| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of presentation The
Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America (“U.S. GAAP”). In July 2023, the Board of Directors of the Company approved a change in the Company’s fiscal
year end from December 31 to June 30. The Company’s fiscal year now begins on July 1 and ends on June 30 of each year, starting
on July 1, 2023. The required transition period of January 1, 2023 to June 30, 2023, is included in the financial statements.
For comparative purposes, the unaudited statements of operations and statements of cash flows for the six months
ended June 30, 2022, are also presented (see Note 7). The
accompanying unaudited statement of operations and statement of cash flows for the six months ended June 30, 2022, have been prepared
in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial
information and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) to Form
10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for
complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been included. The
results of operations for the six months ended June 30, 2022, are not necessarily indicative of the results of operations to be expected
for the full fiscal year ending June 30, 2022. These financial statements should be read in conjunction with the financial statements
of the Company for the year ended December 31, 2021, and notes thereto included in the Company’s 2021 Annual Report on Form 10-K. 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. Significant estimates include estimates for the accruals of potential liabilities. Income
Taxes The
Company uses an asset and liability approach for accounting and reporting for income taxes that allows recognition and measurement of
deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach,
deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets
if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility
is uncertain. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. Net
loss per share The
Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic net loss per share is
computed by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per
share is computed like basic net loss per share except that the denominator is increased to include the number of additional common shares
that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.
As of December 31, 2022, the Company has no potentially dilutive securities, such as options or warrants, outstanding. Fair
value measurements The
Company follows the guidance of ASC 820-10, “Fair Value Measurements and Disclosures”, with respect to financial assets and
liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used
in measuring fair value as follows: Level
1 : Level
2 : Level
3 : The
Company believes the carrying amounts reported in the balance sheets for accrued expenses and payable to related parties, approximate
their fair values because of the short-term nature of these financial instruments. Recent
accounting pronouncements In
June 2016, the FASB issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments (“ASC 326”).
The standard significantly changes how entities will measure credit losses for most financial assets, including accounts and notes receivables.
The standard will replace today’s “incurred loss” approach with an “expected loss” model, under which companies
will recognize allowances based on expected rather than incurred losses. Entities will apply the standard’s provisions as a cumulative-effect
adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is
effective for interim and annual reporting periods beginning after December 15, 2022. The Company adopted ASU 2016-13 on January 1, 2023,
and it did not have a material impact on the Company’s financial position, results of operations, and cash flows. Other
recent accounting pronouncements and guidance issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified
Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on
the Company’s present or future financial statements. |
