SCIO DIAMOND TECHNOLOGY CORP, 10-Q filed on 8/2/2011
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2011
Feb. 11, 2011
Document and Entity Information
 
 
Entity Registrant Name
KROSSBOW HOLDING CORP 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2011 
 
Amendment Flag
FALSE 
 
Entity Central Index Key
0001488934 
 
Current Fiscal Year End Date
--12-31 
 
Entity Common Stock, Shares Outstanding
 
3,200,000 
Entity Filer Category
Smaller Reporting Company 
 
Entity Current Reporting Status
Yes 
 
Entity Voluntary Filers
No 
 
Entity Well-known Seasoned Issuer
No 
 
Document Fiscal Year Focus
2011 
 
Document Fiscal Period Focus
Q1 
 
BALANCE SHEETS AT JUNE 30, 2011 AND MARCH 31, 2011 (UNAUDITED) (USD $)
Jun. 30, 2011
Mar. 31, 2011
Cash and cash equivalents
$ 1,567 
$ 933 
TOTAL ASSETS
1,567 
933 
Accrued expenses
255 
3,500 
Note payable - related party
17,490 
8,490 
TOTAL LIABILITIES
17,745 
11,661 
Common stock, par $0.001, 75,000,000 shares authorized, 3,200,000 shares issued and outstanding
3,200 
3,200 
Paid in capital
22,800 
22,800 
Deficit accumulated during the development stage
(42,178)
(37,057)
TOTAL STOCKHOLDERS' EQUITY
(16,178)
(11,057)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 1,567 
$ 933 
BALANCE SHEETS (PARENTHETICALS) (USD $)
Dec. 31, 2010
Mar. 31, 2010
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares authorized
75,000,000 
75,000,000 
Common stock, shares issued
3,200,000 
3,200,000 
Common stock, shares outstanding
3,200,000 
3,200,000 
STATEMENTS OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED JUNE 30, 2011 AND 2010 PERIOD FROM SEPTEMBER 17, 2009 (INCEPTION) TO JUNE 30, 2011 (USD $)
3 Months Ended
Jun. 30,
2011
2010
21 Months Ended
Jun. 30, 2011
GROSS REVENUES
$ 0 
$ 0 
$ 0 
OPERATING EXPENSES
5,121 
19,570 
42,178 
LOSS FROM OPERATIONS
(5,121)
(19,570)
(42,178)
OTHER EXPENSES
NET LOSS BEFORE INCOME TAXES
(5,121)
(19,570)
(42,178)
PROVISION FOR INCOME TAXES
Net loss for the period
$ (5,121)
$ (19,570)
$ (42,178)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
3,200,000 
3,200,000 
 
NET LOSS PER SHARE
$ (0.01)
$ (0.01)
 
STATEMENTS OF CASH FLOWS (UNAUDITED) THREE MONTHS ENDED JUNE 30, 2011 AND 2010 PERIOD FROM SEPTEMBER 17, 2009 (INCEPTION) TO JUNE 30, 2011 (USD $)
3 Months Ended
Jun. 30,
2011
2010
21 Months Ended
Jun. 30, 2011
Net loss for the period
$ (5,121)
$ (19,570)
$ (42,178)
Increase (decrease) in accrued expenses
(3,245)
(3,332)
255 
Net Cash Used in Operating Activities
(8,366)
(22,902)
(41,953)
Proceeds from note payable - related party
9,000 
17,490 
Proceeds from the sale of common stock
26,000 
Net Cash Provided by Financing Activities
9,000 
43,490 
Net Increase (Decrease) in Cash and Cash Equivalents
634 
(22,902)
1,567 
Cash and Cash Equivalents - Beginning
933 
25,450 
Cash and Cash Equivalents - Ending
1,567 
2,548 
1,567 
Cash paid for interest
Cash paid for income taxes
$ 0 
$ 0 
$ 0 
Consolidated Statements of Stockholders' Equity (USD $)
Total
Common Stock Shares
Common Stock Amount
Additional Paid in Capital
Deficit Accumulated During the Development Stage
Balance, at Sep. 16, 2009
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
Common stock issued to founder at $0.004 per share
4,000 
1,000,000 
1,000 
3,000 
Common stock issued for cash at $0.01 per share
22,000 
2,200,000 
2,200 
19,800 
Net loss for the period ended June 30, 2011
(6,211)
(6,211)
Balance, at Mar. 31, 2010
19,789 
3,200,000 
3,200 
22,800 
(6,211)
Balance, at Dec. 31, 2010
 
