NOTES TO THE FINANCIAL STATEMENTS
(Unaudited)
Note 1: Organization and Basis of Presentation
Adamas Ventures, Inc. (the “Company”) is a for
profit corporation established under the corporation laws in the State of Nevada, United States of America on January 31, 2014.
The Company is in the development phase and intends to sell
baby products. As such, the Company is subject to all risks inherent to the establishment of a start-up business enterprise.
Certain information and footnote disclosures normally included
in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have
been condensed or omitted pursuant to such rules and regulations. In our opinion, these financial statements include all adjustments
(consisting only of normal recurring adjustments) necessary for the fair statement of the results for the period. These financial
statements should be read in conjunction with the financial statements for the six months ended July 31, 2016. Unless the context
otherwise requires, all references to “Adamas Ventures,” “we,” “us,” “our” or the
“company” are to Adamas Ventures, Inc. and any subsidiaries.
Note 2: Recent Accounting Pronouncements
In December 2011, the FASB issued ASU 2011-11, Disclosures
about Offsetting Assets and Liabilities, (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose both gross information
and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments
and transactions subject to an agreement similar to a master netting arrangement. ASU 2011- 11 is effective for annual reporting
periods beginning on or after January 1, 2013, and interim periods within those annual periods. Retrospective disclosure is required
for all comparative periods presented. The adoption of ASU 2011-11 did not have a material impact on the Company’s financial
statements. In October 2012, the FASB issued ASU No. 2012-04, Technical Corrections and Improvements, (“ASU 2012-04”).
This update includes source literature amendments, guidance clarification, reference corrections and relocated guidance affecting
a variety of topics in the Codification. The update also includes conforming amendments to the Codification to reflect ASC 820’s
fair value measurement and disclosure requirements. The amendments in this update that will not have transition guidance are effective
upon issuance. The amendments in this update that are subject to the transition guidance will be effective for fiscal periods beginning
after December 15, 2012. The adoption of ASU 2012-04 did not have a material impact on the Company’s financial statements.
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet
(Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”). This update
clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures
about Offsetting Assets and Liabilities (“ASU 2011-11”). Specifically, ASU 2011-11 applies only to derivatives, repurchase
agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset
in accordance with specific criteria contained in the FASB Accounting Standards Codification or subject to a master netting arrangement
or similar agreement. The Company is required to apply the amendments in ASU 2013-01 beginning January 1, 2013. The adoption of
ASU 2013-01 by the Company did not have a material impact on the consolidated financial statements.
In February 2013, the Financial Accounting Standards Board
issued Accounting Standards Update, or ASU, 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive Income. This update requires companies to provide information regarding the amounts reclassified
out of accumulated other comprehensive income by component. In addition, companies are required to present, either on the face
of the statement where net income is presented or in the accompanying notes, significant amounts reclassified out of accumulated
other comprehensive income by the respective line items of net income. ASU 2013-02 is effective for annual reporting periods beginning
on or after December 15, 2012, and interim periods within those annual periods. ASU 2013-02 was adopted January 1, 2013 and did
not have a significant impact on our financial statements.
Note 3: Concentrations
The company has not had any sales.
Note 4: Legal Matters
The Company has no known legal issues pending.
Note 5: Debt
The Company has no debt.
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NOTES TO THE FINANCIAL STATEMENTS (continued)
Note 6: Capital Stock
On January 31, 2014 the Company authorized 75,000,000 shares
of commons stock with a par value of $0.0001 per share.
On January 31, 2014 the Company issued 20,000,000 shares of
common stock for a purchase price of $0.0001 per share to its founding shareholder. The Company received aggregate gross proceeds
of $10,000.00.
During the period of May and June, 2015, the Company issued
10,000,000 shares of common stocks for a purchase price of $0.01 per share for gross proceeds of $100,000.
As of July 31, 2016 there were no outstanding stock options
or warrants.
Note 7: Income Taxes
The Company uses the asset and liability method of accounting
for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized
for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences
resulting from matters that have been recognized in an entity’s financial statements or tax returns. 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 the results of operations in the period that includes the enactment date. A valuation allowance is provided to
reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely
than not some portion or all of the deferred tax assets will not be realized.
ASC Topic 740.10.30 clarifies the accounting for uncertainty
in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods,
disclosure, and transition.
Note 8: Related Party Transactions
The Company neither owns nor leases any real or personal property.
The sole officer of the Company provides office space and services free of charge. The Company's sole officer and director is involved
in other business activities and may in the future, become involved in other business opportunities as they become available.
Note 9: Subsequent Events
The Company has evaluated events subsequent through the date
these financial statements have been issued to assess the need for potential recognition or disclosure in this report. Such events
were evaluated through the date these financial statements were available to be issued. Based upon this evaluation, it was determined
that no subsequent events occurred that require recognition or disclosure in the financial statements.
Note 10: Going Concern
The accompanying financial statements and notes have been prepared
assuming that the Company will continue as a going concern.
For the period ended July 31, 2016, the Company had an accumulated
deficit of $9,830 and working capital of $100,915, which may not be sufficient to sustain operations over the next 12 months. The
Company’s ability to continue as a going concern is dependent upon the Company’s ability to generate sufficient revenues
to operate profitably or raise additional capital through debt financing and/or through sales of common stock.
Management plans to fund operations of the Company through
the proceeds from an offering pursuant to a Registration Statement on Form S-1 or private placements of restricted securities or
the issuance of stock in lieu of cash for payment of services until such a time as profitable operations are achieved. There are
no written agreements in place for such funding or issuance of securities and there can be no assurance that such will be available
in the future. Management believes that this plan provides an opportunity for the Company to continue as a going concern.
The failure to achieve the necessary levels of profitability
or obtain the additional funding would be detrimental to the Company.
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