NOTE
1 – NATURE OF OPERATIONS
PURTHANOL
RESOURCES
LIMITED (formerly
GLOBAL BIOTECH
CORP.) (the
``Company``) was
incorporated
in the State
of Delaware
on November
2, 1998, to be an
Application
Service provider
in the E-Health
sector. On March 5, 2003, this business
was sold,
market, unsuccessfully.
On February 25, 2005, it
discontinued
its vehicle
tracking business.
On August 15, 2007,
the Company entered
the oxygenated
beverage market. The Company changed its mission
and its objective was to produce Bio
fuel alternatives,
via the acquisition
of the Purthanol
process in September.
2013 and the acquisition
of Biocardel
Quebec in December
2013. The Company
changed its name
from Global Biotech
Corp. to Purthanol
Resources Limited
on September
30, 2013. Currently the
Company
has not been
operating,
and has been inactive
since 2015. There are no operations, sales, and activities as far as marketing and production,
and the Company is operating out Laval, Quebec, Canada.
NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a.
Basis of Presentation
The
Company's
policy is to use the accrual method of
accounting to prepare and
present financial statements,
which conforms
to US generally
accepted accounting
principles
("GAAP').
The company
has elected
a November
30 year- end.
b.
Cash and Cash Equivalents
The
Company
considers
all highly
liquid
investments
with original
maturities
of three months
or less and
bank indebtedness
to be cash and cash equivalents.
Highly liquid
investments
are valued at quoted
market
c.
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
certain 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 revenue and
expenses
during the periods
presented. Actual results
could
differ
from those estimates.
Significant
estimates made
by management
are, among others, reliability
of long-lived
assets and useful
life of fixed asset. Management reviews
its estimates on a quarterly
basis and, where
necessary,
makes adjustments
prospectively.
d.
Property, Plant and Equipment
Property,
plant and equipment are recorded at cost less accumulated depreciation and any impairment. The cost of an asset comprises its purchase
price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Repairs
and maintenance costs are normally expensed as incurred.
When
assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses
are included in the statement of income (loss) in the reporting period of disposition.
Depreciation
is calculated on a straight-line basis over the estimated useful life of the assets.
e.
Going Concern
The Company's
financial statements
have been presented
on the basis that it
is a going
concern, which contemplates
the realization
of assets and the satisfaction
of liabilities
in the normal
course of business.
The Company's
management
intends to raise
additional
operating funds
through operations,
and debt
or equity offerings.
Management
has yet to decide
what type of offering
the Company will
use or how
much capital
it will raise. There is
no guarantee
that the Company will
be able to raise any capital
through any type
of offerings.
f.
Fair Value of Financial Instruments
ASC
820, Fair Value
Measurements
and Disclosures
, defines fair value
as the price that would
be received from selling
an asset or paid
to transfer a liability
in an orderly transaction
between
market participants
at the measurement
date. In determining fair value
for assets and liabilities
required or permitted
to be recorded at fair
value, the Company considers
the principal
or most advantageous
market
in which it
would
transact, and it
considers assumptions
that market participants
would use when
pricing the
asset or liability.
Fair
Value Hierarchy
ASC
820 establishes
a fair value hierarchy
that requires an entity
to maximize
the use of observable
inputs and minimize
the use of unobservable inputs
when measuring
fair value. A financial
instrument’s
categorization within
the fair
value hierarchy
is based
upon the
lowest
level of input
that is significant
to the fair value
measurement.
ASC 820 establishes
three levels
of inputs
that may be
used to measure
fair value:
Level
1 applies to assets
and liabilities
for which there are quoted
prices in
active markets
for identical
assets or liabilities.
Valuations
are based on
quoted prices
that are readily
and regularly available
in an active market and do not entail
a significant
degree of judgment.
Level
2 applies to assets
and liabilities
for which there
are other than Level
1 observable inputs
such as quoted prices for similar
assets or liabilities
in active markets,
quoted prices for identical
assets or
liabilities
in markets with
insufficient
volume or infrequent
transactions
(less active markets),
or model-derived
valuations
in which
significant
inputs
are observable
or can be derived principally
from,
or corroborated
by, observable market
data.
