Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information | |
Entity Registrant Name | EURASIA ENERGY LTD |
Entity Central Index Key | 1278465 |
Document Type | 20-F |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 34,548,368 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2014 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | ||
Cash | $74,634 | $107,190 |
Prepaid expenses | 875 | 875 |
Total current assets | 75,509 | 108,065 |
Current liabilities | ||
Accounts payable and accrued expenses | 3,550 | 3,400 |
Total current liabilities | 3,550 | 3,400 |
Stockholders' equity (Note 6) | ||
Common stock, par value $0.001, authorized 100,000,000 shares; issued and outstanding shares (December 31, 2014: 34,548,368; December 31, 2013: 34,548,368) | 34,548 | 34,548 |
Additional paid-in capital | 7,104,130 | 7,104,130 |
Accumulated deficit | -9,066 | -9,066 |
Deficit accumulated during the exploration stage | -7,057,653 | -7,024,947 |
Total stockholders' equity | 71,959 | 104,665 |
Total liabilities and stockholders' equity | $75,509 | $108,065 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Balance Sheets Parenthetical | ||
Common stock par value | $0.00 | $0.00 |
Common stock authorized shares | 100,000,000 | 100,000,000 |
Common stock issued shares | 34,548,368 | 34,548,368 |
Common stock outstanding shares | 34,548,368 | 34,548,368 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | 109 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Statements Of Operations | ||||
Revenue | ||||
Expenses | ||||
Consulting Fees | 16,580 | 302,757 | ||
Data acquisition cost | 19,300 | |||
Director and management fees - related party | 15,000 | 879,583 | ||
General and administrative | 22,608 | 25,615 | 26,928 | 700,107 |
General and administrative - related party (Note 7) | 9,455 | 8,416 | 11,296 | 115,262 |
General and administrative - stock-based compensation | 7,650 | 4,325,999 | ||
Litigation expenses | 711,444 | |||
Travel | 643 | 3,731 | 27,177 | 331,205 |
Total Expenses | 32,706 | 37,762 | 104,631 | 7,385,657 |
Operating Loss | -32,706 | -37,762 | -104,631 | -7,385,657 |
Other income | 5,000 | 275,000 | ||
Interest income | 53,004 | |||
Net loss | ($32,706) | ($37,762) | ($99,631) | ($7,057,653) |
Net loss per common share (Note 5) - basic and fully diluted | $0 | $0 | $0 | |
Weighted average number of common (Note 5) shares outstanding - basic and fully diluted | 34,548,368 | 34,548,368 | 32,010,663 |
STATEMENTS_OF_STOCKHOLDERS_EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Deficit Accumulated During the Exploration Stage | Total |
Beginning Balance, Amount at Nov. 28, 2005 | $20,065 | $204,326 | ($9,066) | $215,325 | |
Beginning Balance, Shares at Nov. 28, 2005 | 20,065,135 | ||||
Net loss | -13,598 | -13,598 | |||
Ending Balance, Amount at Dec. 31, 2005 | 20,065 | 204,326 | -9,066 | -13,598 | 201,727 |
Beginning Balance, Shares at Dec. 31, 2005 | 20,065,135 | ||||
Issuance of common stock and warrants, February 2006, Amount | 250 | 749,750 | 750,000 | ||
Issuance of common stock and warrants, February 2006, Shares | 250,000 | ||||
Stock-based compensation expense | 3,675,633 | 3,675,633 | |||
Net loss | -4,099,012 | -4,099,012 | |||
Ending Balance, Amount at Dec. 31, 2006 | 20,315 | 4,629,709 | -9,066 | -4,112,610 | 528,348 |
Ending Balance, Shares at Dec. 31, 2006 | 20,315,135 | ||||
Stock-based compensation expense | 472,009 | 472,009 | |||
Common stock issued for cash, August 2007, Amount | 4,000 | 596,000 | 600,000 | ||
Common stock issued for cash, August 2007, Shares | 4,000,000 | ||||
Warrants issued with common stock | 400,000 | 400,000 | |||
Net loss | -1,372,674 | -1,372,674 | |||
Ending Balance, Amount at Dec. 31, 2007 | 24,315 | 6,097,718 | -9,066 | -5,485,284 | 627,683 |
Ending Balance, Shares at Dec. 31, 2007 | 24,315,135 | ||||
Stock-based compensation expense | 98,869 | 98,869 | |||
Cancellation of shares by exercise of dissent rights, Amount | -45 | -45 | |||
Cancellation of shares by exercise of dissent rights, Shares | -100 | ||||
Net loss | -496,794 | -496,794 | |||
Ending Balance, Amount at Dec. 31, 2008 | 24,315 | 6,196,542 | -9,066 | -5,982,078 | 229,713 |
Ending Balance, Shares at Dec. 31, 2008 | 24,315,035 | ||||
Stock-based compensation expense | 42,075 | 42,075 | |||
Net loss | -516,827 | -516,827 | |||
Ending Balance, Amount at Dec. 31, 2009 | 24,315 | 6,238,617 | -9,066 | -6,498,905 | -245,039 |
Ending Balance, Shares at Dec. 31, 2009 | 24,315,035 | ||||
Stock-based compensation expense | 19,800 | 19,800 | |||
Issuance of shares for debt settlement, Amount | 1,633 | 406,700 | 408,333 | ||
Issuance of shares for debt settlement, Shares | 1,633,333 | ||||
Net loss | 137,720 | 137,720 | |||
Ending Balance, Amount at Dec. 31, 2010 | 25,948 | 6,665,117 | -9,066 | -6,361,185 | 320,814 |
Ending Balance, Shares at Dec. 31, 2010 | 25,948,368 | ||||
