| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation and Principles of Consolidation The
accompanying consolidated financial statements include the accounts of FDCTech, Inc. and its wholly-owned subsidiary. We have eliminated
all intercompany balances and transactions. The Company has prepared the consolidated financial statements consistent with the accounting
policies adopted by the Company in its financial statements. The Company has measured and presented its consolidated financial statements
in US Dollars, the currency of the primary economic environment in which it operates (also known as its functional currency). Financial
Statement Preparation and Use of Estimates The
Company prepared consolidated financial statements according to accounting principles generally accepted in the United States of America
(“GAAP”). The preparation of consolidated financial statements in conformity with GAAP requires management to make certain
estimates, judgments, and assumptions. This could affect the reported amounts of assets and liabilities and the related disclosures at
the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the periods presented. Estimates
include revenue recognition, the allowance for doubtful accounts, website and internal-use software development costs, recoverability
of intangible assets with finite lives, and other long-lived assets. Actual results could materially differ from these estimates. Actual
results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty
in the current economic environment due to the coronavirus (“COVID-19”). Cash
and Cash Equivalents Cash
and cash equivalents include cash on hand, deposits held with banks, and other short-term, highly liquid investments with three months
or less of original maturities. On September 30, 2024, and December 31, 2023, the Company had $ 27,989,417 31,316,461 NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Accounts
Receivable Accounts
Receivable primarily represent the amount due from four (4) technology customers. In some cases, the customer receivables are due immediately
on demand; however, in most cases, the Company offers net 30 terms or n/30, where the payment is due in full 30 days after the invoice’s
date. The Company has based the allowance for doubtful accounts on its assessment of the collectability of customer accounts. The Company
regularly reviews the allowance by considering historical experience, credit quality, the accounts receivable balances’ age, and
economic conditions that may affect a customer’s ability to pay and expected default frequency rates. Trade receivables are written
off at the point when they are considered uncollectible. At
September 30, 2024, and December 31, 2023, the Management determined that allowance for doubtful accounts was $ 22,382 21,526 0 10,500 Sales,
Marketing, and Advertising The
Company recognizes sales, marketing, and advertising expenses when incurred. The
Company incurred $ 1,211,724 610,274 The
sales, marketing, and advertising expenses represented 6.67 8.78 Revenue
Recognition On
January 1, 2019, the Company adopted ASU 2014-09 Revenue from Contracts with Customers. The majority of the Company’s revenues
come from two contracts – IT support and maintenance (‘IT Agreement’) and software development (‘Second Amendment’)
that fall within the scope of ASC 606. The
Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration
the Company expects to receive in exchange for those goods or services as per the contract with the customer. As a result, the Company
accounts for revenue contracts with customers by applying the requirements of Accounting Standards Codification Topic 606, Revenue from
Contracts with Customers (Topic 606), which includes the following steps:
● Identify
the contract or contracts and subsequent amendments with the customer.
● Identify
all the performance obligations in the contract and subsequent amendments.
● Determine
the transaction price for completing performance obligations.
● Allocate
the transaction price to the performance obligations in the contract.
