China SHESAYS Medical Cosmetology 10Q 2008 Q1 Quarterly report

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

BALANCE SHEETS

ASSETS

	March 31, 2008		December 31, 2007
	(Unaudited)
Current assets
Cash	$	163	$	216
Prepaid expense		3,750		6,250

Total current assets		3,913		6,466

Other assets
Investment		27,500		27,500

Total assets	$	31,413	$	33,966

Current liabilities
Accounts payable and accrued expenses	$	41,770		$	20,091
Income taxes payable		800			-
Convertible note payable		3,000			-

Total current liabilities		45,570			20,091

Stockholders’ equity (deficit)
Preferred stock, $.001 par value; 5,000,000 shares authorized, 0 shares issued and outstanding		-			-
Common stock, $.001 par value; 50,000,000 shares authorized, 2,876,000 shares issued and outstanding at March 31, 2008 and December 31, 2007		2,876			2,876
Additional paid-in capital		91,281			91,281
Deficit accumulated during the development stage		(108,314	)		(80,282	)

Total stockholders’ equity (deficit)		(14,157	)		13,875

Total liabilities and stockholders’ equity (deficit)	$	31,413		$	33,966

See accompanying notes to unaudited financial statements.

See accompanying notes to unaudited financial statements.

STATEMENTS OF OPERATIONS

(Unaudited)


	Three months ended March 31,						Inception (January 18, 2002) to March 31, 2008
	2008			2007			Inception (January 18, 2002) to March 31, 2008

Net revenue	$	2,962		$	-		$	8,256

Operating expenses
Legal and professional		21,728			-			68,169
Dues and fees		3,932			-			13,577
Rent		3,000			300			6,900
General and administrative		1,461			-			5,476

Total operating expenses		30,121			300			94,122

Other income (expense)
Interest income (expense), net		(73	)		-			552

Loss from continuing operations before income taxes		(27,232	)		(300	)		(85,314	)

Provision for income taxes		800			800			1,600

Loss from continuing operations		(28,032	)		(1,100	)		(86,914	)

Discontinued operations		-			-			(21,400	)

Net loss	$	(28,032	)	$	(1,100	)	$	(108,314	)


Net loss per common share from continuing operations – basic and diluted	$	(.01	)	$	-	$	(.04	)

Net loss per common share from discontinued operations – basic and diluted	$	-		$	-	$	(.01	)

Weighted average of common shares – basic and diluted		2,876,000			1,951,000		1,986,671

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY/(DEFICIT)

FOR THE PERIOD FROM INCEPTION (JANUARY 18, 2002) THROUGH MARCH 31, 2008

								Deficit
	Common Stock							Accumulated
	Number of Shares		Amount		Additional Paid-In Capital			During Development Stage			Total Stockholders’ Equity (Deficit)

Balance, January 18, 2002		-	$	-	$	-		$	-		$	-

Issuance of founder shares for services, January 30, 2002, retroactively stated for 1:5 reverse stock split on April 22, 2007		1,200,000		1,200		4,800			-			6,000

Issuance of common stock, November 1, 2002, retroactively stated for 1:5 reverse stock split on April 22, 2007		751,000		751		36,799			-			37,550

Additional paid-in capital in exchange for facilities provided by related party		-		-		900			-			900

Net loss		-		-		-			(8,889	)		(8,889	)

Balance, December 31, 2002		1,951,000		1,951		42,499			(8,889	)		35,561

Distributions to shareholders		-		-		(32,750	)		-			(32,750	)

Additional paid-in capital in exchange for facilities provided by related party		-		-		1,200			-			1,200

See accompanying notes to unaudited financial statements.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY/(DEFICIT)

FOR THE PERIOD FROM INCEPTION (JANUARY 18, 2002) THROUGH MARCH 31, 2008

							Deficit
	Common Stock						Accumulated
	Number of Shares		Amount		Additional Paid-In Capital		During Development Stage			Total Stockholders’ Equity (Deficit)

Net loss		-		-		-		(3,273	)		(3,273	)

