Rendering
Component: (Network and Table) |
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Network | 0017 - Disclosure - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (Policies) (http://abtbiomedical.com/role/SummaryOfSignificantAccountingPoliciesAndOrganizationPolicies) |
Table | (Implied) |
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis] | 0001385799 (http://www.sec.gov/CIK) |
Accounting Policies [Abstract] | Period [Axis] |
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2011-11-01 - 2012-10-31 |
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Accounting Policies [Abstract] | |
Organization | Advanced Biomedical Technologies, Inc.
(fka Geostar Mineral Corporation or Geostar) (ABMT) was incorporated in Nevada on September
12, 2006 .
Shenzhen Changhua Biomedical Engineering
Co.,Ltd. (Shenzhen Changhua) was incorporated in the Peoples Republic of China (PRC) on September
25, 2002 as a limited liability company with a registered capital of $724,017. Shenzhen Changhua is owned by two stockholders in
the proportion of 70% and 30% respectively. Shenzhen Changhua plans to develop, manufacture and market self-reinforced, re-absorbable
degradable PA screws, robs and binding ties for fixation on human fractured bones. The Company is currently conducting clinical
trials on its products and intends to raise additional capital to produce and market its products commercially pending the approval
from the State Food and Drug Administration (SFDA) of the PRC on its products. The Company has no revenue since its
inception and, in accordance with Accounting Standards Codification (ASC) Topic 915, Development Stage Entities,
is considered a Development Stage Company.
Masterise Holdings Limited (Masterise)
was incorporated in the British Virgin Islands on 31 May, 2007 as an investment holding company. Masterise is owned as to 63% by
the spouse of Shenzhen Changhuas 70% majority stockholder and 37% by a third party corporation.
On January 29, 2008, Masterise entered
into a Share Purchase Agreement (the Agreement) with a stockholder of Shenzhen Changhua whereupon Masterise acquired
70% of Shenzhen Changhua for US$64,100 in cash. The acquisition was completed on February 25, 2008. As both Masterise and Shenzhen
Changhua are under common control and management, the acquisition was accounted for as a reorganization of entities under common
control. Accordingly, the operations of Shenzhen Changhua were included in the consolidated financial statements as if the transactions
had occurred retroactively.
On December 31, 2008, ABMT consummated
a Share Exchange Agreement (the Exchange Agreement) with the stockholders of Masterise pursuant to which Geostar
issued 50,000 shares of Common Stock to the stockholders of Masterise for 100% equity interest in Masterise.
Concurrently, on December 31, 2008, a
major stockholder of ABMT also consummated an Affiliate Stock Purchase Agreement (the Affiliate Agreement) with thirteen
individuals including all the stockholders of Masterise, pursuant to which the major stockholder sold a total of 5,001,000 shares
of ABMTs common stock for a total aggregate consideration of $5,000, including 4,438,250 shares to the stockholders of Masterise.
On consummation of the Exchange Agreement
and the Affiliate Agreement, the 70% majority stockholder of Masterise became a 80.7% stockholder of ABMT.
On March 13, 2009, the name of the Company
was changed from Geostar Mineral Corporation to Advanced Biomedical Technologies, Inc.
The merger of ABMT and Masterise was
treated for accounting purposes as a capital transaction and recapitalization by Masterise (the accounting acquirer)
and a re-organization by ABMT (the accounting acquiree). The financial statements have been prepared as if the re-organization
had occurred retroactively.
Accordingly, these financial statements
include the following:
|
(1) |
The balance sheet consisting of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost. |
|
(2) |
The statement of operations including the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the transaction. |
ABMT, Masterise and Shenzhen Changhua are hereinafter referred
to as (the Company) |
Principles of consolidation |
The accompanying consolidated financial
statements include the financial statements of ABMT and its wholly owned subsidiaries, Masterise and its 70% owned subsidiary,
Shenzhen Changhua. The non-controlling interests in prior periods represent the non-controlling stockholders 30% proportionate
share of the results of Shenzhen Changhua.
