Cover
Cover - shares | 3 Months Ended | |
Jan. 31, 2022 | Mar. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jan. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --10-31 | |
Entity File Number | 000-56122 | |
Entity Registrant Name | New World Technologies, Inc. | |
Entity Central Index Key | 0001756574 | |
Entity Tax Identification Number | 37-1913081 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1393 Veterans Memorial Highway | |
Entity Address, Address Line Two | Suite 100S | |
Entity Address, City or Town | Hauppauge | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11788 | |
City Area Code | 888 | |
Local Phone Number | 605-3510 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,518,571 |
Balance Sheet (Unaudited)
Balance Sheet (Unaudited) - USD ($) | Jan. 31, 2022 | Oct. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 133,182 | $ 262,368 |
Accounts receivable | ||
Prepaid expenses | ||
Total Current Assets | 133,182 | 262,368 |
Fixed assets, net | ||
OTHER ASSETS | ||
Security deposits | ||
Total Other Assets | ||
Long-term Assets - Operating Lease Right of Use Asset | 506,400 | 525,101 |
TOTAL ASSETS | 639,582 | 787,469 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 515,585 | 459,374 |
Current portion of notes payable | ||
Liability for common stock to be issued | 3,375,000 | 3,375,000 |
Liability for preferred stock to be issued | ||
Total Current Liabilities | 3,890,585 | 3,834,374 |
Long-term Liabilities - Operating Lease | 543,297 | 561,257 |
TOTAL LIABILITIES | 4,433,882 | 4,395,631 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.0001 par value, 20,000,000 shares authorized, -0- shares issued and outstanding, respectively | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized, 3,518,571 and 3,518,571 shares issued and outstanding, respectively | 352 | 352 |
Additional paid in capital | 212,698 | 212,698 |
Accumulated Deficit | (4,007,350) | (3,821,212) |
Total Stockholders’ Equity | (3,794,300) | (3,608,162) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 639,582 | $ 787,469 |
Balance Sheet (Unaudited) (Pare
Balance Sheet (Unaudited) (Parenthetical) - $ / shares | Jan. 31, 2022 | Oct. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 3,518,571 | 3,518,571 |
Common stock, shares outstanding | 3,518,571 | 3,518,571 |
Statement of Operations (Unaudi
Statement of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Income Statement [Abstract] | ||
REVENUE | ||
OPERATING EXPENSES | ||
Payroll, consulting and professional fees | 106,000 | 56,000 |
Rent | 26,418 | 30,821 |
Selling, general and administrative | 53,720 | 5,301 |
Depreciation and amortization | ||
Cost of Device Units | ||
Total | 186,138 | 92,122 |
NET LOSS BEFORE OTHER INCOME (EXPENSE) | (186,138) | (92,122) |
OTHER INCOME (EXPENSE) | ||
Gain on Operating Lease Termination | 14,412 | |
Total | 14,412 | |
LOSS BEFORE INCOME TAXES | (186,138) | (77,710) |
INCOME TAXES | ||
NET LOSS | $ (186,138) | $ (77,710) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC & DILUTED | 3,518,571 | 3,518,571 |
NET INCOME (LOSS) PER SHARE - BASIC & DILUTED | $ (0.05) | $ (0.02) |
Statement of Cash Flows (Unaudi
Statement of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (186,138) | $ (77,710) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | ||
Share-based compensation | ||
Gain on Operating Lease Termination | (14,412) | |
Reduction of right of use asset, net - Operaitng lease | 741 | 9,039 |
Change in operating assets and liabilities | ||
Prepaid expenses | ||
Accounts receivable | ||
Accounts payable and accrued expenses | 56,211 | 58,509 |
Total adjustments | 56,952 | 53,136 |
Net cash used in operating activities | (129,186) | (24,574) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Security deposits | ||
Acquisition of fixed assets | ||
Disposition of fixed assets | ||
Net cash used in investing activities | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of preferred and common stock for cash (including liability for shares to be issued) | 500,000 | |
Proceeds received from notes payable | ||
Repayments of notes payable | ||
Net cash provided by financing activities | 500,000 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (129,186) | 475,426 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 262,368 | 701 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 133,182 | 476,127 |
Cash paid during the period for: | ||
Interest | ||
Taxes | ||
NON-CASH SUPPLEMENTAL INFORMATION: | ||
Issuance of common stock for liability of stock to be issued | ||
