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Note 1 - Nature of Business and Significant Accounting Policies
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9 Months Ended | ||||
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May 31, 2013
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| Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | |||||
| Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] |
Note
1 – Nature of Business and Significant Accounting
Policies
Nature
of business
Sport
Endurance, Inc. (“the Company”) was incorporated
as Cayenne Construction, Inc. in the state of Nevada on
January 3, 2001 (“Inception”). The Company was
formed to be an independent service provider of ready-mix
concrete, whereby management was to arrange purchases of
ready-mixed concrete by small contractors and customers on a
fee basis. The Company ceased operations in 2002 and was
revived in 2009 with a name change to, “Sport
Endurance, Inc.” on August 6, 2009. The Company intends
to manufacture and distribute a line of sports energy
drinks.
On
October 31, 2012 the shareholders of the Company voted to
increase the authorized common shares of the Company’s
common stock from 480,000,000 authorized shares of common
stock to 580,000,000 authorized shares of common
stock. As a result of this vote, the Company filed
an amendment to its Articles of Incorporation to reflect this
change.
On
November 23, 2012, we effected a 1,000 for 1 reverse stock
split, decreasing the issued and outstanding shares common
shares from 60,200,000 to 60,200 shares and decreasing the
issued and outstanding preferred shares from 1,000,000 to
1,000. All share amounts throughout this report
have been retroactively adjusted for all periods to reflect
this stock split.
Basis of
presentation
The
unaudited condensed financial statements have been prepared
in accordance with United States generally accepted
accounting principles for interim financial information and
with the instructions to Form 10-Q and reflect all
adjustments which, in the opinion of management, are
necessary for a fair presentation. All such
adjustments are of a normal recurring nature. The results of
operations for the interim period are not necessarily
indicative of the results to be expected for the fiscal year
ending August 31, 2013. It is suggested that these interim
condensed financial statements be read in conjunction with
the Form 10-K.
The
Company has adopted a fiscal year end of August 31st.
Development
Stage Company
The
Company is considered to be in the development stage as
defined by FASB ASC 915-10-05. This standard requires
companies to report their operations, shareholders equity and
cash flows from inception through the reporting date. The
Company will continue to be reported as a development stage
entity until, among other factors, revenues are generated
from management’s intended operations. Management has
provided financial data since inception (January 3,
2001).
Use of
Estimates
The
preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, and
the 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.
Cash and
Cash Equivalents
Cash
and equivalents include investments with initial maturities
of three months or less. The Company maintains its
cash balances at credit-worthy financial institutions that
are insured by the Federal Deposit Insurance Corporation
("FDIC") up to $250,000. Deposits with these banks
may exceed the amount of insurance provided on such deposits;
however, these deposits typically may be redeemed upon demand
and, therefore, bear minimal risk. The Company had bank
overdrafts of $21 at May 31, 2013 and cash and cash
equivalents of $38 at August 31, 2012.
Income
Taxes
The
Company accounts for income taxes using the asset and
liability method, which requires the establishment of
deferred tax assets and liabilities for the temporary
differences between the financial reporting basis and the tax
basis of the Company’s assets and liabilities at
enacted tax rates expected to be in effect when such amounts
are realized or settled. The effect on deferred tax assets
and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment
date. A valuation allowance is provided to the
extent deferred tax assets may not be recoverable after
consideration of the future reversal of deferred tax
liabilities, tax planning strategies, and projected future
taxable income.
Fair
Value of Financial Instruments
Under
FASB ASC 820-10-05, the Financial Accounting Standards Board
establishes a framework for measuring fair value in generally
accepted accounting principles and expands disclosures about
fair value measurements. This Statement reaffirms
that fair value is the relevant measurement attribute. The
adoption of this standard did not have a material effect on
the Company’s financial statements as reflected herein.
The carrying amounts of cash and accrued expenses reported on
the balance sheet are estimated by management to approximate
fair value primarily due to the short term nature of the
instruments. The Company had no items that
required fair value measurement on a recurring basis.
Basic
and Diluted Loss Per Share
The
basic net loss per common share is computed by dividing the
net loss by the weighted average number of common shares
outstanding. Diluted net loss per common share is computed by
dividing the net loss adjusted on an “as if
converted” basis, by the weighted average number of
common shares outstanding plus potential dilutive securities.
