Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2018 | Aug. 01, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | TripBorn, Inc. | |
Entity Central Index Key | 0001498232 | |
Document Type | 10-Q/A | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | true | |
Amendment Description | EXPLANATORY NOTE Tripborn Inc. is filling this Amendment No. 2 (this “Form 10-Q/A”) to amend our Quarterly Report on Form 10-Q of Tripborn Inc. (the “Company”, “our” or “we”) for the quarter ended June 30, 2018, originally filed with the Securities and Exchange Commission (the “SEC”) on August 13, 2018 (the “Original Filing”);subsequently amended on August 6,2019 and to amend related disclosures including those regarding our disclosure controls and procedures. We have also restated certain unaudited quarterly results related to the quarters ended June 30, 2018, September 30, 2018 and December 31, 2018. This Form 10-Q/A also amends certain items in the Original Filling, as listed in “Items Amended in this Filing below. Background of the Restatement We have restated March 31, 2018 financial statements and learned through our internal reporting assessment that our original filing needs to adjust for the Quarter ended June 30, 2018 to carry forward opening financial results from March 31, 2018 and Reclassification for the selling and general administration expenses and its presentation in the financial statements from June 30, 2018. We also found the violations of our accounting policies and procedures regarding the failure to accrue expenses and liabilities in the quarters ending June 30, 2018. The management has authorized the filing of our unaudited consolidated financial statements for the quarter ended June 30, 2018. Impact of the Restatement As a result of the restatement, reported net income from continuing operations from continuing operations and income from discontinued operations, net of tax, and earnings per diluted share from discontinued operations were adjusted for quarters June 30, 2018 as follows: · For the quarter ended June 30, 2018 our reported net losses from continuing operations was increased from $253,810 to $259,159. · Accumulated losses increased from $2,146,054 to $3,346,742; · Our stockholders’ equity decreases from $204,652 to deficit of $999,368. Internal Control Over Financial Reporting and Disclosure Controls and Procedures Management has concluded that a material weakness existed in the Company’s internal control over financial reporting as of June 30, 2018 because the Company did not maintain effective controls within its financial close process. This material weakness resulted in misstatements in the Company’s annual financial statements that were not prevented or detected on a timely basis and led to the restatement described above. Based on this evaluation, management has concluded that, as of June 30, 2018, the Company’s internal control over financial reporting was ineffective. In connection with the restatement described above, the Company’s principal executive officer and principal financial officer re-evaluated the effectiveness of our disclosure controls and procedures and have concluded that Tripborn’s disclosure controls and procedures were not effective. In connection with the assessment described in this Explanatory Note, the Company has identified and implemented, and continues to identify and implement, actions to improve the effectiveness of its internal control over financial reporting and disclosure controls and procedures, including plans to enhance the Company’s resources and training with respect to financial reporting and disclosure responsibilities. Items Amended in this Filing For the convenience of the reader, this Form 10-Q/A sets forth the Original Filing, in its entirety, as amended to reflect the restatement. No attempt has been made in this Form 10-Q/A to update other disclosures presented in the Original Filing, except as required to reflect the effects of the restatement. The following items have been amended as a result of the restatement: Financial Highlights Part I, Item 1 - Financial Information Part I, Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations Part I, Item 4 - Controls and Procedures Part II, Item 1A – Risk Factors Part II, Item 6 - Exhibits, Financial Statement Schedules The Company’s Principal Executive Officer and Principal Financial Officer are providing currently dated certifications in connection with this Form 10-Q/A. These certifications are filed as Exhibits 31.1, 31.2, 32.1 and 32.2. | |
Current Fiscal Year End Date | --03-31 | |
Entity File Number | 333-210821 | |
Entity Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 95,711,874 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||
Net revenue | $ 95,640 | $ 108,542 |
Cost of revenue | 59,960 | 19,886 |
Gross profit | 35,680 | 88,656 |
Operating expenses | ||
Selling, general, and administrative expenses | 168,584 | 176,177 |
Legal and consulting expenses | 45,871 | 47,623 |
Depreciation and amortization | 39,284 | 118,904 |
Income (loss) from operations | (218,059) | (254,048) |
Other income (expense) | ||
Other income | 6,143 | |
Interest income | 82 | |
Interest expense | (47,325) | (60,494) |
Total other income (expense) | (41,100) | (60,494) |
Income (loss) before income tax expense | (259,159) | (314,542) |
Income tax benefit (expense) | 92,000 | |
Net income (loss) | $ (259,159) | $ (222,542) |
Basic income (loss) per share (in dollars per share) | $ 0 | $ 0 |
Diluted income (loss) per share (in dollars per share) | $ 0 | $ 0 |
Basic weighted average number of shares (in shares) | 95,711,874 | 80,660,849 |
Diluted weighted average number of shares (in shares) | 95,711,874 | 80,660,849 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (259,159) | $ (222,542) |
Other comprehensive income (loss), net of tax | ||
Unrealized foreign currency translation income/(loss) | 1,447 | (200) |
Other comprehensive income (loss), net of tax | 1,447 | (200) |
Comprehensive loss | $ (257,712) | $ (222,742) |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 805,657 | $ 1,155,367 |
Accounts receivable | 292,017 | 184,798 |
Other current assets | 619,732 | 351,519 |
Total current assets | 1,717,406 | 1,691,684 |
Property and equipment, net | 9,326 | 9,896 |
Intangible assets, net | 460,439 | 498,758 |
TOTAL ASSETS | 2,187,171 | 2,200,338 |
Current liabilities: | ||
Accounts payable | 404,259 | 360,407 |
Other current liabilities | 942,753 | 731,542 |
Total current liabilities | 1,347,012 | 1,091,949 |
Long term liabilities | ||
Convertible notes | 1,839,527 | 1,850,045 |
Total current and long-term liabilities | 3,186,539 | 2,941,994 |
Stockholders' equity (deficit): | ||
Preferred stock $.0001 par value Authorized shares: 10,000,000 | ||
Common stock $.0001 par value Authorized shares: 200,000,000 Shares issued and outstanding: 95,711,874 and 78,971,581 | 9,572 | 9,572 |
Additional paid-in capital | 2,321,818 | 2,321,818 |
Accumulated other comprehensive income (loss) | 15,984 | 14,537 |
Retained earnings (deficit) | (3,346,742) | (3,087,583) |
Total stockholders' equity | (999,368) | (741,656) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,187,171 | $ 2,200,338 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 200,000,000 | 200,000,000 |
Common stock, issued | 95,711,874 | 78,971,581 |
Common stock, outstanding | 95,711,874 | 78,971,581 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY (DEFICIT) (Unaudited) - 3 months ended Jun. 30, 2018 - USD ($) | Common Stock [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income [Member] | Retained earnings (deficit) [Member] | Total |
Balance beginning at Mar. 31, 2018 | $ 9,572 | $ 2,321,818 | $ 14,537 | $ (2,391,084) | $ (741,656) |
Balance beginning (in shares) at Mar. 31, 2018 | 95,711,874 | 78,971,581 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares | |||||
Issuance of common shares (in shares) | |||||
Other comprehensive income (loss) | 1,447 | 1,447 | |||
Net income (loss) | (259,159) | (259,159) | |||
Balance ending at Jun. 30, 2018 | $ 9,572 | $ 2,321,818 | $ 15,984 | $ (3,346,742) | $ (999,368) |
Balance ending (in shares) at Jun. 30, 2018 | 95,711,874 | 95,711,874 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net income (loss) | $ (259,159) | $ (222,542) |
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 39,284 | 118,904 |
(Increase) decrease in: | ||
Accounts receivable | (107,219) | 38,824 |
Other current assets | (268,213) | (12,813) |
Deferred tax asset | (92,478) | |
Increase (decrease) in: | ||
Accounts payable and accrued expenses | 43,852 | (53,185) |
Other current liabilities | 211,211 | 142,366 |
Net cash provided by (used in) operating activities | (340,244) | (80,924) |
Cash flows from investing activities | ||
Purchase of property and equipment | (396) | 368 |
Increase in intangible assets | 569 | |
Net cash provided by (used in) investing activities | (396) | 937 |
Cash flows from financing activities | ||
Increase in common stock | 182 | |
Increase in additional paid-in capital | 546,818 | |
Increase (Decrease) in loan from shareholders | ||
Increase in convertible notes | (10,518) | |
Net cash provided by (used in) financing activities | (10,518) | 547,000 |
Effect of exchange rates changes on cash | 1,447 | (200) |
Net change in cash and cash equivalents | (349,710) | 466,813 |
Cash | ||
Beginning of the year | 1,155,367 | 516,707 |
End of the year | 805,657 | 983,520 |
Cash paid during the period for: | ||
Interest | ||
Income taxes |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS TripBorn, Inc. (“TripBorn” or the “Company”) is a Last Mile eCommerce aggregator that delivers the products and services to offline consumers using a service agent network in India through our website, www.tripborn.com Tripborn, Inc. (“Company”) was incorporated under the law of the state of Delaware in January 2010 office is located at 762 Perthshire Pl, Abingdon, MD 21009. The Company provides Online Travel Agency (OTA) and related services and selling its services to directly to Business customers. The Company primarily operates in India. Tripborn, Inc. formerly known as PinstripesNYC, Inc was operating as a shell company with nominal or no assets or operations until December 14, 2015. Tripborn Inc. was known as PinstripesNYC, Inc. until January 2016. On December 14, 2015, PinstripesNYC, Inc. (the “Registrant”) executed and agreement and Plan of Merger (the, “Agreement”) with Sunalpha Green Technologies Private Limited (“Sunalpha”). Sunalpha registered under the Company Act of 1956, India with principle office located at 812, Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite, Ahmedabad, Gujarat, India 380 015. As a result of the Merger, Sunalpha became a wholly owned subsidiary of the Registrant (Pinstripes NYC Inc.) now Tripborn Inc. and following the consummation of the Merger and giving effect to the issuance of 76,804,914 Merger Shares by its principle stockholders. For accounting purposes, Sunalpha was deemed to be the accounting acquirer in the transaction and, consequently, the transaction was treated as a recapitalization of the Company. Accordingly, Sunalpha’s assets, liabilities, and results of operations are the historical consolidated financial statements of the Company and Company’s assets, liabilities and results of operations are consolidated with Tripborn Inc. effective as of the date of the Merger. No step-up in basis or intangible assets or goodwill was recorded in this transaction. The acquisition of all of the outstanding shares of common stock of Sunalpha by TripBorn on December 14, 2015 is being accounted for as a reverse recapitalization. |
LIQUIDITY AND GOING CONCERN
LIQUIDITY AND GOING CONCERN | 3 Months Ended |
Jun. 30, 2018 | |
Liquidity And Going Concern | |
LIQUIDITY AND GOING CONCERN | 2. LIQUIDITY AND GOING CONCERN The Company has reported net loss of $259,159, accumulated loss of $3,346,742 and negative cash flow from operations of $340,244 as of and for the quarter ended June 30, 2018. As of June 30, 2018, we had $805,657 in cash and cash equivalents, compared to $1,155,367 as of March 31, 2018. This $ 349,710 decrease in cash is a result in operating loss generated during the quarter ended June 30, 2018. As of June 30, 2018, we have stockholders’ deficit of $999,368 compared to a deficit of $741,656 as of March 31, 2018. Our stockholders’ deficit increased as a result of the increase in our operating losses during the quarter. The Company’s operations are subject to number of factors that can affect it operating results and financial conditions. Such factors include, but not limited to: the continuous enhancement of the current products and services; marketing its new services; continue to invest in new technologies; change in domestic and foreign regulations; the price of, and demand for, the company’s products and services and its ability to raise the capital to support its operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") of the United States. Principles of Consolidation The consolidated financial statements include the accounts and transactions of the Company and its wholly owned subsidiary, Sunalpha Green Technologies Private Limited. All significant inter-company accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto, those estimates, and assumptions affect the reported amounts assets, liabilities and disclosure of contingent assets and liabilities and revenue. Actual results could differ significantly from those estimates. Our significant estimates include elements of revenue recognition, the