● Recognize
the revenue when, or as, the Company satisfies a performance obligation. NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The
Company adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of January 1, 2019. The Company
presents results for reporting periods beginning after January 1, 2019, under ASC 606, while prior period amounts are reported following
legacy GAAP. In addition to the above guidelines, the Company also considers implementing guidance on warranties, customer options, licensing,
and other topics. The Company considers revenue collectability, methods for measuring progress toward complete satisfaction of a performance
obligation, warranties, customer options for additional goods or services, nonrefundable upfront fees, licensing, customer acceptance,
and other relevant categories. The
Company accounts for a contract when the Company and the customer (‘parties’) have approved the contract and are committed
to performing their respective obligations. Each party can identify its rights, obligations, and payment terms; the contract has commercial
substance. The Company will probably collect all of the consideration. Revenue is recognized when performance obligations are satisfied
by transferring control of the promised service to a customer. The Company fixes the transaction price for goods and services at contract
inception. The Company’s standard payment terms are generally net 30 days and, in some cases, due upon receipt of the invoice. The
Company considers the change in scope, price, or both as contract modifications. The parties describe contract modification as a change
order, a variation, or an amendment. A contract modification exists when the parties approve a modification that either creates new or
changes existing enforceable rights and obligations. The Company assumes a contract modification by oral agreement or implied by the
customer’s customary business practice when agreed in writing. If the parties to the contract have not approved a contract modification,
the Company continues to apply the existing contract’s guidance until the contract modification is approved. The Company recognizes
contract modification in various forms –partial termination, an extension of the contract term with a corresponding price increase,
adding new goods or services to the contract, with or without a corresponding price change, and reducing the contract price without a
change in goods/services promised. At
contract inception, the Company assesses the solutions or services, or bundles of solutions and services, obligated in the contract with
a customer to identify each performance obligation within the contract and then evaluate whether the performance obligations are capable
of being distinct and distinct within the context of the agreement. Solutions and services that are incapable of being distinct and distinct
within the contract context are combined and treated as a single performance obligation in determining the allocation and recognition
of revenue. For multi-element transactions, the Company allocates the transaction price to each performance obligation on a relative
stand-alone selling price basis. The Company determines the stand-alone selling price for each item at the transaction’s inception
involving these multiple elements. Since
January 21, 2016 (‘Inception’), the Company has derived its revenues mainly from consulting services, technology solutions,
and customized software development. The Company recognizes revenue when it has satisfied a performance obligation by transferring control
over a product or delivering a service to a customer. We measure revenue based on the consideration outlined in an arrangement or contract
with a customer. NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The
Company’s typic The Company’s typical performance obligations include the following:
Performance
Obligation Types
of Deliverables When
Performance Obligation is Typically Satisfied
Consulting
Services Consulting
related to Start-Your-Own-Brokerage (“SYOB”), Start-Your-Own-Prime Brokerage (“SYOPB”), Start-Your-Own-Crypto
Exchange (“SYOC”), FX/OTC liquidity solutions and lead generations. The
Company recognizes the consulting revenues when the customer receives services over the contract length. If the customer pays the
Company in advance for these services, the Company records such payment as deferred revenue until the Company completes the services.
Technology
Services Licensing
of Condor Risk Management Back Office (“Condor Risk Management”), Condor FX Pro Trading Terminal, Condor Pricing Engine,
Crypto Trading Platform (“Crypto Web Trader Platform”), and other cryptocurrency-related solutions. The
Company recognizes ratably over the contractual period that the services are delivered, beginning on the date such service is made
available to the customer. Licensing agreements are typically one year in length with an option to cancel by giving notice; customers
have the right to terminate their agreements if the Company materially breaches its obligations under the agreement. Licensing agreements
do not provide customers the right to take possession of the software. The Company charges the customers a set-up fee for installing
the platform, and implementation activities are insignificant and not subject to a separate fee.
Software
Development Design
and build development software projects for customers, where the Company develops the project to meet the design criteria and performance
requirements specified in the contract. The
Company recognizes the software development revenues when the Customer obtains control of the deliverables as stated in the Statement-of-Work
contract. The
Company assumes that the goods or services promised in the existing contract will be transferred to the customer to determine the transaction
price. The Company believes that the contract will not be canceled, renewed, or modified; therefore, the transaction price includes only
those amounts to which the Company has rights under the present contract. For example, if the Company enters a contract with a customer
with an original term of one year and expects the customer to renew for a second year, the Company will determine the transaction price
based on the initial one-year period. When choosing the transaction price, the company first identifies the fixed consideration, including
non-refundable upfront payment amounts. To
allocate the transaction price, the Company gives an amount that best represents the consideration the entity expects to receive for
transferring each promised good or service to the customer. The Company allocates the transaction price to each performance obligation
identified in the contract on a relative standalone selling price basis to meet the allocation objective. In determining the standalone
selling price, the Company uses the best evidence of the stand-alone selling price that the Company charges to similar customers in similar
circumstances. The Company sometimes uses the adjusted market assessment approach to determine the standalone selling price. It evaluates
the market in which it sells the goods or services and estimates the price customers would pay for those goods or services when sold
separately. The
Company recognizes revenue when transferring the promised goods or services into the contract. The Company considers the “transfers”
the promised goods or services when the customer obtains control of the goods or services. The Company believes a customer “obtains
control” of an asset when it can directly use and substantially obtain all the remaining benefits from an asset. The Company recognizes
deferred revenue related to services it will deliver within one year as a current liability. The Company presents deferred revenue related
to services that the Company will provide more than one year into the future as a non-current liability. According
to the contract’s terms and conditions, the Company invoices the customer at the beginning of the month for the month’s services.