Stock-based compensation expense | 9,963 | 9,963 | |||
Net loss | -526,369 | -526,369 | |||
Ending Balance, Amount at Dec. 31, 2011 | 25,948 | 6,675,080 | -9,066 | -6,887,554 | -195,592 |
Ending Balance, Shares at Dec. 31, 2011 | 25,948,368 | ||||
Stock-based compensation expense | 7,650 | 7,650 | |||
Issuance of shares for debt settlement, Amount | 8,600 | 421,400 | 430,000 | ||
Issuance of shares for debt settlement, Shares | 8,600,000 | ||||
Net loss | -99,631 | -99,631 | |||
Ending Balance, Amount at Dec. 31, 2012 | 34,548 | 7,104,130 | -9,066 | -6,987,185 | 142,427 |
Ending Balance, Shares at Dec. 31, 2012 | 34,548,368 | ||||
Net loss | -37,762 | -37,762 | |||
Ending Balance, Amount at Dec. 31, 2013 | 34,548 | 7,104,130 | -9,066 | -7,024,947 | 104,665 |
Ending Balance, Shares at Dec. 31, 2013 | 34,548,368 | ||||
Net loss | -32,706 | -32,706 | |||
Ending Balance, Amount at Dec. 31, 2014 | $34,548 | $7,104,130 | ($9,066) | ($7,057,653) | $71,959 |
Ending Balance, Shares at Dec. 31, 2014 | 34,548,368 |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | 109 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Cash flows used in operating activities | ||||
Net loss | ($32,706) | ($37,762) | ($99,631) | ($7,057,653) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | ||||
General and administrative - stock-based compensation | 7,650 | 4,325,999 | ||
Gain on disposal of vehicle | -5,000 | -5,000 | ||
Depreciation | 76,540 | |||
Change in operating assets and liabilities | ||||
Accounts receivable, related party | 5,000 | |||
Prepaid expenses | 15,281 | -875 | ||
Accounts payable and accrued expenses | 150 | 100 | -1,111 | 2,950 |
Accounts payable and accrued expenses - related party | -3,846 | -1,930 | 838,333 | |
Net cash provided by (used in) operating activities | -32,556 | -41,508 | -84,741 | -1,814,706 |
Cash flows provided by (used in) investing activities | ||||
Proceeds on disposal of vehicle | 5,000 | 5,000 | ||
Fixed assets addition | -76,540 | |||
Cash provided by (used in) investing activities | 5,000 | -71,540 | ||
Cash flows from financing activities | ||||
Proceeds from issuance of common stock and warrants | 1,749,955 | |||
Cash provided by financing activities | 1,749,955 | |||
Increase (decrease) in cash | -32,556 | -41,508 | -79,741 | -136,291 |
Cash, beginning of period | 107,190 | 148,698 | 228,439 | 210,925 |
Cash, end of period | 74,634 | 107,190 | 148,698 | 74,634 |
Stock issued for accounts payable and debt settlement | $430,000 | $838,333 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2014 | |
Organization | |
Note 1. Organization | Eurasia Energy Limited ("the Company") is currently inactive. The Company's principal business is to explore investment and/or involvement opportunities in both the resource and non-resource sectors and is currently evaluating suitable targets. To date, the Company has not generated revenues from operations. |
Going_Concern_Uncertainties
Going Concern Uncertainties | 12 Months Ended |
Dec. 31, 2014 | |
Going Concern Uncertainties | |
Note 2. Going Concern Uncertainties | The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which contemplate continuation of the Company as a going concern. However, the Company has limited operations and has sustained operating losses in recent years resulting in an accumulated deficit. In view of these matters, realization of a major portion of the assets in the accompanying balance sheets is dependent upon the continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financing requirements, and the success of its future operations. |
The Company has incurred losses from operations and has an accumulated deficit of $7,057,653 from the effective date of the exploration stage (November 28, 2005) to December 31, 2014. The Company's ability to continue as a going concern is in substantial doubt and is dependent upon obtaining additional financing and/or achieving a sustainable profitable level of operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
The Company believes that the cash on hand will be able to meet its on-going costs in the next 12 months. The Company may seek additional equity as necessary and it expects to raise funds through private or public equity investment in order to support existing operations and expand the range of its business. There is no assurance that such additional funds will be available for the Company on acceptable terms, if at all. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Significant Accounting Policies | |
Note 3. Significant Accounting Policies | (a) Principles of Accounting |
These financial statements are stated in U.S. Dollars and have been prepared in accordance with accounting principles generally accepted in the United States. | |
(b) Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Actual results could differ from those estimates. | |