realization of deferred tax assets, amounts that may be due under the tax sharing agreement, impairment of long-lived assets, goodwill and indefinite-lived intangible assets, costs to be capitalized as well as the useful life of capitalized software, and contingent liabilities, including taxes related to hotel occupancy. Actual amounts may differ from these estimates. The use of different estimates or assumptions in determining the fair value of our goodwill, indefinite-lived and definite-lived intangible assets may result in different values for these assets, which could result in an impairment or, in the period in which an impairment is recognized, could result in a materially different impairment charge. The Company has no impairment charge for the quarter ending June 30, 2018. Revenue Recognition The Company provides travel products and services to leisure and corporate travelers in India and abroad. The revenue from rendering these services is recognized at the time when significant risk and rewards are transferred to the customer. This is generally the case: 1) on the date of departure for vacation packages, 2) on the date of check in for hotel booking business and 3) on the date of issuance for the sale of airline tickets. Air Ticketing Vacation Packages. Rail Ticketing Money Transfer Other Revenue. Cost of Revenue Cost of revenue primarily consists of costs paid to hotel and vacation package suppliers for the acquisition of relevant services and products for sale to customers and includes the procurement cost of hotel rooms and other services. Cost of revenue is the amount paid or accrued against procurement of these services and products from the respective suppliers and do not include any other operating cost to provide these services or products. Cost of revenue is recognized when incurred, which coincides with the recognition of the corresponding revenue. Operating Expenses Operating expenses include costs such as advertising and business promotion costs, utilities, rent, payroll and consultants fees and charges, which are recognized on an accrual basis. Depreciation and amortization costs are amortized over the estimated useful lives of the assets. Cash and Cash Equivalents The Company maintains cash balances, which may exceed federally insured limits. The Company does not believe that this results in any significant credit risk. Sunalpha has twelve accounts denominated in Indian Rupees. As of June 30, 2018, and 2017, the cash balance in financial institutions in India was USD $360,210 and $229,520, respectively. The transactions are undertaken in Indian Rupees and requires a foreign currency translation adjustment. The Company’s cash deposits in India are not insured against loss. The Company does not believe that this results in any significant credit risk. Receivables and Credit Policies Accounts receivable are stated at the amount’s management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is doubtful due to credit issues. These allowances together reflect the Company's estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. The Company performs periodic analysis of each customer’s outstanding accounts receivable balance and assesses, on an account-by-account basis, whether the allowance for doubtful accounts needs to be adjusted based on currently available evidence such as historical collection experience, current economic trends and changes in customer payment terms. In accordance with the Company’s policy, if collection efforts have been pursued and all reasonable and contractually available avenues for collections exhausted, accounts receivable would be written off as uncollectible. The Company does use estimate to use a general reserve methodology when estimating the level of allowance for doubtful accounts because the Company believes, due to the unique circumstances of each customer and a limited number of customers, a general reserve methodology would not provide a reasonable estimate of potentially uncollectible accounts. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed on a straight-line basis over the estimated useful lives of the assets. The Company charges repairs and maintenance costs that do not extend the lives of the assets to expense as incurred. Intangible Assets Intangible assets with definite useful lives are tested for impairment at least annually for their recoverability. We do not have any intangible assets with indefinite lives. Intangible assets that have limited useful lives are amortized on a straight-line basis over their useful lives. Impairment of Long-lived Assets The Company records an impairment of long-lived assets used in operations, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. Foreign Currency Translation The Company translates the foreign currency of its foreign subsidiary, whose functional currency is Indian rupee, into US Dollars, the reporting currency using the year or reporting period end or average exchange rates in accordance with the requirements of ASC subtopic 830, Foreign Currency Matters (“ASC 830”). Assets and liabilities are translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’ equity (deficit). The value of INR against US$ and other currencies may fluctuate and is affected by, among other things, changes in India’s political and economic conditions. Any significant revaluation of INR may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: June 30, 2018 June 30, 2017 Period-end spot rate US$1=INR 68.7100 US$1=INR 64.6112 Average rate US$1=INR 66.9200 US$1=INR 64.7509 Earnings and Loss per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average common shares outstanding for the period. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. Promotion and Advertising Expense We incur advertising expense consisting of offline costs, including newspaper and media advertising, and online advertising expense to promote our brands. We expense the production costs associated with advertisements in the period in which the advertisement first takes place. We expense the costs of communicating the advertisement (e.g., newspaper, SMS or email campaign) as incurred each time the advertisement or promotion is performed. Stock-Based Compensation The Company accounts for stock-based awards to employees and consultants in accordance with applicable accounting principles, which requires compensation expense related to share-based transactions, including employee stock options, to be measured and recognized in the financial statements based on a determination of the fair value of the stock options over the instruments vesting period. Options awarded to purchase shares of common stock issued to non-employees do not need to be remeasured as per ASU 2018-07 principles. Leases Leases of assets where the Company has assumed substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value of the leased assets and the present value of the minimum lease payments. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company has determined the deferred tax assets and liabilities based on the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Recent Accounting Pronouncements New Accounting Pronouncements Recently Adopted In July 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-11, “Simplifying the Measurement of Inventory”. ASU No. 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business; less reasonably predictable costs of completion, disposal and transportation. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2016, including interim reporting periods within those fiscal years. The Company adopted this guidance in the first quarter of its fiscal year ended March 31, 2018 using a prospective application. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This update addresses several aspects of the accounting for share-based compensation transactions including: (a) income tax consequences when awards vest or are settled, (b) classification of awards as either equity or liabilities, (c) a policy election to account for forfeitures as they occur rather than on an estimated basis and (d) classification of excess tax impacts on the statement of cash flows. The Company adopted this guidance in the first quarter of its fiscal year ended March 31, 2018, which did not have a material impact on the consolidated financial statements and related disclosures. The amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement will be applied prospectively. The Company does not expect the impact to be material to the consolidated results of operations; however, such determination is subject to change based on facts and circumstances at the time when awards vest or settle. We adopted Revenue Recognition - Revenue from Contracts with Customers (ASU 2014-09) for the fiscal year ended March 31, 2018, which amends the guidance in former ASC 605, Revenue Recognition and found no significant impact on the revenue recognition. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, "Leases” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet with a corresponding liability and disclosing key information about leasing arrangements. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. For all other entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim reporting periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is evaluating the impact of the adoption of this revised guidance on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory”, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The amendments in this ASU should be adopted on a modified retrospective basis. The Company reviewing adoption and its impact of this guidance on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control”. The amendments affect reporting entities that are required to evaluate whether they should consolidate a variable interest entity in certain situations involving entities under common control. Specifically, the amendments change the evaluation of whether a reporting entity is the primary beneficiary of a variable interest entity by changing how a reporting entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting entity. As of fiscal year, ending March 31, 2018 and 2017 we have no variable interest entity under common control with the reporting entity. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount. The new rules will be effective for the Company in the first quarter of 2021. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements. No other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact on the Company's present or future consolidated financial statements. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 4. PROPERTY AND EQUIPMENT, NET Property and Equipment consists of the following as of June 30 and March 31, 2018. The property and equipment listed below are recorded in the books of Sunalpha. June 30, 2018 March 31, 2018 Computer $ 13,443 $ 13,443 Furniture and Fixture 5,864 5,467 Office Equipment 6,352 6,352 Software License 768 768 Total 26,427 26,030 Accumulated depreciation (17,101 ) (16,134 ) Fixed assets, net $ 9,326 $ 9,896 Depreciation expense for the quarters ended June 30, 2018 and 2017 is $966 and $1,604 respectively. |
INTANGIBLE ASSETS WITH DEFINITE
INTANGIBLE ASSETS WITH DEFINITE LIVES | 3 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS WITH DEFINITE LIVES | 5. INTANGIBLE ASSETS WITH DEFINITE LIVES Intangible assets consist of the following as of June 30 and March 31, 2018: June 30, 2018 March 31, 2018 API Access $ 139,472 $ 139,472 Software 954,501 954,501 Total 1,093,973 1,093,973 Accumulated amortization (633,534 ) (595,215 ) Intangible assets, net $ 460,439 $ 498,758 Amortization expense for the quarters ended June 30, 2018 and 2017 was $38,319 and $117,300, respectively. |
STOCK COMPENSATION
STOCK COMPENSATION | 3 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK COMPENSATION | 6. STOCK COMPENSATION During the quarter ended June 30, 2118, we had no stock-based compensation. |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 3 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | 7. CONVERTIBLE NOTES PAYABLE Related Party Convertible Notes The Company issued an $956,000 convertible note with maturity date of March 7, 2019, with annual rate of 10% from ARNA GLOBAL LLC, wholly owned by the Company’s president. The note converts into 21,194,381 shares of common stock (the “Note Shares”). The Company issued an $695,000 convertible note with maturity date of December 19, 2019, with annual rate of 10% from TAKNIKI COMMUNICATION, wholly owned by the Company’s Vice President. The note converts into 10,303,070 shares of common stock (the “Note Shares”). The Company issued an $156,407 convertible note with maturity date of March 7, 2019, with annual rate of 10% from Mr. Sharma, Company’s president. The note converts into 3,432,234 shares of common stock (the “Note Shares”). The Company issued an $38,076 convertible note with maturity date of March 7, 2019, with annual rate of 10% from Mr. Mandloi, Company’s vice president. The note converts into 835,552 shares of common stock (the “Note Shares”). The Company has accrued interest of $47,325 for related parties for the quarter ended June 30, 2018. Non-Affiliate Party Convertible Notes None. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 3 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | 8. RELATED PARTY TRANSACTION On April 1, 2017, the board approved the compensation of Deepak Sharma, President of the Corporation, be fixed at USD 250,000/- per year for the next three year period beginning April 1, 2017 to year ending March 31, 2020, payments to be made in monthly installments on the last day of each month. The Company had not paid any compensation for the fiscal year ending March 31, 2018. The Company accrued the total executive compensation payable of $250,000 for the fiscal year ending March 31, 2018. The above related party transactions are not necessarily indicative of the amounts and terms that would have been incurred had comparable transactions been entered with independent parties. |