Level
2 instruments
require more management
judgment and
subjectivity
as compared to Level
1 instruments.
For instance:
• Determining
which instruments
are most similar
to the instrument
being priced
requires management
to identify
a sample of similar
securities based
on the coupon rates,
maturity,
issuer,
credit rating
and instrument
type, and subjectively
select an individual
security or multiple
securities that are
deemed
most similar to
the security being
priced; and
• Determining
whether a market
is considered
active requires
management
judgment.
Level
3 applies to assets
and liabilities
for which
there are unobservable
inputs to the
valuation
methodology
that are significant
to the measurement
of the fair value
of the Company
believes
the fair value of its
financial
instruments
reported in
the consolidated
balance
sheets consisting
of accounts payable
and accrued expenses
approximate
their carrying values
due to the relatively short maturity
of these instruments.
g.
Earnings (Loss) Per Share
The
Company computes
net income
(loss) per share
in accordance
with
ASC 260,
Earnings per
Share. ASC 260 specifies
the computation,
presentation and disclosure
requirements
for earnings (loss)
per share for
entities with publicly
held common
stock. The Company has
adopted the provisions
of ASC 260
effective November
2, 1998 (inception).
Basic
net earnings
(loss) per share
amounts are computed by dividing
the net earnings (loss) by the weighted
average number of
common shares outstanding.
Diluted earnings
(loss) per share are the same
as basic earnings (loss)
per share due to
the lack of dilutive
items in the Company.
h.
Income Taxes
We
account for income taxes in accordance with ASC 740 - Income Taxes, which requires us to provide a net deferred tax asset/liability
equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available
operating loss or tax credit carry forwards. Tax law and rate changes are reflected in income in the period such changes are enacted.
We record a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. We include
interest and penalties related to income taxes, including unrecognized tax benefits, within the provision for income taxes.
Our
income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other
tax authorities. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex
tax regulations. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the
tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position
will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the
tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While we believe we have appropriate
support for the positions taken on our tax returns, we regularly assess the potential outcomes of examinations by tax authorities in
determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments
and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision
become known.
i.
Long-lived Assets
We
follow ASC 360-10-15-3, Impairment or Disposal of Long-lived Assets, which established a “primary asset” approach to determine
the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to
be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if
it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets
to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.
Recent
Accounting Standards
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 accounting standards that have been issued that might have a material impact on its financial position
or results of operations.
NOTE 3 - DUE TO RELATED PARTY
The
amounts due to the
related party
are $901,748 and
$837,984 respectively for
2022 and 2021
which represent
annual unpaid
management
accumulated fees
of $50,000 owed to the
CEO, in addition to $13,764 paid for professional fees by CEO for the year ended November 30, 2022. The amount due to related party
bears no interest, is unsecured and is repayable on demand.
NOTE
4 - INCOME TAXES
Income
Taxes
Our
Company has not filed any federal income tax returns and we are currently not subject to state income tax filing requirements. As of
November 30, 2022, we have net operating loss carry forwards, on a book basis, of $4,208, 578 which may be available to reduce various
future years' federal taxable income. Future tax benefits which may result from these losses have not been recognized in these financial
statements, as their realization is determined not likely to occur and accordingly, we have recorded a valuation allowance for the deferred
tax asset relating to the net operating loss carry forwards.
