The accompanying notes are an integral part of
these financial statements.
The accompanying notes are an integral part of
these financial statements.
The accompanying notes are an integral part of
these financial statements.
The accompanying notes are an integral part of
these financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
July 31, 2022 and 2021
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
A. ORGANIZATION AND OPERATIONS
The Company was originally incorporated on April
12, 2004, in the State of Nevada under the name of Ford-Spoleti Holdings, Inc. On June 4, 2009, the Company merged with Eagle Oil Holding
Company, a Nevada corporation, and the surviving entity, the Company, changed its name to “Eagle Oil Holding Company, Inc.”
Inception of the current Company occurred February 8, 2019 when the Company was acquired by Green Stream Holdings Inc. Previously there
was no activity from July 31, 2017 until the acquisition of February 8, 2019. On April 25, 2019, the Company changed its name to “Green
Stream Holdings Inc.” and is deemed to be a continuation of business of Eagle Oil Holding Company, Inc. Additionally, the Company
was reorganized that so that the Company became operating as a holding company of Green Stream Finance, Inc., a Wyoming Corporation. That
reorganization, inter alia, gave Madeline Cammarata, President of Green Stream Finance, Inc., the majority of the voting power in the
Company. On April 25, 2019 the Company also filed the certificate of Amendment to Articles of Incorporation with the Secretary of State
of Nevada providing for reverse stock split: each thirty thousand shares of common stock of the Company issued and outstanding immediately
prior to the “effective time” of the filing were automatically and without any action on the part of the respective holders
thereof, be combined and converted into one (1) share of common stock, provided that no fractional shares were to be issued in connection
with said reverse stock split. On May 15, 2019, the Company filed the articles of conversion with the secretary of state of Nevada, to
convert the company from Nevada Corporation to Wyoming Corporation. The Company is in good standing in the State of Wyoming as of September
25, 2019. The Company’s common shares are quoted on the “Pink Sheets” quotation market under the symbol “GSFI.”
B. PRINCIPALS OF CONSOLIDATION
These consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiary Green Stream Finance, Inc. based in the state of Wyoming. All material inter-company
balances and transactions were eliminated upon consolidation.
C. BASIS OF ACCOUNTING
The Company utilizes the accrual method of accounting,
whereby revenue is recognized when earned and expenses when incurred. The financial statements have been prepared in accordance with generally
accepted accounting principles for interim financial information. As such, the financial statements do not include all of the information
and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation have been included and these adjustments are of a normal recurring nature.
D. USE OF ESTIMATES
The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the period. Actual results could differ from those estimates.
E. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand;
cash in banks and any highly liquid investments with maturity of three months or less at the time of purchase. The Company maintains cash
and cash equivalent balances at several financial institutions, which are insured by the Federal Deposit Insurance Corporation up to $250,000.
F. COMPUTATION OF EARNINGS PER SHARE
Net income per share is computed by dividing the
net income by the weighted average number of common shares outstanding during the period. Due to the net loss, the options and stock conversion
of debt are not used in the calculation of earnings per share because the stock conversions and options are considered to be antidilutive.
G. INCOME TAXES
The Company accounts for income taxes under the
asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences
between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss
and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that includes the enactment date.
The Company’s management has reviewed the
Company’s tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood of
being sustained upon examination by the taxing authorities, therefore the implementation of this standard has not had a material effect
on the Company.
H. REVENUE RECOGNITION
Revenue for license fees is recognized upon
the execution and closing of the contract for the amount of the contract. Contract fees are generally due based upon various
progress milestones. Revenue from contract payments are estimated and accrued as earned. Any adjustments between actual contract
payments and estimates are made to current operations in the period they are determined.
I. FAIR VALUE MEASUREMENT
The Company determines the fair value of a
financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties,
other than in a forced sale or liquidation. The carrying amounts reported in the balance sheet for cash, accounts receivable,
inventory, and accounts payable and accrued expenses, and loans payable approximate their fair market value based on the short-term
maturity of these instruments.