Balance, December 31, 2003		1,951,000		1,951		10,949		(12,162	)		738

Additional paid-in capital contributed by related party		-		-		832		-			832

Additional paid-in capital in exchange for facilities provided by related party		-		-		1,200		-			1,200

Net loss		-		-		-		(3,889	)		(3,889	)

Balance, December 31, 2004		1,951,000		1,951		12,981		(16,051	)		(1,119	)

Additional paid-in capital contributed by related party		-		-		50		-			50

Additional paid-in capital in exchange for facilities provided by related party		-		-		1,200		-			1,200

Net loss		-		-		-		(2,440	)		(2,440	)

See accompanying notes to unaudited financial statements.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY/(DEFICIT)

FOR THE PERIOD FROM INCEPTION (JANUARY 18, 2002) THROUGH MARCH 31, 2008

							Deficit
	Common Stock						Accumulated
	Number of Shares		Amount		Additional Paid-In Capital		During Development Stage			Total Stockholders’ Equity (Deficit)

Additional paid-in capital in exchange for facilities provided by related party		-		-		1,200		-			1,200

Net loss		-		-		-		(2,909	)		(2,909	)

Balance, December 31, 2006 (Audited)		1,951,000	$	1,951		15,431		(21,400	)		(4,018	)

Issuance of common stock, May 18, 2007		437,500		437		34,563		-			35,000

Issuance of common stock, May 31, 2007		218,750		219		17,281		-			17,500

Issuance of common stock, June 7, 2007		268,750		269		21,231		-			21,500

Additional paid-in capital in exchange for facilities provided by related party		-		-		900		-			900

Conversion of note receivable		-		-		1,875					1,875

Net loss		-		-		-		(58,882	)		(58,882	)

Balance, December 31, 2007 (Audited)		2,876,000		2,876		91,281		(80,282	)		13,875


Net loss	-		-		-		(28,032	)		(28,032	)

Balance, March 31, 2008 (Unaudited)	2,876,000	$	2,876	$	91,281	$	(108,314	)	$	(14,157	)

See accompanying notes to unaudited financial statements.

See accompanying notes to unaudited financial statements.

STATEMENTS OF CASH FLOWS

(Unaudited)

							Inception
	Three months ended March 31,						(January 18, 2002) to
							March 31,
	2008			2007			2008

Cash flows from operating activities
Net loss	$	(28,032	)	$	(1,100	)	$	(108,314	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Cost of services paid for with common stock		-			-			6,000
Additional paid-in capital in exchange for facilities provided by related party		-			300			6,600
Changes in operating assets and liabilities
Decrease (increase) in prepaid expenses		2,500			-			(3,750	)
Increase in accounts payable and accrued expenses		21,679			-			41,770
Increase in income taxes payable		800			800			800

Net cash used in operating activities		(3,053	)		-			(56,894	)

Cash flows from investing activities
Promissory note receivable		-			-			(25,000	)
Increase in interest on note receivable		-			-			(625	)

Net cash used in investing activities		-			-			(25,625	)

Cash flows from financing activities
Proceeds from issuance of common stock		-			-			111,550
Distributions to shareholders		-			-			(32,750	)
Capital contributions		-			-			882
Proceeds from convertible note payable		3,000			-			3,000

Net cash provided by financing activities		3,000			-			82,682

Net (decrease) increase in cash		(53	)		-			163

Cash, beginning of period		216			-			-

Cash, end of period	$	163		$	-		$	163

Supplemental disclosure of cash flow information
Income taxes paid	$	-	$	-	$	4,000
Interest paid	$	-	$	-	$	-
Conversion of note receivable and accrued
interest into common stock of long term investment	$	-	$	-	$	25,625
Gain on conversion	$	-	$	-	$	1,875

NOTES TO UNAUDITED FINANCIAL STATEMENTS

MARCH 31, 2008

1.	NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

SN Strategies Corp. (“the Company”) was incorporated under the laws of the State of Nevada on January 18, 2002 under the original name “Klean Kast Solutions, Inc”. On April 22, 2007, the Company filed amended and restated articles and changed its name to “SN Strategies Corp”.

