Organization and Operations
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12 Months Ended |
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Mar. 31, 2012
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Notes to Financial Statements | |
Organization and Operations |
Note 1 - Organization and Operations
Koffee Korners Inc. (Texas)
Koffee Korners Inc. (Koffee Korners Texas or Predecessor) was incorporated on July 7, 2003 under the laws of the State of Texas. Koffee Korners Texas purchases and roasts high-quality whole bean coffees that it sells, along with handcrafted coffee and tea beverages and a variety of fresh food items, through its retail store in Houston, Texas.
Koffee Korner Inc. (Delaware)
Koffee Korner Inc. (Koffee Korner Delaware or the Company) was incorporated on January 30, 2012 under the laws of the State of Delaware for the sole purpose of acquiring all of the issued and outstanding capital of Koffee Korners Texas. Upon formation, the Company issued an aggregate of 10,000,000 shares of the newly formed corporations common stock to the sole stockholder of Koffee Korners Texas for all of the issued and outstanding capital of Koffee Korners Texas. No value was given to the stock issued by the newly formed corporation. Therefore, the shares were recorded to reflect the $.0001 par value and paid in capital was recorded as a negative amount of ($1,000). The acquisition process utilizes the capital structure of the Company and the assets and liabilities of Koffee Korners Texas, which are recorded at historical cost.
The Company applied paragraph 505-10-S99-3 of the FASB Accounting Standards Codification (formerly Topic 4B of the Staff Accounting Bulletins (SAB)(SAB Topic 4B)) issued by the U.S. Securities and Exchange Commission (the SEC), by reclassifying the Koffee Korners Texass capital account of $15,247 and undistributed earnings $21,026 as of January 30, 2012 to additional paid-in capital.
The accompanying consolidated financial statements have been prepared as if the Company had its corporate capital structure as of the first date of the first period presented.
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