Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
May 31, 2019 | Aug. 29, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | LZG International, Inc. | |
Entity Central Index Key | 0001126115 | |
Document Type | 10-K | |
Document Period End Date | May 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --05-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 250,556 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2019 | |
Is entity small business | true | |
Is entity emerging growth company | true | |
Entity extended transition period | false | |
Is Entity Well Known Seasoned Issuer? | No | |
Is Entity Voluntary Filer? | No | |
Is Entity Shell Company? | true |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | May 31, 2019 | May 31, 2018 |
Current Assets | ||
Cash | $ 434 | $ 539 |
Total Current Assets | 434 | 539 |
Total Assets | 434 | 539 |
Current Liabilities | ||
Accounts Payable | 325 | |
Accounts Payable - related party | 6,100 | 6,100 |
Note Payable - related party | 98,800 | 92,500 |
Note Payable | 59,100 | 51,100 |
Accrued Interest - related party | 7,526 | |
Accrued Interest | 20,213 | 15,810 |
Total Current Liabilities | 191,739 | 165,835 |
Long-Term Liabilities | ||
Notes Payable - related party | 23,500 | 23,500 |
Accrued Interest- related party | 17,457 | 15,577 |
Total Long-term Liabilities | 40,957 | 39,077 |
Total Liabilities | 232,696 | 204,912 |
Stockholders' Deficit | ||
Preferred stock, $0.001 par value, 20,000,000 shares authorized, none issued and outstanding | ||
Common Stock, $0.001 par value, 100,000,000 shares authorized, 250,556 shares issued and outstanding | 251 | 251 |
Additional Paid in Capital | 3,063,134 | 3,063,134 |
Accumulated Deficit | (3,295,647) | (3,267,758) |
Total Stockholders' Equity (Deficit) | (232,262) | (204,373) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 434 | $ 539 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | May 31, 2019 | May 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock; par value | $ 0.001 | $ 0.001 |
Preferred stock; shares authorized | 20,000,000 | 20,000,000 |
Preferred stock; shares issued | ||
Preferred stock; shares outstanding | ||
Common stock; par value | $ 0.001 | $ 0.001 |
Common Stock; shares authorized | 100,000,000 | 100,000,000 |
Common stock; shares issued | 250,556 | 250,556 |
Common stock; shares outstanding | 250,556 | 250,556 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | ||
Expenses | ||
General and administrative | 14,080 | 12,899 |
Total Expenses | 14,080 | 12,899 |
Net Operating Loss Before Other Expense | (14,080) | (12,899) |
Other Income (Expense) | ||
Interest Expense | (4,403) | (3,858) |
Interest Expense- related party | (9,406) | (1,880) |
Total Other Expense | (13,809) | (5,738) |
Loss Before Income Taxes | (27,889) | (18,637) |
Income taxes | ||
Net Loss | $ (27,889) | $ (18,637) |
Net Loss Per Share | $ (0.11) | $ (0.07) |
Weighted Average Shares Outstanding | 250,556 | 250,556 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity (Deficit) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance at May. 31, 2017 | $ 251 | $ 3,063,134 | $ (3,249,121) | $ (185,736) |
Beginning Balance (in shares) at May. 31, 2017 | 250,556 | |||
Net loss | (18,637) | (18,637) | ||
Ending Balance at Mar. 31, 2018 | $ 251 | 3,063,134 | (3,267,758) | (204,373) |
Ending Balance (in shares) at Mar. 31, 2018 | 250,556 | |||
Beginning Balance at May. 31, 2017 | $ 251 | 3,063,134 | (3,249,121) | (185,736) |
Beginning Balance (in shares) at May. 31, 2017 | 250,556 | |||
Net loss | (18,637) | |||
Ending Balance at May. 31, 2018 | $ 251 | 3,063,134 | (3,267,758) | (204,373) |
Ending Balance (in shares) at May. 31, 2018 | 250,556 | |||
Net loss | (27,889) | (27,889) | ||
Ending Balance at Mar. 31, 2019 | $ 251 | 3,063,134 | (3,295,647) | (232,262) |
Ending Balance (in shares) at Mar. 31, 2019 | 250,556 | |||
Beginning Balance at May. 31, 2018 | $ 251 | $ 3,063,134 | $ (3,267,758) | (204,373) |
Beginning Balance (in shares) at May. 31, 2018 | 250,556 | |||
Net loss | (27,889) | |||
Ending Balance at May. 31, 2019 | $ (232,262) |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Loss | $ (27,889) | $ (18,637) |
Changes in assets and liabilities | ||
Accounts payable - related party | 6,300 | 6,100 |
Accounts payable | (325) | 325 |
Accrued interest | 4,403 | 3,858 |
Accrued interest- related party | 9,406 | 1,880 |
Net cash provided (Used) by Operating Activities | (8,105) | (6,474) |
Cash Flows From Investing Activities | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable | 8,000 | 6,000 |
Net cash provided by Financing Activities | 8,000 | 6,000 |