Issuance of preferred stock for liability of stock to be issued |
Statement of Changes in Stockho
Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Oct. 31, 2020 | $ 352 | $ 212,698 | $ (466,700) | $ (253,650) | |
Beginning balance, shares at Oct. 31, 2020 | 3,518,571 | ||||
Shares issued under agreements with consultants and employees | |||||
Shares issued for services rendered and liability for stock to be issued | |||||
Net loss | (77,710) | (77,710) | |||
Ending balance, value at Jan. 31, 2021 | $ 352 | 212,698 | (544,410) | (331,360) | |
Ending balance, shares at Jan. 31, 2021 | 3,518,571 | ||||
Beginning balance, value at Oct. 31, 2021 | $ 352 | 212,698 | (3,821,212) | (3,608,162) | |
Beginning balance, shares at Oct. 31, 2021 | 3,518,571 | ||||
Shares issued under agreements with consultants and employees | |||||
Shares issued for services rendered and liability for stock to be issued | |||||
Net loss | (186,138) | (186,138) | |||
Ending balance, value at Jan. 31, 2022 | $ 352 | $ 212,698 | $ (4,007,350) | $ (3,794,300) | |
Ending balance, shares at Jan. 31, 2022 | 3,518,571 |
BASIS OF PRESENTATION AND BUSIN
BASIS OF PRESENTATION AND BUSINESS DESCRIPTION | 3 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND BUSINESS DESCRIPTION | 1. NOTE 1 – BASIS OF PRESENTATION AND BUSINESS DESCRIPTION The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of January 31, 2022 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended January 31, 2022 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2021 filed with the SEC on March 3, 2022. New World Technologies, Inc. (the “Company”), was formed in the State of Delaware on October 16, 2018. New World Technologies, Inc. is a healthcare and medical technology and device research, development and distribution company with a focus on developing and further providing innovative, cutting edge, technologically advanced products. Such technologies will be developed with an emphasis on diagnostics and screening technology, which potentially allows for the prevention or early detection and mitigation of potentially life-threatening illnesses. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Cash and Cash Equivalents The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”). Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of ASC 718-10 “Share Based Payments”. The Company recognizes these compensation costs, net of an estimated forfeiture rate, on a pro rata basis over the requisite service period of each vesting tranche of each award. The Company considers voluntary termination behavior as well as trends of actual option forfeitures when estimating the forfeiture rate. Liability For Stock To Be Issued The Company from time to time enters into agreements for the issuance of common and preferred stock for cash and services. When the shares have not been issued, the Company records the amounts as liability for stock to be issued. For cash transactions the Company records the liability for the amount of cash received and for services the Company records the transaction in accordance with ASC 845 Nonmonetary transactions whereby the services are valued based on the fair value of the services or the equity instruments to be issued, whichever is more clearly evident, as of the measurement date. NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2022 and 2021 (UNAUDITED) Recently Issued Accounting Standards The Financial Accounting Standards Board and the Securities Exchange commission have issued certain accounting standards updates and regulations that will become effective in subsequent periods. Except for the changes discussed below, management does not believe that any of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect in 2022 and 2021, and it does not believe that any of those pronouncements will have a significant impact on the Company’s financial statements at the time they become effective. Adoption of ASC 842 We lease all our office space in conducting our business. Effective on November 1, 2018 (fiscal 2019) we adopted FASB Accounting Standards Codification, or ASC, Topic 842, Leases Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. Our current operating lease is an office space lease, and the Company is currently not party to any finance leases. For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, an incremental borrowing rate for the same term as the underlying lease. During January 2021, we terminated our lease for office space which was then in effect and as a result, relinquished the space and derecognized a right of use asset of $ 126,249 133,477 7,184 