| Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting
Policies Use of Estimates The preparation of consolidated financial statements
in conformity with U.S. 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 consolidated financial statements and the reported amounts
of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its
estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the
circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual
of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially
and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results,
future results of operations will be affected. Significant estimates in the accompanying financial statements include valuation allowance
on deferred tax assets. Cash Equivalents For the purpose of the statement of cash flows, cash equivalents include
time deposits, certificate of deposits, and all highly-liquid debt instruments with original maturities of three months or less.
At September 30, 2024 and December 31, 2023, the Company did not have any cash equivalents. Restricted Cash As part of its agreement with the underwriters
for the Company’s initial public offering (“IPO”), the Company was required to maintain $ 400,000 The following table provides a reconciliation of cash
and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the statements of cash
flows:
September 30, December 31,
Cash $ 1,224,560 $ 3,371,123
Restricted cash 112,450 400,000
Total cash and restricted cash shown in the statements of cash flows $ 1,337,010 $ 3,771,123 Furniture and equipment, net Furniture and equipment, net, is stated at cost. Depreciation
is computed over the estimated useful lives of the assets, generally three five At September 30, 2024, the cost of furniture and
equipment was $ 1,172 114 49 114 Fair Value of Financial Instruments For certain of the Company’s financial instruments,
including cash, restricted cash and accounts payable, the carrying amounts approximate their fair values due to their short maturities. FASB ASC Topic 820, Fair Value Measurements and
Disclosures Financial
Instruments
● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
● Level 3 inputs to the valuation methodology us one or more unobservable inputs which are significant to the fair value measurement. The Company analyzes all financial instruments with
features of both liabilities and equity under FASB ASC Topic 480, Distinguishing Liabilities from Equity Derivatives and Hedging At September 30, 2024 and December 31, 2023, the
Company did not identify any assets or liabilities required to be presented on the balance sheet at fair value. Concentration of Credit Risk Financial instruments, which potentially subject the
Company to concentrations of credit risk, consist of cash and restricted cash. The Company places its cash with high quality financial
institutions and at times may exceed the Federal Deposit Insurance Corporation $ 250,000 I ncome Taxes The Company accounts for income taxes in accordance
with ASC Topic 740, Income Taxes Under ASC 740, a tax position is recognized as a benefit
only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination
being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized
on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company has
no material uncertain tax positions for any of the reporting periods presented. Revenue The Company records revenue in accordance with Accounting
Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers
● Step 1: Identify the contract with the customer
● Step 2: Identify the performance obligations in the contract
● Step 3: Determine the transaction price
● Step 4: Allocate the transaction price to the performance obligations in the contract
● Step 5: Recognize revenue when the company satisfies a performance obligation In order to identify the performance obligations in
a contract with a customer, the Company assesses the promised goods or services in the contract and identifies each distinct promised
good or service. If a good or service is not distinct, the good or
service is combined with other promised goods or services until a bundle of goods or services is identified as distinct. The transaction price is the amount of consideration
to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised
in a contract with a customer may include fixed amounts, variable amounts, or both. Variable consideration is included in the transaction
price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur
when the uncertainty associated with the variable consideration is subsequently resolved. The Company evaluates any noncash consideration,
consideration payable to the customer, potential returns and refunds, and whether consideration contains a significant financing element
in determining the transaction price. Revenue is measured based on consideration specified
in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over
a service to its customer. During the nine months ended September 30, 2024, the Company’s revenue
consisted of commissions, registration fees received, and sponsorship fees for K2 Gamer and totaled approximately $2,100. During the three
months ended September 30, 2024, the Company’s revenue was immaterial. The Company had no revenue for the three and nine months
ended September 30, 2023. Leases The Company leases office space in Pakistan under
a non-cancelable lease arrangement through K2 Gamer. The building is owned by the CEO of K2 Gamer. The Company applies the accounting
guidance in Accounting Standards Codification (“ASC”) 842, Leases Fixed lease payments on operating leases are recognized
over the expected term of the lease on a straight-line basis. Variable lease expenses that are not considered fixed are expensed as incurred.
Fixed and variable lease expense on operating leases is recognized within operating expenses within the accompanying consolidated statements
of operations and comprehensive loss. The interest rate implicit in the Company’s
lease contracts is typically not readily determinable and as such, the Company uses its incremental borrowing rate based on the information
available at the lease commencement date, which represents an internally developed rate that would be incurred to borrow, on a collateralized
basis, over a similar term, an amount equal to the lease payments in a similar economic environment. Basic and Diluted Earnings Per Share Earnings per share is calculated in accordance with
ASC Topic 260, Earnings Per Share There were 170,000 no Recent Accounting Pronouncements During 2023, the Company adopted Accounting Standards
Update No. 2016-13 (“ASU 2016-13”), Financial Instruments-Credit Losses Management does not believe that any recently issued,
but not yet effective, accounting standards could have a material effect on the accompanying consolidated financial statements. As new
accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. |