SN Strategies Corp. is an internet company that specializes in developing social networking applications, known as widgets, which are designed to engage, provide information and gather intelligence from users. A widget is a type of user interface that allows people to interact with a computer and computer-controlled devices that employ graphical icons, visual indicators or special graphical elements, along with text labels or text navigation to represent the information and actions available to a user. The Company is headquartered in Laguna Beach, California.

SN Strategies Corp. is currently a development stage company under the provisions of Statement of Financial Accounting Standards (SFAS) No. 7 “Accounting and Reporting by Development Stage Enterprises”. For the three months ended March 31, 2008, the Company produced only minimal revenues and will continue to report as a development stage company until significant revenues are produced.

Basis of Presentation

The unaudited financial statements included herein have been prepared in conformity with accounting principles generally accepted in the United States for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements included in the Company’s report on Form 10-KSB of SN Strategies Corp. for the year ended December 31, 2007. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2008 are not necessarily indicative of the results that may be expected for any other interim period or the entire year. For further information, these unaudited financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2007 included in the Company’s report on Form 10-KSB.

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 and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could materially differ from those estimates.

Cash and Cash Equivalents

For purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents.

Prepaid Expenses

Prepaid expenses consist of stock transfer agent fees for services to be rendered over the one-year period of the contract and are amortized monthly.

Fair Value of Financial Instruments

Pursuant to Statement of Financial Accounting Standards No. 107, “Disclosures About Fair Value of Financial Instruments”, the Company is required to estimate the fair value of all financial instruments included on its balance sheet. The carrying value of cash, prepaid expense, accounts payable and accrued expenses approximate their fair value due to the short period to maturity of these instruments.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

MARCH 31, 2008

1.	NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Income Taxes

The Company accounts for income taxes under Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes” (SFAS 109). Under the asset and liability method of SFAS 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under SFAS 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. The components of the deferred tax assets and liabilities are classified as current and non-current based on their characteristics. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

Comprehensive Income

The Company applies Statement of Financial Accounting Standards No. 130, “Reporting Comprehensive Income” (SFAS 130). SFAS 130 establishes standards for the reporting and display of comprehensive income or loss, requiring its components to be reported in a financial statement that is displayed with the same prominence as other financial statements. From inception (January 18, 2002) through March 31, 2008, the Company had no other components of comprehensive loss other than the net loss as reported on the statement of operations.

Segment Reporting

Pursuant to Statement of Financial Accounting Standards No. 131, “Disclosures about Segments of an Enterprise and Related Information,” (SFAS 131), the Company is required to disclose certain disclosures of operating segments, as defined in SFAS 131. Management has determined that the Company has only one operating segment and therefore does not disclose operating segment information.

Basic and Diluted Income (Loss) Per Share

In accordance with Statement of Financial Accounting Standards No. 128, “Earnings Per Share”, basic income (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted income (loss) per common share is computed similar to basic income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of March 31, 2008, the Company did not have any equity or debt instruments outstanding that could be converted into common stock.

Issuances Involving Non-Cash Consideration

All issuances of the Company's stock for non-cash consideration have been assigned a dollar amount equaling either the market value of the shares issued or the value of consideration received, whichever is more readily determinable. The majority of the non-cash consideration received pertains to services rendered by officers and have been valued at the estimated value of the services rendered.

Revenue Recognition

The Company provides consulting services. Revenues from these services are to be recognized in accordance with Staff Accounting Bulletin (SAB) No. 101, “Revenue Recognition in Financial Statements,” as amended by SAB No. 104, “Revenue Recognition” when (a) persuasive evidence of an arrangement exists, (b) the services have been provided to the customer, (c) the fee is fixed or determinable, and (d) collectibility is reasonably assured.

