Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 30, 2020 | Jun. 30, 2019 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Madison Technologies Inc. | ||
Entity Central Index Key | 0001318268 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 519,928 | ||
Entity Common Stock, Shares Outstanding | 18,057,565 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 1,366 | $ 2,543 |
Prepaid expenses | 5,178 | 3,000 |
Total Current Assets | 6,544 | 5,543 |
Total Assets | 6,544 | 5,543 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 33,655 | 48,169 |
License fee payable (Note 3) | 33,500 | 33,500 |
Demand notes and accrued interest payable (Note 4) | 134,276 | 126,498 |
Convertible notes payable (Note 5) | 163,000 | 163,000 |
Related party convertible loan (Note 6) | 490 | 490 |
TOTAL LIABILITIES | 364,921 | 371,657 |
STOCKHOLDERS' DEFICIIT | ||
Common Stock (Note 7) Par Value: $0.001 Authorized 500,000,000 shares Issued and outstanding: 18,057,565 shares (Dec 31, 2018 - 16,757,565 shares) | 18,057 | 16,757 |
Additional Paid in Capital | 197,845 | 119,145 |
Shares subscribed | 30,000 | |
Accumulated deficit | (574,279) | (532,016) |
Total stockholders' deficit | (358,377) | (366,114) |
Total liabilities and stockholders' deficit | $ 6,544 | $ 5,543 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 18,057,565 | 16,757,565 |
Common stock, shares outstanding | 18,057,565 | 16,757,565 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | ||
Sales | $ 4,983 | $ 4,426 |
Cost of sales | 3,081 | 2,527 |
Gross Margin | 1,902 | 1,899 |
Operating expenses | ||
Amortization expense | 17,760 | |
General and administrative | 38,024 | 31,910 |
Total operating expenses | 38,024 | 49,670 |
Loss before other expense | (36,122) | (47,771) |
Other items | ||
Interest | (6,141) | (6,135) |
Net loss and comprehensive loss | $ (42,263) | $ (53,906) |
Net loss per share-Basic and diluted | $ (0.002) | $ (0.003) |
Average number of shares of common stock outstanding | 17,462,770 | 16,449,346 |
Statements of Stockholders' Def
Statements of Stockholders' Deficit - USD ($) | Common Stock [Member] | Additional Paid In Capital [Member] | Shares Subscribed [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 12,257 | $ 88,645 | $ (478,110) | $ (377,208) | |
Balance, shares at Dec. 31, 2017 | 12,257,565 | ||||
Debt converted to common shares: Converted at $0.01 per share | $ 2,500 | 22,500 | 20,000 | ||
Debt converted to common shares: Converted at $0.01 per share, shares | 2,500,000 | ||||
Debt converted to common shares: Converted at $0.005 per share | $ 2,000 | 8,000 | 25,000 | ||
Debt converted to common shares: Converted at $0.005 per share, shares | 2,000,000 | ||||
Shares subscribed at $0.10 per share | 30,000 | ||||
Net loss for the year | (53,906) | (53,906) | |||
Balance at Dec. 31, 2018 | $ 16,757 | 119,145 | 30,000 | (532,016) | (366,114) |
Balance, shares at Dec. 31, 2018 | 16,757,565 | ||||
Common shares issued for cash: Shares issued at $0.05 per share | $ 1,000 | 49,000 | 50,000 | ||
Common shares issued for cash: Shares issued at $0.05 per share, shares | 1,000,000 | ||||
Common shares issued for cash: Shares issued at $0.10 per share | $ 300 | 29,700 | (30,000) | ||
Common shares issued for cash: Shares issued at $0.10 per share, shares | 300,000 | ||||
Net loss for the year | (42,263) | (42,263) | |||
Balance at Dec. 31, 2019 | $ 18,057 | $ 197,845 | $ (574,279) | $ (358,377) | |
Balance, shares at Dec. 31, 2019 | 18,057,565 |
Statements of Stockholders' D_2
Statements of Stockholders' Deficit (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Shares Subscribed One [Member] | ||
Shares subscribed price per share | $ 0.10 | |
Shares Issued One [Member] | ||
Shares issued per share | $ 0.05 | |
Shares Issued Two [Member] | ||
Shares issued per share | $ 0.10 | |
Convertible Debt One [Member] | ||
Conversion price per share | 0.01 | |
Convertible Debt Two [Member] | ||
Conversion price per share | $ 0.005 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from operating activities: | ||
Net loss for the period | $ (42,263) | $ (53,906) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Amortization of license | 17,760 | |
Accrued interest on notes payable | 6,141 | 6,135 |
Foreign exchange on notes payable | 1,637 | (2,731) |
Changes in assets and liabilities: | ||
Accounts payable and accruals | (14,514) | 2,775 |
Prepaid expenses | (2,178) | (3,000) |
Net cash used in operating activities | (51,177) | (32,967) |
Cash Flows from financing activities: | ||
Proceeds from convertible notes issued | 2,000 | |
Advances from related party | 229 | |
