NOTES TO FINANCIAL STATEMENTS
Note 1 – Organization, Plan of Business
Snoogoo Corp. (originally Sawadee Ventures, Inc. and then Casey Container Corp.) was incorporated under the laws of the State of Nevada on September 26, 2006 (the “Company” or “Snoogoo Corp.”) and was originally formed to engage in the acquisition, exploration and development of natural resource properties. In 2015 the Company changed its business direction and entered into an Asset Purchase Agreement for the acquisition of a new social information network technology that it planned to use in order to launch web and mobile applications with broad global appeal. In 2016 the Company abandoned the concept due to difficulties with the seller in completing the asset purchase and is currently seeking to acquire a company in either the green energy industry or one with a focus on a strong sustainability program.
The accompanying financial statements have been prepared assuming the continuation of the Company as a going concern. The Company has not yet established an ongoing source of revenues sufficient to cover its operating expenses and the cost of an acquisition and is dependent on debt and equity financing to fund its operations. Management of the Company is making efforts to raise additional funding and believes that it will be successful in its capital formation and planned operating activities. However, there can be no assurance that the Company will be able to raise additional equity capital or be successful in the development and commercialization of the products it develops or initiates collaboration agreements thereon. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.
Note 2 – Summary of Significant Accounting Policies
Basis of Presentation
The Company’s financial statements have been prepared on the basis of accounting principles generally accepted in the United States of America (“GAAP”).
Cash and Cash Equivalents
The Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments with a maturity of three months or less at the time of purchase to be cash and cash equivalents.
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 revenue and expenses during the reporting period. Actual results could differ from those estimates.
Loss per Common Share
Net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive. From December 31, 2015 through December 31, 2016 the Company had no potentially dilutive securities. The basic and diluted net loss per share in December 31, 2016 and 2015 was $0.00 and $(0.01), respectively. The net loss for December 31, 2016 and 2015 was $(277,709) and $(1,575,358), respectively. For the years ended December 31, 2016 and 2015, the weighted average number of common shares outstanding, basic and diluted were 174,373,034 and 154,347,356, respectively.
Income Taxes
The Company accounts for its income taxes pursuant to FASB ASC Topic 740, Income Taxes by recognizing deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax credit carry forwards. 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 operations in the period that includes the enactment date.
15
SNOOGOO CORP.
NOTES TO FINANCIAL STATEMENTS
Note 2 – Summary of Significant Accounting Policies (cont’d)
As of December 31, 2016 and 2015 the Company has net operating loss carryovers of approximately $4.9 million and approximately $4.7 million, respectively, to be used to reduce future year's taxable income. The Company has recorded a valuation allowance for the full potential tax benefit of the operating loss carryovers due to the uncertainty regarding realization.
|
| December 31, 2016
|
|
| December 31, 2015
|
|
|
|
|
|
|
Net operating loss carryovers
| $
| 4.9MM
|
| $
| 4.7MM
|
|
|
|
|
|
|
Effective tax deferred asset (30% tax rate)
| $
| 1,496,093
|
| $
| 1,412,780
|
Impairment of tax deferred asset
| $
| (1,496,093)
|
| $
| (1,412,780)
|
|
|
|
|
|
|
Net tax deferred asset
| $
| 0
|
| $
| 0
|
The 2016 and 2015 tax benefits would have been approximately $83,000 and $51,000, respectively, however they had been fully reserved in their current years.
Revenue Recognition
The Company recognizes revenue utilizing the five principles of ASC 606. They are: (1) Identify the contract with a customer; (2) Identify the Performance Obligation in the contract; (3) Determine the transaction price; (4) Allocate the transaction price; (5) Recognize Revenue. There was no revenue in the years ended December 31, 2016 or 2015.
Recent Accounting Pronouncements
The Company reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.
Note 3 – Going Concern
The report of our independent registered public accounting firm on the financial statements for the years ended December 31, 2016 and 2015 includes an explanatory paragraph relating to the uncertainty of our ability to continue as a going concern. For the years ended December 31, 2016 and 2015 we incurred net losses of $(277,709) and $(1,575,358), respectively. As of December 31, 2016 and 2015 we had cash in the amount of $0 and $80, respectively and current liabilities of $506,175 and $470,595, respectively. We have incurred recurring losses, incurred liabilities in excess of assets and have an accumulated deficit of approximately $6.4 million as of December 31, 2016. Based upon current operating levels these losses combined with our current liabilities cast significant doubt on the company’s ability to operate as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with loans from officers and/or private placement of common stock. The failure to achieve the necessary levels of profitability or obtaining additional funding would be detrimental to the Company.
Note 4 – Property and Equipment
As of December 31, 2016 and 2015 the Company did not own any physical plant and/or equipment.
16
SNOOGOO CORP.
