| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature
of Business NetBrands
Corp., formerly known as Global Diversified Marketing Group Inc. (“NetBrands” or the “Company”), was incorporated
as Dense Forest Acquisition Corporation, in Delaware December 1, 2017 19,500,000 20,000,000 12,500,000 On
November 26, 2018, the Company effected the acquisition of Global Diversified Holdings, Inc. (“GDHI”), a private New York
company owned by the Company’s president, with the issuance of 200 Prior
to the acquisition of GDHI, the Company had no business and no operations. Pursuant to the acquisition, the Company acquired the operations
and business plan of GDHI, which imports and sells snack food products. For accounting purposes, GDHI is considered to be the acquirer,
and the equity is presented as if the business combination had occurred on January 1, 2017. On
August 31, 2022, the Company entered into an Asset Purchase Agreement with InPlay Capital Inc., a Delaware corporation (“InPlay”),
pursuant to which, on the same date, the Company purchased from InPlay all of the assets used in the operation and conduct of its business
relating to the online home fitness store known as “The Hula Fit”, including the Shopify Store and the TikTok, Facebook and
Google ad accounts, for a purchase price of $ 50,000 100 On
March 29, 2023, the Company filed an Amendment to its Certificate of Incorporation effecting the change of the Company’s name to
NetBrands Corp., a name that reflects the planned expansion of the Company’s digital business. On July 31, 2023, the Company’s
common stock began trading on the OTC Pink marketplace under its new name, NetBrands Corp., and its new trading symbol “NBND.” Basis
of Presentation The
condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles
in the United States of America and are presented in US dollars. Certain prior year amounts have been reclassified to conform to the
presentation in the current year. The Company has adopted a December 31 year-end. Principles
of Consolidation The
accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Global
Diversified Holdings, Inc. All intercompany accounts and transactions have been eliminated in consolidation. Fair
Value of Financial Instruments The
Company’s financial instruments consist of cash, accounts receivable from customers, accounts payable, and loans payable. The carrying
amounts of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing
market rates unless otherwise disclosed in these condensed consolidated financial statements. Use
of Estimates The
preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions
that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated
financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate
to revenue recognition, inventories, valuation of financial instruments, income taxes, and contingencies. The Company bases its estimates
on historical experience, known or expected trends and various other assumptions that are believed to be reasonable given the quality
of information available as of the date of these condensed consolidated financial statements. The results of these assumptions provide
the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources.
Actual results could differ from these estimates. Stock-Based
Compensation The
Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB
Accounting Standards Codification for disclosure about Stock-Based Compensation. This Section requires a public entity to measure the
cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with
limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange
for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for
which employees do not render the requisite service. During the six months ended June 30, 2024 and June 30,2023 stock-based compensation
was $ 425,139 103,500 Cash
and Cash Equivalents The
Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. On June 30,
2024 and December 31, 2023 the Company had $ 821 1,013 Accounts
Receivable Accounts
receivable are generated from sales of snack food products to retail outlets throughout the United States. The Company performs ongoing
credit evaluations of its customers and adjusts credit limits based on customer payment and current creditworthiness, as determined by
review of their current credit information. The Company continuously monitors credit limits for its customers and maintains a provision
for estimated credit losses based on its historical experience and any specific customer issues that have been identified. An allowance
for doubtful accounts are provided against accounts receivable for amounts management believes may be uncollectible. The Company historically
has not had issues collecting on its accounts receivable from its customers. The Company factors certain of its receivables to improve
its cash flow. Bad debt expense for the six months ended June 30, 2024, and June 30, 2023 was $- 0 0 Inventory Inventory,
which is comprised of snack food products and packaging supplies is charged to inventory when purchased, is stated at the lower of cost
or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. The Company does not carry any
raw materials. The
Company evaluates inventory levels quarterly value based upon assumptions about future demand and market conditions. Any inventory that
has a cost basis in excess of its expected net realizable value, inventory that becomes obsolete, inventory in excess of expected sales
requirements, inventory that fails to meet commercial sale specifications or is otherwise impaired are written down with a corresponding
charge to the statement of operations in the period that the impairment is first identified. The Company performed its evaluation on
June 30, 2024 and December 31, 2023, and determined that no write-down was required. Property
and Equipment Property
and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the
estimated useful life of the assets. Maintenance, repairs, and renewals that do not materially add to the value of the equipment nor
appreciably prolong its useful life are charged to expense as incurred. Revenue
Recognition The
Company recognizes revenue from product sales when control of the promised goods are transferred to our clients in an amount that reflects
the consideration to which the Company expects to be entitled in exchange for those goods and services. To achieve this core principle,
the Company applies the following five steps: identify the contract with the client, identify the performance obligations in the contract,
determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when
or as the Company satisfies a performance obligation. Typically, the Company receives a detailed purchase order from large retailers
that specify the goods ordered, their price, payment terms and the required delivery date. Once the delivery of items on the purchase
order is made to the client and title passes, the Company has met its performance obligation and recognizes revenue. Impairment
of Long-Lived Assets The
Company continually monitors events and changes in circumstances that could indicate the carrying amounts of long-lived assets may not
be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets
by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total
of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess
of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or
the fair value less costs to sell. Intangible
Assets Intangible
assets have either an identifiable or indefinite useful life. Intangible assets with identifiable useful lives are amortized on a straight-line
basis over their economic or legal life, whichever is shorter. The
Company performs an annual impairment assessment for intangible assets during the fourth quarter of each year and more frequently whenever
events or changes in circumstances indicate that the fair value of the asset may be less than the carrying amount. Determining
the fair value of intangible assets is judgmental in nature and requires the use of significant estimates and assumptions. On
September 30, 2022, the Company conducted an impairment analysis and determined that our purchase of Hula Fit was fully impaired. As
a result, the Company recorded an impairment loss of $ 50,000 Income
Taxes Income
taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities
are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using
the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available
evidence, are not expected to be realized. The
Company’s income tax returns are open for examination for up to the past three years under the statute of limitations. There are
no tax returns currently under examination. Leases The
majority of our lease obligations are real estate operating leases from which the Company conducts its business. For any lease with an
initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Consolidated Balance Sheets as either
operating or finance leases at the inception of an agreement where it is determined that a lease exists. Leases with an initial term
of 12 months or less are not recorded on our Consolidated Balance Sheets. The Company recognizes lease expense for these leases on a
straight-line basis over the lease term. Leases
with an initial term of 12 months or less, or that are on a month-to-month basis are not recorded on our Consolidated Balance Sheets.
The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Operating
lease assets represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation
to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments
over the lease term at commencement date. The Company uses a collateralized incremental borrowing rate based on the information available
at commencement date, including lease term, in determining the present value of future payments. Our lease terms generally do not include
options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain
predetermined fixed rent escalations. The Company recognizes the related rent expense on a straight-line basis from the commencement
date to the end of the lease term. As
of June 30, 2024 we had $- 0 0 0 Comprehensive
Income The
Company has established standards for reporting and displaying comprehensive income, its components, and accumulated balances. If 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. As of June 30, 2024, the Company had a balance of $ 1,895 Basic
Income (Loss) Per Share Basic
income (loss) per share has been calculated based on the weighted average number of shares of common stock outstanding during the period.
As of June 30, 2024, the Company had no dilutive instruments that could increase the number of shares if exercised or converted. Recent
Accounting Pronouncements The
Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s
results of operations, financial position, or cash flow. |