Cash received from share issuance | 50,000 | |
Shares subscribed but not issued | 30,000 | |
Net cash provided by financing activities | 50,000 | 32,290 |
Net increase (decrease) in cash | (1,177) | (738) |
Cash, beginning of year | 2,543 | 3,281 |
Cash, end of year | 1,366 | 2,543 |
SUPPLEMENTAL DISCLOSURE | ||
Interest paid | ||
Taxes paid | ||
Convertible note issued for related party advance | $ 490 |
Nature and Continuance of Opera
Nature and Continuance of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature and Continuance of Operations | Note 1 Nature and Continuance of Operations The Company was incorporated on June 15, 1998 in the State of Nevada, USA and the Company’s common shares are publicly traded on the OTC Bulletin Board. Up until fiscal 2014, the Company was in the business of mineral exploration. On May 28, 2014, the Company formalized an agreement whereby it purchased assets associated with a smokeless cannabis delivery system. The Company planned to develop this system for commercial purposes. On December 14, 2014, this asset purchase agreement was terminated. On January 21, 2015, a majority of the Company’s stockholders approved a consolidation of the issued and outstanding shares of common stock, on a 10 for 1 basis, thereby decreasing the issued and outstanding share capital from 113,020,000 to 11,302,000. On March 11, 2015, the Company changed its name from Madison Explorations, Inc. to Madison Technologies Inc. and effected the stock consolidation. On September 16, 2016, the Company entered into an exclusive distribution product license agreement with Tuffy Packs, LLC to distribute products into the United Kingdom and 43 other essentially European countries. The Company will be selling ballistic panels which are personal body armors, that conforms to the National Institute of Justice (NIJ) Level IIIA threat requirements. The Company’s plan of operations and sales strategy include online and social media marketing, as well as attending various tradeshows and conferences. As the Company failed to make specified payments as required, the agreement was amended to a non-exclusive basis. Effective December 31, 2016, the Company dissolved its wholly owned subsidiary, Scout Resources Inc. (“Scout”) and assumed all the debt that Scout owed. These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next twelve months. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At December 31, 2019, the Company had not yet achieved profitable operations, had accumulated losses of $574,279 since its inception and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances. That said, there is no assurance of additional funding being available. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies a) Year end The Company has elected a December 31st fiscal year end. b) Cash and cash equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. As at December 31, 2019, the Company did not have any cash equivalents in 2019. (2018 – $nil). c) Revenue Recognition In May 2014, the FASB issued guidance on the recognition of Revenue from Contracts with Customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company adopted the ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method. Revenues for the year ended December 31, 2019 were not adjusted. The adoption of Topic 606 did not have a material impact to the Company’s financial statements. Revenue from contracts with customers is generated primarily from selling products online. The customer orders and pays for the products through an online portal. Once the payment goes through, a purchase order is generated and submitted to the supplier. When the supplier ships the products to the customer, revenue is then recognized when the performance obligation is completed. The Company recognizes revenue when a contract is in place, goods or services are delivered to the purchaser and collectability is reasonably assured. d) Basic and Diluted Net Income (Loss) per Share The Company reports basic loss per share in accordance FASB ASC Topic 260, “ Earnings per share e) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future, actual results may ultimately differ from the estimates. Management believes such estimates to be reasonable. f) Fair Value Measurements The Company follows FASB ASC Topic 820, “ Fair Value Measurements and Disclosures” Financial Instruments”, g) Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, all expected future events other than enactment of changes in the tax laws or rates are considered. Due to the uncertainty regarding the Company’s future profitability, the future tax benefits of its losses