UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period endedSeptember 30, 20172021
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission File Number:000-55819
STRONG SOLUTIONS, INC.
(Exact name of Registrant as specified in its charter)
Nevada | 38-3942046 | |
(State of incorporation) | (IRS Employer ID Number) |
2/13 Korolenko Str, Kharkov, Ukraine1894 William St., Ste 4 – 250,Carson City, NV89701
(Address of principal executive offices)Principal Executive Offices) Zip Code
011+380-993-87-5414775-434-4451
(Registrant’s telephone number)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common | SGOU | OTC Pinksheets |
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ☒ No ☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ | Accelerated filer ☐ | ||
Non-accelerated filer ☐ | Smaller reporting company ☐ | ||
Emerging Growth Company ☒ | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ ☒ No ☒☐
As of September 30, 2017,2021, there were 5,000,000 shares of our common stock par value $0.001 per shareissued and outstanding.
TABLE OF CONTENTS
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information included in this Quarterly Report on Form 10-Q and other filings of the Registrant under the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as information communicated orally or in writing between the dates of such filings, contains or may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements in this Quarterly Report on Form 10-Q, including without limitation, statements related to our plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from expected results. Among these risks, trends and uncertainties are the availability of working capital to fund our operations, the competitive market in which we operate, the efficient and uninterrupted operation of our computer and communications systems, our ability to generate a profit and execute our business plan, the retention of key personnel, our ability to protect and defend our intellectual property, the effects of governmental regulation, and other risks identified in the Registrant’s filings with the Securities and Exchange Commission from time to time.
In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of such terms or other comparable terminology. Although the Registrant believes that the expectations reflected in the forward-looking statements contained herein are reasonable, the Registrant cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither the Registrant, nor any other person, assumes responsibility for the accuracy and completeness of such statements. The Registrant is under no duty to update any of the forward-looking statements contained herein after the date of this Quarterly Report on Form 10-Q.
TABLE OF CONTENTS
Page No. | ||
PART I – FINANCIAL INFORMATION | ||
1 | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 9 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 11 |
Item 4. | Controls and Procedures | |
PART II – OTHER INFORMATION | ||
Item 1. | Legal Proceedings | |
Item | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | ||
STRONG SOLUTIONS, INC. | ||||||||
BALANCE SHEETS | ||||||||
SEPTEMBER 30,2017, DECEMBER 31,2016 | ||||||||
September 30, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 20,523 | $ | 8,679 | ||||
Accounts Receivable | $ | 0 | $ | 12,300 | ||||
Total Current Assets | $ | 20,523 | $ | 20,979 | ||||
TOTAL ASSETS | $ | 20,523 | $ | 20,979 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accrued Equipment Rent | $ | 1,550 | $ | 1,100 | ||||
Accrued Office Rent | $ | 9,900 | $ | 7,200 | ||||
Accrued Shareholder Salary | $ | 110,000 | $ | 80,000 | ||||
Non-current Liabilities | $ | — | $ | — | ||||
Total Liabilities | $ | 121,450 | $ | 88,300 | ||||
Stockholders' Equity | ||||||||
Common stock, $0.0001 par value; 75,000,000 shares authorized 5,000,000 shares issued and outstanding respectively | $ | 500 | $ | 500 | ||||
Additional paid in capital | $ | 9,500 | $ | 9,500 | ||||
Accumulated deficit | $ | (110,927 | ) | $ | (77,321 | ) | ||
Total Stockholders' Equity | $ | (100,927 | ) | $ | (67,321 | ) | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 20,523 | $ | 20,979 |
The accompanying notes are an integral part of these condensed financial statements.
STRONG SOLUTIONS, INC. | ||||||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 AND SEPTEMBER 30, 2016 | ||||||||||||||||
AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 AND SEPTEMBER 30, 2016 | ||||||||||||||||
For the three months ended September 30, 2017 | For the three months ended September 30, 2016 | For the nine months ended September 30, 2017 | For the ninemonths ended September 30, 2016 | |||||||||||||
Commissions revenue | $ | 3,110 | $ | 3,210 | $ | 8,325 | $ | 8,680 | ||||||||
Operating expenses: | ||||||||||||||||
General and administration expense | $ | 5,054 | $ | 6 | $ | 8,781 | $ | 803 | ||||||||
Equipment rental, office rent and salary expense | $ | 11,050 | $ | 11,050 | $ | 33,150 | $ | 33,150 | ||||||||
Total operating expenses | $ | 16,104 | $ | 11,056 | $ | 41,931 | $ | 33,953 | ||||||||
Net income (loss) from operations before income taxes | $ | (12,994 | ) | $ | (7,846 | ) | $ | (33,606 | ) | $ | (25,273 | ) | ||||
Income tax | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Net income (loss) | $ | (12,994 | ) | $ | (7,846 | ) | $ | (33,606 | ) | $ | (25,273 | ) | ||||
Profit (Loss) per common share | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||
Weights average of shares outstanding | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 |
The accompanying notes are an integral part of these condensed financial statements.