STOCKHOLDER'S EQUITY
STOCKHOLDER'S EQUITY | 3 Months Ended |
Jun. 30, 2018 | |
Stockholders' equity (deficit): | |
STOCKHOLDER'S EQUITY | 9. STOCKHOLDER’S EQUITY None. Equity Compensation Plan On April 15, 2016, we adopted the TripBorn, Inc. 2016 Stock Incentive Plan, which authorized the issuance of 7,680,000 shares of our common stock pursuant to stock options, restricted stock, restricted stock units or other awards authorized under the terms of the plan. No awards have been issued under the plan. |
INCOME TAX
INCOME TAX | 3 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 10. INCOME TAX Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company files its income tax returns on a fiscal year basis. The future effective income tax rate depends on various factors, such as the Company’s income (loss) before taxes, tax legislation and the geographic composition of pre-tax income. The Company files income tax returns in the U.S. Federal jurisdiction and various State jurisdictions. Sunalpha files tax returns in India. The Company is generally subject to U.S. Federal, State and local examinations by tax authorities for the past three years. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). The Tax Act included a broad range of complex provisions impacting the taxation of multi-national companies. The Tax Act makes broad and complex changes to the U.S. corporate income tax system and includes a Transition Toll Tax (the “Transition Tax”), which is a one-time mandatory deemed repatriation tax on accumulated foreign subsidiaries’ previously untaxed foreign earnings. The Toll Charge will be paid over an eight-year period, starting in 2018, and will not accrue interest. The Tax Act also imposed a global intangible low-taxed income tax (“GILTI”), which is a new tax on certain off-shore earnings at an effective rate of 10.5% for tax years beginning after December 31, 2017 (increasing to 13.125% for tax years beginning after December 31, 2025) with a partial offset for foreign tax credits. Generally, accounting for the impacts of newly enacted tax legislation is required to be completed in the period of enactment, however in response to the complexities and ambiguity surrounding the Tax Act, the SEC released Staff Accounting Bulletin No. 118 (“SAB 118”) to provide companies with relief around the initial accounting for the Tax Act. Pursuant to SAB 118, the SEC has provided a one-year measurement period for companies to analyze and finalize accounting for the Tax Act. During the one-year measurement period, SAB 118 allows companies to recognize provisional amounts when reasonable estimates can be made for the impacts resulting from the Tax Act. TripBorn will finalize accounting for the Tax Act during the one-year measurement period, and any adjustments to the provisional amounts will be included in income tax expense or benefit in the appropriate period, and disclosed if material, in accordance with guidance provided by SAB 118. While our accounting for the Tax Act is not complete, we do not believe we are subject to the Transition Tax. The Transition Tax is a tax on previously untaxed accumulated earnings and profits (“E&P”) of our foreign subsidiaries and our foreign subsidiary has historically generated operating losses. To determine the amount of the Transition Tax, we must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings, if any. The Tax Act has significant complexity and our final tax liability may materially differ from provisional estimates due to additional guidance and regulations that may be issued by the U.S. Treasury Department, the Internal Revenue Service (“IRS”) and state and local tax authorities, and for TripBorn’s finalization of the relevant calculations required by the new tax legislation. |
EARNINGS AND LOSS PER SHARE
EARNINGS AND LOSS PER SHARE | 3 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS AND LOSS PER SHARE | 11. EARNINGS AND LOSS PER SHARE ASC 260, “Earnings Per Share” requires presentation of basic earnings per share and dilutive earnings per share. The computation of basic earnings (loss) per share is computed by dividing earnings (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period. The computation of diluted earnings per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect. A reconciliation of net loss and weighted average shares used in computing basic and diluted net income per share is as follows: First Quarter Ended June 30, 2018 2017 Basic net income (loss) per share: Net income (loss) applicable to common shares $ (259,159 ) $ (222,542 ) Weighted average common shares outstanding 95,711,874 80,660,849 Basic net income (loss) per share of common stock $ (0.00 ) $ (0.00 ) Diluted net income (loss) per share: Net income (loss) applicable to common shares $ (259,159 ) $ (222,542 ) Weighted average common shares outstanding 95,711,874 80,660,849 Dilutive effects of convertible debt - - Weighted average common shares, assuming dilutive effect of convertible 95,711,874 80,660,849 Diluted net income (loss) per share of common stock $ (0.00 ) $ (0.00 ) Due to net loss, the shares of common stock underlying the convertible notes described in Notes 7 and 9 were not included in the calculation of diluted net loss per share, as they would have had an antidilutive effect. |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 12. COMMITMENTS The Company is the B2B Principal Agent of the Indian Railway Catering and Tourism Corporation, or IRCTC, which is a government entity that allows the Company to offer reservations through Indian Railways’ passenger reservation system on the Company’s webpage. Indian Railways is India’s state-owned railway, which owns and operates most of India’s rail transportation. The Company has integrated its online portal with IRCTC’s to provide a seamless booking process. Pursuant to an Application Programming Interface (API) agreement, dated October 5, 2015, the Company is required to pay a minimum annual maintenance fee of $7,500 to IRCTC. In the event the agreement is renewed, the amount based on the number of active railway agents that use the Company rail booking services on the Company’s platform will be payable annually. On September 30, 2017, the Company renewed its agreement with the IRCTC and paid an annual maintenance fee of $8,600 based on the number of active railway agents it has enrolled to book rail tickets. We lease approximately 2,455 square feet of office space for our principal executive officers in Ahmedabad, India. Currently, our president and director, Deepak Sharma leases this space to us at no charge. Since March 2016, we also lease approximately 4,080 square feet of office space for our technology center in Bangalore, Karnataka India, for which we currently pay approximately $5,896 per month including annual maintenance charges. This lease is continued with expiration dates through December 2024. We believe these properties suit our operations and business needs and that adequate, suitable lease space will continue to be available to meet our needs. Following table describes our obligation for the next five year from the lease. Fiscal Year Estimated Lease Charges 2019 $70,757 2020 $75,272 2021 $80,067 2022 $85,116 2023 $90,549 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS The Company has evaluated subsequent events through August 13, 2018, the date on which the financial statements were available to be issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") of the United States. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts and transactions of the Company and its wholly owned subsidiary, Sunalpha Green Technologies Private Limited. All significant inter-company accounts and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto, those estimates, and assumptions affect the reported amounts assets, liabilities and disclosure of contingent assets and liabilities and revenue. Actual results could differ significantly from those estimates. Our significant estimates include elements of revenue recognition, the realization of deferred tax assets, amounts that may be due under the tax sharing agreement, impairment of long-lived assets, goodwill and indefinite-lived intangible assets, costs to be capitalized as well as the useful life of capitalized software, and contingent liabilities, including taxes related to hotel occupancy. Actual amounts may differ from these estimates. The use of different estimates or assumptions in determining the fair value of our goodwill, indefinite-lived and definite-lived intangible assets may result in different values for these assets, which could result in an impairment or, in the period in which an impairment is recognized, could result in a materially different impairment charge. The Company has no impairment charge for the quarter ending June 30, 2018. |
Revenue Recognition | Revenue Recognition The Company provides travel products and services to leisure and corporate travelers in India and abroad. The revenue from rendering these services is recognized at the time when significant risk and rewards are transferred to the customer. This is generally the case: 1) on the date of departure for vacation packages, 2) on the date of check in for hotel booking business and 3) on the date of issuance for the sale of airline tickets. Air Ticketing Vacation Packages. Rail Ticketing Money Transfer Other Revenue. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of costs paid to hotel and vacation package suppliers for the acquisition of relevant services and products for sale to customers and includes the procurement cost of hotel rooms and other services. Cost of revenue is the amount paid or accrued against procurement of these services and products from the respective suppliers and do not include any other operating cost to provide these services or products. Cost of revenue is recognized when incurred, which coincides with the recognition of the corresponding revenue. |
Operating Expenses | Operating Expenses Operating expenses include costs such as advertising and business promotion costs, utilities, rent, payroll and consultants fees and charges, which are recognized on an accrual basis. Depreciation and amortization costs are amortized over the estimated useful lives of the assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company maintains cash balances, which may exceed federally insured limits. The Company does not believe that this results in any significant credit risk. Sunalpha has twelve accounts denominated in Indian Rupees. As of June 30, 2018, and 2017, the cash balance in financial institutions in India was USD $360,210 and $229,520, respectively. The transactions are undertaken in Indian Rupees and requires a foreign currency translation adjustment. The Company’s cash deposits in India are not insured against loss. The Company does not believe that this results in any significant credit risk. |
Receivables and Credit Policies | Receivables and Credit Policies Accounts receivable are stated at the amount’s management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is doubtful due to credit issues. These allowances together reflect the Company's estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. The Company performs periodic analysis of each customer’s outstanding accounts receivable balance and assesses, on an account-by-account basis, whether the allowance for doubtful accounts needs to be adjusted based on currently available evidence such as historical collection experience, current economic trends and changes in customer payment terms. In accordance with the Company’s policy, if collection efforts have been pursued and all reasonable and contractually available avenues for collections exhausted, accounts receivable would be written off as uncollectible. The Company does use estimate to use a general reserve methodology when estimating the level of allowance for doubtful accounts because the Company believes, due to the unique circumstances of each customer and a limited number of customers, a general reserve methodology would not provide a reasonable estimate of potentially uncollectible accounts. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed on a straight-line basis over the estimated useful lives of the assets. The Company charges repairs and maintenance costs that do not extend the lives of the assets to expense as incurred. |
Intangible Assets | Intangible Assets Intangible assets with definite useful lives are tested for impairment at least annually for their recoverability. We do not have any intangible assets with indefinite lives. Intangible assets that have limited useful lives are amortized on a straight-line basis over their useful lives. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company records an impairment of long-lived assets used in operations, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. |
