Company: STRG
Filing Date: 2025-06-12
Form Type: 10-Q
Source: 0001640334-25-001011
Chunk: 7

Company: STARGUIDE GROUP, INC.
Filing Date: 2025-06-12
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements. The estimated fair value of certain financial instruments, including accounts payable and accrued liabilities. are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 -quoted prices in active markets for identical assets or liabilities  Level 2 -quoted prices for similar assets and liabilities in active markets or inputs that are observable  Level 3 -inputs that are unobservable (for example cash flow modeling inputs based on assumptions) Revenue Recognition The Company recognizes revenue in accordance with ASC 606,”Revenue Recognition” following the five steps procedure: Step 1: Identify the contract(s) with customers Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to performance obligations Step 5: Recognize revenue when the entity satisfies a performance obligation The Company’s revenue derives from software product sales, advertising and direct product sales. During the three months ended April 30, 2025 and 2024, the Company recognized gross revenue of $0 and $108 and incurred cost of sales of $0 and $34, resulting in gross profit of $0 and $74, respectively.

 9Table of Contents

Plant and Equipment Plant and equipment are stated at cost. Depreciation is computed using the straight-line method. The depreciation and amortization methods are designed to amortize the cost of the assets over their estimated useful lives, in years, of the respective assets as follows: Office Equipment 3 years   Computer Equipment 5 years