Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
May. 31, 2015 | Aug. 24, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | HISPANICA INTERNATIONAL DELIGHTS OF AMERICA, INC. | |
Entity Central Index Key | 1,579,010 | |
Document Type | 10-K | |
Document Period End Date | May 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --05-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 19,943,200 | |
Entity Common Stock, Shares Outstanding | 12,199,405 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
Balance Sheets
Balance Sheets - USD ($) | May. 31, 2015 | May. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 44,101 | $ 21,136 |
Accounts receivable | 1,206 | $ 53,447 |
Prepaid expenses | 15,000 | |
Inventory | 18,879 | $ 17,121 |
Total current assets | 79,186 | 91,704 |
Total Assets | 79,186 | 91,704 |
Liabilities | ||
Accounts payable and accrued expenses | 3,718 | 64,193 |
Loan payable - stockholders | 20,000 | 10,000 |
Convertible note payable | 6,000 | |
Total current liabilities | 29,718 | $ 74,193 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Series A Preferred stock, $0.001 par value; 10,000,000 shares authorized, 1,000,000 issued and outstanding | 1,000 | $ 1,000 |
Common stock, $0.001 par value; 100,000,000 shares authorized, 12,168,905 and 11,202,700 shares issued and outstanding, respectively | 12,169 | 11,203 |
Additional paid-in capital | 450,641 | 207,057 |
Accumulated deficit | (414,342) | (201,749) |
Stockholders' Equity | 49,468 | 17,511 |
Total Liabilities and Stockholders' Equity | $ 79,186 | $ 91,704 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | May. 31, 2015 | May. 31, 2014 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 1,000,000 | 1,000,000 |
Preferred stock, outstanding shares | 1,000,000 | 1,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, Authorized | 100,000,000 | 100,000,000 |
Common stock, Issued | 12,168,905 | 11,202,700 |
Common stock, outstanding | 12,168,905 | 11,202,700 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Income Statement [Abstract] | ||
Sales, net | $ 214,502 | $ 101,781 |
Cost of goods sold | 240,017 | 128,885 |
Gross (loss) | (25,515) | (27,104) |
Expenses: | ||
Advertising and promotion | 3,417 | 400 |
Professional fees | 152,900 | 137,324 |
Travel | 1,485 | 1,529 |
Other | 26,456 | 8,964 |
Total expenses | 184,258 | 148,217 |
Net (loss) before other expenses, and provision for income taxes | (209,773) | (175,321) |
Other (expenses) | ||
Interest expense | (2,820) | (155) |
Net (loss) before provision for income taxes | $ (212,593) | $ (175,476) |
Provision for income taxes | ||
Net (loss) | $ (212,593) | $ (175,476) |
Basic and diluted loss per share | $ (0.02) | $ (0.02) |
Basic and diluted weighted average number of shares outstanding | 11,704,033 | 10,187,879 |
Statement of Stockholders Equit
Statement of Stockholders Equity - USD ($) | Common Stock | Series A Preferred Stock | Additional Paid-In Capital | Subscription Receivable | Accumulated Deficit During the Development Stage | Total |
Beginning Balance, Shares at May. 31, 2013 | 9,200,000 | 1,000,000 | ||||
Beginning Balance, Amount at May. 31, 2013 | $ 9,200 | $ 1,000 | $ 35,510 | $ (26,273) | $ 5,677 | |
Issuance of common stock for cash, shares | 465,200 | |||||
Issuance of common stock for cash, amount | $ 465 | 55,835 | 56,300 | |||
Issuance of common stock for Services, shares | 1,537,500 | |||||
Issuance of common stock Services, amount | $ 1,538 | 109,712 | 167,550 | |||
Subscription Proceeds | $ (13,760) | (13,760) | ||||
Contribution to additional paid in capital | 6,000 | 6,000 | ||||
Net loss | (175,476) | (175,476) | ||||
Ending Balance, Shares at May. 31, 2014 | 11,202,700 | 1,000,000 | ||||
Ending Balance, Amount at May. 31, 2014 | $ 11,203 | $ 1,000 | 207,057 | (201,749) | 17,511 | |
Issuance of common stock for cash, shares | 448,000 | |||||
Issuance of common stock for cash, amount | $ 448 | 111,552 | 112,000 | |||
Issuance of common stock for Services, shares | 518,205 | |||||
Issuance of common stock Services, amount | $ 518 | 129,032 | 129,550 | |||
Contribution to additional paid in capital | 3,000 | 3,000 | ||||
Net loss | (212,593) | (212,593) | ||||
Ending Balance, Shares at May. 31, 2015 | 12,168,905 | 1,000,000 | ||||
Ending Balance, Amount at May. 31, 2015 | $ 12,169 | $ 1,000 | $ 450,641 | $ (414,342) | $ 49,468 |
Statement of Stockholders Equi6
Statement of Stockholders Equity (Parenthetical) - $ / shares | May. 31, 2015 | May. 31, 2014 |
Share price | $ 0.25 | $ .25 |
May 31, 2015 (1) [Member] | ||
Share price | $ 0.25 | |
May 31, 2014 (1) [Member] | ||
Share price | 0.10 | |
May 31, 2014 (2) [Member] | ||
Share price | $ 0.032 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (212,593) | $ (175,476) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Common stock issued for services | 129,550 | 111,250 |
