Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 31, 2020 | Nov. 10, 2020 | |
Document Information Line Items | ||
Entity Registrant Name | FINOTEC GROUP INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --01-31 | |
Entity Common Stock, Shares Outstanding | 300,000,000 | |
Amendment Flag | false | |
Entity Central Index Key | 0000831378 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Oct. 31, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | true | |
Entity File Number | 033-20966 | |
Entity Incorporation, State or Country Code | NV | |
Entity Interactive Data Current | Yes |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Oct. 31, 2020 | Jan. 31, 2020 |
ASSETS | ||
Total Assets | ||
LIABILITIES & STOCKHOLDERS’ DEFICIT | ||
Accounts payable | 620 | |
Note payable related parties | 23,306 | 2,675 |
Total liabilities | 23,926 | 2,675 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Preferred Series A stock, $0.001 par value, 10,000,000 shares authorized, 10,000,000 shares issued and outstanding, October 31, 2020 and January 31,2020 | 10,000 | |
Common stock, $0.001 par value; 300,000,000 shares authorized, 300,000,000 shares issued and outstanding October 31, 2020 and January 31, 2020 | 300,000 | 300,000 |
Additional paid in capital | 13,851,548 | 13,261,548 |
Retained earnings (deficit) | (14,185,474) | (13,564,223) |
Total Stockholders’ (Deficit) | (23,926) | (2,675) |
Total Liabilities and Stockholders’ (Equity) |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Oct. 31, 2020 | Jan. 31, 2020 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 300,000,000 | 300,000,000 |
Common stock, shares outstanding | 300,000,000 | 300,000,000 |
Preferred Series A stock | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred shares authorized | 10,000,000 | 10,000,000 |
Preferred shares issued | 10,000,000 | 10,000,000 |
Preferred shares outstanding | 10,000,000 | 10,000,000 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenue | ||||
Operating Expenses: | ||||
Administrative expenses -related party | 6,737 | 621,251 | ||
Total operating expenses | 6,737 | 621,251 | ||
(Loss) from operations | (6,737) | (621,251) | ||
Other expense | ||||
Other (expense) net | ||||
Income (loss) before provision for income taxes | (6,737) | (621,251) | ||
Provision for income taxes | ||||
Net (Loss) | $ (6,737) | $ (621,251) | ||
Basic and diluted earnings(loss) per common share (in Dollars per share) | $ 0 | $ 0 | ||
Weighted average number of shares outstanding (in Shares) | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (621,251) | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||
Stock-based compensation | 600,000 | |
Changes in operating assets and liabilities: | ||
Accounts payable | 620 | |
Net cash provided by (used for) operating activities | (20,631) | |
Cash Flows From Investing Activities: | ||
Net cash provided by (used for) investing activities | ||
Cash Flows From Financing Activities: | ||
Proceeds from related party loans | 20,631 | |
Net cash provided by (used for) financing activities | 20,631 | |
Net Increase (Decrease) In Cash | ||
Cash At The Beginning Of The Period | ||
Cash At The End Of The Period | ||
Supplemental disclosure of cash flow information: | ||
Cash paid for interest |
Statements of Changes in Stockh
Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Jan. 30, 2019 | $ 300,000 | $ 13,261,548 | $ (13,561,548) | ||
Balance (in Shares) at Jan. 30, 2019 | 300,000,000 | ||||
Net loss | |||||
Balance at Apr. 30, 2019 | $ 300,000 | 13,261,548 | (13,561,548) | ||
Balance (in Shares) at Apr. 30, 2019 | 300,000,000 | ||||
Net loss | |||||
Balance at Jul. 31, 2019 | $ 300,000 | 13,261,548 | (13,561,548) | ||
Balance (in Shares) at Jul. 31, 2019 | 300,000,000 | ||||
Net loss | |||||
Balance at Oct. 31, 2019 | $ 300,000 | 13,261,548 | (13,561,548) | ||
Balance (in Shares) at Oct. 31, 2019 | 300,000,000 | ||||
Balance at Jan. 31, 2020 | $ 300,000 | 13,261,548 | (13,564,223) | (2,675) | |
Balance (in Shares) at Jan. 31, 2020 | 300,000,000 | ||||
Net loss | (607,790) | (607,790) | |||
Issuance of preferred stock | $ 10,000 | 590,000 | 600,000 | ||
Issuance of preferred stock (in Shares) | 10,000,000 | ||||
Balance at Apr. 30, 2020 | $ 10,000 | $ 300,000 | 13,851,548 | (14,172,013) | (10,465) |
Balance (in Shares) at Apr. 30, 2020 | 10,000,000 | 300,000,000 | |||
Balance at Jan. 31, 2020 | $ 300,000 | 13,261,548 | (13,564,223) | (2,675) | |
Balance (in Shares) at Jan. 31, 2020 | 300,000,000 | ||||
Net loss | (621,251) | ||||
Balance at Oct. 31, 2020 | $ 10,000 | $ 300,000 | 13,851,548 | (14,185,474) | (23,926) |
Balance (in Shares) at Oct. 31, 2020 | 10,000,000 | 300,000,000 | |||
Balance at Apr. 30, 2020 | $ 10,000 | $ 300,000 | 13,851,548 | (14,172,013) | (10,465) |
Balance (in Shares) at Apr. 30, 2020 | 10,000,000 | 300,000,000 | |||
Net loss | (6,725) | (6,725) | |||
Balance at Jul. 31, 2020 | $ 10,000 | $ 300,000 | 13,851,548 | (14,178,738) | (17,190) |
