NOTES
TO FINANCIAL STATEMENTS
FOR
THE YEARS ENDED DECEMBER 31, 2021
AND
THE YEAR ENDED DECEMBER 31, 2020
NOTE
1 – DESCRIPTION OF BUSINESS
Strong
Solutions, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on June 18, 2014 to engage in the
business of real estate management, maintenance and rehabilitation and construction equipment rental in Ukraine. The Company provided
this service for companies and individuals outside of the United States of America.
As
a development-stage enterprise, the Company had no operating revenue from December 31, 2020 through June 30, 2021 as a result of lockdowns
from COVID 19 in the Ukraine. As a result, a special shareholders meeting was held on March 22, 2021 and a new board of directors elected.
A
special board meeting was then held on April 5, 2021 at which officers were appointed and all business in the Ukraine cancelled, including
office rent for Mr. Guzii, resulting in no Commission Revenue generated from Ukrainian clients. The Company is currently devoting substantially
all its present efforts to securing and establishing a new business in the United States.
On
April 5, 2021 a Special Board Meeting was held at which all contracts, including Mr. Guzii’s office, in the Ukraine were cancelled,
effective January 1, 2021, due to the Covid 19 Pandemic and the Company’s focus on new business in the United States. On that same
date, David Anderson was appointed President by a majority of the Board of Directors and Eric Stevenson was appointed Treasurer by a
majority of the Board of Directors.
On
April 05, 2021, the Board of Directors unanimously approved issuing 500,000 shares of common stock to each Director as compensation for
serving on the Board. The Board of Directors unanimously approved issuing 500,000 shares of common stock to each Officer as compensation
for serving as Management for Strong Solutions, Inc. In addition, each Officer will receive $10,000 a month in compensation and if no
funds are available, the compensation shall accrue.
On
January 31, 2022, David Anderson resigned as President and member of the board of directors of the Company. On that same date Eric Stevenson
was appointed President of the Company on an interim basis by a Quorum of the Board of directors prior to Mr. Anderson’s resignation
as a director.
NOTE
2 – GOING CONCERN
The
financial statements have been prepared assuming that the Company will continue as a going concern. Currently, the Company has a cash
balance of $0 as of December 31, 2021 and net loss from continuing operations of $644,352 for the year ended December 31, 2021. These
factors raise substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company’s
capital requirements will depend on many factors including the success of our development efforts and our efforts to raise capital. Management
also believes the Company needs to raise additional capital for working purposes. There is no assurance that such financing will be available
in the future. The financial statements of the Company do not include any adjustments relating to the recoverability and classification
of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue
as a going concern.
NOTE
3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash
and Cash Equivalents
For
purposes of reporting within the statements of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal
restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of 90 days or less to be cash and cash equivalents.
There were cash equivalents of $0 at December 31, 2021 and December 31, 2020.
Earnings
(Loss) per Share
In
accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,” basic earnings (loss) per share
is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period. Diluted
earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common
stock equivalents and potentially dilutive securities outstanding during the period.
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting
period. Actual results could differ from those estimates. Significant estimates include the assumptions used in valuation of equity-based
transactions, valuation of derivative liabilities and valuation of deferred taxes.
Stock
Based Compensation
The
Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For
employees and directors and non-employees, the fair value of the award is measured on the grant date. The fair value amount is then recognized
over the period during which services are required to be provided in exchange for the award, usually the vesting period. Stock-based
compensation expense is recorded by the Company in the same expense classifications in the consolidated statements of operations, as
if such amounts were paid in cash.
Income
Taxes
The
Company accounts for income taxes pursuant to FASB ASC Topic 740, Income Taxes. Under FASB ASC Topic 740, deferred tax assets
and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and
financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification
of the assets and liabilities generating the differences.
The
Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon
the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and
results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable
income within the carry-forward period under the Federal tax laws.
Changes
in circumstances, such as the Company generating taxable income, could cause a change in judgment about the reliability of the related
deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate.
Recent
Accounting Pronouncements
Other
recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public
Accountants, and the SEC did not or in management’s opinion will not have a material impact on the Company’s present or future
consolidated financial statements.
NOTE
4 – COMMITMENTS AND CONTINGENCIES
The
Company is not currently a party to any material legal proceedings, nor is we aware of any other pending or threatened litigation that
would have a material adverse effect on our business, operating results, cash flows or financial condition should such litigation be
resolved unfavorable.