have been fully reserved. h) Impairment of Long-Lived Assets Impairment losses on long-lived assets, such as mining claims, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. i) Foreign Currency Translation and Transactions The Company’s functional currency is US dollars. Foreign currency balances are translated into US dollars as follows: Monetary assets and liabilities are translated at the period-end exchange rate. Non-monetary assets are translated at the rate of exchange in effect at their acquisition, unless such assets are carried at market or nominal value, in which case they are translated at the period-end exchange rate. Revenue and expense items are translated at the average exchange rate for the period. Foreign exchange gains and losses in the period are included in operations. j) Intangible Assets Intangible assets are non-monetary identifiable assets, controlled by the Company that will produce future economic benefits, based on reasonable and supportable assumptions about conditions that will exist over the life of the asset. An intangible asset that does not meet these attributes will be recognized as an expense when it is incurred. Intangible assets that do, are capitalized and initially measured at cost. Those with a determinable life will be amortized on a systematic basis over their future economic life. Those with a indefinite useful life shall not be amortized until its useful life is determined to be longer indefinite. An intangible asset subject to amortization shall be periodically reviewed for impairment. A recoverability test will be performed and, if applicable, unscheduled amortization is considered. A license agreement has been capitalized and recorded at cost. It will be amortized over the life of the contract, which is two years. m) Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. This new guidance includes several provisions to simplify the accounting for income taxes. The standard removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation, and calculating income taxes in interim periods. This standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption of this standard is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This new guidance requires a customer in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Also, capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. This standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of this standard is permitted. The adoption of this guidance will not have a material impact on the Company’s financial statements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses”. The ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Recently, the FASB issued the final ASU to delay adoption for smaller reporting companies to calendar year 2023. The Company is currently assessing the impact of the adoption of this ASU on its financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and subsequent amendments to the initial guidance: ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, Topic 842). As the Company has no leases, this pronouncement did not affect the Company’s financial statements. The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. Management does not believe that any pronouncement not yet effective but recently issued would, if adopted, have a material effect on the accompanying financial statements. |
License Agreement
License Agreement | 12 Months Ended |
Dec. 31, 2019 | |
License Agreement | |
License Agreement | Note 3 License Agreement The Company entered into an exclusive product license agreement on September 16, 2016 with Tuffy Packs, LLC, a Texas corporation, to sell Ballistic Panels in certain countries, essentially in Europe. The license was for a period of two years unless terminated and may be renewed for successive terms of two years each. The payment terms for the license is as follows: 1. $10,000 payable within seven days after the effective date; 2. An additional $15,000 payable within 30 days after the effective date; and 3. A final payment of $25,000 payable within 90 days of the effective date. The Company initially recorded an intangible asset and a license fee payable of $50,000. As at December 31, 2019, the Company had paid $16,500 to the Licensor, leaving an unpaid balance of $33,500. The Company has fully amortized the intangible asset of $50,000. As a result of the failure to make payments as required under the agreement, the Company was informed on March 20, 2017, that going forward, the agreement would be on a non-exclusive basis. |
Demand Notes and Accrued Intere
