GLIDELOGIC CORP.
GLIDELOGIC CORP.
NOTES TO THE FINANCIAL STATEMENTS
January 31, 2023
(Audited)
1. ORGANIZATION AND NATURE OF BUSINESS
GLIDELOGIC CORP. (“the Company”) was incorporated
in the State of Nevada on December 11, 2020. We are a software development company which is developing online platform and messenger.
Packed with bunch of redundant security and privacy tools the application is striving to meet and surpass defense-grade security requirements
by employing “true end-to-end” encryption technology. Company location is in Kyrgyzstan. The Company's customers and vendors
for COGS are not located in the United States.
2. GOING CONCERN
The accompanying financial statements have been prepared
in conformity with accounting principles generally accepted in the United States (“GAAP”), which contemplate continuation
of the Company as a going concern. The Company had $243,060 revenues for the year ended January 31, 2023. The Company currently
has income but has not completed its efforts to establish a stabilized source of revenue sufficient to cover operating costs over an extended
period of time. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern. Management anticipates
that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends
to position itself so that it will be able to raise additional funds through the capital markets. In light of management’s efforts,
there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue
as a going concern.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying financial statements have been prepared
in accordance with GAAP.
The Company’s year-end is January 31.
Use of Estimates
The preparation of financial statements in conformity
with 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 amount of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments
with original maturities of three months or less to be cash equivalents.
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.
Fair Value of Financial Instruments
ASC 825, “Disclosures about Fair Value of Financial
Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements”
defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures
about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information
available to management as of January 31, 2023.
15
The respective carrying values of certain on-balance-sheet
financial instruments approximate their fair values. These financial instruments include cash and related party loan payable. Fair values
were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts
approximate fair value.
Stock-Based Compensation
As of January 31, 2023, the Company has not issued
any stock-based payments to its employees. Stock-based compensation is accounted for at fair value in accordance with ASC 718, when applicable.
To date, the Company has not adopted a stock option plan and has not granted any stock options.
Fixed Assets
Equipment is stated at cost, net of accumulated depreciation.
The cost of equipment and website is depreciated using the straight-line method over five and one years. Expenditures for maintenance
and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the equipment's useful life are
capitalized. Equipment sold or retired, together with the related accumulated depreciation is removed from the appropriated accounts and
the resultant gain or loss is included in net income.
Revenue Recognition
The Company recognizes revenue in accordance with Accounting
Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. ASC 606 adoption is on February 1,
2018. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
GLIDELOGIC CORP. recognizes revenue in accordance with
this core principle by applying the following steps:
Step 1: Identifying the contract(s) with the customer
Step 2: Identifying the performance obligation to satisfy
the contract
Step 3: Determining the transaction price
Step 4: Allocate the transaction price to the performance
obligations in the contract
Step 5: Revenue recognition.
The Company’s revenues are recognized at a point-in-time
as ownership of software (when it is approved by the customer) is transferred at a distinct point in time per the terms of a contract.
The Company shall not be liable for any failure to perform its obligations if such failure is due to circumstances beyond its reasonable
control. Any liability of the Company shall be limited to the total of all amounts paid by the customer for services under the contract.
The Company plans to collect payment from customers
prior to transferring ownership of the software and may require deposits from customers at the time an order is placed. When deposits
are collected prior to transferring ownership of the software the Company recognizes deferred revenue until the transfer is made.
The Company has two major customer that accounted for
approximately 96% and $232,700 of sales for the year ended January 31, 2023.
Cost of Goods Sold
Cost of goods sold includes direct costs of selling
items.
16
Recent Accounting Pronouncements
We have reviewed all the recently issued, but not yet
effective and thus not disclosed here, accounting pronouncements and we do not believe any of those pronouncements will have a material
impact on the Company’s financial position, results of operations or cash flows.
Basic Income (Loss) Per Share
The Company computes income (loss) per share in accordance
with ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders
by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive
potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect
is anti-dilutive. As of January 31, 2023 there were no potentially dilutive debt or equity instruments issued or outstanding.