Increase (Decrease) in Cash | (105) | (474) |
Cash and Cash Equivalents, Beginning of Period | 539 | 1,013 |
Cash and Cash Equivalents, End of Period | 434 | 539 |
Cash Paid for: | ||
Interest | ||
Income taxes | ||
Non-Cash Financing Activity | ||
Accounts payable - related party converted to note payable - related party | $ 6,300 | $ 92,000 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – Organization and Summary of Significant Accounting Policies (A) Organization LZG International, Inc. (the Company) is a Florida company that was incorporated on May 22, 2000. The Company has not paid any dividends and any dividends that may be paid in the future will depend upon the financial requirements of the Company and other relevant factors. The Company’s business model intended to establish an online grocery solution. A wholly-owned Canadian subsidiary, LazyGrocer.Com Corp., was established as part of this model, but it was dissolved in 2001. Activities from inception have included raising capital and developing the Company’s business plan, Securities and Exchange Commission filings and limited operations. (B) Use of Estimates In preparing financial statements, management is required 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 revenues and expenses during the reporting period. Actual results may differ from these estimates. (C) Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. (D) Fair Value of Financial Instruments It is not practicable to estimate the fair value of related party loans because there is no established market for these loans and it is inappropriate to estimate future cash flows, which are largely dependent on the Company establishing or acquiring operations at some future point. No financial instruments are held for trading purposes. (E) Basic and Fully Diluted Income (Loss) Per Share In accordance with ASC 260, Earnings Per Share , The computations of basic and fully diluted loss per share of common stock are based on the weighted average number of common shares outstanding during the periods presented in the financial statements, plus the common stock equivalents, which would arise from the exercise of stock options and warrants outstanding during the period, or the exercise of convertible debentures. As of May 31, 2019 and 2018, all common stock activity has been included and there were no items considered to be anti-dilutive. Following is a reconciliation of the loss per share for the years ended May 31, 2019 and 2018, respectively: For the Years Ended May 31, 2019 2018 Net (loss) available to common shareholders $ (27,889 ) $ (18,637 ) Weighted average shares 250,556 250,556 Basic and fully diluted loss per share (based on weighted average shares) $ (0.11 ) $ (0.07 ) (F) Concentration of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash. Our cash balances are maintained in accounts held by major banks and financial institutions located in the United States. The Company does not maintain amounts on deposit with a financial institution that are in excess of the federally insured limit of $250,000. The Company had $0 of cash balances in excess of federally insured limits at May 31, 2019 and 2018. |
Going Concern
Going Concern | 12 Months Ended |
May 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 2 – Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has current liabilities in excess of current assets, has incurred losses since inception, has negative cash flows from operations, and has no revenue-generating activities. Its activities have been limited for the past several years and it is dependent upon financing to continue operations. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management’s plan to acquire or merge with other operating companies. |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 3 – Income Taxes At May 31, 2019, the Company has available unused net operating loss carryforwards of approximately $233,000 which may be applied against future taxable income. Due to a substantial change in the Company’s ownership during June, 2008 there will be an annual limitation on the amount of previous net operating loss carryforwards that can be utilized. The amount of and ultimate realization of the benefits from the net operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the net operating loss carryforwards, the Company has established a valuation allowance equal to the tax effect of the net operating loss carryforwards and, therefore, no deferred tax asset has been recognized for the net operating loss carryforwards. The net deferred tax assets are approximately $48,800 and $43,200 as of May 31, 2019 and 2018, respectively, with an offsetting valuation