Demand Notes and Accrued Interest Payable | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Demand Notes and Accrued Interest Payable | Note 4 Demand Notes and Accrued Interest Payable The Company has three notes payable. Each note is unsecured and payable on demand. December 31, December 31, Note payable bearing interest at 8% $ 25,000 $ 25,000 Accrued interest there on 29,797 27,797 54,797 52,797 December 31, December 31, Note payable bearing interest at 5% (Debt is Canadian $30,000) 23,077 22,059 Accrued interest there on 14,712 12,960 37,789 35,019 December 31, December 31, Note payable bearing interest at 12% 25,000 25,000 Accrued interest there on 16,690 13,682 41,690 38,682 Total debt and interest payable $ 134,276 $ 126,498 Interest accrued on the note bearing 8% interest was $2,000 for the twelve months ended December 31, 2019 (2018 - $2,000). Interest accrued on the note bearing 5% interest was $1,141 for the twelve months ended December 31, 2019 (2018 - $1,143). Interest accrued on the note bearing 12% interest was $3,000 for the twelve months ended December 31, 2019 (2018 - $2,992). |
Convertible Notes Payable
Convertible Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Notes Payable | Note 5 Convertible Notes Payable As at December 31, 2019, there are nine convertible notes payable. All notes are non-interest bearing, unsecured and payable on demand. The notes are convertible into common stock at the discretion of the holder at five different conversion rates: $0.01 debt to 1 common share, $0.005 to 1 common share; $0.15 to 1 common share; $0.05 to 1 common share; and $0.04 to 1 common share. The effect that conversion would have on earnings per share has not been disclosed due to the anti-dilutive effect. A recap of convertible debt outstanding based on conversion rates is as follow: December 31, December 31, Convertible at $0.01 debt to 1 common share $ 85,000 $ 85.000 Convertible at $0.005 debt to 1 common share 10,000 10,000 Convertible at $0.015 debt to 1 common share 25,000 25,000 Convertible at $0.05 debt to 1 common share 23,490 23,490 Convertible at $0.04 debt to 1 common share 20,000 20,000 $ 163,490 $ 163,490 |
Related Party Convertible Loan
Related Party Convertible Loan | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Convertible Loan | Note 6 Related Party Convertible Loan In 2008, the current President advanced the Company $561 repayable without interest or any other terms. The unpaid balance as at October 23, 2018 was $261. The President advanced a further $229 (CAD $300) to cover out of pocket expenditures. On October 23, 2018, the Company entered into a convertible note payable with the President by combining the two advances to the aggregate amount of $490. The note payable is due on demand and may be convertible to common stock of the Company at $0.05 per share. There were no other related party transactions during the period ended December 31, 2019 or the year ended December 31, 2018. The loan has been included in Note 5 above. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common Stock | Note 7 Common Stock On March 25, 2019, the Company completed a private placement of 600,000 shares of common stock at a per share price of $0.05 for gross proceeds of $30,000. This was issued during the period ended December 31, 2019. On February 14, 2019, the Company completed a private placement of 400,000 shares of common stock at a per share price of $0.05 for gross proceeds of $20,000. This was issued during the period ended December 31, 2019. On March 2, 2018, the Company completed a private placement of 150,000 shares of common stock at a per share price of $0.10 for gross proceeds of $15,000. The shares were issued on June 16, 2019. On February 16, 2018, the Company completed a private placement of 150,000 shares of common stock at a per share price of $0.10 for gross proceeds of $15,000. The shares were issued on June 16, 2019. On January 25, 2018, two convertible notes were converted into shares. One note for $25,000 was converted into 2,500,000 shares at $0.01 per share and the other note for $10,000 was converted into 2,000,000 shares at $0.005 per share. On July 14, 2017, two convertible notes were converted into shares. One note for $25,000 was converted into 555,556 shares at $0.045 per share and the other note for $20,000 was converted to 400,000 shares at $0.05 per share. On January 21, 2015, a majority of the Company’s stockholders approved a consolidation of the issued and outstanding shares of common stock, on a 10 for 1 basis, thereby decreasing the issued and outstanding share capital from 113,020,000 to 11,302,009. This was effected on March 11, 2015. On March 