(c) Cash | |
The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company occasionally has cash deposits in excess of insured limits. | |
(d) Income Taxes | |
Deferred income tax assets and liabilities are computed for differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. | |
A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the position would be sustained upon examination by taxing authorities. The amount recognized is the largest benefit that the Company believes has a greater than 50% likelihood of being realized upon settlement. | |
The Company reports a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of income taxes. No liability has been recorded for uncertain tax positions, or related interest or penalties. | |
(e) Earnings (Loss) Per Share | |
Basic earnings (loss) per share is computed by dividing income/loss (numerator) applicable to common stockholders by the weighted average number of common shares outstanding (denominator) for the period. Diluted earnings or loss per share is computed by dividing income (numerator) applicable to common stockholders by the weighted average number of common shares outstanding (denominator) and dilutive common stock equivalents for the period. | |
(f) Stock-Based Compensation | |
The Company accounts for stock based compensation for all stock-based awards at fair value on the date of grant and recognizes compensation over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes valuation model with the assumptions disclosed in the notes to financial statements. | |
(g) Foreign Currency Translation | |
The Company maintains a U.S. Dollar bank account at a financial institution in Canada. Foreign currency transactions are translated into their functional currency, which is the U.S. Dollar, in the following manner: | |
At the transaction date, each asset, liability, revenue and expense is translated into the functional currency by the use of the exchange rate in effect at that date. At the period end, monetary assets and liabilities are translated into U.S. Dollars by using the exchange rate in effect at that date. Transaction gains and losses that arise from exchange rate fluctuations are included in the results of operations. | |
(h) Fair Value of Financial Instruments | |
The determination of fair value of financial instruments is made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. The carrying value of cash, accounts payable and accrued expenses approximates their fair value because of the short-term nature of these instruments. The Company places its cash with high credit quality financial institutions. | |
(i) Related Party Transactions | |
A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements | |
Note 4. Recent Accounting Pronouncements | (a) Recent accounting pronouncements adopted during the period: |
(i) Foreign currency | |
On January 1, 2014, the Company adopted Accounting Standards Update (“ASU”) 2013-05, "Foreign Currency Matters (Topic 830); Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This guidance applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. Adoption of the accounting standard did not have any material impact on the financial statements. | |
(ii) Unrecognized tax benefits | |
On January 1, 2014, the Company adopted ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. Adoption of the accounting standard did not have any material impact on the financial statements. | |
(iii) Liquidation Basis of Accounting | |
On January 1, 2014, the Company adopted ASU 2013-07, entitled “Liquidation Basis of Accounting”. With ASU 2013-07, the FASB amends the guidance in the FASB Accounting Standards Codification Topic 205, entitled “Presentation of Financial Statements”. The amendments serve to clarify when and how reporting entities should apply the liquidation basis of accounting. The guidance is applicable to all reporting entities, whether they are public or private companies or not-for-profit entities. The guidance also provides principles for the recognition of assets and liabilities and disclosures, as well as related financial statement presentation requirements. Reporting entities are required to apply the requirements in ASU 2013-07 prospectively from the day that liquidation becomes imminent. The adoption of ASU 2013-07 did not have a material effect on the Company’s operating results or financial position. | |
(b) Recent accounting pronouncements not yet adopted: | |
(i) Revenue from Contracts with Customers | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for public entities for annual reporting periods beginning after December 15, 2016 and interim periods within those periods. Early adoption is not permitted. The FASB has approved a one-year deferral of the effective date with the option to early adopt using the original effective date. Entities may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements and footnote disclosures. | |