allowance of the same amount resulting in a change in the valuation allowance of approximately $5,600 during the year ended May 31, 2019, (exclusive of effects of Federal tax rate changes). Deferred tax assets and the valuation account are as follows: For the Years Ended May 31, 2019 2018 Deferred tax asset: NOL Carryforward (at 21%) $ 48,800 $ 43,200 Valuation allowance (48,800 ) (43,200 ) $ — $ — A reconciliation of amounts obtained by applying the Federal tax rate to pre-tax income to income tax benefit is a follows: For the Years Ended May 31, 2019 2018 Federal tax benefit (at 21%) $ 5,900 $ 3,900 Change in valuation allowance (5,900 ) (15,100 ) Effect of rate change on Deferred Tax Asset — 11,200 $ — $ — The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of May 31, 2019 and 2018 the Company had no accrued interest or penalties related to uncertain tax positions. The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended May 31, 2016 through 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
May 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 4 – Related Party Transactions The financial statements include related party transactions, which as of May 31, 2019, were loans from an officer of the Company totaling $23,500. The loans had an original due date of June 30, 2014 and have been extended to June 30, 2020. They are not collateralized, and bear interest at 8% per annum. Interest expense was $1,880 for each of the years ended May 31, 2019 and 2018 and accrued interest on the notes totaled $17,457 and $15,577 at May 31, 2019 and 2018, respectively. On May 31, 2018, a stockholder, converted $92,500 of its accounts payable to a promissory note, which bears interest at 8% per annum and is due on demand. On May 31, 2019, the stockholder, converted $6,300 of its accounts payable to a promissory note which bears interest at 8% per annum and is due on demand, resulting in a total balance owed of $98,800. Interest expense was $7,526 and $0 for the years ended May 31, 2019 and 2018, and accrued interest on the notes totaled $7,526 and $0 at May 31, 2019 and 2018, respectively. |
Loan Payable
Loan Payable | 12 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Loan Payable | NOTE 5 – Loan Payable The Company borrowed $59,100 from a third party. The loan is due on demand, un-collateralized, and bears interest at 8% per annum. Interest expense was $4,403 and $3,858 for years ended May 31, 2019 and 2018, respectively, and accrued interest on the loan totaled $20,213 and $15,810 at May 31, 2019 and 2018, respectively. |
Recent Pronouncements
Recent Pronouncements | 12 Months Ended |
May 31, 2019 | |
Notes to Financial Statements | |
Recent Pronouncements | NOTE 6 – Recent Pronouncements The Company has evaluated Recent Accounting Pronouncements and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
May 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 7 – Subsequent Events The Company has evaluated all events occurring after the date of the accompanying balance sheets through the date the financial statements were issued and did not identify any material subsequent events requiring adjustments or disclosure to the accompanying financial statements. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Organization | (A) Organization LZG International, Inc. (the Company) is a Florida company that was incorporated on May 22, 2000. The Company has not paid any dividends and any dividends that may be paid in the future will depend upon the financial requirements of the Company and other relevant factors. The Company’s business model intended to establish an online grocery solution. A wholly-owned Canadian subsidiary, LazyGrocer.Com Corp., was established as part of this model, but it was dissolved in 2001. Activities from inception have included raising capital and developing the Company’s business plan, Securities and Exchange Commission filings and limited operations. |
Use of Estimates | (B) Use of Estimates In preparing financial statements, management is required 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 revenues and expenses during the reporting period. Actual results may differ from these estimates. |
Cash Equivalents | (C) Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. |
Fair Value of Financial Instruments | (D) Fair Value of Financial Instruments It is not practicable to estimate the fair value of related party loans because there is no established market for these loans and it is inappropriate to estimate future cash flows, which are largely dependent on the Company establishing or acquiring operations at some future point. No financial instruments are held for trading purposes. |