For the periods presented, there were no outstanding
potential common stock equivalents and therefore basic and
diluted earnings per share result in the same figure.
Recently
Issued Accounting Pronouncements
In
February 2013, the Financial Accounting Standards Board
(FASB) issued Accounting Standards Update (ASU) No. 2013-02,
Comprehensive
Income (Topic 220): Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive Income, to improve the
transparency of reporting these reclassifications. Other
comprehensive income includes gains and losses that are
initially excluded from net income for an accounting period.
Those gains and losses are later reclassified out of
accumulated other comprehensive income into net income. The
amendments in the ASU do not change the current requirements
for reporting net income or other comprehensive income in
financial statements. All of the information that this ASU
requires already is required to be disclosed elsewhere in the
financial statements under U.S. GAAP. The new amendments will
require an organization to:
The
amendments apply to all public and private companies that
report items of other comprehensive income. Public companies
are required to comply with these amendments for all
reporting periods (interim and annual). The amendments are
effective for reporting periods beginning after December 15,
2012, for public companies. Early adoption is permitted. The
adoption of ASU No. 2013-02 is not expected to have a
material impact on our financial position or results of
operations.
In
January 2013, the FASB issued ASU No. 2013-01, Balance Sheet
(Topic 210): Clarifying the
Scope of Disclosures about Offsetting Assets and
Liabilities, which clarifies which instruments and
transactions are subject to the offsetting disclosure
requirements originally established by ASU 2011-11. The new
ASU addresses preparer concerns that the scope of the
disclosure requirements under ASU 2011-11 was overly broad
and imposed unintended costs that were not commensurate with
estimated benefits to financial statement users. In choosing
to narrow the scope of the offsetting disclosures, the Board
determined that it could make them more operable and cost
effective for preparers while still giving financial
statement users sufficient information to analyze the most
significant presentation differences between financial
statements prepared in accordance with U.S. GAAP and those
prepared under IFRSs. Like ASU 2011-11, the amendments in
this update will be effective for fiscal periods beginning
on, or after January 1, 2013. The adoption of ASU 2013-01 is
not expected to have a material impact on our financial
position or results of operations.
In
October 2012, the FASB issued Accounting Standards Update ASU
2012-04, “Technical Corrections and Improvements”
in Accounting Standards Update No. 2012-04. The amendments in
this update cover a wide range of Topics in the Accounting
Standards Codification. These amendments include technical
corrections and improvements to the Accounting Standards
Codification and conforming amendments related to fair value
measurements. The amendments in this update will be effective
for fiscal periods beginning after December 15, 2012. The
adoption of ASU 2012-04 is not expected to have a material
impact on our financial position or results of
operations.
In
August 2012, the FASB issued ASU 2012-03, “Technical
Amendments and Corrections to SEC Sections: Amendments to SEC
Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB)
No. 114, Technical Amendments Pursuant to SEC Release No.
33-9250, and Corrections Related to FASB Accounting Standards
Update 2010-22 (SEC Update)” in Accounting Standards
Update No. 2012-03. This update amends various SEC paragraphs
pursuant to the issuance of SAB No. 114. The adoption of ASU
2012-03 is not expected to have a material impact on our
financial position or results of operations.
In
July 2012, the FASB issued ASU 2012-02, “Intangibles
– Goodwill and Other (Topic 350): Testing
Indefinite-Lived Intangible Assets for Impairment” in
Accounting Standards Update No. 2012-02. This update amends
ASU 2011-08, Intangibles
– Goodwill and Other (Topic 350): Testing
Indefinite-Lived Intangible Assets for Impairment and
permits an entity first to assess qualitative factors to
determine whether it is more likely than not that an
indefinite-lived intangible asset is impaired as a basis for
determining whether it is necessary to perform the
quantitative impairment test in accordance with Subtopic
350-30, Intangibles -
Goodwill and Other - General Intangibles Other than
Goodwill. The amendments are effective for annual and
interim impairment tests performed for fiscal years beginning
after September 15, 2012. Early adoption is permitted,
including for annual and interim impairment tests performed
as of a date before July 27, 2012, if a public entity’s
financial statements for the most recent annual or interim
period have not yet been issued or, for nonpublic entities,
have not yet been made available for issuance. The adoption
of ASU 2012-02 has not had a material impact on our financial
position or results of operations.
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