The invoice amount is due upon receipt. The Company recognizes the revenue at the end of each month, equal to the invoice amount. NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Wealth
Management AD
Advisory Services Pty (ADS), the Company’s wealth management revenue, primarily consists of advisory revenue, commission revenue
from insurance products, fees to prepare the statement of advice, rebalancing portfolio, and other financial planning activities. ADS
is authorized and regulated by the Australian Securities & Investments Commission (ASIC) to conduct licensing activities in Australia. ASC
606 establishes a five-step model for revenue recognition aimed at enhancing comparability and transparency across entities, industries,
and capital markets. The Company only recognizes revenue that reflects the transfer of promised goods or services to customers in exchange
for the consideration to which the entity expects to be entitled. For
ADS, a contract is an agreement between ADS and a client that creates enforceable rights and obligations, encompassing advisory services,
insurance product commissions, and other financial planning activities. Contracts may be written, oral, or implied by customary business
practices and are identified when both parties approve the agreement; each party can identify rights regarding the goods or services
to be transferred, establish payment terms, the contract has commercial substance, and collection of payment is probable. A
performance obligation is a promise in a contract to transfer a distinct good or service to the Customer. For ADS, performance obligations
may include:
● Providing
ongoing financial advisory services,
● Preparing
statements of advice,
● Executing
portfolio rebalancing,
● Facilitating
the purchase of insurance products, and
● Offering
other specialized financial and estate planning services. We
evaluate these services to determine if they are distinct, considering whether the Customer can benefit from the service on its own or
with other resources readily available to the Customer and if the promise to transfer the service is separately identifiable from other
promises in the contract. The
transaction price is the amount of consideration ADS expects to be entitled to in exchange for transferring the promised goods or services
to the Customer. These services include fixed fees, commissions from insurance products, and variable consideration for performance-based
fees. ADS estimates the amount of variable consideration to which it will be entitled in a manner that reflects the likelihood and magnitude
of a revenue reversal. If
a contract includes more than one performance obligation, ADS allocates the transaction price to each performance obligation based on
its standalone selling price. When standalone selling prices are not directly observable, ADS estimates them using methods that may include
cost-plus margin, market assessment, or residual approach, considering the Customer’s perceived value of each service. ADS
recognizes revenue when (or as) a performance obligation is satisfied, i.e., when the control of the promised good or service is transferred
to the Customer. For ongoing services, revenue is recognized over time, reflecting the continuous transfer of services. For services
that are performed at a specific point in time, revenue is recognized when the service is completed. The pattern of revenue recognition
is determined based on when the Customer obtains control of the promised good or service, which for advisory services is typically throughout
the contract, and for transaction-based services (like insurance commissions or fees for specific planning activities), is at the point
in time when the transaction is executed, or the service is rendered. If we receive payments before services, we defer and recognize
them as revenue when satisfied with our performance obligation. Advisory revenue includes fees charged to clients in advisory accounts
for which we are the licensed investment advisor. We bill advisory fees weekly. NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Investment
and Margin Brokerage Business Alchemy
Markets Ltd (Alchemy Malta) and Alchemy Prime Ltd (Alchemy UK) are providers of trading services and solutions specializing in over-the-counter
(“OTC”) and exchange-traded markets for European markets. Malta Financial Services Authority (MFSA) regulates Alchemy Malta
with authorized countries, including Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Liechtenstein, Netherlands, Norway, Poland, Portugal, Romania, Slovakia,
Slovenia, Spain, Sweden. Financial Conduct Authority (FCA) regulates Alchemy UK with authorized countries such as England, Scotland,
Wales, and Northern Ireland. The
Company operates its brokerage business in two segments: retail and institutional (“clients” or “customers”).
