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Document and Entity Information

v2.4.0.6
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2012
Apr. 01, 2013
Jun. 30, 2012
Document And Entity Information      
Entity Registrant Name Dignyte, Inc.    
Entity Central Index Key 0001550020    
Document Type 10-K    
Document Period End Date Dec. 31, 2012    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
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   10,315,000  
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2012    

Balance Sheets

v2.4.0.6
Balance Sheets (USD $)
Dec. 31, 2012
Dec. 31, 2011
CURRENT ASSETS    
Restricted cash $ 26,000   
TOTAL CURRENT ASSETS 26,000   
TOTAL ASSETS 26,000 0
CURRENT LIABILITIES    
Accounts Payable-Related Party 19,702 2,875
Accounts Payable 7,697 1,750
TOTAL CURRENT LIABILITIES 27,399 4,625
STOCKHOLDERS' EQUITY    
Preferred stock, authorized, 10,000,000 shares, $.001 par value, 0 shares issued and outstanding      
Common stock, authorized, 100,000,000 shares, $.001 par value, 10,000,000 shares issued and outstanding 10,000 10,000
Shares to be Issued 26,000   
Stock subscription receivable    (3,333)
Accumulated Deficit (during development stage) (37,399) (11,292)
Total Stockholders' Equity (1,399) (4,625)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 26,000 $ 0

Balance Sheets (Parenthetical)

v2.4.0.6
Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Statement of Financial Position [Abstract]    
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 100,000,000 100,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares issued 10,000,000 10,000,000
Common stock, shares outstanding 10,000,000 10,000,000

Statements of Operations

v2.4.0.6
Statements of Operations (USD $)
12 Months Ended 21 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Income Statement [Abstract]      
TOTAL REVENUES         
EXPENSES      
General and administrative 2,982 875 3,857
Professional Fees 23,063 10,417 33,480
Total Operating Expenses 26,045 11,292 37,337
OTHER INCOME (EXPENSE)      
Interest Expense (12)    (12)
Total Other Income (Expense) (12)    (12)
Net Income before Income Taxes (26,057) (11,292) (37,349)
Income Tax Expense (50)    (50)
NET LOSS $ (26,107) $ (11,292) $ (37,399)
BASIC AND DILUTED LOSS PER COMMON SHARE $ (0.01) $ (0.01) $ (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED 10,000,000 10,000,000 10,000,000

Statement of Shareholders' Deficit

v2.4.0.6
Statement of Shareholders' Deficit (USD $)
Common Shares [Member]
Shares To Be Issued [Member]
Stock Subscription Receivable [Member]
Deficit Accumulated During The Development Stage [Member]
Total
Balance at Apr. 06, 2011               
Balance, shares at Apr. 06, 2011           
Issuance of common stock 10,000       10,000
Issuance of common stock, shares 10,000,000        
Stock Subscription Receivable     (3,333)   (3,333)
Net Loss       (11,292) (11,292)
Balance at Dec. 31, 2011 10,000    (3,333) (11,292) (4,625)
Balance, shares at Dec. 31, 2011 10,000,000        
Shares to be Issued   26,000     26,000
Stock Subscription Receivable     3,333   3,333
Net Loss       (26,107) (26,107)
Balance at Dec. 31, 2012 $ 10,000 $ 26,000    $ (37,399) $ (1,399)
Balance, shares at Dec. 31, 2012 10,000,000        

Statements of Cash Flows

v2.4.0.6
Statements of Cash Flows (USD $)
12 Months Ended 21 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
OPERATING ACTIVITIES      
Net Loss $ (26,107) $ (11,292) $ (37,399)
Adjustments to reconcile from Net Loss to net cash used in operating activities      
Services received to settle subscription receivable 3,333 6,667 10,000
Changes in operating assets and liabilities      
Accounts payable-related party 16,827 2,875 19,702
Accounts payable 5,947 1,750 7,697
Net cash used in operating activities 0 0 0
Cash Flows form Financing Activities      
Restricted cash (26,000)    (26,000)
Proceeds from shares to be Issued 26,000    26,000
Net cash provided by financing activities 0   0
NET INCREASE IN CASH 0 0 0
CASH, BEGINNING OF PERIOD         
CASH, END OF PERIOD         
SUPPLEMENTAL INFORMATION      
Cash paid for income taxes         
Cash paid for interest         

The Company

v2.4.0.6
The Company
12 Months Ended
Dec. 31, 2012
Company  
The Company

Note 1. The Company

 

The Company and Nature of Business

 

Dignyte, Inc.(“Dignyte” or the “Company”), was incorporated in the State of Nevada on April 7, 2011, to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company has been in the developmental stage since inception and has no operations to date. Other than issuing shares to its original shareholder, the Company never commenced any operational activities.

