Nature of Operations and Summary of Significant Accounting Policies
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15 Months Ended |
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Sep. 30, 2011
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Nature of Operations and Summary of Significant Accounting Policies |
Note 2
Nature of Operations and Summary of Significant Accounting
Policies
Fits
My Style Inc. (the "Company"), was incorporated in Nevada on July
26, 2010. The Company is headquartered in Israel.
The
Company is not yet able to determine where it will do business, as
operations are expected to occur on an international
basis.
The
Company is developing a website that will allow buyers of
furnishings to simulate how their home or office could look before
making a purchase.
The
Company’s fiscal year end is June 30.
Development Stage
The
Company's financial statements are presented as those of a
development stage enterprise. Activities during the
development stage primarily include equity based financing, and the
development of the business plan.
Use of Estimates
The
preparation of financial statements in conformity with U.S.
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts in
the financial statements and the accompanying notes.
Such
estimates and assumptions impact, among others, the following: the
fair value of share-based payments, estimates of the probability
and potential magnitude of contingent liabilities and the valuation
allowance for deferred tax assets due to continuing and expected
future operating losses.
Making
estimates requires management to exercise significant judgment. It
is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the
date of the financial statements, which management considered in
formulating its estimate could change in the near term due to one
or more future confirming events. Accordingly, the actual results
could differ significantly from our estimates.
Risks and Uncertainties
The
Company's operations may be subject to significant risk and
uncertainties including financial, operational, regulatory and
other risks associated with a development stage company, including
the potential risk of business failure. Also, see Note 3
regarding going concern matters.
Cash and Cash Equivalents
The
Company considers all highly liquid instruments purchased with
maturity of three months or less to be cash
equivalents. The Company had no cash equivalents at
September 30, 2011.
The
Company minimizes its credit risk associated with cash by
periodically evaluating the credit quality of its primary financial
institution. The balance at times may exceed federally insured
limits. At September 30, 2011, there were no balances
that exceeded the federally insured limit.
Earnings (Loss) Per Share
Basic
loss per share is computed by dividing net loss by weighted average
number of shares of common stock outstanding during each
period. Diluted loss per share is computed by dividing
net loss by the weighted average number of shares of common stock,
common stock equivalents and potentially dilutive securities
outstanding during each period. At September 30, 2011, the Company
does not have any outstanding common stock equivalents; therefore,
a separate computation of diluted loss per share is not
presented.
Share-Based Payments
Generally,
all forms of share-based payments, including stock option grants,
warrants, restricted stock grants and stock appreciation rights are
measured at their fair value on the awards’ grant date, based
on the estimated number of awards that are ultimately expected to
vest. Share-based compensation awards issued to non-employees for
services rendered are recorded at either the fair value of the
services rendered or the fair value of the share-based payment,
whichever is more readily determinable. The expense resulting from
share-based payments are recorded as a component of general and
administrative expense.
Research and Development
Research and development is expensed as
incurred. Research and development expenses consist
of the acquisition of
certain intellectual property (“IP”). Also, see Note 4
regarding Intellectual property – related party.
Recent Accounting Pronouncements
There
are no recent accounting pronouncements that are expected to have
an effect on the Company’s financial statements.
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