Fair value measurements are determined based
on the assumptions that market participants would use in pricing an asset or liability. US GAAP establishes a hierarchy
for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by
requiring that the most observable inputs be used when available. The established fair value hierarchy prioritizes the use of inputs
used in valuation methodologies into the following three levels:
| · |
Level 1: Quoted prices (unadjusted) for
identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair
value and must be used to measure fair value whenever available. |
| · |
Level 2: Significant other observable inputs
other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or
other inputs that are observable or can be corroborated by observable market data. |
| · |
Level 3: Significant unobservable inputs
that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset
or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash
flows method. |
J. STOCK-BASED COMPENSATION
The Company measures and recognizes compensation
expense for all share-based payment awards made to employees, consultants and directors including employee stock options based on estimated
fair values. Stock-based compensation expense recognized for the years ended December 31, 2014 and 2013 was $24,000 and $0 respectively.
Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that
vest during the period.
Share-based compensation expense recognized in
the Company’s consolidated statement of operations for the years ended December 31, 2014 included compensation expense for share-based
payment awards granted in December 31, 2014.
K. SALES AND ADVERTISING
The costs of sales and advertising are expensed
as incurred. Sales and advertising expense was $0 and $476,290 for the three months ended July 31, 2022 and 2021 respectively.
L. NEW ACCOUNTING PRONOUNCEMENTS
The Company reviews new accounting standards as
issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the
date of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated
financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated
financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements
because of the retro-active application of any accounting pronouncements issued subsequent to July 31, 2022 through the date these financial
statements were issued.
M. FURNITURE AND EQUIPMENT
Furniture and equipment are recorded at costs
and consists of furniture and fixtures, computers and office equipment. We compute depreciation using the straight-line method over the
estimated useful lives of the assets. Expenditures for major betterments and additions are charged to the property accounts, while replacements,
maintenance, and repairs that do not improve or extend the lives of the respective assets are charged to expense.
N. INTELLECTUAL PROPERTY
Intangible assets (intellectual property) are
recorded at cost and are amortized over the estimated useful life of the asset. Management evaluates the fair market value to determine
if the asset should be impaired at the end of each year.
O. IMPAIRMENT OF LONG-LIVED ASSETS
The Company tests long-lived assets or asset groups
for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which
could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes
in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition
or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing
losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly
before the end of its estimated useful life.
Recoverability is assessed based on the carrying
amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result
from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances.
An impairment loss is recognized when the carrying
amount is not recoverable and exceeds fair value.
NOTE 2 – GOING CONCERN AND LIQUIDITY
CONSIDERATIONS
The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation
of liabilities in the normal course of business. At July 31, 2022 the Company had a loss from operations, for the three months ended,
of $22,500, and an accumulated deficit of $14,280,984 and negative working capital of $1,245,607. The Company has not yet established
an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern.
The Company depends upon capital to be derived
from future financing activities such as subsequent offerings of its common stock or debt financing in order to operate and grow the business.
There can be no assurance that the Company will be successful in raising such capital. The key factors that are not within the Company's
control and that may have a direct bearing on operating results include, but are not limited to, acceptance of the Company's business
plan, the ability to raise capital in the future, the ability to expand its customer base, and the ability to hire key employees to provide
services. There may be other risks and circumstances that management may be unable to predict.
The financial statements do not include any adjustments
to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities
that may result from the possible inability of the Company to continue as a going concern.
NOTE 3 – PROPERTY AND EQUIPMENT
Property and equipment at July 31, 2022 and July 31, 2021 consists
of the following:
| Schedule of property and equipment | |
| | | |
| | |
| | |
July 31, 2022 | | |
April 30, 2022 | |
| | |
| | |
| |
| Furniture and Fixtures | |
$ | 726,091 | | |
$ | 726,091 | |
| Less: Accumulated Depreciation | |
| (105,140 | ) | |
| (105,140 | ) |
| Net Property and Equipment | |
$ | 620,951 | | |
$ | 620,951 | |
Depreciation expense for the three months ended July 31, 2022 was $0
and $45,060 for April 30, 2021 respectively. Property and equipment are recorded at cost. Depreciation is computed on the straight-line
method, based on the estimated useful lives of the assets.