(ii) Development Stage Entities | |
In June 2014, the FASB issued ASU No. 2014-10, "Development Stage Entities", which intends to remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the update eliminates the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. ASU No. 2014-10 is effective for fiscal years and interim periods beginning after December 15, 2014, with early adoption permissible. The adoption of this update is expected to have a material impact on the presentation of the Company's financial statements in the period of adoption in that the Company will no longer be required to present inception-to-date information on the statements of operations, cash flows and changes in capital deficit. | |
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption. |
Earnings_Loss_per_Share
Earnings (Loss) per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Loss Per Share | |||||||||||||
Note 5. Earnings (Loss) per Share | Basic earnings or loss per share is based on the weighted average number of shares outstanding during the period of the financial statements. Diluted earnings or loss per share are based on the weighted average number of common shares outstanding and dilutive common stock equivalents. All per share and per share information are adjusted retroactively to reflect stock splits and changes in par value, when applicable. | ||||||||||||
For the years ended December 31, 2014 and 2013, all loss per share amounts in the financial statements are basic loss per share. 5,050,000 (2013: 5,050,000) dilutive stock options for the year ended December 31, 2014 are not included in the computation of diluted loss per share because to do so would be anti-dilutive. | |||||||||||||
The computation of basic and diluted earnings (loss) per share as follows for years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator - net loss available to common stockholders | $ | (32,706 | ) | $ | (37,762 | ) | $ | (99,631 | ) | ||||
Denominator - weighted average number of common shares outstanding | 34,548,368 | 34,548,368 | 32,010,663 | ||||||||||
Dilutive common stock equivalents - stock options | - | - | - | ||||||||||
Denominator - weighted average number of fully diluted common shares outstanding | 34,548,368 | 34,548,368 | 32,010,663 | ||||||||||
Basic loss per common share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
Diluted earnings (loss) per common share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
Common_Stock_Warrants_and_Opti
Common Stock, Warrants and Options | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Common Stock Warrants And Options | |||||||||||||||||||
Note 6. Common Stock, Warrants and Options | (a) Common Stock | ||||||||||||||||||
No common stock was issued during the years ended December 31, 2014 and 2013. | |||||||||||||||||||
(b) Warrants | |||||||||||||||||||
The Company did not have any outstanding share purchase warrants at December 31, 2014 and December 31, 2013. | |||||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company did not have any share purchase warrants issued, cancelled or exercised. | |||||||||||||||||||
(c) Options | |||||||||||||||||||
The Company allots 2,000,000 common shares for issuance under the 2007 Stock Option Plan. The stock options granted to any one optionee may not exceed 1,000,000 shares. | |||||||||||||||||||
On June 1, 2011, the Board of Directors adopted the 2011 Stock Option Plan (the “2011 Plan”) which allocates 3,000,000 common shares for issuance under the 2011 Plan. | |||||||||||||||||||
On June 1, 2011, the Company granted 2,500,000 stock options under its 2011 Plan to directors, officers, employees and consultants with an exercise price of $0.05 each, expiring on June 1, 2016. The options vested immediately. The fair value of the 2,500,000 options granted was estimated at $0.0025 each, for a total of amount of $6,250, by using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 666.60%, risk-free interest rates of 1.60%, and expected lives of 5.0 years. | |||||||||||||||||||
On April 2, 2012, the Board of Directors adopted the 2012 Stock Option Plan (the “2012 Plan”) which allocates 3,000,000 common shares for issuance under the 2012 Plan. | |||||||||||||||||||
On April 2, 2012, the Company granted 500,000 stock options under its 2011 Plan and 2,050,000 stock options under its 2012 Plan to directors, officers, employees and consultants with an exercise price of $0.05 each, expiring on April 2, 2017. The options vested immediately. The fair value of the 2,550,000 options granted was estimated at $0.0030 each, for a total of amount of $7,650, by using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 294.13%, risk-free interest rates of 1.03%, and expected lives of 5.0 years. | |||||||||||||||||||