Recent Accounting Pronouncements

In December 2007, the Emerging Issues Task Force (EITF) of the Financial Accounting Standards Board (FASB) reached a consensus on Issue No. 07-1, Accounting for Collaborative Arrangements (EITF 07-1). The EITF concluded on the definition of a collaborative arrangement and that revenues and costs incurred with third parties in connection with collaborative arrangements would be presented gross or net based on the criteria in EITF 99-19 and other accounting literature. Based on the nature of the arrangement, payments to or from collaborators would be evaluated and its terms, the nature of the entity’s business, and whether those payments are within the scope of other accounting literature would be presented. Companies are also required to disclose the nature and purpose of collaborative arrangements along with the accounting policies and the classification and amounts of significant financial-statement amounts related to the arrangements. Activities in the arrangement conducted in a separate legal entity should be accounted for under other accounting literature; however required disclosure under EITF 07-1 applies to the entire collaborative agreement. This Issue is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years, and is to be applied retrospectively to all periods presented for all collaborative arrangements existing as of the effective date. We do not expect this will have a significant impact on our financial statements.

In December 2007, the FASB issued SFAS No. 141(R), Business Combinations (SFAS 141(R)), which replaces SFAS 141, Business Combinations, requires an acquirer to recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date, with limited exceptions. This Statement also requires the acquirer in a business combination achieved in stages to recognize the identifiable assets and liabilities, as well as the non-controlling interest in the acquiree, at the full amounts of their fair values.

SN STRATEGIES CORP.

(FORMERLY KLEAN KAST SOLUTIONS, INC.)

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

MARCH 31, 2008

1.	NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent Accounting Pronouncements (Continued)

SFAS 141(R) makes various other amendments to authoritative literature intended to provide additional guidance or to confirm the guidance in that literature to that provided in this Statement. This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. We do not expect this will have a significant impact on our financial statements.

In December 2007, FASB issued SFAS 160, Noncontrolling Interests in Consolidated Financial Statements, which amends Accounting Research Bulletin No. 51, Consolidated Financial Statements, to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its consolidated financial statements. SFAS 160 establishes accounting and reporting standards that require the ownership interests in subsidiaries not held by the parent to be clearly identified, labeled and presented in the consolidated statement of financial position within equity, but separate from the parent��s equity. This statement also requires the amount of consolidated net income attributable to the parent and to the non-controlling interest to be clearly identified and presented on the face of the consolidated statement of income. Changes in a parent’s ownership interest while the parent retains its controlling financial interest must be accounted for consistently, and when a subsidiary is deconsolidated, any retained non-controlling equity investment in the former subsidiary must be initially measured at fair value. The gain or loss on the deconsolidation of the subsidiary is measured using the fair value of any non-controlling equity investment. The Statement also requires entities to provide sufficient disclosures that clearly identify and distinguish between the interests of the parent and the interests of the non-controlling owners. This Statement applies prospectively to all entities that prepare consolidated financial statements and applies prospectively for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. We do not expect this will have a significant impact on our financial statements.

In February 2007, the FASB issued SFAS 159, The Fair Value Option for Financial Assets and Financial Liabilities—Including an amendment of FASB Statement No. 115 (SFAS 159), which is effective for fiscal years beginning after November 15, 2007. SFAS 159 permits the Company to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. SFAS 159 is expected to expand the use of fair value measurement, which is consistent with the FASB’s long-term measurement objectives for accounting for financial instruments. The Company adopted the provisions of this statement on January 1, 2008. The Company did not elect the Fair Value option for any of its financial assets or liabilities, and therefore, the adoption of SFAS 159 had no impact on the Company’s financial position, results of operations, or cash flows.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measures required under other accounting pronouncements, but does not change existing guidance as to whether or not an instrument is carried at fair value. SFAS No. 157 was effective as of the beginning of the Company’s 2008 year. The provisions of SFAS 157 were adopted January 1, 2008. In February 2008, the FASB staff issued Staff Position No. 157-2 “Effective Date of FASB Statement No. 157” (FSP FAS 157-2). FSP FAS 157-2 delayed the effective date of SFAS 157 for nonfinancial assets and nonfinancial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The provisions of FSP FAS 157-2 are effective for the Company’s fiscal year beginning January 1, 2009.

