NOTES TO FINANCIAL STATEMENTS
FOR
THE PERIOD ENDED June 30, 2017 AND 2016
(UNAUDITED)
NOTE 1- ORGANIZATION
AND DESCRIPTION OF BUSINESS
Asia Training Institute, Inc., a Nevada corporation, (“ATI,”
“Company,” “Registrant,” “we,” “us,” or “our”) was incorporated on
May 14, 2014 under the name “WeWearables, Inc.” The Company issued 17,000,000 shares of its common stock
to its founder, Thomas Chen, as consideration for the purchase of a business plan.
On February 12, 2016 Mr. Chen sold all 17,000,000 shares
of common stock to
Chien Heng “George” Chiang. That same date,
two other stockholders sold all their shares, totaling 2,000,000, to Mr. Chiang, making him the principle stockholder of the Company.
On February 12, 2016,
Mr. Chiang became the sole director, President, Chief Financial Officer and Secretary of the Company, and the Company’s name
was subsequently changed to Asia Training Institute, Inc.
The Company’s
current business strategy is to investigate and, if such investigation warrants, acquire a target operating company or business
seeking the perceived advantages of being a publicly held corporation. The Company’s principal business objective
for the next twelve months and beyond such time will be to achieve long-term growth potential through a combination with an operating
business rather than immediate, short-term earnings. The Company will not restrict its potential candidate target companies to
any specific business, industry or geographical location and, thus, may acquire any type of business.
However,
the Company currently expects to focus on finding an operating business with significant operations in Asia
.
NOTE 2 - SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Accounting
The Company’s financial statements are prepared in
conformity with U.S. generally accepted accounting principles. The Company has elected March 31 as its fiscal year end.
The accompanying unaudited interim financial statements of
the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and
the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and
notes thereto contained in the Company’s most recent Annual Financial Statements, found in Form 10-K filed June 29, 2017.
The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year.
(b) Cash Equivalents
For purposes of the balance sheet and statement of cash flows,
the Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.
(c) Stock-Based Compensation
The Company follows ASC 718-10,
Stock Compensation
,
which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with
a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. ASC
718-10 requires measurement of 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). Incremental compensation costs arising from subsequent
modifications of awards after the grant date must be recognized. The Company has not adopted a stock option plan and
has not granted any stock options.
(d) Use of Estimates and Assumptions
Preparation of the financial statements in conformity with
accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The Company has adopted
the provisions of ASC 260.
(e) Loss per Share
The basic loss per share is calculated by dividing the Company’s
net loss available to common stockholders by the weighted average number of common shares during the year. The diluted loss per
share is calculated by dividing the Company’s net loss available to common stockholders by the diluted weighted average number
of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of
shares adjusted for any potentially dilutive debt or equity. Diluted loss per share are the same as basic earnings loss per
share due to the lack of dilutive items in the Company.
(f) Fair Value Measurements and Disclosures
ASC Topic 820 defines fair value, establishes a framework
for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure
requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation
of an asset or liability as of the measurement date. The three levels are defined as follows:
Level 1 – Inputs to the valuation methodology
are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 – Inputs to the valuation methodology
include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability,
either directly or indirectly, for substantially the full term of the financial instrument.
Level 3 – Inputs to the valuation methodology
are unobservable and significant to the fair value measurement.
The Company’s adoption of fair value measurements and
disclosures did not have a material impact on the financial statements and financial statement disclosures.
(g) Income Taxes
Income taxes are provided in accordance with ASC 740,
Income
Taxes
. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting
and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred
tax assets and liabilities.
Deferred tax assets are reduced by a valuation allowance
when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be
realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date
of enactment.
No provision was made for Federal or State income taxes.
(h) Advertising
Advertising will be expensed in the period in which it is
incurred. There have been no advertising expenses for the reporting periods presented.
(i) Recently Issued Accounting Pronouncements
The Company reviewed all recent accounting pronouncements
issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC and they did not or are not believed by
management to have a material impact on the Company’s present or future financial statements.
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NOTE
3 - GOING CONCERN
The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern. As reflected in the accompanying financial statements, the
Company had a negative working capital of $74,988 and an accumulated deficit of $262,786 at June 30, 2017. As of June
30, 2017, the Company had not generated any revenue and had no committed sources of capital or financing.
As of June 30, 2017 the Company had cash in the amount of
$329 held in its corporate bank account.
While the Company is attempting to merge with an operating
business, the Company’s cash position may not be significant enough to support the Company’s daily operations. While
the Company believes in the viability of its strategy to merge with an operating business and in its ability to raise additional
funds, there can be no assurances to that effect. The Company’s ability to continue as a going concern is dependent
upon its ability to achieve its objective or obtain adequate financing.
Mr. Chiang is currently advancing the company funds to cover
any expenses incurred by the Company and anticipates that he will continue to do so in order to keep the Company current with its
SEC filings and other required compliance.
The financial statements do not include any adjustments that
might be necessary if the Company is unable to continue as a going concern.
NOTE 4 - ACCRUED
EXPENSES
Accrued expenses totaled $4,555 and $9,555 at June 30, 2017
and March 31, 2017, respectively and consisted primarily of professional fees.
NOTE 5 - STOCKHOLDERS’
EQUITY (DEFICIT)
The Company is authorized to issue 150,000,000 shares of
common stock and 25,000,000 shares of preferred stock. The Company issued 17,000,000 shares of its common stock to its former president
and chief executive officer as founder shares. The Company issued 3,050,000 shares of its common stock for services
with a value attributed to them of $20,000.
In January 2015, the Company completed a public offering
whereby it sold 362,000 shares of common stock at $0.10 per share for total gross proceeds of $36,200.
On February 12, 2016 Mr. Chen sold all 17,000,000 of his
shares of common stock to Mr.
Chiang. That same date, two other stockholders
sold all of their shares, totaling 2,000,000, to Mr. Chiang, making him the principle stockholder of the Company.
On February 16, 2016,
the Company’s transfer agent canceled 1,000,000 shares of common stock previously outstanding at the request of the previous
stockholder. At June 30, 2017 there were 19,412,000 shares of common
stock
issued and outstanding.
NOTE
6 - RELATED PARTY TRANSACTIONS
For the three months
ended June 30, 2017, the Company’s sole director, officer and principal stockholder, Mr. Chiang, paid Company expenses totaling
$12,000 from personal funds. These expenses consisted primarily of professional fees. Mr. Chiang expects to be reimbursed by the
Company for such payments, which reimbursement will be interest free and due upon demand.
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