NOTES
TO FINANCIAL STATEMENTS
APRIL
30, 2003
NOTE
1 - SIGNIFICANT ACCOUNTING POLICIES
Organization
and Operations
The
Company was incorporated under the laws of the State of Nevada on
February 3, 1999 with authorized common stock of
200,000,000 shares at $0.001 par value.
The
Company was organized formerly for the purpose of establishing a
multimedia internet bases communication
network between the healthcare industry manufacturers and the key
bas managers in the medical field to advertise and
promote the manufacturers products.
As of
March 26, 2002, the Company as a result of it abandonment of its
patent rights and termination of its previous
consulting agreements, will not pursue its previous business plan
involving multimedia internet bases. The
company intends to engage in internet related business ventures.
On
March 26, 2002, pursuant to the "Stock Exchange and Merger
Agreement" the Company
consummated a "reverse acquisition" and changed its name
to Gold Entertainment Group, Inc.
Basis
of Accounting
The
Company's policy is to prepare its financial statements using the
accrual basis of accounting in accordance
with generally accepted accounting principles. The Company has
elected January 31 at its annual year-end.
Interim
Financial Information
The
condensed unaudited interim financial statements included herein have
been prepared without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. The condensed
financial statements and notes are presented as permitted on Form
10-SB and do not contain information included in the Company's annual
statements and notes. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to such rules and
regulation, although the Company believes that the disclosures are
adequate to make the information presented not misleading. It is
suggested that these condensed financial statements be read in
conjunction with the January 31, 2003 audited financial statements
and the accompanying notes thereto. While management believes the
procedures followed in preparing these condensed financial
statements are reasonable, the accuracy of the amounts are in some
respect dependent upon the facts that will exist, and procedures that
will be accomplished by the Company later in the year.
These
condensed unaudited financial statements reflect all adjustments,
including normal recurring adjustments which, in the opinion of
management, are necessary to present fairly the consolidated
operations and cash flows for the periods presented. The results of
operations for the periods ending April 30, 2003 and 2002 may not be
indicative of a full years results.
F4
GOLD
ENTERTAINMENT GROUP INC.
(FORMERLY
ADVANCED MEDICAL TECHNOLOGIES, INC.)
(A
DEVELOPMENT STAGE COMPANY)
NOTES
TO FINANCIAL STATEMENTS
APRIL
30, 2003
NOTE
1 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
Use
of Estimates
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 reported amounts of revenues and
expenses during the reporting period. Actual
results could differ from those estimates.
Cash
and Equivalent
Cash
and cash equivalents include cash and cash in banks. The Company
maintains cash and cash equivalent balances at a
financial institution that is insured by the Federal Deposit
Insurance Corporation up to $100,000.
Organization
Costs
The
Company has incurred various expenditures in the formation of its
corporate and organizational structure. In accordance with SOP98-5
these costs will be expenses as incurred.
Revenue
Recognition
The
Company will recognize revenue upon completion of its services to be
rendered or delivery of products to its customers. The Company has
not generated revenues since inception
Development
Stage
The
Company is in its development stage. The Company since inception has
not commenced its operations, nor has generated sufficient working
capital to pursue its business objectives. The accumulated deficit
during its development stage is approximately $660,000.
Net
Earnings (Losses) Per Share
The
Company reports its net earnings (losses) per share in accordance
with SFAS No. 128 "Earnings Per Share".
Basic net earnings (losses) per share is computed by dividing net
income (loss) available to common
stockholders by the weighted averaged number of
common shares outstanding. Diluted earnings (losses) per
share is computed similar to basic earnings (losses)
per share except that the denominator is increased to include the
number of additional common shares that would have
been outstanding. As of July 31,2002, there are no
outstanding stock options or stock warrants that would have affected
our computation.
GOLD
ENTERTAINMENT GROUP, INC.
(FORMERLY
ADVANCED MEDICAL TECHNOLOGIES, INC.)
(A
DEVELOPMENT STAGE COMPANY)
NOTES
TO FINANCIAL STATEMENTS
APRIL
30, 2003
NOTE
2 - INCOME TAX
In
February 1992, the Financial Standards Board issued Statement of
Financial Accounting Standards No. 109,
"Accounting for Income Taxes." Under SFAS No. 109, deferred
assets and liabilities are recognized for the
estimated future tax consequences between the financial
statement carrying amounts of the existing assets and their
respective basis.
Deferred
assets and liabilities are measured using enacted tax rates in effect
for the year in which temporary differences are
expected to be recovered or settled. Under SFAS No. 109,
the effect on deferred assets and liabilities of a change in
tax rates is recognized in the period that includes
the enactment date.
