UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended JuneSeptember 30, 2019

☐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)

2/13 Korolenko Str, Kharkov, Ukraine 61000

(Address of Principal Executive Offices) Zip Code

011+380-993-87-5414

(Registrant’s telephone number)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

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 every Interactive Data File required to be submitted 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 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.

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 JuneSeptember 30, 2019, there were 36,293,000 shares of our common stock authorized for issue and outstanding.

TABLE OF CONTENTS

See accompanying notes to financial statements.

See accompanying notes to financial statements.

STRONG SOLUTIONS, INC.

STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)

See accompanying notes to financial statements.

See accompanying notesnoted to financial statements.

STRONG SOLUTIONS INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTENOTE 1 – DESCRIPTION OF BUSINESS

Strong Solutions, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on June 18, 2014 for engagement in business of real estate management, maintenance and rehabilitation and construction equipment rental in Ukraine. The Company provides this service for companies and for individuals outside of the United States of America.

As a development-stage enterprise, the Company had limited operating revenues through JuneSeptember 30, 2019. Recorded 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.

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 $1,155$1,758 as of JuneSeptember 30, 2019 and net loss from operation of $6,344$5,147 for the three months ended JuneSeptember 30, 2019. 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 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.

NOTE 3 – SUMMARYSUMMARY OF SIGNIFICANTSIGNIFICANT ACCOUNTING POLICIESPOLICIES

UseUse of estimates

The preparation of thethe financial statementsstatements in conformityconformity withgenerallyaccepted accountingprinciplesrequiresmanagement generally accepted accounting principles requires management to make estimatesmake estimates and assumptions that affectassumptions that affect certain reportedreported amounts and disclosures.Accordingly,disclosures. Accordingly, actual results could differdiffer from these estimates.

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, thereis 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 good or the service before it is transferred to the customer. Some indicators help in this evaluation.

1. We identify obligations in the contract with firm Markus. A contract includes promises to transfer temporary right to use construction equipment in their business for profit.

2.We2. We determine the transaction price $500 in a month. The transaction price is the reasonable amount of which we and firm Markus were agree. The transaction price in 23^ndd quarter was a fixed amount.

3.We3. We recognize revenue when the firm Markus obtains control of that equipment and we received the payment.

4.The4. The transaction price also can include variable consideration 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 the revenue on the accrual basis,revenue is recognizedwhenearned and services have been performed.We are principal, and recognize the gross amount received from the customer as revenue.revenue. Revenues are reported on the income statementwhen the services have been performed. Our revenue includes the gross amounts that come from Client for the Property Management and Rent Service.

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 taxes in the U.S.  For present time we don’t have any current income tax obligations.

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 require 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.  Deferred tax asset would be the net operating loss carryforward value at tax rates. Our net (loss) from operations before income taxes for the three months ended JuneSeptember 30, 2019 was $6,344$5,147 and for the three months ended JuneSeptember 30, 2018 was $5,298.$4,616.

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.

For the period from January 1, 2019 to JuneSeptember 30, 2019 there were no changes in common stock.

As of JuneSeptember 30, 2019, the Company had issued and outstanding 36,293,000 shares of common stock.

We issued 1,293,000 common shares for cash at a purchase price of $0.01 per share to 31 nonaffiliated shareholders.

We issued 5,000,000 common shares for cash at a purchase price of $0.002 per share to our director Mr.Guzii.

30,000,000 shares were issued to our director Mr.Guzii for repayment of accrued salary on $30,000 and $270,000 of stock compensation value at $0,01$0.01 per share. This value was determined based on the previous sale of stock to unrelated parties at 0.01 per share.

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 JuneSeptember 30, 2019 were within FDIC insured limits.

Concentration of revenues.

The Company has only two clients from which we receive the income: Protel Management and firm Markus. It shows our dependence 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 7 – COMMITMENTS AND CONTINGENCIES

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.

NOTE 8 – RELATED PARTY TRANSACTIONS

Mr. Guzii is our controlling shareholder. He represents the company and provides the services on our behalf to our clients firm Markus and Protel Management. We used his construction equipment to make our business with firm Markus from 2015 to 2018. End of the 2018 we put this equipment on the balance sheet since it is already our property. 

Also, we rent office from Mr. Guzii. We paid him the office rent fee $150 per month.

We booked expense $450 for office rent from this related party for the three months ended JuneSeptember 30, 2019, and we count rental expense on our books. 

NOTE 9 – STOCKHOLDERS’ EQUITY

From our inception on June 18, 2014 through JuneSeptember 30, 2019, the Company issued 36,293,000 shares of common stock. 35,000,000 for our founder and 1,293,000 for non-affiliated investors for cash, received proceeds of $12,930 sold at $0.01 per share.

