0001477932-17-005170.txt : 20171023 0001477932-17-005170.hdr.sgml : 20171023 20171023153223 ACCESSION NUMBER: 0001477932-17-005170 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 30 CONFORMED PERIOD OF REPORT: 20170831 FILED AS OF DATE: 20171023 DATE AS OF CHANGE: 20171023 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Mikrocoze Inc. CENTRAL INDEX KEY: 0001697587 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD FURNITURE [2510] IRS NUMBER: 813599639 STATE OF INCORPORATION: NV FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-216292 FILM NUMBER: 171148969 BUSINESS ADDRESS: STREET 1: 1545 CROSSWAYS BLVD. STREET 2: SUITE 250 CITY: CHESAPEAKE STATE: VA ZIP: 23320-0218 BUSINESS PHONE: 800-542-8715 MAIL ADDRESS: STREET 1: 1545 CROSSWAYS BLVD. STREET 2: SUITE 250 CITY: CHESAPEAKE STATE: VA ZIP: 23320-0218 10-Q 1 mrcz_10q.htm FORM 10-Q mrcz_10q.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: August 31, 2017

 

Commission File Number 333-203754

 

MIKROCOZE INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

81-3599639

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 1545 Crossways Blvd., Suite 250, Chesapeake, Virginia, 23320-0210

(Address of principal executive offices)(Zip Code)

 

(800) 542-8715

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ¨ Yes   x No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ¨ Yes   x No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

x

 (Do not check if a smaller reporting company)

 

Emerging growth company

x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). x Yes   ¨ No

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court ¨ Yes   ¨ No

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

As of October 20, 2017, there were 9,000,000 shares of common stock issued and outstanding.

 

 
 
 

 

TABLE of CONTENTS

 

PART I—FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

Item 1.

Condensed Financial Statements.

 

 

3

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

 

10

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

 

 

11

 

Item 4.

Controls and Procedures.

 

 

11

 

 

 

 

 

 

 

PART II—OTHER INFORMATION

 

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings.

 

 

12

 

Item 1A.

Risk Factors.

 

 

12

 

Item 2.

Unregistered Sales of Securities and Use of Proceeds.

 

 

12

 

Item 3.

Defaults Upon Senior Securities.

 

 

12

 

Item 4.

Mine Safety Disclosures

 

 

12

 

Item 5.

Other Information

 

 

12

 

Item 6.

Exhibits.

 

 

12

 

 

 
2
 
 

 

PART I—FINANCIAL INFORMATION

 

Item 1. Condensed Financial Statements.

 

MIKROCOZE INC.

FINANCIAL STATEMENTS

 

August 31, 2017

 

CONDENSED BALANCE SHEETS

 

 

4

 

 

 

 

 

 

CONDENSED STATEMENTS OF OPERATIONS

 

 

5

 

 

 

 

 

 

CONDENSED STATEMENTS OF CASH FLOWS

 

 

6

 

 

 

 

 

 

NOTES TO CONDENSED FINANCIAL STATEMENTS

 

 

7

 

 

 
3
 
 

 

MIKROCOZE INC.

CONDENSED BALANCE SHEETS

 

 

 

August 31,

2017

 

 

November 30,

2016

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash

 

$ 249

 

 

$ 9,020

 

Due from related party

 

 

13,500

 

 

 

-

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

$ 13,749

 

 

$ 9,020

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Due to related party

 

$ 8,150

 

 

$ 1,961

 

Accounts payable

 

 

645

 

 

 

-

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

8,795

 

 

 

1,961

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

 

 

Authorized

 

 

 

 

 

 

 

 

200,000,000 shares of common stock, $0.001 par value

 

 

-

 

 

 

-

 

Issued and outstanding

 

 

 

 

 

 

 

 

9,000,000 shares of common stock

 

 

9,000

 

 

 

9,000

 

Subscription payable

 

 

13,500

 

 

 

 

 

Accumulated deficit

 

 

(17,546 )

 

 

(1,941 )

 

 

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

4,954

 

 

 

7,059

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$ 13,749

 

 

$ 9,020

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

 
4
 
Table of Contents

 

MIKROCOZE INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

Three

months ended August 31,

2017

 

 

From inception (August 17, 2016)

to August 31,

2016

 

 

Nine

months ended

August 31,

2017

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

$ -

 

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$ 3,880

 

 

$ 1,517

 

 

$ 15,605

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

 

(3,880 )

 

 

(1,517 )

 

 

(15,605 )

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

 

(3,880 )

 

 

(1,517 )

 

 

(15,605 )

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS PER COMMON SHARE – BASIC AND DILUTED

 

$ (0.00 )

 

$ (0.00 )

 

$ (0.00 )

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC AND DILUTED

 

 

9,000,000

 

 

 

-

 

 

 

9,000,000

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

 
5
 
Table of Contents

 

MIKROCOZE INC.