NOTES TO FINANCIAL STATEMENTS
Note 5 - Intangibles
The Company’s accounting policy for Long-Lived Assets requires it to review, on a regular basis, for facts and circumstances that may suggest impairment. Software development costs totaling $337,855 were recorded as an Intangible Asset during the year ended December 31, 2015. These costs were related to the development of the Company’s new social information network technology platform (search, save, and share) it intended to use to launch web and mobile applications with broad global appeal. At the end of December 31, 2015, the Company deemed these costs were impaired in their entirety as reflected on the Company’s Statements of Operations as General and Administrative expense. The Company concluded that such impairment should be recognized based on the fact that if the Company was unable to obtain the financial resources needed to execute its business plan, there was substantial doubt regarding the Company’s ability to continue as a going concern based on the Company’s cash position at year-end and the unlikelihood of recovering the investment in the Intangible Asset.
Note 6 – Related Party Transactions
As of December 31, 2016 and 2015 the total amounts due to related parties were $475,260 and $177,722, respectively and were for expenses paid on behalf of the Company and are non-interest bearing. There are no call provisions for these loans and will be paid when the Company has sufficient funds to do so.
On January 6, 2015 the Company entered into a Debt Settlement Agreement with its Chairman whereby the Company issued 20,000,000 of its Restricted common shares at $0.01 per share, in exchange for $200,000 of debt owed him by the Company.
On January 27, 2015 the Company entered into a Debt Settlement Agreement with its CEO, President and CFO whereby the Company issued 6,500,000 of its Restricted common shares at $0.03 per share, the closing price of its freely-traded shares being $0.025, in exchange for $195,000 of accounts payable owed to them by the Company.
On April 21, 2015 the Company issued 1,100,000 of its Restricted common shares at $0.03 per share pursuant to a Debt Settlement Agreement with Aruba Capital Management, Inc., a related party, in exchange for $33,000 of accounts payable owed to it by the Company.
Note 7 – Stockholders’ Equity
As of December 31, 2016 and 2015 the Company was authorized to issue 1,000,000,000 shares of common stock and 10,000,000 shares of preferred stock. Total common shares issued and outstanding on December 31, 2016 and 2015 were 190,314,701 and 162,989,701, respectively and no preferred shares have been issued. There were 27,325,000 common shares issued in 2016 and 48,718,000 common shares issued in 2015. The Company does not have any stock options outstanding, nor does it have any written or oral agreements for the issuance or distribution of stock options at any point in the future.
On February 1, 2016, the Company initially entered into two Consulting Agreements for investor relations to non-related parties to advise on corporate image and business strategy and issued a total of 2,000,000 Restricted common shares as well as agreed to a monthly fee. The two Agreements were modified to one Consulting Agreement for a term of six months with the monthly fee to be paid upon the Company receiving an infusion of capital not expected until the fourth quarter. The previously issued 2,000,000 shares remain outstanding.
On July 26, 2016, the Company received an investment of $37,500 from a non-related party and issued 3,750,000 Restricted common shares at $0.01 per share. The certificate was issued on August 30, 2016.
On August 5, 2016, the Company received two investments from non-related parties, one for $15,000, one for $36,000 and issued 1,500,000 and 3,600,000 Restricted common shares, respectively at $0.01 per share on August 30, 2016.
On August 31, 2016, the Company signed a Debt Settlement Agreement with a non-related party and issued 2,000,000 Restricted common shares at $0.01 per share on September 6, 2016, in exchange for $20,000 of payables owed to the recipient.
On August 31, 2016, the Company signed a Debt Settlement Agreement with a non-related party and issued 3,000,000 Restricted common shares at $0.01 per share on September 6, 2016, in exchange for $30,000 of payables owed to the recipient.
On September 1, 2016, the Company signed a Consulting Agreement with a non-related party and issued 4,000,000 Restricted common shares at $0.01 per share on September 6, 2016.
17
SNOOGOO CORP.
NOTES TO FINANCIAL STATEMENTS
Note 7 – Stockholder’s Equity (cont’d)
On September 5, 2016, the Company received an investment from a non-related party of $3,750 and issued 375,000 Restricted common shares at $0.01 per share on September 9, 2016.
On September 20, 2016, the Company received an investment from a non-related party of $20,000 and issued 2,000,000 Restricted common shares at $0.01 per share. The certificate was issued on October 19, 2016.
On September 22, 2016, the Company signed a Debt Settlement Agreement with a non-related party and issued 2,400,000 Restricted common shares at $0.01 per share. The certificate was issued on October 19, 2016.
On September 28, 2016, the Company received an investment from a non-related party of $10,000 and issued 1,000,000 Restricted common shares at $0.01 per share. The certificate was issued on October 19, 2016.
On November 4, 2016 the Company received an investment from a non-related party of $8,000 and issued 800,000 Restricted common shares at $0.01 per share.
