2. Summary of Significant Accounting
Policies
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Management is responsible for the fair presentation
of the Companys financial statements, prepared in accordance with U.S. generally accepted accounting principles (GAAP). |
Use of Estimates
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The preparation of financial statements in conformity with generally
accepted accounting principles 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. Estimates are used in the
determination of depreciation and amortization, the valuation for non-cash issuances of common stock, and the website, income taxes
and contingencies, among others.
Cash and Cash Equivalents
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The Company classifies as cash and cash
equivalents amounts on deposit in the banks and cash temporarily in various instruments with original maturities of three months
or less at the time of purchase. |
Fair Value of Financial Instruments
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Statement of financial accounting standard
FASB Topic 820, Disclosures about Fair Value of Financial Instruments, requires that the Company disclose estimated fair values
of financial instruments. The carrying amounts reported in the statements of financial position for assets and liabilities qualifying
as financial instruments are a reasonable estimate of fair value. |
Inventory
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Inventories consisting
of packaged food items and supplies are stated at the lower of cost (FIFO) or market, including provisions for spoilage commensurate
with known or estimated exposures which are recorded as a charge to cost of sales during the period spoilage is incurred. The Company
has no minimum purchase commitments with its vendors.
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Advertising Costs
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Advertising costs are expensed when incurred
and are included in advertising and promotional expense in the accompanying statements of operations. The Company incurred advertising
costs of $26,891 and $596 for the years ended June 30, 2014 and 2013, respectively. |
Income Taxes
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The Company has not generated any taxable
income, and, therefore, no provision for income taxes has been provided. |
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Deferred income taxes are reported for timing
differences between items of income or expense reported in the financial statements and those reported for income tax purposes
in accordance with FASB Topic 740, "Accounting for Income Taxes", which requires the use of the asset/liability method
of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases,
and for tax loss and 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 Company
provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when
realization is more likely than not. |
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A valuation allowance has been recorded
to fully offset the deferred tax asset even though the Company believes it is more likely than not that the assets will be utilized.
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The Companys effective tax rate differs
from the statutory rates associated with taxing jurisdictions because of permanent and temporary timing differences as well as
a valuation allowance. |
Revenue Recognition
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The Company generates its revenue from products
sold from traditional retail outlets along with items distributed from the Companys and other customer website. |
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All sources of revenue are recorded
pursuant to FASB Topic 605 Revenue Recognition, when persuasive evidence of arrangement exists, delivery of services has
occurred, the fee is fixed or determinable and collectability is reasonably assured. |
Concentration of Credit Risk
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Financial instruments that potentially subject
the Company to concentrations of credit risk consist principally of cash deposits at financial institutions. At various times during
the year, the Company may exceed the federally insured limits. To mitigate this risk, the Company places its cash deposits only
with high credit quality institutions. Management believes the risk of loss is minimal. At June 30, 2014 and 2013 the Company did
not have any uninsured cash deposits. |
Impairment of Long-lived Assets
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The Company accounts for long-lived assets
in accordance with the provisions of FASB Topic 360, Accounting for the Impairment of Long-Lived Assets. This statement requires
that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets
are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets
exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less
costs to sell. Fair values are determined based on quoted market value, discounted cash flows or internal and external appraisals,
as applicable. |
Recent Accounting Pronouncements
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The Company has assessed all newly issued
accounting pronouncements released during the years ended June 30, 2014 and 2013, and have found none of them to have a material
impact on the Companys financial statements. |
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