All significant inter-company balances
and transactions have been eliminated in consolidation.
|
Use of estimates |
The preparation of the financial statements
in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions
that affect the reported amount 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. Actual results could differ
from those estimates.
|
Cash and cash equivalents |
For purpose of the statements of cash
flows, cash and cash equivalents include cash on hand and demand deposits with a bank with a maturity of less than three months.
As of October 31, 2012 and 2011, all the cash and cash equivalents were denominated in United States Dollars (US$),
Hong Kong Dollars (HK$) and Renminbi (RMB) and were placed with banks in the United States of America,
Hong Kong and PRC. Balances at financial institutions or state-owned banks within the PRC are not freely convertible
into foreign currencies and the remittance of these funds out of the PRC is subject to exchange control restrictions imposed by
the PRC government.
|
Property and equipment |
Property and equipment are stated at
cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures
for maintenance and repairs are charged to expense as incurred.
Depreciation is provided on a straight-line
basis, less estimated residual value over the assets estimated useful lives. The estimated useful lives of the assets are 5 years.
|
Long-lived assets |
In accordance with FASB Codification
Topic 360 (ASC Topic 360), Accounting for the impairment or disposal of Long-Lived Assets", long-lived assets and certain
identifiable intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived
assets, the recoverability test is performed using undiscounted net cash flows related to the long- lived assets. The Company reviews
long-lived assets to determine that carrying values are not impaired.
|
Fair value of financial instruments |
FASB Codification Topic 825 (ASC Topic 825), "Disclosure
About Fair Value of Financial Instruments," requires certain disclosures regarding the fair value of financial instruments.
The carrying amounts of other receivables and prepaid expenses, other payables and accrued expenses, due to a stockholder, directors
and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company
is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements.
|
Government Grant | Government grants are recognized when there is reasonable
assurance that the Company complies with any conditions attached to them and the grants will be received.
In April 2011, the Company was informed of approval of one
grant totaling $244,479 under the Qualified Therapeutic Discovery Project Grants Program. The Qualified Therapeutic Discovery Project
Grants Program was included in the healthcare reform legislation, and established a one-time pool of $1 billion for grants to small
biotechnology companies developing novel therapeutics which show potential to: (a) result in new therapies that either treat areas
of unmet medical need, or prevent, detect, or treat chronic or acute diseases and conditions; (b) reduce long-term health care
costs in the United States; or (c) significantly advance the goal of curing cancer within a 30-year period. The grant was received
on May 6, 2011. There are no matching funding requirements or other requirements necessary to receive the funding and, therefore,
the grant was classified as other income in the year ended 31 October 2011. |
Income taxes |
The Company accounts for income taxes
under the FASB Codification Topic 740-10-25 (ASC 740-10-25). Under ASC 740-10-25, deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income
in the period included the enactment date.
|
Research and development |
Research and development costs related to both present and
future products are expensed as incurred. Total expenditure on research and development charged to general and administrative expenses
for the years ended October 31, 2012 and 2011, and for the period from September 25, 2002 (inception) through October 31, 2012
were $117,916, $19,734 and $256,683 respectively.
|
Foreign currency translation |
The reporting currency of the Company
is the US dollar.
ABMT, Masterise and Shenzhen Changhua
maintain their accounting records in their functional currencies of US$, HK$ and RMB respectively.
Foreign currency transactions during
the year are translated to the functional currency at the approximate rates of exchange on the dates of transactions. Monetary
assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the approximate rates of exchange
at that date. Non-monetary assets and liabilities are translated at the rates of exchange prevailing at the time the asset or liability
was acquired. Exchange gains or losses are recorded in the statement of operations.
The financial statements of Masterise
and Shenzhen Changhua (whose functional currency is HK$ and RMB respectively) are translated into US$ using the closing rate method.
The balance sheet items are translated into US$ using the exchange rates at the respective balance sheet dates. The capital and
various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses
items are translated at the average exchange rate for the year. All exchange differences are recorded within equity.