STRONG SOLUTIONS, INC. | ||||||||
STATEMENTS OF CASH FLOWS | ||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 AND SEPTEMBER 30,2016 | ||||||||
For the nine months ended September 30, 2017 | For the nine months Ended September 30, 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (33,606 | ) | $ | (25,273 | ) | ||
Add/deduct items not affecting cash: | ||||||||
(Increase)/Decrease in Accounts Receivable | $ | 12,300 | $ | (8,680 | ) | |||
Increase/(Decrease) in Accounts Payable | $ | 33,150 | $ | 28,220 | ||||
Net cash used in operating activities | $ | 11,844 | $ | (5,733 | ) | |||
Cash flows from investing activities: | ||||||||
Net cash used in investing activities | $ | 0 | $ | 0 | ||||
Cash flows from financing activities: | ||||||||
Net cash provided by financing activities | $ | 0 | $ | 0 | ||||
Net change in cash | $ | 11,844 | $ | (5,733 | ) | |||
Cash, beginning of the period | $ | 8,679 | $ | 14,412 | ||||
Cash, end of the period | $ | 20,523 | $ | 8,679 | ||||
Supplemental Disclosures regarding cash flows information | ||||||||
Interest paid | $ | 0 | $ | 0 | ||||
Income taxes paid | $ | 0 | $ | 0 |
The accompanying notes are an integral part of these condensed financial statements.STRONG SOLUTIONS, INC.
BALANCE SHEETS
(Unaudited)
September 30, 2021 | December 31, 2020 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | - | $ | - | ||||
Total current assets | - | - | ||||||
- | - | |||||||
Assets of discontinued operations | - | 17,457 | ||||||
TOTAL ASSETS | $ | - | $ | 17,457 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued liabilities | 111,894 | - | ||||||
Note payable – related party | 6,956 | - | ||||||
Liabilities of discontinued operations | 146,350 | 143,500 | ||||||
Total current liabilities | 265,201 | 143,500 | ||||||
Commitments and Contingencies | - | - | ||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Common stock, par value $ | per share; shares authorized; and shares issued and outstanding as of September 30, 2021 and December 31, 20204,205 | 3,819 | ||||||
Additional paid in capital | 853,939 | 363,111 | ||||||
Accumulated deficit | (1,123,345 | ) | (492,973 | ) | ||||
Total stockholders’ deficit | (265,201 | ) | (126,043 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | - | $ | 17,457 |
1 |
STRONG SOLUTIONS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
2021 | 2020 | 2021 | 2020 | |||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Operating expenses | ||||||||||||||||
Stock based compensation – related party | - | - | 460,425 | - | ||||||||||||
General and Administrative expenses | 44,896 | - | 147,830 | - | ||||||||||||
Total operating expense | 44,896 | - | 608,255 | - | ||||||||||||
Loss from operations | (44,896 | ) | - | (608,255 | ) | - | ||||||||||
Interest expense | - | - | (6 | ) | - | |||||||||||
Loss from disposition of discontinued operations | - | - | (17,061 | ) | - | |||||||||||
Total other income (expenses) | - | - | (17,067 | ) | - | |||||||||||
Net loss from continuing operations | (44,896 | ) | $ | - | $ | (625,322 | ) | $ | - | |||||||
Net loss from discontinued operations | - | (6,178 | ) | (5,050 | ) | (21,200 | ) | |||||||||
Net loss | $ | (44,896 | ) | $ | (6,178 | ) | $ | (630,372 | ) | $ | (21,200 | ) | ||||
Net loss per common share – basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.00 | ) | ||||
Weighted average common shares outstanding – basic and diluted | 40,551,000 | 37,093,000 | 40,263,810 | 36,293,000 |
2 |
STRONG SOLUTIONS, INC.
STATEMENT OF STOCKHOLDERS’ DEFICIT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
(Unaudited)
Common Stock: Shares | Common Stock: Amount | Additional Paid in Capital | Accumulated Deficit | Totals | ||||||||||||||||
Balance – December 31, 2020 | 38,193,000 | $ | 3,819 | $ | 363,111 | $ | (492,973 | ) | $ | (126,043 | ) | |||||||||
Common stock issued to related party for cash | 526,200 | 53 | 5,147 | 5,200 | ||||||||||||||||
Common stock issued to NV Share Service | ||||||||||||||||||||
Common stock issued to NV Share Service, Shares | ||||||||||||||||||||
Common stock issued to related party for services | 81,800 | 8 | 800 | 808 | ||||||||||||||||
Stock compensation paid to CEO | 750,000 | 75 | 460,425 | 460,500 | ||||||||||||||||
Net loss for the period | - | - | - | (489,327 | ) | (489,327 | ) | |||||||||||||
Balance March 31, 2021 | 39,551,000 | $ | 3,955 | $ | 829,483 | $ | (982,300 | ) | $ | (148,862 | ) | |||||||||
Common stock issued to related party for services | 2,500,000 | 250 | 24,456 | 24,706 | ||||||||||||||||
Net loss for the period | - | - | - | (96,149 | ) | (96,149 | ) | |||||||||||||
Balance June 30, 2021 | 42,051,000 | $ | 4,205 | $ | 853,939 | $ | (1,078,449 | ) | $ | (220,305 | ) | |||||||||
- | - | |||||||||||||||||||
