NOTES
TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE
1 – DESCRIPTION OF BUSINESS
Strong
Solutions, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on June 18, 2014 for engagement
in business of real estate management, maintenance and rehabilitation and construction equipment rental in Ukraine. The Company
provides this service for companies and for individuals outside of the United States of America.
As
a development-stage enterprise, the Company had limited operating revenues through June 30, 2020. Recorded Commission Revenue
was generated from Ukrainian clients. The Company is currently devoting substantially all of its present efforts to securing and
establishing a new business in the real estate sector in the United States. On May 18, 2020 the Board of Directors appointed Eric
Stevenson Secretary for the Company and changed its address to 102 N. Curry Street Carson City, NV 89703 in keeping with its plan
to secure and establish a new business in the real estate sector within the United States.
NOTE
2 – GOING CONCERN
The
financial statements have been prepared assuming that the Company will continue as a going concern. Currently, the Company has
a cash balance of $2,248 as of June 30, 2020 and net loss from operation of $6,674 for the three months ended June 30, 2020. These
factors raise substantial doubt about the Company’s ability to continue as a going concern. Management believes that the
Company’s capital requirements will depend on many factors including the success of our development efforts and our efforts
to raise capital. Management also believes the Company needs to raise additional capital for working purposes. There is no assurance
that such financing will be available in the future. The financial statements of the Company do not include any adjustments relating
to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary
should the Company be unable to continue as a going concern.
NOTE
3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use
of estimates
The
preparation of the financial statements
in conformity with generally
accepted accounting principles
requires management
to make estimates and
assumptions that affect certain reported
amounts and disclosures. Accordingly,
actual results could differ from these estimates.
Revenue
recognition
We
base our judgment on guidance ASC 606. Accounting Standards Update 2016-08.
All
revenues appear in current periods to be recognized as gross, so, there is no net revenue
recognized in current periods.
FASB’s
new single, principle-based approach to accounting for revenue from contracts with customers. As the entity, we involved in providing
a good and provide service to the customers. In those circumstances, Topic 606 requires us to determine whether the nature of
our promise is to provide that good or service to the customers (that is, the entity is a principal) or to arrange for the good
or service to be provided to the customers by the other party (that is, the entity is an agent). This determination is based upon
whether we control the good or the service before it is transferred to the customer. Some indicators help in this evaluation.
1.
We identify obligations in the contract with firm Markus. A contract includes promises to transfer temporary right to use construction
equipment in their business for profit.
2.
We determine the transaction price $500 in a month. The transaction price is the reasonable amount of which we and firm
Markus were agree. The transaction price in 2nd quarter was a fixed amount.
3.
We recognize revenue when the firm Markus obtains control of that equipment and we received the payment.
4.
The transaction price also can include variable consideration or consideration in a form other than cash. In our property
management service with Protel Management we received changeable revenue. If the consideration is variable, we estimate the
amount of consideration to which we will be entitled in exchange for the services. The estimated amount of variable
consideration will be included in the transaction price only to the extent that it is probable that a significant reversal in
the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is
subsequently resolved.
The
Company considered recognizes the revenue on the accrual basis, revenue is recognized when
earned and services have been performed.
We are principal,
and recognize the gross amount received from the customer as revenue. Revenues are reported
on the income statement when the services have
been performed. Our revenue includes the gross amounts that come from Client for the Property Management and Rent Service.
Cash
equivalents
The
Company considers all highly liquid instruments and tries to work in cash equivalent segment. The Company’s funds are deposited
in insured institutions.
Income
Taxes
We
are subject to income taxes in the U.S. For present time we don’t have any current income tax obligations.
The
Company accounts for income taxes under the provisions of ASC Topic 740, “Income Taxes.” The method of accounting
for income taxes under ASC 740 is an asset and liability method.
