Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. Vansen Pharma Inc. (1378076) 10-Q published on Dec 04, 2013 at 1:24 pm
Reporting Period: Sep 29, 2013
Vansen Pharma Inc. (formerly Okana Ventures, Inc.) (the “Company”) was incorporated on May 9, 2005 in Nevada. On August 7, 2013, the Company incorporated Vansen Pharma Inc., which became a wholly-owned subsidiary of the Company. On August 14, 2013, the Company merged with Vansen Pharma Inc., a wholly-owned subsidiary of the Company, for the purposes of changing its operating name from Okana Ventures, Inc. to Vansen Pharma Inc. The Company is a sales and marketing organization focused on specialty pharmaceutical products. The Company sells its anti-infective products to major wholesalers and pharmacy chains.
The preparation of these financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the 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 reporting period. Our company regularly evaluates estimates and assumptions related to the collectability of accounts receivable, valuation of inventory, useful life and recoverability of intangible assets, valuation of convertible debentures, assumptions used to determine the fair value of stock-based compensation and derivative liabilities, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by our company may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Financial Instruments and Fair Value Measures ASC 820, Fair Value Measurements, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
Our company’s financial instruments consist principally of cash, accounts receivable, note receivable, accounts payable and accrued liabilities, provision for product returns, notes payable, and convertible debentures. Pursuant to ASC 820, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets and the fair value of derivative liabilities is determined based on “Level 2” inputs. We believe that the recorded values of all of our other financial instruments, except for convertible debentures and notes payable, approximate their current fair values because of their nature and respective maturity dates or durations. The fair values of convertible debentures and notes payable are estimated to approximate their carrying values based on borrowing rates currently available to our company for loans with similar terms.