CORRECTION OF AN ERROR

9 Months Ended

Feb. 28, 2022

Accounting Changes and Error Corrections [Abstract]

NOTE 7 – CORRECTION OF AN ERROR

During 2021, the Company discovered that interest expense was wrongly recorded in the financial statements for the fiscal year ended May 31, 2020. Consequently, interest expenses and the related liability were understated. These errors have now been corrected by restating each of the affected financial statement line items for prior periods. In addition, in the prior year the Company had recorded a $12,000 beneficial conversion feature (“BCF”) on the issuance of convertible notes. With the subsequent early adoption of ASU 2020-06, the $12,000 BCF and related expense was reversed. The previous year audited numbers and restated numbers are as follows:


As of May 31, 2020
	As Reported			Adjusted			As Restated
Accounts payable	$	343,319		$	–		$	343,319
Accrued interest		962			12,158			13,120
Due to related parties		24,340			–			24,340
Loans payable		71,268			–			71,268
Notes payable		39,749			–			39,749
Total current liabilities		479,638			12,158			491,796

Common stock		22,720			–			22,720
Additional paid-in capital		1,028,408			–			1,028,408
Accumulated deficit		(1,530,766	)		–			(1,542,924	)
Total stockholders' deficit		(479,638	)		(12,158	)		(491,796	)
Total liabilities and stockholders' equity	$	–		$	–		$	–


For the Three Months Ended February 28, 2021
	As Reported			Adjustment			As Restated
Operating Expenses:
General and administration expenses	$	22,845		$	(12,000	)	$	10,845
Total operating expense		22,845			(12,000	)		10,845
Loss from operations		(22,845	)		12,000			(10,845	)

Other expense:
Interest expense		(2,073	)		54			(2,019	)
Total other expense		(2,073	)		54			(2,019	)

Net Loss	$	(24,918	)	$	12,054		$	(12,864	)

Net loss per share	$	(0.00	)				$	(0.00	)

Weighted average shares outstanding—basic and diluted		227,203,331						227,203,331


For the Nine Months Ended February 28, 2021
	As Reported			Adjustment			As Restated
Operating Expenses:
General and administration expenses		47,878			(12,000	)		35,878
Total operating expense		47,878			(12,000	)		35,878
Loss from operations		(47,878	)		12,000			(35,878	)

Other expense:
Interest expense		(17,631	)		11,504			(6,127	)
Total other expense		(17,631	)		11,504			(6,127	)

Net Loss	$	(65,509	)	$	23,504		$	(42,005	)

Net loss per share	$	(0.00	)				$	(0.00	)

Weighted average shares outstanding—basic and diluted		227,203,331						227,203,331

Perk International Inc. 10-Q