The exchange rates used to translate amounts in HK$ and RMB
into US$ for the purposes of preparing the financial statements were as follows:
|
October 31,2012 |
|
October 31, 2011 |
|
|
|
|
Balance sheet items, except for share capital, additional paid-in capital and accumulated deficits, as of year end |
US$1=HK$7.7494=RMB6.2372 |
|
US$1=HK$7.7641=RMB6.3547 |
|
|
|
|
Amounts included in the statements of operations and cash flows for the year |
US$1=HK$7.7615=RMB6.3283 |
|
US$1=HK$7.7817=RMB6.5119 |
The translation loss recorded for the years ended October
31, 2012 and 2011 and for the period from September 25, 2002 (inception) through October 31, 2012 were $36,081, $65,852 and $215,042
respectively.
No presentation is made that RMB amounts have been, or would
be, converted into US$ at the above rates. Although the Chinese government regulations now allow convertibility of RMB for current
account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations
that RMB could be converted into US$ at that rate or any other rate.
The value of RMB against US$ and other currencies may fluctuate
and is affected by, among other things, changes in Chinas political and economic conditions. Any significant revaluation
of RMB may materially affect the Companys financial condition in terms of US$ reporting.
|
Other comprehensive loss |
The foreign currency translation gain or loss resulting from
translation of the financial statements expressed in RMB and HK$ to US$ is reported as other comprehensive gain (loss) in the statements
of operations and comprehensive loss and in the statement of stockholders deficit. Other comprehensive loss for the years
ended October 31, 2012 and 2011, and for the period from September 25, 2002 (inception) through October 31, 2012, were $36,081,
$65,852 and $215,042 respectively
|
Earnings/(loss) per share |
Basic earnings/(loss) per share are computed by dividing income
available to stockholders by the weighted average number of shares outstanding during the year. Diluted income per share is computed
similar to basic income per share except that the denominator is increased to include the number of additional shares that would
have been outstanding if the potential shares had been issued and if the additional shares were diluted. There were no potentially
dilutive securities for 2012 and 2011.
|
Segments |
The Company operates in only one segment, thereafter segment
disclosure is not presented.
|
Recent Accounting Pronouncements |
There have been no new accounting pronouncements during the
year ended October 31, 2012, that are of significance or potentially significance, to us.
|
The preparation of the financial statements
in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions
that affect the reported amount 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. Actual results could differ
from those estimates.
The Company accounts for income taxes
under the FASB Codification Topic 740-10-25 (ASC 740-10-25). Under ASC 740-10-25, deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income
in the period included the enactment date.
For purpose of the statements of cash
flows, cash and cash equivalents include cash on hand and demand deposits with a bank with a maturity of less than three months.
As of October 31, 2012 and 2011, all the cash and cash equivalents were denominated in United States Dollars (US$),
Hong Kong Dollars (HK$) and Renminbi (RMB) and were placed with banks in the United States of America,
Hong Kong and PRC. Balances at financial institutions or state-owned banks within the PRC are not freely convertible
into foreign currencies and the remittance of these funds out of the PRC is subject to exchange control restrictions imposed by
the PRC government.
The reporting currency of the Company
is the US dollar.
ABMT, Masterise and Shenzhen Changhua
maintain their accounting records in their functional currencies of US$, HK$ and RMB respectively.
Foreign currency transactions during
the year are translated to the functional currency at the approximate rates of exchange on the dates of transactions. Monetary
assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the approximate rates of exchange
at that date. Non-monetary assets and liabilities are translated at the rates of exchange prevailing at the time the asset or liability
was acquired. Exchange gains or losses are recorded in the statement of operations.
The financial statements of Masterise
and Shenzhen Changhua (whose functional currency is HK$ and RMB respectively) are translated into US$ using the closing rate method.
