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Document and Entity Information

v2.4.0.6
Document and Entity Information (USD $)
12 Months Ended
May 31, 2012
Sep. 04, 2012
Nov. 30, 2011
Document And Entity Information      
Entity Registrant Name ON-AIR IMPACT, INC.    
Entity Central Index Key 0001493174    
Document Type 10-K    
Document Period End Date May 31, 2012    
Amendment Flag false    
Current Fiscal Year End Date --05-31    
Is Entity a Well-known Seasoned Issuer? No    
Is Entity a Voluntary Filer? No    
Is Entity's Reporting Status Current? Yes    
Entity Filer Category Smaller Reporting Company    
Entity Public Float     $ 0
Entity Common Stock, Shares Outstanding   10,142,500  
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2012    

Balance Sheets

v2.4.0.6
Balance Sheets (USD $)
May 31, 2012
May 31, 2011
Current assets    
Cash $ 1,589 $ 2,882
Total current assets 1,589 2,882
Total assets 1,589 2,882
LIABILITIES AND STOCKHOLDERS' DEFICIT    
Accounts payable 8,500 3,740
Due to related party 6,226 4,196
Total current liabilities 14,726 7,936
Stockholders' deficit    
Preferred stock, $.0001 par value, authorized 10,000,000 shares, none issued      
Common stock, $.0001 par value, authorized 100,000,000 shares; 10,142,500 and $10,005,000 issued and outstanding 1,014 1,000
Additional paid-in capital 23,236 9,500
Deficit accumulated during the development stage (37,387) (15,554)
Total stockholders' deficit (13,137) (5,054)
Total liabilities and stockholders' deficit $ 1,589 $ 2,882

Balance Sheets (Parenthetical)

v2.4.0.6
Balance Sheets (Parenthetical) (USD $)
May 31, 2012
May 31, 2011
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 10,142,500 10,005,000
Common stock, shares outstanding 10,142,500 10,005,000

Statements of Operations

v2.4.0.6
Statements of Operations (USD $)
12 Months Ended 24 Months Ended
May 31, 2012
May 31, 2011
May 31, 2012
Income Statement [Abstract]      
Revenue         
Cost of goods sold         
Gross profit         
General and administrative expenses 21,833 15,034 37,387
Net loss $ (21,833) $ (15,034) $ (37,387)
Weighted average number of common shares outstanding (basic and fully diluted) 10,134,235 7,698,904 8,758,832
Basic and diluted (loss) per common share $ 0.0 $ 0.0 $ 0.0

Statement of Stockholders’ Deficit

v2.4.0.6
Statement of Stockholders’ Deficit (USD $)
Common Stock
Additional Paid-In Capital
Deficit Accumulated During the Development Stage
Stock Subscription Receviable
Total
Balance at May. 25, 2010          
Issuance of common stock for subscription $ 500 $ 4,500   $ (5,000)   
Issuance of common stock for subscription, shares 5,000,000        
Net loss     (520)   (520)
Balance at May. 31, 2010 500 4,500 (520) (5,000) (520)
Balance, shares at May. 31, 2010 5,000,000        
Proceeds received from stock subscription       5,000 5,000
Issuance of common stock for cash 500 4,500     5,000
Issuance of common stock for cash, shares 5,000,000        
Issuance of common stock for services   500     500
Issuance of common stock for services, shares 5,000        
Net loss     (15,034)   (15,034)
Balance at May. 31, 2011 1,000 9,500 (15,554)    (5,054)
Balance, shares at May. 31, 2011 10,005,000       10,005,000
Issuance of common stock for cash 14 13,736     13,750
Issuance of common stock for cash, shares 137,500        
Net loss     (21,833)   (21,833)
Balance at May. 31, 2012 $ 1,014 $ 23,236 $ (37,387)    $ (13,137)
Balance, shares at May. 31, 2012 10,142,500       10,142,500