CONDENSED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

 

 

Nine months

ended

August 31,

2017

 

 

From inception (August 17, 2016) to August 31,

2016

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss for the period

 

$ (15,605 )

 

$ (1,517 )

Adjustments to reconcile net loss to net cash used in operating activities

 

 

-

 

 

 

-

 

Expenses paid by related party

 

 

6,189

 

 

 

1,450

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

 

645

 

 

 

87

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN OPERATING ACTIVITIES

 

 

(8,771 )

 

 

20

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

NET CHANGE IN CASH

 

 

(8,771 )

 

 

20

 

 

 

 

 

 

 

 

 

 

CASH, BEGINNING OF PERIOD

 

 

9,020

 

 

 

-

 

 

 

 

 

 

 

 

 

 

CASH, END OF PERIOD

 

$ 249

 

 

$ 20

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$ -

 

 

$ -

 

Income tax

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription payable for proceeds held in trust by an officer

 

$ 13,500

 

 

$ -

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

 
6
 
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MIKROCOZE INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

AUGUST 31, 2017 (Unaudited)

 

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

 

Mikrocoze Inc. was incorporated in the State of Nevada as a for-profit Company on August 17, 2016 and established a fiscal year end of November 30. The Company is organized to sell micro-furniture that is designed to maximize any small space and to sell its products via the internet.

 

Going concern

 

To date the Company has generated no revenues from its business operations and has incurred operating losses since inception of $17,546. As at August 31, 2017, the Company has a working capital of $4,954. The Company will require additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. As of August 31, 2017, the Company has issued 9,000,000 founders shares at $0.001 per share for net proceeds of $9,000 to the Company. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation – Unaudited Financial Statements

 

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form S-1. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the fiscal year ended November 30, 2016 included in the Company’s year-end financial statements on Form S-1 filed with the Securities and Exchange Commission. The unaudited financial statements should be read in conjunction with those financial statements included in the Form S-1. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the nine months ended August 31, 2017 are not necessarily indicative of the results that may be expected for the year ending November 30, 2017.

 

Use of Estimates and Assumptions

 

Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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 period. Accordingly, actual results could differ from those estimates.

 

Commitments and Contingencies

 

On August 26, 2016 the Company signed a lease for office space in Chesapeake, Virginia. The term of the lease is for one year at $69 per month.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

 

 
7
 
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MIKROCOZE INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

AUGUST 31, 2017 (Unaudited)

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Foreign Currency Translation

 

The Company translates the foreign currency financial statements into US Dollars using the year or reporting period end of average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’ equity (deficit). Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses on the statement of operations.

 

Fair Value of Financial Instruments

 

The carrying amount of the Company’s financial assets and liabilities approximates their fair values due to their short term maturities.

 

Loss per Common Share

 

The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted loss per share is the same as basic loss per share due to the lack of dilutive items in the Company. As of August 31, 2017, there were no common stock equivalents outstanding.

 

Income Taxes

 

The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are

measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.

 

Stock-based Compensation

 

The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company has not adopted a stock option plan and has not granted any stock options. As at August 31, 2017 the Company had not adopted a stock option plan nor had it granted any stock options. Accordingly no stock-based compensation has been recorded to date.

 

Recent Accounting Pronouncements

 

The Company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements.

 

 
8
 
Table of Contents

MIKROCOZE INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

AUGUST 31, 2017 (Unaudited)

 

NOTE 3 – COMMON STOCK

 

The Company’s capitalization is 200,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued.

 

On November 16, 2016, the Company issued 9,000,000 common shares at $0.001 per share to the sole director and President of the Company for cash proceeds of $9,000.

 

Between August 8 and August 23, 2017 the Company sold 450,000 shares of its common stock at $0.03 for $13,500 net proceeds to the Company. As of August 31, 2017 the Company had not issued these shares. This is reflected on the balance sheet as subscription payable. See also Note 4.

