Nevada
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87-0574491
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.) |
1981 E. Murray Holladay Rd, Suite 100, Salt Lake City, Utah
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84117
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(Address of principal executive offices)
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(Zip Code)
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Large Accelerated Filer [ ]
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Accelerated Filer [ ]
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Non-Accelerated filer [ ]
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Smaller Reporting Company [ x ]
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Class
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Outstanding as of August 1, 2014
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Common Stock, $0.001
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4,269,950
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Page | |
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Number | |
PART I.
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||
ITEM 1.
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Financial Statements (unaudited)
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3
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Balance Sheets
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4
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June 30, 2014 and December 31, 2013
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||
Statements of Operations
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||
For the three and six months ended June 30, 2014 and 2013 and the period June 16, 1977 to June 30, 2014
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5
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|
|
||
Statements of Cash Flows
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||
For the six months ended June 30, 2014 and 2013 and the period June 16, 1977 to June 30, 2014
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6
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|
|
||
Notes to Financial Statements
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7
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ITEM 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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9
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ITEM 3.
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Quantitative and Qualtitative Disclosures About Market Risk
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10
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ITEM 4T.
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Controls and Procedures
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10
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PART II.
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||
ITEM 1. |
Legal Proceedings
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10
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ITEM 6. |
Exhibits
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10
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Signatures
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11
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ORANCO, INC.
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||||||||
(A Development Stage Company)
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||||||||
BALANCE SHEETS
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||||||||
JUNE 30, 2014 AND DECEMBER 31, 2013
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||||||||
June 30,
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December 31,
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|||||||
2014
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2013
|
|||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash
|
$ | 71,710 | $ | 86,337 | ||||
Prepaid expenses
|
4,580 | 4,880 | ||||||
Total current assets
|
76,290 | 91,217 | ||||||
Total Assets
|
$ | 76,290 | $ | 91,217 | ||||
Liabilities and Stockholders' Equity
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable, related party
|
$ | -- | $ | 1,425 | ||||
Accountants payable
|
2,260 | 1,400 | ||||||
Total current liabilities
|
2,260 | 2,825 | ||||||
Stockholders' Equity:
|
||||||||
Common stock, $.001 par value 100,000,000 shares authorized, 4,269,950 issued and outstanding
|
4,270 | 4,270 | ||||||
Additional paid-in capital
|
349,898 | 349,898 | ||||||
Deficit accumulated during the development stage
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(280,138 | ) | (265,776 | ) | ||||
Total Stockholders' Equity
|
74,030 | 88,392 | ||||||
Total Liabilities and Stockholders' Equity
|
$ | 76,290 | $ | 91,217 |
For the
|
||||||||||||||||||||
Period
|
||||||||||||||||||||
For the
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For the
|
For the
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For the
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June 16, 1977
|
||||||||||||||||
Three Months
|
Three Months
|
Six Months
|
Six Months
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(Inception)
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||||||||||||||||
Ended
|
Ended
|
Ended
|
Ended
|
Through
|
||||||||||||||||
June 30,
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June 30,
|
June 30,
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June 30,
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June 30,
