Notes
to Condensed Financial Statements
As
of April 30, 2016 and July 31, 2015
(Stated
in U.S. Dollars)
Nimtech
Corp (the “Company”) is a for profit corporation established under the corporation laws in the State of Nevada, United
States of America on February 4, 2014.
The
financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United
States of America and are presented in US dollars. The financial statements and related disclosures as of April 30, 2016 are reviewed
pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”).
Unless
the context otherwise requires, all references to “Nimtech Corp,” “we,” “us,” “our”
or the “company” are to Nimtech Corp and any subsidiaries.
2.
|
BASIS
OF PRESENTATION AND GOING CONCERN
|
Basis
of Presentation
The
financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”).
The
statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission
(the "SEC"). Accordingly, certain information and footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. These financial
statements should be read in conjunction with the financial statements and other information included in the Company's Annual
Report on Form 10-Q for the quarter ended April 30, 2016 as filed with the SEC.
Going
Concern
The
accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern. For
the period ended April 30, 2016, the Company had accumulated deficits of $34,900. 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
plans to fund operations of the Company through the proceeds from an offering pursuant to a Registration Statement on Form S-1
or private placements of restricted securities or the issuance of stock in lieu of cash for payment of services until such a time
as profitable operations are achieved. There are no written agreements in place for such funding or issuance of securities and
there can be no assurance that such will be available in the future. Management believes that this plan provides an opportunity
for the Company to continue as a going concern.
The
failure to achieve the necessary levels of profitability or obtain the additional funding would be detrimental to the Company.
Nimtech
Corp
Notes
to Condensed Financial Statements
As
of April 30, 2016 and July 31, 2015
(Stated
in U.S. Dollars)
Development
Stage Company
The
Company is a development stage company as defined by section 915-10-20 of the FASB Accounting Standards Codification
and among the additional disclosures required as a development stage company are that its financial statements were
identified as those of a development stage company, and that the statements of operations, stockholders' deficit
and cash flows disclosed activity since the date of its inception (February 4, 2014) as a development stage company Although
the Company has recognized nominal amounts of revenue, it is still devoting substantially all
of its efforts on establishing the business. All losses accumulated since Inception (February
4, 2014) have been considered as part of the Company's development stage activities. Effective June 10, 2014 FASB changed its
regulations with respect to Development Stage Entities and these additional disclosures are no longer required for annual reporting
periods beginning after December 15, 2014 with the option for entities to early adopt these new
provisions. The Company has elected to early adopt these provisions and consequently these additional disclosures are not
included in these financial statements.
3.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
Use
of Estimates and Assumptions
The
preparation of financial statements in conformity with generally accepted accounting principles 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 period. Actual results could
differ from those estimates.
Due
to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption
that the Company is a going concern.
Cash
and Cash Equivalents
The
Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Fair
Value of Financial Instruments
ASC
825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about
financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring
fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value
estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of April
30, 2016.
The
respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial
instruments include cash, accrued liabilities and notes payable. Fair values were assumed to approximate carrying values
for these financial instruments since they are short term in nature and their carrying amounts approximate fair value.
Nimtech
Corp
Notes
to Condensed Financial Statements
As
of April 30, 2016 and July 31, 2015
(Stated
in U.S. Dollars)
Revenue
Recognition
The
Company will recognize revenue in accordance with Accounting Standards Codification No. 605, “Revenue Recognition”
("ASC-605"). ASC-605 requires that four basic criteria must be met before revenue can be recognized:
1.
Persuasive evidence of an arrangement exists
2.
Delivery has occurred
3.
The selling price is fixed and determinable
4.
Collectability is reasonably assured.
Determination
of criteria (3) and (4) are based on management's judgment regarding the fixed nature of the selling prices of the products delivered
and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances,
or other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for
which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine
that the product has been delivered or no refund will be required.
Income
Taxes
Income
taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets
and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities
and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred
tax assets that, based on available evidence, are not expected to be realized.
Recent
Accounting Pronouncements
The
Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s
results of operations, financial position or cash flow.
Comprehensive
Income
Comprehensive
income consists of net income and other gains and losses affecting stockholders’ equity that, under U.S. GAAP, are excluded
from net income. There was no recorded comprehensive income or loss for the three-months periods ended April 30, 2016 and 2015.
Nimtech
Corp
Notes
to Condensed Financial Statements
As
of April 30, 2016 and July 31, 2015
(Stated
in U.S. Dollars)
Basic
and Diluted Net Loss Per Share
Our
computation of earnings per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss)
available to common stockholders divided by the weighted average common shares outstanding for the period. Diluted income (loss)
per share reflects the potential dilution, using the treasury stock method, that could occur if securities or other contracts
to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared
in the income (loss) of the Company as if they had been converted at the beginning of the periods presented, or issuance date,
if later. In computing diluted income (loss) per share, the treasury stock method assumes that outstanding options and warrants
are exercised and the proceeds are used to purchase common stock at the average market price during the period. Options and warrants
may have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period
exceeds the exercise price of the options and warrants. Potential common shares that have an anti-dilutive effect (i.e., those
that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.
Income
(loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding
during the respective periods. Basic and diluted (loss) per common share is the same for periods in which the company reported
an operating loss because all warrants and stock options outstanding are anti-dilutive.
There
were no adjustments to net loss required for purposes of computing diluted earnings per share.
For
the nine-month periods ended April 30, 2016 and 2015, there were no potential dilutive securities.
Recently
Issued Accounting Pronouncements
In
June 2014, the FASB issued
ASU
2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements”. ASU 2014-10
eliminates the distinction of a development stage entity and certain related disclosure requirements, including the elimination
of inception-to-date information on the statements of operations, cash flows and stockholders' equity. The amendments in ASU 2014-10
will be effective prospectively for annual reporting periods beginning after December 15, 2014, and interim periods within those
annual periods, however early adoption is permitted. The Company adopted ASU 2014-10 during the quarter ended June 30, 2014, thereby
no longer presenting or disclosing any information required by Topic 915.
On
August 27, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-15, “Disclosures
of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which provides guidance on determining
when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform
interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial
statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s
ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December
15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of adopting
ASU 2014-15 on its results of operations or financial condition.
Other
accounting pronouncements did not or are not believed by management to have a material impact on the Company’s present or
future financial statements.
Nimtech
Corp
Notes
to Condensed Financial Statements
As
of April 30, 2016 and July 31, 2015
(Stated
in U.S. Dollars)
4.
|
RELATED
PARTY TRANSACTIONS
|
The
director of the Company provides services free of charge. The Company's sole officer and director is involved in other business
activities and may in the future, become involved in other business opportunities as they become available.
As
of February 29, 2016, the Company’s former stockholders provided net advances of $17,387 to finance the Company’s
working capital requirements. The Company underwent a change of control in February 29, 2016, which the majority ownership was
transferred to a new majority shareholder. The former shareholder offset $9,318 asset with advances from former shareholder forgave
the rest $8,069 advances at the date of the transfer, and the Company recognized a one-time gain of $8,069 which is included as
other income in the Company’s results of operations during the nine-month period ended April 30, 2016. The former shareholder
also took responsibility to either deliver goods or repay customers deposits; accordingly, the Company has written off the amounts
owed as customer deposits to other income.
As
of April 30, 2016, there were no advances from the current shareholder.
The
Company has evaluated subsequent events from April 30, 2016 through the date the financial statements were available to be issued.
There was no subsequent event at the report date.