The movement of options is summarized as follows: | |||||||||||||||||||
Weighted | |||||||||||||||||||
average | |||||||||||||||||||
Number of options | exercise price | ||||||||||||||||||
Balance, December 31, 2012, 2013 and 2014 | 5,050,000 | $ | 0.05 | ||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company did not have any stock options issued, cancelled, or exercised. | |||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2014 and December 31, 2013: | |||||||||||||||||||
Number | Weighted | Number | |||||||||||||||||
Weighted | outstanding | average | exercisable | ||||||||||||||||
average | at | remaining | at | Average | |||||||||||||||
exercise | December 31, | contractual | December 31, | intrinsic | |||||||||||||||
price | 2014 | life (years) | 2014 | value | |||||||||||||||
$ | 0.05 | 5,050,000 | 1.88 | 5,050,000 | $ | - | |||||||||||||
5,050,000 | 1.88 | 5,050,000 | |||||||||||||||||
Number | Weighted | Number | |||||||||||||||||
Weighted | outstanding | average | exercisable | ||||||||||||||||
average | at | remaining | at | Average | |||||||||||||||
exercise | December 31, | contractual | December 31, | intrinsic | |||||||||||||||
price | 2013 | life (years) | 2013 | value | |||||||||||||||
$ | 0.05 | 5,050,000 | 2.88 | 5,050,000 | $ | - | |||||||||||||
5,050,000 | 2.88 | 5,050,000 | |||||||||||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value for all “in-the-money” options (i.e. the difference between the Company’s closing stock price on the last trading day of the year ended December 31, 2014 and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on December 31, 2014. Total intrinsic value of options exercised was $nil (December 31, 2013: $nil) for the year ended December 31, 2014. | |||||||||||||||||||
All the stock options were vested during the years ended December 31, 2014 and 2013. | |||||||||||||||||||
The Company does not repurchase shares to fulfill the requirements of options that are exercised. Further, the Company issues new shares when options are exercised. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions | |
Note 7. Related Party Transactions | During the year ended December 31, 2014, the Company paid corporate and administrative service charges of $9,455 (2013: $8,416) to a law firm of which a director of the Company is the owner. |
Income_Tax
Income Tax | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax | |
Note 8. Income Tax | The Company was liable for taxes in United States until it completed its continuation from the State of Nevada, U.S.A. to Anguilla, British West Indies since December 31, 2007. There is no income tax imposed on companies by the government of Anguilla, British West Indies. |
For the years ended December 31, 2014, 2013 and 2012, the Company did not have any income for tax purposes and therefore, no tax liability or expense has been recorded in these financial statements. | |
For U.S. tax reporting purpose, the Company has available net operating loss carryforwards of approximately $1,342,000 for tax purposes to offset future taxable income which expires commencing 2025 through the year 2027. Pursuant to the Tax Reform Act of 1986, annual utilization of the Company’s net operating loss carryforwards may be limited if a cumulative change in ownership of more than 50% is deemed to occur within any three-year period. | |
The deferred tax asset associated with the tax loss carryforwards is approximately $450,000 at December 31, 2014 and 2013. The Company has provided a full valuation allowance against the deferred tax asset. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Significant Accounting Policies Policies | |
Principles of Accounting | These financial statements are stated in U.S. Dollars and have been prepared in accordance with accounting principles generally accepted in the United States. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Actual results could differ from those estimates. |
Cash | The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company occasionally has cash deposits in excess of insured limits. |
Income Taxes | Deferred income tax assets and liabilities are computed for differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. |
A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the position would be sustained upon examination by taxing authorities. The amount recognized is the largest benefit that the Company believes has a greater than 50% likelihood of being realized upon settlement. | |
The Company reports a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of income taxes. No liability has been recorded for uncertain tax positions, or related interest or penalties. | |
