NOTES
TO THE FINANCIAL STATEMENTS
August
31, 2022
(unaudited)
NOTE
1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PURTHANOL
RESOURCES LIMITED (formerly Global Biotech Corp.) (the Company) was incorporated in the State of Delaware on November 2, 1998, to be
an Application Service provider in the E-health sector. On March 5, 2003, this business was sold, market, unsuccessfully. On February
25, 2005, it discontinued its vehicle tracking business. On August 15, 2007, the Company entered the oxygenated beverage market. The
Company changed its mission and its objective was to produce Bio fuel alternatives, via the acquisition of the Purthanol process in September
2013 and the acquisition of Bio-Cardel Quebec in December 2013. The Company changed its name from
Global
Biotech Corp. to Purthanol Resources Limited on September 30, 2013. Currently the Company has not been operating , and has not been operating,
and has been inactive since 2015.There are no operations, sales, and activities as far as marketing and production.
Basis
of Presentation – Unaudited Financial Statements
The
accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial
information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally
accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes
in the information disclosed in the notes to the financial statements for the fiscal year ended November 30, 2021 included in the Company’s
10-K filed with the Securities and Exchange Commission. The unaudited financial statements should be read in conjunction with those financial
statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting
solely of normal recurring adjustments, have been made. Operating results for the nine months ended August 31, 2022 are not necessarily
indicative of the results that may be expected for the year ending November 30, 2022.
Risks
and Uncertainties
The
pandemic caused by an outbreak of a new strain of coronavirus (“COVID-19”) has resulted, and is likely to continue to result,
in significant national and global economic disruption and may adversely affect our business. Based on the Company’s current assessment,
the Company does not expect some material impact on its long-term operation due to the worldwide spread of the COVID-19 virus. However,
the Company is actively monitoring this situation and the possible effects on its financial condition, operations, suppliers, industry,
and workforce.
Use
of Estimates and Assumptions
Preparation
of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions
that affect certain 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 period. Accordingly, 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.
Earnings
(Loss) per Common Share
The
basic earnings (loss) per common share is calculated by dividing the Company’s net income (loss) available to common shareholders
by the weighted average number of common shares during the period. The diluted earnings (loss) per share is calculated by dividing the
Company’s net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during
the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially
dilutive debt or equity. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive
items in the Company. As of August 31, 2022, there were no common stock equivalents outstanding.
Income
Taxes
The
Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences between the financial statement carrying mounts of existing
assets and liabilities and their respective tax balances and tax loss carryforwards. Deferred tax assets and liabilities are measured
using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the date of enactment or substantive enactment.
Recent
Accounting Standards
The
Company does not expect the adoption of any recent accounting standards to have a material impact on its financial statements.
Subsequent
Events
The
Company has evaluated subsequent events through the date the financial statements were issued for disclosure purposes. No events have
occurred subsequent to balance sheet date and through date of this filing that would require adjustment to or disclosure in the financial
statements.
NOTE
2 – GOING CONCERN
To
date the Company has generated no revenues from its business operations and has incurred operating losses since inception. As at August
31, 2022, the Company has a working capital deficit of $925,234 and has reported an accumulated deficit of $4,191,987. The Company requires
additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as
a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly,
these factors raise substantial doubt as to the Company’s ability to continue as a going concern for a period of 12 months from
the issue date of these financials. The Company intends to continue to fund its business by way of private placements and advances from
related parties as may be required. These financial statements do not include any adjustments relating to the recoverability and classification
of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.
NOTE
3 – RELATED PARTY TRANSACTIONS
During
the nine months ended August 31, 2022, the Company owes $45,960 to CEO for management fees of $37,500 plus audit fees of $6850 and SEC
filing fees of $1,610. During nine-month period ended August 31, 2021, the Company owes CEO Leonard Stella $37,500 for management
fees. The total amount owing to the Company’s current CEO as of August 31, 2022 was $883,944 and $837, 984 as of November
30, 2021. The balances due are unsecured and non-interest-bearing with no set terms of repayment.
NOTE
4 – EQUITY
The
Company has 80,000,000 preferred shares authorized with a par value of $0.0001 that are non-voting in terms of rights. The
Company has 260,000,000 common shares authorized with a par value of $0.0001 per share.
There
are 244,038,890 common shares issued and outstanding as of August 31, 2022 which are voting in terms of rights and August 31, 2021, respectively.
Common shares have been issued and paid in amount of $24,403 at par value since inception.