Foreign Currency Translation | Foreign Currency Translation The Company translates the foreign currency of its foreign subsidiary, whose functional currency is Indian rupee, into US Dollars, the reporting currency using the year or reporting period end or average exchange rates in accordance with the requirements of ASC subtopic 830, Foreign Currency Matters (“ASC 830”). Assets and liabilities are translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’ equity (deficit). The value of INR against US$ and other currencies may fluctuate and is affected by, among other things, changes in India’s political and economic conditions. Any significant revaluation of INR may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: June 30, 2018 June 30, 2017 Period-end spot rate US$1=INR 68.7100 US$1=INR 64.6112 Average rate US$1=INR 66.9200 US$1=INR 64.7509 |
Earnings and Loss per Share | Earnings and Loss per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average common shares outstanding for the period. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. |
Promotion and Advertising Expense | Promotion and Advertising Expense We incur advertising expense consisting of offline costs, including newspaper and media advertising, and online advertising expense to promote our brands. We expense the production costs associated with advertisements in the period in which the advertisement first takes place. We expense the costs of communicating the advertisement (e.g., newspaper, SMS or email campaign) as incurred each time the advertisement or promotion is performed. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based awards to employees and consultants in accordance with applicable accounting principles, which requires compensation expense related to share-based transactions, including employee stock options, to be measured and recognized in the financial statements based on a determination of the fair value of the stock options over the instruments vesting period. Options awarded to purchase shares of common stock issued to non-employees do not need to be remeasured as per ASU 2018-07 principles. |
Leases | Leases Leases of assets where the Company has assumed substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value of the leased assets and the present value of the minimum lease payments. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company has determined the deferred tax assets and liabilities based on the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Pronouncements Recently Adopted In July 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-11, “Simplifying the Measurement of Inventory”. ASU No. 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business; less reasonably predictable costs of completion, disposal and transportation. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2016, including interim reporting periods within those fiscal years. The Company adopted this guidance in the first quarter of its fiscal year ended March 31, 2018 using a prospective application. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This update addresses several aspects of the accounting for share-based compensation transactions including: (a) income tax consequences when awards vest or are settled, (b) classification of awards as either equity or liabilities, (c) a policy election to account for forfeitures as they occur rather than on an estimated basis and (d) classification of excess tax impacts on the statement of cash flows. The Company adopted this guidance in the first quarter of its fiscal year ended March 31, 2018, which did not have a material impact on the consolidated financial statements and related disclosures. The amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement will be applied prospectively. The Company does not expect the impact to be material to the consolidated results of operations; however, such determination is subject to change based on facts and circumstances at the time when awards vest or settle. We adopted Revenue Recognition - Revenue from Contracts with Customers (ASU 2014-09) for the fiscal year ended March 31, 2018, which amends the guidance in former ASC 605, Revenue Recognition and found no significant impact on the revenue recognition. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, "Leases” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet with a corresponding liability and disclosing key information about leasing arrangements. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. For all other entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim reporting periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is evaluating the impact of the adoption of this revised guidance on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory”, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The amendments in this ASU should be adopted on a modified retrospective basis. The Company reviewing adoption and its impact of this guidance on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control”. The amendments affect reporting entities that are required to evaluate whether they should consolidate a variable interest entity in certain situations involving entities under common control. Specifically, the amendments change the evaluation of whether a reporting entity is the primary beneficiary of a variable interest entity by changing how a reporting entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting entity. As of fiscal year, ending March 31, 2018 and 2017 we have no variable interest entity under common control with the reporting entity. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount. The new rules will be effective for the Company in the first quarter of 2021. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements. No other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact on the Company's present or future consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of currency exchange rates | The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: June 30, 2018 June 30, 2017 Period-end spot rate US$1=INR 68.7100 US$1=INR 64.6112 Average rate US$1=INR 66.9200 US$1=INR 64.7509 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Property and Equipment consists of the following as of June 30 and March 31, 2018. The property and equipment listed below are recorded in the books of Sunalpha. June 30, 2018 March 31, 2018 Computer $ 13,443 $ 13,443 Furniture and Fixture 5,864 5,467 Office Equipment 6,352 6,352 Software License 768 768 Total 26,427 26,030 Accumulated depreciation (17,101 ) (16,134 ) Fixed assets, net $ 9,326 $ 9,896 |
INTANGIBLE ASSETS WITH DEFINI_2
INTANGIBLE ASSETS WITH DEFINITE LIVES (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets consist of the following as of June 30 and March 31, 2018: June 30, 2018 March 31, 2018 API Access $ 139,472 $ 139,472 Software 954,501 954,501 Total 1,093,973 1,093,973 Accumulated amortization (633,534 ) (595,215 ) Intangible assets, net $ 460,439 $ 498,758 |