NOTE
5 – RELATED PARTY TRANSACTIONS
Mr.
Guzii was our controlling shareholder. He represented the company and provided the services on our behalf to our clients Markus and Protel
Management. Mr. Guzii sold his controlling interest to NV Share Services LLC on May 13, 2020. On March 22, 2021 a Special Shareholders
Meeting was held at which Mr. Guzii was removed as an officer and director of the Company without prejudice due to the Covid 19 Pandemic,
at the request in writing by NV Share Services LLC. On April 5, 2021 a special board meeting was held at which all business in the Ukraine
was cancelled, effective January 1, 2021, so that the Company could devote all of its time to finding new business in the United States.
We
rented office space from Mr. Guzii in Ukraine for $450 a month. As of January 1, 2021 we are no longer renting office space from Mr.
Guzii. We do not have an employment agreement with Mr. Guzii.
A
director of Protel Management, Sergii Povaliaiev, also is a shareholder. He holds 25,000 common shares.
On
February 24, 2021 the Company issued 750,000 shares of common stock to Mr. Andrii Guzii as compensation for services valued at $460,500.
On that same date, the Company issued 608,000 shares of common stock to NV Share Services LLC for cash valued at $6,080.
On
June 15, 2021 the Company issued 1,000,000 shares of common stock to Mr. Eric Stevenson as compensation for services valued at $9,882.
On
June 15, 2021 the Company issued 1,000,000 shares of common stock to Mr. David Anderson as compensation for services valued at $9,882.
On
June 15, 2021 the Company issued 500,000 shares of common stock to Mr. Oscar Kaalstad as compensation for services valued at $4,943.
During
the year 2020, a total of $30,075 in company related expenses such as accounting and audit fees, and filing fees were paid by Eric Stevenson.
As of December 31, 2020, $30,075 and accrued interest of $2,364 remains outstanding.
During
the year 2021 a total of $105,435 in salaries were accrued for Eric Stevenson ($50,000) and David Anderson ($55,435). As of December
31, 2021, the full amount of $105,435 remains outstanding to both individuals.
NOTE
6 – COMMON STOCK
The
company authorized 75,000,000 Common shares $0.0001 par value.
We
issued 300,000 shares of common stock to Andrii Guzii in consideration of expenses incurred on December 9, 2020.
We
issued 800,000 shares of common stock to NV Share Services LLC in consideration of $8,000 in cash on December 7, 2020.
We
issued 400,000 shares of common stock to NV Share Services LLC in consideration of $4,000 in cash on August 27, 2020.
We
issued 400,000 shares of common stock NV Share Services LLC in consideration of $4,000 in cash on May 26, 2020.
We
issued 1,293,000 common shares for cash at a purchase price of $0.01 per share to 31 nonaffiliated shareholders.
We
issued 5,000,000 common shares for cash at a purchase price of $0.002 per share to our director Mr.Guzii.
30,000,000
shares were issued to our director Mr.Guzii for repayment of accrued salary on $30,000 and $270,000 of stock compensation value at $0.01
per share. This value was determined based on the previous sale of stock to unrelated parties at 0.01 per share.
On
February 24, 2021 the Company issued 750,000 of common stock to Mr. Andrii Guzii as compensation for services valued at $460,500. On
that same date, the Company issued 608,000 shares of common stock to NV Share Services LLC for cash valued at $5,200 and services valued
at $880.
On
June 15, 2021 the Company issued a total of 1,000,000 shares of common stock to Mr. Eric Stevenson as compensation for services as both
an officer and director valued at $9,882.
On
June 15, 2021 the Company issued a total of 1,000,000 shares of common stock to Mr. David Anderson as compensation for services as both
an officer and director valued at $9,882.
On
June 15, 2021 the Company issued 500,000 shares of common stock to Mr. Oscar Kaalstad as compensation for services valued at $4,943.
As
of December 31, 2021, the Company had issued and outstanding 42,051,000 shares of common stock.
NOTE
7 – INCOME TAXES
The
Company provides for income taxes under FASB ASC 740, Accounting for Income Taxes. FASB ASC 740 requires the use of an asset and liability
approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial
statement and tax bases of assets and liabilities and the tax rates in effect currently.