Through its retail and institutional segment, the Company provides its customers (individuals) around the world with access to a diverse
range of global financial markets, including spot forex, precious metals, spread bets, and contracts for difference (“CFDs”)
on currencies, commodities, indices, individual equities, cryptocurrencies, bonds, and interest rate products, as well as OTC options.
The FCA defines a retail customer as a client who is not a professional or eligible counterparty. A professional client is an entity
that must be authorized or regulated to operate in the financial markets. According to the MFSA, a retail client is a client who is not
a professional client or an eligible counterparty. A professional client has the knowledge, experience, and expertise to assess the risks
and make investment decisions. We
recognize Brokerage (Trading) revenue through the principal model following the guidance outlined in ASC 606, Revenues from Contracts
with Customers. The Company primarily generates revenue through market-making and trading execution services for its clients, known as
Brokerage (Trading) revenues. The Brokerage (Trading) revenue is the Company’s largest source of revenue. Brokerage (Trading) revenue
comprises Brokerage (Trading) revenue from the retail OTC business and advisory business. OTC trading includes forex trading (“forex”),
precious metals trading, CFDs, and spread betting (in markets that do not prohibit such transactions), as well as other financial products. We
realize gains or losses when we liquidate customer transactions. We revalue unrealized gains or losses on trading positions at prevailing
market rates at the date of the balance sheet. We include them in Receivables from brokers, Payables to customers, and Payables to brokers
on the Consolidated Balance Sheets. We record changes in net unrealized gains or losses in Brokerage (Trading) revenue on the Consolidated
Statements of Operations and Comprehensive (Loss)/Income. We record Brokerage (Trading) revenue on a trade date basis. We
also generate business through an agency model by earning commissions and spreads for executing customer trades. We book these revenues
on a trade-date basis. The Company acts as an agent concerning clearing trades but is the principal on fees paid to introducing brokers.
The Company does not assume any market-making risk concerning customer trade in this business. Net
interest revenue consists primarily of the revenue generated by the Company’s cash and customer cash held at banks, as well as
funds on deposit as collateral with the Company’s liquidity providers, less interest paid to the Company’s customers. We
record interest revenue and interest expense when earned and incurred, respectively. Significant
Acquisitions The
Company completed the Acquisition of 100.00 966,379 1,362,594 The
Company completed the Acquisition of the remaining 49.90 833,621 1,175,406 The
Company estimated the total purchase price for the Acquisition(s) or Transaction(s) to be $ 2,538,000 100 Further,
the Company, Kundnani, and the current management make strategic and operational decisions for APL and AML (“Targets”). NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) As
there is no quoted market for Series B Preferred convertible stock, and the Acquisition of 100 49.90 1,800,000 The
net financial assets of 100 1,362,594 49.90 1,175,406 2,533,334 1,800,000
1.41 Table
1. Closing Acquisition Consideration Breakdown Series
B Preferred convertible stock Issued for Purchase of APL and AML SCHEDULE OF ACQUISITION CONSIDERATION BREAKDOWN
Net Financial Assets Purchase % Purchase Price ($) Type of Shares Price per Shares # of Shares
Local Currency USD ($)
Shares of
APL £ 1,118,035 1,362,594 (1) 100.00 % $ 1,362,594 Series B $ 1.41 966,379
AML € 2,255,556 2,351,192 (2) 49.90 % $ 1,175,406 Series B $ 1.41 833,621
Total $ 2,538,000 1,800,000
(1) As
of June 30, 2022, £1 = $ 1.2165
(2) As
of November 30, 2022, €1 EUR = $ 1.042 Under
ASC 805-50-15-6, based on the ownership of Kundnani and the management structure post-acquisition, we believe the following guidance
in the transactions between entities under common control subsections applies to combinations between entities or businesses under common
control:
a) The
Seller (APHL or Kundnani) transfers its controlling interest in APL and AML to the Company controlled by the Seller, directly or
indirectly through his ownership as an individual or through APHL. This transaction is a legal organization change but not the reporting
entity. The reporting entity remains the Company. The
SEC staff’s conclusions expressed during the deliberations in EITF 02-5 that common control exists between (or among) separate
entities in the following situations: An individual or enterprise holds more than 50% of the voting ownership interest of each entity.