On December 6, 2016 the Company received an investment from a non-related party of $9,000 and issued 900,000 Restricted common shares at $0.01 per share.
On January 6, 2015, the Company executed three Debt Settlement Agreements, whereby the Company issued 20,000,000 of its Restricted common shares to its Chairman, 1,000,000 of its Restricted common shares to a non-officer Director and 5,000,000 of its Restricted common shares to a vendor, at $0.01 per share, the closing price of the Company's freely-traded shares being $0.012 per share, in exchange for accounts payable and loans of $200,000, $10,000 and $50,000, respectively.
On January 27, 2015, the Company executed a Debt Settlement Agreement with its CEO, President and CFO, whereby the Company issued 6,500,000 of its Restricted common shares at $0.02 per share, the closing price of the Company's freely-traded shares being $0.025 per share, in exchange for $195,000 of accounts payable owed.
On February 9, 2015, the Company sold for cash $25,000 for 1,000,000 of its Restricted common shares at $0.025 to a non-related party. The closing price of the Company's freely-traded shares was $0.05 per share.
On February 10, 2015, the Company filed a Certificate of Amendment to its Articles of Incorporation with the State of Nevada increasing the number of its authorized Common shares from 250,000,000 to 1,000,000,000.
On February 10, 2015, the Company entered into four Consulting Agreements with non-related parties, and issued a total of 16,000,000 of its Restricted common shares at $0.05 per share, the closing price of its freely-traded shares.
On February 11, 2015, the Company signed a Debt Settlement Agreement with its CEO, President and CFO, whereby the Company issued 6,668,000 of its Restricted common shares at $0.05 per share, the closing price of the Company's freely-traded shares, in exchange for $200,040 of accounts payable owed.
On February 17, 2015, the Company signed Amendments to the Agreement to serve on the Board of Directors with its two independent Directors, whereby the Company issued 4,000,000 shares of its Restricted common shares (2,000,000 to each Director) at $0.06, the closing price of the Company's freely-traded shares.
On April 1, 2015 the Company issued 500,000 of its Restricted common shares to an unrelated party in exchange for $5,000.
On April 21, 2015, the Company issued 1,100,000 of its Restricted common shares pursuant to a Debt Settlement Agreement with Aruba Capital Management, Inc., a related party, in exchange for $33,000 of accounts payable owed by the Company for expenses paid on its behalf.
On May 12, 2015, the Company issued 500,000 of its Restricted common shares to an unrelated party in exchange for $5,000.
On May 13, 2015, the Company issued 750,000 of its Restricted common shares to an unrelated party in exchange for $7,500.
18
SNOOGOO CORP.
NOTES TO FINANCIAL STATEMENTS
Note 7 – Stockholder’s Equity (cont’d)
On May 14, 2015, the Company issued 250,000 of its Restricted common shares to an unrelated party in exchange for $2,500.
On June 10, 2015, the Company issued 1,000,000 of its Restricted common shares to an unrelated party in exchange for $10,000. As of June 30, 2015, the Company had received $2,500 and recorded a Subscription receivable of $7,500, which was collected in July 2015.
On August 25, 2015, the Company issued 1,000,000 of its Restricted common shares at $0.01 per share, the closing price of the Company's freely-traded shares being $0.022 per share, in settlement of $10,000 owed by the Company.
The Company recorded a net loss of $164,860 resulting from settlement of $665,040 of debt for 40,168,000 of its Restricted common shares during the nine-months ended September 30, 2015.
On October 4, 2015, the Company issued 500,000 of its Restricted common shares to an unrelated party at $0.01 per share in exchange for $5,000.
On October 10, 2015, the Company issued 250,000 of its Restricted common shares to an unrelated party at $0.01 per share in exchange for $2,500.
On October 27, 2015, the Company entered into a Consulting Agreement and issued 4,000,000 of its Restricted common shares at $0.01 per share.
On November 15, 2015, the Company issued 1,200,000 of its Restricted common shares at $0.01 per share for $12,000.
On December 3, 2015, the Company issued 1,000,000 of its Restricted common shares at $0.01 per share for $10,000.
On December 18, 2015, the Company voided the October 27, 2015 Consulting Agreement at the request of the Consultant. The original stock certificate was retired by the Company's transfer agent on May 16, 2016.
Note 8 – Acquisition of Internet Search and Share Engine
On February 11, 2015 the Company completed an Asset Purchase Agreement to acquire certain intellectual property associated with a proprietary social network technology the Company intended to use to launch certain web and mobile applications targeting online search, save, and share community. As consideration, the Company agreed to pay the seller 10% of all future advertising revenues collected from its search, save, and share website, up to a maximum of $4,000,000. (See Note 5).
Note 9 – Subsequent Events
Management has evaluated subsequent events through the date the financial statements were filed.
19