4. FIXED ASSETS
| |
|
Equipment |
Website |
Total |
| Cost |
|
|
|
|
| As at January 31, 2022 |
$ |
2,100 |
4,500 |
6,600 |
| Additions |
|
2,353 |
- |
2,353 |
| Disposals |
|
- |
- |
- |
| As at January 31, 2023 |
$ |
4,453 |
4,500 |
8,953 |
| |
|
|
|
|
| Depreciation |
|
|
|
|
| As at January 31, 2022 |
|
(280) |
(2,625) |
(2,905) |
| Change for the period |
|
(420) |
(1,875) |
(2,295) |
| As at January 31, 2023 |
$ |
(700) |
(4,500) |
(5,200) |
| |
|
|
|
|
| Net book value |
$ |
3,753 |
- |
3,753 |
5. RELATED PARTY TRANSACTIONS
The President and sole director of the Company, Daniella
Strygina, is the only related party with whom the Company had transactions with during the years ended January 31, 2023 and 2022. During
the period from December 11, 2020 (Inception) through January 31, 2023, our sole director has loaned to the Company $6,010.
The amounts due to the related party are unsecured
and non-interest bearing with no set terms of repayment.
6. COMMON STOCK
The Company has 75,000,000, $0.001 par value shares
of common stock authorized.
On January 21, 2021 the Company issued 2,000,000 shares
of common stock to a director at $0.001 per share.
In October 2021, the Company issued 128,750 shares
of common stock for cash proceeds of $5,150 at $0.04 per share.
In November 2021, the Company issued 378,750 shares
of common stock for cash proceeds of $15,150 at $0.04 per share.
In December 2021, the Company issued 156,250 shares
of common stock for cash proceeds of $6,250 at $0.04 per share.
There were 2,663,750 shares of common stock issued
and outstanding as of January 31, 2023.
17
7. COMMITMENTS AND CONTINGENCIES
From time-to-time, the Company is subject to various
litigation and other claims in the normal course of business. The Company establishes liabilities in connection with legal actions that
management deems to be probable and estimable (if any). No such event or amounts have been accrued in the financial statements with respect
to any litigation or other claim matters.
Director and management stay informed about COVID-19
developments generally and ensure it has access to information related to a company’s response to the crisis and how the specific
impact on the company is developing as the crisis extends.
8. INCOME TAXES
The Company adopted the provisions of uncertain tax
positions as addressed in ASC 740 “Income Taxes” (“ASC 740”). As a result of the implementation of ASC 740, the
Company recognized no increase in the liability for unrecognized tax benefits. As of January 31, 2023 the Company had net operating loss
carry forwards of approximately $16,260 that may be available to reduce future years’ taxable income in varying amounts indefinitely.
Future tax benefits which may arise as a result of
these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly,
the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The valuation allowance at January 31, 2023 was approximately
$3,415. The net change in valuation allowance from January 31, 2022 through January 31, 2023 was $3,259. In assessing the realizability
of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets
will not be realized.
The ultimate realization of deferred income tax assets
is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management
considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making
this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the
realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of January 31, 2023.
All tax years since inception remain open for examination by taxing authorities.
The provision for Federal income tax consists of the
following:
| |
|
January 31, 2023 |
|
January 31, 2022 |
| Non-current deferred tax assets: |
|
|
|
|
| Net operating loss carry forward |
$ |
(16,260) |
$ |
(1,652) |
| Valuation allowance |
$ |
(3,415) |
$ |
(347) |
| Net deferred tax assets |
$ |
3,415 |
$ |
347 |
The actual tax benefit at the expected rate of 21%
differs from the expected tax benefit for the year ended January 31, 2023 as follows:
| |
|
January 31, 2023 |
|
January 31, 2022 |
| Computed “expected” tax expense (benefit) |
$ |
(3,259) |
$ |
(156) |
| Change in valuation allowance |
$ |
3,259 |
$ |
156 |
| Actual tax expense (benefit) |
$ |
- |
$ |
- |
The related deferred tax benefit on the above unutilized
tax losses has a full valuation allowance not recognized against it as there is no certainty of its realization. Management has evaluated
tax positions in accordance with ASC 740 and has not identified any significant tax positions, other than those disclosed.
18
9. SUBSEQUENT EVENTS
In accordance with ASC 855, “Subsequent
Events”, the Company has analyzed its operations subsequent to January 31, 2023, through April 21,2023,
and has determined that it does not have any material subsequent events to disclose in these financial statements, other than shares
issuance.
19