Statements of Cash Flows

v2.4.0.6
Statements of Cash Flows (USD $)
12 Months Ended 24 Months Ended
May 31, 2012
May 31, 2011
May 31, 2012
Cash flows from operating activities      
Net loss $ (21,833) $ (15,034) $ (37,387)
Adjustments to reconcile net (loss) to net cash used in operating activities:      
Stock issued for services    500 500
Changes in operating assets and liabilities:      
Prepaid expenses         
Accounts payable 4,760 3,220 8,500
Net cash used in operating activities (17,073) (11,314) (28,387)
Cash flows from financing activities      
Proceeds from issuance of common stock 13,750 5,000 23,750
Proceeds received from stock subscription   5,000   
Proceeds from related party advances 2,030 4,196 6,226
Net cash provided by financing activities 15,780 14,196 29,976
Net increase (decrease) in cash (1,293) 2,882 1,589
Cash - beginning of period 2,882      
Cash - end of period 1,589 2,882 1,589
Supplemental disclosure of cash flow information:      
Taxes paid 2,041 780 2,821
Interest paid         

Nature of Operations

v2.4.0.6
Nature of Operations
12 Months Ended
May 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations

 

Note 1 Nature of Operations

 

Nature of Operations

 

On-Air Impact, Inc. (“the Company”) was incorporated in State of Nevada on May 26, 2010. The Company is a development stage consulting company intending to serve the sports and entertainment industry.

Summary of Significant Accounting Policies

v2.4.0.6
Summary of Significant Accounting Policies
12 Months Ended
May 31, 2012
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

 

Note 2 Summary of Significant Accounting Policies

 

Development Stage

 

The Company’s financial statements are presented as those of a development stage enterprise. Activities during the development stage primarily include equity based financing and further implementation of the business plan. The Company has not generated any revenues since inception.

 

Risks and Uncertainties

 

The Company’s operations may be subject to significant risk and uncertainties including financial, operational, regulatory and other risks associated with a development stage company, including the potential risk of business failure. Also, see Note 3 regarding going concern matters.

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes.

 

Such estimates and assumptions impact, among others, the following: the fair value of share-based payments, estimates of the probability and potential magnitude of contingent liabilities and the valuation allowance for deferred tax assets due to continuing and expected future operating losses.

 

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from estimates.

 

Cash and Cash Equivalents

 

The Company maintains cash balances in a non-interest bearing account that currently does not exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. As of May 31, 2012 and 2011, there were no cash equivalents.

 

Fair Value of Financial Instruments

 

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

 

The following are the hierarchical levels of inputs to measure fair value:

 

  Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

  Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

  Level 3: Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

  

The Company’s financial instruments consisted primarily of accounts payable and due to related party. The carrying amounts of the Company’s financial instruments generally approximated their fair values as of May 31,2012 and 2011,respectively, due to the short-term nature of these instruments.


Earnings(loss) per share

 

Basic earnings per share (“EPS”) is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. Diluted EPS excludes all dilutive potential of shares of common stock if their effect is anti-dilutive.

 

Share Based Payments

 

Generally, all forms of share-based payments, including stock option grants, warrants, restricted stock grants and stock appreciation rights, are measured at their fair value on the awards’ grant date, and based on the estimated number of awards that are ultimately expected to vest. Share-based payment awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. The expense resulting from share-based payments are recorded as a component of general and administrative expense.

 

Income Taxes

 

The Company recognizes deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized.

 

Accounting guidance now codified as FASB ASC Topic 740-20, “Income Taxes – Intraperiod Tax Allocation,” clarifies the accounting for uncertainties in income taxes recognized in accordance with FASB ASC Topic 740-20 by prescribing guidance for the recognition, de-recognition and measurement in financial statements of income tax positions taken in previously filed tax returns or tax positions expected to be taken in tax returns, including a decision whether to file or not to file in a particular jurisdiction. FASB ASC Topic 740-20 requires that any liability created for unrecognized tax benefits is disclosed. The application of FASB ASC Topic 740-20 may also affect the tax bases of assets and liabilities and therefore may change or create deferred tax liabilities or assets. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. As of May 31, 2012 and 2011, the Company did not record any liabilities for uncertain tax positions.

 

Recent Accounting Pronouncements

 

There are no recent accounting pronouncements that are expected to have an effect on the Company’s financial statements. 

