIVATIVE
LIABILITIES
|
Debt
or equity instruments may contain embedded derivative instruments, such as embedded derivative features which in certain circumstances
may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative instrument liability.
The fair
value of the Convertible Notes embedded derivatives as of issuance, conversion, redemption, and the valuation date December 31,
2016 are:
Issue/valuation date
|
|
Dec 31, 2015
|
|
|
Dec 31, 2016
|
|
Notes face value
|
|
$
|
95,000
|
|
|
$
|
-
|
|
Derivative value on issuance
|
|
|
2,578
|
|
|
|
-
|
|
Change in fair value during the period
|
|
|
|
|
|
|
(2,578
|
)
|
INTELLIGENT
CLOUD RESOURCES INC.
Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
|
5.
|
DERIVATIVE
LIABILITIES
(continued)
|
A
multinomial lattice model was used to value the convertible notes and the embedded derivative liabilities at issuance and period
end date, using the following assumptions:
Assumptions
|
|
December 31, 2015
|
|
Dividend yield
|
|
|
0.00
|
%
|
Risk-free rate for term
|
|
|
0.65
|
%
|
Volatility
|
|
|
182.5
|
%
|
Maturity dates
|
|
|
1.35-1.42 years
|
|
Stock Price
|
|
|
0.046
|
|
COMMON
STOCK - AUTHORIZED
As at December 31, 2016, the Company is authorized
to issue 100,000,000 shares of common stock, with par value of $0.001.
Effective August 31, 2016, the Board of Directors
and Shareholders of the Company approved a Certificate of Amendment to its Articles of Incorporation for a 1:15 forward split.
As a result, the issued and outstanding shares of common stock of the Company increased from 6,000,000 shares prior to the Forward
Split to 90,000,000 shares following the Forward Split. All share and per share amounts herein have been retroactively restated
from the earliest period presented, to reflect the effect of the forward split.
COMMON
STOCK - ISSUED AND OUTSTANDING
During the year ended December 31, 2016, the
Company issued:
|
–
|
633,332
shares of common stock to holders of convertible notes on conversion of the notes; and
|
|
–
|
233,333
shares to third party for cash consideration of $35,000; and
|
|
–
|
1,412,662
shares of common stock for $213,619 cash to investors in a private placement. This included 133,334 shares that were issued
during the year ended December 31, 2016 against checks received but deposited in January 2017.
|
At December 31, 2016, there were 92,279,327
shares of common stock issued and outstanding (December 31, 2015 - 90,000,000).
At December 31, 2016, the Company also received
cash of $14,978 for which shares have not yet been issued. This amount is included in cash advances as a current liability until
the Company receives subscription agreements and the terms of the advance are agreed to.
|
7.
|
RELATED
PARTY TRANSACTIONS AND BALANCES
|
Transactions
are considered to be related party transactions if management has the ability to exercise significant control through its ownership
of shares and presence on the board of directors. Transactions with related parties are in the normal course of operations and
are recorded at the exchange amount, which is the amount of consideration established and agreed upon by the related parties.
The amounts due to shareholders and other related party are unsecured, non-interest bearing and are payable on demand.
During the year December 31, 2016, the
Company repaid $4,849 due to shareholder advance. As of December 31, 2016, there was no balance owing to shareholders (2015: $4,849).
During the year December 31, 2016, the Company repaid $980 due to related party. As of December 31, 2016, there was no balance
owing to related parties (2015: $980)
As of February 2017, Christopher Pay
has been appointed Director of the Company. Christopher Pay is also the CEO of Mobile Lads. Prepaid expenses of $90,090 and advertising
and promotion expenses of $55,548 relate to payments made to Mobile Lads during the fiscal year December 31, 2016. There were no
payments to Mobile lads during the fiscal year December 31, 2015
Salaries and wages charged by stockholders
as consideration for their services as CEO and CFO for the year ended December 31, 2015, amounted to $60,000 and for year ended
December 31, 2016, amounted to $78,000
There is no rent paid and rent is offered
for free by the CEO of the Company.
INTELLIGENT
CLOUD RESOURCES INC.
Notes
to the Financial Statements
For the
year ended December 31, 2016
(Expressed
in United States Dollars)
Income
taxes
The
provision for income taxes differs from that computed at the Canadian and US combined corporate tax rate of approximately 33%
for the year ended December 31, 2016 (Canadian and US corporate tax rate for the year ended December 31, 2015 - 33%) as follows:
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Net
Loss for the year
|
|
$
|
358,984
|
|
|
$
|
107,100
|
|
Expected
Income Tax recovery
|
|
|
125,644
|
|
|
|
37,485
|
|
Tax
effect of expenses not deductible for income tax
|
|
|
-
|
|
|
|
-
|
|
Change
in derivative liabilities
|
|
|
902
|
|
|
|
-
|
|
Loss
on conversion of debt
|
|
|
(52,921
|
)
|
|
|
-
|
|
Amortization
of debt discount
|
|
|
(851)
|
|
|
|
-
|
|
Change
in valuation allowance
|
|
|
(72,775
|
)
|
|
|
(37,485
|
)
|
Deferred
tax assets, net of valuation allowance
|
|
|
-
|
|
|
|
-
|
|
Deferred
tax assets
Deferred
taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating
loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences
are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced
by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred
tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates
on the date of enactment.
Net
deferred tax assets consist of the following components as of December 31, 2016:
Deferred Tax Assets - Non-current:
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Tax effect of NOL Carryover
|
|
$
|
115,059
|
|
|
$
|
42,284
|
|
|
|
|
|
|
|
|
|
|
Less valuation allowance
|
|
|
(115,059
|
)
|
|
|
(42,284
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
tax assets, net of valuation allowance
|
|
$
|
-
|
|
|
$
|
-
|
|
At December 31, 2016, the Company had net
operating loss carryforwards of approximately $328,740 (2015: $120,811) that may be offset against future taxable income from
the year 2017 to 2037. No tax benefit has been reported in the December 31, 2016 financial statements since the potential tax
benefit is offset by a valuation allowance of the same amount.