The
following table presents the current income tax provision for federal and state income taxes for the years ended November 30, 2022 and
2021:
Schedule of Components of Income Tax Expense (Benefit)
| | |
| | | |
| | |
| Current tax provisions: | |
| 2022 | | |
| 2021 | |
| Federal | |
$ | — | | |
$ | — | |
| State | |
$ | — | | |
$ | — | |
| Total provision for income taxes | |
$ | — | | |
$ | — | |
Schedule of Effective Income Tax Rate Reconciliation
Reconciliations
of the U.S. federal statutory rate to the actual tax rate for the years ended November 30, 2021 and 2020:
Schedule of Effective Income Tax Rate Reconciliation
| | |
|
| |
|
|
| | |
2022 | |
2021 |
| US federal statutory income tax rate | |
| 21.00 | % | |
| 21.00 | % |
| Increase in valuation reserve | |
| -21.00 | % | |
| -21.00 | % |
| Total provision for income taxes | |
| 0.00 | % | |
| 0.00 | % |
The
components of our deferred tax assets as of November 30, 2021 and 2020 consisted of the following:
Schedule of Deferred Tax Assets and Liabilities
| | |
2022 | |
2021 |
| Net operating losses carry forwards | |
$ | 4,209,778 | | |
$ | 4,143,986 | |
| Less: valuation allowance | |
$ | (4,209,778 | ) | |
$ | (4,143,986 | ) |
| Net deferred tax assets | |
$ | — | | |
$ | — | |
During
the year ended November 30, 2022, the valuation reserve increased $65,792 compared to an increase of $57,028 during the year ended November
30, 2021. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that our Company
will not realize some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the
generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled
reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a
result, management determined, as of November 30, 2022, that it was more likely than not that the deferred tax assets would not be realized.
As
noted above, we have not filed any federal tax returns, but we plan on bringing our tax filings current as soon as it is practical.
NOTE
5 – STATEDCAPITAL
Authorized:
260,000,000
authorized voting common
shares and 80,000,000 preferred
shares authorized: 244,038,890
Common voting
shares have been issued as of November
30, 2022, and November 30, 2021, respectively.
There
are 80,000,000 authorized preferred shares with a par value of $0.0001 that are non voting in terms of rights
No
preferred shares have been issued to date and there are 0 preferred shares outstanding as of November 30, 2022 and November 30, 2021,
respectively.
NOTE
6 – SUBSEQUENT EVENT
No
events have occurred subsequent to the balance sheet date and through the date of this filing that would require adjustment to or disclosure
in the financial statements.
The
same types of adjustments were made for the year ended November 30, 2022, reflecting the same above rules and principles in accordance
with US GAAP.
NOTE
7 - RESTATEMENT
Adjustments
were made for the year ended November 30, 2021 to reflect the rules and principles in accordance with US GAAP.
The
balance sheet for the year ended November 30, 2021 was restated. Property Plant and Equipment was debited
In
the amount of $129,167 to reverse total accumulated depreciation. Property Plant and Equipment was credited by $250,000. Total Assets
as a result of these adjustments were credited by $120,833.
Accounts
payable and accrued liabilities were debited by $1200 because of November 30 2020 foreign exchange adjustments being carried forward
as mentioned earlier.
Due
to related party was credited by $5000 to take into consideration fees paid to Ron McIntyre which were paid personally by CEO Leonard
Stella.
Total
liabilities were credited by $3,800 as a result of these adjustments to the liabilities in the Balance Sheet of November 30, 2021.
Shares
to be issued in amount of $250,000 US were debited since the payment in the form of Shares to be issued was never satisfied for the purchase
of equipment as can be seen in the section Shareholders Equity of the Balance Sheet as of November 30, 2021.
Additional
paid in capital was debited for a total of $82,883 as a result of adding $29,154 in imputed interest for the year ended November 30,2021
to $53,729 as of November 30, 2020 bringing the value of Additional Paid in Capital to $3,242,350.
Accumulated
Deficit was reduced and credited by $208,250 taking into account adjustment of credit of $74,154 for the year ended November 30, 2021.
Accumulated adjustment of $134,096 in 2020 plus $74,154 equals $208,250.
Total
Liabilities and Shareholders’ Equity was debited by $120,833 for the restated Balance Sheet as of November 30, 2021.
The
Statement of Operations for the year ended November 30, 2021 was restated to adjust for the following corrections.
Professional
fees of $5000 were debited for the Legal fees paid to Ron McIntyre in the amount of $5,000 by CEO.