30, 2006, the Company entered into a private placement agreement whereby the Company issued 20,000 Regulation-S shares in exchange for $50,000. ($2.50 per share). On June 7, 2004, the Company issued 5,907,000 in consideration of $472 in cash. ($.00008 per share.) On June 14, 2001, the Company approved a forward stock split of 5,000:1. On June 15, 1998, the Company authorized and issued 5,375,000 shares of its common stock in consideration of $430 in cash. ($.00008 per share.) There are no shares subject to warrants or options as of December 31, 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 Income Taxes Income tax recovery differs from that which would be expected from applying the effective tax rates to the net income (loss) as follows: December 31, December 31, 2019 2018 Net loss for the year $ (42,263 ) $ (53,906 ) Statutory and effective tax rates 27.0 % 27.0 % Income taxes expenses (recovery) at the effective rate $ (11,406 ) $ (14,555 ) Effect of change in tax rates (3,417 ) Tax benefit not recognized 11,406 17,972 Income tax expense (recovery) and income tax liability (asset) $ - $ - As at December 31, 2019 the tax effect of the temporary timing differences that give rise to significant components of deferred income tax asset are noted below. A valuation allowance has been recorded as management believes it is more likely than not that the deferred income tax asset will not be realized. December 31, December 31, 2019 2018 Tax loss carried forward $ 437,960 $ 395,697 Deferred tax assets $ 118,244 $ 106,838 Valuation allowance (118,244 ) (106,838 ) Deferred taxes recognized $ - $ - The tax losses will expire between 2028 and 2039. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Year End | a) Year end The Company has elected a December 31st fiscal year end. |
Cash and Cash Equivalents | b) Cash and cash equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. As at December 31, 2019, the Company did not have any cash equivalents in 2019. (2018 – $nil). |
Revenue Recognition | c) Revenue Recognition In May 2014, the FASB issued guidance on the recognition of Revenue from Contracts with Customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company adopted the ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method. Revenues for the year ended December 31, 2019 were not adjusted. The adoption of Topic 606 did not have a material impact to the Company’s financial statements. Revenue from contracts with customers is generated primarily from selling products online. The customer orders and pays for the products through an online portal. Once the payment goes through, a purchase order is generated and submitted to the supplier. When the supplier ships the products to the customer, revenue is then recognized when the performance obligation is completed. The Company recognizes revenue when a contract is in place, goods or services are delivered to the purchaser and collectability is reasonably assured. |
Basic and Diluted Net Income (Loss) Per Share | d) Basic and Diluted Net Income (Loss) per Share The Company reports basic loss per share in accordance FASB ASC Topic 260, “ Earnings per share |
Use of Estimates | e) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future, actual results may ultimately differ from the estimates. Management believes such estimates to be reasonable. |
Fair Value Measurements | f) Fair Value Measurements The Company follows FASB ASC Topic 820, “ Fair Value Measurements and Disclosures” Financial Instruments”, |
Income Taxes | g) Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, all expected future events other than enactment of changes in the tax laws or rates are considered. Due to the uncertainty regarding the Company’s future profitability, the future tax benefits of its losses have been fully reserved. |
Impairment of Long-Lived Assets | h) Impairment of Long-Lived Assets Impairment losses on long-lived assets, such as mining claims, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. |
Foreign Currency Translation and Transactions | i) Foreign Currency Translation and Transactions The Company’s functional currency is US dollars. Foreign currency balances are translated into US dollars as follows: Monetary assets and liabilities are translated at the period-end exchange rate. Non-monetary assets are translated at the rate of exchange in effect at their acquisition, unless such assets are carried at market or nominal value, in which case they are translated at the period-end exchange rate. Revenue and expense items are translated at the average exchange rate for the period. Foreign exchange gains and losses in the period are included in operations. |