NOTE 4 – INTANGIBLE ASSETS
Intangible Assets at July 31, 2022 and July 31, 2021 consists of the
following:
| Schedule of intangible assets | |
| | | |
| | |
| | |
July 31, 2022 | | |
July 31, 2021 | |
| | |
| | |
| |
| Intangible Assets | |
$ | 185,000 | | |
$ | 185,000 | |
| Less: Accumulated Amortization | |
| – | | |
| – | |
| Less: Impairment | |
| (185,000 | ) | |
| (185,000 | ) |
| Net Intangible Assets | |
$ | – | | |
$ | – | |
The Company determined that the various intellectual
properties acquired in the merger with Eagle Oil will have no value in the Company’s future projects. At April 30, 2021,
the Company has determined that the intangible asset should be fully impaired as of April 30, 2021.
NOTE
5 – STOCKHOLDERS’ EQUITY
(DEFICIT)
AUTHORIZED SHARES & TYPES
As of July 31, 2022, we had 2,942,223,044 shares
of Common Stock and of:
| |
· |
1,000,000 authorized shares of Convertible Series A Preferred Shares. Convertible Series A Preferred Shares are convertible into the shares of Common Stock at a ratio of 1,000 shares of Convertible Series A Preferred Shares to 1 share of Common Stock. There are 53,000 shares issued and outstanding or 53 votes. |
| |
· |
1,000,000 authorized shares of Convertible Series B Preferred Shares. Convertible Series B Preferred Shares are convertible into the shares of Common Stock at a ratio of 1,000,000 shares of Common Stock for each single Convertible Series B Preferred Share. Additionally, the Preferred B Shares are non-dilutive. There are 600,000 shares issued and outstanding or 600,000,000,000 votes. |
| |
· |
10,000,000 authorized shares of Convertible Series C Preferred Shares. Convertible Series C Preferred Shares are convertible into Common Stock at a ratio of 1,000 shares of Convertible Series C Preferred Share for one share of Common Stock. There are 760,000 shares issued and outstanding or 760 votes. |
NOTE 6 – INCOME TAXES
Deferred tax assets arising as a result of net
operation loss carry forwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future
periods.
Based on its evaluation, the Company has concluded
that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company’s evaluation
was performed for the tax years ended July 31, 2022 and 2021 for U.S. Federal Income Tax and for the State of Wyoming.
A reconciliation of income taxes at statutory
rates with the reported taxes follows:
| Schedule of Reconciliation of income tax | |
| | | |
| | |
| | |
July 31, 2022 | | |
July 31, 2021 | |
| | |
| | |
| |
| Loss before income tax benefit | |
$ | 3,827,972 | | |
$ | 4,074,672 | |
| Expected income tax benefit | |
| (1,141,641 | ) | |
| (1,498,636 | ) |
| Non-deductible expenses | |
| – | | |
| – | |
| | |
| | | |
| | |
| Tax loss benefit not recognized for book purposes, valuation allowance | |
$ | 1,141,641 | | |
$ | 1,498,636 | |
| Total income tax | |
$ | – | | |
$ | – | |
The Company has net operating loss carry forwards
in the amount of approximately $14,280,984 that will expire beginning in 2029. The deferred tax assets including the net operating loss
carry forward tax benefit of $14,280,984 total $4,277,532 which is offset by a valuation allowance. The other deferred tax assets include
accrued officer compensation, stock based compensation, and amortization.
The Company follows the provisions of uncertain
tax positions. The Company recognized approximately no increase in the liability for unrecognized tax benefits.
The Company has no tax position at July 31, 2022
for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.
The Company recognizes interest accrued related
to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during
the periods presented. The Company had no accruals for interest and penalties at July 31, 2022. The open tax years are from 2019 through
2029.
NOTE 7 – RELATED PARTY TRANSACTIONS
During the three months ended July 31, 2022 and
2021 a Company shareholder had advanced $0 and $225,077 respectively of personal funds. As of July 31, 2022 and 2021 the Company owed
the shareholder $0 and $225,077 respectively.
NOTE 8 – NOTES AND OTHER LOANS PAYABLE
On December 11, 2019 the company agreed to pay
Cheryl Hintzen $40,000 in the form of a promissory note with a term of one year at 10 % interest compounded annually. The Company accrued
interest for the Three months ended January 31, 2020 in the amount of $559. On January 8, 2020, the Company signed a promissory note for
$8,000 with Cheryl Hintzen. The note becomes due on March 8, 2020 and carries a per annum interest rate of 10%.