SFAS 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under SFAS 157 are described below:

SN STRATEGIES CORP.

(FORMERLY KLEAN KAST SOLUTIONS, INC.)

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

MARCH 31, 2008

1.	NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent Accounting Pronouncements (Continued)

Level 1

Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2

Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

2.	GOING CONCERN

As shown in the accompanying financial statements, the Company has incurred a net operating loss of $108,314 from inception (January 18, 2002) through March 31, 2008.

The Company is subject to those risks associated with development stage companies. The Company has sustained losses since inception and additional debt or equity financing may be required by the Company to fund its development activities and to support operations. However, there is no assurance that the Company will be able to obtain additional financing. Furthermore, there is no assurance that rapid technological changes, changing customer needs and evolving industry standards will enable the Company to introduce new products on a continual and timely basis so that profitable operations can be attained.

3.	INVESTMENT

On May 18, 2007, the Company extended a $25,000 loan to Fliva, Inc. (Fliva) in exchange for a convertible promissory note and a warrant agreement. Under the terms of the convertible promissory note agreement, the note accrues interest at 5% per annum and matures on May 18, 2009. The note may be converted into Fliva’s common stock upon default or upon certain other conditions. Under the terms of the warrant agreement, the Company has the right to purchase 62,500 shares of Fliva’s common stock at $0.04 per share upon certain triggering events. The warrant agreement expires upon the earlier of the warrant execution or May 18, 2011.

On November 8, 2007, the Company converted the note receivable balance of $25,000 into 625,000 shares of Fliva’s common stock at the conversion rate of $0.04 per share. In addition, as consideration for converting the note receivable, the warrants were exercised in exchange for accrued interest of $625 resulting in the Company receiving an additional 62,500 shares of Fliva’s common stock for a total value of $27,500.

On November 12, 2007, the Company exchanged its 687,500 shares of Fliva’s common stock for 201,343 shares of common stock of Magic Cow, Inc. pursuant to a Share Exchange Agreement between Fliva and Magic Cow, Inc.

SN STRATEGIES CORP.

(FORMERLY KLEAN KAST SOLUTIONS, INC.)

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

MARCH 31, 2008

4.	FAIR VALUE ACCOUNTING

The following table sets forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy. As required by SFAS 157, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Fair Value at March 31, 2008
	Total		Level 1		Level 2		Level 3
Assets:
Investment	$	27,500	$	-	$	-	$	27,500

	$	27,500	$	-	$	-	$	27,500

Liabilities:
	$	-	$	-	$	-	$	-
		-						-

The Company’s investment in Magic Cow, Inc. is classified within Level 3 of the fair value hierarchy because it is a privately held company with no market activity or quoted prices.

5.	ACCRUED EXPENSES

Accrued Wages and Compensated Absences

The Company currently does not have any employees. The majority of development costs and services have been provided to the Company by the founders and outside, third-party vendors. As such, there is no accrual for wages or compensated absences as of March 31, 2008.

SN STRATEGIES CORP.

(FORMERLY KLEAN KAST SOLUTIONS, INC.)

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

MARCH 31, 2008

6.	CONVERTIBLE NOTE PAYABLE

On January 4, 2008, the Company entered into a convertible promissory note agreement to obtain a loan for $3,000. Under the terms of the promissory note agreement, the principal and any unpaid accrued interest must be repaid by January 4, 2009. The note shall accrue interest at the rate of 10% per annum. The note holder and the Company shall have the right from and after March 4, 2008, and until the maturity date, to convert all or any portion of the outstanding principal balance and any unpaid accrued interest into shares of the Company’s common stock on the basis of $0.10 per share. The note may be prepaid at any time, at the option of the Company, in whole or in part without penalty.

7.	COMMON STOCK

The Company is authorized to issue up to 50,000,000 shares of $0.001 par value common stock and 5,000,000 shares of $0.001 par value preferred stock. Each share of common stock shall entitle the holder to one vote, in person or by proxy, on any matter on which action of the stockholders of this corporation is sought. The holders of shares of preferred stock shall have no right to vote such shares, with certain exceptions as determined by the Board of Directors of this corporation or as otherwise provided by the Nevada General Corporation Law, as amended from time to time.