 

NOTE 4 – RELATED PARTY TRANSACTIONS

 

During the three months ended August 31, 2017, the Company consummated a private placement as a result of which $13,500 was raised through the purchase of 450,000 shares of the Company’s common stock by third party investors. To facilitate the transfer of funds from the investors to the Company, the proceeds from the private placement were held in an account owned by Mikrocoze Private Limited., a private company owned by Sukmanjit Singh, the Company’s CEO. As of August 31, 2017, the funds were still held in this account. 

 

During the period ended August 31, 2017, the CEO paid expenses of $6,189 on behalf of the Company. The total amount owed to the CEO as of August 31, 2017 is $8,150. The amounts due to related party are unsecured and non- interest-bearing with no set terms of repayment.

 

NOTE 5 – AGREEMENTS

 

On January 4, 2017 the Company entered into a Master Manufacturing Agreement to manufacture its line of micro-furniture with New Bharat Furniture House, an India corporation having its principal place of business in Amritsar, Punjab, India. The term of the agreement is five years.

 

 
9
 
Table of Contents

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

This section of this Form 10-Q includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

 

Results of Operations

 

For the three month period ended August 31, 2017 we had no revenue. Expenses for the three month period ended August 31, 2017 totaled $3,880 resulting in a net loss of $3,880. The net loss for the three month period ended August 31, 2017 is a result of general and administrative expense of $3,880 comprised primarily of professional fees of $2,500; filing fees of $1,350; bank service charges of $47 and a foreign exchange gain of $17.

 

For the period from inception (August 17, 2016) to August 31, 2016 we had no revenue. Expenses for the from inception (August 17, 2016) to August 31, 2016 totaled $1,517 resulting in a net loss of $1,517. The net loss for the period from inception (August 17, 2016) to August 31, 2016 is a result of general and administrative expense of $1,517 comprised primarily of filing fees of $1,430 and rent expenses of $87.

 

For the nine month period ended August 31, 2017 we had no revenue. Expenses for the nine month period ended August 31, 2017 totaled $15,605 resulting in a net loss of $15,605. The net loss for the nine month period ended August 31, 2017 is a result of general and administrative expense of $15,605 comprised primarily of professional fees of $13,000; filing fees of $2,370; rent expenses of $70; telephone expenses of $19; bank service charges of $163 and a foreign exchange gain of $17.

 

Liquidity and Capital Resources

 

No substantial revenues are anticipated until we have completed the financing from this offering and implemented our plan of operations. With the exception of cash advances from our sole Officer and Director, our only source for cash at this time is investments by others in this offering. We must raise cash to implement our strategy and stay in business. The amount of the offering will likely allow us to operate for at least one year.

 

As of August 31, 2017, we had $279 in cash and $13,500 due from a related party as compared to $9,020 in cash and nil due from a related party at November 30, 2016. Total liabilities for the period ended August 31, 2017, were $8,795 compared to $1,961 in total liabilities at November 30, 2016. The funds available to the Company will not be sufficient to fund the planned operations of the Company and maintain a reporting status. As of August 31, 2017, the Company owed $8,150 (November 30, 2016 $1,961) to its Chief Executive Officer. During the nine month period ended August 31, 2017, the CEO paid expenses of $6,189 on behalf of the Company. All amounts due to the related party are unsecured, non-interest bearing and have not set terms of repayment.

 

We anticipate implementing our operational plans as outlined in the Company’s S-1 filing beginning in the preceding quarter.

 

Off-balance sheet arrangements

 

Other than the situation described in the section titled Capital Recourses and Liquidity, the company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change on the company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with the company is a party, under which the company has (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets

 

 
10
 
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Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

 

Item 4. Controls and Procedures.

 

Disclosure Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is accumulated and communicated to management including our principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure.

 

In connection with this quarterly report, as required by Rule 15d-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of the design and operation of our company's disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our company's management, including our company's principal executive officer and principal financial officer. Based upon that evaluation, our company's principal executive officer and principal financial officer concluded that subject to the inherent limitations noted in this Part II, Item 9A(T) as of August 31, 2017, our disclosure controls and procedures were not effective due to the existence of material weaknesses in our internal controls over financial reporting.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f)) during the quarter ended August 31, 2017 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

 

 
11
 
Table of Contents

 

PART II—OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

Currently we are not involved in any pending litigation or legal proceeding.

 

Item 1A. Risk Factors.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

 

Item 2. Unregistered Sales of Securities and Use of Proceeds.

 

None

 

Item 3. Defaults Upon Senior Securities.

 

None

 

Item 4. Mining Safety Disclosures.