On February 21, 2020 the Company borrowed $25,000
from GPL Ventures with interest at a rate of 10% and a due date of April 30, 2020.
On March 12, 2020 the Company agreed to pay Dr.
Jason Cohen 1,000,000 shares at a valuation of $.20 per share plus 8 % interest until the shares are issued. The interest accrued through
end is $2,147.95 which equates to 10,740 shares.
In the month March, 2020 the escrow attorney for
GPL Ventures advanced $46,900 in funds for the purchase of REG A shares. The common shares had not been issued at year end and subsequently
were issued. The note will be reclassified as common shares issued and additional paid in capital in the subsequent period. No interest
was accrued for this note.
The following schedule is Notes Payable at July 31, 2022 and April
30, 2022:
| Schedule of debt | |
| | |
| |
| Description | |
July 31, 2022 | | |
April 30, 2022 | |
| | |
| | |
| |
| Note Payable to Ford Motor Credit | |
$ | 81,700 | | |
$ | – | |
| | |
| | | |
| | |
| Note payable to Cheryl Hintzen due December 11, 2021; interest at 10% | |
| 40,000 | | |
| 40,000 | |
| | |
| | | |
| | |
| Note Payable to Cheryl Hintzen due March 8, 2020: interest 10% | |
| 14,000 | | |
| 14,000 | |
| | |
| | | |
| | |
| Notes Payable Sixth Street Lending | |
| 72,500 | | |
| – | |
| | |
| | | |
| | |
| Note Payable Dr. Jason Cohen 1,000,000 shares @ $.20 | |
| 200,000 | | |
| 200,000 | |
| | |
| | | |
| | |
| Note Payable Quick Capital LLC | |
| 25,000 | | |
| 290,000 | |
| | |
| | | |
| | |
| Note Payable Quick Capital LLC | |
| 190,800 | | |
| 239,600 | |
| | |
| | | |
| | |
| Note Payable Quick Capital LLC | |
| 55,000 | | |
| 50,000 | |
| | |
| | | |
| | |
| Note Payable GS Capital | |
| 77,400 | | |
| – | |
| | |
| | | |
| | |
| Note Payable Other | |
| 100,000 | | |
| 138,500 | |
| | |
| | | |
| | |
| Note payable escrow attorney for REG A shares | |
| – | | |
| 46,900 | |
| | |
| | | |
| | |
| Total Notes Payable | |
$ | 856,400 | | |
$ | 977,100 | |
NOTE 9 – CONVERTIBLE NOTE
PAYABLE
On September 13, 2020 the Company borrowed
$250,000 from Leonite Capital with interest at a rate of 10% and a due date of March 13, 2021. Financing costs increased
the principal to $290,000. In consideration for entering into the note Leonite received 1,500,000 common shares upon closing.
The Company has the right to repay the note prior to maturity at a rate of 110% of the then principal and interest. The note is convertible
to common stock at a fixed conversion price of $.015. The Note has been satisfied.
On May 27, 2021 the Company borrowed $230,000 from
GS Capital with an interest rate of 8% with a maturity of May 27, 2022. The note holder converted $50,000 along with $1,012 interest
on January 19, 2022. The balance on the note is $77,400 at July 31, 2022.
On April 14, 2021 the Company sold preferred
stock of $325,000 to Quick Capital LLC which included repayment obligation or return with an interest rate of 10% with superior
rights to be paid in the event of a sale of the Company. The Company repaid $50,000 on July 8, 2021. The note holder converted or
exercised its preferred rights for $18,000 on November 17, 2021 and $17,400 on January 27, 2022. The noteholder thus has the
right to convert or replace the obligation into common stock at a fixed price of one share for every $.001 of preferred or the debt
thereunder. The balance on the preferred is $0 at July 31, 2022.
On August 26, 2021 the Company borrowed $55,000 from
Quick Capital LLC with an interest rate of 10%. The Company has the right to repay the note prior to maturity at a rate of 110%
of the then principal and interest. The note is convertible to common stock at a fixed conversion price of $.001. The balance on the note
is $55,000 at April 30, 2022. Additionally, in August, 2021, Quick-Capital also invested $50,000 in a private transaction with
the Company at $0.005 for 10,000,000 common shares.