Depreciation
expense of $50,000 was credited.
Interest
expense of $29,154 for year ended November 30, 2021 was credited from Statement of Operations and
Total
Net Loss as a result of these adjustments was reduced by $79,154.
The
tables below summarize the detailed adjustments for the year ended November 30, 2021.
The
following table summarizes changes made to November 30, 2021 balance sheet
Schedule of Segment Reporting Information, by Segment
| | |
| |
|
|
|
|
|
|
|
|
| | |
| 30-Nov-21 |
| Balance Sheet: | |
| As Reported | | |
| Adjustment | | |
| As Restated | |
| Property, plant, equipment | |
$ | 120,833 | | |
$ | 129,167 | | |
$ | 250,000 | |
| | |
| | | |
$ | -250,000 | | |
$ | -250,000 | |
| Total assets | |
$ | 120,833 | | |
$ | -120,833 | | |
$ | 0 | |
| | |
| | | |
| | | |
| | |
| Accounts payable and accrued liabilities | |
$ | 40,449 | | |
$ | -1,200 | | |
$ | 39,249 | |
| Due to related party | |
| 832,984 | | |
| 5,000 | | |
| 837,984 | |
| Total liabilities | |
$ | 873,433 | | |
$ | 3,800 | | |
$ | 877,233 | |
| | |
| | | |
| | | |
| | |
| Shares to be issued | |
$ | 250,000 | | |
$ | -250,000 | | |
$ | 0 | |
| Common shares | |
| 24,403 | | |
| — | | |
| 24,403 | |
| Additional paid-in capital | |
$ | 3,325,233 | | |
$ | -82,883 | | |
$ | 3,242,350 | |
| Accumulated deficit | |
$ | -4,352,236 | | |
$ | 208,250 | | |
$ | -4,143,986 | |
| Total Stockholders’ Equity | |
$ | -752,600 | | |
$ | -124,583 | | |
$ | -877,233 | |
| Total liabilities and stockholders’ equity | |
$ | 120,833 | | |
$ | -120,833 | | |
$ | 0 | |
The
following table summarizes changes made to the year ended November 30, 2021 Statement of Operations.
Quarterly Financial Information
| | |
|
|
|
|
|
|
|
|
|
|
| | |
For the year ended November 30, 2021 |
| | |
As Reported | |
Adjustment | |
As Restated |
OPERATING EXPENSES Professional fees | |
$ | — | | |
$ | 5,000 | | |
$ | 5,000 | |
| Depreciation | |
| 50,000 | | |
| 50,000 | | |
| 0 | |
| Administrative Fees | |
| 50,000 | | |
| | | |
| 50,000 | |
| Brokerage fees | |
| 2,028 | | |
| | | |
| 2,028 | |
| Regulatory Expense | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | |
| Total Operating Expenses | |
$ | 102,028 | | |
$ | -45.000 | | |
$ | 57,028 | |
| OTHER INCOME (EXPENSE) | |
| | | |
| | | |
| | |
| Interest expense | |
$ | 29,154 | | |
$ | 29,154 | | |
| 0 | |
| Total Other Income (Expense) | |
| | | |
| | | |
| | |
| NET LOSS | |
$ | 131,182 | | |
$ | -74,154 | | |
$ | 57,028 | |
Quarterly
Financial Information Equity
| | |
| |
| |
| |
| |
| |
|
| | |
Common Stock | |
Shares | |
Additional Paid in | |
Accumulated | |
|
| | |
Shares | |
Amount | |
To be Issued | |
Capital | |
Deficit | |
Total |
| | |
| |
| |
| |
| |
| |
|
| Balance as of November 30, 2019 | |
| 244,038,890 | | |
$ | 24,403 | | |
$ | 250,000 | | |
$ | 3,268,328 | | |
$ | (4,059,275 | ) | |
$ | (488,793 | ) |
| Imputed interest | |
| | | |
| | | |
| | | |
$ | 27,751 | | |
| | | |
| | |
| Net loss 2020 | |
| | | |
| - | | |
| - | | |
| | | |
| (161,779 | ) | |
| (161,779 | ) |
| Balance as of November 30, 2020 | |
| 244,038,890 | | |
$ | 24,403 | | |
$ | 250,000 | | |
$ | 3,296,079 | | |
$ | (4,221,054 | ) | |
$ | (650,572 | ) |
| Imputed Interest | |
| | | |
| | | |
| | | |
$ | 29,154 | | |
| | | |
| | |
| Net loss 2021 | |
| | | |
| | | |
| | | |
| | | |
| (131,182 | ) | |
| (131,182 | ) |
| Balance as of November 30, 2021 | |
| 244,038,890 | | |
$ | 24,403 | | |
$ | 250,0000 | | |
$ | 3,325,233 | | |
$ | (4,352,236 | ) | |
$ | (752,600 | ) |
Statement
of Shareholders Equity ( Deficit) for the year ended November 30,2020 and November 30,2021 was corrected and restated.
