Sipup Corporation
(A Development Stage Company)
Balance Sheets
February 28, 2014 and November 30, 2013
(Unaudited)
ASSETS
		February 28, 2014				December 31, 2013
NONE
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Liabilities
Accounts payable and accrued expenses		$	4,320			$	2,980
Loan payable - stockholders			1,755				1,755
Total current liabilities			6,075				4,735
Stockholder’s Deficit:
Common stock, $0.001 par value; 75,000,000 shares authorized,
4,000,000 shares issued and outstanding			4,000				4,000
Additional paid in capital			61,068				61,068
Deficit accumulated during development stage			(71,143	)			(69,803	)
			(6,075	)			(4,735	)
		$	—			$	—

 

See accompanying summary of notes to unaudited condensed financial statements.

 

 

Sipup Corporation
(A Development Stage Company)
Statements of Operations
For the Three Months Ended February 28, 2014 and 2013 and for the Period
From October 31, 2012  (Inception) to February 28, 2014
		From October 31, 2012 (Inception)
		to February 28,				For the Three Months Ended February 28,
			2014				2014				2013
Revenue, net		$	—			$	—			$	—
Cost of goods sold			—				—
Gross profit			—				—				—
Expenses:
Officer’s compensation			47,000				—				—
Computer and internet			89				—				89
Professional fees			22,520				1,270				3,436
Other			1,534				70				53
			71,143				1,340				3,578
Net loss before provision for income taxes			(71,143	)			(1,340	)			(3,578	)
Provision for income taxes			—				—				—
Net loss		$	(71,143	)		$	(1,340	)		$	(3,578	)
Loss per common share - Basic and
fully diluted		$	(0.02	)		$	(0.00	)		$	(0.00	)
Weighted average number of shares
outstanding - Basic and fully diluted			3,606,831				4,000,000				3,000,000

 

See accompanying summary of notes to unaudited condensed financial statements.

 

 

Sipup Corporation

(A Development Stage Company)

Statement of Stockholders’ Equity

For the Period from October 31, 2012 (Inception) to February 28, 2014

 

										Additional				Accumulated Deficit During				Total
		Common Stock								Paid in				Development				Stockholder’s
		Shares				Amount				Capital				Stage				Equity
Issuance of common shares for cash at
at $0.001 per share			3,000,000			$	3,000			$	—			$	—			$	3,000
Net loss			—				—				—				(5,864	)			(5,864	)
Balance - November 30, 2012			3,000,000				3,000				—				(5,864	)			(2,864	)
Issuance of common shares for cash at
$0.05 per share			90,000				90				4,410				—				4,500
Issuance of common shares for cash at
$0.05 per share			910,000				910				44,590				—				45,500
Contribution to additional paid in capital			—				—				9,740				—				9,740
Contribution to additional paid in capital			—				—				2,328				—				2,328
Net loss			—				—				—				(63,939	)			(63,939	)
Balance - November 30, 2013			4,000,000				4,000				61,068				(69,803	)			(4,735	)
Net loss			—				—				—				(1,340	)			(1,340	)
Balance - February 28, 2014			4,000,000			$	4,000			$	61,068			$	(71,143	)		$	(6,075	)

 

See accompanying summary of notes to unaudited condensed financial statements.

 

 

 

Sipup Corporation
(A Development Stage Company)
Statements of Cash Flows
For the Three Months Ended February 28, 2014 and 2013 and for the Period
From October 31, 2012  (Inception) to February 28, 2014
		From October 31, 2012 (Inception) to February 28,				For the Three Months Ended February 28,
		2014				2014				2013
Cash flows from operating activities:
Net loss		$	(71,143	)		$	(1,340	)		$	(3,578	)
Adjustments to reconcile net loss to net cash used
by operating activities:
Accounts payable and accrued expenses			4,320				1,340				—
Net cash used by operating activities			(66,823	)			—				(3,578	)
Cash flows from financing activities:
Proceeds from issuance of common stock			53,000				—				—
Stockholder’s loan			1,755				—				590
Stockholder contribution			12,068
Net cash provided by financing activities			66,823				—				590
Net increase in cash			—				—				(2,988	)
Cash at beginning of period			—				—				2,993
Cash at end of period		$	—			$	—			$	5
Supplemental cash flow information:
Cash paid during the period for:
Interest		$	—			$	—			$	—
Income taxes		$	—			$	—			$	—

  

See accompanying summary of notes to unaudited condensed financial statements.

