Notes to the Financial Statements
JUNE 30, 2016
(Unaudited)
NOTE 1 - ORGANIZATION AND BUSINESS
OPERATIONS
Organization and Description of Business
ALTAIR INTERNATIONAL CORP. (the “Company”) was incorporated
under the laws of the State of Nevada on December 20, 2012. The Company is in the development stage as defined under Financial
Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915-205 "Development-Stage
Entities.”
The Company has entered into a strategic alliance with Cure Pharmaceutical
Corporation (“CURE”), a California company engaged in the development of oral thin film (“OTF”) for the
delivery of nutraceutical, over-the-counter and prescription products. Currently this alliance is comprised of an Exclusive License
and Distribution Agreement for CURE’s Sildenafil (commonly known as Viagra) Products throughout Asia, Brazil, the Middle
East and Canada acquired at a cost of $200,000 while a joint venture agreement for the procurement of converting and packaging
equipment specific for oral thin film products has been proposed through a Letter of Intent. In addition, Altair and Cure have
agreed to enter into further joint ventures or other business relationships for the purpose of completing the development and marketing
of additional products, and for license and distribution agreements for additional Cure products such as aspirin, sleep-aid, topical
muscle and joint pain relief, and electrolytes delivered through OTF or other methods. Altair has advanced $360,000 to CURE in
this regard.
The Company had previously planned to commence operations in the
architectural field and to be responsible for the concept architectural vision of future private and public buildings as well as
municipal organized public areas. This plan was abandoned in the 2015 fiscal year in favor of the business operations described
above.
Since inception (December 20, 2012) through June 30, 2016, the Company
has not generated any revenue and has accumulated losses of $264,382.
In management’s
opinion all adjustments necessary for a fair statement of the results for the interim periods have been made, and that all adjustments
have been made to maintain the books in accordance with GAAP. Furthermore, sufficient disclosures have been made in order to ensure
that the interim financial statements will not be misleading.
NOTE
2 - GOING CONCERN
The financial
statements have been prepared on a going concern basis, which assumes the Company will be able to realize its assets and discharge
its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses since inception
resulting in an accumulated deficit of $264,382 as of June 30, 2016 and further losses are anticipated in the development of its
business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue
as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary
financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management
intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and/or private
placement of common stock.
NOTE 3 - SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have
been prepared in accordance with generally accepted accounting principles in the United States of America, and pursuant to the
rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments, consisting
of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations
and cash flows of the Company as of and for the three month periods ending June 30, 2016 and 2015 and year ending March 31, 2016.
Cash and Cash Equivalents
For purposes of the statement of cash flows,
the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.
The Company's bank accounts are deposited in
insured institutions. The funds are insured up to $250,000. At June 30, 2016 the Company's bank deposits did not exceed the insured
amounts.
Basic and Diluted Income (Loss) Per Share
The Company computes loss per share in accordance
with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted earnings per
share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders
by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive
potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their
effect is anti-dilutive.
Income Taxes
The Company follows the liability method of
accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated
tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis
(temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized
in income in the period that includes the enactment date.
Fair Value of Financial Instruments
FASB ASC 820 "Fair Value Measurements
and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The
hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable
in the market.
These tiers include:
Level 1: defined as observable inputs such
as quoted prices in active markets;
Level 2: defined as inputs other than
quoted prices in active markets that are either directly or indirectly observable; and
Level 3: defined as unobservable inputs
in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The carrying amounts of financial assets and
liabilities, such as cash and accrued liabilities approximate their fair values because of the short maturity of these instruments.
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 assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements
and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
NOTE 4 – SALES AND DISTRIBUTION LICENSE
On November 26,
2014, the Company entered into a license and distribution agreement with Cure Pharmaceutical Corporation (“Cure”) for
the exclusive rights to distribute and sell in certain defined territories any product produced and supplied by Cure that contains
Sildenafil and is delivered through an oral thin film. The defined territories include Asia, Brazil, the Middle East and Canada.
For the sake of clarity, Asia is further defined as India, China, Malaysia, Indonesia, Taiwan, Japan, Philippines, and those other
countries dependent on China’s SDA certification for their approval protocol of the Products
.
There is no expiry date to this agreement.