Intangible Assets | j) Intangible Assets Intangible assets are non-monetary identifiable assets, controlled by the Company that will produce future economic benefits, based on reasonable and supportable assumptions about conditions that will exist over the life of the asset. An intangible asset that does not meet these attributes will be recognized as an expense when it is incurred. Intangible assets that do, are capitalized and initially measured at cost. Those with a determinable life will be amortized on a systematic basis over their future economic life. Those with a indefinite useful life shall not be amortized until its useful life is determined to be longer indefinite. An intangible asset subject to amortization shall be periodically reviewed for impairment. A recoverability test will be performed and, if applicable, unscheduled amortization is considered. A license agreement has been capitalized and recorded at cost. It will be amortized over the life of the contract, which is two years. |
Recent Accounting Pronouncements | m) Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. This new guidance includes several provisions to simplify the accounting for income taxes. The standard removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation, and calculating income taxes in interim periods. This standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption of this standard is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This new guidance requires a customer in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Also, capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. This standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of this standard is permitted. The adoption of this guidance will not have a material impact on the Company’s financial statements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses”. The ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Recently, the FASB issued the final ASU to delay adoption for smaller reporting companies to calendar year 2023. The Company is currently assessing the impact of the adoption of this ASU on its financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and subsequent amendments to the initial guidance: ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, Topic 842). As the Company has no leases, this pronouncement did not affect the Company’s financial statements. The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. Management does not believe that any pronouncement not yet effective but recently issued would, if adopted, have a material effect on the accompanying financial statements. |
Demand Notes and Accrued Inte_2
Demand Notes and Accrued Interest Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The Company has three notes payable. Each note is unsecured and payable on demand. December 31, December 31, Note payable bearing interest at 8% $ 25,000 $ 25,000 Accrued interest there on 29,797 27,797 54,797 52,797 December 31, December 31, Note payable bearing interest at 5% (Debt is Canadian $30,000) 23,077 22,059 Accrued interest there on 14,712 12,960 37,789 35,019 December 31, December 31, Note payable bearing interest at 12% 25,000 25,000 Accrued interest there on 16,690 13,682 41,690 38,682 Total debt and interest payable $ 134,276 $ 126,498 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes Payable | A recap of convertible debt outstanding based on conversion rates is as follow: December 31, December 31, Convertible at $0.01 debt to 1 common share $ 85,000 $ 85.000 Convertible at $0.005 debt to 1 common share 10,000 10,000 Convertible at $0.015 debt to 1 common share 25,000 25,000 Convertible at $0.05 debt to 1 common share 23,490 23,490 Convertible at $0.04 debt to 1 common share 20,000 20,000 $ 163,490 $ 163,490 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax recovery differs from that which would be expected from applying the effective tax rates to the net income (loss) as follows: December 31, December 31, 2019 2018 Net loss for the year $ (42,263 ) $ (53,906 ) Statutory and effective tax rates 27.0 % 27.0 % Income taxes expenses (recovery) at the effective rate $ (11,406 ) $ (14,555 ) Effect of change in tax rates (3,417 ) Tax benefit not recognized 11,406 17,972 Income tax expense (recovery) and income tax liability (asset) $ - $ - |
Schedule of Deferred Income Tax Asset | A valuation allowance has been recorded as management believes it is more likely than not that the deferred income tax asset will not be realized. December 31, December 31, 2019 2018 Tax loss carried forward $ 437,960 $ 395,697 Deferred tax assets $ 118,244 $ 106,838 Valuation allowance (118,244 ) (106,838 ) Deferred taxes recognized $ - $ - |