Net loss for the period | - | - | - | (44,896 | ) | (44,896 | ) | |||||||||||||
Balance September 30, 2021 | 42,051,000 | $ | 4,205 | $ | 853,939 | $ | (1,123,345 | ) | $ | (265,201 | ) |
Common Stock: Shares | Common Stock: Amount | Additional Paid in Capital | Accumulated Deficit | Totals | ||||||||||||||||
Balance - December 31, 2019 | 36,293,000 | $ | 3,629 | $ | 344,301 | $ | (457,660 | ) | $ | (109,730 | ) | |||||||||
Net loss for the period | - | - | - | (8,348 | ) | (8,348 | ) | |||||||||||||
Balance March 31, 2020 | 36,293,000 | $ | 3,629 | $ | 344,301 | $ | (466,088 | ) | $ | (118,078 | ) | |||||||||
Net loss for the period | - | - | - | (6,674 | ) | (6,674 | ) | |||||||||||||
Balance June 30, 2020 | 36,293,000 | $ | 3,629 | $ | 344,301 | $ | (472,762 | ) | $ | (124,752 | ) | |||||||||
Balance | 36,293,000 | $ | 3,629 | $ | 344,301 | $ | (472,762 | ) | $ | (124,752 | ) | |||||||||
Common stock issued to NV Share Service | 800,000 | 80 | 7,920 | - | 8,000 | |||||||||||||||
Net loss for the period | - | - | - | (6,178 | ) | (6,178 | ) | |||||||||||||
Balance September 30, 2020 | 37,093,000 | $ | 3,709 | $ | 352,221 | $ | (478,860 | ) | $ | (122,930 | ) | |||||||||
Balance | 37,093,000 | $ | 3,709 | $ | 352,221 | $ | (478,860 | ) | $ | (122,930 | ) |
3 |
STRONG SOLUTIONS, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
2021 | 2020 | |||||||
For the Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net loss from continuing operations | $ | (625,322 | ) | $ | - | |||
Net loss from discontinued operations | (5,050 | ) | (21,200 | ) | ||||
Net loss | (630,372 | ) | (21,200 | ) | ||||
Adjustments to reconcile net loss to net cash (used in) operating activities: | ||||||||
Shares issued to related party for services | 25,514 | - | ||||||
Shares issued to CEO | 460,500 | - | ||||||
Loss on disposition of discontinued operations | 17,457 | - | ||||||
Changes in assets and liabilities | ||||||||
Accounts payable and accrued expenses | 107,040 | - | ||||||
Loan payable – related party | 11,810 | - | ||||||
NET CASH USED IN CONTINUED OPERATING ACTIVITIES | (8,050 | ) | - | |||||
NET CASH USED IN DISCONTINUED OPERATING ACTIVITIES | 2,850 | (5,450 | ) | |||||
NET CASH USED IN OPERATING ACTIVITIES | (5,200 | ) | (5,450 | ) | ||||
Common stock issued to related party | 5,200 | - | ||||||
NET CASH PROVIDED BY CONTINUED FINANCING ACTIVITIES | 5,200 | - | ||||||
NET CASH PROVIDED BY DISCONTINUED FINANCING ACTIVITIES | - | 8,000 | ||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | - | 8,000 | ||||||
EFFECT OF EXCHANGE RATE CHANGES | - | - | ||||||
NET INCREASE (DECREASE) IN CASH | - | 2,550 | ||||||
CASH – BEGINNING OF PERIOD | - | 1,770 | ||||||
CASH – END OF PERIOD | $ | - | $ | 4,320 | ||||
LESS NET CASH FROM DISCONTINUED OPERATIONS - END OF PERIOD | - | (4,320 | ) | |||||
NET CASH FROM CONTINUING OPERATIONS – END OF PERIOD | - | - | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||||||||
Cash paid for income taxes | - | - | ||||||
Cash paid for interest | - | - | ||||||
NON-CASH INVESTING AND FINANCING ACTIVITES: |
4 |
STRONG SOLUTIONS INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021
AND THE YEAR ENDED DECEMBER 31, 2020
(Unaudited)
NOTE 1 – DESCRIPTION OF BUSINESS
Strong Solutions, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on SeptemberJune 18, 2014 for engagement to engage in the business of real estate management, maintenance and rehabilitation and construction equipment rental in Eastern Europe, and specifically in Ukraine. The Company providesprovided this service for companies and for individuals outside of the United States of America.
As a development-stage enterprise, the Company had limitedno operating revenuesrevenue from December 31, 2020 through September 30,2017. RecordedJune 30, 2021 as a result of lockdowns from COVID 19 in the Ukraine. As a result, a special shareholders meeting was held on March 22, 2021 and a new board of directors elected.
A special board meeting was then held on April 5, 2021 at which officers were appointed and all business in the Ukraine cancelled, including office rent for Mr. Guzii, resulting in no Commission Revenue was generated from Ukrainian clients. The Company is currently devoting substantially all of its present efforts to securing and establishing a new business.business in the United States.
On April 5, 2021 a Special Board Meeting was held at which all contracts, including Mr. Guzii’s office, in the Ukraine were cancelled, effective January 1, 2021, due to the Covid 19 Pandemic and the Company’s focus on new business in the United States. On that same date, David Anderson was appointed President by a majority of the Board of Directors and Eric Stevenson was appointed Treasurer by a majority of the Board of Directors.
