| Description of Business and Summary of Significant Accounting Policies | NOTE
1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Quanta,
Inc (formerly “Bioanomaly”), a California corporation, was incorporated on December 27, 2016 and commenced operations
in 2017. On June 6, 2018, Bioanomaly completed a merger with Freight Solution, Inc (“Freight Solution”), a Nevada
corporation. Pursuant to the merger agreement, all the shareholders of Bioanomaly exchanged all of their shares of Bioanomaly
for an aggregate of 21,908,810 newly issued shares of Freight Solution’s common stock. After the merger was completed, the
Bioanomaly shareholders owned approximately 77% of the outstanding shares of common stock of Freight Solution and the original
shareholders of Freight Solution owned approximately 23% of the outstanding shares of common stock of Freight Solution. The transaction
was accounted for as a reverse merger (recapitalization) with Bioanomaly deemed to be the accounting acquirer and Freight Solution
deemed to be the legal acquirer. Upon the closing, Bioanomaly changed its name to Quanta, Inc. (the “Company”). The
financial statements presented herein are those of the accounting acquirer (i.e., Bioanomaly) given the effect of the issuance
of 6,500,000 shares of common stock upon completion of the transaction. In addition, the Company incurred expenses of $495,760
in connection with the reverse merger. The
Company is an applied science business focused on increasing energy levels of plant matter and increasing performance within the
human body. Going
Concern The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets
and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying
financial statements, for the six months ended June 30, 2019, the Company incurred a net loss of $2,089,273 and used cash in
operating activities of $518,436, and at June 30, 2019, the Company had a had a working capital deficiency of $236,586. These
factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date
that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in
its report on the Company’s December 31, 2018 financial statements, has expressed substantial doubt about the
Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments
that might be necessary if the Company is unable to continue as a going concern. At
June 30, 2019, the Company had cash on hand in the amount of $29,100. Subsequent to the June 30, 2019 the Company received $340,000
for subscriptions for shares of common stock to be issued in a private placement. Management estimates that the current funds
on hand will be sufficient to continue operations through the next six months. The Company’s ability to continue as a going
concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management believes
the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they
become due. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be
on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain
undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the
case of equity financing Basis
of presentation The
accompanying unaudited condensed consolidated financial statements as of and for the three and six months ended June 30, 2019
and 2018, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
GAAP”) for interim financial information and with the rules and regulations of the United States Securities and Exchange
Commission (the “SEC”) to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation of the financial position, results of operations and
cash flows for the interim periods have been included. The results of operations for the six months ended June 30, 2019 are not
necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2019. The Condensed
Consolidated Balance Sheet information as of December 31, 2018 was derived from the Company’s audited Consolidated Financial
Statements as of and for the nine-month period ended December 31, 2018, included in the Company’s Annual Report on Form
10-KT filed with the SEC on April 16, 2019. These financial statements should be read in conjunction with that report. The
consolidated financial statements include the accounts of Quanta Inc, and its wholly-owned subsidiary, Bioanomaly, Inc. Intercompany
transactions have been eliminated in consolidation. Use
of estimates The
preparation of financial statements in conformity with generally accepted accounting principles 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. Significant
accounting estimates include certain assumptions related to, among others, impairment analysis of long-term assets, valuation
allowance on deferred income taxes, assumptions used in valuing stock instruments issued for services, and the accrual of potential
liabilities. Actual results may differ from these estimates. Revenue The
Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers The
Company’s revenue primarily consists of revenue from sales of its CBD products. Generally, the Company’s performance
obligations are transferred to the customer at a point in time, typically upon delivery of products. The Company offers no discounts,
rebates, rights of return, or other allowances to clients which would result in the establishment of reserves against service
revenue. Additionally, to date, the Company has not incurred incremental costs in obtaining a client contract. Cost of revenue
includes direct costs and fees related to the sale of our products. The
Company also recognizes revenue from an exclusive distribution agreement. The Company’s revenue from the exclusive distribution
agreement is considered revenue from a symbolic intellectual property (IP) and is recognized over the term of the agreement. Leases Prior
to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases Leases, Share-Based
Payments The
Company issues stock options and warrants, shares of common stock, and equity interests as share-based compensation to employees
and non-employees. The Company accounts for its share-based compensation to employees in accordance with FASB ASC 718, Compensation
– Stock Compensation . Stock-based compensation cost is measured at the grant date, based on the estimated fair value of
the award, and is recognized as expense over the requisite service period. In
prior periods through December 31, 2018, the Company accounted for share-based compensation issued to non-employees and consultants
in accordance with the provisions of FASB ASC 505-50 , Equity - Based Payments to Non-Employees In
June 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-07, Compensation - Stock
Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Net
Loss per Share Basic
loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares
outstanding during the period. Diluted loss per share reflects the potential dilution, using the treasury stock method that could
occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the
issuance of common stock that then shared in the loss of the Company. In computing diluted loss per share, the treasury stock
method assumes that outstanding warrants and convertible notes are exercised and the proceeds are used to purchase common stock
at the average market price during the period. Warrants and convertible notes may have a dilutive effect under the treasury stock
method only when the average market price of the common stock during the period exceeds the exercise price of the options and
warrants. For
the six months ended June 30, 2019, the dilutive impact 7,000,000 unvested restricted shares of the Company’s common stock
have been excluded because their impact on the loss per share is anti-dilutive. For the six months ended June 30, 2018, the dilutive
impact of notes payable convertible into 3,771,000 shares of the Company’s common stock have been excluded because their
impact on the loss per share is anti-dilutive. Fair
Value of Financial Instruments The
Company follows the authoritative guidance issued by the FASB for fair value
measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the
principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the
measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three
broad levels as follows: Level
1—Quoted prices in active markets for identical assets or liabilities. Level
2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level
3—Unobservable inputs based on the Company’s assumptions. The
Company is required to use of observable market data if such data is available without undue cost and effort. The
Company believes the carrying amount reported in the balance sheet for cash and cash equivalents, accounts receivable, accounts
payable and accrued liabilities, and notes payable, approximate their fair values because of the short-term nature of these financial
instruments Concentrations
of risks For
the three and six months ended June 30, 2019 and June 30, 2018, no customer accounted for 10% or more of revenue or accounts receivable
at period-end. For
the three and six months ended June 30, 2019 and June 30, 2018, no vendor accounted for 10% or more of the Company’s cost
of revenues, or accounts payable at period-end. The
Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits, which may
from time to time exceed the federally insured limit of $250,000. The Company believes that no significant concentration of credit
risk exists with respect to its cash balances because of its assessment of the creditworthiness and financial viability of the
financial institution. Segments The
Company operates in one segment for the development and distribution of our CBD products. In accordance with the “ Segment
Reporting Recent
Accounting Pronouncements In
June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), Other
recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified
Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact
on the Company’s present or future consolidated financial statements. |