|
||||||||||||||||
2014
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2013
|
2014
|
2013
|
2014
|
||||||||||||||||
Revenues
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Expenses, general and administrative
|
4,660 | 3,783 | 14,382 | 15,353 | 443,135 | |||||||||||||||
Valuation adjustment - availablefor sale securities
|
-- | -- | -- | -- | 30,401 | |||||||||||||||
Operating loss
|
(4,660 | ) | (3,783 | ) | (14,382 | ) | (15,353 | ) | (473,536 | ) | ||||||||||
Other income (expense):
|
||||||||||||||||||||
Litigation settlement
|
-- | -- | -- | -- | (12,500 | ) | ||||||||||||||
Interest and contract income
|
10 | 1,125 | 20 | 2,238 | 205,898 | |||||||||||||||
Loss before provision for income taxes
|
(4,650 | ) | (2,658 | ) | (14,362 | ) | (13,115 | ) | (280,138 | ) | ||||||||||
Provision for income taxes | - | - | - | - | - | |||||||||||||||
Net loss
|
$ | (4,650 | ) | $ | (2,658 | ) | $ | (14,362 | ) | $ | (13,115 | ) | $ | (280,138 | ) | |||||
Net loss per share | $ | -- | $ | -- | $ | -- | $ | -- | ||||||||||||
Weighted average shares outstanding
|
4,269,950 | 4,269,950 | 4,269,950 | 4,269,950 |
For the
|
||||||||||||
Period
|
||||||||||||
For the
|
For the
|
June 16, 1977
|
||||||||||
Six Months
|
Six Months
|
(Inception)
|
||||||||||
Ended
|
Ended
|
Through
|
||||||||||
June 30,
|
June 30,
|
June 30,
|
||||||||||
2014
|
2013
|
2014
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net loss
|
$ | (14,362 | ) | $ | (13,115 | ) | $ | (280,138 | ) | |||
Adjustments to reconcile net loss to cash provided by operating activities:
|
||||||||||||
(Increase) decrease in prepaid expenses
|
300 | -- | (4,580 | ) | ||||||||
(Increase) decrease in interest receivable
|
-- | 3 | -- | |||||||||
Increase (decrease) in accounts payable
|
(565 | ) | (10,450 | ) | 2,260 | |||||||
Net cash used by operating activities
|
(14,627 | ) | (23,562 | ) | (282,458 | ) | ||||||
Cash flows from investing activities:
|
-- | -- | -- | |||||||||
Cash flows from financing activities:
|
||||||||||||
Issuance of common stock
|
-- | -- | 354,168 | |||||||||
Net increase (decrease) in cash
|
(14,627 | ) | (23,562 | ) | 71,710 | |||||||
Cash, beginning of period | 86,337 | 39,881 | - | |||||||||
Cash, end of period
|
$ | 71,710 | $ | 16,319 | $ | 71,710 | ||||||
Interest paid | $ | - | $ | - | $ | - | ||||||
Income taxes paid | $ | - | $ | - | $ | - |
1.
|
Summary of Business and Significant Accounting Policies
|
|
a.
|
Summary of Business
|
|
The Company was incorporated under the laws of the State of Nevada on June 16, 1977. The Company has been in the business of the development of mineral deposits. During 1983 all activities were abandoned and the Company has remained inactive since that time. The Company has not commenced principal operations and is considered a "Development Stage Company" as defined by FASB ASC 915 (formerly Statement of Financial Accounting Standards (SFAS) No. 7).
|
||
b.
|
Basis of Presentation
|
|
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) as promulgated in the United States of America.
|
||
In July 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 105-10, formerly Statement of Financial Accounting Standards (“SFAS”) No. 168, The FASB Accounting Standards Codification and Hierarchy of Generally Accepted Accounting Principles, which became the single source of authoritative GAAP recognized by the FASB. ASC 105-10 does not change current U.S. GAAP, but on the effective date, the FASB ASC superseded all then existing non-SEC accounting and reporting standards.
|
||
c.
|
Cash Flows
|
|
For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash or cash equivalents.
|
||
d.
|
Net Loss Per Share
|
|
The net loss per share calculation is based on the weighted average number of shares outstanding during the period.
|
Notes to Financial Statements – Continued
|
||
e.
|
Use of Estimates
|
|
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
|
||
f.
|
Fair Value of Financial Instruments
|
|
ASC 820-10 (formerly SFAS No. 157, Fair Value Measurements) requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of June 30, 2014 and December 31, 2013, the carrying value of certain financial instruments approximates fair value due to the short-term nature of such instruments.
|
||
2.
|
Warrants and Stock Options
|
|
No options or warrants are outstanding to acquire the Company's common stock. | ||
3.
|
Income Taxes
|
|
The Company has had no taxable income under Federal or State tax laws. The Company has loss carryforwards totaling $265,776 that may be offset against future federal income taxes. If not used, the carryforwards will expire 20 years after they are incurred. Due to the Company being in the development stage and incurring net operating losses, a valuation allowance has been provided to reduce the deferred tax assets from the net operating losses to zero. Therefore, there are no tax benefits recognized in the accompanying statement of operations. | ||
4.
|
Office Rent
|
|
The Company’s board of directors approved a 24 month office lease at $475 per month to a current director of the Company. The amount expensed for the six-months ended June 30, 2014 and 2013 amounted to $1,425 and $950, respectively. |
Exhibit 31.1 Rule 13a-14(a)/15d-14(a) Certification.
|
Exhibit 32.1 Certification by the Chief Executive Officer/Acting Chief Financial Officer Relating to a Periodic Report Containing Financial Statements.*
|
101.INS XBRL Instance*
|
101.SCH XBRL Schema*
|
101.CAL XBRL Calculation*
|
101.DEF XBRL Definition*
|
101.LAB XBRL Label*
|
101.PRE XBRL Presentation*
|
ORANCO, Inc.