Summary of Significant Accounting Policies

v2.4.0.6
Summary of Significant Accounting Policies
12 Months Ended
Dec. 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 statements of a development stage enterprise. Activities during the development stage primarily include related party equity-based and or equity financing. The Company has not commenced any significant operations and, in accordance with ASC Topic 915, the Company is considered a development stage company.

 

Basis of Presentation

 

These financial statements have been prepared to reflect the financial position, results of operations and cash flows of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, accompanying financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these good faith estimates and judgments.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

 

Restricted Cash

 

As of December 31, 2012, the Company has $26,000 in cash equivalents in escrow from the sale of stock to be issued.

 

Income Taxes

 

The Company accounts for income taxes under FASB ASC 740-10-30. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all of the benefits of deferred tax assets will not be realized.

 

Recent Pronouncements

 

From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption.

 

Fair Value of Financial Instruments

 

The Company’s financial instruments consist of cash and accounts payable. The carrying amount of cash and accounts payable approximates fair value because of the short-term nature of these items.

Going Concern

v2.4.0.6
Going Concern
12 Months Ended
Dec. 31, 2012
Going Concern  
Going Concern

Note 3. Going Concern

 

The report of our independent registered public accounting firm on the financial statements for the year ended December 31, 2012, includes an explanatory paragraph indicating substantial doubt as to our ability to continue as a going concern. For the year ended December 31, 2012, the Company has no revenues and no operations and had not emerged from the development stage. The Company has an accumulated loss of $37,399. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to find a suitable merger or acquisition company. There are no assurances that management will find a capable company for its purposes. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities 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 financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

Income Taxes

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

Note 4. Income Taxes

 

The Company utilizes the liability method of accounting for income taxes. Under the liability method deferred tax assets and liabilities are determined based on the differences between financial reporting basis and the tax basis of the assets and liabilities and are measured using enacted tax rates and laws that will be in effect, when the differences are expected to reverse. An allowance against deferred tax assets is recognized, when it is more likely than not, that such tax benefits will not be realized.

 

The provision for income taxes consists of the following as of December 31, 2012 and 2011:

 

    12/31/2012     12/31/2011  
Current Tax                
Federal   $ -     $ -  
State     -       -  
Deferred Tax                
Federal     (13,090 )     (3,934 )
Benefits of operating loss carry forwards     13,090       3,934  
State     (50 )     -  
Total Provision     (50 )     -  

 

Any deferred tax asset is considered immaterial and has been fully offset by a valuation allowance because at this time the Company believes that it is more likely than not that the future tax benefit will not be realized as the Company has no current operations.

 

    12/31/2012     12/31/2011  
Deferred Tax Assets                
Current   $ -     $ -  
Noncurrent                
Net operating losses     13,090       3,934  
Total noncurrent   $ 13,090     $ 3,934  
Valuation Allowance     (13,090 )     (3,934 )
Net Deferred Taxes   $ -     $ -  

 

The Company’s provision for income taxes was $0 for the year ended December 31, 2012 since the Company incurred net operating losses since inception that have a full valuation allowance through December 31, 2012. The Company’s net federal operating loss carry forward of approximately $37,399 begins to expire in 2031.

 

Operating Losses  
Expires     Amount  
  2031       11,241  
  2032       26,158  

 

ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The total deferred tax asset is calculated by multiplying a 35% marginal tax rate by the cumulative Net Operating Loss (“NOL”) of $37,399. The total valuation allowance is equal to the total deferred tax asset of $13,090, showing an increase of $9,156 from the year ended December 31, 2011.

 

A reconciliation between income taxes at statutory tax rates (35%) and the actual income tax provision for continuing operations as of December 31, 2012 and 2011 is as follows:

 

    12/31/2012     12/31/2011  
             
Expected provision (based on statutory rate)   $ (9,138 )   $ (3,934 )
Effect of:                
Increase in valuation allowance     9 ,156       3,934  
State minimum tax, net of federal benefit     (18 )     -  
Non-deductible expenses     -       -  
Other     (50 )     -  
Actual provision   $ (50 )   $ -  

 

The Company has not made any adjustments to deferred tax assets or liabilities. The Company did not identify any material uncertain tax positions of the Company on returns that have been filed or that will be filed. The Company has not had operations and has deferred items consisting entirely of unused Net Operating Losses as disclosed above. Since it is not thought that this Net Operating Loss will ever produce a tax benefit, even if examined by taxing authorities and disallowed entirely, there would be no effect on the financial statements.