Balance (in Shares) at Jul. 31, 2020 | 10,000,000 | 300,000,000 | |||
Net loss | (6,737) | (6,737) | |||
Balance at Oct. 31, 2020 | $ 10,000 | $ 300,000 | $ 13,851,548 | $ (14,185,474) | $ (23,926) |
Balance (in Shares) at Oct. 31, 2020 | 10,000,000 | 300,000,000 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS The Finotec Group Inc. (“Finotec”, “the Company”, “we”, “us”) has been dormant since November 2011. On March 16, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A-20-809716-B, Custodian Ventures LLC (“Custodian”) was appointed custodian of the Company. On March 17, 2020, Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer, Chief Executive Officer, and Chairman of the Board of Directors. David Lazar, 30, has been CEO and Chairman of the Company since May 16, 2018. David Lazar is a private investor. Mr. Lazar has been a partner at Zenith Partners International since 2013, where he specializes in research and development, sales, and marketing. From 2014 through 2015, David was the Chief Executive Officer of Dico, Inc., which was then sold to Peekay Boutiques. Since February of 2018, Mr. Lazar has been the managing member of Custodian Ventures LLC, where he specializes in assisting distressed public companies. Since March 2018, David has acted as the managing member of Activist Investing LLC, which specializes in active investing in distressed public companies. David has a diverse knowledge of financial, legal, and operations management; public company management, accounting, audit preparation, due diligence reviews, and SEC regulations. COVID-19 On March 11, 2020, the World Health Organization (“WHO”) declared the Covid-19 outbreak to be a global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. Most US states and many countries have issued policies intended to stop or slow the further spread of the disease. Covid-19 and the U.S’s response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the Covid-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business, or our operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“ FASB Codification GAAP Management’s Representation of Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. Going Concern The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since inception. As of October 31, 2020, the Company had a working capital deficit of $23,926 and negative retained earnings of 14,185,747. Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. The Company is currently being funded by David Lazar who is extending interest-free demand loans to the Company. Historically, the Company has raised capital through private placements, as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans. The Company will be required to continue to so until its operations become profitable. Also, the Company has, in the past, paid for consulting services with its common stock to maximize working capital, and intends to continue this practice where feasible. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities, the liability for the excess share issuance, and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. Revenue Recognition On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Results for reporting periods beginning after April 1, 2018, are presented under ASC 606. As of and for the year ended October 31, 2020, the financial statements were not impacted due to the application of Topic 606 because the Company had no revenues. Cash and cash equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On October 31, 2020, and January 31, 2020, the Company’s cash equivalents totaled $-0- and $-0- respectively. Income taxes The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes” “Accounting for Uncertainty in Income Taxes” The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit. Stock-based Compensation The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Net Loss per Share Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements Codification Improvements to Topic 842, Leases (Topic 842) Targeted Improvements, We intend to adopt ASC 842 on July 1, 2020. The adoption of this guidance is not expected to have any impact on our financial statements. Stockholders’ Equity The Company has authorized 300,000,000 shares of Common Stock with a par value of $0.001. As of October 31, 2020, and January 31, 2020, respectively, there were 300,000,000 shares of Common Stock issued and outstanding, respectively. On April 27, 2020, the Company filed a Certificate of Designation with the State of Nevada to authorize 10,000,000 shares of Series A Preferred Stock (“Series A”). Each share of Series A is convertible into 20 shares of Common Stock. April 28, 2020, the Company awarded 10,000,000 shares of Series A to Custodian Ventures, LLC. managed by David Lazar in return for services provided. As a result, the Company recorded a stock-based compensation expense of $600,000. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 4 – COMMITMENTS AND CONTINGENCIES The Company did not have any contractual commitments as of October 31, 2020, and January 30, 2020. |