14,412 614,581 The lease liability is based on the present value of the remaining minimum lease payments, discounted using the Small Business Administration (“SBA”) 7(a) loan incremental borrowing rate of 2.25 3.25 5.5 Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2022 and 2021 (UNAUDITED) Lease expense for our operating lease consists of the lease payments plus any initial direct costs, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases would consists of the amortization of the right-of-use asset on a straight-line basis over the lease term and interest expense determined on an amortized cost basis. The lease payments are allocated between a reduction of the lease liability and interest expense. The Company is currently not party to any finance leases. We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The Company is currently not party to any short-term leases. |
COMMON STOCK and PREFERRED STOC
COMMON STOCK and PREFERRED STOCK | 3 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
COMMON STOCK and PREFERRED STOCK | 2. NOTE 2 – COMMON STOCK and PREFERRED STOCK In October 2018, the Company filed a Certificate of Incorporation and organized under the Delaware General Corporation Law. Under this certificate, the Company has 100,000,000 .0001 20,000,000 .0001 Common Stock During October 2018, the Company issued 2,000,000 During October 2018, the Company raised $ 200,000 1,428,571 During October 2018, the Company entered into various agreements with key executives of the Company, and as a result, 90,000 12,600 During January 2021, the Company raised $ 500,000 100,000 500,000 During March 2021, the Company raised $ 250,000 50,000 250,000 During April 2021, the Company entered into a marketing services agreement. As a result, 500,000 2,500,000 During May 2021, the Company entered into a business advisory services agreement. As a result, 25,000 125,000 NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2022 and 2021 (UNAUDITED) Preferred Stock The Company does not have any classes or series of preferred stock designated. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 3. NOTE 3 – INCOME TAXES The Company files U.S. federal and state of New York tax returns that are subject to audit by tax authorities beginning with the calendar year ended December 31, 2018. The Company’s policy is to classify assessments, if any, for tax and related interest and penalties as tax expense. |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 4. NOTE 4 – COMMITMENTS Lease Agreement Our current operating lease right-of-use asset and operating lease liability represent our lease for office space used to conduct our business. As of January 31, 2021, the Company is not party to any finance leases. The lease has a remaining lease term of 7 SCHEDULE OF COMPONENTS OF LEASE EXPENSE January 31, January 31, 2022 2021 Operating lease cost (cost resulting from lease payments) $ 29,465 $ 18,133 Operating lease expense 26,418 30,821 The Company calculates its incremental borrowing rates for specific lease terms, used to discount future lease payments, as a function of the Small Business Administration (“SBA”) 7(a) loan incremental borrowing rates. The Company’s discount rate and lease term remaining on its lease liability is approximately 5.50 7 741 9,039 As of January 31, 2022 and 2021, the Company’s right-of-use assets are $ 506,400 592,211 543,297 601,250 The Company has taken advantage of certain practical expedients offered to registrants at adoption of ASC 842. The Company does not apply the recognition requirements of ASC 842 to short-term leases and sub leases. Instead, those lease payments are recognized in profit or loss on a straight-line basis over the lease term. Further, as a practical expedient, all lease contracts are accounted for as one single lease component, as opposed to separating lease and non-lease components to allocate the consideration within a single lease contract. Maturities of aggregate operating lease liabilities as of January 31, 2022 were as follows: SCHEDULE OF MATURITIES OF AGGREGATE OPERATING LEASE LIABILITIES 2022 $ 106,000 2023 106,000 2024 106,000 2025 106,000 2026 106,000 Thereafter $ 115,000 Total minimum lease payments $ 645,000 Imputed interest $ (118,000 ) Total $ 527,000 NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2022 and 2021 (UNAUDITED) During January 2021, the Company terminated its current lease for office space and as a result, relinquished the space and derecognized a right of use asset of $ 126,249 133,477 7,184 14,412 The Company entered into a 7 4,250 93,500 $ 26,418 30,821 Any excess of recognized rent expense over scheduled lease payments is included in accounts payable and accrued expenses. Employment Agreements In October 2018 the Company entered into an employment agreement with a key management individual. In accordance with the terms of the agreement, the Company issued equity compensation of 2,000,000 In October 2018 the Company entered into various employment agreements with key management individuals. In accordance with the respective terms of these agreements, the Company issued equity compensation 60,000 8,400 In October 2018 the Company entered into a Board of Director membership agreement with a key management individual. In accordance with the terms of this agreement, the Company issue equity compensation to this individual. As a result, 30,000 4,200 Stock Purchase Agreements During October 2018, the Company entered into a stock purchase agreement with a related party for the sale of shares of the Company’s common stock. As a result, 1,428,571 During January 2021, the Company entered into a stock purchase agreement with a related party for the sale of shares of the Company’s common stock. As a result, 100,000 During March 2021, the Company entered into a stock purchase agreement with a related party for the sale of shares of the Company’s common stock. As a result, 50,000 NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2022 and 2021 (UNAUDITED) Marketing Services Agreement In April 2021, the Company entered into a marketing services agreement with a professional marketing firm to establish a global marketing strategy that includes e-marketing, awareness, branding and digital media. The Company anticipates a global exposure initiative led by this firm to be launched by the end of fiscal 2021 and will help advance the business significantly. According to the terms of the agreement, the Company will compensate the consultant with a first payment period being May 15, 2021 to May 15, 2024 at $ 50,000 500,000 2,500,000 100,000 The term of the agreement has an initial term of 36 months and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew. In November 2021, the Company entered into an addendum to this marketing services agreement. The Company anticipates a global exposure initiative led by this firm to now be launched by the end of calendar 2022. According to the terms of the addendum, the Company will compensate the consultant with a first payment period estimated to be during the first calendar quarter 2022 at $ 50,000 500,000 2,500,000 100,000 The term of the agreement has an initial term of 36 months which shall commence following the Company completing an IPO capital raise, as defined, and the Company becoming a registered publicly trading company and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew. Business Advisory Agreement In May 2021, the Company entered into a business advisory services agreement to assist the Company with establishing a global strategy within current international business, healthcare and finance standards of industry and practice. According to the terms of the agreement, the Company will compensate the consultant $ 5,000 25,000 125,000 2 1 The term of the agreement is 12 months with termination by either party with 30 days written notice to the other of intent to cancel. Marketing Services Agreement In November 2021, the Company entered into a marketing services agreement with a professional marketing firm to establish a marketing strategy for e-marketing, awareness, social media platforms, branding, digital media and on-line presence. The Company anticipates these services to be an integral part of its global exposure initiative expected to be launched by the end of calendar 2022. According to the terms of the agreement, the Company will compensate the consultant $ 5,000 NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2022 and 2021 (UNAUDITED) |
CREDIT RISK AND OTHER CONCENTRA
CREDIT RISK AND OTHER CONCENTRATIONS | 3 Months Ended |
Jan. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CREDIT RISK AND OTHER CONCENTRATIONS | 5. NOTE 5 – CREDIT RISK AND OTHER CONCENTRATIONS Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade receivables. The Company places its cash with high credit quality financial institutions. At times, such cash and cash equivalents may exceed the FDIC insured limit of $ 250,000 There are no accounts receivable concentrations and no revenue concentrations at January 31, 2022 and 2021. |
LIQUIDITY AND CAPITAL RESOURCES
LIQUIDITY AND CAPITAL RESOURCES | 3 Months Ended |
