STRONG SOLUTIONS, INC.
BALANCE SHEETS
AS OF MARCH 31, 2020 (UNAUDITED)
AND DECEMBER 31, 2019 (AUDITED)
|
|
March 31,
2020
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|
December 31, 2019
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
672
|
|
|
$
|
1,770
|
|
Accounts Receivable
|
|
$
|
0
|
|
|
$
|
0
|
|
Total Current Assets
|
|
|
672
|
|
|
|
1,770
|
|
Construction equipment from related party, net of depreciation
|
|
$
|
18,750
|
|
|
|
20,000
|
|
Total Assets
|
|
$
|
19,422
|
|
|
$
|
21,770
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liability
|
|
|
|
|
|
|
|
|
Related Party Accrued Shareholder Salary
|
|
$
|
134,500
|
|
|
$
|
131,500
|
|
Accounts Payable Loan from related party
|
|
$
|
3,000
|
|
|
$
|
0
|
|
Total Liabilities
|
|
$
|
137,500
|
|
|
$
|
131,500
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value; 75,000,000 shares authorized; 36,293,000 shares and 36,293,000 shares issued and outstanding as of March 31,2020 and December 31, 2019 respectively
|
|
$
|
3,629
|
|
|
$
|
3,629
|
|
Additional paid in capital
|
|
$
|
344,301
|
|
|
$
|
344,301
|
|
Accumulated deficit
|
|
$
|
(466,008
|
)
|
|
$
|
(457,660
|
|
Total stockholders' equity
|
|
$
|
(118,078
|
)
|
|
$
|
(109,730
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
19,422
|
|
|
$
|
21,770
|
|
Please
see accompanying notes to financial statements.
STRONG SOLUTIONS, INC
STATEMENTS OF OPERATIONS (AUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2020
AND MARCH 31, 2019
|
|
For the three
months ended
March 31,
2020
|
|
For the three
months ended
March 31,
2019
|
Commissions revenue
|
|
$
|
2,530
|
|
|
$
|
2,090
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
General and administration expense
|
|
$
|
4,428
|
|
|
$
|
14,845
|
|
Related Party office rent and salary expense
|
|
$
|
3,450
|
|
|
$
|
4,950
|
|
Loan from Related Party
|
|
$
|
3,000
|
|
|
$
|
0
|
|
Total operating expenses
|
|
$
|
10,878
|
|
|
$
|
19,795
|
|
|
|
|
|
|
|
|
|
|
Net (loss) from operations before income taxes
|
|
$
|
(8,348
|
)
|
|
$
|
(17,705
|
)
|
Income tax
|
|
$
|
0
|
|
|
$
|
0
|
|
Net income (loss)
|
|
$
|
(8,348
|
)
|
|
$
|
(17,705
|
)
|
Profit (Loss) per common share
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
Weights average of shares outstanding
|
|
$
|
36,293,000
|
|
|
$
|
36,293,000
|
|
Please
see accompanying notes to financial statements.
STRONG SOLUTIONS,
INC.
STATEMENTS OF
STOCKHOLDERS' EQUITY (UNAUDITED)
ON DECEMBER 31,
2019 AND MARCH 31, 2020
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
Par
|
|
|
|
APIC
|
|
|
|
Accumulated Deficit
|
|
|
|
Total
Stockholders’ Equity
|
|
Balance December 31, 2019
|
|
|
36,293,000
|
|
|
|
3,629
|
|
|
|
344,301
|
|
|
$
|
(457,660
|
)
|
|
$
|
(109,730
|
)
|
Net Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(8,348
|
)
|
|
$
|
(8,348
|
)
|
Balance, March 31, 2020
|
|
|
36,293,000
|
|
|
|
3,629
|
|
|
|
344,301
|
|
|
$
|
(466,088
|
)
|
|
$
|
(118,078
|
)
|
STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
ON DECEMBER 31, 2018 MARCH 31, 2019
|
|
Common Stock
|
|
|
|
|
|
|
|
|
Shares
|
|
Par
|
|
APIC
|
|
Accumulated
Deficit
|
|
Total
Stockholders’
Equity
|
Balance, December 31, 2018
|
|
|
36,293,000
|
|
|
|
3,629
|
|
|
|
344,301
|
|
|
$
|
(422,725
|
)
|
|
$
|
(74,795
|
)
|
Net Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(17,705
|
)
|
|
$
|
(17,705
|
)
|
Balance, March 31, 2019
|
|
|
36,293,000
|
|
|
|
3,629
|
|
|
|
344,301
|
|
|
$
|
(440,430
|
)
|
|
$
|
(92,500
|
)
|
Please
see accompanying notes to financial statements.
