| Significant Accounting Policies | Note
2 - Significant Accounting Policies Basis
of Presentation The
accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America
(“GAAP”) and pursuant to the rules and regulations of US Securities and Exchange Commission (“SEC”). The acquisition
of SRM Ltd and SRM Inc occurred on August 14, 2023. The financial statements are prepared using Reverse Acquisition Accounting and as
such, for legal purposes SRM Inc was the acquiring company and for GAAP accounting, SRM Ltd was the acquiring company. Therefore, the
financial statements are presented using the historical financial statements of SRM Ltd. The combined SRM Inc and SRM Ltd are collectively
referred to as the Company. Emerging
Growth Company Status The
Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities
Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage
of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth
companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the
Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and
exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden
parachute payments not previously approved. Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting
standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do
not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting
standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements
that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of
such extended transition period which means that when a standard is issued or revised and it has different application dates for public
or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which
is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult
or impossible because of the potential differences in accounting standards used. Use
of Estimates The
preparation of financial statements in conformity with US 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 financial statements
and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Cash
and Cash Equivalents The
Company considers all short-term investments with a maturity of three months or less when purchased to be cash and equivalents for purposes
of the statement of cash flows. There were no Accounts
Receivable and Credit Risk Accounts
receivable are generated from sales of the Company’s products. The Company provides an allowance for doubtful collections, which
is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. For the nine
months ended September 30, 2024 and year ended December 31, 2023, the Company did not recognize any allowance for doubtful collections Inventory Inventories
will be stated at the lower of cost or market. The Company will periodically review the value of items in inventory and provides write-downs
or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold.
Inventory is based upon the average cost method of accounting. Fixed
Assets and Other Assets Fixed
assets are stated at cost at the date of purchase. Depreciation is calculated using the straight-line method over the lesser of the estimated
useful lives of the assets or the lease term. The
Company purchases molds for the manufacture of some of its products and are included in fixed assets at cost. Certain agreements call
for the manufacturer to reimburse the Company for the cost of the molds upon first shipment of products produced using the molds. The
costs of these molds are removed from fixed assets upon reimbursement. Molds that are not subject to reimbursement are depreciated when
the products are in production. Net
Loss Per Share of Common Stock Net
income (loss) per share of Common Stock is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic
net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of Common Stock outstanding
during the period. If applicable, diluted earnings per share assume the conversion, exercise or issuance of all Common Stock instruments
such as options, warrants, convertible securities and preferred stock, unless the effect is to reduce a loss or increase earnings per
share. As such, options, warrants, convertible securities, and preferred stock are not considered in the calculations, as the impact
of the potential shares of Common Stock would be to decrease the loss per share. Schedule of Net Loss Per Share of Common Stock
2024 2023 2024 2023
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Numerator
Net income (loss) $ (1,128,872 ) $ (1,486,749 ) $ (3,359,847 ) $ (1,296,729 )
Denominator:
Denominator for basic earnings per share - Weighted- average common issued and outstanding during the period 10,581,558 8,007,065 10,389,770 7,007,875
Denominator for diluted earnings per share 10,581,558 8,007,065 10,389,770 7,007,875
Basic (loss) per share $ (0.11 ) $ (0.19 ) $ (0.32 ) $ (0.19 )
Diluted (loss) per share $ (0.10 ) $ (0.19 ) $ (0.32 ) $ (0.19 ) Fair
Value of Financial Instruments The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value
Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to
their short-term nature. Revenue
Recognition The
Company will generate its revenue from the sale of its products directly to the end user (the “customer”). The
Company recognizes revenues by applying the following steps in accordance with FASB Accounting Standards Codification 606 “Revenue
from Contracts with Customers” (“ASC 606”). Under ASC 606, revenues are recognized when control of the promised goods
or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange
for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to
be recognized as it fulfills its obligations under each of its agreements:
● identify
the contract with a customer;
● identify
the performance obligations in the contract;
● determine
the transaction price;
● allocate
the transaction price to performance obligations in the contract; and
● recognize
revenue as the performance obligation is satisfied. The
Company’s performance obligations are satisfied when goods or products are shipped on a FOB shipping point basis as title passes
when shipped. Our products are generally paid in advance of shipment or standard net 30 days and we offer no specific right of return,
refund or warranty related to our products except for cases of defective products of which there have been none to date. Foreign
Currency Translation Assets
and liabilities in foreign currencies are translated using the exchange rate at the balance sheet date, while revenue and expense accounts
are translated at the average exchange rates prevailing during the period. Equity accounts are translated at historical exchange rates. Stock
Based Compensation The
Company recognizes compensation costs to employees under FASB Accounting Standards Codification 718 “Compensation - Stock Compensation”
(“ASC 718”). Under ASC 718, companies are required to measure the compensation costs of share-based compensation arrangements
based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required
to provide services. Share based compensation arrangements include stock options and warrants. As such, compensation cost is measured
on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the
option grant. The
Company has adopted ASU No. 2018-07 “Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment
Accounting.” These amendments expand the scope of Topic 718, Compensation - Stock Compensation (which currently only includes share-based
payments to employees) to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for
share-based payments to nonemployees and employees will be substantially aligned. Income
Taxes The
Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax
assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities
and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation
allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. ASC
740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes
a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected
to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination
by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim
period, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain
tax positions requiring recognition in the Company’s financial statements. The Company believes that its income tax positions and
deductions would be sustained on audit and does not anticipate any adjustments that would result in a material changes to its financial
position. The Company’s policy for recording interest and penalties associated with audits is to record such items as a component
of income tax expense. Related
parties The
Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure
of related party transactions. Pursuant
to Section 850-10-20 the related parties include a. affiliates of the Company; b. entities for which investments in their equity securities
would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15,
to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing
trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company;
f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies
of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and
g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership
interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting
parties might be prevented from fully pursuing its own separate interests. On September 3, 2024, the Company entered into an
Asset Purchase Agreement (the “Asset Purchase Agreement”) with Suretone Entertainment, Inc. (“Seller”) pursuant
to which the Company agreed to acquire certain assets (the “Assets”) from the Seller, for an aggregate purchase price of $ 2,893,000 34.27 The
financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense
allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the
preparation of combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the
relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed,
for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of
the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which
income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding
period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent,
the terms and manner of settlement. Recent
Accounting Pronouncements The
company evaluated issued pronouncements and did not identify any recent ones that apply to the company. |