The balance sheet items are translated into US$ using the exchange rates at the respective balance sheet dates. The capital and
various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses
items are translated at the average exchange rate for the year. All exchange differences are recorded within equity.
The exchange rates used to translate amounts in HK$ and RMB
into US$ for the purposes of preparing the financial statements were as follows:
|
October 31,2012 |
|
October 31, 2011 |
|
|
|
|
Balance sheet items, except for share capital, additional paid-in capital and accumulated deficits, as of year end |
US$1=HK$7.7494=RMB6.2372 |
|
US$1=HK$7.7641=RMB6.3547 |
|
|
|
|
Amounts included in the statements of operations and cash flows for the year |
US$1=HK$7.7615=RMB6.3283 |
|
US$1=HK$7.7817=RMB6.5119 |
The translation loss recorded for the years ended October
31, 2012 and 2011 and for the period from September 25, 2002 (inception) through October 31, 2012 were $36,081, $65,852 and $215,042
respectively.
No presentation is made that RMB amounts have been, or would
be, converted into US$ at the above rates. Although the Chinese government regulations now allow convertibility of RMB for current
account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations
that RMB could be converted into US$ at that rate or any other rate.
The value of RMB against US$ and other currencies may fluctuate
and is affected by, among other things, changes in Chinas political and economic conditions. Any significant revaluation
of RMB may materially affect the Companys financial condition in terms of US$ reporting.
The accompanying consolidated financial
statements include the financial statements of ABMT and its wholly owned subsidiaries, Masterise and its 70% owned subsidiary,
Shenzhen Changhua. The non-controlling interests in prior periods represent the non-controlling stockholders 30% proportionate
share of the results of Shenzhen Changhua.
All significant inter-company balances
and transactions have been eliminated in consolidation.
There have been no new accounting pronouncements during the
year ended October 31, 2012, that are of significance or potentially significance, to us.
Advanced Biomedical Technologies, Inc.
(fka Geostar Mineral Corporation or Geostar) (ABMT) was incorporated in Nevada on September
12, 2006 .
Shenzhen Changhua Biomedical Engineering
Co.,Ltd. (Shenzhen Changhua) was incorporated in the Peoples Republic of China (PRC) on September
25, 2002 as a limited liability company with a registered capital of $724,017. Shenzhen Changhua is owned by two stockholders in
the proportion of 70% and 30% respectively. Shenzhen Changhua plans to develop, manufacture and market self-reinforced, re-absorbable
degradable PA screws, robs and binding ties for fixation on human fractured bones. The Company is currently conducting clinical
trials on its products and intends to raise additional capital to produce and market its products commercially pending the approval
from the State Food and Drug Administration (SFDA) of the PRC on its products. The Company has no revenue since its
inception and, in accordance with Accounting Standards Codification (ASC) Topic 915, Development Stage Entities,
is considered a Development Stage Company.
Masterise Holdings Limited (Masterise)
was incorporated in the British Virgin Islands on 31 May, 2007 as an investment holding company. Masterise is owned as to 63% by
the spouse of Shenzhen Changhuas 70% majority stockholder and 37% by a third party corporation.
On January 29, 2008, Masterise entered
into a Share Purchase Agreement (the Agreement) with a stockholder of Shenzhen Changhua whereupon Masterise acquired
70% of Shenzhen Changhua for US$64,100 in cash. The acquisition was completed on February 25, 2008. As both Masterise and Shenzhen
Changhua are under common control and management, the acquisition was accounted for as a reorganization of entities under common
control. Accordingly, the operations of Shenzhen Changhua were included in the consolidated financial statements as if the transactions
had occurred retroactively.
On December 31, 2008, ABMT consummated
a Share Exchange Agreement (the Exchange Agreement) with the stockholders of Masterise pursuant to which Geostar
issued 50,000 shares of Common Stock to the stockholders of Masterise for 100% equity interest in Masterise.