STRONG SOLUTIONS, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2020
AND MARCH 31, 2019
|
|
For the three months ended
March 31,
2020
|
|
For the three months ended
March 31,
2019
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(8,348
|
)
|
|
$
|
(17,705
|
)
|
Changes in Operating Assets and Liabilities:
|
|
|
|
|
|
|
|
|
Increase/(Decrease) in Accounts Payable
|
|
$
|
6,000
|
|
|
$
|
4,500
|
|
Depreciation
|
|
$
|
1,250
|
|
|
$
|
1,250
|
|
Net cash used in operating activities
|
|
$
|
(1,098
|
)
|
|
$
|
(11,955
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
$
|
0
|
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
|
|
$
|
(1,098
|
)
|
|
$
|
(11,955
|
)
|
Cash, beginning of the period
|
|
$
|
1,770
|
|
|
$
|
13,705
|
|
Cash, end of the period
|
|
$
|
672
|
|
|
$
|
1,750
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures regarding cash flows information
|
|
|
|
|
|
|
|
|
Interest paid
|
|
$
|
0
|
|
|
$
|
0
|
|
Income taxes paid
|
|
$
|
0
|
|
|
$
|
0
|
|
Please
see accompanying notes to financial statements.
STRONG
SOLUTIONS INC.
NOTES
TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE
1 – DESCRIPTION OF BUSINESS
Strong
Solutions, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on June 18, 2014 for engagement
in business of real estate management, maintenance and rehabilitation and construction equipment rental in Ukraine. The Company
provides this service for companies and for individuals outside of the United States of America.
As
a development-stage enterprise, the Company had limited operating revenues through March 31, 2020. Recorded Commission Revenue
was generated from Ukrainian clients. The Company is currently devoting substantially all of its present efforts to securing and
establishing a new business.
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 $672 as of March 31, 2020 and net loss from operation of $8,348 for the three months ended March 31, 2020. 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
Use
of estimates
The
preparation of the financial statements
in conformity with generally
accepted accounting principles
requires management
to make estimates and
assumptions that affect certain reported
amounts and disclosures. Accordingly,
actual results could differ from these estimates.
Revenue
recognition
We
base our judgment on guidance ASC 606. Accounting Standards Update 2016-08.
All
revenues appear in current periods to be recognized as gross, so, there is no net revenue
recognized in current periods.
FASB’s
new single, principle-based approach to accounting for revenue from contracts with customers. As the entity, we involved in providing
a good and provide service to the customers. In those circumstances, Topic 606 requires us to determine whether the nature of
our promise is to provide that good or service to the customers (that is, the entity is a principal) or to arrange for the good
or service to be provided to the customers by the other party (that is, the entity is an agent). This determination is based upon
whether we control the good or the service before it is transferred to the customer. Some indicators help in this evaluation.
1.
We identify obligations in the contract with firm Markus. A contract includes promises to transfer temporary right to use construction
equipment in their business for profit.
2.
We determine the transaction price $500 in a month. The transaction price is the reasonable amount of which we and firm
Markus were agree.
3.
We recognize revenue when the firm Markus obtains control of that equipment and we received the payment.
4.