 
 
 
 
Net loss for the period ended June 30, 2011
(30,846)
(30,846)
Balance, at Mar. 31, 2011
(11,057)
3,200,000 
3,200 
22,800 
(37,057)
Net loss for the period ended June 30, 2011
(5,121)
3,200,000 
3,200 
22,800 
(5,121)
Balance, at Jun. 30, 2011
$ (16,178)
$ 3,200,000 
$ 3,200 
$ 22,800 
$ (42,178)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Organization and Business

Krossbow Holding Corp. (“the Company”) was incorporated under the laws of the State of Nevada, U.S. on September 17, 2009.  The Company is in the development stage and it intends to produce Verified Emission Reduction (VER) and Reduced Emissions from Deforestation and Degradation (REDD) carbon offsets through global restoration projects. 

 

The Company has not generated any revenue to date and consequently its operations are subject to all risks inherent in the establishment of a new business enterprise.  For the period from inception, September 17, 2009 through June 30, 2011 the Company has accumulated losses of $42,178.

 

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. 

 

Accounting Basis

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting).  The Company has adopted a March 31 fiscal year end.

 

Fair Value of Financial Instruments

The carrying value of cash, accounts payable and notes payable approximate their fair value due to the short period of these instruments.

 

Development Stage Company

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies.  A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.

 

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 amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

 

Revenue Recognition

The Company will recognize revenue when products are fully delivered or services have been provided and collection is reasonably assured.

 

 

 

 

 

 

F-5

 

KROSSBOW HOLDING CORP.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2011

 

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Income Taxes

The Company utilizes the liability method of accounting for income taxes. Under the liability method deferred tax assets and liabilities are determined based on the differences between financial reporting basis and the tax basis of the assets and liabilities and are measured using enacted tax rates and laws that will be in effect, when the differences are expected to reverse. An allowance against deferred tax assets is recognized, when it is more likely than not, that such tax benefits will not be realized.

 

Any deferred tax asset is considered immaterial and has been fully offset by a valuation allowance because at this time the Company believes that it is more likely than not that the future tax benefit will not be realized as the Company has no current operations.

 

Loss Per Common Share

Basic loss per share is calculated using the weighted-average number of common shares outstanding during each reporting period. Diluted loss per share includes potentially dilutive securities such as outstanding options and warrants, using various methods such as the treasury stock or modified treasury stock method in the determination of dilutive shares outstanding during each reporting period. The Company does not have any potentially dilutive instruments.

 

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with SFAS No. 123 and 123 (R) (ASC 718). To date, the Company has not adopted a stock option plan and has not granted any stock options.

 

As of June 30, 2011, the Company has not issued any stock-based payments to its employees.

 

Recent Accounting Pronouncements

In May 2009, the FASB issued SFAS 165 (ASC 855-10) entitled “Subsequent Events”.  Companies are now required to disclose the date through which subsequent events have been evaluated by management. Public entities (as defined) must conduct the evaluation as of the date the financial statements are issued, and provide disclosure that such date was used for this evaluation. SFAS 165 (ASC 855-10) provides that financial statements are considered “issued” when they are widely distributed for general use and reliance in a form and format that complies with GAAP. SFAS 165 (ASC 855-10) is effective for interim and annual periods ending after June 15, 2009 and must be applied prospectively.