Accounts receivable | 52,241 | (53,447) |
Prepaid expenses | (15,000) | |
Inventory | (1,758) | (17,121) |
Accounts payable and accrued expenses | (57,475) | 68,170 |
Net cash used by operating activities | (105,035) | (66,624) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 112,000 | 70,060 |
Loan payable - stockholder | $ 10,000 | 10,000 |
Repayment of loan payable - related party | $ (7,500) | |
Proceeds from convertible note | $ 6,000 | |
Net cash provided by financing activities | 128,000 | $ 72,560 |
Net increase in cash | 22,965 | 5,936 |
Cash and cash equivalents at beginning of period | 21,136 | 15,200 |
Cash and cash equivalents at end of period | 44,101 | $ 21,136 |
Supplemental cash flow information: | ||
Cash paid during the period for: Interest | 1,500 | |
Non-cash transactions: | ||
Forgiven rent converted to additional paid-in capital | $ 3,000 | $ 6,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Hispanica International Delights of America, Inc. ( the "Company") was incorporated in Delaware in April 2013. The Company has not generated significant sales to date. The Company currently markets and sells traditional Hispanice beverages. The Company plans to market and sell traditional Hispanic and ethnic food packaged products and will license and/or acquire existing brands and distributors of Hispanic products. Revenue Recognition In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company: Revenue is recognized at the time the product is delivered or services are performed. Provision for sales returns are estimated based on the Company's historical return experience. Revenue is presented net of returns. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Net Loss Per Common Share The Company calculates net income (loss) per share based on the authoritative guidance. Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During periods in which the Company incurs losses common stock equivalents, if any, are not considered, as their effect would be anti-dilutive. As of May 31, 2015, the convertible note payable, which could be converted into 24,000 shares of common stock, is outstanding. Income Taxes The Company utilizes the accrual method of accounting for income taxes. Under the accrual method, deferred tax assets and liabilities are determined based on the differences between the financial reporting basis and the tax basis of the assets and liabilities and are measured using enacted tax rates and laws that will be in effect, when the differences are expected to reverse. An allowance against deferred tax assets is recognized, when it is more likely than not, that such tax benefits will not be realized. The Company recognizes the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a more-likely than-not threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. The Company did not have any unrecognized tax benefits as of May 31, 2015, and does not expect this to change significantly over the next 12 months. Stock-Based The Company accounts for equity instruments issued to employees in accordance with ASC 718, Compensation - Stock Compensation. ASC 718 requires all share-based compensation payments to be recognized in the financial statements based on the fair value on the issuance date. Equity instruments granted to non-employees are accounted for in accordance with ASC 505, Equity. The final measurement date for the fair value of equity instruments with performance criteria is the date that each performance commitment for such equity instrument is satisfied or there is a significant disincentive for non-performance. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Accounts Receivable The Company extends credit to its customers in the normal course of business and performs ongoing credit evaluations of its customers, maintaining an allowance for potential credit losses. Uncollectible accounts are written off at the time they are deemed uncollectible. Accounts receivable is reported net of the allowance for doubtful accounts. The allowance is based on management's estimate of the amount of receivables that will actually be collected. As of May 31, 2015 and 2014, an allowance for doubtful accounts was not necessary. Inventory Inventory is stated at the lower of cost (first-in, first-out) or market value. Advertising Advertising and promotion costs are expensed as incurred. Advertising and promotion expense approximately $3,400 and $400 for the years ended May 31, 2015 and 2014, respectively. Shipping and Handling Shipping and handling costs, included in costs of goods sold, amounted to approximately $15,000 and $2,000 for the years ended May 31, 2015 and 2014, respectively. Fair