FASB
ASC 740 requires the reduction of deferred tax assets by a valuation allowance, if, based on the weight of available evidence, it is
more likely than not that some or all of the deferred tax assets will not be realized. In the Company’s opinion, it is uncertain
whether they will generate sufficient taxable income in the future to fully utilize the net deferred tax asset. Accordingly, a valuation
allowance equal to 100% of the deferred tax asset has also been recorded resulting in no net deferred tax asset. The cumulative deferred
tax asset which is calculated by multiplying a 21% estimated tax rate by the cumulative net operating loss (NOL) adjusted for the following
items:
SCHEDULE
OF INCOME TAXES
For the period ended December 31, | |
2021 | | |
2020 | |
Book loss for the year | |
$ | (649,402 | ) | |
$ | (21,200 | ) |
| |
| | | |
| | |
Adjustments: | |
| | | |
| | |
Accrued expenses | |
| 199,014 | | |
| - | |
Stock based compensation | |
| 460,425 | | |
| - | |
Tax loss for the year | |
| 10,037 | | |
| (21,200 | ) |
| |
| | | |
| | |
Estimated effective tax rate | |
| 21 | % | |
| 21 | % |
Deferred tax asset | |
$ | 2,107.74 | | |
$ | (4,452.00 | ) |
| |
| | | |
| | |
Details for the last period are as follows: | |
| | | |
| | |
| |
| | | |
| | |
For the period ended December 31, | |
| 2021 | | |
| 2020 | |
Deferred tax asset | |
$ | (2,108 | ) | |
$ | 4,452 | |
Valuation allowance | |
| 2,108 | | |
| (4,452 | ) |
Current taxes payable | |
| - | | |
| - | |
Income tax expense | |
$ | - | | |
$ | - | |
NOTE
8 – DISCONTINUED OPERATIONS
The
Company has just two contracts for property management and equipment rental in the Ukraine where the Pandemic has affected our business
and as a result the Board of Directors has canceled its contracts with both Protel Management and Marcus effective January 1, 2021. The
office rented for the Company has also been canceled as of January 1, 2021.
We
provide property management services for Protel Management in the Ukraine. We own construction equipment which is rented out to Marcus
monthly. Protel’s property is vacant due to the Pandemic. Marcus’ equipment rental stopped due the Pandemic. With no further
business interests in the Ukraine, the Company stopped paying office rent as of January 1, 2021, as determined by the Board of Directors.
The
major classes of assets and liabilities of Strong Solutions, Inc. at December 31, 2021 and 2020 are as follows:
SCHEDULE OF DISCONTINUED OPERATIONS
| |
December 31, | | |
December 31 | |
| |
2021 | | |
2020 | |
ASSETS | |
| | | |
| | |
Current assets | |
| | | |
| | |
Cash and cash equivalents | |
$ | - | | |
$ | 2,457 | |
| |
| | | |
| | |
Total current assets | |
| - | | |
| - | |
Non-current assets | |
| | | |
| | |
Equipment, net | |
| - | | |
| 15,000 | |
Assets of discontinued operations | |
$ | - | | |
$ | 17,457 | |
| |
| | | |
| | |
LIABILITIES | |
| | | |
| | |
Current liabilities | |
| | | |
| | |
Related party accrued shareholder salary | |
$ | 143,350 | | |
$ | 140,500 | |
Accounts payable loan from related party | |
| 3,000 | | |
| 3,000 | |
Total current liabilities | |
| 146,350 | | |
| 143,500 | |
Liabilities of discontinued operations | |
| 146,350 | | |
| 143,500 | |
| |
| | | |
| | |
Net (liabilities) assets of discontinued operations | |
$ | (146,350 | ) | |
$ | (126,043 | ) |
NOTE
9 – SUBSEQUENT EVENTS
On
January 31, 2022, David Anderson resigned as President and member of the board of directors of the Company. On that same date Eric Stevenson
was appointed President of the Company on an interim basis by a quorum of the Board of Directors.
In
accordance with ASC 855 the Company’s management reviewed all material events through the date these financial statements were
available to be issued, there was only one material subsequent event.
Certification
by Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed hereto)
|
Strong Solutions,
Inc. |
|
|
|
Date: March 31, 2022 |
By: |
/s/
Eric Stevenson |
|
|
Eric Stevenson |
|
|
Chief Executive Officer
(Principal Executive Officer) |
Date: March
31, 2022 |
By: |
/s/
Eric Stevenson |
|
|
Eric Stevenson |
|
|
Chief Financial Officer (Principal Financial and Principal
Accounting Officer) |