 

None

 

Item 5. Other Information.

 

None

 

Item 6. Exhibits.

 

31.1

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer

31.2

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer *

32.1

Section 1350 Certification of Chief Executive Officer

32.2

Section 1350 Certification of Chief Financial Officer **

______

* Included in Exhibit 31.1

** Included in Exhibit 32.1

 

 
12
 
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SIGNATURES*

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  MIKROCROZE INC.

(Registrant)

       
Date: October 20, 2017 By: /s/ Sukmanjit Singh

 

 

Sukmanjit Singh  
    President and Director

Principal and Executive Officer

Principal Financial Officer

Principal Accounting Officer

 

 

 

13

 

EX-31.1 2 mrcz_ex311.htm CERTIFICATION mrcz_ex311.htm

EXHIBIT 31.1

 

CERTIFICATIONS

 

I, Sukmanjit Singh, certify that:

 

1. I have reviewed this quarterly report of MIKROCOZE INC.;

 

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d – 15(f)) for the registrant and have:

 

 

a) Designed such disclosure controls and procedures, or caused such controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

 

 

b) Designed such internal controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

 

 

c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

 

 

d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

 

 

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and,

 

 

 

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

       
Date: October 20, 2017 By: /s/ Sukmanjit Singh

 

 

Sukmanjit Singh  
    President, Treasurer, Principal Executive Officer,  
    Principal Financial Officer and Director  

 

EX-32.1 3 mrcz_ex321.htm CERTIFICATION mrcz_ex321.htm

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q for the period ended August 31, 2017 of MIKROCOZE INC., a Nevada corporation (the "Company"), as filed with the Securities and Exchange Commission on the date hereof (the "Transition Report"), I, Sukmanjit Singh, President and Chief Financial Officer of the Company certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

 

1. The Quarterly Report fully complies with the requirements of Section 13(a) or15(d) of the Securities and Exchange Act of 1934, as amended; and

 

 

 

 

2. The information contained in this Quarterly Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

       
Date: October 20, 2017 By: /s/ Sukmanjit Singh

 

 

Sukmanjit Singh  
    President, Secretary Treasurer, Principal Executive Officer,  
    Principal Financial Officer and Director  

 

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Document and Entity Information - shares
9 Months Ended
Aug. 31, 2017
Oct. 20, 2017
Document And Entity Information    
Entity Registrant Name MIKROCOZE INC.  
Entity Central Index Key 0001697587  
Document Type 10-Q  
Document Period End Date Aug. 31, 2017  
Amendment Flag false  
Current Fiscal Year End Date --11-30  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   9,000,000
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2017  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONDENSED BALANCE SHEETS - USD ($)
Aug. 31, 2017
Nov. 30, 2016
CURRENT ASSETS    
Cash $ 249 $ 9,020
Due from related party 13,500
TOTAL CURRENT ASSETS 13,749 9,020
LIABILITIES    
Due to related party 8,150 1,961
Accounts payable 645
TOTAL LIABILITIES 8,795 1,961
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY    
Common stock Authorized 200,000,000 shares of common stock, $0.001 par value Issued and outstanding 9,000,000 shares of common stock 9,000 9,000
Subscription payable 13,500
Accumulated deficit (17,546) (1,941)
TOTAL STOCKHOLDERS’ (DEFICIT) EQUITY 4,954 7,059
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY $ 13,749 $ 9,020
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares
Aug. 31, 2017
Nov. 30, 2016
Statement of Financial Position [Abstract]    
Common stock, Shares Authorized 200,000,000 200,000,000
Common stock, Shares par value $ 0.001 $ 0.001
Common stock, Shares Issued 9,000,000 9,000,000
Common stock, Shares outstanding 9,000,000 9,000,000
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Aug. 31, 2016
Aug. 31, 2017
Aug. 31, 2017
Condensed Statements Of Operations      
REVENUE
OPERATING EXPENSES      
General and administrative 1,517 3,880 15,605
TOTAL OPERATING EXPENSES (1,517) (3,880) (15,605)
NET LOSS $ (1,517) $ (3,880) $ (15,605)
NET LOSS PER COMMON SHARE – BASIC AND DILUTED $ 0.00 $ 0.00 $ 0.00
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC AND DILUTED 9,000,000 9,000,000
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Aug. 31, 2016
Aug. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss for the period $ (1,517) $ (15,605)
Adjustments to reconcile net loss to net cash used in operating activities  
Expenses paid by related party 1,450 6,189
Changes in operating assets and liabilities    
Accounts payable 87 645
NET CASH USED IN OPERATING ACTIVITIES 20 (8,771)
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
NET CHANGE IN CASH 20 (8,771)
CASH, BEGINNING OF PERIOD 9,020
CASH, END OF PERIOD 20 249
SUPPLEMENTAL CASH FLOW INFORMATION AND NONCASH INVESTING AND FINANCING ACTIVITIES:    
Cash paid during the period for: Interest
Cash paid during the period for: Income taxes
Supplemental Disclosure of Non-Cash Investing and Financing Activities    
Subscription payable for proceeds held in trust by an officer $ 13,500
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
NATURE OF OPERATIONS AND BASIS OF PRESENTATION
9 Months Ended
Aug. 31, 2017
Notes to Financial Statements  
NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Mikrocoze Inc. was incorporated in the State of Nevada as a for-profit Company on August 17, 2016 and established a fiscal year end of November 30. The Company is organized to sell micro-furniture that is designed to maximize any small space and to sell its products via the internet.