Basic and Fully Diluted Income (Loss) Per Share | (E) Basic and Fully Diluted Income (Loss) Per Share In accordance with ASC 260, Earnings Per Share , The computations of basic and fully diluted loss per share of common stock are based on the weighted average number of common shares outstanding during the periods presented in the financial statements, plus the common stock equivalents, which would arise from the exercise of stock options and warrants outstanding during the period, or the exercise of convertible debentures. As of May 31, 2019 and 2018, all common stock activity has been included and there were no items considered to be anti-dilutive. Following is a reconciliation of the loss per share for the years ended May 31, 2019 and 2018, respectively: For the Years Ended May 31, 2019 2018 Net (loss) available to common shareholders $ (27,889 ) $ (18,637 ) Weighted average shares 250,556 250,556 Basic and fully diluted loss per share (based on weighted average shares) $ (0.11 ) $ (0.07 ) |
Concentration of Credit Risk | (F) Concentration of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash. Our cash balances are maintained in accounts held by major banks and financial institutions located in the United States. The Company does not maintain amounts on deposit with a financial institution that are in excess of the federally insured limit of $250,000. The Company had $0 of cash balances in excess of federally insured limits at May 31, 2019 and 2018. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of loss per share | For the Years Ended May 31, 2019 2018 Net (loss) available to common shareholders $ (27,889 ) $ (18,637 ) Weighted average shares 250,556 250,556 Basic and fully diluted loss per share (based on weighted average shares) $ (0.11 ) $ (0.07 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Deferred tax assets | For the Years Ended May 31, 2019 2018 Deferred tax asset: NOL Carryforward (at 21%) $ 48,800 $ 43,200 Valuation allowance (48,800 ) (43,200 ) $ — $ — |
Income Tax Reconciliation | For the Years Ended May 31, 2019 2018 Federal tax benefit (at 21%) $ 5,900 $ 3,900 Change in valuation allowance (5,900 ) (15,100 ) Effect of rate change on Deferred Tax Asset — 11,200 $ — $ — |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Reconciliate of loss per share (Details narrative) - USD ($) | 10 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | May 31, 2019 | May 31, 2018 | |
Accounting Policies [Abstract] | ||||
Net (loss) available to Common shareholders | $ (27,889) | $ (18,637) | $ (27,889) | $ (18,637) |
Weighted average shares | 250,556 | 250,556 | ||
Basic and fully diluted loss per share (based on weighted average shares) | $ (0.11) | $ (0.07) |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Accounting Policies [Abstract] | ||
Federally insured limit | $ 250,000 | |
Cash balances in excess of federally insured limits | $ 0 | $ 0 |
Deferred Tax Assets (Details)
Deferred Tax Assets (Details) - USD ($) | May 31, 2019 | May 31, 2018 |
Deferred tax asset: | ||
NOL Carryforward (at 21% and 15%) | $ 48,800 | $ 43,200 |
Valuation allowance | (48,800) | (43,200) |
Deferred tax assets |
Income Tax Reconciliation (Deta
Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal tax benefit (at 21% and 15%) | $ 5,900 | $ 3,900 |
Change in valuation allowance | (5,900) | (15,100) |
Effect of rate change on Deferred Tax Asset | 11,200 | |
Tax rate |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 233,000 | $ 205,000 |
Net deferred tax assets | 48,800 | $ 43,200 |
Change in the valuation allowance | $ 5,600 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | Jun. 30, 2014 | |
Notes Payable - related party | $ 23,500 | $ 23,500 | |
Interest expense | 7,526 | ||
Accrued Interest- related party | 17,457 | 15,577 | |
Note Payable - related party | 98,800 | 92,500 | |
Accrued Interest - related party | 7,526 | ||
Note Payable | |||
Notes Payable - related party | $ 23,500 | ||
Note payable; maturity date | Jun. 30, 2020 | ||
Note payable; interest | 8.00% | ||
Interest expense | 1,880 | 1,880 | |
Accrued Interest- related party | $ 17,457 | $ 15,577 | |
Note Payable (2) | |||
Note payable; interest | 8.00% | ||
Account payable converted to note payable | $ 92,500 | ||
Note Payable (3) | |||
Note payable; interest | 8.00% | ||
Account payable converted to note payable | $ 6,300 |
Loan Payable (Details Narrative
Loan Payable (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Debt Disclosure [Abstract] | ||
Note Payable | $ 59,100 | $ 51,100 |
Interest rate | 8.00% | |
Interest expense | $ 4,403 | 3,858 |
Accrued Interest | $ 20,213 | $ 15,810 |