(The accompanying notes are an integral part of these unaudited financial statements)
(The accompanying notes are an integral part of these unaudited financial statements)
(The accompanying notes are an integral part of these unaudited financial statements)
Notes to Financial Statements
For the Three and Nine Months Ended August 31, 2017
And the Year Ended August 31, 2016
(unaudited)
NOTE 1 - ORGANIZATION AND OPERATIONS
GLOBAL SMART CAPITAL CORP (the “Company”) was incorporated, as Todex Corp. in Nevada on September 18, 2014 (“Inception”) and changed its name from Todex to Global on February 2, 2017. New officers were elected on February 6, 2017 and are in the process of developing a new business plan.
NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited interim financial statements of Global Smart Capital Corp 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 for the years ended November 30, 2016 and 2015, contained in the Company’s Form 10-K originally filed with the Securities and Exchange Commission on February 22, 2017. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for years ended November 30, 2016 and 2015 as reported in the Company’s Form 10-K have been omitted.
Reclassification
Previous year amounts in the income statement have been reclassified to conform to the current year presentation. There was no impact on the Company’s balance sheets, income statement or statements of cash flows.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Global Smart Capital Corp
Notes to Financial Statements
For the Three and Nine Months Ended August 31, 2017
And the Year Ended August 31, 2016
(unaudited)
Recently Adopted Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations.
NOTE 3 - GOING CONCERN
The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the financial statements, during the nine months ended August 31, 2017 the Company incurred a net loss attributable to common shareholders of $52,870, and as of the same date has an accumulated deficit of $127,858. If the Company is unable to generate profits and is unable to continue to obtain financing for its working capital requirements, it may have to curtail its business sharply or cease business altogether. These factors raise substantial doubt about the Company’s ability to continue as a going concern.
The financial statements do not include any adjustment relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
The Company is taking certain steps to provide the necessary capital to continue its operations. These steps include, but are not limited to: 1) minimize the need for capital at this stage; 2) raising equity financing; 3) continuous focus on reductions in costs, where possible, and 4) implement a new business model.
NOTE 4: SHAREHOLDERS’ EQUITY
On August 21, 2017, the Company increased the authorized capital stock to 500,000,000 common shares and 10,000,000 preferred shares, both with a par value of $ 0.0001 per share. As of August 31, 2017 and November 30, 2016, there were no preferred shares issued. As of those same dates the Company had 11,580,000 and 8,580,000 common shares issued and outstanding.
On July 17, 2017 the Company issued 3,000,000 common shares to one individual for consulting services. The shares were recorded at a cost of $0.01 per share for a total cost of $30,000.
NOTE 5: RELATED PARTY TRANSACTIONS
In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.
Global Smart Capital Corp
Notes to Financial Statements
For the Three and Nine Months Ended August 31, 2017
And the Year Ended August 31, 2016
(unaudited)
As of November 30, 2016, the then sole Officer and Director had unsecured, non-interest bearing cash advances to the Company in the amount of $35,043 to cover operating overhead. Between December 1, 2016 and February 28, 2017 this Officer and Director advanced an additional $8,914 of advances.
On December 30, 2016 the sole officer and director sold 6,000,000 or 69.93% of the 8,580,000 to three investors and on February 6, 2017 appointed each of the three as officers and directors.
On February 22, 2017 Dominic Chappell resigned from all positions held as an officer and director.
On July 17, 2017 the Company issued 3,000,000 common shares to a related party for consulting services. The shares were recorded at a cost of $0.01 per share for a total cost of $30,000.
NOTE 6: SUBSEQUENT EVENTS
T
he Company has evaluated subsequent events from August 31, 2017 through the date the financial statements were available to be issued and has determined that there have been no subsequent events for which disclosure is required.