Value of Financial Instruments For certain of our financial instruments, including accounts receivable, accounts payable and accrued expenses, loans payable stockholders, and convertible note payable, the carrying amounts approximate fair value due to their relatively short maturities. Recent Pronouncements In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-10 to eliminate certain financial reporting requirements. In accordance with that pronouncement we have elected to adopt the elimination of certain financial reporting requirements including the presentation of inception-to-date information in the statements of operations, cash flows, and stockholders deficiency and labeling the financial statements as those of a development stage entity. In May 2014, FASB and IASB issued a new joint revenue recognition standard that supersedes nearly all U.S. GAAP guidance on revenue recognition. The core principle of the standard is that revenue recognition should depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard is effective for the Company for the fiscal year beginning June 1, 2017 and the effects of the standard on the Companys financial statements are not known at this time. Management does not believe that any other recently issued, but not yet effective accounting pronouncement, if adopted, would have a material effect on the accompanying financial statements |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
May. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | Note 2 CONCENTRATION OF CREDIT RISK Sales and Accounts Receivable During the year ended May 31, 2015, sales to four customers accounted for approximately 79% of the Company's net sales. There were no customers with significant accounts receivable balances at May 31, 2015. During the year ended May 31, 2014, sales to two customers accounted for approximately 73% of the Company's net sales. At May 31, 2014, one customer accounted for approximately 64% of the Companys accounts receivable. |
INVENTORY
INVENTORY | 12 Months Ended |
May. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORY | Note 3. INVENTORY At May 31, 2015, inventory consisted of the following: May 31, 2015 2014 Raw materials $ $ 8,121 Finished goods 18,879 9,000 Total Inventory $ 18,879 $ 17,121 |
LOANS PAYABLE - STOCKHOLDER
LOANS PAYABLE - STOCKHOLDER | 12 Months Ended |
May. 31, 2015 | |
Notes to Financial Statements | |
LOANS PAYABLE - STOCKHOLDER | Note 4. LOAN PAYABLE STOCKHOLDER In February 2014, a stockholder lent the Company $10,000. The loan bears interest at 5% per annum and matured on February 28, 2015. The loan balance at May 31, 2015 was $10,000. Accrued and unpaid interest totaled $646 and $146 at May 31, 2015 and 2014, respectively, and is reported as accounts payable and accrued expenses. In February 2015, a stockholder and officer loaned the Company $20,000. The loan bears interest at 36% per annum. Under the terms of the agreement the note matured on May 20, 2015. In April 2015, the Company repaid $10,000 of the loan balance. The loan balance at May 31, 2015 was $10,000. Accrued and unpaid interest totaled $384 and $33 at May 31, 2015 and 2014, respectively, and is reported as accounts payable and accrued expenses. |
CONVERTIBLE DEBENTURE
CONVERTIBLE DEBENTURE | 12 Months Ended |
May. 31, 2015 | |
Related Party Transactions [Abstract] | |
CONVERTIBLE DEBENTURE | Note 5. CONVERTIBLE NOTE PAYABLE In September 2014, the Company issued a convertible debenture for the principal amount of $6,000. The debenture had an original due date of December 31, 2014. In January 2015, the holder signed an amendment that made the debenture and accrued interest payable on demand. Interest accrues at 10% per annum. The debenture holder has the option of converting the debenture in whole or in part into the Company's common stock at the rate of $0.25 per share at any time prior to redemption. At May 31, 2015, accrued interest on the debenture was $438 and is reported as accounts payable and accrued expenses. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