The
asset and liability method require the recognition of deferred tax liabilities and assets for the expected future tax consequences
of temporary differences between tax bases and financial reporting bases of other assets and liabilities. Deferred tax asset
would be the net operating loss carryforward value at tax rates. Our net (loss) from operations before income taxes for the three
months ended June 30, 2020 was $6,674 and for the three months ended June 30, 2019 was $6,344
Income
tax assets and liabilities are computed annually for differences between financial statement and tax bases of assets and liabilities
that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods
in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce
deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period
plus or minus the change during the period in deferred tax assets and liabilities.
NOTE
4 – COMMON STOCK ISSUED AND OUTSTANDING
The
company authorized 75,000,000 Common shares $0.0001 par value.
For
the period from January 1, 2020 to June 30, 2020 there were some changes in common stock.
As
of June 30, 2020, the Company had issued and outstanding 36,693,000 shares of common stock.
We
issued 1,293,000 common shares for cash at a purchase price of $0.01 per share to 31 nonaffiliated shareholders.
We
issued 5,000,000 common shares for cash at a purchase price of $0.002 per share to our director Mr.Guzii.
We
issued 400,000 common shares for cash at a purchase price of $0.01 per share to NV Share Services LLC.
30,000,000
shares were issued to our director Mr.Guzii for repayment of accrued salary on $30,000 and $270,000 of stock compensation value
at $0.01 per share. This value was determined based on the previous sale of stock to unrelated parties at 0.01 per share.
Mr.
Guzii sold his 35,000,00 shares of common stock for $3,500 to NV Share Services LLC on May 18, 2020. On May 18, 2020, the company
sold 400,000 shares of common stock to NV Share Services, LLC for $4,000.00.
NOTE
5 – FAIR VALUE OF FINANCIAL INSTRUMENTS
The
carrying amounts of cash and cash equivalents approximate their fair values due to their short-term nature.
NOTE
6 – CONCENTRATION OF CREDIT RISK
The
Company maintains cash balances at a Wells Fargo financial institution. The balance, at any given time, may exceed Federal Deposit
Insurance Corporation (“FDIC”) insurance limits of $250,000 per institution. Our cash balances at June 30, 2020 were
within FDIC insured limits.
Concentration
of revenues.
The
Company has only two business clients from which we receive the income: Protel Management and firm Markus. It shows our dependence
from them and in present time we can’t diversify in order to mitigate the risks. We can have the potential for serious impact
that can result from a complete or partial loss of business from our clients and as a consequence of the change in income.
NOTE
7 – COMMITMENTS AND CONTINGENCIES
The
Company is not currently a party to any material legal proceedings, nor is we aware of any other pending or threatened litigation
that would have a material adverse effect on our business, operating results, cash flows or financial condition should such litigation
be resolved unfavorable.
NOTE
8 – RELATED PARTY TRANSACTIONS
Mr.
Guzii is ours CEO. He represented the company and provided the services on our behalf to our clients firm Markus and Protel Management.
We used his construction equipment to make our business with firm Markus from 2015 to 2018. End of the 2018 we put this equipment
on the balance sheet since it is already our property.
Also,
we rent office from Mr. Guzii. We paid him the office rent fee $150 per month.
We
booked expense $450 for office rent from this related party for the three months ended June 30, 2020, and we count rental expense
on our books.
NOTE
9 – STOCKHOLDERS’ EQUITY
From
our inception on June 18, 2014 through June 30, 2020, the Company issued 36,693,000 shares of common stock. 35,000,000 for our
founder, 1,293,000 for non-affiliated investors for cash, received proceeds of $12,930 sold at $0.01 per share. On May 18, 2020
NV Share Services LLC purchased 35,000,000 shares of Common Stock of the Company from Andrii Guzii for $3,500.00 in cash. May
18, 2020 Strong Solutions Inc. sold 400,000 common shares to NV Share Services LLC for $4,000.
NOTE
10 – SUBSEQUENT EVENTS
In
accordance with ASC 855 the Company’s management reviewed all material events through the date these financial statements
were available to be issued, and there are no material subsequent events.