| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization
and Purpose Credex
Corporation (the “Company”) was incorporated in the State of Florida on September 2, 2005. The entity currently has no operations
and meets the definition of a shell company as defined in the Rule 12b-2 of the Securities Exchange Act of 1934, as amended. Change
in Ownership On
April 8, 2021, the Company entered into a Securities Purchase Agreement (the “SCRED SPA”) by and among the Company, Southern
Colorado Real Estate Developers, LLC (“SCRED”), Service Merchants Corp., a stockholder of the Company and a related party
(“SMC”), and Earth Wind & Power Corp., a stockholder of the Company and a related party (“EWP”) (each individually,
a “Party”, collectively as the “Parties”). Pursuant
to the SCRED SPA, SMC agreed to sell to SCRED, on the closing date, 53,492,500 0.001 342,945 5,000,000 32,055 On
April 30, 2021, the Company closed the transactions contemplated under the SCRED SPA, resulting in SCRED acquiring 99.2 58,992,500 53,492,500 342,945 5,000,000 32,055 SCRED
is real estate entity that is focused on acquiring, upgrading, and leasing its properties to state-licensed cannabis businesses in the
State of Colorado. Pursuant
to the terms of the SCRED SPA, at the closing:
● Russell
Heaton, the then-sole director and officer of the Company, increased the size of the Company’s board to five persons, and elected
Lawrence Taube, James Woodend, Jennifer Woodend and Hayden Witt as directors on the Company’s board. Mr. Heaton also appointed
Lawrence Taube as the Chief Executive Officer and Chief Financial Officer of the Company, James Woodend as the President of the Company,
and Jennifer Woodend as the Secretary of the Company. Thereafter, Mr. Heaton resigned from all officer and director positions with
the Company, leaving the newly appointed individuals as the sole officers and directors of the Company.
● EWP
entered into a Loan Forgiveness Agreement with the Company, pursuant to which EWP forgave previous loans made to the Company in the
total amount of $ 198 9,700 12,889 59,150 On
June 17, 2021, The Cannabis Depot Holding Corp., a Nevada corporation (“Cannabis Depot”), purchased from SCRED all 58,492,500 390,000 99.2 As
a result of this transaction, a change of control of the Company occurred on June 17, 2021. Joe Cleghorn is the Manager and President
of SCRED, and therefore was deemed to have voting and dispositive power over the shares of the Company’s common stock held by SCRED
prior to the sale of SCRED’s shares to Cannabis Depot. Lawrence Taube, the Company’s Chief Executive Officer, Chief Financial
Officer and a member of the Company’s board of directors, is the Chief Executive Officer and sole director of Cannabis Depot, and
is deemed to have voting and dispositive power over the 58,492,500 Basis
of Presentation The
accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally
accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission
(the “SEC”) for interim financial reporting. In the opinion of management, all adjustments necessary in order for the financial
statements to be not misleading have been properly reflected herein. The results for the three months ended June 30, 2021 are not necessarily
indicative of the results of operations for the full year. These financial statements and related footnotes should be read in conjunction
with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2020, filed with the SEC on March 31, 2021. Accounting
Basis The
Company uses the accrual basis of accounting and GAAP. The Company has adopted a December 31 fiscal year end. Revenue
Recognition The
Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured. Cash
and Equivalents For
purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of less than three
months to be cash equivalents. Advertising The
Company expenses advertising and promotions costs as they are incurred. Earnings
per Share Basic
earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number
of common stock shares outstanding during the year. Diluted EPS is computed by dividing net income available to common stockholders by
the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options
and warrants. The Company had no dilutive instruments outstanding at June 30, 2021. Income
Taxes The
Company follows Section 740-10-30 of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification
(“ASC”), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events
that have been included in the financial statements or tax returns. Under
this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets
and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets
are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized.
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. The effect on deferred tax assets and liabilities of a change in tax rates
is recognized in the Statements of Operations in the period that includes the enactment date. The
Company adopted section 740-10-25 of the ASC (“Section 740-10-25”) which addresses the determination of whether tax benefits
claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company
may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained
on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial
statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood
of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and
penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments
to its liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25. Stock-Based
Compensation Stock-based
compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan
and has not granted any stock options. Use
of Estimates The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Comprehensive
Income The
Company has established standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable,
the Company would disclose this information on its Statement of Stockholders’ Equity. Comprehensive income comprises equity except
those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are
required to be reported in other comprehensive income. Fair
Value of Financial Instruments The
Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized
or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be
received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company
considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions
that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions
and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value
into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant
to the fair value measurement: Level
1 – Quoted prices in active markets for identical assets or liabilities. Level
2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical
or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market
data for substantially the full term of the assets or liabilities. Level
3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants
would use in pricing the asset or liability. In
accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other
items at fair value. The Company has not elected the fair value option for any eligible financial instruments. As
of June 30, 2021 and December 31, 2020, the carrying value of accounts payable and loans that are required to be measured at fair value,
approximated fair value due to the short-term nature and maturity of these instruments. Recent
Accounting Pronouncements We
have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements
will have a material impact on the Company. |