May. 31, 2015 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Note 6. STOCKHOLDERS' EQUITY In August 2013, the Company authorized a 1:2 reverse split. Consequently, the shares that were issued and outstanding at May 31, 2013 have been restated to reflect the effect of the reverse split. The Company has authorized 100,000,000 shares of common stock with a par value of $0.001 per share. At May 31, 2014, 11,202,700 shares of common stock were issued and outstanding. At May 31, 2015, 12,168,905 shares of common stock were issued and outstanding. The Company has authorized 10,000,000 shares of Series A preferred stock with a par value of $0.001 per share. At May 31, 2015 and 2014, 1,000,000 shares of preferred stock were issued and outstanding. The preferred stock has preferential voting rights of 50 votes per outstanding share. During the year ended May 31, 2014, the Company issued 400,000 shares of common stock at $0.10 per share. During the year ended May 31, 2014, the Company issued 912,500 shares of common stock at $0.10 per share for services provided to the Company. During the year ended May 31, 2014, the Company issued 625,000 shares of common stock at $0.032 per share for services provided to the Company. During the year ended May 31, 2014, the Company issued 65,200 shares of common stock at $0.25 per share. During the year ended May 31, 2015, the Company issued 448,000 shares of common stock at $0.25 per share. During the year ended May 31, 2015, the Company issued 518,205 shares of common stock at $0.25 per share for services provided to the Company. Subsequent to May 31, 2015, the Company issued 24,000 shares of common stock for cash and 6,500 shares of common stock for services at $0.25 per share. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
May. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 7. COMMITMENTS AND CONTINGENCIES The Company currently leases its offices on a month to month basis from the Company's Chief Executive Officer and stockholder for $750 per month. Rent expense for the years ended May 31, 2015 and 2014 totaled $7,500 and $6,000, respectively. For the year ended May 31, 2015, $3,000 was forgiven and converted to additional paid-in capital, $2,250 was paid and $2,250 has been accrued and is reported as accounts payable and accrued expenses. For the year ended May 31, 2014, $6,000 was forgiven and converted to additional paid-in capital. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
May. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 8. INCOME TAXES The benefit from income taxes consists of the following: May 31, 2015 2014 Deferred Tax Asset: Net operating loss carryforward $ 165,000 $ 80,000 Valuation Allowance (165,000 ) (80,000 ) Deferred tax asset, net $ $ The income tax benefit differs from the amount computed by applying the statutory federal and state income tax rates to the loss before income taxes. The sources and tax effects of the differences are as follows: May 31, 2015 2014 Statutory federal income tax rate 34 % 34 % State income taxes, net of federal taxes 6 % 6 % Valuation allowance (40 )% (40 )% Effective income tax rate 0 % 0 % As of May 31, 2015, the Company has net operating loss carryforwards of approximately $416,000 to reduce future federal and state taxable income through 2035. The Company currently has no federal or state tax examinations in progress nor has it had any federal or state examinations since its inception. All of the Companys tax years are subject to federal and state tax examination. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
May. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 9. RELATED PARTY TRANSACTIONS The Company purchases its inventory from a supplier related through common ownership and management. The Chief Executive Officer and Chairman of the Company is the suppliers President. In addition, the Chief Financial Officer and Director of the Company has a minority interest in the supplier. The amount of inventory purchased from this supplier during the years ended May 31, 2015 and 2014, was approximately $214,000 and $127,000, respectively. As of May 31, 2015 and 2014, amounts payable to this supplier of $0 and $60,264 were reported as accounts payable and accrued expenses. |
BASIS OF REPORTING
BASIS OF REPORTING | 12 Months Ended |
May. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
BASIS OF REPORTING | Note 10. BASIS OF REPORTING The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses from inception of approximately $416,000, which, among other factors, raises substantial doubt about the Companys ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon managements plan to raise additional capital from the sales of stock, and receive additional loans from related parties. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
May. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of operations | Nature of Operations Hispanica International Delights of America, Inc. ( the "Company") was incorporated in Delaware in April 2013. The Company has not generated significant sales to date. The Company currently markets and sells traditional Hispanice beverages. The Company plans to market and sell traditional Hispanic and ethnic food packaged products and will license and/or acquire existing brands and distributors of Hispanic products. |
