Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2021 | Jun. 14, 2021 | |
Details | ||
Registrant CIK | 0001791325 | |
Fiscal Year End | --10-31 | |
Registrant Name | Freedom Internet Group Inc. | |
SEC Form | 10-Q | |
Period End date | Apr. 30, 2021 | |
Tax Identification Number (TIN) | 66-0910894 | |
Number of common stock shares outstanding | 11,132,208 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | No | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | true | |
Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-56149 | |
Entity Incorporation, State or Country Code | PR | |
Entity Address, Address Line One | 151 Calle San Francisco | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | San Juan | |
Entity Address, Country | PR | |
Entity Address, Postal Zip Code | 00901 | |
Entity Address, Address Description | Address of principal executive offices | |
City Area Code | 855 | |
Local Phone Number | 422-4200 | |
Phone Fax Number Description | Registrant’s telephone number, including area code | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
ASSETS | ||
Royalty interests, net of accumulated amortization of $70,355 and $44,500, respectively | $ 785,320 | $ 686,175 |
Total assets | 1,599,600 | 1,737,962 |
Cash and cash equivalents | 761,613 | 1,035,120 |
Prepaid expenses | 7,667 | 16,667 |
Cryptocurrencies | 45,000 | 0 |
Total Current Assets | 814,280 | 1,051,787 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 44,416 | 26,474 |
Total current liabilities | 44,416 | 26,474 |
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Common stock | 92,304 | 92,304 |
Common stock subscribed | 19,017 | 19,017 |
Additional paid in capital | 2,240,447 | 2,240,447 |
Accumulated deficit | (807,884) | (651,580) |
Total Stockholders' Equity | 1,543,884 | 1,700,188 |
Total Liabilities and Stockholders' Equity | 1,599,600 | 1,737,962 |
Non-current Liabilities | ||
Notes payable | 11,300 | 11,300 |
Total Liabilities | $ 55,716 | $ 37,774 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - USD ($) | Apr. 30, 2021 | Oct. 31, 2020 |
Details | ||
Royalty Interests, Accumulated Amortization | $ 70,355 | $ 44,500 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 9,230,400 | 9,230,400 |
Common Stock, Shares, Outstanding | 9,230,400 | 9,230,400 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Revenues | ||||
Royalties (net) | $ 17,885 | $ 21,533 | $ 42,369 | $ 21,533 |
Operating Expenses | ||||
Advertising | 882 | 666 | 6,968 | 14,796 |
Professional and consulting | 62,626 | 61,313 | 91,254 | 151,344 |
Salaries and payroll taxes | 40,904 | 30,537 | 60,841 | 47,978 |
Rent expense | 75 | 225 | 150 | 450 |
Amortization of royalty interests | 13,689 | 13,417 | 25,855 | 27,208 |
Other expenses | 7,942 | 14,398 | 14,221 | 9,356 |
Total Operating Expenses | 126,118 | 120,556 | 199,289 | 251,132 |
Loss from operations | (108,233) | (99,023) | (156,920) | (229,599) |
Other Income | ||||
Interest income | 180 | 2,407 | 358 | 6,307 |
Other | 46 | 206 | 258 | 595 |
Total other income | 226 | 2,613 | 616 | 6,902 |
Net Loss | $ (108,007) | $ (96,410) | $ (156,304) | $ (222,697) |
Net loss per common share - basic and diluted | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
Weighted average shares outstanding - basic | 9,230,400 | 9,230,400 | 9,230,400 | 9,230,400 |
Weighted average shares outstanding - diluted | 9,230,400 | 9,230,400 | 9,230,400 | 9,230,400 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - USD ($) | Preferred Stock | Common Stock | Common Stock Subscribed | Additional Paid-in Capital | Retained Earnings | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Nov. 30, 2019 | $ 0 | $ 92,304 | $ 0 | $ (61,536) | $ (167,700) | $ (136,932) |
Shares, Outstanding, Beginning Balance at Nov. 30, 2019 | 0 | 9,230,400 | ||||
Net Loss | $ 0 | $ 0 | 0 | 0 | (126,290) | (126,290) |
Stockholders' Equity Attributable to Parent, Ending Balance at Jan. 31, 2020 | $ 0 | $ 92,304 | 0 | (61,536) | (293,990) | (263,222) |
Shares, Outstanding, Ending Balance at Jan. 31, 2020 | 0 | 9,230,400 | ||||
Net Loss | (96,410) | (96,410) | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 30, 2020 | $ 0 | $ 92,304 | (61,536) | (390,400) | (359,632) | |
Shares, Outstanding, Ending Balance at Apr. 30, 2020 | 0 | 9,230,400 | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance at Oct. 31, 2020 | 1,700,188 | |||||