Jan. 31, 2022 | |
Liquidity And Capital Resources | |
LIQUIDITY AND CAPITAL RESOURCES | 6. NOTE 6 – LIQUIDITY AND CAPITAL RESOURCES The Company has not yet commenced operations. As the Company is currently jumpstarting its medical technology and device research, development and distribution business, there will be concerted, focused efforts on raising capital. During October 2018, we were successful in raising net proceeds of $ 200,000 750,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jan. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 7. NOTE 7 – RELATED PARTY TRANSACTIONS During October 2018, the Company entered into a stock purchase agreement and sold 1,428,571 200,000 During January 2021, the Company entered into a stock purchase agreement and sold 100,000 500,000 During March 2021, the Company entered into a stock purchase agreement and sold 50,000 250,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jan. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 8. NOTE 8 – SUBSEQUENT EVENTS RELATED PARTY TRANSACTION Related Party Transaction / Acquisition The Company’s management continues to negotiate an asset purchase and sale transaction to acquire right, title and interest in certain business assets from a company that owns common shares in the Company and in which the Chief Executive Officer participates in. The Company is anticipating acquiring a medical technology, which also includes the assignment of any related FDA submittals, licenses, blueprints, test machines, schematics, or permits, as the case may be, and a predetermined amount of cash. The Company also anticipates the assignment and assumption of certain obligations and liabilities from that company as a result of the contemplated transaction. |
BASIS OF PRESENTATION AND BUS_2
BASIS OF PRESENTATION AND BUSINESS DESCRIPTION (Policies) | 3 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”). |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of ASC 718-10 “Share Based Payments”. The Company recognizes these compensation costs, net of an estimated forfeiture rate, on a pro rata basis over the requisite service period of each vesting tranche of each award. The Company considers voluntary termination behavior as well as trends of actual option forfeitures when estimating the forfeiture rate. |
Liability For Stock To Be Issued | Liability For Stock To Be Issued The Company from time to time enters into agreements for the issuance of common and preferred stock for cash and services. When the shares have not been issued, the Company records the amounts as liability for stock to be issued. For cash transactions the Company records the liability for the amount of cash received and for services the Company records the transaction in accordance with ASC 845 Nonmonetary transactions whereby the services are valued based on the fair value of the services or the equity instruments to be issued, whichever is more clearly evident, as of the measurement date. NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2022 and 2021 (UNAUDITED) |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The Financial Accounting Standards Board and the Securities Exchange commission have issued certain accounting standards updates and regulations that will become effective in subsequent periods. Except for the changes discussed below, management does not believe that any of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect in 2022 and 2021, and it does not believe that any of those pronouncements will have a significant impact on the Company’s financial statements at the time they become effective. |
Adoption of ASC 842 | Adoption of ASC 842 We lease all our office space in conducting our business. Effective on November 1, 2018 (fiscal 2019) we adopted FASB Accounting Standards Codification, or ASC, Topic 842, Leases Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. Our current operating lease is an office space lease, and the Company is currently not party to any finance leases. For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, an incremental borrowing rate for the same term as the underlying lease. During January 2021, we terminated our lease for office space which was then in effect and as a result, relinquished the space and derecognized a right of use asset of $ 126,249 133,477 7,184 14,412 614,581 The lease liability is based on the present value of the remaining minimum lease payments, discounted using the Small Business Administration (“SBA”) 7(a) loan incremental borrowing rate of 2.25 3.25 5.5 Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. NEW