Nature and Continuance of Ope_2
Nature and Continuance of Operations (Details Narrative) - USD ($) | Jan. 21, 2015 | Dec. 31, 2019 | Dec. 31, 2018 |
Common stock conversion basis | Issued and outstanding shares of common stock, on a 10 for 1 basis | ||
Common stock, shares issued | 18,057,565 | 16,757,565 | |
Common stock, shares outstanding | 18,057,565 | 16,757,565 | |
Accumulated losses | $ 574,279 | $ 532,016 | |
Maximum [Member] | |||
Common stock, shares issued | 113,020,000 | ||
Common stock, shares outstanding | 113,020,000 | ||
Minimum [Member] | |||
Common stock, shares issued | 11,302,000 | ||
Common stock, shares outstanding | 11,302,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Cash equivalents |
License Agreement (Details Narr
License Agreement (Details Narrative) - USD ($) | Sep. 16, 2016 | Dec. 31, 2019 | Dec. 31, 2018 |
Payment to intangible assets | $ 50,000 | ||
Amortization of license | $ 17,760 | ||
Licensor [Member] | |||
Payment to intangible assets | 16,500 | ||
Unpaid balance on license | 33,500 | ||
Amortization of license | $ 50,000 | ||
License Agreement [Member] | |||
License agreement term | 2 years | 7 days | |
License agreement cost | $ 10,000 | ||
License Agreement [Member] | Additional Payment [Member] | |||
License agreement term | 30 days | ||
License agreement cost | $ 15,000 | ||
License Agreement [Member] | Final Payment [Member] | |||
License agreement term | 90 days | ||
License agreement cost | $ 25,000 |
Demand Notes and Accrued Inte_3
Demand Notes and Accrued Interest Payable (Details Narrative) | 12 Months Ended | |
Dec. 31, 2019USD ($)Notes | Dec. 31, 2018USD ($) | |
Number of notes payable | Notes | 3 | |
Note Payable Bearing Interest at 8% [Member] | ||
Debt interest rate | 8.00% | 8.00% |
Accrued interest on note | $ 2,000 | $ 2,000 |
Note Payable Bearing Interest at 5% [Member] | ||
Debt interest rate | 5.00% | 5.00% |
Accrued interest on note | $ 1,141 | $ 1,143 |
Note Payable Bearing Interest at 12% [Member] | ||
Debt interest rate | 12.00% | 12.00% |
Accrued interest on note | $ 3,000 | $ 2,992 |
Demand Notes and Accrued Inte_4
Demand Notes and Accrued Interest Payable - Schedule of Notes Payable (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Total debt and interest payable | $ 134,276 | $ 126,498 |
Note Payable Bearing Interest at 8% [Member] | ||
Notes payable | 25,000 | 25,000 |
Accrued interest | 29,797 | 27,797 |
Total debt and interest payable | 54,797 | 52,797 |
Note Payable Bearing Interest at 5% [Member] | ||
Notes payable | 23,077 | 22,059 |
Accrued interest | 14,712 | 12,960 |
Total debt and interest payable | 37,789 | 35,019 |
Note Payable Bearing Interest at 12% [Member] | ||
Notes payable | 25,000 | 25,000 |
Accrued interest | 16,690 | 13,682 |
Total debt and interest payable | $ 41,690 | $ 38,682 |
Demand Notes and Accrued Inte_5
Demand Notes and Accrued Interest Payable - Schedule of Notes Payable (Details) (Parenthetical) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Note Payable Bearing Interest at 8% [Member] | ||
Note payable bearing interest rate | 8.00% | 8.00% |
Note Payable Bearing Interest at 5% [Member] | ||
Note payable bearing interest rate | 5.00% | 5.00% |
Debt | $ 30,000 | $ 30,000 |
Note Payable Bearing Interest at 12% [Member] | ||
Note payable bearing interest rate | 12.00% | 12.00% |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details Narrative) | 12 Months Ended |
Dec. 31, 2019Notes | |
Debt Disclosure [Abstract] | |
Number of convertible notes payable | 9 |
Note conversion description | All notes are non-interest bearing, unsecured and payable on demand. The notes are convertible into common stock at the discretion of the holder at five different conversion rates: $0.01 debt to 1 common share, $0.005 to 1 common share; $0.15 to 1 common share; $0.05 to 1 common share; and $0.04 to 1 common share. |
Convertible Notes Payable - Sch
Convertible Notes Payable - Schedule of Convertible Notes Payable (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Convertible Debt | $ 163,490 | $ 163,490 |
Convertible Notes Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Convertible Debt | 85,000 | 85,000 |
Convertible Notes Payable Convertible on Basis of $0.005 of Debt to 1 Common Share [Member] | ||
Convertible Debt | 10,000 | 10,000 |
Convertible Notes Payable Convertible on Basis of $0.015 of Debt to 1 Common Share [Member] | ||
Convertible Debt | 25,000 | 25,000 |
Convertible Notes Payable Convertible on Basis of $0.05 of Debt to 1 Common Share [Member] | ||