The agreement
required that the Company pay to Cure a fee in the aggregate amount of $200,000, payable in two equal $100,000 instalments. The
Company completed the purchase of the license in the 2015 fiscal year. This fee will be amortized over a ten year period commencing
on the date of the first sale of product under the license.
NOTE 5 – ADVANCES AND DEPOSITS
The Company and Cure have agreed to enter into
further joint ventures or other business relationships for the purpose of completing the development and marketing of additional
products and for license and distribution agreements for additional Cure products such as aspirin, sleep-aid, topical muscle and
joint pain relief, and electrolytes delivered through OTF or other methods. To June 30, 2016 the Company has advanced $360,000
to Cure for these purposes ($340,000 as at June 30, 2015).
NOTE 6 – PROMISSORY NOTES
On March 6, 2015, the Company executed a convertible
promissory note for $100,000 with Williams Ten, LLC. The note is due in ninety days, has a $10,000 one-time interest payment due
at maturity and requires the issuance of 10,000 shares of common stock. Any unpaid principal and interest at the end of the term
is convertible into shares of common stock at 50% of the average closing price for the ten days prior to the end of the term of
the note. The fair value of the common stock issued was determined to be $9,091 based on its fair value relative to the fair value
of the debt issued. This amount has been recorded as a debt discount and will be amortized utilizing the interest method of accretion
over the term of the note. In addition, due to the variable nature of the conversion feature which has no explicit limit on the
number of shares that could be required to be issued, the company bifurcated the conversion feature and accounted for it as a
derivative liability. The Company recorded the derivative liability at its fair value of $100,004 based on the Black Scholes Merton
pricing model and a corresponding debt discount of $90,909 and derivative expense charge of $9,095. As of June 30, 2016, $100,000
of the debt discount has been amortized to interest expense and the Company fair valued the derivative at $100,000. This note
is currently past due; however, repayment terms are being renegotiated.
NOTE 7 – LOANS PAYABLE
On July 22, 2015, the Company obtained a loan
from a third party in the amount of $25,000. This loan is non-interest bearing, is unsecured and has no fixed terms of repayment.
On October 23, 2015, the Company obtained
a loan from a third party in the amount of $4,175. This loan is non-interest bearing, is unsecured and has no fixed terms of repayment.
In
the three month period ended March 31, 2016, the Company obtained loans from a third party in the total amount of $11,350. In
the three month period ended June 30, 2016, the Company received a further $2,500 in loans from this same third party. These loans
totaling $13,850 as of June 30, 2016 are non-interest bearing, are unsecured and have no fixed terms of repayment.
NOTE
8 – COMMON STOCK
The
Company has 75,000,000 common shares authorized with a par value of $0.001 per share.
During
the period December 20, 2012 (incepti
on) to March 31, 2013, the Company sold a total of 3,000,000 shares of common stock
for total cash proceeds of $3,000. In November and December 2013, the Company sold a total of 1,235,000 shares of common stock
for total cash proceeds of $24,700. During the period December 20, 2012 (inception) to March 31, 2014, the Company sold a total
of 4,235,000 shares of common stock for total cash proceeds of $27,700.
On February 9, 2015, the Company affected
a seven for one forward split of its common stock. As a result of this forward split, the Company had 29,645,000 common shares
issued and outstanding at March 31, 2015.
During the twelve month period ended March
31, 2016, the Company sold a total of 302,000 common shares for total cash consideration of $265,006. The Company had 29,947,000
common shares issued and outstanding at March 31, 2016.
No further issuances were made in the three months ended June 30, 2016.
The Company had 29,947,000 common shares issued and outstanding at June 30, 2016.
NOTE 9 – RELATED PARTY TRANSACTIONS
From inception through June 30, 2016,
Directors have loaned the Company $244,374 net of repayments to pay for incorporation costs, general and administrative expenses
and professional fees, the acquisition of sales and distribution licenses and advances to Cure Pharmaceutical. As of June
30, 2016, the total loan amount was $244,374. The loan is non-interest bearing, due upon demand and unsecured.
NOTE 10 – SUBSEQUENT EVENTS
In accordance with ASC 855-10, the Company
has analyzed its operations from April 1, 2016 to September 1, 2016 and has determined that it has no other material subsequent
events to disclose in these financial statements.
END OF NOTES TO FINANCIAL STATEMENTS