A group of shareholders has more than 50% of the voting ownership interest of each entity, and contemporary written evidence of an agreement
to vote a majority of the entities’ shares in concert exists. Kundnani meets these criteria. We
have accounted for the Acquisition under the acquisition method of accounting per ASC 805, with the Company treated as the accounting
acquirer and Targets treated as the “acquired” Company for financial reporting purposes. We determine the Company an accounting
acquirer based on the following facts: (i) after the Acquisition(s), shareholders of the Company held the majority of the voting interest
of the combined Company; (ii) the Board of Directors of the Company possess majority control of the Board of Directors of the combined
Company; and (iii) members of the management of the Company are responsible for the management of the combined Company. As such, we have
treated the financial statements of the Company as the historical financial statements of the combined Company. The Company will present
consolidated or combined financial statements in place of financial statements of individual entities. We
have identified the Company as the legal acquirer, as it is the entity that issued securities. Comparatively, we have identified Targets
as the legal acquiree, the entity whose equity interests are acquired. NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) We
have recognized Targets ‘assets and liabilities as their carrying amounts in the combined financial statements of the controlling
party, the Company, immediately before the Acquisition. This approach does not necessitate a fair value adjustment or a recognition of
goodwill that would typically follow a standard business combination. Therefore, we have recorded assets and liabilities at book value. The
transaction’s equity structure involves the issuance of Series B preferred convertible stock valued at $ 2,538,000 The
post-acquisition consolidation process eliminates any existing intercompany transactions or balances between the Company and Target(s).
Although the initial recognition does not adjust assets and liabilities to fair value, the Company evaluates intangible assets in Target’s
financial statements on December 31, 2023. AML
Purchase Price Allocation AML’s
Balance Sheet as of November 30, 2023 (Acquisition Date): SCHEDULE OF PURCHASE PRICE ALLOCATION
Description Book Value, $
Assets:
Cash and cash equivalents (1) 3,215,638
Prepaid 5,277
Financial Assets through profit and less (2) 1,070,795
Related party guarantee (3) 1,340,432
Accrued income 1,545,557
Tax receivable (4) 175,538
Capitalized software, net 295,391
Fixed assets (5) 2,391
Total assets: $ 7,651,019
Liabilities:
Accounts Payable (6) 173,060
Financial liability at fair value through profit and loss (7) 515,906
Current liabilities - Creditors (11)
Related party advances
Customer funds (8) 2,773,824
Deferred tax liabilities (9) 348,570
Total liabilities $ 3,811,360
Net assets, (A) 3,839,660
Accumulated other comprehensive income (loss), (B) 53,605
Purchase Price, 833,621 1.41 1,175,406
Increase in APIC (A) – (B) – (C) $ 2,610,648 NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) APL
Purchase Price Allocation APL’s
Balance Sheet as of November 30, 2023 (Acquisition Date):
Description Book Value, $
Assets:
Cash and cash equivalents, including cash at liquidity provider (1) 28,562,337
Fixed assets (2) 157,520
Prepaid 405,702
Total assets: $ 29,125,559
Liabilities:
Deferred Tax (9) 430,142
Current liabilities - Creditors (10) 874,636
Customer funds (8) 26,239,126
Related party advances 2,500,619
Total liabilities $ 30,044,523
Net assets (A) (918,964 )
Accumulated other comprehensive income (loss), (B) (5,539 )
Purchase Price, 966,379 1.41 1,362,594
Increase in APIC (A) – (B) – (C) $ (2,276,019 )
(1) We
recognize cash and cash equivalents held by AML and APL and deposits in bank accounts and liquidity providers that can be accessed
on demand or within 90 days.
(2) Financial
assets at fair values for AML through profit and loss are derivative contracts in favor of AML. They are included in our other current
assets in the consolidated balance sheet as of November 30, 2023. We determine financial assets at fair values by reference to market
prices or rates quoted at the end of the reporting period. Observable market prices or rates support the valuation techniques since
their variables include only data from observable markets. We categorize AML’s derivative financial instruments as level 2.