The transaction price also can include variable consideration or consideration in a form other than cash. In our property
management service with Protel Management we received changeable revenue. If the consideration is variable, we estimate the
amount of consideration to which we will be entitled in exchange for the services. The estimated amount of variable
consideration will be 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 considered recognizes the revenue on the accrual basis, revenue is recognized when
earned and services have been performed.
We are principal,
and recognize the gross amount received from the customer as revenue. Revenues are reported
on the income statement when the services have
been performed. Our revenue includes the gross amounts that come from Client for the Property Management and Rent Service.
Cash
equivalents
The
Company considers all highly liquid instruments and tries to work in cash equivalent segment. The Company’s funds are deposited
in insured institutions.
Income
Taxes
We
are subject to income taxes in the U.S. For present time we don’t have any current income tax obligations.
The
Company accounts for income taxes under the provisions of ASC Topic 740, “Income Taxes.” The method of accounting
for income taxes under ASC 740 is an asset and liability method.
The
asset and liability method require the recognition of deferred tax liabilities and assets for the expected future tax consequences
of temporary differences between tax bases and financial reporting bases of other assets and liabilities. Deferred tax asset
would be the net operating loss carryforward value at tax rates. Our net (loss) from operations before income taxes for the three
months ended March 31, 2020 is $8,348 and for the three months ended March 31, 2019 is $17,705.
Income
tax assets and liabilities are computed annually for differences between financial statement and tax bases of assets and liabilities
that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods
in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce
deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period
plus or minus the change during the period in deferred tax assets and liabilities.
NOTE
4 – COMMON STOCK ISSUED AND OUTSTANDING
The
company authorized 75,000,000 Common shares $0.0001 par value.
For
the period from January 1, 2020 to March 31, 2020 there were no changes in common stock.
As
of March 31, 2020, the Company had issued and outstanding 36,293,000 shares of common stock.
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.
NOTE
5 – FAIR VALUE OF FINANCIAL INSTRUMENTS
The
carrying amounts of cash and cash equivalents approximate their fair values due to their short-term nature.
NOTE
6 – CONCENTRATION OF CREDIT RISK
The
Company maintains cash balances at a Wells Fargo financial institution. The balance, at any given time, may exceed Federal Deposit
Insurance Corporation (“FDIC”) insurance limits of $250,000 per institution. Our cash balances at March 31, 2020 were
within FDIC insured limits.
Concentration
of revenues.
The
Company has only two clients from which we receive the income: Protel Management and firm Markus. It shows our dependence from
them and in present time we can't diversify in order to mitigate the risks. We can have the potential for serious impact that
can result from a complete or partial loss of business from our clients and as a consequence of the change in income.
NOTE
7 – 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
8 – RELATED PARTY TRANSACTIONS
Mr.
Guzii is our controlling shareholder. He represents the company and provides the services on our behalf to our clients firm Markus
and Protel Management. We paid to Mr. Guzii $450 in 1st quarter for the office rent. For the period ends March 31,2020
he received $3,000 accrued salary and we receive $3,000 loan from him to cover our expenses.
He
devotes significant time servicing to Protel Management. We do not have an employment agreement with Mr. Guzii.
Director
of Protel Management Sergii Povaliaiev also is our shareholder. He holds 25,000 common shares – it is lower than 0.1% of
total issued common shares. Our revenue for the 1st quarter 2020 from Protel Management was $1,530
and
for 1st quarter 2019 was $1,590 respectively.
NOTE
9 – STOCKHOLDERS’ EQUITY
From
our inception on June 18, 2014 through March 31, 2019, the Company issued 36,293,000 shares of common stock. 35,000,000 for our
founder and 1,293,000 for non-affiliated investors for cash, received proceeds of $12,930 sold at $0.01 per share.
NOTE 10 – SUBSEQUENT EVENTS
In
accordance with ASC 855 the Company’s management reviewed all material events through the date these financial statements
were available to be issued, and there are no material subsequent events.
Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Operating
results for the three months ended March 31, 2020, are not necessarily indicative of results that may occur in future interim
periods or for the full fiscal year.
As
used in this Form 10-Q, references to the Company,” “we,” “our” or “us” refer to Strong
Solutions, Inc. a Nevada Corporation unless the context otherwise indicates.
Forward-Looking
Statements
Our
Form 10 contains “forward–looking statements” within the meaning of the Private Securities Litigation Reform
Act of 1995 and such statements are intended to enjoy the benefit of that act. Unless the context is otherwise, we use words such
as “anticipate”, “assumption”, ” believe”, “could”, “estimate”, “expect”,
“forecast”, “intend”, “may”, “objective”, “outlook”, “plan”
and “plans”, “potential”, “predict”, project” and “projection”, “seek”,
“should”, “will continue”, “will result” and “would”, or other such words, whether
nouns or pronouns and verbs or adverbs in the future tense and words and phrases that convey similar meaning and uncertainty of
and information about future events or outcomes and statements about performance that is not an historical fact to identify these
forward–looking statements. Such words and statements involve estimates, assumptions and uncertainties, which could cause
actual results to differ materially from those expressed in them. Any forward–looking statements are qualified in their
entirety by reference to the factors discussed throughout this document. All forward-looking statements concerning economic conditions,
rates of growth, rates of income or values as may be included in this document are based on information available to us on the
dates noted, and we assume no obligation to update any such forward–looking statements. It is important to note that our
actual results may differ materially from those anticipated in such forward-looking statements due to fluctuations in interest
rates, inflation, government regulations, economic conditions and competitive product and pricing pressures in the geographic
and business areas in which we conduct operations, including our plans, objectives, expectations and intentions and other factors
discussed elsewhere in this registration statement.
There
are a number of important factors beyond our control that could cause actual results to differ materially from the results anticipated
by these forward–looking statements. While we make these forward–looking statements based on our beliefs and on various
factors and using numerous assumptions using information available at the time we make these statements. Forward-looking statements
are neither predictions nor guaranties of future events or circumstances, and the assumptions, beliefs, expectations, forecasts
and projections about future events may differ materially from actual results. You have no assurance the factors and assumptions
we have used as a basis for forward–looking statements will prove to be materially accurate when the events they anticipate
actually occur in the future; and, you should not place undue reliance on any such forward–looking statements. We undertake
no obligation to publicly update any forward–looking statement to reflect developments occurring after the date of this
registration statement.
Business
Overview
Mr.
Guzii founded us to engage in real estate management and consulting, maintenance and rehabilitation, construction equipment rental
business in Ukraine. At the date of this report, we have one client (Protel Management) for whom we provide property management
service for real estate located in Ukraine and we have one client (firm Markus) for whom we provide construction equipment rental
service. From both clients, we received income in this quarter. It has been the source of our revenue.
We
are committed to expanding the scope of services offered. We will offer rehabilitation of properties with equipment rental services
useful in appropriate maintenance and repair. For Protel Management, we provide real estate management in Ukraine.
The
services we provide include identifying suitable opportunities for future real estate development and construction, oversight
of development and construction of real estate managed by Protel Management, and the management of residential and commercial
real estate, represented by Protel Management to consumers residing in and outside of Ukraine.
Since
our inception we have engaged in the following significant operating activities:
Company set up:
a.
|
|
Incorporate
company in state of Nevada
|
b.
|
|
Set up main
executive office in Ukraine
|
c.
|
|
Open up
bank account for the company
|
Secured initial capital by a contribution from our founder, Chief Executive Officer and Director Commenced significant other operational activities, such as:
a.
|
|
Have researched
and identified potential clients
|
b.
|
|
Have arranged
for and met with various potential clients
|
c.