On April 05, 2021, the Board of Directors unanimously approved issuing 10,000 a month in compensation and if no funds are available, the compensation shall accrue. shares of common stock to each Director as compensation for serving on the Board. The Board of Directors unanimously approved issuing shares of common stock to each Officer as compensation for serving as Management for Strong Solutions, Inc. In addition, each Officer will receive $
NOTE 2 – GOING CONCERN
The financial statements have been prepared assuming that the Company will continue as a going concern. Currently, the Company has a cash balance of $20,523$0 as of September 30, 20172021 and net loss from operation of $33,606.$605,322 for the nine months ended September 30, 2021. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company’s capital requirements will depend on many factors including the success of our development efforts and our efforts to raise capital. Management also believes the Company needs to raise additional capital for working capital purposes. There is no assurance that such financing will be available in the future. 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.
In August 1,2017, our first time submitting form 10 we could have raised doubts about getting the earned revenue from our partners because more than 90 days have passed. For now, this risk no more exists because we received all earned revenue and continue get it every month. Our long business relation with our partners from 2014, contracts with them, discussion of plans for joint work all of this reduces our doubts and risks ability to continue as a going concern. Our principal condition is good and we are able to fulfill our obligations.
The other side there are some subjective reasons such as: only one employee who may fall ill or change his mind to perform his duties and continue as a going concern. It can be a risk in our business.
Based on the above we don’t know about others events that raised substantial doubt about our ability to continue as a going concern. We believe if we are able to increase the company staff we completely eliminate the risk of business dependence from one director.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash equivalents
The Company considers all highly liquid instruments and tries to work in cash equivalent segment. The Company’s funds are deposited in insured institutions.
Fixed Assets
Fixed assets are stated at historical cost less accumulated depreciation. The historical cost of acquiring an item of fixed assets includes the costs necessarily incurred to bring it to the condition and location necessary for its intended use. Costs associated with repairs and maintenance are expensed as incurred. Depreciation is provided using the straight-line method over the estimated useful lives of the assets.
5 |
Use of estimates
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates.
Accounts receivable
As of September 30,2017, accounts receivable was paid.
Revenue recognition
We base our judgment on guidance ASC 606. Accounting Standards Update 2016-08.
All revenues appear in current periods to be recognized as gross, so, there is no net revenue recognized in current periods.
FASB’s new single, principle-based approach to accounting for revenue from contracts with customers. As the entity, we involved in providing a good and provide service to the customers. In those circumstances, Topic 606 requires us to determine whether the nature of our promise is to provide that good or service to the customers (that is, the entity is a principal) or to arrange for the good or service to be provided to the customers by the other party (that is, the entity is an agent).
This determination is based upon whether we control the goods or service before it is transferred to the customer. Some indicators help in this evaluation.
1. We identify obligations in a contract. A contract includes promises to transfer temporary rights to use construction equipment in their business for profit.
2. We determine the transaction price in a month. The transaction price is the reasonable amount of which we and our customer agree.
3. We recognize revenue when our customer obtains control of that equipment and we received the payment.
4. The transaction price also can include variable considerations or consideration in a form other than cash. In our property management service with Protel Management we received changeable revenue. If the consideration is variable, we estimate the amount of consideration to which we will be entitled in exchange for the services. The estimated amount of variable consideration will be included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
The Company considered recognizes our revenue on the accrual basis, revenue is recognizedwhen earned before cash is received.
and services have been performed. We are a principal and recognize the gross amount received from the customer as revenue. Revenues are reported on the income statementwhen the services have been performed.
The rent agreement confirmed,Company measures the price is fixed or readily determinable, and collectability is done. Revenues are recognized when the risks and rewardscost of ownership have passed to the customer,services received in exchange for an award of equity instruments based on the termsfair value of sale. We considered net revenue as a principal. Our revenue includes the net amounts that come from Clientaward. For employees and directors and non-employees, the fair value of the award is measured on the grant date. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the Property Management and rent service.
Some of our transactions falls into gross and some transactions going to net categories.
Certain revenues from our service are based on a net reporting because they meetaward, usually the criteria for net reporting method pursuant to ASC 605-45 (Principal Agent Considerations).
Werecognizedincome from Protel Management as a net because:
The Company does not get payments directly from buyers or tenant. The Company received commission from real estate owners or their representatives who hiredvesting period. Stock-based compensation expense is recorded by the Company as an agent. The Company is not a contract party between landlord and tenant.
The Company involved in the communication between them as an agent. Therefore, we determined this indicator to result in revenue reported on a net basis.
Werecognizedincome from firm Marcus as a gross because:
Cash equivalents
The Company considers all highly liquid instruments and tries to work in cash equivalent segment. The Company’s funds are deposited in insured institutions.
Income Taxes
We are subject to income taxessame expense classifications in the U.S. February 8, 2017 USA and Ukrainesigned an Intergovernmental Agreement (IGA) to implement provisionsconsolidated statements of the Foreign Account Tax Compliance Act (FATCA) and to promote transparency between the two nations on tax matters.
We don' not pay income taxoperations, as if such amounts were paid in Ukraine and we don’t have any current income tax obligations.cash.
The Company accounts for income taxes under the provisions of ASC Topic 740, “Income Taxes.” The method of accounting for income taxes under ASC 740 is an asset and liability method.
The asset and liability method requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between tax bases and financial reporting bases of other assets and liabilities.
Income tax assets and liabilities are computed annually for differences between financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.
