NOTES
TO AUDITED FINANCIAL STATEMENTS
JUNE
30, 2020
NOTE
A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A
summary of significant accounting policies of Sigmarenopro, Inc. (the Company) is presented to assist in understanding the Company’s
financial statements. The accounting policies presented in these footnotes conform to accounting principles generally accepted
in the United States of America and have been consistently applied in the preparation of the accompanying financial statements.
These financial statements and notes are representations of the Company’s management who are responsible for their integrity
and objectivity. The Company has not realized revenues from its planned principal business purpose.
Organization,
Nature of Business and Trade Name
Sigmarenopro,
Inc. (the Company) was incorporated in the State of Nevada on June 16, 2017. Sigmarenopro, Inc. intends to provide home project
owners with contractor match making services in the U.S. Their customized match making service helps homeowners converge with
professional contractors. They also intend to create a collection of articles intended to help homeowners with home project information,
including how to outline project requirements, select the right contractor, interview contractors, draw up a project contract
and settle disputes with contractors. Their service is deigned to be free for all homeowners to use and post their projects and
plan to build a network of professionally-skilled contractors who provide a broad array of construction and renovation services
for everything from changing light fixtures to complete kitchen renovation, and from housecleaning services to new construction.
The
Company’s principal office is in Kiryat Motzkin, Israel.
The
Company’s activities are subject to significant risks and uncertainties including failing to secure additional funding to
operationalize the Company’s website and apps before another company develops similar websites or apps.
Basis
of Presentation
The
accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United
States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”)
and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present
the financial position, results of operations and cash flows at June 30, 2020 and for the related periods presented.
Property
and Equipment
Property
and equipment are carried at cost. Expenditures for maintenance and repairs are charged against operations. Renewals and betterments
that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and
related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the
period.
Depreciation
is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets. The estimated
useful lives of depreciable assets are:
|
|
Estimated
|
|
|
Useful
Lives
|
Office
Equipment
|
|
5-10
years
|
Copier
|
|
5-7
years
|
Vehicles
|
|
5-10
years
|
For
federal income tax purposes, depreciation is computed under the modified accelerated cost recovery system. For financial statements
purposes, depreciation is computed under the straight-line method.
The
Company has been in the developmental stage since inception and has no operations to date. The Company currently does not have
any property and equipment. The above accounting policies will be adopted upon the Company maintains property and equipment.
Cash
and Cash Equivalents
For
purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with maturity of three
months or less to be cash equivalents.
Recent
Accounting Pronouncements
We
have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements
will have a material impact on the Company.
Revenue
recognition
The
Company’s revenue recognition policies are in compliance with FASB ASC 605-35 “Revenue Recognition”. Revenue
is recognized when a formal arrangement exists, the price is fixed or determinable, all obligations have been performed pursuant
to the terms of the formal arrangement and collectability is reasonably assured. The Company recognizes revenues on sales
of its services, based on the terms of the customer agreement. The customer agreement takes the form of either a contract
or a customer purchase order and each provides information with respect to the service being sold and the sales price. If
the customer agreement does not have specific delivery or customer acceptance terms, revenue is recognized at the time the service
is provided to the customer.
Fair
Value of Financial Instruments
The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that
are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as
the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required
to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact
and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such
as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following
hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy
upon the lowest level of input that is available and significant to the fair value measurement:
Level
1 – Quoted prices in active markets for identical assets or liabilities.
Level
2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices
for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated
by observable market data for substantially the full term of the assets or liabilities.
Level
3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market
participants would use in pricing the asset or liability.
In
accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain
other items at fair value. The Company has not elected the fair value option for any eligible financial instruments.
As
of June 30, 2020, the carrying value of loans that are required to be measured at fair value, approximated fair value due to the
short-term nature and maturity of these instruments.
Advertising
Advertising
expenses are recorded as general and administrative expenses when they are incurred.
Use
of Estimates
The
preparation of financial statements in 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 disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. A change in managements’ estimates or assumptions could have a material impact on Sigmarenopro, Inc.’s
financial condition and results of operations during the period in which such changes occurred. Actual results could differ from
those estimates. Sigmarenopro, Inc.’s financial statements reflect all adjustments that management believes are necessary
for the fair presentation of their financial condition and results of operations for the periods presented.
Capital
Stock
The
Company has authorized Seventy Five Million (75,000,000) shares of common stock with a par value of $0.001. Four Million Five
Hundred and Thousand (4,500,000) shares of common stock were issued and outstanding as of June 30, 2020.
Income
Taxes
The
Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net
income, regardless of when reported for tax purposes.
NOTE
B – GOING CONCERN
The
Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable
to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.
However, the Company does not have an established source of revenues sufficient to cover its operating costs and to allow it to
continue as a going concern.