Notes Payable-Related Pary
Notes Payable-Related Pary | 9 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE-RELATED PARY | NOTE 5 –NOTES PAYABLE-RELATED PARY Mr. Lazar, the principal member of the Company’s Court-appointed custodian is considered a related party. During the year ended October 31, 2020, has extended $ 20,631 in interest-free demand loans to the Company. These management services provided by Mr. Lazar, the Company’s only employee, are to manage the day to day operations of the Company; and take the necessary actions to enable the Company to become a viable operating entity. As of October 31, 2020, and January 31, 2020, the amounts due to notes payable, related parties amounted to $23,306 and $2,675, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 6 – SUBSEQUENT EVENTS In accordance with FASB ASC 855-10, Subsequent Events |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“ FASB Codification GAAP |
Management’s Representation of Interim Financial Statements | Management’s Representation of Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. |
Going Concern | Going Concern The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. The Company has incurred operating losses since inception. As of October 31, 2020, the Company had a working capital deficit of $23,926 and negative retained earnings of 14,185,747. Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. The Company is currently being funded by David Lazar who is extending interest-free demand loans to the Company. Historically, the Company has raised capital through private placements, as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans. The Company will be required to continue to so until its operations become profitable. Also, the Company has, in the past, paid for consulting services with its common stock to maximize working capital, and intends to continue this practice where feasible. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities, the liability for the excess share issuance, and disclosure of contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. |
Revenue Recognition | Revenue Recognition On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Results for reporting periods beginning after April 1, 2018, are presented under ASC 606. As of and for the year ended October 31, 2020, the financial statements were not impacted due to the application of Topic 606 because the Company had no revenues. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On October 31, 2020, and January 31, 2020, the Company’s cash equivalents totaled $-0- and $-0- respectively. |
Income taxes | Income taxes The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes” “Accounting for Uncertainty in Income Taxes” The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit. |
Stock-based Compensation | Stock-based Compensation The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. |
Net Loss per Share | Net Loss per Share Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements Codification Improvements to Topic 842, Leases (Topic 842) Targeted Improvements, We intend to adopt ASC 842 on July 1, 2020. The adoption of this guidance is not expected to have any impact on our financial statements. |
Stockholders’ Equity | Stockholders’ Equity The Company has authorized 300,000,000 shares of Common Stock with a par value of $0.001. As of October 31, 2020, and January 31, 2020, respectively, there were 300,000,000 shares of Common Stock issued and outstanding, respectively. On April 27, 2020, the Company filed a Certificate of Designation with the State of Nevada to authorize 10,000,000 shares of Series A Preferred Stock (“Series A”). Each share of Series A is convertible into 20 shares of Common Stock. April 28, 2020, the Company awarded 10,000,000 shares of Series A to Custodian Ventures, LLC. managed by David Lazar in return for services provided. As a result, the Company recorded a stock-based compensation expense of $600,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Apr. 28, 2020 | Oct. 31, 2020 | Apr. 27, 2020 | Jan. 31, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Working capital deficit (in Dollars) | $ 23,926 | |||
Retained earnings (in Dollars) | $ (14,185,474) | $ (13,564,223) | ||
Common stock shares authorized | 300,000,000 | 300,000,000 | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock shares issued | 300,000,000 | 300,000,000 | ||
Common stock outstanding | 300,000,000 | 300,000,000 | ||
Stock based compensation expense (in Dollars) | $ 600,000 | |||
Series A Preferred Stock [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Preferred stock shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Awarded shares | 10,000,000 |
Notes Payable-Related Pary (Det
Notes Payable-Related Pary (Details) - USD ($) | Oct. 31, 2020 | Jan. 31, 2020 |
Debt Disclosure [Abstract] | ||
Interest free demand loans | $ 20,631 | |
Due to notes payable related parties amount | $ 23,306 | $ 2,675 |