NOTE 4 – COMMON STOCK ISSUED AND OUTSTANDING
The company authorized 75,000,000 Common shares $0.0001 par value.
The Company issued and outstanding 5,000,000 common stocks for $10,000.
NOTE 5 – FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amounts of cash and cash equivalents approximate their fair values due to their short-term nature.
NOTE 6 – CONCENTRATION OF CREDIT RISK
The Company maintains cash balances at a Wells Fargo financial institution. The balance, at any given time, may exceed Federal Deposit Insurance Corporation (“FDIC”) insurance limits of $250,000 per institution. Our cash balances at September 30, 2017 were within FDIC insured limits.
Concentration of revenues.
Since the Company have only two clients from which we receive the income our revenues concentrate from particular clients Protel Management and firm Marcus. It shows our vulnerability from them and in present time we can't diversify in order to mitigate the risks. We can have the potential for serious impact that can result from a complete or partial loss of business from our clients and as a consequence of the change in income.
NOTE 74 – COMMITMENTS AND CONTINGENCIES
From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of our business.
The Company is not currently a party to any material legal proceedings, nor is we aware of any other pending or threatened litigation that would have a material adverse effect on our business, operating results, cash flows or financial condition should such litigation be resolved unfavorable.
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NOTE 85 – RELATED PARTY TRANSACTIONS
Mr. Guzii iswas our controlling shareholder. He representsrepresented the company and provideprovided the serviceservices on our behalf to our clients firm MarcusMarkus and Protel Management. Mr. Guzii sold his controlling interest to NV Share Services LLC on May 13, 2020. On March 22, 2021 a Special Shareholders Meeting was held at which Mr. Guzii was removed as an officer and director of the Company without prejudice due to the Covid 19 Pandemic, at the request in writing by NV Share Services LLC. On April 5, 2021 a special board meeting was held at which all business in the Ukraine was cancelled, effective January 1, 2021, so that the Company could devote its time to finding new business in the United States.
We use his construction equipment to make our business with firm Marcus and also, he devotes significant time servicing to Protel Management.rented office space from Mr. Guzii in the Ukraine for $450 a month. As of January 1, 2021, we are no longer renting office space from Mr. Guzii. We do not have an employment agreement with Mr. Guzii. From inception by now he didn’t receive any compensation for his time and service but we expect to pay him an annual salary of $40,000 when we have funding or revenues available for that purpose.
NOTE 9 – STOCKHOLDERS’ EQUITY
From our inception on September 18, 2014 through September 30, 2017,On February 24, 2021 the Company issued 5,000,000 shares of common stock to Mr. Andrii Guzii as compensation for services valued at $460,500. On that same date, the Company’s founder. Also, we useCompany issued shares of common stock to NV Share Services LLC for cash valued at $ .
On June 15, 2021 the Company issued 9,882. shares of common stock to Mr. Eric Stevenson as compensation for services valued at $
On June 15, 2021 the Company issued 9,882. shares of common stock to Mr. David Anderson as compensation for services valued at $
On June 15, 2021 the Company issued shares of common stock to Mr. Oscar Kaalstade as compensation for services valued at $4,943.
In the period ending Sept. 30,2021 there were no shares issued to any related party.
NOTE 6 – COMMON STOCK
The company authorized Common shares $ par value.
We issued shares of common stock to Mr. Andrii Guzii in consideration of expenses incurred on December 9, 2020.
We issued shares of common stock to NV Share Services LLC in consideration of $ in cash on December 7, 2020.
We issued shares of common stock to NV Share Services LLC in consideration of $ in cash on August 27, 2020.
We issued shares of common stock NV Share Services LLC in consideration of $ in cash on May 26, 2020.
We issued common shares for cash at a purchase price of $ per share to 31 nonaffiliated shareholders.
We issued common shares for cash at a purchase price of $ per share to our director Mr.Guzii.
shares were issued to our director Mr.Guzii for repayment of accrued salary on $ and $ of stock compensation value at $ per share. This value was determined based on the previous sale of stock to unrelated parties at per share.
On February 24, 2021 the Company issued 460,500. On that same date, the Company issued shares of common stock to NV Share Services LLC for cash valued at $ and services valued at $ . of common stock to Mr. Andrii Guzii as compensation for services valued at $
On June 15, 2021 the Company issued a total of 9,882. shares of common stock to Mr. Eric Stevenson as compensation for services as both an officer and director valued at $
On June 15, 2021 the Company issued a total of 9,882. shares of common stock to Mr. David Anderson as compensation for services as both an officer and director valued at $
On June 15, 2021 the Company issued 4,943. shares of common stock to Mr. Oscar Kaalstade as compensation for services valued at $
As of September 30, 2021, the Company had issued and outstanding shares of common stock.
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NOTE 7 – DISCONTINUED OPERATIONS
The Company has just two contracts for property management and equipment rental in the Ukraine where the Pandemic has affected our business and as a result the Board of Directors has canceled its contracts with both Protel Management and Marcus effective January 1, 2021. The office rented for the Company has also been canceled as of January 1, 2021.
We provide property management services for Protel Management in the Ukraine. We own construction equipment which is rented out to make ourMarcus monthly. Protel’s property is vacant due to the Pandemic. Marcus’ equipment rental stopped due the Pandemic. With no further business with firm Marcus. We didn’t put this equipment oninterests in the balance sheet since it is not our property.Ukraine, the Company stopped paying office rent as of January 1, 2021, as determined by the Board of Directors.
