Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

The accounting polices used in the preparation of these interim financial statements are consistent with those of the Company’s audited financial statements for the year ended December 31, 2017.

The Company also implemented the following accounting standard effective January 1, 2018.

Effective January 1, 2018, the Company adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, (“ASC 606”) using the full retrospective transition method. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identifies the contract(s) with a customer; (ii) identifies the performance obligations in the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are distinct performance obligations.

The Company’s products consist of truck bed covers for light duty trucks with its primary markets being in the United States and Canada. The Company plans to expand globally as they find suitable markets with a demand for the products they manufacture. The Company’s sales their product through the aftermarket and other markets. Revenue generated in Canada for the three and six months ended June 30, 2018, was $19,574 and $124,947, respectively. Revenue generated in the United States for the three and six months ended June 30, 2018 was $141,410 and $171,041, respectively.

The implementation of ASC 606 had no effect on this period or prior periods. Had the implementation of ASC 606 been applicable, the Company’s prior periods would have needed to be revised to present revenue as if ASC 606 had been applicable for all periods presented.