Report of Independent Registered Public Accounting Firm
To the shareholders and the board of directors of Strong Solutions, Inc.
Opinion on the Financial Statements
We have audited the accompanying balance sheets of Strong Solutions, Inc. (the "Company") as of December 31, 2020 and 2019, the related statements of operations, stockholders' equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
Substantial Doubt about the Company’s Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company’s significant operating losses raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ BF Borgers CPA PC
BF Borgers CPA PC
We have served as the Company's auditor since 2017
Lakewood, CO
March 2, 2021
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NOTES TO FINANCIAL STATEMENTS
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 Eastern Europe, and specifically 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 December 31,2020. 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.
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 $2,457 as of December 31, 2020 and net loss from operation of $32,313. 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.
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 2020 was a fixed amount. We didn’t receive revenue from firm Markus in full because we followed “Stay home” mandatory policy issued by Ukrainian government to reduce the spread COVID-19.
3.We recognize revenue from firm Markus when we received the payment.
4.Also, we recognize revenue from Protel Management when we received the payment.
5.The transaction price also can include variable consideration. 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.
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STRONG SOLUTIONS INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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. February 8, 2017 USA and Ukraine signed an Intergovernmental Agreement (IGA) to implement provisions of the Foreign Account Tax Compliance Act (FATCA) and to promote transparency between the two nations on tax matters.
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 Operating Loss for 2020 ($32,313) and Net Operating Loss for 2019 ($34,935).
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.
End of December 2019 the Company had issued and outstanding 36,293,000 common stocks.
We issued 1,293,000 common shares for cash at a purchase price of $0.01per share to 32 nonaffiliated shareholders.
30,000,000 shares were issued to our founder Mr.Guzii of 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.
On August 14, 2020, the company sold 400,000 shares of common stock to NV Share Services, LLC for $4,000
On November 3, 2020, the company sold 800,000 shares of common stock to NV Share Services, LLC for$8,000
December 8, 2020, the company issued 300,000 shares of common stock to our director Mr.Guzii as a salary compensation for the 4th quarter 2020.
As of December 31,2020, there were 38,193,000 shares of the Company’s common stock. 36,600,000 were held by NV Share Services LLC, 300,000 held by our director Mr. Guzii,1,293,000 held by 32 non-affiliated shareholders.
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STRONG SOLUTIONS INC.
NOTES TO FINANCIAL STATEMENTS
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 December 31, 2020 were within FDIC insured limits.
Concentration of revenues.
Since the Company has only two clients from which we receive the income our revenues concentrate from particular clients. It shows our vulnerability 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 represents the company and provides the services on our behalf to our clients firm Marcus and Protel Management. We pay Mr. Guzii $450 per quarter for the office rent. Our annual rental payment for 2020 was $1,800. Also, in 2020 he received $12,000 accrued salary. We do not have an employment agreement with Mr. Guzii.
Director of Protel Management Sergii Povaliaiev also is our shareholder. He holds 25,000 common shares – it is lower than 0.1% of total issued common shares. Our annual revenue from Protel Management for 2020 was $5,430 and for 2019 was $6,480 respectively.
NOTE 9 – STOCKHOLDERS’ EQUITY
From our inception on June 18, 2014 through December 31, 2020, the Company issued 38,193,000 shares of common stock.1,293,000 for non-affiliated investors for cash, received of $12,930 sold at 0.01 per share.
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.
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