Under
the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither
the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations.
Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge
its liabilities in the normal course of business.
The
ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described
in the Business paragraph and eventually attain profitable operations. The accompanying financial statements do not include any
adjustments that may be necessary if the Company is unable to continue as a going concern.
During
the next year, the Company’s foreseeable cash requirements will relate to continual development of the operations of its
business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission, and the
payment of expenses associated with app development. The Company may experience a cash shortfall and be required to raise additional
capital.
Historically,
it has mostly relied upon internally generated funds and funds from the sale of shares of stock to finance its operations and
growth. Management may raise additional capital through future public or private offerings of the Company’s stock or through
loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company’s
failure to do so could have a material and adverse effect upon it and its shareholders.
In
the past year, the Company funded operations by using cash proceeds received through the issuance of common stock. For the coming
year, the Company plans to continue to fund the Company through debt and securities sales and issuances until the company generates
enough revenues through the operations as stated above.
NOTE
C – COMMON STOCK
On
June 2017, Company issued 1,150,000 Common Shares to the director of the company at $0.008 per share for cash proceeds of $9,200.
On
June 2017, Company issued 1,150,000 common shares to the secretary of the company at $0.008 per share for cash proceeds of $9,200.
On
April 2018, Company issued 560,000 common shares to the various shareholder of the company at $0.025 per share for cash proceeds
of $14,000.
On
May 2018, Company issued 640,000 common shares to the various shareholder of the company at $0.025 per share for cash proceeds
of $16,000.
On
June 2018, Company issued 1,000,000 common shares to the various shareholder of the company at $0.025 per share for cash proceeds
of $25,000.
There
were 4,500,000 and 4,500,000 shares of common stock issued and outstanding as of June 30, 2020 and 2019 respectively.
NOTE
D – RELATED PARTY TRANSACTIONS
On
June 2017, Company issued 1,150,000 Common Shares to the director of the company at $0.008 per share for cash proceeds of $9,200.
(Refer Note C)
On
June 2017, Company issued 1,150,000 Common Shares to the secretary of the company at $0.008 per shares for cash proceeds of $9,200.
(Refer Note C)
The
Company received loans from Aamar Omar, Director of the Company towards various operating expenses. During the year ended June
30, 2018 and 2019 the Company received a loan totaling $5,000 and $1,000 towards operating expenses. The loans are unsecured,
non-interest bearing and due on demand.
As
of June 30, 2020 and 2019, $6,000 and $6,000 respectively was due to Aamar Omar, Director of the Company.
NOTE
E – TRUST ACCOUNT
Trust
account (cash equivalent) is held by a law firm which provides periodic statement and pay the bills on behalf of Sigmarenopro.
Law firm charges fees for managing the trust account
NOTE
F – PREPAID EXPENSES
Prepaid
expenses for the year ending June 30, 2020 consist of $700 towards share transfer fee expenses paid to Globex, $138 towards registered
agent fees and June 30, 2019 consists of $2,994 towards SEC filing charges and accounts book-keeping charges
Prepaid
expenses as of June 30, 2020 and 2019 is $838 and $2,294 respectively.
NOTE
G – INCOME TAXES
For
the year ended June 30, 2020, the Company has incurred net losses and therefore, has no tax liability. The net deferred tax asset
generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately
$82,719 at June 30, 2020 and will expire beginning in the year 2037.
The
provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate
of 21% and 21% to the net loss before provision for income taxes as follows:
|
|
For
the years ended June 30, 2020
|
|
For
the years ended June 30, 2019
|
|
|
|
|
|
Income
tax expense (benefit) at statutory rate
|
|
|
(5,800
|
)
|
|
|
(6,446
|
)
|
Change
in valuation allowance
|
|
|
5,800
|
|
|
|
6,446
|
|
Income
tax expense
|
|
|
—
|
|
|
|
—
|
|
Net
deferred tax assets consist of the following components as of June 30, 2020:
|
|
June
30, 2020
|
|
June
30, 2019
|
Gross
deferred tax asset
|
|
|
17,371
|
|
|
|
11,571
|
|
Valuation
allowance
|
|
|
(17,371
|
)
|
|
|
(11,571
|
)
|
Net
deferred tax asset
|
|
|
—
|
|
|
|
—
|
|
Due
to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $82,719
for federal income tax reporting purposes could be subject to annual limitations. Should a change in ownership occur, net operating
loss carry forwards may be limited as to use in future years.
The
Company has no uncertain tax positions that require the Company to record a liability.
The
Company had no accrued penalties and interest related to taxes as of June 30, 2020.
