| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use
of Estimates The
financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
Management is required 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 revenue and expenses during the reporting period. Actual results could differ from those
estimates. Cash
and Cash Equivalents Cash
equivalents include investment instruments and time deposits purchased with a maturity of three months or less. As of December 31, 2022,
and December 31, 2021, the Company did no Accounts
Receivable Accounts
receivable are stated at the amount management expects to collect from outstanding balances. The Company provides for probable uncollectible
amounts based upon its assessment of the current status of the individual receivables and after using reasonable collection efforts.
The allowance for doubtful accounts as of December 31, 2022 and 2021 was zero Inventory Inventory,
consisting solely of finished goods, are stated at the lower of cost (first-in, first-out method) or net realizable value (“NRV”).
If necessary, the Company provides allowances to adjust the carrying value of its inventories to NRV when NRV is below cost. There were
no such adjustments in 2022 or 2021. Revenue
Recognition Revenue
from sales of products is recognized when the related performance obligation is satisfied. The Company’s performance obligation
is satisfied upon the shipment or delivery of products to customers. The Company’s products are sold on cash and credit terms which
are established in accordance with standardized industry practices and typically require payment within 30 days of delivery. Costs incurred
for sales incentives and discounts are accounted for as reductions in revenue. Deductions
from Revenue Costs
incurred for sales incentives and discounts are accounted for as a reduction in revenue. These costs include payments to customers for
performing merchandising activities on our behalf, including in-store displays, promotions for new items and obtaining optimum shelf
space. Shipping
and Handling Costs Shipping
and Handling Costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line
Selling, General and Administrative Expenses in our Statements of Operations. Net
(Loss)/Income Per Common Share The
Company computes per share amounts in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification (“ASC”) Topic 260, “Earnings per Share”. ASC Topic 260 requires presentation of basic and diluted
EPS. Basic EPS is computed by dividing the loss available to common stockholders by the weighted-average number of common shares outstanding
for the period. Diluted EPS is based on the weighted average number of shares of common stock and common stock equivalents outstanding
during the periods. The
following potentially dilutive securities have been excluded from the computation of weighted average shares outstanding as they would
have had an anti-dilutive impact on the Company’s net income/(loss) per common share: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED
FROM COMPUTATION OF EARNINGS PER SHARE
Expiration Exercise As of December 31,
Issued To Date Price 2022 2021
Shares underlying options outstanding Glenn Simpson 4/6/2024 $ 0.16 0 159,054 Income
Taxes The
Net Operating Loss Carryforwards for federal taxes was $ 3,803,700 ,
at December 31, 2022 and 3,746,752 3,803,700 3,746,752 798,777 786,818 342,333 337,208 1,141,110 1,124,026 zero 39,632 16,985 The
Company provides for income taxes using the asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities
are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect
when these differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available
evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company did no As
of December 31, 2022, and December 31, 2021, the Company had no SCHEDULE OF DEFERRED TAX ASSETS
Tax Rate 2022 2021
Deferred Tax Assets as of December 31, Net
Operating Loss Carryforwards as of
December 31,
Tax Rate 2022 2021 2022 2021
Federal 21 % $ 798,777 $ 786,818 $ 3,803,700 $ 3,746,752
State of New Jersey 9 % $ 342,333 $ 337,208 $ 3,803,700 $ 3,746,752
Total $ 1,141,110 $ 1,124,026 $ 7,607,400 $ 7,493,504 Fair
value of financial instruments The
carrying amounts of financial instruments, which include cash, accounts receivable, accounts payable and accrued expenses approximate
their fair values due to their short-term nature. |