NOTE 10 – 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 are no material subsequent events.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Operating results for the three months ended JuneSeptember 30, 2019, 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”, “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. Guzii founded us to engage in real estate management and consulting, maintenance and rehabilitation, construction equipment rental business in Ukraine. At the date of this report, we have one client (Protel Management) for whom we provide property management service for real estate located in Ukraine and we have one client (firm Markus) for whom we provide construction equipment rental service. From both clients, we received income in this quarter. It has been the source of our revenue.

We are committed to expanding the scope of services offered. We will offer rehabilitation of properties with equipment rental services useful in appropriate maintenance and repair. 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 the management of residential and commercial real estate, represented by Protel Management to consumers residing in and outside of Ukraine.

Since our inception we have engaged in the following significant operating activities:

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 written agreements 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. Below we provide 69 months -to-6-to-9 months comparisons:comparisons revenue:

We provide long term rental of construction equipment to firm Markus. This equipment includes:

Scaffoldings and Rafters for outside and inside work. We received $1,000$2000 in this quarter from firm Markus as a payment for this construction equipment in 23^ndd quarter 2019.

We don’t have insurance to cover accidental damage but our agreement with firm Markus obligates them to pay the collateral value of $25,000 in case of total loss. Below we provide 69 months -to-6-to-9 months comparisons:

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

In December 2018 we put on our balance construction equipment received from our director Mr.Guzii, total $25,000.  Scaffolding cost $20,000 and Rafters $5,000.

Also, from January 2019 we began count Depreciation Expense $1,250 for the three months. Total for 69 months $2,500.$3,750. For now, we indicated on our balance Construction Equipment net of depreciation $22,500.$21,250.

Results of Operations for the sixnine months period ended JuneSeptember 30, 2019 and for the sixnine months period ended JuneSeptember 30, 2018

For the sixnine months period ended JuneSeptember 30, 2019 we generated $4,670$8,330 in revenues. We generated $3,170$4,830 from Protel Management and $1,500$3,500 from firm Markus. Our cash balance was $1,155.$1,758.

For the sixnine months period ended JuneSeptember 30, 2019 we had $28,719$37,527 company expenses consist of $18,819$22,677 general and administration expense and $9,900$13,500 include accrued amount salary for shareholder and $450$1,350 payment for office rent. Our loss from operations was $24,049.$29,197.

For the sixnine months period ended JuneSeptember 30, 2018 we generated $5,265$8,395 in revenues and our cash balance was $16,138.

$16,023. For the sixnine months period ended JuneSeptember 30, 2018 we had $24,302$32,048 company expenses consist of general and administration expense $8,252$10,898 and accrued amount for equipment rental, office rent and salary for shareholder $16,050.$21,150. Our loss from operations was $19,037.$23,653.

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 plan of operations in the next twelve months, we need to raise at least $30,000 in addition to the costs of becoming a reporting company. Being a development stage company, we have a limited operating history but have meaningfully commenced business operations based upon the amount of revenue we have been able to generate.

At the present time, we have not made any arrangements to raise additional cash. If we unable to raise additional cash, we will either have to suspend operations until we do raise the cash, or cease operations entirely.

During start up period, our operations will be limited due to the limited amount of funds on hand. Our specific goal is to profitably market and rent our construction equipment and sell related property management and property rehabilitation services.

Liquidity and Capital Resources at JuneSeptember 30, 2019

Going Concern Consideration

While management of the Company believes that the Company will be successful in its planned operating activities, there can be no assurance that the Company will be successful in the development this business or services that will generate sufficient revenues to earn a profit and sustain the operations of the Company. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has incurred an operating expense since inception, had small working capital as of JuneSeptember 30, 2019 and the cash resources of the Company were insufficient to meet its planned business objectives. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

Liquidity and Capital Resources

As of JuneSeptember 30, 2019, and JuneSeptember 30, 2018 we had cash of $1,155$1,758 and $16,138$16,023 respectively.

We have fixed assets on our balance Construction Equipment net of depreciation total 22,500,21,250, Scaffolding and Rafters.

Off Balance Sheet Arrangements

None

Item 3. Quantitative 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:

Item 4. Controls and Procedures

Laws and regulations use controls, disclosure obligations and other restrictions that affect to the property management development. Such laws and regulations tend to discourage rent and leasing activities. Transactions in which we are involved may be delayed or abandoned as a result of these restrictions.

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

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.

Item 1A. Risk 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 included in our form 10.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We did not sell unregistered securities during the quarter ended JuneSeptember 30,2019

Purchases of equity securities by the issuer and affiliated purchasers

During the quarter ended JuneSeptember 30,2019 there were no purchases of equity securities by us or affiliated purchasers.

Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

We have no senior securities outstanding.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information.

None.

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.