Three
Months Ending April 30, 2003
Statutory
federal income tax rate and effective tax rate 34%
The
amount recorded as a deferred tax asset as of April 30,2003, is
approximately
$658,000.
The Company has established a 100% valuation allowance against this
deferred tax asset, as the Company has no history of
profitable operations.
The
Company has a net operating loss carry forward as of April 31, 2003
of approximately
$
658,000 which is offset by a 100% valuation allowance due to the
uncertainty surrounding the ultimate realization of
these assets. The loss carry-forward expires progressively in 15
years from commencement in 1999
NOTE
3 - RELATED PARTY TRANSACTIONS
The
majority stockholder and officer of the Company advanced as of April
30, 2003 $ 81,400 for working capital. This loan is unsecured, non
-interest bearing and has no maturity date.
NOTE
4 - MERGERS AND ACQUISITIONS
Merger
Agreement
On
March 26, 2002, the Company entered into a merger agreement with
Gold Entertainment
Group,
Inc. (a Nevada Corporation). As part of the agreement, the Company
will divest itself of all its assets, a new Board of
Directors will be nominated and "Gold" shareholders shall
exchange their shares for the shares of
Advanced Medical Technology, Inc.
Additionally,
"Gold" will cease to exist and "Advanced" will be
the survivor corporation and will change its name
to Gold Entertainment Group, Inc.
The
stock for stock exchange will be a tax free transaction pursuant to
Internal Revenue Code Section 368(a)(1)(4). The
merger agreement was ratified by the Board of Directors on April
4, 2002.
NOTE
5 CAPITAL TRANSACTIONS
On
March 25, 2002, the Board of Directors adopted a resolution for a 1
for 25 reverse split of the Company's common shares.
On
March 26, 2002, the Company issued 9,210,000 shares of common stock
pursuant to a Merger agreement
In
March 2002, the Company sold 118,648 shares of common stock for $
131,659
On
September 2, 2002 the Company President and majority shareholder of
the company, donated 6 million shares back to the company (which was
canceled).
On
September 26, 2002, the Company initiated a 2.5:1 forward stock
split
The
stock splits did not change the par value of the Company's common
stock. All common stock financial data has been
restated
GOLD
ENTERTAINMENT GROUP, INC.
(FORMERLY
ADVANCED MEDICAL TECHNOLOGIES, INC.)
(A
DEVELOPMENT STAGE COMPANY)
NOTES
TO FINANCIAL STATEMENTS
APRIL
30, 2003
NOTE
6 - GOING CONCERN
As
shown in the accompanying financial statements, the Company incurred
substantial net losses for the period February 3, 1999 to April 30,
2003. There is no guarantee whether the Company will be able to
generate enough revenue and/or raise capital to support those
operations. This raises substantial doubt about the Company's ability
to continue as a going concern.
Management
also states that they are confident that they can improve operations
and raise the appropriate funds to grow their underlying business and
acquire other businesses.
The
financial statements do not include any adjustments that might result
from the outcome of these uncertainties.
NOTE
7 - NEW ACCOUNTING PRONOUNCEMENTS
In
December 2002, the FASB issued Statement of Financial Accounting
Standards No. 148, "Accounting for Stock-Based Compensation" Transition and Disclosure an Amendment of FASB Statement No. 123
(SFAS 148). SFAS 148 amends SFAS 123 "Accounting for Stock-Based Compensation,"
providing for an alternative method of transition for a voluntary change to the fair value based method of
accounting for stock-based employee compensation. Additionally, it amends the disclosure requirements of SFAS 123
to require prominent disclosures in both annual and interim financial statements about the method of
accounting for stock-based employee compensation and the effect of the method used on reported results.
SFAS 148 is effective for fiscal years beginning after December 15, 2002. The interim disclosure provisions are effective for financial reports containing
financial statements for interim periods beginning after December 15, 2002. The Company's adoption of the interim disclosure provisions of
SFAS 148 did not affect its financial position.
In
May 2003, the FASB issued Statement of Financial Accounting Standards
No. 150, "Accounting for Certain Financial Instruments with Characteristics of both
Liabilities and Equity" (SFAS 150). SFAS sets standards for an issuer as to how to
classify and measure financial instruments with characteristics of both liabilities and equity. SFAS 150 is
effective for financial instruments entered into after May 31, 2003, and is effective after June 15, 2003. Adoption of SFAS 150 is not expected to have a material
effect on the Company.