Net Loss | (156,304) | |||||
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 30, 2021 | $ 0 | $ 92,304 | 19,017 | 2,240,447 | (807,884) | 1,543,884 |
Shares, Outstanding, Ending Balance at Apr. 30, 2021 | 0 | 9,230,400 | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance at Nov. 30, 2020 | $ 0 | $ 92,304 | 19,017 | 2,240,447 | (651,580) | 1,700,188 |
Shares, Outstanding, Beginning Balance at Nov. 30, 2020 | 0 | 9,230,400 | ||||
Net Loss | $ 0 | $ 0 | 0 | 0 | (48,297) | (48,297) |
Stockholders' Equity Attributable to Parent, Ending Balance at Jan. 31, 2021 | $ 0 | $ 92,304 | 19,017 | 2,240,447 | (699,877) | 1,651,891 |
Shares, Outstanding, Ending Balance at Jan. 31, 2021 | 0 | 9,230,400 | ||||
Net Loss | (108,007) | (108,007) | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 30, 2021 | $ 0 | $ 92,304 | $ 19,017 | $ 2,240,447 | $ (807,884) | $ 1,543,884 |
Shares, Outstanding, Ending Balance at Apr. 30, 2021 | 0 | 9,230,400 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash flows from operating activities: | ||
Net Loss | $ (156,304) | $ (222,697) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of royalty interests | 25,855 | 27,208 |
Increase (Decrease) in Prepaid Expense | 9,000 | 5,000 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 17,942 | 9,409 |
Net cash used in operating activities | (103,507) | (181,080) |
Cash flows from investing activities | ||
Purchase of royalty interest | (125,000) | (430,000) |
Purchase of cryptocurrencies | (45,000) | 0 |
Net cash used in investing activities | (170,000) | (430,000) |
Net change in cash and cash equivalents | (273,507) | (611,080) |
Cash and cash equivalents, at beginning of period | 1,035,120 | 1,179,497 |
Cash and cash equivalents, at end of period | 761,613 | 568,417 |
Supplemental cash flow information: | ||
Interest paid | 0 | 48 |
Income taxes paid | $ 0 | $ 0 |
NOTE 1 - ORGANIZATION AND DESCR
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS | 6 Months Ended |
Apr. 30, 2021 | |
Notes | |
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS On November 15, 2018, (commencement of operations) Freedom Internet Group Inc. (the “Company”) was organized in Puerto Rico to provide Internet-focused entrepreneurs with business consulting services, centralized management services and revenue-based financing. The Company is engaged in the business of acquiring, holding and managing royalty interests derived from Internet based businesses, referred to as operators. Royalty interests are passive (non-operating) agreements that provide the Company with contractual rights to revenue produced from operators. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Apr. 30, 2021 | |
Notes | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. The accompanying interim unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information under Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-months ended April 30, 2021, are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures presented herein are adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the period ended October 31, 2020. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America, and, as such, include amounts based on judgments, estimates, and assumptions made by management that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Royalty Interests Royalty interests are passive (non-operating) agreements that provide us with contractual rights to a percentage of revenue produced from companies we provide funds to. The Company amortizes the cost of royalty interests over the estimated life of the cash flows produced by the agreement, which is initially estimated at 15 years. Royalty interests are considered a long-lived asset that is required to be reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company evaluates its royalty agreements at subsequent reporting periods to determine if a change in the underlying agreement or cash flows warrants a change in the estimate. Impairment exists for the royalty interests if the carrying amount exceeds the estimate of future net undiscounted cash flows expected to be generated by such assets. An impairment charge is required to be recognized if the carrying amount of the asset, or asset group, exceeds its fair value. Revenue Recognition The Company recognizes revenue under royalty interest agreements when