| COMMITMENTS AND CONTINGENCIES | NOTE
7 – COMMITMENTS AND CONTINGENCIES Leases The
Company reported the following summary of non-cancellable operating leases in accordance with the provisions of ASC 842 Topic 842 “Leases”
Summary
of Non-Cancellable Operating Leases: SCHEDULE OF NON-CANCELLABLE OPERATING LEASES
Vehicle Office
Lease Total
Right-of-use asset, net $ 17,412 $ 40,589 $ 58,001
Current lease liabilities $ 15,360 $ 23,635 $ 38,995
Non-current lease liabilities - 17,828 17,828
Total
operating lease liabilities $ 15,360 $ 41,463 $ 56,823 Vehicle On
July 12, 2022, the Company executed a non-cancellable operating lease for a vehicle with the lease commencing on July 12, 2022 for a
three-year term 10,000 1,793 8,207 6,063 12,127 6,063 12,127 July 11, 2025 Supplemental
balance sheet information related to the vehicle lease is as follows as of September 30, 2024: SCHEDULE
OF SUPPLEMENTAL INFORMATION UNDER OPERATING LEASE
Operating Lease
Right-of-use
asset, net $ 17,412
Current lease liabilities $ 15,360
Non-current lease liabilities -
Total
operating lease liabilities $ 15,360
Weighted average remaining
lease term (years) 0.67
Weighted average discount rate per annum 12 % As
the lease does not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at the
lease commencement date in determining the present value of the lease payment, which is reflective of the specific term of the lease. Anticipated
future costs are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES
For
the years ending Vehicle
March 31, 2025 (remaining) $ 10,759
March 31, 2026 5,379
March
31, 2027
Total lease payments 16,138
Less: imputed interest (778 )
Present value of lease liabilities $ 15,360 Office
Lease – J Plaza On
April 13, 2023, the Company executed a non-cancellable office space in a retail shopping center, for a monthly base rent of $ 2,196 1,531 The lease commenced on April 13, 2023 and extends for a term of three years and two
months. The Company has an option to extend the lease for a period of 36 months after completion of the initial lease term. The Company
has not included the extension period in calculating the present value of the lease. The rent is payable on the first day of each month,
commencing either (1) opening of the business after tenant improvements, or (2) sixty days after the lease execution date. 8,119 4,391 The
Company recorded rent expense including common area maintenance of $ 11,359 22,718 6,767 13,534 BLUEONE
CARD, INC. NOTES
TO CONDENSED FINANCIAL STATEMENTS September
30, 2024 (Unaudited) Supplemental
balance sheet information related to the office lease is as follows as of September 30, 2024: SCHEDULE OF SUPPLEMENTAL INFORMATION UNDER OPERATING LEASE
Operating Lease
Right-of-use
asset, net $ 40,589
Current lease liabilities $ 23,635
Non-current lease liabilities 17,828
Total
operating lease liabilities $ 41,463
Weighted average remaining
lease term (years) 1.58
Weighted average discount rate per annum 12 % As
the lease does not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at the lease
commencement date in determining the present value of the lease payment, which is reflective of the specific term of the lease. Anticipated
future costs are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES
For
the years ending Office
Lease
March 31, 2025 (remaining) $ 13,572
March 31, 2026 27,755
March 31, 2027 4,660
Total lease payments 45,987
Less: imputed interest (4,524 )
Present value of lease liabilities $ 41,463 Office
Leases - Others On
August 27, 2020, the Company formally executed a month-to-month cancellable operating lease for leasing office space in an executive
suite, commencing on September 1, 2020 for $ 259 259 279 289 867 1,734 867 1,734 On
October 26, 2020, the Company executed a non-cancellable operating lease agreement for its principal office for a monthly rent of $ 5,500 12 5,500 6,500 19,500 39,000 19,500 39,000 The
Company has recorded total rent expense for all above leases of $ 37,568 75,357 35,768 73,558 The
Company has considered the provisions of ASC 842 Topic 842 “Leases” Employment
Agreement On
December 1, 2020, the Company entered into an Employment Agreement (the “Agreement”) with its President, CEO, Secretary,
and Chairman (the “Officer”). The initial term of the Agreement is for three years and, if written notice is not provided
within 90 days of the termination of each term, the term is automatically extended for an additional one-year term. The Agreement may
be terminated by either party upon 90 days’ prior written notice. Whether the Agreement is terminated without “Cause,”
for “Good Reason,” or for “Cause,” as defined in the Agreement, determines what compensation is owed and when.
