The accompanying notes are an integral part
of these interim financial statements.
The accompanying notes are an integral part
of these interim financial statements.
The accompanying notes are an integral part
of these interim financial statements.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 – NATURE OF BUSINESS AND BASIS OF PRESENTATION
Computron Inc. (the "Company")
is a Nevada Corporation incorporated on August 22, 2014. The Company plans to establish itself as an online computer support business.
Basis of Presentation
The Company maintains its accounting records
on an accrual basis in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP").
These financial statements are presented
in US dollars.
Fiscal Year End
The Corporation has adopted a fiscal year
end of December 31.
Unaudited Interim Financial Statements
The interim financial statements of the
Company as of June 30, 2016, and for the period then ended, are unaudited. However, in the opinion of management, the interim financial
statements include all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the Company’s
financial position as of June 30, 2016, and the results of its operations and its cash flows for three and six month period ended
June 30, 2016. These results are not necessarily indicative of the results expected for the calendar year ending December 31, 2016.
The accompanying financial statements and notes thereto do not reflect all disclosures required under accounting principles generally
accepted in the United States. Refer to the Company’s audited financial statements as of December 31, 2015, for additional
information, including significant accounting policies.
NOTE 2 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The principal accounting policies are
set out below, these policies have been consistently applied to the period presented, unless otherwise stated:
Use of Estimates
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts or revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Going concern
The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the
liquidation of liabilities in the normal course of business. As at June 30, 2016, the Company has an accumulated deficit of $43,615
from operations and a working capital deficit of $22,065 and has not earned sufficient revenues to cover its operating costs. The
Company intends to fund future operations through equity financing arrangements, which may be insufficient to fund its capital
expenditures, working capital and other cash requirements for the year ending December 31, 2016.
The ability of the Company to emerge from
the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development
of its business plan. In response to these problems, management intends to raise additional funds through public or private placement
offerings.
These factors, among others, raise substantial
doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
Cash and cash equivalents
Cash and equivalents include investments
with initial maturities of three months or less. The Company maintains its cash balances at credit-worthy financial institutions
that are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000.
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses are
carried at amortized cost and represent liabilities for goods and services provided to the Company prior to the end of the financial
year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods
and services.
Earnings per Share
The Company computes net loss per share
in accordance with ASC 260, "Earnings Per Share" ASC 260 requires presentation of both basic and diluted earnings per
share ("EPS") on the face of the income statement. Basic EPS is calculated by dividing the profit or loss attributable
to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted EPS
is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares
outstanding for the effects of all potential dilutive common shares, which comprise options granted to employees. As June 30, 2016,
the Company had no potentially dilutive shares.
Income Taxes
Income taxes are accounted for in accordance
with ASC Topic 740, "Income Taxes." Under the asset and liability method, deferred tax assets and liabilities are recognized
for the future consequences of differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected
to apply to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for
deferred tax assets are established when it is more likely than not that some portion or all of the deferred tax assets will not
be realized.
Revenue Recognition
The Company recognizes revenue when all
of the following have occurred: persuasive evidence of an agreement with the customer exists, delivery has occurred or services
have been rendered, the selling price is fixed or determinable and collectability of the selling price is reasonably assured.
Revenue consists of computer services and technical support
provided to customers.
Fair Value of Financial Instruments
The Company measures assets and liabilities
at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents
the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction
between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset
or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value
on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.
The following are the hierarchical levels of inputs to measure
fair value:
- Level 1: Quoted prices in active markets for identical instruments;
- Level 2: Other significant observable inputs (including quoted
prices in active markets for similar instruments);
- Level 3: Significant unobservable inputs (including assumptions
in determining the fair value of certain investments).
NOTE 3 – OTHER RECEIVABLE
During 2015, the Company issued common
stock for cash to various stockholders. Proceeds of $21,050 was transferred to the Company's attorney, who held the proceeds in
escrow.
The proceeds were received in full by the company during February
2016.
NOTE 4 – LOAN FROM RELATED PARTY
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2016
(unaudited)
|
|
|
2015
|
|
|
|
$
|
|
|
$
|
|
Loan from related party
|
|
|
25,365
|
|
|
|
16,200
|
|
The above loan is unsecured, bears no interest and has no set
terms of repayment. This loan is repayable on demand.
NOTE 5 – STOCKHOLDER’S DEFICIT
Common Stock
On August 22, 2014, the Company issued
5,000,000 shares of common stock to the director of the company at price of $0.0001 per share, for $500 cash.
During May 2015, the Company issued 66,660
shares of common stock to various stockholders at price of $0.15 per share, for $10,000 cash.
During August 2015, the Company issued
59,994 shares of common stock to various stockholders at price of $0.15 per share, for $9,000 cash.
During September 2015, the Company issued
13,665 shares of common stock to various stockholders at price of $0.15 per share, for $2,050 cash.
NOTE 6 – INCOME TAXES
The provision (benefit) for income taxes for the six month periods
ended June 30, 2016 and 2015 was as follows (assuming a 15% effective tax rate):
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
Unaudited
|
|
|
|
$
|
|
|
$
|
|
Current Tax Provision
|
|
|
|
|
|
|
|
|
Federal-
|
|
|
|
|
|
|
|
|
Taxable income
|
|
|
|
|
|
|
|
|
Total current tax provision
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Deferred Tax Provision
|
|
|
|
|
|
|
|
|
Federal-
|
|
|
|
|
|
|
|
|
Loss carry forwards
|
|
|
3,781
|
|
|
|
443
|
|
Change in valuation allowance
|
|
|
(3,781
|
)
|
|
|
(443
|
)
|
Total deferred tax provision
|
|
|
-
|
|
|
|
-
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
Unaudited
|
|
|
Audited
|
|
|
|
|
$
|
|
|
|
$
|
|
The Company had deferred income tax assets as of June 30, 2016 and December 31, 2015 as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss carry forwards
|
|
|
6,542
|
|
|
|
2,762
|
|
Less - Valuation allowance
|
|
|
(6,542
|
)
|
|
|
(2,762
|
)
|
Total net deferred tax assets
|
|
|
-
|
|
|
|
-
|
|
The Company provided a valuation allowance
equal to the deferred income tax assets for period ended June 30, 2016 because it is not presently known whether future taxable
income will be sufficient to utilize the loss carryforwards.
As of June 30, 2016, the Company had approximately $43,615 in
tax loss carryforwards that can be utilized future periods to reduce taxable income, and expire by the year 2036.
The Company did not identify any material
uncertain tax positions. The Company did not recognize any interest or penalties for unrecognized tax benefits.
The federal income tax returns of the Company
are subject to examination by the IRS, generally for three years after they are filed.
NOTE 7 – RELATED PARTY TRANSACTIONS
Details of transactions between the Corporation
and related parties are disclosed below.
The following entities have been identified
as related parties:
David Breier
|
Director and greater than 10% stockholder
|
The following transactions were carried
out with related parties:
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
Unaudited
|
|
|
Audited
|
|
|
|
$
|
|
|
$
|
|
Balance sheet:
|
|
|
|
|
|
|
|
|
Loan from related party
|
|
|
25,365
|
|
|
|
16,200
|
|
From time to time, the president and stockholder of the Company
provides advances to the Company for its working capital purposes. These advances bear no interest and are due on demand.
NOTE 8 – SUBSEQUENT EVENTS
In accordance with ASC 855-10, Company
management reviewed all material events through the date of this report and determined that there are no additional material subsequent
events to report.