Notes
to Interim Condensed Financial Statement
December
31, 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. A substantial portion of
the Company’s initial business activities had involved developing a business plan and establishing contacts and visibility
in the Asian communities in Houston, Texas. The Company had a change in control on June 2, 2018.
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 and six months ended December 31, 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 U.S. 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 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.
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 December 31, 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
On August 26, 2016, the FASB issued
ASU No. 2016-15, “Statement of Cash Flows (Topic 230)” (the “Update”). Prior to the Update, there was diversity
in practice in how certain cash receipts and cash payments were presented and classified in the statement of cash flows under Topic
230, Statement of Cash Flows, and other Topics. The Update addressed eight specific cash flow issues with the objective of reducing
the existing diversity in practice. The amendments in the Update are effective for interim and annual periods beginning after December
15, 2017, and early adoption is permitted. The amendments should be adopted retrospectively. The Company has adopted this new guidance
and does not expect the adoption to have a material impact on our financial statements.
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.
NOTE
3 - GOING CONCERN
The
Company’s financial statements are prepared using U.S. GAAP 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 $92,570 since
inception through the period ended December 31, 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
At
December 31, 2018, $11,746 was due to a related party. The Company imputed interest of $323 and $778 during the six months ended
December 31, 2018 and 2017. The balances of amount to related party was $11,746 and $0 at December 31, 2018 and June 30, 2018,
respectively.
NOTE
6 – CAPITAL STOCK
No
stock was issued in the six months ended December 31, 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 February 14, 2019. Based on our evaluation no events have occurred requiring adjustment
or disclosure.