 

In June 2009, the FASB issued SFAS 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles. (“SFAS 168” or ASC 105-10) SFAS 168 (ASC 105-10) establishes the Codification as the sole source of authoritative accounting principles recognized by the FASB to be applied by all nongovernmental entities in the preparation of financial statements in conformity with GAAP. SFAS 168 (ASC 105-10) was prospectively effective for financial statements issued for fiscal years ending on or after September 15, 2009 and interim periods within those fiscal years. The adoption of SFAS 168 (ASC 105-10) on July 1, 2009 did not impact the Company’s results of operations or financial condition. The Codification did not change GAAP, however, it did change the way GAAP is organized and presented.

F-7

 

 

 

 

 

 

KROSSBOW HOLDING CORP.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2011

 

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Recent Accounting Pronouncements (continued)

As a result, these changes impact how companies reference GAAP in their financial statements and in their significant accounting policies. The Company implemented the Codification in this Report by providing references to the Codification topics alongside references to the corresponding standards.

 

With the exception of the pronouncements noted above, no other accounting standards or interpretations issued or recently adopted are expected to have a material impact on the Company’s financial position, operations or cash flows.

NOTE 2 - CAPITAL STOCK
Stockholders' Equity Note Disclosure [Text Block]

NOTE 2 – CAPITAL STOCK

 

The authorized capital of the Company is 75,000,000 common shares with a par value of $ 0.001 per share.

 

In December 2009, the Company issued 1,000,000 shares of common stock at a price of $0.004 per share for total cash proceeds of $4,000.

 

In January through March 2010, the Company issued 2,200,000 shares of common stock at a price of $0.01 per share for total cash proceeds of $22,000.

 

The Company has 3,200,000 shares of common stock issued and outstanding as of June 30, 2010. Of these shares, approximately 31.25% are controlled by the Company’s sole officer and director, who may be able to exert significant influence over the operations of the Company. He may also have the power to prevent or cause a change in control. 

 

The Company has filed an S-1 registration statement to register some shares of stock for sale. The shares owned by our sole director and officer are not a part of the registration statement and his percentage ownership will be stay the same at approximately 31.25%. 

NOTE 3 - ACCRUED EXPENSES
Schedule of Accrued Liabilities [Table Text Block]

NOTE 3 – ACCRUED EXPENSES

 

Accrued expenses at June 30, 2010 consisted of amounts owed to the Company’s outside independent auditors.

NOTE 5 - INCOME TAXES
Income Tax Disclosure [Text Block]

NOTE 5 – INCOME TAXES

 

For the periods ended June 30, 2011, the Company has incurred net losses and, therefore, has no tax liability.  The net deferred tax asset generated by the loss carry-forward has been fully reserved.  The cumulative net operating loss carry-forward is approximately $42,000 at June 30, 2011, and will expire beginning in the year 2010.

 

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

 

Net deferred tax assets consist of the following components as of:

 

 

2011

NOL Carryover

$     14,280

Valuation allowance

(14,280)

Net deferred tax asset

$               -

 

NOTE 6 - GOING CONCERN
3 Months Ended
Mar. 31, 2011
GOING CONCERN
 
Premiums Receivable Note [Text Block]
NOTE 6 - GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying financial statements, the Company incurred losses of $42,178 since its inception and has not yet produced revenues from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern. Management anticipates that it will be able to raise additional working capital through the issuance of stock and through additional loans from investors. The ability of the Company to continue as a going concern is dependent upon the Company's ability to attain a satisfactory level of profitability and obtain suitable and adequate financing. There can be no assurance that management's plan will be successful. 
NOTE 7 - SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2011
Subsequent Events
 
Schedule of Subsequent Events [Table Text Block]
NOTE 7 - SUBSEQUENT EVENTS In accordance with SFAS 165 (ASC 855-10) the Company has analyzed its operations subsequent to June 30, 2011 to July 5, 2011, the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements. F-8 FORWARD LOOKING STATEMENTS Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.