earned and collection is reasonably assured. The Company recognizes revenue from royalty interest agreements under ASC 606-10-55-65 which apply to sales-based or usage-based royalties. Guidance under this section stipulates that revenue recognition should be based when the later of the following events occur: (1) the subsequent sales occur or (2) the performance obligation to which some or all for the sales-based royalty has been allocated has been satisfied or partially satisfied. The Company deems collection efforts to be the key performance obligation being satisfied, and therefore has adopted the approach of recognizing revenue based on customer collections. The operators that are parties to the royalty agreements, are typically structured to report and pay percentages of revenue earned over quarterly or monthly periods, some of which do not line up with the quarterly reporting period of the Company. Income Taxes Income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established for deferred tax assets that, based on management ’ Tax benefits of uncertain tax positions are recorded only where the position is “more likely than not” to be sustained based on their technical merits. The amount recognized is the amount that represents the largest amount of tax benefit that is greater than 50% likely of being ultimately realized. A liability is recognized for any benefit claimed or expected to be claimed, in a tax return in excess of the benefit recorded in the financial statements, along with any interest and penalty (if applicable) in such excess. The Company has no uncertain tax positions as of April 30, 2021. Cryptocurrencies The Company made an investment in cryptocurrencies, including bitcoin, during the three months ended April 30, 2021 of $45,000. Such amounts are included in current assets in the accompanying balance sheets. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. |
NOTE 3. ROYALTY INTERESTS
NOTE 3. ROYALTY INTERESTS | 6 Months Ended |
Apr. 30, 2021 | |
Notes | |
NOTE 3. ROYALTY INTERESTS | NOTE 3 - ROYALTY INTERESTS The Company recorded total amortization expense related to royalty agreements of $25,855 and $27,208, for the six month periods ended April 30, 2021 and 2020, respectively. Additional royalty interests acquired during the quarter ended April 30, 2021 were the following: Artist Holdings, LLC On February 16, 2021, the Company acquired a royalty interest from Artist Holdings, LLC, a limited liability company formed in the State of Arizona. Artist Holdings provides their clients tools and tutorials on creating their art and platforms to buy art pieces from artists. We purchased a royalty interest from Artist Holdings for $50,000, which provides us with a perpetual 12.5% of all future net sales generated by Artist Holdings through its websites, training programs, and art brokerage. We have received a personal guarantee for royalty payments due by the principal shareholder of Artist Holdings. RhymeMakers, LLC On February 19, 2021, the Company acquired a royalty interest from RhymeMakers, LLC, a limited liability company formed in the State of Wyoming. RhymeMakers provides their clients tools and tutorials on how to rap. We purchased a royalty interest from RhymeMakers for $75,000, which provides us with a perpetual 15% of all net sales generated by RhymeMakers through the website www.rhymemakers.com |
NOTE 4. NOTE PAYABLE
NOTE 4. NOTE PAYABLE | 6 Months Ended |
Apr. 30, 2021 | |
Notes | |
NOTE 4. NOTE PAYABLE | NOTE 4 - NOTE PAYABLE On July 1, 2020 and September 21, 2020, the Company closed on two loans for $7,400 and $3,900 (the “PPP loans”) from a commercial bank, pursuant to the Paycheck Protection Program (“PPP”) administered by the Small Business Administration (the “SBA”) pursuant to the CARES Act. The PPP loans mature on June 30, 2025 and August 31, 2025, and bear an interest rate of 1% per annum. Payments of principal and interest of any unforgiven balance commence on December 1, 2020. Under the Paycheck Protection Program Flexibility Act of 2020 (the “PPP Flexibility Act”), (i) the first payment date for the PPP loans will be the earlier of (a) 10 months after the end of the “covered period” (as determined under the PPP) or (b) the date the bank receives a remittance of the forgiven amount from the SBA, and (ii) the PPP loans’ maturity is extended to five years (from 2 years). All or a portion of the PPP loans may be forgiven by the lender upon application by the Company beginning 60 days after the loan approval and upon documentation of expenditures in accordance with the requirements set forth by the SBA pursuant to the CARES Act. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments, covered mortgage interest and covered utilities during either, at the Company’s election, the eight-week period or twenty-four-week period beginning on the date of disbursement of proceeds from the PPP loans. For purposes of the CARES Act, payroll costs exclude compensation of an individual employee in excess of $100,000 prorated annually. Not more than 40% of the forgiven amount may be for non-payroll costs. Forgiveness is reduced, under certain circumstances, if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced. In the event the PPP loans, or any portion thereof, is forgiven pursuant to the PPP, the amount forgiven is applied to outstanding principal. The balance of the loans at April 30, 2021 is $11,300. As of April 30, 2021, the Company has submitted the application for forgiveness and as of June 8, 2021 has received notification of forgiveness for the full amount of the note outstanding. |
NOTE 5. STOCK PURCHASE WARRANTS
NOTE 5. STOCK PURCHASE WARRANTS | 6 Months Ended |
Apr. 30, 2021 | |
Notes | |
NOTE 5. STOCK PURCHASE WARRANTS | NOTE 5 - STOCK PURCHASE WARRANTS In July through September 2020, the Company issued warrants in connection with the sales of stock subscriptions. At April 30, 2021, warrants outstanding are as follows: Warrant Shares Weighted Average Exercise Price Balance at October 31, 2020 254,511 $2.67 Granted - - Forfeit or cancelled - - Exercised - - Balance at April 30, 2021 254,511 $2.67 The fair value of the warrants on the date of issue was $19,857 and was determined using the Black-Scholes option pricing model with the following assumptions: Expected Life 1.27 - 1.42 years Volatility 28% * Dividend Yield 0% ** Risk Free Interest Rate 0.11% - 0.14% *** *The volatility rate is based on the average volatility rate of comparable publicly traded companies **The Company has no history or expectation of paying cash dividends on its common stock ***The risk-free interest rate is based on the U.S Treasury yield for a term consistent with the expected life of the awards in effect at the time of grant. |
NOTE 6. STOCK DIVIDEND
NOTE 6. STOCK DIVIDEND | 6 Months Ended |
Apr. 30, 2021 | |
Notes | |
NOTE 6. STOCK DIVIDEND | NOTE 6 - STOCK DIVIDEND On November 2, 2020, our Board of Directors effectuated a three-for-one stock split of our common stock in the form of a stock dividend (the “Stock Split”), so that each stockholder of record as of the close of business on November 2, 2020 received two (2) additional shares of common stock for each share of common stock held by such stockholder. This resulted in 6,153,600 additional shares of common stock being issued to the current shareholders and 1,267,872 shares set aside for the common stock subscribed for the private placement and the SAFE instrument conversions. After the stock dividend and reclassification of common stock subscribed to common stock, the company will have 11,132,208 shares outstanding. No effect on the par value of the shares occurred and remains at $0.01. All current and prior period amounts related to shares outstanding, price per share and earnings per share in the Company’s financial statements and accompanying notes have been restated to give retroactive presentation related to the stock split. |
NOTE 7. COMMITMENTS AND CONTING
NOTE 7. COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Apr. 30, 2021 | |
Notes | |
NOTE 7. COMMITMENTS AND CONTINGENCIES | NOTE 7 - COMMITMENTS AND CONTINGENCIES In March 2020, the World Health Organization declared the outbreak of a novel coronavirus disease (“COVID-19”) as a pandemic, which continues to spread throughout the U.S. COVID-19 is having an unprecedented impact on the U.S economy as federal, state, and local governments react to this public health crisis. The impacts of the current COVID-19 pandemic are broad reaching and the impacts on the Company’s licensing royalty interests is to date unknown. Due to the COVID-19 outbreak, there is significant uncertainty surrounding the potential impact on the Company’s future results of operations and cash flows and its ability to raise capital. Continued impacts of the pandemic could materially adversely affect the Company’s near-term and long-term revenues, earnings, liquidity, and cash flows as the Company’s customers and /or licensees may request temporary relief, delay or not make scheduled payments on their royalty commitments. |