NOTE
I – SHORT TERM FUND
Company
engaged Mussa Dahoud, to sell services to the prospective customers and deposit the money in the company escrow account. During
the three months ended June 30, 2020 total amount of $ 4,116 was deposited by him. Since Mussa Dahoud, didn’t provide the
full list of prospective customer details, it’s held as short-term fund. Company will return the fund to the agent Mussa
Dahoud, if he fails to provide the correct customer information.
NOTE
J – RESTATEMENT
The
following are previously recorded and restated balances as of June 30, 2019, for the year ended June 30,2019.
Sigmarenopro,
Inc
|
BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2019
|
|
2019
|
|
2019
|
|
|
(As
Previously Reported)
|
|
(Restatement
Adjustments)
|
|
(As
Restated)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
held in trust
|
|
$
|
17,367
|
|
|
$
|
—
|
|
|
$
|
17,367
|
|
Prepaid
expenses
|
|
|
2,294
|
|
|
|
—
|
|
|
|
2,294
|
|
Advances
|
|
|
—
|
|
|
|
4,638
|
|
|
|
4,638
|
|
Total
current assets
|
|
|
19,661
|
|
|
|
4,638
|
|
|
|
24,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
19,661
|
|
|
$
|
4,638
|
|
|
$
|
24,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Due
to related parties
|
|
$
|
5,000
|
|
|
$
|
1,000
|
|
|
$
|
6,000
|
|
Total
current liabilities
|
|
$
|
5,000
|
|
|
$
|
1,000
|
|
|
$
|
6,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock: $0.001 par value, 75,000,000 shares authorized, 4,500,000 and 4,500,000
shares issued and outstanding as of June 30, 2019, respectively
|
|
$
|
4,500
|
|
|
$
|
—
|
|
|
$
|
4,500
|
|
Additional
paid-in capital
|
|
|
68,900
|
|
|
|
—
|
|
|
|
68,900
|
|
Accumulated
deficit
|
|
|
(58,739
|
)
|
|
|
3,638
|
|
|
|
(55,101
|
)
|
Total
stockholders’ equity (deficit)
|
|
|
14,661
|
|
|
|
3,638
|
|
|
|
18,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity
|
|
$
|
19,661
|
|
|
$
|
4,638
|
|
|
$
|
24,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
|
Sigmarenopro,
Inc
|
STATEMENTS
OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
For
the year ended June 30, 2019
|
|
|
(As
Previously Reported)
|
|
(Restatement
Adjustments)
|
|
(As
Restated)
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
General
and Administrative Expenses
|
|
|
995
|
|
|
|
—
|
|
|
|
995
|
|
Professional
fees
|
|
|
33,338
|
|
|
|
(3,638
|
)
|
|
|
29,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
$
|
34,333
|
|
|
$
|
(3,638
|
)
|
|
$
|
30,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)
|
|
$
|
(34,333
|
)
|
|
$
|
3,638
|
|
|
$
|
(30,695
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted loss per common share
|
|
$
|
(0.0076
|
)
|
|
$
|
0.0008
|
|
|
$
|
(0.0068
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding - basic and diluted
|
|
|
4,500,000
|
|
|
|
4,500,000
|
|
|
|
4,500,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
Sigmarenopro,
Inc
|
STATEMENT
OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
For
the years ended June 30, 2019
|
|
|
(As
Previously Reported)
|
|
(Restatement
Adjustments)
|
|
(As
Restated)
|
|
|
|
|
|
|
|
Cash
flow from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(34,333
|
)
|
|
$
|
3,638
|
|
|
$
|
(30,695
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes
in Operating Assets and Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(Decrease) in advances
|
|
|
—
|
|
|
|
(4,638
|
)
|
|
|
(4,638
|
)
|
Increase
(Decrease) in due to related party
|
|
|
—
|
|
|
|
1,000
|
|
|
|
1,000
|
|
Net
cash used in operating activities
|
|
$
|
(34,333
|
)
|
|
$
|
—
|
|
|
$
|
(34,333
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash flows from investing activities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by financing activities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase in cash, cash equivalents, and restricted cash
|
|
$
|
(34,333
|
)
|
|
|
—
|
|
|
|
(34,333
|
)
|
Cash,
cash equivalents, and restricted cash at beginning of year
|
|
|
51,700
|
|
|
|
—
|
|
|
|
51,700
|
|
Cash,
cash equivalents, and restricted cash at end of year
|
|
$
|
17,367
|
|
|
$
|
—
|
|
|
$
|
17,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
paid for interest
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash
paid for income taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
accompanying notes are an integral part of these financial statements.
|
NOTE
K – SUBSEQUENT EVENT
The
Company evaluated all events or transactions that occurred after June 30, 2020 through January 18, 2021. The Company determined
that it does not have any subsequent event requiring recording or disclosure in the financial statements for the period ended
June 30, 2020.