The accompanying footnotes are an integral part of
these unaudited condensed financial statements.
The accompanying footnotes are an integral part of
these unaudited condensed financial statements.
The accompanying footnotes are an integral part of
these unaudited condensed financial statements.
Notes to Condensed Unaudited Financial Statements
January 31, 2022
NOTE 1- Business, Basis of Presentation and Significant Accounting Policies
Nature of Operations
Pedro’s List, Inc., formerly known as Quest
Management, Inc. (the “Company”) was incorporated in the State of Nevada on October 12, 2014. The Company originally intended
to engage in the business of development of marketing channels to distribute fitness equipment to the wholesale market in the United States.
The Company, as described in the subsequent events footnote, expects to acquire Pedro’s List, LLC by the end of the second calendar
quarter of 2022 and is entering into the business of offering an online service to consumers looking for credible and reputable home service
and repair providers in Mexico.
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 (“US GAAP”)
and are presented in US dollars. The Financial Statements and related disclosures as of October 31, 2022,and 2021, are
audited pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Unless
the context otherwise requires, all references to “Quest Management,” “we,” “us,”
“our” or the “Company” are to Pedro’s List, Inc.
Cash and Cash Equivalents
The Company considers all highly liquid investments
purchased with original maturities of three months or less to be cash equivalents.
Revenue Recognition
The Company applies ASC 606, Revenue from Contracts
with Customers. Under ASC 606, the Company will recognize revenue from the sale of our exercise equipment by applying the following
steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction
price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue as each performance
obligation is satisfied.
Advertising
Advertising costs are expensed as incurred. Advertising expenses
for the three months ended January 31, 2022 and 2021 were $0.
Fair Value of Financial Instruments
The Company adopted ASC 820, Fair Value Measurements
and Disclosures, which provides a framework for measuring fair value under US GAAP. Fair value is defined as the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset
or liability in an orderly transaction between market participants on the measurement date. The standard also expands disclosures about
instruments measured at fair value and establishes a fair value hierarchy, which requires an entity to maximize the use
PEDRO’S LIST, INC.
(Formerly Quest Management, Inc.)
Notes to Unaudited Financial Statements
January 31, 2022
NOTE 1 – Business, Basis of Presentation and Significant Accounting
Policies (Continued)
of observable inputs and minimize the use of unobservable
inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
Level 1 — Quoted prices for identical assets
and liabilities in active markets;
Level 2 — Quoted prices for similar assets and
liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived
valuations in which all significant inputs and significant value drivers are observable in active markets; and
Level 3 — Valuations derived from valuation
techniques in which one or more significant inputs or significant value drivers are unobservable.
Use of Estimates
The preparation of financial statements in conformity
with US GAAP 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 revenues and expenses during
the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however
actual results could differ materially from those estimates.
Emerging Growth Company Critical Accounting Policy Disclosure
The Company
qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth
company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new
or revised accounting standards. As an emerging grown company, the Company can delay the adoption of certain accounting standards
until those standards would otherwise apply to private companies. The Company has chosen to “opt out” of such
extended transition period, and as a result, the Company will comply with new or revised accounting standards on the relevant dates on
which adoption of such standards is required for non-emerging growth companies.
Income Taxes
The Company accounts for income taxes under ASC 740-10-30,
Income Taxes. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting
and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences
are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more
likely than not that the assets will not be realized. 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 the statements of operations in the period that includes the enactment
date.
The Company adopted ASC 740-10-25, which addresses
the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements.
Under ASC 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not
that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The
tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater
than fifty percent (50%) likelihood of being realized upon ultimate settlement. ASC 740-10-25 also provides guidance on de-recognition,
classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company
had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of ASC 740-10-25.
PEDRO’S LIST, INC.
(Formerly Quest Management, Inc.)
Notes to Unaudited Financial Statements
January 31, 2022
NOTE 1 – Business, Basis of Presentation and Significant Accounting
Policies (Continued)
Loss Per Share
Net loss per common share is computed pursuant to
ASC 260-10-45, Earnings Per Share. Basic net loss per share is computed by dividing net loss by the weighted average number of shares
of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number
of shares of common stock and potentially outstanding shares of common stock during each period, unless their effect is anti-dilutive
due to continuing losses. There were no potentially dilutive shares outstanding as of January 31, 2022 and 2021, respectively.
Recent Accounting Pronouncements
We do not expect the adoption of recently issued accounting
pronouncements to have a significant impact on our results of operations or financial position.
NOTE 2 – Financial Condition and Going Concern
The Company’s financial statements have been
presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in
the normal course of business. The Company had limited operations during the period from October 12, 2014 (date of inception) to January
31, 2022 resulted in accumulated deficit of $864,177. As of January 31, 2022, Company had working capital deficit of $92,177. These factors
raise substantial doubt as to its ability to obtain debt and/or equity financing and achieve profitable operations.
Management intends to raise additional operating funds
through equity and/or debt offerings. However, there can be no assurance management will be successful in its endeavors. Ultimately,
the Company will need to achieve profitable operations in order to continue as a going concern.
There are no assurances that the Company will be able
to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing
through either private placement, public offerings and/or bank financing necessary to support its working capital requirements. To
the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, the
Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or
if available, will be on terms acceptable to the Company. If adequate working capital is not available to the Company, it may be
required to curtail its operations.