The major classes of assets and liabilities of Strong Solutions, Inc. at September 30, 2021 are as follows:
SCHEDULE OF DISCONTINUED OPERATIONS
September 30, 2021 | December 31, 2020 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | - | $ | 2,457 | ||||
Total current assets | - | - | ||||||
Non-current assets | ||||||||
Equipment, net | - | 15,000 | ||||||
Assets of discontinued operations | $ | - | $ | 17,457 | ||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Related party accrued shareholder salary | $ | 143,350 | $ | 140,500 | ||||
Accounts payable loan from related party | 3,000 | 3,000 | ||||||
Total current liabilities | 146,350 | 143,500 | ||||||
Liabilities of discontinued operations | 146,350 | 143,500 | ||||||
Net (liabilities) assets of discontinued operations | $ | (146,350 | ) | $ | (126,043 | ) |
NOTE 108 – SUBSEQUENT EVENTS
In accordance with ASC 855 the Company’s management reviewed all material events through the date these financial statements were available to be issued, and there arewere no material subsequent events.events that occurred during the period ending Sept 30, 2021.
NOTE 11 –RESTATEMENT OF FINANCIAL STATEMENT
The Company has restated its financial statements for the years ended December 31, 2015, 2016 and June 30,2017 to reflect appropriate accrued expenses related to our business. For the three months ended September 30,2017 we didn’t restate our financial statements.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Operating results for the nine months ended September 30, 2017,2021, are not necessarily indicative of results that may occur in future interim periods or for the full fiscal year.
As used in this Form 10-Q, references to the Company,” “we,” “our” or “us” refer to Strong Solutions, Inc. a Nevada Corporation unless the context otherwise indicates.
Forward-Looking Statements
Our Form 10 contains “forward–looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and such statements are intended to enjoy the benefit of that act. Unless the context is otherwise, we use words such as “anticipate”, “assumption”, ” believe”“believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “objective”, “outlook”, “plan” and “plans”, “potential”, “predict”, project” and “projection”, “seek”, “should”, “will continue”, “will result” and “would”, or other such words, whether nouns or pronouns and verbs or adverbs in the future tense and words and phrases that convey similar meaning and uncertainty of and information about future events or outcomes and statements about performance that is not an historical fact to identify these forward–looking statements. Such words and statements involve estimates, assumptions and uncertainties, which could cause actual results to differ materially from those expressed in them. Any forward–looking statements are qualified in their entirety by reference to the factors discussed throughout this document. All forward-looking statements concerning economic conditions, rates of growth, rates of income or values as may be included in this document are based on information available to us on the dates noted, and we assume no obligation to update any such forward–looking statements. It is important to note that our actual results may differ materially from those anticipated in such forward-looking statements due to fluctuations in interest rates, inflation, government regulations, economic conditions and competitive product and pricing pressures in the geographic and business areas in which we conduct operations, including our plans, objectives, expectations and intentions and other factors discussed elsewhere in this registration statement.
There are a number of important factors beyond our control that could cause actual results to differ materially from the results anticipated by these forward–looking statements. While we make these forward–looking statements based on our beliefs and on various factors and using numerous assumptions using information available at the time we make these statements. Forward-looking statements are neither predictions nor guaranties of future events or circumstances, and the assumptions, beliefs, expectations, forecasts and projections about future events may differ materially from actual results. You have no assurance the factors and assumptions we have used as a basis for forward–looking statements will prove to be materially accurate when the events they anticipate actually occur in the future; and, you should not place undue reliance on any such forward–looking statements. We undertake no obligation to publicly update any forward–looking statement to reflect developments occurring after the date of this registration statement.
Business Overview
Mr. Andrii Guzii founded us to engage in real estate management and consulting, maintenance and rehabilitation, construction equipment rental business in the Ukraine. At the date of this registration statement, wereport a new board was elected, Mr. Guzii was removed as a Director and Officer without prejudice and new officers appointed. The exit from the Ukraine was due to the Covid 19 Pandemic and focusing the Company’s business efforts in the United States. We have one client (Protel Management) for whom we provide property management service for real estate located in Kharkov, Ukraine and we have one client (firm Marcus) for whom we provide construction equipment rental service. From both clients, we received income of the past three years. It has been the source ofcancelled all the revenue we have received since inception.
Also, we will offer rehabilitation of propertiescontracts with equipment rental services useful in appropriate maintenance and repair. We are committed to expanding the scope of services offered, while ensuring that we can support client relationships with best-in-class service. For Protel Management, we provide real estate management in Ukraine.
The services we provide include identifying suitable opportunities for future real estate development and construction, oversight of development and construction of real estate managed by Protel Management and Markus, as well as cancelling the management of residential and commercial real estate, represented by Protel Managementoffice rented for Mr. Guzii.
We are now committed to consumers residing in and outside of Ukraine.
Since our inception we have engageddeveloping new business in the following significant operating activities:United States.
Company set up:
Secured initial capital by a contribution from our founder, Chief Executive Officer and Director Commenced significant other operational activities, such as:
As of the date of this form, we have obtained a written agreement for our services with:
Protel Management, LLC and Firm Markus.