 

Going concern

 

To date the Company has generated no revenues from its business operations and has incurred operating losses since inception of $17,546. As at August 31, 2017, the Company has a working capital of $4,954. The Company will require additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. As of August 31, 2017, the Company has issued 9,000,000 founders shares at $0.001 per share for net proceeds of $9,000 to the Company. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

XML 16 R7.htm IDEA: XBRL DOCUMENT v3.8.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Aug. 31, 2017
Notes to Financial Statements  
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation – Unaudited Financial Statements

 

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form S-1. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the fiscal year ended November 30, 2016 included in the Company’s year-end financial statements on Form S-1 filed with the Securities and Exchange Commission. The unaudited financial statements should be read in conjunction with those financial statements included in the Form S-1. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the nine months ended August 31, 2017 are not necessarily indicative of the results that may be expected for the year ending November 30, 2017.

 

Use of Estimates and Assumptions

 

Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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 period. Accordingly, actual results could differ from those estimates.

 

Commitments and Contingencies

 

On August 26, 2016 the Company signed a lease for office space in Chesapeake, Virginia. The term of the lease is for one year at $69 per month.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

 

 Foreign Currency Translation

 

The Company translates the foreign currency financial statements into US Dollars using the year or reporting period end of average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’ equity (deficit). Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses on the statement of operations.

 

Fair Value of Financial Instruments

 

The carrying amount of the Company’s financial assets and liabilities approximates their fair values due to their short term maturities.

 

Loss per Common Share

 

The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted loss per share is the same as basic loss per share due to the lack of dilutive items in the Company. As of August 31, 2017, there were no common stock equivalents outstanding.

 

Income Taxes

 

The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.

 

Stock-based Compensation

 

The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company has not adopted a stock option plan and has not granted any stock options. As at August 31, 2017 the Company had not adopted a stock option plan nor had it granted any stock options. Accordingly no stock-based compensation has been recorded to date.

 

Recent Accounting Pronouncements

 

The Company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.8.0.1
COMMON STOCK
9 Months Ended
Aug. 31, 2017
Notes to Financial Statements  
NOTE 3 - COMMON STOCK

The Company’s capitalization is 200,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued.

 

On November 16, 2016, the Company issued 9,000,000 common shares at $0.001 per share to the sole director and President of the Company for cash proceeds of $9,000.

 

Between August 8 and August 23, 2017 the Company sold 450,000 shares of its common stock at $0.03 for $13,500 net proceeds to the Company. As of August 31, 2017 the Company had not issued these shares. This is reflected on the balance sheet as subscription payable. See also Note 4.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
RELATED PARTY TRANSACTIONS
9 Months Ended
Aug. 31, 2017
Notes to Financial Statements  
NOTE 4 - RELATED PARTY TRANSACTIONS

During the three months ended August 31, 2017, the Company consummated a private placement as a result of which $13,500 was raised through the purchase of 450,000 shares of the Company’s common stock by third party investors. To facilitate the transfer of funds from the investors to the Company, the proceeds from the private placement were held in an account owned by Mikrocoze Private Limited., a private company owned by Sukmanjit Singh, the Company’s CEO. As of August 31, 2017, the funds were still held in this account. 