(3) The
guarantee provided by Alchemy BVI as a parent to AML for any shortfall in the net capital.
(4) Estimated
overpaid tax to Commissioner Tax Revenue, Malta.
(5) All
property and equipment are initially recorded at historical cost and included in our fixed assets, net in the consolidated balance
sheet as of November 30, 2023. Historical cost includes expenditures directly attributable to the Acquisition of the items. We calculate
depreciation using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated
useful lives.
(6) Trade
and other payables comprise obligations to pay for goods or services acquired from suppliers in the ordinary course of business.
Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle
of the business if longer). If not, they are presented as non-current liabilities.
(7) Financial
liabilities at fair values for AML through profit and loss are derivative contracts against AML. They are included in our other current
assets in the consolidated balance sheet as of November 30, 2023. We determine financial liabilities at fair values by reference
to market prices or rates quoted at the end of the reporting period. Observable market prices or rates support the valuation techniques
since their variables include only data from observable markets. We categorize AML’s derivative financial instruments as level
2.
(8) Customer
net trading deposits funds placed with the Company by clients intended to trade FX, securities, or other investment activities.
(9) We
recognize deferred tax using the liability method on temporary differences between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. We include deferred tax liabilities in our consolidated balance sheet as of November
30, 2023. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred tax
is not accounted for if it stems from the initial recognition of an asset or liability in a transaction other than a business combination
that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates
(and Malta laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when
the related deferred tax asset is realized, or the deferred tax liability is settled.
(10) Short-term
borrowings are primarily composed of lines of credit and short-term loans from financial institutions. NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Concentrations
of Credit Risk Cash Cash
and cash equivalents include cash on hand, bank deposits, and other short-term, highly liquid investments with three months or less of
original maturities. The Company maintains its cash balances at a single financial institution. The Company maintains its cash balances
at a single financial institution. The balances do not exceed Federal Deposit Insurance Corporation (FDIC) limits as of September 30,
2024. Most cash balances were held with non-FDIC financial institutions in Malta, the UK, and other countries. On September 30, 2024,
and December 31, 2023, the Company had $ 27,989,417 31,316,461 Revenues For
the nine months ended September 30, 2024, and 2024, the Company generated $ 18,178,864 6,949,183 Accounts
Receivable Accounts
Receivable primarily represent the amount due to four (4) active technology customers. In some cases, the customer receivables are due
immediately on demand; however, in most cases, the Company offers net 30 terms or n/30, where the payment is due in full 30 days after
the invoice’s date. The Company has based the allowance for doubtful accounts on its assessment of the collectability of customer
accounts. The Company regularly reviews the allowance by considering historical experience, credit quality, the accounts receivable balances’
age, and economic conditions that may affect a customer’s ability to pay and expected default frequency rates. Trade receivables
are written off at the point when they are considered uncollectible. At
September 30, 2024, and December 31, 2023, the Management determined that allowance for doubtful accounts was $ 22,382 21,526 0 10,500 Research
and Development (R and D) Cost The
Company acknowledges that future benefits from research and development (R and D) are uncertain, so we cannot capitalize on R and D expenditure.
The GAAP accounting standards require us to expense all research and development expenditures as incurred. For the nine months ended
September 30, 2024, and 2023, the Company incurred R and D costs of $ 0 0 Legal
Proceedings The
Company discloses a loss contingency if at least there is a reasonable possibility that a material loss has been incurred. The Company
records its best estimate of loss related to pending legal proceedings when the loss is considered probable and the amount can be reasonably
estimated. The Company can reasonably estimate a range of losses with no best estimate; the Company records the minimum estimated liability.
As additional information becomes available, the Company assesses the potential liability related to pending legal proceedings, revises
its estimates, and updates its disclosures accordingly. The Company’s legal costs associated with defending itself are recorded
as expenses incurred. Please refer to subsequent events for potential legal claims and disputes after the period ending September 30,
2024. NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Impairment
of Long-Lived Assets The
Company reviews long-lived assets for impairment under FASB ASC 360, Property, Plant, and Equipment. Under the standard, long-lived assets
are tested for recoverability whenever events or changes in circumstances indicat |
