The accompanying
notes are an integral part of these financial statements.
The accompanying
notes are an integral part of these financial statements.
The accompanying
notes are an integral part of these financial statements.
Notes to
Financial Statements
Note 1 – Organization
Asia Training Institute, Inc. (the
“Company”) was incorporated under the laws of the State of Nevada 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 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
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.
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. As of March 31, 2017 and 2016, there is no cash equivalent.
(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.
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.
-F7-
Table of Contents
(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
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.
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
|
In June 2014, the FASB issued ASU
2014-10,
Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements.
ASU
2014-10 e
liminates the distinction of a development
stage entity and certain related disclosure requirements, including the elimination of inception-to-date information on the statements
of operations, cash flows and stockholders’ equity. The amendments in ASU 2014-10 will be effective prospectively
for annual reporting periods beginning after December 15, 2014, and interim periods within those annual periods, however early
adoption is permitted. The Company adopted ASU 2014-10 during the period ended March 31, 2015, thereby no longer presenting
or disclosing any information required by Topic 915.
In
January 2016, the FASB issued ASU 2016-01,
Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement
of Financial Assets and Financial Liabilities
, which updates certain aspects of recognition, measurement, presentation and
disclosure of financial instruments. ASU 2016-01 will be effective for the Company for fiscal years beginning after December 15,
2017. The Company
is
currently evaluating the impact
of
the
adoption
of
this
standard on its
consolidated financial statements.
In
November 2015, the FASB issued ASU 2015-17,
Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes
. This
ASU simplifies the presentation of deferred income taxes by eliminating the requirement for entities to separate deferred tax
liabilities and assets into current and noncurrent amounts in classified balance sheets. Instead, it requires deferred tax assets
and liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 is effective for financial statements issued for
annual periods beginning after December 15, 2016. Company
is
currently evaluating
the impact
of the
adoption
of
this
standard
on its consolidated financial statements.
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.
-F8-
Table of Contents
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 ($67,700) and an accumulated deficit of ($255,498) at March 31, 2017. As
of March 31, 2017, the Company had not generated any revenue and had no committed sources of capital or financing.
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.
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 $9,555
and $11,434 at March 31, 2017 and March 31, 2016, respectively and consisted primarily of professional fees.
Note 5 – Due to Related
Party
For the year ended
March 31, 2017, the Company’s sole director, officer and principal stockholder, Mr. Chiang, paid Company expenses totaling
$58,762 from personal funds. These expenses consisted primarily of professional fees and filing fees. Mr. Chiang expects to be
reimbursed by the Company for such payments, which reimbursement will be interest free and due upon demand.
Note 6 – Share Capital
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 362,600 shares of common stock at $0.10 per share for total gross proceeds of $36,200.
At March 31, 2015, there were 20,412,000
shares of common stock issued and outstanding.
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 March 31, 2017 and March 31, 2016 there were 19,412,000 shares of common stock
issued and outstanding.
On
February 12, 2016, Mr. Chiang, the CEO, made payments to two professional service providers—NYX Capital Advisors for $99,099
and Mass Depth Corp. for $32,500—on behalf of the Company. These transactions are considered as Additional Paid-In
Capital.
-F9-
Table of Contents
Note 7 – Commitments and
Contingencies
The Company follows ASC 450-20,
Los
s
Contingencies,
to
report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation,
fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the
assessment can be reasonably estimated. There were no commitments or contingencies as of March 31, 2017.
Note 8 – Income Taxes
The Company has not recognized
an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income
in future periods. The tax benefit for the period presented is offset by a valuation allowance established against
deferred tax assets arising from the net operating losses, the realization of which could not be considered more likely than not. In
future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such
amounts to be more likely than not. As of March 31, 2017, the Company has incurred a net loss of approximately $255,498
which resulted in a net operating loss for income tax purposes. NOLs begin expiring in 2033. The loss results
in a deferred tax asset of approximately $89,424 at the effective statutory rate of 35%. The deferred tax asset has
been off-set by an equal valuation allowance.
|
March 31,
|
|
|
2017
|
|
2016
|
|
Deferred tax asset, generated from net operating loss at statutory rates
|
$
|
89,424
|
|
$
|
69,732
|
|
Valuation allowance
|
|
(89,424
|
)
|
|
(69,732
|
)
|
|
$
|
—
|
|
$
|
—
|
|
The reconciliation of the effective
income tax rate to the federal statutory rate is as follows:
Federal income tax rate
|
35.0
|
%
|
|
|
35.0
|
%
|
Valuation allowance
|
(35.0
|
%)
|
|
|
(35.0
|
%)
|
Effective income tax rate
|
0.0
|
%
|
|
|
0.0
|
%
|
Note: The Company
has not yet filed its March 31, 2017 and 2016 tax returns.
-F10-
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