EARNINGS AND LOSS PER SHARE (Ta
EARNINGS AND LOSS PER SHARE (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per share | A reconciliation of net loss and weighted average shares used in computing basic and diluted net income per share is as follows: First Quarter Ended June 30, 2018 2017 Basic net income (loss) per share: Net income (loss) applicable to common shares $ (259,159 ) $ (222,542 ) Weighted average common shares outstanding 95,711,874 80,660,849 Basic net income (loss) per share of common stock $ (0.00 ) $ (0.00 ) Diluted net income (loss) per share: Net income (loss) applicable to common shares $ (259,159 ) $ (222,542 ) Weighted average common shares outstanding 95,711,874 80,660,849 Dilutive effects of convertible debt - - Weighted average common shares, assuming dilutive effect of convertible 95,711,874 80,660,849 Diluted net income (loss) per share of common stock $ (0.00 ) $ (0.00 ) |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of obligation for the next five year from the lease. | Following table describes our obligation for the next five year from the lease. Fiscal Year Estimated Lease Charges 2019 $70,757 2020 $75,272 2021 $80,067 2022 $85,116 2023 $90,549 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details Narrative) | 3 Months Ended |
Jun. 30, 2018shares | |
Agreement And Plan Of Merger [Member] | Sunalpha Green Technologies Private Limited [Member] | |
Number of merger share issued | 76,804,914 |
LIQUIDITY AND GOING CONCERN (De
LIQUIDITY AND GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Liquidity And Going Concern Details Narrative Abstract | ||||
Net income (loss) | $ (259,159) | $ (222,542) | ||
Retained earnings/(deficit) | (3,346,742) | $ (3,087,583) | ||
Net cash provided by (used in) operating activities | (340,244) | (80,924) | ||
Cash and cash equivalents | 805,657 | 983,520 | 1,155,367 | $ 516,707 |
Net change in cash | (349,710) | $ 466,813 | ||
Stockholders' deficit | $ (999,368) | $ (741,656) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - India, Rupees | Jun. 30, 2018 | Jun. 30, 2017 |
Period-end spot rate | 68.7100 | 64.6112 |
Average rate | 66.9200 | 64.7509 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Sunalpha Green Technologies Private Limited [Member] | ||
Cash | $ 360,210 | $ 229,520 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 26,427 | $ 26,030 |
Accumulated depreciation | (17,101) | (16,134) |
Fixed Assets, net | 9,326 | 9,896 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,352 | 6,352 |
Computer [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 13,443 | 13,443 |
Furniture and Fixture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 5,864 | 5,467 |
Software License [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 768 | $ 768 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 966 | $ 1,604 |
INTANGIBLE ASSETS WITH DEFINI_3
INTANGIBLE ASSETS WITH DEFINITE LIVES (Details) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 1,093,973 | $ 1,093,973 |
Accumulated amortization | (633,534) | (595,215) |
Intangible assets, net | 460,439 | 498,758 |
Application Programming Interface (API) Access [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 139,472 | 139,472 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 954,501 | $ 954,501 |
INTANGIBLE ASSETS WITH DEFINI_4
INTANGIBLE ASSETS WITH DEFINITE LIVES (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 38,319 | $ 117,300 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | Sep. 23, 2016 | Mar. 08, 2016 | Jun. 30, 2018 |
Accrued interest | $ 47,325 | ||
10% Convertible Promissory Notes Due March 7, 2019 [Member] | Arna Global LLC ("Arna") [Member] | Software Agreement [Member] | |||
Debt principal amount | $ 956,000 | ||
Number of shares issued upon debt conversion | 21,194,381 | ||
10% Convertible Promissory Notes Due March 7, 2019 [Member] | Mr. Mandloi [Member] | |||
Debt principal amount | $ 38,076 | ||
Number of shares issued upon debt conversion | 835,552 | ||
10% Convertible Promissory Notes Due March 7, 2019 [Member] | Mr. Deepak Sharma [Member] | |||
Debt principal amount | $ 156,407 | ||
Number of shares issued upon debt conversion | 3,432,234 | ||
10% Convertible Promissory Notes Due December 19, 2019 [Member] | 2016 Software Development Agreement [Member] | Takniki Communications [Member] | |||
Debt principal amount | $ 695,000 | ||
Number of shares issued upon debt conversion | 10,303,070 |
RELATED PARTY TRANSACTION (Deta
RELATED PARTY TRANSACTION (Details Narrative) - Mr. Deepak Sharma [Member] | Apr. 02, 2017USD ($) |
Deferred compensation | $ 250,000 |
Deferred compensation description | To year ending March 31, 2020, payments to be made in monthly installments on the last day of each month. |
Deferred compensation year | 3 years |
Deferred compensation payable | $ 250,000 |
STOCKHOLDER'S EQUITY (Details N
STOCKHOLDER'S EQUITY (Details Narrative) | Apr. 15, 2016shares |
2016 Stock Incentive Plan [Member] | |
Common stock authorized | 7,680,000 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) | 3 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Effective tax rate | 10.50% |
Increase in effective income tax | 13.125% |
EARNINGS AND LOSS PER SHARE (De
EARNINGS AND LOSS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Basic net income (loss) per share: | ||
Net income (loss) applicable to common shares | $ (259,159) | $ (222,542) |
Weighted average common shares outstanding | 95,711,874 | 80,660,849 |
Basic net income (loss) per share of common stock | $ 0 | $ 0 |
Diluted net income (loss) per share: | ||
Net income (loss) applicable to common shares | $ (259,159) | $ (222,542) |
Weighted average common shares outstanding | 95,711,874 | 80,660,849 |
Dilutive effects of convertible debt | ||
Weighted average common shares, assuming dilutive effect of convertible debt | 95,711,874 | 80,660,849 |
Diluted net income (loss) per share of common stock | $ 0 | $ 0 |
COMMITMENTS (Details)
COMMITMENTS (Details) | Jun. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 70,757 |
2020 | 75,272 |
2021 | 80,067 |
2022 | 85,116 |
2023 | $ 90,549 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) | Sep. 30, 2017USD ($) | Oct. 05, 2015USD ($) | Mar. 31, 2016USD ($)ft² | Jun. 30, 2018USD ($)ft² | Jun. 30, 2017USD ($) |
Maintenance fee | $ 59,960 | $ 19,886 | |||
INDIA (Ahmedabad City) [Member] | |||||
Maintenance fee | $ 5,896 | ||||
Office space | ft² | 4,080 | ||||
Director [Member] | |||||
Office space | ft² | 2,455 | ||||
Indian Railway Catering and Tourism Corporation [Member] | |||||
Maintenance fee | $ 8,600 | ||||
Application Programming Interface (API) Agreement [Member] | Indian Railway Catering and Tourism Corporation [Member] | |||||
Maintenance fee | $ 7,500 |