Concurrently, on December 31, 2008, a
major stockholder of ABMT also consummated an Affiliate Stock Purchase Agreement (the Affiliate Agreement) with thirteen
individuals including all the stockholders of Masterise, pursuant to which the major stockholder sold a total of 5,001,000 shares
of ABMTs common stock for a total aggregate consideration of $5,000, including 4,438,250 shares to the stockholders of Masterise.
On consummation of the Exchange Agreement
and the Affiliate Agreement, the 70% majority stockholder of Masterise became a 80.7% stockholder of ABMT.
On March 13, 2009, the name of the Company
was changed from Geostar Mineral Corporation to Advanced Biomedical Technologies, Inc.
The merger of ABMT and Masterise was
treated for accounting purposes as a capital transaction and recapitalization by Masterise (the accounting acquirer)
and a re-organization by ABMT (the accounting acquiree). The financial statements have been prepared as if the re-organization
had occurred retroactively.
Accordingly, these financial statements
include the following:
|
(1) |
The balance sheet consisting of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost. |
|
(2) |
The statement of operations including the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the transaction. |
ABMT, Masterise and Shenzhen Changhua are hereinafter referred
to as (the Company)
The foreign currency translation gain or loss resulting from
translation of the financial statements expressed in RMB and HK$ to US$ is reported as other comprehensive gain (loss) in the statements
of operations and comprehensive loss and in the statement of stockholders deficit. Other comprehensive loss for the years
ended October 31, 2012 and 2011, and for the period from September 25, 2002 (inception) through October 31, 2012, were $36,081,
$65,852 and $215,042 respectively
FASB Codification Topic 825 (ASC Topic 825), "Disclosure
About Fair Value of Financial Instruments," requires certain disclosures regarding the fair value of financial instruments.
The carrying amounts of other receivables and prepaid expenses, other payables and accrued expenses, due to a stockholder, directors
and related parties approximate their fair values because of the short-term nature of the instruments. The management of the Company
is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements.
Property and equipment are stated at
cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures
for maintenance and repairs are charged to expense as incurred.
Depreciation is provided on a straight-line
basis, less estimated residual value over the assets estimated useful lives. The estimated useful lives of the assets are 5 years.
The Company operates in only one segment, thereafter segment
disclosure is not presented.
Research and development costs related to both present and
future products are expensed as incurred. Total expenditure on research and development charged to general and administrative expenses
for the years ended October 31, 2012 and 2011, and for the period from September 25, 2002 (inception) through October 31, 2012
were $117,916, $19,734 and $256,683 respectively.
In accordance with FASB Codification
Topic 360 (ASC Topic 360), Accounting for the impairment or disposal of Long-Lived Assets", long-lived assets and certain
identifiable intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived
assets, the recoverability test is performed using undiscounted net cash flows related to the long- lived assets. The Company reviews
long-lived assets to determine that carrying values are not impaired.
Government grants are recognized when there is reasonable
assurance that the Company complies with any conditions attached to them and the grants will be received.
In April 2011, the Company was informed of approval of one
grant totaling $244,479 under the Qualified Therapeutic Discovery Project Grants Program. The Qualified Therapeutic Discovery Project
Grants Program was included in the healthcare reform legislation, and established a one-time pool of $1 billion for grants to small
biotechnology companies developing novel therapeutics which show potential to: (a) result in new therapies that either treat areas
of unmet medical need, or prevent, detect, or treat chronic or acute diseases and conditions; (b) reduce long-term health care
costs in the United States; or (c) significantly advance the goal of curing cancer within a 30-year period. The grant was received
on May 6, 2011. There are no matching funding requirements or other requirements necessary to receive the funding and, therefore,
the grant was classified as other income in the year ended 31 October 2011.
Basic earnings/(loss) per share are computed by dividing income
available to stockholders by the weighted average number of shares outstanding during the year. Diluted income per share is computed
similar to basic income per share except that the denominator is increased to include the number of additional shares that would
have been outstanding if the potential shares had been issued and if the additional shares were diluted. There were no potentially
dilutive securities for 2012 and 2011.