NOTE 3 – Notes Payable
The Company’s debt consists of the following:
| | |
January
31, 2022 | |
October 31, 2021 |
| Notes payable, non-interest bearing, due upon demand, unsecured. | |
$ | 33,122 | | |
$ | 5,000 | |
| | |
| | | |
| | |
| Note payable, non-interest bearing, due upon demand, unsecured. | |
| 6,150 | | |
| 6,150 | |
| | |
| | | |
| | |
| Notes payable, non-interest bearing, due upon demand, unsecured | |
| 6,000 | | |
| 6,000 | |
| | |
| | | |
| | |
| Total due | |
| 45,272 | | |
| 17,150 | |
| Current Portion | |
| 45,272 | | |
| 17,150 | |
| Long-term portion | |
$ | — | | |
$ | — | |
PEDRO’S LIST, INC.
(Formerly Quest Management, Inc.)
Notes to Unaudited Financial Statements
January 31, 2022
NOTE 4 – Note Payable -Related Party
The Company’s related party debt consists of
the following:
| | |
January 31, 2022 | |
October 31, 2021 |
| Notes payable, non-interest bearing, due upon demand, unsecured | |
$ | 12,500 | | |
$ | 12,500 | |
| | |
| | | |
| | |
| Total due | |
| 12,500 | | |
| 12,500 | |
| Current Portion | |
| 12,500 | | |
| 12,500 | |
| Long-term portion | |
$ | — | | |
$ | — | |
NOTE 5 – Income Taxes
The Company adopted the provisions of ASC 740-10 (formerly
known as FIN No. 48, Accounting for Uncertainty in Income Taxes). ASC 740-10 clarifies the accounting for uncertainty in income taxes
recognized in a company’s financial statements. ASC 740-10 requires a company to determine whether it is more likely than not that
a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold
is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The application of income
tax law is inherently complex. Laws and regulation in this area are voluminous and are often ambiguous. As such, we are required to make
many subjective assumptions and judgments regarding the income tax exposures. Interpretations and guidance surrounding income tax laws
and regulations change over time. As such, changes in the subjective assumptions and judgments can materially affect amounts recognized
in the balance sheets and statements of income.
The Company has no unrecognized tax benefit,
which would affect the effective tax rate if recognized. There has been no significant change in the unrecognized tax benefit during the
period ended January 31, 2022.
PEDRO’S LIST, INC.
(Formerly Quest Management, Inc.)
Notes to Unaudited Financial Statements
January 31, 2022
NOTE 5 – Income Taxes(Continued)
We classify interest and penalties arising from
the underpayment of income taxes in the statement of income under general and administrative expenses. As of January 31, 2022, we had
no accrued interest or penalties related to uncertain tax positions.
Deferred taxes are provided on a liability method
whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards 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 changes in tax laws and rates on the date of enactment.
The components of deferred income tax assets (liabilities) at January
31, 2022, were as follows:
| | |
| |
| |
|
| | |
Balance | |
Rate | |
Tax |
| Federal loss carryforward | |
$ | 864,177 | (1) | |
| 21 | % | |
$ | 181,477 | |
| Valuation allowance | |
| | | |
| | | |
| (181,477 | ) |
| Deferred tax asset | |
| | | |
| | | |
$ | — | |
| | |
| | | |
| | | |
| | |
| |
(1) |
This amount has been restated due to an adjustment in a previous period for the value assigned to shares issued for services. |
NOTE 6 – Contingencies and Commitments
The Company follows ASC 440 & ASC 450, subtopic
450-20 of the FASB Accounting Standards Codification to report accounting for contingencies and commitments respectively. Certain conditions
may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved
when one or more future events occur or fail to occur.
The Company assesses such contingent liabilities,
and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are
pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any
legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.
If the assessment of a contingency indicates that
it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would
be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not
probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate
of the range of possible losses, if determinable and material, would be disclosed.
PEDRO’S LIST, INC.
(Formerly Quest Management, Inc.)
Notes to Unaudited Financial Statements
January 31, 2022
NOTE 6 – Contingencies and Commitments(Continued)
Loss contingencies considered remote are generally
not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon
information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial
position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect
the Company’s business, financial position, and results of operations or cash flows.
Management of the Company has conducted a diligent
search and concluded that there were no commitments, contingencies, or legal matters pending at the balance sheet dates.
The effects of Covid -19 could impact our ability
to operate under the going concern and maintain sufficient liquidity to continue operations. The impact of Covid-19 on companies is evolving
rapidly and its future effects are uncertain. There are material uncertainties from Covid-19 that cast significant doubt on the company’s
ability to operate under the going concern. It is highly likely that our company will have issues relating to the current situation that
need to be considered by management. There will be a wide range of factors to take into account in going concern judgments and financial
projections including travel bans, restrictions, government assistance and potential sources of replacement financing, financial health
of suppliers and customers and their effect on expected profitability and other key financial performance ratios including information
that shows whether there will be sufficient liquidity to continue to meet obligations when they are due.
NOTE 7 – Related Party Transactions
A loan amount of $12,500 is due
to Custodian of the company on a note payable. The note payable is non-interest bearing, unsecured and is payable on demand.
As of January 31, 2022 and October 31, 2021, the Company
owes $20,155 and $26,155 due to an LLC owned 50% of by the current President of the company. The accounts payable due to the related party
are due on demand. The Company in the current quarter paid $6,000 back to the related party.
PEDRO’S LIST, INC.
(Formerly Quest Management, Inc.)
Notes to Unaudited Financial Statements
January 31, 2022
NOTE 8 – Subsequent Events
In accordance with ASC 855-10, the Company has analyzed
its operations subsequent to January 31, 2022 through the date these financial statements were issued and has determined that it has one
material subsequent events to disclose in these financial statements.
The Company proposed a merger with Pedro’s List
US, LLC and changed its name to Pedro’s List, Inc. The Company expects to file the merger documents with the SEC and FINRA and complete
the merger in the second calendar quarter of 2022. The Company will take on the business of the acquired entity which is the offering
of an online platform service to consumers looking for credible and reputable home service and repair providers in Mexico.