Earnings (Loss) Per Share | Basic earnings (loss) per share is computed by dividing income/loss (numerator) applicable to common stockholders by the weighted average number of common shares outstanding (denominator) for the period. Diluted earnings or loss per share is computed by dividing income (numerator) applicable to common stockholders by the weighted average number of common shares outstanding (denominator) and dilutive common stock equivalents for the period. |
Stock-Based Compensation | The Company accounts for stock based compensation for all stock-based awards at fair value on the date of grant and recognizes compensation over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes valuation model with the assumptions disclosed in the notes to financial statements. |
Foreign Currency Translation | The Company maintains a U.S. Dollar bank account at a financial institution in Canada. Foreign currency transactions are translated into their functional currency, which is the U.S. Dollar, in the following manner: |
At the transaction date, each asset, liability, revenue and expense is translated into the functional currency by the use of the exchange rate in effect at that date. At the period end, monetary assets and liabilities are translated into U.S. Dollars by using the exchange rate in effect at that date. Transaction gains and losses that arise from exchange rate fluctuations are included in the results of operations. | |
Fair Value of Financial Instruments | The determination of fair value of financial instruments is made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. The carrying value of cash, accounts payable and accrued expenses approximates their fair value because of the short-term nature of these instruments. The Company places its cash with high credit quality financial institutions. |
Related Party Transactions | A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. |
Recent Accounting Pronouncements | (a) Recent accounting pronouncements adopted during the period: |
(i) Foreign currency | |
On January 1, 2014, the Company adopted Accounting Standards Update (“ASU”) 2013-05, "Foreign Currency Matters (Topic 830); Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This guidance applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. Adoption of the accounting standard did not have any material impact on the financial statements. | |
(ii) Unrecognized tax benefits | |
On January 1, 2014, the Company adopted ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. Adoption of the accounting standard did not have any material impact on the financial statements. | |
(iii) Liquidation Basis of Accounting | |
On January 1, 2014, the Company adopted ASU 2013-07, entitled “Liquidation Basis of Accounting”. With ASU 2013-07, the FASB amends the guidance in the FASB Accounting Standards Codification Topic 205, entitled “Presentation of Financial Statements”. The amendments serve to clarify when and how reporting entities should apply the liquidation basis of accounting. The guidance is applicable to all reporting entities, whether they are public or private companies or not-for-profit entities. The guidance also provides principles for the recognition of assets and liabilities and disclosures, as well as related financial statement presentation requirements. Reporting entities are required to apply the requirements in ASU 2013-07 prospectively from the day that liquidation becomes imminent. The adoption of ASU 2013-07 did not have a material effect on the Company’s operating results or financial position. | |
(b) Recent accounting pronouncements not yet adopted: | |
(i) Revenue from Contracts with Customers | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for public entities for annual reporting periods beginning after December 15, 2016 and interim periods within those periods. Early adoption is not permitted. The FASB has approved a one-year deferral of the effective date with the option to early adopt using the original effective date. Entities may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements and footnote disclosures. | |
(ii) Development Stage Entities | |
In June 2014, the FASB issued ASU No. 2014-10, "Development Stage Entities", which intends to remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the update eliminates the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. ASU No. 2014-10 is effective for fiscal years and interim periods beginning after December 15, 2014, with early adoption permissible. The adoption of this update is expected to have a material impact on the presentation of the Company's financial statements in the period of adoption in that the Company will no longer be required to present inception-to-date information on the statements of operations, cash flows and changes in capital deficit. | |
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption. |
Earnings_Loss_per_Share_Tables
Earnings (Loss) per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Loss Per Share Tables | |||||||||||||