In January 2002, the Company issued 6,000,000 shares of its common stock to its founders in exchange for reimbursement of organizational costs and related expenses. The value of such costs and related expenses totaled $6,000.

In November 2002, the Company performed a private placement and issued 3,755,000 shares of common stock at $0.01 per share for an aggregate total of $37,550.

On April 22, 2007, the Company effected a one for five (1:5) reverse stock split whereby each share of the Company’s common stock outstanding was converted into 0.20 of a share of the Company’s common stock. Accordingly, the outstanding common stock and per share amounts have been retroactively stated to reflect the stock split within the Company’s financial statements, pursuant to SEC Staff Accounting Bulletin, Topic 4C.

On May 18, 2007, the Company performed a private placement and issued 437,500 shares of common stock at $0.08 per share for an aggregate total of $35,000.

On May 31, 2007, the Company performed a private placement and issued 218,750 shares of common stock at $0.08 per share for an aggregate total of $17,500.

On June 7, 2007, the Company performed a private placement and issued 268,750 shares of common stock at $0.08 per share for an aggregate total of $21,500.

In July 2007, the Company submitted its Registration Statement on Form SB-2 for the registration of 1,025,000 shares of its outstanding common stock. On August 6, 2007, the Company’s registration statement was declared effective by the Securities and Exchange Commission.

8.	PROVISION FOR INCOME TAXES

As of March 31, 2008, the Company has recognized the minimum amount of franchise tax required under California corporation law of $800. The Company is not currently subject to further federal or state tax since it has incurred losses since its inception.

As of March 31, 2008, the Company had federal and state net operating loss carryforwards of approximately $102,000, which can be used to offset future federal income tax. The federal and state net operating loss carryforwards expire at various dates through 2028. Deferred tax assets resulting from the net operating losses are reduced by a valuation allowance, when, in the opinion of management, utilization is not reasonably assured.

As of March 31, 2008, the Company had the following deferred tax assets related to net operating losses. A 100% valuation allowance has been established; as management believes it is more likely than not that the deferred tax assets will not be realized:

Federal net operating loss (at 25%)	$	25,500
State net operating loss (at 8.84%)		9,000

		34,500
Less: valuation allowance		(34,500	)

	$	-

The Company’s valuation allowance increased by approximately $12,400 during the three months ended March 31, 2008.

SN STRATEGIES CORP.

(FORMERLY KLEAN KAST SOLUTIONS, INC.)

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

MARCH 31, 2008

9.	RELATED PARTY TRANSACTIONS

From the Company’s inception through September 30, 2007, the Company utilized office space of an officer and stockholder of the Company at no charge. The Company treated the usage of the office space as additional paid-in capital and charged the estimated fair value rent of $100 per month to operations. The Company recorded total rent expense related to this arrangement totaling $0 and $300 for the three months ended March 31, 2008 and 2007, respectively.

From October 1, 2007, through March 31, 2008, the Company utilized office space of an officer and stockholder of the Company in exchange for $1,000 per month. Rent expense related to the arrangement totaled $3,000 for the three months ended March 31, 2008.

10.	DISCONTINUED OPERATIONS

In 2007, the Company abandoned its waterproof and protective cast cover business. A loss on operations for this business has been reclassified and presented as a single line item in the statements of operations.

11.	SUBSEQUENT EVENT

On April 15, 2008, the Company entered into a promissory note agreement to obtain a loan for $13,000. Under the terms of the promissory note agreement, the principal and any unpaid accrued interest shall be due and payable on demand. The note shall accrue interest at the rate of 10% per annum. The note may be prepaid at any time, at the option of the Company, in whole or in part without penalty.

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

This following information specifies certain forward-looking statements of management of the company. Forward-looking statements are statements that estimate the happening of future events and are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology, such as “may”, “shall”, “could”, “expect”, “estimate”, “anticipate”, “predict”, “probable”, “possible”, “should”, “continue”, or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.