To
take into account the following adjustments:
Shares
to be issued in amount of $250,000 was reversed to become zero, because shares were never issued,
Additional
Paid in Capital was debited by $82,833 to correct and cancel imputed interest on amount due to related party.
Additional
paid in Capital went from $3,325,233 to $3,242,350 as we can see on restated Statement of Equity (Deficit).
Accumulated
Deficit went from $ 4,352, 236 to $ 4,143,986 to correct for net loss in 2020 and net loss in 2021, respectively.
Net
loss in 2020 went down from $161,779 to $82,828. And Net loss in 2021 went from $131,182 to $57,028, due to reversal of depreciation,
reversal of interest expense, adjustment for professional fees, and correction of regulatory expense because of foreign exchange.
Total
Shareholders’ Deficit went from $650,572 in 2020 to $ 820,205 due to all of the above cumulative changes and corrections.
Total
Shareholders’ Deficit went from $752,600 in 2021 to $ 877,233 due to all of the above cumulative changes and corrections.
Please
see below the Restated Statement of Shareholders Equity ( Deficit) for years ended November 30,2021 and November 30, 2020.
PURTHANOL
RESOURCES LIMITED.
Statement
of Shareholder’s Equity (Deficit)
for
the Years Ended November 30, 2021, and 2020
(Restated)
Quarterly
Financial Information Equity Restated
| | |
Common Stock | |
Shares | |
Additional Paid in Capital | |
Accumulated Deficit | |
|
| | |
Shares | |
Amount | |
To be Issued | |
| |
| |
Total |
| | |
| |
| |
| |
| |
| |
|
| | |
| |
| |
| |
| |
| |
|
| | |
| |
| |
| |
| |
| |
|
| Balance as of November 30, 2019 | |
| 244,038,890 | | |
$ | 24,403 | | |
$ | 0 | | |
$ | 3,242,350 | | |
$ | (4,004,130 | ) | |
$ | (737,377 | )) |
| Shares to be issued | |
| | | |
| | | |
$ | 0 | | |
| | | |
| | | |
| 0 | |
| Net loss 2020 | |
| | | |
| | | |
| ___________ | | |
| | | |
$ | (82,828 | ) | |
| (82,828 | ) |
| Balance as of November 30, 2020 | |
| 244,038,890 | | |
$ | 24,403 | | |
$ | 0 | | |
$ | 3,242,350 | | |
$ | (4,086,958 | ) | |
$ | (820,205 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net loss 2021 | |
| | | |
| | | |
| | | |
| | | |
| (57,028 | ) | |
| (57,028 | ) |
| Balance as of November 30, 2021 | |
| 244,038,890 | | |
$ | 24,403 | | |
$ | 0 | | |
$ | 3,242,350 | | |
$ | (4,143,986 | ) | |
$ | (877,233 | ) |
The
impact of changes and corrections of errors does not affect the end result of cash flows. Net increase in cash resources remains the
same. Cash at beginning and end of year remains zero for the year ended November 30, 2020.