 

 

Sipup Corporation

(A Development Stage Company)

Notes to Financial Statements

February 28, 2014

 

 

Note 1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Organization

Sipup Corporation (“Sipup” or the “Company”) was incorporated on October 31, 2012, under the laws of the State of Nevada. The Company is in the development stage as defined under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 915, “Development Stage Entities”. The Company intends to produce, pack and sell flavored yogurts.

 

Basis of Presentation 

These interim unaudited condensed financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and to the rules and regulations of the Securities and Exchange Commission (the “SEC”).  Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements.  Management believes that these financial statements include all normal recurring adjustments necessary for a fair statement of the results for the interim period. Operating results for the interim period ended February 28, 2014 are not necessarily indicative of the results that may be expected for the year ending November 30, 2014. Accordingly, these financial statements should be read in conjunction with the audited financial statements and related notes for the fiscal year ended November 30, 2013.

 

Revenue Recognition 

In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured

 

Revenue will be recognized at the time the product is delivered or services are performed. Provision for sales returns will be estimated based on the Company’s historical return experience. Revenue will be presented net of returns.

 

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 amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 

Segment Information 

The Company follows Accounting Standards Codification (“ASC”) 280, “Segment Reporting”. The Company currently operates in a single segment and will evaluate additional segment disclosure requirements as it expands its operations.

 

 

 

Sipup Corporation

(A Development Stage Company)

Notes to Financial Statements

February 28, 2014

 

Note 1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Net Loss Per Common Share 

Basic net (loss) income per common share is calculated using the weighted average common shares outstanding during each reporting period. Diluted net (loss) income per common share adjusts the weighted average common shares for the potential dilution that could occur if common stock equivalents (convertible debt and preferred stock, warrants, stock options and restricted stock shares and units) were exercised or converted into common stock. There were no common stock equivalents at February 28, 2014.

 

Income Taxes 

Deferred income taxes are recognized for the tax consequences related to temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes at each year end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized when, based on the weight of all available evidence, it is considered more likely than not that all, or some portion, of the deferred tax assets will not be realized. Income tax expense is the sum of current income tax plus the change in deferred tax assets and liabilities.

 

ASC 740, Income Taxes, requires a company to first determine whether it is more likely than not (which is defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more likely than not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

 

Stock-Based Compensation 

The Company accounts for equity instruments issued to employees in accordance with ASC 718, Compensation - Stock Compensation. ASC 718 requires all share-based compensation payments to be recognized in the financial statements based on the fair value using an option pricing model. ASC 718 requires forfeitures to be estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from initial estimates.

 

Equity instruments granted to non-employees are accounted for in accordance with ASC 505, Equity. The final measurement date for the fair value of equity instruments with performance criteria is the date that each performance commitment for such equity instrument is satisfied or there is a significant disincentive for non-performance.

 

 

Sipup Corporation

(A Development Stage Company)

Notes to Financial Statements

February 28, 2014

 

Note 1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Cash and Cash Equivalents 

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. There were no cash equivalents at February 28, 2014.

 

Recent Pronouncements 

There are no recent accounting pronouncements that apply to the Company.

 

Note 2.   LOAN PAYABLE - STOCKHOLDER

 

During 2013 and 2012 two stockholders advanced the Company $-0- and $1,755, respectively, to pay expenses. The loans bear no interest and are payable on demand.

 

Note 3.   STOCKHOLDER’S DEFICIT

 

In October 2012, the Company issued 3,000,000 shares of common stock at $0.001 per share.

 

In May 2013, the Company issued 1,000,000 shares of common stock at $0.05 per share.

 

Note 4.   INCOME TAXES

 

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences are as follows:

 

Income tax provision at the federal
statutory rate			25	%
Effect of operating losses			(25	)%
			0	%

  

As of February 28, 2014, the Company has a net operating loss carryforward of approximately $71,000. This loss will be available to offset future taxable income. If not used, this carryforward will begin to expire in 2032. The deferred tax asset relating to the operating loss carryforward has been fully reserved at February 28, 2014 due to the uncertainty of its recognition.

 

 

 

Sipup Corporation

(A Development Stage Company)

Notes to Financial Statements

February 28, 2014

 

Note 5.   BASIS OF REPORTING

 

The Company’s financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

 

The Company has experienced a loss from operations during its development stage as a result of its investment necessary to achieve its operating plan, which is long-range in nature. For the period from October 31, 2012 (inception) to February 28, 2014, the Company incurred a net loss of approximately $71,000. In addition, the Company has no significant assets or revenue generating operations.

 

The Company currently does not have sufficient cash to sustain itself for the next 12 months, and will require additional funding in order to execute its plan of operations and to continue as a going concern. To meet its cash needs, management expects to raise capital through a private placement offering.

 

The 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.