The services what we contribute to Protel Management include: Manage the property, find the tenants for lease, assist workdirectly with tenants about make the payments in time,handling maintenance, watch that all equipment’s as: elevators, fire and gas alarms, sewerage, phone lines, refrigerators, etc., work properly. If repair is required, then contact with services to fix it.Price for our service is 5.5% commission from gross revenue that Protel received from the tenants. Below we provide 9 months -to-9 months comparisons:
We provide long term rental of construction equipment to firm Marcus. This equipment includes:
Scaffoldings and Rafters for outside and inside work. Technically this equipment uses all year around, but more in demand in warm weather. We received around $500 a month form firm Marcus as a payment for this construction equipment. We don’t have insurance to cover accidental damage but our agreement with firm Marcus obligate their pay the collateral value $25,000 in case of total loss. Below we provide 9 months -to-9 months comparisons:
We are not the owner of this equipment. Our director Mr.Guzii rented it to us for $50 a month without ownership and does not require a return in the near future. For the repair of the construction equipment or technical maintenance the company pay for that from out of profits.
Liquidity
We don’t know about trends or any demands, commitments, events or uncertainties that will result to our liquidity increasing or decreasing in any material way.
Capital resources
We don’t have any fixed assets on our balance therefore capital expenditures as of the end of the latest quarter not exist.
Results of Operations for the three months period ended September 30,201730, 2021 and ninefor the three months period ended September 30, 2017 and 2016.2020
For the three months period ended September 30,201730, 2021 we generated $3,110$0 in revenues. We generated $1,610 from Protel Management and $1,500 from firm Marcus. Our cash balance was $20,523.
For the three months period ended September 30,201730, 2021 we had $16,104$44,896 company expenses consist of $5,054$1,896 general and administration expense, and $11,050 include$43,000 in professional fees. The professional fees consist mainly of $40,000 was accrued amount for equipment rental, office rentbut not paid to our new President and salary for shareholder.our Treasurer. Our loss from operations was $12,994.$44,896.
For the ninethree months period ended September 30,201730, 2020 we generated $8,325$0 in revenues and our cash balance was $20,523.
For the nine months period ended September 30,2016 we generated $8,680 in revenues and our cash balance was $8,679.
For the nine months period ended September 30,2017 we had $41,931 company expenses consist of $8,781 general and administration expense and $33,150 include accrued amount for equipment rental, office rent and salary for shareholder. Our loss from operations was $33,606.
For the nine months period ended September 30,2016 we had $33,953 company expenses consist of general and administration expense $803 and $33,150 accrued amount for equipment rental, office rent and salary for shareholder. Our loss from operations was $25,273.
discontinued operations. Our cash balances were not sufficient to fund our limited levels of operations for any period of time without further revenue or proceeds. In order to implement our planNV Share Services LLC purchased 35,000,000 shares of operationscommon stock in the next twelve months, we needCompany from Mr. Andrii Guzii May 13, 2020 for cash. Since buying control from Mr. Guzii, NV Share Services LLC has purchased common stock in the Company for $0.01 a share every quarter. There can be no assurances that NV Share Services LLC will continue to raise $50,000purchase shares in addition to the costs of becoming a reporting company.Company. Being a development stage company, we have a limited operating history but have meaningfullyhad commenced business operations in the Ukraine based upon the amount of limited revenue we have been able to generate.
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We are a development stage company and have generated $8,325 in revenueResults of Operations for the nine months period ended September 30,2017. $4,825 we generated from Protel Management. Our revenue30, 2021 and for the nine months period ended September 30,2016 was $8,680 including $5,030 was generated pursuant to our agreement with Protel Management. Pursuant to our agreement with Protel Management, we provide real estate management in Ukraine. The services we provide include identifying suitable opportunities for future real estate development and construction by Protel Management and oversight of planned development and construction of real estate managed by Protel Management, and the management of completed residential real estate represented by Protel Management to consumers residing in and outside of Ukraine. Protel Management and we are unrelated entities.30, 2020
For the nine months period ended September 30,201730, 2021 we generated $3,500$0 in revenue pursuant to our agreement with firm Marcus in which we agreed to provide the company with construction equipment for rent. revenues.
For the nine months period ended September 30,201630, 2021 we had $608,255 in company expenses consisting of $8,841 general and administration expense, $138,989 of professional fees and $460,425 in Stock based compensation. The stock-based compensation of $460,500 was paid to our CEO Mr. Andrii Guzii. Our loss from operations was $608,255.
For the nine months period ended September 30, 2020 we generated $3,650 also$2,530 in revenues from firm Marcus.discontinued operations. Our cash balances were not sufficient to fund our limited levels of operations for any period of time without further revenue or proceeds. NV Share Services LLC purchased 35,000,000 shares of common stock in the Company from Mr. Andrii Guzii May 13, 2020 for cash. Since buying control from Mr. Guzii, NV Share Services LLC has purchased common stock in the Company for $0.01 a share every quarter. There can be no assurances that NV Share Services LLC will continue to purchase shares in the Company. Being a development stage company, we have a limited operating history but had commenced business operations in the Ukraine based upon the amount of limited revenue we have been able to generate.
At the present time, we have not made any arrangements to raise additional cash. If we are unable to raise additional cash, we will either have to suspend operations until we do raise the cash or cease operations entirely.