Computation of basic and diluted earnings (loss) per share | Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator - net loss available to common stockholders | $ | (32,706 | ) | $ | (37,762 | ) | $ | (99,631 | ) | ||||
Denominator - weighted average number of common shares outstanding | 34,548,368 | 34,548,368 | 32,010,663 | ||||||||||
Dilutive common stock equivalents - stock options | - | - | - | ||||||||||
Denominator - weighted average number of fully diluted common shares outstanding | 34,548,368 | 34,548,368 | 32,010,663 | ||||||||||
Basic loss per common share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
Diluted earnings (loss) per common share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
Common_Stock_Warrants_and_Opti1
Common Stock, Warrants and Options (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Common Stock Warrants And Options Tables | |||||||||||||||||||
Movement of options | Weighted | ||||||||||||||||||
average | |||||||||||||||||||
Number of options | exercise price | ||||||||||||||||||
Balance, December 31, 2012, 2013 and 2014 | 5,050,000 | $ | 0.05 | ||||||||||||||||
Summary information about stock options outstanding | Number | Weighted | Number | ||||||||||||||||
Weighted | outstanding | average | exercisable | ||||||||||||||||
average | at | remaining | at | Average | |||||||||||||||
exercise | December 31, | contractual | December 31, | intrinsic | |||||||||||||||
price | 2014 | life (years) | 2014 | value | |||||||||||||||
$ | 0.05 | 5,050,000 | 1.88 | 5,050,000 | $ | - | |||||||||||||
5,050,000 | 1.88 | 5,050,000 | |||||||||||||||||
Number | Weighted | Number | |||||||||||||||||
Weighted | outstanding | average | exercisable | ||||||||||||||||
average | at | remaining | at | Average | |||||||||||||||
exercise | December 31, | contractual | December 31, | intrinsic | |||||||||||||||
price | 2013 | life (years) | 2013 | value | |||||||||||||||
$ | 0.05 | 5,050,000 | 2.88 | 5,050,000 | $ | - | |||||||||||||
5,050,000 | 2.88 | 5,050,000 |
Going_Concern_Uncertainties_De
Going Concern Uncertainties (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Going Concern Uncertainties Details Narrative | ||
Accumulated deficit | $7,057,653 | $7,024,947 |
Earnings_Loss_per_Share_Detail
Earnings (Loss) per Share (Details) (USD $) | 1 Months Ended | 12 Months Ended | 109 Months Ended | ||||||||
Dec. 31, 2005 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2014 | |
Earnings Loss Per Share | |||||||||||
Numerator - net loss available to common stockholders | ($13,598) | ($32,706) | ($37,762) | ($99,631) | ($526,369) | $137,720 | ($516,827) | ($496,794) | ($1,372,674) | ($4,099,012) | ($7,057,653) |
Denominator - weighted average number of common shares outstanding | 34,548,368 | 34,548,368 | 32,010,663 | ||||||||
Dilutive common stock equivalents - stock options | |||||||||||
Denominator - weighted average number of fully diluted common shares outstanding | 34,548,368 | 34,548,368 | 32,010,663 | ||||||||
Basic loss per common share | $0 | $0 | $0 | ||||||||
Diluted earnings (loss) per common share | $0 | $0 | $0 |
Earnings_Loss_per_Share_Detail1
Earnings (Loss) per Share (Details Narrative) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Loss Per Share | ||
Dilutive stock options | 5,050,000 | 5,050,000 |
Common_Stock_Warrants_and_Opti2
Common Stock, Warrants and Options (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock Warrants And Options | |||
Number of options | 5,050,000 | 5,050,000 | 5,050,000 |
Weighted average exercise price | $0.05 | $0.05 | $0.05 |
Common_Stock_Warrants_and_Opti3
Common Stock, Warrants and Options (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number Outstanding | 5,050,000 | 5,050,000 | 5,050,000 |
Weighted average remaining contractual life (years) | 1 year 10 months 17 days | 2 years 10 months 17 days | |
Number Exercisable | 5,050,000 | 5,050,000 | |
Average instrinsic value | |||
Weighted Average Exercise price 0.05 [Member] | |||
Number Outstanding | 5,050,000 | 5,050,000 | |
Weighted average remaining contractual life (years) | 1 year 10 months 17 days | 2 years 10 months 17 days | |
Number Exercisable | 5,050,000 | 5,050,000 | |
Average instrinsic value |
Common_Stock_Warrants_and_Opti4
Common Stock, Warrants and Options (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common Stock Warrants And Options Details Narrative | ||
Intrinsic value of options exercised | $0 | $0 |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions Details Narrative | ||
Corporate and administrative service charges | $9,455 | $8,416 |
Income_Tax_Details_Narrative
Income Tax (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax | ||
Net operating loss carryforwards | $1,342,000 | |
Net operating loss carryforwards expiration dates | Expires commencing 2025 through the year 2027. | |
Deferred tax asset tax loss carryforwards | $450,000 | $450,000 |