The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. We cannot guaranty that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.

Critical Accounting Policies and Estimates. Our Management’s Discussion and Analysis of Financial Condition and Results of Operations section discusses our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The most significant accounting estimates inherent in the preparation of our financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources.

These accounting policies are described at relevant sections in this discussion and analysis and in the notes to the financial statements included in our Annual Report on Form 10-Q for the three months ended March 31, 2008.

Liquidity and Capital Resources. We had cash of $163 and prepaid expense of $3,750 as of March 31, 2008, which equals $3,913, our total current assets as of that date. Our total assets of $31,413 as of March 31, 2008, included our current assets of $3,913, and other assets which are comprised of an investment of $27,500. That investment is represented by the 201,343 shares of common stock that we now own of Magic Cow, Inc.

From May to June 2007, we raised $74,000 in a private placement in exchange for 925,000 shares of our common stock. We used a significant portion of those proceeds for the loan to Fliva, Inc. Specifically, we entered into a convertible promissory note and warrant agreement with Fliva, Inc. pursuant to which we loaned $25,000 to Fliva, Inc. in exchange for the right to convert those funds into shares of common stock of Fliva, Inc. and the right to purchase additional shares of common stock of Fliva, Inc. On November 8, 2007, we converted the note receivable balance of $25,000 into 625,000 shares of Fliva’s common stock at the conversion rate of $0.04 per share. In addition, as consideration for converting the note receivable, the warrants were exercised in exchange for accrued interest of $625 resulting in us receiving an additional 62,500 shares of Fliva’s common stock. On November 12, 2007, Fliva, Inc. was acquired by Magic Cow, Inc. pursuant to a Share Exchange Agreement, which resulted in our 687,500 shares of common stock of Fliva, Inc. being exchanged for 201,343 shares of common stock of Magic Cow, Inc. We believe that the relationship with Fliva and Magic Cow, Inc. will assist us in the development of our products because the management and development teams are very experienced in the internet industry.

On January 4, 2008, we entered into a convertible promissory note for $3,000 with one of our minority shareholders. The note bears interest of 10% and has a maturity date of January 1, 2009. The conversion price is $0.10 per share. On April 15, 2008, we entered into a promissory note agreement to obtain a loan for $13,000 from one of our principal shareholders. Under the terms of the promissory note agreement, the principal and any unpaid accrued interest shall be due and payable on demand. The note shall accrue interest at the rate of 10% per annum. We used those funds for working capital.

Our current liabilities were $45,570 as of March 31, 2008, which was represented by accounts payable of $41,770, income taxes payable of $800 and $3,000 represented by a convertible note payable. We had no other liabilities and no long term commitments or contingencies as of March 31, 2008.

During 2008, we expect to incur significant accounting costs associated with the audit and review of our financial statements. We expect that the legal and accounting costs of being a public company will continue to impact our liquidity and we will need to obtain funds to pay those expenses. Other than the anticipated increases in legal and accounting costs due to the reporting requirements of being a reporting company, we are not aware of any other known trends, events or uncertainties, which may affect our future liquidity. We had no long term liabilities, commitments or contingencies.

In July 2007, we filed a Registration Statement on Form SB-2 for the registration of 1,025,000 shares of our issued and outstanding common stock. On August 6, 2007, our registration statement was declared effective by the Securities and Exchange Commission. The purpose of the SB-2 was to register shares of common stock held by our existing shareholders.

Results of Operations.

For the three months ended March 31, 2008 as compared to the three months ended March 31, 2007.

Revenues. We had revenues of $2,962 for the three months ended March 31, 2008, as compared to no revenues for the three months ended March 31, 2008. Those revenues are related to services that we provide to a sales and marketing company. We hope to generate more significant revenues as continue operations and implement our business plan.