 

The Company’s policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended December 31, 2012 and 2011, the Company did not recognize any interest or penalties, nor did we have any interest or penalties accrued as of December 31, 2012 and 2011 related to unrecognized benefits.

 

The Company has filed for an extension of the federal income tax return in the U.S for the year ended December 31, 2012. The tax years ended December 31, 2012 and 2011 are open for examination for federal income tax purposes and by other major taxing jurisdictions to which we are subject.

Subscription Receivable - Related Party

v2.4.0.6
Subscription Receivable - Related Party
12 Months Ended
Dec. 31, 2012
Related Party Transactions [Abstract]  
Subscription Receivable - Related Party

Note 5. Subscription Receivable – Related Party

 

On the date of inception (April 7, 2011) the President and director, a related party, executed and delivered a promissory note in favor of the Company in the principal amount of $10,000 in payment of the subscription funds for the 10,000,000 shares of common stock. The promissory note is payable on demand and bears interest at 0% until April 7, 2013, and, thereafter, requires the payment of 5% interest on the outstanding balance on an annual basis. The note receivable was repaid through consulting services performed by the related party. For the year ended December 31, 2012, the value of these services was $10,000 with the total of the note receivable to the Company being $0.

Accounts Payable-Related Party

v2.4.0.6
Accounts Payable-Related Party
12 Months Ended
Dec. 31, 2012
AccountsPayableRelatedPartyAbstract  
Accounts Payable-Related Party

Note 6. Accounts Payable-Related Party

 

During the period from inception (April 7, 2011) to December 31, 2012, a related party, a company in which the Secretary-Treasurer and CFO of the Company is also serving as CFO, has paid $19,702 on behalf of the Company and the same is outstanding as of the year ended December 31, 2012.

Preferred and Common Stock

v2.4.0.6
Preferred and Common Stock
12 Months Ended
Dec. 31, 2012
Equity [Abstract]  
Preferred and Common Stock

Note 7. Preferred and Common Stock

 

Preferred Stock

 

The total number of shares of preferred stock which the Company shall have authority to issue is 10,000,000 shares with a par value of $0.001. There have been no preferred shares issued as of the year ended December 31, 2012.

 

Common Stock

 

The total number of shares of common stock which the Company shall have authority to issue is 100,000,000 shares with a par value of $0.001. At inception on April 7, 2011, the Company issued 10,000,000 shares for the value of $10,000 (received by way of a demand promissory note in the principal amount of ten thousand dollars payable by Mr. McRobbie-Johnson to the Company). As noted in Note 5 above, this promissory note has been repaid through consulting services performed by Mr. McRobbie-Johnson.

 

As of the year ended December 31, 2012, the Company has 10,000,000 shares of $0.001 par value common stock issued and outstanding.

 

Holders of shares of common stock are entitled to cast one vote for each share held at all stockholders’ meetings for all purposes including the election of directors. The common stock does not have cumulative voting rights.

 

No holder of shares of stock of any class is entitled as a matter of right to subscribe for or purchase or receive any part of any new or additional issue of shares of stock of any class or of securities convertible into shares of stock of any class, whether now hereafter authorized or whether issued for money, for consideration other than money, or by way of dividend.

 

During the year ended December 31, 2012, the Company sold 260,000 shares of common stock at $0.10 per share. Per the S-1 filing, the funds from these sales have been deposited in the escrow bank account.

 

These shares are reported as “Shares to be Issued” on the balance sheet and statement of stockholders’ deficit as of December 31, 2012.

Commitments, Contingencies

v2.4.0.6
Commitments, Contingencies
12 Months Ended
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Contingencies

Note 8. Commitments, Contingencies

 

The President and director of the Company is involved in other business activities and may, in the future, become involved in other business opportunities that become available. He may face a conflict in selecting between the Company and other business interests. The Company has not formulated a policy for the resolution of such conflicts.

 

The Company does not own or lease property or lease office space. The office space used by the Company was arranged by the President and director of the Company to use at no charge.

 

From time to time the Company may become a party to litigation matters involving claims against the Company. Management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations.

Subsequent Events

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

Note 9. Subsequent Events

 

On March 4, 2013, the Company received $2,500 for purchase of 25,000 shares. These shares were issued on March 27, 2013.

 

On March 14, 2013, the Company issued 260,000 shares of common stock pursuant to subscription agreements for cash of $26,000. This value is reported as “Shares to be Issued” on the balance sheet as of December 31, 2012.

 

On March 19, 2013, the Company received $3,000 for purchase of 30,000 shares. These shares were issued on March 27, 2013.