NOTES
TO FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2022 AND 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
Basis
of preparation
The
reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed
in US$.
Basis
of presentation
The
accompanying condensed unaudited financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information.
Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of
operations.
It
is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made, which
are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the
results to be expected for the year.
Nuts
and Bolts International, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on August 21, 2013 to
create and publish electronic non-fiction multimedia books for the hobby and do-it-yourself consumer markets (“eBooks”) through
the internet. It’s eBook publishing operations were conducted through its wholly-owned subsidiary, Nuts and Bolts Publishing, LLC,
which was organized under the laws of the State of North Carolina on August 22, 2013.
Effective
as of February 29, 2016, the Company had a change of control as a result of the sale of its previous controlling shareholder of 5,000,000
shares of its common stock, representing approximately 77.67% of the Company’s issued and outstanding common stock. Following the
change of control, the Company has discontinued the eBook publishing operations previously carried on through the previous company’s
subsidiary.
Also,
following the change of control, the Company is now engaged in the business of providing management and consulting services to Trendmaker
Private Limited. Effective as of April 14, 2016, the Company amended its Articles of Incorporation to change its name to Trendmaker,
Inc. Limited.
Use
of estimates
In
preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at
the date of the financial statements and revenues and expenses during the reported period. Significant estimates include valuation of
in kind contribution of services, valuation of deferred tax assets. Actual results could differ from those estimates.
Revenue
recognition
The
Company will recognize revenue on arrangements in accordance with FASB ASC 606, Revenue from Contracts. ASC 606 creates a five-step model
that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or
agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction
price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance
obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect
the consideration it is entitled to in exchange for the services it transfers to its clients.
Cash
and cash equivalents
The
Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents.
As of December 31, 2022 and December 31, 2021, the Company had no cash and cash equivalents.
Loss
Per Share
Basic
and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by FASB ASC No.
260, “Earnings Per Share.” As of December 31, 2022 and December 31, 2021, there were no common share equivalents outstanding.
TRENDMAKER
INC. LIMITED
NOTES
TO FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2022 AND 2021
Income
taxes
The
Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, 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 bases. 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. Under ASC 740-10-25, 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.
Fair
value of financial instruments
The
carrying value of the Company’s financial instruments: cash and cash equivalents, and accounts payable and approximate their fair
values because of the short-term nature of these financial instruments.
The
Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”),
with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy
that prioritizes the inputs used in measuring fair value as follows:
Level
1: Observable inputs such as quoted prices in active markets;
Level
2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
Level
3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Recent
accounting pronouncements
The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of
such any pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
TRENDMAKER
INC. LIMITED
NOTES
TO FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2022 AND 2021
2. INCOME TAXES
For
the year ended December 31, 2022 and year ended December 31, 2021, the local (United States) loss before income taxes were comprised
of the following:
SCHEDULE
OF LOSS BEFORE INCOME TAXES
| |
For the year ended December 31, 2022 (Audited) | | |
For the year ended December 31, 2021 (Audited) | |
| |
| | |
| |
Tax jurisdictions from: | |
| | | |
| | |
- Local | |
$ | (39,990 | ) | |
$ | (46,891 | ) |
Tax jurisdictions from: Local | |
$ | (39,990 | ) | |
$ | (46,891 | ) |
The
provision for income taxes consisted of the following:
SCHEDULE
OF PROVISION OF INCOME TAXES
| |
For the year ended December 31, 2022 (Audited) | | |
For the year ended December 31, 2021 (Audited) | |
| |
| | |
| |
Current: | |
| | | |
| | |
- Local | |
$ | - | | |
$ | - | |
| |
| | | |
| | |
Deferred: | |
| | | |
| | |
- Local | |
| - | | |
| - | |
| |
| | | |
| | |
Income tax expense | |
$ | - | | |
$ | - | |
United
States of America
The
Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of December 31, 2022,
the operations in the United States of America incurred $866,647 of cumulative net operating losses which can be carried forward to offset
future taxable income. The net operating loss carry forwards begin to expire in 2037, if unutilized. The tax valuation allowance for
December 31, 2022 and December 31, 2021 are $181,996 and $173,598 respectively.
3. STOCKHOLDERS’ EQUITY
Common
Stock
The
Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.0001 per share.
As
at December 31, 2022, the Company has 13,537,000 shares of common stock outstanding.
4. COMMITMENTS AND CONTINGENCIES
As
of December 31, 2022, the Company has no commitment or contingency involved.
TRENDMAKER
INC. LIMITED
NOTES
TO FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2022 AND 2021
5. ACCRUED LIABILITIES
Accrued liabilities consisted of the followings at December 31, 2022 and December 31, 2021.
SCHEDULE
OF ACCRUED LIABILITIES
| |
As of
December 31, 2022 (Audited) | | |
As of
December 31, 2021 (Audited) | |
Accrued expenses | |
| 10,298 | | |
| 9,800 | |
Total accrued liabilities | |
$ | 10,298 | | |
$ | 9,800 | |
6.
RELATED PARTY BALANCES
SCHEDULE OF RELATED PARTY TRANSACTIONS
| |
As of
December 31, 2022 (Audited) | | |
As of
December 31, 2021 (Audited) | |
| |
$ | | |
$ | |
Due from related party: | |
| | | |
| | |
Related Party A | |
| 185,013 | | |
| 224,505 | |
| |
| | | |
| | |
Due to related party: | |
| | | |
| | |
Related Party B | |
| 214,842 | | |
| 214,842 | |
As
of December 31, 2022, the balance US$185,013
represented an outstanding amount due from Related Party A and US$214,842
represented an outstanding amount due to Related Party B. Related Party A and Related Party B respectively are
having common director with the Company. The amount due are unsecured, interest-free with no fixed repayment term.
7. GOING CONCERN
As
of December 31, 2022, the Company has an accumulated deficit of $866,647, capital deficiency of $40,127 and had a net loss of $39,990
for the year ended December 31, 2022. This raises substantial doubt about its ability to continue as a going concern. The ability of
the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its
business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as
a going concern. Management is taking various steps to provide the Company with the opportunity to continue as a going concern.
8. SUBSEQUENT EVENT
The
Company has evaluated subsequent events from the balance sheet date through December 31, 2022 the date the Company issued unaudited consolidated
financial statements in accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting
for and disclosure of events that occur after the balance sheet date but before financial statements are issued. During this fiscal year,
there was no subsequent event that required recognition or disclosure.