NOTE 8. SUBSEQUENT EVENTS
NOTE 8. SUBSEQUENT EVENTS | 6 Months Ended |
Apr. 30, 2021 | |
Notes | |
NOTE 8. SUBSEQUENT EVENTS | NOTE 8 - SUBSEQUENT EVENTS In May 2021, the Company made an additional investment of $100,000 in cryptocurrencies. As of June 8, 2021, the Company received notification of PPP loan forgiveness for the $11,300 outstanding. |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Apr. 30, 2021 | |
Policies | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. The accompanying interim unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information under Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the Company’s opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-months ended April 30, 2021, are not necessarily indicative of the results for the full year. While management of the Company believes that the disclosures presented herein are adequate and not misleading, these interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the period ended October 31, 2020. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America, and, as such, include amounts based on judgments, estimates, and assumptions made by management that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
NOTE 2 - SUMMARY OF SIGNIFICA_3
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies) | 6 Months Ended |
Apr. 30, 2021 | |
Policies | |
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. |
NOTE 2 - SUMMARY OF SIGNIFICA_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Royalty Interests (Policies) | 6 Months Ended |
Apr. 30, 2021 | |
Policies | |
Royalty Interests | Royalty Interests Royalty interests are passive (non-operating) agreements that provide us with contractual rights to a percentage of revenue produced from companies we provide funds to. The Company amortizes the cost of royalty interests over the estimated life of the cash flows produced by the agreement, which is initially estimated at 15 years. Royalty interests are considered a long-lived asset that is required to be reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company evaluates its royalty agreements at subsequent reporting periods to determine if a change in the underlying agreement or cash flows warrants a change in the estimate. Impairment exists for the royalty interests if the carrying amount exceeds the estimate of future net undiscounted cash flows expected to be generated by such assets. An impairment charge is required to be recognized if the carrying amount of the asset, or asset group, exceeds its fair value. |
NOTE 2 - SUMMARY OF SIGNIFICA_5
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies) | 6 Months Ended |
Apr. 30, 2021 | |
Policies | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue under royalty interest agreements when earned and collection is reasonably assured. The Company recognizes revenue from royalty interest agreements under ASC 606-10-55-65 which apply to sales-based or usage-based royalties. Guidance under this section stipulates that revenue recognition should be based when the later of the following events occur: (1) the subsequent sales occur or (2) the performance obligation to which some or all for the sales-based royalty has been allocated has been satisfied or partially satisfied. The Company deems collection efforts to be the key performance obligation being satisfied, and therefore has adopted the approach of recognizing revenue based on customer collections. The operators that are parties to the royalty agreements, are typically structured to report and pay percentages of revenue earned over quarterly or monthly periods, some of which do not line up with the quarterly reporting period of the Company. |
NOTE 2 - SUMMARY OF SIGNIFICA_6
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies) | 6 Months Ended |
Apr. 30, 2021 | |
Policies | |