Going Concern

v2.4.0.6
Going Concern
12 Months Ended
May 31, 2012
Risks and Uncertainties [Abstract]  
Going Concern

 

Note 3 Going Concern

 

As reflected in the accompanying financial statements, the Company has a net loss of $21,833 and net cash used in operations of $17,073 for the year ended May 31, 2012. The Company is in the development stage and has not generated revenues since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

The ability of the Company to continue its operations is dependent on Management’s plans, which may include the raising of capital through debt and/or equity markets with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. The Company may need to incur liabilities with certain related parties to sustain the Company’s existence.

 

The Company will require additional funding to finance the growth of its current and expected future operations as well as to achieve its strategic objectives. The Company believes its current available cash along with anticipated revenues may be insufficient to meet its cash needs for the near future. There can be no assurance that financing will be available in amounts or terms acceptable to the Company, if at all. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

 

These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

 

 

Related Party Transactions

v2.4.0.6
Related Party Transactions
12 Months Ended
May 31, 2012
Related Party Transactions [Abstract]  
Related Party Transactions

Note 4 Related Party Transactions

 

Loan payable

 

Since inception, the Company received an advance from the Company’s Chief Executive Officer of $6,226. These advances are non interest bearing, unsecured and due on demand.

 

Rent services

 

During the years ended May 31, 2012 and 2011, office space was provided by the Company’s Chief Executive Officer, free of charge. The amount of rent would be nominal.

Stockholder’s Deficit

v2.4.0.6
Stockholder’s Deficit
12 Months Ended
May 31, 2012
Stockholders' Equity Note [Abstract]  
Stockholder’s Deficit

 

Note 5 Stockholder’s Deficit

 

On May 25, 2010, the Company issued 5,000,000 shares of common stock to its Chief Executive Officer for a stock subscription receivable of $5,000 ($0.0001/share). The $5,000 was received in 2011.

 

On December 8, 2010, the Company issued 5,000,000 shares of common stock to its Chief Executive Officer for $5,000 ($0.0001/share).

 

On May 19, 2011, the Company issued 5,000 shares of common stock to a consultant, in exchange for services rendered, having a fair value of $500 ($0.10/share), based upon the fair value of the services rendered.

 

On June 22, 2011, the Company issued 137,500 shares of common stock during its initial public offering for an aggregate of $13,750 ($0.10/share).

Income Taxes

v2.4.0.6
Income Taxes
12 Months Ended
May 31, 2012
Income Tax Disclosure [Abstract]  
Income Taxes

Note 6 Income Taxes

 

The Company recognized deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. The Company will establish a valuation allowance to reflect the likelihood of realization of deferred tax assets.

 

The Company has net operating loss carryforwards for tax purposes totaling approximately $37,000 as of May 31, 2012, expiring through 2032. There is a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). There are no signifiant temporary or permanent timing differences other than the following:

 

Significant deferred tax assets at May 31, 2012 and 2011 are approximately as follows:

 

    2012     2011  
Gross deferred tax assets:                
Net operating loss carryforwards   $ 37,387     $ 15,554  
Total deferred tax assets     14,207       5,911  
Less: valuation allowance     (14,207 )     (5,911 )
Net deferred tax asset recorded   $ -     $ -  

 

The valuation allowance at May 31, 2011 was $5,911. The net change in valuation allowance during the year ended May 31, 2012 was an increase of approximately $8,296. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not, that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of May 31, 2012 and 2011, respectively.

 

Reconciliation of Income Tax Rates:

 

Federal tax rate     34 %
State Tax - Net of Federal Tax benefit     4 %
      38 %
Valuation Allowance     (38 )%

 

 

 

 

 

 

Subsequent Events

v2.4.0.6
Subsequent Events
12 Months Ended
May 31, 2012
Subsequent Events [Abstract]  
Subsequent Events

Note 7 Subsequent Events

 

As of September 4, 2012, the date the audited financial statements were available to be issued, there are no subsequent events that are required to be recorded or disclosed in the accompanying financial statements.