10-Q
2012-11-30
false
PHARMA INVESTING NEWS, INC.
0001520047
--02-29
5361015
Smaller Reporting Company
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<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:.25in"><b>1. Nature of Operations and Continuance of Business</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"><font lang="EN-GB">Pharma Investing News, Inc. (the “Company”) was incorporated in the State of Nevada on February 8, 2011. The Company is a Development Stage Company, as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, <i>Development Stage Entities.</i></font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"><font lang="EN-GB"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"><i><u>Going Concern</u></i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"><i><u><font style="TEXT-DECORATION:none"> </font></u></i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in">These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of November 30, 2012, the Company has not recognized any revenue, and has a working capital deficit of $60,174 and an accumulated deficit of $85,445. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:.25in"><b>2. Summary of Significant Accounting Policies</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"><b> </b></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:.5in">(a)<font style="FONT:7pt 'Times New Roman'"> </font>Basis of Presentation</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”).</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:35.4pt 53.4pt 71.3pt 89.1pt 106.85pt 124.75pt 142.5pt 160.4pt 178.2pt 195.95pt 213.85pt 231.6pt 249.5pt 267.3pt 285.05pt 302.95pt 320.7pt 338.6pt 4.95in 374.15pt 392.05pt 409.8pt 427.7pt 445.5pt 463.25pt"><font lang="EN-CA">(b)<font style="FONT:7pt 'Times New Roman'"> </font></font><font lang="EN-CA"> Interim Financial Statements </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">These interim unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the period ended February 29, 2012.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s financial position at November 30, 2012, and the results of its operations and cash flows for the nine month periods ended November 30, 2012 and 2011. The results of operations for the period ended November 30, 2012 are not necessarily indicative of the results to be expected for future quarters or the full year.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:.5in">(c)<font style="FONT:7pt 'Times New Roman'"> </font>Use of Estimates</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The preparation of financial statements in conformity with US 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 amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:.25in"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:">(d)<font style="FONT:7pt 'Times New Roman'"> </font>Cash and cash equivalents</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:.25in">(e)<font style="FONT:7pt 'Times New Roman'"> </font>Basic and Diluted Net Loss per Share </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:35.4pt 53.0pt 70.8pt 88.6pt 106.45pt 124.2pt 142.1pt 159.9pt 177.7pt 195.55pt 213.3pt 231.2pt 249.0pt 266.8pt 284.65pt 4.2in 320.3pt 338.1pt 355.9pt 373.75pt 391.5pt 409.4pt 427.2pt 445.0pt 462.85pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:35.4pt 53.0pt 70.8pt 88.6pt 106.45pt 124.2pt 142.1pt 159.9pt 177.7pt 195.55pt 213.3pt 231.2pt 249.0pt 266.8pt 284.65pt 4.2in 320.3pt 338.1pt 355.9pt 373.75pt 391.5pt 409.4pt 427.2pt 445.0pt 462.85pt">The Company computes net loss per share in accordance with ASC 260, <i>Earnings per Share</i>. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. For the periods presented, there were no outstanding potential common stock equivalents and therefore basic and diluted earnings per share result in the same figure.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:35.4pt 53.0pt 70.8pt 88.6pt 106.45pt 124.2pt 142.1pt 159.9pt 177.7pt 195.55pt 213.3pt 231.2pt 249.0pt 266.8pt 284.65pt 4.2in 320.3pt 338.1pt 355.9pt 373.75pt 391.5pt 409.4pt 427.2pt 445.0pt 462.85pt"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:.25in">(f)<font style="FONT:7pt 'Times New Roman'"> </font>Financial Instruments</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">Pursuant to ASC 820, <i>Fair Value Measurements and Disclosures </i>and ASC 825, <i>Financial Instruments</i>, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"><i> </i></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"><i>Level 1</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"><i> </i></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"><i>Level 2</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"><i> </i></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"><i>Level 3</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:.3in .55in .8in 1.05in 1.3in 1.55in 1.8in 2.05in 2.3in 2.55in 2.8in 3.05in 3.3in 3.55in 3.8in 4.05in 4.3in 4.55in 4.8in 5.05in 5.3in 5.55in 5.8in 6.05in 6.3in 6.55in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:.3in .55in .8in 1.05in 1.3in 1.55in 1.8in 2.05in 2.3in 2.55in 2.8in 3.05in 3.3in 3.55in 3.8in 4.05in 4.3in 4.55in 4.8in 5.05in 5.3in 5.55in 5.8in 6.05in 6.3in 6.55in">The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in">(g)<font style="FONT:7pt 'Times New Roman'"> </font>Recent Accounting Pronouncements</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:.25in"><b> </b></p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:.25in"><b>3. Related Party Transactions</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in">As at November 30, 2012, the Company owes $53,145 (February 29, 2012 - $34,891) to the President and CEO of the Company. The amount owing is unsecured, non-interest bearing, and due on demand. </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:.25in"><b>4. Common Stock</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in">On May 31, 2012, the Company issued 179,290 common shares at $0.07 per share for proceeds of $12,550.