Income Taxes | Income Taxes Income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established for deferred tax assets that, based on management ’ Tax benefits of uncertain tax positions are recorded only where the position is “more likely than not” to be sustained based on their technical merits. The amount recognized is the amount that represents the largest amount of tax benefit that is greater than 50% likely of being ultimately realized. A liability is recognized for any benefit claimed or expected to be claimed, in a tax return in excess of the benefit recorded in the financial statements, along with any interest and penalty (if applicable) in such excess. The Company has no uncertain tax positions as of April 30, 2021. |
NOTE 2 - SUMMARY OF SIGNIFICA_7
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cryptocurrencies (Policies) | 6 Months Ended |
Apr. 30, 2021 | |
Policies | |
Cryptocurrencies | Cryptocurrencies The Company made an investment in cryptocurrencies, including bitcoin, during the three months ended April 30, 2021 of $45,000. Such amounts are included in current assets in the accompanying balance sheets. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. |
NOTE 5. STOCK PURCHASE WARRAN_2
NOTE 5. STOCK PURCHASE WARRANTS: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Tables/Schedules | |
Schedule of Stockholders' Equity Note, Warrants or Rights | Warrant Shares Weighted Average Exercise Price Balance at October 31, 2020 254,511 $2.67 Granted - - Forfeit or cancelled - - Exercised - - Balance at April 30, 2021 254,511 $2.67 |
NOTE 5. STOCK PURCHASE WARRAN_3
NOTE 5. STOCK PURCHASE WARRANTS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 6 Months Ended |
Apr. 30, 2021 | |
Tables/Schedules | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Expected Life 1.27 - 1.42 years Volatility 28% * Dividend Yield 0% ** Risk Free Interest Rate 0.11% - 0.14% *** |
NOTE 2 - SUMMARY OF SIGNIFICA_8
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cryptocurrencies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | |
Details | |||
Payments to Acquire Assets, Investing Activities | $ 45,000 | $ 45,000 | $ 0 |
NOTE 3. ROYALTY INTERESTS (Deta
NOTE 3. ROYALTY INTERESTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Amortization of royalty interests | $ 13,689 | $ 13,417 | $ 25,855 | $ 27,208 |
Artist Holdings, LLC | ||||
Payments for Royalties | 50,000 | |||
RhymeMakers, LLC | ||||
Payments for Royalties | $ 75,000 |
NOTE 4. NOTE PAYABLE (Details)
NOTE 4. NOTE PAYABLE (Details) - USD ($) | Sep. 21, 2020 | Jul. 01, 2020 | Apr. 30, 2021 | Oct. 31, 2020 |
Notes payable | $ 11,300 | $ 11,300 | ||
PPP Loan 1 | ||||
Proceeds from Loans | $ 3,900 | $ 7,400 | ||
Debt Instrument, Maturity Date | Jun. 30, 2025 | |||
Debt Instrument, Interest Rate During Period | 1.00% |
NOTE 5. STOCK PURCHASE WARRAN_4
NOTE 5. STOCK PURCHASE WARRANTS: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - Warrant - $ / shares | Jan. 31, 2021 | Oct. 31, 2020 |
Shares, Outstanding | 254,511 | 254,511 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 2.67 | $ 2.67 |
NOTE 5. STOCK PURCHASE WARRAN_5
NOTE 5. STOCK PURCHASE WARRANTS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - Warrant | 6 Months Ended |
Apr. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 28.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year 3 months 7 days |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.11% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year 5 months 1 day |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.14% |
NOTE 6. STOCK DIVIDEND (Details
NOTE 6. STOCK DIVIDEND (Details) | Nov. 02, 2020shares |
Stockholders' Equity Note, Stock Split | On November 2, 2020, our Board of Directors effectuated a three-for-one stock split of our common stock in the form of a stock dividend (the “Stock Split”), so that each stockholder of record as of the close of business on November 2, 2020 received two (2) additional shares of common stock for each share of common stock held by such stockholder. |
Stock Issued During Period, Shares, Stock Splits | 6,153,600 |
Common Stock Subscribed | |
Stock Issued During Period, Shares, Stock Splits | 1,267,872 |
NOTE 8. SUBSEQUENT EVENTS (Deta
NOTE 8. SUBSEQUENT EVENTS (Details) | 6 Months Ended |
Apr. 30, 2021 | |
Details | |
Subsequent Event, Description | In May 2021, the Company made an additional investment of $100,000 in cryptocurrencies. As of June 8, 2021, the Company received notification of PPP loan forgiveness for the $11,300 outstanding. |