WORLD TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2022 and 2021 (UNAUDITED) Lease expense for our operating lease consists of the lease payments plus any initial direct costs, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases would consists of the amortization of the right-of-use asset on a straight-line basis over the lease term and interest expense determined on an amortized cost basis. The lease payments are allocated between a reduction of the lease liability and interest expense. The Company is currently not party to any finance leases. We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The Company is currently not party to any short-term leases. |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE | SCHEDULE OF COMPONENTS OF LEASE EXPENSE January 31, January 31, 2022 2021 Operating lease cost (cost resulting from lease payments) $ 29,465 $ 18,133 Operating lease expense 26,418 30,821 |
SCHEDULE OF MATURITIES OF AGGREGATE OPERATING LEASE LIABILITIES | Maturities of aggregate operating lease liabilities as of January 31, 2022 were as follows: SCHEDULE OF MATURITIES OF AGGREGATE OPERATING LEASE LIABILITIES 2022 $ 106,000 2023 106,000 2024 106,000 2025 106,000 2026 106,000 Thereafter $ 115,000 Total minimum lease payments $ 645,000 Imputed interest $ (118,000 ) Total $ 527,000 |
BASIS OF PRESENTATION AND BUS_3
BASIS OF PRESENTATION AND BUSINESS DESCRIPTION (Details Narrative) - USD ($) | Jan. 02, 2021 | Nov. 02, 2018 | Jan. 31, 2022 | Jan. 31, 2021 | Oct. 31, 2021 |
Operating lease, right-of-use assets | $ 614,581 | $ 506,400 | $ 592,211 | $ 525,101 | |
Operating lease liability | 527,000 | ||||
Gain on operating lease termination | $ 14,412 | ||||
Accounting Standards Update 2016-02 [Member] | |||||
Operating lease, right-of-use assets | 126,249 | ||||
Operating lease liability | 133,477 | ||||
Deferred rent | 7,184 | ||||
Gain on operating lease termination | $ 14,412 | ||||
Lease liability, description | The lease liability is based on the present value of the remaining minimum lease payments, discounted using the Small Business Administration (“SBA”) 7(a) loan incremental borrowing rate of 2.25% + Prime (3.25%) = 5.5% at May 2020, using the original lease term as the tenor. For any future finance leases, we would use the rate implicit in the lease or an incremental borrowing rate if the implicit lease rate cannot be determined. | ||||
Lease liability discount rate | 5.50% | ||||
Accounting Standards Update 2016-02 [Member] | Base Rate [Member] | |||||
Lease liability discount rate | 2.25% | ||||
Accounting Standards Update 2016-02 [Member] | Prime Rate [Member] | |||||
Lease liability discount rate | 3.25% |
COMMON STOCK and PREFERRED ST_2
COMMON STOCK and PREFERRED STOCK (Details Narrative) - USD ($) | 1 Months Ended | ||||||
Mar. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2018 | Jan. 31, 2022 | Oct. 31, 2021 | May 31, 2021 | Apr. 30, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Common Stock, Shares, Issued | 3,518,571 | 3,518,571 | |||||
Key Executives [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Issuance of common stock | 90,000 | ||||||
Issuance of common stock, value | $ 12,600 | ||||||
Employment Agreement [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Issuance of common stock | 2,000,000 | ||||||
Stock Purchase Agreement [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Issuance of common stock | 50,000 | 100,000 | 1,428,571 | ||||
Issuance of common stock, value | $ 250,000 | $ 500,000 | $ 200,000 | ||||
Proceeds from issuance of common stock | $ 250,000 | $ 500,000 | |||||
Common Stock, Shares, Issued | 25,000 | 500,000 | |||||
Common stock, to be issued | $ 125,000 | $ 2,500,000 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE (Details) - USD ($) | 3 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost (cost resulting from lease payments) | $ 29,465 | $ 18,133 |
Operating lease expense | $ 26,418 | $ 30,821 |
SCHEDULE OF MATURITIES OF AGGRE
SCHEDULE OF MATURITIES OF AGGREGATE OPERATING LEASE LIABILITIES (Details) | Jan. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 106,000 |
2023 | 106,000 |
2024 | 106,000 |
2025 | 106,000 |
2026 | 106,000 |
Thereafter | 115,000 |
Total minimum lease payments | 645,000 |
Imputed interest | (118,000) |
Total | $ 527,000 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) | 1 Months Ended | 3 Months Ended | ||||||||