 

During the period ended August 31, 2017, the CEO paid expenses of $6,189 on behalf of the Company. The total amount owed to the CEO as of August 31, 2017 is $8,150. The amounts due to related party are unsecured and non- interest-bearing with no set terms of repayment.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
AGREEMENTS
9 Months Ended
Aug. 31, 2017
Notes to Financial Statements  
NOTE 5 - AGREEMENTS

On January 4, 2017 the Company entered into a Master Manufacturing Agreement to manufacture its line of micro-furniture with New Bharat Furniture House, an India corporation having its principal place of business in Amritsar, Punjab, India. The term of the agreement is five years.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
9 Months Ended
Aug. 31, 2017
Summary Of Significant Accounting Policies Policies  
Basis of Presentation – Unaudited Financial Statements

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form S-1. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the fiscal year ended November 30, 2016 included in the Company’s year-end financial statements on Form S-1 filed with the Securities and Exchange Commission. The unaudited financial statements should be read in conjunction with those financial statements included in the Form S-1. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the nine months ended August 31, 2017 are not necessarily indicative of the results that may be expected for the year ending November 30, 2017.

Use of Estimates and Assumptions

Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain 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 period. Accordingly, actual results could differ from those estimates.

Commitments and Contingencies

On August 26, 2016 the Company signed a lease for office space in Chesapeake, Virginia. The term of the lease is for one year at $69 per month.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

Foreign Currency Translation

The Company translates the foreign currency financial statements into US Dollars using the year or reporting period end of average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’ equity (deficit). Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses on the statement of operations. 

Fair Value of Financial Instruments

The carrying amount of the Company’s financial assets and liabilities approximates their fair values due to their short term maturities.

Loss per Common Share

The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted loss per share is the same as basic loss per share due to the lack of dilutive items in the Company. As of August 31, 2017, there were no common stock equivalents outstanding.

Income Taxes

The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.

Stock-based Compensation

The Company follows ASC 718-10, "Stock Compensation", which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 is a revision to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and its related implementation guidance. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company has not adopted a stock option plan and has not granted any stock options. As at August 31, 2017 the Company had not adopted a stock option plan nor had it granted any stock options. Accordingly no stock-based compensation has been recorded to date.

Recent Accounting Pronouncements

The Company does not expect the adoption of any recent accounting pronouncements to have a material impact on its financial statements.

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Aug. 31, 2016
Aug. 31, 2017
Aug. 31, 2017
Aug. 31, 2017
State or country of incorporation     Nevada  
Incorporation date     Aug. 17, 2016  
Operating losses $ (1,517) $ (3,880) $ (15,605) $ 17,546
Working capital deficit   $ 4,954 $ 4,954 $ 4,954
Founders shares [Member]        
Price per share   $ 0.001 $ 0.001 $ 0.001
Common stock issued   9,000,000 9,000,000 9,000,000
Net proceed from common stock     $ 9,000  
Private Placement [Member]        
Price per share   $ 0.03 $ 0.03 $ 0.03
Common stock issued   450,000 450,000 450,000
Net proceed from common stock     $ 13,500  
XML 22 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)
1 Months Ended
Aug. 26, 2016
USD ($)
Summary Of Significant Accounting Policies Details Narrative  
Term of lease 1 year
Rent expenses $ 69
XML 23 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
COMMON STOCK (Details Narrative) - USD ($)
1 Months Ended
Aug. 23, 2017
Nov. 16, 2016
Aug. 31, 2017
Nov. 30, 2016
Common stock, Shares authorized     200,000,000 200,000,000
Common stock, Shares par value     $ 0.001 $ 0.001
Common stock, Shares issued     9,000,000 9,000,000
DirectorAndPresident [Member]        
Common stock, Shares issued   9,000,000    
Price per share   $ 0.001    
Net cash proceeds from common stock   $ 9,000    
Common Stock [Member]        
Price per share $ 0.03      
Net cash proceeds from common stock $ 13,500      
Common stock issued 450,000      
XML 24 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Aug. 31, 2016
Aug. 31, 2017
Aug. 31, 2017
Nov. 30, 2016
Expenses paid by related party $ 1,450   $ 6,189  
Due to related party   $ 8,150 $ 8,150 $ 1,961
Third Party Investors [Member]        
Common stock issued   450,000 450,000  
Net proceed from common stock   $ 13,500    
CEO [Member]        
Expenses paid by related party     $ 6,189  
Due to related party   $ 8,150 $ 8,150  
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
AGREEMENTS (Details Narrative)
Jan. 04, 2017
Master manufacturing agreement [Member] | New bharat furniture house [Member]  
Term of the agreement 5 years
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