|
|
[Registrant]
|
|
/s/ Juan S Zabala
|
|
Juan S. Zabala
|
|
President & Treasurer
|
|
August 5, 2014
|
Date: August 5, 2014
|
/s/ Juan S Zabala
|
Juan S. Zabala, CEO & CFO
|
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4. Office Rent
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Notes | |
4. Office Rent | 4. Office Rent
The Companys board of directors approved a 24 month office lease at $475 per month to a current director of the Company. The amount expensed for the six-months ended June 30, 2014 and 2013 amounted to $1,425 and $950, respectively. |
'!L;W)E
3. Income Taxes
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Notes | |
3. Income Taxes | 3. Income Taxes
The Company has had no taxable income under Federal or State tax laws. The Company has loss carryforwards totaling $265,776 that may be offset against future federal income taxes. If not used, the carryforwards will expire 20 years after they are incurred. Due to the Company being in the development stage and incurring net operating losses, a valuation allowance has been provided to reduce the deferred tax assets from the net operating losses to zero. Therefore, there are no tax benefits recognized in the accompanying statement of operations. |
BALANCE SHEETS (USD $)
|
Jun. 30, 2014
|
Dec. 31, 2013
|
---|---|---|
Current Assets: | ||
Cash | $ 71,710 | $ 86,337 |
Prepaid expenses | 4,580 | 4,880 |
Total Current Assets | 76,290 | 91,217 |
Total Assets | 76,290 | 91,217 |
Current Liabilities: | ||
Accounts payable, related party | 1,425 | |
Accountants payable | 2,260 | 1,400 |
Total current liabilities | 2,260 | 2,825 |
Stockholders' Equity: | ||
Common stock, $.001 par value 100,000,000 shares authorized, 4,269,950 issued and outstanding | 4,270 | 4,270 |
Additional paid-in capital | 349,898 | 349,898 |
Deficit accumulated during the Development Stage | (280,138) | (265,776) |
Total Stockholders' Equity | 74,030 | 88,392 |
Total Liabilities and Stockholders' Equity | $ 76,290 | $ 91,217 |
1. Summary of Business and Significant Accounting Policies
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Notes | |
1. Summary of Business and Significant Accounting Policies | 1. Summary of Business and Significant Accounting Policies
a. Summary of Business
The Company was incorporated under the laws of the State of Nevada on June 16, 1977. The Company has been in the business of the development of mineral deposits. During 1983 all activities were abandoned and the Company has remained inactive since that time. The Company has not commenced principal operations and is considered a "Development Stage Company" as defined by FASB ASC 915 (formerly Statement of Financial Accounting Standards (SFAS) No. 7).
b. Basis of Presentation
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as promulgated in the United States of America.
In July 2009, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (ASC) 105-10, formerly Statement of Financial Accounting Standards (SFAS) No. 168, The FASB Accounting Standards Codification and Hierarchy of Generally Accepted Accounting Principles, which became the single source of authoritative GAAP recognized by the FASB. ASC 105-10 does not change current U.S. GAAP, but on the effective date, the FASB ASC superseded all then existing non-SEC accounting and reporting standards.
c. Cash Flows
For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash or cash equivalents.
d. Net Loss Per Share
The net loss per share calculation is based on the weighted average number of shares outstanding during the period.
e. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
f. Fair Value of Financial Instruments
ASC 820-10 (formerly SFAS No. 157, Fair Value Measurements) requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of June 30, 2014 and December 31, 2013, the carrying value of certain financial instruments approximates fair value due to the short-term nature of such instruments. |
2. Warrants and Stock Options
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Notes | |
2. Warrants and Stock Options | 2. Warrants and Stock Options
No options or warrants are outstanding to acquire the Company's common stock. |
BALANCE SHEETS PARENTHETICAL (USD $)
|
Jun. 30, 2014
|
Dec. 31, 2013
|
---|---|---|
BALANCE SHEETS PARENTHETICAL | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 4,269,950 | 4,269,950 |
Common stock shares outstanding | 4,269,950 | 4,269,950 |
4. Office Rent (Details) (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2014
|
Jun. 30, 2013
|
|
Details | ||
Monthly office rent related party | $ 475 | |
Office rent expense related party | $ 1,425 | $ 950 |
Document and Entity Information
|
3 Months Ended | |
---|---|---|
Jun. 30, 2014
|
Aug. 01, 2014
|
|
Document and Entity Information | ||
Entity Registrant Name | ORANCO INC | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2014 | |
Amendment Flag | false | |
Entity Central Index Key | 0001098996 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 4,269,950 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, State Country Name | Nevada | |
Entity Incorporation, Date of Incorporation | Jun. 16, 1977 |
STATEMENTS OF OPERATIONS (USD $)
|
3 Months Ended | 6 Months Ended | 444 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2014
|
Jun. 30, 2013
|
Jun. 30, 2014
|
Jun. 30, 2013
|
Jun. 30, 2014
|
|
STATEMENTS OF OPERATIONS | |||||
Revenues | |||||
Expenses, general and administrative | 4,660 | 3,783 | 14,382 | 15,353 | 443,135 |
Valuation adjustment - available for sale securities | 30,401 | ||||
Operating loss | (4,660) | (3,783) | (14,382) | (15,353) | (473,536) |
Litigation settlement | (12,500) | ||||
Interest and contract income | 10 | 1,125 | 20 | 2,238 | 205,898 |
Loss before provision for income taxes | (4,650) | (2,658) | (14,362) | (13,115) | (280,138) |
Provision for income taxes | |||||
Net loss | $ (4,650) | $ (2,658) | $ (14,362) | $ (13,115) | $ (280,138) |
Net loss per share | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | |
Weighted average shares outstanding | 4,269,950 | 4,269,950 | 4,269,950 | 4,269,950 |
1. Summary of Business and Significant Accounting Policies: D. Net Loss Per Share (Policies)
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Policies | |
D. Net Loss Per Share | d. Net Loss Per Share
The net loss per share calculation is based on the weighted average number of shares outstanding during the period. |
1. Summary of Business and Significant Accounting Policies: C. Statement of Cash Flows (Policies)
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Policies | |
C. Statement of Cash Flows | c. Cash Flows
For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash or cash equivalents. |
1. Summary of Business and Significant Accounting Policies (Details)
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Details | |
Entity Incorporation, State Country Name | Nevada |
Entity Incorporation, Date of Incorporation | Jun. 16, 1977 |
1. Summary of Business and Significant Accounting Policies: E. Use of Estimates (Policies)
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Policies | |
E. Use of Estimates | e. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
1. Summary of Business and Significant Accounting Policies: F. Fair Value of Financial Instruments (Policies)
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Policies | |
F. Fair Value of Financial Instruments | f. Fair Value of Financial Instruments
ASC 820-10 (formerly SFAS No. 157, Fair Value Measurements) requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of June 30, 2014 and December 31, 2013, the carrying value of certain financial instruments approximates fair value due to the short-term nature of such instruments. |
3. Income Taxes (Details) (USD $)
|
Jun. 30, 2014
|
---|---|
Details | |
Operating Loss Carryforwards | $ 265,776 |
STATEMENTS OF CASH FLOWS (USD $)
|
6 Months Ended | 444 Months Ended | |
---|---|---|---|
Jun. 30, 2014
|
Jun. 30, 2013
|
Jun. 30, 2014
|
|
Cash flows from operating activities: | |||
Net loss | $ (14,362) | $ (13,115) | $ (280,138) |
Adjustments to reconcile net loss to cash provided by operating activities: | |||
(Increase) decrease in prepaid expenses | 300 | (4,580) | |
(Increase) decrease in interest receivable | 3 | ||
Increase (decrease) in accounts payable | (565) | (10,450) | 2,260 |
Net cash used by operating activities | (14,627) | (23,562) | (282,458) |
Cash flows from investing activities: | |||
Cash flows from financing activities: | |||
Issuance of common stock | 354,168 | ||
Net increase (decrease) in cash | (14,627) | (23,562) | 71,710 |
Cash, beginning of period | 86,337 | 39,881 | |
Cash, end of period | 71,710 | 16,319 | 71,710 |
Interest paid | |||
Income taxes paid |
1. Summary of Business and Significant Accounting Policies: B. Basis of Presentation (Policies)
|
3 Months Ended |
---|---|
Jun. 30, 2014
|
|
Policies | |
B. Basis of Presentation | b. Basis of Presentation
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as promulgated in the United States of America.
In July 2009, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (ASC) 105-10, formerly Statement of Financial Accounting Standards (SFAS) No. 168, The FASB Accounting Standards Codification and Hierarchy of Generally Accepted Accounting Principles, which became the single source of authoritative GAAP recognized by the FASB. ASC 105-10 does not change current U.S. GAAP, but on the effective date, the FASB ASC superseded all then existing non-SEC accounting and reporting standards. |
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