Operating Expenses. For the three months ended March 31, 2008, our total operating expenses were $30,121, as compared to $300 of total operating expenses for the three months ended March 31, 2007. The increase in total operating expenses is primarily due to the increase in professional fees, which is attributed to the increased legal expenses and accounting expenses related to the audit and review of our financial statements and other expenses related to being a public company. We expect that we will continue to incur significant legal and accounting expenses related to being a public company. For the three months ended March 31, 2008, we had legal and professional expenses of $21,782, dues and fees of $3,932, rent of $3,000 and general and administrative expenses of $1,461. In comparison, for the three months ended March 31, 2007, we had no legal and professional expenses, no dues and fees expenses, rent expenses of $300 and no general and administrative expenses.

Other Income. For the three months ended March 31, 2008, we also had other expense of $73, which was interest from our convertible promissory note for $3,000 with one of our minority shareholders. We had no other income for the three months ended March 31, 2007.

Net Income or Loss. For the three months ended March 31, 2008, our loss from continuing operations was $27,232, and after provision for income taxes of $800, our net loss was $28,032. This is in comparison to the three months ended March 31, 2007, where our loss from continuing operations was $300, and after provision for income taxes of $800, our net loss was $1,100. The increase in our net loss for three months ended March 31, 2008, was due an increase in operating expenses between the two periods as a result of being a public company. We expect to continue to incur net losses for the foreseeable future and until we generate significant revenues.

Our Plan of Operation for the Next Twelve Months. To effectuate our business plan and continue operations during the next twelve months, we need to raise additional funds. During the next three to six months, our primary objective is to begin several blogs which provide commentary on the dining and entertainment in various cities and geographic areas. We believe that we will need to spend approximately $10,000 to start blogs in several cities and geographic areas. Part of our business strategy is to pay bloggers with shares of our common stock and/or stock options pursuant to a stock option plan. Therefore, we believe that our ability to entice potential new bloggers to work for us is greatly enhanced now that our common stock is eligible for quotation on the OTC Bulletin Board. We believe that we will access to developers who can help us develop our widgets and blogs. We also intend to look for opportunities to work with other companies that will assist us in our development.

During the next six to twelve months, we need to build our user base, monetize our user base and begin generating revenues. In addition, in order to market and promote our services, we will need to raise significant capital. Our failure to market and promote our services will hinder our ability to increase the size of our operations and generate revenues. If we are not able to generate additional revenues that cover our estimated operating costs, our business may ultimately fail.

We have cash of $163 as of March 31, 2008. In the opinion of management, available funds will not satisfy our working capital requirements for the next twelve months. Our forecast for the period for which our financial resources will be adequate to support our operations involves risks and uncertainties and actual results could fail as a result of a number of factors. We intend to pursue capital through public or private financing as well as borrowings and other sources, such as our officers, director and principal shareholders. We cannot guaranty that additional funding will be available on favorable terms, if at all. If adequate funds are not available, we hope that our officers, director and principal shareholders will contribute funds to pay for our expenses to achieve our objectives over the next twelve months. We hope we will be able to raise additional funds from some of our current shareholders now that we are eligible for quotation on the OTC Bulletin Board.

We are not currently conducting any research and development activities other than the development of our website which we expect the total cost to be approximately $1,500. We do not anticipate that we will purchase or sell any significant equipment. In the event that we generate significant revenues and expand our operations, then we may need to hire additional employees or independent contractors as well as purchase or lease additional equipment.

Because we have limited operations and assets, we may be considered a shell company as defined in Rule 12b-2 of the Securities Exchange Act of 1934. Accordingly, we have checked the box on the cover page of this report that specifies we are a shell company.

Off-Balance Sheet Arrangements. We have no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures. We maintain controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon their evaluation of those controls and procedures performed as of March 31, 2008, the date of this report, our chief executive officer and the principal financial officer concluded that our disclosure controls and procedures were effective.

Item 4(T). Controls and Procedures.

Changes in internal controls. There were no changes in our internal control over financial reporting that occurred during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

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

Item 1A. Risk Factors.

Not applicable.

Item 3. Defaults Upon Senior Securities

Item 4. Submission of Matters to Vote of Security Holders

Item 5. Other Information