UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K/A

(Amendment No. 2)

 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2019

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

CARNEGIE DEVELOPMENT, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Nevada

 

90-0712976

(State or other jurisdiction of

Incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

3495 Lakeside Drive, #1087

Reno, Nevada

 

89509

(Address of principal executive offices)

 

(Zip Code)

 

Registrant's telephone number, including area code: 800-345-8561

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.00001 par value

 

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ Yes     ☒ No

 

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes     ☒ No

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. ☐ Yes     ☒ No

 

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). ☐ Yes     ☒ No

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the Registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes     ☒ No

 

State the aggregate market value of the voting and nonvoting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold or the average bid and asked price of such common equity, as of the last business day of the Registrant’s most recently completed second fiscal quarter.

 

Held by Non-affiliates at Market Price as on December 31, 2019

Voting

Common Stock

6,203,716 Shares

$2.02 per Share

$12,527,466

 

DOCUMENTS INCORPORATED BY REFERENCE

 

None

 

 

 

 

EXPLANATORY NOTE

 

The sole purpose of this Amendment No. 2 to the Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2019, is to add the Report of Independent Registered Public Accounting Firm dated 14th November 2020 along with the audited financial statements of Carnegie Development INC, as of December 31, 2019 and 2018.

 

No other changes have been made to the Form 10-K. This Amendment No. 2 to the Form 10-K speaks as of the original filing date of the Form 10-K and does not reflect all events that may have occurred subsequent to the original filing date and does not modify or update in any way disclosures made in the Form 10-K.

 

 
2

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the shareholders and the board of directors of Carnegie Development Inc.

 

Opinion: We have audited the accompanying balance sheets of Carnegie Development Inc. (the “Company”) as of December 31, 2019 and 2018, the related statements of income, stockholders’ equity and cash flows for each of these years in the period then ended, and the related notes (collectively referred as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the company as of the years then ended, and the results of its operations and its cash flows for these years in the period then ended, in conformity with U.S. generally accepted accounting principles.

 

We have also audited in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the company’s internal control over financial reporting as of the year then ended, based on the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report of even dated, express an unqualified opinion on the Company’s Internal Control over financial reporting.

 

Basis of Opinion: These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. Federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with standards of PCAOB, those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Critical Audit Matters: The management listed the critical audit matters as note 11 in the notes on accounts.  They are the matters arising from the current period audit of the financial statements and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgements. These critical audit matters do not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by referring the critical audit matters, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 

Yusufali Musaji

Managing Partner

Yusufali & Associates, LLC

PCAOB registration # 3313  

 

14th November 2020   

 

 
3

 

 

BALANCE SHEET

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

Notes

 

 

USD

 

 

USD

 

ASSET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current asset

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

84

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSET

 

 

 

 

 

84

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

 

 

 

230,375

 

 

 

120,000

 

Loan from related party

 

 

3

 

 

 

90,411

 

 

 

-

 

Credit card payable

 

 

 

 

 

 

1,724

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

 

 

 

322,510

 

 

 

120,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A preferred stock: 1,000 shares authorized, par value $0.001 per share; 1,000 shares issued and outstanding on December 31, 2019 and 1,000 shares issued and outstanding on December 31, 2018

 

 

4

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock: 250,000,000 shares authorized, par value $0.00001 per share, 46,203,716 shares issued and outstanding on December 31, 2019 and 41,153,156 shares issued and outstanding on December 31, 2018

 

 

4

 

 

 

3,532,757

 

 

 

2,270,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid in capital

 

 

4

 

 

 

3,999

 

 

 

1,146,639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated loss

 

 

 

 

 

 

(3,859,183 )

 

 

(3,536,757 )

Total shareholders’ equity

 

 

 

 

 

 

(322,426 )

 

 

(120,000 )

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

84

 

 

 

-

 

 

See accompanying notes to financial statements.

 

 
4

 

 

STATEMENT OF OPERATIONS

 

 

 

 

 

 

Year ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

Notes

 

 

USD

 

 

USD

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

-

 

 

 

-

 

Cost of revenues

 

 

 

 

 

-

 

 

 

-

 

GROSS LOSS

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

General and Administrative expense

 

 

5

 

 

 

(322,426 )

 

 

(60,000 )

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FOR THE YEAR

 

 

 

 

 

 

(322,426 )

 

 

(60,000 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share of common stock attributable to common stockholder

 

 

 

 

 

 

 

 

 

 

 

 

            Basic 

 

 

 

 

 

 

(0.0076 )

 

 

(0.0015 )

            Diluted

 

 

 

 

 

 

(0.0076 )

 

 

(0.0015 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in computing net loss per share of common stock

 

 

 

 

 

 

 

 

 

 

 

 

            Basic 

 

 

 

 

 

 

42,626,236

 

 

 

41,153,156

 

            Diluted

 

 

 

 

 

 

42,626,236

 

 

 

41,153,156

 

 

See accompanying notes to financial statements.

 

 
5

 

 

STATEMENT OF CASH FLOWS

 

 

 

 

 

Year ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

Notes

 

USD

 

 

USD

 

 

 

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Loss for the year

 

 

 

 

(322,426 )

 

 

(60,000 )

Adjustments for :

 

 

 

 

 

 

 

 

 

 

Working capital change :

 

 

 

 

 

 

 

 

 

 

     Change in accounts payables and accruals

 

 

 

 

230,375

 

 

 

60,000

 

     Change in Credit card payable

 

 

 

 

1,724

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in operating activities

 

 

 

 

(90,327 )

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITY

 

 

 

 

 

 

 

 

 

 

Loan from related party

 

 

 

 

90,411

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Net cash from financing activity

 

 

 

 

90,411

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

 

 

84

 

 

 

-

 

Cash and cash equivalents at beginning of period

 

 

 

 

-

 

 

 

-

 

Cash and cash equivalents at end of period

 

 

 

 

84

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non cash financing activity

 

 

 

 

 

 

 

 

 

 

Conversion of Additional paid in capital into equity share capital

 

 

 

 

1,146,639

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of Accounts payableinto equity share capital

 

 

 

 

120,000

 

 

 

-

 

 

See accompanying notes to financial statements.

 

 
6

 

 

STATEMENT OF SHAREHOLDER'S EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A
Preferred Stock

 

 

Common Stock

 

 

Accumulated

 

 

Additional paid in

 

 

Total
Shareholders' 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

loss

 

 

 capital

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as on January 1, 2018

 

 

1,000

 

 

 

1

 

 

 

41,153,156

 

 

 

2,270,117

 

 

 

(3,476,757 )

 

 

1,146,639

 

 

 

(60,000 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

Net loss during the year

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(60,000 )

 

 

-

 

 

 

(60,000 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as on December 31, 2018

 

 

1,000

 

 

 

1

 

 

 

41,153,156

 

 

 

2,270,117

 

 

 

(3,536,757 )

 

 

1,146,639

 

 

 

(120,000 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued

 

 

-

 

 

 

-

 

 

 

5,050,560

 

 

 

1,262,640

 

 

 

-

 

 

 

-

 

 

 

1,262,640

 

Converted to equity shares

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,142,640 )

 

 

(1,142,640 )

Net loss during the year

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(322,426 )

 

 

-

 

 

 

(322,426 )

Balance as on December 31, 2019

 

 

1,000

 

 

 

1

 

 

 

46,203,716

 

 

 

3,532,757

 

 

 

(3,859,183 )

 

 

3,999

 

 

 

(322,426 )

 

See accompanying notes to financial statements.

 

 
7

 

 

NOTES TO FINANCIAL STATEMENTS December 31, 2019

 

1 NATURE OF OPERATIONS AND BASIS OF PRESENTATION

 

Carnegie Development Inc., is a publicly trading company under the symbol, “CDJM”

 

The Company Website is http://carnegie-development.com/    

 

This Company was previously known as:

 

 

·

Escue Energy Inc until July 1, 2019

 

 

○         State of incorporation changed from Delaware to Nevada in 2015

 

·

eDoorways Corporation, Inc. until 2015

 

·

M Power Entertainment, Inc. until 2007

 

·

GK Intelligent Systems, Inc. until 2005

 

·

Technicraft Financial, Ltd. until 1994

 

·

Incorporated in Delaware in February 1988

 

Effective July 1st, 2019 the Articles of Incorporation has been amended and the new name is Carnegie Development, Inc.

 

On Friday 5th June 2020, FINRA approved the name change as well as the symbol change. The new CUSSIP is 14350V108

 

Going concern

 

The Company has an accumulated deficit of $ 3,859,183 as on the reporting date and there was no revenue since inception.

 

The Company acquired six special purpose entities in Texas. As of 14th November 2020, this Company awaits to receive the audited financial statements for these six special purpose entities to formalize the acquisition in compliance with the regulations. These six special purpose entities are engaged in land development and construction of multi-family homes.

 

The Company is also seeking debt or equity financing to fund its development plan although no financing arrangements are currently in place and the Company can provide no assurance that financing will be available on acceptable terms. However, the management believes that the actions for (a) obtaining the additional funds and (b) implementing its strategic plans, provide the opportunity for the Company to continue as a going concern.

 

Basis of Presentation

 

This Company uses the enterprise reporting under the provisions of Statement of Financial Accounting Standards (“SFAS”) no. 7. The accompanying financial statements are prepared in accordance with Generally accepted accounting principles (“US GAAP”) in the United States of America.

 

 
8

 

 

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates and Assumptions

 

The preparation of financial statements requires the 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 reporting amounts of revenues and expenses for the reported period. Actual results will differ from those estimates.

 

Included in these estimates are legal risks and exposures, valuation of stock-based compensation, the potential outcome of future tax consequences of events that have been recognized in the financial statement or tax returns.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

 

Concentration of Credit Risks

 

The Company is subject to concentrations of credit risk primarily from cash and cash equivalents.

 

The Company’s cash and cash equivalents accounts are held at financial institutions and are insured by the Federal Deposit Insurance Corporation, or the FDIC, up to $250,000. As on the reporting date, there were no cash balances in excess of federally insured limits.

 

Product Concentration

 

Since September 2020, the Company is focusing on real estate development activities.

 

Fair Value of Financial Instruments

 

The Company accounts, for the assets and liabilities measured at fair value on a recurring basis, in accordance with ASC Topic 820, Fair Value Measurements and Disclosures, ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements

 

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:

 

Level 1 : Observable inputs such as quoted market prices in active markets for identical assets or liabilities.

 

Level 2 : Observable market-based inputs or unobservable inputs that are corroborated by market data.

 

Level 3 : Unobservable inputs for which there is little or no market data, which require the use of the reporting entities own assumptions.

The Company did not have any Level 2 or Level 3 assets or liabilities on the reporting date.

 

 
9

 

 

Additional Disclosures Regarding Fair Value Measurements

 

The carrying value of cash and cash equivalents, credit card payable, accounts payable and loan from related party approximate their fair value due to the short maturity of these items.

 

Revenue Recognition

 

The Company recognizes revenue on arrangements in accordance with ASC 606 — Revenue from Contracts with Customers. Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the resulting receivable is reasonably assured. Since inception and until now, this company has not earned any revenue.

 

Advertising

 

The Company expenses advertising costs as incurred. The Company did not spend any money for the advertising, during the reporting period.

 

Share-Based Payment

 

The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation-Stock Compensation, Under the fair value recognition provisions of this topic, stock based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is the vesting period.

 

Basic and Diluted Earnings per Share

 

Basic earnings per share are calculated by dividing the income available to stockholders by the weighted-average number of shares of Common Stock outstanding during each period. Diluted earnings per share are computed using the weighted average number of shares of Common Stock and dilutive Common Stock share equivalents outstanding during the period. Dilutive Common Stock share equivalents consist of shares issuable upon the exercise of stock options and warrants (calculated using the modified-treasury stock method). Earnings per share calculations are provided as part of the income statement.

 

Fair Value Measurements

 

For certain financial instruments, including cash and cash equivalents, credit card payable, accounts payable and loan from related party, the carrying amounts approximate fair value due to their relatively short

maturities.

 

The Company follows ASC 820-10, "Fair Value Measurements and Disclosures." ASC 820-10 defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheet for current liabilities qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest.

 

The three levels of valuation hierarchy are defined as follows:

 

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

 

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

The Company did not identify any non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC 815.

 

ASC 825-10 "Financial Instruments." permits entities to choose to measure many financial assets and financial liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The Company chose not to elect the option to measure the fair value of eligible financial assets and liabilities.

 

 
10

 

 

Provisions

 

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made.

 

Special Purpose Entities

 

Effective 30th September 2020, this company shall report the consolidated financial statements to include the financial statements of the newly acquired six special purpose entities

 

Net Income per Share

 

The Company computes net income (loss) per share in accordance with ASC 260-10, “Earnings per Share.” The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per share gives effect to all dilutive potential common shares outstanding during the period using the “as if converted” basis.

 

3 LOAN FROM RELATED PARTY

 

A short term loan was extended by a related party to finance working capital requirements of the Company. The loan is unsecured, and non- interest bearing, with no set terms of repayment.

 

4 COMMON STOCK AND PREFERRED STOCK

 

Common Stock 

 

There is currently only one class of common stock. Each share common stock is entitled to one vote.

 

The authorized number of shares of common stock of the Company on the reporting date was 250,000,000 shares with a par value per share of $0.00001. Authorized shares that have been issued and outstanding are 46,203,716 as on the reporting date. Past dues were settled by share issuance as reflected in Statement of Shareholders equity.

 

Preferred Stock

 

Series A - [1] Designation: A series of preferred stock is hereby designated as Series A Preferred Stock. [2] Liquidation Preference: The holders of the Series A Preferred Stock has no liquidation preference. [3] Dividends: The holders of the Series A Preferred Stock shall not receive dividend. [4] Number: The number of shares is fixed at 1,000. As on the reporting date, 1,000 shares are authorized, issued and outstanding. [5] Conversion: The Series A Preferred Stock is not convertible into shares of common stock. [7] Voting Rights: The Series A Preferred Stock, collectively, are entitled to that number of votes which shall equal Seventy-five percent (75%) of all eligible votes. There is currently 1 shareholder of record of the company’s common stock.

 

Additional paid in capital

 

Additional paid in capital as on the current balance sheet date is attributable to Series A preferred stock.

 

 
11

 

 

5 GENERAL AND ADMINISTRATIVE EXPENSE

 

 

 

2019

 

 

2018

 

 

 

USD

 

 

USD

 

 

 

 

 

 

 

 

Taxes and licenses

 

 

223,356

 

 

 

-

 

Legal and professional expense

 

 

88,526

 

 

 

-

 

Administrative expenses

 

 

6,922

 

 

 

-

 

Dues and subscription

 

 

3,271

 

 

 

-

 

Bank charges

 

 

182

 

 

 

-

 

Office expenses

 

 

169

 

 

 

-

 

Managerial remuneration

 

 

-

 

 

 

60,000

 

 

 

 

322,426

 

 

 

60,000

 

 

 6 RELATED PARTY TRANSACTIONS

 

Related parties include the shareholders, directors, key management personnel of the Company, and entities which are controlled or significantly influenced by any or all such parties.

 

The company has transactions with the related parties which arise in the normal course of business from the commercial transactions and same are reviewed and approved by the board.

 

Since 2019, this company is in receipt of short-term loans every now and then from a private business entity to pay the bills. The Chairman & the CEO of this company is also managing that private business entity which is providing the short-term loans every now and then to this company.

 

None of the directors or officers received any remuneration from the Company during 2019 (2018: $60,000)

 

7 INCOME TAXES

 

Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

 

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination

 

Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations.

