As of and for the period and year ended
March 31, 2018 and December 31, 2017
Notes to Financial Statements
As of March 31, 2018 and December 31, 2017
(Stated in U.S. Dollars)
Punto Group, Corp. (the “Company”)
is a for profit corporation established under the corporation laws in the State of Nevada, United States of America on September
2, 2014.
The financial statements of
the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and
are presented in US dollars. The financial statements and related disclosures as of December 31, 2017 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 “Punto Group, Corp.,” “we,” “us,” “our” or the “company”
are to Punto Group, Corp. and any subsidiaries.
2.
|
BASIS OF PRESENTATION AND GOING CONCERN
|
Basis of Presentation
The financial statements of the
Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
GAAP”).
The statements and related notes
have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly,
certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted
accounting principles have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction
with the financial statements and other information included in the Company's Annual Report on Form 10-K for the year ended December
31, 2017 as filed with the SEC.
Going Concern
The
accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern. As of
March 31, 2018, the Company had accumulated deficits of $134,933. The Company’s ability to continue as a going concern is
dependent upon the Company’s ability to generate sufficient revenues to operate profitably or raise additional capital through
debt financing and/or through sales of common stock.
Management
plans to fund operations of the Company through the proceeds from an offering pursuant to a Registration Statement on Form
S-1 or private placements of restricted securities or the issuance of stock in lieu of cash for payment of services until
such a time as profitable operations are achieved. If we do not raise all of the money we need from public offerings, we will
have to find alternative sources, such as loans or advances from our officers, directors or others. Such additional financing
may not become available on acceptable terms and there can be no assurance that any additional financing that the Company
does obtain will be sufficient to meet its needs in the long term. There are no written agreements in place for such funding
or issuance of securities and there can be no assurance that such will be available in the future. Management believes that
this plan provides an opportunity for the Company to continue as a going concern.
The
failure to achieve the necessary levels of profitability or obtain the additional funding would be detrimental to the Company.
Punto Group, Corp.
Notes to Financial Statements
As of March 31, 2018 and December 31, 2017
(Stated in U.S. Dollars)
3.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Use of Estimates and Assumptions
The
preparation of financial statements in conformity with generally accepted accounting principles 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 period. Actual results could
differ from those estimates.
Due
to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption
that the Company is a going concern.
Cash and Cash Equivalents
The
Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Fair Value of Financial
Instruments
ASC
825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial
instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair
value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates
discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2018.
The
respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial
instruments include cash, accrued liabilities and notes payable. Fair values were assumed to approximate carrying values
for these financial instruments since they are short term in nature and their carrying amounts approximate fair value.
Revenue Recognition
The
Company will recognize revenue in accordance with Accounting Standards Codification No. 605, “Revenue Recognition”
(“ASC-605”). ASC-605 requires that four basic criteria must be met before revenue can be recognized:
1.
Persuasive evidence of an arrangement exists
2.
Delivery has occurred
3.
The selling price is fixed and determinable
4.
Collectability is reasonably assured.
Punto Group, Corp.
Notes to Financial Statements
As of March 31, 2018 and December 31, 2017
(Stated in U.S. Dollars)
Determination
of criteria 3. and 4. are based on management's judgment regarding the fixed nature of the selling prices of the products delivered
and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, or
other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which
the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine
that the product has been delivered or no refund will be required.
Basic and Diluted Net Loss
Per Share
Our computation of earnings per
share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) available to common stockholders
divided by the weighted average common shares outstanding for the period. Diluted income (loss) per share reflects the potential
dilution, using the treasury stock method, that could occur if securities or other contracts to issue common stock were exercised
or converted into common stock or resulted in the issuance of common stock that then shared in the income (loss) of the Company
as if they had been converted at the beginning of the periods presented, or issuance date, if later. In computing diluted income
(loss) per share, the treasury stock method assumes that outstanding options and warrants are exercised and the proceeds are used
to purchase common stock at the average market price during the period. Options and warrants may have a dilutive effect under the
treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the
options and warrants. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or
decrease loss per share) are excluded from the calculation of diluted EPS.
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 respective
periods. Basic and diluted (loss) per common share is the same for periods in which the company reported an operating loss because
all warrants and stock options outstanding are anti-dilutive.
There were no adjustments to
net loss required for purposes of computing diluted earnings per share.