Nov. 30, 2021USD ($) | May 31, 2021USD ($)shares | Apr. 30, 2021USD ($)shares | Mar. 31, 2021USD ($)shares | Jan. 31, 2021USD ($)shares | Oct. 31, 2018USD ($)shares | Jan. 31, 2022USD ($)ft²shares | Jan. 31, 2021USD ($) | Oct. 31, 2021USD ($) | Jan. 02, 2021USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Operating lease, right-of-use assets | $ 592,211 | $ 506,400 | $ 592,211 | $ 525,101 | $ 614,581 | |||||
Operating lease liability | 601,250 | 543,297 | 601,250 | $ 561,257 | ||||||
Operating lease liability | 527,000 | |||||||||
Gain on operating lease termination | 14,412 | |||||||||
Lease payment | 93,500 | |||||||||
Rental expense | 26,418 | 30,821 | ||||||||
Office Space [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Operating lease, right-of-use assets | 126,249 | 126,249 | ||||||||
Operating lease liability | 133,477 | 133,477 | ||||||||
Deferred rent | 7,184 | 7,184 | ||||||||
Gain on operating lease termination | $ 14,412 | |||||||||
Employment Agreements [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Issuance of common stock | shares | 2,000,000 | |||||||||
Issuance of common stock for equity compensation | shares | 60,000 | |||||||||
Issuance of common stock for equity compensation, value | $ 8,400 | |||||||||
Board of Director Membership Agreement [Member] | Board of Director [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Issuance of common stock for equity compensation | shares | 30,000 | |||||||||
Issuance of common stock for equity compensation, value | $ 4,200 | |||||||||
Stock Purchase Agreement [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Issuance of common stock | shares | 50,000 | 100,000 | 1,428,571 | |||||||
Issuance of common stock for equity compensation, value | $ 250,000 | $ 500,000 | $ 200,000 | |||||||
Marketing Services Agreement [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Compensation paid | $ 5,000 | 50,000 | ||||||||
Marketing Services Agreement [Member] | Consultant [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Compensation paid | $ 100,000 | $ 50,000 | $ 100,000 | |||||||
Issuance of restricted stock, shares | shares | 500,000 | 500,000 | ||||||||
Issuance of restricted stock, value | $ 2,500,000 | $ 2,500,000 | ||||||||
Agreement term, description | The term of the agreement has an initial term of 36 months which shall commence following the Company completing an IPO capital raise, as defined, and the Company becoming a registered publicly trading company and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew. | The term of the agreement has an initial term of 36 months and shall automatically renew for an additional 12 months unless either party provides thirty days written notice to the other of intent to cancel or non-renew. | ||||||||
Business Advisory Services Agreement [Member] | Consultant [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Compensation paid | $ 5,000 | |||||||||
Issuance of restricted stock, shares | shares | 25,000 | |||||||||
Issuance of restricted stock, value | $ 125,000 | |||||||||
Agreement term, description | The term of the agreement is 12 months with termination by either party with 30 days written notice to the other of intent to cancel. | |||||||||
Cash management fee, percent | 2.00% | |||||||||
Common stock management fee percent | 1.00% | |||||||||
Lease Agreements [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Lease term | 7 years | |||||||||
Discount rate | 5.50% | |||||||||
Lease term remaining on lease liability | 7 years | |||||||||
Operating cash flows from operating leases | $ 741 | $ 9,039 | ||||||||
Lease agreement term | 7 years | |||||||||
New Lease Agreements [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Area of Land | ft² | 4,250 |
CREDIT RISK AND OTHER CONCENT_2
CREDIT RISK AND OTHER CONCENTRATIONS (Details Narrative) | Jan. 31, 2022USD ($) |
Maximum [Member] | |
FDIC insured amount | $ 250,000 |
LIQUIDITY AND CAPITAL RESOURC_2
LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - USD ($) | 1 Months Ended | ||
Mar. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2018 | |
Liquidity And Capital Resources | |||
Proceeds from issuance of private placement | $ 750,000 | $ 750,000 | $ 200,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - Stock Purchase Agreement [Member] - USD ($) | 1 Months Ended | ||
Mar. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Issuance of common stock | 50,000 | 100,000 | 1,428,571 |
Issuance of common stock, value | $ 250,000 | $ 500,000 | $ 200,000 |
Chief Executive Officer [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Issuance of common stock | 50,000 | 100,000 | 1,428,571 |
Issuance of common stock, value | $ 250,000 | $ 500,000 | $ 200,000 |