Item 1. Financial Statements
Notes to Interim Condensed
Financial Statement
September 30, 2018
(unaudited)
NOTE 1 – BUSINESS
AND CONTINUED OPERATIONS
ORGANIZATION
Global
Seed Corporation (the “Company”). was incorporated on July 13, 2010 in the State of Texas. The initial operations
have included organization and incorporation, target market identification, new business development, marketing plans, fund raising,
and capital formation. A substantial portion of the Company’s activities has involved developing a business plan and establishing
contacts and visibility in the Asian communities in Houston, Texas.
The fiscal year end of
the Company is June 30.
NOTE 2 – SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The
accompanying interim financial statements and related notes as of and for the three months ended September 30, 2018 have been
prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”)
for the financial information, and with the rules and regulations of the United States Securities and Exchange Commission (“SEC”).
The interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the
opinion of management, necessary to a fair statement of the results for the fiscal year presented.
The
Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial
statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined
in that context.
USE OF ESTIMATES
The
preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United
States 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 amount of revenues and expenses
during the reporting period.
CASH EQUIVALENTS
The
company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
REVENUE RECOGNITION
The
Company recognizes revenue from the sale of advertising services in accordance with Securities and Exchange Commission Staff Accounting
Bulletin No. 104 (“SAB 104”), “
Revenue Recognition in Financial Statements
.” Revenue will consist
of selling of adverting services and will be recognized only when the price is fixed or determinable, persuasive evidence of an
arrangement exists, the service is performed, and collectivity is reasonably assured. Payments received before all of the relevant
criteria for revenue recognition are satisfied will be recorded as unearned revenue. The Company’s financial statements
are prepared under the accrual method of accounting. Revenues will be recognized in the period the publication is provided and
costs are recorded in the period incurred rather than paid.
FAIR
VALUE MEASUREMENTS
The
Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value
as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair
value measurements.
The
estimated fair value of certain financial instruments, including cash and cash equivalents, deposits, prepaid expenses, notes
payable, and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term
nature of these instruments.
ASC
820 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 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. ASC 820 describes three levels of inputs that may
be used to measure fair value:
* Level
1 - quoted prices in active markets for Identical assets or liabilities
* Level
2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable
* Level
3 - inputs that are unobservable (for example cash flow modeling inputs based on assumptions)
INCOME
TAXES
The
Company utilizes FASB ASC 740, “Income Taxes,” which requires the 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 determined based on the difference between the tax basis of assets and liabilities
and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the
differences are expected to affect taxable income. A valuation allowance is recorded when in the opinion of management, it is
“more likely-than-not” that a deferred tax asset will not be realized.
The
Company generated a deferred tax credit through net operating loss carryforward. However, a valuation allowance of 100% has been
established. Interest and penalties on tax deficiencies recognized in accordance with ASC accounting standards are classified
as income taxes in accordance with ASC Topic 740-10-50-19.
BASIC AND DILUTED
NET LOSS PER SHARE
Net
loss per share is calculated in accordance with ASC 260, Earnings Per Share, for the period presented. Basic net loss per share
is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption
that all dilative convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury
stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of
issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the
period.
As of September 30, 2018,
the Company had no potentially dilutive securities.
INTANGIBLE ASSETS
When
an intangible is purchased from another entity, its value equals the cash or fair market value of the consideration given. The
present value of payments on the liability incurred or the fair value of the stock issued may also be used to value externally
acquired intangible.
RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In
May, 2016, the FASB issued ASU No.2016-12, Revenue from Contracts with Customers ( Topic 606): Narrow-Scope Improvements and Practical
Expedients. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with
Customers ( Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this
Update are the same s the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09).
Accounting Standards Update 2015-14, Revenue from Contracts with Customers ( Topic 606): Deferral of the Effective Date, defers
the effective date of Update 2014-09 by one year.
In
March, 2016, the FASB issued ASU No.2016-09, Compensation-Stock Compensation ( Topic 718): Improvements to Employee Share-Based
Payment Accounting. For public business entities, the amendments are effective for annual periods beginning after December 15,
2016, and interim periods within those annual periods. For all other entities, the amendments re effective for annual periods
beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption
is permitted for any entity in any interim or annual periods. If an entity early adopts the amendments in an interim period, any
adjustment should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects
early adoption must adopt all of the amendments in the same period.
NOTE 3 – GOING
CONCERN
The
Company’s financial statements are prepared using accounting principles generally accepted in the United States of America
applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course
of business. The Company had an accumulated loss of $88,184 since inception through the period ended September 30, 2018. Management’s
plans to continue as a going concern include raising additional capital through sales of common stock. However, management cannot
provide any assurances that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue
as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and
eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 4 – COMMITMENTS
AND CONTINGENCIES
The Company does not
have any commitments or contingencies.
There
were no legal proceedings against the Company with respect to matters arising in the ordinary course of business. Neither the
Company nor any of its officers or directors is involved in any other litigation either as plaintiffs or defendants, and have
no knowledge of any threatened or pending litigation against them or any of the officers or directors.
NOTE 5 – RELATED PARTY TRANSACTIONS
The company imputed interest of $94 and $0 during the three months ended September 30, 2018
and 2017. The balances of amount to related party was $7,589 and $0 at September 30, 2018 and June 30, 2018, respectively.
NOTE 6 – CAPITAL STOCK
No stock was issued in the three months ended September 30,
2018 and 2017. During the year ended June 30, 2018, $26,700 was forgiven resulting in an increase in additional paid in capital
of the same amount.
NOTE
7 – SUBSEQUENT EVENTS
Management
has evaluated subsequent events through November 14, 2018. Based on our evaluation no events have occurred requiring adjustment
or disclosure.