</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt; tab-stops:.25in"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"><b>5. Settlement of Debt</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in">On August 31, 2012, the Company settled outstanding professional fees of $69,500 for payment of $30,000, which was paid by the President and CEO of the Company. This resulted in a gain on settlement of debt in the amount of $39,500 for the period ended November 30, 2012.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:.25in"><b>6. Subsequent Events </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:22.5pt .6in .9in 1.2in 1.5in 1.8in 2.1in 2.4in 2.7in 3.0in 3.3in 3.6in 3.9in 302.7pt 4.5in 4.8in 5.1in 5.4in 409.7pt 6.0in 6.3in 6.6in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:22.5pt .6in .9in 1.2in 1.5in 1.8in 2.1in 2.4in 2.7in 3.0in 3.3in 3.6in 3.9in 302.7pt 4.5in 4.8in 5.1in 5.4in 409.7pt 6.0in 6.3in 6.6in">We have evaluated subsequent events through the date of issuance of the financial statements, and did not have any material recognizable subsequent events.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:right dotted 6.5in"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:.5in">(a)<font style="FONT:7pt 'Times New Roman'"> </font>Basis of Presentation</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”).</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:35.4pt 53.4pt 71.3pt 89.1pt 106.85pt 124.75pt 142.5pt 160.4pt 178.2pt 195.95pt 213.85pt 231.6pt 249.5pt 267.3pt 285.05pt 302.95pt 320.7pt 338.6pt 4.95in 374.15pt 392.05pt 409.8pt 427.7pt 445.5pt 463.25pt"><font lang="EN-CA">(b)<font style="FONT:7pt 'Times New Roman'"> </font></font><font lang="EN-CA">Interim Financial Statements </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">These interim unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the period ended February 29, 2012.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s financial position at November 30, 2012, and the results of its operations and cash flows for the nine month periods ended November 30, 2012 and 2011. The results of operations for the period ended November 30, 2012 are not necessarily indicative of the results to be expected for future quarters or the full year.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:.5in">(c)<font style="FONT:7pt 'Times New Roman'"> </font>Use of Estimates</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The preparation of financial statements in conformity with US 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 amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.</p>
<!--egx--><p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:">(d)<font style="FONT:7pt 'Times New Roman'"> </font>Cash and cash equivalents</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:.25in">(e)<font style="FONT:7pt 'Times New Roman'"> </font>Basic and Diluted Net Loss per Share </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:35.4pt 53.0pt 70.8pt 88.6pt 106.45pt 124.2pt 142.1pt 159.9pt 177.7pt 195.55pt 213.3pt 231.2pt 249.0pt 266.8pt 284.65pt 4.2in 320.3pt 338.1pt 355.9pt 373.75pt 391.5pt 409.4pt 427.2pt 445.0pt 462.85pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:35.4pt 53.0pt 70.8pt 88.6pt 106.45pt 124.2pt 142.1pt 159.9pt 177.7pt 195.55pt 213.3pt 231.2pt 249.0pt 266.8pt 284.65pt 4.2in 320.3pt 338.1pt 355.9pt 373.75pt 391.5pt 409.4pt 427.2pt 445.0pt 462.85pt">The Company computes net loss per share in accordance with ASC 260, <i>Earnings per Share</i>. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. For the periods presented, there were no outstanding potential common stock equivalents and therefore basic and diluted earnings per share result in the same figure.</p>
<!--egx--><p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in; tab-stops:.25in">(f)<font style="FONT:7pt 'Times New Roman'"> </font>Financial Instruments</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">Pursuant to ASC 820, <i>Fair Value Measurements and Disclosures </i>and ASC 825, <i>Financial Instruments</i>, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"><i>Level 1</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"><i>Level 2</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 0.25in"><i>Level 3</i></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:.3in .55in .8in 1.05in 1.3in 1.55in 1.8in 2.05in 2.3in 2.55in 2.8in 3.05in 3.3in 3.55in 3.8in 4.05in 4.3in 4.55in 4.8in 5.05in 5.3in 5.55in 5.8in 6.05in 6.3in 6.55in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:.3in .55in .8in 1.05in 1.3in 1.55in 1.8in 2.05in 2.3in 2.55in 2.8in 3.05in 3.3in 3.55in 3.8in 4.05in 4.3in 4.55in 4.8in 5.05in 5.3in 5.55in 5.8in 6.05in 6.3in 6.55in">The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.5in">(g)<font style="FONT:7pt 'Times New Roman'"> </font>Recent Accounting Pronouncements</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.</p>
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2012-11-30
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2011-02-08
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2013-01-18
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2012-05-31
0001520047
2012-08-31
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