Convertible Debt | 23,490 | 23,490 |
Convertible Notes Payable Convertible on Basis of $0.04 of Debt to 1 Common Share [Member] | ||
Convertible Debt | $ 20,000 | $ 20,000 |
Convertible Notes Payable - S_2
Convertible Notes Payable - Schedule of Convertible Notes Payable (Details) (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Convertible Notes Payable Convertible on Basis of $0.01 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | $ 0.01 | $ 0.01 |
Convertible Notes Payable Convertible on Basis of $0.005 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | 0.005 | 0.005 |
Convertible Notes Payable Convertible on Basis of $0.015 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | 0.015 | 0.015 |
Convertible Notes Payable Convertible on Basis of $0.05 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | 0.05 | 0.05 |
Convertible Notes Payable Convertible on Basis of $0.04 of Debt to 1 Common Share [Member] | ||
Debt conversion price per share | $ 0.04 | $ 0.04 |
Related Party Convertible Loan
Related Party Convertible Loan (Details Narrative) | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 23, 2018USD ($)$ / shares | Oct. 23, 2018CAD ($) | Dec. 31, 2008USD ($) | |
Related party unpaid balance | $ 490 | $ 490 | |||
Related party transaction | |||||
President [Member] | |||||
Related party advance due | $ 229 | $ 561 | |||
Related party unpaid balance | 261 | ||||
Related party convertible note payable | $ 490 | ||||
Debt conversion price per share | $ / shares | $ 0.05 | ||||
President [Member] | Canadian Currency [Member] | |||||
Related party advance due | $ 300 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) | Mar. 25, 2019 | Feb. 14, 2019 | Mar. 02, 2018 | Feb. 16, 2018 | Jan. 25, 2018 | Jul. 14, 2017 | Jan. 21, 2015 | Mar. 30, 2006 | Jun. 07, 2004 | Jun. 14, 2001 | Jun. 15, 1998 | Dec. 31, 2019 | Dec. 31, 2018 |
Number of common stock shares issued | 5,907,000 | 5,375,000 | |||||||||||
Share issued price per share | $ 2.50 | $ 0.00008 | $ 0.00008 | ||||||||||
Gross proceed from issuance of common stock | $ 472 | $ 430 | $ 50,000 | ||||||||||
Common stock conversion basis | Issued and outstanding shares of common stock, on a 10 for 1 basis | ||||||||||||
Common stock, shares issued | 18,057,565 | 16,757,565 | |||||||||||
Common stock, shares outstanding | 18,057,565 | 16,757,565 | |||||||||||
Number of shares issued in private placement agreement | 20,000 | ||||||||||||
Gross proceeds in private placement agreement | $ 50,000 | ||||||||||||
Forward stock split ratio | Forward stock split of 5,000:1 | ||||||||||||
Maximum [Member] | |||||||||||||
Common stock, shares issued | 113,020,000 | ||||||||||||
Common stock, shares outstanding | 113,020,000 | ||||||||||||
Minimum [Member] | |||||||||||||
Common stock, shares issued | 11,302,000 | ||||||||||||
Common stock, shares outstanding | 11,302,000 | ||||||||||||
Convertible Note One [Member] | |||||||||||||
Convertible notes payable common shares value | $ 25,000 | $ 25,000 | |||||||||||
Convertible notes payable common shares converted | 2,500,000 | 555,556 | |||||||||||
Conversion price per share | $ 0.045 | ||||||||||||
Two Convertible Notes [Member] | |||||||||||||
Conversion price per share | $ 0.01 | ||||||||||||
Convertible Note Two [Member] | |||||||||||||
Convertible notes payable common shares value | $ 10,000 | $ 20,000 | |||||||||||
Convertible notes payable common shares converted | 2,000,000 | 400,000 | |||||||||||
Conversion price per share | $ 0.005 | $ 0.05 | |||||||||||
Private Placement [Member] | |||||||||||||
Number of common stock shares issued | 600,000 | 400,000 | 150,000 | 150,000 | |||||||||
Share issued price per share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 | |||||||||
Gross proceed from issuance of common stock | $ 30,000 | $ 20,000 | $ 15,000 | $ 15,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Tax losses expire term | between 2028 and 2039 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Net loss for the year | $ (42,263) | $ (53,906) |
Statutory and effective tax rates | 27.00% | 27.00% |
Income taxes expenses (recovery) at the effective rate | $ (11,406) | $ (14,555) |
Effect of change in tax rates | (3,417) | |
Tax benefit not recognized | 11,406 | 17,972 |
Income tax expense (recovery) and income tax liability (asset) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Asset (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Tax loss carried forward | $ 437,960 | $ 395,697 |
Deferred tax assets | 118,244 | 106,838 |
Valuation allowance | (118,244) | (106,838) |
Deferred taxes recognized |