NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2020
(Unaudited)
NOTE 1 - ORGANIZATION AND DESCRIPTION
OF BUSINESS
Perk
International Inc. (“the Company” or “Perk”) was incorporated under the laws of the State of Nevada on
April 10, 2013. The Company is an acquisition, sales management company for early stage, high growth businesses and technologies
in the health care industry. The Company has developed specific criteria and standards that must be met by each acquisition candidate.
Once identified, the Company will engage its highly seasoned and well-trained team of industry professionals to perform thorough
due diligence on the potential acquisition partner. Following successful due diligence, Perk will send in its M & A team to
structure and present an attractive proposal to the selling entity.
On February 22,
2019, Marcus Southworth became, President, Secretary, Treasurer and Director of Perk International Inc.
On April 27, 2020,
Certification and Notice of Termination of Registration Under Section 12(g) of The Securities Exchange Act of 1934 of Duty to File
Reports Under Sections 13 and 15 (d) of the Securities Exchange Act of 1934.
On April 30, 2020
Marcus resigned from, President, Secretary, Treasurer and Director of Perk International Inc. Mr. Southworth no longer holds any
officer position with Perk International Inc.
On April 30, 2020,
Nelson Grist became the sole director of Perk International Inc.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Basis of presentation
The Company’s unaudited financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
GAAP”). The accompanying unaudited financial statements reflect all adjustments, consisting of only normal recurring items,
which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and
are not necessarily indicative of the results to be expected for the full year ending May 31, 2021. These unaudited financial statements
should be read in conjunction with the financial statements and related notes included in the Company’s Financial Statements
for the year ended May 31, 2020.
Use of estimates
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 and 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. Significant estimates include the estimated useful
lives of property and equipment. Actual results could differ from those estimates.
Recently issued accounting pronouncements
In February 2016, the FASB issued ASU 2016-02,
Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet
and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December
15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The Company
has adopted this accounting standard update.
On June 20, 2018, the Financial Accounting
Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-07, Compensation—Stock Compensation (Topic 718):
Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 is intended to reduce cost and complexity and to improve
financial reporting for share-based payments to nonemployees (for example, service providers, external legal counsel, suppliers,
etc.). Under the new standard, companies will no longer be required to value non-employee awards differently from employee awards.
Meaning that companies will value all equity classified awards at their grant-date under ASC718 and forgo revaluing the award after
this date. The guidance is effective for interim and annual periods beginning after December 15, 2018.
In November 2019, the FASB issued ASU 2019-10,
Financial Instruments—Credit Losses (Topic 326), Derivative and Hedging (Topic 815, and Leases (Topic 841). This new guidance
will be effective for annual reporting periods beginning after December 15, 2019, including interim periods within those annual
reporting periods. While the Company is continuing to assess the potential impacts of ASU 2019-10, it does not expect ASU 2019-10
to have a material effect on its financial statements.
The Company has implemented all new accounting
pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise
disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might
have a material impact on its financial position or results of operations.
NOTE 3 - GOING CONCERN
The Company’s unaudited financial
statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern
that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not
established any source of revenue to cover its operating costs and has an accumulated deficit of $1,567,005, ($1,000,000 of which
is from non-cash stock compensation expense). These conditions raise substantial doubt about the company’s ability to continue
as a going concern. The Company will engage in limited activities without incurring significant liabilities that must be satisfied
in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of
financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing
it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations
or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests
of existing stockholders.
NOTE 4 - LOANS PAYABLE
On
July 24, 2013 the Company obtained a term loan for an amount of CAD $18,800 repayable in 59 monthly installments of CAD $367.63
including interest and principal and bears interest at 6.5% per annum (prime plus 3.5% per annum). The loan is secured by a personal
guarantee of a director. As of August 31, 2020 and May 31, 2020, there is a balance due on this loan of $10,776 and $10,776, respectively.
This loan is in default.
As of August
31, 2020 and May 31, 2020, the Company owes $39,991 and $39,991, respectively, to a third party for a loan that was received
during the quarter ended February 28, 2015. This loan is in default.
As of August
31, 2020, and May 31, 2020, the Company owes $20,501 and $20,501, respectively, to a third party for a loan that was received
during the quarter ended February 28, 2015. This loan is in default.
NOTE 5 - NOTES
PAYABLE
On November 3,
2016, the Company received a $25,000 loan from Securities Compliance Group, Ltd. The note is unsecured, bears interest at 25% and
was due upon the final order of dismissal of the custodianship. This note is in default.
On May 2, 2019,
the Company executed a promissory note with Kim Southworth in the amount of $14,749. The loan is due either on demand or within
five years and carries an interest rate of 6%, compounded annually. As of August 31, 2020,
and May 31, 2020, there is $1,200 and $962 of interest accrued on this loan, respectively.
NOTE 6 – RELATED PARTY TRANSACTIONS
As
of August 31, 2020 and May 31, 2020, the Company had a payable to a related party
for $22,790 and $22,790, respectively, which is unsecured and due on demand.
As
of August 31, 2020 and May 31, 2020, the Company owed the CEO $6,194 and $1,550 for cash advances to the Company. The
advances were used to pay for certain operating expenses. They are unsecured, non-interest bearing and due on
demand.
NOTE 7 - SUBSEQUENT EVENTS
In accordance with SFAS 165 (ASC 855-10)
management has performed an evaluation of subsequent events through the date that the unaudited financial statements were available
to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements.