See accompanying notes to the unaudited condensed financial
statements.
See accompanying notes to the unaudited condensed financial
statements.
See accompanying notes to the unaudited condensed financial
statements.
See accompanying notes to the unaudited condensed financial
statements.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022
(Currency expressed in United States Dollars (“US$”))
(Unaudited)
NOTE 1 – ORGANIZATION AND BUSINESS BACKGROUND
Charmt, Inc. (the “Company”) was incorporated
in the State of Nevada on August 2, 2018. To June 27, 2022, the Company was developing a messenger application. It was being designed
to provide a chance to alter the speaker’s voice while talking with other people and full functionality of similar messaging apps.
The Company intended to develop and publish mobile applications on the iOS, Google Play, Amazon and Ethereum platforms. Charmt, Inc. intended
to generate revenues through the sale of branded advertisements and via consumer transactions, including in-app purchases. The management
of the Company planned to distribute the application all over the world using various platforms.
On June 27, 2022, Gediminas Knyzelis, the Company’s
former sole officer and director and majority stockholder, sold 3,000,000 shares of Company common stock (representing 77.5% of the 3,870,600
shares of common stock issued and outstanding at June 27, 2022) to ZHOU XUAN. In connection therewith, Gediminas Knyzelis resigned as
officer and director of the Company and ZHOU XUAN consented to act as the Company’s chief executive officer, chief financial officer,
and director. Also, Gediminas Knyzelis agreed to waive the $76,535 amount due to him at June 27, 2022 and the Company agreed to assign
the software acquired by the Company on March 17, 2022 to Gediminas Knyzelis.
As a result of the ownership and management change
described above, the Company ceased its former business plans and is now searching for business opportunities to acquire.
NOTE 2 -
GOING CONCERN
The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities
in the normal course of business. As of September 30, 2022, the Company had cash of $0 and negative working capital of $1,947. For the
nine months ended September 30, 2022, the Company had no revenues and generated a net loss of $13,486.
These factors raise substantial doubt regarding the Company`s ability to continue as a going concern.
Management anticipates that the Company will be dependent,
for the near future, on additional investment capital to fund operating expenses. There is no assurance that the Company will be successful
in this or any of its endeavors or become financially viable and continue as a going concern.
The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
NOTE 3 -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements of the Company have been
prepared in accordance with generally accepted accounting principles in the United States of America and are expressed in US dollars.
Fair Value of Financial Instruments
The Company’s financial instruments consist
of cash and accounts payable and accrued liabilities. The carrying amounts of these financial instruments approximates fair value because
of the short period of time between the origination of such instruments and their expected realization.
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 disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments
with original maturities of three months or less to be cash equivalents.
Software
On March 17, 2022 the Company acquired certain quality
assurance software and related intellectual property rights for $22,000 cash (which was paid for by the Company's sole officer and director).
To June 27, 2022, the cost of the software was amortized using the straight-line method over the estimated 5 years economic life of the
software. On June 27, 2022, the Company assigned the software to Gediminas Knyzelis as part of the change in control transaction.
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CHARMT, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022
(Currency expressed in United States Dollars (“US$”))
(Unaudited)
Net Income (Loss) per Common Share
Net income (loss) per common share is computed pursuant
to FASB Accounting Standards Codification (“ASC”) 260, “Earnings Per Share”. Basic net income (loss) per
common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the
period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares
of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could
occur from common shares issuable through contingent share arrangements, stock options and warrants.
There were no potentially dilutive common shares outstanding
for the periods presented.
Revenue Recognition
The Company’s revenue recognition policies will
follow FASB 606, “Revenue from Contracts with Customers”. The core principle of ASC 606 is that an entity recognizes revenue
to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects
to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying
the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step
3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize
revenue when (or as) the entity satisfies a performance obligation. An entity must also disclose sufficient information to enable users
of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with
customers, including qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments,
and assets recognized from the costs to obtain or fulfill a contract.
Income Taxes
The Company follows the asset and liability
method of accounting for income taxes under FASB ASC 740, “Income Taxes.” Deferred tax assets and liabilities are
recognized for the estimated future tax consequences attributable to differences between the financial statements 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. 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. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount
expected to be realized.
Foreign Currency
The Company’s functional and reporting currency
is the U.S. dollar. Transactions may occur in foreign currencies and management follows ASC 830, “Foreign Currency Matters”.
Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet
date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the
date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation
or settlement of foreign currency denominated transactions or balances are included in the Statement of Operations.
Recent Accounting Pronouncements
Certain accounting pronouncements have been issued
by the FASB and other standard setting organizations which are not yet effective and therefore have not yet been adopted by the Company.
The impact on the Company`s financial position and results of operations from adoption of these standards is not expected to be material.
NOTE 4 -
STOCKHOLDERS’ EQUITY
On June 27, 2022, as a result
of a private transaction, 3,000,000 shares of common stock, $0.001 par value per share (the "Shares") of Charmt, Inc., a Nevada
corporation (the "Company"), were transferred from Gediminas Knyzelis to ZHOU XUAN (the “Purchaser”). As a result,
the Purchaser became a holder of approximately 77.5% of the voting rights of the issued and outstanding share capital of the Company and
became the controlling shareholder. The consideration paid for the Shares was $350,000. The source of the cash consideration for the Shares
was personal funds of the Purchaser. In connection with the transaction, Gediminas Knyzelis released the Company from all debts owed to
him.
There were 3,870,600
shares of common stock issued and outstanding as of September 30, 2022.
F-6