Management’s Estimates and Assumptions
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, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses. Actual results could differ from these estimates.
New Accounting Pronouncements
There are no recently issued, but not yet effective accounting pronouncements, that, if adopted, would have a material effect on the accompanying financial statements.
Note 2 — Related Party Transactions
As of March 31, 2018 and December 31, 2017, AMIH had a payable to AMIN of $31,996 and $31,496, respectively. The loan is from the parent company. There is no loan agreement, and interest is not being charged. At March 31, 2018 and December 31, 2017, the Company had an accrued liability in the amount $30,000 for compensation to the Company’s CEO. The Company incurred an imputed interest expense in the amount of $621 for the quarter ended March 31, 2018.
Note 3 – Capital Stock
The Company is authorized to issue up to 5,000,000 shares of preferred stock, $ 0.0001 par value, of which 0 shares are issued and outstanding at March 31, 2018 and December 31, 2017.
The Company is authorized to issue up to 195,000,000 shares of common stock, $0.0001 par value, of which 747,355 shares are issued and outstanding (outstanding shares includes 410 treasury shares) at March 31, 2018 and December 31, 2017.
Note 4 — Going concern
As reflected in the accompanying financial statements, the Company has no operations, a net loss of $1,051 for the three months ended March 31, 2018, an accumulated deficit of $2,226,161, and has no sources of revenue and expects to incur further losses in the future, thus raising substantial doubt about the Company’s ability to continue 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 to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management plans to obtain the necessary financing to meet its obligations during 2018. As a shell corporation, the Company pursued potential business combination transactions with existing private business enterprises that might have a desire to take advantage of the Company’s status as a public corporation. These financials do not include any adjustments relating to the recoverability and reclassification of recorded asset amounts, or amounts and classifications of liabilities that might result from this uncertainty.
Note 5 – Subsequent Events
Effective May 31, 2018, the Company issued 10,100,000 shares of restricted common stock. As a result of the issuance of the common shares, a change in control has incurred. American International Industries, Inc. ownership decreased from 93.2% to 6.4%.
Management has evaluated all subsequent events through July 3, 2018, the date the financial statements were available to be issued. No change to the financial statements for the quarter ended March 31, 2018 is deemed necessary as a result of this evaluation.