 

 
12

 

 

A reconciliation of the Company’s effective tax rate to the statutory federal rate is as follows:

 

 

 

2019

 

 

2018

 

 

 

USD

 

 

USD

 

 

 

 

 

 

 

 

Deferred tax assets :

 

 

 

 

 

 

Net operating loss carryovers

 

 

3,859,183

 

 

 

3,536,757

 

Stock-based compensation

 

 

-

 

 

 

-

 

Other temporary differences

 

 

-

 

 

 

-

 

Total deferred tax assets

 

 

3,859,183

 

 

 

3,536,757

 

Valuation allowance

 

 

(3,859,183 )

 

 

(3,536,757 )

Net deferred tax asset

 

 

-

 

 

 

-

 

 

As on the reporting date, the Company had net operating loss carryovers of $3,859,183 that may be applied against future taxable income and expires at various dates between 2026 and 2031, subject to certain limitations. The Company has a deferred tax asset arising substantially from the benefits of such net operating loss deduction and has recorded a valuation allowance for the full amount of this deferred tax asset since it is more likely than not that some or all of the deferred tax asset may not be realized

 

8 CONTINGENCIES AND COMMITMENTS

 

Contingencies

 

Silverland Finance Ltd, Platinum Investment Corporation, Lin Zhou, Jin Wang, and Li Jun (collectively known as plaintiffs) have filed a law suit on (i) Wal1007, LLC, (ü) Wal1009, LLC, (iii) Timothy Barton, (iv) Sada Cumber, and (v) Carnegie Development, Inc. (collectively known as defendants) on November 15, 2019 in the 44th Judicial District of Texas in Dallas County, Texas, Case No DC-19-18361 and on 25th November, 2019, this company was served with the notice of the court case. On December 30, 2019 thiscompany filed its (i) Plea in Abatement; (ii) Rule 91A Motion to Dismiss Plaintiff’s Original Petition (“Motion to Dismiss”); (iii) Special Exceptions and Original Answer denying the causes of action asserted against CDI, and (iv) Motion for Protective Order and Motion to Stay Discovery Pre-Trial Proceedings. Upon Plaintiffs filing an Amended Petition thereafter, this company withdrew the Motion to Dismiss on February 5, 2020. No other material events occurred in this case as on 21st march 2020.

 

The Management expects probable outflow as a result of this litigation to be remote and hence no provision provided.

 

Capital commitments

 

At 31 December 2019, the Company had capital commitments amounting to USD Nil (2018: USD Nil).

 

9 SUBSEQUENT EVENTS

 

On 11 March 2020, the World Health Organization made an assessment that the outbreak of a coronavirus (COVID-19) can be characterized as a pandemic. As a result, the economic and risk environment in which the company operates has been impacted. This situation arising and any possible impact to these financial statements is considered a subsequent, non-adjusting event

 

The situation, including the government and public response to the challenges, continue to progress and rapidly evolve. Therefore, the extent and duration of the impact of these conditions remain uncertain and depend on future developments that cannot be accurately predicted at this stage, and a reliable estimate of such an impact cannot be made at the date of authorization of these financial statements.

 

10 RESTATEMENT OF PRIOR YEAR COMPARATIVES

 

Certain figures for the previous year were regrouped/reclassified, wherever necessary, to conform to current year’s presentation. However, such reclassifications do not have any impact on the Company’s previously reported financial results.

 

11 MANAGEMENT ASSERTIONS ON CRITICAL AUDIT MATTERS

 

Manuals and handbooks: Absence of written manuals and handbooks is the concern for the audit. Since the Company is involving experienced professionals for the day to day operations, the need for specialized training was not felt. So also, the need for the written manuals and handbooks. However, the Management is aware of the need for standard operating procedures to educate and train its growing general staff. Preparation of manuals and handbooks has begun.

 

 
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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Amendment No. 2 to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

CARNEGIE DEVELOPMENT, INC.

 

 

 

 

Dated: November 14, 2020

By:

/s/ Saskya Bedoya

 

 

Saskya Bedoya

 

 

 

Treasurer and Director

 

 

In accordance with the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated:

 

/s/ Timothy Barton

 

Date: November 14, 2020

Timothy Barton

 

 

President and Director

 

 
14

 

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