On November 8, 2021 the Company borrowed the
sum of $83,750.00 from SIXTH STREET LENDING, a North Carolina corporation. The note has a Maturity date of May 8, 2022 and
carries an interest rate of 8% per annum. The note also has conversion rights. During the period beginning on the date of funding of this
Note and ending on the date which is one hundred eighty (180) days following such date (the “Initial Period”), the Conversion
Price shall be fixed at $0.04. At any time following the Initial Period, the Conversion Price shall be equal to the Variable Conversion
Price (as defined herein)(subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating
to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications,
extraordinary distributions and similar events). The "Variable Conversion Price" shall mean 65% multiplied by the Market Price
(as defined herein) (representing a discount rate of 35%). The balance on the note is $0.00 at July 31, 2022.
On November 29,
2021 the Company borrowed the sum of $58,750.00 from SIXTH STREET LENDING, a North Carolina corporation. The note has a
Maturity date of May 28, 2022 and carries an interest rate of 8% per annum. The note also has conversion rights. During
the period beginning on the date of funding of this Note and ending on the date which is one hundred eighty (180) days following
such date (the “Initial Period”), the Conversion Price shall be fixed at $0.04. The balance on the note is $0.00 at July
31, 2022.
On December 21, 2021 the Company borrowed
the sum of $53,750.00 from SIXTH STREET LENDING, a North Carolina corporation. The note has a Maturity date of June 21, 2022 and
carries an interest rate of 8% per annum. The note also has conversion rights. During the period beginning on the date of funding
of this Note and ending on the date which is one hundred eighty (180) days following such date (the “Initial Period”), the
Conversion Price shall be fixed at $0.04. The balance on the note is $0.00 at July 31, 2022.
On January 11, 2022
the Company borrowed the sum of $53,750.00 from SIXTH STREET LENDING, a North Carolina corporation. The note has a Maturity date
of July 11, 2022 and carries an interest rate of 8% per annum. The note also has conversion rights. During the period
beginning on the date of funding of this Note and ending on the date which is one hundred eighty (180) days following such date (the
“Initial Period”), the Conversion Price shall be fixed at $0.04. The balance on the note is $0.00 at July 31, 2022.
On February 24, 2022 the Company borrowed
the sum of $38,750.00 from 1800 DIAGONAL LENDING, a Virginia corporation. The note has a Maturity date of August 24, 2022 and
carries an interest rate of 8% per annum. The note also has conversion rights. During the period beginning on the date of funding
of this Note and ending on the date which is one hundred eighty (180) days following such date (the “Initial Period”), the
Conversion Price shall be fixed at $0.04. The balance on the note is $38,750 at July 31, 2022.
On May 2, 2022 the Company borrowed the sum
of $33,750.00 from 1800 DIAGONAL LENDING, a Virginia corporation. The note has a Maturity date of November 2, 2022 and
carries an interest rate of 8% per annum. The note also has conversion rights. During the period beginning on the date of funding
of this Note and ending on the date which is one hundred eighty (180) days following such date (the “Initial Period”), the
Conversion Price shall be fixed at $0.04. The balance on the note is $33,750 at July 31, 2022.
On July 13, 2022
the Company borrowed $25,000 from Quick Capital LLC which included repayment obligation or return with an interest rate of 10%
with superior rights to be paid in the event of a sale of the Company. The noteholder has the right to convert or replace the
obligation into common stock at a fixed price of one share for every $.001 of preferred or the debt thereunder. The balance on
the note is $25,000 at July 31, 2022.
NOTE 10 - SUBSEQUENT EVENTS
Subsequent events
were evaluated through September 27, 2022 which is the date the financial statements were available to be issued. On August 9, 2022
the company the sum of $39,250.00 from 1800 Diagonal Lending LLC, a Virginia corporation. The note has a Maturity date
of February 9, 2024 and carries an interest rate of 8% per annum. The note also has conversion rights. During the period
beginning on the date of funding of this Note and ending on the date which is one hundred eighty (180) days following such date (the
“Initial Period”), the Conversion Price shall be fixed at $0.04. The balance on the note is $39,240.00 at July 31,
2022.
There were no events that would require additional
disclosure at the time of financial statement presentation.