|
|
Have drafted
and began production of various marketing materials
|
As
of the date of this form, we have written agreements for our services with:
Protel Management, LLC and Firm Markus
The
services what we contribute to Protel Management include: Manage the property, find the tenants for lease, assist work directly with
tenants about make the payments in time, handling maintenance, watch that
all equipment’s as: elevators, fire and gas alarms, sewerage, phone lines, refrigerators, etc., work properly. If repair
is required, then contact with services to fix it. Below we provide 3 months -to-3 months comparisons:
For the 1st quarter of 2020
|
|
$
|
1,530
|
|
For the 1st quarter of 2019
|
|
$
|
1,590
|
|
We
provide long term rental of construction equipment to firm Markus. This equipment includes:
Scaffoldings
and Rafters for outside and inside work. Technically this equipment uses all year around, but more in demand in warm weather,
therefore in January and February 2019 it was not used. We received $500 in this quarter from firm Markus as a payment for this
construction equipment for March 2019.
We
don’t have insurance to cover accidental damage but our agreement with firm Markus obligates them to pay the collateral
value of $25,000 in case of total loss. Below we provide 3 months to 3 months comparisons:
For the 1st quarter of 2020
|
|
$
|
1,000
|
|
For the 1st quarter of 2019
|
|
$
|
500
|
|
Liquidity
We don’t know about trends or any demands, commitments, events or uncertainties that will result to our liquidity
increasing or decreasing in any material way. Our cash
Capital resources
We have fixed assets on our balance: Construction
equipment net of depreciation $18,750.
Results of Operations for the three months period ended March
31, 20120 and for the three months period ended March 31, 2019
For the three months period ended March 31, 2020 we generated
$2,530 in revenues. We generated $1,530 from Protel Management and $ 1,000 from firm Markus. Our cash balance was $672.
For
the three months period ended March 31, 2020 we had $10,878 company expenses consist of $4,428 general and
administration expense, $3,450 include $3,000 accrued salary for shareholder and $450 payment for office rent and $3,000 loan
from Related Party. Our loss from operations was $8,348.
For the three months period ended March 31, 2019 we generated
$2,090 in revenues. We generated $1,590 from Protel Management and $500 from firm Markus. Our cash balance was $1,750.
For
the three months period ended March 31, 2019 we had $19,795 company expenses consist of $14,845 general and administration
expense and $4,950 include $4,500 accrued amount salary for shareholder and $450 payment for office rent. Our loss from
operations was $17,705.
Our cash balances were not sufficient to fund our limited levels of operations for any period
of time without further revenue or proceeds. In order to implement our plan of operations in the next twelve months, we need
to raise $50,000 in addition to the costs of becoming a reporting company. Being a development stage company, we have a
limited operating history but have meaningfully commenced business operations based upon the amount of revenue we have been
able to generate.
At the present time, we have not made any arrangements to raise additional cash. If we unable
to raise additional cash, we will either have to suspend operations until we do raise the cash, or cease operations entirely.
During start up period, our operations will be limited due to the limited amount of funds on hand. Our specific goal
is to profitably market and rent our construction equipment and sell related property management and property rehabilitation
services.
Liquidity and Capital Resources at March
31, 2020
Cash
|
|
$
|
672
|
|
Total liabilities and stockholders' equity
|
|
$
|
19,422
|
|
Going
Concern Consideration
While
management of the Company believes that the Company will be successful in its planned operating activities, there can be no assurance
that the Company will be successful in the development this business or services that will generate sufficient revenues to earn
a profit and sustain the operations of the Company. The accompanying financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going
concern. The Company has incurred an operating expense since inception, had small working capital as of March 31,2020 and the
cash resources of the Company were insufficient to meet its planned business objectives. These factors raise substantial doubt
about the Company’s ability to continue as a going concern. The accompanying 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.
Liquidity
and Capital Resources
As
of March 31, 2020, and March 31, 2019 we had cash of $672 and $1,750 respectively.
We
have fixed assets on our balance total 18,750, Scaffolding and Rafters.
Off
Balance Sheet Arrangements
None