There is also a 30-day cure period for any termination for “Cause,” as defined in the Agreement. The Agreement contains confidentiality,
non-compete, and non-solicitation provisions. Pursuant to the terms of Agreement, Mr. Koh is entitled to bonuses, reimbursement of expenses,
a vehicle allowance, four weeks of paid vacation, and other incentives. The Agreement does provide for payments to be made as a result
of any “Change in Control,” as defined in the agreement. Pursuant
to the Agreement, the Officer is entitled to an annual base salary of $ 150,000 10 BLUEONE
CARD, INC. September
30, 2024 (Unaudited) Reseller
Agreement with Expanse Financial Technologies, Inc. (“ExpanseFT”) Effective
February 27, 2024, the Company entered into an Authorized Reseller Agreement (the “Reseller Agreement”) with ExpanseFT (the
“Program Manager”) pursuant to which the Company agreed to be a reseller or an independent sales representative of the Program
Manager and its products, and the Program Manager has agreed to support our reselling efforts. The Reseller Agreement does not provide
exclusivity and there are no volume sales requirements pertaining to our reselling efforts. The
term of the Reseller Agreement is for five (5) years. The Reseller Agreement is renewable by mutual consent of each of the parties for
two-year terms unless either party provides written notice to the other party at least 180 days prior to the termination of the term
of the Reseller Agreement. The Reseller Agreement may be terminated by either party upon a material breach of either party with the non-breaching
party providing written notice to the breaching party and the breach remaining uncured with 30 days of the notice. The Reseller Agreement
may also be terminated by either party by written notice if either party ceases to carry on as a going concern, becomes the object of
the institution of voluntary or involuntary proceedings in bankruptcy, insolvency, or liquidation, makes an assignment for the benefit
of creditors, or if a receiver is appointed with respect to all or a substantial part of its assets. The Program Manager shall provide
us with prepaid debit and gift cards of requested quantity, create a range of prepaid debit accounts, using banking identification numbers
provided to the Program Manager by our issuing bank and produce and deliver plastic card production tape media, including personal identification
number (PIN) generation for the range of created prepaid debit accounts. Upon the first loading of value to a prepaid debit account,
the Program Manager will create and activate a cardholder account on the Program Manager’s system and create linkage between the
cardholder account on ExpanseFT system and our cardholder aggregate settlement account at our issuing bank or another bank. The
Company agreed to pay for all new programming outside the scope listed in this agreement such as but not limited to mobile apps, websites
back office and the integrations with the sponsoring banks and processors as we go. The Company agreed to pay a one-time commitment fee
of $ 60,000 42,500 5,000 SCHEDULE
OF MINIMUM MONTHLY PROGRAM MANAGEMENT
Months 0-3 $ -
Months 4 – 12 5,000
Year 2 10,000
Year 3 and thereafter 15,000 Legal
Costs and Contingencies In
the normal course of business, the Company incurs costs to hiring and retain external legal counsel to advise it on regulatory, litigation
and other matters. The Company expenses these costs as the related services are received. If
a loss is considered probable and the amount can be reasonable estimated, the Company recognizes an expense for the estimated loss. If
the Company has the potential to recover a portion of the estimated loss from a third party, the Company makes a separate assessment
of recoverability and reduces the estimated loss if recovery is also deemed probable. The Company was not aware of any loss contingencies
as of September 30, 2024. BLUEONE
CARD, INC. NOTES
TO CONDENSED FINANCIAL STATEMENTS September
30, 2024 (Unaudited) |