During start upthe startup period, our operations will bewere limited due to the limited amount of funds on hand. Our specific goal iswas to profitably market and rent our construction equipment and sell related property management and property rehabilitation services. This business was discontinued January 1, 2021 due to several lockdowns in the Ukraine due to the Covid 19 Pandemic. The Board of Directors determined that after three years and no growth in revenue in the Ukraine that it would be better for the Company to cancel all Ukraine contracts and focus on new business in the United States.
Liquidity and Capital Resources at September 30, 2017
Cash | $ | 20,523 | ||
Accounts Receivable | $ | 0 | ||
Total stockholders’ equity | $ | (100,927 | ) |
Going Concern Consideration
Our auditor has indicated in our report that there is substantial doubt about our ability to continue as a going concern as a result of our lack of revenues and if we are unable to generate significant revenue or secure financing we may be required to cease or curtail our operations.
Liquidity and Capital Resources
As of September 30, 2017,2021, and September 30, 2016,2020 we had cash of $20,5230 and $8,679$2,457 respectively. Cash provided by operating activities for the nine month periods ending September 30, 2017
We had fixed assets on our balance total $15,000 in Scaffolding and September 30, 2016.Rafters.
Off Balance Sheet Arrangements
None
We use our director Mr.Guzii construction equipment to make our business with firm Marcus. We didn’t put this equipment on the balance sheet since it is not our property.
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ItemITEM 3. Quantitative and Qualitative Disclosures about Market RiskQUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
An Emerging Growth company, as defined on form 10 is not required to provide the information required by this item.
An emerging growth company is also exempt from Section 404(b) of the Sarbanes-Oxley Act which requires that the registered accounting firm shall, in the same report, attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial reporting. Similarly, as a Smaller Reporting Company we are exempt from Section 404(b) of the Sarbanes-Oxley Act and our independent registered public accounting firm will not be required to formally attest to the effectiveness of our internal control over financial reporting until such time as we cease being a Smaller Reporting Company.
As an emerging growth company, we are exempt from Section 14A (a) and (b) of the Securities Exchange Act of 1934 which require the shareholder approval of executive compensation and golden parachutes.
Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefit of this extended transition period.
Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards. We would cease to be an emerging growth company upon the earliest of:
ItemITEM 4. Controls and ProceduresCONTROLS AND PROCEDURES
Laws and regulations use controls, disclosure obligations and other restrictions that affect to the property management development.development in the Ukraine. Such laws and regulations tend to discourage rent and leasing activities. Transactions in which we arewere involved may be delayed or abandoned as a result of these restrictions.
In Ukraine, there is no one statute that governs a foreign entity conducting business within the country. Even though we are headquartered and operate in Ukraine, the laws applicable to us as a Nevada USA corporation include requirements that (a) we take out liability insurance on behalf of any full-time employees and (b) we maintain adequate books and records and periodic financial statements. We are also subject to various consumer protection laws that prohibit the use of fraudulent or deceptive practices.
We are implementing procedures to control advertising and promotions. These procedures are necessary to assure our proper representation and include review of all advertising material and restrictions on how our clients and others can advertise using our brand.
Changes in Internal Control Over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation that occurred during the Company’s last fiscal quarter that has materially affected, or is reasonable likely to materially affect, the Company internal control over financial reporting.
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Item 1. Legal Proceedings
The Company is not currently a party to any material legal proceedings, nor is we aware of any other pending or threatened litigation that would have a material adverse effect on our business, operating results, cash flows or financial condition should such litigation be resolved unfavorable.
ItemITEM 1A. Risk FactorsRISK FACTORS
Because we are classified as an Emerging Growth Company under the federal securities laws, we are not required to include risk factors in this 10Q report. The risk factors were included in our form10.form 10.
Item 2. Unregistered Sales of Equity Securities and Use of ProceedsITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
We did not sellsold unregistered securities during the quarter endingnine months ended September 30,201730, 2021. NV Share Services LLC paid cash, $0.01 per share of common stock, to purchase 608,000 shares for $6,008 in cash on February 24, 2021. We issued 750,000 shares of common stock to Mr. Andrii Guzii on February 24, 2021 in for compensation valued at $460,500.
On June 15, 2021 the Company issued a total of 1,000,000 shares of common stock to Mr. Eric Stevenson as compensation for services as both an officer and director valued at $9,882.
On June 15, 2021 the Company issued a total of 1,000,000 shares of common stock to Mr. David Anderson as compensation for services as both an officer and director valued at $9,882.
On June 15, 2021 the Company issued 500,000 shares of common stock to Mr. Oscar Kaalstad as compensation for services valued at $4,943.
Purchases of equity securities by the issuer and affiliated purchasers
During the quarter endingnine months ended September 30, 2017,2021 there were no purchases of equity securities by us or affiliated purchasers.
Use of Proceeds
None
ItemITEM 3. Defaults Upon Senior SecuritiesDEFAULTS UPON SENIOR SECURITIES
We have no senior securities outstanding.
ItemITEM 4. Mine Safety DisclosuresMINE SAFETY DISCLOSURES
Not Applicable.
ItemITEM 5. Other Information.OTHER INFORMATION
None.
ITEM 6. EXHIBITS
Item 6. Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Strong Solutions Inc. | ||||
November | ||||
By: | /s/ | |||
Secretary/Treasurer |
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