Revenue Recognition | Revenue Recognition In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company: Revenue is recognized at the time the product is delivered or services are performed. Provision for sales returns are estimated based on the Company's historical return experience. Revenue is presented net of returns. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Net Loss Per Common Share | Net Loss Per Common Share The Company calculates net income (loss) per share based on the authoritative guidance. Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During periods in which the Company incurs losses common stock equivalents, if any, are not considered, as their effect would be anti-dilutive. As of May 31, 2015, the convertible note payable, which could be converted into 24,000 shares of common stock, is outstanding. |
Income Taxes | Income Taxes The Company utilizes the accrual method of accounting for income taxes. Under the accrual method, deferred tax assets and liabilities are determined based on the differences between the financial reporting basis and the tax basis of the assets and liabilities and are measured using enacted tax rates and laws that will be in effect, when the differences are expected to reverse. An allowance against deferred tax assets is recognized, when it is more likely than not, that such tax benefits will not be realized. The Company recognizes the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a more-likely than-not threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. The Company did not have any unrecognized tax benefits as of May 31, 2015, and does not expect this to change significantly over the next 12 months. |
Stock-Based Compensation | Stock-Based The Company accounts for equity instruments issued to employees in accordance with ASC 718, Compensation - Stock Compensation. ASC 718 requires all share-based compensation payments to be recognized in the financial statements based on the fair value on the issuance date. Equity instruments granted to non-employees are accounted for in accordance with ASC 505, Equity. The final measurement date for the fair value of equity instruments with performance criteria is the date that each performance commitment for such equity instrument is satisfied or there is a significant disincentive for non-performance. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable The Company extends credit to its customers in the normal course of business and performs ongoing credit evaluations of its customers, maintaining an allowance for potential credit losses. Uncollectible accounts are written off at the time they are deemed uncollectible. Accounts receivable is reported net of the allowance for doubtful accounts. The allowance is based on management's estimate of the amount of receivables that will actually be collected. As of May 31, 2015 and 2014, an allowance for doubtful accounts was not necessary. |
Inventory | Inventory Inventory is stated at the lower of cost (first-in, first-out) or market value. |
Advertising | Advertising Advertising and promotion costs are expensed as incurred. Advertising and promotion expense amounted to approximately $3,400 and $400 for the years ended May 31, 2015 and 2014, respectively. |
Shipping and Handling | Shipping and Handling Shipping and handling costs, included in costs of goods sold, amounted to approximately $15,000 and $2,000 for the years ended May 31, 2015 and 2014, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For certain of our financial instruments, including accounts receivable, accounts payable and accrued expenses, loans payable stockholders, and convertible note payable, the carrying amounts approximate fair value due to their relatively short maturities. |
Recent Pronouncements | Recent Pronouncements In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-10 to eliminate certain financial reporting requirements. In accordance with that pronouncement we have elected to adopt the elimination of certain financial reporting requirements including the presentation of inception-to-date information in the statements of operations, cash flows, and stockholders deficiency and labeling the financial statements as those of a development stage entity. In May 2014, FASB and IASB issued a new joint revenue recognition standard that supersedes nearly all U.S. GAAP guidance on revenue recognition. The core principle of the standard is that revenue recognition should depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard is effective for the Company for the fiscal year beginning June 1, 2017 and the effects of the standard on the Companys financial statements are not known at this time. Management does not believe that any other recently issued, but not yet effective accounting pronouncement, if adopted, would have a material effect on the accompanying financial statements |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
May. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | May 31, 2015 2014 Raw materials $ $ 8,121 Finished goods 18,879 9,000 Total Inventory $ 18,879 $ 17,121 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
May. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Benefit from income taxes | May 31, 2015 2014 Deferred Tax Asset: Net operating loss carryforward $ 165,000 $ 80,000 Valuation Allowance (165,000 ) (80,000 ) Deferred tax asset, net $ $ |
Statutory Rate | May 31, 2015 2014 Statutory federal income tax rate 34 % 34 % State income taxes, net of federal taxes 6 % 6 % Valuation allowance (40 )% (40 )% Effective income tax rate 0 % 0 % |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Accounting Policies [Abstract] | ||
Common stock equivalents, outstanding | 24,000 | |
Advertising and promotion expense | $ 3,400 | $ 400 |
Shipping and handling costs | $ 15,000 | $ 2,000 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Narrative) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Sales [Member] | ||
Customers | 4 | 2 |
Concentration Risk, Percentage | 79.00% | 73.00% |
Accounts Receivable [Member] | ||
Customers | 1 | |
Concentration Risk, Percentage | 64.00% |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,121 | |
Finished goods | $ 18,879 | 9,000 |
Total Inventory | $ 18,879 | $ 17,121 |
LOANS PAYABLE - STOCKHOLDER (De
LOANS PAYABLE - STOCKHOLDER (Details Narrative) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Debt Instrument [Line Items] | ||
Loan payable - stockholder | $ 20,000 | $ 10,000 |
Loan Payable - Stockholder #1 [Member] | ||
Debt Instrument [Line Items] | ||
Date of Transaction | Feb. 28, 2014 | |
Maturity date of loan | Feb. 28, 2015 | |
Proceed from note | $ 10,000 | |
Loan payable - stockholder | $ 10,000 | |
Interest rate | 12.00% | |
Accrued and unpaid interest | $ 646 | 146 |
Loan Payable - Stockholder #2 [Member] | ||
Debt Instrument [Line Items] | ||
Date of Transaction | Feb. 28, 2015 | |
Maturity date of loan | May 20, 2015 | |
Proceed from note | $ 20,000 | |
Payment on loans | 10,000 | |
Loan payable - stockholder | $ 10,000 | |
Interest rate | 36.00% | |
Accrued and unpaid interest | $ 384 | $ 33 |
CONVERTIBLE DEBENTURE (Details
CONVERTIBLE DEBENTURE (Details Narrative) - May. 31, 2015 - USD ($) | Total |
Debt, Current [Abstract] | |
10% convertible debenture | $ 6,000 |
Interest rate | 10.00% |
Conversion rate per share | $ .25 |
Accrued and unpaid interest | $ 438 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - $ / shares | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Reverse Split | 1:2 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, Authorized | 100,000,000 | 100,000,000 |
Common stock, Issued | 12,168,905 | 11,202,700 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 1,000,000 | 1,000,000 |
Votes per share | 50 | |
Share price | $ 0.25 | $ .25 |
Shares issued | 448,000 | 65,200 |
May 31, 2014 (1) [Member] | ||
Share price | $ 0.10 | |
Shares issued | 400,000 | |
Share issued for services, shares | 912,500 | |
May 31, 2014 (2) [Member] | ||
Share price | $ 0.032 | |
Share issued for services, shares | 625,000 | |
May 31, 2015 (1) [Member] | ||
Share price | $ 0.25 | |
Share issued for services, shares | 518,205 | |
Subsequent Event [Member] | ||
Share price | $ 0.25 | |
Shares issued | 24,000 | |
Share issued for services, shares | 6,500 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent Expense, monthly | $ 750 | |
Rent Expense | 7,500 | $ 6,000 |
Capitalized Additional paid in capital | 3,000 | $ 6,000 |
Rent expense. paid | 2,250 | |
Accrued rent expense | $ 2,250 |
INCOME TAXES - Tax Benefit (Det
INCOME TAXES - Tax Benefit (Details) - USD ($) | May. 31, 2015 | May. 31, 2014 |
Components of Deferred Tax Assets [Abstract] | ||
FeNet operating loss carryforward | $ 165,000 | $ 80,000 |
Valuation Allowance | $ (165,000) | $ (80,000) |
Deferred tax asset, net |
INCOME TAXES - Statutory Rate (
INCOME TAXES - Statutory Rate (Details) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at the federal statutory rate | 34.00% | 34.00% |
State income taxes, net of federal taxes | 6.00% | 6.00% |
Valuation allowance | (40.00%) | (40.00%) |
Effective tax rate | 0.00% | 0.00% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | May. 31, 2015USD ($) |
Income Tax Disclosure [Abstract] | |
Net operating loss carry forward | $ 416,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Related Party Transactions [Abstract] | ||
Purchases from related party | $ 214,000 | $ 127,000 |
Accounts payable and accrued expenses | $ 0 | $ 60,264 |
BASIS OF REPORTING (Details)
BASIS OF REPORTING (Details) | 26 Months Ended |
May. 31, 2015USD ($) | |
Basis Of Reporting Details | |
Net loss | $ 416,000 |