For the three month periods ended
March 31, 2018 and 2017, there were no potential dilutive securities.
Comprehensive Income (Loss)
The Company follows the provisions
of the Financial Accounting Standards Board (the “FASB”) ASC 220
Reporting Comprehensive Income
, and establishes
standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general
purpose financial statements. The Company’s comprehensive income (loss) consists of net income (loss) and foreign currency
translation adjustments.
Punto Group, Corp.
Notes to Financial Statements
As of March 31, 2018 and December 31, 2017
(Stated in U.S. Dollars)
Recently Issued Accounting
Pronouncements
On August 26, 2016, the FASB
issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230)". Stakeholders indicated that there is diversity in practice
in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement
of Cash Flows, and other Topics. This Update addresses eight specific cash flow issues with the objective of reducing the existing
diversity in practice. The amendments in this Update are effective for public business entities for fiscal years beginning after
December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim
period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning
of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in
the same period. As a result, the Company has elected to early adopt this Update prospectively as of December 31, 2016 and prior
periods have not been retrospectively adjusted.
As of December 31,
2016, except for the above, there are no recently issued accounting standards not yet adopted that would have a material effec
t
on the Company’s financial statements.
4.
|
ACCOUNTS
PAYABLE AND ACCRUED EXPENSES
|
Accounts
payable and accrued expenses consisted of the followings as of March 31, 2018 and December 31, 2017:
|
|
|
3/31/2018
|
|
|
12/31/2017
|
|
|
Audit and review expense
|
|
$
|
12,000
|
|
|
$
|
8,000
|
|
|
Legal expense
|
|
|
2,269
|
|
|
|
933
|
|
|
Filing fee
|
|
|
1,515
|
|
|
|
1,296
|
|
|
Other
|
|
|
500
|
|
|
|
200
|
|
|
|
|
$
|
16,284
|
|
|
$
|
10,429
|
|
5.
|
RELATED PARTY TRANSACTIONS
|
The
director of the Company provides services free of charge. The Company's sole officer and director is involved in other business
activities and may in the future, become involved in other business opportunities as they become available.
As
of December 31, 2017, there were advances of $57,349 from the current shareholder for the purpose of operating the Company.
As
of March 31, 2018, there were advances of $933 from the current shareholder for the purpose of operating the Company.
The
Company’s registration address is free of charge as it is provided by a related party. The Company is not able to estimate
fair market value for using a registered address; therefore, there is no rent expenses for the three month ended March 31, 2018.
Punto Group, Corp.
Notes to Financial Statements
As of March 31, 2018 and December 31, 2017
(Stated in U.S. Dollars)
The Company was established
in the State of Nevada in United States and is subject to Nevada State and US Federal tax laws. The Company has not recognized
an income tax benefit for its operating losses based on uncertainties concerning its ability to generate taxable income in future
periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising
from the net operating losses and other temporary differences, the realization of which could not be considered more likely than
not. Further, the benefit from utilization of NOL carry forwards could be subject to limitations due to material ownership changes
that could occur in the Company as it continues to raise additional capital. Based on such limitations, the Company has significant
NOLs for which realization of tax benefits is uncertain. In future periods, tax benefits and related deferred tax assets will be
recognized when management considers realization of such amounts to be more likely than not.
As
of
March 31, 2018
, the Company has accumulated net operating losses of $134,933 which carryovers
as a deferred tax asset that begins to expire in 2025.
The net losses before
income taxes and its provision for income taxes as follows:
|
|
|
3/31/2018
|
|
|
3/31/2017
|
|
|
Net loss before income taxes
|
|
$
|
(6,788
|
)
|
|
$
|
(11,194
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Tax expenses (benefit) at the statutory tax rate
|
|
|
(1,425
|
)
|
|
|
(3,918
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Tax effects of:
|
|
|
|
|
|
|
|
|
|
Valuation allowance
|
|
|
1,425
|
|
|
|
3,918
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
-
|
|
|
|
-
|
|
On December 22, 2017, the United
States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law. The Company
has considered the accounting impact of the effects of the Act during the three month period ended March 31, 2018 including a reduction
in the corporate tax rate from 34% to 21% among other changes.
The Company has evaluated subsequent
events from March 31, 2018 through the date the financial statements were available to be issued. There was no subsequent event
at the report date.